(Engleski - AŽURIRANO) Coronavirus Guidelines for exporting and importing firms
Mislav Bradvica | 28.03.2020
AUSTRIA, CROATIA, GERMANY, HUNGARY, ITALY, SLOVENIA
Governmental measures, import and export
1 Governmental Measures in Austria
1.1 What is the government doing to provide support to businesses impacted by coronavirus?
On 15 March 2020, the Austrian Parliament adopted the Federal Act on the Establishment of a COVID-19 Crisis Management Fund (Bundesgesetz über die Errichtung des COVID-19-Krisenbewältigungsfonds), whereas such COVID-19 Crisis Management Fund shall receive public funds of up to EUR 4 billion. The concrete use of such funds shall be determined by the Austrian Finance Minister by way of a special decree. While such special decree as of today has not been adopted yet, it is clear that parts of such funds shall be used to finance the aid package for the economy outlined under Section 1.4 below.
On 18 March 2020, the Austrian Government announced that the funds used to stabilize the Austrian economy will be increased to up to EUR 38 billion, which shall be divided into (i) EUR 4 billion of emergency aid for short-work (Kurzarbeit) and small and medium sized enterprises (SMEs), (ii) EUR 9 billion in state guarantees for loan securities, (iii) EUR 15 billion emergency aid for hardly affected industries, and (iv) EUR 10 billion in deferred payments schemes for tax obligations. However, as of today, no legal acts to implement such additional support for the economy have been enacted.
1.2 Is there any supply chain support from the Government or professional associations?
While currently there are no particular measures in place supporting supply chains, the Austrian Government has announced that they will implement a package aiming to strengthen the supply chains in the most important areas (food and medicine / medical equipment), in order to ensure uninterrupted supply of such goods for the foreseeable future.
1.3 Are there financial facilities (grants, security etc.) available to cover exporters disrupted by coronavirus?
In addition to other measures available to exporters (see Section 1.4 below), exporters may – in collaboration with their commercial bank – apply for a credit line in the volume of 10% (for large companies), respectively 15% (for SMEs) of their export sales at the Austrian Control Bank (Österreichische Kontrollbank; OeKB), whereas the maximum amount of the credit line per exporter amounts to EUR 60 million.
Currently, such credit lines are limited to 2 years, with the possibility for prolongation (should the economic hardship continue after lapse of such 2 years).
One of the requirements for activating such credit lines is that the respective exporter must have been economically healthy before the start of the COVID-19 crisis.
The Austrian state is prepared to issue guarantees for up to 50-70% of above-outlined credit lines. The total volume of credit lines is limited to EUR 2 billion.
For more details, please see: https://www.oekb.at/en/oekb-group/news-und-wissen/news/2020/covid-19-aid.html
1.4 What do the Government packages for the support of business (if any) include?
As outlined under Section 1.1 above, the details on the use of the EUR 4 billion, respectively EUR 38 billion aid for the economy are to a large extent still in preparation. However, based on the currently available information, inter alia, the following measures shall be implemented to support the Austrian economy:
(A) Short-work (Kurzarbeit): Companies that face financial difficulties may temporarily reduce the working hours of individual or all employees, during which the respective employees receive between 80% and 90% of their normal (monthly) salary, whereas the employer only has to pay the percentage of such salary which corresponds to the amount of working time actually performed by the respective employee, while the remaining part of the salary is borne by the Austrian Unemployment Office (Arbeitsmarktservice; AMS);
(B) EUR 1 billion of public funds to support sole proprietors, micro companies and non-profit organisations, the distribution of such funds to be managed by the Austrian Chamber of Commerce (Wirtschaftskammer);
(C) State guarantees for bridge financing (to be issued by the Austrian Tourism Bank) in the volume of up to EUR 100 million for the tourism industry;
(D) State guarantees for bridge financing (to be issued by the Austria Wirtschaftsservice Gesellschaft mbH; aws) in the volume of up to EUR 10 million for SMEs active in industries other than tourism;
(E) Credit lines to exporters, as outlined under Section 4.3 above; and
(F) Possibility to apply for deferred tax and social security obligations.
Additionally, the Austrian Government announced that they are particularly working on additional packages providing for state guarantees also for large enterprises (with over 250 employees) and additional direct credit lines for companies.
2 Import to Austria
2.1 What sanitary and other measures may importers expect
While generally persons entering Austria from various countries (particularly, Italy, Switzerland or Liechtenstein) need to keep and present a health certificate (Gesundheitszeugnis) which must not be older than 4 days, such restriction does not apply to commercial suppliers of goods, incl. lorry drivers.
However, upon request of Austrian public health authorities (Gesundheitsbehörden), such lorry drivers are obliged to undergo medical tests regarding a potential COVID-19 infection.
Additionally, third-country nationals (i.e. persons which are not EU citizens or citizens of Iceland, Liechtenstein, Norway or Switzerland) which have – within 14 days prior to entering Austria – been in areas for which the Austrian Ministry of Foreign Affairs has issued a travel warning (see: https://www.bmeia.gv.at/reise-aufenthalt/reisewarnungen/) are obliged to keep and present a health certificate (Gesundheitszeugnis) which must not be older than 4 days and according to which a test regarding a potential COVID-19 infection was negative.
2.2 Is the quarantine for (lorry) drivers obligatory (and if yes, from which territories)?
No, currently there is no quarantine obligatory for lorry drivers. See Section 2.1 above for measures importers may expect.
2.3 What other measures do importers have to consider
While the Austrian state tries to ensure that imports and exports of goods continue without major interruptions, the increased level of border controls (particularly, on the borders to Italy, Switzerland or Liechtenstein) may lead to significant delays in the delivery.
Additionally, some minor border stations are currently closed (i.e. the Austrian state tries to streamline the entry into Austria to the biggest / most important border stations). Thus, before commencing the delivery, importers, respectively lorry drivers are advised to check the current status of the respective border station(s) they plan to use.
Finally (in addition to the above), the import of goods to Tyrol, which is currently under full quarantine, may additionally be hampered. While the transportation of goods is generally exempted from the general quarantine, state authorities may perform increased tests on the actual need to perform the respective deliveries to and from Tyrol.
3 Export from Austria
3.1 Is export from the country currently allowed (on 27 March 2020)
Yes, exports from Austria are generally still allowed. Irrespective of that, certain neighbouring countries may impose import restrictions which would / could apply, and which need to be considered in export activities.
3.2 Has the Government imposed a block of export from the country for certain goods (medical and pharma supplies, food etc.)
No, there is no general block of export from Austria for certain goods. However, in accordance with the Commission Implementing Regulation (EU) 2020/402 of 14 March 2020, the export of certain personal protective equipment (as listed in Annex 1 to the Regulation) to non-EU member states requires an export authorization. With the Commission Implementing Regulation (EU) 2020/426 of 19 March 2020, the above-mentioned Regulation was amended in a way that no export authorization shall be required for the export to certain non-EU member states, such as Norway, Iceland, Liechtenstein and Switzerland.
3.3 Is testing obligatory for personnel involved in export activity (workers in logistics, drivers)
No, in Austria there is no such obligatory testing for personnel involved in export activity.
However, please note
that other obligatory testing, other checks or even a quarantine may be
obligatory in importing countries (i.e. countries into which the respective
goods are exported). Thus, exporters should particularly also check the
relevant obligations / status in the countries to which the respective goods
should be delivered to.
1 Governmental Measures in Croatia
1.1 What is the government doing to provide support to businesses impacted by coronavirus?
On 17 March 2020 the Croatian Government had adopted the suggestion of "first package" measures which in total concerned more than 60 measures aimed for support of Croatian economy and impacted businesses (hereinafter: "Measures"). The Measures have been accepted by the Croatian Parliament on 19 March 2020.
The Measures concern a specific set of activities which will be implemented by the following eight Ministries:
· The Ministry of Labour and Pension System;
· Ministry of Regional Development and European Union Funds;
· Ministry of Tourism;
· Ministry of Economy, Entrepreneurship and Crafts;
· Ministry of Finance;
· Ministry of Agriculture;
· Ministry of Sea, Transport and Infrastructure; and
· Ministry of Culture.
At this point, the majority of Measures concern preservation of undertakings’ liquidity and employment positions.
These are the most emphasised Measures:
(1) interest-free delay in payment and/or instalment payment of tax liabilities incurred during the period of special circumstances and due to such circumstances;
(2) Croatian Bank for Reconstruction and Development (HBOR) enables moratorium on clients' credit obligations under existing placements and reprogramming of existing loans while introducing grace period in repayment of the principal;
(3) In cooperation with commercial banks HBOR will also approve new loans for financing of overhead expenses (while companies are in so called cold-drive mode);
(4) Croatian Agency for SMEs, Innovations and Investments (HAMAG-BICRO) enables moratorium on all instalments of ESIF Micro and Small Loans, and Micro and Small Rural Development Loans by December 31, 2020;
(5) HAMAG-BICRO will also extend the repayment period of the guaranteed loans;
(6) Introduction of "stand-still" arrangements of commercial banks, i.e. suspension of compulsory collection measures against all debtors for a period of three months (the regular interest or statutory interest continue to accrue during that time);
(7) liquidity and working capital loans given by commercial banks (salaries and working capital excluding liabilities towards financial institutions) to have a maturity of up to three years;
(8) option of reprogramming by credit institutions available for designated customers in an expedited manner and without reclassification to default;
(9) financing grant in the amount of 100% of the net minimum salary costs for companies in the most affected industries and economic sectors such as transport and storage, hospitality, tourism, various services activities, manufacturing and for all other employees which can provide evidence that they have been affected by these special circumstances (COVID-19).
Depending on the further development of this situation, the Croatian Government might – and most probably will - adopt an additional set of different and / or supplementing measures for other industries and economic sectors in need.
1.2 Is there any supply chain support from the Government or professional associations?
Yes, there are some supply chain supports. However, at this moment only for selected sectors.
Namely, apart from what is presented above in Section 1.1, the Ministry of Agriculture will propose application of the flexibility mechanism between the funds and the re-allocation of HRK 100.000.000 for additional support to sensitive sectors, i.e. such proposal concerns introduction of intervention measures with the prior approval of the European Commission. Also, the Government intends to propose new state-aid measures for expenses incurred due to limitation of transit and increase of handling costs for exporting products to the European Union common market.
In relation to the fishery sector, the Government will finance temporary fishing suspensions, increase funding for low value grants for the fisheries and aquaculture sector and the Government will also ask the European Commission to finance packaging for fishery products. An additional support measure for this sector is the temporary exemption from payment of existing fees, compensations and other charges payable by boat owners and owners of marine fish and shellfish farms, such as mooring costs, technical inspection costs and costs of maricultural growers' concessions.
Lessees’ and concessionaires of agricultural land owned by the Republic of Croatia will benefit from a three-months delay in payment of rent and concession fees.
Also, the Ministry of Agriculture will cooperate with the Ministry of Economy in order to enable intervention purchase of surpluses in livestock production, crop production and fruit and vegetable production, as well as procurement of seed for agricultural production in case of shortage.
Finally, HAMAG BICRO will establish a new financial instrument Micro Rural Development Loan for working capital.
1.3 Are there financial facilities (grants, security etc.) available to cover exporters disrupted by coronavirus?
For now, the Government has adopted three such measures concerning exporters. Namely:
(1) approval of guarantees (insurance policy) to exporters' commercial banks and HBOR under the export guarantee fund with the aim of granting new working capital loans - liquidity;
(2) expanding the scope of the export guarantee fund so as to also include the tourism sector with the aim of enabling the issuance of guarantees (insurance policies) for loans to banks and HBOR - additional liquidity means for exporters and the tourism sector;
(3) expanding the scope of the export guarantee fund by further extending the range of eligible beneficiaries of export and tourism insurance policies to economic agents that indirectly export, or which are suppliers of direct exporters.
1.4 What do the Government packages for the support of business (if any) include?
This question has - in summary and for the purpose of these Guidelines - been answered in the previous three questions. For now, it remains to be seen whether these measures are to be somehow expanded and/or amended in the following days and weeks.
However, as we believe that at this point the majority of undertakings will primarily try to benefit from state-aid aimed for preservation of employment positions (financing grant in the amount of 100% of the net minimum salary costs – see 1.1 above), please note that detailed instructions on conditions that undertakings have to satisfy in order to benefit from this state-aid and application procedure can be accessed via the following link: https://www.koronavirus.hr/potpore-za-ocuvanje-radnih-mjesta-u-djelatnostima-pogodjenima-epidemijom-koronavirusa/235 (text in Croatian language only).
2 Import to Croatia
2.1 What sanitary and other measures may importers expect
Currently there are no specific sanitary measures in respect of importers, except quarantine and self-isolation (please see below for more).
Additionally, according to the guidelines of the EU Commission on health-related border management measures in the context of the COVID-19 emergency, no additional certifications should be imposed on goods legally circulating within the EU single market since there is no evidence that food is a source or a transmission source of COVID-19.
2.2 Is the quarantine for (lorry) drivers obligatory (and if yes, from which territories)?
After conducted transport, Croatian lorry drivers and foreign drivers with residence in Croatia may either:
· stay in quarantine or
· decide to go into self-isolation at home.
If the period between unloading and loading is less than 24 hours, drivers must stay in their cabin until next loading / unloading.
Foreign drivers (without residence in Croatia) must go into quarantine or may use their cabin as self-isolation space, unless they are immediately making their return drive. The County Civil Protection HQ must be notified about the accommodation of foreign drivers into quarantine.
If an employer does not need a driver anymore, the driver may go into quarantine or go home into self-isolation, for at least 14 days.
Both drivers who are in quarantine and in self-isolation (at home), may decide to take another tour.
Quarantines are established in each county by the Civil Protection HQ.
Transport companies may seek the formation of quarantine within their business premises from the Civil Protection HQ, provided they have enough space to accommodate their drivers in accordance with health supervision measures. Food and toilets must be provided.
The lorry cabin is considered a self-isolation space.
2.3 What other measures do importers have to consider
It is not necessary anymore to notify arrival at the border.
Employers must notify via telephone about the driver’s arrival and departure from quarantine and his further route.
During loading / unloading drivers must not leave the cabin.
Transit
Transit is organised through eight border-crossings: border with Slovenia on Bregana and Macelj, border with Hungary on Goričan and Duboševica, border with Bosnia and Herzegowina on Nova Sela, Stara Gradiška and Slavonski Šamac, and border with Serbia on Bajakovo). Transit will be under escort at all time. During stopping, drivers must keep from other people, 1m in open spaces and 2m in closed spaces.
3 Export from Croatia
3.1 Is export from the country currently allowed (on 27 March 2020)
Generally, export of goods from Croatia is allowed.
3.2 Has the Government imposed a block of export from the country for certain goods (medical and pharma supplies, food etc.)
The Government of the Republic of Croatia rendered a decision on 14 March 2020 by which it authorised the Minister of Economy, Entrepreneurship and Crafts to prohibit export of certain goods (listed in the mentioned Government’s decision) in case of possible shortages. However, the Minister has not prohibited export of any goods yet.
3.3 Is testing obligatory for personnel involved in export activity (workers in logistics, drivers)
Personnel involved in export activity are not subject to preventive testing.
1 Governmental Measures in Germany
1.1 What is the government doing to provide support to businesses impacted by coronavirus
On Monday, 23 March 2020, the federal government decided on a far-reaching package of measures to mitigate the consequences of the spread of the coronavirus. The government launched emergency aid for small businesses and self-employed people. Clinics and practices are strengthened and access to short-time work benefits is simplified. Further, the federal government is planning to help large companies with an economic stabilisation fund - Economic Stabilisation Fund (Wirtschaftsstabilisierungsfond, WSF). The WSF Act has been adopted by the German Bundestag and approved by the German Bundesrat in course of this week. The president has signed of the WSF Act.
The so-called special programmes of the Kreditanstalt für Wiederaufbau (KfW) 2020 also starts: It supports companies that have got into temporary financing difficulties due to the corona pandemic. Small, medium-sized and large companies can now apply via their main bank. Payments will be made as quickly as possible and the funds for the special programme are unlimited. The EU Commission has also approved the German aid programmes.
1.2 Is there any supply chain support from the Government or professional associations?
According to all available information the supply chains continue to work as usual. The competent ministry is however in contact with associations, food chains and state ministries regarding this issue and is playing through scenarios and potential necessary measures.
Nevertheless, the federal government has decided to allow exceptions to daily driving times and weekly rest periods. The exceptions initially apply until 17 April 2020 for works traffic and commercial freight. In certain cases, drivers may therefore deviate from the legally applicable driving and resting times.
On 13 March 2020 the driving ban for lorries on Sundays and public holidays was lifted. Initially up to and including 5 April 2020, the competent authorities should refrain from checking the driving ban for lorries on Sundays and public holidays, insofar as and as long as supply bottlenecks exist for goods due to the consequences of the expansion of the coronavirus.
These measures exclusively serve the purpose of maintaining security of supply, according to the Federal Ministry of Transport, which has also made the cabotage rules easier.
1.3 Are there financial facilities (grants, security etc.) available to cover exporters disrupted by coronavirus?
The WSF aims to ensure the liquidity and solvency of companies that were healthy and competitive before the coronavirus pandemic. The WSF complements the planned special programs of the KfW.
The WSF will therefore have the following instruments available:
- a guarantee of EUR 400 billion, which is intended to help companies refinance themselves on the capital market (bridging liquidity shortages),
- a credit authorization of EUR 100 billion to strengthen companies' capital (recapitalization),
- a further credit authorization of EUR 100 billion to refinance the KfW special programs.
Businesses that meet at least two of the following three criteria are addressed with these instruments:
I. total assets of more than 43 million euros;
II. more than 50 million euros in sales, as well as;
III. more than 249 employees on an annual average.
In order to support micro-entrepreneurs and the self-employed who are economically affected by the corona pandemic, the Federal Government has also decided on an emergency aid program in the amount of 50 billion euros. This includes the following measures:
- Companies with up to five employees (full-time equivalents) receive a one-time grant of up to 9,000 euros for 3 months.
- Companies with up to ten employees (full-time equivalents) receive a one-time grant of up to 15,000 euros for 3 months.
- If the landlord reduces the rent by at least 20 percent, the subsidy, which may not have been exhausted, can also be used for two additional months.
1.4 What the Government packages for the support of business (if any) include
In order to support employees and companies, the legal basis has been created in order to simplify access to short-time work benefits. The Federal Government has now also passed the relevant regulation to facilitate the receipt of short-time workers' benefits. This is intended to preserve jobs in factories during the corona pandemic and to avoid layoffs.
The federal government has established WSF that is aimed particularly at large companies and can provide large-scale aid. It supplements the liquidity aid through the KfW special programmes. The fund receives:
- 100 billion euros for corporate actions
- 400 billion euros for guarantees.
The fund can refinance KfW programmes that have already been approved with up to EUR 100 billion.
I. Making short-time work more flexible
In the future Companies will be able to get Short-time work benefits under easier conditions. Short-time work benefits can be applied for when ten percent of the employees are affected by the loss.
II. Tax liquidity aid for companies
For this purpose, deferral of certain tax payments is made easier, advance payments can be reduced more easily. Enforcement and late payment penalties are waived in connection with the corona effects.
III. Protection shield for companies and businesses
The liquidity of companies is protected by new measures that are unlimited in volume. To this end, the existing programs for liquidity support, such as KfW and ERP loans, will be expanded and made available to more companies.
2 Import to Germany
2.1 What sanitary and other measures importers may expect
In the fight against the coronavirus, Germany has largely blocked the borders to France, Austria, Luxembourg, Denmark and Switzerland for passenger traffic. Since 16 March 2020, there have been temporary border controls at the German borders with Austria, Switzerland, France, Luxembourg and Denmark.
For EU citizens as well as for third-country nationals, border crossings without a valid travel reason at the internal borders with Austria, Switzerland, France, Luxembourg and Denmark are no longer permitted. To prove a valid reason, travellers must be able to show valid documentation. These include employment contracts, order documents, a cross-border commuter card or a commuter certificate.
2.2 Is the quarantine for (lorry) drivers obligatory (and if yes, from which territories)
No, currently there is no quarantine obligatory for lorry drivers. See Section 1.1 above for measures importers may expect.
2.3 What other measures do importers have to consider
According to current information all lorry drivers are instructed not to get out of their vehicles. They should also receive protective equipment such as disposable gloves. When loading and unloading the goods, the driver must keep a minimum distance of 1 meter from other people. Transport papers and other documents should be sent via telematics.
3 Export from Germany
3.1 Is export from the country currently allowed (on 27 March 2020)
Yes, exports from Germany are generally still allowed. Irrespective of that, certain neighbouring countries may impose import restrictions which would / could apply, and which need to be considered in export activities.
3.2 Has the Government imposed a block of export from the country for certain goods (medical and pharma supplies, food etc.)
As of 19 March 2020, there are no longer any national export and transfer bans for medical protective equipment, which were previously subject to restrictions. Regardless of this, since 15 March 2020, there have been EU legal authorization requirements for the export of medical protective equipment based on the Regulation (EU) 2020/402. The regulation does not provide for exemptions that do not require approval.
3.3 Is testing obligatory for personnel involved in export activity (workers in logistics, drivers)
No, in Germany there is no such obligatory testing for personnel involved in export activity.
However, please note that other obligatory testing, other checks or even a quarantine may be obligatory in importing countries (i.e. countries into which the respective goods are exported). Thus, exporters should particularly also check the relevant obligations / status in the countries to which the respective goods should be delivered to.
1 Governmental Measures in Hungary
1.1 What the Government is doing to provide support to businesses impacted by coronavirus?
The Hungarian Government ordered a state of emergency in the country for 15 days on 11 March 2020. The Government also established extraordinary “action” departments to cover the needs of various specific sectors of the economy, to coordinate the communication between the market actors and the Government, to provide prompt answers to their problems and difficulties arisen in association with the crisis caused by the pandemic.
The Government has introduced numerous restrictions during the state of emergency to roll back the spread of the COVID-19 virus. The first package of provisions that is genuinely dealing with economic issues can be found in 47/2020. (III. 18) Government Decree which was issued on 18 March 2020.
The most important provisions of the above package are the following:
· debtors with loans from financial institutions are granted a provisional release from regular debt payment obligations until 31 December 2020, covering capital and interest payment as well;
· short term financial loans to business associations have been prolonged until 30 June 2020;
· loans granted effective as of 19 March may contain an interest rate exceeding the Hungarian National Bank’s base interest by the maximum of 5.00 per cent p.a.;
· labour provisions have been made more flexible and adapted to the situation e.g. by way the employer is now being entitled to check the employee’s health condition, the employer’s right to unilaterally order home office work, to change the working time schedule within 3 days etc. have been introduced;
The Government Decree contains specific measures for the fields of tourism, catering, leisure, culture, sport - as summarized more in details under Section 1.2 below.
The Government and the extraordinary action departments may in the close future announce further measures according to the actual needs of the economy and as the situation evolves.
1.2 Is there any supply chain support from the Government or professional associations?
Until now, the Government specifically decided on supporting only a limited number of industries and the relevant supply chains within, namely: tourism, catering, leisure, sport, culture (i.e. not any specifics on exporting-importing firms for the time being).
The ancillary or linked services assisting or supplying for these activities (e.g. import of goods for hotel operations) are not subject to the support measures. Only those business associations whose main activity is within these fields are supported.
Among these industry specific measures are the following:
· the Government provisionally remitted certain employer contributions (e.g. social contribution);
· employees working in these sectors do not have to pay pension contributions and the fee for receiving benefits of the health sector is the minimum fee declared;
· rental contracts – most of all property lease agreements - which are in connection with the above listed sectors may not be abrogated, rental fees may not be increased (e.g. typical for accommodation service providers);
· tourism development contribution (which qualifies as a type of tax) is suspended until 30 June.
The Government also suspended tax liability of micro and small businesses in a number of sectors, in particular the so called “itemized flat rate tax of small enterprises” in these sectors (e.g. taxi drivers, beauty care services, human health care services etc.) have been suspended until 30 June 2020.
The extraordinary action department for the “re-launch of economy” continuously cooperates and consults with the chambers of industry and commerce of various professions to identify critical difficulties requiring urgent interventions in further sectors, other than those named above.
1.3 Are there financial facilities (grants, security etc.) available to cover exporters disrupted by coronavirus?
Apart from what is presented above in Sections 1.1 and 1.2, at this moment, there are no further relevant measures taken by the Government.
Until now, as we stated above, the Government has suspended some tax liabilities in sectors that are affected the most by the economic impact of the epidemic but there are no financial facilities or aids which can be utilised from state funds by exporters. From time to time, the Government may arrange for extraordinary re-allocation of parts of the state budget for the sake of stimulating economy and supporting endangered economic sectors, and protective measures are swiftly decided and made in this period.
1.4 What the Government packages for the support of business (if any) include?
For the time being, only as analysed under Sections 1.1 and 1.2 above.
2 Import to Hungary
2.1 What sanitary and other measures importers may expect?
Apart from border controls that have generally been newly introduced (in the interest of restricting foreigners’ entry into Hungary) and except for quarantine and self-isolation for Hungarian lorry drivers (please refer to Section 2.2 below for details) there are no specific sanitary measures, at the moment, in respect of importers.
Hungary closed its border from foreign passenger traffic on 17 March 2020. Only Hungarian nationals can enter the country since then, but international freight transport is still generally allowed. In line with relevant EU measures, Hungary has identified and prescribed freight routes/corridors for inbound journey lorries and lorries in transit within the territory of Hungary. Lorries are allowed to enter the country only at designated border crossings and they must follow a designated transit route or inbound journey route, and they are allowed to re-fuel only at designated fuel stations.
At the moment the following 9 border-crossings are open for international freight traffic: (i) Rajka (Slovakia), (ii) Hegyeshalom, Sopron, Rábafüzes (Austria), (iii) Redics (Slovenia), (iv) Letenye (Croatia), (v) Udvar (Croatia), (vi) Röszke (Serbia), (vii) Csanádpalota (Romania), (viii) Záhony (Ukraine), (ix) Tornyosnémeti (Czech Republic).
At border crossings the lorries and drivers are checked whether they are entitled to enter Hungary - and the body temperature of the lorry drivers is measured.
Beyond the guidelines of the EU Commission on health-related border management measures concerning the COVID-19 emergency, no additional certifications have been imposed by Hungary on goods legally circulating within the EU single market.
2.2 Is the quarantine for (lorry) drivers obligatory (and if yes, from which territories)?
The Government declared that attention should be paid to border control and to the continuity of freight transport.
Lorry drivers with Hungarian nationality, while at the same time coronavirus symptoms cannot be established, must stay in provisional home-quarantine for 14 days. On the other hand, if they experience any symptoms on their own, they must remain in medical quarantine.
However, in order to ensure the continuity of freight transport, lorry drivers may return to work earlier, subject to the following conditions:
· the lorry driver is actually in a state of health to drive safely;
· the lorry driver has no symptoms of coronavirus;
· notification of the competent epidemiological authority of the place of residence of the driver is mandatory;
· the lorry driver has got disinfection and protective equipment in his lorry cabin;
· the lorry driver does not take part in loading, to the extent possible he stays in the cabin;
· the employer of the lorry driver also observes whether the above conditions are met.
It is unofficially confirmed by the Governmental bodies that the above protocol also applies to foreign drivers. Every foreign lorry driver while at the same time coronavirus symptoms cannot be established, will be subject to a medical and authority check and given an official resolution by the competent epidemiological authority. If, based on the resolution, the lorry driver meets basically the same conditions (as listed above in respect of Hungarian drivers), he can continue his work and journey.
2.3 What other measures do importers have to consider?
Apart from the above-mentioned measures no other specifics have been declared by the Government yet.
3 Export from Hungary
3.1 Is export from the country currently allowed (on 27 March 2020)?
Export from Hungary is allowed, and we are not aware of any official restriction at the moment (i.e. export may primarily be restricted by transit and final destination country rules).
3.2 Has the Government imposed a block of export from the country for certain goods (medical and pharma supplies, food etc.)?
According to a recent government decree, the Hungarian Government has prohibited on the 27 March 2020 the export of hydroxychloroquine sulphate, as well as any medicines and intermediate products containing such active substances during the emergency situation. Hydroxychloroquine sulphate is the essential raw material for producing a drug (medicine) that is already used in several other countries for the treatment of patients infected with coronavirus. Being one of the largest exporters of this raw material in the world, Hungary stopped the export thereof in order to protect and supply the Hungarian market and population with medicines.
3.3 Is testing obligatory for personnel involved in export activity (workers in logistics, drivers)?
Personnel involved in export activity are not subject of preventive testing, but they are obliged to wear preventive equipment.
1 Governmental Measures in Italy
1.1 What the Government is doing to provide support to businesses impacted by coronavirus?
On 17 March 2020 the Italian Government adopted a Decree Law called "Cura Italia Decree" (Decree Law of 17 March 2020 n. 18, published in the Official Gazette of 17March 2020 no. 70).
Cura Italia Decree introduces new extraordinary measures to provide support to business impacted by the COVID-19 emergency (hereinafter: “Measures”).
In general, the main purpose of the Measures is to preserve employment positions and to introduce a series of facilitations for companies in order to compensate the strong liquidity reduction due to the temporary stop of their activities.
The Measures can be classified into the following three areas:
(a) Measures to preserve employment positions.
These are the most emphasised Measures:
- social shock absorbers will be founded and made available to qualifying employers. Three are the social shock absorbers made available to companies: i) cassa integrazione ordinaria; ii) cassa integrazione straordinaria; iii) assegno ordinario FIS (art. 19 and 22 of the Cura Italia Decree). By means of these Measures, the salaries of the employees will be covered by social shock absorbers for a maximum period of 9 weeks.
- the period spent in quarantine by employees is equated to sickness (art. 26 of the Cura Italia Decree).
- the deadlines for payments of social security and welfare contributions are suspended (art. 60 of the Cura Italia Decree).
(b) Liquidity assistance to companies through the banking system.
These are the most emphasised Measures:
- for SMEs (i.e. companies with less than 250 employees, whose annual turnover does not exceed 50 million of Euros or whose annual balance sheet does not exceed 43 million of Euro) having registered office in Italy, it has been introduced an extraordinary moratorium for mortgages, leasing, credit facilities and maturing short term loans from banks or other financial intermediaries. This extraordinary moratorium will be effective until 30 September 2020 (art. 56 of the Cura Italia Decree).
- for companies that do not qualify as SMEs, there are, however, facilities for access to credit. The credit granted by banks and financial intermediaries to such companies will be guaranteed by Cassa Depositi e Prestiti S.p.A. (art. 57 of the Cura Italia Decree).
- a fund (“Fondo per la promozione integrata”) will be established to carry out a special communication campaign and to offer an appropriate support for exports and internationalisation in sectors impacted by the COVID-19 emergency (art. 72 of the Cura Italia Decree).
- a fund will be established to ensure the continuation of business activities in the sector of agriculture, fisheries and aquaculture (art. 78 of the Cura Italia Decree).
(c) Liquidity assistance to companies through tax provisions.
These are the most emphasised Measure:
- If a company transfers for consideration by 31 December 2020 pecuniary credits, both commercial and financial, that it holds toward defaulting debtors, it may convert, within certain limits, these amounts into a tax credit (art 55. of the Cura Italia Decree).
- the postponement, except those expressly excluded by the Measures, of tax compliance obligations expiring between 8 March and 31 May 2020. Such tax compliance obligations shall be fulfilled by 30 June 2020 (art 62 of the Cura Italia Decree).
Depending on the further development of this situation, the Italian Government might – and most probably will - adopt additional set of different and / or supplementing measures for other industries and economic sectors in need.
1.2 Is there any supply chain support from the Government or professional associations?
Yes, there are some supply chain supports. However, at this moment only for selected sectors.
In addition to the Measure listed in the previous paragraph, Cura Italia Decree also intervenes directly to support the companies whose activity is involved in the following sectors: agricultural, fishing and aquaculture; air transport and airport; show business.
In relation to agricultural, fishing and aquaculture activities, as mentioned in the paragraph 1.1 above, Measures are provided for the establishment of a fund to ensure that these companies can continue their commercial activities (art 78 of the Cura Italia Decree). Such fund is established in order to: coverage of interest payable on loans bank; coverage of interest expenses accrued in the last two years on mortgages; coverage of the costs caused by temporary cessation of fishing activity. The Ministry of Agriculture will determine how the fund will operate.
Moreover, the agriculture sector is among those sectors that will benefit from the fund called “Fondo per la promozione integrata” (art 72 of the Cura Italia Decree).
As regards the air transport sector, Measures provide for an increase of 200 million in the current solidarity fund (Fondo di solidarietà del settore aereo). The liquidity granted by this fund to air transport companies in a state of emergency will be destinated to pay the wages of the company's employees.
In order to access this fund, companies operating in the air transport or airport sector will have to enter into a special agreement with the Ministry of Labour and of Social Policy.
Finally, Measures provide for the establishment of two funds for emergencies in the show business sectors, in order to support this sector as a result of restrictive measures taken to contain COVID-19 emergency.
1.3 Are there financial facilities (grants, security etc.) available to cover exporters disrupted by coronavirus?
Measures provide for the establishment of a fund called “Fondo per la promozione integrata” (art 72 of the Cura Italia Decree).
Such fund aims to carry out a special communication campaign and to offer an appropriate support for exports and internationalisation in sectors impacted by the COVID-19 emergency.
The Ministry of Foreign Affairs and International Cooperation and Ministry of Economy and Finance will determine together how the fund will operate.
1.4 What the Government packages for the support of business (if any) include?
This question has - in summary and for the purpose of these Guidelines - been answered in the previous three questions. For now, it remains to be seen whether these measures are to be somehow expanded and/or amended in the following days and weeks.
2 Import to Italy
2.1 What sanitary and other measures importers may expect?
Currently there are no specific sanitary measures in respect of importers, except in some cases quarantine and self-isolation (please see below for more information).
Additionally, according to the guidelines of the EU Commission on health-related border management measures in the context of the COVID-19 emergency, no additional certifications should be imposed on goods legally circulating within the EU single market. In particular, as regards food, there is no evidence that it is a source or a transmission source of COVID-19.
2.2 Is the quarantine for (lorry) drivers obligatory (and if yes, from which territories)?
Quarantine and Self-isolation are not necessary for those who transit or stop in Italy for proven working need, e.g. foreign lorry drivers. Nevertheless, such people are obliged to leave the country within 72 hours of entry, extendable of an additional 48 hours for proven specific needs. However, for these people it is compulsory to fill out a declaration stating that they entry into Italy is due to a proven working need. With the same declaration these people undertake to report onset of COVID-19 symptoms to the Department of prevention of local health company and to undergo isolation (Decrees n. 120 of 17 March 2020 and n. 127 of 24 March 2020).
Quarantine and Self-isolation are not necessary for drivers of Italian companies who transit or stop in Italy and who are engaged in international transport (Decrees of 17 March 2020 n. 120 and of 24 March 2020 n. 127).
The decrees n. 120 and 127 will be effective until 3 April 2020. Their extension cannot be excluded.
2.3 What other measures do importers have to consider?
Ministry for infrastructure and transport together with the relevant trade associations, published a Protocol in which are provided for guidelines on security in transport and logistics.
According to such guidelines, if possible, drivers must not leave the cabin without gloves and masks. In any case, the vehicle may enter the loading/unloading area even if the driver is not wearing gloves and masks, as long as the driver does not get out of the vehicle or maintain a distance of one metre from other operators.
For the full test of the Protocol see: http://www.mit.gov.it/sites/default/files/media/notizia/2020-03/Linee%20Guida%20trasporti%20e%20logistica.pdf
3 Export from Italy
3.1 Is export from the country currently allowed (on 27 March 2020)?
Generally, export of goods from Italy is allowed. However, such export of goods should be seen in the light of the PCM Decrees of 22 and 25 March 2020, by which the companies listed in the respective annexes must suspend their activities and remain closed until 3 April. Therefore, until 3 April 2020, companies affected by such Decrees cannot send their goods unless expressly authorized by the competent authority (Prefetto).
The extension of such decrees cannot be excluded.
3.2 Has the Government imposed a block of export from the country for certain goods (medical and pharma supplies, food etc.)?
Directive of 17 March 2020 n. 4 issued by Customs and Monopolies Agency (one of the three tax agencies that carry out technical and operational activities formerly pertaining to the Ministry of Economy and Finance) imposes an authorisation for the export of items as ventilator devices and PPE like gloves, masks, protective overalls e goggles. In the absence of an authorisation, the export of such products is prohibited.
3.3 Is testing obligatory for personnel involved in export activity (workers in logistics, drivers)?
Personnel involved in export activity are not subject of preventive testing.
1 Governmental Measures in Slovenia
1.1 What the Government is doing to provide support to businesses impacted by coronavirus?
In Slovenia, there have been several measures adopted because of Coronavirus, e.g. general measures that impact people’s everyday life, such as prohibition of movement and gathering of people at public places and areas, with certain exceptions, as well as specific measures such as hold-up of court and administrative terms (with exception in urgent matters). Courts adopts their decisions and administrative units operate also only in urgent matters.
On 20 March 2020 the parliament adopted the “first package” of measures that aim to mitigate the consequences of Coronavirus. The government also prepared the so-called “mega package” of measures that would additionally mitigate the consequences. These measures are expected to be adopted in the following days. However, all these measures are subject of these guidelines.
Nevertheless, it should be considered that the situation is changing on day-to-day basis and that is crucial to follow the updated information on the measures and to check the detailed information on certain measure before making any decision.
1.2 Is there any supply chain support from the Government or professional associations?
In accordance with one of the measures, it will be possible to limit or prohibit the market and export of the agricultural products, foodstuffs and animals for human consumption. It will also be possible to limit or prohibit the import of the agricultural products, foodstuffs and animals for human consumption from Republic of Slovenia, all in the event if it will not otherwise be possible to ensure sufficient food supply in Slovenia. The legislation only presents the legal base for adoption of the measures, therefore the measures itself are currently not in force (yet).
The legislation also foresees the possibility of limitation of seeds', and seed and planting material's prices and the limitation of marketing of forest wood assortments.
1.3 Are there financial facilities (grants, security etc.) available to cover exporters disrupted by coronavirus?
The state already adopted certain measures of financial and tax nature:
- Taxpayers will be entitled to tax deferral for up to two years or up to 24 monthly instalments for a period of 24 months due to a loss of ability to generate revenue due to a virus epidemic; in this period the interest will not cumulate.
- The deadline for submission of annual corporate tax return and advance income tax and activity income tax return as well as for few other tax-related obligations are extended until 21 May 2020.
- The policy of tax enforcement procedures during a virus epidemic will be determined by the Minister of Finance.
- Borrowers (companies, sole proprietors, farmers, societies, cooperatives and institutions, as well as self-employed and natural persons, if they are Slovenian citizens) who will not be able to repay the loan for business reasons related to the effects of the virus will be entitled to apply to bank to postpone the payment of loan for non-matured liabilities for one year. Those who have been barred from operating the business by government order (e.g. pubs and restaurants), will not be required to prove the inability to repay the loan. The measure will remain in force for 18 months after the end of epidemic.
In addition to these, there are other measures that are expected, e.g.:
- the establishment of so-called guarantee scheme that would enable the state institution to buy receivables for which there is a possibility that they will not be repaid;
- shortening the payment term for payments from public funds to private suppliers to eight days;
- the contractual penalties for delays in performance in supply and services to public sector will not be exercised;
- the state will be solving the liquidity problems together with SID Bank with measures with the funds for indirect financing of companies via banks;
- unused funds from the European Social Fund will be directed to assist companies and institutions involved in the research and development of vaccines, medicines, coronavirus protective equipment.
The Ministry for Economy is preparing also measures for micro, small and medium enterprises together with Slovene Enterprise Fund. The Slovene Enterprise Fund has also launched a tender for low interest rate bank guarantees for faster, easier and cheaper acquisition of bank loans.
1.4 What the Government packages for the support of business (if any) include?
In addition to above financial and tax measures the following measures were either adopted either are expected to be adopted:
Other measures for maintenance of operation of companies and aid to employers:
Number of employers will not be able to provide work to their employees during these times and will refer their employees to wait for work at home. In order to preserve employment relationships, a measure was adopted whereby the state will reimburse 40% of the salary compensation to employers who will, due to the epidemic, refer at least 30% of employees to wait for work at home. If the employee is in quarantine based on ministry’s order and unable to perform work at home, the salary compensation will be fully reimbursed to the employer by the state.
Within further measures that have not been adopted yet, it is proposed:
- instead of employers the state will cover all the social security contributions of those employees that will be referred to wait for work at home;
- the contributions for the pension insurance of employees who remain at work will be paid by the state, both the contributions otherwise borne by the employee and the employer;
- the position of all those employees who do not work due to force majeure event (e.g. babysitting or having no transportation to work) will be equalled with the status of employees waiting for work at home;
- the compensations for all sick leaves during the epidemic from the first day onwards will be borne by the Health Insurance Institute of Slovenia, and not by the employer;
- the employments that are co-financed by the state will be additionally co-financed by the state in the amount of the difference between full co-financing and subsidy.
In accordance with the preposition such measures would be in force until May 31st, 2020, or afterwards if necessary.
Aid to self-employed
So far, in relation to the self-employed who have no other employees, and the self-employment is their sole basis for inclusion in compulsory social insurance, the payment of social security contributions that fall due in April, May and June is postponed. These contributions will have to be paid by 31 March 2022 at the latest. The condition is that the self-employed person has no outstanding obligations.
Further, it is proposed that self-employed who are unable to carry out their activities or perform them on a substantially reduced scale due to the crisis will be entitled to a monthly basic income of 70% of the net minimum wage. In the meantime, contributions to the self-employed will be paid into the pension and health insurance funds by the state.
Aid in agriculture
The state intends to mitigate the effects of the epidemic for farmers through the following measures:
- Farmers suffering from Covid-19 would be compensated with 80% of their minimum wage for the duration of their illness.
- Farmers may be entitled to reduction or writing-off of their pension contributions or postpone all social security contributions.
- For all owners of agricultural and forest land and beehives, the cadastral income tax for this year will be reduced by 50 percent.
- Greater purchase of agricultural products and foodstuffs for legal entities.
- Mooring permit holders for commercial fishing vessels are entitled to 40% of the payment remuneration.
- Aquatic organism growers are being cut their water reimbursement rate by 40% for this year.
- Etc.
Measures in traffic
State measures temporarily restricted or prohibited transport of passenger (air and other public passenger transport).
The prohibition on air transport does not apply to aircraft engaged in the international scheduled and special air carriage of goods or mail, and to aircraft operating international special air services without the carriage of passengers on flights to or from their base (so-called ferry flights).
Despite a temporary ban on public transportation, the state has recognized that vehicle repair services are urgently needed and can continue to operate (within one of the exemption of general prohibition to offer and sell the goods and services directly to consumers, which will be presented below). Like all emergency services to ensure public safety and health, they can continue to provide tow services and other roadside assistance. This does not apply to vulcanization services.
It is also prohibited to carry out technical inspections and other procedures relating to the registration of motor vehicles and work in tachograph workshops until 16 April 2020; the validity of traffic permits, including motor vehicle insurance, and ADR certificates for the transport of dangerous goods which, that expire in this period, shall be extended until 16 May 2020.
The state has also regulated the regime regarding the crossing of certain national borders:
(a) Republic of Slovenia – Republic of Croatia:
- The following border crossing points ceased to operate: Hotiza – Sveti Martin na Muri, Razkrižje – Banfi, Središče ob Dravi I – Preska, Drenovec – Gornj Voća, Zgornji Leskovec – Cvetlin, Rogatec I – Klenovec Hurnski, Rajnkovec – Mali Tabor, Podčetrtek – Luke Poljanske, Sedlarjevo – Plavić, Nova vas ob Sotli – Draše, Stara vas-Bizeljsko – Donji Černenovec, Rakovec – Kraj Donji, Planina v Podboču – Novo Selo Žumberačko, Brezovica – Brezovica, Radovica – Kašt, Krmačina – Vivodina, Božakovo – Orež, Krasinec – Pravutina, Žuniči – Priliće, Sodevci – Blaževci, Osilnica – Zamost, Podplanina – Čabar, Novi kot – Prezid I, Novokračine – Lipa, Starod I – Vele Mune, Rakitovec – Slum, Brezovica pri Gradinu – Lucija.
(b) Republic of Slovenia – Italian Republic:
- The Slovenian-Italian border is allowed to be crossed only at four “checkpoints”, that is Vrtojba, Fernetiči, Škofije in Krvavem potoku (while the first three will be open all the time, the Krvavi potok checkpoint is open between 5am and 11pm)
- Road freight transport, except for the transport of postal items, medicines, protective equipment and medical devices and humanitarian aid, from the Italian Republic to the Republic of Slovenia is not performed. The exceptions are freight vehicles (freight) whose final destination is the Republic of Slovenia or in transit and it is agreed with the neighboring country to accept the freight vehicle. Freight transit is organized (in certain directions) in convoys.
- Train passenger transport and international occasional and regular bus transport between the Italian Republic and the Republic of Slovenia are not performed.
(c) Republic of Slovenia – Republic of Austria:
- The Slovenian-Austrian border can be crossed at thirteen “checkpoints”, which are open at all times, except as indicated below):
Gornja Radgona – Bad Radkersburg,
Kuzma – Bonisdorf,
Holmec – Grablach (between 5am and 9pm),
Karavanke – Karawankentunnel,
Jurij – Langegg (between 6am and 9pm),
Vič – Lavamund (between 5am and 11pm),
Ljubelj – Loibltunnel,
Trate – Mureck,
Radlje – Radlpass,
Gederovci – Sicheldorf,
Šentilj (avtocesta) – Spielfeld (Autobahn),
Šentilj (magistrala) – Spielfeld (Bundesstrasse) (between 6am and 9pm),
Korensko sedlo – Wurzenpass (between 5am and 11pm).
- Passenger train transport between Austria and Slovenia is not performed.
- Transit of persons who are assumed to be unable to leave the territory of the Republic of Slovenia due to measures taken by neighbouring countries is not allowed.
At the Slovenian-Italian and Slovenian-Austrian borders:
- Entry into the Republic of Slovenia is allowed to a foreigner if he/she submits a negative report on the performed molecular laboratory test for the presence of COVID-19) in Slovenian, English or Italian/German language not older than three days, or if his/her body temperature is below 37.5 °C and does not show clear signs of upper respiratory tract infection (cough, sneezing, shortness of breath).
- Entry into the Republic of Slovenia is allowed to a citizen of the Republic of Slovenia and a person with permanent or temporary residence in the Republic of Slovenia. If he/she has a temperature higher than 37.5 °C or shows clear signs of upper respiratory tract infection (cough, sneezing, shortness of breath), he/she is informed of the instructions of the National Institute of Public Health.
Along with these measures, the measures taken by neighbouring countries shall also be considered.
2 Import to Slovenia
2.1 What sanitary and other measures importers may expect?
Importers can expect measures that are implemented at border crossings between Slovenia, Italy and Austria at operating border crossing points (see above).
2.2 Is the quarantine for (lorry) drivers obligatory (and if yes, from which territories)?
The Republic of Slovenia has not adopted the mandatory quarantine measure for (lorries) drivers. However, there is a general prohibition on the movement and gathering of people in public places and areas (with certain exceptions, such as: arriving and leaving for work and performing work tasks, access to pharmacies, grocery stores and agricultural direct sales, to health and sanitation services, to places for the sale of animal feed, to public parks and other walking areas, etc).
2.3 What other measures do importers have to consider?
In addition to measures relating to traffic itself, importers should take into account that in the Republic of Slovenia the supply and sale of goods and services directly to consumers is prohibited, with the exception of: grocery stores, including the sale of agricultural products on the farm, pharmacies, medical supplies stores and orthopaedic supplies, garden and agriculture programs in stores, agricultural stores, gas stations, banks, post offices, delivery services, traffics and newsstands for sale of newspapers and magazines, other essential services for public safety and health, and animal feed stores. From all forms of distance selling, only home delivery to the consumer is allowed.
Although the measure applies only to B2C relationships and does not interfere with B2B transactions, this measure may (in)directly affect the position of the importers, depending on the organization of individual supply and distribution chain.
3 Export from Slovenia
3.1 Is export from the country currently allowed (on 27 March 2020)?
There are no specific restrictions on exports in force so far, but it should be borne in mind that this may happen in the future (clarification in the next Section).
3.2 Has the Government imposed a block of export from the country for certain goods (medical and pharma supplies, food etc.)?
In accordance with one of the measures, it will be possible to limit or prohibit the market, export and import of the agricultural products, foodstuffs and animals for human consumption. The legislation also foresees the possibility of limitation of seeds', seed and planting material's prices and the limitation of marketing of forest wood assortments. The measure has been presented in Section 1.2 above.
3.3 Is testing obligatory for personnel involved in export activity (workers in logistics, drivers)?
o autoru
Mislav Bradvica
Mislav Bradvica je hrvatski odvjetnik poznat po svojem radu u polju parničnog prava, restrukturiranja te prava zaštite tržišnog natjecanja.