While what can and can't be sold as pálinka is governed by strict EU laws that require the use of only fruit grown and distilled on Hungarian soil, tens of thousands of liters of illegally distilled fruit brandy are appearing on the Hungarian market each year, while the number of legal distilleries in the country is falling continuously. The reason being that laws pertaining to distilling hard liquor by other names in neighboring countries are much more liberal, writes napi.hu. In Hungary, excise duty applies to pálinka and other spirits and high fines are meted out to anyone found making the firewater illegally. By contrast, in Austria and Germany, distilling "Obstler" or "Schnapps" is allowed for personal use, while distilled alcohol is subject to taxes in Slovenia, but distilling equipment is free of limitations and inexpensive. Fruit growers interviewed by the portal said there is thriving market for legally transporting food abroad, distilling it and smuggling it back to Hungary with or without irregular papers. The illegal business is also helped by the worsening economic situation, increasing the incentive for residence of border areas to work as "alhocol couriers" smuggling "pálinka" across borders, such as hiding it in the windscreen washer tanks of cars. All of which kind of dilutes the government's aggressive marketing efforts and increases your chances of drinking the worst pálinka ever.