Decree of the Federal Price Office, Czech Price Office and Slovak Price Office No. 113 / 1985 Coll.

Q: Is Decree of the Federal Price Office, Czech Price Office and Slovak Price Office No. 113 / 1985 Coll. still valid?

Yes, Decree of the Federal Price Office, Czech Price Office and Slovak Price Office No. 113 / 1985 Coll. is still valid and effective.

113

DECLARATION

Federal Price Office, Czech Price Office and Slovak Price Office

of 5 November 1985

on prices

Federal Price Office pursuant to § 47 of Act No. 133 / 1970 Coll., on the jurisdiction of federal ministries, Czech Price Office pursuant to § 6 of the Act of the Czech National Council No. 134 / 1973 Coll., on the jurisdiction of the authorities of the Czech Socialist Republic in the field of prices, and Slovak Price Office pursuant to § 2 (2) (g) of the Slovak National Council Act No. 135 / 1973 Coll., on the jurisdiction of the authorities of the Slovak Socialist Republic in the field of prices, provides:

§ 1

Scope

(1) This Decree

(a) regulates the pricing of products, performance, services and work1) (hereinafter referred to as "products"); where the provisions relate only to performance, services or work only to performance) and price control;

(b) it regulates and covers the functions of central authorities, the responsibilities of the groups, the branch companies and the Directorate-General for Trust and other economic management bodies acting as the central management article (hereinafter the Directorate-General) and the responsibilities of the organisations, the organisational units of the state organisations, the regional and sectoral bodies of cooperative organisations, the bodies and the organisational components of the social organisations acting on their behalf (hereinafter the "organisation") in the field of prices, and disseminates in more detail the price coverage of the national committees established by the laws of the National Council (3);

(2) The Decree applies to the prices of products supplied or supplied (hereinafter referred to as "supplied") by organisations based in the Czechoslovak Socialist Republic, to the prices of products supplied by citizens authorised by the competent authorities4) or to the prices of other products supplied by citizens to socialist organisations. Prices from contracts between citizens, citizens and non-socialist organisations and between non-socialist organisations, if not from citizens on the basis of a permit or authorisation, are covered by the Order to the extent provided for in the Civil Code. In the case of intra-corporate performance, the Order applies to determine the prices of basic funds produced under its own direction. Further internal performance shall apply only where the law or decision of the price authority so provides.

(3) The decree shall apply only to the price of transfers of ownership or the management of national property outside the normal management and to compensation for temporary use between socialist organisations, the method of valuation of buildings, land and crops for the purposes of transfers or transfers of ownership to them, the method of determining the remuneration for the establishment of the right of personal use of land, the compensation for the temporary use of land in relation to citizens and the remuneration for the temporary use of buildings or parts thereof, unless otherwise provided for in specific provisions. 5)

(4) The decree does not apply to foreign prices of imported and exported products, international tariffs on transport and communications, prices of products supplied in the Czech Republic for foreign currencies, prices of products sold by foreign cultural information centres, fees and charges associated with the provision of cash and insurance services, the sale of apartments from national property to the personal property of citizens, refunds provided for the expropriation of real estate and the registration prices of packaging. In doubt, the Federal Price Office decides in agreement with the Czech Price Office and the Slovak Price Office.

(5) If the term

(a) "price office" means the Federal Price Office, the Czech Price Office and the Slovak Price Office, within the scope of their competence under Sections 60 and 61;

(b) "National Committee" means the Regional National Committee, the National Committee of the City of Prague, the National Committee of the Slovak Socialist Republic of Bratislava or the Regional National Committee within the scope of their territorial competence and pursuant to Article 70;

(c) "price authority" means the price authority, the national committee and other central authorities, provided that they are entrusted by a special regulation, by this decree or by a decision of the price authority with the scope referred to in the provisions in which that concept is applied;

(d) "organisation within the price range of national committees" means organisations and citizens under the laws of the national councils. 3)

ČÁST PRVNÍ

BASIC INJURY

Prices

§ 2

(1) Domestic prices reflect the socially necessary costs. They shall be differentiated according to cost and net income components (price components), product directions and their period of validity.

(2) The following types of prices shall apply to the national economy:

(a) wholesale prices; contain the necessary costs of production (imports) and, where applicable, the costs of sales and the profit or loss resulting from the production method used; in the case of agricultural products, they shall also include a premium for purchasing and, where appropriate, sales; for these prices, products are supplied to organisations for production consumption, investment, security of defence and security of the State and other sales, except for deliveries for export and supply to internal trade organisations for resale;

(b) buying-in prices; their economic content is similar to that of wholesale prices; at these prices, authorised organisations shall purchase agricultural products from their producers, articles obtained by collection and products from citizens; the buying-in prices may be applied, as decided by the price authority, to products manufactured by agricultural holdings from agricultural raw materials,

(c) purchase prices; include the price of the Czechoslovak Commercial Bank's foreign price in the trade parity reduced on export and increased on import by foreign direct trade costs, converted into Kčs according to the conversion rates for socialist organisations established by the Czechoslovak Commercial Bank (hereinafter referred to as the "conversion rates'), adjusted, where appropriate, for other items according to special regulations, and the trade premium or trade collision of the organisation responsible for conducting foreign trade (hereinafter referred to as the" Foreign Trade Organisation '); at these prices, domestic suppliers of export products to foreign trade organisations and to foreign trade organisations shall supply import products to domestic customers, unless trade prices or sales prices with a difference in the internal market are applied to imported products supplied by foreign trade organisations at the level of the basic and additional turnover tax or as decided by the Federal Price Office of the Wholesale Price,

(d) commercial prices; cover wholesale (purchase) prices and basic rate tax on turnover or purchase price and the differences in the internal market generally at the level of the basic rate tax on turnover, in the cases provided for include a sales premium; products from domestic production or from imports for resale at retail prices to organisations eligible for a trade haircut are supplied at these prices,

(e) retail prices; include trade prices and trade reductions, where applicable, include a trade or sales premium, a price difference and, where appropriate, other components designated by the price authorities; only products are sold to citizens at these prices; the organisations are supplied at retail prices with products at retail or other suppliers, if they are products for which the turnover tax is generally applied and the organisation is required to purchase at tax prices or, where applicable, other products designated by the price authority,

(f) wholesale prices with turnover tax; include the wholesale price, basic rate and additional turnover tax or, where appropriate, instead of the additional tax, the sales premium if the additional tax is not fixed or is lower than the sales premium; non-market products are supplied at these prices to non-market customers which are subject to tax charges under tax legislation and do not have to buy at retail prices under (e); in the cases provided for, such prices shall be valued at the material and spare parts consumed, including when supplying performance to citizens.

(3) Where the level of wholesale and retail prices is the same, the price shall be assessed as retail for supplies to citizens and as wholesale for deliveries to organisations.

(4) Those types of prices apply as prices

(a) established and negotiated in the manner determined by this decree and subsequent decisions of the price authorities and laid down by a price authority authorised by the Directorate-General or by an authorised body; or

(b) agreed by the supplier's agreement with the customer in accordance with a specific regulation. 6)

(5) The price authority may fix prices as maximum permissible (maximum) or minimum (minimum) or indicative (with a fixed maximum and minimum limit) which are binding on the fixing or negotiation of prices for each product.

§ 3

(1) The types of prices referred to in Article 2 may be determined with a limited time or quantity as provisional or, where appropriate, temporary prices, or may be used as price limits or provisional prices prior to their own production. The price limit and the provisional price cannot be used for invoicing and in payment forms.

(2) The provisional price shall be that established by the supplying organisation where, for reasons which are independent of it, the final price cannot be fixed until the time required for invoicing. Following the determination of the definitive price, the difference between the provisional and the definitive price shall be settled from the beginning of the deliveries. The provisional price must be labelled as provisional on the invoice. The provisional price, not being the product for which the retail price is fixed, may be used by the supplier organisation:

(a) under the conditions laid down in other provisions of this Order or in a decision of the price authority or, where appropriate, of the national committee; or

(b) in the case of products intended primarily for the downstream (final) product, if their customer applies such a requirement when discussing the price proposal to ensure that the downstream product is linked to the price; the provisional price may be applied no longer than the time when the price of the downstream product is determined;

(c) on a case-by-case basis, for a maximum of six months, on the basis of the written agreement of the price authority or the national committee; a request from the Directorate-General or an organisation directly managed by a central authority or an organisation under the responsibility of the national committee to agree to the use of the provisional price shall contain a precise indication of the product and a justification for the need to establish the provisional price.

(3) The transitional price shall be the price whose validity is limited by time or quantity of products. The difference between the provisional price and the final price shall not be dealt with by customers and shall not be considered as a change in price in terms of the effect of the prices on both the supplier's and the customer's plan indicators. Transitional prices shall be fixed by the price authority or the national committee.

(a) under the conditions laid down in other provisions of this Order or in decisions of the price offices or national committees; such prices may also be determined by the organisation under a specific mandate of the price authority; or

(b) on a case-by-case basis, to deal with the consequences of objectively necessary temporary higher costs for economically significant or in exports of efficient products resulting from the solution of the technical development plan and not having a price advantage. Where the wholesale price exceeds one calendar year, it shall be set at the same time for subsequent years at decreasing prices (tiered prices).

(4) The price limit determines the upper limit of the price of the future domestic or imported product, or the lower limit of the purchase price of the exported product. The price limit should be established in such a way that, for a production vehicle, it ensures a price reduction per unit of the determining parameter and, for a product subject to foreign exchange, it ensures an improvement in export efficiency at the time of implementation. Only the price authority may set a price higher than the wholesale or retail price limit. The scope of the application of price limits, the methods of their formation, the procedure for their discussion and the establishment of the price limits is regulated by a specific regulation.7)

(5) The provisional price shall be the supplier's information on the amount of the price where the final price cannot yet be determined and the price information is necessary in particular for the conclusion of the contract. According to the available evidence, the method of pricing used in the product group concerned and, if not applicable, the provisional price shall be determined by an estimate. The provisional price may not be used for a product for which a price limit is or is to be set. The provisional price shall apply:

(a) if this results from legislation (8) or other provisions of this decree or from a decision of the price authority;

(b) the valuation of the products supplied for construction, (9) if the conditions laid down in this Decree are not met to determine their wholesale prices;

(c) the valuation of the products purchased and the subcontracting needed to create the price limit or price of the product.

ČÁST DRUHÁ

TVORBA CEN

§ 4

Price formation procedure

(1) Price formation includes:

(a) determining the method of pricing;

(b) processing of the draft price;

(c) discussion of the draft price with the main customers;

(d) price fixing.

(2) The price is defined for a new product by significant quality and substantial delivery conditions and unit of measurement. As the one for which the price is formed, it is possible to determine

(a) an individual product or part of it which is the subject of a separate supply; or

(b) the period of performance (e.g. hourly rate); or

(c) a product group with similar quality and delivery conditions (group price); or

(d) a set of different products forming a functionally or otherwise integrated delivery (e.g. aggregate price).

§ 5

Significant quality and substantial delivery conditions

(1) The essential quality and essential delivery conditions include the selected technical level, utility characteristics, quality and type of product, the scope and conditions of its delivery which are decisive for the customer and, where appropriate, the conditions laid down by the price authority. The essential qualitative conditions are defined by the selection of the relevant technical documentation used in the field (product group), in particular from state, branch, corporate or foreign standards, from technical conditions, from drawing, sample, model and for non-standard products from the customer's requirements. The essential terms of delivery are defined in particular under the basic terms of supply, technical conditions, general terms of price lists, economic and other contracts and delivery orders (hereinafter referred to as contracts).

(2) The definition of substantial quality and substantial delivery conditions (hereinafter referred to as "essential conditions") is part of the new product price proposal. The proposal to define them shall be submitted by the supplier in a manner which is the most appropriate and administratively simple for the case. The collector may require a different definition of essential conditions from the supplier's design, but only within the applicable technical documentation and the applicable rules referred to in paragraph 1. In the absence of an agreement between the supplier and the customer, the definition of the essential conditions shall apply as required by the customer (main customers). Where neither the supplier nor the customer proposes to define the essential conditions, all the conditions applicable to the product shall be considered to be relevant and, failing the relevant documentation, the conditions resulting from the price calculation.

(3) A higher reliability of operation, longer service life, or an improvement in other material conditions of the new product verifiable only when used, may be expressed in terms of price in proportion to the costs needed to achieve them only if the supplier provides at the same time a guarantee to customers for their compliance, or if the improvement has been verified and confirmed by the state (department) testing.

(4) In the case of performance, all the conditions by which performance is determined shall be considered to be relevant.

(5) The change in the substantial qualitative conditions under which the price was determined shall not be regarded as a change in the different labelling or valuation of identical raw materials, materials and products, in particular the differences between their prices on domestic and import supplies, or the difference resulting from replacing the purchase of the product by its own production and vice versa. The same applies to changes in scales of wage tariffs, changes in valuation of other costs and changes in production technology which do not alter the essential conditions of the product.

§ 6

New product

(1) New for the purposes of this Decree means a product which differs from a specified price by one of the essential conditions and which, at the same time,

(a) satisfy social needs which have not yet been met or, where appropriate, satisfy social needs otherwise than before; or

(b) allows for a reduction of production costs or economic benefits for domestic customers or for exported products to improve export efficiency; or

(c) to better meet the needs of the population in line with the purchasing demand.

(2) Also considered as new product

(a) which has a fixed price but establishes its production by an organisation for which price uniformity does not apply;

(b) the price in force, the production of which has ended because it has been replaced by imports and which must be re-produced to ensure a smooth supply or high import prices; the fixed wholesale price, which shall cancel the price still in force, shall be lower than the current purchase price of the imports.

(3) A product shall not be considered new,

(a) where additional adjustments ensure compliance with the essential conditions applicable to the specified price of the product already produced, or with changes in the essential conditions resulting in an increase in prices to which customers disagree;

(b) where changes in the essential conditions caused by the supplier do not cause an increase in the wholesale price of the existing product by more than + 3%. The amount of this derogation shall be determined by calculating the price in the manner used in the product group concerned. The supplier may apply this provision even if the price is higher than + 3%.

(4) Paragraph 3 (b) does not apply to:

(a) a product the wholesale price of which is made up of a binding pricing method pursuant to Articles 11, 12, 13 (2) (a), established by the price authority;

(b) a product for which the price of a particular performance is made up by means of price increases (haircuts) to the price of the basic performance, provided that they are set in price lists or decisions of the price authorities pursuant to Article 22 (d).

§ 7

Price formation methods

(1) The Directorate-General, the organisations and the national committees propose to the price authorities, according to the specific conditions of each product group (s), the application of pricing methods which:

(a) are in line with the planned development of the relationship between internal and foreign prices and consumer products with the planned relationship between wholesale and retail prices;

(b) ensure an economically justified relationship between prices and the essential conditions of the products and, in the case of means of production, lead to a price reduction per unit of the decisive parameter or enable the customer to achieve a different economic benefit;

(c) objectifying the calculation methods of pricing by calculating the cost of production and circulation only on an economically justified basis, for parallel production the maximum average cost of excluding marginal producers, and by differentiating the profit rates according to the final efficiency of each production.

(2) The different pricing methods corresponding to the conditions set out in paragraph 1 and the scope of their binding application shall be laid down in paragraphs 8 to 17. The pricing methods and the compilation of price calculations are more detailed in the decision of the price authorities. 10)

(3) The pricing arrangements approved by the price authority for each product group (s) must be used by all organisations for which price uniformity applies (hereinafter referred to as the "binding method"), unless the scope of the price authority's decision is limited. The proposal for a binding pricing method submitted for approval shall include, in addition to the justification, a pre-agreed form of a certificate of influence on the price level of the relevant product group.

(4) To the extent provided, price authorities leave the decision on the method of pricing to the supplier organisation and allow the price to be negotiated by agreement between the supplier and the customer.

(5) The Directorate-General and the price fixing organisation, as well as the price authority, may fix a lower wholesale price for the new product than the price established in a binding manner or in accordance with Sections 8 to 16. The lower price applicable to all customers shall be determined in particular where the application of a new technique or the accumulation of the production of a new product allows such a process, or where the price of a comparable product includes high costs of production and excessive profits, or where a decrease in the wholesale price is necessary to approximate internal prices with foreign prices.

§ 8

Deriving prices from foreign price relations

(1) The price is derived from the average relationship between the prices of two foreign products, one of which is similar to the new product and the other domestic product with a valid wholesale price. Where such products are manufactured in more than one State, they shall be used to establish foreign price relations from at least two States.

(2) A proposal for the price of a new product must be made by foreign price relations, if the price authority or national committee so decides, as well as a proposal for the price of a new, re-supplied product whose expected production volume, calculated using the price limit and, if not, by the provisional price, is higher than 5 million CZK for the first three years, is the product,

(a) which is the result of a solution to the task of the technical development plan and is also expected to be exported; or

(b) which is incomparable in domestic terms and would have to be created in accordance with Paragraph 15.

(3) Where the price formation of the new products referred to in paragraph 2 is determined as a binding method in accordance with Articles 11, 12 or 13 (2) (a), the organisation shall also draw up a proposal for its wholesale price in this binding manner. The Directorate-General or the bodies responsible for fixing prices may determine the higher of the two prices only after its registration (11). Without registration, they can only set a lower price.

(4) The relevant foreign trade organisation shall, upon request, provide, free of charge and where appropriate, the data necessary for the correct application of foreign price relations, at the latest within 30 days of the receipt of the request, unless otherwise agreed between them.

(5) If the foreign trade organisation does not provide the necessary data on foreign price relations, it shall transmit to the domestic organisation all the supporting documents obtained, including the technical economic evaluation of foreign markets, supplemented by a calculation and justification of the average attainable price of the French Czechoslovak border of the new product.

(6) Foreign price relationships do not apply when creating performance prices, parts for production and replacement consumption, and if, according to a special adjustment (12), the foreign trade organisation may not have the relevant foreign price documentation and would have to be provided only for remuneration in foreign currency.

§ 9

Deriving the wholesale price from the export price

(1) The wholesale price of the new product is derived from the price actually reached at the Czech border franc and, if not, from the estimate of the average achievable price of the Czech border franc at export to correspond to the applicable level of wholesale prices in the sector concerned in the relevant production organisation.

(2) The exemption of the wholesale price from the price of franco čs. border at export applies

(a) for the exclusively exported product, on the basis of its actual price achieved in individual commercial cases; where such a product is subsequently re-delivered to the country and is not a delivery for which a price can be negotiated by agreement, 6) a price shall be established and determined in a manner used for the relevant field (group); the price thus determined shall apply to all other domestic deliveries;

(b) in the cases referred to in Article 8 (5), on the basis of the average attainable price negotiated between the foreign trade organisation and the processor of the draft price;

(c) in other cases, as decided by the price authority.

§ 10

Derivatives of wholesale price from retail price

(1) The wholesale price of the new consumer product is derived from the draft retail price of the new consumer product by deducting from the proposed retail price the basic rate tax on turnover and the trade withholding and price difference if included.

(2) This method of setting the wholesale price applies

(a) on a proposal from a trading organisation or, where appropriate, a production organisation, if it is for a product sold exclusively at its stores, if the wholesale price proposed presented would lead to a retail price at which a new product could not be sold and the application of a negative price difference is not justified;

(b) in other cases, as decided by the price authority.

§ 11

Parameter methods

(1) In parametric ways, the price of the new product is determined on the basis of a demonstrable price dependence on the size of the critical technical economic use parameters found for more comparable products. These pricing methods include, in particular, price series, price indicators and scoring methods.

(2) The parametric method applies

(a) in cases where the price authorities are established as a binding means;

(b) in other cases, where changes in material conditions against comparable products can be largely expressed by measurable quantities and the prices of the necessary number of comparable products are determined, and where the organisation or production unit has the necessary computing techniques to apply the automated calculation of the parametric method.

§ 12

Price standards

(1) Price standards are sets of consumption standards for direct material, direct wages, other direct costs, indirect cost and profit rates which are binding on the compilation of price calculations. The standard of direct wages and the allocation of indirect costs and profits is a necessary condition for price standards, either separately for individual calculation items or as a complex item.

(2) The price of a new product is created by price standards only when price standards are approved by the price authority.

§ 13

Construction

(1) The price of the new product shall be the sum (difference) of the prices of all its parts and performances (by total building method) or by adding (by subtracting) to the price of the comparable product of the prices or amounts recorded by calculating the price of the increasing (decreasing) parts and performances that do not yet have a fixed price (combined building method).

(2) Where there is no obligation to create a price for a new product in any of the ways set out in Sections 8 to 12, the following shall apply:

(a) a complete construction method where the conditions for its use are,

(b) a combined modular method in cases where a partial change of the product already manufactured is involved, a substitution of the direct material which is reflected in the price, a change in the range of accessories of the product, or where the use of that method is requested by the main customers when discussing the price proposal made pursuant to § 14 or 15.

§ 14

Calculation comparison

(1) The price of the new product is calculated using a comparison of the price calculation of the new product with that of the comparable product.

(2) The calculation comparison is applied to the price formation of a new product which is comparable to the product produced so far and if it is not necessary to use any of the price formation methods in accordance with Sections 8 to 13.

§ 15

Individual price calculation

(1) An individual price calculation is made up of the price of a new product on the basis of a price calculation based on the conditions of the production organisation.

(2) In this way, the price of the new product is formed,

(a) which is not comparable with the products manufactured to date by its essential quality conditions and where it is not necessary to create a price pursuant to § 8 to 10 or § 13 (2) (a),

(b) in other cases determined by this decree or decision of the price authority.

(3) Prices generated by individual price calculations are subject to verification in the range and manner established by the price authority. 10)

§ 16

Price formation of products included in other production activities

(1) The method of pricing products included in other production activities shall be determined by a supplier organisation which may either take on a binding method or use another economically justified and administratively simple method. The Directorate-General or the Central Authority for Directly Controlled Organisations may determine the method of pricing or lay down other conditions for pricing in subordinate organisations.

(2) The other production activities include, in particular, products produced in ancillary and auxiliary production, products using secondary sources arising from the main production, products falling in a sector other than the main production activity or, where appropriate, non-volume-relevant branches of the main activity. The scope of products included in other production activities and the conditions for changing their wholesale prices are regulated by the decision of the price authorities. 10) and 13)

§ 17

Price negotiation by the supplier with the customer

(1) Price negotiations and changes by agreement between the supplier and the customer are applied in particular to express rapidly changing conditions of production and consumption (seasonality, fashion), individual conditions of individual suppliers and customers and to simplify the process of pricing and price changes as far as possible.

(2) The conditions to be complied with when negotiating prices and the list of products for which a price or price change is permitted by agreement of the supplier with the customer are laid down in a separate regulation. 6)

§ 18

Price adjustment in terms of terms of implementation conditions

(1) The proposal for the price of a new product created by some of the pricing methods in addition to the method provided for in Sections 16 and 17 may be further adjusted to highlight the conditions of implementation, namely:

(a) to achieve the necessary price relation of the new product to the prices of products interchangeable under Paragraph 19;

(b) to avoid the negative effect of the price of the new production vehicle on the costs of customers under Paragraph 20;

(c) to favour or disadvantage the price of the product under Article 21.

(2) Price authorities may establish different prices of the same product for suppliers and customers (double prices) or, where appropriate, for certain suppliers or customers where:

(a) the single price cannot be ensured by its desired effect on both suppliers and customers;

(b) there is an interest in unilateral application of the conditions of implementation either by the supplier or by the customer.

(3) The adjustment of the wholesale price referred to in paragraph 1 (a) and (b) or, as the case may be, in accordance with paragraph 2, shall be reflected at the same time as the increase (reduction) of the calculated profit when pricing pursuant to paragraphs 12, 13 (2) (b), 14 and 15. In the case of a price advantage or disadvantage referred to in paragraph 1 (c) or, where applicable, in accordance with paragraph 2, this adjustment shall be reflected either as a premium or a deduction to the basic wholesale price or as an increase or reduction thereof (discounted and disadvantaged price). The basic price to be determined before the start of deliveries shall be the price without any price advantage or disadvantage. The adjustment of the retail price, if not reflected in wholesale prices at a relatively equal rate, is always reflected as a price difference. Both the wholesale price and the retail price may be adjusted only on the basis of the same reason referred to in paragraph 1 when applying the conditions of implementation.

(4) The prices adjusted in accordance with paragraph 1 or 2 shall be amended by the price authorities on a proposal from the supplier or customer or, where appropriate, by the organisation responsible for carrying out such changes. Proposals for changes to the retail prices adjusted in accordance with paragraph 1 (a) shall be submitted to the price authorities by the central authorities or national committees.

(5) The possibility of proposing, where appropriate, price adjustments under the conditions of implementation shall not be used unilaterally by organisations to increase prices.

§ 19

Price relation

(1) The processor of the design of the wholesale price established pursuant to § 8 to 15, the processor of the design of the retail price and the authorities and organisations to which price proposals are being discussed may propose, in order to achieve the necessary price relation of the new product to the prices of products already delivered, an increase or reduction in order to:

(a) to ensure that prices are in line with the planned development of material proportions of basic raw materials and materials, the need for their interchangeability and partial or full compensation of imports by domestic production;

(b) promoting social objectives in political, health, cultural and other areas of social and social development;

(c) the creation of an interest of both the supplier and the customer in accelerating scientific and technological development and in expanding internal and international specialisation and cooperation to allow for a relative price reduction;

(d) the more efficient use of consumer product prices to establish the consistency of resources and needs and to replace products in the desired structure and positions of prices, quality and execution, with the exception of products representing essential living needs.

(2) The price relationship directly creates the price of a new product, which is produced as a by-product of the technological process of production of another product (so-called combined production), or when the same product is produced using different technologies or different raw materials and materials.

(3) The procedure laid down in paragraph 1 cannot be applied in the field of wholesale prices if:

(a) increase the price created pursuant to Sections 8 to 11;

(b) the difference indicator of exports of the new product has deteriorated against the comparable product or against the average difference indicator of exports of the sector in the organisation, if this is higher;

(c) it is contrary to the price authorities' measures to improve the pricing of new products, in particular the effect of updating the calculation rates to the level and the change in the price of new products.

(4) In cases where the price of a new product would be negative for production because of the relatively high price of a comparable product, it is necessary to propose a change in the price of a comparable product in order to achieve the necessary price relation.

§ 20

Effect of the price of the new production facility on the costs of the customer

(1) The wholesale price of the new production facility must be established in such a way as to allow the cost reduction of customers, except in cases justified by the corresponding non-economic effects of the new product, such as improving the safety of work, removing strenuous work and improving the working and environment. The method of calculation and the scope of its compulsory application shall be determined by decision of the price authorities. 10)

(2) In order to calculate the effect of the use of the new production facility on the costs of the customer, the customer is obliged to provide the necessary supporting documents within 30 days, if the organisation fails to evaluate the longer term, and to comment on the calculation submitted by the supplier with the price proposal. For the price procedure, the customer may submit his own calculation.

(3) An organisation may, within its scope, set a price only at an amount which complies with the conditions set out in paragraph 1. If the customer does not agree with the calculation of the supplier, the supplier shall submit the price proposal to the price authority as well as the minutes to discuss the divergent views of the supplier and the customer, including their justification.

§ 21

Price advantage and price disadvantage

(1) The price advantage is applied in such a way as to achieve a mutually advantageous price for both suppliers and customers, enabling the supplier to make a profit higher than that resulting from the pricing methods set out in paragraphs 8 to 15 and to reduce costs or otherwise meet needs more effectively. Price handicaps are used to reduce the economic disadvantage of the production of socially undesirable products, to limit the production or consumption of certain products, to sell hard-to-sell products, or to increase prices only for customers.

(2) Price advantage and price disadvantage ensure differentiation of product prices according to their technical, economic, quality and efficiency levels. Furthermore, the price advantage is used in particular to promote the production of fashion novelties, luxury products, products of exceptional quality, products replacing the exclusive import and products with reduced energy performance.

(3) The application of a price advantage must not be contrary to the security of the production and sale of products of lower price positions and to the improvement of the relationship between internal prices and foreign prices. The price advantage may be linked to compliance with other conditions, in particular to ensure the necessary extent of supply of existing products, 14) products of standard design, quality and technical level.

(4

(a) consumer products classified in the lowest grade, (16) if they have a fixed retail price and are also delivered to market funds, compound feed and protein concentrates labelled in accordance with special regulations for reduced-quality feed;

(b) products which have not been delivered during the period of validity of the decision to classify the product in the lowest grade 16) or at a time when they are technically obsolete.

(5) The additional levy as a price disadvantage for the final domestic and imported products not secured by spare parts or service services, 17) is imposed by the price authority and by the additional levy instead of the price disadvantage in cases other than those referred to in paragraph 4, by the price authority or the national committee.

(6) The price advantage and the price disadvantage referred to in paragraph 2 shall not apply:

(a) for imported products, except products proven to be fashion novelty or luxury products, products of exceptional quality and products put up for sale;

(b) for products for which subsidies are granted for wholesale prices from the state budget, except for the price disadvantage of food products and products labelled as feed of reduced quality;

(c) the volume of exported products;

Citation	Decree of the Federal Price Office, Czech Price Office and Slovak Price Office No. 113 / 1985 Coll., on Prices
Regulation Type	-
Author	-
Collection	Code of Laws

Date of Promulgation	10.12.1985
Effective from	01.01.1986
Effective until	-
Status	Valid

Order of the Federal Price Office, Czech Price Office and Slovak Price Office on Prices

Contents

§ 1