Decree No. 125 / 1975 Coll.

Decree of the Federal Ministry of Foreign Trade on the conduct of foreign trade activities for foreign enterprises

Valid Effective from 01.01.1976
125
DECLARATION
Federal Ministry of Foreign Trade
of 28 October 1975
on the conduct of foreign trade activities for foreign undertakings
The Federal Ministry of Foreign Trade provides pursuant to § 2 of Act No. 119 / 1948 Coll., on the State Organisation of Foreign Trade and International Shipbuilding, and § 36 (a) of the Act No. 133 / 1970 Coll., on the jurisdiction of federal ministries:
§ 1
General provisions
(1) Foreign trade activities for foreign enterprises may be carried out on the territory of the Czechoslovak Socialist Republic
(a) an organisation which is authorised to do so under the provisions of the Articles of Association;
(b) a commercial representative of foreign undertakings whose establishment has been authorised under Article 4;
(c) foreign nationals, when discussing with the relevant Czechoslovak Socialist Republic organisations authorised to do business abroad, shall conclude contracts for the supply of goods, services or other economic values, or the performance of such contracts, and shall stay in the territory of the Czechoslovak Socialist Republic for a period not exceeding six months, or shall take over the performance of such contracts for the period and to the extent resulting therefrom.
(2) The Federal Ministry of Foreign Trade may, where justified, extend the period referred to in paragraph 1 (c) on the basis of a proposal from the relevant Czech Foreign Trade Organisation.
§ 2
Commercial representation and mediation by Czechoslovak organisations
(1) Czechoslovak Socialist organisations may represent foreign undertakings if they have been authorised to do so or have been set up for that purpose; represent them on the basis of trade or mediation contracts.
(2) The Czechoslovak Socialist Organisation for the Representation of Foreign Enterprises establishes and authorises such activities are granted by the Federal Ministry of Foreign Trade after consulting the relevant central authorities of the Republics.
(3) The scope of the authorisation referred to in paragraph 1 may include in particular:
(a) the provision of data to Czechoslovak organisations on the characteristics of goods or the nature of services offered by a foreign enterprise;
(b) consideration of the relevant Czechoslovak organisation authorised to do business abroad on the basis of the authorisation of, on its behalf and on its behalf, the conclusion and execution of contracts for the supply of goods or services or other economic values;
(c) in the framework of the contracts referred to in paragraph 1, ensuring the promotion of a foreign enterprise, the provision of technical services and services, and the establishment of conformity warehouses for goods.
(4) The authorisation to represent foreign undertakings does not include the authorisation to import or export goods. The import and re-export of the goods into the conformity warehouse established under paragraph 3 (c) shall be subject to the procedure of the Czechoslovak organization authorised to import the goods.
(5) Organisations authorised to represent pursuant to paragraph 1 may import or export the items necessary for such activities to the extent and under the conditions laid down in the authorisation.
Commercial representative of foreign enterprises
§ 3
(1) A foreign enterprise may set up its commercial representative and use its activities in the Czech territory only on the basis of authorisation and under the conditions laid down therein.
(2) An organisational component of a foreign enterprise engaged in foreign trade activities, including the promotion of goods, services or other economic values, shall be considered as a commercial representative.
(3) Authorisations for the establishment of a commercial office shall not be required to involve foreign enterprises in trade fairs and exhibitions and in similar forms of promotion organised by the relevant Czech Socialist organisations.
§ 4
(1) The authorisation to establish a commercial office is granted and the conditions for its operation are laid down by the Federal Ministry of Foreign Trade, with the approval of the Federal Ministry of Finance for a certain period of time, normally not exceeding one year. However, if a foreign firm requests an extension of the authorisation at least one month before the expiry of its period of validity, the commercial representative may continue his activities to the extent specified, pending a decision on the application.
(2) In the application for authorisation, the foreign undertaking shall indicate in particular its name and registered office, subject matter of business, amount of capital, persons acting as statutory bodies of a foreign enterprise, the scope of the proposed activities of the commercial agent and its legal status within a foreign enterprise. The data on the holding shall be supported by officially certified documents. The application must indicate which Czechoslovak organisations the foreign enterprise was with before the application was made in economic contact and to what extent. The application shall be made in the Czech or Slovak language.
§ 5
Authorisations for the establishment of a commercial office may be granted only to a foreign undertaking which is involved substantially in economic relations between the State in whose territory it is established and the Czechoslovak Socialist Republic.
§ 6
(1) The Federal Ministry of Foreign Trade shall revoke an authorisation granted under Paragraph 4 (1) if:
(a) in the course of or in connection with the activities of the commercial office, the provisions of the Czech legislation or conditions laid down in the authorisation shall be infringed;
(b) the commercial representative does not serve the purpose set out in the authorisation or, if that purpose has been abandoned;
(c) the abolition of the commercial office requires important interests of the Czech economy.
§ 7
This decree does not apply to banking and international rail, air, road and river transport.
§ 8
The Foreign Trade Minister Decree No. 136 / 1968 Coll., on the Representation of Foreign Enterprises in the Czechoslovak Socialist Republic in the conduct of foreign trade, as amended by the Foreign Trade Minister Decree No. 165 / 1969 Coll.
§ 9
This Decree shall take effect on 1 January 1976.
Minister:
Ing. Barčák v. r.

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Regulation Information

CitationDecree of the Federal Ministry of Foreign Trade No. 125 / 1975 Coll., on Foreign Trade Activities for Foreign Enterprises
Regulation Type-
Author-
CollectionCode of Laws
Date of Promulgation19.11.1975
Effective from01.01.1976
Effective until-
Status Valid
The regulation text is for informational purposes only.
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