Decree of the Federal Price Office, Czech Price Office and Slovak Price Office No. 137 / 1973 Coll.

Q: Is Decree of the Federal Price Office, Czech Price Office and Slovak Price Office No. 137 / 1973 Coll. still valid?

Yes, Decree of the Federal Price Office, Czech Price Office and Slovak Price Office No. 137 / 1973 Coll. is still valid and effective.

137

DECLARATION

Federal Price Office, Czech Price Office and Slovak Price Office

of 2 November 1973

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

Preliminary provisions

(1) This Decree provides

(a) the methodology for the production and control of prices (tariffs) of products, services, performances and works1 (hereinafter referred to as "products") and properties supplied or provided for use for remuneration (hereinafter referred to as "supplied");

(b) the scope of bodies and organisations or group undertakings and group special-purpose organisations (hereinafter referred to as "organisations") in the production and control of prices.

(2) The Decree applies to prices of products and real estate supplied by organisations and bodies established in the Czechoslovak Socialist Republic, to citizens of socialist organisations and to prices of products supplied by citizens authorised by the competent authorities or on the basis of authorisations. In the case of in-house performance, the Order shall apply to the determination of the prices of own-production investments and, where applicable, to other performances, where provided for in a specific regulation or decision.

(3) The decree does not apply to prices of products supplied by organisations in charge of foreign trade (hereinafter referred to as "the Foreign Trade Organisation ') to foreign customers, international tariffs in transport and communications, prices of products supplied in the domestic territory for foreign currencies, fees and refunds associated with the provision of monetary and insurance services, the sale of apartments from national property to the personal property of citizens, the registration prices of packaging, compensation for damages, reimbursement of costs and compensation provided for the expropriation of real estate. The decree shall also not apply to the prices of contracts between citizens and between citizens and non-socialist organisations, except for supplies from citizens under paragraph 2. In doubt, the Federal Price Bureau decides.

ČÁST PRVNÍ

BASIC INJURY

§ 2

Price content

The price shall include the necessary costs corresponding to the average or uniform conditions of production (import) and circulation, and the part of the net income (profit, tax) determined below, or loss or subsidy, if applicable. The method of determining the necessary costs and net income or loss is set out in the various provisions of this decree.

§ 3

Domestic prices

(1) The domestic prices are:

(a) wholesale prices; for these prices, products for production consumption, construction, other sales, with the exception of supplies to commercial organisations, and for defence and security of the State are normally supplied; wholesale prices shall include the cost of production (imports) and, where applicable, the cost of sales of the production organisation and profit or loss; for agricultural products, they shall also include a premium for purchasing, supplying and, where appropriate, marketing activities;

(b) buying-in prices; at these prices, authorised organisations shall purchase agricultural products sold by their producers, items obtained by collection and products from citizens; their economic content is similar to that of wholesale prices;

(c) sales increases or discounts; (2) represent the price of the service of the sales, supply, purchase and purchase organisations or organisations authorised to do such services; contain circulation costs and profit or loss; are added to or deducted from wholesale prices;

(d) trade increases or trade reductions; (2) the price of the service of organisations authorised for wholesale or retail activities, the price of the service of public catering organisations and transitional accommodation, the price of the service of foreign trade organisations or the price of the service of the catering services; contain circulation costs and profit or loss; trade increases are added to prices, trade reductions are components of retail prices; the trade increases or trade reductions of the foreign trade organisation are components of buying prices;

(e) purchase prices; at these prices, domestic suppliers supply export products to foreign trade organisations and to foreign trade organisations import products to domestic customers; include the price of the franko čs. border, adjusted, where appropriate, for additional items in accordance with the applicable rules, and the trade premium or trade haircut of the organisation of foreign trade,

(f) sales prices; the products referred to in point (c) shall be delivered at these prices, except where they supply at commercial and retail prices; sales prices include wholesale prices, purchase or purchase prices and the sales premium of the relevant organisation, or price differences or subsidies, where applicable,

(g) commercial prices; domestic products or imports intended for resale at retail prices shall be supplied at these prices to organisations eligible for a trade haircut; include wholesale (purchase) prices and turnover tax or purchase price, price increases or reductions in foreign trade and differences in the internal market, including, where provided, the sales premium,

(h) retail prices; only products are sold to citizens at these prices; the organisations are supplied at retail prices with products purchased by retail or by other suppliers, if they are products for which the turnover tax is generally applied and the organisation is required to purchase at "tax prices' under tax legislation; include the trade price and the trade withholding and, where applicable, the price difference and, where applicable, the trade premium and the additional turnover tax,

(ch) wholesale prices with turnover tax; for these prices, products are supplied to non-market customers which are under tax legislation required to purchase at "tax prices'; in the cases provided for, consumable materials and spare parts shall be charged for these prices even when the performance is supplied to citizens; include the wholesale price, basic rate and additional turnover tax and, where appropriate, the sales premium if the additional tax is not fixed or is lower than the sales premium.

(2) Derogations from the essential quality or essential delivery conditions of the product can be expressed in the form of price increases or price reductions; the increases or reductions for deviations from significant qualitative or delivery conditions constitute a price corresponding to those variations.

(3) A price premium may also be expressed as a price advantage and a price discount may be expressed as a price disadvantage; These increases and discounts constitute a way of applying the conditions for implementation in prices.

(4) 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 where they are entitled to purchase without tax under turnover tax rules.

§ 4

Foreign prices

(1) Foreign prices for the purposes of this Order in the field of foreign trade are:

(a) prices in the trade parity, which are the prices agreed between foreign trade organisations and foreign exporters or importers under agreed quality, delivery and payment conditions;

(b) the prices of the French Czechoslovak border, which are prices in trade parity, reduced on export and increased on import by the level of direct commercial costs abroad.

(2) Foreign prices are expressed in foreign currencies, on the one hand, in conversion to KCs according to the conversion rates established by the Czechoslovak State Bank.

§ 5

Specific types of prices

(1) Special types of prices shall mean the prices referred to in Article 3, which shall have, in substance or in time, the terms of paragraph 2 and 3 below.

(2) The specific types of prices that can be invoiced are:

(a) provisional prices fixed by the price authority or, with its agreement, by the organization responsible for fixing the prices, unless otherwise determined by the price authority, for a maximum period of 3 months in cases where, exceptionally, the price cannot be fixed before the start of the supply; after fixing the price, the difference between the provisional and the definitive price shall be settled from the beginning of the supply; provisional purchase prices shall be agreed by the organisation; provisional prices cannot be used for products for which retail prices are fixed,

(b) corporate prices to be set or amended by the Directorate-General for Trust or Concerns (hereinafter referred to as "the Directorate-General") for subordinate organisations for supplies between organisations within the production unit, provided that the level of corporate prices calculated for the period in question must not exceed the level of prices applicable to customers outside the production unit. Compensation between corporate and wholesale prices shall be made by the Directorate-General and, where appropriate, by the central supervisor,

(c) the temporary prices to be determined by the competent price authority or the national committee or, where appropriate, by the organisation responsible for setting them up by the competent price authority and whose validity is limited by the time or quantity of products so valued; after their expiry, the price shall be determined as for the new product; temporary prices for products delivered at retail prices may be determined only by the price authorities or, where appropriate, by national committees pursuant to § 68.

(3) The specific types of prices which cannot be invoiced are:

(a) preliminary prices made up of suppliers in good time before their own production, where the essential conditions of the product and its manufacture are not sufficiently clarified, necessary for the determination of the price; they are used, in particular, for the ex ante valuation of supplies in the building budgets, where the rules on building documentation permit, for the ex ante valuation of works and services and research and development work; for the production of these prices, the provisions on pricing methods apply mutatis mutandis, depending on the degree of technical clarification of the product; if they cannot be used, the provisional price shall be established by an expert estimate; the provisional price may not be used for the product for which a provisional or definitive price limit is or is to be fixed and for the product for which the purchase price limit is agreed, provided that the purchase price is the basis for the creation of a wholesale or, where appropriate, a registered wholesale price; the procedure for the consideration of preliminary prices used for the compilation of calculations or budgets of buildings is governed by a special regulation, 64)

(b) the registered wholesale export prices and the registered wholesale import prices; the registered wholesale export prices shall apply to products which are only exported; are made up in similar ways as wholesale prices of products delivered to the domestic market; if these products are to be delivered to the domestic market, their wholesale prices should be fixed; the scope of application, method of production and price management of the registered wholesale import prices shall be determined by the relevant price authority;

(c) price limits; These are the pre-definition of the upper limit of the price of new products, mainly addressed in the framework of the tasks of scientific and technological development.

§ 6

Additional components of prices and additional items to prices attributable (from prices deductible)

(1) In the cases provided for, they are part of the price apart from the cost and profit (loss) of the complementary price component. In addition, in specified cases, prices shall be added to or subtracted from the additional items. Additional components and additional items are usually fixed (rates or other means) and are usually transferred to the State Budget or referred to from the State Budget according to the principles laid down by the Federal Ministry of Finance or other competent authorities in an agreement with the Federal Price Office.

(2) The additional price components are:

(a) turnover tax and, where appropriate, differences in the internal market for imported products in accordance with the regulations of the Federal Ministry of Finance;

(b) the price difference, which is generally the difference between the trade price and the retail price after deduction of the trade deduction, or the difference between the different prices of each supplier and the uniform sales price;

(c) price increases and reductions in foreign trade according to the regulations of the Federal Ministry of Finance.

(3) The additional price entries are:

(a) subsidies to prices attributed or deducted from them;

(b) supplements to the purchase prices of agricultural products.

(4) The use of certain additional components or additional components may be determined on a unilateral basis, taking into account the need to stimulate production or consumption, either for the manufacturer or for the customer, and may be set at a predetermined time or quantity of deliveries.

ČÁST DRUHÁ

QUALITATIVE AND QUANTITATIVE CONDITIONS OF THE PRODUCT

§ 7

Method of product definition

(1) The price of a product defined by the same quality and delivery conditions is uniform throughout the territory of the Czechoslovak Socialist Republic, unless this decree provides for or explicitly permits price inconsistencies.

(2) The qualitative conditions for the purposes of this Decree are the definition of the type of new product, the unit of measurement, its characteristic characteristics, characteristics, dimensions, functional, aesthetic and other performance characteristics, the quality and types of materials and performance used, the design, surface treatment, completeness, completion, range of equipment and spare parts, methods of testing, labelling and other similar conditions.

(3) The qualitative conditions shall be demonstrated in particular by national and sectoral standards, technical conditions and, if they are not, business quality standards, precise technical description, drawing, sample, model or breakdown of the composition of the materials and performance used, i.e. such technical documentation as is customary for the product or product group concerned.

(4) The delivery conditions for the purposes of this decree are defined as the quantity of supplies, delivery periods, dispatch arrangements, packaging and transport conditions, documentation and commercial technical services related to delivery, warranty periods and other similar conditions.

(5) Delivery conditions are determined

(a) legislation, in particular the basic conditions of supply;

(b) general provisions on price lists or other price decisions which may supplement or adapt in more detail the delivery conditions for the purposes of fixing prices;

(c) economic contracts or delivery orders for each delivery.

§ 8

Important quality and delivery conditions of the product

(1) The definition of the quality and delivery conditions of the product must include all the essential conditions in such a way that they are verifiable and allow for a clear assessment of its differences from other comparable products ("substantial qualitative and delivery conditions").

(2) Quality and delivery conditions are considered to be relevant

(a) the mandatory conditions laid down in the legislation, in particular in the basic conditions of supply and in national and sectoral standards; the supplier may agree with the customer, with the agreement of the competent price authority, that certain binding conditions of the state or industry standard in force at the time the draft price is drawn up, are not considered to be relevant in view of the determination of the price level and that no new product pursuant to Article 11 is produced when the price is changed;

(b) the conditions included in the technical conditions, the company quality standards, the technical description, the drawing and the breakdown of the composition of the materials and performances used, where appropriate by the sample or model, the recommended conditions in the rules referred to in (a) and the conditions of delivery referred to in points (b) and (c) of Article 7 (5), provided that they are not considered irrelevant on the basis of the customer's proposal;

(c) other conditions not included in the supporting documents referred to in points (a) and (b), where the customer requests, and agrees with the supplier, to add them to the relevant documentation and marking as essential;

(d) other conditions provided that they are laid down by the competent price authorities.

(3) The definition of the essential conditions applies simultaneously to all types of prices of the product concerned; any deviations from the essential conditions must be reflected at a relatively equal rate in all types of prices. This provision does not apply to purchase prices and to cases where delivery conditions are different for individual types of prices or for individual customer stages (e.g. wholesale and retail).

(4) A change in the substantial qualitative conditions under which prices were determined shall not be regarded as a difference in the valuation of identical raw materials and materials resulting from differences in prices and costs of their acquisition, in particular differences between domestic and foreign suppliers' prices and differences resulting from the replacement of purchases of products by their own production and vice versa. The same applies to changes in scales of wage charges and changes in the valuation of other costs.

ČÁST TŘETÍ

TVORBA CEN

HLAVA I

INTRODUCTORY PROVISIONS ON CEN

§ 9

(1) Prices are established for products defined by substantial quality and delivery conditions, where appropriate for:

(a) individual new products or parts thereof;

(b) a group of well-defined products in cases where products of a wide range have similar quality and delivery conditions and which are usually produced by the same technology at minimum differences in production costs and where the relevant price authority or national committee so provides,

(c) summaries of the various products and works generally forming functionally integrated deliveries.

(2) For a product which, under its essential quality and delivery conditions, or other specified conditions, can be included in a product group for which a price has already been fixed, that price shall apply.

§ 10

(1) Price formation includes:

(a) processing of the price proposal;

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

(c) the fixing and publication of the price.

(2) The price of the new product is based on the conditions of its production and circulation; where justified, the price shall be adjusted taking into account the conditions of implementation.

(3) Where a price adjusted under the conditions of implementation is fixed for a limited period, a price corresponding to the conditions of production and circulation (hereinafter referred to as "basic price ') shall be set at the same time.

(4) The prices established in accordance with the provisions of this Order are considered to correspond to the applicable price level.

(5) When creating prices for new products belonging to the sector (group) for which wholesale prices will be changed according to the price development plan or any other measure of the price offices, it is necessary to establish wholesale prices for new products at both present and new levels before and after the price change is approved. The details are governed by the decision of the price authorities. 74)

§ 11

New product

(1) A new product for the purposes of this Decree is a product which, by its new solution and improvement of its performance characteristics, satisfies social needs which have not yet been met, or otherwise satisfies them, or makes production more economical, or increases the efficiency of its use with customers.

(2) Furthermore, a new product is considered to be:

(a) it has a price fixed for the conditions of unit production and will continue to be produced repeatedly;

(b) has a temporary price to be fixed which expires or has an agreed price and a price to be fixed by the competent authority or organisation;

(c) has a fixed price but its production is introduced by another organisation for which price uniformity does not apply within the meaning of the Order;

(d) has a fixed retail price in accordance with Article 129 (1) (ch) or (7) and its sale is introduced by a public or cooperative organisation.

(3) The new product referred to in paragraph 1 must comply with the new definition of essential quality and delivery conditions.

(4) A product which differs from the product supplied to date by other than substantial quality and delivery conditions, or for which the difference of material conditions cannot be sufficiently clearly expressed, and a product with characteristics which should have already been given to it under the essential conditions under which the price of the product produced to date (removal of defects of the products supplied) and a product with undesirable changes to substantial quality and delivery conditions has been determined.

(5) Changes that have not been agreed with the main customers in the prescribed manner shall be considered as undesirable changes to substantial quality and delivery conditions, except for changes to the national or sectoral standard.

(6) Furthermore, the new product is not a product which has achieved savings or substitution of a direct material labelled as a substantial quality condition compared to the comparable product or products manufactured so far without deteriorating the other essential quality conditions of the product. Compliance with other material quality conditions shall be demonstrated by the consent of the customer (main customers) and, for re-supplied products, by a written statement either by the state service or by the competent organisation designated by the supplier's agreement with the customer, that saving or replacing the direct material does not, in particular, impair the quality, functional characteristics and service life of the product for the customer. The organisation shall keep a record of the following products:

(a) the year of the start of deliveries;

(b) the designation of the product;

(c) the effect of savings or substitution on costs of direct material (saving per product in absolute value and percentage of costs of direct material),

(d) the percentage of the intended profit of the product (from processing costs and, where appropriate, from another basis established by the price authority), including the impact of the savings referred to in (c).

The provisions of this paragraph shall not apply in cases where the decision of the competent price authority on the method of pricing or the substitution procedure and the saving of direct material is defined differently.

(7) For the products referred to in paragraph 6, even if their current designation (name) is maintained, the authority or organisation authorised to fix the price of the new product shall confirm the validity of the current price in a decision made pursuant to Paragraph 98 (4). It shall indicate as a way of pricing that it is the price taken over of an existing product, indicating the size number or the decision by which the price was determined. The provisions of Section 77 do not apply to these products.

§ 12

Price formation methods

(1) The conditions of production and circulation are expressed in the price

(a) new products or parts thereof, which are comparable to products (parts) produced so far, by any means of price comparison;

(b) new products or parts thereof which are not comparable to products which have been manufactured so far on the basis of individual calculations.

(2) A price comparison ensures that the price of a new product or part of a product is up to the price of a comparable product (parts of the product) in the proportion in which the cost of production and circulation of a new product (parts of the product) is comparable to that of the production and circulation of the product (parts of the product).

(3) The price comparison applies in particular in the following ways:

(a) a calculation comparison;

(b) price standards;

(c) parametric methods,

(d) construction method,

(e) foreign pricing;

(f) calculation of the efficiency of the use of the new product;

(g) a combination of the methods referred to in points (a) to (f).

(4) Price standards and parametric methods should be used for price formation if they have been approved by the competent price authority or, where appropriate, by the competent national committee. Where one of the other pricing methods or combinations thereof is elaborated on the terms and conditions of each production (industry, product group) and approved by the competent price authority or, where appropriate, by the relevant national committee, it shall be used by all organisations for which price uniformity applies (hereinafter referred to as "the binding pricing method '), provided that the decision of the price authority does not limit its scope.

§ 13

Compare Product

(1) The new product or part thereof is compared

(a) a single comparable product or parts thereof which have a fixed price ("the comparable product");

(b) several comparable products using the parametric pricing method.

(2) Compare the product is fully or partly interchangeable, which

(a) it has the same or similar quality characteristics in terms of customer and the same or similar technical solution and is produced by the same or similar technology;

(b) it has the same or similar quality characteristics in terms of customer and the same or similar technical solution in the absence of the product referred to in (a);

(c) it has the same or similar quality characteristics in terms of customers and is produced by the same or similar technology in the absence of the product referred to in (a) or (b);

(d) it is produced by the same technology in cases where a single technology is used and where there is no product as referred to in (a), (b) and (c).

(3) If the condition referred to in paragraph 2 is met by several products and if a comparable product cannot be selected according to the degree of approximation of quality characteristics, the product whose profitability at the time of drawing up the price of the new product is the closest profitability of the relevant production sector in the production organisation, and if there are more than one such product, the product whose price has been established at the latest shall be determined as comparable.

(4) A comparable product shall be determined irrespective of the territorial and organisational competence of the production organisation, with the exceptions provided for in paragraph 6.

(5) Only the basic prices of the comparable and new product can be compared when pricing pursuant to § 23 to 26. The comparison shall not be made for works of an industrial nature unless the price authority concerned decides otherwise.

(6) The new product cannot be compared

(a) imported products where the producer of the new product is an organisation based in the Czechoslovak Socialist Republic; prices of imported products as well as prices on foreign markets may be used for comparison in cases where the price is formed pursuant to § 26a and § 28 (2) (b);

(b) products for which price inconsistency between organisations supplying a new and comparable product is established or allowed by decree;

(c) products manufactured before the last change in the price level of the relevant sector, product group, etc., the price of which has not been adjusted in the context of this change or is not transferred in the design of the price of the new product to the applicable level in the manner set for the price change;

(d) in the case of repeatedly manufactured products with products whose prices are fixed for the conditions of unit production or whose prices are valid for less than the minimum production quantity;

(e) products whose prices have been created by individual calculations and are not yet verified;

(f) products manufactured for special purpose only,

(g) products for which special prices are fixed in accordance with Article 5;

(h) products the prices of which have been agreed by agreement.

(7) Suppliers of comparable products shall, upon request, provide to suppliers of new products, free of charge, the supporting documents for the comparable product needed for the design of the price of the new product.

HLAVA II

EXAMINATION OF THE CONDITIONS FOR PRICE PRODUCTION

Oddíl první

Price calculation

§ 14

(1) The basis for determining and changing wholesale prices is a calculation drawn up in accordance with the regulations of the Federal Ministry of Finance for the calculation of performance prices, (4) which is adjusted in terms of the level of costs included in the individual calculation items, according to the provisions of this Decree ("price calculation").

(2) The method of determining the amount of costs included in each price calculation item is set out in Sections 15 to 22. The provisions relating to individual costs are mandatory even if, according to the applicable sectoral calculation formulae, some costs are included in other calculation items.

(3) Price calculations are not compiled where the price of the new product is derived from the methods set out in Sections 25 and 26 (2) (a), when making price changes to a larger extent and where the relevant price authority so provides.

§ 15

Direct material

(1) The consumption of direct material is calculated according to the material consumption price standards in force, where their use for the price formation of the new product is determined. in other cases, it shall be calculated according to applicable national or sectoral technical economic standards and, if not, shall be calculated on the basis of corporate consumable standards. When creating a price by calculation comparison, savings and substitution of a comparable product, expressed in its operational calculation or in another type of calculation of its own costs and other components of the price ("calculation '), 65), are reflected in the consumption of the direct material, the use of which is determined by the competent price authority for price formation. If additional savings and changes not reflected in the price calculation of the comparable product are achieved for the new product, the procedure laid down in paragraphs 23 (6) (b) and 23 (8) shall be followed.

(2) Direct material shall be valued at the applicable wholesale prices or sales prices established pursuant to Paragraph 45 (5); wholesale sales prices with turnover tax or retail prices shall be valued in cases where the organisation is obliged to purchase at these prices. The use of other types of prices and basic prices at a time when favourable or disadvantaged prices are in force shall be governed by a decision of the relevant price authority. Under the conditions set out in paragraph 4, direct material shall be valued at the planned prices according to the sectoral, sectoral or intra-corporate prices in force. Price authorities may decide in which cases direct material is valued at a price other than the price in force. 75)

(3) Where different but interchangeable direct materials with different prices can be used for the same purpose and such materials are not a significant quality condition, the price calculations of the new product shall include those of the direct materials used in the production of the comparable product at the time of drawing up the draft price of the new product. Materials that are not used for a comparable product or new materials used for products whose prices are made up by individual calculations shall be included in the price calculated by the weighted average of the prices applicable at the time of the price design and the purchase structure planned for at least the first year of production. These prices shall be included in the inside price lists of the materials at the same time.

(4) Planned prices based on the inside price lists of materials may be used if they have been drawn up in accordance with accounting rules and if, in the accounts, the differences found between those prices and the actual prices, exceptionally increased by the cost of the acquisition referred to in paragraph 5, do not exceed 1,5% in the previous calendar year; if the difference is higher, the inside price list of the materials shall be adjusted. The difference of 1,5% is considered to be the total consumption of material in the organisation. This difference shall not include differences between the purchase price and the wholesale price on which the State budget is involved, as well as differences arising from materials and products which are calculated in the prices of the new products, at prices determined in accordance with Article 53 (2) (a) or (b). The adjustment of the inside price list of materials in cases where the difference is more than 1,5% shall be made no later than 30 June of the year following the difference, with the new inside price list valid from that date for the valuation of the direct material in price calculations of new products delivered after 1 January of the following year. Organisations using sectoral or sectoral material price lists shall report differences above 1,5% to the price authority which approved the price list. The provisions of this paragraph shall not apply to calculations covered by a separate regulation. 65)

(5) The applicable wholesale prices, sales prices pursuant to Article 45 (5), wholesale sales prices with turnover taxes or retail prices, as the case may be, cannot be added to and the planned prices of internal prices of materials cannot include the share of the supply overhead or other costs of acquisition (sales surpluses, freight costs, loading, unloading, etc.), which are normally calculated in indirect costs, except in cases approved by the Federal Ministry of Finance in agreement with the Federal Price Office.

(6) The price calculation shall not allow averaging of the prices of direct material, unless the averaging included in the internal, sectoral or sectoral pricing or averaging referred to in paragraph 3, as appropriate. The competent price authority may provide for another procedure.

(7) By-products, 66) Invalid material and waste resulting from the production of the product are valued in its price calculation at the price of possible use. The price of possible use shall be determined from the price for the prevailing use of these materials, less any costs of their adjustment, transport, etc. In addition, for by-products their calculated profit is deducted.

(8) By-products, non-full material and waste used as direct material in production are valued in the price calculation at a fixed price. Where that price is not fixed, the price shall be valued at:

(a) the price of the full material if the use of the incomplete material or waste does not degrade the essential quality conditions of the product against those achieved with the use of the full material; or

(b) a lower price (67) than the price of the full material, the necessary increase in the cost of their use being reflected in the processing costs; This procedure shall not result in higher own production costs than at the valuation referred to in point (a).

(9) Subcontracting shall be carried out mutatis mutandis in accordance with paragraphs 1 to 6.

§ 16

Self-manufactured semi-finished products

(1) Consumption of own production semi-finished products is calculated in accordance with the provisions of Paragraph 15 (1).

(2) The competent price authority may provide that, in the price calculation, self-produced semi-finished products are valued at uniform wholesale prices.

§ 17

Direct wages

(1) Direct wages shall be calculated on the basis of the price standards in force, provided that their use is determined for the price formation of the new product; in other cases they shall be calculated on the basis of applicable labour consumption standards and standards, 5) tariff qualification catalogues and scales of wage tariffs.

(2) Premiums and rewards, when included in direct wages under the applicable calculation formula, are calculated at the level specified, unless established, are calculated on the basis of a comparable product and using an individual calculation in accordance with the facts of the previous calendar year.

§ 18

Other direct costs

(1) The other direct costs shall be calculated on the basis of the price standards in force, where their use is determined for the production of the new product. in other cases, individual cost items, where they are included in other direct costs according to the respective calculation formulae, shall be calculated as follows:

(a) according to national standards, applicable prices and rates (in particular social security contributions, consumption of technological fuel and energy, depreciation of basic funds, travel expenses),

(b) at the percentage rates and bases for their calculation set by the competent price authority (in particular the cost of technical development, the preparation and operation of new products and new production technologies, depreciation of special products, the technologically justifiable losses from scrap, guarantee corrections), unless national standards, prices or rates referred to in (a) are laid down for the relevant cost items;

(c) by dividing the total amount of these costs by the corresponding quantity of production where it is not possible to follow point (a) and the procedure referred to in point (b) is not established.

(2) Costs related to licences, inventions, industrial designs, trade marks, improvement proposals and other cost items for which accounting rules allow depreciation to be carried out within 4 years shall be allocated to the quantity of production envisaged for a period of 4 years, except where the production of the product in question is to end earlier or where, exceptionally, a longer period has been set for the allocation of such costs. The depreciation of such allocated costs within those deadlines does not constitute an obligation to lower the price if the product is further produced. When calculating the cost of inventions and licences, technical development costs for the same purpose may not be included in the price.

§ 19

Indirect costs

Indirect costs are calculated

Citation	Decree of the Federal Price Office, Czech Price Office and Slovak Price Office No. 137 / 1973 Coll., on Prices
Regulation Type	-
Author	-
Collection	Code of Laws

Date of Promulgation	02.11.1973
Effective from	01.01.1974
Effective until	-
Status	Valid

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

Contents

§ 1