Act No. 142 / 1970 Coll.
Foreign exchange Management Act
Valid
Effective from 01.01.1971
142
THE LAW
of 21 December 1970
on foreign exchange holdings
The Federal Assembly of the Czechoslovak Socialist Republic decided on this law:
In the interests of the planned development of Czechoslovak participation in the international division of labour and the development of foreign trade, to ensure smooth payment with foreign countries and to protect the Czechoslovak currency, the foreign exchange monopoly of the Czechoslovak Socialist Republic, as well as the rights and obligations of participants in foreign exchange relations, is regulated by this Act in line with the intentions of state economic policy expressed by national plans for the development of the national economy.
State foreign exchange monopoly
The Government of the Czechoslovak Socialist Republic manages the foreign exchange economy and oversees the implementation of the foreign exchange monopoly of the Czechoslovak Socialist Republic through the Federal Ministry of Finance.
The State Bank of Czechoslovakia is responsible for the implementation of the foreign exchange monopoly of the Czechoslovak Socialist Republic.
The Czechoslovak State Bank, in cooperation with the competent federal authorities and the authorities of the Republics, shall draw up a draft foreign exchange plan in accordance with the intentions of the national development plan for the national economy and ensure the implementation and control of the approved foreign exchange plan.
Definition of terms
Under this law,
(a) value means banknotes, statuses and all kinds of foreign currency circulation coins and foreign exchange exchanges of all types of payments to foreign places, as well as payment documents denominated in foreign currency (bills, cheques, letters of credit, vouchers, etc.);
(b) gold means gold in a state of unprocessed or semi-finished, and containing more than 5% pure gold, also mixtures, alloys, fractions and gold coins;
(c) securities are shares and other documents forming a participation in assets (units, certificates, etc.), sub-bonds (government and other public loans bonds, liens, bank bonds, industrial companies etc.), as well as dividend and interest coupons and talons; foreign securities are securities that are due or have been issued abroad,
(d) foreign exchange funds shall mean valuables and foreign exchange [point (a)], gold [point (b)] and foreign securities [point (c)].
(1) Foreign domestic nationals are natural persons resident or resident in the country for at least one year, Czechoslovak nationals who reside abroad with the consent of the competent authorities and family members of such persons residing abroad, as well as legal persons who have their head office in the country. Other natural and legal persons are foreign exchange foreigners.
(2) The implementing Regulation provides:
(a) where they are not considered as foreign exchange domestic
(aa) natural persons, even if resident in the country for more than one year and legal persons having their registered office there;
(bb) Czechoslovak citizens, even if staying abroad with the consent of the competent authorities;
(b) which provisions of this law do not apply to Czechoslovak nationals temporarily staying abroad.
Trade in foreign exchange funds
The State Bank of Czechoslovakia, as well as the monetary institutions and organisations entrusted by the State Bank of Czechoslovakia, is entitled to trade in foreign exchange funds and to make payments with foreign countries. The Czechoslovak State Bank sets out the conditions under which such monetary institutions and organisations buy and sell foreign exchange, value and gold.
Money institutions, authorised to trade by all foreign exchange means and to make payments with foreign countries, are foreign exchange banks. Money institutions and other organisations, authorised to perform certain tasks of foreign exchange banks, are foreign exchange points. Foreign exchange banks and foreign exchange points are required to follow the guidelines issued by the Czechoslovak State Bank for foreign exchange trading and to offer them, to the extent specified by them, to purchase the foreign exchange funds they have obtained under their authority.
To carry out salaries abroad and receive payments from abroad other than through foreign exchange banks, as well as to trade foreign exchange funds, unless one of the Contracting Parties is a foreign exchange bank or a foreign exchange place authorised to trade foreign exchange funds pursuant to Paragraph 7, is permitted only in cases provided for in the implementing regulation.
Import and export values
Imports of valuables, payment documents denominated in foreign currency, gold, securities, deposit certificates, deposit books and life insurance policies denominated in foreign currency shall be free.
Exports of valuables, payment documents denominated in foreign currency, gold, securities, depository certificates, books and life insurance policies denominated in foreign currency, as well as full powers to dispose of property values located abroad, shall be allowed only with the permission of the Czechoslovak State Bank. The authorisation does not need to be granted to export values which are not required by foreign exchange residents to buy at all or which have not been purchased by the foreign exchange bank (§ 16).
Imports and exports of Czechoslovak money and payment documents denominated in Czechoslovak currency as well as deposit books denominated in Czechoslovak currency are allowed only with the permission of the Czechoslovak State Bank.
The conditions of import and export of the values referred to in Sections 11 and 12, or the relief from these provisions and the amounts to which those values may be imported and exported without authorisation, shall be laid down in an implementing act.
Reimbursement abroad and concentration of foreign exchange
(1) The commission of salaries abroad in any currency is permitted only with the permission of the Czechoslovak State Bank.
(2) The authorisation provided for in paragraph 1 does not require:
(a) salaries relating to the implementation of international trade, international transport and international shipping; the conditions under which such salaries may be held shall be determined by the Czechoslovak State Bank in agreement with the Federal Ministry of Foreign Trade;
(b) other salaries, provided that the salary does not exceed the amount fixed for each type of salary by the Czechoslovak State Bank, as well as those laid down in the implementing regulation.
(3) The provisions of the preceding paragraphs apply mutatis mutandis to the sale by foreign exchange banks and foreign exchange points to foreign exchange residents.
(1) Foreign domestic nationals are required to:
(a) to take care of the protection of their claims against foreign exchange foreigners and other values located abroad, which under this law are only allowed to be treated with the permission of the Czechoslovak State Bank (§ 18) and to ensure that they are paid by remuneration to domestic residents of their claims against foreign exchange foreigners immediately upon due, in the currency to which the claim is payable or in the currency agreed with them. If the maturity is subject to notice, these claims shall be cancelled without delay;
(b) offer to the foreign exchange bank for redemption no later than 15 days after the acquisition or return to the country or after they have become foreign exchange domestic, value, gold and payment documents denominated in foreign currency;
(c) monetize foreign securities at the invitation of the State Bank in the Czechoslovak way.
(2) A foreign exchange bank shall have the right to purchase, in accordance with the terms and conditions for trade in foreign exchange, value and gold, the value offered to it pursuant to paragraph 1 (b), as well as the amounts paid to foreign exchange residents by credit in foreign currency on the account with its foreign correspondent or to collect payment documents denominated in foreign currency and valuables.
(3) Exemptions from the obligations laid down in paragraph 1 are governed by the implementing regulation.
(1) The Czechoslovak State Bank states which values [Paragraph 15 (1) (b)] are not required to be offered by foreign exchange residents either at all or up to a certain amount. With values that foreign exchange residents are not obliged to offer for redemption at all or that have not been purchased by the foreign exchange bank, foreign exchange residents may dispose freely.
(2) At the request of the Czechoslovak State Bank, the State Bank may authorise the relief of the obligations imposed under Article 15 (1) (a) and (b) and may determine the conditions for the treatment of these values.
(3) The Czechoslovak State Bank may also allow the foreign exchange payment received or part of it to be transferred to the foreign exchange domestic account opened with the foreign exchange bank and denominated in a foreign currency, or the collection of a payment document denominated in or part of the foreign currency to such account. The account holder may either transfer the account balance or part thereof to the same account of another foreign exchange domestic or cash it with a foreign exchange bank. With the consent of the Czechoslovak State Bank, the account holder may use the balance of the account or part of it abroad.
Foreign exchange banks may set up foreign exchange accounts (foreign exchange accounts). A foreign exchange deposit, arising from a voucher or foreign currency deposit, may be made at any time by the account holder in that currency by free payments abroad. Otherwise, the terms and conditions agreed with the bank managing the account shall apply to the credits to the foreign exchange account opened by the foreign exchange foreign exchange order and to the disposition of the balance of such account.
Management of values
(1) With claims by foreign exchange residents against foreign exchange foreigners, with their property and property shares abroad, with their foreign securities and with securities deposited abroad, with their claims for inheritance or a reference abroad, as well as with foreign exchange foreign exchange securities which are in the custody of foreign exchange residents and with the domestic property of foreign exchange foreigners, it is only allowed to be treated with the permission of the Czechoslovak State Bank.
(2) The authorisation is not necessary if the value referred to in paragraph 1 is being handled in the event of death, and the value that has been exempted from the bidding obligation at all or has not been purchased by the foreign exchange bank (§ 16). Additional cases where no authorisation is required shall be provided for in the implementing Regulation.
(1) Foreign domestic citizens may, only with the permission of the Czechoslovak State Bank:
(a) pay domestic foreign exchange residents or anyone for their benefit or from their property;
(b) enter into or recognise monetary liabilities and negotiate exchange transactions in respect of liabilities arising from an obligation to pay foreign exchange residents; *)
(c) to contractually transfer domestic real estate and securities to foreign exchange foreigners, as well as intangible rights, such as copyright, publishing, patent, stamp, protected designs, inventions, etc., to allow them these rights to be used and to authorise production processes.
(2) In the authorisation of the Czechoslovak State Bank to enter into the commitment referred to in paragraph 1 (b), the following shall be added: (b) it may be stated that such authorisation shall be valid at the same time as a permit to pay abroad pursuant to Paragraph 14 or, as the case may be, to pay pursuant to paragraph 1 (a).
(3) The implementing regulation shall specify where no authorisation is required.
(1) Foreign domestic residents may, only with the permission of the Federal Ministry of Finance, negotiate foreign financial participation in domestic enterprises or participate financially in business abroad.
(2) If the financial participation has an impact only on the territory of the Czech Socialist Republic or the Slovak Socialist Republic, the Federal Ministry of Finance shall grant the authorisation referred to in paragraph 1 after consulting the Ministry of Finance of the Republic. Where the financial participation of the interests of both Republics is concerned, the Federal Ministry of Finance shall discuss the granting of the authorisation referred to in paragraph 1 with the Ministry of Finance of the Republics.
(3) In order to participate in the implementation of international trade, international transport and international shipping, the Federal Ministry of Foreign Trade, in agreement with the Federal Ministry of Finance, grants permission to foreign exchange residents.
(4) An authorisation within the meaning of paragraphs 1 to 3 shall not replace the foreign exchange permits of the Czechoslovak State Bank if they are required under this law.
Foreign exchange records and foreign exchange surveillance
(1) Foreign exchange residents are required to report to the foreign exchange register:
(a) the values referred to in Paragraph 18 (1);
(b) liabilities to foreign exchange foreigners;
(c) securities and domestic real estate owned by foreign exchange foreigners;
(d) changes relating to the rights, obligations and values subject to reporting obligations, as well as their demise;
(e) legal disputes and official proceedings relating to values subject to reporting obligations and intangible rights relative to abroad.
(2) The reporting of securities and domestic real estate [paragraph 1 (c)] and their changes are made by foreign exchange residents who manage or keep them for foreign nationals.
The State Bank of Czechoslovakia is the head of the Devision Register. The time limits for reporting, the method of reporting and the cases not covered by the reporting obligation under § 21 as well as the relief from reporting obligations shall be laid down in the implementing act.
The Czechoslovak State Bank oversees whether and how foreign exchange residents fulfil the obligations imposed on them by this law and the regulations implementing it. Foreign exchange residents are obliged to submit reports, reports and explanations of circumstances directly and indirectly relevant to the foreign exchange economy at its request, and to provide the necessary documents.
Foreign exchange control on exports and imports
Control of the maintenance of the provisions of this Act on import and export of values (Sections 10 to 12) and of the implementing provisions shall be carried out by the customs authorities which are entitled to carry out external and internal checks of baggage, means of transport, letters and other consignments, as well as personal checks in this field; at the same time, they may require the necessary explanations from the persons checked.
In carrying out inspections, constitutional and other legal provisions on the protection of the freedom of persons and the secrets of letters must be investigated.
(1) Customs shall accept from passengers abroad for their own cargo up to a storage value for which they are not authorised to export. The terms of custody shall be governed by the provisions of the Civil Code.
(2) If the passenger does not exercise the right to issue the storage object within one year of acceptance by customs, the right to extradition shall cease and the storage object shall belong to the State.
Transfers against foreign exchange holdings
Who acts against the rules of this law by:
(a) perform or accept salaries or trade foreign exchange funds against the provisions of Section 9;
(b) exports valuables, payment documents, gold, securities, deposit certificates, deposit books, foreign currency life insurance policies and the power to dispose of property values abroad, or import or export Czechoslovak money, payment documents and deposit books;
(c) fails to comply with the obligation to transfer foreign-exchange claims pursuant to § 15 (1) (a) or the obligation to bid pursuant to § 15 (1) (b) or fails to comply with the call for foreign securities pursuant to § 15 (1) (c);
(d) treat against the provisions of Paragraph 18 (1) claims against abroad, real estate and property holdings abroad, foreign securities and securities deposited abroad, as well as claims for inheritance or a reference abroad;
(e) treat foreign exchange securities and their domestic real estate against the provisions of Paragraph 18 (1);
(f) pay against the provisions of § 19 (1) (a), enter into obligations against the provisions of § 19 (1) (b), transfer domestic property, securities or intangible rights against the provisions of § 19 (1) (c);
(g) fails to comply with the reporting obligation under Paragraph 21 in due time;
be punished, not for a crime or for an offence, for a fine of up to 5000 CZK in proceedings carried out by national committees or customs offices in accordance with the general rules.
General provisions
The implementing provisions for this Act are issued by the Federal Ministry of Finance in agreement with the Federal Ministry of Foreign Trade and the Czechoslovak State Bank and in cooperation with the Ministry of Finance of the Republics. In matters relating to foreign trade, the implementing provisions for this Act are jointly issued by the Federal Ministry of Finance and the Federal Ministry of Foreign Trade in an agreement with the Czechoslovak State Bank.
(1) In the implementing regulation, the power conferred by this Act on the State Bank of Czechoslovakia may be delegated to the authorities of the State Administration.
(2) The obligations of foreign exchange domestic, state administration and organisation under this Act towards the Czechoslovak State Bank are, to the same extent, with regard to the State authorities, if the powers of the Czechoslovak State Bank under paragraph 1 are delegated to them.
The amount of money to be issued to a foreign exchange foreigner as a creditor by virtue of the enforcement of a judgment shall be deposited by the court or order to be lodged for the benefit of the authorised foreign exchange bank. No authorisation shall be required for the transfer of such an amount abroad if it is for the performance of an obligation arising in accordance with Paragraph 14 (2) from international trade, international transport and international shipping; otherwise the amount can only be transferred abroad with the permission of the Czechoslovak State Bank, but it would be the fulfilment of obligations at which the authorisation of the remuneration was already decided (§ 19 (2)).
The public authorities and organisations shall notify: At the request of the Czechoslovak State Bank, any information required to carry out the tasks imposed on it by this Law, unless specific provisions prevent it.
Authorisations under this Act are not subject to the provisions of Act No. 71 / 1967 Coll., on Administrative Procedure (Administrative Regulation); the procedure shall be adapted to the implementing Regulation.
Transitional provision
Until the effective date of this Act, the issued and still unused foreign exchange permits shall continue to apply for the period of validity specified therein. The general foreign exchange permits issued until now continue to be issued by the Czechoslovak State Bank; However, organisations to which general foreign exchange permits have been granted are obliged to submit general foreign exchange permits to the Czechoslovak State Bank for confirmation within 6 months of the application of this law, otherwise these authorisations will cease to be valid.
Final provisions
They shall be deleted:
1. Act No. 107 / 1953 Coll., on Foreign Exchange Economy, as amended by Act No. 64 / 1958 Coll.,
2. Decree of the Minister of Finance No. 80 / 1958 Coll., on the full text of Act No. 107 / 1953 Coll., on the Foreign Exchange Economy,
3rd Order of the Ministry of Finance and the Ministry of Foreign Trade No. 6 / 1963 Coll., on the Foreign Exchange Economy Act, and
4. Decree of the Foreign Trade Minister No. 111 / 1969 Coll., on a general foreign exchange permit for organisations authorised to do business abroad.
This Act shall take effect on 1 January 1971.
Freedom v. r.
Dr. Hanes v. r.
Dr Strougal v. r.
*) § 420 and 424 of Act No. 101 / 1963 Coll., on Legal Relations in International Trade (International Trade Code).
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Regulation Information
| Citation | Act No. 142 / 1970 Coll., on Foreign Exchange Economy |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 28.12.1970 |
|---|---|
| Effective from | 01.01.1971 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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