Decree of the Federal Price Office, Ministry of Finance, Prices and Wages of the Czech Socialist Republic and Ministry of Finance, Prices and Wages of the Slovak Socialist Republic No. 22 / 1990 Coll.

Q: Is Decree of the Federal Price Office, Ministry of Finance, Prices and Wages of the Czech Socialist Republic and Ministry of Finance, Prices and Wages of the Slovak Socialist Republic No. 22 / 1990 Coll. still valid?

Yes, Decree of the Federal Price Office, Ministry of Finance, Prices and Wages of the Czech Socialist Republic and Ministry of Finance, Prices and Wages of the Slovak Socialist Republic No. 22 / 1990 Coll. is still valid and effective.

22

DECLARATION

Federal Price Office, Ministry of Finance, Prices and Wages of the Czech Socialist Republic and Ministry of Finance, Prices and Wages of the Slovak Socialist Republic

of 30 November 1989

on price formation and control

The Federal Price Office pursuant to § 104 of Act No. 194 / 1988 Coll., on the jurisdiction of federal central government bodies, the Ministry of Finance, Prices and Wages of the Czech Socialist Republic pursuant to § 6 of the Act of the Czech National Council No. 143 / 1973 Coll., on the competence of the authorities of the Czech Socialist Republic in the field of prices, in full version No. 23 / 1989 Coll. and the Ministry of Finance, Prices and Wages of the Slovak Socialist Republic according to § 2 (2) (e) of the Slovak National Council Act No. 135 / 1973 Coll., on the competence of the authorities of the Slovak Socialist Republic in the field of prices, in full version No. 27 / 1989 Coll., provides:

ČÁST PRVNÍ

SCOPE AND BASIC INJURY

§ 1

Subject matter and scope

(1) This Decree provides

(a) the creation and control of prices (tariffs) of products, performance, services and work1 (hereinafter referred to as "products," for performances, services or work, hereinafter referred to as "performances");

(b) the competence of the authorities, organisations and unit of organisation in the field of prices acting on their behalf (2) (hereinafter referred to as "organisations").

(2) The decree covers the prices of products supplied by organisations based in the Czechoslovak Socialist Republic for domestic currency, except for products sold by foreign cultural information centres, prices of flats sold to citizens, international transport and communications tariffs and contract prices, for which special regulation applies. 3)

(3) For the evaluation of intra-corporate performance, this decree shall apply only if it provides for a specific regulation.4)

(4) The decree shall apply only to the remuneration for the establishment of the right to use land in relation to citizens and to the remuneration for the temporary use of buildings or parts of buildings or parts of buildings for the purpose of the transfer or transfer of ownership to them, to the method of determining the remuneration for the establishment of the right of personal use of land, to the compensation for the temporary use of land in relation to citizens and to the remuneration for the temporary use of buildings or parts of buildings, unless otherwise provided for in specific regulations. 3) and 5)

(5) If this decree states

(a) "central pricing authority" means the Federal Price Office or the Ministry of Finance, Prices and Wages of the Czech Socialist Republic or the Ministry of Finance, Prices and Wages of the Slovak Socialist Republic, within their scope;

(b) "National Committee" means the Regional National Committee, the National Committee of the City of Prague, the National Committee of the City of the Slovak Socialist Republic of Bratislava, the District National Committee in Bratislava, the National Committee of the City of Košic and the Regional National Committee in the Slovak Socialist Republic, within their respective competences,

(c) "price authority" means the central price authority and the national committee or, where appropriate, another economic management6) within the framework of its mandate, the price coverage.

Prices

§ 2

(1) 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; for agricultural products, include the buying-in prices and the premium for the buying-in and, where appropriate, the sales activity; for imported products, they include customs duties where provided; for these prices, products shall be supplied to organisations for production consumption, investment, security of defence and security of the State and for other sales, except for export and supply supplies at the prices referred to in points (d) to (f);

(b) buying-in prices; their economic content is similar to that of wholesale prices; at these prices, organisations buy agricultural products from their producers for production consumption, investment and other sales, and authorised organisations buy items obtained by collection; buying-in prices may also be applied to products produced by agricultural holdings from agricultural raw materials, as decided by the central price authority,

(c) purchase prices; include the prices of the Czech border franc, i.e. foreign prices in trade parity reduced on export and increased on import by foreign direct trade costs, converted to Kčs at the applicable rate and trade surcharges or trade haircuts by organisations authorised to trade abroad ("the Foreign Trade Organisation '); for these prices, domestic suppliers of export products to foreign trade organisations and foreign trade organisations shall supply products from imports to domestic customers, unless the prices referred to in points (a) and (d) apply to imported products supplied by foreign trade organisations, or the purchase prices with a basic and additional turnover tax (7) (with a difference in the internal market);

(d) commercial prices; include wholesale, purchase or purchase prices and basic turnover tax; 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 or wholesale prices and differences in turnover tax and trade reductions, where applicable, including duty, sales premium, price difference and, where applicable, trade premium; only products are sold to citizens at these prices; organisations are supplied at retail prices products when buying in retail or when buying from other suppliers, if they are products for which the difference tax on turnover is generally applied and the organisation is required to purchase them at tax prices, as well as small businesses of national committees, unless they are declared as paying turnover tax; food products intended for purposes other than human consumption may not be supplied at retail prices,

(f) wholesale prices with turnover tax; include the wholesale price, the basic rate tax and the additional turnover tax, where applicable, the difference between the sales premium corresponding to the supply method and the sales premium which the approved organisation may draw on the additional turnover tax under the tax legislation; (7) at these prices, the non-market-based products which are required under the tax legislation to purchase at prices with tax and do not have to purchase at retail prices, or small establishments of the national committees referred to in point (e), if the retail price is not fixed, where applicable, for a product intended exclusively for the personal consumption of citizens. 8)

(2) Where the level of wholesale and retail prices is the same, the price shall be considered retail for supplies to citizens and wholesale for supplies to organisations with the exception referred to in Paragraph 29 (3).

§ 3

(1) The types of prices referred to in Article 2 may be established with a limited period or quantities as provisional or, where appropriate, temporary prices, or may be used as provisional prices or as price limits before their own production. The provisional price and the price limit cannot be used for the supply of products.

(2) Provisional is the price used by the supplying organisation where the final price cannot be determined until the time required for invoicing. After the final price has been fixed, the supplier organisation shall settle the difference between the provisional and the final price from the beginning of the supply without delay and no later than 20 days after the final price has been fixed. The provisional price must be labelled as provisional on the invoice. The provisional price may be used by the supplier organisation in justified cases if the amount and duration of the provisional price are agreed in writing with the customer, the duration of which may not exceed 12 months. The provisional price cannot be applied if the conditions set out in Paragraph 39 (1) (ch) and for retail prices are not met.

(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 settled with the customers. If the time limit for the wholesale price temporarily applicable exceeds one calendar year, it shall be set at the same time as the decreasing prices (tiered prices) for additional years per year. Transitional prices

(a) under the conditions laid down in Paragraph 32 or in the decisions of the price authorities; Under Paragraph 26 or under a special mandate of central pricing bodies, such prices may also be set by organisations; or

(b) on a case-by-case basis for products resulting from the solution of the scientific and technological development plan at all stages of the procedure and not having an advantage in price.

(4) 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 is applied and, if it is not possible to apply it, the provisional price shall be determined by an estimate. The provisional price may not be applied to a product for which a price limit is or is to be set. The provisional price shall apply:

(a) where this results from a special provision (9) or from the provisions of § 33 or from a decision of a central price authority;

(b) to draw up building budgets where the conditions laid down in this Decree are not met for determining the wholesale prices of certain supplies;

(c) for the evaluation of the direct material needed to create the price limit or price of the product.

(5) The price limit determines the upper price limit of the future domestic or future imported product, or the lower price limit of the exported product, and is set in the cases mentioned in Section 35.

§ 4

Price categorisation

(1) The types of prices referred to in Sections 2 and 3 are applied as:

(a) centrally determined prices of products which are essential to the production and non-production conditions and the cost of living of the population; these prices shall be determined and amended by the price authorities, except in the cases referred to in paragraphs 3 to 5;

(b) centrally regulated prices for products whose prices are neither set by price authorities nor included in contract prices; These prices shall be determined by the organisations after consultation and agreement of the customers within the specified price level and shall be amended in accordance with a specific regulation, 10) if the changes referred to in paragraphs 3 to 5 are not made,

(c) the contractual prices or the contractual increases and reductions on the prices laid down; such prices, increases and reductions shall be negotiated and amended by the supplier's agreement with the customer either as free prices which are fully regulated by the market or as part of a centrally adjusted price level; the list of products to which they apply and the rules governing their negotiation and direction laid down in a specific Regulation. 3)

(2) Prices centrally determined and centrally regulated (hereinafter referred to as "prices established") are formed, discussed and determined in the manner specified by this Decree.

(3) An organisation responsible for setting the wholesale or buying-in price and the price authority may fix a price lower than the price established pursuant to paragraphs 9 to 17. In order to ensure sales, or on the basis of justified customer requirements, the supplier may reduce the price already established by the price authority or entrusted organisation for all its customers or provide certain customers with a discount which it is obliged to mark on the invoice. Neither the price decrease nor the price discount can be applied to the wholesale import prices established by the Federal Price Office if they are higher than the normal purchase price of the imports. The provisions of this paragraph shall not apply to discounts under other legislation11) and shall not give rise to an increase in the State budget subsidy. The organisations referred to in Paragraph 22 (6) may not increase the reduced wholesale price at which they have purchased the product on sale.

(4) In cases where a supplier reduces the wholesale price for all customers referred to in paragraph 3, the organisation responsible for the retail price shall reduce the retail price at a relatively equal rate within two months of the wholesale price reduction. In cases where the wholesale price is not reduced, organisations may provide for a temporary lower retail price on the basis of trade haircuts or, where applicable, trade surcharges where they are entitled to it or the price difference included in the retail price if they account for the price difference with the risk fund; other organisations shall proceed according to a specific decision. 12) Such reduced retail prices need not be uniform. A permanent reduction in retail prices of products that continue to be delivered to market funds is possible only on condition that the wholesale price or purchase price or purchase price is reduced to a relatively equal level and that the uniformity of retail prices is maintained. Organisations may reduce retail prices for their employees only on the basis of a specific regulation. 13) The reduction in the retail price must not reduce the relative amount of turnover tax.

(5) Where the prices referred to in Article 2 (2) are concerned, the provisions of paragraph 3 in relation to organisations and paragraph 4 in relation to citizens shall apply to their reductions or discounts.

ČÁST DRUHÁ

EXAMPLE OF THE CONDITIONS FOR PRODUCTION AND EXAMINATION IN PRICES

§ 5

Price formation procedure

(1) Price formation includes:

(a) determining how prices are to be created;

(b) processing of the draft price;

(c) discussion of the draft price with 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, or the same use (group price);

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

(3) Where provided for in the relevant price lists, the price shall be the sum of the specified performance prices and the prices of the direct material consumed, taking into account their quantity and, where appropriate, the other costs indicated in the price list.

§ 6

Significant quality and substantial delivery conditions

(1) The essential quality and essential delivery conditions under which the price has been determined include the selected technical level, utility characteristics, quality and type of product, the extent and conditions of its delivery which are decisive for the customer and, where appropriate, the conditions laid down by the price authority.

(2) The essential qualitative conditions shall be defined either by reference to the relevant technical documentation used in the field (product group), in particular the state, business or foreign standard, the technical conditions, drawing, sample, model and, in the case of non-standard products, the customer's requirements or the choice of relevant data from them.

(3) The essential delivery conditions shall be defined in particular according to the basic conditions of delivery, the technical conditions of the general terms of the price lists, economic and other contracts.

(4) The definition of substantial qualitative and material delivery conditions (hereinafter referred to as "essential conditions") is part of the new product price proposal. The supplier shall submit a proposal for their definition. The collector may require a different definition of essential conditions from the supplier's design, but only within the applicable technical documentation and other valid supporting documents referred to in paragraphs 1 to 3. If no agreement is reached between the supplier and the customer, the definition of the essential conditions shall apply as required by the 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, if no relevant documentation is available, the conditions which were based on price formation or price calculation.

(5) The improvement of the essential conditions of the new product, which is verifiable only when it is used, in particular the longer service life, can only be reflected in the price if the supplier extends the warranty period to the same extent, or if the improvement has been verified and confirmed by the state service. These changes in the material conditions shall be expressed in terms of the costs needed to achieve them, while the effectiveness of the use of the product with the customer must not be impaired.

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

(7) The central price authorities may decide for the product groups or groups on how to define the essential conditions and how to address the derogations either in price or in order to reduce the administrative burden of applying the additional levy (hereinafter referred to as the "price levy ') under a specific regulation. 14)

(8) Different labelling or valuation of identical raw materials, materials and products, in particular as a result of a different method of acquisition, shall not be regarded as a change in the material conditions under which the price was determined. The same applies to changes in scales of wage charges, changes in valuation of other costs, changes in production technology which do not alter the essential conditions of the product, and changes in the basic conditions of supply generally applicable.

§ 7

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) allow for a relative reduction of production costs or economic benefits for domestic customers or for exported products to improve export efficiency or effectively replace imports; or

(c) better meets the needs of the population, in line with purchasing demand.

(2) A product with a fixed price is also considered new,

(a) but its production establishes an organisation for which price uniformity does not apply pursuant to § 32 and 34 or as decided by the central price authorities;

(b) whose production has ceased 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, may not exceed the current purchase price of the imports.

(3) A product shall not be considered new,

(a) for which additional adjustments ensure compliance with the essential conditions applicable to the specified price of the product already produced;

(b) with changes in the underlying conditions resulting in price increases with which customers disagree or for which the procedure laid down in Article 6 (5) has not been followed;

(c) which replaces, in consumption, the product already produced or is interchangeable with the product already produced, unless there is at the same time a change in any of the essential conditions required by the customer;

(d) which has only changed the code number of the single classification or name.

In such cases, the price of the product already produced shall be taken over, except in cases of deterioration of the essential conditions referred to in point (c), where a lower price must be determined.

§ 8

Price formation methods

(1) In order to ensure a lasting process of price objectifying, it is necessary to apply pricing methods which:

(a) meet the needs of a smooth price update by making up the prices of new products in accordance with a planned or otherwise determined price level for the year in which the price is created; in this way, to implement a gradual sequence of internal prices with foreign prices and the necessary links between the different types of prices, even where there is no change in the prices of the products already produced,

(b) express the conditions of production and consumption in both internal and foreign markets, thereby ensuring an economically justified relationship between prices and the essential conditions of the products, leading to a reduction in the price per unit of the decisive parameter, or enabling the customer to achieve economic or other benefits;

(c) ensure that, for the calculation methods, the cost of production and circulation is calculated only on an economically justified basis, for parallel production, at the maximum average cost of exclusion of marginal producers, and that the profit rates are determined according to the final efficiency of production and, for exported products, on the basis of export efficiency.

(2) The pricing arrangements approved by the price authority for each branch or product group shall 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. These binding pricing methods shall be kept up to date by the price authorities to conditions corresponding to the planned price level.

(3) In determining the pricing methods for new products for which no binding method is established, the order of their application under § 9 to 17 shall be binding. Collectors who are participants in price proceedings are required to check whether the supplier has used the right pricing method. If an incorrectly higher price is set for failure to fulfil this obligation, these customers may not reflect the incorrect increase in the price of their products.

(4) The competent foreign trade organisation shall, upon request, provide, or free of charge, the information required for the correct application of foreign prices pursuant to Sections 9 to 11 and 21, no later than 30 days after the receipt of the request, unless otherwise agreed between them.

(5) When creating prices, the prices set must not be compared with the contract prices, the prices adjusted pursuant to § 19 and the basic prices, i.e. not adjusted according to § 21, to those which are advantageous and disadvantaged.

(6) The methodology for calculating prices according to the methods set out in Sections 9 to 21 is further detailed in the decision of the central price authorities. 15)

§ 9

Deriving the wholesale price from the import price

(1) Import prices are used as a long-term maximum limit for the creation of internal wholesale prices for new products, regardless of how internal wholesale prices are created to reduce the cost of production and approximate the efficiency of our production at the world's leading level.

(2) Prices of imports as a maximum level apply

(a) for imported energy, raw materials, materials and products for which import prices are applied in accordance with Article 25;

(b) on the basis of a decision by the central price authorities for product groups produced domestically whose prices of imports are lower than the wholesale prices created by one of the pricing methods set out in Sections 10 to 17;

(c) where the customer demonstrates in the price proceeding a real lower price of imports, has a real possibility of imports and the domestic supplier wishes to supply its own products;

(d) in the case of silencing, in accordance with the planned procedure for limiting them.

(3) The production organisation shall, in the cases referred to in paragraph 2 (b), also establish the price proposal in accordance with Sections 10 to 17 for the product concerned. Only a lower price may be set by the organisation in its jurisdiction.

§ 10

Deriving prices from foreign price relations

(1) The price of the new product is derived from the average relationship between the foreign prices of two foreign products, one of which is similar to the newly produced 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. In doing so, data from critical foreign markets are used to increase the competitiveness of new products.

(2) In fields where there is a larger number of foreign producers with different technical and price levels of products, the supplier is obliged to agree with the main customers and the relevant foreign trade organisation both the territory and the producer whose prices are derived from the foreign price chain.

(3) Foreign price relations need to be created

(a) a re-supplied product which is the subject of a nominal task, as a result of the solution of the task of the technical development plan or of the output from the new production capacity and is expected to be exported;

(b) in cases where the supplier and the customer have agreed to apply this pricing method exclusively to the group or branch concerned and are not organisations of the same association;

(c) a re-supplied final-consumption product which is incomparable in domestic terms;

(d) if the price authority so decides.

(4) Where a new product is replaced, extended or supplemented by an existing comparable product in export, and where neither the production organisation nor the foreign trade organisation has the necessary data on foreign price relations and the new product is to be exported, a relation of the foreign price of the new product and the product with a similar structure of material, technology and uses achieved in export to the same State may be used.

(5) Where a binding method is provided for in Article 13, 14 or 15 (2) (a) for the price formation of the new products referred to in paragraph 3, the organisation shall also draw up a wholesale price proposal in this binding manner. The organisation shall also draw up a calculation of prices in accordance with Article 17 if it is a nominal task whose output is not mandatory. In the event of a lack of conformity between domestic and foreign products or a lack of proof of foreign prices, the calculation of prices may also be requested by the main customers or price authorities in the price proceedings. In such cases, price fixing organisations may determine the price established by foreign price relations, if higher, only in the case of its registration (16) by the central price authority. In other cases, they may only fix a lower price.

(6) The foreign price relationship referred to in paragraph 3 (c) does not need to be applied if, under the special arrangements (17), the foreign trade organisation does not have to have the relevant foreign price documentation and would have to be provided only for consideration in foreign currency.

§ 11

Deriving the wholesale price from the export price

(1) The wholesale price of the new product is derived from the export price actually obtained so that export prices are transferred to the internal wholesale price level and that the development of export prices is reflected in the development of wholesale prices.

(2) The exclusion of wholesale prices from export prices shall apply to exclusively exported production, whereby the organisation may convert export prices to wholesale prices either cumulatively per branch and per specified period or per product. Where only the exported product is subsequently re-delivered to the domestic market and it is not a supply for which a contract price can be negotiated, a price shall be created and determined in the manner used for the relevant field (group). The price thus determined shall apply to all other domestic deliveries.

§ 12

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, the trade haircut and the price difference referred to in Article 19 (5). Where there is a difference in turnover tax in retail prices, it shall be deducted at a relatively equal rate as for the comparable product.

(2) This method of setting the wholesale price shall be applied whenever:

(a) for the production of the retail price, a binding method is provided for in Article 10 or 13 and the one for both retail and wholesale price formation is the same;

(b) the retail price shall be determined by the price authorities and the wholesale price of the entrusted organisation;

(c) the proposed wholesale price created in accordance with § 9 to 17 would lead to a retail price at which a new product could not be sold and the negative price difference would not apply;

(d) in other cases, as decided by the central pricing authority.

§ 13

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, so that the prices of the new product allow customers to achieve economic or other benefits. These pricing methods include, in particular, price series, price indicators and scoring methods.

(2) The parametric method shall be used for the pricing of products whose changes in essential conditions can be largely expressed by measurable quantities and are determined or determined at the same time the prices of the necessary number of comparable products.

§ 14

Price standards

(1) Price standards are sets of technically justified progressive standards for the consumption of direct material, direct wages, direct costs, indirect cost and profit rates that are binding on the compilation of price calculations to reduce the costs of organisations producing higher than average costs. The standard of direct wages and indirect cost and profit rates is a necessary condition for price standards, either separately for individual calculation items or as a complex item.

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

§ 15

Construction

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

(2) If there is no obligation to create a price in any of the ways set out in Sections 9 to 14, the

(a) a complete construction method where all necessary parts and performances have a valid price;

(b) a combined construction method in cases where a partial change of the product already manufactured is involved or where the use of such a method is requested by customers when discussing a draft price created pursuant to § 16 or 17.

§ 16

Calculation comparison

(1) A comparison of the price of the new product is made by comparing the price calculation of the new product with that of the comparable product, so that price differences are justified by changes in the technical economic parameters of the comparable products and, for the exported products, the efficiency of exports.

(2) The calculation comparison is applied to the price formation of a product which is comparable to the product produced to date and where it is not possible to use one of the price formation methods in accordance with Sections 9 to 15.

§ 17

Individual price calculation

(1) Individual price calculations consist of the price of a new product on the basis of a price calculation based on the terms of the supplier organisation.

(2) This is how the price of the product is formed.

(a) which is not comparable with the products manufactured to date by its essential quality conditions and where the price cannot be established in accordance with Sections 9 to 12 or 15,

(b) pursuant to Articles 26 (2), 28 (4) (d), 33 (7) (a), 34 (3) or the decision of the price authority.

(3) The supplier is obliged to verify the wholesale price created by individual calculations

(a) at the request of the customer in a manner and within time limits mutually agreed;

(b) for the nominal tasks of the State Plan and, where the price authority so decides, in the manner and within the time limits determined by the price authority.

(4) Verification of the wholesale price generated by individual calculations shall not be carried out on:

(a) transitional prices and prices determined after transitional prices;

(b) parts, spare parts and repairs;

(c) increases and reductions in accordance with § 23.

§ 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 under § 9 to 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) The central price authorities may establish different prices of the same product for suppliers and customers (double prices) or, where appropriate, for certain suppliers and 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) When applying the conditions of implementation, the price may be adjusted only for a single reason referred to in paragraph 1 for the same wholesale and retail price.

§ 19

Price relation

(1) The processor of the design of the wholesale price established pursuant to § 9 to 16, 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 a reduction in the price for the purpose of:

(a) to ensure that prices are consistent with the planned development of material proportions of basic raw materials and materials, the need for interchangeability between them and the planned internal and foreign price sequence;

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

(c) more efficient use of prices to establish the consistency of supply and demand and to replace products in desirable structures 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 ') and cannot be used by any of the pricing methods set out in Sections 9 to 17.

(3) The increase referred to in paragraph 1 may not be applied at wholesale prices where:

(a) there has been an increase in the price generated pursuant to Sections 9 to 13;

(b) for products with a difference indicator18), less than 100 points, it has been further reduced against a comparable product or the average difference between the exports in the organisation, if this is higher.

(4) Where the price of a new product would be negative for production due to a relatively high price for a comparable product, it is necessary to lower the price of the comparable product in accordance with Article 4 (3) and (4) in order to achieve the necessary price relation.

(5) The adjustment of the retail price, if not reflected in the wholesale price at a relatively equal rate, is reflected as a price difference.

§ 20

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

(1) The wholesale price of the new production facility must be determined in such a way as to meet the conditions set out in Article 8 (1) (b) and the costs justified by the extra-economic effects of the new product, such as improving the safety of work, removing strenuous work and improving the working and environment.

(2) In order to calculate the effect of the use of the new production facility on the costs of the customer, the customer must provide the necessary supporting documents at the supplier's request within 30 days of receipt of the request, if the organisation does not assess the longer deadline, 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 to the proposed price for reasons of divergent calculation of the effect of the new product, the supplier shall proceed in accordance with Paragraph 44.

§ 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 9 to 17 and to satisfy the customer's 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. Price advantage and price disadvantage are used to distinguish product prices according to their technical economic level, quality, fashion, production efficiency and export efficiency, to promote development and handicaps of dampening production, to promote production improving the working and environment, while at the same time creating a consistency between supply and demand.

(2) 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 ensuring the necessary extent of supplies of existing products19) and standard execution products.

Citation	Decree of the Federal Price Office, Ministry of Finance, Prices and Wages of the Czech Socialist Republic and Ministry of Finance, Prices and Wages of the Slovak Socialist Republic No. 22 / 1990 Coll., on the formation and control of prices
Regulation Type	-
Author	-
Collection	Code of Laws

Date of Promulgation	01.02.1990
Effective from	15.02.1990
Effective until	-
Status	Valid

Decree of the Federal Price Office, Ministry of Finance, Prices and Wages of the Czech Socialist Republic and Ministry of Finance, Prices and Wages of the Slovak Socialist Republic on Price Creation and Control

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