Decree No. 34 / 1975 Coll.
Decree of the State Arbitration of the Czechoslovak Socialist Republic on economic commitments in export, import and economic cooperation with foreign countries
Valid
Effective from 01.05.1975
Contents
34
DECLARATION
State Arbitration of the Czechoslovak Socialist Republic
of 9 April 1975
on economic commitments on exports, imports and economic cooperation with foreign countries
The State Arbitration of the Czechoslovak Socialist Republic, after consulting the Federal Ministry of Foreign Trade and other participating ministries, provides, pursuant to § 395 (a) of Economic Code No. 109 / 1964 Coll., in the full version published under No. 37 / 1971 Coll. ("the Act '):
Preliminary provisions
This decree regulates
(a) the contract on the preparation of supplies on the export and import sectors and the obligations of foreign trade organisations and other organisations authorised to do foreign trade activities (1) (hereinafter referred to as "the organisation of foreign trade") and their suppliers and customers in its conclusion and performance;
(b) periodic penalty payments for defective transactions for certain deliveries of imported products,
(c) the relations between organisations in the preparation of contracts concluded in the framework of specialisation and cooperation with foreign-m2 (hereinafter referred to as "contracts for economic cooperation with foreign countries") and in the implementation of commitments under these agreements.
Economic obligations on exports and imports
Supply preparation contract
The contract on the preparation of supplies shall provide for:
(a) the estimated extent of future supplies for export or from imports within a specified period of time;
(b) a commitment by one or both organisations to conclude a future contract (future contracts) or a commitment by the customer to issue a delivery order (delivery orders) within a specified period. Instead of the time for concluding a future contract (future contracts), organisations may agree on the time for submitting a draft future contract (future contracts).
The purpose of the contract for the preparation of supplies is in particular:
(a) preparing medium-term national plans for the development of the national economy and carrying out the tasks set out therein;
(b) the fulfilment of obligations to conclude supply contracts for export or import resulting from negotiations on international economic relations or contracts for economic cooperation with foreign countries;
(c) transferring the results of the survey of foreign markets to long-term supplier-customer relations, with a view to effectively fulfilling export supplies;
(d) product-based clarification of export and import supplies, as provided for in the Guidelines for the preparation of national development implementation plans for the national economy and national development plans for the national economy in the aggregated value expression.3)
The organisation shall be bound by a draft contract for the preparation of supplies for a period of one month, unless it itself provides for a longer period or another deadline is agreed.
Contract for the preparation of deliveries on the export section
(1) A contract for the preparation of supplies is established even if the organisations do not agree on a period for the conclusion of a future contract (future contracts) or a period for which the customer is obliged to issue a delivery order (delivery orders) or submit a draft contract (draft contracts). In that case, the State is to do so within the time limits laid down in the basic terms of supply and, where the basic terms of supply do not provide for them, within the time limits previously agreed and, where appropriate, within the normal time limits.
(2) A commitment to conclude a future contract (future contracts) may be fulfilled by issuing a delivery order (delivery orders) by the customer within a specified period.
(3) If the customer does not issue a delivery order (delivery orders) or does not submit a draft contract (draft contracts) in accordance with the contract for preparing the supply, the supplier may only claim compensation for the damage caused to him; the liability for such damage cannot be waived by the customer. However, this adjustment to the compensation obligation does not concern obligations to submit draft contracts or to issue delivery orders resulting from an economic cooperation agreement with foreign countries.
Contract for preparing deliveries on the import section
(1) The supplier is not obliged to conclude an import delivery contract on the basis of a contract for the preparation of supplies if he does not receive the necessary foreign exchange cover at the latest within the time limit set for its conclusion.
(2) The supplier is obliged to accept an amendment or cancellation of an undertaking under a contract for the preparation of supplies if the customer so requests, on the grounds that he needs imports of other supplies or their other scope if the performance of the original undertaking would be contrary to the foreign exchange interests of the CSSR; However, the customer is obliged to pay the related costs. This provision does not concern obligations to conclude supply contracts on imports resulting from an economic cooperation agreement with foreign countries.
The obligation to enter into a contract on the preparation of supplies (4) may also be fulfilled by the organisation by concluding the contract on its initiative with another organisation authorised.
In the contract on the preparation of supplies, organisations may agree that an obligation to conclude a future contract may be fulfilled even by concluding the contract by another organisation. The conditions under which this can happen must be agreed in the contract for the preparation of supplies.
Penalties for defective performance
Paragraph 206 and Section 208 of the Act cannot apply to imported products in relations between other suppliers and customers if:
(a) are carried out as en route supplies; or
(b) verification would damage the original packaging, deterioration or other deterioration or loss of the specified properties.
Contractual provision of liabilities from economic cooperation with foreign countries
Securing economic cooperation agreements with foreign countries
Where there is a need for organisations that do not become parties to an economic cooperation contract to be involved in the performance of their obligations (Paragraph 18), the organisation which will be responsible for those obligations shall be obliged to ensure that such participation is ensured by concluding with them a contract in time to ensure economic cooperation with abroad (Paragraph 11), a contract for the preparation of supplies and, where appropriate, other economic contracts ("economic agreements'). This does not apply to cases where the performance of commitments under an economic cooperation agreement with foreign authorities is provided by the authorities in charge of their management.
Contract to ensure economic cooperation with abroad
(1) The Treaty on Economic Cooperation with Foreign Organisations undertakes to take the necessary measures to ensure the proper fulfilment of the obligations arising out of the Treaty on Economic Cooperation with Foreign Organisations. In doing so, they undertake in particular to introduce, restrict and suspend the production, research and development contracted.
(2) The Treaty on Economic Cooperation with Foreign Affairs generally contains:
(a) the extent of cooperation in the production and identification of the products to which the cooperation relates;
(b) the time and conditions for cooperation in the field of technical development of products and the mutual transmission of the results of developments to date, including technical and productive knowledge;
(c) the period and conditions for the introduction, cessation or restriction of production;
(d) the manner and conditions for making changes to agreed technical and economic parameters and quality;
(e) the manner and conditions in which the products are tested;
(f) arrangements for the application of technical, safety and other rules, in particular those relating to state testing;
(g) arrangements for liability for breach of patent and other protection;
(h) provisions on property sanctions.
(3) Where the measures to which the organisation undertakes require prior approval by the superiors or other bodies, the organisation concerned shall ensure prior approval.
(4) A contract to ensure economic cooperation with foreign countries is established if the agreement on its whole content is reached.
Common provisions
The organisation, which will be responsible for the obligations of the contract on economic cooperation with foreign countries (§ 18), is obliged to organise the conclusion of economic agreements so that negotiations on them take place in parallel with negotiations on an economic cooperation agreement with foreign countries, so that they are consistent with the prepared wording of this agreement and that they are concluded before the signature of the contract on economic cooperation with foreign countries. Otherwise, it shall bear the costs incurred by the participating organisations as a result of failure to fulfil that obligation.
An organisation whose synergies are necessary to meet the obligations of an economic cooperation agreement with a foreign country is required to conclude an economic contract at the request of an organisation which is responsible for those obligations (Paragraph 18), provided that the draft economic agreement is submitted in such a time as to enable it to be concluded before the signing of an economic cooperation agreement with foreign countries. This obligation may be waived if it demonstrates the reasons for which the conclusion of an economic contract would be contrary to the needs of the national economy.
An organisation which, together with a foreign trade organisation, concludes an economic cooperation agreement with a foreign country, which also provides for an obligation to conclude future export delivery contracts, shall, at the request of the foreign trade organisation, conclude a contract on the preparation of supplies for the extent to which it has been agreed to be accepted or, where appropriate, to be accepted.
Where an economic cooperation agreement provides for foreign property sanctions, organisations shall be required to negotiate appropriate sanctions in the economic agreement, unless they are provided for by legislation.
If there is no conclusion of a valid 5) economic cooperation agreement with a foreign country within six months of the establishment of the economic agreement, any organisation shall be entitled to require its cancellation; the second organisation is obliged to accede to the cancellation of the economic contract.
An organisation that enters into an economic cooperation agreement with a foreign country shall immediately transmit one of its copies or extracts in the Czech or Slovak version to the organisation with which it has concluded an economic agreement in its preparation.
If a contract for economic cooperation is concluded with a more foreign organisation and does not specify which undertakings are payable for each of them, for the purposes of this decree, each organisation shall be deemed to be responsible for the obligations relating to the subject matter of its activity. Where there is an obligation on the subject matter of several organisations and unless otherwise agreed, they shall be deemed to correspond equally for the purposes of this decree.
An organisation which collects products imported from a foreign trade organisation under an international agreement or an economic cooperation agreement with a foreign organisation and supplies them in the same state to another organisation shall be entitled to require, when concluding contracts with its other customers, such arrangements for delivery periods, performance checks, complaints and complaints equivalent to its obligations towards the organisation of foreign trade.
Efficacy
(1) This Decree shall take effect on 1 May 1975, with the exception of the provisions of Sections 10 to 19, which shall take effect on 1 July 1975.
(2) The legal relationships of the economic agreements governed by this decree, which arise before its effective effect, shall be governed by its provisions from the effective date only if the organisation so agrees.
(3) Paragraph 9 applies to defective deliveries made after 30 April 1975.
Main Arbiter
Czechoslovak Socialist Republic:
Brandeys v. r.
1) See Decree No. 121 / 1968 Coll., on the authorisation for foreign trade as amended by Decree No. 164 / 1969 Coll.
2) See Act No 85 / 1972 Coll., on the procedure for concluding contracts for economic cooperation with foreign countries.
3) See Section 20 of Decree No. 33 / 1975 Coll., on Discussing Supplier-customer relations in the Planning Process.
4) See § 118 of the Act, § 5 (6) of Decree No. 33 / 1975 Coll., on the discussion of supply-customer relations in the planning process, and § 13 and § 14 of the Decree.
5) See Section 1 of Act No. 85 / 1972 Coll., on the procedure for concluding contracts for economic cooperation with foreign countries.
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Regulation Information
| Citation | Decree of the State Arbitration of the Czechoslovak Socialist Republic No. 34 / 1975 Coll., on economic commitments in export, import and economic cooperation with foreign countries |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 18.04.1975 |
|---|---|
| Effective from | 01.05.1975 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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