What is Decree No 47 / 1967 Coll.?

Decree of the State Commission on Finance, Prices and Wages No. 47 / 1967 Coll., on Prices — Decree of the State Commission on Finance, Prices and Wages on Prices.

When it became Decree No 47 / 1967 Coll. effectiveness?

Decree No 47 / 1967 Coll. became effective 01.06.1967.

Is Decree No 47 / 1967 Coll. still valid?

Yes, Decree No 47 / 1967 Coll. is still valid and effective.

Decree No 47 / 1967 Coll. - Decree of the State Commission on Financ...

47

DECLARATION

State Commission on Finance, Prices and Wages

of 25 April 1967

on prices

State Commission on Finance, Prices and Wages, pursuant to § 3 (e) of Act No. 113 / 1965 Coll., on State Commission on Finance, Prices and Wages, State Commission on Technology, State Commission on Economic and Scientific Technical Cooperation and State Commission on Management and Organisation:

§ 1

Preliminary provisions

This decree provides for the management, production and control of prices of products, works, services and activities provided for in the monetary compensation (hereinafter referred to as "products') and the competence of state bodies and socialist organisations in the field of prices; applies also to property prices. It shall not apply to fees and refunds associated with the provision of cash and insurance services by authorised organisations and to the sale of apartments for personal ownership.

Část I

Basic concepts

§ 2

Realisation prices

The reallocation prices, i.e. the prices at which the products are sold in the country, are:

(a) wholesale prices at which products are sold to socialist organisations for production consumption, construction or sales and for security of defence and state security;

(b) the purchase prices of foreign trade (hereinafter referred to as "purchase prices") at which export products are sold to foreign trade organisations or for which they sell import products to customers;

(c) the commercial prices at which products intended for resale at retail prices are sold to internal trade organisations;

(d) retail prices (consumer, sales) at which products are sold to the population or to socialist organisations, if they are purchased in retail or provided for in the rules on turnover tax;

(e) the buying-in prices at which designated organisations purchase agricultural products sold by agricultural producers, items obtained by collection, other articles from the population and products from small producers.

§ 3

Foreign trade prices

For the purposes of this decree, foreign trade prices shall mean:

(a) world prices which are the prevailing prices on the world markets for the type of products concerned;

(b) foreign prices constituting individual market prices achieved under negotiated conditions under a Czechoslovak product when exported or for a purchased product when imported;

(c) foreign franco prices of the Czechoslovak border, which constitute the foreign prices achieved, adjusted for direct commercial costs paid abroad or for other separately determined costs.

§ 4

Specific types of prices

The specific types of prices are:

(a) the price limits, which are the upper limits of the prices of new products, laid down in the framework of technical development tasks for research, development and production;

(b) preliminary (informative) prices which refer to the prices of products which are fully technically unclarified, corresponding to the level of the applicable implementation prices;

(c) corporate prices set by the branch head by way of derogation from the implementation prices for sales between subordinate organisations or for the clearing of supplies outside the production economic unit between the branch head and subordinate organisations. The prices for customers outside the production unit are as set out in Section 2. The division directorates the differences between the implementation and corporate prices.

§ 5

Price level

(1) The wholesale price includes:

(a) own costs, revenue and expenditure (hereinafter referred to as costs), *)

(b) net profit (loss).

(2) The purchase price includes the foreign exchange price of the Czechoslovak border, adjusted according to the decision of the State Commission on Finance, Prices and Wages.

(3) The commercial price includes, unless otherwise specified in each case, the wholesale price and turnover tax.

(4) The retail price includes the price of the trade and trade margins. for services, the retail price includes costs and net profit and, where applicable, turnover tax.

(5) The purchase price content is similar to the wholesale price content.

(6) Where services (transport) are a condition or part of the realisation of products, product prices may also include the price of services (transport costs).

(7) Prices of products may be increased or reduced by reasonable (§ 25) increases or reductions in relation to deviations from the conditions (qualitative, delivery) at which prices have been established or at which prices are normally fixed, in particular for other quality, equipment, execution, delivery periods, production or delivery quantities, etc.

(8) Within the cost of production, product prices, unless otherwise specified, shall also include the costs of technical development, preparation and operation of production, licences, patents, fees for inventions and improvements, project and assembly works, packaging and packaging.

(9) Details of which costs, service prices, etc., are included in the price of the products, the respective price lists, price arrangements or agreement between the supplier and the customer.

§ 6

(1) The wholesale prices are added (or deducted) to the additional turnover tax, the trade (sales) margin of separate sales or supply organisations, in specified cases, etc.

(2) In the cases provided for, special-purpose price subsidies are granted for the promotion of production (supplies) of certain products or, on the contrary, special-purpose price subsidies are paid for the reduction of production.

Část II

Principles of price regulation

§ 7

(1) Price developments are managed by the State Commission on Finance, Prices and Wages and by other mandated central authorities on the basis of guidelines for price developments (in particular government price developments) in the framework of the national economic development plan or the policy guidelines.

(2) The level of prices established by the Government or the State Commission on Finance, Prices and Wages is ensured in accordance with the price level development plan, both through the whole system of financial and economic instruments and through price regulation under the conditions laid down for the relevant category of prices (Sections 9 to 12) and by setting individual fixed, maximum, minimum or indicative prices (Sections 9 and 11).

(3) The authorities and the organisations which exercise their competence in the field of prices are required to create the conditions and to take the necessary measures to ensure that prices are flexibly adjusted in line with changes in the economic conditions of production, in particular the development of production and circulation costs, and the conditions of implementation, i.e. the ratio of supply and demand, and that the level of implementation prices does not rise above the level laid down (Sections 9 to 11).

§ 8

Level and category of prices

(1) The level of prices is created by a set of prices for all products of the product group (industry, etc.) carried out (planned for implementation) during the specified period; period means a year, unless otherwise specified. The evolution of the price level shall be monitored (measured) in relation to the prices of the specified basic period of the same set of products.

(2) In particular, the level of prices may be differentiated, monitored and managed on a differentiated basis at lower levels of management, following a uniform classification of products or with the approval of the State Commission on Finance, Prices and Wages (per plant, enterprise, production or commercial economic unit).

(3) In view of the different conditions governing price developments, individual products or groups of products are classified in the price categories of fixed prices, limited prices or free prices.

(4) Fixed prices are established and amended exclusively by the central authorities, free prices are made up of an agreement directly between suppliers and customers. the limited prices are defined in Section 10.

§ 9

Fixed prices

In particular, raw materials, semi-finished products, materials and other products shall be classified in the fixed price category,

(a) which have a decisive influence on the overall level of costs and prices in downstream sectors or sectors;

(b) for which effective regulation of production and consumption needs to be ensured to ensure a substantial discrepancy between supply and demand;

(c) which have a decisive influence on the structure of personal consumption and are permanently involved in the cost of living;

(d) for which, for health or cultural policy reasons, consistency and the necessary level of prices and prices should be ensured.

§ 10

Limited prices

In particular, product groups or products of production sectors where a frequent replacement of a product range occurs, or product groups of a wide range of relatively low variations are included, but for which it is necessary to create conditions for a mutually flexible influence of supply and demand between suppliers and customers, and where it is therefore appropriate to manage only the development of price levels on the basis of economically justified and socially desirable price developments ("price development agreements').

§ 11

Maximum, minimum and guide prices

(1) Specific cases of limited prices for which there are reasons to limit price changes for individual products and which are not covered by the provisions on price development agreements are:

(a) maximum prices defining the upper limits of the implementation prices; or

(b) minimum prices defining the lower limits of the implementation prices, or

(c) guide prices which are the basis from which individual implementation prices may deviate (increase or decrease). In the cases provided for, the limits of the derogations may be determined by relatively or absolute amounts, either unilaterally, i.e. upper or lower, or both sides, i.e. upper and lower limits (bilateral limit price).

(2) The authorities, unless otherwise provided, shall determine the period and manner of recording and balancing of differences in implementation prices from guide prices to ensure that the level of implementation prices does not continue to increase beyond the level of guide prices, unless such compensation is automatically secured by economic conditions in market relations (overall supply and demand balance).

(3) Derogations from guide prices shall not be regarded as reductions or reductions fixed or agreed within the meaning of Section 5 (7).

§ 12

Free prices

The category of free prices shall include in particular:

(a) products which are competitive;

(b) products which are permanently in advance of supply before demand or whose price levels are essentially determined by fixed, maximum, minimum or indicative prices for standard products;

(c) products of a volume insignificant in terms of production and consumption which can reasonably be expected to result in a reasonable reduction in demand or an increase in supply,

d) fashion news for a predetermined time and luxury products,

(e) products which are technically progressive, designated by the central authority of the superior manufacturer in agreement with the central authorities of the superior customers after comparison with similar foreign products, and new technical products identified by the supplier's agreement with the main customers;

(f) products classified in grade I in the compulsory assessment *), with the exception of those food products supplied for the internal market which are classified in the fixed price category;

(g) products for export and from imports with the exception of those referred to in Article 28 (1);

(h) prototypes, uniquities, models, samples, development products and certification series products;

(i) activities related to the management of research and development tasks (except for complex and separate main tasks of the State Research and Development Work Plan, which are included in the maximum prices), the management of technical standardisation tasks (except in the cases specifically defined by the Office for Standardisation and Measurement), expert opinions, expertise and performance of economic and technical focus carried out by socialist organisations, programming and computing, testing and evaluation of products and work in wages;

(j) products sold on its own trading network of production organisations where a decisive part of the like products is sold on the internal trade network;

(k) products of the local economy, local construction and production cooperatives, unless otherwise specified;

(l) products associated with the production of agricultural holdings,

(m) school and social and educational products;

(n) minor waste material products;

(o) payments for the use of basic funds, small and short-term articles, unless otherwise specified.

§ 13

Procedure for classifying products into price categories

(1) The classification of products in the price categories or the amendment thereto shall be decided by the State Finance, Price and Wage Commission, unless otherwise specified in Part V.

(2) Consumer products may be classified in the categories of limited or free prices only after the rate of turnover tax has been determined or after the decision that they are not subject to turnover tax.

(3) Products which are not explicitly decided on to be classified in the price categories are, until the decision, classified in the fixed price category with the exception of those referred to in Sections 12 (d) to 12 (i) and 12 (l) to (o).

(4) The classification of technical and high-quality products in the category of free prices [Sections 12 (e) and 12 (f)] applies.

(a) in the case of products subject to compulsory evaluation, during the period of validity of the decision on classification in grade I;

(b) for products identified as technically progressive by central authorities for a period determined by them;

(c) for new products identified as technically progressive by agreement between the supplier and the customer for a period of time agreed by them but not less than one year and not more than two years for products of a predominantly consumer character and four years for other products.

§ 14

Price development agreements

(1) Agreements to ensure economically justified and socially desirable developments in limited prices (Section 10) are concluded between production and, where appropriate, commercial units (hereinafter referred to as "production units") and central authorities, as well as between undertakings and sectoral directorates. When negotiating an agreement, the central authority shall ensure to the extent necessary the participation of other institutions and organisations concerned.

(2) The agreements shall specify the level of prices (Paragraph 7 (2)) which must not be exceeded, the other conditions that must be observed or secured, and the way in which the agreement is checked (in particular to demonstrate the real development of the price level).

(3) The draft Agreement must include:

(a) the level of capped prices which may not be exceeded during the specified period, broken down by production sector or product group, as decided by the central authority; the price level may be expressed by an index against the level of the implementation prices of the base (determined) period;

(b) measures taken in production to ensure the economic security of the proposed level of limited prices (measures in production or commercial activity in order to increase supply, how to use the means of possible price increases, etc.);

(c) the method of monitoring the development of the level of limited prices to demonstrate compliance with the Agreement, of which separately for newly introduced products;

(d) measures in the event of a breach of the agreement (other than generally applicable penalties under Paragraph 50);

(e) the period of validity of the agreement, or the conditions for termination of the agreement in advance, and measures in the event of failure to conclude a new agreement;

(f) the reasons and conditions for amending the Agreement.

(4) The organisation (body) submitting the draft Agreement shall be accompanied by:

(a) the justification for the proposal for a level of limited prices, taking into account the conditions of production and implementation and their changes;

(b) quantifying the social consequences of the proposal and the effects on the development of the overall price level of the production unit (s) and the possible impact on (main) customers;

(c) the views of the main customer production units (s) on the draft agreement;

(d) draft measures concerning the products of the relevant production unit (s) classified as fixed or free prices where they are necessary to ensure the desired development of the level of the limited prices.

§ 15

(1) If the undesired development of the level of implementation prices of the products classified in the categories of limited or free prices or changes to the conditions under which such classification was made is made, the competent authority shall propose that these products be reclassified into another suitable price category.

(2) The State Commission on Finance, Prices and Wages may, where justified, if not already provided for by the Government,

(a) to establish or alter the level of capped prices outside the framework of price development agreements, whereby the level of prices and the way in which it develops is determined by specific measures;

(b) determine that, in the field of wholesale prices, an additional turnover tax is laid down, *) in particular to offset the discrepancy between resources and needs.

§ 16

Price development contracts

Suppliers and customers, or their superior branches, may conclude special contracts (mostly long-term) for the development of free and limited prices. If the content of the contract on the development of limited prices is sufficient in terms of central price management, the superior central authority may replace the price development agreement by approving this special contract (Paragraph 14). In the contract, both parties are required to negotiate the consequences of breach of contractual obligations.

§ 17

The basic (fixed) price components, which are in particular turnover tax, negative price differences, trade (sales) margins and surpluses for the purchase prices of agricultural products, shall be determined in accordance with specific principles by fixed rates or by other binding means; In addition, special-purpose price subsidies (levies) are determined.

§ 18

The fixed, maximum, minimum and guide prices for the same products with the same delivery conditions are uniform nationwide (determined according to uniform or average conditions of production and implementation), unless otherwise provided by the State Commission on Finance, Prices and Wages.

Část III

Price formation

§ 19

(1) According to the provisions of this Part, competent authorities and organisations are required to proceed with establishing fixed, maximum, minimum and indicative prices for new products.

(2) The provisions of this Part shall apply only mutatis mutandis to the production of buying-in prices for agricultural products.

(3) The provisions of this Part do not apply to the determination of free prices and performance prices of products classified as limited prices. These prices are made up of an agreement directly between the supplier and the customer.

Principles for pricing

§ 20

(1) The price is made up only for a new product, determined by technical and delivery conditions, and for new products of approximately the same utility characteristics, produced essentially by the same technology, also for a group of precisely defined products.

(2) The new product under this Decree is the product

(a) which satisfies social needs, including health, labour protection, cultural, etc., which have not been satisfied or otherwise satisfied by the products manufactured so far; or

(b) whose new technical solution leads to such an improvement in its utility characteristics that this will make it more economical to use it.

(3) A new product shall not be considered as a new product and a new price may not be determined if the changes referred to in paragraph 2 are irrelevant or inconclusive. This is particularly true if the technical standards or conditions of substitution of the materials used are accepted. The contested cases are dealt with as price disputes (§ 45).

(4) For a new product which, due to its utility characteristics and the way it is produced, can be classified in the product group for which the price has already been created, the price will not be formed but directly classified in such a product group.

§ 21

(1) The price of the new product is based on the conditions of production and its implementation.

(2) The price of the new product must be determined in such a way as to correspond to the applicable price level, except in the cases provided for in Paragraph 37 (4).

§ 22

Expression of production conditions in price

(1) The accuracy of the expression of the production conditions in the price is verified by the price comparison method, by using the price of the new product to be derived from the price of the comparable product or from the prices of several comparable products.

(2) The products are comparable in terms of the performance characteristics or conditions of production fully or partially interchangeable. When establishing fixed, maximum, minimum and indicative prices, a comparable product classified as free or limited prices, or a product for which the possibility of non-uniform prices is exceptionally provided in the category of fixed, maximum, minimum and indicative prices.

(3) The price comparison is used

(a) price series or price indicators which show a demonstrable dependency of the costs of the products which are comparable to each other, which differ only by the quantity of utility characteristics (weight, dimensions, content, performance, etc.) on their production parameters. If comparable products are also qualitatively different from the new product (e.g. utility characteristics, production conditions or delivery conditions, etc.) and these differences are expressed in their prices, the price of the new product should be adjusted proportionally from the price series;

(b) price standards, which are the calculation rates, which value the sub-parts of production and which typically include the average consumption of means of production (materials, energy, wear of basic funds) and work; the net profit is also determined at the fixed rate;

(c) a calculation comparison based on the cost calculation of the closest comparable product, plus or minus the cost of those parts of the product which distinguish the new product from the comparable product. Differences in product performance and utility characteristics and cost differences are demonstrated by technical analysis of products, technical economic indicators, technical standards, wage analysis, etc. The net profit shall be added to the costs;

(d) a modular method consisting of the fact that the price of a new product is determined on the basis of the sum of the prices of its individual components (components), which are also contained in products comparable; if the individual components do not have price fixing, one of the other means of price comparison shall be made up.

(4) Sectoral central authorities superior to suppliers in agreement with central authorities superior to customers may specify the use of price comparison methods or combinations thereof for individual product types or groups. If the use of the price comparison method is not so determined, it shall be determined by agreement between the supplier and the customer.

(5) If the new product is not comparable to the products still produced, the production conditions shall be reflected in the prices using the individual calculation method. This method is used in particular in the pricing of means of production, their parts and parts produced individually, generally according to the customer's specific requirements, as well as in the pricing of individually produced prototypes, unicates, development products, test products and other disposable products.

§ 23

Calculation of net profit into prices

(1) When pricing using price standards, calculations or individual calculations, the net profit shall be taken into account either at a rate or at an average rate for comparable products or groups of products or for the whole enterprise or sector. *)

(2) The central authorities provide for the accounting of net profit for each product group (s) with regard to the material interest system, in particular by reference to gross income or profit contributions and in accordance with the calculation technique used.

§ 24

Expression of execution terms in price

Conditions of implementation are expressed in price based on analysis (comparison)

(a) the effectiveness of the use of the new product with comparable products still produced (imported) for consumption, produced in cooperation with the main customer;

(b) the ratio of supply and demand in the market;

(c) social intentions to promote (reduce) production or consumption, to increase the protection and safety of work, and to ensure health, cultural and other needs;

(d) the relation of world prices, in particular for products identified by the central authorities.

§ 25

Extracts and reductions

(1) The increases are proportionate if they include a maximum of:

(a) the costs to be incurred by the supplier for a derogation from the original conditions;

(b) the average net profit realised by the supplier at the time the contract was negotiated;

(c) the additional amount which the customer will provide to the supplier in the framework of the premium as a proportion of the funds which he considers to be achieved or saved in the context of the agreed derogation.

(2) The adequacy of price reductions is similarly assessed.

(3) In determining the increases or reductions, they shall be treated as negotiating free prices unless they are exceptionally fixed.

§ 26

Prices of consumer products

(1) The retail (commercial) price of the consumer product includes a turnover tax in the same proportion as comparable products, or at the specified rates, regardless of which organisation is the manufacturer. Exemptions are permitted by the Ministry of Finance. If the organisation is not entitled to a trade margin or part thereof under specific regulations, the turnover tax shall be increased for retail prices by an amount corresponding to the trade margin.

(2) The retail directional price of the new consumer product is based on the commercial price (wholesale guide prices and turnover tax rates) and a set margin. * *)

§ 27

Prices of buildings and parts thereof

Sales prices of buildings and parts thereof shall be determined in the manner specified in the construction documentation regulation. *)

§ 28

Prices of imported and exported products

(1) An exception to the provisions of Paragraph 12 (g) is to be classified in the category of fixed or capped prices * *) products which are significantly precarious and have a decisive influence on the overall level of costs and prices in the downstream industries.

(2) Fixed, maximum or indicative purchase prices, or the level of limited purchase prices, are determined depending on long-term developments in foreign trade prices.

§ 29

In the event of the payment of transfers of management or ownership of goods (products, real estate) outside the normal management of socialist organisations, prices shall be constituted by agreement, unless, under special regulations, the price determined by the authorities is determined; However, the price may not exceed the cost of acquiring the same or comparable item at the time of the transfer, unless otherwise specified.

Část IV

Price changes

§ 30

Principles for price changes

(1) Price or level of prices can only be changed as a result of a major change

Citation	Decree of the State Commission on Finance, Prices and Wages No. 47 / 1967 Coll., on Prices
Regulation Type	-
Author	-
Collection	Code of Laws

Date of Promulgation	17.05.1967
Effective from	01.06.1967
Effective until	-
Status	Valid

Decree No 47 / 1967 Coll.

Decree of the State Commission on Finance, Prices and Wages on Prices

Contents

§ 1