Decree No 8 / 1966 Coll.
Decree of the State Commission on Finance, Prices and Wages on Price Creation, Control and Statistics
Valid
Effective from 01.03.1966
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8
DECLARATION
State Commission on Finance, Prices and Wages
of 24 January 1966
on the production, control and statistics of prices
The State Commission on Finance, Prices and Wages, pursuant to § 3 (e) of Act No. 113 / 1965 Coll., on the State Commission on Finance, Prices and Wages, the State Commission on Technology, the State Commission on Economic and Scientific and Technical Cooperation and the State Commission on Management and Organisation:
Preliminary provisions
(1) This decree regulates the way in which prices of products, performance, activities and services provided for cash compensation (hereinafter referred to as "products') are created and the role of state authorities and socialist organisations in the production, control and statistics of prices.
(2) The authorities and organisations which exercise their powers 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 specified level of prices.
Basic concepts
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, export or marketing activities and for defence and state security;
(b) the commercial prices at which products for resale at retail prices are sold to internal trade organisations;
(c) retail prices (consumer, sales) for which products are sold to the population or to socialist organisations, where they are purchased in retail or where the turnover tax rate so provides;
(d) the purchase 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.
Foreign prices
For the purposes of this decree, foreign prices shall mean:
(a) world prices which are the current prices prevailing in world trade contracts for the type of products concerned;
(b) the obtained foreign prices, which constitute individual market prices, achieved under the agreed terms and conditions under the terms and conditions of the product when exported or when the product purchased is imported;
(c) the achieved foreign prices of fco čs. border which consist of individual market prices derived from achieved foreign prices and adjusted for direct commercial costs paid abroad.
Specific types of prices
The specific types of prices are:
(a) tariffs;
(b) sales prices of buildings and parts thereof;
(c) price limits, which are the upper limits for the prices of new products set out in the framework of technical development tasks for research, development and production, or in the framework of import tasks;
(d) preliminary (informative) prices which refer to the prices of products not fully technically clear, corresponding to the level of the applicable implementation prices;
(e) corporate prices set by the branch head by way of derogation from 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 are as set out in Section 2. The division directorates the differences between the implementation and corporate prices.
Price level
(1) The wholesale price includes:
(a) production costs and non-productive expenditure, excluding costs and expenses borne by undertakings from centralised sources of the superior bodies;
(b) the net economic result of production. *)
In the cases provided for, wholesale prices are added (from wholesale prices are deducted) special-purpose price subsidies (reductions) to support (to limit) the production of certain products, surcharges to cover repair costs within the guarantee period, trade margins of separate sales or supply organisations, etc.
(2) The commercial price includes, unless otherwise specified in each case, the wholesale price and turnover tax.
(3) The retail price includes the price of the margin of trade and trade covering, in principle, costs, non-productive expenditure and net economic result of circulation. for services, the retail price includes full costs and non-productive costs, net profit and, where applicable, turnover tax.
(4) The purchase price content is similar to the wholesale price content.
(5) Where services (transport) are a condition or part of the implementation of products, product prices may also include the price of services (transport costs).
(6) Prices of products may be increased or reduced by increases or reductions in relation to deviations from the initial conditions (quality, delivery) in which prices have been determined, in particular, for other quality, equipment, execution, delivery periods, production or delivery quantities, etc.
(7) Product prices include, unless otherwise specified, costs of technical development, preparation and operation of production, licences, patents, rewards for inventions and improvements, project and assembly works, packaging and packaging.
(8) Details of which costs, non-productive costs, service prices, etc., are included in the price of the products, adjusted by the relevant price lists, price measures or agreement between the supplier and the customer.
Price category
(1) Individual products or groups of products are classified in the price categories of fixed prices, limit prices or free prices ("price categories').
(2) 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 basic production programmes and on the overall level of costs and prices in the 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.
(3) In particular, product groups where there is a frequent replacement of a range or product group of a wide range of relatively few interchangeable products are included in the limit price category, where conditions for operational influence on supply and demand need to be created. The limit prices shall be determined as:
(a) maximum limit prices defining the upper limits of the implementation prices; or
(b) minimum limit prices defining the lower limits of the implementation prices; or
(c) indicative limit 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 boundaries, i.e. upper and lower limits (double-sided limit price).
The competent authorities shall determine the period and method of recording and offsetting the differences in implementation prices from indicative limit prices for subordinate organisations in order to avoid a permanent increase in the level of implementation prices above the level of indicative limit prices, unless such compensation is ensured automatically by economic conditions in market relations (overall balance of supply and demand).
Exemptions and reductions fixed or agreed within the meaning of Section 5 (6) shall not be considered as deviations from the indicative limit prices.
(4) They are to be classified in the category of free prices
(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 or marginal prices for standard products;
(c) fashion and technical innovations and new technically advanced products for a predetermined period and luxury products,
(d) products of a volume insignificant in terms of production and consumption;
(e) export products the prices of which are made up according to the foreign prices obtained;
(f) products sold on their own trading network of production organisations where a decisive part of the like products is sold on the internal trade network;
(g) the work and services carried out in addressing research and development tasks.
(5) Consumer products may be classified in the categories of limit or free price only after the rate of turnover tax has been determined.
(6) If the adverse evolution of the implementation prices for products classified as free or limit price categories occurs, or if the conditions under which such classification has been made change, the competent authority shall propose that those products be reassigned to another appropriate price category.
(7) Products not specifically decided on to be classified in the price categories are included in the decision in the fixed price category.
(1) The basic (fixed) components of prices are turnover tax, special-purpose subsidies, trade margins, surpluses to purchase prices for agricultural products and others, which are determined in accordance with specific principles by fixed rates or in a binding manner.
(2) In determining the increases or reductions referred to in § 5 (6), the procedure shall be as when negotiating free prices unless they are exceptionally fixed.
Fixed and limit prices for the same products with the same delivery conditions are nationwide, unless otherwise provided by the State Finance, Price and Payroll Commission.
Price formation
Principles of pricing
(1) The price is made up only for a newly produced or imported 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 a product,
(a) which satisfies social needs, including health, labour protection, cultural, etc., which have not yet produced (imported) products been satisfied or otherwise satisfied; or
(b) whose new design or technological solution makes it possible to spend less social work in its manufacture than the product still produced (imported), or if the same amount of work spent on its manufacture is made to improve its utility characteristics so that it can be used more economically.
(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 applies in particular where technical standards or conditions permit substitution of the materials used. Dispute cases are dealt with as price disputes.
(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.
(1) When establishing fixed and limit prices for new products, competent authorities and organisations shall comply with the provisions of this Part.
(2) The provisions of this Part shall apply only mutatis mutandis when determining free prices and performance prices of products classified as limit prices which are formed by an agreement between the supplier and the customer.
(1) The price of the new product is based on the average production and implementation conditions.
(2) The price of the new product must be determined in such a way as to correspond to the level of prices in force, except in the cases provided for in Section 35 (5).
Projection of production conditions to price
(1) The conditions of production are reflected in the price by the price comparison method, by reference to the price of the new product being derived from the price of the comparable product or from the prices of several comparable products.
(2) Comparable products are fully or partially interchangeable with regard to the performance characteristics or conditions of production. When creating fixed and limit prices, a comparable product classified as free prices, or a product for which the possibility of non-uniform prices is exceptionally provided in the category of fixed and limit prices.
(3) The price comparison is used
(a) price series or price indicators which express the demonstrable dependency of the necessary costs of mutually comparable products differing only by the quantity of utility characteristics (weight, dimensions, content, performance, etc.) on their production parameters. Where 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 from a price range proportionally,
(b) price standards, which are the calculation rates, whereby the sub-components of the products are valued and typically include the average consumption of means of production (materials, energy, wear of basic funds) and work; the fixed rate is also determined by net profit or loss;
(c) a calculation comparison based on the cost calculation of the closest comparable product, plus or minus the cost of the comparable product for those parts of the product that 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, standards and wage level analysis, etc. The net economic result is 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 may specify the use of price comparison methods or combinations thereof for individual product types or groups. If the use of price comparison methods is not so determined, an agreement shall be made 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. In particular, this method is used 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, unique development products, test products and other disposable products.
Calculation of net economic result into prices
(1) When pricing using price standards, calculation or individual calculation, the net economic result shall be taken into account either at the rate set or at the average level for comparable products or groups thereof, or for the whole enterprise or sector.
(2) The central authorities shall determine how the net economic result is to be calculated for each product group (s) with regard to the material interest system, in particular by reference to gross income or profits contributions and in accordance with the calculation technique used.
Projection of implementation conditions into price
Conditions of implementation are reflected in the 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.
Prices of consumer products
(1) The retail (commercial) price of the consumer product includes a turnover tax in the same proportion as comparable products, irrespective of which organisation is the manufacturer. Exemptions are permitted by the Ministry of Finance. If the organisation is not entitled to a trade margin under the specific regulations, the retail sales tax shall be increased by an amount corresponding to the trade margin.
(2) The retail indicative limit price of the new consumer product is based on the commercial price (the indicative limit wholesale price and the rate of turnover tax) and a fixed margin of trade.
Prices of buildings and parts thereof
(1) Prices of buildings or their integrated parts may be agreed between suppliers and customers as fixed sales prices on the basis of budgets for initial (one-stage) implementation projects. This applies mutatis mutandis to the prices of subcontracting of sets of machines and equipment, construction parts and works.
(2) In the absence of an agreement on a fixed sales price referred to in paragraph 1, suppliers shall agree or designate with customers on the basis of budgets for one-stage, implementation (supplier) sales price projects for the supply of individual machinery and equipment and unit budget prices for construction structures and works and assembly works.
(3) Prices of newly developed or imported products and equipment can be established on an indicative basis, with the possibility of being more precise to the budgetary reserve of the construction.
Prices of imported and exported products
Prices of the imported and exported products are fixed
(a) in a similar manner to prices for products not subject to foreign trade; or
(b) by deducting the price of individual products or a set of products from the obtained foreign price, where the competent central authorities decide to apply this method.
Prices of agricultural products
The provisions of this Section shall apply only mutatis mutandis to the production of buying-in prices for agricultural products.
Prices of surplus and unfit products
When selling surplus and unfit products, prices shall form an agreement between the seller and the buyer of the socialist organisation, unless, under special regulations, the price is determined by the superior authorities; However, the price may not exceed the cost of acquiring the product corresponding to the prices for the same or comparable product at the time of sale, unless specifically specified otherwise.
Principles for price changes
(1) The price can only be changed as a result of a major change
(a) economic conditions of production or foreign trade;
(b) conditions of implementation (§ 14).
(2) At the same time as the price change, the beginning of the changed price and the way in which the effects of the price change are settled are determined.
(3) The change in price shall not apply to supplies on which economic contracts are concluded, unless otherwise provided for by the central authority or agreed by the organisation.
(4) The principles for price changes also apply mutatis mutandis to changes to the basic (fixed) price components. The basic (fixed) price components shall be adjusted accordingly when the price is changed.
Changes in incorrectly determined prices
(1) Where a fixed or a limit price has been set incorrectly, the competent authority shall amend it to comply with the provisions of this Order.
(2) The change in the incorrectly fixed lower price applies to supplies for which an economic contract has already been concluded only if the customer agrees.
(3) The change in the higher price improperly fixed shall apply to all deliveries to be made from the date of the change in price; the competent central authority may decide that this change also applies to deliveries already made.
Price management
Draft price of the new product
(1) The proposal to fix the price of a new product must include:
(a) the qualitative and quantitative determination of the new product, supported by a sample of the product or a drawing of it, a photograph, etc.; the description of the product (product group) includes a list of technical parameters characterising the most fully useful characteristics of the product (product group);
(b) the reasons for the introduction of the new product;
(c) price calculation of the new product in the prescribed breakdown;
(d) price comparison data;
(e) a comparison of the proposed price with the price limit or with the preliminary (informative) price or justification for deviations from the price limit set;
(f) details of the conditions for the implementation of the new product and, for products identified by the central authorities (Section 14 (d), comparison with world price relations;
(g) classification of the product as a price category;
(h) the opinion of the main customer organisations on the proposed price, justified by any counterproposals;
(ch) labelling of products according to the uniform classification.
(2) When using individual calculations (Section 12 (5)), the proposal shall be documented to show that the level of production conditions achieved so far has not been impaired.
Application for price change
The proposal to change the price shall include:
(a) justification for the proposed price change;
(b) an overall quantification of the effects of a change in the price for suppliers, customers and the State budget;
(c) the opinion of the main customers, together with the proposal to address the consequences of the price change and, in important cases of dispute, the opinions of non-participating professional bodies, institutes and experts.
Price management procedure
(1) The proposal for the price of a new product or the proposal for the change of price is drawn up and submitted by the supplier or customer organisation or their superior bodies.
(2) If the price is determined by the supplier's branch directorate, it may only set the price in agreement with the principal buyer's branch directorate.
(3) When setting the price of a new product or changing the price to sectoral central authorities, the branch directorate shall submit a proposal simultaneously to all participating central authorities. The relevant sectoral central authority may determine the price or price change only in an agreement with the central authority superior to the principal customer and in the case of prices whose determination or change affects the state budget and where the turnover tax is not set at a rate, also in an agreement with the Ministry of Finance.
(4) Proposals for retail or wholesale prices for consumer products are generally dealt with in a joint pricing procedure managed by the central authority responsible for the creation of retail prices.
(5) The central authorities may agree in advance that the relevant sectoral central authority may fix the price in the proposal without consulting the other sectoral central authorities if an agreement has been reached between the sectoral directorates of the supplier and the main buyer on the proposal.
(6) The principal buyer or his superior authority is obliged to give a reasoned opinion on the proposed price of the new product or on the proposed price change within 10 days of receipt of the proposal; If they do not do so, the application may be decided or submitted for further proceedings without its opinion; the delayed opinion need not be taken into account by the competent central authority.
(7) If the main customer or his superior authority does not agree in its opinion with the proposed price of the new product or the proposed price change, it shall be obliged to discuss its position with the supplier or his superior authority on its request within 7 days, otherwise the price fixing authority may not take its opinion into account.
(8) Time limits should be calculated from the date of receipt of the supporting documents. If the supporting documents do not have the required formalities, the superior authority or customer shall require them within 5 days at the latest.
(1) If the price of a new product or the price change is attributed to the State Finance, Price and Salary Commission or the State Technical Commission, the proposal shall be submitted by the relevant sectoral central authority. In doing so, it shall be treated mutatis mutandis in accordance with Paragraph 25.
(2) The price limit and the provisional price shall be proposed in a reasonable manner as the price of the new product.
(3) The central authorities may, by mutual agreement, provide for the details of the price proposal or price changes by way of derogation (e.g. to simplify them for disposable products).
(4) The central authority superior to the supplier shall, in agreement with the State Technical Commission, lay down the terms and conditions of price management when negotiating price subsidies for technically progressive products or the price disadvantage of technically obsolete products.
Paragraph 23-26 applies to price procedures on fixed and limit prices.
Determination of price
(1) Fixed and limit prices shall be fixed or amended by decision on price, free price and delivery prices of products classified as limit prices by agreement of the Socialist organisations in the Economic Treaty or in accordance with paragraphs 5 and 6. If the supplier or his superior authority does not determine the price of the new product within 15 days of receipt of the proposal and if not for a price dispute pursuant to Paragraph 29, the supplier organisation may, after that period, sell the products at the proposed prices agreed with the customer.
(2) The decision on a fixed or limit price shall include at least:
(a) an indication of the authority or organisation which makes price decisions with reference to a provision or mandate on the basis of which the price is fixed or amended;
(b) the precise description of the product the price of which is determined or amended and the category of prices to which the product is classified;
(c) price level or limit price limits;
(d) the date on which the price enters into force.
(3) The decision amending the fixed or limit price contains the following additional elements:
(a) the amount of the price still in force;
(b) determining whether the amended price also applies to products for which contracts have already been concluded or which have already been delivered.
(4) If there is no agreement between the organisations on the level of the implementation prices of the products included in the limit price category, the implementation price shall be the
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Regulation Information
| Citation | Decree of the State Commission on Finance, Prices and Wages No. 8 / 1966 Coll., on Price Creation, Control and Statistics |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 16.02.1966 |
|---|---|
| Effective from | 01.03.1966 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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