Decree of the State Planning Commission No. 86 / 1962 Coll.
Decree of the State Planning Commission amending and supplementing the Decree on Price Making Methodology
Valid
Effective from 01.09.1962
86
DECLARATION
State Planning Commission
of 11 August 1962
amending and supplementing the Decree on price formation methodology
The State Planning Commission, in agreement with the participating central authorities, provides in accordance with Section 10 of Government Decree No. 60 / 1959 Coll., on the scope of planning, pricing and control:
The Decree of the State Planning Commission No 187 / 1959 Ú. l., on the method of pricing, as amended by Decree No 229 / 1959 Ú. l., is amended as follows:
1.
(1) The wholesale price of the new product shall, unless otherwise specified by technical or general terms of the price list, also:
(a) the cost of research, development and technological preparation of production, if not paid from other sources;
(b) the costs of completion, licences, patents, fees for inventions and guarantee repairs;
(c) the value of the project work;
(d) the value of the assembly works, if the supplier also performs them;
(e) packaging and packaging costs.
(2) The supplier shall submit to the customer, at the same time as the design of the wholesale price of the new product, the specification of the wholesale price components referred to in paragraph 1 only if the specification is necessary for the purpose of the calculation comparison or if, as a result of netting the wholesale price components referred to in paragraph 1, a higher price should be set.
(3) When improving the packaging of consumer goods, all additional costs of the company associated with the acquisition of packaging and packaging shall be reflected in wholesale prices, unless the improvement of consumer packaging is contrary to § 32g. '
2. The following shall be inserted after Paragraph 26:
Calculation of packaging costs at retail prices
(1) The price of the packaging of products which are sold only packaged and whose packaging is not returned is included in the retail price of the products.
(2) The price formation of products that are sold in unpacked and for which consumer packaging is introduced and not returned shall be treated as the price formation of a new product.
(3) The price of the packaging of products whose packaging is returned is either:
(a) does not include in the retail price but is paid separately as an advance which the consumer receives when returning the package, or
(b) account shall be taken of the retail price and shall determine the purchase price of such packaging.
(4) The advance shall be fixed at a higher amount than the wholesale price of the packaging. The purchase price of the packaging shall be fixed at the level of the wholesale price of the packaging at the most, minus the cost of the refund.
(5) The change in consumer packaging shall be treated in a similar manner to the price formation of the new product, or to the substitution of existing, less-quality products of a better quality (§ 32g). '
3.
Retail price
As regards the retail price of new products, it is examined in particular how the retail price proposed at the level resulting from the price system would have an effect
(a) the demand for a new product and the change in demand for comparable products resulting from the introduction of a new product on the market;
(b) the economically justified expansion of the range. "
4.
Amount of the proposed prices at the price system level
If the price found by the price comparison complies with the needs of the national economy in accordance with the results of the analysis of the production and implementation conditions of the new product (Sections 29 and 30), a draft price of the new product shall be drawn up at the level resulting from the price system and shall be followed up in accordance with the provisions of Sections 42 to 78. ';
5. The following sections 32a to 32ch are inserted after Section 32:
"Exceptions to price comparison
Common provisions
(1) If the price level determined by price comparison according to the results of the analysis of the production conditions and the implementation of the new product does not meet the needs of the national economy, the draft price of the new product shall be drawn up as a proposal for a price change. The provisions on the consideration of draft price changes (Section 104 et seq.) apply to the further procedure.
(2) Proposals for prices of new products, temporarily or permanently lower or higher than those resulting from the price system, are also considered as proposals for price changes.
Design of the wholesale price
(1) According to the results of the analysis of the production conditions and the implementation of the new product, a lower wholesale price for the new product or a temporarily higher wholesale price or an increase in the wholesale price of the obsolete product in the form of turnover tax or different wholesale prices for producers and customers are proposed.
(2) A lower wholesale price, which would interest customers in the purchase of a new product, may be proposed in particular for products reaching an excellent technical and economic level, for new materials and materials, etc., to such an extent as not to lose interest in the production of the new product at the same time.
(3) A transitional increase in the wholesale price while addressing customers' interest in the use of the product, the period considered for establishing the temporarily higher wholesale price and the way in which to switch to the wholesale price resulting from the price system may be proposed if pricing at the level resulting from the price system, taking into account the economically justified higher costs in the first production period, would not be sufficiently interested by the producer in the production of the new product.
(4) A reduction in the wholesale price of an obsolete product for producers (price handicaps) and an increase in the wholesale price of that product for customers in the form of turnover tax may be proposed only if there is a temporary discrepancy between the needs of the national economy and the interests of the producer or the customer, and if:
(a) with technically obsolete products, fully substitutable products are simultaneously produced or developed; or
(b) a technically obsolete product is manufactured and the introduction of the production of a new product is imposed by a technical development plan, showing the urgent need to accelerate the development and introduction of a progressive product into production; or
(c) a product is manufactured which is obsolete compared to the foreign products normally produced and if the development of the technically progressive product can take place in a short time.
The price disadvantage of an obsolete product shall be applied on the basis of a proposal from the supplier or the customer in particular to those who are interested in producing or purchasing a technically obsolete product contrary to the needs of the national economy. In the cases referred to in point (a), this measure shall be designed in such a way that the amended wholesale price can already operate when the draft plan is drawn up for the following year. In the cases referred to in point (b), the increase in the wholesale price of an obsolete product shall be proposed in such a way that the wholesale price can be changed from the beginning of the year in which the adoption of the production of the technically progressive product is to be completed as set out in the technical development plan. In the cases referred to in point (c), the increase in the wholesale price of an obsolete product shall be proposed in such a way that the wholesale price may be amended within the time limit agreed between the supplier and the customer.
Products whose wholesale prices have been amended in accordance with the provisions of this paragraph cannot be used as comparable products for the production of new products (Section 14).
(5) Different wholesale prices for producers and customers may be proposed in cases where:
(a) there is a temporary discrepancy between the interests of the national economy and the interests of the manufacturer and the customer (both or one of them); and
(b) the interests of the manufacturer, the customer and the national economy cannot be reconciled by other measures.
(6) When designing the wholesale price in accordance with the provisions of paragraphs 4 and 5,
(a) the share of the producer and the customer in the total economic savings resulting from the introduction of the production of the new product; or
(b) the temporary increase in costs at the start of production.
Consequently, the resulting temporary increase in wholesale prices must be limited to a certain, predetermined period in order to achieve significant interest in the maximum accelerated achievement of average production conditions and thus social work savings.
Draft retail price
Common provisions
(1) According to the results of the analysis of the production conditions and the implementation of the new product, a lower or higher retail price is proposed temporarily or permanently, in particular for technical innovations and technical improvements, fashion novelties, exceptional quality products, replacement of existing comparable products with new products, changes in technical and material standards, advantages of new products, etc.
(2) In other cases, a similar approach shall be taken if a retail price other than that resulting from the price system is required.
Technical innovations and technical improvements
(1) Products for which a completely new technical solution (e.g. using new construction principles, new production technology or new materials) has been achieved have been considered as technical innovations. Similar improvements are considered to be technical improvements if they relate only to certain parts of the product and if the product is made on the basis of the existing method.
(2) Transitionally higher retail prices for technical innovations and products with technical improvements (hereinafter referred to as "technical innovations') shall be proposed in cases where, at retail prices, they would be set at the level resulting from the price system,
(a) production has not been able to meet the initial population demand; or
(b) the introduction of a new, more perfect product has been adversely affected by sales and the resale of less perfect products comparable.
(3) At the same time as the proposal for a temporarily higher retail price for technical news, the draft retail price is produced and discussed at the level resulting from the price system.
Fashion News
(1) Products of new design (in terms of shape, cut, surface treatment, design, used fashion material, etc.), introduced to the market for verification of new fashion trends, are considered to be fashion innovations, even before their mass production and sales are introduced.
(2) Transitionally higher retail prices of fashion novelties sold exclusively in designated stores shall be designed to:
(a) correspond to the size of the supply of fashion novelties on the market and to:
(b) the net income for the company was relatively higher than for comparable standard products.
(3) At the same time as the proposal for a temporarily higher retail price, fashion news is developed and discussed the draft retail price at the level resulting from the price system.
Exceptional quality products
(1) Products of exceptional quality are considered to be products of domestic production as well as imported products (mainly from one-off imports), which differ significantly from comparable standard products (using particularly high quality raw materials, exceptionally perfect processing, etc.) and for which there is no presumption of mass production. Models and uniquities are also considered to be of exceptional quality.
(2) The higher retail prices of products of exceptional quality sold exclusively in designated stores shall be designed to:
(a) correspond to the quantity of products made available on the market and that:
(b) the net income for the company was generally higher than for standard products and fashion novelties.
Replacement of existing comparable products
(1) When replacing existing comparable products with new products, the retail price of the new product is proposed at the level resulting from the price system.
(2) In the event of immaterial improvement of products, the same retail price may be proposed for a better product as for a product replaced only if the wholesale price is set at the same level as the comparable wholesale price.
However, where a wholesale price of an immaterial quality product is proposed at a higher level than the wholesale price of a comparable product, the same retail price of an immaterial quality product may be proposed as for a superseded product only if:
(a) it is a product of everyday needs (in particular basic food) or a product of a lower price group, which is the subject of normal purchases and is of particular importance in the expenditure of the broad population;
(b) the demand for the replaced product would also be for the introduction of the new product,
(c) the products are not in the same price positions on the market.
Amendments to technical and material standards
(1) Where technical or material standards are changed, the composition of the raw materials used or the design of the product is changed, the retail price of the new product shall be determined at the level resulting from the price system.
(2) By way of derogation from the provisions of paragraph 1, the same retail price may be proposed for a new product as a comparable product (product before changing technical or material standards),
(a) if there are permanent changes and if the provisions of this Decree on replacing existing products are to be applied in a better manner (§ 32g); the maintenance of the price is considered a price reduction; or
(b) temporary improvements or deterioration of products; the maintenance of the price is considered to be a temporary lower or a transitional higher price.
Advantage of new products
Lower retail prices may be proposed for products where the conditions for expanding consumption cannot be achieved by other means, in particular where:
(a) at prices established at the level resulting from the pricing system, there would be a permanent low utilisation of production capacity or a negative impact on the employment of the population at the site of the production undertaking; or
(b) the setting of lower retail prices will create conditions for optimum use of raw material resources; or
(c) the setting of a lower retail price will result in a reduction of production costs; the proportion of net income is normally to be the same as for comparable standard products; or
(d) setting a lower price is appropriate in terms of cultural policy objectives, health objectives etc. ';
6.
Proposals for price changes
(1) The management, planning and financing system of the national economy requires the stability of the price system in the period between the overall price adjustments made on the basis of the government's policy guidelines.
(2) Wholesale prices in the period between total wholesale price adjustments can therefore only be amended if:
(a) as a result of the evolution of material proportions or the development of new techniques, the conditions under which price relationships and price levels have been determined for the overall adjustment have changed or are to be amended; and
(b) maintaining existing wholesale prices could lead to undesirable economic or social consequences, in particular adversely affecting the structure of production and production consumption and the introduction of new techniques, and where such adverse effects cannot be prevented otherwise, or where a change in the wholesale price is their most appropriate solution.
(3) In the period between the overall adjustment of retail (sales) prices, retail or sales prices may be changed only if their retention would be contrary to the interests of the national economy.
(4) Price changes are also considered to be price fixing deviating from the price system (§ 32a to 32ch). '
7.
Forms of the proposal
(1) The proposal for a change in wholesale prices must contain the elements set out in Section 33 and the detailed justification for the proposed change in wholesale prices. This justification shall include:
(a) the figures on the effect to be taken by a price determined at a level other than that resulting from the price system, in detail on the grounds for which such a price is proposed;
(b) quantifying the effect of the change on the indicators of the supplier's and the customer's financial plan and on turnover tax payments.
(2) The proposal for a change in retail prices must include the elements set out in Section 34 and,
(a) the overall justification for the retail price adjustment requirements and the expected effect of the price change on the purchased demand;
(b) ensuring the proposed change in production prices, production quantity data (for more significant simple product ranges by type),
(c) the effect of the proposed change in retail prices and new price relationships on substitutable products;
(d) the changes that arise in the methodology for price formation and comparison of current and proposed prices by product group representatives;
(e) the total amount of the change in prices (of which the amount relating to the population) also converted into a whole year and the effect on turnover tax revenue.
(3) If the price is to be set at a different level than that resulting from the price system (Paragraph 32), the proposal must also include a detailed justification for the proposed level. This justification shall include figures on the effect that such a price will have and the reasons for which the price is proposed. The analysis shall also include in particular:
(a) an analysis of the effect of the proposed price on the main indicators of the company's production plan, on the costs of the customer, on the demand of the population, etc.,
(b) the effects of a change in price on other new comparable products or, where appropriate, for the period of validity of the change, if it is of a transitional nature.
(4) The provisions of paragraphs 1 to 3 also apply mutatis mutandis to prices of local economy products (Sections 81 to 97). "
8.
Proposal procedure
(1) The provisions on the consideration of wholesale price proposals apply mutatis mutandis (Sections 43 to 45).
(2) Proposals for changes in retail prices shall be drawn up by the central authority which shall determine the retail prices in cooperation with the production central authority. If the price is to be reduced on the initiative and in the interest of production, in particular to ensure sales, the production central authority shall draw up a proposal for a reduction.
The proposal is discussed by the central authority setting the retail price, with the participation of the Ministry of Production, the Ministry of Finance and in agreement with the State Planning Commission.
(3) Proposals for changes in wholesale prices (with the exception of changes in wholesale prices pursuant to Article 104 (4) and any individual changes in wholesale prices) shall be submitted by the central authorities no later than 4 months before the deadline set for the submission of their draft State plan for the following year. "
9.
Determination of change
The State Planning Commission shall provide for a change in the wholesale price of the product within 30 days of the date on which the overall proposal was submitted to it, with effect from 1 January of the following year; it shall notify the proposing central purchasing authority within a further 5 days. ';
10. In Article 108 (1), the following text is inserted after point (d):
"(e) transitional prices'
11. Sections sixth and seventh and 117a and 117b are inserted after Section 117:
Changes in transitional prices
(1) The change in the temporary prices is carried out up to the price level resulting from the price system by the central authority to which it is competent to determine the price according to the price comparison, in agreement with the supply central authority and the Ministry of Finance, or by the entrusted authorities or organisations, if they have been delegated by the decision of the State Planning Commission to that effect in respect of price formation.
(2) Transitionally higher retail prices of technical innovations are reduced
(a) in accordance with the increase in the supply of products on the market;
(b) after the sale of the old comparable products.
(3) Transitionally higher retail prices of fashion novelties are reduced in line with the expansion of their sales.
Summary reports on other changes in retail prices
The Ministry of Internal Trade, in cooperation with the State Planning Commission and the Ministry of Finance, shall prepare and submit to the Government half-yearly reports on changes in retail prices and retail prices set at levels other than those resulting from the pricing system, together with an assessment of the state of the art and any proposals for measures. Other central authorities which have made changes to retail prices or set retail prices at levels other than those resulting from the pricing system shall provide the Ministry of Internal Trade with the necessary supporting documents, including the quantification of price changes to the current year, within the time limit set by the Ministry of Internal Trade. '
12. The following section 126a is inserted after Section 126:
Control of compliance and changes in price levels
(1) Changes in prices and pricing at a different level from those resulting from the price system (§ 32a to 32ch) are reflected by the Central Authority of State Control and Statistics in the price index. The authorities that have made changes (or proposed it to the Government) or, where appropriate, set a price at a different level than that resulting from the price system, shall notify the Central Office of the State Control and Statistics of price changes, together with the information on the beginning of the effectiveness, the quantity of products on the basis of the price proposal (even for the next period) and the level of price changes.
(2) The Central Office of State Control and Statistics reflects the results of its own price-setting control into the price index. "
This Decree shall take effect on 1 September 1962.
Minister
State Planning Commission:
Indra v. r.
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Regulation Information
| Citation | Decree of the State Planning Commission No. 86 / 1962 Coll., amending and supplementing the Decree on the Method of Price Creation |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 31.08.1962 |
|---|---|
| Effective from | 01.09.1962 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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