Decree of the State Arbitration of the Czechoslovak Socialist Republic, the Federal Ministry of Technical and Investment Development and the Federal Ministry of Foreign Trade No. 98 / 1976 Coll.

Q: Is Decree of the State Arbitration of the Czechoslovak Socialist Republic, the Federal Ministry of Technical and Investment Development and the Federal Ministry of Foreign Trade No. 98 / 1976 Coll. still valid?

Yes, Decree of the State Arbitration of the Czechoslovak Socialist Republic, the Federal Ministry of Technical and Investment Development and the Federal Ministry of Foreign Trade No. 98 / 1976 Coll. is still valid and effective.

98

DECLARATION

State Arbitration of the Czechoslovak Socialist Republic, the Federal Ministry of Technical and Investment Development and the Federal Ministry of Foreign Trade

of 26 August 1976

on imports of investment units and works

The State Arbitration of the Czechoslovak Socialist Republic pursuant to § 395 (a) of the Economic Code No. 109 / 1964 Coll., as published under No 37 / 1971 Coll. (hereinafter referred to as "the Act '), the Federal Ministry of Technical and Investment Development pursuant to § 53 of Act No. 133 / 1970 Coll., on the jurisdiction of Federal Ministries, and the Federal Ministry of Foreign Trade pursuant to § 1 of Act No. 119 / 1948 Coll., on the State Organisation of Foreign Trade and International Shipbuilding, and pursuant to § 36 (a) of Law No. 133 / 1970 Coll., on the jurisdiction of Federal Ministries, provides:

ČÁST PRVNÍ

INTRODUCTORY AND GENERAL PROVISIONS

§ 1

Scope

(1) This Decree provides

(a) economic obligations in the contractual arrangements for the import of investment entities (Sections 2 (1) and 2) and in the import of works (Section 2 (3)) between organisations ordering imports (hereinafter referred to as "the client") and foreign trade organisations, or other organisations authorised to do business abroad, (1) which import (hereinafter referred to as "the importer");

(b) certain obligations of organisations relating to the provision of import transactions for domestic investment construction.

(2) The Order does not apply to transactions with final destination for export.

§ 2

Terms

(1) For the purposes of this decree, the investment total shall mean the performance or, where applicable, the set of performance of a foreign undertaking, the object of which is at least:

(a) construction of one building, (2) without any building material, parts, machinery or equipment and steel construction, and including, where appropriate, the relevant part of the project documentation; or

(b) a set of machines and equipment, providing a complete or at least partial separate technological process (usually at the level of the operating set) (3), including assembly or technical assistance in the assembly and testing of appropriate complex testing purposes, (4) including, where appropriate, the relevant part of the project documentation and participation in the test operation and the performance of the guarantee tests; This does not preclude the possibility for the client exceptionally to obtain individual machines and equipment himself under conditions agreed with the importer.

(2) The investment unit may also include the additional performance of the foreign enterprise referred to in paragraph 1, such as replacement parts of the first equipment, project documentation, 5) individual products needed to supplement the investment unit, etc.

(3) For the purposes of this decree, construction works carried out by a foreign undertaking not covered by paragraph 1 (a), including, where appropriate, building materials, parts, etc.

(4) For the purposes of this decree, a draft foreign contract shall mean:

(a) a draft contract of a foreign undertaking chosen by the importer in cooperation with the client on the basis of a prior evaluation of offers and supporting documents (Sections 3, 35 and 36) or, where appropriate, on the basis of a tender (Section 41); or

(b) a draft contract drawn up by the importer for a foreign enterprise, chosen in the manner referred to in (a).

§ 3

Principles of cooperation between socialist organisations in the import of investment units

(1) Only importers designated by the Federal Ministry of Foreign Trade are entitled to conduct negotiations with foreign undertakings on the possibilities of importing the investment unit. An organisation other than the importer shall be entitled to conduct these negotiations only on behalf of the importer and only in the extent and manner defined in the authorisation granted by the importer for that purpose.

(2) The decision to which foreign undertakings are to be dealt with in accordance with paragraph 1 and the choice of foreign undertakings with which a foreign contract will be concluded (Sections 35, 36 and 41) is solely for the importer, who is also responsible for the accuracy of the choice.

(3) Organisations shall be obliged to proceed in such a way as not to restrict the decisions of the importer referred to in paragraphs 1 and 2. In particular, the project task and the initial (one-stage) project must be processed in a way that complies with this requirement.

ČÁST DRUHÁ

ECONOMIC CONTRACTS

§ 4

For the purpose of contractual arrangements for imports under this Order, organisations shall conclude economic contracts:

(a) the preparation of imports of the investment unit (Section 5) and the provision of imports of the investment unit (Section 10);

(b) the preparation of imports of works (§ 30) and of imports of works (§ 31).

Oddíl první

Contract for the preparation of imports of the investment unit

§ 5

(1) The contract on the preparation of imports of an investment unit obliges the client and importer to cooperate with each other for the purpose of proper and timely preparation of the construction for which the import of an investment unit is to be ensured and to conclude, within a specified period, a contract to ensure the import of an investment unit.

(2) The contract shall contain:

(a) the estimated size of the investment unit and the expected time of execution;

(b) commitments to bilateral, time-limited cooperation in the processing of an initial (one-stage) project and, where appropriate, in the processing of a project task, in particular within the meaning of Article 8;

(c) a mutual obligation to enter into a contract to secure the import of an investment unit;

(d) the period within which the client submits the demand to the importer (§ 11);

(e) the time limit by which the importer submits to the client a draft contract to ensure the import of the investment unit (Section 11).

§ 6

(1) The organisation is bound by a draft contract for a period of one month, unless it itself provides for a longer period or another deadline is agreed.

(2) The Treaty is established if an agreement is reached on the whole of its content.

§ 7

Obligation to conclude a contract for the preparation of imports of an investment unit

(1) At the request of the client, the importer shall conclude a contract:

(a) if the task of the State Plan is carried out by the superior authorities of both the importer and the client; or

(b) on the basis of an approved project task, according to which the import of the investment unit is to be ensured for the construction carried out as the task of the State Plan.

(2) At the request of the client or of the importer, the second organisation shall conclude a contract in the case of which the rules on the negotiation of the supplier's customer relations in the planning process provide for an obligation to conclude a contract on the preparation of supplies. 6)

§ 9

(1) Where one of the organisations seeks to amend or withdraw an undertaking from the contract, the other organisation shall accede to the amendment or cancellation if:

(a) there has been a change in the task of the State Plan, namely by the superior authorities of both the importer and the client [Paragraph 7 (1) (a)]; or

(b) as a result of the measures taken by the central authorities, the construction for which the investment unit has been designated or the investment unit will be replaced by a domestic supply or other form of import; or

(c) there has not been a contract to ensure the import of an investment unit within one year of the expiry of the period referred to in Article 5 (2) (e) in respect of circumstances not arising from an organisation seeking to amend or withdraw an undertaking; or

(d) construction needs require a change in the time limit for submission of demand [Paragraph 5 (2) (d)] or for submission of a draft contract to ensure the import of an investment unit [Paragraph 5 (2) (e)].

(2) The importer is obliged to cancel obligations under the contract if requested by the client for reasons other than those referred to in paragraph 1; however, the client is obliged to pay the importer the costs associated with it.

(3) The provisions of paragraphs 1 and 2 may not apply if an importer has already entered into an undertaking with a foreign enterprise in accordance with the agreement referred to in Article 43 (2) or, where appropriate, with the opinion taken by the client on the draft agreement referred to in Article 43 (1); however, the client may refuse to conclude a contract to ensure the import of the investment unit under the same conditions as those laid down in Article 26 for refusal of performance.

Oddíl druhý

Contract for the import of the investment unit

§ 10

By means of a contract to ensure the import of the investment unit, the importer undertakes to provide the client with an investment unit under the conditions agreed therein. The client undertakes to cooperate in an agreed manner, to take over the investment unit and to pay the importer.

§ 11

(1) The draft contract is drawn up by the importer on the basis of the client's demand and in accordance with the provisions and deadlines agreed in advance with the client (§ 43 (2)), or, where appropriate, the opinion taken by the client on the draft agreement under § 43 (1). The contract shall be drawn up if the agreement on the whole of its content is reached.

(2) In particular, the client will indicate in the request:

(a) the name of the construction, the name of the general designer and the name of the investor, if it is an organisation other than the client;

(b) an indication of the importance of the construction,

(c) an indication of the decision by the competent authority that the investment unit is to be imported;

(d) an indication of the foreign exchange coverage status;

(e) the designation of the registration authority, the date of confirmation of the registration certificate and the serial number assigned by the registration authority;

(f) the required time and manner of performance;

(g) reference to the purchase price limit agreement. 10)

(3) The request is submitted by the client after approval of the initial (one-stage) project and, unless otherwise agreed, the relevant part of the initial (one-stage) project. If the foreign contract is concluded exceptionally with the consent of the authority authorised to release the foreign exchange cover before the approval of the initial (one-stage) project, the client shall be obliged to attach to the demand the data and supporting documents necessary for dealing with the foreign enterprise.

(4) The importer shall be entitled to request a recasting of the construction timetable if the demand is submitted with such delay that the deadlines specified in the approved project documentation (in the construction timetable) cannot be met. If an organisation other than an investor is the client, it shall immediately notify the investor of the importer's request. In such a case, the investor shall ensure that the construction timetable is revised without delay. If the construction is imposed as a task of the state plan, the organisation shall notify its superior authorities of these facts; If the organisation is not directly subordinate to the central authority, the superior authority shall also notify the competent central authority.

(5) The provisions of paragraph 4 shall apply mutatis mutandis if the importer demonstrates that the investment unit cannot be secured in such a way that the deadlines set out in the approved project documentation (in the construction timetable) can be met.

(6) If the client subsequently changes the data that he stated in the request, he shall pay the importer the costs he had to incur as a result of the change. Paragraph 4 shall apply mutatis mutandis to this case.

(7) The importer shall be bound by the draft contract for a period of one month, unless he himself provides for a longer period or another deadline is agreed.

§ 12

Obligation to conclude a contract to ensure the import of an investment unit

(1) At the request of the client or importer, the second organisation shall conclude the contract:

(a) if the task of the State Plan is carried out by the superior authorities of the importer and the client; or

(b) under a contract for the preparation of imports of an investment unit.

(2) The importer shall not be obliged to conclude a contract under paragraph 1 if:

(a) does not receive the necessary foreign exchange coverage in time, (11); or

(b) demonstrate that the investment unit is unreinsurance. At the request of the client, the importer shall provide evidence of this information by confirming the Federal Ministry of Foreign Trade.

(3) The client shall not be obliged to conclude the contract referred to in paragraph 1 if the importer has not concluded a foreign contract in accordance with the agreement referred to in Article 43 (2) or, where appropriate, the opinion taken by the client on the draft agreement referred to in Article 43 (1).

(4) If the case is set in accordance with paragraph 2, the client is obliged to notify the investor if it is an organisation other than the investor. If the construction is imposed specifically as a task of the State Plan, the organisation shall notify its superior authorities; If the organisation is not directly subordinate to the central authority, the superior authority shall also notify the competent central authority.

(5) In the cases referred to in paragraph 2, the investor is obliged to make the necessary adjustments to the approved building documentation without delay, or to make the necessary adjustments to the developed project documentation.

§ 13

(1) Organisations shall, as a general rule, conclude contracts either at the same time as the foreign contract is signed or after the foreign contract is signed.

(2) If the importer submits a draft contract to the client before the signing of the foreign contract, he is entitled to bind the contract to the condition that the foreign contract is concluded, as agreed under Paragraph 43 (2).

Synergy of the client

§ 14

(1) The client is obliged

(a) to discuss, on behalf of the importer, technical issues relating to the performance of a foreign contract at the construction site or assembly site with the workers of a foreign undertaking if the importer so requests and grants him the necessary authorisation for this purpose;

(b) participate in the control of the performance of a foreign contract to the extent agreed;

(c) carry out on behalf of the importer the entries in the construction journal and assembly diary kept by a foreign undertaking [Paragraph 39 (1) (c)] or, where appropriate, other statements kept by a foreign undertaking at a construction site or assembly site, if the importer so requests and authorises it to do so;

(d) to check and verify the correctness of the statements and invoices made by the foreign undertaking on the work carried out by the importer in terms of volume and type of work reported and, where appropriate, invoiced;

(e) to immediately notify importers of all detected cases of non-compliance by a foreign undertaking;

(f) inform importers, as appropriate, of the fulfilment of the obligations under points (a) to (c).

(2) Unless otherwise agreed, the condition for the client's obligation under paragraph 1 (a) and (c) shall be that the importer forward to him in due time the Czech or Slovak version of the foreign contract.

(3) The client shall be bound against the importer by a procedure to be adopted in accordance with paragraph 1 (a) to (d).

§ 15

The client is obliged

(a) to obtain all the approvals required under the legislation for working on the investment unit, including permission to build construction site facilities;

(b) ensure the performance of the investor's technical supervision [Paragraph 39 (1) (b)].

§ 16

Compliance

(1) The organisation shall provide in the contract in agreement with the foreign contract, which shall constitute the subject of a separate performance (partial performance).

(2) Compliance

(a) in the case of carriage by rail - the arrival of a wagon at the Czechoslovak border customs station;

(b) in the case of transport by ship - arrival at the Czechoslovak customs port;

(c) when carrying an aircraft - by arriving at a domestic customs airport;

(d) in the case of transport by post - arrival of the consignment at the loading post;

(e) in the case of transport by means of road - the arrival of the vehicle on the Czechoslovak customs territory;

(f) in other cases - by surrender to the client.

(3) However, if, under a foreign contract, the performance of a contract is later than that provided for in paragraph 2, or if they are the subject of separate work, the performance of the contract shall be the same.

§ 17

Verification and acceptance of transactions

(1) The client is obliged to verify the performance in such a way as to ensure the rights of the importer vis-à-vis a foreign undertaking or, where applicable, a carrier, a shipper or an insurance undertaking. If the method of verification does not result from legislation or from a contract [Paragraph 43 (1) (a)], the importer shall inform the client in due time of the specific conditions for the verification of transactions.

(2) Unless otherwise assessed by the organisation, the examination and acceptance of transactions carried out with the participation of a foreign enterprise shall be carried out by the client on behalf of the importer, provided that the importer grants him the necessary authorisation for this purpose and that it is not otherwise agreed that he will forward the Czech or Slovak version of the foreign contract in due time.

(3) If the verification and acceptance of transactions involving a foreign undertaking by the importer and the client does not unite on the basis of whether the transaction is to be taken over, the opinion of the client shall be decided upon; However, the client is obliged to reimburse the importer for the costs which would cause him to make any incorrect decision.

(4) Unless otherwise agreed, the importer shall deliver a written notice to the client no later than 7 working days in advance of completion at the construction site or assembly site ready for verification and take-over with the participation of a foreign enterprise. The client is obliged, on the basis of this notification, to come forward to verify and take over the transaction.

(5) The client shall be bound against the importer by an opinion which shall be adopted in accordance with paragraphs 2 and 3.

Liability for defects (guarantee) and complaints

§ 18

(1) The importer is responsible to the client for the defects of the investment unit in the same way and to the same extent as the importer's foreign undertaking.

(2) The importer is responsible to the client for the defects of the investment unit for the same period as the foreign firm. However, if the foreign contract does not allow the importer to complain later than on the last day of the guarantee period and the organisation does not agree otherwise, the client may submit the last complaint to the importer no later than 7 working days before the end of the period within which the importer may complain against a foreign undertaking; then the client's rights from the importer's liability for defects (guarantees) cease.

§ 19

(1) The client is obliged to complain so that the claim can be properly applied to a foreign company.

(2) The importer is obliged to make his views known without undue delay to the client.

(3) If the importer notifies that he will complain to a foreign undertaking, the period of time referred to in Paragraph 130 (2) (a) of the Act shall be extended from the date on which the importer submitted his observations pursuant to paragraph 2 to the date on which the client receives a written notice from the importer of the handling of the complaint with a foreign undertaking or of the result with which the foreign dispute was decided.

(4) The consignee of the consignment may also advertise. If the beneficiary is advertised, he shall do so as a representative of the client; further consideration of the claim is always done by the client.

§ 20

(1) The client is obliged to provide credible evidence of the defect found.

(2) When a serious defect is detected, the importer shall determine the procedure in terms of the requirements of the complaint procedure against a foreign undertaking.

(3) The importer is obliged to inform the client in due time when to discuss the complaint with a foreign company. The client has the right to participate in the negotiation of the complaint with a foreign company, which takes place in the country. At the request of the importer, the client is obliged to participate in the negotiation of the complaint with a foreign enterprise.

(4) If the importer sets out the procedure referred to in paragraph 2 or if the client participates in a complaint hearing with a foreign firm pursuant to paragraph 3, the client shall follow the instructions of the importer who is also responsible for their accuracy.

(5) If an importer agrees with a foreign undertaking on the manner in which the complaint was lodged with the client, this agreement shall also apply in relation to the importer and the client.

§ 21

(1) If the organisation so agrees in advance, the client's claim will also be settled in their relationship in accordance with the decision of the competent court or arbitration body in a dispute between the importer and the foreign firm.

(2) If the client so requests in the agreement referred to in paragraph 1, the importer shall be obliged to allow him to participate in the hearing with the competent court or arbitration body. Paragraph 20 (5) shall apply mutatis mutandis.

(3) The importer shall make use of any means of proof provided by the client for the conduct of a foreign complaint.

§ 22

Defects identified after the expiry of the complaint period

The client is obliged to notify the importer, without undue delay, of any defects detected in the performance, even after the time limit has expired. The importer shall require the foreign undertaking to remove the defects thus identified; what they receive from a foreign enterprise is required to give to the client after deduction of their costs.

§ 23

Foreign dispute

(1) For the purpose of conducting a dispute between an importer and a foreign undertaking in a competent court or arbitration body ("foreign dispute '), the importer shall be obliged to request the necessary evidence from the client in due time, etc.; the client is obliged to provide the importer with the requested documents in due time, if it is available to him or if he can obtain them, as well as to arrange for the sending of witnesses.

(2) If an importer accedes to a settlement of a foreign dispute by a conciliation agreement with which the client has given his consent, this agreement shall also apply in relation to the importer and the client.

§ 24

Compensation

(1) If the client is affected by a damage caused by an importer by a foreign undertaking, the importer shall be obliged to recover this claim for compensation. Paragraph 20 applies mutatis mutandis in such a case.

(2) The importer must, after deduction of the costs incurred, issue to the client what he receives from a foreign undertaking as compensation.

(3) Otherwise, the general provisions on compensation for damages between socialist organisations apply.

§ 25

Property sanctions

(1) Organisations are required to negotiate in the contract at least property sanctions equivalent to those of the foreign contract.

(2) The organisation does not have to charge or enforce property penalties.

(3) Compensation shall not include property penalties if they have not been paid.

§ 26

Refusal of performance

(1) The client is entitled to refuse transactions not yet carried out by a foreign undertaking or part of them, where their use is not possible.

(2) Refusal shall be legally effective on the date of receipt of the importer; the condition, however, is that the investor's superior central authority has given its prior consent to the refusal of performance and that foreign exchange coverage has been released in order to cover costs to be incurred abroad as a result of the refusal.

(3) The organisation shall notify its competent authorities of the refusal; If the organisation is not directly subordinate to the central authority, the superior authority shall also notify the competent central authority.

(4) When refusing performance, the client is obliged to pay the importer the costs associated with it.

§ 27

Amendment of contracts

(1) If the client so requests for serious reasons, the importer is obliged to propose to a foreign enterprise an amendment to the foreign contract. However, the condition is that the foreign exchange coverage has been released for this purpose if needed.

(2) If, on the basis of the client's request to amend a foreign contract, the client is obliged to:

(a) to reimburse the importers for the costs involved;

(b) at the request of the importer, make an appropriate amendment to the contract to ensure the import of the investment unit.

§ 28

Position

(1) If the client requests, for serious reasons, a temporary cessation of the production of the investment unit (hereinafter referred to as "location"), the importer is obliged to immediately discuss this requirement with a foreign firm. However, the condition is that the investor's superior central authority has given its prior consent to the arrangement and that foreign exchange coverage has been released to cover the costs to be incurred abroad as a result of the sistation.

(2) The client is obliged to participate in the sistace negotiations with a foreign enterprise if the importer so requests.

(3) If an agreement is reached on a sistace with a foreign enterprise, organisations are required to adjust the contract under the conditions agreed with the importer under the client's consent.

(4) The organisation shall notify its competent authorities of the operation; If the organisation is not directly subordinate to the central authority, the superior authority shall also notify the competent central authority.

(5) During the procedure, the client is obliged to pay the importer the costs associated with it.

Oddíl třetí

Contracts concerning the preparation of imports of works and the provision of import of works

§ 29

The import of construction works (Section 2 (3)) shall be subject, unless otherwise provided for in this Decree, to the appropriate provisions on the import of investment units.

§ 30

Contract for the preparation of imports of works

The contract on the preparation of imports of works shall specify the extent and types of work to be carried out, the import of which shall be ensured within a specified period of time, undertake to cooperate in ensuring such imports and conclude a contract within a specified period of time to ensure the import of works.

§ 31

Contract for the import of works

(1) The Treaty on the import of works obliges the importer to obtain for the client, under the conditions agreed with him, imports of works. The client undertakes to cooperate in the agreed manner, take over the imported works and pay.

(2) The draft contract is drawn up by the importer on the basis of the customer's demand.

(3) In particular, the client will indicate in the request:

(a) a technical description of the works and their volume;

(b) details of building materials, sections, etc., if it requires them to be part of the performance;

Citation	Decree of the State Arbitration of the Czechoslovak Socialist Republic, the Federal Ministry of Technical and Investment Development and the Federal Ministry of Foreign Trade No. 98 / 1976 Coll., on the import of investment units and construction works
Regulation Type	-
Author	-
Collection	Code of Laws

Date of Promulgation	26.08.1976
Effective from	01.01.1977
Effective until	-
Status	Valid

Decree of the State Arbitration of the Czechoslovak Socialist Republic, the Federal Ministry of Technical and Investment Development and the Federal Ministry of Foreign Trade on Import of Investment Entities and Construction Works

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