Collection of Laws No. 15/2004
The Prime Minister hereby promulgates the full text of Act No. 539/1992 Coll.,
on Hallmarking and the Control of Precious Metals (The Hallmarking Act),
as amended and fully specified in Act No. 19/1993 Coll. and Act No.127/2003 Coll.
ACT
on Hallmarking and the Control of Precious Metals
(The Hallmarking Act)
The Federal Assembly of the Czech and Slovak Federal Republic has adopted the following:
PART ONE
Preamble
CHAPTER I
§ 1
Subject Matter
This Act governs and applies to the following:
a) hallmarking and testing of precious metals,
b) rights and duties of natural and legal persons who manufacture, sell or put on the market in other way the products made of precious metals.
Definitions
§ 2
Precious Metals
Within the scope and for the purposes of this Act, the term "precious metals" shall mean and/or refer to: Gold, Silver, Platinum, Palladium, Iridium, Rhodium, Ruthenium, and Osmium.
§ 3
Products of Precious Metals
(1) Within the scope and for the purposes of this Act, the products of precious metals include:
a) jewellery, artificial jewellery, medallions and other goldsmith's and silversmith's products made of the gold, silver or platinum alloys, which might be combined with natural or synthetic stones, pearls, enamel, corals, glass and other non-metallic materials (hereinafter referred to as "the goods"),
b) jewellery alloys, semi-finished products and precious metal solders (hereinafter referred to as "the jewellery alloys"), intended for production and repairs of the goods,
c) precious metal alloys used in dental care and dentistry (hereinafter referred to as "the dental precious metals"),
d) Czech coins made of precious metals, issued by virtue of the specific legal regulation1) (hereinafter referred to as "the Czech coins"),
e) gold and silver leaf /foils,
f) worn-out, incomplete or damaged goods, usually traded at the price of the precious metal contained therein (hereinafter referred to as "the scrap").
(2) Within the scope and for the purposes of this Act, the term "goods" shall not mean or refer to the following:
a) gold products, with a fineness lower than 333/1000,
b) silver products, with a fineness lower than 500/1000,
c) platinum products, with a fineness lower than 800/1000,
d) instruments, tools and other articles made of precious metals, used in and intended for technical, scientific, laboratory, educational or similar purposes, irrespective of their actual fineness.
(3) The goods may be produced in domestic plants and facilities, or imported from abroad for further sale and merchandising, provided that their finenesses comply with the requirements hereof (§ 5).
§ 4
Within the scope and for the purposes of this Act, the following terms shall have the meaning(s) set out below:
a) "Domestic goods" identify the goods manufactured and produced in domestic plants and facilities after the effective date hereof, including the goods that result from a substantial modification of other goods,
b) "Foreign goods" identify the goods imported from abroad, after the effective date hereof, by the enterpreneur2), the line of whose business includes trade in precious metal products (hereinafter referred to as "the merchant"),
c) "old goods" identify the goods submitted for the hallmarking control in individual pieces and various designes, and which
- are of old or unreported origin, or
- did not go through the inland hallmarking control, or
- are submitted by a person who is not the manufacturer or importer, or
- are presented by a person without the trading certificate or other permission according to the trading regulations
d) "Repaired goods" identify the hallmarked goods, the hallmarked part of which was replaced during the repair, or the hallmark of which must be damaged during the repair, if the employer of the repair did not ask in writing for the repair without hallmarking,
e) "Registered alloy" identifies the jewellery alloy, entered in the Registered Alloy List (§ 49),
f) "Manufacturer" is the entrepreneur2) whose line of business includes the production or the repairs of the goods or the processing of the jewellery alloys or the production of the Czech coins or the dental precious metals. The manufacturer is also the person who performs any of the above-mentioned activities not on the basis of the trading certificate or other permission according to the trading regulations2a) and/or its activity in the state of the production and repairs of the goods consists in the implementation of the results of the intellectual and creative activities regulated by the separate act.2b)
g) "Trade" identify the sale, including the arrangement for sale, trade, purchase for re-sale, and sale of the used goods,
h) "Maker's mark" is usually two to three-figure alphanumeric code allocated by the Assay Office (§ 6) on the basis of the name and surname or the trade name of the manufacturer with the supplementary marks, located in the characterisation shape intended for marking by the manufacturer of the goods,
i) "Responsibility mark" is usually two to three-figure alphanumeric code allocated by the Assay Office (§ 6) on the basis of the name and surname or the trade name of the manufacturer with the supplementary marks, located in the characterisation shape intended for marking by the imported goods trader.
§ 5
Statutory Fineness
(1) The fineness is a proportional mass content of the precious metal expressed in thousandths (1/1000), therefore the pure metal fineness is 1000/1000. The statutory finenesses are specified as follows:
a) For gold goods:
Fineness No. 0................................................. 999/1000
Fineness No. 1 ................................................ 986/1000
Fineness No. 2 ................................................ 900/1000
Fineness No. 3 ................................................ 750/1000
Fineness No. 4 ................................................ 585/1000,
b) For silver goods:
Fineness No. 0 ……………………….……... 999/1000
Fineness No. 1 ................................................ 959/1000
Fineness No. 2 ................................................ 925/1000
Fineness No. 3 ................................................ 900/1000
Fineness No. 4 ................................................ 835/1000
Fineness No. 5 ................................................ 800/1000,
c) For platinum goods:
Fineness No. 0……………………………… 999/1000
Fineness No. 1 ................................................ 950/1000
Fineness No. 2 ................................................ 900/1000
Fineness No. 3 ................................................ 850/1000
Fineness No. 4 ................................................ 800/1000.
(2) Fineness of 580/1000 for the old gold goods is considered to be the lowest statutory fineness.
CHAPTER II
§ 6
Public Administration Authorities of Hallmarking and Precious Metal Testing
The state control in the field of
hallmarking and precious metal testing is carried out pursuant to this Act and
the separate legal regulation 2c) by the Ministry of Industry and Trade (hereinafter referred to as
"Ministry") and the Assay Office. 2c)
§ 7
cancelled
PART TWO
Hallmark Control
CHAPTER I
Subject and Scope of the Hallmark Control
§ 8
The hallmark control consists in determination and verification of the fineness and prescribed state of the goods, as specified and set out herein. The hallmark control results in official marking goods with hallmark of appropriate statutory fineness (hereinafter referred to as "hallmark") or by another way specified and set out herein, or breakage them (§ 22 Paragraph 1).
§ 9
(1) Unless otherwise specified herein (§ 27 and § 50 Paragraphs 1 and 2), the hallmark control is mandatory for the following items:
a) Domestic and foreign goods, intended for the domestic trade and merchandising,
b) Old goods, as long as covered by the line of business,
c) Repaired goods.
(2) Other old goods may or may not be submitted to the hallmark control.
CHAPTER II
Testing
§ 10
Domestic Goods
(1) Domestic goods submitted to the hallmark control by the manufacturer should be complete, cleaned and in state that they could be tested and marked without any inadequate manipulation. The goods should be finished to such extent that the affixed hallmark cannot be damaged, altered or removed.
(2) When submitting the goods the manufacturer shall announce in writing the type, weight, number of pieces and fineness of the domestic goods. If the domestic goods are made of other than registered alloy, the manufacturer shall also announce in writing the type and quantity of used metals.
(3) Domestic goods have to be manufactured in such way to make possible marking them durably, unless otherwise exceptionally agreed between the manufacturer and Assay Office.
(4) The manufacturer is obliged to mark the domestic goods submitted for the hallmark control durably by the allocated maker's mark on the place specified by the Assay Office so that it is possible to place the hallmark next to it.
§ 11
Foreign goods
(1) The foreign goods, unless it is the case under the paragraph 4, should be submitted to the hallmark control by the merchant who imported them, along with the adequate customs decision for launching the foreign goods to the free circulation.4)
(2) The merchant is obliged to submit the foreign goods to the hallmark control within 30 days from the date when the decision mentioned in Paragraph 1 came into force.
(3) The merchant is obliged to mark the foreign goods submitted for the hallmark control durably or to have them marked durably by the allocated responsibility mark on the place specified by the Assay Office so that it is possible to place the hallmark next to it.
(4) The foreign goods originating from a member state of the European Union and not hallmarked pursuant to § 50 par. 2 are submitted for the hallmark control by the trader who imported them together with the documents proving their origin.
(5) Provisions set out in § 10 Paragraph 1 to 3 herein, apply to the submission of the foreign goods in a similar manner.
§ 12
Old and Repaired Goods
(1) Old goods which shall become a subject of trade and merchandising shall be submitted to the hallmark control by the merchant along with the specification of the number of pieces, type and weight of the old goods.
(2) The old goods may be submitted for the hallmarking control under the paragraph 1 also by other persons than the trader.
(3) The repaired goods should be submitted to the hallmark control, along with the replaced part, by the manufacturer.
§ 13
If the person whose duty is to submit the goods to the hallmark control (hereinafter referred to as "the submitter") fails to meet the obligations prescribed in § 10, § 11 Paragraphs 1, 3 to 5 and § 12, the Assay Office will not accept the goods for the hallmark control.
§ 14
Goods Fineness Testing
(1) The goods shall be tested for proving of their fineness by the Assay Office on the touchstone or by another non-destructive or chemical method.
(2) The chemical determination of the goods fineness (hereinafter referred to as "the chemical test") shall be conducted by the Assay Office if the domestic or foreign goods are made of other than the registered alloy or if the non-destructive test, as described in Paragraph 1 herein, fails to provide convincing evidence.
(3) For old or repaired goods, the Assay Office may carry out the chemical test only upon the prior consent of the submitter. In case the submitter decides not to grant such consent, the Assay Office will return the old or repaired goods.
(4) To perform the chemical test, the Assay Office is authorised to take a necessary sample from the goods being tested, if not provided for by the submitter.
CHAPTER III
Prescribed State of the Goods
§ 15
Permitted Combinations
(1) The goods submitted to the hallmark control may be also made of the precious metal of various statutory finenesses or of various precious metals.
(2) Parts that are necessary for gaining the inescapable strength and elasticity may be made of base metals; in all other cases, the prior consent of the Assay Office is unavoidable. The parts made of base metals must be easily recognizable, and marked with the "METAL" symbol, if practicable.
(3) As regards the jewellery alloy used for the production of the goods, the manufacturer or importer are obliged to provide for its chemical testing with respect to fineness; the alloy may, besides fundamental precious metal, contain only the metals, the use of which is permitted by the implementing regulation. Metals of the content below 3/1000 are not taken into account.
(4) Metal coating may be applied as long as it is possible for the non-destructive determination of the precious metal content in the basic alloy. The precious metal goods must not be coated with the base metal, even in the form of interlayer.
(5) The Assay Office is entitled to decide on exception from Paragraphs 3 and 4.
§ 16
Soldering of the Domestic or Foreign Goods
(1) The goods shall be soldered, with the exception of platinum, only with a solder of the same precious metal as the relevant goods. The goods made of platinum might be soldered using the gold solder.
(2) For soldering of goods only the solder of fineness set down by the implementing regulation may be used.
(3) Other solders may be used or non-metallic joints applied only with the prior consent of the Assay Office or in cases determined by the implementing legal regulation.
(4) For soldering of the silver and platinum goods, the solder should be used only in the necessary minimum amount; the solder should not be used for thickening or filling.
§ 17
Provisions set out in § 15 and 16 should apply to the old and repaired goods in an adequate way.
CHAPTER IV
Hallmarking of the Goods and Handling of the Defective Goods
§ 18
The goods with the authorised standard of fineness, in the prescribed state and complying with the legal regulations4a) shall be durably marked by the Assay Office with the corresponding hallmark or in other manner pursuant to this Act. If any removable defect is detected in the goods, the Assay Office will return the goods to the submitter and will carry out the marking after the defect is removed.
§ 19
For each statutory fineness and for each precious metal, specific hallmarks are assigned. Special hallmarks are assigned to the old goods which do not achieve the lowest statutory fineness. Actual picture and description of the hallmarks, as well as the "METAL" symbol, are determined in the implementing regulation.
§ 20
(1) The Assay Office will place the hallmark for the closest lower statutory fineness to the goods with their fineness being different from those specified in the statutory fineness table, but still higher than the lowest statutory fineness.
(2) The goods made from the same precious metal of two or more different statutory finenesses, are to be marked by the hallmark of lower or the lowest statutory fineness.
(3) If the goods are made of several precious metals, they should be marked with corresponding hallmarks for the precious metals used. In such case, hallmarks for metals forming less than one fifth of the total weight of the particular object or those weighing less than 0.5 gram shall not be appended.
(4) Subject to the agreement as per § 10 Paragraph 3 or if practical especially because of the nature, shape or the dimensions of the goods, the Assay Office will mark the goods by hanging the seal with the hallmark or by issuing the certificate.
§ 21
(1) If the old gold or silver goods is in the prescribed state but their fineness is below the lowest statutory value (§ 5), the hallmark for the old goods is applied.
(2) If the old goods could not be durably marked by the hallmark without damaging the goods, the Assay Office shall mark the goods by hanging the seal with the hallmark or by issuing the certificate
(3) Provisions set out in Paragraphs 1 and 2 should be applied accordingly to the repaired goods.
Handling of the Defective Goods
§ 22
(1) The goods, with the exception of the old or repaired goods, which do not comply with the statutory fineness or with the prescribed state, should be broken up by the Assay Office, unless otherwise specified herein.
(2) Remainders on break-up and non-marked old or repaired goods should be returned by the Assay Office to the submitter.
(3) The domestic and foreign goods may be broken by the Assay Office provided that:
a) no application for remedial measure (appeal) can be filed against the decision of the Assay Office (§ 25 and 26),
b) the submitter explicitly waives his right to file the application for remedial measure,
c) with the conditions stated in items a) or b) completely fulfilled, the applicant submitting the foreign goods does not adhere to the provisions set out in § 23.
§ 23
(1) If the submitter, within seven days from the date of receipt of the hallmark control confirms in writing to the Assay Office, that he will export the defective goods outside the territory of the Czech Republic; and, if within another 20 days, the submitter deposits a bond with the Assay Office that is double the value of the precious metal contained in the foreign goods, the Assay Office will return the relevant goods to the submitter.
(2) If the submitter, within the period determined by the Assay Office upon releasing the goods as per Paragraph 1 herein, provides convincing evidence to support that the goods has been exported outside the territory of the Czech Republic, the Assay Office will refund the deposited bond; otherwise the bond will be forfeited for the benefit of the state budget. The determined period shall not be shorter than 15 days.
(3) The submitter is entitled to act as per Paragraph 1 even after the decision of any remedial measures was adopted (§ 25 and 26).
(4) Up to the date of the Treaty of Accession of the Czech Republic to the European Union entry into force, the condition of the foreign goods export outside the Czech Republic under the paragraphs 1 and 2 is not regarded as complied with in the event that the goods were exported to the territory of the Slovak Republic, with the exception of the occasions when such goods were imported to the territory of the Czech Republic from the Slovak Republic.
§ 24
The Assay Office is entitled to remove the data from the goods which could be misleading as regards the fineness, weight or state. It is entitled to remove the data also from the objects which are interchangeable with the goods.
CHAPTER V
Remedial Measures
§ 25
Appeal
(1) The remedial measure against the result of the hallmark control (§ 8) is an appeal, on the basis of which the repeated test of fineness or required state shall be performed on the goods.
(2) The appeal should be lodged with the Assay Office within seven days of the hallmark control result announcement. The appeal is attended by the Assay Office. The appeal against the result of the hallmark control as per § 18 and 21 does not have the suspensory effect.
(3) If the appeal is filed against the fineness test results (§ 14), the Assay Office shall perform the re-tests applying the chemical method.
(4) If applicable, the Assay Office, within the framework of the appellate proceeding, will append the hallmark to the goods or will amend and/or remove the original hallmark; otherwise shall approve the results of the original hallmark control.
(5) The appeal will not be permissible, if the provisions stated in § 23 Paragraph 1 become effective.
§ 26
Application for Final Test of the Goods Fineness
(1) The remedial measure against the decision on the appeal is an application for final test of the goods fineness.
(2) The application for final test of the goods fineness should be compiled in writing and lodged with the director of the Assay Office within seven days from the decision receipt. The application will be attended and decided on by the director of the Assay Office on the basis of the proposals brought forward by the committee established under the auspices of the director.
(3) No appeal might be lodged against the decision on the application for final test of the goods fineness.
(4) Provisions set out in §25 Paragraphs 3 to 5 should be applied accordingly.
CHAPTER VI
Exceptions from the hallmark control and compensation for damages
§ 27
(1) The obligatory hallmark control does not cover the following
a) goods
1. completely coated with enamel,
2. in which the weight of the precious metal is negligible in comparison to that of other materials used (e.g. locks, settings, rims and/or mountings, hold-eyes),
3. with a very low weight not exceeding the limit value specified in the implementing regulation,
b) foreign goods released in the customs proceedings to the transit regime5) or to the economic effect regime5a),
c) domestic goods to be released to the export regime5b),
d) old goods specified in the applicable implementing regulation.
(2) The goods listed in paragraph 1 item c) might be submitted to the hallmark control; in order to be hallmarked, the goods shall meet all terms and conditions stated herein.
(3) The hallmark control does not cover and will not be performed on the Czech and foreign coins, even if being a part of the goods that are covered by the hallmark control and being loosely jointed thereto.
(4) If in any doubt as to whether the goods should be submitted and covered by the hallmark control, the decision of the Assay Office should be sought.
§ 28
(1) The goods specified in § 27 par. 1 letter a) point 3 must be marked by the manufacturer or trader durably with the number indicating the corresponding fineness (hereinafter referred to as "fineness number"). In the event that it is practical on account of the character, shape or dimensions of the goods, the Assay Office follows the procedure under § 20 par. 4.
(2) The goods without hallmark, as listed in § 27 Paragraph 1 Item a), however complying with the requirements stated herein, and the goods without hallmark, as listed in § 27 Paragraph 1 Item d), might become a subject of the domestic market.
§ 29
Liability for Damage
(1) The Assay Office is liable for damage, loss or destruction of the goods, which have received and accepted for the purpose of the hallmark control, unless the damage is due to and caused by any other circumstances and/or parties.
(2) the Assay Office will not be liable for the damage if:
a) the goods are damaged in the course or as a result of the chemical test, as long as it has been properly performed by the Assay Office with all due diligence and on the basis of applicable legal authorisation,
b) the domestic or foreign goods are destroyed and/or discarded by the Assay Office in accordance with and by virtue of this Act.
(3) In all other cases, the Assay Office is liable for damages on the basis of applicable provisions set out in the general regulations concerning the liability for damage.
PART THREE
Testing of other products and objects made of precious metals
§ 30
Czech Coins
The manufacturer of the Czech coins is obliged to submit to the Assay Office the samples of the coinage which shall be tested for their fineness. The manufacturer may not deliver the coinage (strike lot) to the purchaser without the prior consent of the Assay Office; this provision applies without any prejudice to the specific regulations6).
§ 31
Dental Precious Metals
(1) Dental precious metals may be a subject of trade or may be put into circulation in another way provided that they do not jeopardise human health or environment. This requirement is regarded as fulfilled if these metals meet all conditions specified in the specific legal regulation6a) .
(2) The manufacturers or merchants are obliged to submit to the Assay Office, in accordance with its instructions, the samples of the dental precious metals for testing of their fineness.
§ 32
Gold and Silver Leaf/Foils
(1) Upon request, the Assay Office will verify the fineness of the gold and/or silver leaf/foils. The gold and/or silver leaf/foils shall be submitted to the verification in the form of a book.
(2) If the identified fineness of the gold and/or silver leaf/foils complies with the values indicated on the book cover, the Assay Office will verify the fineness by appending the official stamp to the book cover.
(3) To verify the fineness, the Assay Office will take a random sample amounting to 1% of the entire number of the leaf/foils, however at least one piece; no compensation might be claimed for the sample taken thereby.
§ 33
Items Made of Precious Metals
(1) Upon the submitter´s request, the Assay Office determines the content of the precious metals in the various submitted items/objects, jewellery alloys, scrap or samples which are not covered by the obligatory hallmark control. If practical and upon the submitter´s consent, the Assay Office is entitled to re-melt or modify the submitted items/objects, jewellery alloys, scrap or samples. Subsequently, an official notice shall be issued by the Assay Office concerning the results of such inspection.
(2) The Assay Office is entitled to mark only the ingots which were melted by the Assay Office itself from the submitted products, semi-finished products, including all other precious metal ingots, scrap or waste. The Assay Office will strike out the hallmark to the ingot. Ingot size permitting, the Assay Office shall also stamp a number thereto, or fineness value and weight of the ingot, otherwise all theses data should be properly indicated in the attached official notice.
(3) The Assay Office will not perform the determination and verification of the precious metals content if such performance requires technical equipment which is not available at/for the Assay Office.
§ 34
Provisions set out in § 25 and 26 shall be applied accordingly to all other products and items made of precious metals.
PART FOUR
Duties and Obligations of the Manufacturers and Traders, Register of Manufacturers and Traders
§35
(1) The manufacturers and traders are obliged to notify in writing the Assay Office within 15 days of the opening of their business of the following
a) the name and surname, or the trade name, and the birth identification number if it has been allocated, if not, the date of birth, the address or domicile, the registered office6b) and the postal address if it differs from the registered office, and the business premises including their addresses if these have been established, the company identification number if it has been allocated, and the type of activity in the field of precious metals, if it is the natural person, or
b) the trade name, the registered office, the business premises including their addresses if these have been established, the company identification number if it has been allocated, name and surname, the address or domicile of persons who are the statutory bodies or members of the statutory body, and the type of activity with the precious metals, if it is the legal person.
(2) The manufacturers and traders submit to the Assay Office together with the notifications under the paragraph 1 the certified copy of the valid trading certificate and the copy of the valid incorporation certificate if the respective manufacturer or trader is incorporated in the Commercial Register.
(3) The business premises in the paragraph 1 are the premises under the separate legal regulation6c). The goods or other products made from the precious metals may be traded also at the electronic address in the information system (hereinafter referred to as "electronic address"). The openings and terminations of activity in the business premises and at the electronic address shall be notified in writing to the Assay Office by the manufacturers and traders at least 3 days in advance.
(4) In the notification under the paragraph 3, the manufacturer or trader shall specify the following:
a) name and surname, or trade name,
b) identification number it has been allocated,
c) business premises addresses, or the electronic address,
d) date of launching and termination of the activities in the business premises and at the electronic address.
(5) The manufacturers and traders are obliged to inform the Assay Office in writing of all changes of data in the paragraph 1 and to document them within 15 days of their origination including the documents specified in the paragraph 2.
(6) The duties and obligations under the paragraphs 1 to 5 are reasonably related also to the persons selling the products which are the results of their intellectual and creative activity protected by the separate legal regulation.6d)
§ 36
Only the manufacturer to whom it was assigned may use the maker's mark. He may mark with it only the goods which were manufactured or completed by him.
§ 37
(1) Manufacturers and merchants are obliged to keep records on the weight and fineness of the precious metals used and stored.
(2) Manufacturers are obliged to keep records on the weight of the goods produced and on all repairs and remedies conducted; merchants are obliged to keep records on the goods receipt, purchase and sales.
(3) The manufacturers and traders are obliged to use the prescribed measuring instruments when determining the weight of the precious metals or goods.7) The manufacturers and traders are obliged to equip all their business premises in which the immediate contacts with the clients occur with the prescribed measuring instruments. This obligation does not relate to the traders who deal exclusively in the silver goods the weight of which does not exceed 10 grams per one piece. In case of the silver goods, the determination of the weight of silver and the silver goods may be performed with the accuracy of one gram and in case of other precious metals and the gold and platinum goods with the accuracy of 0.05 gram.
Sale of Goods
§ 38
(1) Merchants shall not trade in non-hallmarked goods or have or offer it for sale or advertise such goods, unless otherwise stated herein.
(2) Ban on the sale of non-hallmarked goods shall also apply to the following:
a) sale of goods instructed by the court or the administration authority under the separate legal regulations8),
b) sale of the pawned goods by the pawnbroker,
c) sale of goods by public auction,9)
d) sale of goods which were produced as a result of intellectual creative activity, protected by the specific legal regulation6d).
§ 39
(1) The goods offered or intended for sale or stored for the same purposes must be placed separately from the other products at the point of sale or warehouse; the same provision applies to the storage of the non-hallmarked goods not intended for sale and the domestic goods intended for export.
(2) Upon selling the goods, merchants are obliged to issue a receipt indicating the type, price, weight and fineness of the goods being sold. The same provision applies to the purchase of scrap or goods from the customers. However, as regards the sale of silver goods the weight of which does not exceed 10 grams, the voucher need not indicate the weight thereof.
(3) The Czech hallmark specimen shall be visibly, accessibly and permanently displayed at the point of sale.
(4) This does not affect provisions of special legal regulations.11)
§ 40
(1) Merchants who, apart from the goods governed by this Act, also sell various objects and items made of gold, silver or platinum however with their fineness lower than the values given in § 3 Paragraph 2, or those made entirely of common metal or non-metallic materials, with their surface finish made of the precious metals, shall not use for the sale of such items any data which would mislead the customers about the nature of such items and/or to confuse the same with the goods specified in § 3, particularly by identifying and designating the same by terms such as "Gold", "Silver" or "Platinum", including all derived or translated terms (hereinafter referred to as "misleading marking"). Misleading marking is also passing the goods off as the products made from the base metal or other material.
(2) The traders are obliged to label the objects given in the paragraph 1 distinctively and to display them separately. This shall also be applied to the goods made from the different finesses or from various precious metals, especially if the surface is finished in such a way that it could raise a misleading presumption on their actual composition.
§ 40a
Register of Manufacturers and Traders
(1) The Assay Office keeps the register of the manufactures and traders (hereinafter referred to as "register"). The register keeps the records of the following:
a) as regards the natural person, name and surname, or the trade name, and the birth identification number if it has been allocated, if not, the date of birth, the address or domicile, the registered office and the postal address if it differs from the registered office, the addresses of the business premises if these have been established, the electronic address if it has been established, the company identification number if it has been allocated, and the type of activity with the precious metals,
b) as the regards the legal person, the trade name, registered office, the addresses of the business premises if these have been established, the electronic address if it has been established, the company identification number if it has been allocated, name and surname, the address or domicile of the persons who are the statutory bodies or members of the statutory body, and the type of activity with the precious metals,
c) the business premises in which the activities with the precious metals are carried out,
d) the date of launching and termination of the business activities with the precious metals,
e) the review of the inspections carried out and the fines imposed.
(2) The items of the public record of the register include the name and surname, the trade name, the registered office, the type of activity with the precious metals, the identification number, the business premises, and the electronic address as regards the natural person, and the trade name, registered office, the type of the activity with the precious metals, the identification number, business premises, and the electronic address as regards the legal person.
(3) The items of the public record of the register are accessible for everyone and it is permissible to make extracts or copies of them.
(4) On request in writing, it is possible to make a copy or an extract of items of a concrete public record in the register or the confirmation either of a specific record or of the fact that a specific record is not included.
(5) The data included in the items of the public record of the register are published by the Assay Office in the way allowing remote access.
PART FIVE
Hallmark Inspection
CHAPTER I
Rights and Duties of the Hallmark Inspection
§ 41
(1) At the manufacturers' and merchants' sites (hereinafter referred to as "inspected persons"), the Assay Office is to inspect the following features:
a) whether the goods being sold, advertised, merchandised or stored for any of these purposes have not circumvented the hallmark inspection and whether they are properly designated with the fineness number, if prescribed by the legislation,
b) fineness and composition of the jewellery alloys or dental precious metals,
c) adherence to the other provisions set out herein.
The inspected persons are obliged to provide the Assay Office personnel with all necessary co-operation during the inspection.
(2) The employees of the Assay Office authorised in writing by its executive or by another person in charge (hereinafter referred to as "inspectors") are entitled during the inspection under the paragraph 1:
a) to enter all the production, storage or sales premises and other states related to the activities of the inspected person pursuant to this Act,
b) to inspect the records kept and maintained by the inspected person pursuant to this Act or the records kept and maintained under another legal regulations provided that they are related to the activities of the inspected person pursuant to this Act,
c) to conduct the tests fineness of the goods as well as the jewellery alloys or the dental precious metals including taking of samples and for that purpose they are entitled to require their submission. For that purpose also the products made from other materials than the precious metals are regarded as goods if they are likely to be visually mistaken for goods.
d) to withdraw the goods for the purpose of the control or to secure the goods against an unauthorised disposal if a reasonable suspicion has been arisen that, in contradiction with this Act, they were not submitted for the hallmarking control. If the goods are not withdrawn then the inspected person is given a deadline for submission of the goods to the Assay Office for the hallmarking control.
(3) The inspectors will issue appropriate certificate on any samples or goods withdrawn, indicating their weight. The precious metal taken as a sample will be returned by the Assay Office after the test has been completed. The goods taken by the Assay Office shall be handled as per Part Two of this Act.
(4) The inspectors are obliged, without unreasonable delay, to make the person inspected familiar with the results of the hallmark inspection.
§ 42
(1) The inspectors shall prove their identity showing the identification card of the Assay Office.
(2) The inspectors are obliged to keep confidential all information and facts forming the production or trade secret that has been revealed and disclosed to the same in the course of the inspection. This provision will remain effective even after the tenure of the inspector expires.
(3) Provisions regarding the confidentiality, as per Paragraph 2 herein, might be waived only by the director of the Assay Office.
CHAPTER II
Penalties
§ 43
(1) The Assay Office shall impose a penalty of up to CZK 500 000 if the person inspected:
a) fails to issue the written notice as per § 35 herein, or makes it late or incompletely,
b) uses the maker's mark or responsibility mark in contrary to this Act or makes such utilisation possible,
c) fails to discharge his/her obligations set out in § 39 Paragraph 1 to 3 or § 40 Paragraph 2,
d) fails to maintain the records and files prescribed by this Act, or fails to do the same on a correct and complete basis.
(2) The Assay Office shall impose a penalty of up to CZK 1 000 000 if the person inspected:
a) trades in goods, which are subjected to the statutory hallmark inspection, without proper official mark/identification or is in possession of such goods or advertise the trade thereof,
b) trades in goods which, in contrary to this Act, are not designated with the fineness number,
c) counterfeits or misuses the hallmark or deliberately trades in goods bearing such counterfeited hallmark,
d) trades in goods designated with a fineness number that is higher than the actual value thereof,
e) makes or uses the misleading marking of goods in sale,
f) sells or otherwise launch to the circulation the dental precious metals which do not comply with requirements set out in § 31 Paragraph 1,
g) fails to employ the prescribed measuring equipment7) or uses the same without being properly verified or it has not them available in the business premises,
h) prevents and hinders the inspector from carrying out the inspection or impedes the execution of the inspection by denying the access to the relevant premises, perusing the records, fails to submit the required goods to the inspector, or fails to provide the inspector with the necessary assistance and co-operation within the period determined by the inspector,
i) repeatedly commits the acts listed in Paragraph 1,
j) fails to submit the goods to the hallmark control within the period determined by the inspector.
(3) The Assay Office shall impose a penalty of up to CZK 1 500 000 if the person inspected commits the acts listed in Paragraph 2 Items a) to f) thereby gaining enormous property advantage12) which otherwise would not be gained by the same.
(4) The Assay Office shall impose a penalty of up to CZK 50 000 for failure to perform and discharge any other obligation prescribed herein..
§ 44
Imposition of Penalties
(1) Should the person inspected commit several unlawful acts, the Assay Office is to impose a penalty on the former as per the provisions applicable to such acts to the most severe extent.
(2) Proceedings concerning the imposition of the penalty, as per § 43, might be initiated by the Assay Office within one year from the date when the same came to its knowledge, however not later than within three years from the date when the relevant act was committed.
(3) When determining the amount of the penalty, the Assay Office shall take into account the severity, nature and period of the unlawful act, the extent of the consequences and the timely and effective collaboration in removing the deficiencies.
(4) The penalty is due and payable within 30 days from the effective date of the decision on the imposition of the same. The penalties will be channelled to the state budget.
§ 45
(1) The penalties for unlawful acts, as per § 43 Paragraphs 1 to 4, shall be imposed by the Assay Office upon any other person who, without being in possession of the relevant authorisation, pursue the same activity as the manufacturer of the merchant.
(2) The penalties for unlawful acts, as per § 43 Paragraph 2 Item c), shall be imposed by the Assay Office upon any persons other than the manufacturer of the merchant.
(3) The penalties for unlawful acts, as per § 43 Paragraph 2 Item e) and Paragraph 3, shall be imposed by the Assay Office upon any persons who, in the course of their licensed commercial activity and services13), commits the act of deceptive designation.
(4) Penalties imposed as per Paragraphs 1 to 3 shall be accordingly covered by the provisions set out in § 44.
PART SIX
Common, Transitional and Final Provisions
Common Provisions
§ 46
(1) The Assay Office shall assign the picture of the maker's mark within 30 days of the delivery of the request of the manufacturer. The manufacturer shall submit with the request also the certified copy of the valid trading certificate and the certified copy of the valid certificate of incorporation if the manufacturer is incorporated in the Commercial Register. Upon the termination of the business activities, the manufacturer loses the right of using the maker's mark and is obliged to ask the Assay Office in writing for its cancellation.
(2) The person authorised to continue the original activity in accordance with the specific legal regulation11) is allowed by the Assay Office to use the same maker's mark as the one of the original manufacturer.
(3) If there are several authorised persons, as per Paragraph 2, the Assay Office shall decide on which of these to be retained the original maker's mark, unless the persons concerned achieve the written consensus about the exclusive utilisation of the maker's mark in question.
(4) The Assay Office shall also assign the picture of the maker's mark, in accordance with Paragraph 1, to any person the goods of whose were produced as a result of his/her intellectual creative abilities, protected by the specific legal regulation6d).
§ 46a
(1) The Assay Office shall assign the picture of the responsibility mark within 30 days of the delivery of the request of the trader. Upon the termination of the business activities, the trader loses the right of using the responsibility mark and is obliged to request the Assay Office in writing for its cancellation.
(2) Provisions of § 46 Paragraph 1, second sentence and § 46 Paragraphs 2 to 4 apply to the responsibility mark accordingly.
§ 47
(1) Two identical or confusable maker's marks or the responsibility marks, or the maker's marks or the responsibility marks which are identical or confusable with the registered trade mark shall not be assigned in the territory of the Czech Republic.14)
(2) If the Assay Office finds out that the assigned maker's mark or responsibility mark have already been assigned, it shall notify thus affected manufacturer or trader about it immediately and shall assign another manufacturer's or responsibility mark for it without a request. This does not affect the right of the manufacturer for the damages compensation.
§ 48
(1) Upon request submitted by the Applicant for carrying out the trade in "production of precious metal alloys for jewellery and dental purposes"15), the Assay Office will issue a certificate of compliance with further qualification requirements, subject to verification and review of the chemical test results necessary for production of the jewellery alloys or dental precious metals and subject to the review of the production technologies.
(2) Should the Assay Office discover that any of the original terms and conditions, upon which the certificate was awarded, has not been observed properly, and should the Entrepreneur fail to remove or remedy the relevant deficiency within the prescribed period, the Assay Office is entitled to cancel the aforementioned certificate.
§ 49
(1) The jewellery alloy with statutory fineness, complying with the terms and conditions stated in § 15 Paragraphs 3 and 5, and which has been chemically tested by the Assay Office or its authorised representative, shall be incorporated by the Assay Office to the Registered Alloy Catalogue, upon request submitted by the manufacturer or the merchant; the request shall include and indicate the complete composition of the alloy.
(2) Should the manufacturer or the merchant fail to make the necessary quantity of the jewellery alloy available to the Assay Office, the Assay Office does not incorporate the same to the aforementioned Catalogue.
§ 50
(1) The goods marked in the manner set down by the international treaty by which the Czech Republic is bound are considered to be hallmarked pursuant to this Act.
(2) The goods tested and marked by the respective independent authority of the member state of the European Union under the legal regulations of the country, namely in the manner expressing comprehensively and identifiably the fineness of the goods equivalently to the marking pursuant to the Act, are considered to be hallmarked pursuant to this Act.
§ 51
All acts and activities performed by the Assay Office under this Act are charged on the basis set out in the specific legal regulation.16)
§ 52
Upon request, the Trade Licence Office shall provide the Assay Office with a copy of the Trade Licence/Permit17) issued in the name of the manufacturer or the merchant.
§ 53
All administrative proceedings under this Act are governed by the General Rules for the Administrative Proceedings18), unless otherwise specified herein.
§ 54
(1) By virtue of the relevant Decree, the Ministry specifies and prescribes:
a) details about the hallmark inspection and tests on the products and items made of the precious metals,
b) details about identification and marking of ingots.
(2) The Ministry shall issue a decree to implement provisions set out in § 15 Paragraph 3, § 16 Paragraph 2 and 3, § 19 and § 27 Paragraph 1 Item a) Sub-item 3 and Item d).
Transitional Provisions
§ 55
(1) Announcements of commencement of trading activity, change in the type or place thereof, made before the effective date of this Act, are construed as being covered by this Act.
(2) Maker's marks assigned before the effective date of this Act shall be and remain legally valid.
§ 56
The goods furnished with official mark/identification under this Act are those marked in the manner specified in the regulations effective and valid in the territory of the Czech and Slovak Federal Republic before the effective date of this Act, with the exception of the following:
a) goods bearing the hallmarks which were used in the aforementioned territory by other states and countries from 1938 to 1945,
b) items and objects bearing the hallmarks for the gold fineness lower than 333/1000.
Final Provisions
§ 57
The following provisions are hereby cancelled and become null and void:
1. § 35 Paragraph 2 in Act No. 30/1968 Coll., on State Testing Institutes,
2. Decree promulgated by the Ministry for Metallurgy and Ore Mines No. 93/1962 Coll., on public service in the field of precious metals, as amended by Decree No. 34/1968 Coll. and Decree No. 154/1980 Coll.,
3. § 7 Paragraph 2 Item a) in Decree promulgated by the Federal Ministry of Finance No. 61/1968 Coll., on preliminary administration of public and national property,
4. Decree promulgated by the State Planning Office No. 216/1955 Ú.l. on Management of Borts,
5. Decree promulgated by the Ministry of Light Industry No. 336/1952 Ú.l. (390/1952 Ú.v.) on Disposal and Collection of the Sintered Carbide Waste (tungsten carbide) and Bort Waste.
§ 58
This Act comes into force as of 31st December 1992.
* * *
Act promulgated by the Czech National Council No. 19/1993 Coll., on State Administration Bodies of the Czech Republic in the field of the hallmarking and testing of precious metals came into force as of 1st January 1993.
Act No. 127/2003 Coll., amending and governing Act No. 539/1992 Coll., on Hallmarking and Testing of Precious Metals (Hallmark Act), as amended and fully specified in Act No. 19/1993 Coll. came into force as of 1st January 2004, with the exception of Clause I Items 21 and 54, which will come into force as from 1st July 2004, and with the exception of Clause I Items 22 and 85, which will come into force as from the effective date of the Contract on Accession of the Czech Republic to the European Union Contract.
Prime Minister
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[1] § 12 Act No. 6/1993 Coll., on Czech National Bank
2 Act No. 455/1991 Coll., on Business Enterprise (Trading Act), as amended.
2a E.g. Act No. 29/1984 Coll. on System of Elementary and Secondary Schools and Colleges (School Act) as amended
2b Act No. 121/2000 Coll. on Copyright and Related Rights and on Amendments to Respective Acts (Copyright Act)
2c Act No. 19/1993 Coll. on Authorities of Public Administration of Czech Republic in Area of Hallmarking and Precious Metal Control as amended by Act No. 309/2002 Coll
4 § 128 Act No. 13/1993 Coll., Customs Act, as amended by Act No. 1/2002 Coll.
4a E.g. Decree No. 301/1998 Coll. establishing the list of chemical substances and chemical agents the production, launching on the market and utilisation of which is regulated within the meaning of Decree No. 390/2000 Coll.
5 § 139 to 144 Act No. 13/1993 Coll., as amended by Act No.1/2002 Coll.
5a § 133 and foll. Act No. 13/1993 Coll., as amended.
5b § 214 and 216 Act No. 13/1993 Coll.
6 § 14 and 15 Act No. 6/1993 Coll.
6a Act No. 22/1997 Coll., on Technical Requirements for Products and on Amendments to Laws as Amended
6b § 2 par. 3 Commercial Code
6c § 17 Act No. 455/1991 Coll
6d Act No. 121/2000 Coll
7 § 3 Act No. 505/1990 Coll. on Metrology as amended by Act No. 119/2000 Coll.
8 E.g. Code of Civil Procedure, Act No. 328/1991 Coll., on Bankruptcy and Settlement Proceedings as Amended by Subsequent Regulations, Act No. 337/1992 Coll. on Administration of Taxes and Fees as Amended by Subsequent Regulations.
9 Act No. 26/2000 Coll., on Public Auction, as amended
11 Act No. 455/1991 Coll., on Business Enterprise (Trading Act),.
12 § 64 Act No. 455/1991 Coll.
13 § 33 and 43 Act No. 455/1991 Coll.
14 Act No. 137/1995 Coll., on Registered Trade Marks, as amended.
15 Appendix No. 2 to Act No. 455/1991 Coll., as amended by Act No. 174/2002 Coll.
16 Act No. 368/1992 Coll., on Administrative Charges, as amended.
Decree No. 53/1993 Coll., regulating the amount of the hallmarking charges and modes of payment thereof, as amended.
17 § 48 Paragraph 2 Act No. 455/1991 Coll.
18 Act No. 71/1967 Coll., General Rules for the Administrative Proceedings (Administrative Code).