Unfair Trade Practices Proclamation, No. 125 of 2002

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2. Repeal All proclamations, regulations, directives or notices inconsistent with or contradictory to this Proclamation are hereby repealed and replaced.

3. Definition In this Proclamation, unless the context otherwise reqmres: (a) "Minister " shall mean the Minister of Trade and Industry; (b) "dealer" shall mean any natural or juridical person who is engaged in any commercial activity under the relevant laws of Eritrea; (c) "importer" shall mean any dealer who brings or causes to be brought any goods into Eritrea; 18 (d) "wholesaler" shall mean any dealer who sells or otherwise disposes of any goods to any retailer; (e) "retailer" shall mean any dealer who sells or otherwise disposes of any goods to any consumer; (f) "goods" shall mean any materials, commodities or articles whether imported or locally produced; (g) "Services" shall mean any activity for which compensation other than wages or salaries is paid for; (h) "unfair trade practices" shal I mean the act of any one person or of several persons by way of actual or tacit agreement, or arrangement of informal understanding having or designed to have the direct or indirect of restraining or injuring trade or the free competition thereon; or any monopolistic, profiteering or di scrim in;:itory activities which operate or are likely to operate against the interest of the public whether consumers, producers, dealers or other; (i) "Short supply" shall mean a supply of goods which does not correspond to the normal demand for goods and mig ht lead to unfair trade practices; G) "declared article" shall mean any goods or services declared to be so by the Minister; and (k) "Country" shall mean Eritrea. 19

4. Declared Article (a) The Minister, upon satisfaction that any goods or classes of goods or services are in short supply or are made the subject of unfair trade practices, may: (i) declare by legal or public notices such goods or classes of goods or services as declared articles to be subject to price control; and (ii)issue orders, in writing fixing the maximum prices at which such declared articles shall be sold by manufacturers, importers, wholesalers, or retailers, or notify the formula whereby the prices of such declared articles shall be computed. (b) Where any goods have been made a declared article, the Minister or any person authorized by him in writing may order all dealers holding stock of such declared article to render to him a full return of all such stocks held and may prescribe appropriate temporary measures pending receipt of such 20 return and the manner of disposing of such stocks after the receipt of such returns. (c) The prices and formula referred to m paragraph (a) (ii) of this Article shall be fixed by the Minister upon the advice of a special committee comprising such members as are appointed by the Ministers of Trade and Industry and of Finance. In fixing said prices and formula, the Minister and the special committee shall take into consideration, inter allia, the following factors: (i) cost of production; (ii) cost of transportation; (iii) tum - over; (iv) losses of perishable goods; (v) losses through obsolescence; (vi) the skill, intellectual activity and time required to accomplish the service; and (vii) fair profit to the seller or to the person who renders the service. 21 ( d) Where any dealer fails to comply with any order issued under paragraph (a) (ii) of this Article or paragraph (b) of Article 5 hereof or hoards or fails to dispose of his stocks of declared articles in the normal way of business and in accordance with the order issued under this Proclamation, the Minister may order the seizure of such stocks and make such arrangements for the disposal of such stocks and may, in addition, order the suspension of any trading licence of such dealer until a court verdict is rendered on the subject matter. (e) Where the stocks of the declared articles have been disposed of pursuant to the provisions of paragraph (d) of this Article, the Minister shall order that payment be made to the dealer of the proceeds realized on their sale less any expenses incurred m connection with their seizure and sale.

5. Trade Practice (a) No dealer shall: (i) buy up, hoard, divert from normal trade channels or in any other way withhold any 22 goods from normal use or consumption; or (ii) engage in or become party to an unfair trade practice; or (iii) sale any declared article at a price exceeding that fixed by or in a manner ordered by the Minister. (b) Where any dealer has sold any declared article above the fixed price, the Minister or any person authorized by him in writing may order such seller to repay to the purchaser the amount paid in excess of such prices. or (c) No wholesaler or retailer shall purchase any declared article for resale at a price exceeding that fixed by the Minister, and where he purchases any such article above the fixed price, he shall be presumed to have bought it at the normal price. (d)No dealer shall sell or transact any declared article of purity or quality below the minimum standard laid down by the Minister.

6. Records (a) Every dealer who is not a retailer as such 23 shall: (i) keep a register of purchases and sales in respect of a]] goods acquired or held by him and make accurate daily entries therein; (ii) deliver an invoice in respect of all goods sold by him and shall receive one in respect of all goods purchased by him, and preserve all such invoices; and (iii) display conspicuously the sale prices of all goods. (b) The Minister may by regulations subject certain classes of, or all retailers, to all or some of the provisions of paragraph (a) of this Article .

7. Price fixing When the maximum selling price of any goods or services cannot be ascertained, the Minister or any official authorized by him, may by a written order and taking into consideration, inter aLiu, the factors stated in paragraph (c) of Article 4 24 .. hereof, fix the maximum price at which such goods may be sold or services rendered.

8. Notices The Minister, in issuing written notices under Article 4 hereof, shall issue all or any order through the Gazette of Eritrean laws or notices, or through circulars directly communicated to the persons concerned. Such orders shall come into force and shall remain in force from the period and for a period of time specified in the notices or Gazette of Eritrean laws. 9.lnspection (a) Any official authorized by the Minister may at all reasonable times enter into premises where goods are sold or services rendered to inspect whether or not the proVIs10ns of this Proclamation are being complied with. (b) Every person in charge of such premises shall, when called upon to do so, produce all documents, papers, letters, records, invoices and registers for inspection by the authorized official and shall render to him every assistance. ' 25

10. Regulations ' t The Minister may issue regulations: (a) regarding the establishment of the offices necessary for the proper administration of this Proclamation; (b) prescribing purity and quality standards for ... declared articles; and (c) generally for putting into effect of the purpose of this Proclamation. I I.Sanctions Whosoever contravenes the proV1s1ons of this Proclamation or of any regulations, orders or notices prescribed thereunder shall, on conviction be liable to punishment under the appropriate provisions of the Penal Code of Eritrea.

12. Effective Date This Proclamation shall come into force upon its publication in the Gazette of Eritrean Laws. Done at Asmara, this 2ih day of December ,2002. Government of Eritrea. 26