Draft Law on Exceptional Price Control Measures Determined, Especially in Case of Market Disruptions

(Patria) - The Government of the Federation of BiH, at the proposal of the Federal Ministry of Trade, has determined the Draft Law on Exceptional Price Control Measures. This draft law will be sent to the Parliament of the Federation of BiH.

This law regulates the method and conditions for forming prices of products and services, price control and monitoring by competent authorities in the market of the Federation of BiH, then exceptional price control measures in case of significant market disruptions, and establishes the rights and obligations of competent authorities of the Federation of BiH, cantons, cities, and municipalities in exercising price control, as well as other issues significant for the area of prices.

The novelties brought by the Draft Law on Price Control are that the authority of the Federal Ministry of Trade and the Federal Ministry of Energy, Mining and Industry related to the preparation of proposals for exceptional price control measures are more precisely regulated, then what constitutes a significant market disruption is more precisely defined. Also, exceptional price control measures for certain products and services are more precisely defined, and the temporal duration of the prescribed measures, which the Federal Ministry of Trade proposes to the Government of the Federation of BiH and which last for a maximum of six months, is defined, as well as the possibility of exceptionally extending them for another six months in order to achieve effects.

At the same time, the products and services for which cantons, cities, and municipalities can prescribe exceptional price control measures in accordance with this law are specified, it is stipulated that administrative supervision over the application of this law and regulations adopted based on this law is carried out by the Ministry, and inspection supervision over the application of the law and regulations adopted based on this law is carried out by federal market, tourism and hospitality inspectors and cantonal, city and municipal market inspectors, each within their jurisdiction, in accordance with the authorizations prescribed by this law and regulations governing inspection supervision.

The proposer believes that all the listed changes required the proposal of a new law regulating the area of price control. It is also explained that the current Law on Price Control stipulates that business companies, other legal and natural persons freely form prices of products and services according to market conditions, except for products for which a different method of price formation is established by a special regulation.

It is also stated that during the application of the current Law on Price Control, it was observed that certain provisions of the Law were not clearly enough defined and it was assessed that they should be regulated more precisely for easier application.