Tighten practicing conditions of enterprises operating price appraisal

Many regulations are added to strengthen the control over firms operating price appraisal. Source: internet.

Decree No. 12/2021/ND-CP supplementing the requirements for the legal representative, director or general director of firms operating price appraisal.

Accordingly, the legal representative, director or general director of the firms operating price appraisal must:

1. Be a price appraiser registered to practice at an enterprise provided for at Point c, Clause 1 or Point c, Clause 2, or Point c, Clause 3, or Point c, Clause 4, or Point c, Clause 5, Article 39 of the Law on Prices;

2. Having at least three years (36 months) being a practicing price appraiser before becoming the legal representative, director or general director of the price appraisal enterprise.

3- Not be the legal representative, the Director or General Director of the price appraisal enterprise has been revoked the certificate of eligibility for business in price appraisal service for a period of one year (12 months) up to the time of submitting dossier for issue, re-issue of certificate of eligibility for business in service of appraisal of prices.

Decree No. 12/2021/ND-CP also clearly states that enterprises operating price appraisal are in the time of being suspended or suspending their price appraisal activities. When enterprises operating price appraisal fail to satisfy one of the conditions corresponding to types of enterprises specified in Clauses 1, 2, 3, 4 and 5, Article 39 of the Price Law but have not been suspended. Appraisal activities are not allowed to sign price appraisal service contracts.

Regarding the prices of price appraisal services, Decree No. 12/2021/ND-CP amending the prices of price appraisal services must comply with the agreement between enterprises operating price appraisal and customers prescribed in Clause 2, Clause 3, Article 11 of Decree No. 89/2013/ND-CP on a principle of ensuring the actual production and business costs are offset reasonably, with profits in accordance with the market price level and recorded in the contract of price appraisal; in case selection of selecting a contractor for price appraisal falls within the governed scope of the Bidding Law and the provisions of the bidding law shall apply.

Supplementing provisions on dispute settlement

In addition, Decree No. 12/2021/ND-CP also supplements the regulation on the settlement of disputes on appraisal results between firms operating price appraisal and customers.

According to the regulation, when a dispute arises over appraisal results between enterprises operating price appraisal and customer, the dispute resolution is done in the following forms:

1. To negotiate and conciliate on the basis of commitments stated in the price appraisal contract.

2. Settled by commercial arbitration.

3. To initiate a lawsuit at court in accordance with the law.