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The President of the Republic, Whereas the Constitution, Whereas Law No. 36/88 of 17/11/1982 (granting the government the right to issue decree-laws) Whereas Law No. 10/83 of21/5/1983 (extending the implementation ofthe provisions of Law No. 36/82 of 17/11/1982), After consultation with the Council of State, On the proposal of the Minister of Justice, the Minister of Finance, and the Minister of Economy and Commerce, And after approval by the Council of Ministers during its meeting on 617/1983, Decrees the following: TITLE I - COMMERCIAL ESTABLISHMENTS AND THEIR ACTIVITIES Article 1 Any person carrying on a commercial actrvity through a commercial establishment or a trade store, must submit a declaration to the Ministry of Economy and Commerce - Service of Protection of the Consumer - or to regional services in the "Mohafazats" (governorates), according to legal qualification, indicating the following: 1 - Name of the establishment or store - head office and full address - telephone number. 2 - Names of the owners or investors with their nationalities and domiciles. 3 - Type of trade carried on. The time-limit for the submission of the required declaration is three months dating from the enforcement of the present decree-law for establishments and stores already in operation, as well as for any establishment or store set up after the date of enforcement ofthe present decree-law. This time-limit may be extended, if need be, by decree on the proposal of the Minister of Economy and Commerce. Article 2 For the computation of legal rates of profits, commercial operations may not exceed the three following steps: 1 - Wholesale trade: This category includes: - Whoever buys goods, commodities or products, locally or from abroad, in order to sell them in wholesale in small quantities or in retail. - The local producer who carries on his work outside the production centre. - The branch of an establishment located abroad or a local establishment for wholesale trade. - The commercial representative, or the Agent, or the trade office, defined by the laws in force. 2 - Wholesale in small quantities: This category includes commercial operations between the wholesaler and the retailer. 3 - Retail trade This category includes the sale of goods, commodities and products directly to consumers. TITLE II - PRICES Article 3 On the territory of all municipalities of more than five thousand inhabitants and in all localities listed as summer resorts, as well as in all villages situated alongside international highways, all retail establishments shall be required to indicate the price, in Lebanese currency, of goods, commodities, products and services of every nature, with mention of their exact name and type in accordance with business practice. These particulars regarding an item of goods or the same batch of identical objects shall be written legibly on a visible and clean label, placed on the item of goods itself or relating without any possible equivocation to this item of goods. The particulars referred to above shall accurately indicate the quantity corresponding to the price per unit of object, per weight, or per capacity, in conformity with the law setting official measurements. Article 4 In case it is impossible to apply and implement the provisions of article 3 of the present decree-law: The indication of prices, written on a visible general list posted at the main entrance or inside these stores and indicating by categories the products on sale, shall be deemed sufficient. - The text of the first paragraph of the present article shall also apply to hotels, restaurants, cafes, bars and establishments serving meals or beverages, as well as to establishments and stores offering services. Article 5 For all commercial acts and trade in wholesale or wholesale in small quantities, the seller must deliver a list (invoice) to the buyer, mentioning the goods, commodities and products sold, and indicating: 1 - The name of the commercial establishment, store or trade centre. 2 - The name, type and category of the goods sold. 3 - The sale unit - its price - the quantity sold and its total value. 4 - The date of the sale. 5 - The signature of the seller. The buyer, who buys from a wholesaler or a wholesaler in small quantities, may accept the goods only after having received this list (invoice), and he must keep it in order to justify the Article 6 The Minister of Economy and Commerce has the right to fix the maximum price limit for services rendered and the maximum sale price of products and commodities, as well as the rates of profits. - The Minister shall designate to this effect special commissions made up of professional civil servants, experts, and specialists in the private sector. The maximum limit mentioned in the first paragraph shall be fixed by ministerial order in the light of the reports of the above¬mentioned commissions. Article 7 At the time of the sale of the goods, commodities and products, manufactured locally or imported, without their maximum sale price or their rates of profits being determined, this maximum sale price may not exceed the double of the cost price. Article 8 It shall be forbidden to any manufacturer, trader or seller: 1 - To refuse to meet, within his possibilities, the demands of his customers, when these requests have no abnormal character, or to shut his store with the intent not to sell, on no legitimate ground. 2 - To subordinate the sale of any item of goods, commodity or product, either to the concomitant purchase by the customer of other goods, commodities or products, or to the purchase of a given quantity. 3 - To limit the sale of certain goods, commodities or products to a number of hours by day, if his stores or warehouses remain open for the sale of other goods, provided however that these goods, commodities and products are not subject to special official regulations. 4 - To subordinate the supply of a service to the fulfilment of other commitments when the customer demands a service which is in his capacity and which has a determined value. 5 - To divert to another usage the cereals, flour or meat which might have been remitted by administrative authorities to any miller, baker or butcher, in order to be transformed or sold according to prescribed regulations. Article 9 The Service of Protection of the Consumer has the right, if need be, to request from any manufacturer, trader or seller, the presentation of stock-taking or information relating to the production cost or to the purchase of goods, commodities and products, and to ascertain the validity of such stock-taking and information by all legitimate means. TITLE III - REGULATION OF SALES Article 10 The Minister of Economy and Commerce may issue ministerial orders regulating the retail sale of goods, commodities and products. These regulations may cover the sale by instalments and the sale by public auction, or any other system of sale, as well as the means for increasing sales and the method and conditions of publicity and information for the promotion of sales. COMPULSORY DECLARATION: Article 11 The Minister of Economy and Commerce may impose, by ministerial order, the compulsory declaration for certain commodities and products. In this case, any person detaining a quantity of these commodities or products exceeding the quantity allotted to personal and family consumption needs, or to the trade requirements already determined or which shall be determined by the Minister of Economy and Commerce, must submit a declaration comprising: 1 - Name, first name, domicile or trade centre. 2 - Details about the types, categories and quantities of goods, commodities and products, which he detained at the date of enforcement of the ministerial order issued by the Minister of Economy and Commerce, and what remains at the date of presentation of the declaration. 3 - Details about the site or sites where these goods lie. This declaration shall be presented to the "Cairnacam" or to the "Mohafez" according to legal qualification. It shall be made out in two copies, dated and signed without stamps. A declaration shall be immediately transmitted by the "Mohafez" or the "Caimacam" to the Service of Protection ofthe Consumer or to other regional services according to legal qualification. Article 12 The declaration mentioned in the preceding article must be presented within the time-limit set in the ministerial order issued by the Minister of Economy and Commerce requiring the compulsory declaration. Whoever is once again in possession of commodities, materials, goods or products subject to the compulsory declaration, must submit a declaration therefor within the time-limit set in the aforementioned ministerial order. CONTROLLED DISTRIBUTION: Article 13 Dealing in and possession of certain commodities, goods and products may be submitted to a special system styled " Controlled Distribution System", by decrees issued by the Council of Ministers on proposal of the Minister of Economy and Commerce, in which the conditions and provisions of the system shall be determined. TITLE IV - HOARDING AND ILLICIT SPECULATION Article 14 Shall be considered hoarding: 1 - Any agreement or grouping purporting to limit competition in the production, purchase, import or sale of goods, commodities and products, and likely to facilitate the increase of prices in an artificial manner, or to impede the decrease of these prices. 2 - Any agreement or grouping bearing on the provision of services in order to limit competition, and likely to facilitate the increase of prices in an artificial manner or to impede their decrease. 3 - Any act purporting to group or to hide commodities, goods or products with the object of raising the value thereof, or to close the offices or warehouses on no legitimate grounds in order to secure a profit which would not be the natural result of the interplay of supply and demand. Article 15 Any act among those designated in the preceding article, apparent or concealed, is null as of right for the contracting parties and the members of the grouping. However, the latter may not avail themselves of such nullity against third parties to evade responsibility. In derogation of any contrary text, the clause oflimitation of commercial representation shall apply to third parties only if the Agent declares it by inscribing it in the Trade Register, and for luxury articles only. Articles shall be listed as luxury articles by decree issued on the proposal of the Minister of Economy and Commerce, and following consultation with a commission comprising: The Director General of the Ministry of Economy and Commerce A representative of the Ministry of Habitat and Cooperatives --> President Member - A representative of the Syndical Chamber of Commercial Representatives in Lebanon --> Member - A representative of the Cooperative of Civil Servants --> Member - A representative of the General National Federation of Cooperatives --> Member - A representative of the General Confederation of Workers --> Member A representative of the Chamber of Commerce and Industry in Beirut --> Member Article 16 Whoever provokes or tries to provoke, directly or through a third party, the artificial increase or decrease of the price of commodities, goods and products or others, or shares or public or private bonds, shall be guilty of illegal competition: It shall be likewise whenever untrue or inaccurate news are spread among the public, and whenever goods are offered on the market with the object of disturbing prices or attracting sellers by profits exceeding legal profits or by any other illegal act or system for the same purpose. TITLE V - ESTABLISHING INFRINGEMENTS Article 17 Establishing infringements of the provisions of the present decree-law and drawing up official reports related thereto shall be assigned to the following persons: - Civil servants of the Service of Protection of the Consumer, sworn-in at the judicial service concerned by the Public Prosecutor at the Court of Appeal, who are assigned by a written document to exercise control in conformity with procedures especially established to this effect. - Members of the judicial police officially in charge of undertaking this kind of assignment. These civil servants exercise the authority granted to them in all establishments, commercial stores and warehouses where commodities, products and goods are stored, as well as establishments for services at fixed prices. In order to undertake this assignment in other places where products, materials or commodities may lie, a prior written authorisation from the Public Prosecutor concerned is required. In all cases, these civil servants may have recourse to the Internal Security Forces, if need be. Article 18 The civil servants of the Service of Protection ofthe Consumer officially in charge have the right to demand the communication of all documents that may prove the veracity of the declared information. TITLE VI - ADMINISTRATIVE AND JUDICIAL PROCEDURES Article 19 The infringements of the provisions of the present decree-law are established by official reports in conformity with a special form determined by ministerial order issued by the Minister of Economy and Commerce, in what concerns the controllers of the Service of Protection of the Consumer. Article 20 The official reports are transmitted by the Head of the Service of Protection of the Consumer or by the Head of the Service of Economy and Commerce in the "Mohafazats" (governorates), when these official reports surely fulfil the legal conditions and are accompanied by the required documents, declarations and information, to the Public Prosecutor concerned at the Court of Appeal; they may also be presented to the General Director in the light of the study and the additional enquiry when the Direction of the Service keeps the official report in order to join it to the decision of the General Director. Article 21 (as modified by Law No. 72 of24 July 1991) The Courts of Appeal concerned shall pronounce judgment on the infiingements recorded in the "Mohafazat" where the infringement took place, and the simplified procedure for "flagrante delicto" shall apply to this effect. Their decisions shall not be open to any channel of recourse except for correction of a material error. The amount of the fine decided by judgment may not, in any case whatsoever, be less than the minimum limit. Article 22 Infringements of the provisions of the present decree-law may be proved by all legal means. TITLE VII - PENALTIES Article 23 Whoever infringes the provisions of article 1 of the present decree-law shall be liable to fine of one hundred to two thousand pounds. In case of non compliance after summons, the penalty shall be doubled. Article 24 Whoever infringes the provisions of articles 3 and 4 of the present decree-law shall be liable to fine of one hundred to one thousand pounds and to imprisonment of three days to one month, or to either penalty. In case of a repeated offence, the penalty shall be doubled. Article 25 Whoever has not provided, at the time of commercial operations in wholesale or in wholesale in small quantities, a list (invoice) in conformity with the text of article 5 ofthe present decree-law, shall be liable to fine of one thousand to ten thousand pounds. In case of a repeated offence, the penalty shall be doubled. If there are false indications in the invoice, the infringer shall be punished by fine of one thousand to ten thousand pounds and to imprisonment of three days to one month, or to either penalty. In case of a repeated offence, the penalty shall be doubled. Article 26 Whoever infringes the ministerial orders setting the maximum value of the provision of services and prices, or the rates of profit set in conformity with article 6, or the provisions of article 7 of the present decree-law, shall be liable to fine of one thousand to ten thousand pounds and to imprisonment of five days to one month, or to either penalty. In case of a repeated offence, the penalty shall be doubled. Article 27 Whoever increases the sale price of commodities, products of goods mentioned in article 7 of the present decree-law on no legitimate ground, shall be liable to the penalties mentioned in article 26 of the present decree-law. Article 28 If the commodities, goods and products are sold at a price above the determined maximum limit or above the rate of profit set for their sale, and if the rates of services exceed the maximum limit set therefor, he who draws up the official report establishing the infringement must strive to ensure that what has been unfairly paid in excess is refunded to the interested party, and such refund must be stated in his official report. In case the contravener refuses, his refusal must be clearly mentioned, and it shall be deemed as an aggravating circumstance for the penalty. Article 29 Whoever contravenes the provisions of article 8 of the present decree-law shall be liable to fine of five hundred to three thousand pounds. In case of a repeated offence, he shall be liable to double the amount of the fine and to imprisonment of five days to three months, or to either penalty. Article 30 Any manufacturer, importer or seller who fails to present the statements and information concerning the cost of production or the purchase of goods, commodities and products to the Service of Protection of the Consumer, or who presents inaccurate statements or information, shall be liable to fine of three thousand to ten thousand pounds and imprisonment of five days to one month, or to either penalty. Article 31 Whoever contravenes the ministerial orders issued in conformity with article 10 of the present decree-law, shall be liable to fine of five hundred to five thousand pounds. In case of a repeated offence, the penalty shall be doubled. Article 32 Whoever contravenes the provisions of article 11 of the present decree-law shall be liable to fine of five hundred to two thousand pounds. In case of a repeated offence, the penalty shall be doubled. Article 33 Whoever presents a false declaration or conceals or attempts to conceal commodities, goods or products subject to compulsory declaration, shall be liable to fine of one thousand to ten thousand pounds and imprisonment of ten days to one month, or to either penalty. In case of a repeated offence, the penalty shall be doubled. Article 34 Whoever contravenes the provrsions of articles 14 and 16 of the present decree-law shall be liable to fine of five thousand to fifty thousand pounds and imprisonment of ten days to three months, or to either penalty. In case of a repeated offence, the penalty shall be doubled. Article 35 Any opposition to the civil servants in charge of the implementation of the present decree-law during the discharge of their duties, shall be punished by fine of one thousand to ten thousand pounds and imprisonment of seven days to three months, or to either penalty. If the opposition is aggravated by abuse, threat or aggression, the penalty shall be doubled. Article 36 Whoever conceals or refuses to present the documents mentioned in article 18 of the present decree-law shall be liable to fine of one thousand to ten thousand pounds and to imprisonment of three days to one month ,or to either penalty. Any pretext based on the absence of the compulsory trade books or invoices shall be deemed as an aggravating circumstance for the penalty. TITLE VIII - VARIOUS PROVISIONS Article 37 Any unfulfilled pledge given to the Ministry of Economy and Commerce, about facilitating commercial acts, shall be punished by fine of five hundred to five thousand pounds and imprisonment of three days to one month, or to either penalty. In case of a repeated offence, the penalty shall be doubled. Article 38 In case of contravention of the provisions of articles 6, 7 and 8 of the present decree-law, the commodities, goods and products which are of the same type and category as the goods object of the contravention, shall be seized, wherever they lie, whether in the place where the contravention took place, or in the contravener's warehouses that he occupies personally or through a third person, or in any other place. The judgment may sentence the confiscation of the quantity seized, totally or partially according to the case. Article 39 In case equipment, engines or means of transport are used at the time when the contravention of articles 6, 7 and 8 was committed, such equipment, engines or means of transport shall be seized, pending the decision on the contravention. Article 40 In case of contravention of the provisions of Titles III and IV of the present decree-law, the commodities, goods and products which are of the same type and category as the goods object of the contravention, shall be seized wherever they lie. The judgment may ordain the confiscation of the quantity seized, totally or partially according to the case. Article 41 The seized merchandise shall be officially put under seal, and it shall be kept as a trust at the contravener's or at a third party's (premises), pending the decision on the contravention. If this merchandise is necessary for victualling or subject to rapid deterioration, it must be sold with the knowledge of the Service of Protection of the Consumer, which shall keep the proceeds thereof in conformity with legal procedure, pending the decision on the contravention. Article 42 In case of a second offence pertanung to the same contravention during the same year, the closure of the trade centre in which the contravention took place may be sentenced, besides the penalties mentioned in the present decree-law, and the exercise of the profession shall be forbidden for a period of three days to one month. Article 43 Whoever intervenes or takes part in carrying out the contravention mentioned in the present decree-law, or instigates such contravention or conceals information relating thereto, shall be likened to the main contravener. Article 44 Out of the amount of the fines actually recovered and from the proceeds of confiscation sentenced by judgment in conformity with the provisions of the provisions of the present decree¬law, a sum not exceeding 25% of the total of fines and confiscation shall be set aside. This sum shall be allocated for the remuneration of the civil servants who establish, complete and conduct official reports until judgments thereon are issued. The Minister of Economy and Commerce shall determine the amount to be 'deducted in conformity with the first paragraph, as well as its mode of allocation to the persons who deserve it, by ministerial order on the proposal of the General Director of the Ministry of Economy and Commerce. Article 45 Shall be subject to the provisions ofthe present decree-law: I - Goods, commodities and products, the sale of which is not restricted by law or regulations to determined places in conformity with specific procedures, and any rules relating thereto. 2 - Goods, commodities and products which are sold in tourist establishments to be consumed outside these establishments. 3 - The control of the price of goods, commodities and products manufactured locally as from the date of their exit from the factory. Article 46 All texts contrary to the provisrons of the present decree-law or inconsistent with its purport shall be abrogated, especially those mentioned in Decree-Law No. 189 of 18/6/1942 and its amendments, regarding the possession, trade and prices of goods, and Decree-Law No. 32 of 5/8/1967 organising the fight against hoarding and higher prices. Article 47 The present decree-law shall go into force as from its publication in the Official Gazette. Baabda, 9 September 1983 Signed: Amine Gemayel By the President of the Republic The President of the Council of Ministers Signed: Chafic Wazzan The Minister of Finance Signed: Adel Hamiye The Minister of Justice Signed: Roger Chikhani The Minister of Economy and Commerce Signed: Ibrahim Halawi |
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