This Law shall regulate the conditions and practices of conducting trade.

Under this Law, trade shall refer to the purchase and sale of goods and the rendering of services associated with trade by enterprises, and other legal entities and physical persons registered to perform trade activities (hereinafter: merchants).

Trade may be conducted as wholesale and retail trade on the domestic and foreign markets.

Trade on foreign markets shall be carried out under conditions and practices regulated by a separate law.

Merchants shall engage freely in trade in compliance with this Law and other secondary legislation, observing rules of trade and reliable business practices, according to the principles of loyal competition and in a manner that will not induce harm to consumers.

Under this Law wholesale trade denotes purchase of goods for further sale, remanufacturing or reprocessing.

Under this Law retail trade denotes sale of goods to ultimate consumers.

With the exception of wholesale which is carried out in transit, wholesale and retail trade are carried out on specifically designated premises and areas.

Retail trade may be carried out by mail, door-to-door, through vending machines, at fairs, performances, gatherings, etc., under conditions set by this Law or other regulations.

The Government of the Republic of Macedonia (hereinafter: Government) shall assign the products that may be sold door-to-door and through vending machines.

The Minister of Economy prescribes the manner in which products shall be sold in accordance with paragraph 5 of this article.

Under this Law, trade services entail: agency, brokerage and proxy services, exchange and commission services, storage, dispatching and transportation of goods, quality and quantity control services, insurance of products, advertising services, organization of fairs and commercial exhibitions, services on the wholesale and retail markets and other services common to trade.

Markets rendering wholesale services may serve exclusively for the sale of agricultural products.

Markets rendering retail services may serve exclusively for the sale of agricultural products, milk and dairy products, fish and poultry, medicinal herbs, flowers, haberdashery, costume jewelry, honey and pottery.

Agricultural products shall be sold separately from the other products specified under paragraph 2 of this article.

Milk, dairy products and fish, specified under paragraph 2 of this article shall be sold on particular premises intended solely for the sale of such products.

Used motor vehicles and spare parts shall be sold on specially organized markets which are open once weekly.

Livestock shall be sold on specially organized markets.

Second hand goods may be sold on specially organized markets open once weekly and determined by the authorities of the local self-government.

Merchants organizing markets that render services for wholesale and retail trade are obliged to determine and display a market schedule.

Merchants stipulated under paragraph 1 of this article are obliged to observe the market schedule.

Wholesale markets shall serve solely for the purposes of wholesale trade. Retail markets shall function solely for the purpose of retail trade.

Wholesale and retail trade and rendering of trade services shall be forbidden outside the premises approved for such activities.

For the purpose of trade, merchants are obliged to provide selling areas where wholesale and retail trade may be conducted and which are to meet the prescribed technical, hygienic and sanitary conditions. The selling areas must undergo technical inspection after which permits are issued for their use.

Further to the conditions stipulated under paragraph 1 of this article, merchants must make sure that selling areas meet the conditions prescribed by the Law on Investment in Buildings, on Protection at Work, on Protection and Development of the Environment and on Fire-Prevention and Noise Protection.

The minimal technical conditions are prescribed by the Ministry of Economy.

The hygienic and sanitary conditions are prescribed by the Ministry of Health.

Merchants are obliged to keep records of purchases and sales of goods and of services rendered.

Records of purchases and sales are maintained on the basis of invoices, loading bills and cash-register or computer bills, which contain information on the value of the purchased or sold goods. The value of the sold goods is recorded on the basis of the inventory list at the retail price, with and without sales tax included.

Wholesale merchants are obliged to keep records of purchases and sales of goods in the selling areas.

Records which are maintained by merchants are to be kept on the premises of the selling area and must be accessible to the inspection authorities at all times.

The Minister of Economy in collaboration with the Minister of Finance shall prescribe the form and procedure of maintaining the records specified in this article.

Retail trade shall be carried out within the working hours assigned by the Ministry of Economy.

Merchants engaged in retail trade shall designate their working hours in accordance with the regulation under paragraph 1 of this article and report the hours in the district unit of the Ministry of Economy.

Merchants are obliged to conform to the working hours under paragraph 2 of this article.

Merchants engaged in retail trade are obliged to meet the hygienic, sanitary and health requirements according to law when handing, packing and repacking goods in a manner that will maintain their quality.

Retail merchants are obliged to meet the following requirements within the selling areas:

1) Prices of goods are to visible and they must be observed.

Prices should be indicated in Denars;

2) Reduced (discount) prices must be displayed together with the

regular prices of products or services. Reduced prices must be

realistic.

3) Receipts must be provided for sold goods (invoice, cash

-register bill, etc);

4) Working hours must be displayed on a visible place;

5) Products must be sold under equal conditions to all consumers;

6) Products must be weighed precisely and consumers should be

allowed to examine the purchased quantity;

7) Smaller purchases must be packed appropriately; and

8) Each product must possess appropriate documentation of

identification written in the Cyrillic alphabet of the

Macedonian language (declaration, operation instructions).

Consumers are entitled to claims on goods purchased in selling areas for which receipts have been issued.

Merchants are obliged to either replace goods containing concealed defects with new ones, to return the paid amount to the consumer, or to repair the goods with the approval of the customer.

Consumers may fulfill the right stipulated under paragraph 2 of this article if claims are lodged to merchants upon detection of the defects latest within 3 months from the date of the purchase.

Consumers are denied the right under paragraph 2 of this article in cases when goods are damaged by their own mistake.

Merchants are obliged to acknowledge claims within 15 days upon receipt, and act in compliance with paragraph 2 of this article within a period of 30 days.

Merchants selling defect goods are obliged to assort them separately at a visible place and mark each faulty product.

According to law, merchants are required to display the name of the store at a visible place on the working premises and in the selling areas.

Freedom of the market and entrepreneurship are hindered through activities directed by monopolistic positions and behavior resulting in restrictions of the market, entrepreneurship and of other endeavors.

Under this Law, monopolistic behavior implies conclusion of monopolistic agreements, abuse of the dominant market position and actions aimed at establishing or utilizing the monopolistic position.

Monopolistic agreements refer to agreements entered into by two or more merchants aimed at obliterating or impeding free competition through which one or more merchants are placed in a more privileged position in relation to other merchants, enterprises, legal entities and physical persons conducting trade, or in relation to consumers.

Monopolistic agreements specified under paragraph 1 of this article particularly imply to:

1) Agreements on division of the market in respect to purchase and

sale of goods;

2) Agreements which compel salesmen not to sell certain products to

other customers or necessitate buyers to sell purchased goods on

specific markets and to particular customers;

3) Agreements restricting the extent of production or the

utilization of capacities;

4) Agreements on prices of products and services; and

5) Agreements obligating merchants or buyers to purchase

or sell the same type of goods under the terms set in the

contract.

Monopolistic agreements stipulated under paragraph 2 of this article shall be invalid.

The dominant market position stipulated under article 19 of this Law refers to the position of merchants whose share on the market in the Republic of Macedonia for particular products and services exceeds 40%.

Abuse of a dominant position implies constraint of purchase or sale of products, that is contrary to reliable business practices for the purpose of acquiring property or other benefits.

Actions aimed at establishing or utilizing the monopolistic position, as specified under article 19 of this Law, refer to actions which facilitate material profits and other benefits based on unequal working conditions and misuse of dominance in a manner contrary to reliable business practices.

The actions under paragraph 1 of this article refer to misusage of special advantages when importing goods and increasing import trade costs and costs of retail or wholesale trade for the purpose of gaining unlawful profits.

The Government shall undertake measures against monopolistic positions and market behavior by assigning high prices on particular products and services for manufacture and trade, and by determining protective prices on certain agricultural products.

The measure assigning high prices on particular goods and services may not exceed six months.

The Government shall designate the agricultural products on which protective prices are to be assigned.

The Ministry of Economy shall determine the products and services on which enterprises, legal entities and physical persons are obliged to submit reports for the purpose of guarding prices, and shall define the information to be contained in the price reports and the terms and means of submission.

Government agencies and organs of the local self-government, enterprises, legal entities and physical persons with public entitlements may not undertake actions restricting the market and entrepreneurship.

According to paragraph 1 of this article, actions restricting the market and entrepreneurship shall imply to common and specific activities which restrict trade, market entries and other free competition limitations contrary to the Constitution and Law.

The following actions shall be considered as restrictive to the market and to entrepreneurship:

- preventing enterprises, which fulfill the requirements set by

law, from performing an activity in a particular field or certain

types of activities;

- unjustly detaining the issuance of a working license or other

permits for market participation, for expansion of the sales

network, etc.;

- direct or indirect discrimination of an enterprise depending on

whether the enterprise has a business located on the territory of

the local self-government unit or outside that territory; and

- prohibiting trade outside the territory of the local self

-government unit.

With the exception of article 26 of this Law, the Government may assign measures restricting the market and entrepreneurship in the following cases:

1) When goods, raw and reproduction materials of strategic

importance must be obtained for defense purposes including the

manufacturing of weapons and military supplies for the needs of

the armed forces, and other products of special importance to

defense;

2) Due to natural disasters, epidemics and similar incidents,

causing disturbances on the market, in the supply of the

population or in other areas of the economy, which present a

threat to nature, to the living environment and to the health

of the population; and

3) Due to major disruptions in the supply of the market which may

cause shortages of goods essential for the preservation of

nature, the environment and the health of the population.

The following measures may be assigned restricting the market and entrepreneurship:

1) Prohibiting trade with particular products, including export

and import of those goods, restricting trade in terms of

quantity, quality and other aspects of the products, or

imposing special trade requirements on certain products

(purchase by way of permits or other documents);

2) Prohibiting trade of particular products on enterprises, legal

entities and physical persons from certain professions;

3) Prohibiting wholesale trade of particular goods between the

producer or importer and the enterprise, legal entity or

physical person engaged in retail trade of the respective goods

and forbidding more than one dealer in such transactions;

4) Prohibiting use of particular products in the production of

other specific products;

5) Imposing an obligation on particular enterprises, legal

entities or physical persons from certain professions to

either restrict trade to specific types and quantities of

goods, to place the goods at the disposal of particular

consumers or to deliver goods to certain consumers according to

a set schedule;

6) Imposing an obligation on particular enterprises, legal

entities or physical persons from certain professions to

accumulate and hold reserves of certain types and quantities of

goods;

7) Imposing an obligation on particular enterprises, legal

entities or physical persons from certain professions to

transport merchandise, other goods and passengers; and

8) Imposing an obligation on particular enterprises, legal

entities or physical persons from certain professions to

store certain products in their warehouses and to perform the

loading and unloading of those goods.

The measures specified under article 28 of this Law may not be in effect longer than one year.

Should damages be induced on one or more enterprise, legal entity or physical person due to the measures stipulated under article 28 of this Law, the Government shall provide compensation for the respective damages.

Unfair competition and dumping of prices shall be considered as activities causing disturbances on the market and to entrepreneurship.

Unfair competition is an activity undertaken by merchants that is contrary to good business practices, and may cause damages to other merchants, legal entities or physical persons engaged in trade or to the consumer.

Unfair competition under paragraph 1 of this article particularly implies to:

1) Advertising, announcing or offering products by presenting

information or using phrases which create or may create

disorder on the market and place a particular merchant in a

more advantageous position (false advertising);

2) Releasing information on other merchants which may be harmful

to their reputation or business;

3) Selling products with brands or information which cause or may

cause confusion in terms of origin, production, quantity,

quality or other properties of the goods;

4) Concealing the defects of the products or misleading consumers

in respect to the origin, the producer, the production process,

quantity, quality and other properties of the goods;

5) Undertaking actions aimed at discontinuing business relations

among other merchants, or preventing and hindering the

establishment of such business relations;

6) Announcing sales or price discounts under pretense, or

performing similar actions which may mislead consumers in

respect to prices;

7) Unauthorized usage of names, brands, trademarks, symbols or

other features belonging to others, which may create confusion

and inflict damages to other merchants;

8) Permitting other merchants the use of brands, trade marks or

symbols which create or may create disorder on the market;

9) Providing or promising gifts, property or benefits to other

merchants, to their employees or associates for the purpose of

gaining privileges to the detriment of others;

10) Unauthorized utilization of the services of traveling salesmen,

trade representatives or agents of other enterprises;

11) Actions arousing anticipation or persuasion among consumers

that a product, service or other benefit may be acquired by

chance and free of charge (with the exception of legitimate

lotteries);

12) Provoking disorder on the market and its supply by hiding

products, restricting and stopping sales of goods, and through

other activities which prompt market deficit; and

13) Constraining the purchase of one product with another, or

through other demands imposed on purchases and sales of goods.

Further to the actions stipulated under article 32 of this Law, the following shall also be considered unfair competition:

1) Violation of legal provisions and regulations, regardless of

their objectives and intentions, particularly in cases when

merchants violate regulations in the field of trade,

accounting, banking, employment, health, pension and invalid

insurance, taxation, prices, working hours and other areas, by

which other merchants are placed in positions of unequal

competitiveness;

2) Actions contrary to loyal and honest trade and business

practices, through which merchants inflict damages or may

impair the interests of one or more consumers.

Merchants and consumers may lodge a complaint to the Ministry of Economy for actions stipulated under items 1 and 2 of this article.

The Government shall undertake appropriate protective measures against dumping prices and determine their duration.

The Ministry of Economy shall establish a committee for the protection against monopolistic market behavior and illegal actions causing restrictions and disturbances on the market and to entrepreneurship (hereinafter: Committee).

The Committee shall monitor occurrences of monopolistic market behavior, the abuse of dominant market positions, illegal actions restricting the market and entrepreneurship, unfair competition and other activities which cause disturbances on the market and to entrepreneurship.

The Committee under article 35 of this Law is comprised of representatives of the administrative organs, and of prominent businessmen and experts.

The Minister of Economy shall assign the number and the composition of the Committee and appoint its president and members.

The Minister of Economy shall determine the procedures and the day-to-day operations of the Committee.

Legal entities, physical persons, chambers of commerce, state bodies, local government bodies, consumers and other interested parties may launch an initiative to examine actions of monopolistic market behavior, abuse of dominant market positions, illegal actions restricting the market and entrepreneurship, unfair competition and other activities which cause disturbances on the market and to entrepreneurship.

Should the Committee have reason to suspect actions of monopolistic market behavior, abuse of dominant market positions, illegal actions restricting the market and entrepreneurship, unfair competition and other activities causing disturbances on the market and to entrepreneurship, the Committee may request that merchants present the necessary documents in order to determine the existence of such actions.

In cases when the Committee detects actions specified under paragraph 1 of this article, it shall notify the Minister of Economy, who is to undertake further appropriate measures.

The implementation of this Law shall be supervised by the authorized inspection organs.

Should the prescribed minimal technical, hygienic and sanitary requirements, not be observed during trade and rendering of trade services, the inspector shall pass a decision prohibiting operations until the fulfillment of those requirements.

An appeal may be lodged to the competent Ministry against the decision specified under paragraph 1 of this article.

The lodged appeal against the decision specified under paragraph 1 of this article shall not defer its enforcement.

Should merchants engage in unregistered trade and other trade services, or perform activities which have not been registered outside the licensed premises, the market inspector shall pass a decision prohibiting the performance of that activity.

An appeal may be lodged to the Ministry of Economy against the decision specified under paragraph 1 of this article.

The lodged appeal against the decision specified under paragraph 1 of this article shall not defer its enforcement.

In instances specified under paragraph 1 of this article, the market inspector shall confiscate the merchandise temporarily until the passing of a decision by the competent court.

The market inspector shall issue a certificate for confiscated merchandise as specified under paragraph 4 of this article.

The market inspector shall undertake measures to sell merchandise prone to spoilage and transfer the obtained funds to the State budget account.

Should merchants without justified reason refuse to replace damaged merchandise at the demand of the consumer, should they fail to refund the paid amount to the consumer, or refuse to remove damages with the approval of the consumer, the market inspector shall pass a decision ordering merchants to fulfill the consumer's basic demand.

If records maintained by merchants, as specified under article 11 of this Law, are not accessible in the selling area at all times, the market inspector shall prohibit all operations until records are made available for inspection.

An appeal may be lodged to the Ministry of Economy against the decision specified under paragraph 1 of this article.

The lodged appeal against the decision specified under paragraph 1 of this article shall not defer its enforcement.

Should merchants fail to keep records or to keep orderly records of all purchases and sales as specified under article 11 of this Law, the market inspector shall pass a decision prohibiting all operations for a period of three months.

Legal protection against actions of monopolistic behavior and disloyal competition may be acquired by way of filing a complaint through proceedings.

Complaints specified under paragraph 1 of this article may be filed by merchants suffering damages, by chambers and other trade associations, by consumers and other interested organs and organizations.

Urgent proceedings shall be initiated following the complaint specified under paragraph 2 of this article.

The right to file a complaint pursuant to article 44 of this Law shall become obsolete in one year from the date the plaintiff has been notified of the offense and the perpetrator, and may not exceed three years from the committal date of the offense.

Enterprises and other legal entities shall be charged with commercial offenses and fined between 50 and 150 salaries in the following instances:

1) For conducting unregistered trade (article 2, paragraph 1);

2) For conducting wholesale trade on retail markets or retail

trade on wholesale markets (article 8);

3) For not maintaining records of purchases and sales of goods,

and of services rendered (article 11);

4) For operations which pursuant to this Law represent

monopolistic agreements (article 20);

5) For operations which pursuant to this Law represent abuse of a

dominant position (article 22);

6) For performing actions aimed at establishing or making use of

monopolistic positions (article 23);

7) For not complying with measures aimed at assigning high prices

on particular products and services (article 24); and

8) For operations which are considered acts of disloyal

competition (articles 32 and 33).

Further to the fine for offenses specified under paragraph 1 of this article, a protective measure shall be imposed by confiscating unlawfully acquired property and prohibiting operations within a period from two to five years.

Further to the protective measures specified under paragraph 2 of this article, a protective measure shall be imposed for activities referred to in paragraph 1, items 1, 2 and 3 by confiscating temporarily expropriated merchandise pursuant to article 40 paragraph 4 of this Law.

Responsible individuals in enterprises and other legal entities shall be charged with commercial offenses and fined between five and ten salaries for actions stipulated under paragraph 1 of this article, and prohibited from performing responsible duties within a period from one to three years.

Enterprises and other legal entities shall be charged with commercial offenses and fined between 50 and 130 salaries for failing to observe measures imposed for:

1) Releasing certain types and quantities of products on the

market, or placing products at the disposal of particular

consumers, or delivering products to certain consumers according

to a set schedule (article 28, item 5);

2) Accumulating and holding reserves of certain types and

quantities of goods; (article 28, item 6);

3) Transporting merchandise, other goods and passengers (article 28,

item 7); and

4) Storing certain merchandise in their warehouses and loading and

unloading particular merchandise (article 28, item 8).

Further to the fine for offenses specified under paragraph 1 of this article, a protective measure shall be imposed on enterprises and other legal entities prohibiting operations within a period from one to three years.

Responsible individuals in enterprises and other legal entities shall be charged with commercial offenses and fined between five and ten salaries for actions stipulated under paragraph 1 of this article, and prohibited from performing responsible duties within a period from one to three years.

Enterprises and other legal entities shall be charged with commercial offenses and fined between 50 and 120 salaries for failing to observe measures imposed to prevent:

1) Trade with particular products, including export and import of

those products, restricting trade in terms of quantity, quality

and other aspects of the products, or introducing special trade

requirements on certain products (article 28, item, 1);

2) Trade with particular products (article 28, item 2);

3) Wholesale trade of particular goods between producers or

importers and enterprises engaged in retail trade of the

respective goods, and forbidding more than one dealer in such

transactions (article 28, item 3); and

4) The use of particular products in the production of

other specific products (article 28, item 4);

Further to the fine for offenses specified under paragraph 1 of this article, a protective measure shall be imposed prohibiting operations for a period between one and three years.

Responsible individuals in enterprises and other legal entities shall be charged with commercial offenses and fined between five and ten salaries for actions stipulated under paragraph 1 of this article, and prohibited from performing responsible duties within a period from one to three years.

Enterprises and other legal entities shall be fined between four and twenty salaries for the following violations:

1) Selling products under conditions contrary to the provisions

specified in article 4, paragraphs 5 and 6 of this Law;

2) Trading products on markets or facilitating trade of products

that have not been listed in article 6 of this Law;

3) Failing to determine and display a market schedule (article 7,

paragraph 1);

4) Failing to observe the market schedule (article 7, paragraph 2);

5) Performing wholesale and retail trade, and rendering trade

services outside the premises approved for such activities

(article 9);

6) Failing to provide the minimal technical, hygienic, sanitary

and remaining conditions prescribed by Law and other

regulations (article 10);

7) Failing to report the working hours in compliance with article

12, paragraph 2 of this Law;

8) Failing to comply with the working hours (article 12, paragraph 3);

9) Failing to provide the hygienic, sanitary and health

requirements, or packing and repacking goods in a way that

will prevent the maintenance of their quality (article 13);

10) Failing to visibly display prices of goods, not observing

prices, and not indicating prices in Denars (article 14,

item 1);

11) Failing to display reduced (discount) prices together with the

regular prices of products or services, and offering

unreasonable discount prices (article 14, paragraph 1, item 2);

12) Failing to provided receipts for sold goods (article 14, item 3);

13) Failing to display working hours at a visible place (article 14,

item 4);

14) Not selling products under equal conditions to all consumers

(article 14, item 5);

15) Not weighing products accurately, and not allowing consumers

to examine the purchased quantity (article 14, item 6);

16) Failing to use appropriate packaging for smaller purchases

(article 14, item 7);

17) Failing to provide appropriate documentation for

identification of each product written in the Cyrillic

alphabet of the Macedonian language (declaration, operation

instructions, etc.) (article 14, paragraph 1, item 8);

18) Not assorting defect merchandise separately at a visible

location and marking each defective product (article 16);

19) Failing to display the name of the establishment in compliance

with article 17 of this Law; and

20) Failing to submit information on prices or submitting

incorrect information to the Ministry of Economy (article 25).

A protective measure shall be pronounced by confiscating merchandise for violations specified under paragraph 1 item 16.

Responsible individuals in enterprises and other legal entities shall be charged with violations and fined from one fifth to three salaries for actions stipulated under paragraph 1 of this article, and prohibited from performing responsible duties between three months and one year.

Violations specified under paragraph 1 of this article from items 1-19, may be fined on site by market inspectors in the amount of two salaries for individuals in charge of the establishment and half a salary for other legal entities.

Physical persons engaged in trade activities specified under article 46 paragraph 1, article 47 paragraph 1, and article 49 paragraph 1 of this Law, shall be fined for violations between one fifth and three salaries.

Further to the fine for offenses specified under paragraph 1 of this article, a protective measure shall be imposed on physical persons engaged in trade prohibiting operations from three months to one year and confiscating acquired possessions.

Physical persons engaged in trade activities specified under article 48 of this Law shall be fined for violations between one fifth and three salaries.

Further to the fine for offenses specified under paragraph 1 of this article, a protective measure shall be imposed on physical persons engaged in trade prohibiting operations between two and six months.

Physical persons engaged in trading activities specified under article 49 of this Law, may be fined on site by market inspectors in the amount of one fifth of a salary.

Parents or guardians shall be fined from one tenth to one half of a salary for actions committed by minors specified under article 46, paragraph 1, item 1.

Merchants are obliged to adjust their work with the provisions of this Law within three months from the date of its enforcement.

Regulations specified under articles 4, 10 and 11 of this Law shall be enacted within six months from the date this Law enters force.

The Ministry of Economy shall assign the working hours indicated under article 12 of this Law within one month from the date of its enforcement.

Until the enactment of the regulations indicated under paragraphs 1 and 2 of this article, the current regulations shall be applied and will be effective until the date this Law enters into force.

On the date this Law enters into force the following laws shall no longer be effective: Law on Trade (Official Gazette of SFRJ No. 46/90 and Official Gazette of the Republic of Macedonia No. 13/93), Law on Measures Limiting the Market and Free Flow of Goods and Services of Overall Interest to the Country (Official Gazette of SFRJ No. 28/75), Law on Public Control of Prices (Official Gazette of SFRJ No. 84/89 and Official Gazette of the Republic of Macedonia No. 13/93), Law on Turn-over of Goods (Official Gazette of SRM No. 10/90, 30/90 and Official Gazette of the Republic of Macedonia No. 13/93), and Law on Public Control of Prices (Official Gazette of SRM No. 20/90 and Official Gazette of the Republic of Macedonia No. 13/93).

This Law shall enter into force on the eighth day from the date of publication in the Official Gazette of the Republic of Macedonia.