info@ooyes.net (Web Design and Outsourcing) Content Menagement System Ooyes CMS (http://www.ooyes.net) http://www.rssboard.org/rss-specification Thu, 09 Apr 2026 10:31:47 +0000 61 info@solicitorbulgaria.com (SolicitorBulgaria) Copyright Solicitorbulgaria.com - SOLICITOR LTD Legal articles and news about Bulgarian Law and Business - Legislation articles http://web.solicitorbulgaria.com/index.php info@solicitorbulgaria.com (SolicitorBulgaria) Chapter Twenty-NineTAXABLE AMOUNTTaxable Amount for Tax on Entertainment ExpensesArticle 211. The taxable amount for assessment of the tax on expenses referred to in Item 1 of Article 204 herein shall be the expenses charged for the relevant month.Taxable Amount for Tax on Fringe Benefit Expenses Provided in KindArticle 212. The taxable amount for assessment of the tax on expenses referred to in Item 2 of Article 204 herein shall be the expenses on fringe benefits provided in kind debited with the income related to the said expenses for the relevant month.Taxable Amount for Tax on Fringe Benefit Expenses on Contributions(Premiums) for Supplementary Social Insurance and Life AssuranceArticle 213. (1) The taxable amount for assessment of the tax on expenses referred to in Item 2 (a) of Article 204 herein shall be the excess of the said expenses over BGN 60 per month per hired person.(2) Where the taxable persons incur any coercively enforceable public obligations at the time of charging… For more information visit http://www.solicitorbulgaria.com id: 332 Chapter Twenty-NineTAXABLE AMOUNTTaxable Amount for Tax on Entertainment ExpensesArticle 211. The taxable amount for assessment of the tax on expenses referred to in Item 1 of Article 204 herein shall be the expenses charged for the relevant month.Taxable Amount for Tax on Fringe Benefit Expenses Provided in KindArticle 212. The taxable amount for assessment of the tax on expenses referred to in Item 2 of Article 204 herein shall be the expenses on fringe benefits provided in kind debited with the income related to the said expenses for the relevant month.Taxable Amount for Tax on Fringe Benefit Expenses on Contributions(Premiums) for Supplementary Social Insurance and Life AssuranceArticle 213. (1) The taxable amount for assessment of the tax on expenses referred to in Item 2 (a) of Article 204 herein shall be the excess of the said expenses over BGN 60 per month per hired person.(2) Where the taxable persons incur any coercively enforceable public obligations at the time of charging of the expenses, the taxable amount for assessment of the tax on expenses shall be the full amount of the expenses charged.Taxable Amount for Tax on Fringe Benefit Expenses on Food VouchersArticle 214. (1) The taxable amount for assessment of the tax on expenses referred to in Item 2 (b) of Article 204 herein shall be the excess of the said expenses over BGN 40 per month per hired person.(2) Where the conditions for exemptions from tax under Article 209 herein are not fulfilled, the taxable amount for assessment of the tax on expenses shall be the full amount of the expenses charged.Taxable Amount for Tax on Expenses Related to Maintenance, Repair andOperation of Means of TransportArticle 215. (1) The taxable amount for assessment of the tax on expenses referred to in Item 3 of Article 204 herein shall be the expenses on maintenance, repair and operation of means of transport, charged during the calendar month, debited with the income charged from insurance benefits associated with the means of transport, up to the amount of the expenses on repair incurred whereto the benefit applies.(2) Where means of transport are used concurrently to carry out activity as a regular business and to service management operations, upon determination of the taxable amount referred to in Paragraph (1):1. the expenses on operation shall relate to the management operations on the basis of the total kilometres covered for the said operations during the current month;2. the expenses on maintenance and repair shall relate to the management operations on the basis of the kilometres covered for the said operations in relation to the total kilometres covered by the relevant means of transport during the last preceding twelve months, including the current month.(3) Where the taxable amount referred to in Paragraph (1) is a negative quantity, it shall be deducted successively from the taxable amount for the succeeding months.Chapter Thirty(Heading amended, SG No. 110/2007, effective 1.01.2007) RATE OF TAX, DECLARING AND REMITTANCE OF TAX ON EXPENSESRate of TaxArticle 216. The rate of the tax on expenses referred to in Article 204 herein shall be 10 per cent.Tax Declaring and Remittance(Heading amended, SG No. 110/2007, effective 1.01.2007) Article 217. (1) (New, SG No. 110/2007, effective 1.01.2007) The tax on expenses shall be declared by the annual tax return submitted by the taxable person.(2) (Redesignated from Article 217, SG No. 110/2007, effective 1.01.2007) The tax on expenses shall be remitted on or before the 15th day of the month next succeeding the month in which the expense was charged. Where the taxable person has overremitted any tax on expenses or any corporation tax, the said tax may be deducted from the tax on expenses due.PART FIVEALTERNATIVE TAXESChapter Thirty-OneGENERAL DISPOSITIONSAlternative TaxArticle 218. (1) The taxable persons specified in this Part shall be liable, instead of corporation tax, to an alternative tax in respect of the activities specified in this Part.(2) In respect of all other activities, the persons referred to in Paragraph (1) shall be liable to corporation tax, with the exception of public-finance enterprises.Chapter Thirty-TwoTAX ON GAMBLING ACTIVITYSection IGeneral DispositionsRecord-keepingArticle 219. (1) The taxable persons under this Chapter shall be obligated to keep daily and monthly records of the amounts received and paid for participation in the games of chance in standard forms as endorsed by the Minister of Finance.(2) Paragraph (1) shall not apply:1. to the gambling activity specified in Section V herein;2. to any games of chance where the value of the bet consists in an increased charge for a telephone or another telecommunication link;3. where a computer system has been provided for monitoring the drawings and the proceeds in the conduct of the games, as well as for control on the formation and distribution of profits, ensuring the transmission of the requisite data to the National Revenue Agency.(3) The tax on the ancillary and auxiliary activities, within the meaning given by the Gambling Act , shall be declared by an annual tax return in a standard form, which shall be submitted not later than the 31st day of March of the next succeeding year to the National Revenue Agency territorial directorate exercising competence over the place of registration of the taxable person.Section IITax on Gambling Activities of Toto and Lotto, Betting on Outcome ofSports Competition and Uncertain EventsGeneral DispositionsArticle 220. The gambling activities of toto and lotto, betting on the outcome of a sports competition and uncertain events shall attract a tax on gambling activity which shall be final.Taxable PersonsArticle 221. Taxable persons under this Section shall be the organizers of the games of chance of toto and lotto, betting on the outcome of a sports competition and uncertain events.Taxable AmountArticle 222. The taxable amount for assessment of the tax on gambling activity under this Section shall be the value of the bets taken for each game.Rate of TaxArticle 223. The rate of tax on gambling activity under this Section shall be 10 per cent.Declaring of TaxArticle 224. The tax on gambling activity under this Section shall be declared prior to determining the results of each game by means of a tax return in a standard form.Tax RemittanceArticle 225. The tax on gambling activity under this Section shall be remitted:1. in respect of games conducted daily: within three business days after determining the results for the last preceding seven calendar days;2. in respect of games conducted over a period not exceeding seven days: within three business days after determining the results but before determining the results of the next succeeding game;3. in respect of games conducted over a longer period: within seven days after determining the results.Income from Ancillary and Auxiliary ActivitiesArticle 226. (1) Any income accruing from ancillary and auxiliary activities within the meaning given by the Gambling Act shall attract an alternative tax on the value of the said income at the rate of 10 per cent.(2) The tax shall be remitted on or before the 15th day of the month next succeeding the month of charging of the income referred to in Paragraph (1).Section IIITax on Gambling Activity of Lotteries, Raffles and Bingo and KenoNumbers LotteriesGeneral DispositionsArticle 227. The gambling activity of lotteries, raffles and bingo and keno numbers lotteries shall attract a tax on gambling activity which shall be final.Taxable PersonsArticle 228. Taxable persons under this Section shall be the organizers of the games of chance: lotteries, raffles, and bingo and keno numbers lotteries.Taxable AmountArticle 229. The taxable amount for assessment of the tax on gambling activity under this Section shall be the nominal value of the bet as specified in coupons, cards, tickets or other tokens certifying participation.Rate of TaxArticle 230. The rate of tax on gambling activity under this Section shall be 12 per cent.Declaring of TaxArticle 231. The tax on gambling activity under this Section shall be declared monthly, on or before the 10th day of the next succeeding month, by means of a return in a standard form.Tax RemittanceArticle 232. (1) The tax on gambling activity under this Section shall be remitted prior to receiving the tokens certifying participation or to effecting the importation of any such tokens.(2) The enterprises designated by the Minister of Finance or by another authority specified by a law, which print tokens certifying participation or which effect the importation thereof, shall provide the tokens certifying participation solely upon presentation of documents on tax paid.Refund of TaxArticle 233. (1) Any tax paid on any unused tokens shall be refunded by the National Revenue Agency territorial directorate exercising competence over the place of registration of the person:1. after completion of each stage (drawing) of the periodic lottery games, or2. when the activity of the organizer has been discontinued in pursuance of Article 81 (2) of the Gambling Act.(2) The unused tokens certifying participation, as well as the decision on discontinuance of the activity in the cases referred to in Item 2 of Paragraph (1), shall be attached to the claim for refund under the Tax and Social-Insurance Procedure Code.Income from Ancillary and Auxiliary ActivitiesArticle 234. (1) Any income accruing from ancillary and auxiliary activities within the meaning given by the Gambling Act shall attract an alternative tax on the value of the said income at the rate of 12 per cent.(2) The tax shall be remitted on or before the 15th day of the month next succeeding the month of charging of the income referred to in Paragraph (1).Section IVTax on Gambling Activity of Games where Value of Bet Consists inIncreased Charge for Telephone or Another Telecommunication LinkGeneral DispositionsArticle 235. The gambling activity of games where the value of the bet consists in an increased charge for a telephone or another telecommunication link shall attract a tax on gambling activity which shall be final.Taxable PersonsArticle 236. Taxable persons according to the procedure established by this Section shall be the organizers of the games of chance where the value of the bet consists in an increased charge for a telephone or another telecommunication link.Taxable AmountArticle 237. The taxable amount for assessment of the tax under this Section shall be the increase in the charge for the telephone or telecommunication link.Rate of TaxArticle 238. The rate of tax under this Section shall be 12 per cent.Declaring of Bets Made and of TaxArticle 239. (1) The organizer of the game of chance shall declare the bets made and the tax under this Section to the National Revenue Agency territorial directorate exercising competence over the place of registration of the said organizer on or before the 20th day of the month next succeeding the month of conduct of the games, by means of a return in a standard form.(2) The telephone or telecommunication network operator shall declare the bets made and the tax under this Section to the National Revenue Agency territorial directorate exercising competence over the place of registration of the said operator on or before the 20th day of the month next succeeding the month of conduct of the games, by means of a return in a standard form.Tax RemittanceArticle 240. (1) The tax on gambling activity under this Section shall be withheld and remitted by the licensed telephone or telecommunication network operator on or before the 20th day of the month next succeeding the month of conduct of the games.(2) The telephone or telecommunication network operator shall be obligated to satisfy itself that the organizer of the game of chance has obtained authorization from the State Commission on Gambling and to present to the National Revenue Agency territorial directorate the contract where under the said operator takes the bets, incorporating a clause on the increase in the charge for the telephone or telecommunication link.Income from Ancillary and Auxiliary ActivitiesArticle 241. (1) Any income accruing from ancillary and auxiliary activities within the meaning given by the Gambling Act shall attract an alternative tax on the value of the said income at the rate of 12 per cent.(2) The tax shall be remitted on or before the 15th day of the month next succeeding the month of charging of the income referred to in Paragraph (1).Section VTax on Gambling Activity Using Gambling DevicesGeneral DispositionsArticle 242. The gambling activity using gambling slot-machines, devices for betting on the results of horse or dog races, roulettes and other gambling devices in a gambling casino, shall attract a tax on gambling activity which shall be final.Taxable PersonsArticle 243. Taxable persons under this Section shall be the organizers of games of chance played on gambling slot-machines, devices for betting on the results of horse or dog races, roulettes and other gambling devices in a gambling casino.Tax AssessmentArticle 244. The tax under this Section shall be assessed in respect of the devices entered in the authorization and operated:1. gambling slot-machines, respectively each player's place at such machines;2. devices for betting on the results of horse or dog races;3. roulettes at a casino, gambling tables and in respect of other gambling devices at a casino.Amount of TaxArticle 245. (1) The amounts of the tax on gambling activity under this Section are set as follows:1. in respect of a gambling slot-machine, respectively, each players' place at such a machine: BGN 300 per quarter;2. in respect of a facility for betting on the results of horse or dog races: BGN 300 per quarter for each device;3. in respect of roulette at a casino per gambling table: BGN 18,000 per quarter for each device;4. in respect of any other gambling device at a casino: BGN 3,000 per quarter for each device.(2) No tax shall be due for the quarters prior to the grant and after the withdrawal of the authorization to organize games of chance played on the relevant device.(3) The tax shall be due in full amount for the quarter in which the authorization to organize games of chance played on the relevant device is granted or withdrawn.Declaring of TaxArticle 246. The organizer of a game of chance shall declare the tax under this Section to the National Revenue Agency territorial directorate exercising competence over the place of registration of the said organizer on or before the 15th day of the month next succeeding the quarter.Tax RemittanceArticle 247. (1) The tax under this Section shall be remitted within the time limits for declaring of the said tax.(2) The tax shall be remitted in respect of each gambling establishment by a separate payment order, wherein the location and address of the said establishment shall be stated.(3) The persons under this Section shall transmit a copy of the payment order to the National Revenue Agency territorial directorate exercising competence over the location of the gambling hall, the betting establishment or the casino and to the gambling control authority.Chapter Thirty-ThreeTAX ON PUBLIC-FINANCED ENTERPRISE' INCOMEGeneral DispositionsArticle 248. Any income accruing to any public-financed enterprise from any transactions covered under Article 1 of the Commerce Act, as well as from rent of movable and immovable property, shall attract a tax on income according to the procedure established by this Chapter.Taxable AmountArticle 249. (1) The taxable amount for assessment of the tax on income shall be monthly and annual.(2) The monthly taxable amount shall be the income accruing to the public-financed enterprise from any transactions covered under Article 1 of the Commerce Act, as well as from rent or movable and immovable property, charged during the relevant month.(3) The annual taxable amount shall be the income accruing to the public-financed enterprise from any transactions covered under Article 1 of the Commerce Act, as well as from rent or movable and immovable property, charged during the relevant year.Rates of TaxArticle 250. (1) The rate of tax on income shall be 3 per cent.(2) The rate of tax on income accruing to the municipalities shall be 2 per cent.Tax RetentionArticle 251. (1) Any public-financed scientific research enterprise, public higher school, state-owned and municipal school included in the system of public education shall be allowed to retain 50 per cent of the tax on income due there from in respect of the economic activity thereof as is directly related or auxiliary to the implementation of the core activity thereof.(2) The tax so retained shall be shown as a written-off obligation to the State.Declaring of TaxArticle 252. Any public-financed enterprises subject to levy of a tax on income for the relevant year shall submit an annual tax return in a standard form on or before the 31st day of March of the next succeeding year.Tax RemittanceArticle 253. (1) The tax on income, as assessed on the monthly taxable amount, shall be remitted by public-financed enterprises on or before the 15th day of the month next succeeding the month of charging of the income.(2) Where the sum total of the monthly taxable amounts for the year is less than the annual taxable amount, the tax due shall be remitted on or before the 31st day of March of the next succeeding year.(3) Where the sum total of the monthly taxable amounts for the year is greater than the annual taxable amount, the overremitted tax may be deducted from the taxes on income due after submission of the annual tax return.Chapter Thirty-FourTAX ON VESSELS OPERATION ACTIVITYGeneral DispositionsArticle 254. (1) The taxable persons, specified in this Chapter, may elect that the vessels operation activity thereof attract a tax on vessels operations activity.(2) The tax referred to in Paragraph (1) shall be levied on the taxable persons which have elected to be liable for the said tax for a period not exceeding five years.Taxable PersonsArticle 255. Taxable persons according to the procedure established by this Chapter shall be the persons carrying out maritime merchant shipping which simultaneously fulfil the following conditions:1. they are corporations registered under the Commerce Act, or permanent establishments of a corporation which is resident for tax purposes in another Member State of the European Community, or a Member State of the European Economic Area, according to the relevant tax legislation and by virtue of a convention for the avoidance of double taxation with a third State is not considered to be resident for tax purposes in another State outside the European Community or the European Economic Area;2. they operate their own vessels or chartered vessels, or manage vessels under a contract of management, as well as charter vessels;3. they do not refuse to train apprentices on board the vessels, with the exception of the cases where the number of apprentices exceeds one per fifteen officer members of the ship's complement;4. they man the vessel with Bulgarian citizens or with nationals of other Member States of the European Community or of the European Economic Area;5. vessels flying the Bulgarian flag or a flag of another Member State of the European Community or of the European Economic Area account for at least 60 per cent of the net tonnage of the vessels operated.Restrictions on Scope of TaxArticle 256. The taxable persons shall not have the right to apply the procedure for taxation under this Chapter in respect of:1. any seagoing vessels of a net tonnage under 100 tons;2. any fishing vessels;3. any pleasure vessels, with the exception of passenger vessels;4. any vessels which the taxable persons have provided for management or under a bareboat charter, with the exception of the cases where any such vessels have been provided to the State;5. any rigs for extraction of subsurface resources, any oil production platforms, and any vessels engaged in dredging operations and in tugging and towage operations.Taxable AmountArticle 257. (1) The taxable amount per vessel per day of service shall be determined as follows:1. in respect of any vessel of a net tonnage of up to 1,000 tons inclusive: BGN 3.50 for each 100 tons or fraction;2. in respect of any vessel of a net tonnage from 1,001 up to 10,000 tons inclusive: BGN 35 plus BGN 3.00 for each 100 tons or fraction;3. in respect of any vessel of a net tonnage from 10,001 up to 25,000 tons inclusive: BGN 305 plus BGN 2.50 for each 100 tons or fraction above 10,000 tons;4. in respect of any vessel of a net tonnage in excess of 25,001 tons: BGN 680 plus BGN 1 for each 100 tons or fraction above 25,000 tons.(2) The taxable amount per ship for a calendar month shall be determined by multiplying the taxable amount for the relevant vessel per day of service, as determined according to the procedure established by Paragraph (1), by the days of service of the relevant vessel during the calendar month.(3) The taxable amount for assessment of the tax under this Chapter shall be the sum total of the taxable amounts determined for each vessels according to the procedure established by Paragraph (2).Rate of TaxArticle 258. The rate of tax under this Chapter shall be 10 per cent.Declaring of TaxArticle 259. (1) The taxable persons shall exercise the right of choice thereof to levy of a tax under this Chapter by means of submission of a declaration in a standard form on or before the 31st day of December of the last preceding year.(2) The taxable persons shall submit an annual tax return in a standard form on the tax due under this Chapter on or before the 31st day of March of the next succeeding year.Tax RemittanceArticle 260. The taxable persons shall remit the tax due under this Chapter monthly, not later than at the end of the next succeeding month.PART SIXADMINISTRATIVE PENALTY PROVISIONSChapter Thirty-FiveADMINISTRATIVE VIOLATIONS AND SANCTIONSArticle 261. (1) Any taxable person, which fails to submit a tax return under this Act, which fails to submit any such return when due, or which fails to state or misstates any particulars or circumstances leading to underassessment of the tax due or to undue reduction, retention of or exemption from tax, shall be liable to a pecuniary penalty of BGN 500 or exceeding this amount but not exceeding BGN 3,000.(2) Any repeated violation under Paragraph (1) shall be punishable by a pecuniary penalty of BGN 1,000 or exceeding this amount but not exceeding BGN 6,000.Article 262. (1) Any taxable person, which fails to submit any supplement to the annual tax return or which states any untrue particulars or circumstances in any such supplement, shall be liable to a pecuniary penalty of BGN 100 or exceeding this amount but not exceeding BGN 1,000.(2) Any repeated violation under Paragraph (1) shall be punishable by a pecuniary penalty of BGN 200 or exceeding this amount but not exceeding BGN 2,000.Article 263. (1) Any taxable person, which accounts for any business transaction in breach of the accounting policies thereof and this leads to a misdetermination of the accounting financial result of the said person, shall be liable to a pecuniary penalty of BGN 100 or exceeding this amount but not exceeding BGN 1,000 for each such breach.(2) Any repeated violation under Paragraph (1) shall be punishable by a pecuniary penalty of BGN 200 or exceeding this amount but not exceeding BGN 2,000.Article 264. (1) Any managing director, liquidator or trustee in bankruptcy, or holder of the position of liquidator or trustee in bankruptcy, who by any act or omission has committed any violation specified in Articles 261, 262 or 263 herein, shall be liable to a pecuniary penalty or a fine of BGN 200 or exceeding this amount but not exceeding BGN 1,000.(2) Any repeated violation under Paragraph (1) shall be punishable by a pecuniary penalty or a fine of BGN 400 or exceeding this amount but not exceeding BGN 2,000.Article 265. (Amended, SG No. 110/2007) Any taxable person, who or which fails to issue an accounting source document for the accounting for income, shall be liable to the sanction under Article 182 of the Value Added Tax Act unless subject to a severer sanction.Article 266. (Amended, SG No. 110/2007) Any taxable person, who or which fails to fulfil the obligation thereof under Article 10 (4) herein, shall be liable to the sanction under Article 185 of the Value Added Tax Act. Article 267. (Amended, SG No. 110/2007) Any taxable person, who effects a hidden profit distribution, shall be liable to a pecuniary penalty to the amount of 20 per cent of the expense charged constituting a hidden profit distribution.Article 268. (1) Any organizer of games of chance, which fails to fulfil the obligation thereof to keep daily and monthly records under Article 219 herein, shall be liable to a pecuniary penalty of BGN 2,000 or exceeding this amount but not exceeding BGN 10,000.(2) Any repeated violation under Paragraph (1) shall be punishable by a pecuniary penalty of BGN 4,000 or exceeding this amount but not exceeding BGN 20,000.Article 269. (1) Any enterprise referred to in Article 232 herein, printing tokens certifying participation or importing such tokens, which provides the tokens certifying participation without presentation thereto of the documents on the tax paid, shall be liable to a pecuniary penalty equivalent to the unremitted tax.(2) Any repeated violation under Paragraph (1) shall be punishable by a pecuniary penalty in a double amount, and the Minister of Finance shall disqualify the enterprise affected from printing or importing tokens certifying participation in the games covered under Section III of Chapter Thirty-Two herein for a period not exceeding six months.Article 270. (1) Any organizer of games of chances referred to in Article 228 herein, which conducts such games without having paid the full amount of the tax due, shall be liable to a pecuniary penalty equivalent to double the amount of the tax due but in any case not less than BGN 2,000.(2) The pecuniary penalty referred to in Paragraph (1) shall furthermore be imposed on any organizer of games of chance referred to in Article 228 herein which offers, sells or provides to any participant in the game of chance any token certifying participation which does not satisfy the statutorily established requirements as to the printing, form, type and cost price, or at a price exceeding the nominal value as printed on the relevant token certifying participation. No sanction shall be imposed where the tokens certifying participation have been revalued in respect of the series and the nominal value according to an inventory memorandum certified by a representative of the Ministry of Finance, a representative of the enterprise printing the tokens, and a revenue authority of the competent National Revenue Agency territorial directorate exercising competence over the place of registration of the organizer.(3) Any repeated violation under Paragraphs (1) and (2) shall be punishable by a pecuniary penalty equivalent to the double amount of the tax due but in any case not less than:1. BGN 4,000 and disqualification from practice of the activity according to the procedure established by Article 272 herein, where the repeated violation is under Paragraph (1);2. BGN 6,000 and disqualification from practice of the activity according to the procedure established by Article 272 herein, where the repeated violation is under Paragraph (2).Article 271. The pecuniary penalties referred to in Articles 269 and 270 herein shall be imposed notwithstanding the sanctions provided for in other laws, and the control authorities under the Gambling Act shall be notified of the violations as ascertained.Article 272. (1) The administrative sanction of disqualification from practice of activity shall be imposed for a period of one month or exceeding this period but not exceeding six months.(2) In the cases under Article 270 (2) herein, the revenue authorities shall seize and destroy the tokens certifying participation which do not satisfy the statutorily established requirements as to the printing, form, type and cost price, or any such tokens which are sold at a price exceeding the nominal value as printed thereon. The expenses shall be for the account of the taxable person.(3) In the cases of imposition of an administrative sanction of disqualification from practice of activity, a coercive administrative measure of sealing of the establishment or establishments and prohibition of access thereto shall furthermore be imposed.Article 273. (1) The implementation of the administrative sanction of disqualification from practice of activity shall be discontinued by the imposing authority at the request of the taxable person sanctioned according to an administrative procedure and after the said person has proved that the pecuniary penalty as imposed has been fully paid.(2) In the cases referred to in Paragraph (1), the revenue authority shall furthermore decree unsealing of the establishment, which shall be performed with the obligation to cooperate on the part of the tax subject.Article 274. The penalty decrees in the part thereof imposing the administrative sanction of disqualification from practice of activity and a coercive administrative measure of sealing of the establishment or establishments and denial of access thereto, as well as the decrees referred to in Article 273 herein, shall be subject to anticipatory enforcement unless the court orders otherwise.Article 275. Any person, which fails to fulfil the obligation thereof under Article 187 (3) herein, shall be liable to a pecuniary penalty of BGN 1,000 or exceeding this amount but not exceeding BGN 3,000 and, upon a repeated commission of the violation, to a pecuniary penalty of BGN 2,000 or exceeding this amount but not exceeding BGN 6,000.Article 276. Any taxable person, which fails to fulfil the obligations thereof under Article 92 (3) or (4) herein, shall be liable to a pecuniary penalty of BGN 500 or exceeding this amount but not exceeding BGN 2,000 and, upon a repeated commission of the violation, to a pecuniary penalty of BGN 1,500 or exceeding this amount but not exceeding BGN 5,000 for each unfulfilled obligation.Article 277. (1) Any taxable persons, which have applied the procedure for taxation under Chapter Thirty-Four herein without qualifying for the right of choice, shall be liable to a pecuniary penalty of BGN 20,000 or exceeding this amount but not exceeding BGN 30,000 and, upon a repeated commission of the violation, to a pecuniary penalty of BGN 40,000 or exceeding this amount but not exceeding BGN 60,000.(2) The persons referred to in Paragraph (1) shall have no right to apply the procedure for taxation on the net tonnage of vessels for a period of five years.Article 278. (1) The written statements ascertaining the violations shall be drawn up by the authorities of the National Revenue Agency, and the penalty decrees shall be issued by the Executive Director of the National Revenue Agency or by an official authorized thereby.(2) The ascertainment of violations, the issue, appeal against and enforcement of penalty decrees shall follow the procedure established by the Administrative Violations and Sanctions Act .SUPPLEMENTARY PROVISIONS 1. Within the meaning given by this Act:1. "The country" shall be the geographical territory over which the Republic of Bulgaria exercises the State sovereignty thereof, as well as the continental shelf and the exclusive economic zone where within the Republic of Bulgaria exercises sovereign rights in conformity with international law.2. "Permanent establishment" shall be a permanent establishment within the meaning given by Item 5 of 1 of the Supplementary Provisions of the Tax and Social-Insurance Procedure Code .3. "Financial asset" shall be the asset as defined in the applicable accounting standards, including the compensation instruments within the meaning given by Article 2 of the Transactions in Compensation Instruments Act. Where the person is not an enterprise within the meaning given by the Accountancy Act, the applicable accounting standards for the purposes of sentence one shall be the international accounting standards applicable in the country for the relevant year.4. "Dividend" shall be the distribution in favour of a person, arising from the holding that such person has in the capital of another person, resulting in a reduction of the owners' equity of the latter, including:(a) income from shares;(b) income from participating interests, even in unincorporated associations, and from other corporate rights, where treated as income from shares;(c) hidden profit distribution.Any distribution which, according to accounting legislation, has been accounted for at the distributing person as an expense shall not be a dividend, with the exception of the cases of hidden profit distribution.5. (Amended, SG No. 110/2007) "Hidden profit distribution" shall be:(a) any expenses charged by a taxable person without being connected with the economic activity carried out thereby or exceeding the customary market levels, in the cases where made in favour of shareholders, members or any parties related thereto;(b) any expenses on interest payments charged (unless the conditions of the loan are agreed in conformity with requirements provided for in a statutory instrument) where at least three of the following conditions are fulfilled:(aa) the loan exceeds the owners' equity of the payer of the income at the 31st day of December of the last preceding year;(bb) the repayment of the loan or the payment of interest thereon is not limited by a fixed period;(cc) the repayment of the loan or the payment of interest thereon depends on the existence or on the amount of profits accruing to the payer of the income;(dd) the repayment of the loan depends on satisfaction of the claims of other creditors or on the payment of dividends.6. "Share in a liquidation surplus" shall be the distribution of a share in the property of a person upon the dissolution thereof in favour or another person or upon cessation of membership of that other person.7. "Interest payment" shall be income from debt claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, including interest paid on deposits with banks and income (premiums) from debentures and bonds. For the purposes of Part Three herein, any income which constitutes a dividend, penalty charges for late payments and damages shall not be regarded as interest payments.8. "Copyright and licence royalties" shall be payments of any kind received as a consideration for: the use of, or the right to use, any copyright of scientific, artistic or literary work, including cinematograph films and television films and recordings for transmission by radio or television or software; of any patent, trade mark, industrial design or utility model, drawing, plan, secret formula or process, as well as for the use of, or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience. The payment for acquisition of a right to use software in which only a copy of the relevant program is incorporated shall not be considered to be copyright and licence royalties in case the rights to copy, reproduce, distribute, modify, publicly display or make commercial use in any other form are not granted.9. "Technical assistance fees" shall be the payments from a source inside the Republic of Bulgaria for erection or installation of tangible assets, as well as any services of a consulting nature and marketing research as provided by any non-resident person.10. "Franchising" shall be a totality of industrial or intellectual property rights relating to trademarks, trade names, logotypes, utility models, designs, copyright, know-how or patents, granted in return for a royalty, to be used for sale of goods and/or provision of services.11. "Factoring" shall be a transaction whereby single or periodic monetary claims arising from a supply of goods or a provision of services are transferred, regardless of whether the person who has acquired the claims (the factor) assumes the risk of collection of the said claims in consideration of the payment of a reward.12. "Foreign tax credit" shall be the right, enjoyable under conditions as specified by this Act, to deduct a profits tax or a tax on income already paid abroad.13. "Related parties" shall be the parties within the meaning given by Item 3 of 1 of the Supplementary Provisions of the Tax and Social-Insurance Procedure Code.14. "Market price" shall be the price within the meaning given by Item 8 of 1 of the Supplementary Provisions of the Tax and Social-Insurance Procedure Code.15. "Transfer between a permanent establishment and another division of the same enterprise" shall be the term referred to in Item 6 of 1 of the Supplementary Provisions of the Tax and Social-Insurance Procedure Code.16. "Accounting financial result" shall be the profit (loss) according to the profit-and-loss account (income statement) for a specified period before charging the tax expenses on the profit.17. "Undistributable expenses" shall be all selling expenses, administrative, financial and extraordinary expenses which do not relate to a particular activity only and are associated with the implementation of any activity:(a) in respect of which corporation tax retention is enjoyable, or(b) subject to levy of corporation tax, performed by not-for-profit legal entities.18. "Undistributable income" shall be all financial and extraordinary income which does not arise from the implementation of a particular activity only and is associated with implementation of any activity in respect of which corporation tax retention is enjoyable.19. "Expenses on provisions for debts" shall be the expenses on provisions as accounted for, which meet the criteria for recognition of a provision according to the applicable accounting standards, including:(a) the expected excesses of the total amount of expenses over income and the expected losses under construction contracts;(b) the termination and post-employment benefits, equity compensation benefits and other long-term employee benefits.20. "Debt capital", within the meaning given by Article 43 (6) herein, shall be the total liabilities of the enterprise, excluding the investment grants and subsidies.21. "Disposition effected on a regulated Bulgarian securities market" shall be any transactions:(a) (amended, SG No. 52/2007) concluded on the official and the second-tier regulated market in the country within the meaning given by the Markets in Financial Instruments Act , excluding block trades and other transactions in securities which, according to the Rules and Regulations of the regulated market, are subject only to registration on the regulated market;(b) (amended, SG No. 52/2007) concluded under the terms and according to the procedure of tender offering under Section II of Chapter Eleven, as well as the transactions under the terms and according to the procedure of repurchase or redemption by collective investment schemes which have been admitted to public offering in the Republic of Bulgaria, licensed investment companies of the closed-end type, according to the procedure established in the Markets in Financial Instruments Act. 22. (Amended, SG No. 110/2007) "Documented cost of acquisition of securities or interests" shall be the cost of acquisition of the relevant securities which the person has documented according to the procedure established by the relevant statutory instruments. Where securities or interests of a particular type, issued by a particular person, have been acquired at different prices and part of the said securities or interests are subsequently sold and it is impossible to prove which of the said securities or interests are sold, the cost of acquisition of the securities or interests sold shall be the weighted average price arrived at on the basis of the cost of acquisition of the securities or interests held at the time of the sale. Sentence two shall apply in all cases of acts of disposition of securities or interests. Where new shares or interests are acquired as a result of a distribution which has not led to a reduction of the owners' equity of the person distributing the shares or interests, the documented cost of acquisition of the shares or interests held shall be recalculated. After acquisition of the new shares or interests under the foregoing sentence, the documented cost of acquisition of each share or interest, including the newly acquired ones, shall equal the sum total of the documented costs of acquisition of the shares or interests prior to the acquisition of the new shares or interests, divided by the total number of shares or interests held after the acquisition, including the newly acquired ones.23. "Computer peripheral equipment" shall be all devices which are connected to the basic input/output system of a computer or are controlled by a computer but are not essential for the functioning of the said computer.24. "Development activity" shall be the activity of developing, designing, building and testing new goods, materials, manufacturing technologies and industrial systems and other industrial property items, as well as improving existing products and technologies.25. "Tax loss from a source outside Bulgaria", for the purposes of Articles 73 and 74 herein, shall be the sum total of the losses from all permanent establishments in the respective foreign State.26. "Financial institutions" shall be:(a) (amended, SG No. 110/2007, effective 1.01.2007) the credit and financial institutions under the Credit Institutions Act; (b) the insurers, reinsurers and non-resident persons carrying on insurance or reinsurance business through a permanent establishment under the Insurance Code;(c) (supplemented, SG No. 52/2007) the investment intermediaries under the Markets in Financial Instruments Act and the management companies under the Public Offering of Securities Act ;(d) the companies carrying on business for the provision of supplementary social insurance.(e) (new, SG No. 110/2007, effective 1.01.2007) the health insurance companies under Article 91 of the Health Insurance Act. 27. "Unprocessed plant and animal produce" shall be any primary product derived from plants and animals which is used in its natural form, without undergoing any form of technological treatment or processing resulting in physical and chemical alterations of the composition thereof.28. "Manufacturing activities", for the purposes of Article 184 herein, shall be the process of creation of a new product by means of mechanical, physical or chemical conversion (treatment or processing) of raw and prime materials for the purpose of subsequent sale and biological transformation of live animals or plants.29. (Amended, SG No. 110/2007, effective 1.01.2007) "Initial investment" shall be an investment in new material and immaterial assets, which are eligible expenditures relating to:1. the setting-up of a new establishment;2. the extension of an existing establishment;3. diversification of the output of an establishment into new additional products;4. a fundamental change in the existing production process.An investment in an asset which replaces an existing asset shall not qualify as initial investment;30. (Amended, SG No. 110/2007, effective 1.01.2007) "Enterprise in difficulty" shall be an enterprise meeting one of the following criteria:(a) in the case of a limited liability company or a joint-stock company: where more than 50 per cent of the registered capital thereof has disappeared, and more than 25 per cent of that capital has been lost over the last preceding twelve months;(b) in respect of all other corporations: where more than 50 per cent of the owners' equity thereof has disappeared, and more than 25 per cent of that capital has been lost over the last preceding twelve months;(c) (amended, SG No. 110/2007, effective 1.01.2007) where the corporation fulfils the criteria under the Commerce Act or under the law of the place of registration for institution of bankruptcy proceedings.31. (Amended, SG No. 110/2007, effective 1.01.2007) "De minimis aid" shall be the aid within the meaning given by Commission Regulation (EC) No 1998/2006 of 15 December 2006 on the application of Articles 87 and 88 of the Treaty to de minimis aid.32. "Market rate of interest" shall be the interest that would have been paid under the same conditions for credit extended or received under any form whatsoever under a transaction between parties who or which are not related. The market rate of interest shall be determined according to the conditions of the market, taking into account all quantitative and qualitative characteristics of the transaction: form, amount and currency of the resources provided, period of the provision thereof, type, amount and liquidity of the collateral security, credit risk and other risks related to the transaction, profile of the borrower or lessee, as well as all other conditions and circumstances influencing the rate of interest.33. "Advertising expenses" shall be the expenses incurred for the promotion of goods and service, including gifts which bear the trade name or the trade mark of the taxable persons, within the limits of the customary for the activity carried out by the person.34. "Expenses on fringe benefits provided in kind" shall be the perquisites accounted for as expenses covered under Article 294 of the Labour Code and provided according to the procedure and manner defined in Article 293 of the Labour Code or according to a procedure and manner determined by the management of the enterprise. The said perquisites must be available to all factory and office workers and to the persons hired under a management and control contract. Where monetary relationships under any form whatsoever exist between the employer of commissioning entity and the persons referred to in sentence two in respect of the perquisites received, this shall not represent provision of expenses on fringe benefits in kind.35. "Operator", within the meaning given by Article 209 herein, shall be any person which has obtained authorization from the Minister of Finance and which engages in the activities of printing, organizing, control and settlement in connection with food vouchers according to a procedure established by an ordinance of the Minister of Finance.36. "Food vouchers" shall be a type of paper medium of exchange provided through an employer to factory and office workers, including persons hired under management contracts, which are used as a medium of payment at restaurants, fast-food outlets and food trading establishments, according to a contract for provision of services concluded with an operator.37. "Passenger car" shall be such car as defined in the Road Traffic Act.38. "Extra bus services" shall be bus services running according to an endorsed transportation scheme in a mode allowing the vehicles to stop and passengers to alight and board at request where this is legally possible, complementing the principal urban transport services without fully duplicating them.39. "Expenses on maintenance, repair and operation of means of transport" shall be the accounting expenses, related to the maintenance, repair and operation of the means of transport, incurred on:(a) fuel, lubricants and other consumables;(b) spare parts;(c) repair work, including painting and collision-repair services;(d) technical inspections and parking;(e) vehicle care products and accessories.40. "Means of transport" shall be the means of transport as specified in Section Four of Chapter Two of the Local Taxes and Fees Act, regardless of whether entered in a register kept according to Bulgarian legislation.41. "Vessels operation activities" shall be:(a) the effecting of carriage by sea by means of vessels of a net tonnage exceeding 100 tons, the chartering of any such vessels, as well as the sale of vessels subject to tonnage taxation, which have been acquired not less than five years prior to the sale thereof;(b) carriage by land, related to the carriage by sea, administrative and insurance services and other services provided to customers in connection with the effecting of the carriage by sea;(c) financial operations and value adjustments resulting from exchange rate fluctuation, related to the management of the working capital used for the vessels operation;(d) extraordinary activities related to the vessels operation, which do not come within the scope of Littera (a) to (c) and which generate a turnover which does not exceed 0.25 per cent of the turnover generated by the activities referred to in Littera (a) and (b).42. "Days of service" shall be the days on which the vessel is engaged in carriage and/or performs any activities related to carriage. The days of service shall exclude the time for repairs or in a port, as well as the time during which the vessel is not engaged in carriage and/or does not perform any activities related to carriage due to detention or force majeure.43. "Net tonnage" shall be the measure, in tons, of the useful deadweight (cargo carrying capacity) of a vessel as certified by a tonnage certificate of the vessel.44. "Repeated violation" shall be any violation which is committed within one year after the entry into effect of a penalty decree whereby the offender was penalized for a violation of the same kind.45. (New, SG No. 110/2007, effective 1.01.2007) "Agricultural products", "processing of agricultural products" and "marketing of agricultural products" shall have the meaning given to these terms by Article 2 [sic, must be Article 1, paragraph 2 - Translator's Note] of Commission Regulation (EC) No 1998/2006 on the application of Articles 87 and 88 of the Treaty to de minimis aid.46. (New, SG No. 110/2007, effective 1.01.2007) "Eligible expenditure on material assets" for the purposes of Items 29 and 48 shall be land, buildings, machinery and plant/equipment. The initial investments shall furthermore include the machinery and plant/equipment acquired under a financial lease contract where the contract contains an obligation to purchase the asset at the expiry of the term of the contract.47. (New, SG No. 110/2007, effective 1.01.2007) "Eligible expenditure on immaterial assets" for the purposes of Items 29 and 48 shall be assets obtained as a result of transfer of technology by the acquisition of patent rights, licences, know-how or unpatented technical knowledge.48. (New, SG No. 110/2007, effective 1.01.2007) "Large investment project" shall be an initial investment which includes eligible expenditure on material and immaterial assets combined in an economically indivisible way, where the eligible expenditure exceeds the lev equivalent of EUR 50 million, determined according to the official exchange rate of the lev against the euro. The initial investment related to a large investment project must be undertaken within a period of three years. A large investment project may not be divided into sub-projects or stages, if this would lead to circumvention of the provisions in this Act.49. (New, SG No. 110/2007, effective 1.01.2007) "Net turnover" shall have the meaning given to this term by the Accountancy Act. 50. (New, SG No. 110/2007, effective 1.01.2007) "Equity method" shall have the meaning given to this term by accounting legislation.51. (New, SG No. 110/2007, effective 1.01.2007) "Proportionate consolidation method" shall have the meaning given to this term by accounting legislation.52. (New, SG No. 110/2007, effective 1.01.2007) "Jointly controlled entity" shall have the meaning given to this term by accounting legislation. 2. This Act transposes the provisions of Council Directive 2001/86/EC supplementing the Statute for a European company with regard to the involvement of employees and of Council Directive 2003/72/EC supplementing the Statute for a European Cooperative Society with regard to the involvement of employees with regard to the involvement of employees.TRANSITIONAL AND FINAL PROVISIONS 3. This Act shall supersede the Corporate Income Tax Act (promulgated in the State Gazette No. 115 of 1997; corrected in No. 19 of 1998; amended in Nos. 21 and 153 of 1998, Nos. 12, 50, 51, 64, 81, 103, 110 and 111 of 1999, Nos. 105 and 108 of 2000, Nos. 34 and 110 of 2001, Nos. 45, 61, 62 and 119 of 2002, Nos. 42 and 109 of 2003, Nos. 18, 53 and 107 of 2004, Nos. 39, 88, 91, 102, 103 and 105 of 2005, Nos. 30, 34, 59 and 63 of 2006). 4. The adjustments of the financial result (accounting profit/loss) for tax purposes consequent to the application of Article 23 of the Corporate Income Tax Act as superseded until the 31st day of December 2006 shall be considered to be adjustments of the accounting financial result upon determination of the tax financial result according to the procedure and according to the relevant provision of this Act. 5. The accounting income and expenses from subsequent valuations (revaluations and impairments) of depreciable assets, which are charged until the 31st day of December 2003 and which are not recognized for tax purposes until the 31st day of December 2006 according to the procedure established by Article 23 of the Corporate Income Tax Act as superseded, shall be recognized for tax purposes in the year of write-off the relevant asset in the tax depreciation schedule, with the exception of the cases of shrinkage. 6. (1) The depreciable assets available in the tax depreciation schedule as at the 31st day of December 2006, with the exception of such specified in Paragraph (2), shall be considered to be taxable depreciable assets within the meaning given by Article 48 herein.(2) The following assets available in the tax depreciation schedule shall be written off therein as at the 1st day of January 2007:1. the positive goodwill;2. the assets which are not used in any activity in respect of which a tax financial result is formed;3. the assets which are not classified as held for sale or are part of a group for exemption classified as held for sale;4. the assets where the taxable person has been dissolved through liquidation or has been dissolved through adjudication in bankruptcy.(3) (Amended, SG No. 110/2007, effective 1.01.2007) Article 66 herein shall not apply in the cases of write-off of any assets under Item 1 and 2 of Paragraph (2). 7. (1) The tax depreciable value of any tax depreciable asset available as at the 1st day of January 2007 shall be the depreciable value of the said asset as at the 31st day of December 2006 under the Corporate Income Tax Act as superseded.(2) The tax depreciation charged of any tax depreciable asset available as at the 1st day of January 2007 shall be the tax-recognized amount of the expenses on depreciations for the relevant asset as at the 31st day of December 2006 under the Corporate Income Tax Act as superseded.(3) The tax value of any tax depreciable asset available as at the 1st day of January 2007 shall be the tax carrying value of the said asset as at the 31st day of December 2006 under the Corporate Income Tax Act as superseded. 8. The values of the tax depreciable assets available in the tax depreciation schedule as at the 1st day of January 2007 shall remain unchanged compared to the said values as at the 31st day of December 2006. 9. (1) The revaluation reserve in the tax depreciation schedule shall be written off therein as at the 1st day of January 2007. The said write-off shall follow the procedure and manner specified in 10 or 11 herein. The taxable person shall opt for the application of 10 or 11 herein.(2) The "revaluation reserve," within the meaning given by Paragraph (1), shall be the revaluation reserve (the subsequent valuations reserve) which is included in the tax depreciation schedule as at the 31st day of December 2006.(3) Where a revaluation reserve (subsequent valuations reserve) other than the one which should have been included according to Article 22 of the Corporate Income Tax Act as superseded is included in the tax depreciation schedule as at the 31st day of December 2006, the said reserve shall be adjusted for the purposes of Paragraph (1).(4) Sole traders shall write off the revaluation reserve according to a procedure and in a manner applicable to the taxable persons under this Act. 10. (1) The taxable persons shall adjust on a single occasion the values of the depreciable assets in the tax depreciation schedule as at the 1st day of January 2007 as a result of the write-off of the revaluation reserve.(2) The tax-recognized amount of the expenses on depreciations for a specific depreciable asset as at the 31st day of December 2006 shall be credited with the written off revaluation reserve for the relevant asset, as a result of which the tax depreciation of the said asset charged as at the 1st day of January 2007 shall be increased and the tax value of the asset as at the 1st day of January 2007 shall be decreased. After the increase, the tax depreciation charged for the relevant asset may not exceed the tax depreciable value of the asset as at the 1st day of January 2007.(3) Where the revaluation reserve for a specific asset exceeds the tax carrying value of the said asset as at the 31st day of December 2006, the said asset shall be written off in the tax depreciation schedule as at the 1st day of January 2007, with the tax-recognized amount of the expenses on depreciations of other assets of the same category, determined within the meaning given by Article 22 of the Corporate Income Tax Act as superseded, being credited with the amount of the excess. Where the values of the assets of the said category are insufficient to fulfil the requirement of sentence one, the tax-recognized amount of the expenses on depreciations of assets of the other categories shall be increased.(4) After the write-off of the revaluation reserve, the total amount of the tax values of all assets available in the tax depreciation schedule as at the 1st day of January 2007 must equal the total amount of the tax carrying values of all assets as at the 31st day of December 2006, debited with the revaluation reserve as written off.(5) Paragraphs (1) to (4) shall not apply were the total amount of the revaluation reserve as written off exceeds the total amount of the tax carrying values of all assets available in the tax depreciation schedule as at the 31st day of December 2006. The taxable persons shall write off all assets available in the tax depreciation schedule as at the 31st day of December 2006 in the said schedule as at the 1st day of January 2007. The accounting financial result shall be credited with the difference between the total amount of the revaluation reserve and the total amount of the tax carrying values of all assets as at the 31st day of December 2006 upon determination of the tax financial result, inter alia upon determination of the quarterly prepayments according to the procedure established by 11 herein. 11. (1) Upon determination of the tax financial results, inter alia upon determination of the quarterly prepayments, the accounting financial result shall be credited with the revaluation reserve as written off as follows:1. for 2007: with one-third of the revaluation reserve as written off;2. for 2008: with one-third of the revaluation reserve as written off;3. for 2009: with one-third of the revaluation reserve as written off.(2) Upon dissolution of any taxable person, with the exception of the cases of dissolution upon transformation through change of the legal form under Article 264 of the Commerce Act , upon determination of the tax financial result for the year of dissolution the accounting financial result shall be credited with the portion of the revaluation result as written off whereby the accounting financial result has not been credited according to the procedure established by Paragraph (1).(3) The taxable person may credit the accounting financial result thereof with the revaluation reserve as written off on a single occasion upon determination of the tax financial result thereof for 2007, inter alia upon determination of the quarterly prepayments. In this case Paragraphs (1) and (2) shall not apply. 12. The provision of Item 6 of Article 55 (1) herein shall apply to any tax tangible fixed assets acquired after the 31st day of December 2006. 13. For the purposes of Article 55 herein, the depreciable asset referred to in Item 55 (f) of 1 of the Supplementary Provisions of the Corporate Income Tax Act as superseded shall be allocated to Category V. 14. For the purposes of Article 55 herein, the depreciable asset, formed according to the Corporate Income Tax Act as superseded as a result of the tax-unrecognized portion of the excess of the sum total of the accounting depreciation quotas over the tax-recognized amount of the depreciations of the assets as a whole for the period commencing on the 1st day of January 1998 and ending on the 31st day of December 2002, shall be allocated to Category VII. 15. (Amended, SG No. 110/2007, effective 1.01.2007) The provision of Article 59 herein shall not apply to any tax depreciable asset for which the charging of tax depreciations was discontinued at the 31st day of December 2006 according to the Corporate Income Tax Act as superseded by reason of withdrawal from use of the said asset. The charging of tax depreciations for the asset referred to in sentence one shall be resumed as from the beginning of the month of re-commissioning of the said asset. 16. The provision of Article 63 herein shall apply to any subsequent expenses completed after the 31st day of December 2006. 17. For the purposes of Article 66 (1) herein, where the residual value is not included in the depreciable value of the asset within the meaning given by the Corporate Income Tax Act as superseded, the accounting carrying value of the asset shall be debited with the residual value thereof upon determination of the tax financial result. 18. Article 68 herein shall apply to any assets acquired after the 31st day of December 2005. 19. Article 45 herein shall not apply in the cases where the financial result for tax purposes has been credited with the subsequent valuation reserve (revaluation reserve) according to the procedure established by Article 23 of the Corporate Income Tax Act as superseded. 20. Any unrecognized expenses on interest payments after the 1st day of January 2004 according to Article 26 of the Corporate Income Tax Act as superseded, subject to deduction and not deducted until the 31st day of December 2006, shall be deducted according to the procedure established by Article 43 herein until the lapse of five years since the year of non-recognition of the said expenses for tax purposes. 21. The portion of the provisions for claims taxed for tax purposes (under the accounting legislation effective until the 31st day of December 2001) in the non-financial enterprises, whereby the financial result has not been debited according to the procedure established by Article 23 (3) of the Corporate Income Tax Act as superseded during succeeding years, shall be treated as unrecognized expense on subsequent valuation of a claim according to the procedure established by Article 34 of this Act. 22. Any losses formed after the 1st day of January 2002 and subject to carry-forward, which have not been deducted until the 31st day of December 2006 according to the procedure established by Chapter Four of the Corporate Income Tax Act as superseded, shall be deducted according to the procedure established by Chapter Eleven herein. 23. Article 95 herein shall not apply to any income and expenses originating as a result of any income and expenses, accounted for prior to the 1st day of January 2007, in respect of which there existed a difference between the amount as accounted for according to the accounting policies and the amount as determined by a regulatory authority according to a statutory instrument. 24. The right to enjoy the reduction referred to in Article 60 (1) or the retention referred to in Articles 61d or 61e of the Corporate Income Tax Act as superseded in respect of the corporation tax due for 2006 shall furthermore vest in any taxable person which has not submitted a notification to the competent National Revenue Agency territorial directorate according to Article 51a of the Corporate Income Tax Act as superseded, subject to the condition that the said person fulfil all requirements provided for in the Act for the relevant corporation tax reduction or retention. 25. Corporation tax retention shall be allowed according to the procedure established by Article 187 herein until the 31st day of December 2010. 26. (Repealed, SG No. 110/2007, effective 1.01.2007). 27. The annual taxable profit (loss), the annual corporation tax due, all alternative taxes, the taxes on expenses and the withholding taxes for 2006, which are declarable according to the procedure established by the Corporate Income Tax Act as superseded, shall be declared by means of submission of the relevant tax returns and within the time limits under the said Act. 28. (1) The taxes due for 2006 under the Corporate Income Tax Act as superseded shall be remitted within the time limits and according to the procedure established by the said Act.(2) The right referred to in Article 92 (5) herein shall be enjoyable by the taxable persons even upon declaring the corporation tax for 2006. 29. The standard forms of annual tax returns for 2006 under the Corporate Income Tax Act as superseded shall be endorsed not later than the 10th day of January 2007 by an order of the Minister of Finance, which shall be promulgated in the State Gazette. 30. (Amended, SG No. 110/2007, effective 1.01.2007) Any provisions, which are included in the historical cost of a tax depreciable asset but are not included in the depreciable value of the said asset according to the Corporate Income Tax Act as superseded, shall be considered as provisions which are not included in the tax depreciable value of the asset according to Article 53 (1) herein. 31. (Repealed, SG No. 110/2007). 32. The Tax and Social-Insurance Procedure Code (promulgated in the State Gazette No. 105 of 2005; amended in Nos. 30, 33, 34, 59, 63, 73 and 82 of 2006) shall be amended and supplemented as follows:1. In Article 141:(a) in Paragraph (1), the words "thirty days" shall be replaced by "sixty days";(b) in Paragraph (2):(aa) in sentence one at the end, there shall be added "and has not eliminated the deficiencies within fifteen days after the date of request by the revenue authority";(bb) in sentence two, the words "there are no" shall be replaced by "there are";(c) in Paragraph (3), after the words "application of the CADT" there shall be inserted "or failure to rule within the period under Paragraph (1)";(d) Paragraphs (4) and (5) shall be amended to read as follows:"(4) Any opinion on lack of grounds for application of the CADT shall be appealable by the recipient of the income or by the payer, if authorized to do so by the recipient of the income. Any such appeal shall follow the procedure for appeal of audit acts, and the appeal shall be lodged care of the territorial directorate whereto the request has been submitted.(5) If there is an opinion on application of the CADT under Paragraph (1) or (2), the tax liabilities for the relevant income may be revised solely if there are grounds under Article 133 (2)."2. In Article 142 (1) and (2) , the figure "25,000" shall be replaced by "50,000". 33. This Act shall enter into force on the 1st day of January 2007.This Act was adopted by the 40th National Assembly on the 14th day of December 2006 and the Official Seal of the National Assembly has been affixed thereto.Act to Amend and Supplement the Corporate Income Tax Act(SG No. 110/2007, effective 1.01.2008)TRANSITIONAL AND FINAL PROVISIONS 56. (Effective 1.01.2007, SG No. 110/2007) Any overremitted corporation tax, profits tax and municipal tax under the Corporate Income Tax as superseded (promulgated in the State Gazette No. 115/1997; corrected in No. 19/1998; amended in Nos. 21 and 153/1998, Nos. 12, 50, 51, 64, 81, 103, 110 and 111/1999, Nos. 105 and 108/2000, Nos. 34 and 110/2001, Nos. 45, 61, 62 and 119/2002, Nos. 42 and 109/2003, Nos. 18, 53 and 107/2004, Nos. 39, 88, 91, 102, 103 and 105/2005, Nos. 30, 34, 59 and 63/2006; superseded, No. 105/2006), which is not deducted, refunded or set off at the 31st day of December 2006, may be deducted according to the procedure established by Article 94 of the effective Corporate Income Tax Act. 57. (Effective 1.01.2007, SG No. 110/2007) Any taxable person, which has retained tax under Article 58 of the Profits Tax Act as repealed (promulgated in the State Gazette No. 59/1996 [sic, must be 1996 - Translator's Note]; amended in No. 110/1996, Nos. 16, 49, 86 and 89/1997; repealed, SG No. 115/1997) or under Article 20 as repealed of the Investment Promotion Act, which adopts the application of International Accounting Standards, shall not apply Chapter Thirteen to the change in accounting policies in respect of the accounting for the tax retained. Upon determination of the tax financial result for the year of transition to International Accounting Standards and for the succeeding years, the financial result shall be credited with the part of the financing accounted for in connection with the tax retained which is not recognized as income before transition to International Accounting Standards, the amount of the increase being allocated by year as applicable in proportion to the expenses accounted for during the said years in connection with fulfilment of the conditions for retention of the tax. Where the tax retained is invested in depreciable assets, the increase referred to in sentence two shall be allocated by year on the basis of the accounting expenses on depreciation accounted for the said assets during the years as applicable. 58. (Effective 1.01.2007, SG No. 110/2007) The tax reliefs according to the procedure established by Section IV of Chapter Twenty-Two, with the exception of Article 187 of the Corporate Income Tax Act, shall be enjoyable until the 31st day of December 2013. The tax relief referred to in Article 184 of the Corporate Income Tax Act, constituting regional aid, shall be enjoyable where implementation of the relevant initial investment commenced after the 31st day of December 2006 but before the 1st day of January 2014. 59. (Effective 1.01.2007, SG No. 110/2007) The tax relief referred to in Article 184 of the Corporate Income Tax Act, of which the Minister of Finance has notified the European Commission according to the procedure established by Article 8 of the State Aids Act, constituting regional aid, shall become effective after adoption of a positive decision by the European Commission regarding the accordance of the said relief with the Guidelines on national regional aid for 2007 to 2013 of the European Commission. Provided that the European Commission adopts a positive decision until the 31st day of March 2008, the tax relief may be applied for 2007 as well. After the adoption of a positive decision by the European Commission, the Minister of Finance need not prepare individual notifications on the taxable persons applying Article 184 of the Corporate Income Tax Act, with the exception of such implementing large investment projects under Article 189 of the Corporate Income Tax Act. 60. The tax depreciable assets at the 31st day of December 2007, which are written off for accounting purposes but are not written off in the tax depreciation schedule in pursuance of Item 2 of Article 22 (12) of the Corporate Income Tax Act as superseded because a flow of economic benefit is not expected there from or in pursuance of item 1 of article 60 (3), shall be written off in the tax depreciation schedule at the 1st day of January 2008. The provision of Article 66 (2) of the effective Corporate Income Tax Act shall apply, inter alia upon determination of the quarterly tax prepayments for 2008. Sentences one and two shall not apply to any assets which are written off for accounting purposes because they are completely depreciated. 61. The provision of Article 140 (7) of the Corporate Income Tax Act shall not apply to any transformation whereof the date of recordation in the Commercial Register precedes the 1st day of January 2008. 62. Any accounting income and expenses, profits and losses, accounted for by a partner in a jointly controlled entity as a result of application of the proportionate consolidation method, shall not be recognized for tax purposes where the jointly controlled entity is a taxable person. 63. (1) Upon determination of the tax financial result of any financial institutions, the accounting financial result thereof shall be debited with the dividends distributed by resident legal persons during the current year, where the investment is accounted for according to the equity method.(2) Upon determination of the tax financial result of any taxable persons other than financial institutions, the accounting financial result thereof shall be debited with the dividends distributed by resident legal persons for the period commencing with the acquisition and ending with the write-off of the investment, where the investment is accounted for according to the equity method. The debiting under sentence one shall be effected in the year of write-off of the investment.(3) Paragraphs (1) and (2) shall not apply to:1. any dividends distributed from profits which are realized prior to the acquisition of the investment by the taxable person, or2. any dividends distributed by licensed special-purpose investment companies under the Special-Purpose Investment Companies Act. 64. (1) Upon determination of the financial result of any resident parent company which is a financial institution, the accounting financial result thereof shall be debited with the dividends distributed by a subsidiary thereof from a Member State during the current year, where the investment in the subsidiary is accounted for according to the equity method.(2) Upon determination of the tax financial result of a resident parent company other than a financial institution, the accounting financial result thereof shall be debited with the dividends distributed by a subsidiary thereof from a Member State for the period commencing with the acquisition and ending with the write-off of the investment in the subsidiary, where the investment is accounted for according to the equity method. The debiting under sentence one shall be effected in the year of write-off of the investment.(3) Paragraphs (1) and (2) shall be furthermore applied by a permanent establishment in the country upon distribution of dividends by a non-resident person, where the conditions under Items 1 to 3 of Article 105 (2) of the Corporate Income Tax Act are fulfilled.(4) Where dividends have been distributed according to the procedure established by Paragraphs (1) or (3) within two years after the time of acquisition of at least 15 per cent of the capital of the company distributing the dividends, the taxable person shall have the right to debit the financial result thereof according to the procedure established by Paragraph (1). In case the taxable person ceases to hold at least 15 per cent of the capital of the company prior to the lapse of the two years, the tax financial result and the corporation tax due for the year in which Paragraph (1) is applied, shall be adjusted in a way as if Paragraph (1) was not applied. Default interest according to the standard procedure shall be due for the period commencing on the date on which the corporation tax had to be remitted and ending on the date of remittance of the said tax.(5) Paragraphs (1) to (4) shall not apply to any dividends distributed from profits which are realized prior to the acquisition of the investment by the taxable person. 65. 62, 63 and 64 of this Act shall apply upon determination of the tax financial result for 2007. 66. 16 and 17 of this Act shall apply to any assets acquired after the 31st day of December 2007......................................................................... 68. This Act shall enter into force on the 1st day of January 2008, with the exception of 7, 21, 24, 38 to 45, 49, 50, Items 3 to 7 of 54, Items 1 to 4 of 55 and 56 to 59 herein, which shall enter into force on the 1st day of January 2007.Annex 1to Item 1 of Article 100(Supplemented, SG No. 108/2007, effective 1.01.2007) List of Companies in the Member States of the European Union Referred to in Item 1 of Article 100 Herein(a) companies incorporated under Council Regulation (EC) No 2157/2001 on the Statute for a European company (SE) and Council Directive 2001/86/EC supplementing the Statute for a European company with regard to the involvement of employees, [and cooperative societies] included [sic, actually incorporated - Translator's Note] under Council Regulation (EC) No 1435/2003 on the Statute for a European Cooperative Society (SCE) and Council Directive 2003/72/EC supplementing the Statute for a European Cooperative Society with regard to the involvement of employees;(b) companies under Belgian law known as: "sociйtй anonyme"/"naamloze vennootschap", "sociйtй en commandite par actions"/"commanditaire vennootschap op aandelen", "sociйtй privйe а responsabilitй limitйe"/"besloten vennootschap met beperkte aansprakelijkheid", "sociйtй cooperative а responsabilitй limitйe"/"cooperative vennootschap met beperkte aansprakelijkheid", "sociйtй en nom collectif"/"vennootschap onder firma", "sociйtй en commandite simple"/"gewone commanditaire vennootschap", public undertakings which have adopted one of the above-mentioned legal forms, as well as other companies constituted under Belgian law and which are subject to the Belgian Corporate Tax;(c) companies under Czech law known as: "akciovб spolecnost", "spolecnost s rucenim omezenэm";(d) companies under Danish law known as "aktieselskab" and "anpartsselskab". Other companies subject to tax under the Corporation Tax Act, in so far as their taxable income is calculated and taxed in accordance with the general tax legislation rules applicable to "aktieselskaber";(e) companies under German law known as: "Aktiengesellschaft", "Kommanditgesellschaft auf Aktien", "Gesellschaft mit beschrдnkter Haftung", "Versicherungsverein auf Gegenseitigkeit", "Erwerbs- und Wirtschaftsgenossenschaft", "Betriebe gewerblicher Art von juristischen Personen des цffentlichen Rechts", as well as other companies constituted under German law and subject to German corporate tax;(f) companies under Estonian law known as: "tдisьhing", "usaldusьhing", "osaьhing", "aktsiaselts", "tulundusьhistu";(g) companies under Greek law known as: ??????? ???????", "??????? ????????????з ??????з" (?.?.?) and other companies constituted under Greek law and subject to Greek corporate tax;(h) companies under Spanish law known as: "sociedad anуnima", "sociedad comanditaria por acciones", "sociedad de resposabilidad limitada", as well as those public law bodies which operate under private law. Other entities constituted under Spanish law and subject to Spanish corporate tax ( Impuesto sobre Sociedades');(i) companies under French law known as: "sociйtй anonyme", "sociйtй en commandite par actions", "sociйtй а responsabilitй limitйe", "sociйtй par actions simplifiйe", "sociйtй d'assurances mutuelles", "caisses d'йpargne et de prйvoyance", "sociйtйs civiles", which are automatically subject to corporation tax, "coopйratives", "unions de coopйratives", industrial and commercial public establishments and undertakings, as well as other companies constituted under French law which are subject to the French Corporate Tax;(j) companies incorporated or existing under Irish laws, bodies registered under the Industrial and Provident Societies Act, building societies incorporated under the Building Societies Acts and trustee savings banks within the meaning of the Trustee Savings Banks Act, 1989;(k) companies under Italian law known as "societа per azioni", "societа in accomandita per azioni", "societа a responsabilitа limitata", "societа ccoperativa", "societа di mutual assicurazione", as well as private and public entities whose activity is wholly or principally commercial;(l) under Cypriot law: "???????з", as defined in the Income Tax laws;(m) companies under Latvian law known as: "akciju sabiedriba", "sabiedriba ar ierobezotu atbildibu";(n) companies incorporated under the law of Lithuania;(o) companies under Luxembourg law known as "sociйtй anonyme", "sociйtй en commandite par actions", "sociйtй а responsabilitй limitйe", "sociйtй coopйrative", "sociйtй coopйrative organisйe comme une sociйtй anonyme", "association d'assurances mutuelles", "association d'йpargne-pension", "enterprise de natura commerciale, industrielle ou miniиre de l'Йtat, des communes, des syndicats de communes, des йtablissements publics et des autres personnes marales de droit public", as well as other companies constituted under Luxembourg law which are subject to the Luxembourg Corporate Tax;(p) companies under Hungarian law known as: "kцzkereseti tбrsasбg", "berйti tбrsasбg", "kцzцs vбllat", "korlбtolt felelцssйgь tбrsasбg", "rйszvйnytбrsasбg", "egyesьlйs", "szцvetkezet";(q) companies under Maltese law known as: "Kumpaniji ta' Responsabilita Limitata", "Socjetajiet en commandite li l-kapital taghhom maqsum fazzjonijiet";(r) companies under Dutch law known as "naamloze vennootschap", "besloten vennootschap met beperkte aansprakelijkheid", "Open commanditaire vennootschap", "Coцperatie", "onderlinge waarborgmaatschappij", "Fonds voor gemene rekening", "vereniging op cooperative grondslag", "vereniging welke op onderlinge grondslag als verzekeraar of kredietinstelling optreedt", as well as other companies constituted under Dutch law which are subject to the Dutch Corporate Tax;(s) companies under Austrian law known as: "Aktiengesellschaft", "Gesellschaft mit beschrдnkter Haftung", "Versicherungsvereine auf Gegenseitigkeit", "Erwerbs- und Wirtschaftsgenossenschaften", "Betriebe gewerblicher Art von Kцrperschaften des цffentlichen Rechts", "Sparkassen";(t) companies under Polish law known as: "spуlka akcyjna", "spуlka z ograniczona odpowiedzialnoscia";(u) commercial companies or civil law companies having a commercial form, as well as cooperatives and public undertakings, incorporated under Portuguese law;(v) companies under Slovenian law known as: "delniska druzba", "komanditna druzba", "druzba z omejeno odgovornostjo";(w) companies under Slovak law known as: "akciovб spolocnost", "spolocnost s rucenнm obmedzenэm", "komanditnб spolocnos";(x) companies under Finnish law known as "osakeyhtiц"/"aktiebolag", "osuuskunta"/"andelslag", "sддstцpankki"/"sparbank" and "vakuutusyhtiц"/"fцrsдkringsbolag";(y) companies under Swedish law known as "aktiebolag", "fцrsдkringsaktiebolag", "ekonomiska fцreningar", "sparbanker", "цmsesidiga fцrsдkringsbolag";(z) companies incorporated under the law of the United Kingdom of Great Britain and Northern Ireland.(aa) (new, SG No. 108/2007) companies under Romanian law known as "sosietati pe actiuni", sosietati оn comandita pe actiuni", "sosietati cu raspundere limitata". Annex 2to Item 3 of Article 100 and Item 1 of Article 108 (2)(Supplemented, SG No. 108/2007, effective 1.01.2007) List of Taxes in the Member States of the European Union- impфt des sociйtйs/vennootschapsbelasting in Belgium,- selskabsskat in Denmark,- Kцrperschaftsteuer in the Federal Republic of Germany,- ????? ?????? ???? ?? ???? ???????? ????????????? ????????? [in Greece],- impuesto sobre sociedades in Spain,- impфt sur les sociйtйs in France- corporation tax in Ireland,- imposta sul reddito delle persone giuridiche in Italy,- impфt sur le revenu des collectivitйs in Luxembourg,- venflootschapsbelasting in the Netherlands,- imposto sobre o rendimento das pessoas colectivas in Portugal,- corporation tax in the United Kingdom of Great Britain and Northern Ireland,- Kцrperschaftsteuer in Austria- yhteisцjen tulovero/inkomstskatten fцr samfund in Finland,- statlig inkomstskatt in Sweden,- Dan z prнjmu prбvnickэch osob in the Czech Republic,- Tulumaks in Estonia,- ????? ??????????? in Cyprus,- uznemumu ienakuma nodoklis in Latvia,- Pelno mokestis in Lithuania,- Tбrsasбgi adу in Hungary,- Taxxa fuq l-income in Malta,- Podatek dochodowy od osуb prawnych in Poland,- Davek od dobicka pravnih oseb in Slovenia,- Dan z prнjmu prбvnickэch osob in Slovakia.- Impozit pe profit in Romania. Annex 3to Item 1 of Article 137(Supplemented, SG No. 108/2007, effective 1.01.2007) List of Companies in the Member States of the European Union Referred to in Item 1 of Article 137 Herein(a) companies incorporated under Council Regulation (EC) No 2157/2001 on the Statute for a European company (SE) and Council Directive 2001/86/EC supplementing the Statute for a European company with regard to the involvement of employees, included under Council Regulation (EC) No 1435/2003 on the Statute for a European Cooperative Society (SCE) and Council Directive 2003/72/EC supplementing the Statute for a European Cooperative Society with regard to the involvement of employees;(b) companies under Belgian law known as "sociйtй anonyme"/"naamloze vennootschap", "sociйtй en commandite par actions"/"commanditaire vennootschap op aandelen", "sociйtй privйe а responsabilitй limitйe"/"besloten vennootschap met beperkte aansprakelijkheid", "sociйtй cooperative а responsabilitй limitйe"/"cooperative vennootschap met beperkte aansprakelijkheid", "sociйtй en nom collectif"/"vennootschap onder firma", "sociйtй en commandite simple"/"gewone commanditaire vennootschap", public undertakings which have adopted one of the above-mentioned legal forms, as well as other companies constituted under Belgian law and subject to the Belgian Corporate Tax;(c) companies under Czech law known as: "akciovб spolecnost", "spolecnost s rucenim omezenэm";(d) companies under Danish law known as "aktieselskab" and "anpartsselskab"; other companies subject to tax under the Corporation Tax Act, in so far as their taxable income is calculated and taxed in accordance with the general tax legislation rules applicable to "aktieselskaber";(e) companies under German law known as: "Aktiengesellschaft", "Kommanditgesellschaft auf Aktien", "Gesellschaft mit beschrдnkter Haftung", "Versicherungsverein auf Gegenseitigkeit", "Erwerbs- und Wirtschaftsgenossenschaft", "Betriebe gewerblicher Art von juristischen Personen des цffentlichen Rechts", as well as other companies constituted under German law and subject to German corporate tax;(f) companies under Estonian law known as: "tдisьhing", "usaldusьhing", "osaьhing", "aktsiaselts", "tulundusьhistu";(g) companies under Greek law known as: "??????? ???????", "??????? ????????????з ??????з" (?.?.?);(h) companies under Spanish law known as: "sociedad anуnima", "sociedad comanditaria por acciones", "sociedad de resposabilidad limitada", as well as those public law bodies which operate under private law;(i) companies under French law known as "sociйtй anonyme", "sociйtй en commandite par actions", "sociйtй а responsabilitй limitйe", "sociйtй par actions simplifiйe", "sociйtй d'assurances mutuelles", "caisses d'йpargne et de prйvoyance", "sociйtйs civiles", which are automatically subject to corporation tax, "coopйratives", "unions de coopйratives", industrial and commercial public establishments and undertakings, as well as other companies constituted under French law which are subject to the French Corporate Tax;(j) companies incorporated or existing under Irish laws, bodies registered under the Industrial and Provident Societies Act, building societies incorporated under the Building Societies Acts and trustee savings banks within the meaning of the Trustee Savings Banks Act, 1989;(k) companies under Italian law known as: "societа per azioni", "societа in accomandita per azioni", "societа a responsabilitа limitata", "societа ccoperativa", "societа di mutual assicurazione", as well as private and public entities whose activity is wholly or principally commercial;(l) under Cypriot law: "???????з", as defined in the Income Tax laws;(m) companies under Latvian law known as: "akciju sabiedriba", "sabiedriba ar ierobezotu atbildibu";(n) companies incorporated under the law of Lithuania;(o) companies under Luxembourg law known as: "sociйtй anonyme", "sociйtй en commandite par actions", "sociйtй а responsabilitй limitйe", "sociйtй coopйrative", "sociйtй coopйrative organisйe comme une sociйtй anonyme", "association d'assurances mutuelles", "association d'йpargne-pension", "enterprise de natura commerciale, industrielle ou miniиre de l'Йtat, des communes, des syndicats de communes, des йtablissements publics et des autres personnes marales de droit public", as well as other companies constituted under Luxembourg law which are subject to the Luxembourg Corporate Tax;(p) companies under Hungarian law known as: "kцzkereseti tбrsasбg", "berйti tбrsasбg", "kцzцs vбllat", "korlбtolt felelцssйgь tбrsasбg", "rйszvйnytбrsasбg", "egyesьlйs", "kцzhasznъ tбrsasбg", "szцvetkezet";(q) companies under Maltese law known as: "Kumpaniji ta' Responsabilita Limitata", "Socjetajiet en commandite li l-kapital taghhom maqsum fazzjonijiet";(r) companies under Dutch law known as: "naamloze vennootschap", "besloten vennootschap met beperkte aansprakelijkheid", "Open commanditaire vennootschap", "Coцperatie", "onderlinge waarborgmaatschappij", "Fonds voor gemene rekening", "vereniging op cooperative grondslag" and "vereniging welke op onderlinge grondslag als verzekeraar of kredietinstelling optreedt", as well as other companies constituted under Dutch law which are subject to the Dutch Corporate Tax;(s) companies under Austrian law known as: "Aktiengesellschaft", "Gesellschaft mit beschrдnkter Haftung", "Erwerbs- and Wirtschaftsgenossenschaften";(t) companies under Polish law known as: "spуlka akcyjna", "spуlka z ograniczona odpowiedzialnoscia";(u) commercial companies or civil law companies having a commercial form, as well as other legal persons carrying on commercial or industrial activities, which are incorporated under Portuguese law;(v) companies under Slovenian law known as: "delniska druzba", "komanditna druzba", "druzba z omejeno odgovornostjo";(w) companies under Slovak law known as: "akciovб spolocnost", "spolocnost s rucenнm obmedzenэm", "komanditnб spolocnost ";(x) companies under Finnish law known as: "osakeyhtiц"/"aktiebolag", "osuuskunta"/"andelslag", "sддstцpankki"/"sparbank" and "vakuutusyhtiц"/"fцrsдkringsbolag";(y) companies under Swedish law known as: "aktiebolag", "fцrsдkringsaktiebolag", "ekonomiska fцreningar", "sparbanker", "цmsesidiga fцrsдkringsbolag";(z) companies incorporated under the law of the United Kingdom of Great Britain and Northern Ireland.(aa) (new, SG No. 108/2007) companies under Romanian law known as "sosietati pe actiuni", sosietati оn comandita pe actiuni", "sosietati cu raspundere limitata". Annex 4to Item 3 of Article 137(Supplemented, SG No. 108/2007, effective 1.01.2007) List of Taxes in the Member States of the European Union- impфt des sociйtйs/vennootschapsbelasting in Belgium,- selskabsskat in Denmark,- Kцrperschaftsteuer in the Federal Republic of Germany,- ????? ?????? ???? ?? ???? ???????? ????????????? ????????? in Greece,- impuesto sobre sociedades in Spain,- impфt sur les sociйtйs in France,- corporation tax in Ireland,- imposta sul reddito delle societа in Italy,- impфt sur le revenu des collectivitйs in Luxembourg,- venflootschapsbelasting in the Netherlands,- imposto sobre o rendimento das pessoas colectivas in Portugal,- corporation tax in the United Kingdom of Great Britain and Northern Ireland,- Kцrperschaftsteuer in Austria,- yhteisцjen tulovero/inkomstskatten fцr samfund in Finland,- statlig inkomstskatt in Sweden,- Dan z prнjmu prбvnickэch osob in the Czech Republic,- Tulumaks in Estonia,- ????? ??????????? in Cyprus,- uznemumu ienakuma nodoklis in Latvia,- Pelno mokestis in Lithuania,- Tбrsasбgi adу in Hungary,- Taxxa fuq l-income in Malta,- Podatek dochodowy od osуb prawnych in Poland,- Davek od dobicka pravnih oseb in Slovenia,- Dan z prнjmov prбvnickэch osob in Slovakia.- impozit pe profit in Romania. - For more information visit www.solicitorbulgaria.com id: 332 Mon, 04 Aug 2008 06:10:43 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-corporate-income-tax-act-part-3 http://web.solicitorbulgaria.com/index.php/bulgarian-corporate-income-tax-act-part-3 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/CORPORATE_INCOME_TAX_ACT2.JPG EUR http://web.solicitorbulgaria.com/index.php/bulgarian-corporate-income-tax-act-part-3 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Chapter EighteenINTRA-COMMUNITY DIVIDENDSSection IDefinitionsCompany of Another Member StateArticle 100. "Company of another Member State" shall be any company in respect of which the following conditions are simultaneously fulfilled:1. the company takes a legal form in accordance with Annex 1 hereto;2. the company is resident for tax purposes in another Member State of the European Community, according to the relevant tax legislation and by virtue of a convention for the avoidance of double taxation with a third State is not considered to be resident for tax purposes in another State outside the European Community;3. the profits of the company attract a tax covered under Annex 2 hereto or to a similar profits tax and the company has no option or the possibility of being exempt from the levy of such tax.Resident Parent CompanyArticle 101. "Resident parent company" shall be any resident commercial corporation or unincorporated association in respect of which the following conditions are… For more information visit http://www.solicitorbulgaria.com id: 333 Chapter EighteenINTRA-COMMUNITY DIVIDENDSSection IDefinitionsCompany of Another Member StateArticle 100. "Company of another Member State" shall be any company in respect of which the following conditions are simultaneously fulfilled:1. the company takes a legal form in accordance with Annex 1 hereto;2. the company is resident for tax purposes in another Member State of the European Community, according to the relevant tax legislation and by virtue of a convention for the avoidance of double taxation with a third State is not considered to be resident for tax purposes in another State outside the European Community;3. the profits of the company attract a tax covered under Annex 2 hereto or to a similar profits tax and the company has no option or the possibility of being exempt from the levy of such tax.Resident Parent CompanyArticle 101. "Resident parent company" shall be any resident commercial corporation or unincorporated association in respect of which the following conditions are simultaneously fulfilled:1. the profits of the company attract corporation tax;2. the company has a minimum holding of 15 per cent in the capital of a company of a Member State, inter alia through a permanent established in another Member State of the European Community, for an uninterrupted period of at least two years.Parent Company of Member StateArticle 102. "Parent company of a Member State" shall be any company of another Member State of the European Community which has a minimum holding of 15 per cent in the capital of a resident subsidiary, inter alia through a permanent established in another Member State of the European Community, for an uninterrupted period of at least two years.Resident SubsidiaryArticle 103. "Resident subsidiary" shall be any resident commercial corporation or unincorporated association in respect of which the following conditions are simultaneously fulfilled:1. the profits of the company attract corporation tax;2. a parent company of a Member State has a minimum holding of 15 per cent in the capital of the company for an uninterrupted period of at least two years.Subsidiary of Member StateArticle 104. "Subsidiary of a Member State" shall be any company of another Member State of the European Community the capital of which includes a minimum holding of 15 per cent by a resident parent company for an uninterrupted period of at least two years.Section IITax Treatment upon Distribution of DividendsDividends Distributed by Subsidiary of Member StateArticle 105. (1) Any accounting income charged in a resident parent company as a result of distribution of dividends by a subsidiary of the said company of a Member State shall not be recognized for tax purposes.(2) The accounting income charged in a permanent establishment in the country as a result of distribution of dividends by non-resident persons shall not be recognized for tax purposes where the following conditions are simultaneously fulfilled:1. the permanent establishment is of a company of another Member State;2. the company referred to in Item 1 has, inter alia through the permanent establishment thereof, a minimum holding of 15 per cent in the capital of the non-resident person distributing the dividends for an uninterrupted period of at least two years;3. the non-resident person distributing the dividends is a company of another Member State.Non-fulfilment of Condition for Exemption from TaxationArticle 106. (1) Where income from dividends has been charged within a period of up to two years from the time of acquisition of a minimum holding of 15 per cent in the capital of a company of a Member State, the taxable person shall have the right not to recognize the said income for tax purposes.(2) In case the company ceases to have a minimum holding of 15 per cent in the capital before the lapse of the two years, the unrecognized income from dividends referred to in Paragraph (1) shall be considered as being recognized for tax purposes for the year of accounting for the said income. The tax financial result and the corporation tax due for the year of accounting for the dividends shall be adjusted in a way as if the income from dividends were recognized for tax purposes. Default interest shall be due according to the standard procedure for the period commencing on the date on which the corporation tax was to be remitted and ending on the date of remittance of the said tax.Unrecognized Expenses Related to Unrecognized Income from DividendsArticle 107. (Repealed, SG No. 110/2007). Dividends Distributed by Resident Subsidiary in Favour of Parent Companyof Member StateArticle 108. (1) Any dividends charged by a resident subsidiary in favour of a parent company of a Member State shall not be subject to levy of a withholding tax.(2) Any dividends charged by resident legal persons in favour of a permanent establishment in another Member State shall not be subject to levy of a withholding tax according to the procedure established by Part Three herein where the following conditions are simultaneously fulfilled:1. a tax under Annex 2 hereto or a similar profits tax is levied on the profits from a permanent establishment and the permanent establishment has no option or the possibility of being exempt from the levy of such tax;2. the permanent establishment is of another resident person or of a company of another Member State;3. the resident person/company referred to in Item 2 has, inter alia through the permanent establishment, a minimum holding of 15 per cent in the capital of the resident person distributing the dividends for an uninterrupted period of at least two years;4. the resident persons referred to in Items 2 and 3 are commercial corporations or unincorporated associations and the profits thereof attract corporation tax.Collateral SecurityArticle 109. (1) Where the provisions of Article 108 herein are applied and the two-year period for having a minimum holding of 15 per cent in the capital has not lapsed at the date of making a decision on distribution of dividend, a tax shall not be withheld at source according to the procedure established by Part Three herein but collateral security shall be furnished to the revenue authority.(2) Any such collateral security must cover the full amount of the withholding tax due.(3) Any such collateral security may be created solely by means of a money deposit or a bank guarantee. The said collateral security shall be accepted in Bulgarian leva and no interest shall be payable thereon.(4) The collateral security shall be released upon fulfilment of the condition referred to in Paragraph (1).CooperativesArticle 110. The provisions of this Chapter shall furthermore apply, mutatis mutandis, in respect of the cooperatives, the cooperative unions and the enterprises thereof.Tax EvasionArticle 111. The provisions of this Chapter shall not apply in all cases of tax evasion or tax avoidance, inter alia in the cases of hidden profit distribution.Chapter NineteenTRANSFORMATION OF COMPANIES AND COOPERATIVES AND TRANSFER OF ENTERPRISESection IGeneral DispositionsApplicabilityArticle 112. The provisions of this Chapter shall apply upon transformation of any companies and cooperatives and upon transfer of an enterprise.Date of TransformationArticle 113. The date of transformation for tax purposes shall be the date of entry of the transformation in the Commercial Register.Last Tax Period upon cessation of transferring companyArticle 114. Last Tax Period upon cessation of transferring company shall be the period from the beginning of the year to the date of transformation. For transferring companies which are newly established during the year of transformation, Last Tax Period shall be the period from the date of establishment to the date of transformation.Taxation for Last Tax PeriodArticle 115. (1) The transferring companies and the permanent establishments of non-resident persons shall be subject to corporation tax for the last tax period according to the standard procedure established by this Act. The taxation shall be final.(2) For tax purposes, the assets and liabilities available at the date of transformation shall be considered as having been sold at market prices and shall be written off.(3) Upon determination of the tax financial result, the accounting financial result shall be credited with the profit and shall be debited with the loss arrived at as a difference between the market price of the asset or liability and the accounting value thereof at the date of transformation. Any temporary tax differences related to the asset or liability shall be recognized during the last tax period according to the standard procedure established by this Act. Article 66 (1) and (2) herein shall apply upon determination of the tax financial result.(4) Paragraphs (2) and (3) shall not apply upon transformation under the terms and according to the procedure established by Sections II and III herein.Tax Treatment of Transformation through Change of Legal FormArticle 116. (1) Articles 115 and 117 herein shall not apply in the cases of transformation through change of the legal form under Article 264 of the Commerce Act. The newly formed company shall assume all obligations for determination of the tax financial result and remittance of the corporation tax due for the full year of transformation.(2) For tax purposes, all rights and obligations arising from any acts performed by the transferring company for the current and prior periods, including the adjustments of the tax financial results, shall be considered as having been performed by the newly formed company.Tax Treatment of Transformation by Transfer of Property to Sole OwnerArticle 116a. (New, SG No. 110/2007) (1) Upon transformation by transfer of property to the sole owner under Article 265 of the Commerce Act, all rights and obligations arising from steps performed by the transforming corporation for the current and prior periods, including the adjustments of the tax financial result, shall be considered as having been performed by the sole trader.(2) The sole trader shall submit a tax return on corporation tax for the last tax period of the transferring company according to the procedure established by Article 117 (1) herein and shall remit the said tax within the time limit under Article 117 (2) herein.(3) After the transformation, the sole trader shall make quarterly tax prepayments in the year of transformation.(4) The sole trader may not carry forward any tax losses formed by the transferring company.(5) The sole trader may not recognize for tax purposes any unrecognized expenses on interest payments in the transferring company resulting from application of the thin capitalization regime.(6) The transferring company shall not apply Article 115 (2) and (3) herein.Declaring and Remittance of Tax for Last Tax PeriodArticle 117. (1) (Amended and supplemented, SG No. 110/2007) In the cases of dissolution of transferring companies, the newly formed companies or the acquiring companies shall submit a tax return on the corporation tax for the last tax period of the transferring company within thirty days after the date of transformation. The tax return shall be submitted to the National Revenue Agency territorial directorate exercising competence over the place of registration of the newly formed company or the acquiring company. Upon transformation through division, the tax return shall be submitted by one of the newly formed or acquiring companies.(2) The corporation tax for the last tax period shall be remitted by the newly formed companies or the acquiring companies within thirty days after the date of transformation after deduction of the tax prepayments made.(3) (New, SG No. 110/2007) Paragraphs (1) and (2) shall furthermore apply in the cases of dissolution of a transferring company under Section II of this Chapter.Tax Prepayments by Acquiring Companies or Newly Formed CompaniesArticle 118. (1) After the transformation, the acquiring companies or the newly formed companies shall make quarterly tax prepayments in the year of transformation.(2) Upon transformation through change of the legal form under Article 264 of the Commerce Act, the newly formed company shall make monthly or quarterly tax prepayments according to the standard procedure established by this Act on the basis of the tax financial result of the transferring company.Carry-Forward of Tax Loss upon Transformation and Transferof EnterpriseArticle 119. (1) Upon transformation under the Commerce Act, the acquiring companies or newly formed companies may not carry forward any tax losses formed by the transferring companies.(2) Upon sale of an enterprise under Article 15 of the Commerce Act, the transferee may not carry forward any tax losses formed by the transferor.(3) Paragraph (1) shall not apply upon transformation through change of the legal form under Article 264 of the Commerce Act.Regulation of Thin CapitalizationArticle 120. (1) Upon transformation under the Commerce Act, the acquiring companies or newly formed companies may not recognize for tax purposes any unrecognized expenses on interest payments in the transferring companies resulting from application of the thin capitalization regime.(2) Upon sale of an enterprise under Article 15 of the Commerce Act, the transferee may not recognize for tax purposes any unrecognized expenses on interest payments at the transferor resulting from application of the thin capitalization regime.(3) Paragraph (1) shall not apply upon transformation through change of the legal form under Article 264 of the Commerce Act.Expenses on Conduct of TransformationArticle 121. (1) The accounting expenses incurred in connection with the transformation shall not be recognized for tax purposes at the transferring company. The unrecognized expenses shall be recognized for tax purposes upon determination of the tax financial result of the acquiring company or the newly formed company in the year during which the transformation was implemented.(2) Where any circumstances occur determining that the transformation will not be implemented, the expenses referred to in Paragraph (1) shall be recognized for tax purposes at the transferring companies in the year of occurrence of the said circumstances, if the requirements of this Act are complied with.Tax Treatment upon Opting for Earlier Date of Transformation forAccounting PurposesArticle 122. (1) (Amended and supplemented, SG No. 110/2007) Upon opting for an earlier date of transformation for accounting purposes according to the procedure established by Article 263g (2) of the Commerce Act, all steps performed by the transferring companies for the account of the newly formed companies or acquiring companies as from the said date and until the date of transformation for tax purposes shall be considered as having been performed for tax purposes by the transferring companies.(2) (Supplemented, SG No. 110/2007) In the cases referred to in Paragraph (1), all accounting income and expenses, profits and losses, accounted for by the newly formed companies or acquiring companies shall be recognized for tax purposes at the transferring company. The said income and expenses, profits and losses shall not be recognized for tax purposes at the newly formed companies or acquiring companies. The accounting income and expenses, profits and losses for the purposes of sentences one and two shall be those as would have been accounted for by the transferring company without providing for the earlier date for accounting purposes according to the procedure established by Article 263g (2) of the Commerce Act. (3) The adjustments upon determination of the tax financial result, resulting from any acts referred to in Paragraph (1), shall be performed by the transferring companies.Cooperative Organizations and State-Owned EnterprisesArticle 123. The provisions of this Chapter in respect of the transformation of commercial corporations shall furthermore apply in the cases of:1. restructuring of cooperative organizations;2. dissolution, closure or formation of state-owned enterprises within the meaning given by Article 62 (3) of the Commerce Act under conditions of universal succession.Liability upon Transformation and RestructuringArticle 124. (1) Upon transformation of commercial corporations or upon restructuring of cooperative organizations, the newly formed or acquiring companies/cooperative organizations shall incur solidary liability for the tax liabilities of the transferring companies or cooperative organizations up to the extent of the rights received.(2) Upon transfer of an enterprise under Article 15 of the Commerce Act, the transferee shall incur solidary liability for the tax liabilities of the transferor up to the extent of the rights received.(3) The rights received shall be valued at market prices.Section IISpecific Regime of Taxation upon TransformationApplicabilityArticle 125. (1) This Section shall apply upon merger by acquisition, merger by the formation of a new company, division, partial division, transfer of assets and exchange of shares or interests within the meaning given by Articles 126 to 131 herein, concerning resident companies and/or companies from another Member State of the European Community.(2) This Section shall furthermore apply, mutatis mutandis, in the cases of restructuring of cooperative organizations, including such of other Member States of the European Community, where the conditions specified therein exist.Merger by AcquisitionArticle 126. (1) "Merger by acquisition" shall be any transformation in respect of which the following conditions are simultaneously fulfilled:1. all assets and liabilities of one or more transferring companies are transferred to another existing acquiring company, the transferring companies being dissolved without going into liquidation;2. the shareholders or members of the transferring companies are issued shares or interests in the acquiring company.(2) "Merger by acquisition" shall furthermore be any transformation whereupon all assets and liabilities of a transferring company are transferred to an acquiring company holding all shares or interests in the transferring company, and the transferring company is dissolved without going into liquidation.Merger by Formation of New CompanyArticle 127. "Merger by the formation of a new company" shall be any transformation in respect of which the following conditions are simultaneously fulfilled:1. all assets and liabilities of two or more transferring companies are transferred to a newly formed company, the transferring companies being dissolved without going into liquidation;2. the shareholders or members of the transferring companies are issued shares or interests in the newly formed company.DivisionArticle 128. "Division" shall be any transformation in respect of which the following conditions are simultaneously fulfilled:1. (supplemented, SG No. 110/2007) all assets and liabilities of a transferring company are transferred to two or more existing (acquiring) or newly formed companies, the transferring company being dissolved without going into liquidation;2. the shareholders or members of the transferring company are issued shares or interests in each of the existing or newly formed companies, in proportion to the shares or interests held by the shareholders or members in the transferring company.Partial DivisionArticle 129. "Partial division" shall be any transformation in respect of which the following conditions are simultaneously fulfilled:1. (supplemented, SG No. 110/2007) one or more branches of activity of a transferring company is transferred to one or more existing (acquiring) or newly formed companies, without the transferring company being dissolved and leaving therein at least one branch of activity;2. the shareholders or members of the transferring company are issued shares or interests in the existing or newly formed companies in proportion to the shares or interests held thereby in the transferring company.Transfer of AssetsArticle 130. (Supplemented, SG No. 110/2007) "Transfer of assets" shall be a transformation whereupon one, more or all branches of activity of a transferring company are transferred to one or more existing (acquiring) or newly formed companies in exchange for shares or interests issued by the existing or newly formed companies in favour of the transferring company, without the transferring company being dissolved.Exchange of Shares or InterestsArticle 131. "Exchange of shares or interests" shall be any transformation in respect of which the following conditions are simultaneously fulfilled:1. as a result of the transformation, the acquiring company holds more than one-half of the voting shares or of the interests in the acquired company or, if already having such holding in the capital, acquires a further holding in the shares or interests;2. the shareholders or members of the acquired company exchange the shares or interests thereof for the issue of shares or interests in the acquiring company.Additional Cash Payments and Non-Issue of Shares or InterestsArticle 132. (1) In the cases of merger by acquisition, merger by the formation of a new company, division, partial division, transfer of assets and exchange of shares or interests, for the purpose of achieving a parity of exchange, cash payments not exceeding 10 per cent of the nominal value of the shares or interests issued as a result of the transformation may be effected to the shareholders or members of the transferring companies or acquired companies.(2) (Amended, SG No. 110/2007) In the cases of merger by acquisition, division and partial division, shares or interests need not be issued where this is admissible by the Commerce Act. Issue of Shares or InterestsArticle 133. Within the meaning given by this Chapter, issue of shares or interests shall be in place where newly issued or held own shares or interests are provided by a newly formed, receiving or acquiring company.Branch of ActivityArticle 134. "Branch of activity" shall be the totality of assets and liabilities of a company which, from an organizational, functional and financial point of view, constitute an independent business.Transferring CompaniesArticle 135. "Transferring companies," within the meaning given by this Section, shall be:1. a resident transferring company;2. a transferring company from another Member State of the European Community;3. a permanent establishment in the country of a transferring company from another Member State of the European Community.Receiving CompaniesArticle 136. "Receiving companies," within the meaning given by this Section, shall be:1. a resident newly formed or receiving company;2. a newly formed or receiving company from another Member State of the European Community;3. a permanent establishment in the country of a newly formed or receiving company from another Member State of the European Community.Company from Another Member State of the European CommunityArticle 137. "Company from another Member State of the European Community," within the meaning given by this Section, shall be any company which simultaneously fulfils the following conditions:1. the company takes a legal form in accordance with Annex 3 hereto;2. the company is resident for tax purposes in another Member State of the European Community, according to the relevant tax legislation and by virtue of a convention for the avoidance of double taxation with a third State is not considered to be resident for tax purposes in another State outside the European Community;3. the profits of the company are subject to a tax covered under Annex 4 hereto or to a similar profits tax and the company has no option or the possibility of being exempt from the levy of such tax.Legal SuccessionArticle 138. For the purposes of this Section, upon transformation all rights and obligations arising from any acts performed by the transferring companies for the current period and the prior periods in respect of the assets and liabilities transferred under Item 1 of Article 139 herein, including the adjustments upon determination of the tax financial result, shall pass to the receiving companies.Assets and Liabilities Subject to TransformationArticle 139. The assets and liabilities subject to transformation under this Section shall be allocated to the following categories:1. assets and liabilities whereof the results of exploitation before and after the transformation are involved upon determination of the tax financial result under this Act;2. assets and liabilities whereof the results of exploitation before the transformation were involved and, as a result of the transformation, cease to be involved upon determination of the tax financial result under this Act;3. assets and liabilities whereof the results of exploitation before the transformation were not involved and, as a result of the transformation, become involved upon determination of the tax financial result under this Act.Assets and Liabilities Transferred under Item 1of Article 139 HereinArticle 140. (1) The accounting profits or losses originating upon write-off of any assets and liabilities referred to in Item 1 of Article 139 herein as a result of the transformation shall not be recognized for tax purposes.(2) The temporary tax differences related to any assets and liabilities referred to in Item 1 of Article 139 herein, which have originated before the transformation, shall not be recognized for tax purposes at the time of transformation and shall be considered as having originated at the receiving companies.(3) Where any asset or liability is recognized according to accounting legislation at the receiving company at a value diverging from the pre-transformation value of the said asset or liability, the difference between the two values shall form a temporary tax difference from a subsequent valuation or the temporary tax difference referred to in Paragraph (2) shall be adjusted thereby.(4) (Supplemented, SG No. 110/2007) The subsequent valuations reserve (revaluation reserve) in respect of any assets referred to in Item 1 of Article 139 herein, which are not tax depreciable assets, shall be transferred by the transferring company and shall be considered as having originated at the receiving company. The transferring company shall not apply Article 45 herein. Where the transferred subsequent valuations reserve (revaluation reserve) referred to in sentence one is not accounted for at the receiving company, the accounting financial result shall be credited with the amount of the reserve where the reserve is a positive quantity or, respectively, the accounting financial result shall be debited with the amount of the reserve where the reserve is a negative quantity, in the year of write-off of the relevant asset whereto the reserve is related.(5) (Supplemented, SG No. 110/2007) Any tax depreciable assets acquired under Item 1 of Article 139 herein shall be posted in the tax depreciation schedule of the receiving company at values equal to the values of the said assets in the tax depreciation schedule of the transferring company at the time of transformation. A copy of the tax depreciation schedule of the transferring company at the time of transformation shall be delivered to the revenue authority together with the copy of the statement referred to in Paragraph (6).(6) (Amended, SG No. 110/2007) Upon transformation of each asset or liability referred to in Item 1 of Article 139 herein, a statement shall be prepared according to the procedure established by Article 141 herein.(7) (New, SG No. 110/2007) Where, as a result of the transformation, the receiving company recognizes according to accounting legislation any assets or liabilities which were not recognized at the transferring company, the post-transformation income and expenses accounted for in connection with the said assets and liabilities shall not be recognized for tax purposes. Where the assets referred to in sentence one are depreciable for tax purposes, the said assets shall be posted in the tax depreciation schedule of the receiving company and tax depreciations shall not be charged for the said assets. The accounting profit which has originated at the receiving company as a result of the transformation and, respectively, the income accounted for in connection with any negative goodwill generated, shall not be recognized for tax purposes.(8) (New, SG No. 110/2007) Where any asset of the transferring company is not recognized according to accounting legislation at the receiving company, the accounting financial result shall be debited with the amount of the said asset upon determination of the tax financial result of the receiving company for the year of transformation, inter alia upon determination of the quarterly tax prepayments. Where any liability of the transferring company is not recognized according to accounting legislation at the receiving company, the accounting financial result shall be credited with the amount of the said liability upon determination of the tax financial result of the receiving company for the year of transformation, inter alia upon determination of the quarterly tax prepayments. The temporary tax differences related to any asset or liability referred to in sentence one, which have originated before the transformation, shall be recognized at the receiving company during the year of transformation according to the standard procedure established by the law.(9) (New, SG No. 110/2007) Paragraphs (3), (6) and (8) shall not apply to:1. any tax depreciable assets;2. any assets and liabilities under deferred taxes;3. the goodwill, where the accounting income and expenses accounted for in connection therewith are not recognized for tax purposes;4. any amounts which are assets for the transferring company and liabilities for the receiving company;5. any amounts which are liabilities for the transferring company and assets for the receiving company;6. any shares or interests of the receiving company held by the transferring company;7. any own shares purchased by the transferring company;8. any subscribed capital unpaid of the transferring company;9. any assets and liabilities referred to in Item 2 of Article 139 herein.(10) (New, SG No. 110/2007) Paragraph (4) shall not apply to the financial assets and liabilities subsequent valuations reserve established by financial institutions, where the accounting financial result has been adjusted according to the procedure established by Article 97 herein for the profits and losses from the said subsequent valuations. This reserve shall not be stated in the statements referred to in Article 141 herein.Statements of Assets and Liabilities Referred to inItem 1 of Article 139 HereinArticle 141. (1) The statement referred to in Article 140 (6) herein, prepared by the transferring companies, shall contain the following information on each asset and liability as at the date of transformation:1. type and designation;2. accounting value;3. temporary tax difference;4. (new, SG No. 110/2007) subsequent valuations reserve (revaluation reserve).(2) A copy of the statement referred to in Paragraph (1) as prepared shall be delivered to the receiving companies and to the revenue authority not later than at the end of the month next succeeding the month of transformation.(3) In the cases referred to in Article 140 (3) herein, a new statement shall be prepared by the receiving companies and a copy of the said statement shall be delivered to the revenue authority together with the annual tax return. The said statement shall contain the following information on each asset and liability:1. type and designation;2. accounting value;3. pre-transformation temporary tax difference;4. post-transformation temporary tax difference, determined according to the procedure established by Article 140 (3) herein;5. (new, SG No. 110/2007) subsequent valuations reserve (revaluation reserve).(4) Where the values of the assets and liabilities are adjusted according to accounting legislation as a result of the transformation after submission of the statement referred to in Paragraph (3), the receiving company shall prepare an adjusting statement. The adjusting statement shall be delivered to the revenue authority not later than at the end of the month next succeeding the month of occurrence of the circumstances necessitating the adjustment.(5) The statements referred to in Paragraphs (1) and (3) shall indicate data identifying the transferring companies and receiving companies, as well as the date of transformation and the judgment of court on entry of the said transformation.(6) (New, SG No. 110/2007) The copies of the statements covered under this Article and of the tax depreciation schedule referred to in Article 140 (5) herein shall be submitted to the National Revenue Agency territorial directorate exercising competence over the place of registration of the receiving companies on a magnetic or optical data carrier, or by electronic means.Assets and Liabilities Transferred under Item 2of Article 139 HereinArticle 142. (1) The accounting profits or losses originating upon write-off of any assets and liabilities referred to in Item 2 of Article 139 herein, related to a permanent establishment of a resident company in another Member State of the European Community, shall not be recognized for tax purposes.(2) The temporary tax differences related to any assets and liabilities referred to in Paragraph 1 herein, shall not be recognized for tax purposes at the time of transformation and during the succeeding years.(3) For tax purposes, outside the cases referred to in Paragraph (1), the assets and liabilities referred to in Item 2 of Article 139 herein, available at the date of transformation, shall be considered as having been sold at market prices and shall be written off.(4) In the cases referred to in Paragraph (3), upon determination of the tax financial result, the accounting financial result shall be credited with the profit and shall be debited with the loss arrived at as a difference between the market price of the asset or liability and the accounting value thereof at the date of transformation. Any temporary tax differences related to the asset or liability shall be recognized during the last tax period according to the standard procedure established by this Act. Article 66 (1) and (2) herein shall apply upon determination of the tax financial result.Assets and Liabilities Transferred under Item 3of Article 139 HereinArticle 143. (1) The assets and liabilities referred to in Item 3 of Article 139 herein shall be valued for tax purposes at the receiving companies at the value of the said assets and liabilities determined according to national accounting legislation.(2) The tax depreciable assets referred to in Item 3 of Article 139 herein shall be posted in the tax depreciation schedule according to the standard procedure established by this Act.Carry-Forward of Tax LossesArticle 144. (1) Upon transformation under this Section, the receiving companies shall not have the right to carry forward the tax losses formed by the transferring companies.(2) Paragraph (1) shall not apply in the cases of merger by acquisition or merger by the formation of a new company under this Section, as a result of which a permanent establishment of a company from another Member State of the European Community commences the legal existence thereof in the country and the said company has not had a permanent establishment in the country before the transformation.Tax Losses by Permanent EstablishmentArticle 145. (1) Any tax losses not carried forward at the time of transformation, formed by a permanent establishment of a resident company in another Member State of the European Community, shall not be deducted.(2) Upon determination of the tax financial result, the accounting financial result shall be credited with the tax losses carried forward at the time of transformation, formed by a permanent establishment of a resident company in another Member State of the European Community, which have not been deducted from the profits of the permanent establishment.Regulation of Thin CapitalizationArticle 146. (1) Upon transformation under this Section, the receiving companies shall not have the right to recognize for tax purposes any unrecognized expenses on interest payments in the transferring companies resulting from application of the thin capitalization regime.(2) Paragraph (1) shall not apply in the cases of merger by acquisition or merger by the formation of a new company under this Section, as a result of which a permanent establishment of a company from another Member State of the European Community commences the legal existence thereof in the country and the said company has not had a permanent establishment in the country before the transformation.Tax Prepayments by Receiving CompaniesArticle 147. (1) After transformation under this Section, the receiving companies shall make quarterly tax prepayments in the year of transformation.(2) In the cases referred to in Article 144 (2) herein, the receiving companies shall make monthly or quarterly tax prepayments according to the standard procedure established by this Act on the basis of the tax financial result of the transferring companies.Write-Off of HoldingArticle 148. (1) Where a receiving company has a holding in the capital of a transferring company, the accounting profits or losses in connection with the write-off of the said holding in the capital shall not be recognized for tax purposes.(2) The income referred to in Paragraph (1) shall not be subject to levy of a tax withheld at source according to the procedure established by Part Three herein.Tax Treatment of Shareholders of Members of Transferring Companies andAcquired CompaniesArticle 149. (1) The accounting profits or losses originating at shareholders or members of transferring companies or acquired companies as a result of an acquisition of shares or interests in receiving or acquiring companies shall not be recognized for tax purposes in the year of accounting for the said profits or losses and shall form a temporary tax difference from a subsequent valuation.(2) The temporary tax differences, originating at the shareholders or members before the transformation, which are related to the written off shares or interests in the transferring companies or acquired companies, shall not be recognized for tax purposes at the time of transformation.(3) The temporary tax differences referred to in Paragraphs (1) and (2) shall be considered as having originated in respect of the newly acquired shares or interests and shall be recognized according to the standard procedure established by this Act.(4) The income accruing to any non-resident legal persons which are shareholders or members of resident transferring or acquired companies from acquisition of shares or interests as a result of transformation shall be taxed or shall be exempted from tax withheld at source according to the standard procedure established by this Act at the date of transformation.(5) The tax withheld at source referred to in Paragraph (4) shall be due from the shareholder or member upon disposition in any form whatsoever of the newly acquired shares or interests and shall be remitted within sixty days after any such disposition.(6) (Amended, SG No. 110/2007) On or before the 31st day of January of the relevant year, the non-resident legal persons referred to in Paragraphs (4), (5) and (8) shall submit a declaration to the Sofia Territorial Directorate of the National Revenue Agency, certifying thereby that the said persons have not disposed of the shares or interests newly acquired as a result of the transformation. Any such persons shall submit the declaration referred to in sentence one annually, until the year of disposition of the newly acquired shares or interests.(7) Upon failure to submit the declaration referred to in Paragraph (6) when due, in addition to becoming liable to the administrative sanction, for the purposes of this Act the non-resident legal person shall furthermore be presumed to have disposed of the newly acquired shares or interests.(8) (New, SG No. 110/2007) Upon acquisition of shares or interests as a result of transformation through partial division, income shall not accrue to a non-resident legal person, unless shared of the transferring company are cancelled upon the partial division. For the purposes of assessment of the tax at source upon subsequent disposition of the shares or interests referred to in sentence one, the documented cost of acquisition of the said shares or interests shall be zero.Taxation of Transferring Company upon Transfer of AssetsArticle 150. (1) The accounting profits or losses originating at a transferring company as a result of a transfer of assets shall not be recognized for tax purposes in the year of accounting for the said profits or losses and shall form a temporary tax difference from a subsequent valuation.(2) The temporary tax difference referred to in Paragraph (1) shall be considered as having originated in respect of the newly acquired shares or interests and shall be recognized for tax purposes according to the standard procedure established by the Act.(3) Where the shares or interests referred to in Paragraph (1) are held by the transferring company for an uninterrupted period of at least five years, the temporary tax difference referred to in Paragraph (1) shall not be recognized for tax purposes at the time of transformation and during the succeeding years.Tax EvasionArticle 151. The provisions of this Section shall not apply where the transformation has as its objective tax evasion or tax avoidance. Tax evasion shall be presumed, inter alia, where the transformation is not carried out for valid commercial reasons or where the said transformation conceals the disposition of assets.Section IIITransfer of Registered Office of European Company or EuropeanCooperative SocietyApplicabilityArticle 152. Within the meaning given by this Chapter, "transfer of the registered office of a European company or a European cooperative society" shall be an operation whereby:1. the company, without being dissolved or without incorporation of a new legal person, transfers the registered office thereof from the country to another Member State of the European Community, according to Article 8 of Council Regulation (EC) No 2157/2001 or according to Council Regulation (EC) No 1435/2003, while the assets and liabilities of the company must remain effectively connected with the permanent establishment in the country and the results of exploitation of the said assets must be involved upon determination of the tax financial result, or2. the company, without being dissolved or without incorporation of a new legal person, transfers the registered office thereof from another Member State of the European Community to the country according to Article 8 of Council Regulation (EC) No 2157/2001 or according to Council Regulation (EC) No 1435/2003, while the assets and liabilities of the company must remain effectively connected with the company which commences the legal existence thereof as a result of this operation, and the results of exploitation of the said assets must be involved upon determination of the tax financial result.Legal SuccessionArticle 153. (1) For tax purposes, upon transfer of the registered office of a European company or a European cooperative society under the terms established by Item 1 of Article 152 herein:1. all acts performed by the said company for the current period and the prior periods, including the adjustments of the tax financial result, shall be considered as having been performed by the permanent establishment;2. corporation tax shall not be levied on the company for the period from the beginning of the year until the date of the operation;3. corporation tax shall not be levied on the permanent establishment for the period commencing at the beginning of the year according to the standard procedure, and the activity carried out by the company in the year of the operation shall be considered as having been carried out by the permanent establishment;4. the permanent establishment shall have the right to carry forward any tax losses not carried forward and formed by the company according to the standard procedure.(2) For tax purposes, upon transfer of the registered office of a European company to a European cooperative society under the terms established by item 2 of Article 152 herein:1. all acts performed by the said permanent establishment for the current period and the prior periods, including the adjustments of the tax financial result, shall be considered as having been performed by the company;2. corporation tax shall not be levied on the permanent establishment for the period from the beginning of the year until the date of the operation;3. corporation tax shall not be levied on the company for the period commencing at the beginning of the year according to the standard procedure, and the activity carried out by the permanent establishment in the year of the operation shall be considered as having been carried out by the company;4. the company shall have the right to carry forward any tax losses not carried forward and formed by the permanent establishment according to the standard procedure.Provisions Applicable upon Transfer of Registered OfficeArticle 154. The provisions of Section II of this Chapter in respect of the assets and liabilities, profits and losses and temporary tax differences shall furthermore apply upon a transfer of the registered office of a European company or a European cooperative society.Chapter TwentySPECIFIC RULES FOR DETERMINATION OF TAX FINANCIAL RESULT UPON TRANSFERSBETWEEN PERMANENT ESTABLISHMENT IN COUNTRY AND ANOTHER DIVISION OF SAMEENTERPRISE SITUATED OUTSIDE COUNTRYIncome from Transfer to Another Division of EnterpriseArticle 155. (1) The accounting income, accounted for at market value and originating upon a transfer from a permanent establishment in the country to another division of the same enterprise situated outside the country, shall be recognized for tax purposes where:1. the particular transfer coincides with the ordinary transactions of the said permanent establishment with third parties, or2. the ordinary activity of the said permanent establishment consists in similar transfers to the other divisions of the enterprise.(2) Any accounting income arising from cash resources provided by the permanent establishment to another division of the same enterprise situated outside the country shall not be recognized for tax purposes with the exception of financial institutions for which raising of cash resources and extending of loans is a core activity.(3) Any accounting expense related to a transfer from a permanent establishment to another division of the same enterprise situated outside the country shall not be recognized for tax purposes where accounting income, which is recognized for tax purposes, does not arise at the said permanent establishment as a result of the transfer. Where, as a result of a transfer to another division of the same enterprise, situated outside the country, the permanent establishment charges accounting income at the amount of the costs actually incurred (at cost price), the accounting expenses charged in connection with the said transfer shall be recognized for tax purposes.Expenses upon Transfer from Another Part of EnterpriseArticle 156. (1) Any accounting expenses accounted for at market value in connection with any goods, services and rights which are the result of a transfer from another division of the same enterprise, situated outside the country, shall be recognized for tax purposes in the permanent establishment in the country where the said expenses are accounted for within the ordinary activity of the permanent establishment related to a sale of the transferred goods, services or rights in an altered or unaltered state.(2) Any accounting expenses, accounted for at market value and originating upon transfer of any goods and services from another division of the same enterprise, situated outside the country, to a permanent establishment in the country, shall be recognized for tax purposes in the permanent establishment where:1. the particular transfer coincides with the ordinary transactions of the said division of the enterprise with third parties, or2. the ordinary activity of the said division of the enterprise consists in similar transfers to the other divisions of the enterprise.(3) Any accounting expenses accounted for according to the costs actually incurred (cost price) and originating upon transfer of any services from another division of the same enterprise situated outside the country, outside the cases referred to in Paragraphs (1) and (2), shall be recognized for tax purposes in the permanent establishment in the country. Sentence one shall furthermore apply in respect of the administrative management services received in direct connection with the permanent establishment.(4) Any accounting expenses, accounted for at costs actually incurred (cost price) and originating upon transfer of rights related to know-how, patents and other items of intellectual or industrial property, from another division of the same enterprise situated outside the country, outside the cases referred to in Paragraph (1), shall be recognized for tax purposes in the permanent establishment in the country. Where the said items are produced or acquired by the branch of activity of the enterprise which transfers the said items and which specialized in the creation or acquisition of any such items, the accounting expenses, accounted for at market value, shall be recognized for tax purposes.(5) Where the rights transferred under Paragraph (4) satisfy the criteria for a tax intangible fixed asset, the expenses on the acquisition thereof under Paragraph (4) shall not be recognized for tax purposes and the amounts shall be posted in the tax depreciation schedule. The tax depreciable value of the said rights shall be determined according to the standard procedure established by this Act.(6) Any accounting expenses arising from cash resources received in the permanent establishment from another division of the same enterprise situated outside the country shall not be recognized for tax purposes with the exception of:1. the financial institutions, for which raising of cash resources and extending of loans is a core activity, or2. the cases in which the cash resources are provided by a third party as an interest-bearing loan for the purposes of the permanent establishment and are used exclusively in the activity of the permanent establishment; in such case, the accounting expenses accounted for at the amount of the interest payments due to the third party shall be recognized for tax purposes upon compliance with the other provisions of this Act.Treatment of Assets upon Transfer from or toAnother Part of EnterpriseArticle 157. (1) Any assets provided to the permanent establishment in the country by another division of the same enterprise situated outside the country, which are related to the activity of the permanent establishment, outside the cases referred to in Article 156 (1) herein, shall be valued for tax purposes at the costs actually incurred (cost price) by the division of the enterprise transferring the said assets. The tax depreciable assets referred to in sentence once, which are used in the activity of the permanent establishment for a period of at least two years, shall be posted in the tax depreciation schedule according to the standard procedure established by this Act.(2) Where the tax depreciable assets referred to in Paragraph (1) are provided for temporary use for a period not exceeding two years, the permanent establishment in the country shall be recognized, for tax purposes, the accounting expenses charged to the amount of the depreciations charged by the transferring division of the enterprise for the said assets. The expenses charged may not exceed the annual tax depreciation which would have been charged if the maximum permissible annual rates of tax depreciation under Article 55 herein were used.(3) For tax purposes, the assets transferred shall be considered as having been sold at market prices at the time of transfer of assets manufactured or acquired by the permanent establishment in the country to another division of the enterprise situated outside the country and shall be written off.(4) In the cases referred to in Paragraph (3), upon determination of the tax financial result, the accounting financial result of the permanent establishment shall be credited with the profit and shall be debited with the loss arrived at as a difference between the market price of the asset and the accounting value thereof at the date of transfer. The temporary tax differences related to the said asset shall be recognized according to the standard procedure established by this Act. Article 66 (1) and (2) herein shall apply upon determination of the tax financial result.(5) Paragraphs (3) and (4) shall not apply where accounting income (profit) or costs (losses) originate from the transfer of the assets. The standard procedure established by this Act shall apply in such cases.Chapter Twenty-OneTAX REGULATION UPON DISSOLUTION THROUGH LIQUIDATION OR THROUGHADJUDICATION IN BANKRUPTCY AND UPON DISTRIBUTION OF SHARE IN LIQUIDATIONSURPLUSSection IGeneral DispositionsArticle 158. Upon dissolution through liquidation or through adjudication in bankruptcy, for the period until the expungement thereof, the taxable person shall fulfil the obligations thereof according to the standard procedure established by this Act and in compliance with the requirements of this Chapter, inter alia submitting the requisite financial statements, which shall be prepared and presented according to accounting legislation.Section IICorporation Tax upon DissolutionAssessment of Tax upon DissolutionArticle 159. (1) Corporation tax shall be due at the date of entry of the dissolution in the Commercial Register.(2) The corporation tax referred to in Paragraph (1) shall be assessed on the basis of the tax profit for the period from the beginning of the year until the date of entry of the dissolution.(3) The prepayments remitted since the beginning of the year and until the date of entry of the dissolution shall be deducted upon assessment of the tax.Remittance of Tax upon DissolutionArticle 160. (1) The corporation tax due under Article 159 herein shall be remitted within thirty days after the date of entry of the dissolution.(2) The corporation tax remitted upon dissolution shall be deducted from the annual corporation tax due for the year of dissolution or from the corporation tax due for the last tax period, where the date of submission of the motion for expungement upon liquidation or the date of expungement upon bankruptcy, as the case may be, is in one and the same year as the date of dissolution.(3) Where the date of dissolution and the date of submission of the motion for expungement upon liquidation, or the date of dissolution upon bankruptcy, as the case may be, are in different years, the financial statement prepared as at the date of dissolution and the financial statement prepared as at the 31st day of December of the year of dissolution of the taxable person shall be submitted with the annual tax return on the year of dissolution.Section IIICorporation Tax on Last Tax PeriodLast Tax PeriodArticle 161. (1) The last tax period of any taxable person dissolved through liquidation shall commence on the 1st day of January of the year in which the motion for expungement under Article 273 (1) of the Commerce Act was submitted and shall end on the date of submission of the said motion.(2) The last tax period of any taxable person dissolved through adjudication in bankruptcy shall commence on the 1st day of January of the year in which the expungement was effected and shall end on the date of expungement.(3) The last tax period of any permanent establishment of a non-resident person shall commence on the 1st day of January of the year in which the activity of the said establishment was discontinued and shall end on the date of discontinuance of the said activity.(4) The taxable person shall be liable to corporation tax in respect of the tax profit realized during the last tax period according to the standard procedure established by this Act. The corporation tax due shall be final.(5) For tax purposes, the assets manufactured or acquired by the permanent establishment in the country at the date of dissolution shall be considered as having been sold at market prices and shall be written off. Upon determination of the tax financial result for the last tax period of the permanent establishment, the tax financial result shall be credited with the profit and shall be debited with the loss arrived at as a difference between the market price of the assets referred to in sentence one and the accounting value of the said assets at the date of transformation. The temporary tax differences related to the asset shall be recognized during the last tax period according to the standard procedure established by this Act. Article 66 (1) and (2) herein shall apply upon determination of the tax financial result.Declaring of Tax on Last Tax PeriodArticle 162. (1) The tax return on the last tax period, determined under Article 161 (1) herein, shall be submitted on the date of submission of the motion for expungement together with a copy of the said motion.(2) The tax return on the last tax period, as determined under Article 161 (2) herein, shall be submitted by the holder of the position of trustee in bankruptcy within thirty days after the date of expungement of the taxable person together with a copy of the judgement of court on the expungement.(3) The tax return on the last tax period, as determined under Article 161 (3) herein, shall be submitted on the date of discontinuance of the activity.(4) Where the date of submission of the motion for expungement upon liquidation or the date of expungement upon bankruptcy, as the case may be, or the discontinuance of the activity of a permanent establishment is before the 31st day of March and the annual tax return for the last preceding year has not been submitted, the taxable person or the holder of the position of trustee in bankruptcy shall submit the said return within the time limits referred to in Paragraphs (1), (2) and (3).(5) Where the date of dissolution and the date of submission of the motion for expungement upon liquidation, or the date of expungement upon bankruptcy, as the case may be, are in one and the same year, the financial statement prepared at the date of dissolution and the financial statement prepared at the date of submission of the motion for expungement or at the date of expungement, as the case may be, shall be submitted with the tax return referred to in Paragraphs (1) and (2).Remittance of Tax on Last Tax PeriodArticle 163. (1) The corporation tax due on the last tax period, determined under Article 161 (1) herein, shall be remitted on or before the date of submission of the motion for expungement of the taxable person. The said tax shall be final.(2) In the cases referred to in Article 161 (2) herein, the corporation tax due on the last tax period shall be remitted on or before the date of expungement.(3) In the cases referred to in Article 161 (3) herein, the corporation tax due on the last tax period shall be remitted on or before the date of discontinuance of activity. The said tax shall be final.(4) Where the date of submission of the motion for expungement upon liquidation or the date of expungement upon bankruptcy or the discontinuance of activity of a permanent establishment is before the 31st day of March and the corporation tax for the preceding year has not been remitted, the taxable person shall remit the corporation tax for the preceding year within the time limits referred to in Paragraphs (1), (2) and (3).Tax Treatment upon Continuation of Activity after Date of Submission ofMotion for Expungement by Taxable Person Dissolved through LiquidationArticle 164. (1) Any taxable person, dissolved through liquidation, which continues the activity thereof after submission of a motion for expungement, shall fulfil the obligations thereof according to the standard procedure established by this Act for the period from the date of submission of the motion for expungement until the date of expungement, inter alia declaring and remitting the corporation tax due. The liquidator shall incur solidary liability with the taxable person for the tax liabilities of the said person which have arisen in connection with the continuation of activity.(2) The last period for tax purposes in the cases referred to in Paragraph (1) shall commence on the 1st day of January of the year in which the expungement was effected and shall end on the date of expungement or shall commence on the date of submission of the motion for expungement and shall end on the date of expungement, when the said two dates are in one and the same year.(3) The taxable person shall be liable to corporation tax in respect of the tax profit realized during the last tax period under Paragraph (2) according to the standard procedure established by this Act. The said tax shall be final.(4) The tax return on the last period for tax purposes in the cases referred to in Paragraph (1) shall be submitted by the holder of the position of liquidator within thirty days after the date of expungement of the taxable person together with a copy of the judgment of court on the expungement. Where the date of expungement is before the 31st day of March and the annual tax return on the preceding year has not been submitted, the holder of the position of liquidator shall submit the said return within the time limit referred to in sentence one.(5) The corporation tax due for the last period for tax purposes in the cases referred to in Paragraph (1) shall be remitted on or before the date of expungement. Where the date of expungement is before the 31st day of March and the corporation tax for the preceding year has not been remitted, the taxable person shall remit the corporation tax for the preceding year within the time limit referred to in sentence one.Tax Treatment upon Distribution of Share in Liquidation SurplusArticle 165. (1) The assets distributed as a share in a liquidation surplus at the time of distribution for tax purposes shall be considered as having been sold by the taxable person at market prices and shall be written off.(2) In the cases referred to in Paragraph (1), upon determination of the tax financial result, the accounting financial result shall be credited with the profit and shall be debited with the loss arrived at as a difference between the market price of the assets and the accounting value thereof at the date of distribution of the share in a liquidation surplus. The temporary tax differences related to the said assets shall be recognized according to the standard procedure established by the Act. Article 66 (1) and (2) herein shall apply upon determination of the tax financial result.(3) Any accounting income and expenses, accounted for in connection with the distribution of a share in a liquidation surplus in the form of assets, shall not be recognized for tax purposes.Chapter Twenty-TwoREDUCTION, RETENTION AND EXEMPTION FROM LEVY OF CORPORATION TAXSection IGeneral DispositionsConcept of RetentionArticle 166. "Corporation tax retention" shall be the right of any taxable person not to remit to the executive budget the amounts of corporation tax as assessed according to the procedure established by this Act, which subsist in the patrimony of the taxable person and are spent for purposes prescribed by a law.General Requirement for Corporation Tax Retention or ReductionArticle 167. (1) Corporation tax shall be retained or reduced and, respectively, the accounting financial result shall be debited according to the procedure established by this Chapter, subject to the condition that the taxable person does not incur at the 31st day of December of the relevant year:1. any coercively enforceable public obligations, and2. any obligations for sanctions under effective penalty decrees related to violation of statutory instruments regarding public obligations, and3. any interest payments in connection with a failure to remit the obligations referred to in Items 1 and 2 when due.(2) Fulfilment of the requirement covered under Paragraph (1) shall be certified by the taxable person in the annual tax return.Accounting for Retained and Reduced Corporation TaxArticle 168. (1) The retained corporation tax and the corporation tax reduction according to the procedure established by this Chapter shall be accounted for in owners' equity.(2) (Repealed, SG No. 110/2007). Partial Recognition of Undistributable Income or ExpensesArticle 169. (1) The portion of the undistributable income or expenses, corresponding to the activities in respect of which the corporation tax retention is enjoyed, shall be arrived at by multiplying the total amount of the undistributable income or expenses by the proportion of the net sales accruing from the activities in respect of which the corporation tax retention is enjoyed and all net sales.(2) The undistributable amounts whereby the accounting financial result is adjusted, which cannot be related to any single specific activity and which are associated with the performance of an activity in respect of which a retention is enjoyed, shall be allocated to the activity in respect of which the corporation tax is retained, and the tax financial result in respect of the said activity shall be determined on the basis of the proportion referred to in Paragraph (1).Declaring of Retained or Reduced Corporation TaxArticle 170. Where any taxable person is allowed to retain or reduce corporation tax on different grounds according to the procedure established by this Chapter, the said person shall mandatorily declare in the annual tax return the sequence in which the said person has enjoyed the different grounds for corporation tax retention or reduction.Retention of Additionally Ascertained Corporation TaxArticle 171. (1) Any taxable person, who has been allowed to retain corporation tax in a prior year, shall furthermore have the right to retention in respect of the additionally ascertained undeclared corporation tax for the relevant prior year, subject to the condition that the said person fulfils all requirements provided for in this Chapter for the relevant corporation tax retention.(2) The time limit for fulfilment of the said requirements shall begin to run as from the date of ascertainment of the additional corporation tax.Cessation of Right to RetentionArticle 172. (1) The right to reduction or retention according to the procedure established by this Chapter shall cease upon transformation of a taxable person, with the exception of transformation through change of the legal form according to the procedure established by Article 264 of the Commerce Act, as well as upon transfer of an enterprise under Article 15 of the Commerce Act.(2) Paragraph (1) shall furthermore apply upon restructuring of cooperative organizations.Non-fulfilment of RequirementsArticle 173. (1) Where any requirements of this Chapter for subsequent use (spending) of retained corporation tax are not fulfilled, the said tax shall be due according to the standard procedure established by this Act for the year for which the said tax applies.(2) Paragraph (1) shall not apply where, in the cases of transformation, the receiving companies or newly formed companies fulfil the obligations of the transferring companies in compliance with the terms and procedure established by this Chapter, referring to the transferring companies. In the cases referred to in sentence one, the receiving companies or newly formed companies shall incur solidary liability for the retained corporation tax of the transmitting companies.(3) Paragraph (2) shall furthermore apply upon restructuring of cooperative organizations.Section IIExemption from Levy of Corporation TaxCollective Investment Schemes and Investment Companiesof Closed-End TypeArticle 174. Any collective investment scheme, which has been admitted to public offering in the Republic of Bulgaria, and any licensed investment company of the closed-end type under the Public Offering of Securities Act, shall be exempt from the levy of corporation tax.Special Purpose Investment CompaniesArticle 175. Any special purpose investment company under the Special Purpose Investment Companies Act shall be exempt from the levy of corporation tax.Bulgarian Red CrossArticle 176. The Bulgarian Red Cross shall be exempt from the levy of corporation tax.Section IIIGeneral Tax ReliefsTax Incentives upon Hiring of Unemployed PersonsArticle 177. (1) Any taxable person shall have the right to debit the accounting financial result thereof upon determination of the tax financial result, where the said person has hired a person under an employment relationship for not less than twelve successive months who, at the time of the hiring thereof, was:1. registered as unemployed for more than one year, or2. a registered unemployed person who had attained the age of 50 years, or3. an unemployed person of reduced working capacity.(2) The debiting shall be performed by the amounts paid for labour remuneration and the contributions remitted for the account of the employer to the public social insurance funds and the National Health Insurance Fund during the first twelve months after the hiring. The said debiting shall be performed on a single occasion during the year wherein the twelve-month period lapses.(3) Debiting shall not be performed in respect of any amounts received under the Employment Promotion Act.(4) Debiting shall not be performed where tax relief under Article 192 herein has been enjoyed in respect of the persons hired.Enterprises Hiring People with DisabilitiesArticle 178. (1) Any legal person, which is a specialized enterprise or a cooperative within the meaning given by the Integration of Persons with Disabilities Act, which as at the 31st day of December of the relevant year, is affiliated to the nationally representative organizations of and for people with disabilities, shall be allowed to retain 100 per cent of the corporation tax due there from if:1. not less than 20 per cent of the total number of employees are blind and visually impaired persons;2. not less than 30 per cent of the total number of employees are hearing-impaired persons;3. not less than 50 per cent of the total number of employees are people with other disabilities.(2) The legal persons referred to in Paragraph (1) shall be allowed to retain the corporation tax due there from in proportion to the number of people with disabilities or occupational rehabilitees to the total of number of employees, where the conditions for the number of hired persons under Paragraph (1) are not fulfilled.(3) Retention shall be admissible where the tax retained is spent entirely on integration of people with disabilities or on the maintenance and creation of jobs for occupational rehabilitees during the two years next succeeding the year for which the retention is enjoyed. The said resources shall be planned, spent and accounted for by ordinances of the national organizations of and for people with disabilities in consultation with the Minister of Finance.Agricultural ProducersArticle 179. (1) Any legal person, which is registered as an agricultural producer, shall be allowed to retain 60 per cent of the corporation tax due there from in respect of the tax profit derived thereby from unprocessed plant and animal produce, inter alia from apicture, sericulture, freshwater fisheries in man-made water bodies and hothouse horticulture.(2) Retention shall be admissible where the tax retained is invested in tax tangible and intangible fixed assets needed for performance of the activities specified in Paragraph (1) not later than before the end of the year next succeeding the year for which the retention is enjoyed.Air Traffic Services AuthorityArticle 180. (1) The Air Traffic Services Authority State-Owned Enterprise shall be allowed to retain 60 per cent of the corporation tax due there from in respect of the tax profit derived thereby from the core activity thereof.(2) Retention shall be admissible where the tax retained is invested in and spent on implementation of the European programmes for integration and harmonization of the national air traffic control systems of the European countries and on maintenance of the pecuniary reserve provided for in the Civil Aviation Act.Social and Health Insurance FundsArticle 181. (1) Any social and health insurance fund, which has been established by a law, shall be allowed to retain 50 per cent of the corporation tax due there from in respect of the economic activity thereof which is directly related or auxiliary to the implementation of the core activity thereof.(2) Retention shall be admissible where the tax retained is invested in the core activity not later than before the end of the year next succeeding the year for which the retention is enjoyed.Section IV(Heading amended, SG No. 110/2007, effective 1.01.2007) De Minimis or Regional State Aid in the Form of Tax ReliefsTaxable Persons which May Not Enjoy Tax ReliefsArticle 182. (1) (Redesignated from Article 182 and amended, SG No. 110/2007, effective 1.01.2007) A tax relief constituting regional aid shall not apply in respect of any taxable persons which:1. are active in the sectors of coal, steel, shipbuilding, synthetic fibres manufacture, fisheries, as well as production of agricultural products listed in Annex I to the Treaty establishing the European Community, for the respective activity, or2. (amended, SG No. 110/2007, effective 1.01.2007) are placed in liquidation, or are subject to rehabilitation proceedings, or3. are defined as enterprises in difficulty.(2) (New, SG No. 110/2007, effective 1.01.2007) A tax relief constituting de minimis aid shall not apply in respect of:1. any taxable persons which are active in the fishery and aquaculture sector according to Council Regulation (EC) No 104/2000 on the common organization of the markets in fishery and aquaculture products;2. any taxable persons which are active in the primary production of agricultural products listed in Annex I to the Treaty establishing the European Community; 3. any taxable persons which are active in the processing and marketing of agricultural products listed in Annex I to the Treaty establishing the European Community; 4. any taxable persons which are active in the coal sector according to Council Regulation (EC) No 1407/2002 on State aid to the coal industry;5. any enterprise in difficulty;6. the investment in any road freight transport vehicles, where provided by a taxable person performing road freight transport for hire or reward;7. investment in any assets used in export-related activities towards third countries or Member States.(3) (New, SG No. 110/2007, effective 1.01.2007) Any tax relief constituting regional aid may not be enjoyed, either, by a taxable person in respect of which any of the conditions under Paragraph (1) occurs during the period of implementation of the relevant initial investment.(4) (New, SG No. 110/2007, effective 1.01.2007) Any tax relief constituting de minimis aid may not be enjoyed, either, by a taxable person in respect of which a condition under Paragraph (2) occurs during the period of investment.Municipalities with Unemployment Rate Above National AverageArticle 183. (1) The municipalities where the rate of unemployment is by 35 per cent or more higher than the national average shall be designated annually by an order of the Minister of Finance on a motion by the Minister of Labour and Social Policy, which shall be promulgated in the State Gazette.(2) The municipalities where the rate of unemployment is by 50 per cent or more higher than the national average shall be designated annually by an order of the Minister of Finance on a motion by the Minister of Labour and Social Policy, which shall be promulgated in the State Gazette.(3) A municipality whereof the administrative centre is situated in another municipality shall be included in the list referred to in Paragraphs (1) and (2) on the basis of the average weighted level of unemployment in the relevant municipalities, determined on the basis of the size of the economically active population therein.Tax Relief for Carrying Out Manufacturing Activities in Municipalitieswith Unemployment Rate Above National AverageArticle 184. (Amended, SG No. 110/2007, effective 1.01.2007) Any taxable person shall be allowed to retain up to 100 per cent of the corporation tax [due there from] in respect of the tax profit derived thereby from the manufacturing activities carried out, including processing of materials supplied by customers, where the following conditions are simultaneously fulfilled:1. the taxable person carries out manufacturing activities solely in municipalities where the rate of unemployment for the year preceding the current year was by 35 per cent or more higher than the national average for the same period;2. (amended, SG No. 110/2007, effective 1.01.2007) the conditions covered under:(a) Article 188 - in the cases of de minimis aid, or(b) Article 189 - in the cases of regional aidare fulfilled.Specific Cases of RetentionArticle 185. (1) Where a municipality drops out of the scope of municipalities referred to in Article 183 herein as a result of an increase in employment, the person which has acquired the right to corporation tax retention shall preserve the said right during the next five successive years, reckoned from the year during which the region drops out of the list, subject to fulfilment of the rest of the conditions for retention.(2) Where the taxable person satisfied the conditions referred to in Item 1 of Article 184 herein in the year preceding the year in which the municipality dropped out of the scope of municipalities referred to in Article 183 herein but did not carry out manufacturing activity during the said period owing to performance of preparatory work and the said manufacturing activity commences during a subsequent year, the right to tax retention shall accrue as from the year of commencement of the manufacturing activity and shall be preserved during the next four successive years, subject to fulfilment of the rest of the conditions for retention.Investment Tax CreditArticle 186. (Amended, SG No. 110/2007, effective 1.01.2007) (1) Any taxable person shall have the right to reduce the corporation tax due there from for 2007 by up to 10 per cent of the value of the material and immaterial fixed assets acquired according to accounting legislation, where the conditions covered under Article 188 herein are fulfilled.(2) The right referred to in Paragraph (1) shall accrue subject to the condition that the assets acquired are used in an activity implemented in municipalities where the rate of unemployment for the year preceding the current year was by 50 per cent or more higher than the national average for the same period.Tax Relief for CooperativesArticle 187. (1) (Amended and supplemented, SG No. 110/2007, effective 1.01.2007) Any cooperative and any enterprise formed thereby, which is affiliated to a cooperative union within the meaning given by Chapter Four of the Cooperatives Act, shall be allowed to retain up to 60 per cent of the corporation tax [due there from] where the conditions for de minimis aid under Articles 188 herein are fulfilled.(2) Any cooperative and any enterprise formed thereby shall transfer 50 per cent of the corporation tax so retained to the investment funds of the cooperative unions within the time limits for crediting the said tax to Budget Revenue.(3) Annually, on or before the 31st day of March, the cooperative unions shall account to the Ministry of Finance for the raising and the spending of the corporation tax so retained on the assigned purpose. Should it be established that the conditions for retention have not been fulfilled, the tax retained which has accrued to the cooperative unions shall be refunded thereby to the executive budget with the interest due.Tax Relief Constituting De Minimis AidArticle 188. (Amended, SG No. 110/2007, effective 1.01.2007) (1) A tax relief constituting de minimis aid shall be available where the sum total of de minimis aids received by the taxable person during the last three years, including the current years, regardless of the form or source of acquisition of the said aids, does not exceed the lev equivalent of EUR 200,000, and in respect of taxable persons in the road transport sector, the lev equivalent of EUR 100,000, determined according to the official exchange rate of the lev against the euro. These ceilings shall apply regardless of whether the aid is financed in whole or in part by resources of the European Community. The sum total of de minimis aids received shall furthermore include the reduced or retained corporation tax due from the taxable person for the last three years, including the corporation tax which is subject to reduction or retention for the current year. The sum total of de minimis aids received shall not include the retained corporation tax in respect of which the conditions of Article 189 herein are fulfilled.(2) The retained tax under Article 184 herein and the part of the retained tax under Article 187 herein, which is not transferred to the investment funds of the cooperative unions, must be invested in material or immaterial fixed assets according to accounting legislation within four years after the beginning of the year for which the tax is retained.(3) The retained tax, invested in the assets referred to in Paragraph (2), and the reduction of the tax under Article 186 herein, shall be cumulated with other State aid approved by decision of the European Commission or authorized under Article 9 of the State Aids Act in respect of the said assets, up to the maximum permissible intensity of the aid determined by the National Regional State aid map (OJ No. C 73 of 30 March 2007).(4) The taxable person shall declare the amount of de minimis aids received, regardless of the form or source of acquisition of the said aids, during the last three years, including the current year, in the annual tax return for the year for which the corporation tax is retained.Tax Relief Constituting Regional AidArticle 189. (Amended, SG No. 110/2007, effective 1.01.2007) (1) Taxable persons must fulfil the following conditions for the grant of regional aid:1. the retained corporation tax must be invested in material and immaterial assets which form part of an initial investment;2. the initial investment must be made within four years after the beginning of the year for which the tax was retained;3. the initial investment must be made in municipalities where the rate of unemployment for the year of retention is by 35 per cent or more higher than the national average for the same period;4. the activity related to the initial investment must continue to be implemented in the respective municipality for a period of at least five years after the year of completion of the initial investment; this circumstance shall be declared annually by the annual tax returns until the lapse of the five-year period;5. at least 25 per cent of the value of the material and immaterial assets forming part of the initial investment must be self-financed or debt-financed by the taxable person; the corporation tax retained, as well as other resources containing any State aid element whatsoever, shall not be treated as self-financing or debt-financing;6. the material and immaterial forming part of the initial investment must have been acquired under market conditions not differing from the conditions between unrelated parties; the immaterial assets forming part of the initial investment must be depreciable assets;7. the value of the eligible expenditure on the immaterial assets forming part of the initial investment must not exceed 50 per cent of the sum total of eligible expenditure on the material and immaterial assets forming part of the initial investment;8. the immaterial assets forming part of the initial investment must be used solely in the activity of the taxable person and must be included in the assets thereof for a period of at least five years;9. the tax retained must not exceed 50 per cent of the present value of the material and immaterial assets forming part of the initial investment, determined at the 31st day of December of the year of retention; the interest rate for the purposes of determination of the present value of the initial investment shall be the reference interest rate for the year of retention set by the European Commission;10. the projected amount of the initial investment and the period of implementation thereof shall be declared by the annual tax return for the year for which the corporation tax is retained.(2) The retained corporation tax shall be cumulated with other State aid approved by decision of the European Commission or authorized under Article 9 of the State Aids Act in respect of the same initial investment, up to the maximum permissible intensity of the aid determined by the National Regional State aid map.(3) In the cases where the tax relief is granted for a large investment project which has received aid from all sources whereof the total value exceeds the lev equivalent of EUR 37.5 million, determined according to the official exchange rate of the lev against the euro, the tax relief may be enjoyed for the relevant year solely if:1. the taxable person has notified the revenue authority of the project at the latest before commencement of the implementation thereof;2. a positive decision from the European Commission has been received following a notification procedure provided for in Article 88 (3) of the Treaty establishing the European Community. The Minister of Finance shall inform the European Commission according to the procedures established in the State Aids Act. The taxable person shall be obligated to provide the Minister of Finance with the information necessary for the transmission of a notification to the European Commission.(4) Where Paragraph (3) must not be applied to a large investment project, the tax relief may be enjoyed solely if the adjusted regional aid ceiling for large investment project is complied with as laid down in the Decision of the European Commission approving a National Regional State aid map.(5) For the purposes of Paragraph (3), the value of the aid and the value of the eligible expenditure on the material and immaterial assets included in a large investment project shall be determined at present value at the date of notification of the European Commission according to the procedure established by the Article 88 (3) of the Treaty establishing the European Community. For the purposes of Paragraph (4), the value of the aid and the value of the eligible expenditure on the material and immaterial assets included in a large investment project shall be determined at present value at the date of commencement of the implementation of the project.Restrictions upon Enjoyment of Tax ReliefsArticle 190. (Amended, SG No. 110/2007, effective 1.01.2007) (1) A taxable person may not enjoy more than one tax relief under this Section during one and the same year.(2) The assets in which a tax retained according to Article 188 (2) herein is invested shall be excluded from the scope of the initial investment.Section VTax Reliefs Satisfying Requirements for Permissible State Aid forEmploymentTaxable Persons which May Not Enjoy Tax ReliefsArticle 191. The tax relief under this Section may not be enjoyed by any taxable persons which:1. carry out activities in the sectors of coal, steel, transport and shipbuilding, for the respective activity, or2. are subject to bankruptcy proceedings, are placed in liquidation, or are subject to rehabilitation proceedings, or3. are defined as enterprises in difficulty, or4. receive any aids to export-related activities, namely aids directly linked to the quantities exported, to the establishment and operation of a distribution network or to other current expenditure linked to export activity, or5. receive any aids contingent upon the use of domestic over imported goods.Tax Relief for Employment PromotionArticle 192. (1) Upon determination of the tax financial result, the accounting financial result may be debited with the compulsory social insurance contributions remitted for the current year for the account of the employer in respect of the newly created jobs, where the conditions covered under Article 193 herein are fulfilled. The said reduction shall be enjoyable on a single occasion in the year during which the persons are appointed.(2) The right referred to in Paragraph (1) shall accrue subject to the condition that the jobs have been created in municipalities where the rate of unemployment for the year preceding the current year is by 50 per cent or more higher than the national average for the same period.General ConditionsArticle 193. (1) Any taxable persons which apply this Section must fulfil the conditions for the grant of State aid for employment according to European Commission Regulation (EC) No 2204/2002, including:1. the average number of employees for the current year must have increased compared to the preceding year as a result of the newly created jobs, and persons registered as unemployed must be appointed to the newly created jobs under an employment contract;2. the newly created jobs must be maintained for a minimum period of three years;3. the State aid referred to in Article 192 herein, together with other State aids for employment in respect of the same newly created jobs, must not exceed 50 per cent of the relevant percentage according to the applicable regional aid map, as adopted by a Council of Ministers decree, of the cost of wages and compulsory social insurance contributions for the newly created jobs for two years;4. the State aid referred to in Article 192 herein, together with other regional aids and State aids for employment, must not exceed 50 per cent of the relevant percentage according to the applicable regional aid map, as adopted by a Council of Ministers decree, of the sum total of the initial investment and the cost of wages and compulsory social insurance contributions for newly created jobs, related to the initial investment, for two years.(2) Where the State aid for employment referred to in Article 192 herein, including other State aids for employment, exceeds BGN 30 million for three years, the reduction shall be valid where the conditions under this Section are fulfilled and the taxable person has been granted a permissibility authorization by the European Commission under the terms and according to the procedure established by the State Aids Act.(3) The fulfilment of the conditions under this Section shall be declared by the annual tax return.PART THREEWITHHOLDING TAXChapter Twenty-ThreeSCOPE OF TAXATIONWithholding Tax on Income from Dividend and Shares in LiquidationSurplusArticle 194. (1) A tax withheld at source shall be levied on any dividends and shares in a liquidation surplus, as distributed (apportioned) by any resident legal person in favour of:1. any non-resident legal persons, with the exception of the cases where the dividends accrue to a non-resident legal person through a permanent establishment in the country;2. any resident legal persons which are not merchants, including any municipalities.(2) The tax referred to in Paragraph (1) shall be final and shall be withheld by the resident legal persons distributing dividends or shares in a liquidation surplus.(3) Paragraph (1) shall not apply where the dividends and shares in a liquidation surplus are distributed in favour of:1. any resident legal person which participates in the capital of the company as a representative of the State;2. any common fund.Tax Withheld on Income of Non-resident PersonsArticle 195. (1) Any income which has its source inside the country, referred to in Article 12 (2), (3), (5) and (8) herein, accruing to any non-resident legal person, were not accruing through a permanent establishment, shall be subject to levy of a tax withheld at source which shall be final.(2) The tax referred to in Paragraph (1) shall be withheld by the resident legal persons, the sole traders or the permanent establishments in the country which charge the income to the non-resident legal persons, with the exception of the income referred to in Article 12 (3) and (8) herein.(3) Where the payer of the income is not a taxable person covered under Article 2 herein and in respect of the income referred to in Article 12 (3) and (8) herein, the tax shall be withheld from the recipient of the income.(4) Paragraphs (1) and (2) shall furthermore apply where the non-resident person, acting through a permanent establishment, charges the said income to other divisions of the enterprise thereof situated outside the country, with the exception of the cases where accounting expenses are not recognized for tax purposes or accounting expenses or assets, accounted for at the costs actually incurred (cost price) are recognized for tax purposes of a permanent establishment.(5) The prepayments in connection with the income referred to in Paragraph (1) shall not be subject to levy of a tax withheld at source.Securities Traded on Regulated MarketArticle 196. Any income from disposition of shares in public companies, negotiable rights attaching to shares in public companies, and shares in and units of collective investment schemes, shall not attract a tax withheld at source where the said disposition is effected on a regulated Bulgarian securities market.Chapter Twenty-FourTAXABLE AMOUNTTaxable Amount for Withholding Tax on Dividend IncomeArticle 197. The taxable amount for assessment of the tax withheld at source on any income accruing from dividends shall be the gross amount of the dividends distributed.Taxable Amount for Withholding Tax on Liquidation Surplus ShareArticle 198. The taxable amount for assessment of the tax withheld at source on any income accruing from shares in a liquidation surplus shall be the difference between the market price of the claim by the relevant shareholder or member and the documented cost of acquisition of the shares or interests thereof.Taxable Amount for Withholding Tax on Non-resident Persons' IncomeArticle 199. (1) The taxable amount for assessment of the tax withheld at source on the income referred to in Article 195 (1) herein shall be the gross amount of the said income, with the exception of the cases referred to in Paragraphs (3) and (4).(2) The taxable amount for assessment of the tax withheld at source on any income accruing to any non-resident legal persons from interest payments under financial lease contracts, in the cases where the contract does not stipulate the rate of the said interest, shall be determined on the basis of the market rate of interest.(3) The taxable amount for assessment of the tax withheld at source on any income accruing to any non-resident legal persons from acts of disposition of financial assets shall be the positive difference between the selling price of the said assets and the documented cost of acquisition thereof.(4) The taxable amount for assessment of the tax withheld at source on any income accruing to any non-resident legal persons from disposition of immovable property shall be the positive difference between the selling price and the documented cost of acquisition of the immovable property.(5) The selling price, for the purposes of Paragraphs (3) and (4), shall be the valuable consideration under the transaction, including the reward other than money, which shall be valued at market prices as at the date of charging of the income.(6) Upon termination of a financial lease contract before expiry of the term of validity thereof and without passing of the right of ownership to the relevant assets which are subject of the contract, the non-refundable lease payments shall be considered income from use of property acquired by the non-resident legal person at the time of termination. The withholding tax on the income from interest payments, remitted until the time of termination of the lease contract, shall be deducted from the withholding tax due on income from use of the property.Chapter Twenty-FiveRATES OF TAXRates of TaxArticle 200. (1) (Amended, SG No. 110/2007) The rate of tax on the income covered under Article 194 herein shall be 5 per cent.(2) The rate of tax on the income covered under Article 195 herein shall be 10 per cent.Chapter Twenty-SixDECLARING OF TAXDeclaring of Tax. Certificate on Tax Withheld onNon-resident Persons' IncomeArticle 201. (1) (Supplemented, SG No. 110/2007) The persons, who or which have withheld and remitted the tax at source under Articles 194 and 195 herein, and the persons who or which have charged the income referred to in Article 12 (3) and (8) herein, shall declare this circumstance to the National Revenue Agency territorial directorate exercising competence over the place of registration or over the place where the payer of the income is registrable, by means of a declaration in a standard form. Any such declaration shall be submitted each quarter not later than at the end of the month next succeeding the quarter during which the tax was remitted.(2) Where the payer of the income is not registrable, the tax declaration shall be submitted to the Sofia Territorial Directorate of the National Revenue Agency.(3) In the cases where the payer of the income is a person who or which is not obligated to withhold and remit a tax, the declaration shall be submitted by the recipient of the income before submission of the request for the issuance of a certificate referred to in Paragraph (4) or within the time limit referred to in Paragraph (1), whichever of the two is the earlier.(4) A certificate on the tax remitted according to the procedure established by this Act on income accruing to non-resident legal persons shall be issued in a standard form at the request of the interested party. Any such certificate shall be issued by the National Revenue Agency territorial directorate where the tax is subject to remittance.Chapter Twenty-SevenTAX REMITTANCETax RemittanceArticle 202. (1) Any payers of income withholding the tax at source under Article 194 herein shall be obligated to remit the taxes due as follows:1. within three months after the beginning of the month next succeeding the month during which a decision was made on distribution of dividends or shares in a liquidation surplus: in the cases where the owner of the income is a resident of a State wherewith the Republic of Bulgaria has an effective convention for the avoidance of double taxation;2. not later than at the end of the month next succeeding the month during which a decision was made on distribution of dividends or shares in a liquidation surplus: in all other cases.(2) Any payers of income withholding the tax at source under Article 195 herein shall be obligated to remit the taxes due as follows:1. within three months after the beginning of the month next succeeding the month of charging of the income: in the cases where the owner of the income is a resident of a State wherewith the Republic of Bulgaria has an effective convention for the avoidance of double taxation;2. not later than at the end of the month next succeeding the month of charging of the income: in all other cases.(3) The tax due referred to in Paragraphs (1) and (2) shall be remitted to the relevant National Revenue Agency territorial directorate exercising competence over the place of registration or over the place where the payer of the income is registrable.(4) Where any payer of income referred to in Paragraph (2) is not a taxable person and in respect of any income referred to in Article 12 (3) and (8) herein, the tax shall be remitted by the recipient of the income within the time limit referred to in Paragraph (2), and the income shall be considered to be charged as from the date of receipt of the said income by the non-resident legal person. The tax due shall be remitted to the relevant National Revenue Agency territorial directorate exercising competence over the place of registration or over the place where the payer of the income is registrable. Where the payer of the income is not registrable, the tax shall be remitted to the Sofia Territorial Directorate of the National Revenue Agency.(5) Any overremitted tax shall be refunded by the National Revenue Agency territorial directorate whereto the tax is subject to remittance.LiabilityArticle 203. Where the tax referred to in Articles 194 and 195 herein has not been withheld and remitted according to the relevant procedure, the said tax shall be due solidarily by the persons which incur tax liability for the relevant income.PART FOURTAX ON EXPENSESChapter Twenty-EightGENERAL DISPOSITIONSScope of TaxationArticle 204. A tax on expenses shall be levied on the following expenses supported by documents:1. any business entertainment expenses;2. any expenses on fringe benefits provided in kind to factory and office workers and to persons hired under a management and control contracts (hired persons); the expenses on fringe benefits provided in kind shall furthermore include:(a) the expenses on contributions (premiums) for voluntary retirement and health insurance and voluntary unemployment and/or vocational-training insurance, and/or life assurance and life assurance linked to an investment fund;(b) the expenses on food vouchers;3. the expenses related to operation of means of transport where used to service management operations.Expenses on Fringe Benefits Not Provided in KindArticle 205. Any expenses on fringe benefits, which are not provided in kind and which constitute income of a natural person, shall be taxed under the terms and according to the procedure established by the Income Taxes on Natural Persons Act.Recognition of Tax on ExpensesArticle 206. (1) The expense and the tax thereon shall be recognized for tax purposes in the year of charging and shall not form a temporary tax difference according to the procedure established by Chapter Eight herein.(2) The tax on expenses shall be final.Taxable PersonsArticle 207. (1) Taxable persons in respect of the tax referred to in Items 1 and 3 of Article 204 herein shall be the persons which are subject to levy of corporation tax.(2) Taxable persons in respect of the tax referred to in Item 2 of Article 204 herein shall be all employers or commissioning entities under management and control contracts.Exemption from Taxation of Fringe Benefit Expenses on Contributionsand Premiums for Supplementary Social Insurance and Life AssuranceArticle 208. No tax shall be levied on any expenses on fringe benefits referred to in Item 2 (a) of Article 204 herein not exceeding the amount of BGN 60 per month per hired person, where the taxable persons do not incur any coercively enforceable public obligations at the time of incurrence of the expenses.Exemption from Taxation of Fringe Benefit Expenses on Food VouchersArticle 209. (1) No tax shall be levied on any expenses on fringe benefits referred to in Item 2 (b) of Article 204 herein not exceeding the amount of BGN 40 per month, provided in the form of food vouchers to each hired person, where the following conditions are simultaneously fulfilled:1. (amended, SG No. 110/2007) the agreed basic monthly remuneration of the person in the month of provision of the vouchers is not lesser than the average monthly agreed basic remuneration of the said person for the last preceding three months;2. the taxable person does not incur any coercively enforceable public obligations at the time of provision of the vouchers;3. the vouchers are provided to the taxable person by a person which has obtained authorization to carry on operator business from the Minister of Finance on the basis of a competitive procedure;4. the amounts on the vouchers as provided, paid by the taxable person to the operator, may be used solely for settlement through bank transfer with the persons which have concluded a contract for provision of services with the operator, or for refunding to the taxable person, up to the amount of the nominal value of the vouchers, in the cases where the said vouchers have not been used;5. the persons wherewith the operator has concluded a contract for provision of services to the hired persons are registered under the Value Added Tax Act .(2) The right to carry on operator business shall be limited to a person which has obtained authorization from the Minister of Finance and which:1. has a paid up share (registered) capital of at least BGN 2 million at the time of submission of the documents for the grant of authorization;2. is registered under the Value Added Tax Act;3. is not subject to bankruptcy proceedings or is not placed in liquidation;4. does not incur any coercively enforceable public obligations at the time of submission of the documents for authorization;5. is represented by any persons who:(a) have not been convicted of a premeditated offence at public law, unless rehabilitated;(b) have not been members of a supervisory body or a management body of any corporation dissolved through bankruptcy during the two years last preceding the date of the judgment on institution of bankruptcy proceedings, if any creditors have been left unsatisfied.(3) The authorization shall be granted by the Minister of Finance on the basis of a competitive procedure and shall be withdrawn when the person ceases to satisfy the requirements covered under Paragraph (2).(4) The grant, refusal of authorization or withdrawal of an authorization granted shall be effected by a written order of the Minister of Finance.(5) Any refusal to grant an authorization and any withdrawal of an authorization shall be appealable according to the procedure established by the Administrative Procedure Code.(6) The procedure for the conduct of a competitive procedure, for the grant and withdrawal of an authorization, the terms and a procedure for the printing of vouchers, the number of vouchers issued, the terms for organization and control of the conduct of operator business shall be established by an ordinance of the Minister of Labour and Social Policy and the Minister of Finance.Exemption from Taxation of Fringe Benefit Expenses on Transportationof Factory and Office Workers and Persons Hired under Managementand Control ContractArticle 210. (1) No tax shall be levied under Item 2 of Article 204 herein on any expenses on fringe benefits incurred on transportation of factory and office workers and of persons hired under a management and control contract from the place of residence to the place of work and back.(2) Paragraph (1) shall not apply where any such transportation is carried out by passenger car or by extra bus services.(3) Paragraph (1) shall furthermore apply where the transportation of factory and office workers is carried out by passenger car to inaccessible and remote areas and the taxable person cannot ensure the implementation of the activity thereof without incurrence of the expense. For more information visit www.solicitorbulgaria.com id: 333 Mon, 04 Aug 2008 06:23:41 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-corporate-income-tax-act-part-2 http://web.solicitorbulgaria.com/index.php/bulgarian-corporate-income-tax-act-part-2 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/CORPORATE_INCOME_TAX_ACT1.JPG EUR http://web.solicitorbulgaria.com/index.php/bulgarian-corporate-income-tax-act-part-2 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) PART ONEBASIC PROVISIONSChapter OneGENERAL PROVISIONSArticle 1. This Act shall regulate the customs administration structure and organization and the activities performed by its authorities.Article 2. (1) (Amended and supplemented, SG No. 63/2000) Customs authorities' activities shall consist of performance of customs supervision and control on the country's customs territory upon the imports, exports and transit of goods to, from and through the Republic of Bulgaria, the collection of customs duties, the imposition of administrative penal provisions and investigations of crimes in the cases, under the terms and procedures provided for in the Criminal Procedure Code. (2) Customs supervision shall be a set of actions undertaken with the purpose of ensuring compliance with the customs legislation and with other provisions applicable to goods subject to customs supervision.(3) Customs control shall be the performance by the customs authorities of specific acts such as examinations of goods,… For more information visit http://www.solicitorbulgaria.com id: 336 PART ONEBASIC PROVISIONSChapter OneGENERAL PROVISIONSArticle 1. This Act shall regulate the customs administration structure and organization and the activities performed by its authorities.Article 2. (1) (Amended and supplemented, SG No. 63/2000) Customs authorities' activities shall consist of performance of customs supervision and control on the country's customs territory upon the imports, exports and transit of goods to, from and through the Republic of Bulgaria, the collection of customs duties, the imposition of administrative penal provisions and investigations of crimes in the cases, under the terms and procedures provided for in the Criminal Procedure Code. (2) Customs supervision shall be a set of actions undertaken with the purpose of ensuring compliance with the customs legislation and with other provisions applicable to goods subject to customs supervision.(3) Customs control shall be the performance by the customs authorities of specific acts such as examinations of goods, transport, trade, accounting and other documents of natural and legal persons, of vehicles, luggage and other goods carried through the state border, other such actions with a view of ensuring compliance with customs legislation and observance of other provisions applicable to goods subject to customs supervision, as well as collection of customs duties.Article 3. Persons and vehicles, as well as goods carried by, or on, them shall cross the state border through the border control crossing points and shall be subject to customs supervision and control, which shall be carried out in places specially designated for this purpose. The procedure under which customs supervision and control shall be carried out shall be established in the Regulations on the Application of this Act, referred to hereinafter as "the Regulations."Article 4. (1) (Amended and supplemented SG No. 37/2003) Any person shall be obliged to inform the customs authorities forthwith about any goods left with, found by or seized by them, including vehicles, known or supposed to be imported without performing the respective customs formalities. These goods shall be presented to the customs authorities.(2) (Amended SG No. 37/2003) If the owner of goods left, found or seized, including vehicles, is a foreign person, an unknown person or a native person whose address is unknown and claims them within six months from the day of presenting them before the customs authorities, the person shall perform the respective formalities for obtaining a customs clearance of the goods after paying all the expenses incurred by for the customs office in relation to them.(3) Goods left, found or seized, including vehicles, shall be deemed abandoned in favour of the state when:1. (amended SG No. 37/2003) the owner is a foreign person, an unknown person or a native person whose address is unknown and six months have elapsed from the day of their presentation before the customs authorities;2. (amended SG No. 37/2003) the owner is a native person with a known address in the country and three months have elapsed since the day of delivering the notice of the customs office on moving the goods. The notice shall be sent within one week from the day of presenting the goods before the customs authority.Article 5. (1) (Supplemented SG No. 45/2005) Any person, including state authorities within their competence, shall support the customs authorities in the performance of their activities. They shall be obliged within 14 days after receiving a request from the customs authorities to provide information on the facts and circumstances specified therein.(2) No one shall be permitted to dispose with goods under customs supervision without the knowledge and the permission of the customs authorities.(3) (New SG No. 37/2003) Actions performed in violation of Paragraph 2 shall be null and void in relation to the customs authorities.Article 6. Any person related to the operations on importing, exporting or transiting goods, shall be obliged, for the purpose of customs supervision and control, to present to the customs authorities, on their demand and in a term specified by them, all information and documents on the specific operations regardless of their carrier.Chapter TwoCUSTOMS ADMINISTRATIONSection IStructure and OrganizationArticle 7. (Amended, SG No. 83/1999 and SG No. 63/2000) (1) The Customs administration shall be a centralized administrative structure, organized within the Customs Agency under the Minister of Finance, which shall be a legal person financed by the state budget, with a seat in Sofia.(2) The Customs Agency shall be structured into a Central Customs Directorate and regional customs directorates. The general and the specialized administrations within the Central Customs Directorate shall be organized in departments.(3) The regional customs directorate shall be structured as a regional customs department and customs offices. The general and the specialized administrations within the regional customs department shall be organized in departments.(4) The customs office shall be structured as a territorial customs office and customs bureaus and/or customs posts. The general and the specialized administrations within the customs office shall be organized in departments.(5) The Central Customs Directorate shall organize, manage, control and report on the activities of the customs administration, and shall perform customs activities.(6) The regional customs department shall organize, manage, control and report on the activities of the customs offices included in the structure of the regional customs directorate, shall perform customs activities, and shall provide information services to the customs offices and to the Central Customs Directorate.(7) The territorial customs office shall organize, manage, control and report on the activities of the customs bureaus and/or customs posts and jointly with them shall be the main executor of customs supervision and control.(8) (Supplemented, SG No. 91/2005) The general management and control over the activities of the customs administration shall be performed by the Minister of Finance or by one of the Deputy-Ministers designated by him. Officials from the inspectorate to the Minister of Finance shall be entitled to access to any data and documents in the customs administration in connection with the inspections conducted by them.(9) The Customs Agency may publish specialized printed editions.Article 8. (Amended, SG No. 63/2000) Regional customs directorates, customs offices, customs bureaus and customs posts shall be created, transformed and closed down by the Minister of Finance on a proposal of the Director of the Customs Agency. The Director of the Customs Agency shall define their structure and staff number within the framework of the total staff number of the Customs Agency.Article 9. (Amended, SG No. 63/2000) (1) The Customs Agency shall be managed and represented by a Director, who shall be appointed and discharged by the Minister of Finance, in coordination with the Prime Minister.(2) In performing his functions the Director of the Customs Agency shall be assisted by Deputy-Directors. The number of Deputy Directors shall be specified in the Agency's Rules of Organization.(3) The Deputy-Directors of the Customs Agency shall be appointed and discharged by the Minister of Finance upon a proposal submitted by the Agency's Director.(4) The structure of the Customs Agency shall include an inspectorate subordinated directly to the Agency's Director, which will exercise control over the activities of the customs administration.Article 10. (1) Any legally able Bulgarian citizen, who has never been convicted for a premeditated crime of a general nature, and has never been legally debarred from the right to occupy such a position, and meets the requirements for work in the customs administration, may be appointed as customs officer.(2) Customs officers shall be prohibited:1. to be sole traders, unlimited partners or to participate personally or through proxies in the management of commercial companies, cooperatives or other economic organizations;2. to sign additional employment contracts, save as associates in research institutes and lecturers in educational establishments.3. (new, SG No. 37/2003, amended SG No. 95/2003) to be in a hierarchic relationship of management and control with a spouse, a direct relative without limitation, on a collateral line up to the fourth degree inclusive and by marriage up to the fourth degree inclusive.(3) (New SG No. 63/2000) Customs officers occupying their position under a regular labour contract need to comply also with the requirements under Article 7 of the Civil Servants Act. (4) (New SG No. 37/2003) On appointment customs officers shall sign a sworn statement on the circumstances under Paragraphs 1 and 2.(5) (New SG No. 37/2003, supplemented SG No. 38/2004) On appointment and dismissal and every year by 31 May at the latest customs officers shall be obliged to declare before the Director of the Customs Agency their property state as well as the property state of their spouses and minor children on a statement form approved by the Minister of Finance.(6) (New, SG 37/2003, amended, SG No. 105/2005) On a written request of the Director of the Customs Agency the authorities of the National Revenue Agency shall provide information on the income and property of customs officers.(7) (New SG No. 37/2003) The provisions of the Personal Data Protection Act shall apply in relation to the protection and the access to the data under Paragraphs 5 and 6.(8) (New SG No. 37/2003) Incompatibility under Paragraphs 1 and 2 as well as the failure to submit the statement under Paragraph 5 shall be grounds for unilateral termination of labour or official relations with the customs officer without prior notice.Article 11. (Amended, SG No. 63/2000) (1) The Council of Ministers, upon proposal submitted by the Minister of Finance, shall adopt Rules of Organization of the Customs Agency and shall determine the staff number in the Agency and in the Central Customs Directorate.(2) The Rules of Organization of the Customs Agency may stipulate additional requirements for occupying positions in the customs administration.(3) The Minister of Finance, upon proposal submitted by the Director of the Customs Agency, shall approve Rules of Organization and Operation of the Regional Customs Directorates.Article 12. The customs authorities shall collect fees for additional services rendered and in cases as defined in the Regulations. The fees shall not account as customs duties. The amount of such fees shall be specified by the Council of Ministers.Article 13. (Amended SG No. 63/2000) The Customs Agency shall collect revenues from contracts concluded with natural or legal persons for activities approved by the Minister of Finance within the zones of the border checkpoints and other places where these activities require additional customs control.Article 14. (Amended, SG No. 83/1999) (1) (Amended, SG No. 63/2000) The Customs Agency shall be the administrator of:1. the revenues under Article 12;2. the revenues under Article 13;3. ninety per cent of the revenues under Article 240, Item 2;4. (amended, SG No. 37/2003) the revenues from the use of real estate that is owned by the state and from provision of information;5. (supplemented, SG No. 45/2005) twenty per cent of the fines and pecuniary sanctions collected for customs and currency violations; twenty per cent of the fines collected for customs and currency violations;6. (amended, SG No. 63/2000, effective 1.01.2000) revenues from printed editions under Article 7, Item 9;7. incomes from the holiday facilities;8. (new, SG No. 63/2000, effective 1.01.2000, supplemented SG No. 37/2003) the revenues under Article 17, Item 3 of the Foreign Exchange Act and under Article 251, Paragraph 2 of the Criminal Code; 9. (new, SG No. 63/2000, effective 1.01.2000, amended, SG No. 59/2007) the payments under Article 78, Paragraphs 6 and 8 of the Code of Civil Procedure. (2) (Amended, SG No. 63/2000, effective 1.01.2001, supplemented, SG No. 109/2007) The Minister of Finance, upon proposal of the Director of the Customs Agency, shall determine the employees who are to receive additional remuneration for their participation in prevention of customs and foreign exchange violations and offences, for their participation in detection of excise legislation and for material incentives.(3) (New, SG No. 63/2000, effective 1.01.2001) The funds under Paragraph 2 shall amount to twenty five per cent of the annual amount of the funds for salaries in the budget of the Customs Agency for the respective year and shall be incorporated in the State Budget Act for the same year.(4) (New, SG No. 63/2000, effective 1.01.2001) The procedure for determining the individual amount of the additional remuneration under Paragraph 2 shall be established by an ordinance issued by the Minister of Finance.Section IIFunctions and ResponsibilitiesArticle 15. (1) The customs administration shall:1. participate in the development the customs policy of the Republic of Bulgaria and shall implement it;2. participate in the development and implementation of international agreements related to customs activity;3. maintain international customs relations;4. collect, process, analyse, file and provide information concerning customs activity and develop customs statistics. The terms and procedure for the performance of these activities shall be set forth in an ordinance issued by the Minister of Finance;5. ensure training and retraining of customs officers;6. (new, SG No. 37/2003) insure customs officers against accidents and with life insurance at the expense of its own budget.(2) The customs authorities shall:1. perform customs supervision and control on goods, vehicles and persons in the zones of the border checkpoints and throughout the state's customs territory;2. calculate, collect or require security for duties levied on imports, exports or transit of goods;3. enforce, within their competence, the tariff and trade policy measures of the Republic of Bulgaria;4. protect, within their competence, the economic interests of the country;5. (amended and supplemented SG No. 63/2000, SG No. 37/2003) conduct customs intelligence and investigation for combating customs and currency violations;6. organize and perform prevention and detection of the illegal traffic of drugs and precursors;7. exercise foreign exchange control within the limits of their competence assigned by law;8. issue decisions on the application of customs rules;9. (new, SG No. 63/2000, repealed, SG No. 86/2005) 10. (new, SG No. 63/2000) perform activities related to establishing administrative violations and imposition of administrative sanctions;11. (new, SG No. 63/2000) participate in operative and investigative activities jointly with bodies of the Ministry of the Interior, under the terms and procedures of the Ministry of the Interior Act; 12. (new, SG No. 37/2003) apply border control measures for protecting intellectual property rights.(3) (New, SG No. 63/2000) The terms and procedures of interaction between the customs bodies and the bodies of the Ministry of the Interior for prevention and detection of customs and foreign exchange violations shall be stipulated by a joint instruction of the Minister of Finance and the Minister of the Interior.(4) (Previous (3), SG No. 63/2000) The customs authorities shall perform other activities as assigned by law.Section IIIPowers of the Customs AuthoritiesArticle 16. (1) While performing their professional duties customs officers shall be entitled:1. to conduct inspections related to customs supervision and control of goods, vehicles and persons in the zones of border checkpoints and throughout the customs territory of the country;2. to undertake the necessary measures, allowed by law, for performing customs control;3. to require the presentation or delivery of goods, documents, data or other information carriers related to customs supervision and control;4. to require presentation of personal identification documents;5. to require written or oral explanations;6. to perform follow-up customs control of goods and documents related to importation, exportation and transit;7. to collect sums: for customs duties for imported and exported goods; for unfulfilled liabilities and guarantees; for payment of the equivalent amount for goods confiscated in favour of the state when they are missing or expropriated and for any state receivables, collectable by the customs authorities;8. to levy, according to the procedure established by the law, distrait and injunctions for securing due customs duties and other state receivables collectable by them;9. to carry out individual searches of persons crossing the state border;10. (amended, SG No. 63/2000, amended and supplemented, SG No. 45/2005) to conduct searches and seize goods that have been or should have been subject to customs supervision and control and related documentation in offices, official and other premises, as well as personal searches of the persons located therein, in compliance with the procedures of the Criminal Procedure Code; 11. to execute controlled deliveries jointly with the competent authorities of the Ministry of the Interior and with the permission of the respective prosecution office.(2) (Repealed, SG No. 63/2000).(3) The customs officers shall be entitled to carry firearms and use them in cases of inevitable self-defence as a last resort;(4) (New SG No. 76/2002) When exercising the powers under Paragraph 1, Item 1 specialised control bodies of the Customs Agency shall be entitled to stop vehicles inside the country under terms and procedures pursuant to Article 15, Paragraph 3;(5) (New SG No. 76/2002, amended, SG No. 105/2005) On a written request of the Director of the Customs Agency, the directors of regional customs directorates and the heads of customs offices the authorities of the National Revenue Agency shall provide information on follow-up transactions related to the quantity, type, value and origin of goods subject to import-export operations, on sums subject to payment or reimbursement under the Value Added Tax Act and the Excise Tax Act, as well as on violations established by the internal revenue bodies, perpetrated by persons engaging in import and export activities;(6) (New SG No. 37/2000, amended, SG No. 105/2005) The procedure and modalities for electronic exchange of information between the customs administration and the National Revenue Agency shall be specified in a joint instruction of the director of the Customs Agency and the executive director of the National Revenue Agency.(7) (New, SG No. 45/2005) When conducting inspections within the framework of follow-up control or in the course of a customs investigation for establishing customs liabilities or violations, when there is information on withholding facts and circumstances that are substantial for the inspection or the investigation as well as in case of hindering their conduct, the customs authorities may carry out searches and seizures under the procedure of the Criminal Procedure Code. In these cases the customs authorities conducting the inspection or the investigation shall have the powers of the authorities of pre-trial proceedings.(8) (New, SG No. 45/2005) The provisions of the Criminal Procedure Code shall apply also to the powers and procedural actions of customs authorities under Paragraph 1, Item 10 when conducting inspections under Paragraph 7 as well as concerning the rights and obligations of the inspected persons in relation to the grounds of the search and the seizure, the authorities that are carrying them out and the attending persons, as well as in relation to the protection of the inspected persons.Article 17. (1) While performing their professional duties the customs officers shall be obliged:1. to observe the organization of work at the customs office;2. to protect the property, rights and freedoms of persons;3. to present a customs sign and an official identification card;4. (supplemented, SG No. 63/2000) to wear uniform when this is required for the respective positions under the Rules of Organization of the Customs Agency;5. (new, SG No. 37/2003) to observe the norms of conduct of the customs officer approved with an order of the Minister of Finance;6. (amended and supplemented, SG 63/2000, renumbered from Item 5, SG No. 37/2003, supplemented, SG No. 91/2005) not to divulge circumstances and facts they have become aware of during or in relation to the performance of their official duties specified herein as official secret except on the request of a state body when provided by law at the request of the officials from the inspectorate to the Minister of Finance or of another customs body when performing its powers herein. The terms and procedures for providing information about circumstances and facts constituting official secret to another customs body shall be defined by the Director of the Customs Agency.(2) Violations of the duties under Paragraph 1 shall be subject to disciplinary sanctions.Article 17a. (New, SG No. 45/2005) (1) The customs authorities shall collect and process personal data for the purposes of customs supervision and control.(2) The administrator of the personal data shall be the Director of the Customs Agency who shall assign personal information processing to persons authorised by him/her under the terms and procedures of the Personal Data Protection Act. (3) Personal data collected and processed by the customs authorities may be provided to authorities of a foreign state in compliance with international agreements to which Bulgaria is a party under the terms and procedures of the Personal Data Protection Act. Chapter ThreeRIGHTS AND LIABILITIES OF PERSONSSection IRepresentationArticle 18. (1) Any person may be represented before the customs authorities for performing the actions and formalities laid down herein and in the statutory instruments for the implementation of this act, including by a customs agent.(2) The Regulations shall establish the terms and procedures applicable to performing representation by a customs agent.(3) The representative must be a native person, save in cases expressly specified herein.(4) The customs authorities shall require any person stating that he/she is acting as an agent to produce evidence in writing thereof.Section IIDecisions of the Customs AuthoritiesArticle 19. (1) When a person requests that the customs authorities take a decision in relation to the application of customs rules that person shall supply all the information and documents required by those authorities.(2) The decision under Paragraph 1 shall be taken and notified to the applicant within a term defined in the Regulations. Where a request for a decision is made in writing, the decision shall be made within the period laid down in the Regulations, starting from the date on which the said request is received by the customs authorities. Such a decision shall be notified to the applicant in writing.(3) When the customs authorities are unable to take a decision within the specified term due to the need of collecting additional information they shall be obliged to inform the applicant before its expiry stating the grounds and the period of time they shall need in order to give the requested ruling.(4) Decisions of the customs authorities, which either reject requests or are detrimental to the persons, shall be substantiated.Article 20. (1) A decision favourable to the respective person which is based on incorrect or incomplete information shall be annulled when:1. the applicant knew or should reasonably have known that the information was incorrect or incomplete, and2. such decision could not have been taken on the basis of correct or complete information.(2) The person shall be notified of the annulment of the decision.(3) The annulment shall take effect from the date on which the decision was taken.Article 21. (1) In cases different than those referred to in Article 20, a decision favourable to the interested person shall be revoked or amended when one or more of its conditions were not or are no longer fulfilled.(2) A decision favourable to the interested person may be revoked when this person fails to fulfil an obligation imposed on him/her under that decision.(3) The person to whom the decision is addressed shall be notified of its revocation or amendment.(4) (Amended SG No. 63/2000) The revocation or amendment of the decision shall take effect from the date of notification referred to in Paragraph 3. In exceptional cases when the legitimate interests of the interested person so require, the Central Customs Directorate may defer the date when revocation or amendment takes effect.Section IIIInformationArticle 22. (1) The customs authorities shall present to any interested person information concerning the application of customs legislation. The customs authority may refuse to respond when the request does not relate to importation or exportation operations actually envisaged.(2) The information under Paragraph 1 shall be supplied free of charge. The costs incurred shall be paid when they are connected with analyses, with expert review of the goods, with their return to the applicant, etc.Article 23. (1) (Supplemented, SG No. 37/2003) The customs authorities shall issue binding tariff information or binding information concerning the origin of goods with a decision upon written request and in accordance with the procedures set forth in Article 19.(2) The information under Paragraph 1 shall be binding on the customs authorities and on its holder only in respect of the tariff classification of goods or of defining the origin of a specific product when the customs formalities on the goods are completed after the date on which the information was supplied.(3) In the course of customs clearance of the goods the holder of the received information shall certify before the customs authorities the exact compliance:1. between goods reported and goods described in the information for tariff purposes;2. between goods reported and the circumstances defining the way the goods acquired their origin and the circumstances described in the information for the purposes of the origin.(4) The binding information shall be valid for a period of three years from the date of issue. The binding information shall be annulled when it is based on inaccurate or incomplete information from the applicant regardless of the terms under Article 20, Items 1 and 2.(5) Tariff information shall cease to be valid:1. on the adoption of a statutory instrument when it no longer conforms to its provisions;2. when it is incompatible with the interpretation of the nomenclatures referred to in Article 26. Incompatibility with the interpretation may be:(a) (amended SG No. 37/2003) on a national level, due to changes of the national interpretation notes to the customs tariff nomenclature or by decision of the court;(b) on an international level due to issuing of a classification opinion or an amendment to the explanatory notes to the nomenclature of the Harmonized Commodity Description and Coding System adopted by the World Customs Organisation;3. on its revocation or amendment under the provisions of Article 21 when the holder of the information is notified of its revocation or amendment.(6) The information about origin shall cease to be valid:1. on the adoption of a new statutory instrument or the Republic of Bulgaria signs an international agreement when it no longer conforms to their provisions;2. when it is no longer compatible:(a) on a national level - with the explanatory notes and opinions adopted for the purposes of interpreting the rules or upon a decision of the court;(b) on an international level - with the International Agreement on Rules of Origin established by the World Trade Organization or with the explanatory notes or opinions on origin adopted for interpreting the Agreement;3. on revocation or amendment pursuant to Article 21 provided the holder is notified of its revocation or amendment.(7) (Amended SG No. 63/2000) The holder of binding information which ceases to be valid pursuant to Paragraph 5, Items 2 or 3 and Paragraph 6, Items 2 and 3 may still use that information for a period not longer than six months from the date of respective acts come into force under terms and procedures specified in the Regulations.(8) When the statutory instruments or the agreement pursuant to Paragraph 5, Item 1 and Paragraph 6, Item 1 provide for a different period than the one under Paragraph 7, the period specified by them shall apply.(9) The classification or definition of the goods' origin in the binding tariff information shall be applied only for:1. determining import or export customs duties;2. (new SG No. 37/2003) calculating export subsidies and any other financial grants in cases of exportation or importation of goods as part of the agricultural policy of the Republic of Bulgaria;3. (previous (2) SG No. 37/2003) using export licences and import and export certificates which are presented for the acceptance of the customs statement of the goods provided these certificates are issued on the basis of this binding information.PART TWOELEMENTS ON THE BASIS OF WHICH IMPORT AND EXPORT DUTIES AND OTHERMEASURES PROVIDED IN RESPECT OF TRADE WITH GOODS ARE APPLIED(Title - SG No. 37/2003)Chapter FourCUSTOMS TARIFF. TARIFF CLASSIFICATION(Title - SG No. 37/2003)Article 24. (Amended SG No. 63/2000, SG No. 37/2003) (1) Goods carried across the state border of the Republic of Bulgaria shall be charged with import or export customs duties unless otherwise provided herein, in another act or in an international agreement to which the Republic of Bulgaria is a party.(2) Import or export customs duties due on the occurrence of the customs debt shall be based on the Customs Tariff of the Republic of Bulgaria.Article 25. (Amended SG No. 37/2003) Other measures in relation to specific fields related to trade with goods provided for in statutory instruments and beyond the ones specified in Article 24 shall be introduced according to the tariff classification of those goods.Article 26. (Amended SG No. 37/2003) (1) The Customs Tariff shall include:1. the Combined Nomenclature of the Republic of Bulgaria2. any other nomenclature which is based in whole or in part on the Combined nomenclature of the Republic of Bulgaria or adds subsections to it and which is adopted with a statutory instrument regulating specific fields in relation to applying tariff measures related to trade with goods;3. the rates and other elements charging duties applicable to goods included in the Combined Nomenclature in relation to:a. customs duties, andb. charging the import of goods in compliance with agricultural policy or in compliance with specific provisions applicable to goods obtained from the processing of agricultural products;4. preferential tariff measures including in agreements to which the Republic of Bulgaria is a party providing for granting preferential tariff treatment;5. preferential tariff measures adopted unilaterally by the Republic of Bulgaria in favour of countries, groups of countries or territories;6. autonomous measures introduced by the Council of Ministers which temporarily reduce or abolish applicable import customs duties in relation to certain goods (autonomous suspension measures); the terms and procedures for introducing autonomous suspension measures shall be specified with an ordinance of the Council of Ministers;7. other tariff measures provided for in other statutory instruments.(2) In compliance with the rules for charging with a single customs rate the measures under Paragraph 1, Items 4, 5 and 6 shall apply instead of the ones specified in Item 3 on the reporting person's request when the goods conform to the conditions laid down for these measures. The request may be granted also at a later date in case the respective conditions are met.(3) When the application of the measures under Paragraph 1, Items 4, 5 and 6 is restricted to a certain volume or cost of imports their application shall cease:1. in the case of tariff quotas, as soon as the stipulated limit on the volume or cost of imports is reached;2. in the case of tariff ceilings, as from a time fixed by a statutory instrument.Article 26a. (New SG No. 37/2003) (1) Before the end of each calendar year the Council of Ministers shall adopt the Combined Nomenclature of the Republic of Bulgaria and shall determine customs duty rates in compliance with the linked duty rates of the Republic of Bulgaria under the List of Obligations and Concessions attached to the General Agreement on Tariffs and Trade of 1994 (conventional customs duty rates) which shall apply as from the first day of the following year.(2) The Combined Nomenclature, the conventional customs duty rates and the autonomous customs duty rates shall be published in the State Gazette.Article 27. (Amended SG No. 37/2003) (1) The tariff classification of goods shall be the determination pursuant to the rules established with a statutory instrument of.1. the sub-positions of the nomenclature under Article 26, Paragraph 1, Item 1 or of any other nomenclature under Article 26, Paragraph 1, Item 2. or2. the sub-positions of any other nomenclature which is wholly or partially based on the Combined Nomenclature of the Republic of Bulgaria or adds subsections thereto and which is adopted with a statutory instrument regulating specific areas in relation to the application of measures different from the tariff measures related to trade with goods.(2) Additional tariff classification rules may be specified with an ordinance of the Minister of Finance in compliance with:1. the explanatory notes to the Harmonised Commodity Description and Coding System;2. the explanatory notes to the Combined Nomenclature applied in the European Union member-states;3. the opinions on commodity classification adopted by the Harmonised System Committee of the World Customs Organisation;4. the decisions on commodity classification applied in the European Union member-states.Article 28. (1) (Amended SG No. 63/2000, SG No. 37/2003) The terms under which certain commodities may be entitled to a more favourable tariff treatment due to their nature or specific designation shall be established in the Regulations. When permission is required the provisions of Articles 92 and 93 shall apply.(2) (Amended SG No. 37/2003) In the meaning of Paragraph 1 "more favourable tariff treatment" shall be understood to mean any reduction or abolition of (suspension from) import customs duties, even within the frameworks of the tariff quota.Chapter FiveORIGIN OF GOODSSection INon-Preferential OriginArticle 29. The non-preferential origin of goods specified in Articles 30, 31 and 32 shall serve for the purposes of:1. (amended SG No. 37/2003) applying the Customs Tariff, with the exception of the preferential tariff measures referred to in Article 26, Paragraph 1, Items 4 and 5;2. applying measures other than the tariff measures established by an act of the Council of Ministers;3. the preparation and issue of certificates of origin.Article 30. (1) Goods originating in a country shall be the goods wholly obtained or produced in that country.(2) Goods wholly obtained or produced in a given country shall be the following:1. minerals extracted within that country;2. vegetable products harvested therein;3. live animals raised therein;4. products derived from live animals raised therein;5. products of hunting or fishing carried out therein;6. products of sea-fishing and other products extracted from the sea, outside the inland sea waters and the territorial sea waters of that country by vessels registered in the country and flying the flag of that country;7. goods obtained or produced on board factory-ships from the products referred to in Item 6 originating in that country provided such factory- ships are registered in that country and fly its flag;8. products taken from the seabed or its subsoil outside the inland sea of the territorial sea provided that country has exclusive rights to exploit that seabed or subsoil;9. waste and scrap products, derived from manufacturing operations performed in the country and used articles provided they were collected therein and are fit only for the recovery of raw materials;10. goods which are produced in the country exclusively from goods referred to in Items 1 to 9, or from their derivatives at any stage of production.(3) Whereas Paragraph 2 shall apply, the customs territory of the country shall include its inland sea waters and the territorial sea.Article 31. (1) Goods whose production involves more than one country shall be deemed to originate in the country where they underwent their last, substantial, economically justified processing or treatment in an enterprise equipped for that purpose and resulting in the manufacture of a new product or representing an important stage of manufacture.(2) Any processing or treatment in respect of which it is established or there is sufficient data that that its sole objective was to circumvent the provisions applicable in the Republic of Bulgaria towards goods from specific countries, shall under no circumstances be deemed to confer on the goods thus produced the origin of the country where it is carried out.Article 32. (1) The documents certifying the origin of goods shall be presented when required by a customs or other statutory instrument.(2) Notwithstanding the presentation of a document ascertaining the origin of goods the customs authorities shall be entitled in the event of reasonable doubt to require other evidence confirming that the reported origin complies with the rules for non preferential origin established in the Republic of Bulgaria.Section IIPreferential OriginArticle 33. (Amended SG No. 37/2003) The conditions for acquiring preferential origin of goods with the purpose of applying the measures under Article 26, Paragraph 1, Items 4 and 5 shall be regulated by:1. the international agreements of the Republic of Bulgaria establishing preferential tariff measures;2. the statutory instruments on preferential tariff measures adopted unilaterally by the Republic of Bulgaria.Chapter SixCUSTOMS VALUEArticle 34. The customs value shall be the value of goods in Bulgarian national currency determined for customs purposes. The provisions of this chapter shall regulate the determination of the customs value of goods for the purposes of applying the Customs Tariff of the Republic of Bulgaria, as well as of non-tariff measures established by a statutory instrument.Article 35. (1) The customs value of imported goods determined under this article shall be the contract value which shall be the price of goods actually paid or payable when they are sold for export to the Republic of Bulgaria, adjusted in accordance with Article 38, provided:1. there is no restriction as to the disposal or use of the goods by the buyer, other than restrictions which:(a) are established by statutory instruments of the Republic of Bulgaria;(b) specify the geographical area in which the goods may be resold, or(c) do not substantially affect the value of the goods;2. the sale or price is not subject to some condition or consideration for which a value cannot be determined with respect to the goods being valued;3. no part of the proceeds of any subsequent resale, granted right to use or dispose with the goods by the buyer shall accrue directly or indirectly back to the seller, unless an adjustment can be made in accordance with Article 38; and4. the buyer and seller are not related persons, or, when the buyer and seller are related persons provided the contract value is acceptable for customs purposes under Paragraph 2.(2) Circumstances that shall be taken into consideration in the case of related persons:1. in determining whether the transaction value is acceptable for the purposes of Paragraph 1 the fact that the buyer and the seller are related persons shall not in itself be sufficient grounds for regarding the transaction value as unacceptable. Where necessary the circumstances of the sale shall be examined and the transaction value shall be accepted provided the relationship did not influence the price. If in the light of information provided by the buyer or another source the customs authorities have grounds to consider that the relationship has influenced the price, they shall communicate their grounds to the reporting person and he shall be given a reasonable opportunity to respond. If the reporting person so requests the communication of the grounds shall be in writing;2. in a sale between related persons the contract value shall be accepted and the goods valued in accordance with Paragraph 1 when the reporting person proves that such value closely approximates one of the following values determined at or about the same time:(a) the contract value in sales of identical or similar goods sold for export to the Republic of Bulgaria, between buyers and sellers who are not related persons;;(b) the customs value of identical or similar goods, as determined under Article 36, Paragraph 2, Item 3;(c) the customs value of identical or similar goods, as determined under Article 36, Paragraph 2, Item 3.(3) In applying Paragraph 2, Item 2 due account shall be taken of differences in commercial levels, the levels listed in Article 38 and costs incurred by the seller in sales in which he and the buyer are not related persons and when such costs are not incurred by the seller in sales in which he and the buyer are related persons. The methods set forth in Paragraph 2, Item 2 shall be applied at the initiative of the reporting person and only for comparison purposes, and not as a basis for determining the customs value.(4) The price actually paid or payable shall be the total payment made or to be made by the buyer to or for the benefit of the seller and shall include all payments made or to be made as a condition of the sale by the buyer to the seller or by the buyer to a third party to satisfy an obligation of the seller. The payment need not necessarily take the form of a transfer of money but may be made by way of a letter of credit or negotiable instrument and may be made directly or indirectly.(5) Activities, including marketing activities, undertaken by the buyer on his own account, other than those for which an adjustment is provided in Article 38, shall not be considered to be an indirect payment to the seller even when they might be regarded as of benefit to the seller or have been undertaken by agreement with the seller, and their cost shall not be added to the price actually paid or payable in determining the customs value of imported goods. "Marketing activities" in the meaning herein shall be any activities related to the advertising or the promotion of the sale of the valued goods and all warranty activities in relation to the goods.Article 36. (1) When the customs value cannot be determined under Article 35, it is to be determined by applying sequentially the provisions of Paragraph 2, Items 1 to 4 until the first provision in the sequence allows its application An exception from the specified procedure shall be admissible for the application of Items 3 and 4 if the reporting person requests the sequence of these Items to be reversed. It is only when such value cannot be determined under a particular subparagraph in the sequence specified that the provisions of the next subparagraph can be applied in a sequence established by virtue of this paragraph.(2) The customs value as determined under this Article shall be:1. the contract value of identical goods sold for export to the Republic of Bulgaria and exported at or about the same time as the goods to be valued;2. the contract value of similar goods sold for export to the Republic of Bulgaria and exported at or about the same time as the goods being valued;3. the value based on the unit price at which the imported goods for identical or similar imported goods are sold within the Republic of Bulgaria in the greatest aggregate quantity to persons not related to the sellers;4. the computed value, consisting of the sum of:(a) the cost of materials and manufacture or other operations related to the processing of the imported goods,(b) a sum of the profit and general expenses equal to that usually calculated for sales of goods of the same class or type as the goods being valued which are manufactured by producers in the country of export for export to the Republic of Bulgaria,(c) the cost referred to in Article 38, Paragraph 1, Item 5.(3) Any additional conditions and rules for the application of Paragraph 2 shall be determined by the Regulations.Article 37. (1) When the customs value of imported goods cannot be determined under Articles 35 or 36, it shall be determined through methods compatible with the principles and the general provisions of the Agreement on implementation of Article VII of the General Agreement on Tariffs and Trade, and the provisions of this chapter.(2) No customs value shall be determined under Paragraph 1 on the basis of:1. the selling price in the Republic of Bulgaria of goods produced in the Republic of Bulgaria;2. a system which provides for the acceptance for customs purposes of the higher of two alternative values;3. the price of goods on the domestic market of the country of exportation;4. production costs, other than the computed values which have been determined for identical or similar goods in accordance with Article 36, Paragraph 2, Item 4;5. prices for goods sold for export which was not intended for the Republic of Bulgaria;6. minimum customs values;7. arbitrary or fictitious values.Article 38. (1) In determining the customs value under Article 35 to the price actually paid or payable for the imported goods the following shall be added:1. (amended, SG No. 63/2000) the following costs, to the extent that they are incurred by the buyer but are not included in the price actually paid or payable for the goods:(a) commissions and brokerage, except purchase commissions;(b) the cost for containers which, for customs purposes, are treated as being one with the goods in question;(c) packing cost, including labour and materials.2. The value, apportioned as appropriate, on the following goods and services when supplied directly or indirectly by the buyer free of charge or at discount prices for use in connection with the production and sale for export of the imported goods, insofar as such value has not been included in the price actually paid or payable:(a) materials, components, parts and the like incorporated in the imported goods;(b) tools, dies, moulds and the like used in the production of the imported goods;(c) materials consumed in the manufacture of the imported goods;(d) engineering, development, artwork, design work, and plans and sketches undertaken elsewhere than in the Republic of Bulgaria and necessary for the production of the imported goods;3. royalties and license fees related to the goods being valued that the buyer must pay, either directly or indirectly, as a condition of sale of the goods being valued, to the extent that such royalties and fees are not included in the price actually paid or payable;4. the value of any part of the proceeds of any subsequent resale, granting the right to dispose of or use the imported goods that accrues directly or indirectly to the seller;5. expenses for:(a) transport of the imported goods to their entry point into the territory of the Republic of Bulgaria;(b) loading/unloading and handling operations associated with the transport of the imported goods to entry border crossing point of the Republic of Bulgaria;(c) insurance of the imported goods.(2) Additions to the price actually paid or payable shall be made under this article only on the basis of objective and quantifiable data.(3) No additions shall be made to the price actually paid or payable in determining the customs value except as provided in this article.(4) (New, SG No. 63/2000) In this chapter the term 'purchase commission' shall mean fees paid by an importer to his agent for the service of representing him in the supply of goods being valued.(5) (Previous (4) SG No. 63/2000) Notwithstanding Item 3 of Paragraph 1:1. charges for the right to reproduce the imported goods in the Republic of Bulgaria shall not be added to the price actually paid or payable for the imported goods in determining the customs value;2. payments made by the buyer for the right to distribute or resell the imported goods shall not be added to the price actually paid or payable for the imported goods if such payments are not a condition for the sale of the goods for export to the Republic of Bulgaria.Article 39. The customs value of the imported goods shall not include the following costs provided they are shown separately from the price actually paid or payable:1. transport costs of goods on the territory of the Republic of Bulgaria after their arrival;2. costs for construction, installation, assembly, maintenance or technical assistance, undertaken for the goods after their import;3. charges for the right to reproduce imported goods in the Republic of Bulgaria;4. purchase commissions;5. import duties, taxes, excise charges and fees payable in the Republic of Bulgaria by reason of the import or sale of the goods;6. interest under a financing arrangement of the buyer relating to the purchase of imported goods, irrespective of whether the credit is provided by the seller, by a bank or a third person, provided the interest is separated from the price payable, the financing agreement has been made in writing and the buyer can prove that:(a) such goods are sold at the moment of evaluation at the price reported as the price actually paid or payable, and(b) the reported interest rate does not exceed the level for such transactions prevailing in the country where, and at the time when, the financing was provided.Article 40. Specific rules may be laid down in the Regulations for determining the customs value of imported information carrier media intended for use in electronic data processing equipment and bearing data or instructions.Article 41. (Amended, SG No. 37/2003) The procedure for determining the customs value in specific cases shall be established by a Council of Ministers decree.Article 42. (1) The transfer of foreign exchange into Bulgarian currency for determining the customs value shall be done according to the exchange rate for foreign currencies announced by the Bulgarian National Bank.(2) The period of implementing the corresponding currency exchange rate shall be determined in the Regulations.Article 43. (1) The provisions of this chapter shall not affect the specific provisions for determining the customs value when importing goods under a different a customs destination.(2) Notwithstanding the provisions of Articles 35-37 the customs value of perishable goods usually delivered on consignment may at the request of the reporting person be determined under simplified procedures, defined in the Regulations.PART THREEENTRY OF GOODS INTO THE CUSTOMS TERRITORY OF THE REPUBLIC OFBULGARIA UNTIL THEY OBTAIN A CUSTOMS ASSIGNMENTChapter SevenENTRY OF GOODS INTO THE CUSTOMS TERRITORY OF THE REPUBLIC OF BULGARIAArticle 44. (1) From the time of their entry into the customs territory of the Republic of Bulgaria the goods shall be subject to customs supervision and may be subject to customs control in accordance with the provisions in force by the date of entry.(2) The goods shall remain under customs supervision until their customs status is determined. With the exception of cases referred to in Article 88, Paragraph 1 foreign goods shall remain under customs supervision also until their customs status is changed, or they enter a free zone or a free warehouse, or they are re exported or destroyed in accordance with Article 180.Article 45. (1) Goods brought into the customs territory of the country shall without delay be transported by the person bringing them into the country according to the instructions of the customs authorities to the designated customs office or to any other place designated by those authorities. Should this be necessary the customs authorities may specify the route for transporting the goods.(2) The person who assumes responsibility for the transport of goods after they have been brought into the customs territory of the Republic of Bulgaria shall become responsible for compliance with the obligation laid down in Paragraph 1.(3) Paragraph 1 shall not preclude the implementation of provisions of any other statutory instruments with respect to:1. parcels;2. tourist traffic;3. shipment of goods with negligible economic importance, on condition customs supervision and customs control possibilities are not thereby jeopardized.(4) Paragraphs 1,2 and 3 as well as Articles 46 to 60 shall not apply to goods which leave temporarily the customs territory of the Republic of Bulgaria, while being shipped between two points in that territory by sea or air, provided the carriage has been effected by a direct route by regular air service or shipping line without a stop outside of the customs territory of the Republic of Bulgaria.(5) Paragraph 1 shall not apply to goods on board a vessel or an aircraft crossing the territorial waters or airspace of the Republic of Bulgaria without having as their destination a port or airport on the country's customs territory.Article 46. (1) When, by reason of force majeure or unforeseeable circumstances, the person cannot comply with the obligation laid down in Article 45, Paragraph 1, he shall inform immediately the nearest customs authorities. When the goods are not destroyed or lost in total the customs authorities shall be informed of their exact location.(2) When, by reason of force majeure or unforeseeable circumstances, a vessel or an aircraft is forced to put into port or land temporarily in the customs territory of the Republic of Bulgaria and the obligation laid down in Article 38, Paragraph 1 cannot be complied with, the person bringing the vessel or aircraft into the customs territory of the country or any other person acting in his place shall inform immediately the customs authorities.(3) The customs authorities shall determine the measures in the cases referred to in Paragraphs 1 and 2 to be taken for customs supervision and, where appropriate, for ensuring the shipping of the goods to a customs office or to another location designated by them.Chapter EightPRESENTATION OF GOODS TO CUSTOMS AUTHORITIESArticle 47. Goods which have been transported pursuant to Article 45, Paragraph 1 shall be presented to the customs authorities by the person who has brought them into the customs territory of the Republic of Bulgaria or by the person who had undertaken the carriage of the goods following such entry.Article 48. For goods carried by travellers or placed under customs regime, but not presented to customs, other provisions for presentation may apply as provided in the Regulations.Article 49. Once goods have been presented to customs, they may be subject to examination or sample-taking, for specifying their customs assignment with the permission of the customs authorities.Chapter NineMANIFESTATION AND UNLOADING OF GOODS PRESENTED TO CUSTOMS AUTHORITIESArticle 50. (1) For goods presented to customs authorities a customs manifest shall be submitted.(2) The customs manifest shall be submitted immediately after the goods have been presented to customs. The customs authorities may allow a different period for submitting the manifest which shall not extend beyond the first working day following the day on which the goods were presented to customs.Article 51. (1) The manifestation of goods shall be done under terms and procedures specified in the Regulations. The customs authorities may accept also a commercial or other document instead of a customs manifest if it contains the particulars necessary for identification of the goods.(2) The customs manifest shall be submitted by:1. the person who has brought the goods into the customs territory of the Republic of Bulgaria or by the person who has undertaken the carriage of the goods following such entry; or2. the person in whose name the persons referred to in Item 1 had acted.Article 52. The cases when the customs authorities may submit a manifest ex officio or waive the submission of a customs manifest shall be defined in the Regulations.Article 53. (1) Goods shall be unloaded or reloaded from the vehicles carrying them solely with the permission of the customs authorities in places designated by them.(2) No permission shall be required in the event of a breakdown or other circumstances necessitating the immediate unloading of all or parts of the goods. In that case, the customs authorities shall be informed forthwith.(3) For the purpose of customs control and inspection of goods, including the vehicles carrying them, the customs authorities may at any time require goods to be unloaded and unpacked.Article 54. Goods shall be removed from their original location only with the permission of the customs authorities.Chapter TenOBLIGATION TO PERFORM FORMALITIES ON OBTAINING A CUSTOMSASSIGNMENT FOR THE GOODS PRESENTED TO THE CUSTOMS AUTHORITIES(Title - SG No. 37/2003)Article 55. (Supplemented SG No. 37/2003) Foreign goods presented to the customs authorities shall obtain an admissible customs assignment.Article 56. (1) (Amended SG No. 37/2003) The respective formalities for obtaining a customs assignment shall be performed for the manifested goods within the following deadlines:1. forty five days from the date of submitting the customs manifest for goods carried by sea;2. twenty days from the date of submitting the customs manifest for goods carried otherwise than by sea;(2) Depending on the specific circumstances the customs authorities may set deadlines shorter or longer than the periods referred to in Paragraph 1. The extension shall not exceed the period actually required in the specific case.Chapter ElevenTEMPORARY STORAGE OF GOODSArticle 57. Until obtaining a customs assignment the goods presented to the customs authorities shall have the status of "goods in temporary storage."Article 58. (1) Goods in temporary storage shall be stored only in places approved by the customs authorities and under conditions laid down by them.(2) (Supplemented, SG No. 153/1998) The customs authorities shall be entitled to require the person holding the goods to provide security for any customs debt that may arise under Article 199, Paragraph 1, Items 5, 6 and 7 as well as also taxes and excise duties.Article 59. Goods in temporary storage shall not be subject to handling other than the one intended for ensuring their preservation in an unchanged state without modifying their appearance or technical characteristics. This provision shall not prejudice the provisions of Article 49.Article 60. (1) (Amended SG No. 37/2003, SG No. 109/2007) Without prejudice to the provisions on arising of customs debts, for goods, in respect of which the respective formalities for obtaining an admissible customs assignment have not been performed, the customs authorities shall notify the consignee of those goods in writing with recorded delivery that within a period of thirty days from the date of receiving such notification the good would be treated as abandoned in favour of the state.(2) (Supplemented, SG No. 109/2007) After the expiry of the period referred to in Paragraph 1 the goods shall be considered as abandoned in favour of the state, unless the customs debt is discharged within the above term or is treated as not having arisen under the provisions of the customs legislation.(3) (Amended SG No. 37/2003, SG No. 109/2007) When the consignee of the goods is a foreign person, or an unknown person, a native person with address unknown or who cannot be located on the address indicated, no notification as referred in Paragraph 1 shall be sent and the goods shall be deemed abandoned in favour of the state after the expiration of six months from the day of their manifestation.(4) (Amended SG No. 37/2003, SG No. 109/2007) The customs authorities may, after assuming the responsibility and the costs from the holder of the goods, allow their transfer to a different location under customs supervision.Chapter TwelveFOREIGN GOODS WITH A TRANSIT STATUSArticle 61. The provisions of Article 45, with the exception of Paragraph 1, and of Articles 46 to 60, shall not apply when goods that have been placed under a transit regime are brought into the customs territory of the Republic of Bulgaria.Article 62. Once foreign goods which have been moved under the transit regime reach their destination in the customs territory of the Republic of Bulgaria and have been presented to the customs authorities in accordance with the provisions governing transit, Articles 49 to 60 shall apply.Chapter ThirteenOTHER PROVISIONSArticle 63. When circumstances so require, the customs authorities shall be entitled to order the destruction of the goods presented to them for customs clearance, after informing the holder of the goods thereof. The cost for destroying the goods shall be borne by the holder.Article 64. When the customs authorities find that goods have been brought illegally into the customs territory of the Republic of Bulgaria or have been withheld from customs supervision, they shall take the legal measures provided, including the sale of the goods.PART FOURCUSTOMS ASSIGNMENTSTITLE ONEGENERAL PROVISIONSArticle 65. (1) In case there are no statutory restrictions or prohibitions the goods may obtain the requested customs assignment under the conditions laid down in this Act irrespective of their type, quantity, origin, consignment or destination.(2) Paragraph 1 shall not preclude the imposition of prohibitions or restrictions in relation to national security, public order or morality, the protection of health and life of humans, animals or plants, the protection of the national heritage of artistic, historic or archaeological value or the protection of industrial and commercial property.(3) (New, SG No. 37/2003) When performing customs control under Paragraph 2, unless otherwise provided, the customs authorities may postpone with a substantiated decision for a period of up to five working days the permission for the assignment requested for the goods and shall inform forthwith the authorities competent for exercising supervision and control related to the respective prohibitions or restrictions.TITLE TWOCUSTOMS REGIMESChapter FourteenPLACING GOODS UNDER CUSTOMS REGIMESArticle 66. (1) All goods intended to be placed under a customs regime shall be subject to reporting for the appropriate regime.(2) Local goods reported for exportation, temporary exportation, outward processing, transit or customs warehousing regime shall be subject to customs supervision form the time of their reporting before the customs office until their leaving the customs territory of the Republic of Bulgaria or destruction or the invalidation of the export manifest.Article 66a. (New, SG No. 63/2000) (1) The Director of the Customs Agency may designate in an order individual customs institutions, which perform customs activities with respect to certain types of goods and/or in compliance with the customs regimes under which they will be placed.(2) The order under Paragraph 1 shall be published in the State Gazette.Article 67. (Amended, SG No. 63/2000) (1) The reporting before the customs authorities shall be made:1. in writing;2. electronically;3. orally;4. by means of any other act whereby the holder of the goods expresses his wish to place them under a customs regime.(2) The terms and procedure for reporting in the cases under Paragraph 1, Items 2, 3 and 4 of shall be established in the Regulations.Section IReporting in Writing under the Normal ProcedureArticle 68. (1) Reports in writing shall be made with a customs statement on a standard form and under a procedure established by the Minister of Finance.(2) (New SG No. 37/2003) The customs statement must be signed and shall contain all data required for applying the provisions of the customs regime for which the goods have been reported.(3) All documents specified statutorily for allowing the customs regime for which the goods have been reported shall be enclosed with the customs statement in order of allow the customs regime for which the goods have been reported.Article 69. Customs statements which comply with the provisions laid down in Article 68 shall be accepted by the customs authorities immediately, provided the reported goods are presented to them.Article 70. (1) (Amended, SG No. 63/2000) Reporting may be performed by any person, including an agent, who is able to present the goods in question or to have them presented to the competent customs authority, together with all the documents required for allowing the customs regime in respect of which the goods are reported.(2) (Amended, SG No. 63/2000) When the acceptance of a customs statement imposes particular obligations on a specific person, the reporting must be performed by that person or on his behalf.(3) The reporting person must be established in the Republic of Bulgaria. This condition shall not apply to persons who:1. (amended, SG No. 63/2000) report for transit or temporary importation; or2. report goods on an occasional basis, provided that the customs authorities consider the reporting to be admissible.Article 71. (1) Once the customs statement is accepted, on the request of the reporting person the customs authorities may allow him to amend one or more of the particulars in the statement. No goods other than those originally reported in the statement shall be included in the amendments.(2) No amendment shall be allowed when the request has been made after the customs authorities have:1. informed the reporting person that they intend to examine the goods;2. established an inaccurate data in the customs statement;3. allowed goods to be released.Article 72. (1) The customs authorities shall, at the request of the reporting person, invalidate a customs statement already accepted, when the reporting person proves that the goods were reported by mistake for the respective customs regime or that, as a result of special circumstances, remaining of the goods under the reported customs regime is unjustified.(2) When the customs authorities have informed the reporting person of their intention to examine the goods, the request for invalidation of the customs statement may be accepted after the examination has taken place.(3) The customs statement shall not be invalidated after the permission on releasing the goods, except in cases defined in accordance with the Regulations.(4) Invalidation of the customs statement shall not prevent the application of the penal provisions.Article 73. The date used for the purposes of applying the customs regime for which the goods were reported shall be the date of acceptance of the customs statement by the customs authorities unless otherwise provided for by a statutory instrument.Article 74. For verification purposes of the accepted customs statements the customs authorities may perform:1. document control of the customs statement and the documents accompanying it. The customs authorities may require the reporting person to present other documents for verifying the accuracy of the particulars contained in the customs statement;2. examination of the goods and taking samples for analysis or control.Article 75. (1) Transport of the goods to the places where they are to be examined, samples to be taken and all the handling necessities shall be carried out and be under the responsibility of the reporting person. The costs incurred shall be borne by the reporting person.(2) The reporting person shall be entitled to be present when the goods are examined and when the samples are taken. The customs authorities shall require the presence of the reporting person or his agent when the goods are examined or samples are taken, in order to facilitate the performance of the examination.(3) When samples are taken in accordance with the provisions in force the customs authorities shall not owe any compensation but shall bear the costs of their analysis or examination.Article 76. (1) When only a part of the goods covered by a customs statement is examined, the results of the examination shall be taken to apply to all the goods covered by that customs statement.(2) The reporting person may request a further examination of the goods if he considers that the results of the partial examination are not valid as regards to the remainder of the goods reported.(3) For the purposes of Paragraph 1, when a customs statement form contains several types of goods, the particulars relating to each of those types shall be deemed to constitute a separate customs statement.Article 77. (1) The results of the verification of the customs statement shall be used for the purpose of applying the customs regime under which the goods are placed.(2) When the customs statement is not verified, the provisions of the basis for applying the customs regime shall be the particulars reported in the customs statement.Article 78. (1) The customs authorities shall take the measures necessary to identify the goods as required in order to ensure compliance with the terms of the customs regime for which the goods have been reported.(2) Means of identification affixed to the goods or in cargo sections of vehicles may be removed or destroyed only by the customs authorities or with their permission. This provision shall not be applied in cases of force major or unforeseeable circumstances in view of ensuring the protection of the goods and vehicles.Article 78a. (New SG No. 37/2003) (1) The customs authorities shall postpone with a substantiated decision giving permission on releasing goods reported for import regime and shall inform forthwith the competent market supervision authorities when in the course of the inspection they establish that:1. the goods contain certain characteristics giving rise to reasonable doubts on the existence of serious and immediate risk for health and safety in case of their use in normal foreseeable conditions, or2. the goods are not accompanied by the documents required pursuant to the safety rules or are not marked in compliance with these rules.(2) When in the cases under Paragraph 1 the competent authorities consider that the goods do not represent serious and immediate risk for health and safety the customs authorities shall allow the release of the goods provided all other requirements and formalities for placing the goods under an import regime have been complied with.(3) In case the customs authorities are not notified within three working days from the day following the actions under Paragraph 1 by the competent market supervision authorities on measures adopted by them, the release of the goods shall be allowed provided all other requirements and formalities provided in applicable law for placing the goods under import regime have been complied with.(4) The customs authorities shall not allow the release of the goods and their placement under import regime when they have been notified by the competent market supervision authorities that the goods pose a serious and immediate risk for health and safety and prohibition measures have been taken in relation to their release on the market. In these cases the customs authorities shall place on the invoice and the other documents accompanying the goods the text "Dangerous product - import regime not allowed".(5) The customs authorities shall not allow the release of the goods and their placement under import regime when they have been notified by the competent market supervision authorities that the goods do not comply with applicable safety rules and prohibition measures have been taken in relation to their release on the market. In these cases the customs authorities shall place on the invoice and the other documents accompanied the goods the text "Product incompatible with requirements - import regime not allowed".(6) The provisions of this article shall apply to goods of which the customs authorities have been notified in advance by the market supervision authorities that they are subject to control on compliance with safety rules. The notification shall be performed under a procedure coordinated between the customs authorities and the market supervision authorities.(7) The article shall apply inasmuch a statutory instrument does not provide otherwise in relation to the organisation of border control of specific goods.Article 78b. (New SG No. 37/2003) The provisions of Article 78a shall not apply when veterinary and zoo-technical control and control in relation to protecting plants and animals have been regulated with a statutory instrument.Article 79. (1) (Amended SG No. 37/2003) In compliance with the provisions of Article 80, when the conditions for placing the goods under a specific regime are met and provided the goods are not subject to any prohibitive and restrictive measures, the customs authorities shall allow the release of the goods as soon as the particulars in the customs statement have been verified or accepted without verification. Permission for release of the goods shall be granted also when the verification cannot be completed within a reasonable period of time and the presence of the goods is no longer required its performance.(2) The release of the goods shall be allowed for the entire amount of goods reported in the same customs statement. When a customs statement covers several types of goods the particulars relating to each type shall be deemed to constitute a separate customs statement.Article 80. (1) When the acceptance of a customs statement gives rise to a customs liability, the release of the goods covered by this customs statement shall be allowed only if the customs liability has been paid or secured. This provision shall not apply to the temporary importation regime with partial exemption from import customs duties in compliance with the provisions of Paragraph 2.(2) When the regime for which the goods are reported requires security the customs authorities shall allow the release of the goods only after its institution.(3) Goods dangerous for health, for the environment, flammable and perishable goods may be released with the written permission of the customs authorities even before security is provided.Article 81. The customs authorities shall undertake the legally provided measures, including confiscation and sale in favour of the state, of goods which:1. cannot be released due to the following reasons:(a) it has been impossible to undertake or perform examination of the goods within the period prescribed by the customs authorities for reasons attributable to the reporting person;(b) the documents required for placing the goods under the requested customs regime have not been produced;(c) the import or export customs duties have nor been paid or secured within the prescribed term;(d) are subject to prohibition or restriction measures;2. (Amended SG No. 153/1998) are not removed within the period after giving the permission.Section IIReporting in Writing Under the Simplified ProcedureArticle 82. (1) In order to simplify customs formalities, while ensuring procedures for reporting and the terms specified in the regulations, the customs authorities shall grant permission:1. for submitting a simplified customs statement being the customs statement under Article 68 omitting certain of the particulars or not containing some of the required documents;2. instead of the customs statement under Article 68 to submit a commercial or administrative document, accompanied by an application for placing the goods under the respective customs regime.3. to perform the reporting of the goods for the respective customs regime through entering them in the accounting records of the reporting person. In this case the customs authorities shall be entitled to waive the requirement that the reporting person presents the goods.(2) The simplified customs statement, the commercial or administrative documents or the entry of the goods in the accounting records must contain the particulars necessary for identifying the goods. The entry of the goods in the accounting records must contain also the date on which it is done.(3) Except in cases to be determined in the Regulations, the reporting person shall be obliged to furnish a supplementary customs statement, which may be of general, periodic or recapitulative nature.(4) The supplementary customs statement under Paragraph 3 shall be considered a single document indivisible from the documents referred to in Paragraph 1, Items 1, 2 and 3 which shall take effect on the date of acceptance by the customs authorities. In the cases referred to in Paragraph 1, Item 3 entry in the records of the accounting documents shall have the same legal force as acceptance of the customs statement under 68.(5) Special simplified procedures for the transit regime shall be laid down in the Regulations.Section IIIOther Types of ReportingArticle 83. (1) (Supplemented, SG No. 63/2000, previous Article 83, SG No. 37/2003) When reporting before the customs authorities is made electronically, orally or through other means as referred to in Article 67, the provisions of Articles 68 to 82 shall apply mutatis mutandis without prejudice to the principles set out therein.(2) (New SG No. 37/2003) When reporting before the customs authorities is made electronically the customs authorities may not require the attachment of the documents under Article 68, Paragraph 3. In these cases the documents must be available to the customs authorities for the purposes of customs control.(3) (New SG No. 37/2003) The Minister of Finance shall specify the terms and procedures for reporting electronically to the customs authorities mutates mutandis.Section IVSubsequent Control of ReportingArticle 84. (1) After the permission for release of the goods the customs authorities shall be entitled, at their own initiative or at request of the reporting person, to perform subsequent control of the customs statement.(2) The customs authorities shall be entitled, after releasing the goods for the purpose of establishing the truthfulness of the customs statement, to perform control of the commercial documents and data relating to the import and export operations in respect of the goods reported or of subsequent commercial operations with them. Such control shall be carried out at the premises of the reporting person, of any other person directly or indirectly involved in the said operations as well as of any other person in possession of the said documents and data. The customs authorities may also examine the goods when it is possible for them to be produced.(3) When during a second inspection of the customs statement or subsequent control it is established that the respective customs regime has been applied on the basis of incorrect or incomplete information, the customs authorities shall take the necessary measures while taking into account the new circumstances.(4) Any person involved directly or indirectly in activities of importation, exportation and transit operations of goods shall be obliged to keep for a period of five years the entire documentation on the specific operations, regardless of the type of the carrier media used. The period shall start running from the end of the calendar year during which:1. for goods, processed under the importation customs regime, other than those mentioned in Item 2, or processed under the exportation customs regime, the corresponding customs statements have been accepted;2. for goods, processed under the importation customs regime with reduced or zero-rate duty due to their specific usage, these goods cease to be subject of customs control;3. for goods placed under another customs regime, the respective customs regime comes to an end;4. for goods placed in a free zone or a free warehouse, these goods leave the free zone or the free warehouse.Article 84a. (New, SG No. 45/2005) (1) Follow-up control on reporting shall be carried out in respect of all persons who are engaged or involved in an activity the control over which is assigned to the customs authorities by law.(2) In the course of follow-up control an inspection shall be carried out of the compliance with the law of the actions of the inspected person for applying the respective regimes, procedures and trade policy measures, as well as of the fulfilment of its obligations for paying public state receipts collected by the customs authorities.(3) Customs authorities shall be obliged to establish impartially the facts and circumstances under Paragraph 2 both to the detriment and in favour of the inspected person. In the course of the inspection the inspected person shall be entitled to receive information on the facts and circumstances established insofar as this would not impede its carrying out.(4) The inspection shall comprise the goods, the stocks, the accounting records, the trade, accounting and other documentation of the inspected person that is material for the specific case.(5) (Amended, SG No. 105/2005) The customs authorities shall be obliged to make clear to the inspected person and to the other participants in the proceedings under this Act their procedural rights provided for in the Tax and Social Insurance Procedure Code, according Criminal Procedure Code and to ensure the possibilities that they should be exercised.Article 84b. (New, SG No. 45/2005) (1) Follow-up control shall be exercised by customs officials in specialised units for follow-up control in the Central Customs Directorate and in the regional customs directorates. Should this be required follow-up control units may be created also in the territorial customs directorates under the procedure of Article 11, Paragraph 3.(2) The competence of the follow-up control units shall be determined according to the registered address, the permanent address respectively, of the inspected person. The competence of the follow-up control unit at the Central Customs Directorate shall be national.(3) Should it be needed to establish facts and circumstances related to the activity of the inspected person, its affiliate, facility, business or property which is within the competence of another follow-up control unit the Director of the Customs Directorate may permit that the entire inspection or individual actions be performed by that unit.(4) Should specific knowledge and qualifications be needed other customs officers who command them may participate in the inspection or expert opinions may be requested from them.Article 84c. (New, SG No. 45/2005) (1) An inspection within the follow-up control framework shall be carried out on the basis of an assignment order.(2) The order under Paragraph 1 shall be issued by:1. The Director of the Customs Agency or by officials from the Customs Agency authorised by him/her.2. A Director of a regional customs directorate and head of customs office and the Director of the Customs Agency shall be notified thereof.(3) The order under Paragraph 1 shall be issued in writing and shall contain:1. the legal and factual grounds for conducting the inspection;2. the names and positions of the customs officers who shall carry out the inspection;3. information on the inspected person;4. the inspection period;5. the type and scope of the inspection;6. the initial date of commencing the inspection and the time of its completion;(4) The order under Paragraph 1 shall be handed over to the inspected person by the customs officers at the start of the inspection. The inspected person may be notified in advance of the start of the inspection should this not threaten its objective.(5) The order under Paragraph 1 may be amended by a new substantiated order of the body that has assigned the inspection. The amendment shall be deemed done as of the date of issuing the new order which shall be handed over to the inspected person.(6) The period for carrying out the inspection within the follow-up control framework shall not exceed two months.(7) In case of justified need the period under Paragraph 6 may be extended by not more than four months with a new substantiated order of the body that has assigned the inspection.(8) The body that has assigned the inspection shall stop proceedings:1. in case of force majeure - as of the date of its occurrence;2. when judicial or administrative proceedings have been instituted that are material to the inspection's outcome - on presenting a certificate thereof issued by the body before which proceedings have been instituted;3. under other circumstances provided for by law.(9) The body that has assigned the inspection may direct that it be suspended for a certain period but for not longer than 30 days subject to a substantiated application by the inspected person and following a verification of the circumstances.(10) The period for carrying out the inspection shall not run as of the date of occurrence of the relevant circumstance for its suspension until the date of its resumption.(11) The inspection shall be resumed on an order of the body that has assigned it after the grounds for its suspension have become defunct. The resumption order shall be delivered to the inspected person.(12) Orders on assigning, amending, suspending and resuming an inspection shall not be subject to appeal.Article 84d. (New SG No. 45/2005) (1) The inspected person shall be obliged to cooperate with the customs authorities when they are clarifying facts and circumstances that are material to the inspection by:1. providing commercial, accounting and other documentation;2. providing explanations requested by the customs authorities;3. drawing up information memoranda;4. certifying information memoranda and copies of documents requested by the customs authorities;5. ensure access to official premises, warehouses and cash offices;6. ensure space and conditions for carrying out the inspection;7. appoint persons to grant cooperation in conducting the inspection.(2) The inspected person shall be obliged, within reasonable time specified by the customs authorities but not less than 24 hours, to provide any information, data, documents, papers, things, information carriers and other evidence relating to the facts and circumstances subject to establishment in the course of the inspection and to specify all persons, state and municipal bodies with which they may be found. This term may be extended should important reasons so require.(3) The inspected person shall be obliged to ensure to the customs authorities access to its IT system when collection, storing and processing of the information under Paragraph 2 is done by such a system.(4) In case it is impossible to carry out the inspection at the premises of the inspected person it shall be performed at the customs office. In this case the customs authorities shall compile a protocol and an inventory of the documents, things and other evidence that are handed over to them.Article 84e. (New SG No. 45/2005) (1) The evidence in the proceedings under this section may be factual data related to circumstances that are material to the purposes of the inspection, contribute to their clarification and are collected and verified under the procedure herein.(2) The evidence shall be collected and verified through written explanations, information memoranda and statements of the inspected persons or of their representatives, minutes on explanations of third persons who are not participating in the administrative proceedings, protocols on the actions of the customs authorities, expert opinions, official documents received through information exchange with the administrations of other states within international cooperation as well as through other means provided for by law.(3) Any person, state and municipal authority shall be obliged, within seven days after the receipt of a request by the customs authorities, to provide information, data, documents, papers, things, information carriers and other evidence relating to the facts and circumstances specified in the request. This term may be extended by the body that has assigned the inspection.(4) When conducting an inspection the customs authorities may request cooperation in writing from other bodies in performing actions for the purpose of establishing obligations or liabilities of the inspected person.(5) When special knowledge that the customs authorities do not possess is required to clarify circumstances and issues that have arisen in the course of the inspection on their initiative or on request by the inspected person the body that has assigned the inspection shall institute an expert examination. When the expert examination has been instituted on request by the inspected person the costs for its carrying out shall be at the expense.Article 84f. (New SG No. 45/2005) (1) In the course of an investigation the customs authorities may take action for securing evidence through distraint or through searches and seizures under the procedure of Article 16, Paragraph 7 and 8 of documents, papers and other information carriers, goods and data processing means, as well as through copying data from and on technical carriers allowing its reproduction, taking the necessary steps to preserve its authenticity.(2) Where no other possibility exists to secure evidence the customs authorities may seal off offices, pay desks, warehouses, trade and other premises for a period of 72 hours.(3) A statement shall be drawn up for the actions under Paragraphs 1 and 2 a copy of which shall be handed over to the inspected person.(4) Before the expiry of the term under Paragraph 2 the body that has assigned the inspection may request from the district court within the jurisdiction of which the facility is located to extend the period of the sealing off. The court shall issue a ruling in a closed sitting on the day the request is received and shall determine a term for the sealing off. The ruling shall not be subject to appeal.(5) The customs authorities shall lift the sealing off if before the expiry of the term under Paragraph 2 the district court has not allowed its extension.(6) The actions to secure evidence may be appealed against within three days before the body that has assigned the inspection, which shall take a substantiated decision not later than the day following the day of the receipt of the appeal. With its decision the body that has assigned the inspection may confirm in whole or in part or revoke the actions appealed against.(7) (Amended, SG No. 30/2006, effective 1.03.2007) Should the body under Paragraph 6 fail to make a decision within the term prescribed or in case the appeal is rejected the actions to secure evidence may be appealed against in respect of their compliance with the law within seven days after the expiry of the term for making a decision under Paragraph 6, of the receipt of the decision respectively, before the administrative court within the jurisdiction of which the body that has assigned the inspection is located. The court shall issue a ruling within 14 days, which shall not be subject to appeal.(8) The appeal shall not suspend the actions to secure evidence.(9) The decision under Paragraph 6 or the ruling under Paragraph 7, which order to discontinue the actions to secure evidence, shall be implemented by the customs authority that has undertaken them.Article 84g. (New SG No. 45/2005, amended, SG No. 105/2005) The provisions of Tax and Social Insurance Procedure Code shall apply to the issues relating to collection, verification and securing evidence and to preparing means of evidence that are not regulated respectively.Article 84h. (New SG No. 45/2005) In the course of conducting the inspection the customs authorities may impose interim security measures under the procedure of Chapter Twenty Six, Section Ia to prevent actions relating to disposition with the property of the inspected person that may result in impossibility or substantial difficulties to collect customs duties or other public state receivables.Article 84i. (New SG No. 45/2005) (1) The customs authorities carrying out an inspection within the framework of follow-up control may accept as established the levy elements determined by them as well as to accept as established the avoidance of trade policy measures when one of the following circumstances exists:1. lack or failure to present accounting information pursuant to the Accountancy Act or the way the accounting is kept does not allow to establish or to determine the amount of the public state receivables as well where the documents required to establish the amount of the public state receivables and to apply trade policy measures have been destroyed at variance with the established procedures;2. the required documents are missing or damaged in a way to make them unfit for use;3. the required additional information and data cannot be obtained since the inspected person has not been found at the registered address or at the permanent address following a conscientious and documented search by the customs authorities;4. in the course of the inspection the inspected person has failed to produce the relevant evidence within the time limit under Article 84d, Paragraph 2.(2) In the cases under Paragraph 1 the customs authorities shall take into consideration any of the circumstances related to the inspected person concerning:1. the type and nature of the activity carried out;2. the customs duties and other public state receivables paid;3. the transactions and the balance in the bank accounts;4. the official and private documents;5. the contracts concluded by the inspected person related to its business;6. the difference between the raw materials and resources supplied and input in production;7. aggregate information on the profit realised, respectively on the income or revenues from other persons engaged in the same or similar business under the same or similar conditions;8. price and other terms of the transactions concluded, including information on such transactions between persons related to the inspected person;9. the supplies received and carried out and the right to tax credit used;10. other evidence material to the specific case.(3) The circumstances under Paragraphs 1 and 2 shall be pointed out in the inspection report.(4) When the circumstances under Paragraph 1, Items 1,2 and 4 exist the customs authorities shall inform the inspected person that they accept as established the levy elements determined by them and that they accept as established the avoidance of the trade policy measures and shall determine a deadline for producing documents and an opinion.Article 84j. (New, SG No. 45/2005) (1) When in the course of an inspection evidence is collected within the time limit under Article 84c on customs violations committed or on a different amount of the customs duties and other public state receivables due, the customs authorities conducting the inspection shall hold with the inspected person a final discussion of the circumstances established in the course of the inspection and of the ensuing legal consequences unless the inspected person rejects the discussion in writing. Within seven days after the final discussion the inspected person may present an opinion in writing on the preliminary findings as well as new evidence.(2) Minutes shall be drawn up of the final discussion, which shall be signed by the customs officers who have conducted the inspection and by the inspected person.(3) In case the inspected person rejects the final discussion or does not sign the minutes under Paragraph 2 this fact shall be certified by two witnesses.Article 84k. (New, SG No. 45/2005) (1) Within 14 days after the expiry of the term under Article 84c, Paragraph 3, Item 6 a written report on the findings shall be drawn up which shall contain:1. number and date;2. the names and positions of the customs officers who have conducted the inspection;3. the factual and legal grounds for the inspection;4. information on the inspected person;5. the type and scope of the inspection;6. the actions carried out and the established facts and circumstances;7. the findings made;8 the steps taken to secure the evidence and the public state receivables;9. proposals on determining the amount of the customs duties and the other public state receivables and on instituting administrative penal proceedings;10. list of the evidence enclosed;11. signatures of the customs officers who have drawn up the report and of the head of the respective follow-up control unit.(2) The evidence enclosed with the report shall be an integral part thereof. The originals of the collected written evidence shall be enclosed with the copy of the report intended for the customs body that has assigned the inspection and certified copies thereof shall be enclosed with the copy intended for the inspected person.(3) The factual findings in the report must be supported with evidence and shall be deemed true unless proven otherwise.(4) Within seven days after its completion the inspection report and the evidence enclosed therewith shall be handed over to the inspected person against signature and shall be presented to the body that has assigned the inspection for follow-up action. In case it is impossible to hand over the report to the inspected person in person the customs authorities shall dispatch it by registered mail with a return receipt.(5) The inspected person may present written objections and produce additional evidence before the body that has assigned the inspection within 14 days after the date of receipt of the report.Article 84l. (New, SG No. 45/2005) The provisions of Article 211d shall apply to handing over notices and documents in the course of carrying out inspections within the framework of follow-up control.Chapter FifteenIMPORTATIONArticle 85. (1) Release for importation shall confer upon foreign goods the customs status of local goods.(2) Importation shall entail application of trade policy measures, completion of the formalities laid down in respect of importation of goods and the levying of the customs duties due.Article 86. (1) If after the date of acceptance of the importation customs statement but before the goods are released, the rate of customs duties or the charges with equivalent effect are reduced the reporting person may request application of the more favourable rates or charges. In such cases the provisions of Article 73 shall not apply.(2) Paragraph 1 shall not apply when the goods have not been released for reasons attributable to the reporting person.Article 87. When a consignment contains goods with different tariff classifications, the separate reporting of which leads to processing and costs disproportionate to the import duties chargeable, the customs authorities shall be entitled, at the request of the reporting person, to agree that import duties be charged on the whole consignment on the basis of the tariff classification of the goods with highest customs duty rate.Article 88. (1) (Amended SG No. 37/2003) Goods which due to their use for specific purposes are placed under import regime with reduced or zero rates of customs duties or with exemption of customs duties shall remain under customs supervision. Customs supervision shall come to an end when:1. the conditions laid down for granting a reduced or zero rate of duty or for exemption of import customs duties cease to apply;2. the goods are exported or destroyed; or3. the use of the goods for purposes other than those laid down for the application of a reduced or zero rate of duty or for exemption of customs duties is permitted subject to payment of the customs duties due.(2) The provisions referred to in Article 94 Paragraphs 2 and 3 and Article 96 shall apply, mutatis mutandis, to goods referred to in Paragraph 1.Article 89. Imported goods shall lose their status of local goods when:1. the import customs statement is invalidated after their release; or2. the import duties payable on those goods are repaid or remitted under terms and procedures laid down in the Regulations.Chapter SixteenSUSPENSIVE ARRANGEMENTS REGIMES AND CUSTOMS ECONOMIC REGIMESSection IGeneral ProvisionsArticle 90. (1) For the purposes of application of the regimes referred in Articles 91 to 96:1. the term "suspensive arrangements regime" shall refer to foreign goods, placed under the following regimes:(a) transit;(b) customs warehousing;(c) inward processing with deferred payment;(d) processing under customs control;(e) temporary importation.2. the term "customs economic regime" shall refer to goods placed under the following regimes:(a) customs warehousing;(b) inward processing;(c) processing under customs control;(d) temporary importation;(e) outward processing.(2) Goods placed under a deferred payment regime and goods under the inward processing regime in the form of the drawback system, that have undergone the formalities for import and the formalities provided in Article 128, Paragraph 4 shall be considered imported goods.(3) Imported goods, which under the inward processing regime or the customs control processing regime have undergone no form of processing, shall be considered goods in unaltered state.Article 91. The use of any customs economic regime shall be conditional upon authorization being issued by the customs authorities.Article 92. The authorizations referred to in Article 91 and in Article 106, Paragraph 1 shall be granted in compliance with the conditions provided for the respective regime:1. (amended and supplemented, SG No. 63/2000) to persons who are in a position to ensure the proper conduct of the operations; and2. (amended, SG No. 63/2000) when the customs authorities are in a position to ensure the supervision and control of the regime without having to introduce administrative requirements that do not correspond to the economic need for using the regime.Article 93. (1) The conditions under which the respective regime is applied shall be set out in the authorization.(2) The holder of the authorization shall be obliged to notify the customs authorities of any change occurring after its issuing which might influence its contents and the conditions for its application.Article 94. (1) In cases specified in the Regulations or when goods produced from goods under the suspensive arrangements customs regime shall not be considered as local, but as placed under the same customs regime.(2) For placing goods under the suspensive arrangements customs regime the customs authorities may require security for the customs debt.(3) Specific provisions may be laid down in the Regulations for providing the respective security for each customs regime with suspensive arrangementsArticle 95. (Amended and supplemented, SG No. 63/2000) (1) A customs economic regime with suspensive arrangements shall be concluded when the goods under this regime or the received compensating or processed products obtain a new permissible customs-approved assignment.(2) The customs authorities shall take all necessary measures prescribed in the Regulations in relation to the goods in respect of which the regime has not been concluded according to the conditions prescribed.Article 96. The rights and obligations of the holder of a customs economic regime may, on the conditions laid down by the customs authorities, be transferred consecutively to other persons who comply with the requirements for using the respective regime.Section IITransitArticle 97. (1) (Amended and supplemented, SG No. 37/2000) The transit regime shall allow the movement from one point to another point within the customs territory of the Republic of Bulgaria of:1. foreign goods without being charged with import customs duties and without being subject to trade policy measures;2. (amended, SG No. 63/2000, SG No. 37/2003; effective 1.11.2003) local goods in cases and under terms specified in the Regulations for which restrictive or promotional export measures have been provided for with the aim that these measures should not be avoided or used illegally.(2) (SG No. 37/2003; effective 1.11.2003) Movement as referred to in Paragraph 1 shall take place:1. under the provisions of the transit regime in the Republic of Bulgaria;2. under cover of a TIR Carnet used as transit guaranty document under the Customs Convention for International Transport of Goods under cover of TIR Carnet (TIR Convention 1975) where:(a) (amended, SG No. 37/2003; effective 1.11.2003) the movement began or is to end outside the country; or(b) (amended, SG No. 37/2003; effective 1.11.2003) the movement relates both to consignments of goods which must be unloaded in the country and to goods to be unloaded outside the country;3. under cover of an ATA Carnet used as transit guaranty document under the prescriptions of the Customs Convention for Temporary Admission of Goods (ATA Convention, 1961), as well as other international conventions, to which the Republic of Bulgaria is a party;4. (new, SG No. 37/2003; effective 1.11.2003) under the cover of form 302 (NATO MANIFEST 302) pursuant to the ratified, promulgated and effective international agreements of the Republic of Bulgaria with the North Atlantic Treaty Organisation, the NATO member-countries and the partner countries participating in "Partnership for Peace";5. (previous Item 4, SG No. 37/2003, effective 1.11.2003) by post (including parcel post).(3) The transit regime shall apply without prejudice to the specific provisions applicable to the movement of goods placed under an economic customs regime.Article 98. (Amended, SG No. 37/2003; effective 1.11.2003) (1) The transit regime shall end and the obligation of the holder of the regime shall be concluded when the goods placed under the regime and the required documents are presented at the customs office of destination in accordance with the provisions of the regime.(2) The customs authorities shall conclude the transit regime when they establish on the basis of comparing the information available at the sending with the information available at the receiving customs office that the transit regime has ended normally.Article 99. (Amended, SG No. 37/2003; effective 1.11.2003) The transit regime for carrying goods through the territory of another country shall be applied when:1. this possibility is provided under an international agreement;2. carriage through the other country is effected on the basis of a single transport document issued in the customs territory of the Republic of Bulgaria. In such cases the operation of that regime shall be suspended temporarily on the territory of the other country.Article 100. (Amended, SG No. 37/2003; effective 1.11.2003) (1) The persons responsible for the transit regime shall be obliged to provide security in order to ensure the payment of the customs debt and of the other public state receivables that might arise for the goods.:(2) The security may be:1. one-off, covering a single transit operation. or2. general, covering several transit operations when the customs authorities have permitted the person responsible to use such genera; security.(3) The permission under Paragraph 2, Item 2 shall be given to native person who:1. use regularly the transit regime or about whom the customs authorities know that they are capable of fulfilling their obligations for this regime, and2. have not committed serious or repeated violations of the customs or the tax legislation.(4) Persons who prove before the customs authorities that they meet higher reliability requirements may receive permission to use a general security of a reduced size or permission for exemption from the obligation to provide security. The additional criteria for this permission shall include:1. the correct use of the transit regime during a certain period;2. cooperation with the customs authorities, and3. in relation to the permission for exempting from the obligation to provide security - a sufficiently stable financial condition for covering the liability of the persons.(5) The detailed terms for applying the criteria as well as the procedure for giving the permission under Paragraph 4 shall be specified in the Regulations.(6) The permission for exempting from the obligation to provide security under Paragraph 4 shall not apply to transit operations comprising goods specified in the Regulations as high risk goods.(7) Taking into consideration the principles in Paragraphs 4 the use of a general security of a reduced size for the transit regime may be temporarily prohibited as an exceptional measure under special circumstances.(8) Taking into consideration the principles in Paragraphs 4 the use of a general security of a reduced size for the transit regime may be temporarily prohibited for goods which, when the general security regime is used, have been identified and are the subject of a wide range of fraud.(9) The measures under Paragraphs 7 and 8 shall be introduced with an order of the Director of the Customs Agency which shall be published in the State Gazette.Article 101. (Amended, SG No. 37/2003; effective 1.11.2003) No provision of security shall be required for:1. carriage by water or by air;2. carriage by electric lines and pipelines3. carriages by rail performed by the licensed railway carriers and carriage of postal Items, including parcels;4. carriage specified by a statutory instrument of the Council of Ministers.Article 102. (Amended and supplemented, SG No. 63/2000, amended, No. 37/2003; effective 1.11.2003) (1) The person responsible shall be the holder of the transit regime. The person responsible shall be obliged:1. to present the goods in the receiving customs office in an unchanged state within the prescribed term and in compliance with the measures taken by the customs authorities for their identification;2. to observe the provisions for the transit regime.(2) Notwithstanding the obligations of the person responsible under Paragraph 1 the carrier or the consignee who accepts the goods and knows that they have been placed under a transit regime shall also be obliged to present them in an unchanged state at the receiving customs office within the prescribed term and in compliance with the measures taken by the customs authorities for their identification.Article 103. (1) (Previous Article 103, SG No. 37/2003, effective 1.11.2003) The terms, procedure and exemptions in the application of the transit regime shall be established in the Regulations.(2) (New, SG No. 37/2003; effective 1.11.2003) While observing the measures provided for the goods in the Regulations it shall be allowed:1. to introduce through bilateral or multilateral agreements less strict formalities valid for certain types of goods or activities, pursuant to criteria specified in the agreements;2. to introduce with a Council of Ministers act less strict formalities for goods under certain conditions.Section IIICustoms WarehousingArticle 104. (1) The customs warehousing regime shall allow the placing and storage in a customs warehouse of:1. foreign goods which shall not be charged with import duties and shall not be subject to trade policy measures;2. local goods, for which pursuant to existing provisions the application of measures normally pertinent to export shall be used when placing them in a customs warehouse.(2) Customs warehouse shall mean any place approved by and under the supervision of the customs authorities where goods may be stored under certain conditions.(3) The cases in which the goods referred to in Paragraph 1 may be placed under the customs warehousing regime without being stored in a customs warehouse shall be determined in the Regulations.Article 105. (1) A customs warehouse may be either public or private. A public warehouse shall mean a warehouse available for use by any person for the warehousing of goods while a private warehouse shall mean a customs warehouse which can be used only for warehousing of goods by the warehouse keeper.(2) The warehouse keeper shall be a person authorized to manage the customs warehouse.(3) The depositor to the warehouse shall be the person bound by a customs statement to place the goods under customs warehousing regime or to whom these rights and obligations have been transferred.Article 106. (1) The opening and managing of a customs warehouse shall be allowed after the issue of an authorization by the customs authorities, unless the said authorities operate the customs warehouse themselves.(2) Any person wishing to open and manage a customs warehouse shall make a request in writing to the customs authorities containing the information required for granting the authorization and proving the economic viability for warehousing. The authorization shall lay down the conditions for opening and managing the customs warehouse.(3) The authorization shall be granted only to local persons.Article 107. The warehouse keeper shall be obliged:1. to ensure that while the goods are in the customs warehouse they are not removed from customs supervision;2. (amended SG No. 37/2003; effective 1.11.2003) to observe the obligations that arise from the storage of goods;3. to comply with the terms specified in the authorization.Article 108. (1) (Amended SG No. 37/2003) When the authorization concerns a public warehouse the responsibilities referred to in Article 107, Items 1 and/or 2 may be assigned exclusively upon the depositors in the warehouse.(2) The depositor shall be responsible at all times for complying with the obligations arising from the placing of goods under the customs warehousing regime.Article 109. The rights and obligations of a warehouse keeper maybe transferred to another person with the agreement of the customs authorities.Article 110. The customs authorities, without prejudice to the provisions laid down in Article 94, may demand that the warehouse keeper provides a guarantee in connection with the responsibilities specified in Article 107.Article 111. (1) The stock records of all goods placed under the customs warehousing regime shall be kept by a person approved by the customs authorities under terms and according to a procedure endorsed by them, except where the public warehouse is managed by the customs authorities.(2) Goods placed under the customs warehousing regime shall be entered in the records immediately after their entry in the warehouse.(3) Subject to the application of Article 92, the customs authorities may not require keeping stock records when:1. (amended SG No. 63/2000, supplemented, SG No. 37/2003; effective 1.11.2003) the responsibilities referred to in Article 107, Items 1 and/or 2 lie exclusively with the depositor; and2. the goods are placed under customs warehousing regime on the basis of a written report forming part of the normal procedure or a commercial or other document accompanied with a request for placing the goods under that customs regime.Article 112. (1) Where a reasonable economic need exists and customs supervision is not adversely affected thereby, the customs authorities shall be entitled to allow:1. local goods, other than goods referred to Article 104, Paragraph 1, Item 2 to be stored in a customs warehouse;2. foreign goods to be processed in the customs warehouse admitted under the inward processing regime, subject to the conditions provided for by that regime;3. foreign goods to be processed in the customs warehouse under the customs control processing regime, subject to the conditions provided for by that regime;4. formalities that may not be performed in a customs warehouse under Items 2 and 3 pursuant to the Regulations.(2) In the cases referred to in Paragraph 1 the goods shall not be placed under the customs warehousing regime.(3) The customs authorities may require the goods referred to in Paragraph 1 to be entered in the stock records under the procedure of Article 111.Article 113. (1) There shall be no limit to the length of time the goods may remain under the customs warehousing regime.(2) The Regulations may set certain cases where the customs authorities shall be entitled to set a time limit before the expiration of which the principal shall be obliged to apply for another customs assignment.Article 114. (1) While being under the customs warehousing regime, imported goods may be subject to the usual operations listed in the Regulations intended to ensure their preservation, improve their commercial appearance or quality or prepare them for distribution or resale.(2) The operations under Paragraph 1 shall be coordinated in advance with the customs authorities, which shall lay down the conditions for their performance.Article 115. (1) When specific circumstances so warrant, goods placed under the customs warehousing regime may temporarily be removed from the customs warehouse. The removal of the goods must be authorized in advance by the customs authorities, which shall lay down the conditions under which it may be carried out.(2) While they are outside the customs warehouse the goods may undergo the operations under Article 114 on the conditions set out therein.Article 116. The customs goods placed under customs warehousing regime may be transferred from one customs warehouse to another with the permission of the customs authorities.Article 117. (Amended SG No. 63/2000, SG No. 37/2003; effective 1.11.2003) (1) When a customs debt occurs for the import of goods and the customs value of these goods is determined on the basis of the price actually paid or payable that includes expenses for storing the goods and their preservation while the goods are kept in the warehouse, these expenses shall not be included in the customs value provided they have been separated from the price of the goods actually paid or payable.(2) When foreign goods have undergone the usual operations in the meaning of Article 114, on the request of the reporting person for determining the import customs duties, the data on the type, quantity and the customs value shall apply that would have been applicable at the moment of the occurrence of the customs debt for these goods had they not undergone the operations specified. The exceptions from these provisions shall be set out in the Regulations.(3) When foreign goods are placed under import regime pursuant to Article 82, Paragraph 1, Item 3 without they being presented before the customs authorities the type, customs value and the quantity of these goods at the moment of placing them under the customs warehousing regime shall be valid for determining the amount of the import customs duties provided these levy elements had been accepted or allowed by the customs authorities when placing the goods under the customs warehousing regime and the interested person has not submitted a request for applying the levy elements valid at the moment of the occurrence of the customs debt. The customs processing performed shall not prevent the application of the follow-up control provisions. For more information visit www.solicitorbulgaria.com id: 336 Mon, 04 Aug 2008 06:44:09 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-customs-act-part-1 http://web.solicitorbulgaria.com/index.php/bulgarian-customs-act-part-1 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/CUSTOMS_ACT1.jpg EUR http://web.solicitorbulgaria.com/index.php/bulgarian-customs-act-part-1 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Section IVInward ProcessingArticle 118. (1) Without prejudice to Article 119, the inward processing regime shall allow the following goods to be used in the customs territory of the Republic of Bulgaria in one or more processing operations:1. foreign goods intended for re-export in the form of compensatory products, without being subject to import duties or trade policy measures;2. (supplemented, SG No. 63/2000) imported goods with reimbursement of or exemption from the import duties chargeable if they are exported from the customs territory of the Republic of Bulgaria.(2) For the purposes of the inward processing customs regime, the following meanings shall apply:1. suspension payment system shall mean the inward proceeding regime as provided for in Paragraph 1, Item 1;2. drawback system shall mean the inward proceeding regime as provided for in Paragraph 1, Item 2;3. processing operations shall mean:(a) the treatment of goods including installing or assembling them to other goods;(b)… For more information visit http://www.solicitorbulgaria.com id: 335 Section IVInward ProcessingArticle 118. (1) Without prejudice to Article 119, the inward processing regime shall allow the following goods to be used in the customs territory of the Republic of Bulgaria in one or more processing operations:1. foreign goods intended for re-export in the form of compensatory products, without being subject to import duties or trade policy measures;2. (supplemented, SG No. 63/2000) imported goods with reimbursement of or exemption from the import duties chargeable if they are exported from the customs territory of the Republic of Bulgaria.(2) For the purposes of the inward processing customs regime, the following meanings shall apply:1. suspension payment system shall mean the inward proceeding regime as provided for in Paragraph 1, Item 1;2. drawback system shall mean the inward proceeding regime as provided for in Paragraph 1, Item 2;3. processing operations shall mean:(a) the treatment of goods including installing or assembling them to other goods;(b) the processing of goods;(c) the repair of goods, including restoring them entirely;(d) the use of certain goods defined in the Regulations which are not contained in the compensating products but which allow or facilitate their production even if they are entirely or partially used in the manufacturing process;4. compensating products shall mean all products resulting from operations for improving the goods;5. equivalent goods shall mean all Bulgarian goods used instead of imported goods for the manufacture of the compensating products;6. rate of yield shall mean the quantity or percentage of compensating products obtained in the course of processing a given quantity of imported goods.Article 119. (1) The customs authorities shall allow:1. compensating products to be obtained from equivalent goods;2. compensating products obtained from equivalent goods to be exported from the customs territory of the Republic of Bulgaria before importation of the imported goods.(2) Equivalent goods must be of the same quality and have the same characteristics as the imported goods. In cases determined by the Regulations, equivalent goods may be allowed to be at a more advanced stage of manufacture than the imported goods.(3) Where Paragraph 2 applies the imported goods shall be regarded for customs purposes as equivalent goods and the equivalent - as imported goods.(4) (Amended and supplemented, SG No. 37/2003; effective 1.11.2003) The application of the measures in Paragraph 2 may be prohibited, restricted or facilitated under terms and procedures specified in the Regulations.(5) Where Paragraph 2, Item 2 applies and the compensating products would be subject to export customs duties and they were not exported or re- exported under an inward processing regime, the holder of the authorization shall provide security to ensure payment of the duties, should the imported goods not be imported within the period prescribed.Article 120. The authorization for inward processing shall be issued at the request of the person who carries out or orders the processing operations.Article 121. The authorization shall be issued to local persons or to foreign persons in respect of imports of a non-commercial nature:1. (supplemented SG No. 37/2003; effective 1.11.2003) when the imported goods can be identified in the compensating products with the exception of goods mentioned in Article 118, Paragraph 2, Item 3 (d) or in the cases referred to in Article 119, when compliance with the conditions laid down in respect of equivalent goods can be verified;2. (supplemented SG No. 37/2003; effective 1.11.2003) when the inward processing regime can help create more favourable conditions for exportation or re-exportation of compensating products, provided that the essential economic interests of producers in the Republic of Bulgaria are not adversely affected (trade conditions). The cases in which trade conditions shall be deemed complied with shall be specified in the Regulations.Article 122. (1) The customs authorities shall specify a term within which the compensating products must be exported or re exported or assigned another customs assignment. This term shall be determined taking into account the duration of the processing operations and disposing with the compensating products.(2) (Supplemented, SG No. 63/2000) The term shall run from the date on which the foreign goods are placed under the inward processing regime. The customs authorities may grant an extension of this term upon submission of a duly substantiated request by the holder of the authorization. The customs authorities may allow a term, which shall start running within a calendar month or quarter, to expire on the last day of the subsequent calendar month or quarter respectively.(3) Where the provisions of Item 2 of Article 119 (1) apply, the customs authorities shall specify the term for importing and reporting foreign goods for the regime. This term shall run from the date of acceptance of the export manifest relating to compensating products obtained from the equivalent goods.(4) Special terms may be laid down in the Regulations for certain imported goods or processing operations.Article 123. (1) The customs authorities shall set either the rate of yield of the processing operations or the method of determining such rate. The rate of yield shall be determined on the basis of the actual terms under which the processing operation is, or should be, carried out.(2) Based on acquired data for generally performed processing operations, the Regulations may set a standard rate of yield for processing operations for goods with the same characteristics under the same technological conditions, leading to the manufacture of a compensating product with constant quality.Article 124. The cases and conditions under which the goods in unaltered state or compensating products shall be considered to have been placed under regime for importation shall be specified in the Regulations.Article 125. (1) Subject to the provisions laid down in Article 126, when a customs liability occurs, its amount shall be determined on the basis of levying elements corresponding to the imported goods at the time of accepting the report for placing these goods under the inward processing regime.(2) (Amended, SG No. 63/2000) If at the time of acceptance of the customs statement for a preferential tariff treatment within tariff quotas or ceilings exists for identical goods as those reported, these goods may be eligible for the envisaged preferential treatment, provided at the moment of acceptance of the statement for placing the imported goods under an inward processing regime they complied with the terms for preferential tariff treatment.Article 126. Beyond the cases under Article 125 the compensating products:1. (amended, SG No. 63/2000) shall be subject to the import customs duties for these products when they are placed under importation and are included in a list attached to the Regulations and if they are in amounts which correspond to the rate of yield of the exported part of the compensating products, not included in that list. The holder of the authorization may request for the duty on those products to be assessed under the conditions referred to in Article 125;2. shall be subject to import customs duties determined in accordance with the provisions applicable to suspensive arrangements or free zone or free warehouse regime, if they had been placed under such regime or are in a free zone or in a free warehouse, and:(a) the person concerned may request the duty to be assessed in accordance with Article 125;(b) when the compensating products have been assigned one of the customs assignments specified, other than processing under customs control, the amount of the import customs duties shall not be less than the amount calculated in accordance with Article 125;3. may be assessed under the customs control processing regime if the imported goods may be placed under that regime;4. (supplemented SG No. 63/2000) shall enjoy a more favourable tariff treatment owing to their special purpose, provided such treatment is envisaged for the imported identical goods;5. (supplemented SG No. 63/2000) shall be exempt from import customs duties if such exemption is provided for the imported identical goods in the cases under Article 181, Paragraph 1.Article 127. (1) The compensating products or goods in unaltered state or parts thereof may be exported temporarily for the purpose of further processing operations outside the customs territory of the Republic of Bulgaria under the terms of the outward processing regime.(2) When a customs debt occurs in respect of re-imported products and goods under Paragraph 1, the following shall be charged:1. (supplemented SG No. 63/2000) the compensating products or goods in unaltered state under Paragraph 1 whose import customs duties shall be calculated pursuant to Articles 125 and 126, and2. the re-imported products after their processing outside the customs territory of the Republic of Bulgaria, the amount of import customs duties of which shall be calculated pursuant to the provisions of the outward processing regime under the same terms that would have been applied had the products exported under the said regime been admitted for importation before such exportation took place.Article 128. (1) (Amended SG No. 37/2003; effective 1.11.2003) The drawback system may be applied to all goods, with the exception of the cases for which, at the time the accepting the import customs statement:1. there are quantitative import restrictions for imported goods;2. tariff measure within quotas are applied to imported goods;3. import or export licences are required for imported goods or certificates within the agricultural policy;4. export subsidies or charges are provided for compensating products.(2) (Amended SG No. 37/2003; effective 1.11.2003) No drawback shall be performed if at the moment of accepting the export manifest of compensating products the presentation of import or export licences is required for them or certificates within the agricultural policy or export subsidies or charges are provided for them.(3) (Amended SG No. 37/2003; effective 1.11.2003) The exceptions from Paragraphs 1 and 2 may be specified in the Regulations.(4) The import customs statement must contain indications that the drawback system is being used as well as the number and the date of the authorization for its application.Article 129. Under the drawback system the provisions laid down in Article 119, Paragraph 1, Item 2 and Paragraphs 3 and 5, Article 122, Paragraph 3, Article 124, Article 125, Article 126, Item 3 and Article 132 shall not apply.Article 130. Temporary exportation of compensating products carried out as provided for in Article 127, Paragraph 1, shall not be considered to be exportation within the meaning in Article 131 except where such products are not re-imported in the Republic of Bulgaria within the terms prescribed.Article 131. (1) The holder of the authorization shall be entitled to request the import duty to be reimbursed or remitted when he provides proof to the customs authorities that the imported goods under the drawback SYSTEM or the compensating products obtained from them are:1. exported; or2. placed, with a view of being subsequently re-exported, under one of the following customs regimes: transit, customs warehousing, temporary importation, inward processing with suspensive arrangement or in a free zone or a free warehouse.(2) The provision in Paragraph 1 shall be applied provided all conditions for using the respective regime have been met.(3) For obtaining a customs assignment under Paragraph 1, Item 2 imported goods and compensating products shall be deemed to be foreign goods.(4) The reimbursement application shall be made within a period specified in the Regulations.(5) (Amended SG No. 153/1998, No. 63/2000) Compensating products or goods in an unchanged state placed under a customs regime or in a free zone or a free warehouse pursuant to the provisions of Paragraph 1 may be placed under importation regime only with the authorized by the customs authorities. In such cases, in compliance with the provisions laid down in Article 126, Item 2, the amount of customs duties reimbursed or remitted shall correspond to the amount of the customs debt.(6) For the purpose of determining the amount of import customs duties to be reimbursed or remitted, the provisions in Article 126, Item 1 shall apply, mutatis mutandis.Article 132. When the inward processing regime applies under the suspension payment system compensating products shall be exempted from export customs duties collectable for identical products obtained form local goods instead of imported ones.Section VProcessing Under Customs ControlArticle 133. The customs control processing regime shall allow foreign goods to be admitted to the customs territory of the Republic of Bulgaria for processing with the purpose of altering their appearance or state without being subject to import customs duties or trade policy measures. Products resulting from such processing (processed products) shall be cleared for importation in the country after paying the import customs duties due for them.Article 134. (Supplemented SG No. 37/2003; effective 1.11.2003) The cases and the specific terms under which the customs control processing regime may be used shall be determined in the Regulations.Article 135. (1) Authorization for the customs control processing regime shall be granted at the request of the person who carries out the processing or arranges for it to be carried out.(2) The authorization shall be granted only to local persons when:1. (supplemented SG No. 153/1998, SG No. 63/2000) the imported goods can be identified in the processed products;2. after processing the goods it is not economically viable to restore the appearance they had before being placed under the regime;3. the use of the regime will not lead to circumvention of the rules on origin and quantitative restrictions applicable to imported goods;4. (supplemented SG No. 37/2003; effective 1.11.2003) the application of the regime stimulates the development of the respective activity in the country without affecting adversely essential economic interests of local manufacturers of similar goods (economic terms). The cases in which economic terms shall be complied with shall be specified in the Regulations.Article 136. The provisions laid down in Article 122, Paragraphs 1 and 2 and Article 123 shall apply as well in cases of processing under customs control, mutatis mutandis.Article 137. When a customs debt occurs in respect of goods in an unaltered state or products in an intermediate stage of processing in relation to that provided for in the authorization, the amount of that debt shall be determined on the basis of the levying elements established for the imported goods at the time of acceptance of the report relating for the processing of the goods under customs control.Article 138. (1) (Amended SG No. 37/2000) When allowing customs control processing regime if the imported goods qualified for the conditions of preferential tariff treatment and such treatment was applicable to products identical to the processed products cleared for importation the preferential customs rates shall apply for calculating the import customs duties for the processed products..(2) The provisions of Paragraph 1 shall apply also in cases of tariff quotas or ceilings. In these cases the quantity of imported goods actually used in the manufacture of the processed products shall be deducted from the quantity of the imported goods.Section VITemporary ImportationArticle 139. The temporary importation regime shall allow the use of the customs territory of the Republic of Bulgaria with total or partial exemption from import customs duties and without applying trade policy measures for foreign goods intended for re-export without undergoing any changes except for the normal depreciation due to their use.Article 140. Authorization for temporary importation shall be granted at the request of the person who uses the goods or arranges for them to be used.Article 141. (1) The customs authorities shall not authorise temporary importation when it is impossible to identify the imported goods.(2) The customs authorities may authorize temporary importation regime without identification of the goods when their nature or the operations to be carried out will not bring about any abuse of the regime.Article 142. (1) The customs authorities shall determine the period within which imported goods must be re-exported or obtain a new customs assignment. This period must be sufficient for carrying out the authorized use.(2) (Supplemented SG No. 63/2000) The maximum period during which the goods may remain under the temporary importation regime shall be twenty four months in compliance with the provisions on the specific terms under Article 143. The customs authorities may specify a shorter period with the consent of the person concerned.(3) (Supplemented SG No. 63/2000) In case of exceptional circumstances the customs authorities may, at the request of the person concerned, extend the terms under Paragraphs 1 and 2 within reasonable limits for carrying out the authorized use.Article 143. The cases, terms and conditions under which the temporary importation procedure may be used with total exemption from import duties shall be determined in the Regulations.Article 144. (1) (Supplemented SG No. 37/2003; effective 1.11.2003) The use of temporary import regime with partial exemption form import customs duties shall be authorised for goods which are not indicated in the cases under Article 143 or are indicated but do not comply with all conditions provided for the authorisation of temporary importation with full exemption form import customs duties.(2) (Amended SG No. 37/2003; effective 1.11.2003) The terms for using temporary import regime with partial exemption from import customs duties as well as the goods for which this regime may be used shall be determined in the Regulations.Article 145. (1) (Amended SG No. 153/1998) The amount of import customs duties payable in respect of goods placed under temporary importation regime with partial exemption from import duties shall be set at 3 per cent, for every month or fraction of a month, of the amount of customs duties which would have been payable for the said goods had they been allowed under importation regime on the date on which they were placed under the temporary importation regime.(2) The amount of the partial import customs duties due shall not exceed the, amount of customs duties which would have been due if the goods concerned had been cleared under the importation regime on the date they were placed under the temporary importation regime, without adding the interest due.(3) The transfer of the rights and obligations deriving from the temporary importation regime pursuant to Article 96 shall not require the application of the same exemption arrangement to each of the periods of use.(4) Where the transfer of the rights and obligations has been effected under the regime with partial exemption for two holders of the regime during the same month the holder of the initial authorization shall be liable for the amount of import customs duties due for the whole month.Article 146. (1) (Amended SG No. 63/2000) When a customs debt occurs in respect of imported goods its amount shall be determined on the basis of the levy elements appropriate to those goods at the time of acceptance of the customs statement for their placing under the temporary importation regime. In cases referred to in Article 143, specified in the Regulations, the amount of debt shall be determined on the basis of the levy elements appropriate to the goods in question at the time the corresponding customs debt occurred.(2) When, for a reason other than placing of goods under temporary importation regime with partial exemption from import duties a customs debt occurs in respect of such goods, the amount of that debt shall be equal to the difference between the amount of customs duties calculated pursuant to Paragraph 1 and the customs duties calculated pursuant to Article 145.Section VIIOutward ProcessingArticle 147. (1) Without prejudice to the provisions of Articles 156 to 161 and to Article 127 applicable under the standard exchange system the outward processing regime shall allow local goods to be exported temporarily from the customs territory of the Republic of Bulgaria in order to undergo processing operations and the products resulting from those operations to be cleared for importation regime with full or partial exemption from import customs duties.(2) The temporary export of local goods shall include their levying with export duties, application of trade policy measures and other formalities provided for the exportation of local goods outside the territory of the Republic of Bulgaria.(3) For the purposes of the outward processing regime, the following definitions shall apply:1. temporarily exported goods shall mean goods placed under the outward processing regime;2. processing operations shall mean the operations referred to in Article 118, Paragraph 2, Item 3 (a), (b) and (c);3. compensating products shall mean all products resulting from processing operations;4. rate of yield shall mean the quantity or percentage of compensating products obtained from the processing of a given quantity of temporarily exported goods.Article 148. (1) Local goods shall not be placed under the outward processing regime, when:1. their exportation gives rise to reimbursement or remission of import customs duties;2. (amended SG No. 37/2003, effective 1.11.2003) prior to the exportation they have been under the importation regime with full exemption from import duties by virtue of their use for specific purposes as long as the conditions for granting such exemption continue to apply;3. their exportation allows the receipt of subsidy.(2) Derogations from the provisions in Paragraph 1, Item 2 may be specified in the Regulations.Article 149. (1) Authorization for outward processing shall be issued at the request of the person who arranges the performance of the processing operations.(2) When the processing operations consist of incorporating goods with Bulgarian origin in the meaning herein into goods obtained outside the Republic of Bulgaria and imported as compensating products, authorization for the use of the outward processing regime may be granted to another person. The authorization shall be granted if the sale of the exported goods is facilitated without adversely affecting the essential interests of local producers of products identical or similar to the imported compensating products.(3) The cases and the specific arrangements under which the provisions laid down in Paragraph 2 shall apply shall be determined in the Regulations.Article 150. Authorization shall be granted to local persons when:1. it will be possible to establish that the compensating products have resulted from processing of the goods exported temporarily. Derogations from this provision may be specified in the Regulations;2. the authorization to use the outward processing regime shall not seriously harm the essential economic interests of local producers.Article 151. (1) The customs authorities shall specify the period within which the compensating products must be re-imported into the customs territory of the Republic of Bulgaria. Such period may be extended on submission of a duly substantiated request by the holder of the authorization.(2) The customs authorities shall set the rate of yield of the operation and, where necessary, the method for determining that rate.Article 152. (1) Full or partial exemption from import customs duties under Article 153, Paragraph 1 shall be authorised provided the compensating products have been reported for import on behalf of or at the expense or:1. the holder of the authorization; or2. any other local person, who has obtained the agreement of the holder of the authorization and if the condition of the authorization is met.(2) The total or partial exemption from import customs duties provided for in Article 153, Paragraph 1 shall not be authorised when one or some of the conditions or obligations under the outward processing regime are not fulfilled with the exception of cases where such non-fulfilment has not adversely affected the functioning of the regime.Article 153. (1) The total or partial exemption from import duties under Article 147, Paragraph 1 shall be effected by deducting from the amount of the import customs duties applicable to the imported compensating products the amount of the import customs duties that would have been applicable on the same date to the temporarily exported goods had they been imported into the customs territory of the Republic of Bulgaria from the country where they underwent the processing operation or the last processing operation.(2) (Supplemented SG No. 37/2003; effective 1.11.2003) The amount deducted under Paragraph 1 shall be calculated on the basis of the quantity and type of the temporarily exported goods on the date of acceptance of the statement placing them under the outward processing regime and on the basis of the other levy elements applicable to them on the date of acceptance of the customs statement for the compensating products. Where Paragraph 1 is applied the value of the temporarily exported goods shall be the one that shall be taken into consideration for these goods when assessing the customs value of the compensating products pursuant to Article 38, Paragraph 1, Item 2 (a) or if the value cannot be assessed in this way - the difference between the customs value of the compensating products and the processing costs determined through any other appropriate method.(3) (Amended SG No. 37/2003; effective 1.11.2003) For the purposes of applying Paragraph 2:1. the Regulations shall specify the costs that shall not be taken into consideration when assessing the deduction sum;2. when the temporarily exported goods, before their placement under the outward processing regime, have been placed under import regime with reduced customs duties by reason of their use for specific purposes and until the conditions specified for applying the reduced customs duties remain in force, the deduction sum shall be the amount of the import customs duties actually collected before their release under the import regime;(4) (New SG No. 37/2003; effective 1.11.2003) In case the goods exported temporarily could have used reduced or zero-rate customs duties due to their designation for specific purposes had they been placed under import regime, this amount of the customs duties shall be taken into consideration provided these goods had been subject to the same operations provided for such specific use in a country where they underwent the operation or the last processing operation.(5) (New SG No. 37/2003; effective 1.11.2003) When the compensating products use the preferential tariff measure in the meaning of Article 26, Paragraph 1, Item 4 or 5 and if such measure is applicable for goods with the same tariff number as the one of the goods exported temporarily, the amount of the customs duties that shall be taken into account when calculating the deduction sum under Paragraph 1 shall be the one that would have been applicable had the goods exported temporarily complied with the terms under which this preferential tariff measure could be applied;(6) (Previous (4) SG No. 37/2003; effective 1.11.2003) If within the trade turnover between the Republic of Bulgaria and third countries provisions have been made for exemption from import duties in respect of certain compensating products, the provisions laid down in this Article shall not apply.Article 154. (1) When the purpose of a processing operation is the repair of the goods exported temporarily their subsequent importation shall take place with full exemption from import customs duties if it is proven that the repairs were carried out free of charge due either to a warranty obligation or to a manufacturing defect.(2) Paragraph 1 shall not apply when the defect was established and taken into account at the time of the original importation of these goods.Article 155. (1) (Previous Article 155, SG No. 37/2003; effective 1.11.2003) When the purpose of the processing operation is the repair of the goods exported temporarily for payment the partial exemption from import customs duties shall be the establishing of the amount of the customs duties due on the basis of the levy elements of the compensating products at the date of acceptance of the import customs statement for those products, and the customs value shall be equal to the repair costs, provided that those costs represent the only payment by the holder of the authorization and are not influenced by any links between him and the repairer.(2) (New SG No. 37/2003; effective 1.11.2003) As a departure from the provisions of Article 153 the Regulations may specify in which cases and under what specific conditions the goods may be placed under import regime following outward processing, taking the processing costs as a basis for determining the customs value for the purposes of applying the Customs Tariff of the Republic of Bulgaria.Article 156. (1) The compensating product may be replaced by imported goods (replacement product) when applying the standard exchange system and in compliance with the provisions of Articles 156 to 161.(2) The customs authorities shall authorise the standard exchange system to be used when the processing operation involves the repair of Bulgarian goods.(3) The provisions applicable to compensating products shall also apply to replacement products with the exception of the ones under Article 149, Paragraphs 2 and 3 and Article 149.(4) The customs authorities may permit, under conditions they lay down, advance import of replacement products before the exportation of the goods exported temporarily.(5) In case of advance import of a replacement product security shall be instituted for the import customs duties.Article 157. (1) Replacement products shall have the same tariff classification, the same trade quality and technical characteristics as the goods exported temporarily intended for the envisaged repairs.(2) When the goods exported temporarily have been used before being exported, the replacement products must also have been used. The customs authorities may allow the replacement product not to be used if it has been supplied free of charge due to a warranty obligation or to manufacturing defect.Article 158. Standard exchange shall be authorized only when it is possible to verify that the conditions laid down in Article 157 are met.Article 159. (1) In case of advance import the export of goods exported temporarily shall be carried out within two months from the date of acceptance of the import customs statement for the replacement products.(2) The customs authorities may extend the period under Paragraph 1 on submission of a duly substantiated request by the holder of the authorization.Article 160. In case of advance import and when the provisions of Article 153 are applied the amount to be deducted shall be determined on the basis of the levy elements of goods exported temporarily on the date of acceptance of the statement placing them under the outward processing regime.Article 161. Article 149, Paragraphs 2 and 3 and Article 150 shall not apply vis a vis standard exchange.Article 162. The procedures provided for the outward processing regime shall also apply to goods using trade tariff policy measures other than the tariff.Chapter SeventeenEXPORTATIONArticle 163. (1) The exportation regime shall represent export of local goods outside the customs territory of the Republic of Bulgaria and shall entail the application of formalities provided for the exportation of goods, including trade policy measures and, where applicable, export customs duties.(2) Local goods intended for exportation shall be placed under the exportation regime. This provision shall not apply to goods placed under the outward processing regime or the temporary exportation regime.(3) The export manifest shall be submitted at the customs office in the area where the goods are packed or loaded for export. Exceptions from this provision may be specified in the Regulations.(4) To local goods for which the act provides fiscal preferences for export the exportation regime may apply even in cases where the goods do not leave the customs territory of the Republic of Bulgaria under terms and procedures specified in the Regulations.Article 164. Exportation shall be authorised provided the goods leave the customs territory of the Republic of Bulgaria in the same state they were in when the export manifest was accepted.Chapter EighteenTEMPORARY EXPORTATIONArticle 165. (1) The temporary exportation regime shall allow the export of local goods outside the customs territory of the Republic of Bulgaria under the condition that they be re-imported without having undergone any change except the normal depreciation due to their use.(2) (Amended, SG No. 63/2000) The terms, procedures and time limits concerning the temporary exportation regime shall be established in the Regulations.TITLE THREEOTHER CUSTOMS ASSIGNMENTSChapter NineteenFREE ZONES AND FREE WAREHOUSESSection IGeneral ProvisionsArticle 166. Free zones and free warehouses shall be separate parts of the customs territory of the Republic of Bulgaria or premises situated in that territory in which:1. for the purpose of import customs duties and trade policy importation measures foreign goods are considered as being outside the customs territory of the Republic of Bulgaria provided they have not been placed under import regime or another customs regime and have not been used or consumed in contravention to the customs regulations;2. local goods may use the measures applicable for exportation of goods if this is provided for in another act or instrument of the Council of Ministers.Article 167. (1) (Amended SG No. 37/2003; effective 1.11.2003) Free zones shall be enclosed with the exception of the ones under Article 168a. Free zones and free warehoused shall have defined entry and exit checkpoints.(2) New construction in a free zone shall be coordinated with the customs authorities regarding the possibility of exercising customs supervision and control. Coordination shall take place within a period of thirty days. If the customs authorities do not notify the applicant within this period the coordination shall be deemed completed.Article 168. (1) (Supplemented SG No. 37/2003; effective 1.11.2003) The perimeter and the entry and exit points of free zones or free warehouses shall be subject to supervision by the customs authorities save for the free zones specified in Article 168a.(2) The customs authorities shall be entitled to exercise customs control on persons, vehicles and goods conveyed by them that enter or leave a free zone or a free warehouse.(3) Access to a free zone or a free warehouse may be denied to persons who do not follow the rules provided herein.(4) Goods entering, leaving or remaining in a free zone or a free warehouse may be subject to control by the customs authorities. To enable such control all necessary documents accompanying the goods entering or leaving a free zone or a warehouse shall be presented to the customs authorities or a person designated by them who shall keep them at their disposal. The customs authorities may require presentation of other documents. When control is exercised the goods shall be made available to the customs authorities.Article 168a. (New SG No. 37/2003; effective 1.11.2003) (1) The Council of Ministers may establish free zones in which customs inspections and formalities shall be carried out pursuant to the customs warehousing regime applying the provisions for this regime related to customs duties. Articles 170, 176 and 179 shall not apply to these free zones.(2) The provisions under Article 44 (2), Article 2, Item 8 of Article 199 (1), Item 6 of Article 199 (3), Item 5 of Article 202 (1) shall not be applied for the free zones in compliance with para 1.Section IIPlacing Goods in Free Zones or Free WarehousesArticle 169. (1) Both local and foreign goods may be placed in a free zone or a free warehouse.(2) The customs authorities shall be entitled to require that goods which present a danger or are likely to damage other goods or which require special preservation conditions be placed in premises or locations specially equipped for such goods.Article 170. (1) Without prejudice to Article 168, Paragraph 4 the entering of goods in a free zone or a free warehouse shall not be reason for their presentation to the customs authorities, neither for filing a customs statement.(2) For carrying out the customs formalities provided, goods shall be presented before the customs authorities which:1. have been placed under a customs regime which is concluded when they enter a free zone or a free warehouse. Presentation of the goods shall not be necessary if it is not required under the provisions of the respective customs regime;2. are subject to authorisation for reimbursing or remitting import customs duties provided such authorisation allows to place these goods in free zone or free warehouse;3. qualify for the measures under Article 166, Item 2.(3) The customs authorities shall be notified of the goods subject to export customs duties or to other export regulation provisions.(4) At the request of the persons concerned the customs authorities shall certify the foreign or local status of goods placed in a free zone or a free warehouse.Section IIIOperation of Free Zones and Free WarehousesArticle 171. (1) There shall be no limit to the length of time goods may remain in free zones or free warehouses.(2) Time limits may be specified in the Regulations for some goods remaining in free zones or free warehouses.Article 172. (1) Any industrial and commercial activity as well provision of services shall be authorized in a free zone or a free warehouse in compliance with the provisions herein. The carrying out of such activities shall be notified in advance to the customs authorities.(2) The customs authorities shall be entitled to prohibit or restrict the activities referred to in Paragraph 1, depending on:1. the nature of the goods concerned;2. the requirements of customs supervision.(3) The customs authorities shall be entitled to prohibit persons who do not observe the provisions herein from carrying on an activity in a free zone or a free warehouse.Article 173. (1) Foreign goods located in a free zone or a free warehouse may:1. be placed under import regime pursuant to the requirements laid down for that regime and the provisions of Article 178;2. be subject to the usual operations specified in Article 114, Paragraph 1, without authorization;3. be placed under the inward processing regime pursuant to the requirements for that regime;4. be placed under the customs control processing regime pursuant to the requirements for that regime;5. be placed under the temporary import regime pursuant to the requirements for that regime;6. be abandoned in accordance with the provisions of Article 180;7. be destroyed provided the person concerned supplies the customs authorities with the required information.(2) When goods are placed under one of the regimes referred to in Paragraph 1, Items 3, 4 and 5 the control methods shall be complied with the conditions for operation of the free zones or the free warehouses and customs supervision within them.Article 174. (1) Local goods under Article 166, Item 2 may be subject to operations intended for their preservation. Such operations may be undertaken without the authorization of the customs authorities.(2) Local goods referred to in Article 166, Item 2 may be subject to operations other than the ones intended for their preservation under the control of the customs authorities provided they leave the customs territory of the Republic of Bulgaria after finishing these operations.(3) Local goods which have not made use of the measures referred to in Article 166, Item 2 may be subject to operations other than the ones intended for their preservation under the control of the customs authorities.Article 175. (1) Goods located in free zones and in free warehouses with the exception of foreign goods where Article 173 is applied and of local goods which have not made use of the measures provided for in Article 166, Item 2 shall not be used or consumed.(2) With the exception of the provisions applicable to product supplies of ships, aircraft and trains performing international transport, and to the extent allowed by the respective regime, Paragraph 1 shall not apply when goods are used or consumed which under import regime or temporary import regime are not charged with import customs duties and are not subject to trade policy measures.Article 176. (1) Any person engaging in storage, treatment or processing, or sale or purchase of goods in a free zone or a free warehouse shall keep stock records in a form approved by the customs authorities as soon as they are brought in the free zone or the free warehouse. The stock records must allow the customs authorities to identify the goods and to track their movements.(2) When goods are reloaded within a free zone or a free warehouse, the documents relating to the operation shall be kept at the disposal of the customs authorities. The short-term storage of goods in connection with such reloading shall be considered as part of the reloading.Section IVRemoval of Goods from Free Zones or Free WarehousesArticle 177. (1) In compliance with the special customs regulations goods leaving a free zone or free warehouse may be:1. exported or re-exported from the customs territory of the Republic of Bulgaria;2. brought into another part of the customs territory of the Republic of Bulgaria(2) With the exception of Articles 55 to 60 relating to local goods the provisions of Part Three shall apply also to goods brought into other parts of the customs territory of the country from free zones and free warehouses. These provisions shall not apply to goods which leave the free zone by sea or air without being placed under a transit or another customs regime.Article 178. (1) When a customs debt occurs in respect of foreign goods whose customs value is formed on the basis of a price actually paid or payable and which includes the cost of warehousing or preserving goods while they remain in the free zone or the free warehouse such costs shall not be included in the customs value provided they are shown separately from the price actually paid or payable for the goods.(2) When foreign goods have undergone usual operations in a free zone or free warehouse under the procedure of Article 114, Paragraph 1 the data on the type, quantity and customs value of the goods that are used for determining the amount of the import customs duties shall be the data that would have been applied at the moment of the occurrence of the customs debt had it not undergone the operations in question. This provision shall be applied at the request of the person reporting and provided the operations have been coordinated under the procedure in Article 114, Paragraph 2.(3) Derogations from the cases under Paragraph 1 may be determined in the Regulations.Article 179. (1) When goods are introduced or reintroduced from a free zone or a free warehouse in another part of the customs territory of the Republic of Bulgaria or when they are assigned a customs regime the certification pursuant to Article 170, Paragraph 4 may be used to prove the local or foreign status of these goods.(2) When no defined status has been determined for the goods they shall be considered as:1. local goods - for the purposes of charging export customs duties and for applying the export trade policy.2. foreign goods in all other cases.Chapter TwentyRE-EXPORTATION, DESTRUCTION, AND ABANDONMENT OF GOODS IN FAVOUR OFTHE STATE(Title supplemented - SG No. 37/2003)Article 180. (1) Foreign goods may be:1. re-exported from the customs territory of the Republic of Bulgaria;2. destroyed or abandoned in favour of the with the authorisation of the customs authorities.(2) (Amended SG No. 37/2003) The formalities for goods leaving and the trade policy measures shall apply in case of re-exportation.(3) (Amended SG No. 37/2003) The Council of Minister may specify cases where foreign goods may be placed under suspensive arrangements with a view of not applying trade policy measures in case of exportation.(4) (Amended SG No. 37/2003) The customs authorities shall be notified in advance of the re-export or the destruction. The customs authorities shall prohibit the re-export when the formalities under Paragraph 2 so require.(5) (New SG No. 37/2003) When goods are re-exported which during their stay in the customs territory of the Republic of Bulgaria have been under the customs economic regime a customs manifest shall be presented pursuant to the provisions of Articles 66 to 84 and Article 163, Paragraphs 3 and 4.(6) (Previous (4), supplemented SG No. 37/2003) The destruction and the abandonment of goods in favour of the state shall be carried out in compliance with the provisions of the Regulations. The destruction and the abandonment of goods in favour of the state shall not result in any costs for the state.(7) (Previous (5), SG No. 37/2003) Any waste or scrap resulting from the destruction of the goods shall obtain their own customs assignment as prescribed for foreign goods. It shall remain under customs supervision until the time laid down in Article 44, Paragraph 2.Article 180a. (New SG No. 37/2003) Goods that leave the customs territory of the country shall be under customs supervision. They may be subject to inspections by the customs authorities pursuant to applicable provisions. The goods must leave the customs territory of the country along the routes and in the ways specified by the competent authorities.PART FIVECUSTOMS REBATESChapter Twenty-OneEXEMPTION FROM CUSTOMS DUTYArticle 181. (1) The cases of granting exemption from customs duty both in exportation and importation of goods shall be specified in the Regulations.(2) Exemption from fees provided in other statutory instruments shall not include exemption of fees under Article 12 herein except when this is regulated expressly.(3) No exemption from customs duties shall be allowed for goods sold within the customs control zones in the border checkpoints, except for:1. the usual supplies of fuel and products for ships and aircraft;2. retail sale of goods in ports and airports after the customs control;3. retail sale of goods aboard aircraft and ships performing international transport;4. retail in specialized shops servicing the diplomatic corps.Chapter Twenty-TwoSEA-FISHING PRODUCTS AND OTHER PRODUCTS EXTRACTED FROM THE SEAArticle 182. Without prejudice to the requirements of Article 30, Paragraph 2, Item 6 the following shall be exempt from import customs duties when they are assigned import regime:1. sea-fishing products and other products extracted outside the territorial sea of the Republic of Bulgaria by vessels registered in the Republic of Bulgaria and flying its flag;2. goods obtained from products under Item 1 on board factory ships registered in the Republic of Bulgaria and flying its flag.Chapter Twenty-ThreeRETURNED GOODSArticle 183. (1) (Amended SG No. 63/2000) Local goods which, having been exported from the customs territory of Bulgaria, are returned to that territory within three years shall, at the request of the person concerned, be granted exemption from import customs duties.(2) (Amended SG No. 63/2000) The three years period may be extended by the Director of the Customs Agency or by a person authorized by him in order to take account of special circumstances.(3) (Amended SG No. 63/2000) When prior to their exportation from the customs territory of Bulgaria the returned goods had been subject to import regime at reduced or zero-rate customs duty because of their use for a specific purpose, the exemption from duty under Paragraph 1 shall be granted only if they are to be used for the same purpose. If these goods no longer have the same purpose the amount of import duties payable shall be reduced by the amount of customs duty paid on the original import. When the deduction sum is larger than the sum due for the returned goods no refund shall be allowed.(4) Exemption from importation customs duties under Paragraph 1 shall not be allowed for goods exported from the customs territory of the Republic of Bulgaria within the outward processing regime save for the cases when the goods are in the state in which they were exported.Article 184. Exemption from import customs duties under Article 183 shall be allowed for goods that are re-imported in the same state in which they were exported. Cases and circumstances in which exceptions from this provision shall be allowed may be specified in the Regulations.Article 185. (1) (Amended SG No. 63/2000) The provisions of Articles 183 and 184 shall apply, mutatis mutandis, to compensating products originally exported or re-exported subsequent to an inward processing regime.(2) The amount of import customs duty owed shall be determined pursuant to the rules applicable under the inward processing regime, the date of re-exportation of the compensating product being regarded as the date of their importation.PART SIXCUSTOMS DEBTChapter Twenty-FourSECURITY TO COVER CUSTOMS DEBTArticle 186. (1) When applying customs rules the customs authorities shall require security for customs debt to be provided; such security shall be provided by the person who is liable or who may become liable for that debt.(2) The customs authorities shall require only one security to be provided in respect of one customs debt.(3) The customs authorities may allow that the security be provided by a person other than the person that is required.(4) (Amended SG No. 63/2000) When the person who has incurred or who may incur a customs debt is a public or a local authority, the Director of the Customs Agency may exempt the said person in whole or in part of the obligation to provide security.(5) The customs authorities may waive the requirement for provision of security for insignificant sums the amount of which shall be specified in the Regulations.Article 187. (1) When customs provisions do not envisage an obligatory provision of security such security shall be required at the discretion of the customs authorities insofar as the payment of a customs debt, which has occurred or may occur is not certain within the prescribed period.(2) When the security under Paragraph 1 is not required the customs authorities may require from the person under Article 186, Paragraph 1 to undertake in writing a liability for the existing debt.(3) The security under Paragraph (1) shall be required:1. at the time of applying the provisions envisaging the possibility of requiring such security; or2. at any subsequent time when the customs authorities find that the payment of the customs debt that has occurred or may occur is not certain within the prescribed period.Article 188. At the request of the person under Article 186, Paragraph 1 or 3, the customs authorities shall be entitled to allow comprehensive security to be provided to cover two or more operations in respect of which a customs debt has occurred or may occur.Article 189. (1) (Supplemented, SG No. 37/2003) When customs provisions makes it compulsory for security to be provided the customs authorities, taking into consideration the specific provisions for the transit regime, shall determine the amount of such security at level equal to:1. the specific amount of customs debt or debts in question when that amount can be established with certainty at the time when the security is required; or to2. in the remaining cases - the maximum amount as estimated by the customs authorities of the customs debt or debts which have occurred or may occur for the rest of the cases.(2) When comprehensive security is provided for customs debts which vary in amount over time the amount of such security shall be set at a level enabling the customs debts in question to be covered at all times.(3) When customs provisions envisage that the provision of security is optional and the customs authorities require security to be provided the amount of the security shall be determined by those authorities so as not to exceed the level provided for in Paragraphs 1 and 2.(4) Under conditions and circumstances specified in the Regulations the customs authorities shall be entitled to agree with the debtor security in amounts other than the ones indicated herein.Article 190. Security may be provided by either a cash deposit or bank guarantee and in cases laid down in the Regulations by other means ensuring the payment of the customs debt.Article 191. A cash deposit shall be made in the currency and forms as provided in the legislation in force.Article 192. The customs authorities shall not be liable to pay interest upon accepted security.Article 193. (1) The bank guarantee shall be given in writing and the guarantor shall undertake to pay jointly and severally with the debtor the secured amount of a customs debt when the payment becomes executable.(2) The customs authorities shall be entitled to refuse to approve the bank guarantee proposed when it does not ensure payment of the customs debt within the prescribed period.Article 194. (1) The person that is required to provide security shall be free to choose between the types of securities laid down in Article 190.(2) The customs authorities shall be entitled to refuse to approve the type of security proposed as well as the method of its institution under a procedure specified in the Regulations when it is incompatible with the proper functioning of the customs regime concerned. The customs authorities shall be entitled to specify a period of time within which the selected method of security shall not be amended.Article 195. The customs authorities may refuse the security proposed by the debtor when it does not ensure payment of the customs debt.Article 196. When the customs authorities establish that the security provided does not guarantee or does no longer ensure the undoubted or total payment of the customs debt within the prescribed period they shall require the person referred to in Article 186, Paragraph 1 to provide additional security or to replace the original security with a new one.Article 197. (1) (Amended SG No. 63/2000) The security shall not be released until such time as the customs debt in respect of which it was provided is discharged or can no longer arise. The security shall be released immediately after the customs debt has been discharged or can no longer arise.(2) When the customs debt has been discharged in part or may not arise in respect of part of the amount that has been secured the respective part of the security shall be released at the request of the person concerned.Article 198. Derogations from the provisions in this chapter shall be admissible in order to take account of international agreements to which the Republic of Bulgaria is a party.Chapter Twenty-FiveOCCURRENCE OF A CUSTOMS DEBTArticle 199. (1) An import customs debt shall occur for goods subject to customs duties through:1. processing under the import regime;2. placing under the temporary import regime with partial exemption from import customs duties;3. unlawful introduction into the customs territory of the Republic of Bulgaria in contravention to the provisions under Articles 45 to 48;4. unlawful introduction into another part of the country's customs territory of goods located in free zones or free warehouses in contravention to the provisions set forth in of Article 177, Paragraph 1, Item 2;5. evasion from customs supervision;6. non-compliance with one of the requirements arising in case of temporary storage or of using of the customs regime;7. (amended SG No. 63/2000) non-compliance with one of the conditions governing the placing of the goods under the respective customs regime or the granting of a reduced or zero rate import duties or exemption from customs duties by virtue of the use of the goods for specific purposes;8. consumption or use in a free zone or in free warehouse under conditions other than those laid down by the legislation in force. When goods disappear and when no credible evidence is presented to the customs authorities it shall be deemed that the goods have been consumed or used in the free zone or the free warehouse;9. issue of documents necessary to grant preferential treatment in third countries to goods with Bulgarian origin when agreements concluded between the Republic of Bulgaria and these countries provide for the payment of customs duties due for the foreign goods input.(2) The provisions of Paragraph 1, Items 6 and 7 shall apply in cases other than those defined in Paragraph 5, where omissions found have brought about real consequences for the proper functioning of the temporary storage customs regime or any other customs regime.(3) An import customs debt shall occur:1. at the moment of acceptance of the customs statement under Paragraph 1, Items 1 and 2;2. at the moment of the unlawful introduction under Paragraph 1, Items 3 and 4;3. at the moment of the evasion from customs supervision under Paragraph 1, Item 5;4. at the moment when the obligation whose non-fulfilment gives rise to the customs debt ceases to be complied with under Paragraph 1, Item 6;5. at the moment of placing the goods under the respective customs regime under Paragraph 1, Item 7 of;6. at the moment when the goods are first used or consumed under conditions other than those laid down by the legislation in force, for the cases under Paragraph 1, Item 8;7. at the moment of acceptance of the export manifest for goods supplied with documents for use of preferential customs tariff treatment in the cases under Paragraph 1, Item 9;(4) Special cases of customs debt occurred which are not regulated in Paragraph 1 and the cases where no customs debt occurs shall be provided for in the Regulations.Article 200. (1) An exportation customs debt shall occur through:1. exportation from the customs territory of the Republic of Bulgaria, under cover of a customs manifest of goods subject to export duties;2. export from the customs territory of the Republic of Bulgaria of goods subject to export duties without an export manifest;3. failure to comply with the conditions for exportation outside the customs territory of the Republic of Bulgaria of goods with total or partial exemption from export duties.(2) An exportation customs debt shall occur:1. at the moment of acceptance of the export manifest under Paragraph 1, Item 1;2. at the time when the goods actually leave the territory of the country for the cases under Paragraph 1, Item 2;3. at the time when the goods reach a destination other than that for which their export was allowed with total or partial exemption from customs duties, or, should the customs authorities be unable to determine that time, the moment of expiry of the time limit set for the presentation of evidence that the conditions provided for the cases under Paragraph 1, Item 3 have been met.Article 201. (1) The customs debt referred to in Article 199, Paragraph 1 and Article 200, Paragraph 1 shall occur even if it relates to goods subject to prohibition or restriction measures on importation or exportation.(2) (Amended SG No. 30/1999) No customs debt shall occur on the unlawful introduction into the customs territory of the Republic of Bulgaria of counterfeit currency, narcotic drugs or psychotropic substances for which liability shall be provided under the Penal Code.(3) (New, SG No. 37/2003) When the customs legislation provides for favourable tariff treatment of goods due to their nature or special purpose or full or partial exemption from import or export customs duties pursuant to Articles 28, 88, 247, 282 and 183 to 185 such favourable tariff treatment or full or partial exemption from import or export customs duties shall apply to the cases of occurring import customs duty under Articles 199, 200 and 201 provided the actions of the interested person are not related to carelessness or gross negligence and the person proves that the remaining conditions for favourable tariff treatment or full or partial exemption have been met.Article 202. (1) The debtor for payment of the customs debt shall be:1. (supplemented SG No. 37/2003) the reporting person - for cases under Article 199, Paragraph 1, Items 1, 2 and 9 and Items 1 and Article 200, Paragraph 1, Items 1 and 3 of (1), and in the event of indirect representation also the person on whose behalf the customs statement has been drawn up. When the customs statement for placing under a regime has been drawn up on the basis of information that leads to partial or full failure to collect the customs duties payable the debtor for paying the customs debt shall be also the person that has provided the information required for drawing up the customs statement and who knew or should have known in view of the circumstances that the information was misleading.2. for cases under Article 199, Paragraph 1, Items 3 and 4:(a) the person or persons that introduced or participated in the unlawful introduction of the goods;(b) the person or persons that acquired or accepted the goods of which they knew or should have known under the circumstances that they were introduced unlawfully;3. for cases under Article 199, Paragraph 1, Item 5:(a) the person or persons who evaded customs supervision of the goods or participated in such evasion;(b) the person or persons who acquired or accepted goods for which they knew or should have known under the circumstances that goods had evaded customs supervision.(c) (new SG No. 63/2000, amended, SG No. 45/2005) the person responsible to fulfil the obligations ensuing from the temporary storage of the goods of from the use of the customs regime under which they had been placed;4. for cases under Article 199, Paragraph 1, Items 6 and 7 - the person or persons that failed to comply with the obligations arising from the temporary storage of the goods or from non compliance with one of the conditions of the customs regime;5. (amended, SG No. 45/2005) for cases under Article 199, Paragraph 1, Item 8 - the person who used or consumed the goods as well as any other person who has partaken therein, who knew or should have known under the circumstances that the goods were being used or consumed under conditions other than the ones laid down in the legislation in force; when the customs authorities cannot establish beyond any doubt the person who has used or consumed the goods, the person which is known to the customs authorities as the last holder of the goods shall be considered the debtor;6. for cases under Article 200, Paragraph 1, Item 2 - the person or persons that exported without an export manifest goods subject to customs duties and the person or persons who participated in such export and who knew or should have been known under the circumstances that an export manifest should have been submitted for the goods.(2) When there is more than one debtor for the same customs debt they shall be jointly and severally liable for paying such debt.Article 203. (1) Unless otherwise provided herein, the amount of import or export duties payable for certain goods shall be determined on the basis of the levy elements for those goods at the time when the customs debt in respect of them occurred.(2) Derogations from the provisions of Paragraph 1 for specific cases may be specified in the Regulations.(3) (New SG No. 63/2000) In cases specified in the Regulations when an import customs debt related to suspensive arrangement regime has occurred the debtor shall pay interest amounting to the official interest rate on the amount of the import customs duties due to the postponement of the date of occurrence or registering of the debt.Article 204. (1) A customs debt shall occur at the location where the events from which it arises occur.(2) When it is impossible to determine the location referred to in Paragraph 1 the customs debt shall be deemed to have occurred at the location where the customs authorities determine that customs duties are payable for the goods.(3) (Amended and supplemented SG No. 37/2003) When the customs regime for certain goods is not concluded and the location of the customs debt cannot be determined under the procedure of Paragraphs 1 and 2 the customs debt shall be deemed to have occurred at the location where the goods were placed under that regime.(4) (New SG No. 37/2003) When the information available allows the customs authorities to establish that the customs debt had already occurred when the goods had been in a different location at an earlier date it shall be deemed that the customs debt had occurred at the location that can be determined as the location of the goods at the earliest moment when it was possible to establish that the customs debt had occurred.(5) (Previous (4), SG No. 37/2003) Derogations from the provision of Paragraph 1 for individual specific cases may be specified in the Regulations.Chapter Twenty-SixPAYMENT OF THE CUSTOMS DEBTSection IEntry in the Records and Notification of the Amount of Duty to theDebtorArticle 205. (1) The customs authorities shall calculate the amount of customs duty resulting from a customs debt as soon as they have the necessary particulars and shall enter it in the accounting records or in any other equivalent medium which shall be entry in the records.(2) The cases where Paragraph 1 shall not apply as well as the procedures and time limits for entry in the records shall be defined in the Regulations.(3) (New SG No. 63/2000) In cases when a customs debt has occurred, with the exception of the cases under Article 199, Paragraph 1, Item 1 and Article 20, Paragraph 1, Item 1, and no data is available about the type of goods it shall be deemed that a debt has occurred:1. in the cases when there is data about a certain group of goods - for the commodity subject to the highest customs rate among all goods covered by this group;2. in the cases when there is no data about the type of goods for the commodity subject to the highest customs rate taking into account all state customs duties collectable by the customs authorities.Article 206. (1) (Supplemented, SG No. 45/2005) The debtor shall be notified in writing about the amount of the customs duty as soon as it has been entered in the records. The notification of the debtor shall be done under the procedure of Article 211.(2) When the amount of customs duty entered in the customs statement is for information purposes only and has still not been accepted by the customs authorities they shall carry out the notification only if the amount of customs duty does not correspond to the amount determined by them. When the amount of the customs duties indicated for information purposes corresponds to the amount determined by the customs authorities and in compliance with the respective provisions specified in the Regulations the authorisation for clearing the goods shall be deemed to be the notification of the debtor.(3) (New, SG No. 37/2003) The notification of the debtor shall not take place after the expiry of a period of three years from the date of which the custom debt occurred. This term shall stop running from the moment of submitting the appeal under Article 220 for the duration of the appeal proceedingsSection IaImposition of Security Measures by the Customs Authorities(New, SG No. 37/2003)Article 206a. (1) When the payment of customs duties and other state receivables collectable by the customs authorities has not been secured under the procedure of Chapter 24 the customs authorities shall be entitled to impose the following security measures:1. disitraint on movables and receivables of the debtor including in bank accounts;2. disitraint on goods in circulation;3. interdiction on real estate.(2) Security measures shall be imposed when it will be impossible or difficult without them to collect the customs duties and the state receivables collectable by the customs authorities.(3) Security measures shall be imposed in accordance with the amount of the customs duties and the other state receivables collectable by the customs authorities.(4) (Amended, SG No. 105/2005) The measures under Paragraph 1 shall not be imposed on property on which compulsory execution may not be performed without the agreement of the debtor neither on labour remunerations up to the amounts specified in the Tax and Social Insurance Procedure Code. Article 206b. (1) (Previous text of Article 206b, SG No. 45/2005) Security measures shall be imposed with an ordinance of the head of the customs office in the area where the amount of the customs debt subject to security or other state receivable has been established.(2) (New, SG No. 45/2005) The ordinance under Paragraph 1 may be appealed against under the procedure for appealing ordinances for enforced collection of public state receivables.Article 206c. (Amended, SG No. 105/2005) The provisions of Chapter 24 of the Tax and Social Insurance Procedure Code shall apply to issues not regulated herein.Section IIPayment Terms and MethodsArticle 207. Customs duties of which the notification under Article 206 has been done must be paid by the debtor within time limits specified in the Regulations.Article 208. (1) Payment shall be made in a cash desk at the customs office or through non-cash payment.(2) At the request of the debtor the payment may be made through deduction by the customs authorities of unduly collected from him sums for customs duties.Article 209. (1) The customs authorities may, at the debtor's request, grant deferment of payment of the customs duties under conditions and time limits specified in the Regulations.(2) The deferment of payment shall be authorised after the provision of security for the customs duties by the debtor.(3) For additional services performed in relation to authorising deferment of payment the customs authorities shall collect additional fees for expenses made.Article 210. Customs duties owed may be paid by a person other than the debtor.Article 211. (1) When the amount of customs duty has not been paid within the prescribed term the customs authorities:1. (amended, SG No. 63/2000) shall avail themselves of all options for ensuring payment open to them under the provisions of this Act and of other statutory instruments including issuance of administrative acts on enforced collection;2. (amended, SG No. 63/2000) collect legal interest on the amount of duty.(2) (Amended, SG No. 63/2000) Under the procedure of Paragraph 1 together with the legal interest rate the payment of other state receivables collectable by the customs authorities shall be secured when these are not paid within the specified time limits.Section III(New, SG No. 63/2000)Warrants for Enforced Collection of Public State ReceivablesIssued by the Customs AuthoritiesArticle 211a. The warrants for enforcing the collection of public state receivables shall be individual administrative acts issued by the head of the customs office on the territory of which the debt has occurred with which customs duties and other public receivables that have not been paid on time are established.Article 211b. (Amended SG No. 63/2000, SG No. 110/2001, SG No. 105/2005) The warrant shall be issued in four original copies: for the debtor, for the customs office, for the competent territorial directorate of the National Revenue Agency and for the State Revenue Agency.Article 211c. The warrant shall be issued in writing and it shall contain:1. the name of the body issuing it;2. name and number;3. factual and legal grounds for its issuing;4. data about the debtor;5. the amounts of the customs duties due and of the other public receivables;6. the date on which the public receivables have occurred;7. (repealed SG No. 37/2003);8. possible measures for its securing or preliminary execution;9. the institution before which an appeal can be submitted, and within what time;10. the date of issue and the signature of the respective head of customs office.(2) (Amended, SG No. 45/2005) The warrant shall be sent by the head of the customs office with advice of delivery to the State Revenue Agency for enforced execution save for the cases under Article 211f, Paragraph 2.(3) (New, SG No. 45/2005) The receipt of the warrant that is subject to execution shall be confirmed in writing by the public executive officer before the customs office, which shall monitor the arrival at the account of the customs duties sums and other state receivables.Article 211d. (Amended, SG No. 45/2005) (1) The delivery of the warrant to natural persons shall be certified by the signature of the person or his/her agent. When the delivering officer does not find the person he/she shall deliver the warrant to an adult member of the family if he/she agrees to deliver it. The person through which the delivery takes place shall sign a receipt and his/her full name, personal registration number and the capacity in which he/she is receiving the warrant shall be noted as well as the obligation to hand it over.(2) The delivery of the warrant to legal persons shall be certified by the signature of the official who has received the warrant and his/her full name, personal registration number and the position of the recipient shall be noted.(3) The delivery of the warrant at the place of work shall be done through an official of the administration. The delivery shall be in order if the full name, the personal registration number and the position of the recipient are specified.(4) The delivery officer shall certify with his/her signature the date and the way of delivery. Refusal to accept the warrant shall be certified by the signature of the delivery officer and at least one witness and the delivery officer shall make a note in the receipt of his/her full name, personal registration number and address. In this case the delivery of the warrant shall be deemed to be in order.(5) When no witness can be ensured the warrant shall be sent with advice of delivery. A warrant sent by mail with advice of delivery shall be deemed to have been legally delivered on the date the return receipt was signed or on the date of the rejection of the warrant delivery, and this rejection shall be certified by the postal officer. In case the person fails to appear and certifies receipt within the time limit specified in the postal notice the warrant and the post office documents shall be attached to the file and the warrant delivery shall be deemed in order.(6) Natural persons against whom proceeding have been instituted of which they have been notified and who reside abroad for more than 30 consecutive days shall be obliged to name a person on the territory of the country who shall represent them before the customs authorities and to whom notices and other acts of the customs administration shall be delivered.(7) The delivery of the warrant to persons who have been convicted to imprisonment and to persons who are in custody shall be done by the administration of the respective institutions.(8) The delivery of the warrant to regular servicemen in the armed forces shall be done through the commander of the respective unit.(9) Delivery of the warrant through enclosing in the file shall be done after the expiry of 14 days after placing a notice for the person to appear when:1. the person's address is unknown;2. the person, his/her agent or proxy cannot be found at the registered address or at the permanent address after a thorough and documented search by the customs authorities.(10) The notice under Paragraph 9 shall be placed at a place designed for this purpose in the respective customs office where the warrant is issued. The notice shall be published on the Web on the respective site of the customs administration.(11) The circumstances under Paragraph 9, Item 1 shall be certified with the file and under Paragraph 9, Item 2 - with a post office document or with the signature of the delivery officer and at least one witness and the delivery officer shall record his/her full name, personal registration number and address and shall make a note thereof in the receipt.(12) In case the person fails to appear before the expiry of the deadline under Paragraph 9 the warrant shall be attached to the file and the delivery shall be deemed in order.Article 211e. (Amended, SG No. 45/2005) When, after the warrant has been issued, the debtor pays the customs duties and the other state receivables or part thereof the head of the customs office shall notify thereof the public executive officer.Article 211f. The warrant may be appealed through the head of the customs authority who had issued it before the Director of the respective Regional Customs Directorate within fourteen days after it had been delivered to the debtor.Article 211g (1) The appeal of the warrant shall not stop its execution.(2) The execution of the warrant shall be suspended at the request of the debtor provided the latter presents security equal to the amount of the principal and the interest. The security may be a cash deposit or a bank guarantee.(3) The request for suspension of the execution shall be made simultaneously with the filing of the appeal supported by evidence of the security submitted.(4) The official interest rate on the principal shall be owed for the duration of the suspension.(5) (New, SG No. 45/2005) Paragraph 1 shall not apply in cases when liabilities are established by a warrant for enforced collection of public state receivables ensuing from the implementation of an international convention which the Republic of Bulgaria has joined and the debtors are the warranting organizations determined with an act of the Council of Ministers.Article 211h. The head of the customs authority through which the appeal has been filed shall be obliged to forward it not later than seven days after its receipt together with his opinion and all relevant documents to the Director of the respective Regional Customs Directorate on the territory of which the customs office in question is located. When a request for suspension of the warrant has been filed it shall also be attached together with the relevant proof. If an appeal submitted on time has been incorrectly addressed it shall be forwarded to the respective competent authority through official channels if the prescribed time limit is considered to have been observed.Article 211i. (1) The Director of the Regional Customs Directorate shall examine the appeal in substance and shall evaluate all circumstances related to the warrant.(2) The Director shall announce a substantiated decision within thirty days from receiving the appeal with which he shall confirm or revoke the warrant entirely or partially and in his substantiation he shall present the positions of the parties concerned and the grounds for his decision. He shall also express his position on the request to suspend the execution of the warrant in the cases when such a request had been filed.(3) In case the warrant issued proves to be contrary to the law another one shall be issued in its place, the Director of the Regional Customs Directorate shall revoke the appealed warrant and shall return the file with mandatory instructions to the respective head of customs office.(4) The decision shall be issued in four original copies: for the debtor, for the customs office, for the Regional Customs Directorate and for the State Revenue Agency and shall be sent to them not later than seven days after the expiry of the term under Paragraph 2.(5) (Amended, SG No. 45/2005, SG No. 30/2006, effective 1.03.2007) The warrant confirmed with a decision of the Director of the Regional Customs Directorate may be appealed before the relevant administrative court within fourteen days after receipt of the decision under Paragraph 4. The appeal shall be submitted through the respective head of the customs office.(6) The warrant may not be appealed in court in its part which had not been appealed by administrative procedure or in its part in which the appeal had been entirely or partially sustained.Article 211j. (1) (Amended, SG No. 105/2005, SG No. 59/2007) The provisions of Chapter 17 and 19 of the Tax and Social Insurance Procedure Code shall apply to legal appeal proceedings and to cassation proceedings and revoking of effective decisions may be requested by the persons concerned under the terms and procedures stipulated in article 303 of the Code of Civil Procedure. (2) (Amended, SG No. 105/2005) When the appeals are considered in court subpoenas shall be sent to the body which has issued the appealed act, to the appellant and to the National Revenue Agency in the cases when the latter is an interested party.Article 211k. The warrant shall enter into force when:1. it has not been appealed within the stipulated period before the respective Director of Regional Customs Directorate;2. it has been appealed within the stipulated period before the Director of the Regional Customs Directorate who has not sustained the appeal and the warrant has not been appealed in court within the stipulated period;3. it has been confirmed by the court.Article 211l. (Repealed, SG No. 45/2005) Chapter Twenty-SevenEXTINCTION OF CUSTOMS DEBTArticle 212. (1) A customs debt shall become extinct:1. by payment of the amount of the customs duty;2. by remission of the amount of the customs duty;3. when in respect of goods reported for a customs regime entailing the obligation to pay duties:(a) the customs statement has been invalidated;(b) (amended SG No. 153/1998) the goods, before their release, are either seized and simultaneously or subsequently confiscated; destroyed on the instructions of the customs authorities; destroyed or abandoned in accordance with Article 180; or destroyed or irrevocably lost as a result of their nature or of force majeure or unforeseeable circumstances;4. when goods in respect of which a customs debt occurred in accordance with Article 199, Paragraph 1, Items 3 and 4 are seized upon their unlawful introduction and are simultaneously or subsequently confiscated.(2) (Amended SG No. 63/2000) The right to collect customs duties shall be deemed extinct with the expiry of five years as of January 1st of the year subsequent to the year in which the customs debts and the other public state receivables occurred established by a warrant for enforced collection.(3) The provision of Paragraph 1 shall not apply in cases of judicial proceeding in court for the debtor's bankruptcy.Article 212a. (New, SG No. 45/2005) A customs debt that has arisen on the grounds of Article 199, Paragraph 1, Item 9 shall become extinct when the formalities performed for allowing preferential tariff treatment are revoked.Article 213. The ways of discharging customs debt occurring in specific cases shall be determined in the Regulations.Chapter Twenty-EightREIMBURSEMENT AND REMISSION OF CUSTOMS DUTYArticle 214. (1) Reimbursement of customs duties shall be the total or partial refund of import or export duties, which have been paid.(2) Reimbursement shall be made when it is established that at the time of payment the customs duties were not owed or the grounds for their payment were no longer valid.Article 215. (1) Remission of customs duties shall mean:(a) a decision to waive entirely or partially the collection of import or export customs duties; or(b) a decision to cancel entirely or partially the recording of the amount of export or import duty which has not been paid.(2) Remission of customs duties shall be made when it is established that they were placed in the records without being owed or that the grounds for their entry into the records was no longer valid.Article 216. (1) No reimbursement or remission shall be authorised when the actions which led to the payment or the entry in the records of customs duties that were not legally owed were the result of unconscientious behaviour of the person concerned.(2) Reimbursement or remission of import or export duties shall be authorised repaid or remitted upon an application in writing to the appropriate customs authority within a period of three years from the date on which the amount of those duties was communicated to the debtor.(3) (New, SG No. 45/2005) The term under Paragraph 2 may be extended if the interested person provides evidence that he/she was prevented from submitting such an application due to unforeseen circumstances or force majeure.Article 216a. (New, SG No. 45/2005) Reimbursement of import or export customs duties shall be done in case the customs declaration is cancelled and the custom duties have been paid. Reimbursement shall be allowed after a written application submitted within the time limit for submitting applications for cancelling customs declarations.Article 217. The Regulations may define specific cases and conditions other than those referred to in the previous articles allowing reimbursement or remission of import or export duties.Article 218. The Regulations may define the minimum amount of export or import duties below which reimbursement or remission of such duties shall not be allowed.Article 219. When, due to errors, the customs debt has been remitted or the amount of the respective customs duties has been reimbursed the initial debt shall become executable anew.Article 219a. (New SG No. 37/2003) For reimbursed customs duties no shall be due. In the cases when the customs duties have been determined by an act of the customs authorities that is in contravention to the law the paid sums that were nit due shall be refunded with the legal interest.PART SEVENAPPEAL OF DECISIONSArticle 220. Any person shall have the right to appeal against decisions of the customs authorities concerning him under the procedure of the Administrative Procedure Code.Article 221. When the decision appealed against is related to levying import or export duties suspension of the execution shall be subject to security on their amount.Article 222. The provisions in Part Seven shall not apply to cases related to repealing or amending acts issued by the customs authorities on the basis of the administrative and penal provisions herein.PART EIGHTADMINISTRATIVE PENAL PROVISIONSChapter Twenty-NineGENERAL PROVISIONSArticle 223. The customs authorities shall examine, establish and sanction each violation or attempt at violation of the provisions of the customs legislation insofar as the action is not a criminal offence.Article 224. The actions representing customs violations, the sanctions imposed for them and the liability related to them shall be specified herein.Article 225. (1) The establishment of violations, the issue of penal ordinances and the appeals thereof shall follow the procedure established by the Administrative Violations and Sanctions Act. (2) The execution of penal ordinances that have come into force and rulings of the court shall take place under the procedure of the Administrative Violations and Sanctions unless otherwise provided herein.Article 226. (1) (Amended SG No. 63/2000, SG No. 37/2003) Persons having perpetrated a customs violation within the customs territory of the Republic of Bulgaria as well as persons who instigate, assist, conceal or allow such a violation shall be liable under the existing administrative and penal provisions.(2) (Amended, SG No. 63/2000) The persons under Paragraph 1 shall be jointly liable for customs duties and other public state receivables incurred as a result of the violation with the exception of the sanction of fine.(3) (Repealed, SG No. 37/2003)(4) (Repealed, SG No. 37/2003)Article 226a. (New SG No. 37/2003) (1) The customs authorities shall decree seizure in favour of the state of the goods that are the object of the customs violation as well as the vehicles and the carriers used for the transportation or the carrying of the goods in the cases when such a measure is provided for in this or another act except for the cases under Article 229b, Paragraph 1, Item 3.(2) Before the conclusion of the administrative proceedings the customs authorities shall be entitled to dispose with the perishable goods under the procedure of Article 239 as well as with the goods the preservation of which results in significant costs for the customs administration.(3) When seizure in favour of the state is not possible or in the cases under Paragraph 2 the persons under Article 226, Paragraph 2 shall pay jointly a sum equal to the customs value of the object of the violation as well as the vehicles and other carriers used for transporting or carrying the goods.Chapter ThirtyADMINISTRATIVE SANCTIONSArticle 227. (1) In cases of customs violations the following sanctions shall apply:1. fine;2. temporary prohibition to engage in exportation and importation operations for legal persons or sole traders;3. (amended, SG No. 45/2005) pecuniary penalty for legal persons or sole traders.(2) The prohibition to engage in exportation and importation operations shall be a temporary prohibition for the violator to engage in such activity for a period from six months to two years. The sanction shall be imposed when the customs contraband is aggravated or in cases of repeated violations under this Act.Article 228. The customs authorities may, when minor violations of the customs legislation are established, impose fines on the spot under a procedure and in the amount provided for in Article 39 of the Administrative Violations and Sanctions Act. Article 229. (1) The customs authorities shall be entitled to seize and retain under their control the goods that are the object of customs violations, including vehicles and other means used for their concealment, importation to or exportation from the country as well as material evidence necessary or related to the investigation proceedings as well as goods and cash for securing possible receivables under the penal ordinance.(2) (Amended SG No. 63/2000) Goods seized and retained under the control of the customs authorities shall be kept by the customs office until the conclusion of the administrative penal and the criminal proceedings(3) (New SG No. 63/2000) The customs authorities shall retain and keep under customs supervision the goods which are object or means, or evidence of committed criminal offence until the completion of the customs formalities in respect of them in conformity with effective legislation.(4) (Amended SG No. 30/1999, previous (3), SG No. 63/2000) The provisions of the Narcotic Substances and Precursors Control Act shall apply to confiscated narcotic drugs.(5) (Previous (4), SG No. 63/2000) The customs authorities shall immediately deliver to the authorities of the Ministry of the Interior any confiscated firearms, ammunition and explosives.(6) (Previous (5), SG No. 63/2000) When the goods that are the object of customs violations are not seized in favour of the state, including when awarding their equivalent value, the customs duties and the other public state receivables for them shall be owed without exception.(7) (New SG No. 37/2003) The customs authorities shall be entitled to impose the measures under Chapter 26, Section Ia on securing receivables under an act drawn up on establishing a customs violation.Article 229a. (New SG No. 37/2003, amended, SG No. 105/2006) Until the issuing of the penal ordinance but not later than 30 days after drawing up the act on establishing a customs violation agreement may be reached between the administrative sanctioning authority and the violator on terminating the administrative penal proceedings for violations under Article 233, Paragraph 1 and 2 and 3, Article 234 and Article 234a except for the cases when the act is a criminal offence.Article 229b. (New SG No. 37/2003; effective 1.07.2003) (1) The agreement shall be drawn up in writing and shall reflect the agreement of the administrative sanctioning authority and the violator on the following issues:1. has an act been perpetrated, has it been perpetrated by the violator, has it been perpetrated by premeditation, does the act constitute a customs violation;2. what will the type and size of the sanction be;3. (amended, SG No. 45/2005) will the goods that are the object of the violation be confiscated in favour of the state as well as the vehicles and carriers used for their transport or carriage or shall they be paid for in an amount at least 25 percent of their equivalent value.(2) The agreement shall not specify:1. a sanction other than the one provided for in the act for the specific customs violation;2. an amount of the fine or pecuniary sanction lower than the minimum provided for the specific customs violation;3. (amended, SG No. 45/2005) a sum amounting to less than 25 percent of the cash equivalent of the object of the violation as well as of the cash equivalent of the vehicle or carrier representing their customs value.(3) The agreement shall be signed by the administrative sanctioning authority and by the violator or his agent authorized expressly for reaching agreement.(4) Within fourteen days after the signing of the agreement on terminating the administrative penal proceedings the Director of the Customs Agency or a person authorised by him shall issue a decision approving or refusing to approve the agreement. Decisions with which agreements on terminating the administrative penal proceedings are approved shall be sent to the respective public prosecutor within seven days after their issuing.(5) The agreement on terminating the administrative penal proceedings shall be approved on condition that the requirements of the law have been complied with and the specified in it public state receivables have been paid or have been secured in the deposit account of the respective customs authority.(6) The decision under Paragraph 4 shall not be subject to appeal save for a decision approving an agreement on terminating the administrative penal proceedings against which the public prosecutor may file an objection in court in relation to its conformity with the law under the procedure of the Administrative Procedure Code. In this case the Prosecutor's objection shall not stop the execution of the decision.(7) The terms for issuing a penal ordinance shall stop running as of the moment of instituting judicial proceedings on a prosecutor's objection until their conclusion.(8) In the cases when the agreement on terminating the administrative penal proceedings is not approved or the decision with which it is approved is rescinded by the court the administrative sanctioning authority shall issue a penal ordinance without exception.Article 229c. (New SG No. 37/2003; effective 1.07.2003, amended, SG No. 105/2005) The agreement on terminating the administrative penal proceedings shall enter into force on the date of its approval. The agreement shall have the consequences of a penal ordinance that has entered into force and shall be subject to compulsory execution under the Tax and Social Insurance Procedure Code. Chapter Thirty-OneCUSTOMS REGIME VIOLATIONS PROCEEDINGSArticle 230. The customs authorities shall issue an act in all cases of customs regime violations.Article 231. (Amended SG No. 63/2000) Penal ordinances shall be issued by the Director of the Customs Agency or by officials appointed by him.Article 232. (1) (New SG No. 63/2000, SG No. 37/2003) When the perpetrator is unknown the act shall be signed by the person who has drafted it and by one witness and shall not be served. In that case a penal ordinance shall be issued which shall enter into force at the moment of its issuing.(2) (Previous Article 232, amended SG No. 63/2000) When the perpetrator is a known person not found at the address shown at the time of serving the administrative violation act or has left the country or has indicated only an address abroad the penalty decree shall not be served. The decree shall be deemed to have become effective two months after the date of issuing it.Chapter Thirty-TwoCUSTOMS VIOLATIONS AND DEFINING ADMINISTRATIVE SANCTIONSArticle 233. (1) (Amended, SG No. 45/2005) Any person who carries or transports goods through the state border or any person who attempts to do so without the knowledge and authorisation of the customs authorities, insofar as the said act is not a criminal offence, shall be sanctioned for customs contraband with a fine amounting between 100 and 200 per cent on the goods' customs value.(2) (New, SG No. 105/2006) For customs smuggling shall be sanctioned any one, who carries or transports goods through the external border of the European Union without the knowledge and the permission of the customs authorities and the goods has been discovered as a result of a check on the territory of Republic of Bulgaria.(3)(Amended, SG No. 45/2005, renumbered from Paragraph 2, SG No. 105/2006) When the object of customs contraband are goods for which excise duty is due or which are prohibited for exportation and importation the fine shall be between 150 and 250 per cent of the customs value of the goods.(4) (Renumbered from Paragraph 3, SG No. 105/2006) The goods that are the object of customs contraband shall be confiscated in favour of the state regardless of who their owner is and if they are missing or have been alienated their equivalent value shall be awarded constituting their customs value.(5) (Renumbered from Paragraph 4, SG No. 105/2006) The goods referred to in Paragraph 3 shall be confiscated in all cases even where the stipulator is unknown.(6) (Renumbered from Paragraph 5, SG No. 105/2006) Vehicles and movable used for transportation of goods that are the object to customs contraband shall be confiscated, regardless of who the owner is, except if their value apparently does not correspond to the value of the object of customs contraband.Article 234. (Amended, SG No. 63/2000, No. 37/2003, No. 45/2005) (1) Any person who evades or attempts to evade:1. complete or partial payment or securing of customs duties or of other public state receivables collectable by the customs authorities, or2. prohibitions or restrictions on the importation and exportation of goods or the enforcement of trade policy measures shall be sanctioned for customs fraud.(2) For customs fraud the sanction shall be fine - for natural persons or pecuniary sanction for legal persons and sole traders from 100 to 200 percent of:1. the amount of the evaded state public receivables - for a violation under Paragraph 1. Item 1;2. the customs value of the goods that are the object of the violation under Paragraph 1, Item 2;(3) When the object of the customs fraud are goods for which excise duties are owed the sanction shall be fine - for natural persons or a pecuniary sanction - for legal persons and sole traders from 150 to 250 percent of:1. the amount of the evaded public state receivables - for a violation under Paragraph 1, Item 1;2. the customs value of the goods that are the object of the violation under Paragraph 1, Item 2.(4) (Amended, SG No. 105/2006) The provisions of Article 233, Paragraphs 4 and 5 respectively shall apply in the cases under Paragraphs 1 and 3.Article 234a. (New SG No. 63/2000, amended, SG No. 45/2005) (1) Any person who deflects temporarily stored goods or goods subject to customs regime or customs assignment by failing to meet the conditions stipulated in the statutory instruments or determined by the customs authorities shall be sanctioned with a fine - for natural persons or a pecuniary sanction - for legal persons and sole traders from 100 to 200 per cent of the customs value of the goods that are the object of the violation.(2) When the object of the violation under Paragraph 1 are goods for which excise duty is owed the sanction shall be fine - for natural persons or a pecuniary sanction - for legal persons and sole traders from 150 to 250 per cent of the customs value of the goods that are the object of the violation.(3) (Amended, SG No. 105/2006) The provisions of Article 233, Paragraphs 4, 5 and 6 accordingly, shall apply in the cases under Paragraphs 1 and 2.Article 235. (1) (Supplemented, SG No. 63/2000, SG No. 45/2005) Any person who sells, buys or attempts to sell or buy, who gives or accepts as gift, for safekeeping, use, lease or pledge goods which he knows or should reasonably have known to have been imported in violation of the customs legislation or in violation or restrictions and conditions under the norms and regulations concerning goods imported duty free, or goods imported with reduced or zero-rate customs duties on account of their special purpose shall be sanctioned with a fine - for natural persons or a pecuniary sanction - for legal persons and sole traders - up to BGN 1,000.(2) When the disposal under Paragraph 1 is done with goods that are objects of customs violations referred to in Articles 233 and 234 the goods in question shall be confiscated.(3) The sanctions imposed shall not exempt such persons from payment of the customs duties due or other state receivables collectable by the customs authorities save for the cases referred to in Paragraph 2.Article 236. The sanction referred to in Paragraph 1 shall apply to persons who do not comply with their obligations pursuant to Article 235, Paragraph 1 herein.Article 237. If goods which by virtue of their nature or their quantity do not have commercial character and are required to be reported are not reported by travellers crossing the state border and are discovered at the usual places during a customs inspection the goods shall be confiscated in favour of the state regardless of whose property they are without the imposition of a fine.Article 238. (1) (Supplemented, SG No. 45/2005) Any violation of statutory instruments applicable to goods under customs supervision established by the customs authorities shall be punishable by the fine or the pecuniary sanction pursuant to Article 235, Paragraph 1 unless otherwise provided.(2) The same sanction shall apply to any person who is resisting the customs authorities performing their duties or who is liable under the provisions herein to present to the customs authorities goods, documents or information, but refuses this.Article 238a. (New SG No. 63/2000, supplemented SG No. 45/2005 ) Any person, who fails to meet the deadlines stipulated in the statutory instruments or determined by the customs authorities shall be sanctioned by a fine - for natural persons or a pecuniary sanction - for legal persons and sole traders - up to BGN 2,000.Article 238b. (New, SG No. 45/2005) A person who fails to comply with an obligation under Article 10, Paragraph 5 shall be sanctioned by a fine of up to BGN 1000.PART NINEDISPOSAL OF GOODS SEIZED OR ABANDONED IN FAVOUR OF THE STATE ANDDISTRIBUTION OF THE PROCEEDSArticle 239. The customs authorities shall dispose of goods seized or abandoned in favour of the state under terms and procedures laid down in the Regulations.Article 240. (1) From the sums received from the sale of goods abandoned or seized in favour of the state the expenses made by the customs authorities for their tracking, transportation and storage shall be deducted, as well as the expenses incurred for their valuation and sale.(2) (Amended SG No. 83/1999) After deducting the expenses made the sums under Paragraph 1 and the sums equal to the value of the goods confiscated, missing or confiscated at a previous stage shall be deposited as revenues pursuant to Article 14.SUPPLEMENTARY PROVISION 1. Within the meaning herein:1. "Release of goods" shall be the clearance by the customs authorities of goods for the purposes stipulated by the customs regime under which they are placed.2. "Import customs duties" shall be customs duties and charges having an equivalent effect payable on the importation of goods.3. " Report" shall be the act whereby a person indicates in the prescribed form and manner a wish to place goods under a given customs regime.4. "Export customs duties" shall be customs duties and charges having an equivalent effect to customs duties payable on the exportation of goods.5. (Amended SG No. 153/1998) "Local person " shall be any natural person with a permanent residence in the Republic of Bulgaria; as well as any legal person that has its registered office in the Republic of Bulgaria according to the Bulgarian legislation.6. "Local goods" shall be:(a) goods wholly obtained or produced in the customs territory of the Republic of Bulgaria under the conditions referred to in Article 30 and not incorporating goods imported from other countries. The Regulations may specify cases when goods produced from goods under the deferred payment regime shall not be considered local goods;(b) goods imported under the established procedure to the territory of the Republic of Bulgaria and released for importation;(c) goods produced within the customs territory of the Republic of Bulgaria either only from goods referred to in letter "b" or from goods referred to in letter "a" and "b".7. "Customs debt" shall be the liability of a person to pay the import customs duties - import customs debt, or export customs duties - export customs debt which apply to specific goods under the legislation in force.8. "Customs assignment of goods" shall be:(a) placing goods under a customs regime;(b) entry of goods into a free zone or free warehouse;(c) re-exportation of goods from the customs territory of the Republic of Bulgaria;(d) destruction of goods;(e) abandonment of goods in favour of the state.9. "Customs authorities" shall be the officials in the Customs offices exercising customs supervision and control.10. "Customs regime" shall be:(a) importation;(b) transit;(c) customs warehousing;(d) inward processing;(e) processing under customs control;(f) temporary import;(g) outward processing;(h) exportation;(i) temporary exportation.11. "Customs status" shall be the status of goods for the purposes of customs control as local or foreign goods.12. "Presentation of goods to the customs authorities" shall be the notification of the customs authorities, in the manner laid down, of the arrival of goods at the customs office or at any other place designated or approved by them.13. "Decision" shall be any administrative act pertaining to the application of customs regulations issued by the customs authorities on a particular case which is related to legal consequences for one or more specific or identifiable persons. This definition shall include also the binding information under Article 23.14. "Goods" shall be all types of objects carried through the state border, including through pipelines and electric power lines, as well as vehicles, travellers luggage and other parcels;15. "Holder of authorization" shall mean the person to whom an authorization has been issued.16. (Amended SG No. 63/2000) "Holder of regime" shall be the person on whose behalf the reporting was made, or the person to whom the rights and obligations of the aforementioned person in respect of a customs regime have been transferred.17. "Foreign goods" shall be goods other than local goods. Local goods shall lose their customs status when they leave the customs territory of the Republic of Bulgaria.18. "Tariff quota" shall be the quantity of goods defined in a value or physical units, for which for a defined period reduced rate of customs duty shall apply, whereas as the quantity is exhausted the rate under the customs tariff shall be restored.19. "Tariff ceiling" shall be the quantity of goods defined in a value or physical units, for which a reduced rate of customs duty shall apply, whereas as this quantity is exceeded the rate of duty under the customs tariff may be restored as provided in the act on its introduction.20. "Charges for additional services provided" shall be fees pursuant to the principles in Article VIII of the General Agreement on Tariffs and Trade and related to activities such as: issue of licenses, statistical services, foreign exchange control, issue of documents and certifying, analysis and inspection, as well as customs activity outside the working place and working hours.21. (New SG No. 30/1999) "Controlled delivery" shall mean the methods by which exportation from, transit through or importation to the territory of a country or several countries is allowed of illegally sent or suspected of being illegally sent narcotic substances and precursors and their analogues or substances that substitute them with the knowledge and under the control of the competent authorities of these countries with the purpose of discovering the persons engaging in illegal trafficking.22. (Previous Item 21 - SG No. 30/1999) "Customs territory of the Republic of Bulgaria" shall be the territory of the Republic of Bulgaria.23. (New, SG No. 153/1998, previous Item 22 - SG No. 30/1999, amended, SG No. 63/2000) "Reporting person" shall be the person performing the act of reporting on his own behalf, or the person on whose behalf the reporting is performed.24. (New SG No. 63/2000) "Official secret" shall be:(a) the specific individualized data entered in the customs statements and in the enclosed documents with the exception of the data included in the public registers;(b) the data from trade contracts, including data on the amount and mode of payment;(c) other specific individualized data obtained or collected in the course of performing customs supervision and control or of other actions provided for herein.25. (New SG No. 63/2000) "Customs authorities" shall be:(a) the Central Customs Directorate;(b) the regional customs directorates;(c) the territorial customs directorates;(d) the customs offices;(e) the customs posts.26. (New SG No. 37/2003) "Agreement on the Rules of Origin", "General Agreement on Tariffs and Trade of 1994" and "Agreement on the Application of Article VII of the General Agreement on Tariffs and Trade" shall be multilateral agreements on the trade with goods from Annex 1A to the Marrakech Agreement establishing the World Trade Organisation (Annex to the Protocol on the accession of the Republic of Bulgaria to the Marrakech Agreement establishing the World Trade Organisation (SG No. 67/2002).27. (New SG No. 37/2003) "List of the Obligations and Concessions Annexed to the General Agreement on Tariffs and Trade of 1994" shall be the list relating to the Republic of Bulgaria to the Protocol on the accession of the Republic of Bulgaria to the Marrakech Agreement establishing the World Trade Organisation (Addition to the Protocol on the accession of the Republic of Bulgaria to the Marrakech Agreement establishing the World Trade Organisation, (SG No. 67/2002).28. (New SG No. 37/2003) "Combined Nomenclature of the Republic of Bulgaria" shall be the nomenclature of goods used for the purposes of levying customs duties and the application of non-tariff measures of trade, agricultural, customs and other policies related to importation and exportation as well as for statistic accounting of the importation and exportation of goods.29. (New SG No. 37/2003) "Combined Nomenclature applied in the member countries of the European Union" shall be the nomenclature of goods introduced with a Regulation of the Council of the European Communities used for the common customs tariff of the European Communities, of foreign trade statistics and the other community policies related to importation and exportation of goods.30. (New SG No. 37/2003) "Harmonised Commodity Description and Coding System" shall be a nomenclature of goods based on the Convention on the Harmonised Commodity Description and Coding System of 1983 signed in Brussels within the framework of the World Trade Organisation.31. (New SG No. 37/2003) "Customs intelligence" shall be the collection, processing, verification and analysis of information by the customs authorities for combating customs and foreign exchange violations and offences.32. (New, SG No. 45/2005) "Trade policy measures" shall be non-tariff measures introduced as part of the trade policy of the Republic of Bulgaria with statutory instruments regulating the import and export of goods such as monitoring or protection measures, qualitative restrictions or limits as well as import and export prohibitions.TRANSITIONAL AND FINAL PROVISIONS 2. The Excise Tax Act (promulgated in the State Gazette No. 19/1994; Amended and supplemented in Nos. 58 and 70/1995, Nos. 21, 56 and 107/1996 and No. 51/1997) shall be Amended and supplemented as follows:1. Article 5 shall be amended as follows:(a) in Paragraph 4, the words "temporary importation regime" shall be substituted by "customs regime with suspensive arrangements, except for transit";(b) paragraph shall be repealed.2. In 2 of the Supplementary Provisions, Items 7 and 8 shall be added:"7. "Enterposed warehouse" shall be a customs warehouse opened and managed under the procedure of Articles 104 to 117 of the Customs Act; 8. "Duty-free zones" shall mean free zones and free warehouses opened and managed under the procedure of Articles 166 to 179 of the Customs Act. " 3. The Value Added Tax Act (promulgated in the State Gazette No. 90/1993; amended and supplemented in No. 57/1995, Nos. 16, 56 and 104/1996 and Nos. 51, 86 and 111/1997) shall be amended and supplemented as follows:1. Article 23 shall be amended as follows:"Article 23. (1) No tax shall be due for import of goods when:"1. the goods enter free zones, entreposed warehouses or duty-free trade outlets;2. valuable metals are imported intended for the Bulgarian National Bank;3. an act of parliament or an international agreement ratified and promulgated as provided in the legislation in force, provide for exemption of the import of goods from taxes, fees or other receivables (payments, taxation) with an effect equivalent to indirect tax;4. grants for humanitarian purposes are imported and placed at the disposal of the State or the municipalities by foreign countries, municipalities, legal or natural persons and organizations;5. grants are imported provided to academic or medical establishments, scientific, cultural, educational and social organizations; ministries, institutions and other state authorities; the Bulgarian Red Cross, the Agency for Foreign Aid;6. information carriers are imported related to the participation of the Republic of Bulgaria in the international exchange of publications, when they are exempt from duties and charges;7. armaments, equipment and machinery are imported for the purposes of the Ministry of Defence, the Ministry of the Interior and other authorities of the national security system, the importation of which has been authorised under the established procedures;8. no duties and charges shall be levied on goods imported by travellers within the allowed duty free import, as well as on international parcels and other postal deliveries to natural persons, with the exception of sole traders, save for motor vehicles;9. nuclear fuel is imported;10. auxiliary technical equipment and devices for disabled persons, including spare parts for them, including cars imported by disabled persons of first category or by persons of six or more years of age and suffering from a condition or disability listed in list approved by the Minister of Health, the Minister of Labour and Social Policy and the Minister of Finance. The exemption from VAT of the import of cars shall follow the provisions of legislation in force for exemption of customs duty and amounting to the Bulgarian currency equivalent of up to USD 900 inclusive. Pursuant to this provision should a car may be imported for a period of three years when it is a second hand car and of five years when it is a new car;11. life-saving and life-supporting medicines, consumables and medical equipment are imported under centralized deliveries for the Ministry of Health or deliveries for state or municipal hospitals according to a list approved by the Minister of Health and the Minister of Finance.(2) No tax shall be collected when the goods are placed under the customs regime with suspensive arrangements, including temporary importation and re-exportation. The tax assessed in these cases shall be secured for payment of customs duties pursuant to the amount and under procedures specified in the Customs Act and the Regulations for its application."2. The following amendments and supplements shall be made to the Supplementary Provisions:a) Paragraph 5c shall be amended as follows: 5c. "Duty-free zones" shall be the free zones and the free warehouses opened and managed under the provisions of Articles 166 to 179 of the Customs Act. "b) Paragraph 5d shall be created: 5d. "Enterposed warehouse" shall be a customs warehouse opened and managed under the provisions of Articles 104 to 117 of the Customs Act. 4. Item 4 shall be added to Article 52 Paragraph 5 of the Banking Act (State Gazette No. 52/1997), the following new):"4. the heads in the Customs Agency and in the Regional Customs Directorates, when:(a) an act by the customs authorities establishes that the person inspected has thwarted the performance of an inspection by the customs authorities or does not keep the required accounting record or they are incomplete of unreliable;(b) an act by the customs authorities establishes customs violations;(c) the imposition of distraints on bank accounts is required in order to secure receivables established and collectable by the customs authorities, as well as to secure fines, legal interest due or other similar receivables;(d) an act by a state authority has established the occurrence of an accidental event, which has brought about the destruction of the accounting documentation of the subject inspected by the customs authorities. " 5. Article 17 of the State Savings Bank Act (promulgated in the State Gazette No. 95/1967; amended in Nos. 21/1975, No. 83/1978, No. 41/1985 and No. 59/1996), shall be amended as follows:1. A new Paragraph 3 shall be inserted:"(3) By request of the heads of the Customs Agency and in the regional customs directorates, the court may rule disclosure of the information referred to in Paragraph 2, when:(a) an act by the customs authorities establishes that the person inspected has thwarted the performance of an inspection by the customs authorities or does not keep the required accounting record or they are incomplete of unreliable;(b) an act by the customs authorities establishes customs violation;(c) the imposition of distraints on bank accounts is required in order to secure receivables established and collectable by the customs authorities, as well as to secure fines, legal interest due or other similar receivables;(d) an act by a state authority has established the occurrence of an accidental event, which has brought about the destruction of the accounting documentation of the subject inspected by the customs authorities. "2. Paragraph 3 shall be renumbered to become Paragraph 4. 6. In Article 83, Paragraph 1 of the Administrative Violations and Sanctions Act (promulgated in the State Gazette No. 92/1969; amended and supplemented in No. 54/1978, Nos. 28 and 101 of 1983, No. 89/1986, No. 24/1987, No. 94/1990, No. 105/1991, No. 59/1992, No. 102/1995, and Nos. 12 and 110/1996), after the words "legal persons" the words "and sole traders" shall be inserted. 7. Item 3 of Article 34 of the Administrative Procedure Act (promulgated in the State Gazette No. 90/1979; amended and supplemented in No. 9/1983, No. 26/1988, No. 94/1990, Nos. 25 and 61/1991, No. 19/1992, Nos. 65 and 70/1995, No. 122/1997), shall be repealed. 8. In Decree No. 2242 on Free Zones (promulgated in the State Gazette No. 55/1987; amended and supplemented in No. 4/1989, No. 84/1993 and No. 26/1996), everywhere the words "free duty-free zones" shall be replaced passim by "free zones." 9. (1) As of 1 January 1998 and until the entry into force of this Act, the Customs General Directorate shall create an off budget account "Financial provision for the combat against fraud and drug-trafficking, training of and incentives to customs officers and development of the border checkpoints infrastructure."(2) The revenues to the off-budget account shall be collected from:1. fees for additional services collectable by the customs authorities within amounts specified by the Council of Ministers. Such fees shall not be considered customs duties;2. proceeds under contracts concluded with legal and natural persons for activities approved by the Minister of Finance within the territory of the border checkpoints and other similar places where additional customs control is required;3. proceeds intended for the Customs Agency from fines and goods seized in favour of the state after deduction of expenses made, as well as sums being the equivalent value of goods seized in favour of the state when they are missing or have been alienated;4. twenty per cent of the fines collected for foreign exchange violations;5. proceeds received from utilization of buildings and equipment, and from provision of information;6. interests.(3) The funds in the off-budget account shall be spent for:1. financial provision for the combat against customs contraband and drugs trafficking;2. coverage of expenses related to the provision of additional services and the facilities;3. development and maintenance of the infrastructure of the Customs Agency on the territory of the border checkpoints and for other needs as defined by the Minister of Finance;4. training and qualification of customs officers;5. incentives to customs officers and encouragement for the detection of customs and foreign exchange violations;(4) The excess balance of income over expenditures at the date of entry into force of this Act shall be a transiting balance and shall come into use for the account under Article 14.(5) The off-budget account shall be approved by the Minister of Finance upon a proposal by the Director of the Customs Agency. An ordinance of the Minister of Finance shall establish the procedure for collecting and spending of the funds. 10. The balances at 31 December 1997 on the Income-Expense Account covering the Activity of Customs General Directorate, established by Council of Ministers Decree No. 44/1991 on Reduction of Budget Expenditures (promulgated in the State Gazette No. 23/1991; corrected in No. 26/1991; amended and supplemented in Nos. 45 and 70/1991, Nos. 40, 43, 47 and 51/1992, Nos. 5, 96 and 104/1993, Nos. 2, 6, 24 and 33/1995, No. 108/1996 and No. 61/1997), following the implementation of the provisions under 13 of the Transitional and Final Provisions of the 1997 Republic of Bulgaria State Budget of the Act, shall be debited to the budget of the Customs General Directorate. 11. The balances at 31 December 1997 on the Income-Expense Account pursuant to Articles 102 and 103 by the Regulations for Application of the Customs Act, approved by Council of Ministers Decree No. 5/1975 (promulgated in the State Gazette No. 12/1975; amended and supplemented in No. 49/1978, No. 81/1988, No. 34/1990, Nos. 26 and 30/1991, Nos. 15, 20, 81 and 104/1992, Nos. 37, 68 and 70/1993, Nos. 6, 9, 16, 30 and 62/1997), shall be debited to the off-budget account under 9. 12. The Customs Act (promulgated in Transactions of the Presidium of the National Assembly No. 21/1960; amended and supplemented in the State Gazette No. 66/1966, No. 26/1969, No. 85/1972, No. 84/1988, No. 30/1990) shall be amended as follows:1. In Article 17, Paragraph 2, the number "2" shall be replaced by "5,000".2. In Article 56, Paragraph 1 the words "from five to fifty" and in Paragraph 2, the words "up to BGN 100" shall be replaced by "up to BGN 1 000 000".3. In Article 58, Paragraph 3, the number "5" shall be replaced by "1000".4. In Article 66, Paragraph 2, the number "30" shall be replaced by "2000". 13. of 3, Item 1 and 9, 10, 11 of the Transitional and Final Provisions of this Act shall enter into force on 1 January 1998, while 12 shall enter into force three days after promulgation of the Act in the State Gazette. 14. (Amended, SG No. 89/1998) This Act shall enter into force on 1 January 1999 and shall repeal:1. The Customs Act (promulgated in Transactions of the Presidium of the National Assembly No. 21/1960; amended and supplemented in the State Gazette No. 66/1966, No. 26/1969, No. 85/1972, No. 84/1988 and No. 30/1990);2. Decree No. 692/1951 on determining and paying rewards to discoverers of customs contraband (promulgated in Transactions of the Presidium of the National Assembly No. 2/1951). 15. (1) (SG No. 89/1998) Within ten months after promulgation of this Act the Council of Ministers shall adopt Regulations for Application of this Act.(2) (Supplemented, SG No. 105/2006) The Minister of Finance shall issue ordinances and instructions concerning the implementation of this Act and the Regulations for Application thereof, as well as the customs legislation of the European Union. 16. The implementation of this Act shall be assigned to the Minister of Finance and the Director of the Customs Agency. 17 (New, SG No. 105/2006) This Act shall be implemented as long as it does not contradict the customs legislation of the European Union.TRANSITIONAL AND FINAL PROVISIONSto the Lev Re-Denomination Act(SG, No. 20/1999, supplemented SG No. 65/1999,effective since 5.07.1999) 4. (1) (Supplemented, SG No. 65/1999) With the entry into force of this act all numbers in old levs specified in laws that have become effective before 5 July 1999 shall be replaced by numbers reduced 1000 fold in new levs. The replacement of all numbers by numbers reduced 1000 fold in new levs shall apply also to all acts adopted before 5 July 1999 that have become or shall become effective after 5 July 1999.(2) The authorities that have adopted or issued secondary statutory acts which have become effective before 5 July 1999 and which contain figures in levs shall make amendments therein ensuing from this act in such a manner as to apply as of the date this act becomes effective.TRANSITIONAL AND FINAL PROVISIONSto the Act Amending and Supplementing the Customs ActSG No. 63/2000, amended SG No. 110/2001; effective 1.01.2002 54. In Article 13, 14, Article 183, Paragraph 2, Article 186, Paragraph 4, Article 231 and 16 of the Transitional and Final Provisions of the Act the words "the General Customs Directorate" shall be substituted by "Customs Agency" and in Article 21, Paragraph 4 the words ""the General Customs Directorate" shall be substituted by "Central Customs Administration". Everywhere in the Act the words "the head of the General Customs Directorate" shall be substituted by "the Director of the Customs Agency" and the words "the heads of the regional customs directorates" shall be substituted by "the directors of the regional customs directorates". 55. The Customs Agency shall be the legal successor of the National Customs Agency, of the regional customs directorates, customs, customs offices and customs posts. 56. (Effective 1.01.2000, repealed SG No. 110/2001).TRANSITIONAL AND FINAL PROVISIONSto the Act Amending and Supplementing the Customs Act(SG No. 37/2003) 73. On the occurrence of a customs debt for goods placed under the temporary importation regime under the terms of the repealed Article 17 of the Investment Promotion Act the amount of the debt shall be determined on the basis of the levying elements compatible with these goods at the time of the occurrence of the customs debt. In these cases the provision of Article 203, Paragraph 3 of the Customs Act shall not apply. 74. Within one month after the promulgation of this Act the customs officers shall submit the sworn statement under Article 10, Paragraph 4. 75. The provisions of 30 - 51 shall enter into force on 1 November 2003, and the provision of 67 shall enter into force on 1 June 2003. 76. Within one month after the promulgation of this Act the Council of Minister shall adopt amendments to the Regulation on applying this Act.Lev Re-denomination Act Promulgated, State Gazette No. 20/5.03.1999,amended, SG No. 65/20.07.1999 (effective 5.07.1999).TRANSITIONAL AND FINAL PROVISIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. (1) (Amended, SG No. 65/1999) Upon the entry of this Act into force, all figures expressed in old lev terms as indicated in the laws which will have entered into force prior to the 5th day of July 1999 shall be replaced by figures expressed in new lev terms, reduced by a factor of 1,000. The replacement of all figures expressed in old lev terms, reduced by a factor of 1,000, shall furthermore apply to all laws passed prior to the 5th day of July 1999 which have entered or will enter into force after the 5th day of July 1999.(2) The authorities, which have adopted or issued any acts of subordinate legislation which will have entered into force prior to the 5th day of July 1999 and which contain figures expressed in lev terms, shall amend the said acts to bring them in conformity with this Act so that the amendments apply as from the date of entry of this Act into force.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .TRANSITIONAL AND FINAL PROVISIONSto the Excise Duties and Tax Warehouses ACT(SG No. 91/2005, effective 1.01.2005) 9. Until entry into force of the statement of issuance of a license for management of a tax warehouse or refusal for its issuance existing producers of excisable goods at 1 January 2006 who file an application for license by 1 March 2006 shall continue their activity as licensed warehouse keepers under the procedure of this Act.TRANSITIONAL AND FINAL PROVISIONSof the Administrative Procedure Code(SG, No. 30/2006, effective 12.07.2006). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84. The Customs Act, (Promulgated SG No. 15/1998, amended, SG No. 89/1998, amended and supplemented, SG No. 153/1998, SG No. 30/1999, amended, SG No. 83/1999, amended and supplemented, SG No. 63/2000, 110/2001, supplemented, SG No. 76/2002, amended and supplemented, SG No. 37/2003, amended, SG No. 95/2003, supplemented, SG No. 38/2004, amended and supplemented SG No. 45/2005, amended SG 86/2005, supplemented, SG No. 91/2005, amended and supplemented, SG No. 105/2005) shall be amended as follows:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3. Everywhere in the act the words "the Administrative Procedure Act" shall be replaced by "the Administrative Procedure Code". For more information visit www.solicitorbulgaria.com id: 335 Mon, 04 Aug 2008 06:38:36 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-customs-act-part-2 http://web.solicitorbulgaria.com/index.php/bulgarian-customs-act-part-2 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/CUSTOMS_ACT.jpg EUR http://web.solicitorbulgaria.com/index.php/bulgarian-customs-act-part-2 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) PART ONEGENERAL DISPOSITIONSChapter OneGENERAL PROVISIONSScope of TaxationArticle 1. This Act regulates taxation of:1. the profit accruing to resident legal persons;2. the profit accruing to resident legal persons which are not merchants, including the organizations of the religious denominations, from any transactions covered under Article 1 of the Commerce Act , as well as from letting movable and immovable property;3. the profit accruing to non-resident legal persons from a permanent establishment in the Republic of Bulgaria;4. the income, as specified in this Act, accruing to resident and non-resident legal persons from a source inside the Republic of Bulgaria;5. the expenses as specified in Part Four herein;6. the activities of organizers of games of chance;7. the income accruing to public-financed enterprises from any transactions covered under Article 1 of the Commerce Act, as well as from letting movable and immovable property;8. the vessels operation activity of persons which… For more information visit http://www.solicitorbulgaria.com id: 334 PART ONEGENERAL DISPOSITIONSChapter OneGENERAL PROVISIONSScope of TaxationArticle 1. This Act regulates taxation of:1. the profit accruing to resident legal persons;2. the profit accruing to resident legal persons which are not merchants, including the organizations of the religious denominations, from any transactions covered under Article 1 of the Commerce Act , as well as from letting movable and immovable property;3. the profit accruing to non-resident legal persons from a permanent establishment in the Republic of Bulgaria;4. the income, as specified in this Act, accruing to resident and non-resident legal persons from a source inside the Republic of Bulgaria;5. the expenses as specified in Part Four herein;6. the activities of organizers of games of chance;7. the income accruing to public-financed enterprises from any transactions covered under Article 1 of the Commerce Act, as well as from letting movable and immovable property;8. the vessels operation activity of persons which carry out maritime merchant shipping.Taxable PersonsArticle 2. (1) Taxable persons shall be:1. the resident legal persons;2. the non-resident legal persons which carry out economic activity in the Republic of Bulgaria through a permanent establishment or which receive income from a source inside the Republic of Bulgaria;3. the sole traders: in respect of the taxes withheld at source and in the cases specified in the Income Taxes on Natural Persons Act;4. the natural persons who are merchants within the meaning given by Article 1 (3) of the Commerce Act: in the cases specified in the Income Taxes on Natural Persons Act;5. the employers and the commissioning entities under contracts for management and control: in respect of the tax on the expenses on fringe benefits, provided for in Part Four herein.(2) For the purposes of this Act, the unincorporated associations and the contribution payment centres established in pursuance of Article 8 of the Social Insurance Code shall be treated as equivalent to legal persons.(3) For the purposes of taxation of income from a source inside the Republic of Bulgaria, any non-resident organizationally and economically distinct formation (trust, fund and other such), which independently carries out economic activity or performs and manages investments, shall likewise be a taxable person where the owner of the income cannot be identified.Resident Legal PersonsArticle 3. (1) "Resident legal persons" shall be:1. any legal persons incorporated under Bulgarian law;2. any companies incorporated under Council Regulation (EC) No 2157/2001, and any cooperative society incorporated under Council Regulation No 1435/2003, where the registered office thereof is situated in the country and they are entered into a Bulgarian register.(2) Any resident legal persons shall be liable to taxes under this Act in respect of the profits and income accruing thereto from all sources inside and outside the Republic of Bulgaria.Non-resident Legal Persons"Article 4. (1) "Non-resident legal persons" shall be any persons which are not resident persons.(2) Any non-resident legal persons shall be liable to taxes under this Act in respect of the profits realized through a permanent establishment in the Republic of Bulgaria and of the income as specified in this Act accruing from a source inside the Republic of BulgariaTypes of TaxesArticle 5. (1) Profits shall attract a corporation tax.(2) The income accruing to any resident and non-resident legal persons, as specified in this Act, shall attract a tax withheld at source.(3) The expenses, as specified in this Act, shall attract a tax on expenses.(4) A tax alternative to corporation tax shall be levied on:1. the activity of organizing games of chance;2. the income accruing to public-financed enterprises from any transactions covered under Article 1 of the Commerce Act, as well as from letting movable and immovable property;3. the vessels operation activity.Determination of Amount of TaxArticle 6. The amount of tax shall be determined by multiplying the taxable amount by the rate of tax.Tax ReturnsArticle 7. The standard forms of returns and of other documents under this Act shall be endorsed by an order of the Minister of Finance and shall be promulgated in the State Gazette.Remittance of TaxesArticle 8. (1) The taxes due under this Act shall be remitted by the taxable persons in revenue to the executive budget.(2) The taxes due shall be credited to an account of the National Revenue Agency territorial directorate exercising competence over the place of registration of the taxable persons or over the place where the taxable persons are registrable.(3) The taxes due shall be deemed to be remitted on the date on which the amounts are received in the executive budget on the account of the competent National Revenue Agency territorial directorate.Default InterestArticle 9. Interest according to the Interest on Taxes, Fees and Other State Receivables Act shall be due on any taxes which are not remitted when due, including any tax prepayments.Documentary SupportArticle 10. (1) An accounting expense shall be recognized for tax purposes where it is supported by an accounting source document within the meaning given by the Accountancy Act.(2) An accounting expense shall be recognized for tax purposes even where part of the information required under the Accountancy Act is missing in the accounting source document, provided that documents certifying any such missing information are available.(3) Outside the cases referred to in Paragraph (2), an accounting expense shall be recognized even where the accounting source document has been issued by a person which is not an enterprise within the meaning given by Article 1 (2) of the Accountancy Act and part of the information required under the Accountancy Act is missing in the document, provided that the said document gives a true view of the business transaction documented.(4) The taxable persons shall be obligated to register and account for any sale of goods and services as effected by means of issuing a fiscal cash receipt printed by a fiscal device according to a procedure established by an ordinance of the Minister of Finance, except where payment is effected by bank transfer or through an offset. The lack of a fiscal cash receipt printed by a fiscal device, where the issuance of such a receipt is obligatory, shall be grounds to deny recognition of an accounting expense for tax purposes.(5) In respect of international air transport, an accounting expense shall be supported by documents where documented by means of an accounting source document and the boarding pass for the flight executed. Where the accounting source document (protocol) is issued by the person who effects the sale on behalf and for the account of the carrier, the said person shall be deemed to be an issuer of the said document.(6) (New, SG No. 110/2007) Documentary support of the expenses referred to in Items 1 and 3 of Article 204 herein, which attract a tax on expenses, shall be available even when the said expenses are documented only by a fiscal cash receipt printed by a fiscal device. The expenses referred to in Item 3 of Article 204 herein, which attract a tax on expenses, shall be recognized for tax purposes even where a transportation control and movement document has not been issued.Expenses Defined as Compulsory by Statutory InstrumentArticle 11. Any expenses defined as compulsory by a statutory instrument shall be recognized for tax purposes and shall not attract a tax on expenses, unless otherwise provided for in this Act.Chapter TwoSOURCES OF PROFIT AND INCOMEProfit and Income from Sources Inside Republic of BulgariaArticle 12. (1) Any profit and income accruing to non-resident legal persons, derived from economic activity carried out through a permanent establishment in the country or from disposition of property of any such permanent establishment, shall have their source inside the country.(2) Any income from financial assets issued by resident legal persons, the Bulgarian State and the municipalities, shall have its source inside the country.(3) Any income from transactions in financial assets referred to in Paragraph (2) shall have its source inside the country.(4) Any income from dividends and shares in a liquidation surplus, accruing from participating interests in resident legal persons, shall have its source inside the country.(5) The following income, charged by resident legal persons, resident sole traders or non-resident legal persons and sole traders through a permanent established or a fixed base in the country or paid by resident natural persons or by non-resident natural persons who have a fixed base in the country in favour of non-resident legal persons, shall have its source inside the country:1. any interest payments, including interest within payments under a financial lease contract;2. any income from rent or other provision for use of movable or immovable property;3. any copyright and licence royalties;4. any technical assistance fees;5. any payments received under franchising agreements and factoring contracts;6. any compensations for management or control of a Bulgarian legal person.(6) (Amended, SG No. 110/2007) Any income covered under Paragraph (5), which is charged in favour of non-resident legal persons from a permanent establishment of a resident person or from a fixed base of resident natural persons situated outside the territory of the country, shall not have its source inside the country.(7) Any income from agriculture, forestry, hunting ground management and fisheries within the territory of the country shall have its source inside the country.(8) Any income from immovable property or from transactions in immovable property, including an undivided interest or a limited right in rem to any immovable property situated in the country, shall have its source inside the country.(9) Upon determination of the source of income under this Article, the place of payment of the income shall be ignored.Chapter ThreeINTERNATIONAL TAXATIONInternational TreatiesArticle 13. Where an international treaty, which has been ratified by the Republic of Bulgaria, has been promulgated and has entered into force, contains any provisions different from the provisions of this Act, the provisions of the relevant international credit shall prevail.Foreign Tax CreditArticle 14. (1) Where the provisions of an international treaty referred to in Article 13 herein are not applied, the taxable persons shall be allowed foreign tax credit under the terms and according to the procedure established by this Act.(2) Upon assessment of the corporation tax or of the alternative taxes under this Act, the taxable persons shall be allowed foreign tax credit in respect of each tax similar to corporation tax or imposed in lieu of such tax and paid abroad.(3) The taxable persons shall be allowed foreign tax credit in respect of the tax imposed abroad on the gross amount of the income from dividends, interest payments, copyright and licence royalties, technical assistance fees and rents.(4) The tax credit referred to in Paragraphs (2) and (3) shall be determined for each State and for each type of income separately and shall be limited to the amount of the Bulgarian tax on the said profits or income.Chapter FourPREVENTION OF TAX EVASIONTransactions between Related PartiesArticle 15. Where related parties enter into commercial and financial relationships under terms which affect the amount of the tax financial result and which differ from the terms between unrelated parties, the tax financial result shall be determined and taxed under the terms which would have arisen in respect of unrelated parties.Tax EvasionArticle 16. (1) Where one or more transactions, inter alia between unrelated parties, has been concluded under terms whereof the fulfilment leads to tax evasion, the tax financial result shall be determined ignoring the said transactions, certain terms thereof or the legal form thereof and taking into consideration the tax financial result that would be obtained upon the effecting of a customary transaction of the relevant type at market prices and intended to achieve the same economic result but which does not lead to tax evasion.(2) The following shall furthermore be treated as tax evasion:1. any substantial excess of the quantities of raw and prime materials used as production inputs and other production costs over the customary quantities and costs for the activity carried out by the person, where any such excess is not due to reasons beyond the control of the person;2. any contracts of loan for use or other gratuitous provision for use of tangible and intangible benefits;3. any borrowing or lending at interest diverging from the market rate of interest as applicable at the time of conclusion of the transaction, including in the cases of interest-free loans or other temporary gratuitous financial assistance, as well as the write-off of debts or repayment of non-business debts for own account;4. payment of any remunerations or compensations for any services which have not been actually performed.(3) Where a transaction is concealed by another, colourable transaction, the tax liability shall be assessed under the terms of the concealed transaction.Transfers Related to Permanent EstablishmentArticle 17. This Chapter shall furthermore apply, mutatis mutandis, to any transfers between a permanent establishment and other divisions of the enterprise of a non-resident person situated outside the country, conforming to the specifics of the permanent establishment.PART TWOCORPORATION TAXChapter FiveGENERAL DISPOSITIONSTax Financial ResultArticle 18. (1) (Amended, SG No. 110/2007) "Tax financial result" shall be the accounting financial result adjusted according to the procedure established by this Act.(2) The positive tax financial result shall be a tax profit.(3) The negative tax financial result shall be a tax loss.Taxable AmountArticle 19. The taxable amount for assessment of the corporation tax shall be the tax profit.Rate of TaxArticle 20. The rate of corporation tax shall be 10 per cent.Tax PeriodArticle 21. (1) The tax period for assessment of the corporation tax shall be the calendar year, save as otherwise provided for in this Act.(2) In respect of any newly incorporated taxable persons, the tax period shall cover the period from the date of incorporation thereof until the end of the year, save as otherwise provided for in this Act.Chapter SixGENERAL DISPOSITIONS REGARDING DETERMINATION OF TAX FINANCIAL RESULTDetermination of Tax Financial ResultArticle 22. (Amended, SG No. 110/2007) The tax financial result shall be determined by means of adjusting the accounting financial result, according to a procedure and in a manner specified in this Act, for:1. the permanent tax differences;2. the temporary tax differences;3. the amounts provided for in this Part.Permanent Tax Differences and Adjustment of AccountingFinancial Result for Such DifferencesArticle 23. (1) "Permanent tax differences" shall be accounting income or expenses which are not recognized for tax purposes.(2) For the purposes of determination of the tax financial result, where this Act indicates that:1. a cost (loss) is not recognized for tax purposes, the accounting financial result shall be credited with any such cost (loss) in the year of accounting for the said cost (loss), and the accounting financial results shall not be adjusted during the succeeding years;2. an income (profit) is not recognized for tax purposes, the accounting financial result shall be debited with any such income (profit) in the year of accounting for the said income (profit), and the accounting financial results shall not be adjusted during the succeeding years.Temporary Tax Differences and Adjustment of AccountingFinancial Result for Such DifferencesArticle 24. (1) Temporary tax differences shall arise where any income or expenses are recognized for tax purposes in a year other than the year of accounting for the said income or expense.(2) A "temporary tax difference" shall be:1. any expense unrecognized for tax purposes in the year of accounting for any such expense, which will be recognized during succeeding years, when the conditions for recognition according to this Part occur;2. any income unrecognized for tax purposes in the year of accounting for any such income, which will be recognized during succeeding years, when the conditions for recognition according to this Part occur.(3) Temporary tax differences shall furthermore originate in the cases of transformation of corporations and cooperatives according to the procedure established by Chapter Nineteen herein.(4) For the purposes of determination of the tax financial result, where this Act indicates that:1. any cost (loss), which is not recognized for tax purposes in the year of accounting and will be recognized during succeeding years when the condition for recognition according to this Part occurs:(a) the accounting financial result in the year of accounting for the cost (loss) shall be credited with any such cost (loss): origination of a temporary tax difference;(b) the accounting financial result in the year when the condition for recognition according to this Part occurs shall be debited with any such cost (loss): reversal of a temporary tax difference;2. any income (profit), which is not recognized for tax purposes in the year of accounting and will be recognized during succeeding years when the condition for recognition according to this Part occurs:(a) the accounting financial result in the year of accounting for the income (profit) shall be debited with any such income (profit): origination of a temporary tax difference;(b) the accounting financial result in the year of when the condition for recognition according to this Part arises shall be credited with any such income (profit): reversal of a temporary tax difference.Tax-Recognized Income and CostArticle 25. For the purposes of determination of the tax financial result, where this Act indicates that any income (cost) or profit (loss) is recognized for tax purposes in the year of accounting for such income, the accounting financial result for the current year or any succeeding years shall not be adjusted for the said income (cost) or profit (loss).Chapter SevenPERMANENT TAX DIFFERENCESExpenses Unrecognized for Tax PurposesArticle 26. The following accounting expenses shall not be recognized for tax purposes:1. any non-business expenses;2. any expenses which are not supported by documents within the meaning given by this Act;3. any expenses on tax charged or credit for input tax used according to the Value Added Tax Act , where the expense incurred on the business transaction wherewith the value added tax is associated is not recognized for tax purposes;4. (amended, SG No. 110/2007) any expense accounted for by a supplier under the Value Added Tax Act on value added tax charged by the said supplier or by the revenue authority in connection with a supply effected, with the exception of the tax charged in connection with supplies effected free of charge and supplies in connection with deregistration under the Value Added Tax Act; this item shall not apply to expenses accounted for as a result of an adjustment in the credit for input tax under the Value Added Tax;5. (amended, SG No. 110/2007) any subsequent expenses accounted for in connection with a claim which has originated from a tax charged or credit for input tax used under Items 3, 4, 8 and 10;6. any expenses on fines charged, forfeitures and other sanctions imposed for violation of statutory instruments, any default interest charged for late payment of public state or municipal debts;7. any donation expenses other than such covered under Article 31 herein;8. any expenses on a tax which is subject to withholding at source and is for the account of the payer of the income;9. any wage expenses at commercial corporations wherein the State or a municipality holds an interest exceeding 50 per cent in excess of the resources fixed by statutory instruments.10. (new, SG No. 110/2007) any expense accounted for upon enforcement of a liability for the value added tax due and unremitted in the cases referred to in Article 177 of the Value Added Tax Act; 11. (new, SG No. 110/2007) any expenses which constitute hidden profit distribution.Income Unrecognized for Tax PurposesArticle 27. (1) The following accounting income shall not be recognized for tax purposes:1. any income resulting from distribution of dividends by resident legal persons;2. any income originating in connection with any expenses unrecognized for tax purposes, as referred to in Article 26 herein, up to the amount of the unrecognized expenses;3. any income from interest payments on unduly remitted or collected public obligations, as well as on value added tax not refunded within the statutory time limits, charged by the central-government or municipal authorities.(2) Item 1 of Paragraph (1) shall not apply:1. to any income charged as a result of distribution of dividends by licensed special purpose investment companies under the Special Purpose Investment Companies Act ;2. upon hidden profit distribution.Unrecognized Expenses on Shrinkage and WastageArticle 28. (1) Any accounting expenses on shrinkage of fixed and current assets shall not be recognized for tax purposes, with the exception of such due to a force majeure.(2) Any accounting expenses on shrinkage and waste of stocks of materials shall not be recognized for tax purposes.(3) Paragraph (2) shall not apply where the expenses are due to:1. a force majeure;2. spoilage or alteration of physical and chemical properties, as established by a statutory instrument or by company standards, where a statutory instrument does not exist, and in the customary amounts for the relevant activity;3. expiry of the service life according to a statutory instrument or company standards, where a statutory instrument does not exist, and in the customary amounts for the relevant activity.4. (new, SG No. 110/2007) shrinkage of merchandise arising from business operation at establishments where customers have direct physical access to the merchandise on offer, to an amount of up to 0.25 per cent of the amount of the net turnover of the distributive trade establishment concerned.(4) Any tax expense referred to in Article 79 (3) of the Value Added Tax Act on any assets, which is not recognized according to the procedure established by Paragraphs (1) to (3), shall not be recognized for tax purposes.(5) Any subsequent accounting expenses, which have been accounted for in connection with a claim originating from shrinkage and wastage of any assets unrecognized according to the procedure established by Paragraphs (1) to (4), shall not be recognized for tax purposes.Unrecognized Expenses Originating in Connectionwith Shrinkage and WastageArticle 29. Any accounting expenses which have originated in connection with any shrinkage and wastage of assets or any claim related therewith shall not be recognized for tax purposes up to the amount of the unrecognized expenses referred to in Article 28 herein.Recognition of Part of Undistributable Expenses ofNot-for-Profit Legal EntitiesArticle 30. (1) Any accounted for undistributable expenses, corresponding to the activity subject to levy of corporation tax, incurred by any not-for-profit legal entities, shall not be recognized for tax purposes.(2) The part of the undistributable expenses, determined by multiplying the total amount of undistributable expenses by the ratio between the income from the activity subject to levy of corporation tax and all income accruing to the not-for-profit legal entity, shall be recognized for tax purposes.Donation ExpensesArticle 31. (1) The accounting expenses on donations to a total amount of up to 10 per cent of the positive accounting financial result (accounting profit) shall be recognized for tax purposes where the expenses on donations are incurred in favour of:1. any health-care and medical-treatment facilities;2. any specialized institutions for provision of social services according to the Social Assistance Act , as well as of the Social Assistance Agency and of the Social Assistance Fund under the Minister of Labour and Social Policy;3. any specialized child institutions according to the Child Protection Act, as well as of any care homes for children deprived of parental care according to the Public Education Act;4. any creches, kindergartens, schools, higher schools or academies;5. any public-financed enterprises within the meaning given by the Accountancy Act;6. any religious denominations registered in the country;7. any specialized enterprises or cooperatives of persons with disabilities, entered in the register referred to in Article 29 of the Integration of Persons with Disabilities Act, as well as in favour of the Agency for Persons with Disabilities;8. any persons with disabilities, as well as for technical aids therefore;9. any victims of crises within the meaning given by the Crisis Management Act, or of the families thereof;10. the Bulgarian Red Cross;11. any socially disadvantaged persons;12. any children with disabilities or parentless children;13. any cultural institutes, or for the purposes of cultural, educational or research exchange under an international treaty whereto the Republic of Bulgaria is a party;14. any not-for-profit legal entities, registered in the Central Register of Not-for-Profit Legal Entities for pursuit of public benefit activities, with the exception of organizations supporting culture within the meaning given by the Financial Support for Culture Act ;15. any schoolchildren and students at Bulgarian schools in respect of the scholarships instituted and provided thereto for instruction;16. the Bulgaria Energy Efficiency Fund;17. any therapeutic communities for narcotics-dependent persons, as well as of narcotics-dependent persons for the therapy thereof.(2) Accounting expenses on donations shall be recognized for tax purposes to an amount of up to 50 per cent of the accounting profit where the expenses on donations are incurred in favour of the Fund for Medical Treatment of Children Centre.(3) The assistance provided gratuitously under the terms and according to the procedure established by the Financial Support for Culture Act shall be recognized for tax purposes to an amount of up to 15 per cent of the accounting profit.(4) Any expenses on donations of computers and computer peripheral equipment, which are manufactured within one year prior to the date of the donation, and made in favour of Bulgarian schools, including higher schools, shall be recognized for tax purposes.(5) The aggregate amount of the expenses on donations recognized for tax purposes under Paragraphs (1) to (4) may not exceed 65 per cent of the accounting profit.(6) The entire expense on a donation shall not be recognized for tax purposes where the donation benefits, whether directly or indirectly, the managers who make it or those who dispose of the said donation, or where there is evidence that the gift has not been received.Taxable Person's Formation ExpensesArticle 32. (1) The accounting expenses on the incorporation of a legal person shall be recognized for tax purposes at the taxable persons which are incorporators. The unrecognized expenses shall be recognized for tax purposes upon determination of the tax financial result of the newly formed legal person in the year of commencement of the legal existence thereof.(2) The expenses referred to in Paragraph (1) shall be recognized for tax purposes in respect of the incorporators upon occurrence of circumstances determining that the legal existence of a new legal person will not commence. The said expenses shall be recognized in the year of occurrence of the said circumstances, if the requirements of this Act are complied with.Natural Persons' Travel and Per Diem ExpensesArticle 33. (Amended, SG No. 110/2007, effective 1.01.2007) (1) The following accounting travel and per diem expenses of natural persons shall be recognized for tax purposes, where the travel and stay were performed in connection with the activity of the taxable person:1. the travel and per diem expenses of any natural persons who are in employment relationships with the taxable person or are hired thereby under non-employment relationships, including such expenses of managing directors, members of management or supervisory bodies or the taxable person;2. the travel and per diem expenses incurred by a sole trader of:(a) the natural person who owns the enterprise of the natural person, and(b) the persons who are in employment relationships with the sole trader or are hired thereby under non-employment relationships.(2) The accounting travel and per diem expenses of any shareholders or partners shall not be recognized for tax purposes where the said shareholders or partners perform the travel and stay in their capacity of shareholders or partners.Chapter EightTEMPORARY TAX DIFFERENCESNon-recognition of Income and Expenses from Subsequent Valuations(Revaluations and Impairments)Article 34. (1) Any income and expenses from subsequent valuations of assets and liabilities shall not be recognized for tax purposes in the year of accounting for the said income and expenses.(2) Paragraph (1) shall not apply in respect of any accounting income and expenses from subsequent valuations of monetary positions in foreign currency at the central exchange rate of the Bulgarian National Bank.Recognition of Expenses and Income from Subsequent Valuations(Revaluations and Impairments)Article 35. (1) Any income and expenses from subsequent valuations unrecognized for tax purposes according to the procedure established by Article 34 herein shall be recognized for tax purposes in the year of write-off of the relevant asset or liability.(2) Where the value of the stocks of materials of a specific type, written off during the current year, exceeds the value of the stocks of materials of the said type as at the 31st day of December of the preceding year, the unrecognized income referred to in Article 34 herein in respect of the said type of stocks of materials during preceding years shall be recognized for tax purposes during the current year.(3) Paragraphs (1) and (2) shall not apply in the cases of shrinkage and wastage of assets, which are not recognized for tax purposes according to the procedure established by Article 28 herein.Income and Expenses from Initial Recognition and SubsequentValuation of Biological Assets and Agricultural (Farming) ProduceArticle 36. (1) Any excess of the income (profits) from an initial recognition and subsequent valuation of biological assets and agricultural (farming) process over the expenses accounted for in connection with the said assets shall not be recognized for tax purposes in the year of accounting for the said income and expenses. Any excess of the income referred to in sentence one shall be recognized for tax purposes in the year of write-off of the relevant asset.(2) Any excess of the expenses reported in connection with biological assets and agricultural (farming) process, over the incomes (profits) from an initial recognition and subsequent valuation of said assets shall not be recognized for tax purposes in the year of accounting for the said income and expenses. Any excess of the expenses referred to in sentence one shall be recognized for tax purposes in the year of write-off of the relevant asset.(3) The provisions of Articles 34 and 35 herein shall not apply to any biological assets and agricultural produce.Recognition of Income and Expenses from SubsequentValuations of ClaimsArticle 37. Any income and expenses from subsequent valuations of claims unrecognized according to the procedure established by Article 34 herein shall be recognized for tax purposes in the year in which one of the following circumstances occurs:1. lapse of the prescription of the claim, but not more than five years after the time the said claim became exigible;2. onerous transfer of the claim;3. the bankruptcy proceedings against the debtor have been closed by a confirmed plan for rehabilitation which provides for incomplete satisfaction of the taxable person; the unrecognized income and expenses shall be recognized for tax purposes solely in respect of the diminution in the claim;4. an effective judgment of court has decreed that the claim or a part thereof is undue; the unrecognized income and expenses shall be recognized for tax purposes solely in respect of the undue part of the claim;5. prior to the lapse of the prescription, the claims have been extinguished by virtue of a law;6. upon expungement of the debtor, where the claim or part thereof has been left unsatisfied: recognition shall be limited to the unsatisfied part.Provisions for DebtsArticle 38. (1) Any expenses on provisions for debts shall be recognized for tax purposes in the year of accounting for any such expenses.(2) Any expenses on provisions unrecognized under Paragraph (1) shall be recognized for tax purposes in the year of repayment of the debt for which the provision has been recognized up to the amount of the debt repaid.(3) (Amended, SG No. 110/2007) Upon determination of the tax financial result, the accounting financial result shall be debited with the accounting incomes or, respectively, with the amount wherewith the accounting expenses have been debited, accounted for in connection with a recognized provision.Provisions Not Included in Tax Depreciable Valueof Tax Depreciable AssetArticle 39. (1) Upon determination of the tax financial result, the accounting financial result shall be debited with the repaid debts related to any provisions which are not included in the tax depreciable value of a tax depreciable asset according to Article 53 (1) herein. The debiting referred to in sentence one shall be performed in the year of repayment of the debt.(2) (Amended, SG No. 110/2007) Upon determination of the tax financial result, the accounting financial result shall be debited with the accounting income or, respectively, with the amount wherewith the accounting expenses have been debited, accounted for in connection with a recognized provision.Specific Procedure for Recognition of Expenses on Provisionsfor Debts upon Cessation of ActivityArticle 40. (1) Any taxable person, which has applied Article 38 (1) or Article 53 (1) herein and has entirely ceased the core activity thereof in the year of repayment of the debts in respect of which a provision unrecognized for tax purposes has been charged, shall not apply the provisions of Article 38 (2) or Article 39 (1) herein and shall be entitled to an offset or refund of the over remitted corporation tax as arrived at according to the procedure established by Paragraph (2).(2) The over remitted corporation tax shall be arrived at as a product of the repaid part of the debts, in respect of which a provision unrecognized for tax purposes has been charged, and the rate of corporation tax for the year of repayment of the debts. The repaid part of the debts for the purposes of sentence one may not exceed the sum total of the tax financial results for the ten years last preceding the year of cessation of activity.Unused LeavesArticle 41. (1) Any expenses on accumulating unused (compensable) leaves at the 31st day of December of the current year, as well as any expenses connected with any such leaves, for compulsory social and health insurance, shall not be recognized for tax purposes in the year of accounting for any such expenses.(2) Any unrecognized expenses on accumulating unused (compensable) leaves referred to in Paragraph (1) shall be recognized for tax purposes in the year during which compensations for the said leaves was actually paid to the staff, up to the amount of the compensations paid.(3) Any unrecognized expenses on compulsory social and health insurance referred to in Paragraph (1) shall be recognized for tax purposes in the year during which the relevant social and health insurance contributions were remitted, up to the amount of the insurance contributions remitted.(4) (Amended, SG No. 110/2007) Upon determination of the tax financial result, the accounting financial result shall be debited with the accounting income or, respectively, with the amount wherewith the accounting expenses have been debited, accounted for in connection with any debts referred to in Paragraph (1).(5) (New, SG No. 110/2007) Paragraph (1) shall not apply to any leaves and social and health insurance contributions connected therewith, the accounting for which does not lead to a diminution in the financial result for the year of accounting for the said expenses.(6) (New, SG No. 110/2007) Any expenses resulting from compensable leaves and social and health insurance contributions connected therewith, leading to a diminution in the financial result, shall not be recognized for tax purposes in a year other than the year of accounting for the said expenses, where the compensations were not paid and the contributions were not remitted at the 31st day of December of the year in which the accounting financial result was debited. In such cases, Paragraphs (2) and (3) shall apply, mutatis mutandis.(7) (New, SG No. 110/2007) Paragraphs (1) to (6) shall not apply to any compensable leaves and social and health insurance contributions connected therewith which, according to accounting legislation, are capitalized as part of the value of a tax depreciable asset.Expenses Constituting Income Accruing to Resident Natural PersonsArticle 42. (1) Any expenses incurred by taxable persons, constituting income accruing to resident natural persons under the Income Taxes of Natural Persons Act, which are not paid as at the 31st day of December of the current year, shall not be recognized for tax purposes in the year of accounting for any such expenses.(2) Paragraph (1) shall not apply to any expenses constituting:1. a basic or supplementary labour remuneration, fixed by a statutory instrument;2. income accruing to sole traders.(3) The expenses unrecognized under Paragraph (1) shall be recognized for tax purposes in the year during which the income is paid, up to the amount of the income paid.(4) (Amended, SG No. 110/2007) Upon determination of the tax financial result, the accounting financial result shall be debited with the accounting income or, respectively, with the amount wherewith the accounting expenses have been debited, accounted for in connection with the debts for any unpaid income referred to in Paragraph (1).(5) (New, SG No. 110/2007) The expenses on compulsory social and health insurance contributions connected with the unrecognized expenses referred to in Paragraph (1) shall not be recognized for tax purposes in the year of accounting for the said expenses where the compulsory social and health insurance contributions were not remitted at the 31st day of December of the current year.(6) (New, SG No. 110/2007) The unrecognized expenses referred to in Paragraph (5) shall be recognized for tax purposes in the year during which the relevant compulsory social and health insurance contributions were remitted, up to the amount of the contributions remitted. Upon determination of the tax financial result, the accounting financial result shall be debited with the accounting income or, respectively, with the amount wherewith the accounting expenses have been debited, accounted for in connection with the debts referred to in Paragraph (5).(7) (New, SG No. 110/2007) Paragraphs (1) and (5) shall not apply to any income and compulsory social and health insurance contributions connected therewith, the accounting for which does not lead to a diminution in the accounting financial result for the year of accounting for the said expenses.(8) (New, SG No. 110/2007) Any expenses resulting from income and compulsory social and health insurance contributions referred to in Paragraphs (1) and (5), leading to a diminution in the financial result, shall not be recognized for tax purposes in a year other than the year of accounting for the said expenses, where the income was not paid and the contributions were not remitted at the 31st day of December of the year in which the accounting financial result was debited. In such cases, Paragraphs (3) and (6) shall apply, mutatis mutandis.(9) (New, SG No. 110/2007) Paragraphs (1) to (8) shall not apply to any income and social and health insurance contributions connected therewith which, according to accounting legislation, are capitalized as part of the value of a tax depreciable asset.Regulation of Thin CapitalizationArticle 43. (1) Any expenses on interest payments shall not be recognized for tax purposes in the year of accounting for any such expenses to an amount arrived at for the current year according to the following formula:UEIP = EIP - IIR - 0.75 x AFRBI, where:UEIP shall be the unrecognized expenses on interest payments;EIP shall be the expenses on interest payments arrived at according to the procedure established by Paragraph (3);IIR shall be the total amount of income from interest receivable;FRBI shall be the accounting financial result before all expenses on interest payments and income from interest receivable.(2) Any expenses on interest payments, unrecognized under Paragraph (1), shall be recognized for tax purposes during the next succeeding five years until depletion of the said expenses, to an amount arrived at for the current year according to the following formula:REIP = 0.75 x FRBI + IIR - EIP, where:REIP shall be the recognized expenses on interest payments;FRBI shall be the accounting financial result before all expenses on interest payments and income from interest receivable;IIR shall be the total amount of income from interest receivable;EIP shall be the expenses on interest payments arrived at according to the procedure established by Paragraph (3) for the current year.(3) The expenses on interest payments shall include all financial (interest) income, accounted for under financing by means of debt capital. The expenses on interest payments shall not include:1. any interest payments on financial leases and bank loans, except where the parties to the transaction are related parties or the lease or the loan, as the case may be, is guaranteed or secured by or is extended on the order of a related party;2. any penalty charges for late payments and damages;3. any interest unrecognized for tax purposes on other grounds in this Act.4. (new, SG No. 110/2007) any interest and other expenses on loans which, according to accounting legislation, are capitalized as part of the value of an asset.(4) Where the accounting financial result before all expenses on interest payments and income from interest receivable is a negative quantity, the said result shall be ignored upon determination of the amount of expenses on interest payments unrecognized and recognized under Paragraphs (1) and (2).(5) The provisions of this Article shall apply in respect of any newly incurred expenses on interest payments, observing the sequence of the incurrence of the said expenses.(6) Paragraph (1) shall not apply where: DC1 shall be the debt capital as at the 1st day of January of the current year;DC2 shall be the debt capital as at the 31st day of December of the current year;OE1 shall be the owners' equity as at the 1st day of January of the current year;OE2 shall be the owners' equity as at the 31st day of December of the current year.(7) The expenses on interest payments incurred by credit institutions shall not be regulated according to the procedure established by Paragraphs (1) to (6).Chapter NineAMOUNTS INVOLVED UPON DETERMINATION OF TAX FINANCIAL RESULTSecurities Traded on Regulated MarketsArticle 44. Where the disposition of any shares and any negotiable rights attaching to shares in public companies, shares in and units of collective investment schemes, is effected on a regulated Bulgarian securities market, upon determination of the tax financial result the accounting financial result:1. shall be debited with the profit determined as a positive difference between the selling price and the documented cost of acquisition of the said securities, and2. shall be credited with the loss determined as a negative difference between the selling price and the documented cost of acquisition of the said securities.Subsequent Valuations Reserve in Respect of Assets which Are Not TaxDepreciable AssetsArticle 45. (Supplemented, SG No. 110/2007) Upon determination of the tax financial result, the accounting financial result shall be credited with the value of the revaluation reserve (subsequent valuations reserve) written off upon the write-off of any assets which are not tax depreciable assets, where an accounting income or expense has not been accounted for upon the write-off of the said reserve. The said crediting shall be effected in the year of write-off of the asset. Where any land is transformed into investment property, the said crediting shall be effected in the year of write-off of the investment property.Tax Treatment of DebtsArticle 46. (1) (Amended, SG No. 110/2007) Upon determination of the tax financial result, the accounting financial result shall be credited with the amount of the debts of the taxable person, and the said crediting shall be effected in the year in which one of the following circumstances occurs:1. the debts are extinguished by prescription, but not more than five years after the time when the debt became exigible;2. the bankruptcy proceedings against the taxable person have been closed by a confirmed plan for rehabilitation which provides for incomplete satisfaction of the creditors; the crediting shall be effected by the amount of the diminution in the debt;3. an effective judgement of court has decreed that the debt or part thereof is undue;4. the creditor has relinquished the claim thereof by a judicial procedure or has redeemed the said claim; the crediting shall be effected by the amount redeemed;5. before the lapse of the prescription period, the debts have been extinguished by virtue of a law;6. the taxable person has submitted a motion for expungement.(2) (Amended, SG No. 110/2007) Paragraph (1) shall not apply, where the debt was extinguished or accounting income were accounted for as a result of a write-off of the debt in the year of occurrence of a circumstance under Paragraph (1).(3) (New, SG No. 110/2007) Where Paragraph (1) was applied during a preceding year, upon determination of the tax financial result for the current year, the accounting financial result shall be debited with:1. the amount of the debt extinguished during the year;2. the accounting income accounted for during the current year as a result of a write-off of the debt.(4) (New, SG No. 110/2007) The debiting under Paragraph (3) shall be up to the amount of the crediting under Paragraph (1) during the preceding years in respect of the respective debt.Tax Treatment of Credit for Input Tax Deducted in Respectof Assets Available or upon Registration or Re-registrationunder Value Added Tax Act Article 47. (1) (Supplemented, SG No. 110/2007) Upon determination of the tax financial result, the accounting financial result shall be credited with the amount of the credit for input tax deducted by the taxable person in respect of the assets available as at the date of registration or re-registration under the Value Added Tax Act, where accounting income is not accounted for in connection with the credit for input tax deducted.(2) (Repealed, SG No. 110/2007). (3) (Amended, SG No. 110/2007) Paragraph (1) shall not apply where:1. the value added tax is not included in the historical cost of the asset, or2. the asset is not a tax depreciable asset and the said asset was written off in the year of registration or re-registration under the Value Added Tax Act. (4) (New, SG No. 110/2007) In case of a write-off of an asset which is not a tax depreciable asset and where to Paragraph (1) was not applied in a preceding year, upon determination of the tax financial result for the current year, the accounting financial result shall be debited with the amount of the credit for input tax deducted for the respective asset wherewith the accounting financial result has been credited according to the procedure established by Paragraph (1).Chapter TenTAX DEPRECIABLE ASSETSTax Depreciable AssetsArticle 48. Tax depreciable assets shall comprehend:1. the tax tangible fixed assets;2. the tax intangible fixed assets;3. the investment properties, with the exception of land;4. the subsequent expenses referred to in Article 64 herein.GoodwillArticle 49. (1) Goodwill generated as a result of a business combination shall not be a tax depreciable asset.(2) Any loss from impairment and upon write-off of goodwill shall not be recognized for tax purposes.Tax Tangible Fixed AssetsArticle 50. "Tax tangible fixed assets" shall be the amounts which satisfy the requirements for depreciable tangible fixed assets according to the National Financial Reporting Standards for Small and Medium-Sized Enterprises whose value equals or exceeds the lesser of:1. the value materiality threshold for the tangible fixed asset, as adopted in the accounting policies of the taxable person;2. (amended, SG No. 110/2007) seven hundred leva.Tax Intangible Fixed AssetsArticle 51. (1) "Tax intangible fixed assets" shall be:1. any acquired non-financial resources which:(a) have no physical substance;(b) are used during a period longer than twelve months;(c) have a limited useful life;(d) are of a value which equals or exceeds the lesser of:(aa) the value materiality thresholds for the tangible fixed asset, as adopted in the accounting policies of the taxable person;(bb) (amended, SG No. 110/2007) seven hundred leva;2. (repealed, SG No. 110/2007); 3. any amounts charged as a result of business transactions leading to an increase in the economic benefits flowing from a tax tangible fixed asset which is hired or provided for use; the said amounts shall not form a tax tangible fixed asset.(2) Any accounting expenses, accounted for in connection with the acquisition of a tax tangible fixed asset before the origination of the said asset, shall not be recognized for tax purposes in the year of accounting for the said expenses and shall be involved upon determination of the tax depreciable value of the said asset. Where any circumstances determining that the taxable person will not acquire the tax intangible fixed asset occur in a succeeding year, the unrecognized expenses referred to in sentence one shall be recognized for tax purposes in the year of occurrence of any such circumstances, if the requirements of this Act are complied with.Tax Depreciation ScheduleArticle 52. (1) Any taxable persons which form a tax financial result shall prepare and keep a tax depreciation schedule, posting therein all tax depreciable assets.(2) The tax depreciation schedule shall be a tax ledger wherein the information, specified according to the requirements of this Act, regarding the process of acquisition, subsequent keeping, depreciation and write-off of the tax depreciable assets, shall be posted.(3) The tax depreciation schedule shall contain, as a minimum, the following information on each tax depreciable asset:1. designation;2. month of commissioning;3. tax depreciable value;4. tax depreciation charged;5. tax value;6. annual rate of tax depreciation;7. annual tax depreciation;8. month of occurrence of any changes in the values of the asset and the circumstances necessitating the said changes;9. month of discontinuance and resumption of the charging of tax depreciations and the circumstances which necessitate the said discontinuance and resumption;10. month of write-off of the asset covered under Article 60 (3) herein for accounting purposes and the circumstances which necessitate the said write-off.11. month of write-off of the asset in the tax depreciation schedule.Values of Tax Depreciable AssetsArticle 53. (1) The "tax depreciable value" shall be the historical cost of the asset debited with the charged provisions and donations associated with the asset which are included in the said cost. In the cases referred to in Article 64 (1) and Article 67 herein, the tax depreciable value shall be the sum total of:1. the subsequent expenses: in the cases referred to in Article 64 (1) herein;2. the expenses unrecognized for tax purposes: in the cases referred to in Article 67 herein.(2) The "annual tax depreciation" shall be the depreciation charged in the tax depreciation schedule for the relevant year according to the requirements of this Chapter.(3) The "tax depreciation charged" shall be the sum total of the annual tax depreciations for the relevant asset. The tax depreciation charged may not exceed the tax depreciable value of the asset.(4) The "tax value" shall be the tax depreciable value of the asset debited with the tax depreciation charged for the said asset.Tax and Accounting DepreciationsArticle 54. (1) The tax depreciations, determined according to the procedure established by this Chapter, shall be recognized upon determination of the tax financial result.(2) (Supplemented, SG No. 110/2007) The accounting expenses on depreciation shall not be recognized for tax purposes. Upon determination of the tax financial result, the accounting financial result shall be credited with the accounting depreciations, regardless of whether the accounting for the said depreciations leads to a diminution in the accounting financial result for the year of accounting for the said depreciations.Tax Depreciable Asset CategoriesArticle 55. (1) Upon determination of the annual tax depreciations, tax depreciable assets shall be allocated to the following categories:1. Category I: solid buildings, including investment properties, plant, transmission facilities, electric power carriers, communication lines;2. Category II: machinery, process equipment, apparatus;3. Category III: means of transport excluding automobiles; surfacing of roads and of runways;4. (Supplemented, SG No. 110/2007) Category IV: computers, computer peripheral equipment, software, and right to use software, mobile telephones;5. Category V: automobiles;6. Category VI: tax tangible and intangible fixed assets whereof the period of use is restricted according to contractual relationships or a legal obligation;7. Category VII: all other depreciable assets.(2) The annual rate of tax depreciation shall be determined on a single occasion for the year and may not exceed the following amounts:Asset category Annual rate of tax depreciation (%)I 4II 30III 10IV 50V 25VI 100/years of legal restriction The annual rate may not exceed 33 1/3VII 15 (3) In respect of Category II assets, the annual rate of tax depreciation may not exceed 50 per cent, where the following conditions are simultaneously fulfilled:1. the assets form part of an initial investment;2. the assets are new as fabricated and have not been exploited prior to the acquisition thereof.(4) (Repealed, SG No. 110/2007). (5) (New, SG No. 110/2007) The acquisition of an asset through conclusion of a lease contract, classified as financial lease according to accounting legislation, shall be no grounds for allocation of the said asset to Category VI.Standard Procedure for Posting of Assets in Tax Depreciation ScheduleArticle 56. Tax depreciable assets shall be posted in the tax depreciation schedule at the tax depreciable value thereof.Specific Procedure for Posting of Assets in Tax Depreciation ScheduleArticle 57. (1) Any person, in respect of which the tax treatment changes as a result of which an obligation to form a tax financial result arises for the said person, shall prepare a tax depreciation schedule wherein the tax depreciable assets available at that time shall be posted at tax depreciable value and tax depreciation charged determined according to the procedure established by Paragraphs (2) and (3).(2) The tax depreciable value of any asset referred to in Paragraph (1) shall be determined by means of:1. crediting the historical cost of the said asset with the subsequent expenses incurred theretofore which, according to accounting legislation, lead to future economic benefits derived from the said asset;2. debiting the historical cost of the said asset with the charged provisions and donations associated with the said asset which are included in the said cost.(3) The tax depreciation charged for any asset referred to in Paragraph (1) shall be the accounting depreciation which would be charged theretofore on the historical cost of the said asset, adjusted according to the procedure established by Paragraph (2).(4) Any assets for which the tax depreciation charged equals or exceeds the tax depreciable value thereof shall not be posted upon preparation of the tax depreciation schedule.(5) Paragraphs (1) to (4) shall furthermore apply in the cases of re-posting of an asset in the tax depreciation schedule.Charging of Tax DepreciationsArticle 58. (1) (Supplemented, SG No. 110/2007) Tax depreciation shall commence to be charged as from the beginning of the month in which the tax depreciable asset is commissioned or as from the beginning of the next succeeding month. The date of commissioning must be supported by documents.(2) Where a procedure for commissioning is provided for in a statutory instrument, the asset may not be commissioned for tax purposes earlier than what is established in the statutory instrument.(3) The annual tax depreciation shall be arrived at according to the following formula: where:ATD shall be the annual tax depreciation;TDV shall be the tax depreciable value;ARTD shall be the annual rate of tax depreciation, determined by the taxable person according to Article 55 (2) and (3) herein;M shall be the number of months of the year during which tax depreciation is charged.Discontinuance of Charging of Tax DepreciationsArticle 59. (Amended, SG No. 110/2007, effective 1.01.2007) (1) Charging of tax depreciations shall be discontinued when the relevant asset is temporarily withdrawn from use (no economic benefit is derived there from) for a period not exceeding twelve months. Charging shall be discontinued as from the beginning of the month next succeeding the month during which the period referred to in sentence one elapsed and shall be resumed as from the beginning of the month of re-commissioning of the said asset. The tax depreciable asset shall not be written off in the tax depreciation schedule.(2) Upon determination of the tax financial result for the year during which the twelve-month period referred to in Paragraph (1) elapsed, the annual tax depreciation of the taxable person shall be debited with the amount of the tax depreciation charged for the asset during the twelve months during which the asset was withdrawn from use. The values of the tax depreciable asset at the date of discontinuance of the charging of tax depreciation shall be adjusted for the amount of the debiting under sentence one as follows:1. the tax depreciation charged for the asset shall be debited;2. the tax value of the asset shall be credited.(3) Any taxable person where against liquidation or bankruptcy proceedings are pending shall discontinue the charging of tax depreciations for those assets for which the charging of accounting depreciations is discontinued according to the requirements of accounting legislation. At the date of discontinuance of the charging of tax depreciations, Article 60 (5) herein shall apply, mutatis mutandis.(4) The charging of tax depreciations in respect of any assets covered under Article 60 (3) herein shall not be discontinued.Write-off of Assets in Tax Depreciation ScheduleArticle 60. (1) An asset shall be written off in the tax depreciation schedule where the said asset is completely depreciated for tax purposes.(2) Where an asset is written off for accounting purposes before being fully depreciated for tax purposes, the said asset shall be written off in the tax depreciation schedule at the beginning of the month during which the said asset is written off for accounting purposes.(3) Paragraph (2) shall not apply upon the write-off of any assets:1. (amended, SG No. 110/2007) which are completely depreciated for accounting purposes;2. as a result of an increase in the value materiality threshold.(4) Any assets referred to in Paragraph (3) shall be written off in the tax depreciation schedule according to the procedure established by Paragraph (1).(5) (Supplemented, SG No. 110/2007) Where any depreciable asset according to the National Financial Reporting Standards for Small and Medium-Sized Enterprises is transformed into a non-depreciable asset, with the exception of transformation into an investment property, the said asset shall be written off in the tax depreciation schedule as from the beginning of the current month. Sentence one shall not apply to any assets which are completely depreciated for accounting purposes and which are temporarily withdrawn from use (no economic benefit is derived there from).(6) Where a tax depreciable asset ceases to be used for an activity in respect of which a tax financial result is formed, the said asset shall be written off in the tax depreciation schedule as from the beginning of the current month.Retention of Values of Tax Depreciable AssetArticle 61. The values of the tax depreciable asset shall not change upon:1. any subsequent accounting valuation (revaluation and impairment);2. any change in accounting policy, including any change in the applicable accounting standards;3. any accounting errors applying to prior periods, with the exception of technical errors;4. registration or re-registration under the Value Added Tax Act .Change in Tax Depreciable Asset ValuesArticle 62. (1) A change in the values of the tax depreciable asset shall be effected upon occurrence of any circumstances necessitating such a change according to accounting legislation, with the exception of the cases covered under Article 61 herein.(2) The change in the values of the asset shall be shown in the tax depreciation schedule as at the 1st day of January of the year in which the circumstances necessitating the change have been ascertained. The tax depreciation schedule shall not be changed and the tax depreciation charged shall not be adjusted in respect of prior years.(3) The values of the tax depreciable asset after the change must equal the value which would be determined if the circumstances necessitating the change were known during the prior years.(4) Upon determination of the tax financial result, the annual tax depreciation of the asset for the current year shall be adjusted for the difference between the tax depreciation charged for the asset during the prior years and the annual tax depreciation which would be charged for the said years if the circumstances necessitating the change were known during the prior years.(5) Where the circumstances ascertained do not necessitate a change in the values of the asset for prior years, the change in the values shall be shown in the tax depreciation schedule as at the time of ascertainment of the circumstance during the current year.Subsequent Expenses Associated with Asset Availablein Tax Depreciation ScheduleArticle 63. The tax depreciable value of any asset which is available in the tax depreciation schedule shall be credited with any subsequent expenses which, according to accounting legislation, lead to future economic benefits associated with the tax depreciable asset. The tax depreciable asset shall be credited as from the beginning of the month during which the said subsequent expenses were incurred.Subsequent Expenses Associated with Asset Written Offin Tax Depreciation ScheduleArticle 64. (1) Where an asset has been written off in the tax depreciation schedule but has not been written off for accounting purposes, a separate tax depreciable asset shall be posted with the subsequent expenses which, according to accounting legislation, lead to future economic benefits associated with the said asset.(2) The tax depreciable asset referred to in Paragraph (1) shall be posted in the tax depreciation schedule as from the beginning of the month during which the subsequent expenses were completed.(3) For the purposes of Article 55 herein, the tax depreciable asset shall be allocated to the category to which the asset in connection with which the subsequent expenses have been incurred was allocated.(4) Where the asset in connection with which the subsequent expenses have been incurred is written off in the tax depreciation schedule before the tax depreciable asset referred to in Paragraph (1) is fully depreciated, the said asset shall be written off in the tax depreciation schedule under the terms and according to the procedure established by Article 60 herein.Income and Expenses from Subsequent Valuations of TaxDepreciable AssetsArticle 65. The accounting income and expenses from subsequent valuations of tax depreciable assets shall not be recognized for tax purposes.Adjustment of Accounting Financial Result upon Write-Offof Tax Depreciable AssetArticle 66. (1) Where an asset is written off in the tax depreciation schedule, upon determination of the tax financial result the accounting financial result shall be credited with the accounting carrying value of the asset.(2) Where an asset is written off in the tax depreciation schedule, upon determination of the tax financial result the accounting financial result shall be debited with the tax value of the asset.(3) Paragraphs (1) and (2) shall not apply:1. in the cases of unrecognized expenses on shrinkage of assets and associated claims, where the tax value exceeds the accounting carrying value of the said asset;2. upon write-off of an asset for the account of owners' equity, where the tax value exceeds the accounting carrying value of the said asset;3. upon write-off of an asset according to the procedure established by Article 60 (6) herein, where the tax value exceeds the accounting carrying value of the said asset;4. upon transformation of corporations and restructuring of cooperatives under Sections II and III of Chapter Nineteen herein.Accounting Expenses Forming Tax Depreciable AssetArticle 67. Any accounting expenses forming a tax depreciable asset, including any subsequent expenses, shall not be recognized for tax purposes.Income and Expenses Accounted for in Connection withDonation Associated with Tax Depreciable AssetArticle 68. Any accounting income and expenses, accounted for in connection with a donation wherewith the historical cost has been debited upon determination of the tax depreciable value of the asset, shall not be recognized for tax purposes.Specific Tax Treatment of Asset Formed as Resultof Development ActivityArticle 69. (1) Upon determination of the tax financial result, the taxable person shall have the right to debit the accounting financial result thereof with the historical cost of an intangible fixed asset on a single occasion in the year of formation of the said result, where the following conditions are simultaneously fulfilled:1. the asset has been formed as a result of development activity;2. the development activity has been carried out in connection with the activity carried out by the taxable person as a regular business;3. the development activity has been commissioned under market conditions to a scientific research institute or a higher school.(2) Where the taxable person has exercised the right thereof under Paragraph (1), the intangible fixed asset accounted for under Paragraph (1) shall not be a tax depreciable asset.Chapter ElevenCARRY-FORWARD OF TAX LOSSGeneral DispositionsArticle 70. (1) Taxable persons shall have the right to carry forward the tax loss formed according to the procedure established by this Part. Where a taxable person has elected to carry forward the tax loss, the said loss shall mandatorily be carried forward successively until the depletion thereof during the next succeeding five years.(2) The taxable person shall exercise the right thereof to election by means of deduction of the tax loss during the first year after incurrence of a tax loss, during which the said person has formed a positive tax financial result before deduction of the tax loss. Where the taxable person has not formed a positive tax financial result before deduction of the tax loss until the date of tax control, the person shall be presumed to have exercised the right thereof to election in respect of carry-forward of a tax loss.Procedure for DeductionArticle 71. (1) A tax loss shall be deducted upon determination of the tax financial result within the amount of the positive tax financial result before deduction of the tax loss. Where the tax loss is less than the positive tax financial result before deduction of the tax loss, the full amount of the said loss shall be deducted upon determination of the tax financial result.(2) The tax loss shall furthermore be deducted upon determination of the quarterly prepayments of corporation tax.Newly Incurred Tax LossesArticle 72. The provisions of this Chapter shall apply in respect of any newly incurred tax losses, observing the sequence of incurrence of the said losses. In respect of each of the newly incurred tax losses, the five-year-period shall begin to run from the year next succeeding the year of incurrence of the said losses.Loss from Source Outside Bulgaria upon Application of Exemption withProgression MethodArticle 73. (1) Any tax loss, formed during the current year in a State wherewith the Republic of Bulgaria has concluded a convention for the avoidance of double taxation and the method of avoidance of double taxation with respect to profits is exemption with progression, shall not be deducted from the tax profits from a source inside the country or other States during the current of succeeding years.(2) The tax loss referred to in Paragraph (1) shall be deducted in compliance with the requirements of this Chapter successively solely from the tax profits from the source outside Bulgaria from which the said loss has been incurred during the next succeeding five years.(3) Upon cessation of the activity of a permanent establishment in a Member State of the European Community or of the European Economic Area, any tax losses from a permanent establishment which have not been carried forward and have not been recovered shall be carried forward according to the standard procedure established by this Act until lapse of the five-year period since the incurrence of the said losses.Loss from Source Outside Bulgaria upon Application of Credit MethodArticle 74. (1) Where a taxable person has formed a tax loss and the said loss or a part thereof has its source outside Bulgaria in respect of which source the credit method for avoidance of double taxation is applied, the loss which is not deducted during the current year shall be deducted during the next succeeding five years in compliance with the requirements of this Chapter successively solely from the tax profits from the source outside Bulgaria from which the said loss has been incurred.(2) Where the tax loss for the year has not been formed from a single source (foreign State or the country), the said loss shall be allocated for the purposes of Paragraph (1) among the States from which the said loss has originated according to the following formula: where:A shall be the part of the tax loss incurred by the taxable person for the year, allocated to the relevant source (foreign State or the country);B shall be the tax loss formed by the taxable person for the year;C shall be the tax loss formed from the relevant source (foreign State or the country);D shall be the sum total of the tax losses formed from all sources (foreign States and the country).(3) Paragraph (1) shall not apply to any losses from a source within a Member State of the European Community or of the European Economic Area.Chapter TwelveACCOUNTING ERRORSCorrection of Accounting ErrorsArticle 75. (1) Upon detection, during the current year, of any accounting error related to prior years, the tax financial results for the relevant prior years shall be corrected according to the requirements of the laws effective during the relevant prior years in a way as if the said error was nor made.(2) Upon determination of the tax liability on the tax financial result for a prior year as corrected under Paragraph (1), the rate of tax for the relevant prior year shall be applied.(3) (Amended, SG No. 110/2007) Upon assessment of the annual corporation tax due for the current year, the annual corporation tax for the current year shall be adjusted for the difference between the tax liability before and after the correction as a result of the error.(4) Where, as a result of an error detected, it is established that the taxable person has continued to form a tax depreciable asset for the relevant prior year, an annual tax depreciation equal to the accounting depreciation shall be recognized upon determination of the tax financial results for the prior years, which may not exceed the annual tax depreciation which would be charged if the maximum permissible annual rates of tax depreciation under Article 55 herein were used. The tax depreciable asset shall be posted in the tax depreciation schedule as at the 1st day of January of the year of detection of the error at the tax depreciable value of the said asset and the tax depreciation charged under sentence one.(5) The temporary tax difference which would originate during a prior year if the error was not made shall be considered as having originated during the relevant prior year and shall be recognized for tax purposes according to the standard procedure established by this Act.(6) Paragraphs (1) to (3) shall not apply to any errors made more than five years before the current year which, if not made, would have led to a diminution in the tax financial result for the relevant prior year.(7) All accounting income and expenses, accounted for during the current year in connection with a detected accounting error from prior years, shall not be recognized for tax purposes.Specific Cases of Correction of Accounting ErrorsArticle 76. Where, after correction of the tax financial result under Article 75 (1) herein, a tax loss for the relevant prior period is incurred or changes, the provisions of Chapter Eleven herein shall apply. The tax financial results for the years from the making of the error until the detection thereof shall be corrected according to the procedure established by Article 75 herein in such a way as if the error was not made. The year during which the error was made shall be considered a year of incurrence of the tax loss.Expenses Accounted for in Breach of Accounting LegislationArticle 77. (1) Any expenses accounted for in breach of accounting legislation shall not be recognized for tax purposes in the year of accounting for such expenses.(2) The expenses unrecognized for tax purposes, referred to in Paragraph (1), shall be recognized for tax purposes where this is permissible under this Act and in compliance with the requirements of this Chapter.Income and Expenses Unaccounted for According to Procedure Establishedby Statutory InstrumentArticle 78. Upon determination of the tax financial result, the accounting financial result shall be corrected by the amount of income and expenses which should have been accounted for during the current year according to the requirements of a statutory instrument but which were not accounted for by the taxable person. Where any accounting income and expenses are subsequently accounted for in connection with a business transaction under sentence one, the said income and expenses shall not be recognized for tax purposes.Accounting Errors Related to Tax Depreciable AssetsArticle 79. This Section, with the exception of Article 75 (4) and (7) herein, shall not apply in respect of any accounting errors related to tax depreciable assets.Default InterestArticle 80. Default interest according to the standard procedure shall furthermore be due upon application of Article 75 herein. The interest shall be due as from the date on which the corporation tax for the relevant prior year should have been remitted.Corrections of Errors Detected upon Tax ControlArticle 81. The provisions of this Chapter, with the exception of Article 75 (3) herein, shall furthermore apply in the cases of errors detected upon tax control.Chapter ThirteenCHANGE IN ACCOUNTING POLICIESAdjustment upon Change in Accounting PoliciesArticle 82. (1) Where the accounting policies change, upon determination of the tax financial result, the accounting financial result for the current year shall be adjusted in the manner and by the amount whereby the tax financial results for the prior years would have been adjusted if the changed accounting policies were applied during the said years.(2) The temporary tax differences, which have originated according to the accounting policies applied before the change, shall be considered as not having originated.(3) In case the changed accounting policies have been applied during the prior years and temporary tax differences would have originated as a result of this, the said differences shall be considered as having originated and shall be recognized according to the standard procedure established by this Act.(4) Any accounting income and expenses, accrued and incurred as a result of changed accounting policies, shall not be recognized for tax purposes.(5) (Amended, SG No. 110/2007, effective 1.01.2007) Paragraphs (1) to (3) shall not apply upon any change in accounting policies related to tax depreciable assets.(6) No default interest shall be due upon any change in accounting policies where the effect of the said change leads to an increase in the tax financial result.Chapter FourteenTAX PREPAYMENTSGeneral DispositionsArticle 83. (1) (Redesignated from Article 83, SG No. 110/2007) Any taxable person shall make monthly or quarterly prepayments of corporation tax.(2) (New, SG No. 110/2007) Prepayments shall not be made by:1. any taxable persons whose net turnover for the last preceding year does not exceed BGN 200,000;2. any newly incorporated taxable persons, for the year of the incorporation thereof, with the exception of any such persons newly incorporated as a result of a transformation under the Commerce Act. Monthly Tax PrepaymentsArticle 84. Monthly tax prepayments shall be made by any taxable person which has formed a tax profit for the last preceding year.Quarterly Tax PrepaymentsArticle 85. Quarterly tax prepayments shall be made by any taxable person which is under no obligation to make monthly tax prepayments.Determination of Monthly Tax PrepaymentsArticle 86. (1) (Redesignated from Article 86, SG No. 110/2007) The monthly tax prepayments shall be determined according to the following formula: where:PRMONTHLY shall be the monthly tax prepayment;PD shall be the tax profit declared for the year before the last preceding year (upon determination of monthly tax prepayments for the period from the 1st day of January until the 31st day of March) or the tax profit declared for the last preceding year (upon determination of monthly tax prepayments for the period commencing on the 1st day of April and ending on the 31st day of December);k shall be the coefficient reflecting changes in the economic conditions for the current year, as endorsed by the State Budget of the Republic of Bulgaria Act for the relevant year;RT shall be the rate of corporation tax.(2) (New, SG No. 110/2007) Where the tax profit for the last preceding year exceeds the tax profit for the year before the last preceding year, the monthly tax prepayment for April shall be determined by crediting the monthly tax prepayment, calculated according to the procedure established by Paragraph (1) for the period commencing on the 1st day of April and ending on the 31st day of December, with the amount determined according to the following formula:A = 3 x (PR2 - PR1),where:A shall be the amount credited;PR1 shall be the monthly tax prepayment for the period commencing on the 1st day of January and ending on the 31st day of March, calculated according to the procedure established by Paragraph (1);PR2 shall be the monthly tax prepayment for the period commencing on the 1st day of April and ending on the 31st day of December, calculated according to the procedure established by Paragraph (1).The same procedure shall furthermore apply to the determination of the monthly tax prepayment for April in the cases where the taxable person:1. was incorporated during the last preceding year, or2. formed a tax loss for the year before the last preceding year, or3. did not form a tax financial result for the year before the last preceding year.(3) (New, SG No. 110/2007) Where the tax profit for the year before the last preceding year exceeds the tax profit for the last preceding year, the monthly tax prepayment for April shall be determined by debiting the monthly tax prepayment, calculated according to the procedure established by Paragraph (1) for the period commencing on the 1st day of April and ending on the 31st day of December, with the amount determined according to the following formula:B = 3 x (PR2 - PR1)where:B shall be the amount debited;PR1 shall be the monthly tax prepayment for the period commencing on the 1st day of January and ending on the 31st day of March, calculated according to the procedure established by Paragraph (1);PR2 shall be the monthly tax prepayment for the period commencing on the 1st day of April and ending on the 31st day of December, calculated according to the procedure established by Paragraph (1).Where the amount debited exceeds the monthly tax prepayment calculated according to the procedure established by Paragraph (1) for the period commencing on the 1st day of April and ending on the 31st day of December, the monthly tax prepayment for April shall be zero, and the excess shall be deducted from the following monthly tax prepayments for the current year upon determination of the amount of the said tax prepayments.Determination of Quarterly Tax PrepaymentsArticle 87. The quarterly tax prepayments shall be determined according to the following formula: where:PRQUARTERLY shall be the monthly tax prepayment;TP shall be the tax profit for the period from the beginning of the year until the end of the quarter for which the quarterly tax prepayment is determined;RT shall be the rate of corporation tax;PRREMITTED shall be the tax prepayments remitted from the beginning of the year until the end of the quarter for which the quarterly tax prepayment is determined.Declaration on Reduction of Tax PrepaymentsArticle 88. (1) The taxable persons may submit a declaration in a standard form on reduction of tax prepayments when the said persons assume that the said prepayments will exceed the annual corporation tax due.(2) The reduction of tax prepayments shall be enjoyable after submission of the declaration.Interest upon Excessive Reduction of Tax PrepaymentsArticle 89. (1) Where the taxable person has reduced the tax prepayments thereof according to the procedure established by Article 88 herein and the annual corporation tax due exceeds the tax prepayments due for the relevant year by more than 10 per cent, interest shall be due.(2) The amount whereon interest is due under Paragraph (1) shall be arrived at as a difference between the annual corporation tax due and the tax prepayments due for the year. Where the sum total of the tax prepayments for the year, as determined according to the procedure established by Article 86 or 87 herein, is less than the annual corporation tax due, the said prepayments shall be taken into consideration instead of the annual corporation tax upon determination of the difference referred to in sentence one.(3) For the purpose of calculation of the interest referred to in Paragraph (1), the amount referred to in Paragraph (2) shall be allocated to the relevant months/quarters during which a reduced tax prepayment has been declared according to Article 88 herein. The part of the amount referred to in Paragraph (2), as allocated to the relevant month/quarterly, shall be arrived at according to the following formula: where:A shall be the part of the amount whereon interest is due, allocated to the relevant month/quarter during which a reduced tax prepayment has been declared according to Article 88 herein;B shall be the tax prepayment as determined according to the procedure established by Article 86 or 87 herein for the relevant month/quarter;C shall be the tax prepayment due for the relevant month/quarter;D shall be the aggregate amount whereon a default interest is due, as determined according to the procedure established by Paragraph (2);E shall be the sum total of the tax prepayments for the year, as determined according to the procedure established by Article 86 or 87 herein;F shall be the sum total of the tax prepayments due for the year.(4) "Tax prepayment due," within the meaning given by this Article, shall be:1. a tax prepayment as determined according to the procedure established by Article 86 or 87 herein: applicable to the tax prepayments before submission of the declaration on reduction of tax prepayments according to the procedure established by Article 88 herein;2. the reduced tax prepayment as determined by the declaration on reduction of tax prepayments according to the procedure established by Article 88 herein: applicable to the tax prepayments after submission of the declaration on reduction of tax prepayments according to the procedure established by Article 88 herein.(5) The interest referred to in Paragraph (1) in respect of the relevant tax prepayment shall be determined according to the Interest on Taxes, Fees and Other State Receivables Act and shall be charged as from the date on which the tax prepayment became exigible and until the date of remittance of the annual corporation tax, but not later than the 31st day of March of the next succeeding year.Remittance of Tax PrepaymentsArticle 90. (1) Monthly tax prepayments shall be remitted on or before the 15th day of the month to which the said prepayments apply.(2) Quarterly tax prepayments shall be remitted on or before the 15th day of the month next succeeding the quarter to which the said prepayments apply. No quarterly tax prepayment shall be made for the fourth quarter.Retention of Tax PrepaymentsArticle 91. Any taxable person which is allowed to retain corporation tax for the current year shall furthermore be allowed to retain the relevant portion of the tax prepayments due in proportion to the amount of the retention.Chapter FifteenCORPORATION TAX DECLARING AND REMITTANCEDeclaring of Corporation TaxArticle 92. (1) Any taxable persons which are liable to corporation tax shall submit an annual tax return in a standard form regarding the tax financial result and the annual corporation tax due.(2) The annual tax return shall be submitted on or before the 31st day of March of the next succeeding year at the National Revenue Agency territorial directorate exercising competence over the place of registration of the taxable person.(3) The annual financial statement, including the notes thereon, shall be submitted together with the annual tax return. Any enterprises whereof the annual financial statements are subject to mandatory financial audit according to the Accountancy Act , shall furthermore submit a copy of the report under the Independent Financial Audit Act . If the independent financial audit has not been completed by the 31st day of March of the next succeeding year, the auditor's report shall be submitted additionally but not later than the 30th day of June of the next succeeding year, together with a copy of the annual financial statement as certified by a registered auditor.(4) Where any divergence exists between the annual financial statement as submitted and the annual tax return and the annual financial statement as certified by the registered auditor which leads to a change in the tax financial result as already declared, the taxable person shall submit an adjusting return according to the procedure established by Paragraph (2) on or before the 30th day of June of the next succeeding year, declaring inter alia the reasons for the divergences.(5) A rate rebate of 1 per cent of the annual corporation tax due but not more than BGN 1,000 shall be enjoyable by any taxable person which submits an annual tax return and the annual financial statement thereof on or before the 31st day of March of the next succeeding year by electronic means and which remits the corporation tax on or before the same date.Tax RemittanceArticle 93. Any taxable person shall remit the corporation tax for the relevant year on or before the 31st day of March of the next succeeding year after deduction of the tax prepayments remitted for the relevant year.Overremitted TaxArticle 94. (1) Any overremitted corporation tax may be deducted from succeeding tax prepayments and annual payments of the same tax as from the 1st day of January of the year next succeeding the year for which the corporation tax was overremitted.(2) Where after submission of the annual tax return it is established that the taxable person has groundlessly deducted corporation tax, interest shall be due on any unremitted tax prepayments.Chapter SixteenFINANCIAL INSTITUTIONSIncome and Expenses Determined by Regulatory AuthorityArticle 95. Where there exists any divergence between the amount of income or expenses as accounted for according to the accounting policies of a financial institution and the amount as determined by a regulatory authority according to a statutory instrument, the amount as determined according to the special statutory instrument shall be recognized upon determination of the tax financial result.Income and Expenses from Subsequent Valuations (Revaluations andImpairments) of Financial AssetsArticle 96. Any income and expenses from subsequent valuations of financial assets and liabilities, accounted for by financial institutions, shall be recognized for tax purposes in the year of accounting for the said income and expenses. Financial institutions shall not apply Articles 34, 35 and 37 herein in respect of the financial assets and liabilities.Subsequent Valuations of Financial Assets and Liabilities RecognizedDirectly in Owners' EquityArticle 97. (1) Upon determination of the tax financial result of financial institutions, the accounting financial result thereof shall be credited with any profits from subsequent valuations of financial assets and liabilities, recognized during the current year directly in the owners' equity thereof.(2) Upon determination of the tax financial result of financial institutions, the accounting financial result thereof shall be debited with any losses from subsequent valuations of financial assets and liabilities, recognized during the current year directly in the owners' equity thereof.(3) (Amended, SG No. 110/2007) Any profits and losses recognized during the current year in the profit-and-loss account (income statement), which were involved upon determination of the tax financial result according to the procedure established by Paragraphs (1) and (2), shall not be recognized for tax purposes.Chapter SeventeenSPECIFIC RULES FOR DETERMINATION OF TAX FINANCIALRESULT OF COOPERATIVESProducer and Consumer DividendsArticle 98. (1) "Producer dividends" shall be the amounts which are distributed for output produced by cooperative members and sold to the cooperative. Any such dividends shall be determined on the basis of the profit corresponding to the output sold, whether before of after the processing of the said output.(2) "Consumer dividends" shall be the amounts which are distributed for consumer goods purchased by cooperative members from the cooperative. Any such dividends shall be determined on the basis of the profit arising from the difference between the selling price, whereat the cooperative has sold the goods, less the distribution costs thereof, and the price paid by the cooperative for acquisition of the said goods.Tax Treatment of Producer and Consumer DividendsArticle 99. (1) Upon determination of the tax financial result, the accounting financial result shall be debited with the producer and consumer dividends paid to cooperative members until the 25th day of March of the next succeeding year, which are covered by the balance-sheet profit. The debiting referred to in sentence one shall be effected up to the amount of the positive accounting financial result.(2) Any producer and consumer dividends paid to cooperative members shall be accounted for as accounts receivable and shall be excluded upon determination of the accounting financial result.(3) Where the cooperative has reported, for the relevant year, a balance-sheet loss or a balance-sheet profit insufficient to cover the producer and consumer dividends paid during the year, the amount of the producer and consumer dividends paid during the year and uncovered shall be accounted for as an accounting expense which is not recognized for tax purposes. For more information visit www.solicitorbulgaria.com id: 334 Mon, 04 Aug 2008 06:30:50 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-corporate-income-tax-act-part-1 http://web.solicitorbulgaria.com/index.php/bulgarian-corporate-income-tax-act-part-1 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/CORPORATE_INCOME_TAX_ACT.JPG EUR http://web.solicitorbulgaria.com/index.php/bulgarian-corporate-income-tax-act-part-1 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Section IXGrave Plots LeaseArticle 120. (1) (Supplemented, SG No. 119/2002) A lump-sum fee for the lease of grave plots for a period exceeding eight years shall be charged as follows:1. (amended, SG No. 119/2002) for a period of up to 15 years;2. (amended, SG No. 119/2002) in perpetuity;3. (amended, SG No. 119/2002) for use of family grave plots:(a) (repealed, SG No. 119/2002);(b) (repealed, SG No. 119/2002);4. for undersize grave plots adjoined in accordance with the cemetery regulation plan: the proportionate part of the lease as set for the grave plot.(2) A rate rebate of 50 per cent of the fees covered under Items 1 and 2 of Paragraph (1) shall apply to urn sites.Article 121. The fees shall be collected by the competent offices of the municipality operating the landscaped cemetery.Section XFees for Physical Protection and Field Keeping of AgriculturalPropertiesArticle 122. (Repealed, SG No. 109/2001).Chapter FourADMINISTRATIVE PENALTY PROVISIONSArticle 123. (1) (Amended, SG No. 102/2000)… For more information visit http://www.solicitorbulgaria.com id: 337 Section IXGrave Plots LeaseArticle 120. (1) (Supplemented, SG No. 119/2002) A lump-sum fee for the lease of grave plots for a period exceeding eight years shall be charged as follows:1. (amended, SG No. 119/2002) for a period of up to 15 years;2. (amended, SG No. 119/2002) in perpetuity;3. (amended, SG No. 119/2002) for use of family grave plots:(a) (repealed, SG No. 119/2002);(b) (repealed, SG No. 119/2002);4. for undersize grave plots adjoined in accordance with the cemetery regulation plan: the proportionate part of the lease as set for the grave plot.(2) A rate rebate of 50 per cent of the fees covered under Items 1 and 2 of Paragraph (1) shall apply to urn sites.Article 121. The fees shall be collected by the competent offices of the municipality operating the landscaped cemetery.Section XFees for Physical Protection and Field Keeping of AgriculturalPropertiesArticle 122. (Repealed, SG No. 109/2001).Chapter FourADMINISTRATIVE PENALTY PROVISIONSArticle 123. (1) (Amended, SG No. 102/2000) Any person, who or which fails to submit a tax return under Article 14 herein in due time, or who fails to state or misstates any particulars or circumstances leading to underassessment of the tax or to exemption from tax, shall be liable to a fine of BGN 10 or exceeding this amount but not exceeding BGN 400 (if a natural person) or, if a legal person, to a pecuniary penalty of BGN 100 or exceeding this amount but not exceeding BGN 1,000, unless subject to a severer sanction.(2) (Amended, SG No. 102/2000) Any manager and accountant of an enterprise shall be liable to a fine of BGN 20 or exceeding this amount but not exceeding BGN 200 for any failure to submit a tax return referred to in Article 17 herein in due time, as well as for stating untrue particulars which have led to underassessment of the tax.(3) (New, SG No. 109/2001, amended, SG No. 119/2002) Any person, who or which shall declare any particulars and circumstances leading to reduction of or exemption from fee, will be liable to a fine of BGN 50 or exceeding this amount but not exceeding BGN 200 (if a natural person) or, if a legal person, to a pecuniary penalty of BGN 100 or exceeding this amount but not exceeding BGN 500.Article 124. (1) (Amended, SG No. 153/1998) Any heir or legatee or a legal representative thereof, who fails to submit a declaration under Article 32 herein in due time, or who fails to declare or shall misdeclare any property acquired by succession, shall be liable to a fine of BGN 10 or exceeding this amount but not exceeding BGN 500.(2) (Repealed, SG No. 153/1998).(3) For any violation under Article 41 herein, the offenders shall be liable to a fine of BGN 20 or exceeding this amount but not exceeding BGN 20.Article 125. Any party to an acquisition of property by gift or for a consideration, who conceals part of the price, shall be liable to a fine equivalent to double the amount of the tax due on the concealed part.Article 126. (Repealed, SG No. 119/2002).Article 126a. (New, SG No. 110/2007) (1) Any person, who fails to submit a tax return under Article 61m or who submits any such return past the due date, shall be liable to a fine not exceeding BGN 500, unless subject to a severer sanction.(2) Any person, who fails to state or who misstates any particulars or circumstances under Article 61m a return leading to underassessment of a licence tax or to exemption from a licence tax, shall be liable to a fine not exceeding BGN 1,000, unless subject to a severer sanction.Article 127. (1) (Redesignated from Article 127, SG No. 109/2001, amended, SG No. 119/2002) For any failure to comply with the provisions of this Act other than in the cases covered under Articles 123, 124 and 125 herein, the offenders shall be liable to a fine of BGN 20 or exceeding this amount but not exceeding BGN 200 (if natural persons) or, if legal persons and sole traders, to a pecuniary penalty of BGN 100 or exceeding this amount but not exceeding BGN 500.(2) (New, SG No. 109/2001) Default on payment of any taxes and fees under this Act shall not be treated as an administrative infraction.Article 128. (Amended, SG No. 103/1999) (1) (Amended, SG No. 109/2001, SG No. 119/2002, SG No. 112/2003, SG No. 100/2005) The written statements ascertaining any violations shall be drawn up by the municipal administration officers, and the penalty decrees shall be issued by the municipality mayor or by officials thereby authorized. authorized.(2) (New, SG No. 119/2002, supplemented, SG No. 112/2003, repealed, SG No. 100/2005). (3) (Amended, SG No. 109/2001, renumbered from Paragraph (2), SG No. 119/2002) The ascertainment of violations, the issuance, appeal against and execution of the penalty decrees shall follow the procedure established by the Administrative Violations and Sanctions Act. (4) (New, SG No. 112/2003, amended, SG No. 100/2005) The proceeds from fines and pecuniary penalties under penalty decrees issued by a municipality mayors shall be credited in revenue to the municipal budget.SUPPLEMENTARY PROVISION 1. Within the meaning given by this Act:1. (Amended, SG No. 109/2001) "Enterprises" shall be the persons within the meaning given by the Accountancy Act. 2. "Main residence" shall be the corporeal immovable serving to satisfy the housing needs of the individual and the members of the family thereof during the predominant part of the year.3. "Family" shall be the spouses, as well as the children thereof who have not attained the age of 18 years and who are not married.4. "Agricultural producers" shall be natural or legal persons, who or which produce agricultural produce for sale on the market.5. "Fair market value" shall be the price, net of taxes and fees, which would have been paid under the same terms for a similar corporeal immovable or another thing between persons who or which are not connected. The amount of rebate or reduction shall be excluded from the market value.6. (Amended, SG No. 153/1998, SG No. 105/2005) "Connected persons" shall be the persons within the meaning given by Item 3 of 1 of the Supplementary Provisions of the Tax and Social Insurance Procedure Code. 7. (Amended, SG No. 153/1998, supplemented, SG No. 109/2001) "Household waste" shall be waste resulting from the life activities of people at home, yards, and at office, social and public buildings. Waste from distributive- trade establishments and accessory handicraft activities, enterprises, recreational and entertainment establishments shall be subsumed under household waste where not having the nature of hazardous waste and where, concurrently, the amount or composition thereof will not impede their treatment with household waste.8. "Bulky household waste" shall be the household waste which, on account of the size or weight thereof, cannot be deposited in the receptacles provided for deposition of household waste, or presents difficulty upon loading.9. "Household waste receptacles" shall be garbage containers, dust bins and litter bins provided in public places wherein household waste is deposited, as well as polyethylene bags for separated collection.10. "Scheduled bus lines" shall be the transport services performed along a fixed route and according to a fixed schedule.11. "Personal income" shall be all income of individuals with the exception of:(a) (amended, SG No. 119/2002, SG No. 112/2003) the assisted living supplement, paid to persons who have lost more than 90 per cent of the working capacity thereof and who are entitled to assisted living;(b) the sums which the residents of public care homes receive as remuneration in occupational therapy;(c) the target assistance granted by an act of the Council of Ministers;(d) the humanitarian donations made to residents of public care home and beneficiaries of other forms of social services;(e) (new, SG No. 119/2002) the lump-sum supplements paid to pensions by decision of the Council of Ministers.12. (New, SG No. 109/2001, amended, SG No. 106/2004) "Adjoining ground", within the meaning given by Article 10 (3) herein, shall be the developed yard (the permissible building development as determined) excluding the developed surface area. In cases where no such ground has been determined according to the procedure required by the law, the developed surface area and the adjoining ground shall be presumed to equal 10 per cent of the surface space of the immovable.13. (New, SG No. 109/2001, repealed, SG No. 45/2002).14. (New, SG No. 109/2001, repealed, SG No. 106/2004). 15. (New, SG No. 119/2002) "Full amount of expenses" shall comprehend all expenses incurred by the municipality on provision of the services, including the relevant costs of: wages, salaries and social and health insurance contributions of the staff; cost of supplies, overhead costs, consulting; costs of management and control; costs of collection of the fee and other costs relevant to the formation of the amount of the fee, determined specifically by the Municipal Council.16. (New, SG No. 119/2002) "Base" for assessment of the household waste fee shall be an objective parameter in value expression, on the basis of which the proportional fee is determined in per cent or per mille terms, or a physical parameter, on the basis of which the fee is determined per unit (e. g. BGN/person, BGN/cubic metre consumed water etc.).17. (New, SG No. 119/2002) "Book value" shall be the value of the asset upon accounting recognition or the devalued/revalued value of the asset, where a valuation has been made after the initial accounting recognition.18. (New, SG No. 112/2003) "Destroyed transport vehicles" shall be the transport vehicles accepted for dismantling and storage at the places designated for this, and the transport vehicles which are not subject to reconditioning.19. (New, SG No. 112/2003, amended, SG No. 103/2005) "Insured value" of a motor vehicle shall be the market price at which another property of the same type and quality can be purchased in lieu of the insured property at the time of issuance of the certificate of the insured value of the thing.20. (New, SG No. 112/2003) "Value assessed according to accounting data" under Item 6 of Article 33 (1) herein shall be the balance-sheet value of the assets net of the balance-sheet value of the liabilities of the enterprise.21. (New, SG No. 106/2004) "Lots" shall be the lots as defined within the meaning given by Item 2 of 5 of the Supplementary Provisions of the Spatial Development Act. 22. (New, SG No. 106/2004) "Motor vehicles imported as new", within the meaning given by Article 44 (3) of this Act, shall be the motor vehicles in respect of which the following conditions are simultaneously fulfilled:(a) not more than six months have lapsed since the date of the initial registration thereof (including the initial registration abroad);(b) the said vehicles have covered not more than 6,000 kilometres.23. (New, SG No. 110/2007) "Turnover", for the purposes of levy of a licence tax, shall be the sum total of all sales (of output, goods, services and other sales) from economic activity effected during the year, less the value added tax and/or the excise duties, in the cases where the persons are registered under the Value Added Tax Act and/or are obligated to charge excise duty under the Excise Duties and Tax Warehouses Act. 24. (New, SG No. 110/2007) "Establishment", for the purposes of levy of a licence tax, shall be any place, premise and/or facility, including such in the open air, where an activity covered under Annex 4 hereto is carried out, including:(a) collective tourist accommodation establishments and supplementary tourist accommodations;(b) mass-catering and entertainment establishments;(c) retail shops, open-air stalls, tables at markets, on pavements and in street roadways;(d) studios, workshops and other premises, regardless of whether serving for other purposes as well or being part of an immovable property.25. (New, SG No. 110/2007) "Workplace" shall be an adapted part of an establishment equipped for the performance of a specified type of activity or service by a single person.26. (New, SG No. 110/2007) "Amusement arcade machines" shall be gambling slot-machines without prizes, intended for amusement and recreation, which allow a specified time for use or play on the machine for the price of a game.27. (New, SG No. 110/2007) "Collective tourist accommodation establishments" and "supplementary tourist accommodations" shall be the respective tourism establishments referred to in Items 1 and 2 of Article 3 (3) of the Tourism Act. 28. (New, SG No. 110/2007) "Net selling space" shall be the space in the relevant distributive trade establishment, including the stands, which is accessible to customers.29. (New, SG No. 110/2007) "Mass-catering and entertainment establishments" shall be the respective tourism establishments referred to in Item 3 of Article 3 (3) of the Tourism Act. 30. (New, SG No. 110/2007) "Refreshment bars, kiosks and caravans" shall be drinking establishments serving a limited range of mostly pre-packaged goods, cold and hot snacks, bakery products and sugar confectionery, beer, hot and soft drinks, and a limited range of alcoholic drinks.31. (New, SG No. 110/2007) "Piece of equipment", in connection with the application of Item 35 of Annex 4 hereto, shall be each particular device (machine) which is used directly in the activity (a washing machine, an ironing press, a drying machine and other such).TRANSITIONAL AND FINAL PROVISIONS 2. (1) (Amended, SG No. 103/1999) Any taxable person referred to in Article 11 herein shall submit a tax return on each corporeal immovable to the municipality exercising competence over the situs of the said property care of the municipality exercising competence over the place of residence of the said person not later than the 31st day of May 1998.(2) (Amended, SG No. 103/1999) Any individuals, who have no place of residence within the territory of the Republic of Bulgaria, shall submit a tax return to the Sofia Regional Tax Directorate.(3) Any individuals, who submit a tax return on or before the 31st of March 1998, shall enjoy an additional rate rebate of 5 per cent of the amount of the immovable property tax due for 1998. 3. (1) (Amended, SG No. 83, SG No. 105/1998) Individuals shall pay the immovable property tax and the household waste fee for 1998 as follows: 50 per cent not later than the 30th day of September, 25 per cent not later than the 31st day of October, and 25 per cent not later than the 30th day of November.(2) (Amended, SG No. 83, amended and supplemented, SG No. 105/1998) Any individuals who have paid the entire amount of the immovable property tax and household waste fee due for 1998 not later than the 30th day of September shall enjoy a rate rebate of 5 per cent. The same rate rebate shall apply to any individuals who have received a notice after the said date if they pay the entire amount of the immovable property tax and household waste fee within 30 days after receipt of the said notice. No penalty interest shall be chargeable within the same time period.(3) The additional tax for 1998 shall be paid not later than the 30th day of November. 4. This Act shall furthermore apply, if extending a more favourable treatment, in respect of any succession which has opened prior to the entry thereof into force, should a declaration have been submitted within the time limit established under Article 32 herein but no inheritance tax has been charged on the succession. 5. In the Succession Act (promulgated in the State Gazette No. 22/1949; corrected in No. 41/1949; amended in No. 275/1950, No. 41/1985, No. 60/1992; (modified by) Constitutional Court Judgment No. 4/1996, (promulgated in) No. 21/1996; amended in No. 104/1996), there shall be inserted the following new Article 10a:"Article 10a. Where there are several decedents and the sequence of the occurrence of death of each one of them is unascertainable, the older of any two such decedents shall be presumed to have predeceased the younger." 6. In the Housing Associations Act (promulgated in the State Gazette No. 55/1978; amended in No. 102/1981, No. 45/1984, No. 75/1988, No. 46/1989, No. 21/1990, No. 60/1992 and No. 104/1996), 4 of the Supplementary Provisions is hereby repealed. 7. The Monuments of Culture and Museums Act (promulgated in the State Gazette No. 29/1969; amended and supplemented in No. 29/1973, No. 36/1979, No. 87/1980, No. 102/1981, No. 45/1984, No. 45/1989, Nos. 10 and 14/1990, No. 112/1995; (modified by) Constitutional Court Judgment No. 5/1996, (promulgated in) No. 31/1996; amended in No. 44/1996) shall be amended as follows:1. In Article 25, the last sentence shall be deleted.2. In Paragraph (1) of Article 29, the words "and local" in sentence one shall be deleted. 8. In the State Property Act (promulgated in the State Gazette No. 44/1996; amended in No. 104/1996, Nos. 55 ? 9. In the Notaries and Notarial Practice Act (promulgated in the State Gazette No. 104/1996), Paragraph (3) of Article 96 is hereby repealed. 10. In Article 15 of the Tax Procedures Act (promulgated in the State Gazette No. 61/1993; amended in No. 20/1996 and No. 51/1997), a Paragraph (5) shall be inserted to read as follows:"(5) In assessment of the tax liabilities, the tax base shall be rounded down to BGL 100 if the last two figures are smaller than '50' and rounded up if the last two figures are greater than '50'. The amount of tax shall be rounded up to BGL 10 if the last figure is smaller than '5' and rounded up if the last figure is greater than '5'." 11. Upon issuance of a registration card of any motor vehicle, the Ministry of the Interior shall record the engine power in kilowatts (horse powers) in the said card. 12. This Act shall enter into force on the 1st day of January 1998 and shall supersede the Local Taxes and Fees Act (promulgated in Transactions of the Presidium of the National Assembly No. 104/1951, corrected in No. 10/1952, amended and supplemented in Nos. 12 and 104/1954, No. 91/1957, No. 13/1958, Nos. 57 and 89/1959, Nos. 21 and 91/1960, State Gazette No. 85/1963, Nos. 1 and 52/1965, No. 63/1973, No. 87/1974, No. 21/1975, No. 102/1977, No. 88/1978, No. 36/1979, No. 99/1981, No. 55/1984, No. 73/1987, Nos. 33 and 97/1988, Nos. 21 and 30/1990, No. 82/1991, No. 59/1993, Nos. 40 and 87/1995; (modified by) Constitutional Court Judgment No. 3/1996, (promulgated in) No. 14/1996; amended in Nos. 20 and 37/1996; (modified by) Constitutional Court Judgment No. 9/1996, (promulgated in) No. 58/1996; amended in Nos. 89 and 93/1996, and No. 55/1997).Act to Amend and Supplement the Local Taxes and Fees ActPromulgated, SG No. 105/1998 (effective 8.09.1998)FINAL PROVISION 2. This Act shall enter into force on the date of promulgation thereof in the State Gazette and shall apply to all payments of the immovable property tax and the household waste fee effective after the 1st day of September 1998.Tax Procedure Code Promulgated, SG No. 103/1999 (effective 1.01.2000)TRANSITIONAL AND FINAL PROVISIONS 20. (1) Any judicial proceeding in the matter of a tax case, which has been instituted before the court and which is pending, shall be tried according to the procedure effective prior to the entry of this Code into force.(2) Any pending cases under Article 83 (2) of the State Receivables Collection Act, which is hereby repealed, shall be tried according to the procedure established by Chapter 12a of the Code of Civil Procedure. (3) Until adoption of rules of organization of the tax administration, the number and territorial competence of the tax directorates shall be determined by an order of the Minister of Finance which shall be promulgated in the State Gazette. 21. The provisions of the Code of Civil Procedure shall apply, mutatis mutandis, to any cases unregulated by this Code.Act to Amend and Supplement the Local Taxes and Fees ActPromulgated, SG No. 109/2001 (effective 1.01.2002), amended, SGNo. 45/2002 (effective 1.01.2002) 51. The particulars of the certificate of registration of any road transport vehicle shall be used for assessment of the road tax due by the owner of any transport vehicle referred to in Article 61c herein, which is registered for operation at the date of entry of this Act into force.52. (Amended, SG No. 45/2002) The transport vehicle tax and the road tax for 2002 shall be paid in two equal instalments within the following periods: the first instalment, from the 1st day of June to the 31st day of August, and the second instalment, not later than the 31st day of October. Any taxpayer, who or which prepays the amount of tax due for the whole year by the time limit for payment of the first instalment, shall enjoy a rate rebate of 10 per cent. 54. Upon acquisition or descent of a road transport vehicle prior to the 1st day of May 2002, the tax base shall be the insured value.Act to Amend and Supplement the Tax Procedure CodePromulgated, SG No. 45/2002 (effective 30.04.2002). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93. (1) Any fines imposed under Article 186 of the Road Traffic Act shall be collected according to the procedure established by the Tax Procedure Act.(2) Any delinquent fines under tickets issued prior to the entry of this Act into force according to the procedure established by Article 186 of the Road Traffic Act shall be paid within six months after the entry of this Act into force at the tax subdivision exercising competence over the place of residence, without dispatch of a notice of voluntary compliance. After the lapse of the six-month time limit, the ticket issued shall be considered an effective penalty decree and the fine imposed shall be collected according to the procedure established by the Tax Procedure Code.Tourism Act Promulgated, SG No. 56/2002 (effective 1.10.2002)TRANSITIONAL AND FINAL PROVISIONS 11. 6, in respect of the provisions amending and supplementing the Local Taxes and Fees Act, shall enter into force on the 1st day of January 2003.Act to Amend and Supplement the Local Taxes and Fees ActPromulgated, SG No. 119/2002 (effective 1.01.2003)TRANSITIONAL AND FINAL PROVISIONS 47. The household waste fee shall be collected by the tax administration authorities for a period of two years after the entry of this Act into force. 48. (1) Not later than the 30th day of November 2003, the (competent) Municipal Council shall provide the competent tax administration authorities with information regarding the persons liable to pay a household waste fee and the sums due therefrom. The said information shall be provided in the form of an electronic document and in compliance with the requirements of the Electronic Document and Electronic Signature Act or in a standardized format on an electronic and paper-based data medium, endorsed by the Minister of Finance.(2) In the event of failure to provide the information within the time limit established by Paragraph (1), the tax administration shall collect the fee from the taxable persons referred to in Article 11 (of the Local Taxes and Fees Act) in the amounts as determined by the (competent) Municipal Council and applying a base as effective at the 31st day of December in the last preceding year.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51. Within three months after the entry of this Act into force but not later than the adoption of the municipal budget, the (competent) Municipal Council shall adopt the ordinance referred to in Article 9 (of the Local Taxes and Fees Act). Until adoption of the said ordinance, the determination and administration of the fees shall follow the hitherto effective procedure. 52. This Act shall enter into force on the 1st day of January 2003, with the exception of 11, 12, Item 1 of 13, 14, 15, 16, 17 and 18, which shall enter into force on the 1st day of January 2004, and of Item 2 of 13, which shall enter into force on the 1st day of January 2005.Act to Amend and Supplement the Code of Civil ProcedurePromulgated, SG No. 84/2003FINAL PROVISIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18. This Act shall enter into force as from the day of promulgation in the State Gazette of the European Convention on Recognition and Enforcement of Decisions concerning Custody of Children and on Restoration of Custody of Children of 1980 and of the Hague Convention on the Civil Aspects of International Child Abduction, respectively, with the exception of 2, 3, 4, 5, 8 (in the part regarding Article 423a (1), 12, 15, 16 and 17, whereas 10 shall enter into force on the day of entry into force of the Act to Amend and Supplement the Code of Civil Procedure (State Gazette No. 105/2002).Act to Amend and Supplement the Local Taxes and Fees ActPromulgated, SG No. 112/2003 (effective 1.01.2004),supplemented, SG No. 6/2004 (effective 1.04.2004)TRANSITIONAL AND FINAL PROVISIONS 20. The persons with disabilities, whereof the durably reduced working capacity has been established after attainment of the age required for acquisition of entitlement to contributory service and retirement-age pension or who have attained this age within the period fixed by the decision of the Territorial Medical Expert Board for Working Ability Certification (National Medical Expert Board for Working Ability Certification), shall enjoy the rights thereof under this Act for life regardless of the period fixed in the expert decision. 21. (1) The tax administration authorities shall calculate, update and notify the persons referred to in Article 64 (of the Local Taxes and Fees Act) of the household waste fees owed thereby for 2004 and of the time limits for payment, together with the notices of the immovable property tax, in the cases where the methods for assessment of the said fees have not been changed.(2) The notices referred to in Paragraph (1) shall have the status of a statement ascertaining the receivable under Article 9b (2) (of the Local Taxes and Fees Act) and shall be appealable according to the procedure established by the Administrative Procedure Code. (3) In 2004, the receivables under any effective statements referred to in Paragraph (2) shall be collected by the tax administration according to the procedure established by the Tax Procedure Code. 22. The household waste fee for 2004 shall be paid under the terms and within the time limits established by Article 28 (1) and (2) (of the Local Taxes and Fees Act). 22a. (New, SG No. 6/2004) Any sums overremitted by taxable persons for transport vehicles under the hitherto effective version of Items 2, 3 and 4 of Article 61a (of the Local Taxes and Fees Act) for the period after the 1st day of April 2004 shall be subject to offset or refund by the tax administration according to the procedure established by Article 112 of the Tax Procedure Code.Act to Amend and Supplement the Cadastre and Property Register ActPromulgated, SG No. 36/2004TRANSITIONAL AND FINAL PROVISIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62. Within three months time after the promulgation of this Act in the State Gazette, the entries under the name system shall be performed by the registry offices with the Recording Agency.Act to Amend and Supplement the Local Taxes and Fees ActPromulgated, SG No. 106/3.12.2004 (effective 1.01.2005)TRANSITIONAL AND FINAL PROVISIONS 21. Within three months after the entry of this Act into force, the owners of cargo trucks of legally permissible maximum weight exceeding 20 tonnes shall submit a declaration under Article 54 (1) (of the Local Taxes and Fees Act), stating therein the legally permissible maximum weight, the number of axles and the type of suspension of the transport vehicle. 22. Any enterprises, which are obligated or which have elected to apply the International Financial Reporting Standards as from the 1st day of January 2005, shall submit declarations for the said year under Article 17 (1) (of the Local Taxes and Fees Act) on a change in particulars not later than the 30th day of June 2005. 22. This Act shall enter into force on the 1st day of January 2005, with the exception of 2 and 3 (amending Article 2 and Article 4 (1)), which shall enter into force on the 1st day of January 2006.Lev Re-denomination Act Promulgated, State Gazette No. 20/1999,amended, SG No. 65/1999 (effective 5.07.1999).TRANSITIONAL AND FINAL PROVISIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. (1) (Amended, SG No. 65/1999) Upon the entry of this Act into force, all figures expressed in old lev terms as indicated in the laws which will have entered into force prior to the 5th day of July 1999 shall be replaced by figures expressed in new lev terms, reduced by a factor of 1,000. The replacement of all figures expressed in old lev terms, reduced by a factor of 1,000, shall furthermore apply to all laws passed prior to the 5th day of July 1999 which have entered or will enter into force after the 5th day of July 1999.(2) The authorities, which have adopted or issued any acts of subordinate legislation which will have entered into force prior to the 5th day of July 1999 and which contain figures expressed in lev terms, shall amend the said acts to bring them in conformity with this Act so that the amendments apply as from the date of entry of this Act into force.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. This Act shall enter into force on the 5th day of July 1999.Veterinary Practices Act Promulgated, SG No. 87/2005 (effective 1.05.2006)TRANSITIONAL AND FINAL PROVISIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23. Within three months after the entry of this Act into force, the Council of Ministers shall lay before the National Assembly a Protection of Animals Bill. 24. Within six months after the entry of this Act into force, the Council of Ministers shall lay before the National Assembly a Bill on a National Professional Organization of Veterinary Practitioners and the Procedure for Practising Veterinary Medicine. 25. Any statutory instruments of secondary legislation issued until the entry of this Act into force shall be applied, insofar as the said instruments do not conflict with the said Act, and until the express repeal of the said instruments. 26. (1) Within one year after the entry of this Act into force, the Minister of Agriculture and Forestry shall issue the ordinances on the application thereof.(2) Within six months after the promulgation of this Act in the State Gazette, the Council of Ministers shall adopt the ordinance referred to in Article 109 herein and shall approve the rate schedule referred to in Article 14 (2) herein.Act to Amend and Supplement the Local Taxes and Fees ActPromulgated, SG No. 100/2005, effective 1.01.2006. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .SUPPLEMENTARY PROVISION 17. Throughout the Act, the words "tax authority", "the tax authority" and "the tax authorities" shall be replaced, respectively, by "municipal administration officer", "the municipal administration officer" and "municipal administration officers", and the words "territorial tax directorate" and "the territorial tax directorate" shall be replaced, respectively, by "municipality" and "the municipality".TRANSITIONAL AND FINAL PROVISIONS 18. Not later than the 15th day of February 2006, the owners of trailer tractors and truck tractors shall submit the declaration referred to in Article 54 (1) of the Local Taxes and Fees Act, stating therein the indicators which are relevant to the assessment of the tax: permissible maximum weight of the combination of transport vehicles, number of axles and type of suspension of the tractor. 19. For 2006, the Municipal Council shall determine the household waste fee not later than the 31st day of January 2006. Where no new amount has been determined, the fee shall be collected on the basis of the amount effected at the 31st day of December 2005 20. (1) For 2006, the first instalment referred to in Article 28 (1) and Article 60 (1) of the Local Taxes and Fees Act shall be payable from the 1st day of March to the 30th day of April.(2) Any taxpayer, who or which prepays the amount due for the whole year by the time limit referred to in Paragraph (1), shall enjoy a rate rebate of 5 per cent. 21. For 2006, the authorities of the National Revenue Agency shall calculate the liabilities, shall print and send notices to the persons regarding the immovable property tax and household waste fee due therefrom. The costs of this process shall be for the account of the budget of the Agency. 22. Any tax and enforcement proceedings pending upon the entry of this Act into force shall be completed according to the hitherto effective procedure.TRANSITIONAL AND FINAL PROVISIONSof the Administrative Procedure Code(SG, No. 30/2006, effective 12.07.2006). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77. Everywhere in the Local Taxes and Fees Act (Promulgated, State Gazette No. 117/1997, amended and supplemented, SG No. 71/1998, amended, SG No. 83/1998, amended and supplemented, SG No. 105/1998, SG No. 153/1998, amended, SG No. 103/1999, amended and supplemented, SG No. 34/2000, SG No. 102/2000, SG No. 109/2001, amended, SG No. 28/2002, amended and supplemented, SG No. 45/2002, No. 56/2002, SG No. 119/2002, amended, SG No. 84/2003, amended and supplemented, SG No. 112/2003, SG No. 6/2004, supplemented, SG No. 18/2004, amended, SG No. 36/2004, supplemented, SG No. 70/2004, amended and supplemented, SG No. 106/2004, SG No. 87/2005, amended, SG No. 94/2005, amended and supplemented, SG No. 100/2005, SG No. 103/2005, SG No. 105/2005) the words "the Administrative Procedure Act" shall be replaced by "the Administrative Procedure Code".Act to Amend and Supplement the Local Taxes and Fees Act(Promulgated, SG No. 105/2006, effective 1.01.2007)TRANSITIONAL AND FINAL PROVISIONS........................................................................ 13. For 2007, the competent Municipal Council shall determine a household waste fee not later than the 31st day of January 2007. Where the Municipal Council has failed to pass a resolution whereby the amount of the household waste fee is determined, a fee to the amount of the absolute value applicable to the last preceding year shall be collected from each liable person. 14. (1) For 2007, the first instalment referred to in Article 28 (1) and in Article 60 (1) of the Local Taxes and Fees Act shall be payable from the 1st day of March to the 30th day of April.(2) Any taxpayer, who or which prepays the amount of tax due for the whole year by the time limit referred to in Paragraph (1), shall enjoy a rate rebate of 5 per cent. 15. (1) The authorities of the National Revenue Agency shall calculate the liabilities, shall print and shall send notices to the persons regarding the immovable property tax and household waste fee due for 2007. The costs of this process shall be for the account of the budget of the Agency.Act to Amend and Supplement the Local Taxes and Fees Act(Promulgated, SG No. 110/2007, effective 1.01.2008)TRANSITIONAL AND FINAL PROVISIONS 18. The Municipal Council shall determine the amount of the local taxes not later than the 29th day of February 2008. In case the amount of local taxes has not been determined within this time limit, the minimum amounts of the taxes provided for in the law shall apply for 2008, and in respect of the licence tax, the amounts which were effective for 2007 shall apply for 2008. 19. Until determination of the amount of local taxes for 2008 by the Municipal Council, the tax on acquisition of property under Article 44 (1) and (2) of the Local Taxes and Fees Act and the inheritance tax shall be assessed on the basis of the minimum amounts of the respective taxes as provided for in the law. 20. (1) For 2008, the first and the second instalment under Article 28 (1) of the Local Taxes and Fees Act and, respectively, the first instalment of the tax under Article 60 (1) of the Local Taxes and Fees Act, shall be payable from the 31st day of March to the 30th day of June.(2) Any taxpayer, who or which prepays the amount of tax due for the whole year by the time limits referred to in Paragraph (1), shall enjoy a rate rebate of 5 per cent. 21. The Minister of Finance shall endorse a standard form of the return referred to in Article 61m (1) of the Local Taxes and Fees Act not later than the 29th day of February 2008. 22. For 2008, the persons subject to levy of a licence tax shall submit a return under Article 61m (1) of the Local Taxes and Fees Act not later than the 30th day of April 2008. 23. (1) For 2008, the first and second payments under Article 61o (1) of the Local Taxes and Fees Act shall be remitted on or before the 30th day of April 2008.(2) Any taxpayer, who prepays the amount of tax due for the whole year by the time limits referred to in Paragraph (1), shall enjoy a rate rebate of 5 per cent. 24. This Act shall enter into force on the 1st day of January 2008. Annex 1 (Amended, SG No. 153/1998, effective 1.01.1999; repealed, SG No. 109/2001, effective 1.01.2002) Annex 2 (Amended, SG No. 153/1998, effective 1.01.1999; amended and supplemented, SG No. 109/2001, effective 1.01.2002, amended, SG No. 112/2003, effective 1.01.2004, supplemented SG No. 106/2004, effective 1.01.2005, amended and supplemented No. 100/2005, effective 1.01.2006, amended, SG No. 105/2006, effective 1.01.2007) Immovable Property Tax Assessment Rates I. General Provisions Article 1. The assessed value of immovable property shall be determinedin Bulgarian lev terms and shall represent a sum total of the assessedvalues of the separate items. Article 2. The corporeal immovable or parts thereof shall be valuedignoring the influence of any restrictive covenant or encumbrance thereon. Article 3. (1) (Amended, SG No. 100/2005) The assessed value shall bedetermined by the officers of the municipal administration exercisingcompetence over the situs of the property within two weeks after submissionof a declaration completed in a standard form. (2) (New, SG No. 100/2005) A tax assessment certificate shall be issuedfor the purposes of levy of inheritance tax and tax on acquisition ofproperty, for determination of the stamp duties and notarial fees in theproceedings under the Code of Civil Procedure and in other cases providedfor by the law. (3) (Renumbered from Paragraph (2) and supplemented, SG No. 100/2005) Where no declaration for the purposes of immovable property taxation of theproperty has been submitted or where intervening alterations have occurred inthe particulars as declared, an application shall be submitted, enclosingtherewith a declaration completed in a standard form. Where an issuance of atax assessment certificate for construction in progress is applied for, amemorandum of ascertainment, issued by the municipal (or borough)administration, certifying the stage of completion of the construction work,shall be attached to the application. (4) (Amended, SG No. 112/2003, supplemented, SG No. 106/2004, renumberedfrom Paragraph (3), SG No. 100/2005, amended, SG No. 105/2006) Any taxassessment certificates, issued until the 30th day of June in the relevantcurrent year in pursuance of Article 264 (1) of the Tax And Social-InsuranceProcedure Code, shall be valid until the said date, and any tax assessmentcertificates issued after the said date and until the end of the current yearshall be valid until the end of the said current year. Where the taxliabilities in respect of the immovable have been paid for the full year andthis circumstance has been entered in the certificate, the said certificateshall be valid until the end of the relevant current year regardless of thedate of issue of the said certificate. Any tax assessment certificates onundeveloped agricultural land tracts shall be valid until the end of therelevant current year. II. Tax Valuation of Buildings Article 4. The assessed value of any building or part of buildingsshall be arrived at proceeding from the base tax value per square metre,adjustment coefficients and space using the following formula: AV = BV x Cl x Ci x Cc x Ch x Cw x S where: AV is the assessed value in leva; BV is the base tax value per 1 square metre in leva; Cl is a coefficient of location; Ci is a coefficient of infrastructure; Cc is a coefficient of individual characteristics; Ch is a coefficient of height; Cw is a coefficient of wear and tear S is the space of the building or of part thereof in square metres.Article 5. (1) The base tax value (BV) shall be determined per squaremetre depending on the structure and type of the item.(2) The structures of buildings are indicated in Table 1.Table 1Structure Type CodesCode Structure1 2BN brick nagged timber-framed structureSS semi-solid structureS1 solid structure without reinforced-concrete members or of prefabricated asbestos-cement or other panels (bungalows), solid with partial use of reinforced-concrete membersS2 solid, large-panelS3 solid with bearing brick walls and entirely cast-in-situ or prefabricated reinforced-concrete floor structures, solid or prefabricated skeleton and framed structure, lift-slab structure, large-panel and sliding forms, skeleton-beamless structures, special structure (steel etc.)(3) The base tax value shall be determined in Bulgarian lev terms persquare metre according to Table 2.Table 2Structure Residential buildings Non-residential buildings flats houses 1 2 3 4BN 4.40 3.70 4.80SS 7.50 6.40 8.20S1 11.00 9.40 12.10S2 14.00 12.00 15.40S3 17.00 14.50 18.70(4) Applicable to the following items within condominium projectbuildings, the base tax value shall be determined as a percentage of thebase tax value of flats, as follows:1. maisonettes and studios: 100 per cent;2. garages: 80 per cent.(5) Applicable to the following items located on housing constructiongrounds, the base tax value shall be determined as a percentage of the basetax value of houses, as follows:1. garages: 85 per cent;2. stables, barns, sheds with surrounding walls and other such: 60 percent;3. sheds without surrounding walls: 40 per cent.(6) Applicable to the following non-residential items, the base taxvalue shall be determined as a percentage of the base tax value of non-residential buildings, as follows:1. garages and warehouses: 80 per cent;2. sheds with surrounding walls: 60 per cent;3. sheds without surrounding walls: 40 per cent.(7) Any self-contained items within the common parts of the buildingshall be valued separately.(8) The value of the indivisible interests in the common parts of thebuilding shall be included into the base tax value.Article 6. (1) The coefficient of location (Cl) shall be determinedaccording to Table 3 or 4 and the situs of the building:1. the coefficient of location shall be determined according to Table 3in respect of all buildings with the exception of manufacturing and farmbuildings; where the zones within the nucleated settlement and/or the gradesof the country-house zones have not been established, the coefficients undercolumns 7 and 10 shall apply;Table 3(Amended, SG No. 100/2005,amended, SG No. 105/2006) Grade Zone Withindevelop-mentlimits Outsidedevelop-ment limits Country-house zone I II III IV V Grade 1 Grade 2Sofia 62,4 49,9 42,1 28,1 18,7 17,2 15,6 43,7 25,0Varna 59,3 46,8 37,4 28,1 18,7 17,2 15,6 40,6 21,8Bourgas 45,2 39,0 34,3 23,4 15,6 14,0 12,5 34,3 15,6StaraZagora 42,1 35,9 29,6 22,6 15,6 14,0 12,5 29,6 15,6Plovdiv 39,0 32,8 25,0 21,8 15,6 14,0 12,5 25,0 15,6I, Group 1 32,8 25,0 20,3 15,6 14,0 12,5 10,9 18,7 14,0I, Group 2 21,0 15,0 10,6 7,6 - 6,0 4,6 9,0 7,6II 14,4 8,6 7,2 5,8 - 4,3 3,6 5,8 4,3III 7,9 5,8 4,3 - - 3,6 2,9 4,3 3,6IV, V 4,3 2,9 - - - 2,9 2,2 3,6 2,9VI, VII, VIII 2,2 - - - - 1,6 1,4 1,9 1,7 2. applicable to distributive trade establishments, the coefficient oflocation under Table 3 shall be increased by 40 per cent. "Distributive-trade establishment" means a store, a drugstore, a kiosk, a booth, awholesale warehouse, an automotive fuel filling station, a discotheque, arestaurant, a cafeteria, a patisserie, a public house, a beer hall, atavern, a cafe, a hotel, a motel, and a gambling establishment;3. the coefficient of location shall be determined according to Table 4in respect of manufacturing and farm buildings and of appertaining officebuildings located within the same property (parcel of land) :Table 4(Amended, SG No. 100/2005,amended, SG No. 105/2006) Grade Location favourable Unfavourable manufacturing farm manufacturing FarmSofia 15,6 10,9 11,5 7,2Varna 14,8 10,5 10,9 6,9Bourgas 14,0 9,8 10,4 6,5StaraZagora 13,7 9,6 10,1 6,3Plovdiv 13,3 9,4 9,8 6,0I, Group 1 10,9 7,6 8,1 5,0I, Group 2 9,4 6,6 7,0 4,3II 7,8 5,5 5,8 3,6III 4,7 3,3 3,5 2,2IV, V 3,1 2,2 2,3 1,4VI, VII, VIII 1,6 1,1 1,2 0,7 (a) "manufacturing (industrial manufacturing) works" means works usedfor manufacturing purposes, including generation and distribution of steam,compressed air and gases, generation, transmission and distribution ofelectricity, pumping stations and water-treatment plants, hangars, garages,depots, warehouses and sheds for storage of industrial output; (b) "farm works" means buildings for livestock breeding and poultrybreeding, buildings for crop husbandry, artificial insemination stations,incubator houses, feed preparation rooms, veterinary filters, warehouses andsheds for storage of farm produce, silos and incinerators; (c) "buildings of favourable location" are such that satisfy thefollowing conditions more than 50 per cent: the building is located withinthe settlement limits; in proximity (within 1 km) to the national roadnetwork, railway stations and maritime or river ports; self-containedproduction (industrial, commercial and agricultural) zones. (2) (Amended, SG No. 109/2001, supplemented, SG No. 100/2005) Thecoefficient of location referred to in Paragraph (1) shall be increased by50 per cent applicable to national resorts and the country-house zonestherewith, as well as applicable to country-house zones within 10 km from thecoast line, with the exception of Varna, Bourgas, the Borovets resortcomplex, the Dyuni resort complex, the Elenite resort complex, the SunnyBeach resort complex and the nucleated settlements listed underParagraph (5). (3) (Amended, SG No. 109/2001, supplemented, SG No. 100/2005) Thecoefficient of location referred to in Paragraph (1) shall be increased by20 per cent applicable to resorts of local importance and to thecountry-house zones therewith with the exception of the nucleated settlementlisted under Paragraph (5). (4) (Amended, SG No. 100/2005) The grade of the nucleated settlementshall be determined by the Uniform Classifier of Political and TerritorialUnits (EKATTE), endorsed by Council of Ministers Decision No. 565 of 1999(State Gazette No. 73 of 1999), with the exception of Varna, Bourgas, StaraZagora, Plovdiv and the nucleated settlements listed under Paragraph (5). (5) (New, SG No. 100/2005) The following nucleated settlements shall begrouped in Grade I (One): 1. Group 1: Blagoevgrad, Veliko Turnovo, Kurdjali, Pernik, Pleven,Rousse, Sliven, Haskovo, Shoumen, Bansko, Nessebur, Sozopol; 2. Group 2: Vidin, Vratsa, Gabrovo, Dobrich, Lovech, Montana, Pazardjik,Silistra, Smolyan, Razgrad, Turgovishte, Yambol, Aytos, Karnobat, NovaZagora, Sevlievo, Harmanli, Troyan, Panagyurishte, Peshtera, Asenovgrad,Radomir, Samokov, Kazanluk, Radnevo, Chirpan, Popovo, Kozloduy, Kranevo,Balchik, Byala (Varna Region), Velingrad, Kyustendil, Sandandski, Kiten,Obzor, Pomorie, Primorsko, Sveti Vlas, Hissarya, Tsarevo. (6) (Renumbered from Paragraph (5), SG No. 100/2005) "Country-housezone" means a country-house zone with approved development and regulationplans. (7) (Renumbered from Paragraph (6), SG No. 100/2005) The boundaries ofthe zones within nucleated settlements and the grades of the country-housezones shall be determined by resolution of the Municipal Council. Untilpassage of such resolution, the zones and grades shall apply as establishedby an order of the Municipality Mayor.Article 7. The coefficient of infrastructure (Ci) shall be arrived atby adding to 1 the value of the components under Table 5:Ci = 1 + A + B + C + D + E + FTable 5Component Value of components available not available not available in building, available in neighbourhood1 2 3 4A. Running water supply 0.0 -0.05 -0.03B. Sewer system 0.0 -0.05 -0.03C. Electric power supply 0.0 -0.07 -0.05D. Telephone communications 0.0 -0.02 -0.02E. Central heating and hot-water supply +0.06 0.00 0.00F. Street network 0.0 -0.08 -0.081. "street network" means streets with permanent pavement;2. where the building is not connected to the electric power supply,water-conduit and sewer networks but the relevant infrastructure has beenbuilt in the neighbourhood, these components shall be presumed to have thevalue under column 4. "Neighbourhood" means part of a nucleated settlementdelimited by record street lines (or streets, where there is no approvedregulation plan), even where the facilities are located within the limitsof the streets. The coefficient under column 4 shall furthermore apply inthe valuation of a part of a building, i. e. if the item has no builtinfrastructure but such infrastructure is available within the building.Article 8. (1) The coefficient of individual characteristics (Cc) shallbe arrived at by adding to 1 the following adjustments:Cc = 1 + cc1 + cc2 + cc3where:1. cc1 is an adjustment for height location of items in residential andpredominantly residential buildings:Table 6Item located on Adjustment (cc1) in buildings of six and more stories without elevator in any other buildings non-residential flats non-residential flats1. First floor +0.10 -0.05 +0.10 -0.052. Second to fifth floor -0.03 +0.03 0.00 +0.033. Sixth and upper floor -0.10 -0.03 -0.08 0.00(a) where the items covered under Item 1 are located on the uppermostfloor of a building of two and more stories, the adjustment cc1 shall bereduced by 0.05;(b) applicable to studios, garages, basements and attics, theadjustment cc1 shall be nil;2. cc2: adjustment for physical condition of the item:Table 7Physical condition Value of cc2No interior overhaul for more than 20 years -0.05Bad physical condition from -0.10 to -0.60(a) "bad physical condition" means damage caused by natural disasters,accidents and other such, as a result whereof the physical condition of theitem has deteriorated materially; the value of the adjustment shall beascertained after inspection and drafting of a memorandum describing thedamage;(b) in the rest of the cases, cc2 shall be equal to nil;3. cc3: adjustment for improvements of items:cc3 = A + B + C + D + E + FTable 8Type of improvement Value of cc3 available not availableA. Heating system 0.00 0.04B. Air conditioning system 0.00 0.06C. De luxe or aluminium joinery units 0.00 0.04D. Sound proofing or heat insulation 0.00 0.03E. Roofing 0.00 0.03F. Ornaments and facings 0.00 0.02(a) "heating system" means private heating, under floor and radiantwall heating;(b) "air conditioning system" refers to a system which is durablyaffixed to the building;(c) "roofing" means de luxe improvements: a special roof structure,sheeting and insulations;(d) "ornaments and facings" refers to de luxe interior and exteriorornaments, mosaics, facings, panels etc. Article 9. (1) The coefficient of height (Ch) shall be arrived at inrespect of any distributive-trade establishment, manufacturing or farm work,where the floor height exceeds 4 metres, using the following formula: 0.05 Ch = (H - 3) where H is the actual floor height in metres, accurate to 0.5 metre. (2) The coefficient shall be calculated to three-place accuracy. (3) Applicable to any other item, the coefficient shall have a valueof 1.Article 10. (1) (Amended, SG No. 153/1998) The coefficient of wear andtear (Cw) shall be arrived at using the following formula:Cw = (100 - (NY - 5) x PC)/100where:NY is the number of years which have lapsed between the completion ofthe building and the moment of valuation (integral number);PC is the annual rate of wear and tear of buildings by type ofstructure in percentage terms:Table 9Structure code Annual rate of wear and tear (%)BN 1.0SS 0.8S1 0.7S2 0.6S3 0.5(2) Until the fifth year after completion of the building, thecoefficient shall have the value of 1.(3) The coefficient of wear and tear may not be less than 0. 65applicable to any building or part thereof of brick nogged timber framed orsemi-solid structure, less than 0.75 applicable to S1 and S2, and less than0.85 applicable to S3. Article 11. (1) The space (S) (gross area, gross floor area) of anybuilding or part thereof shall represent the entire space enclosed between:the outer surface of the exterior walls and/or imaginary vertical planesequidistant from the surfaces of the interior walls (applicable to rooms);the outer surface of the exterior wall and/or of the parapet wall(applicable to open space with side closure); the horizontal projection ofthe contour of the roofing structural member (applicable to roofed openspace without side closure); the outer surface of the exterior walls andparapet walls (applicable to a floor of a building, a condominium projectbuilding, or a section of a building). (2) The space of any basement or attic shall be determined as follows: 1. thirty per cent of the gross area thereof, where adjoiningresidential items; 2. sixty per cent of the gross area thereof, where adjoiningnon-residential items. (3) The space as arrived at under Paragraph (2) shall be added to thespace of items which the basements or attics adjoin. (4) Where any basement or attic must be valued as self contained items,the space arrived at according to Paragraph (2) shall qualify as the space. III. Tax Valuation of Construction in Progress Article 12. (1) Any construction in progress shall be valued accordingto completed construction and erection work as percentage of the assessedvalue of the building as designed, as follows: 1. (amended, SG No. 100/2005) up to grade level: 37 per cent; 2. (amended, SG No. 100/2005) up to rough construction work: 63 percent; 3. (repealed, SG No. 100/2005). (2) The assessed value of any self-contained item within an unfinishedbuilding shall be part of the assessed value of the said unfinished buildingcorresponding to the proportion between the gross floor area of the item(including indivisible interests in the common parts of the building) andthe gross floor area of the building as designed. IV. Tax Valuation of Land within Development Limits, Developed Yards and Land outside Development Limits (Excluding Agricultural Land) Article 13. (1) The assessed value of any land tract within developmentlimits, country-house zones, developed yards (developed sites outsidedevelopment limits) and of any land outside development limits (excludingagricultural land) shall be arrived at proceeding from the base tax valueper square metre, adjustment coefficients, surface area, and the tax valueof improvements using the following formula: AV = BV x Cl x Ci x Cz x Cd x SL + VI where: AV is the assessed value in leva; BV is the base tax value per 1 square metre in leva; Cl is a coefficient of location according to Table 3; Ci is a coefficient of infrastructure; Cz is a coefficient of spatial development zone; Cd is a coefficient of building development; SL is the surface area of the land, inclusive of the floor area, insquare metres; VI is the tax value of improvements. (2) The assessed value of aquatic areas, mines, quarries, forest-stockland tracts and other such items shall be determined depending on thelocation and status thereof. Article 14. (1) The base tax value of land shall be BGN 0.80 persquare metre. (2) The base tax value per 1 square metre of any undeveloped sitewithin the development limits of nucleated settlements, as designated by adetailed urban-development plan, shall be 125 per cent of the base tax valuereferred to in Paragraph (1). (3) (Amended, SG No. 100/2005) The base tax value of any land within thedevelopment limits of nucleated settlements of Grade IV, V, VI, VII and VIIIshall be increased as follows: 1. by 10 per cent, where located within 20 km from a nucleatedsettlement of Grade Zero or One; 2. by 5 per cent, where located within 15 km from a nucleated settlementof Grade Two. (4) (Amended, SG No. 109/2001, amended, SG No. 100/2005) The base taxvalue of any land located in a country-house zone within 10 km from the coastline, a national resort or a country-house zone therewith shall be increasedby 50 per cent, with the exception of Varna, Bourgas, the Borovets resortcomplex, the Dyuni resort complex, the Elenite resort complex, the SunnyBeach resort complex, and the nucleated settlements listed underArticle 6 (5) herein. (5) (Amended, SG No. 109/2001, amended, SG No. 100/2005) The base taxvalue of any land in a resort of local importance and in a country-house zonetherewith shall be increased by 20 per cent with the exception of thenucleated settlements listed under Article 6 (5) herein.Article 15. The coefficient of infrastructure (Ci) shall be arrived atby adding to 1 the value of the components under Table 10:Ci = 1 + A + B + C + DTable 10Component Value of components available not available not available in property, available in areaA. Running water supply 0.0 -0.05 -0.03B. Sewer system 0.0 -0.05 -0.03C. Electric power supply 0.0 -0.07 -0.05D. Street network 0.0 -0.08 -0.081. "street network" means streets with permanent pavement;2. where the property is not connected to the electric power supply,water-conduit and sewer networks but the relevant infrastructure has beenbuilt in the area, these components shall be presumed to have the valueunder column 4. "Area" means part of a nucleated settlement (settlement isthe entire territory delimited by the land-use area boundary) bounded bystreets (roads), even where the facilities are located within the limits ofthe streets. Article 16. (1) The coefficient of spatial-development zone (Cz) shallbe determined depending on the assigned use of the ground according to thedetailed urban-development plan, as follows: 1. central zone, Cz = 1.10; 2. manufacturing, predominantly manufacturing and specificallymanufacturing zones, Cz = 0.90, and land occupied by farmsteads, Cz = 0.80; 3. any other zone (residential, public service, parks, green spaces,sports facilities and other such), Cz = 1.00. (2) The coefficient under Paragraph (1) shall have the value of 1applicable to any land outside the development limits of the nucleatedsettlement and applicable to any land within an unzoned nucleatedsettlement. Article 17. The coefficient of building development (Cd) shall bedetermined in the following manner: 1. applicable to a degree of building development not exceeding 40 percent, as well as to undeveloped land, the said coefficient shall have thevalue of 1. The degree of building development shall be arrived at bydividing the floor area by the area of the property (parcel of land); 2. applicable to a degree of building development exceeding 40 percent, the following formula shall be used: (DB-35) Cd = 2 - 1. 01 where DB is the degree of building development; 3. applicable to a degree of building development equal to 100 percent, Cd = 0.10; 4. the coefficient shall be calculated to two-place accuracy. Article 18. (1) The tax value of improvements (VI) shall represent asum total of the assessed values of the individual improvements. (2) The assessed value of each improvement shall be arrived at bymultiplying the quantity thereof by the following values: 1. applicable to de luxe surfacing (excluding ordinary mosaic, concreteand clay and other flagging): BGN 35.00 per square metre; 2. applicable to solid fences (brickwork, concrete, metal, mixed) andretaining walls: BGN 8.00 per square metre (length by height); 3. applicable to permanently paved sports grounds: BGN 15.00 persquare metre; 4. applicable to swimming pools durably affixed to the ground:BGN 23.00 per cubic metre; 5. applicable to parking lots for public use, per square metre: (a) grassland and permanently paved: BGN 8.00; (b) any other: BGN 15.00. V. Tax Valuation of Agricultural LandArticle 19. (1) The assessed value of agricultural land shall bearrived at proceeding from the base tax value per square metre, varying bythe manner of permanent land use and the grade, the coefficient of locationand the space, using the following formula:AV + BV x Cl x SLwhere:AV is the assessed value in leva;BV is the base tax value per 1 square metre in leva;Cl is the coefficient of location;SL is the space of the land in square metres.(2) The assessed value of forests occupying agricultural land shall bedetermined according to the procedure established for agricultural landoccupied by permanent crops.(3) Where forest-stock land has to be valued, the said land shall bevalued as forests occupying agricultural land.(4) (New, SG No. 109/2001) The assessed value of the types of forest-stock land shall be arrived at by means of equalization of the site type ofthe forest-stock land to the grade of agricultural land according to thefollowing table:Grade of agricultural land Forest site type Prevailing characteristics Forest zone, richness and moisture1 2 3 4III 3, 5, 7, 90, 92, 93, 106 Flood plain and riparian, rich I-1, CD-23IV 4, 8, 9, 6, 52, 53, 69 Flood plain and riparian, leaner V 10, 14, 16, 37, 40, 41, 42, 44, 46, 54, 62, 73, 74, 76, 77, 78, 79, 81, 82, 84, 105, 111, 112, 114, 116, 118, 136 Rich mountain CD-23 (21*II, 6*I)VI 1, 2, 11, 12, 13, 17, 18, 20, 22, 24, 25, 27, 29, 30, 31, 34, 35, 38, 43, 45, 47, 51, 55, 56, 58, 59, 60, 63, 64, 65, 67, 68, 70, 71, 72, 80, 83, 85, 86, 87, 94, 95, 97, 98, 99, 100, 101, 102, 104, 107, 109, 110, 113, 115, 117, 119, 121, 124, 125, 127, 133, 135, 140, 141, 142, 144, 145 Rich valley, leaner mountain 10*I I-21 CD-23 (21* I, 4*II) 17*II B-12 3*III B-2 2*III C-23VII 21, 23, 26, 28, 32, 33, 36, 61, 66, 75, 108, 120, 122, 128, 131, 138, 139, 143, 146, 147 Leaner valley 5*AB-1, 2, BC-12, (8*I, 7*II)VIII 15, 19, 48, 50, 57, 89, 96, 137 Dry non-lean, certain high-mountain 2*Ib-12, 2*IC-1 3*III-2 BC-3IX 49, 88, 126, 129, 148, 149, 150 Dry and lean, certain high-mountain 4* A-1, 1*I, II B-12, 2*III BC-23X 130, 103, 123, 132, 134 Very dry and lean A-01 (2* AB-1, 3* A-01)where:the Roman numerals indicate forest zone;* - forest site;A - very lean land; B - lean; C - medium rich; D - rich;The numerals: 0 - very dry; 1 - dry; 2 - fresh, and 3 - wet.Article 20. The base tax value (BV) shall be determined in Bulgarianlev terms per square metre of agricultural land depending on landclassification and the manner of permanent use:1. where not under irrigation according to the following table:Table 11Manner of permanent use Base tax value by grade (BGN per square metre) I II III IV V VI VII VIII IX IX1 2 3 4 5 6 7 8 9 10 11Permanent crops 0.225 0.204 0.180 0.156 0.120 0.098 0.060 0.042 0.026 0.009Fields 0.125 0.112 0.098 0.086 0.065 0.054 0.033 0.023 0.015 0.006Lawns 0.081 0.074 0.065 0.056 0.044 0.036 0.021 0.015 0.009 0.003Pastures 0.048 0.044 0.039 0.033 0.026 0.021 0.012 0.009 0.005 0.0022. where under irrigation: the base tax value under Item 1, multipliedby 1.20.Article 21. The base tax value of agricultural land shall be adjustedby a coefficient of location (Cl), which shall be arrived at by adding to 1the following adjustments (Cl = 1 + c1 + c2 + c3):1. an adjustment for location in respect of the development limits ofthe nucleated settlement, in the land-use area whereof the property islocated (c1):Table 12Distance from development limits of settlement (km) c1abutting +0.25under 1 +0.15from 1 to 3 0.00from 3 to 6 -0.10from 6 to 8 -0.15over 8 -0.202. adjustment for location in respect of the permanently paved roadnetwork (c2):Table 13Distance from road network (km) c2abutting on road network +0.10under 1 0.00over 1 -0.103. (amended, SG No. 100/2005) adjustment for the grade of the nucleatedsettlement, in the land-use area whereof the property is located (c3):Table 14(Amended, SG No. 100/2005) Grade of settlement in land-use area whereof property is located c3Zero +0.30I +0.20II +0.15III +0.10IV and V 0.00VI, VII and VII -0.10 Article 22. (Amended, SG No. 153/1998) The assessed value of anybuilding right (AVBR) shall be determined in Bulgarian lev terms, using thefollowing formula: AVBR = GFA x 0.25 x BV x Cl x Ci x Cp where: GFA is the gross floor area of the building in square metres; BV is the base tax value depending on the structure and assigned use ofthe building. Should the structure be unknown, S2 shall be presumed. Theprevailing assigned use (over 50 per cent) shall apply; Cl is a coefficient of location depending on assigned use; Ci is a coefficient of infrastructure, determined according to SectionIV; upon creation of a building right affecting agricultural land, Ci shallbe determined in an identical manner; Cp is a coefficient accounting for the period wherefor the right hasbeen created, displayed to the third decimal place. Cp = (1 - 1.05-n) where "n" is the number of years wherefore the righthas been created. Where n is greater than 100 years, Cp shall be presumed tohave the value of 1. VII. Tax Valuation of Right of Use Article 23. (1) The assessed value of any real right of use (AVRU)shall be determined in Bulgarian lev terms using the following formula: AVRU = AV x Cp where: AV is the assessed value in lev terms of the property or the partthereof affected by the right as created; Cp is a coefficient accounting for the period wherefore the right hasbeen created, displayed to the third decimal place. -n Cp = (1 - 1.05 ) where "n" is the number of years wherefore the righthas been created. The coefficient may not be greater than 0.900. (2) Where the right of use is created for an indeterminate duration,the number of years wherefor the said right has been created shall bearrived at by subtracting the age of the user from 70 or, where there aremultiple users, the age of the youngest user. Where the user is older than70, the number of years shall be presumed to be 5. (3) (New, SG No. 100/2005) Where a right of use of an enterprise iscreated for an indeterminate duration, the coefficient accounting for theperiod shall be 0.900. (4) (Renumbered from Paragraph (3), SG No. 100/2005) Where a currentvaluation of the right of use is required, the number of years "n" shall bedetermined as the residual period reckoned at the date wherefore the valuationis required. Article 24. The assessed value of a right of ownership, where a realright of use has been created, shall be reduced by the assessed value of theright of use for the residual period, reckoned at the date wherefore thevaluation is required. Annex 3 to Article 55 (1) (New, SG No. 109/2001, effective 1.01.2002, repealed, SG No. 45/2002, effective 1.01.2002) Annex 4 to Section IV of Chapter Two (New, SG No. 110/2007, effective 1.01.2008)Types of Licence Activities and Annual Amount of Tax1. Collective tourist accommodation establishments or supplementary tourist accommodations of not more than 20 rooms: the tax shall be assessed per room according to the location of the establishment: one- and two-star from BGN 25 to BGN 2502. Mass-catering and entertainment establishments: the tax shall be assessed per customer place, including such in the open air, or per establishment, according to the location of the establishment:(a) restaurants: one- and two-star from BGN 1 to BGN 35 three-star from BGN 6 to BGN 60(b) fast-food outlets: one- and two-star from BGN 1 to BGN 20 three-star from BGN 3 to BGN 35(c) drinking establishments, except such listed under Littera (f): one- and two-star from BGN 1 to BGN 20 three-star from BGN 2 to BGN 35(d) cafes and patisseries: one- and two-star from BGN 1 to BGN 20 three-star from BGN 3 to BGN 50(e) bars: - lounge bars: two-star from BGN 3 to BGN 50 three-star from BGN 10 to BGN 84- night clubs: two-star from BGN 5 to BGN 63 three-star from BGN 20 to BGN 98(f) refreshment bars, caravans and kiosks (per establishment): from BGN 75 to BGN 5003. Retail trade on a net selling space of the establishment not exceeding 100 square meters: the tax shall be assessed per square meter of net selling space according to the location of the establishment: from BGN 2 to BGN 204. Paid parking facilities: the tax shall be assessed per parking space according to the location of the establishment: BGN per parking space from BGN 5 to BGN 2005. Carpenter services: the tax shall be assessed according to the location of the establishment: from BGN 50 to BGN 7806. Tailor, currier, furrier and knitting services: the tax shall be assessed according to the location of the establishment: from BGN 40 to BGN 8407. Trade in, manufacture of, and services involving articles of precious metals: the tax shall be assessed according to the location of the establishment: from BGN 500 to BGN 2,5008. Cobbler, hatter and milliner services: the tax shall be assessed according to the location of the establishment: from BGN 40 to BGN 1209. Metalworker services: the tax shall be assessed according to the location of the establishment: from BGN 100 to BGN 91010. Hairdresser and barber services, pet beauty parlour services: the tax shall be assessed per workplace according to the location of the establishment: from BGN 60 to BGN 84011. Typing and/or photocopying services: the tax shall be assessed per device according to the location of the establishment: from BGN 180 to BGN 59412. Cosmetic and tattooing services: the tax shall be assessed per workplace according to the location of the establishment: from BGN 130 to BGN 90013. Manicure and chiropody: the tax shall be assessed per workplace according to the location of the establishment: from BGN 60 to BGN 42014. Watchmaker services: the tax shall be assessed according to the location of the establishment: from BGN 60 to BGN 39015. Upholsterer services: the tax shall be assessed according to the location of the establishment: from BGN 180 to BGN 52016. Car washes; tyre repairs, regulating and balancing: the tax shall be assessed according to the location of the establishment: from BGN 190 to BGN 1,20017. Car repair, panel-beating, car painting and other services for the technical maintenance and repair of motor vehicles: the tax shall be assessed according to the location of the establishment: from BGN 280 to BGN 1,90018. Repair of wiring and plumbing systems: the tax shall be assessed according to the location of the establishment: from BGN 100 to BGN 56019. Glazier services: the tax shall be assessed according to the location of the establishment: from BGN 100 to BGN 70020. Maintenance and repair of household appliances, devices, audio-visual equipment, air conditioners, repair of musical instruments: the tax shall be assessed according to the location of the establishment: from BGN 47 to BGN 98021. Video cassette rental: the tax shall be assessed according to the location of the establishment: from BGN 300 to BGN 3,25022. Female and male escorts: the tax shall be assessed according to the location of the establishment: from BGN 3,000 to BGN 6,44023. Masseuses and masseurs: the tax shall be assessed according to the location of the establishment: from BGN 500 to BGN 1,68024. Clairvoyants, psychics and bio energy therapists: the tax shall be assessed according to the location of the establishment: from BGN 2,000 to BGN 5,60025. Photographic services: the tax shall be assessed according to the location of the establishment: From BGN 200 to BGN 1,04026. Intermediation services for the purchase, sale, exchange and lease of real property: the tax shall be assessed according to the location of the establishment: from BGN 100 to BGN 3,50027. Leased public lavatories: the tax shall be assessed according to the location of the establishment: from BGN 150 to BGN 42028. Locksmith services, repair of locks, repair of handbags, book-binding services, repair of sewing machines: the tax shall be assessed according to the location of the establishment: from BGN 50 to BGN 19829. Repair of umbrellas, repair and recharging of lighters, repair of bicycles, chimney sweeping services: the tax shall be assessed according to the location of the establishment: from BGN 50 to BGN 9830. Pawn brokers: from BGN 3,000 to BGN 28,00031. Retail of newspapers, magazines, Bulgarian and translated literature: the tax shall be assessed according to the location of the establishment: from BGN 30 to BGN 26032. Repair of computers, computer and other electronic office automation (copiers, facsimile machines, printers, etc.): the tax shall be assessed according to the location of the establishment: from BGN 300 to BGN 1,30033. Amusement or sports games: the tax shall be assessed per number of devices according to the location of the establishment:(a) amusement arcade machines and other games operated by coins or tokens: from BGN 100 to BGN 198(b) pinball, table tennis, darts, paintball and speedball, mini-basketball, bridge, backgammon: from BGN 8 to BGN 26(c) bowling and skittles, per alley, and billiards, per table: from BGN 40 to BGN 14034. Fitness centres and gyms: the tax shall be assessed according to the location of the establishment: from BGN 1.50 to BGN 4 per sq m and from BGN 300 to BGN 840 per fitness apparatus35. Dry cleaning, laundry and pressing: the tax shall be assessed per piece of equipment according to the location of the establishment: from BGN 133 to BGN 44036. Grain milling services: (a) flour mills: from BGN 18 to BGN 36 per running centimetre of the length of the milling line; (b) stationary animal-feed mills: from BGN 600 to BGN 1,20037. Vacation services: (a) pleasure boats from BGN 750 to BGN 1,500 per piece; (b) rowing boats from BGN 450 to BGN 900 per piece; (c) yachts from BGN 900 to BGN 1,800 per piece; (d) jetski from BGN 900 to BGN 1,800 per piece; (e) jeep-drawn mini-trains from BGN 30 to BGN 60 per seat; (f) horse-drawn cabs from BGN 75 to BGN 150 per seat; (g) water ski, water gliders and surfboards, paddle boats, including inflatable ones, water amusement games from BGN 150 to BGN 300 per piece of equipment; (h) snow ski (including skiing gear), ice skates, snowboards, sledges from BGN 150 to BGN 300 per piece of equipment; (i) merry-go-rounds, Ferris wheels, bumper cars, bicycles and rickshaws from BGN 150 to BGN 300 per seat; (j) toddler battery-propelled cars and motorbikes from BGN 150 to BGN 300 per piece; (k) shooting galleries from BGN 300 to BGN 600 per shooting gallery38. Motor vehicle driving instruction: the tax shall be assessed per motor vehicle at the following amounts: (a) mopeds, motorcycles from BGN 200 to BGN 475 (b) other motor vehicles from BGN 400 to BGN 95039. Roadside assistance services for road transport vehicles: from BGN 2,000 to BGN 4,000 per motor vehicle.40. Services involving the use of agricultural and forestry machinery: the tax shall be assessed per piece of machinery as follows: (a) combine harvester: from BGN 330 to BGN 660; (b) tractors, tractor trailers, self-propelled chassis and other self-propelled or self-powered machines: from BGN 110 to BGN 220; (c) attachments, mounted and stationary machines: from BGN 11 to BGN 22. - For more information visit www.solicitorbulgaria.com id: 337 Mon, 04 Aug 2008 06:49:29 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-local-taxes-and-fees-act-part-2 http://web.solicitorbulgaria.com/index.php/bulgarian-local-taxes-and-fees-act-part-2 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/LOCAL_TAXES_AND_FEES_ACT1.JPG EUR http://web.solicitorbulgaria.com/index.php/bulgarian-local-taxes-and-fees-act-part-2 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Chapter One(Amended, SG No. 103/1999, amended and supplemented, SG No. 109/2001,No. 45/2002, No. 56/2002, amended, SG No. 119/2002)GENERAL PROVISIONSSection ILocal TaxesArticle 1. (1) (Redesignated from Article 1, SG No. 110/2007) The following local taxes shall accrue to the municipal budgets:1. immovable property tax;2. inheritance tax;3. gift tax;4. tax on onerous acquisition of property;5. transport vehicle tax;6. (repealed, SG No. 106/2004, new, SG No. 110/2007) licence tax;7. any other local taxes as determined by statute.(2) (New, SG No. 110/2007) The Municipal Council shall determine by ordinance the amount of the taxes covered under Paragraph (1) under the terms, according to the procedure and within the range established by this Act.(3) (New, SG No. 110/2007) Where the Municipal Council has failed to determine the amount of the local taxes for the current year until the end of the last preceding year, the local taxes shall be collected on the basis of the amount effective at… For more information visit http://www.solicitorbulgaria.com id: 338 Chapter One(Amended, SG No. 103/1999, amended and supplemented, SG No. 109/2001,No. 45/2002, No. 56/2002, amended, SG No. 119/2002)GENERAL PROVISIONSSection ILocal TaxesArticle 1. (1) (Redesignated from Article 1, SG No. 110/2007) The following local taxes shall accrue to the municipal budgets:1. immovable property tax;2. inheritance tax;3. gift tax;4. tax on onerous acquisition of property;5. transport vehicle tax;6. (repealed, SG No. 106/2004, new, SG No. 110/2007) licence tax;7. any other local taxes as determined by statute.(2) (New, SG No. 110/2007) The Municipal Council shall determine by ordinance the amount of the taxes covered under Paragraph (1) under the terms, according to the procedure and within the range established by this Act.(3) (New, SG No. 110/2007) Where the Municipal Council has failed to determine the amount of the local taxes for the current year until the end of the last preceding year, the local taxes shall be collected on the basis of the amount effective at the 31st day of December of the last preceding year.(4) (New, SG No. 110/2007) Changes in the amount and manner of determination of the local taxes, as adopted by the Municipal Council, shall be inadmissible in the course of the year.Article 2. (Amended, SG No. 106/2004, effective 1.01.2006) Local taxes shall be paid in cash at the cash departments of the municipal administration, or cashlessly, by means of crediting the relevant bank account.Article 3. Tax returns under this Act shall be submitted by the taxable persons or the legal representatives thereof in a standard form endorsed by the Minister of Finance, which shall be promulgated in the State Gazette.Article 4. (1) (Amended, SG No. 106/2004, effective 1.01.2006, SG No. 100/2005, SG No. 105/2005, supplemented, SG No. 105/2006) Local taxes shall be assessed, secured and collected by municipal administration officers according to the procedure established by the Tax and Social Insurance Procedure Code. The written statements related to local taxes shall be appealed according to the same procedure.(2) (Amended, SG No. 105/2005) Any delinquent taxes covered under this Act shall be collected with interest under the Interest on Taxes, Fees and Other State Receivables Act according to the procedure established by the Tax and Social Insurance Procedure Code. (3) (New, SG No. 100/2005, amended, SG No. 105/2005) In the proceedings referred to in Paragraph (1), the municipal administration officers shall have the rights and obligations of revenue authorities.(4) (New, SG No. 100/2005) The officers referred to in Paragraph (3) shall be designated by an order of the municipality mayor.(5) (New, SG No. 100/2005, amended, SG No. 105/2005) The municipality mayor shall exercise the powers of a deciding authority under Article 152 (2) of the Tax and Social Insurance Procedure Code , and the head of the local revenue unit in the relevant municipality shall exercise the powers of a territorial director of the National Revenue Agency.(6) (New, SG No. 100/2005, amended, SG No. 105/2005) The Executive Director of the National Revenue Agency shall issue methodological directions on the application of this Act.(7) (New, SG No. 105/2005) The Municipal Council shall be the authority competent to defer and reschedule local taxes in the cases referred to in Item 2 of Article 184 (1) of the Tax and Social Insurance Procedure Code.Article 5. (Amended, SG No. 100/2005, repealed, SG No. 110/2007). Section IILocal FeesArticle 6. (1) Municipalities shall collect the following local fees:(a) for disposal of household waste;(b) for use of retail markets, wholesale markets, fairs, sidewalks, squares and street roadways;(c) (Supplemented, SG No. 70/2004) for attendance at creches, provision of cooked take-away meals from baby-food kitchens, attendance at kindergartens, residence at public care homes, camps, dormitories, and use of other forms of municipal social services;(d) for quarrying;(e) for technical services;(f) for administrative services;(g) for lease of grave plots;(h) visitor fee;(i) (new, SG No. 87/2005) for dog ownership;(j) (redesignated from Letter (i), SG No. 87/2005) other local fees as determined by statute.(2) The (competent) Municipal Council shall set a price for any service provided or right granted by the municipality with the exception of such covered under Paragraph (1).Article 7. (1) Local fees shall be determined proceeding from the necessary logistical and administrative expenses incurred on provision of the service.(2) Fees shall be simple or proportional, and shall be payable by a cashless method, in cash, or in municipal revenue stamps within the time limits and according to the procedure established by this Act.Article 8. (1) The (competent) Municipal Council shall determine the amount of the fees in conformity with the following principles:1. recovery of the full amount of expenses incurred by the municipality on provision of the service;2. creation of conditions for expansion of the services provided and for improvement of the quality thereof;3. achievement of greater fairness in the determination and payment of local fees.(2) A separate fee shall be determined for each distinguishable activity into which a service can be disaggregated.(3) The amount of the fee may not recover the full amount of expenses incurred by the municipality for provision of a specific service should the (competent) Municipal Council resolve that this a protection of the public interest so dictates.(4) In the cases where the amount of the fees does not recover the full amount of expenses incurred for provision of the service, the difference between the said expenses and the amount of the fees shall be for the account of municipal revenues.(5) By the ordinance referred to in Article 9 herein, the (competent) Municipal Council shall establish the procedure according to which the persons who do not use a service during the relevant year or during a specific period of the said year shall be exempt from payment of the said fee.(6) (Amended, SG No. 110/2007) The (competent) Municipal Council may exempt certain categories of persons from full or partial payment of specific types of fees according to a procedure established by the ordinance referred to in Article 9 herein.Article 9. The (competent) Municipal Council shall adopt an ordinance on the determination and administration of local fees and prices for services.Article 9a. (1) Local fees shall be collected by the municipal administration.(2) (Amended, SG No. 106/2004, repealed, SG No. 100/2005).(3) Revenues from local fees shall accrue to the municipal budget.(4) (New, SG No. 105/2006) The competent Mayor shall authorize a rescheduling or deferral of liabilities for local fees to an amount not exceeding BGN 30,000 and subject to the condition that a rescheduling or deferral is requested within one year after the date of grant of the authorization.(5) (New, SG No. 105/2006) The competent Municipal Council shall authorize a rescheduling or deferral of liabilities for local fees exceeding BGN 30,000 or for a period longer than one year.Article 9b. (1) (Amended, SG No. 105/2006) Any delinquent fees shall be collected with interest under the Interest on Taxes, Fees and Other Such State Receivables Act according to the procedure established by the Tax and Social-Insurance Procedure Code .(2) Fees receivable shall be ascertained by a written statement drawn up by the (competent) Municipality Mayor according to the procedure established by the Administrative Procedure Code. (3) Any written statement ascertaining the receivable shall be appealable according to the procedure established by the Administrative Procedure Code. (4) (Amended, SG No. 84/2003, repealed, SG No. 105/2005).Article 9c. Where a municipal authority has been entrusted with the performance of an act or with the issuance of a document for which a stamp duty is charged, the fee charged shall accrue to revenue of the municipal budget.Chapter TwoLOCAL TAXESSection IImmovable Property TaxArticle 10. (1) (Amended, SG No. 106/2004) Immovable property tax shall be levied on the buildings and lots located within the territory of Bulgaria, which are situate within the development limits of the nucleated settlements and the dispersed settlements, as well as the lots outside such development limits, which, according to a detailed plan, have the intended purpose under Item 1 of Article 8 of the Spatial Development Act. (2) (New, SG No. 106/2004) No tax shall be levied on any lots occupied by streets, roads of the national and municipal road networks and the railway network, up to the delimiting building lines. No tax shall furthermore be levied on any lots occupied by water bodies constituting state and municipal property.(3) (Supplemented, SG No. 109/2001, renumbered from Paragraph 2, SG No. 106/2004)) No tax shall be levied on agricultural land tracts and forests, with the exception of developed land in respect of the actually developed surface area and the adjoining ground.(4) (New, SG No. 100/2005, amended, SG No. 105/2006) No tax shall be levied on any corporeal immovable whereof the assessed value does not exceed BGN 1,680.Article 11. (1) The taxable persons shall be the owners of taxable corporeal immovables.(2) (Supplemented, SG No. 153/1998, amended, SG No. 106/2004) The owner of a building constructed on a state-owned or municipal-owned lot shall furthermore be taxable in respect of the said lot.(3) (Supplemented, SG No. 109/2001, amended, SG No. 36/2006) Should a real right of use have been created, the user shall be the taxable person.(4) (New, SG No. 36/2006) In cases of concession, the tax liable person shall be the concessionaire.Article 12. (1) Where the right of ownership or the limited real right to a taxable corporeal immovable vests in several persons, liability for tax shall apply to the said persons in proportion to the parts thereto appertaining.(2) Any one of the co-owners of the property, and any one of the co- holders of the limited real right, as the case may be, may pay the tax on the entire property for the account of the rest.Article 13. Tax shall be payable irrespective of whether the corporeal immovables are used or not.Article 14. (Amended, SG No. 103/1999) (1) The owner of, or the holder of the limited real right to, any newly constructed or otherwise acquired property, as the case may be, shall notify the municipality exercising competence over the status of the property within two months after the said construction or acquisition by submission of a tax return for annual immovable property taxation.(2) Upon alteration in any circumstance relevant to the assessment of the tax, the taxable persons shall notify the municipality according to the procedure and within the time limit established under Paragraph (1).(3) (New, SG No. 102/2000) Upon acquisition of a property by succession, the tax return referred to in Paragraph (1) shall be submitted within the time limit referred to in Article 32 herein.(4) (New, SG No. 119/2002) The tax return submitted by one co owner or user, as the case may be, shall benefit the rest of the co-owners or users.Article 15. (1) In respect of any newly constructed building or part of a building, tax shall be due as from the commencement of the month next succeeding the month wherein the said building or part thereof was completed or when use thereof began.(2) Upon transfer of a property, the transferee shall be liable for tax as from the commencement of the month next succeeding the month wherein the alteration in ownership or use occurred, unless the tax has been paid by the transferor.Article 16. (1) (Amended, SG No. 103/1999, supplemented, SG No. 102/2000) Upon partial or complete destruction of a building, as well as upon change of the status of a corporeal immovable from non-taxable to taxable and vice versa, the taxable persons shall notify the municipality exercising competence over the status of the property according to the procedure and within the time limit established by Article 14 (1) herein.(2) In the instances under Paragraph (1), the liability for payment of the tax shall terminate or arise, as the case may be, as from the commencement of the month next succeeding the month wherein the change occurred.Article 17. (1) (Supplemented, SG No. 153/1998, amended, SG No. 103/1999, redesignated from Article 17 and amended, SG No. 102/2000, amended and supplemented, SG No. 109/2001, amended, SG No. 100/2005) Within two months after acquisition of any non-residential property or after creation of a right to use, as the case may be, any enterprise shall submit a declaration to the municipal administration exercising competence over the status of the said property, stating therein the type of property, the exact location thereof, the book value thereof and any other circumstances as shall be relevant to the assessment of the tax, as well as the amount of the tax due. Upon any change in the particulars as declared, a declaration shall be submitted within two months after the date of the said change.(2) (New, SG No. 102/2000) In respect of any residential property, the persons referred to in Paragraph (1) shall submit a tax return according to the procedure and within the time limits established by Article 14 herein.(3) (New, SG No. 102/2000, amended, SG No. 119/2002) In respect of any residential property referred to in Article 11 (2) herein, enterprises shall submit a declaration according to the procedure and within the time limits established by Article 14 (1) herein and, after communication of the assessed value by the municipal administration officer, shall state the said assessed value in the declaration referred to in Paragraph (1).(4) (New, SG No. 102/2000) The tax shall be paid within the time limits established by Article 28 herein at the municipality exercising competence over the situs of the property according to the particulars as declared.Article 18. (1) (Redesignated from Article 18, SG No. 153/1998, amended, SG No. 34/2000) The municipal administration officer shall verify the returns as submitted. The said authority may require additional information on the taxable property, to compare the particulars of the return with the books of account, plans, drawings and documents of title or use of the property and, when necessary, through surveying of the said property by the technical authorities.(2) (New, SG No. 153/1998, amended, SG No. 34/2000) When requested by the municipal administration officers to provide any data and evidentiary material of property status (copies of maps and plans, computer models, registers and other such), the competent public financed services shall be obliged to provide anysuch data and material gratuitously within seven days.(3) (New, SG No. 34/2000) Any data of the cadastre, coming under Paragraph (2), shall be provided under the terms and according to the procedure established by the Cadastre and Property Register Act. Article 19. (1) The tax shall be assessed on the basis of the assessed value of the corporeal immovables covered under Article 10 (1) herein at the 1st day of January in the year wherefor the tax is due.(2) (Repealed, SG No. 153/1998).(3) (New, SG No. 119/2002, supplemented, SG No. 112/2003, amended, SG. No. 100/2005) Upon any modification of the assessed value of a property during the year, the tax shall be assessed on the basis of the new assessed value as from the month next succeeding the month of the modification. In the case of change by the Municipal Councils of the boundaries of the zones within the nucleated settlements and the categories of the country-house zones or of the nucleated settlements, the tax shall be assessed on the basis of the new assessed value as from the 1st day of January in the next succeeding year.Article 20. (Amended, SG No. 109/2001) The assessed value of any corporeal immovables appertaining to individuals shall be determined by a municipal administration officer at rates according to Annex 2 hereto depending on the type of property, the location, space, structure and depreciation, and shall be communicated to the taxable persons.Article 21. (1) (Supplemented, SG No. 153/1998, amended, SG No. 102/2000, SG No. 109/2001) The assessed value of any corporeal immovable appertaining to enterprises shall be the book value of the said property, and the assessed value of any residential property shall be the assessed value arrived at according to Annex 2 hereto.(2) (New, SG No. 102/2000, amended, SG No. 109/2001) The assessed value of any corporeal immovable in respect whereof a right to use has been created in favour of an enterprise shall be the book value of the said immovable as shown in the balance sheet of the owner or the assessed value arrived at according to Annex 2 hereto and, in respect of residential property, the assessed value arrived at according to Annex 2 hereto.(3) (New, SG No. 109/2001) The assessed value of any property referred to in Article 11 (2) herein, whereon any buildings of enterprises have been constructed, shall be arrived at rates according to Annex 2 hereto.(4) (Renumbered from Paragraph (2), SG No. 102/2000, renumbered from Paragraph (3), SG No. 109 of 2001) Should accounting data be unavailable, the assessed value shall be determined by a municipal administration officer for the account of the taxable person. In such cases, the municipal administration officer may resort to the services of experts.Article 22. (Amended, SG No. 110/2007) By the ordinance referred to in Article 1 (2) herein, the Municipal Council shall determine the amount of the tax within a range of 1.5 to 3 per mile of the assessed value of the corporeal immovable.Article 23. (Amended, SG No. 103/1999, SG No. 109/2001)The amount of tax referred to in Article 14 (1) and (3) herein and in Article 17 (2) herein shall be determined by the municipal administration officer exercising competence over the situs of the corporeal immovable and shall be communicated to the taxable person or to a legal representative thereof.Article 24. (1) The following shall be exempt from (immovable property) tax:1. (supplemented, SG No. 153/1998) the municipalities, in respect of any immovables constituting public municipal property;2. (supplemented, SG No. 153/1998) the State, in respect of any immovables constituting public state property, except where the immovable has been allocated for use to another person and said person is not exempt from tax;3. (repealed, SG No. 153/1998);4. the community centres (chitalishte);5. the buildings owned by foreign states which house diplomatic missions and consular posts, on a basis of reciprocity;6. (repealed, SG No. 153/1998);7. the buildings appertaining to the Bulgarian Red Cross;8. (amended, SG No. 153/1998, SG No. 119/2002) the buildings of the higher schools and the academies, used for teaching and scientific research;9. the houses of worship appertaining to lawfully registered religious denominations in Bulgaria;10. the parks, the sports grounds, the playgrounds and other such immovables for public use;11. (repealed, SG No. 153/1998);11a. (new, SG No. 109/2001) the buildings designated as cultural landmarks, where not used for a for-profit purpose;12. the museums, the galleries, and the libraries;13. (amended, SG No. 119/2002) the immovables which are directly used for the operation of public transport;14. the farm buildings appertaining to agricultural producers and used for agricultural activities;15. the temporary buildings servicing the construction of a new building or facility, until completion and commissioning of the said new building or facility;16. (supplemented, SG No. 153/1998, repealed, SG No. 110/2007); 17. (new, SG No. 153/1998) the corporeal immovables whereof the ownership has been restituted by law and which are unusable, for a period of five years. The tax on any such immovables, which are used by the State, the municipalities, the public organizations of by commercial corporations wherein they hold a participating interest, including privatized commercial corporations, shall be due from the users;18. (new, SG No. 18/2004, amended, SG No. 55/2007) the buildings which have been commissioned prior to 1 January 2005 and which have received a Category A certificate, issued according to the procedure established by the Energy Efficiency Act, as follows:(a) for a period of 7 years reckoned from the year following the year of issue of the certificate;(b) for a period of 10 years reckoned from the year following the year of issue of the certificate, if they apply also measures for utilization of renewable energy sources for production of energy for satisfying the needs of the building;19. (new, SG No. 18/2004, amended, SG No. 55/2007) the buildings which have been commissioned prior to 1 January 2005 and which have received a Category B certificate, issued according to the procedure established by the Energy Efficiency Act, as follows:(a) for a period of 3 years reckoned from the year following the year of issue of the certificate;(b) for a period of 5 years reckoned from the year following the year of issue of the certificate, if they apply also measures for utilization of renewable energy sources for production of energy for satisfying the needs of the building.(2) (Amended, SG No. 153/1998) Exemption under Items 1, 2, 4, 7, 8 and 9 of Paragraph (1) shall apply subject to the condition that the immovables are not used for a for-profit purpose unrelated to the core activity thereof.(3) (New, SG No. 153/1998, repealed, SG No. 109/2001).(4) (Renumbered from Paragraph (3) and amended, SG No. 153/1998, amended, SG No. 109 of 2001) Paragraphs (1) and (2) shall furthermore apply accordingly to any parts of properties.(5) (New, SG No. 112/2003) In respect of any immovables referred to in Item 17 of Paragraph (17) the right of ownership whereof was restored prior to the 1st day of January 1999, the five-year period shall begin to run from the said date, and in respect of any such immovables the right of ownership whereof was restored after the said date, the said period shall begin to run from the month next succeeding the month of restoration.Article 25. (1) A rate rebate of 50 per cent shall apply to the tax due on any immovable used as a main residence.(2) (Amended, SG No. 119/2002) In respect of any immovable used as a main residence by a person who has lost between 50 and 100 per cent of the working capacity thereof, a rate rebate of 75 per cent shall apply to the tax due.Article 26(Amended, SG No. 153/1998, SG No. 103/1999, repealed, SG No. 102/2000).Article 27. Any eligible person shall claim the rights thereof to exemption from tax or to enjoyment of a rate rebate by means of a tax relief submitted within the time limit under Article 14 (1) herein.Article 28. (1) (Supplemented, SG No. 153/1998, amended, SG No. 102/2000) Immovable property tax shall be payable in four equal instalments within the following periods: from the 1st day of February to the 31st day of March, not later than the 30th day of June, not later than the 30th day of September, and not later than the 30th day of November in the year wherefor the tax is due.(2) Any taxpayer, who or which prepays the amount of tax due for the whole year by the time limit for payment of the first instalment, shall enjoy a rate rebate of 5 per cent.(3) (New, SG No. 100/2005) Upon transfer of a corporeal immovable or upon creation of rights in rem to a corporeal immovable, the tax due until the said transfer or creation, including for the month of the transfer or creation, shall be paid by the transferor or creator prior to the said transfer or creation.(4) (Amended, SG No. 102/2000, supplemented, SG No. 109/2001, renumbered from Paragraph (3), SG No. 100/2005) Immovable property tax shall be credited to revenue of the budget of the municipality exercising jurisdiction over the immovable. The tax due from the concessionaire for an immovable located within the territory of more than one municipality shall be credited to revenue of the municipality whereof the territory shall contain the larger part of the said immovable.Section IIInheritance TaxArticle 29. (1) Inheritance tax shall be levied on the estate of any decedent Bulgarian citizen located within Bulgaria or abroad when devolved by legal or testamentary succession, as well as on the estate located within Bulgaria where so devolved by any decedent foreign citizen.(2) The estate of any decedent stateless person shall be taxed as an estate of a Bulgarian citizen, should the said person have been permanently resident within the territory of Bulgaria.Article 30. (1) A decedent's estate shall incorporate the movable and immovable things owned by the ancestor and the rights to any such things, as well as the ancestor's other property rights, receivables and liabilities at the time of the opening of the succession, save as otherwise provided by statute.(2) Inheritance tax shall furthermore be levied on any property devolving directly on a third party in the event of death of the ancestor pursuant to a contract concluded by the ancestor.(3) Paragraph (2) shall not apply if the contract was concluded to fulfil an obligation imposed by statute.Article 31. (1) (Redesignated from Article 31, SG No. 106/2004) Liability for inheritance tax shall apply to the legal or testamentary heirs as well as to the legatees.(2) (New, SG No. 106/2004) Inheritance tax shall not be paid by the surviving spouse and by the lineal heirs without restraint.Article 32. (1) (Amended, SG No. 103/1999) Within six months after the opening of a succession, any taxable person covered under Article 31 herein or the legal representative thereof shall be obligated to submit a declaration to the municipality exercising competence over the last fixed abode of the ancestor or, should the ancestor have been domiciled abroad, to the municipality exercising competence over the situs of the larger part of the estate of the ancestor within Bulgaria.(2) For any heir or legatee other than a spouse, descendant, parent, or sibling, the six-month time limit for submission of the declaration shall begin to run from the day of learning that the succession has opened.(3) In respect of the estates of persons declared absent by the court, the declaration shall be submitted by the heirs apparent to the person declared absent at the time when the said person was last heard from. In such a case, the six-month time limit for submission of the declaration shall begin to run from the entry into possession.(4) Where the heir is a person who has been conceived at the time of opening of the succession and was born living, the time limit under Paragraph (1) in respect of the legal representatives of any such person shall begin to run from the date of birth of the said person.(5) Any declaration submitted in due course by one heir shall benefit the other heirs as well.(6) In the declaration, the heirs shall itemize the decedent's estate as inherited by type, location and value.(7) Any decedent's estate of which the taxable persons learn the time limit under the foregoing paragraphs has expired, shall be declared within one month after the day of learning about the estate. In such cases, the tax due shall be recalculated.Article 33. (1) Any decedent's estate, with the exception of such exempt from tax, shall be identified and valued in lev terms at the date of the opening of the succession, as follows:1. the corporeal immovables: at the assessed value arrived at according to Annex 2 hereto;2. the foreign currency and precious metals: at the central exchange rate of the Bulgarian National Bank;3. the securities: at fair market value or, where the fair market value cannot be established without considerable cost or difficulty, at face value;4. (Amended, SG No. 109/2001, SG No. 45/2002) the transport vehicles: at the insured value;4a. (New, SG No. 109/2001, repealed, SG No. 45/2002);5. any other movable things and rights: at fair market value;6. the enterprises or participating interests in commercial corporations or cooperatives: at fair market value or, where determination of the said value requires considerable expense or causes difficulties, according to accounting data.(2) The liabilities of the ancestor shall likewise be valued according to the procedure established by Paragraph (1).(3) Any rights and liabilities of the ancestor, which have not been established in terms of either legal grounds or amount, shall be declared but shall be valued and taken into consideration upon determination of the taxable estate being established in terms of legal grounds and amount. In such case, the tax due shall be recalculated.(4) Upon request by a municipal administration officer or an interested party, the insurers shall issue a certificate of the insured value of the thing within seven days.Article 34. The assets of the taxable estate as determined according to the procedure established by Article 33 herein shall be debited with the following items:1. the liabilities of the ancestor at the time of opening of the succession, established in terms of legal grounds and amount, unless property exempt from inheritance tax is acquired against such liabilities; any payables to creditors, whereof the claims to the ancestors are extinguished by prescription and are unrealized within the six-month time limit under Article 32 herein, shall not be set off;2. the rights and receivables transferred by the heirs in favour of the State or the municipalities according to the procedure established by the law within the six month time limit under Article 32 herein;3. (Amended, SG No. 153/1998) the funeral expenses up to the amount of BGN 1,000;4. any reliefs provided for by the law.Article 35. (1) The taxable estate shall be divided into portions, and each heir shall be allocated a portion according to the procedure established by the Succession Act. (2) The value of the legacies, valued according to the procedure established by Article 33 herein, shall be added or subtracted from the portions, as the case may be.Article 36. (Amended, SG No. 106/2004, SG No. 110/2007) By the ordinance referred to in Article 1 (2) herein, the Municipal Council shall determine the amount of the tax separately in respect of each heir or legatee, as follows:1. applicable to siblings and the children of siblings: from 0.7 to 1.4 per cent per portion in excess of BGN 250,000;2. applicable to any persons other than such referred to in Item 1: from 5 to 10 per cent per portion in excess of BGN 250,000.Article 37. (Amended, SG No. 103/1999, SG No. 105/2005) The tax shall be assessed and shall be communicated to each legal or testamentary heir according to the procedure established by the Tax and Social Insurance Procedure Code. Article 38. (1) The following shall be exempt from tax:1. the estate of those who fell for the Republic of Bulgaria or in the line of duty, or who died in industrial accidents or natural disasters;2. (supplemented, SG No. 109/2001, SG No. 119/2002) the estate settled on the State, the municipalities, the Bulgarian Red Cross, the lawfully registered religious denominations in Bulgaria, the community centres (chitalishte) and other legal persons which are not merchants, with the exception of the non-profit organizations designated for pursuit of private- benefit activities;3. any ordinary household furnishings;4. any small farm implements;5. libraries and musical instruments;6. any works of art whereof the author is the ancestor, any of the heirs or a lineal relative thereof up to any degree of consanguinity, or a collateral relative up to the fourth degree of consanguinity;7. the ancestor's pensions payable;8. the estates of Bulgarian citizens located abroad, in respect of which inheritance tax has been paid in the respective State.(2) Should any two persons, of whom one is heir to the other, have died simultaneously or in immediate succession, no tax shall be due on the portion acquired by the deceased heir.(3) Exemption under Items 3, 4 and 5 of Paragraph (1) shall apply only to lineal heirs, spouses, and siblings.Article 39. Should any immovable property have devolved to the ancestor by succession, the decedent's estate shall include 40 per cent of the assessed value of the said property if acquired within one year prior to the death of the ancestor; 50 per cent, if acquired within two years prior to the death thereof, and 60 per cent, if acquired within three years prior to the death thereof.Article 40. (1) (Amended, SG No. 103/1999) Inheritance tax shall fall due for payment within two months after service of the notice.(2) Should the decedent's estate comprise the enterprise of a sole trader, participating interest in a general partnership, interests and shares representing more than 50 per cent of the capital of commercial corporations, the tax due may be paid within one year after the opening of the succession together with the legal interest, which shall begin to accrue upon the lapse of the two-month time limit referred to in Paragraph (1).Article 41. (1) (Amended, SG No. 103/1999, supplemented, SG No. 102/2000) Sums held on accounts of decedents shall be paid to the heirs of holders upon presentation of a certificate issued by the municipality, certifying that the said sums have been declared in the inheritance tax return and the tax has been paid. Should the tax be not paid, the said tax shall be withheld and credited to the account of the competent municipality within one month after presentation of a document on the amount of the tax due, and the heirs shall be paid sums up to the amount of the balance on the account of ancestor.(2) Paragraph (1) shall furthermore apply to payment of indemnities on a contract for life insurance, concluded by the ancestor in favour of third- party beneficiaries.(3) (Amended, SG No. 103/1999) The transfer of any registered shares and other securities which appertained to decedent persons or to persons who have been declared absent shall be executed proceeding from a certificate issued by the municipality exercising competence over the place of opening of the succession, certifying that the said securities have been declared in the inheritance tax return and the inheritance tax due has been paid.Article 42. (Amended, SG No. 103/1999, repealed, SG No. 100/2005).Article 43. (Amended, SG No. 103/1999) Any banks, insurance companies and other commercial corporations, as well as any other entities which are deposit keepers or obligors for securities, money or other property incorporated into a succession of which they know that it has opened, shall be obligated to transmit an inventory of the property to the municipality exercising competence over the place of opening of the succession prior to the payment, delivery or transfer of any such property.Section IIIGift Tax and Tax on Onerous Acquisition of PropertyArticle 44. (1) Tax shall be levied on any properties acquired by donation, as well as on any onerously acquired corporeal immovables, limited real rights thereto, and motor vehicles.(2) Any properties acquired gratuitously in any manner other than by donation, as well as any liabilities extinguished by remission, shall likewise attract a tax to the same amount as gift tax.(3) (New, SG No. 112/2003, amended, SG No. 106/2004) Paragraph (1) shall not apply to any motor vehicles which have been imported into Bulgaria as new.(4) (Renumbered from Paragraph (3) and supplemented, SG No. 112/2003) Paragraph (2) shall not apply should the transfer be effected to fulfil an obligation imposed by a law or in pursuance of an act of the Council of Ministers on gratuitous allocation of properties to investors under priority investment projects.(5) (New, SG No. 106/2004) No tax shall be levied on any properties acquired by donation between lineal relatives and between spouses.Article 45. (1) The tax shall be paid by the transferee of the property covered under Article 44 herein, and in the case of exchange, by the person acquiring the more valuable property, unless otherwise agreed. Should it be agreed that the tax is due by both parties, they shall incur solidary liability. Should the parties have agreed that the tax is due by the transferor, the other party shall stand surety.(2) Where the transferee of the property is abroad, the transferor shall be liable for the tax.Article 46. (1) The base for assessment of the tax shall be the assessed value of the property in lev terms at the time of the transfer.(2) The property shall be valued as follows:1. (Amended, SG No. 153/1998) corporeal immovables and limited real rights thereto: at the price agreed or at a price as set by a state or municipal authority or, should the said price be lower than the assessed value, at the assessed value arrived at according to Annex 2 hereto;2. (amended, SG No. 109/2001, SG No. 110/2007) any other properties: according to the procedure established by Items 2, 3, 4 and 5 of Article 33 (1) herein.(3) (New, SG No. 102/2000) The assessed value under Annex 2 in respect of any properties referred to in Item 1 of Paragraph (2) shall be arrived at proceeding from the particulars and characteristics contained in the declaration referred to in Article 14 (1) herein.Article 47. (1) (Amended, SG No. 110/2007) Upon donation of property, as well as in the cases covered under Article 44 (2) herein, tax shall be charged on the assessed value of the transferred property in an amount determined by the Municipal Council by the ordinance referred to in Article 1 (2) herein as follows:1. (amended, SG No. 106/2004, redesignated from Littera (b) and amended, SG No. 110/2007) from 0.7 to 1.4 per cent: applicable to donations between siblings and the children of siblings;2. (amended, SG No. 106/2004, redesignated from Littera (c) and amended, SG No. 110/2007) from 5 to 10 per cent: applicable to donations between any persons other than the persons referred to in Littera (b) sic, must be Item 1 - Translator's Note.(2) (Amended, SG No. 110/2007) Where property is onerously acquired, the tax shall be determined by the Municipal Council at a rate of 2 to 4 per cent of the assessed value of the transferred property, and in the case of exchange, of the assessed value of the more valuable property.(3) Upon partition of property resulting in an increase of the portion held before the partition, tax shall be charged on the increment.Article 48. (1) The following shall be exempt from tax:1. any properties acquired by:(a) the State and the municipalities;(b) (supplemented, SG No. 153/1998) any Bulgarian public-financed health, educational, cultural and scientific research organizations, as well as any public care homes and care homes for orphaned and abandoned pre-school children;(c) the Bulgarian Red Cross;(d) (amended, SG No. 106/2004) the nationally representative organizations of people with disabilities and for people with disabilities;(e) any funds providing relief to victims of natural disasters and financing the conservation and restoration of historical and cultural landmarks;2. (amended, SG No. 106/2004) any donations for medical treatment of Bulgarian citizens, as well as of technical aids for people with disabilities;3. (amended, SG No. 119/2002) any humanitarian donations to persons who have lost between 50 and 100 per cent of the working capacity thereof and to socially disadvantaged individuals;4. (amended, SG No. 109/2001, supplemented, SG No. 105/2006) any donations for not-for-profit legal entities which receive subsidies from the central-government budget, and any not-for-profit legal entities, registered in the Central Register of Not-for-Profit Legal Entities designated for pursuit of public-benefit activities, in respect of any donations received and provided;5. any customary gifts;6. any property transferred gratuitously in fulfilment of an obligation arising under statute;7. any donations in favour of community centres (chitalishte);8. (amended, SG No. 28/2002) any properties acquired according to the procedure established by the Privatization and Post-privatization Control Act; 9. any non-cash assets contributed towards an allotment in the capital of a commercial corporation, a cooperative or a non-profit corporation;10. (new, SG No. 112/2003) the foreign States in respect of acquisition of corporeal immovables: on a basis of reciprocity.11. (new, SG No. 103/2005) any assistance provided gratuitously under the terms and according to the procedure established by the Financial Support for Culture Act.(2) Should any property received under Paragraph (1) be transferred to third parties, the uncollected tax shall become due if it is proven that the transfer is not connected to attainment of the immediate objectives wherefore the respective organization, listed under Paragraph (1), has been established, or where the said objectives have been cited as ground for exemption from tax.Article 49. (Amended, SG No. 103/1999, supplemented, SG No. 102/2000, amended and supplemented, SG No. 109/2001, SG No. 119/2002, amended, SG No. 112/2003) (1) The tax shall be paid at the municipality exercising competence over the situs of the corporeal immovable, and in the remaining cases, (at the municipality exercising competence over) the permanent address or the registered office of the taxable person, as the case may be. Any person who does not have a permanent address shall pay the tax according to the current address thereof.(2) The tax shall be paid upon the transfer of the corporeal immovable, the limited real rights to a corporeal immovable and the motor vehicles.(3) Upon gratuitous acquisition of property in cases other than such under Paragraph (2), the acquirers of property shall submit a return for taxation of the said property and shall pay the tax within two months after receipt.Article 50. Judges, notaries, regional governors, municipality mayors and other public officials shall execute the transaction or the act whereby real rights are acquired, created, modified or terminated after ascertaining that the tax due under this Chapter has been paid.Article 51. (1) (Amended, SG No. 103/1999, SG No. 36/2004) The recording offices shall notify the competent municipality of any transferred, created, modified or terminated real rights to corporeal immovables within seven days, and the Ministry of the Interior and the other competent authorities shall notify (the competent municipality) of any motor vehicles which have been registered, deregistered and suspended from operation within seven days.(2) The time limit referred to in Paragraph (1) shall begin to run as from the day next succeeding the (day of) recording or registration, deregistration or suspension from operation of the transport vehicle, as the case may be.Section IVTransport Vehicle TaxArticle 52. Transport vehicle tax shall be levied on:1. (amended, SG No. 112/2003) any motor vehicles registered for operation on the road network in the Republic of Bulgaria;2. any ships recorded in the registers of the Bulgarian ports;3. (amended, SG No. 109/2001) any aircraft recorded in the state register of civil aircraft of the Republic of Bulgaria.Article 53. The tax shall be paid by the owners of the transport vehicles.Article 54. (Amended, SG No. 103/1999) (1) (Redesignated from Article 54 and amended, SG No. 109/2001, amended and supplemented, SG No. 112/2003, SG No. 106/2004) The owners of transport vehicles shall declare the transport vehicles owned thereby to the municipality exercising competence over the permanent address or the registered office thereof, as the case may be, within two months after acquisition of any such vehicles. In respect of any transport vehicles, which have not been registered for operation within Bulgaria, the two-month time limit shall begin to run as from the date of registration of any such vehicles for operation. Upon acquisition of a transport vehicle by succession, the declaration shall be submitted within the time limit established by Article 32 herein.(2) (New, SG No. 109/2001) Where the owners of transport vehicles have no permanent address or registered office, as the case may be, within the territory of Bulgaria, declarations shall be submitted to the municipality exercising competence over the (place of) registration of the transport vehicle.(3) (New, SG No. 119/2002, amended, SG No. 105/2006) The owners of transport vehicles shall claim the right thereof to exemption from tax or to enjoyment of a rate rebate by means of a tax return submitted within the time limit under Paragraph (1). No such return shall be submitted in the event of theft or destruction of a transport vehicle.(4) (New, SG No. 119/2002, amended, SG No. 105/2006) The municipal administration officer may require presentation of documents certifying facts and circumstances relevant to taxation. Upon theft or destruction of a transport vehicle, the taxable person shall present a document issued by a competent authority and certifying the relevant circumstance.(5) (New, SG No. 119/2002) The tax return submitted by one of the co-owners shall benefit the rest of the co-owners.(6) (New, SG No. 109/2001, renumbered from Paragraph (3), SG No. 119/2002) Where data on the year of manufacture of the road transport vehicle shall be unavailable, the year of the first registration thereof shall be treated as the year of manufacture.(7) (New, SG No. 106/2004, supplemented, SG No. 105/2006) Upon submission of a declaration under Paragraph (1), the owner shall present a documentary proof of the tax paid upon acquisition of the transport vehicle declared, and in the cases referred to in Article 168 of the Value Added Tax Act, a document certifying remittance of the value added tax.(8) (New, SG No. 100/2005, amended, SG No. 110/2007) Where the certificate of registration of the transport vehicles covered under Article 55 (7) herein does not state any data on the permissible maximum weight of the combination of transport vehicles, the permissible maximum weight of the combination of transport vehicles as designated by the manufacturer shall be stated in the declaration referred to in Paragraph (1).Article 55. (Amended and supplemented, SG No. 153/1998, amended, SG No. 109/2001, SG No. 45/2002, SG No. 112/2003, supplemented, SG No. 106/2004, amended, SG No. 100/2005, SG No. 105/2006, SG No. 110/2007) (1) In respect of passenger cars, by the ordinance referred to in Article 1 (2) the Municipal Council shall determine the amount of tax in conformity with the engine power, adjusted by a coefficient depending on the year of manufacture, as follows:1. up to 37 kW inclusive: from BGN 0.34 to BGN 1.02 per kW;2. from 37 kW to 55 kW inclusive: from BGN 0.40 to BGN 1.20 per kW;3. from 55 kW to 74 kW inclusive: from BGN 0.54 to BGN 1.62 per kW;4. from 74 kW to 110 kW inclusive: from BGN 1.10 to BGN 3.30 per kW;5. over 110 kW: from BGN 1.23 to BGN 3.69 per kW.Depending on the year of manufacture, the tax shall be multiplied by the following coefficients:Number of years since year of manufacture, incl. year of manufacture CoefficientMore than fourteen years 1Less than five and more than fourteen years inclusive 1.5Up to five years inclusive 2.8 (2) By the ordinance referred to in Article 1 (2) herein, the Municipal Council shall determine the amount of the tax in respect of passenger car trailers as follows:1. cargo trailer: from BGN 5.00 to BGN 15.00;2. camping trailer: from BGN 10.00 to BGN 30.00.(3) By the ordinance referred to in Article 1 (2) herein, the Municipal Council shall determine the amount of the tax in respect of mopeds at BGN 10.00 to BGN 30.00, and the amount in respect of motorcycles as follows:1. up to 125 cm inclusive: from BGN 12.00 to BGN 36.00;2. over 125 and up to 250 ccm inclusive: from BGN 25.00 to BGN 75.00;3. over 250 and up to 350 ccm inclusive: from BGN 35.00 to BGN 105.00;4. over 350 and up to 490 ccm inclusive: from BGN 50.00 to BGN 150.00;5. over 490 and up to 750 ccm inclusive: from BGN 75.00 to BGN 225.00;6. over 750 ccm: from BGN 100.00 to BGN 300.00.(4) By the ordinance referred to in Article 1 (2) herein, the Municipal Council shall determine the amount of the tax in respect of tracers on the basis of the total weight as follows:1. up to 400 kg inclusive: from BGN 4.00 to BGN 12.00;2. over 400 kg: from BGN 6.00 to BGN 18.00.(5) By the ordinance referred to in Article 1 (2) herein, the Municipal Council shall determine the amount of the tax in respect of buses depending on the number of seats as follows:1. up to 22 seats, including the driver's seat: from BGN 50.00 to BGN 150.00;2. over 22 seats, including the driver's seat: from BGN 100.00 to BGN 300.00.(6) By the ordinance referred to in Article 1 (2) herein, the Municipal Council shall determine the amount of tax in respect of cargo trucks of up to 12 tonnes of legally permissible maximum weight at BGN 10.00 to BGN 30.00 per tonne of load-carrying capacity or fraction.(7) By the ordinance referred to in Article 1 (2) herein, the Municipal Council shall determine the tax in respect of truck tractors and trailer tractors depending on the permissible maximum weight of the combination of transport vehicles, of the number of axles and the type of suspension of the tractor, indicated in the certificate of registration of the tractor as follows:Number of axles of the truck tractor/ trailer tractor Permissible maximum weight of the combination of transport vehicles, indicated in the certificate of registration of the tractor Tax (BGN) equal or greater than less than driving axle/axles with pneumatic or pneumatic-equivalent suspension other suspension systems of the driving axle or axles(A) two axles - 18 from 8 to 24 from 28 to 84 18 20 from 28 to 84 from 64 to 192 20 22 from 64 to 192 from 147 to 441 22 25 from 190 to 570 from 342 to 1,026 25 26 from 342 to 1,026 from 600 to 1,800 26 28 from 342 to 1,026 from 600 to 1,800 28 29 from 331 to 993 from 399 to 1,197 29 31 from 399 to 1,197 from 655 to 1,965 31 33 from 655 to 1,965 from 909 to 2,727 33 38 from 909 to 2,727 from 1,381 to 4,143 38 - from 1,007 to 3,021 from 1,369 to 4,107(B) three and more axles 36 38 from 640 to 1,920 from 888 to 2,664 38 40 from 888 to 2,664 from 1,228 to 3,684 40 - from 1,228 to 3,684 from 1,817 to 5,451 (8) By the ordinance referred to in Article 1 (2), the Municipal Council shall determine the amount of tax in respect of special-purpose construction vehicles (concrete delivery trucks, concrete pumps etc.), crane trucks, special-purpose trailers for transportation of heavyweight or oversize loads and other special-purpose automobiles, excluding electric buses, at BGN 50.00 to BGN 150.00.(9) By the ordinance referred to in Article 1 (2), the Municipal Council shall determine the amount of tax in respect of crane trucks of load-carrying capacity exceeding 40 tonnes, special-purpose trailers of load-carrying capacity exceeding 40 tonnes for transportation of heavyweight or oversize loads, at BGN 100.00 to BGN 300.00.(10) By the ordinance referred to in Article 1 (2), the Municipal Council shall determine the amount of tax in respect of tractors as follows:1. from 11 kW to 18 kW inclusive: from BGN 5.00 to BGN 15.00;2. over 18 kW and up to 37 kW inclusive: BGN 7.00 to BGN 21.00;3. over 37 kW: from BGN 10.00 to BGN 30.00.(11) By the ordinance referred to in Article 1 (2), the Municipal Council shall determine the amount of tax in respect of any other self-propelled vehicles at BGN 25.00 to BGN 75.00.(12) By the ordinance referred to in Article 1 (2), the Municipal Council shall determine the amount of tax in respect of motor sleds at BGN 50.00 to BGN 150.00.(13) By the ordinance referred to in Article 1 (2), the Municipal Council shall determine the tax in respect of cargo trucks of permissible maximum weight exceeding 12 tonnes depending on the permissible maximum weight, the number of axles and the type of suspension as follows:Number of motor vehicle axles Permissible maximum weight Tax (BGN) equal or greater than less than driving axle or axles with pneumatic or pneumatic-equivalent suspension other suspension systems of the driving axle or axles(A) two axles 12 13 from 30 to 90 from 61 to 183 13 14 from 61 to 183 from 168 to 504 14 15 from 168 to 504 from 237 to 711 15 - from 237 to 711 from 536 to 1,608(B) three axles 15 17 from 61 to 183 from 106 to 318 17 19 from 106 to 318 from 217 to 651 19 21 from 217 to 651 from 282 to 846 21 23 from 282 to 846 from 434 to 1,302 23 - from 434 to 1,302 from 675 to 2,025(C) four axles 23 25 from 282 to 846 from 286 to 858 25 27 from 286 to 858 from 446 to 1,338 27 29 from 446 to 1,338 from 708 to 2,124 29 - from 708 to 2,124 from 1,050 to 3,150 Article 56. (Amended and supplemented, SG No. 153/1998. SG No. 109/2001, amended, SG No. 100/2005, SG No. 110/2007) By the ordinance referred to in Article 1 (2) herein, the Municipal Council shall determine the amount of tax in respect of:1. ships recorded in the registers of small ships at Bulgarian ports and such recorded in the municipal registers for ships operated on the internal waters without contact with the Black Sea and the River Danube, excluding yachts and scooters: at BGN 1.00 to BGN 3.00 per gross ton or fraction;2. ships excluding yachts, scooters, tug boats and push boats, recorded in the register of large ships at Bulgarian ports: at BGN 1.00 to BGN 3.000 per gross ton or fraction up to 40 gross tons inclusive, and at BGN 0.10 to BGN 0.30 per gross ton or fraction in excess of 40 gross tons;3. jetski: at BGN 100.00 to BGN 300.00 per item;4. yachts and motor cruisers: at BGN 20.00 to BGN 60.00 per gross ton or fraction;5. scooters: at BGN 2.70 to BGN 8.10 per kilowatt;6. tug boats and push boats: at BGN 0.14 to BGN 0.42 per kilowatt;7. river-going non-self propelled navigation vessels: at BGN 0.50 to BGN 1.50 per ton deadweight.Article 57. (Amended, SG No. 109/2001, SG No. 110/2007) By the ordinance referred to in Article 1 (2) herein, the Municipal Council shall determine the amount of tax in respect of civil aircraft as follows:1. in respect of airplanes in service with a valid airworthiness certificate and in respect of helicopters: at BGN 20.00 to BGN 40.00 per ton of maximum take-off weight or fraction;2. in respect of para gliders: at BGN 12.00 to BGN 24.00;3. in respect of hang gliders: at BGN 12.00 to BGN 24.00;4. in respect of powered gliders: at BGN 20.00 to BGN 40.00;5. in respect of free balloons: at BGN 30.00 to BGN 60.00;6. in respect of gliders: at BGN 30.00 to BGN 60.00.Article 58. (1) The following transport vehicles shall be exempt from (transport vehicle) tax:1. (Amended, SG No. 153/1998) any transport vehicles owned by state and municipal bodies and by public-financed organizations which enjoy special traffic privileges, as well as ambulances and fire trucks appertaining to other persons;2. any vehicles owned by diplomatic missions and consulates, on a basis of reciprocity;3. any vehicles owned by the Bulgarian Red Cross, where used for the purposes of the said organization;4. (amended, SG No. 153/1998, SG No. 112/2003, SG No. 100/2005) any tricars or passenger cars owned by disabled persons who have lost between 50 and 100 per cent of the working capacity thereof, of an engine capacity not exceeding 1,800 cubic centimetres and engine power not exceeding 74 kW.(2) (Repealed, SG No. 109/2001).(3) Upon transfer of ownership of a transport vehicle, the new owner shall not pay the tax should the previous owner have paid the said tax for the time remaining until the end of the calendar year (wherein the transfer was effected).(4) (New, SG No. 45/2002, amended, SG No. 105/2006) No tax shall be collected in respect of any transport vehicle which shall not be operated, subject to the condition that the owner of the said vehicle has surrendered the registration certificate and has presented a certificate of dismantling prior to the end of the last preceding year.Article 59. (1) (Amended, SG No. 100/2005) A rate rebate of 50 per cent shall apply to the tax on passenger cars of engine power not exceeding 74 kW, equipped with operative catalytic converters.(2) (Amended, SG No. 109/2001, SG No. 45/2002, SG No. 100/2005, SG No. 105/2006, SG No. 110/2007) A rate rebate of 50 per cent shall apply to the tax under Article 55 (5), (6), (7) and (13) herein in respect of buses, cargo trucks, trailer tractors and truck tractors equipped with low-emission engines satisfying the Euro 2, Euro 3, Euro 4 and Euro 5 standards.(3) (Amended and supplemented, SG No. 109/2001, amended, SG No. 45/2002) A rate rebate of 10 per cent shall apply to the amount of tax arrived at according to the procedure established by Article 55 (5) herein in respect of buses operated in public carriage of passengers on Scheduled bus services in urban settlements and in sparsely populated mountain and border areas, which lines are subsidized by the municipalities, subject to the condition that the said buses are not used for other purposes.Article 60. (1) (Transport vehicle) tax shall be payable in two equal instalments, not later than: the 31st day of March and the 30th day of September in the year wherefor the tax is due. Any taxpayer, who or which prepays the amount of tax due for the whole year by the time limit for payment of the first installment, shall enjoy a rate rebate of 5 per cent.(2) (Amended, SG No. 112/2003, SG No. 106/2004) In respect of any transport vehicle acquired or registered for operation during a relevant current year, the tax shall be paid within two months after the day of acquisition or after the date of registration, as the case may be, in an amount equivalent to one-twelfth of the annual tax for each month remaining until the end of the year, including the month of acquisition or of the registration for operation, as the case may be.(3) (Repealed, SG No. 109/2001).(4) (Repealed, SG No. 109/2001).(5) (Amended, SG No. 102/2000, SG No. 112/2003) In respect of any destroyed or stolen transport vehicle, the tax paid shall be refunded in proportion to the number of clear months remaining until the end of the year, reckoned from the month of occurrence, upon presentation of a (supporting) document issued by the relevant competent authority.(6) (Amended, SG No. 105/2006) Payment of the tax shall be condition for compliance at the annual inspection of the transport vehicle.(7) (New, SG No. 45/2002, repealed, SG No. 105/2006).(8) (New, SG No. 45/2002, amended, SG No. 105/2006) In respect of any transport vehicle acquired in inoperable condition, the tax shall be paid according to the procedure and within the time limits established under Paragraph (2).(9) (New, SG No. 112/2003) In any cases other than such provided for, upon change of any circumstance relevant to assessment of the tax, the tax liability shall be modified as from the beginning of the month next succeeding the month of occurrence of the change.Article 61. (Amended, SG No. 109/2001, SG No. 112/2003) (Transport vehicle) tax shall be credited to revenue of the municipality where the owner of the transport vehicle, who has submitted the declaration, has his, her or its permanent address or registered office, as the case may be, and where no such declaration has been submitted and in the cases under Article 54 (2) herein, to revenue of the municipality where the transport vehicle has been registered.Section V(New, SG No. 109/2001, repealed, SG No. 106/2004) Road TaxArticle 61a. (Amended, SG No. 6/2004, repealed, SG No. 106/2004) Article 61b. (Repealed, SG No. 106/2004). Article 61c. (Repealed, SG No. 106/2004). Article 61d. (Amended, SG No. 6/2004, repealed, SG No. 106/2004) Article 61e. (Amended, SG No. 112/2003, repealed, SG No. 106/2004) Article 61f. (Supplemented, SG No. 112/2003, repealed, SG No. 106/2004) Article 61g. (Supplemented, SG No. 112, repealed, SG No. 106/2004). Section VI(New, SG No. 110/2007)Licence TaxArticle 61h. (New, SG No. 110/2007) (1) An annual licence tax shall be levied on any natural person, including a sole trader, who carries out any activity specified in Annex 4 hereto (licence activity), in respect of the income accruing from any such activity, provided that:1. the turnover of the person for the last preceding year does not exceed BGN 50,000, and2. the person is not registered under the Value Added Tax Act, with the exception of registration for intra-Community acquisition under Article 99 and Article 100 (2) of the said Act. (2) In respect of the licence activity carried out, the persons referred to in Paragraph (1) shall not be taxed according to the procedure established by the Income Taxes on Natural Persons Act. (3) The persons referred to in Paragraph (1) shall apply the provisions on taxes withheld at source and on taxation of expenses under Item 2 of Article 204 of the Corporate Income Tax Act. Article 61i. (New, SG No. 110/2007) (1) Where, within twelve successive months, any one natural person has ceased to carry out a licence activity and/or has formed a new enterprise which carries out a licence activity, and the aggregate turnover of the said two enterprises exceeds BGN 50,000 for twelve successive months, Article 61k herein shall not apply to any such newly formed enterprise. In such a case, the newly formed enterprise shall be subject to taxation according to the standard procedure established by the Income Taxes on Natural Persons Act for the current tax year.(2) Where, within the current tax year, the turnover of the person exceeds BGN 50,000 or the person registers under the Value Added Tax Act, the said person shall be taxed according to the standard procedure established by the Income Taxes on Natural Persons Act. (3) In the cases under Paragraphs (1) and (2), the licence tax for the current year shall be payable until the end of the quarter preceding the quarter during which the circumstances referred to in Paragraphs (1) and (2) have occurred.(4) In the cases under Paragraphs (1) and (2), the tax payable or remitted, as the case may be, shall be deducted from the annual tax liability according to the procedure established by the Income Taxes on Natural Persons Act. (5) At the request of the person, the municipality shall issue a certificate of the amount of licence tax due, for which no fee shall be charged.(6) Where, within the current tax year the person deregisters under the Value Added Tax Act, the said person shall be taxed according to the standard procedure established by the Income Taxes on Natural Persons Act for the entire tax year.Article 61j. (New, SG No. 110/2007) (1) The Municipal Council shall determine the amount of the licence tax within the ranges according to Annex 4 hereto depending on the location of the establishment within the territory of the relevant municipality.(2) The Municipal Council may determine a different amount of licence tax for one and the same activity in different nucleated settlements within the territory of the municipality, as well as in different zones within the territory of one and the same nucleated settlement. The nucleated settlements in the municipalities shall be zoned for the purposes of the licence tax by the ordinance referred to in Article 1 (2) herein.(3) The Municipal Council shall determine the amount of the tax reckoning with the following criteria: location of the nucleated settlement/zone, type of nucleated settlement, considering whether the said settlement is of local or national importance, number of residents and size of the nucleated settlement/zone, economic importance of the nucleated settlement/zone, seasonal or permanent nature of the activity, state of economic affairs of the nucleated settlement.(4) Where the licence activity is not carried out at an establishment or is not carried out from a fixed location, the permanent address of the person shall be treated as a location of the establishment for the purposes of determination of the amount of the licence tax.Article 61k. (New, SG No. 110/2007) (1) A licence tax shall be due separately for each of the activities practised according to Annex 4 hereto.(2) The persons who carry out a licence activity at more than one establishment shall be liable to tax for each establishment separately.(3) Where the licence activity commences or ceases in the course of the year, with the exception of the activity specified in Items 1 and 2 of Annex 4 hereto, the tax shall be assessed in proportion to the number of quarters during which the said activity is carried out, including the quarter of commencement or cessation of the said activity.(4) Where within any single licence activity, with the exception of the activities specified in Items 1 and 2 of Annex 4 hereto, any circumstance related to the determination of the tax changes in the course of the year, the amount of the tax until the end of the year, including for the quarter of the change, shall be determined on the basis of the amount of the tax determined conforming to the changes in the circumstances.(5) Where within any single licence activity of those specified in Items 1 and 2 of Annex 4 hereto any circumstance changes in the course of the year and this leads to determination of the licence tax in a larger amount, the larger amount of the tax, as determined conforming to the changes in the circumstances, shall be due for the tax year.(6) Any income accruing from any activity which is not specified in Annex 4 hereto shall be taxed according to the standard procedure established by the Income Taxes on Natural Persons Act.Article 61l. (New, SG No. 110/2007) (1) The taxable persons who are subject to levy of a licence tax may enjoy tax relief in the following sequence:1. any natural persons, including any sole traders, who have lost 50 per cent and more than 50 per cent of the working capacity thereof, which loss has been determined by an effective decision of a competent authority, shall enjoy a rate rebate of 50 per cent of the licence tax as determined if they carry out the activity in person and do not hire workers for the said activity throughout the tax year;2. any natural persons, including any sole traders, who carry out more than one type of any licence activity of those specified in Items 1 to 36 of Annex 4 hereto through work done in person throughout the tax year, shall pay 50 per cent of the licence tax as determined for the relevant activity;3. any natural persons, including any sole traders, who are pensioners and carry out a licence activity specified in Items 5, 6, 8 to 15, 18 to 20, 25, 27 to 29 and 31 of Annex 4 hereto, shall pay 50 per cent of the licence tax as determined if they carry out the activity in person and do not hire workers for the said activity throughout the tax year;4. any persons who use the workplace for training of apprentices within the meaning given by the Skilled Crafts Act and who carry out a licence activity of the ones specified in Items 10, 12 and 13 of Annex 4 hereto, shall pay 50 per cent of the licence tax as determined for the relevant workplace; this rebate shall be enjoyable subject to the condition that a copy of the certificate on entry in the register of apprentices, issued by the competent regional chamber of skilled crafts, is attached to the return referred to in Article 61m herein.(2) Notwithstanding Article 61k (4) herein, the tax relief referred to in Item 1 of Paragraph (1) shall be enjoyed for the entire tax year during which the loss of working capacity occurs or the validity of the decision expires.Article 61m. (New, SG No. 110/2007) (1) Not later than the 31st day of January of the current year, the persons subject to levy of a licence tax shall submit a tax return completed in a standard form, declaring thereby, the circumstances pertaining to the assessment of the tax. In the cases of commencement of activity after the said date, the tax return shall be submitted immediately before commencement of activity.(2) Any person, who submits the tax return referred to in Paragraph (1) on or before the 31st day of January of the current year and pays the full amount of the licence tax, as determined according to the circumstances as declared, on or before the same date, shall enjoy a rate rebate of 5 per cent.(3) By a return referred to in Paragraph (1), the persons shall furthermore declare all changes in the circumstances pertaining to the assessment of the tax within seven days after occurrence of the relevant circumstance.(4) The persons shall furthermore submit a tax return under Paragraph (1) on the occurrence of any circumstances referred to in Article 61i (1) and (2) herein during the relevant period. The tax return shall be submitted not later than at the end of the month next succeeding the month during which the circumstances referred to in Article 61i (1) and (2) herein have occurred.Article 61n. (New, SG No. 110/2007) (1) The tax returns referred to in Article 61m herein shall be submitted in the municipality within the territory whereof the establishment whereat the licence activity is carried out is located, and where the licence activity is not carried out at an establishment or is not carried out from a fixed location, the said returns shall be submitted in the municipality where the natural person, including the sole trader, has his or her permanent address.(2) Where the tax return of a non-resident natural person is submitted through an attorney-in-fact who has a permanent address in the country, the said submission shall be effected in the municipality where the said attorney-in-fact has his or her permanent address.(3) Outside the cases referred to in Paragraphs (1) and (2), the tax return shall be submitted in Sofia Municipality.Article 61o. (New, SG No. 110/2007) (1) The licence tax shall be remitted in four equal payments, as follows:1. for the first quarter: on or before the 31st day of January;2. for the second quarter: on or before the 30 the day of April;3. for the third quarter: on or before the 31st day of July;4. for the fourth quarter: on or before the 31st day of October.(2) Where an obligation to remit the licence tax arises during the tax year, the portion of the tax due for the current quarter shall be remitted within seven days after the date of submission of the return referred to in Article 61m herein, and where a return has not been submitted, the said portion shall be remitted within seven days after expiry of the time limit for submission of the said return.(3) The licence tax shall be credited to revenue of the municipality exercising jurisdiction over the establishment whereat the licence activity is carried out, and where the licence activity is not carried out at an establishment or is not carried out from a fixed location, the licence tax shall be credited to revenue of the municipality where the natural person, including the sole trader, has his or her permanent address. In the cases referred to in Article 61n (2) and (3) herein, the tax shall be credited to revenue of the municipality where the said attorney-in-fact has his or her permanent address or of Sofia Municipality, as the case may be.Chapter ThreeLOCAL FEESSection IHousehold Waste FeeArticle 62. (Supplemented, SG No. 153/1998) Household waste fee shall be charged for the services of collection, removal and safe disposal of household waste at sanitary landfills or similar waste disposal facilities, as well as for sanitation of the spatial development areas for public use in the nucleated settlements. The amount of the fee shall be determined according to the procedure established by Article 66 herein for each service separately: waste collection and waste removal; safe disposal of household waste at sanitary landfills or other facilities; sanitation of spatial- development areas for public use.Article 63. (1) (Supplemented, SG No. 153/1998) A tipping fee for use of household waste disposal sites and/or for sanitation of spatial- development areas for public use shall be charged in respect of any corporeal immovables located outside the areas where the municipality has organized a collection and removal of household waste.(2) (Amended, SG No. 153/1998) The boundaries of the areas and the type of the services provided under Article 62 herein in the relevant area, as well as the frequency of waste removal, shall be determined by an order of the (competent) municipality mayor and shall be made public on or before the 30th day of October in the year last preceding the year for which the fee is due.Article 64. (1) (Amended, SG No. 119/2002, effective 1.01.2004) The fee shall be paid by the owner of the immovable or, where a real right of use has been created, by the user, according to the expenses as approved by the Municipal Council for the relevant year for each of the activities covered under Article 62 herein.(2) (Amended, SG No. 109/2001, repealed, SG No. 119/2002, effective 1.01.2004).(3) (New, SG No. 109/2001, repealed, SG No. 119/2002, effective 1.01.2004).Article 65. (Amended, SG No. 153/1998, SG No. 103/1999, repealed, SG No. 119/2002, effective 1.01.2004).Article 66. (1) (Supplemented, SG No. 119/2002, effective 1.01.2004) The fee shall be determined by resolution of the Municipal Council as an annual amount in each nucleated settlement, based on an approved cost estimate for each activity, inclusive of the necessary expenses for:1. provision of receptacles for storage of household waste: containers, dust bins etc.2. collection of household waste and transportation of the said waste to sanitary landfills or other facilities and installations for the safe disposal thereof;3. (Amended, SG No. 109/2001) research, design, construction, maintenance, operation, closure and monitoring of sanitary landfills for household waste or other facilities and installations for safe disposal of household waste;4. cleaning of street roadways, squares, driveways, parks and other spatial-development areas of settlements assigned for public use.(2) (Repealed, SG No. 119/2002, effective 1.01.2005) The fee shall be collected by the tax administration.(3) (New, SG No. 153/1998) Should the Municipal Council fail to determine an amount of the household waste fee for a relevant current year before the end of the last preceding year, the said fee shall be charged on the basis of the amount effective at the 31st day of December in the last preceding year.(4) (New, SG No. 106/2004, repealed, SG No. 100/2005).(5) (New, SG No. 109/2001, renumbered from Paragraph (4), SG No. 106/2004) Any approved cost estimate for determination of the expenses of municipalities referred to in Paragraph (1) shall be subject to examination by the National Audit Office.Article 67. (1) (Redesignated from Article 67, SG No. 153/1998, amended, SG No. 109/2001, SG No. 119/2002, effective 1.01.2004) The amount of the (household waste) fee shall be determined in lev terms according to the quantity of household waste.(2) (Redesignated from sentence two of Item 2, SG No. 153/1998, amended, SG No. 119/2002, effective 1.01.2004) Where the quantity of household waste, referred to in Paragraph (1), is unascertainable, the amount of the fee shall be determined in lev terms per user or as a proportion of a base as shall be determined by the Municipal Council.(3) (New, SG No. 109/2001, amended, SG No. 119/2002, effective 1.01.2004) The amount of the fee determined depending on the quantity of household waste receptacles shall include the costs referred to in Items 1, 2 and 3 of Article 66 (1) herein.(4) (New, SG No. 109/2001, amended, SG No. 119/2002, effective 1.01.2004) The fee for sanitation of the spatial-development areas for public use in the nucleated settlements shall be determined in lev terms or as a proportion of a base as shall be determined by the Municipal Council.Article 68. (Amended, SG No. 119/2002, effective 1.01.2004) During the course of the year, it shall be inadmissible to revise the manner of determination and the amount of the household waste fee as adopted by the Municipal Council.Article 69. (Amended, SG No. 119/2002, effective 1.01.2004)(1) (Household waste) fee shall be payable according to a procedure established by the Municipal Council.(2) The municipality shall notify the persons covered under Article 64 herein of the fees due therefrom for the relevant period and of the time limits for payment.Article 70. (Repealed, SG No. 119/2002, effective 1.01.2004).Article 71. (Amended, SG No. 153/1998) No fee shall be charged for:1. (amended, SG No. 103/1999, SG No. 119/2002, effective 1.01.2004) household waste collection and household waste removal, where the service is not provided by the municipality;2. sanitation of the spatial-development areas for public use: where the service is not provided by the municipality;3. safe disposal of household waste and maintenance of sanitary landfills for household waste and other facilities for safe disposal of household waste: where no such are available.Section IIFees for Use of Retail and Wholesale Markets, Sidewalks, Squares,Street Roadways, Fairs and Grounds Assigned to Other UsesArticle 72. Fees shall be charged for use of sidewalks, squares, street roadways, retail market places (whether open-air or roofed), wholesale markets, fairs, as well as ground assigned to other uses which constitute municipal property.Article 73. (1) The fee shall be payable by natural and legal persons and shall vary by the zone wherein the grounds covered under Article 72 herein are located.(2) The zones referred to in Paragraph (1) shall be designated by the Municipal Council.Article 74. (Amended, SG No. 109/2001, repealed, SG No. 119/2002).Article 75. (Amended and supplemented, SG No. 153/1998, amended, SG No. 109/2001, repealed, SG No. 119/2002).Article 76. (Amended, SG No. 109/2001, repealed, SG No. 119/2002).Article 77. (Amended, SG No. 109/2001, repealed, SG No. 119/2002).Article 78. (Amended, SG No. 109/2001, repealed, SG No. 119/2002).Article 79. (1) The fees shall be paid upon the issuance of a licence for the period specified in the said licence.(2) Where the space is used for a period exceeding one month, the fees shall be paid on a monthly basis.(3) (Repealed, SG No. 119/2002).Article 80. The municipal authority, which has issued a licence for use of space, may revoke the said licence where the space is not used for the assigned purpose, where the space is not used by the licensed user, or where public needs so require.Section IIIFees for Creches, Kindergartens, Public Care Homes, Camps andOther Municipal Social Services(Heading amended, SG No. 119/2002)Article 81. (Amended, SG No. 153/1998, SG No. 119/2002) Monthly fees shall be charged from the parents or tutors of the attendees for attendance of creches and kindergartens.Article 82. (Amended, SG No. 109/2001, repealed, SG No. 119/2002).Article 83. (Amended, SG No. 109/2001, repealed, SG No. 119/2002).Article 84. (1) (Amended, SG No. 153/1998, SG No. 119/2002) For attendance of schoolchildren's camps, a fee shall be charged per day in an amount as determined by the (competent) Municipal Council according to Articles 7, 8 and 9 herein.(2) (Repealed, SG No. 119/2002).(3) (Repealed, SG No. 119/2002).Article 85. (1) (Amended, SG No. 153/1998, SG No. 119/2002) Any schoolchildren who use dormitories shall pay a monthly fee in an amount as determined by the (competent) Municipal Council according to Articles 7, 8 and 9 herein.(2) (Repealed, SG No. 119/2002).Article 86. (1) (Amended, SG No. 119/2002) Any user of municipal social services shall pay a monthly fee to an amount equivalent to the relevant actual upkeep per person.(2) (Amended, SG No. 119/2002) The actual upkeep per person shall include the monthly costs of food, bedding and clothing, detergents and sanitary materials, food transportation costs, as well as the portion of the common costs of electric current and heat power, water supply, sewerage and household waste disposal, but excluding the donations, legacies and devices of any resident and non-resident natural and legal persons.Article 87. (1) The fee due shall be deducted from the personal income of the resident or beneficiary.(2) (Repealed, SG No. 119/2002).(3) (Repealed, SG No. 119/2002).(4) (Repealed, SG No. 119/2002).(5) (Repealed, SG No. 119/2002).Article 88. (Repealed, SG No. 119/2002).Article 89. (Repealed, SG No. 119/2002).Article 90. Any persons accommodated at private boarding homes or serviced by private schemes providing meals and domestic help at home, shall pay sums as contracted.Article 91. (Amended, SG No. 153/1998, SG No. 109/2001, SG No. 119/2002) For accommodation at an alcohol detoxification establishment or premises, a fee shall be charged per day.Article 92. (Supplemented, SG No. 153/1998) The fees under this Section shall be charged and collected by the office holders at the relevant establishments and shall be credited to revenue of the municipal budget not later than the 10th day of the month next succeeding the month wherefor such fees are due, and the fees under Article 86 herein, not later than the 25th day of the month next succeeding the month wherefor such fees are due.Section IV(Amended and supplemented, SG No. 71/1998, amended, SG No. 153/1998,supplemented, SG No. 102/2000, amended, SG No. 109/2001, SG No. 56/2002)Visitor FeeArticle 93. (1) (Amended, SG No. 94/2005) A fee shall be paid for use of a collective tourist accommodation establishment, a supplementary tourist accommodation or a hikers' chalet within the meaning given by the Tourism Act. (2) (Amended, SG No. 119/2002) The proceeds from the visitor fee shall be credited to the on-budget account of the municipalities.(3) (New, SG No. 112/2003, amended, SG No. 94/2005) The proceeds from the visitor fee from the collective tourist accommodation establishments, the supplementary tourist accommodations and the hikers chalets shall be expended according to a municipal programme for development of tourism, which shall be adopted annually, solely on:1. construction and maintenance of the infrastructure servicing tourism within the territory of the municipality, including local roads connecting resorts with airports, railway stations and bus stations, as well as with cultural landmarks and historical heritage sites;2. establishment of tourist information centres and arrangement of information services;3. conservation, maintenance and development of green spaces;4. sanitation and hygiene measures;5. promotion at home and abroad of tourism establishments located within the territory of the municipality.Article 93a. (1) The amount of the fee shall be determined by resolution of the Municipal Council not later than the 30th day of June in the last preceding year.(2) Should the Municipal Council fail to determine the fee within the time limit established by Paragraph (1), the amount of the fee effective during the last preceding year shall continue in effect for the next succeeding year.(3) (New, SG No. 112/2003) In the cases covered under Article 93 (1) herein, the Municipal Council shall determine the amount of the fee after advance consultation with the Municipal Tourist Board in the process of adoption of the annual programme for development of tourism.Article 94. (Amended, SG No. 94/2005) The fee shall be paid by each person using a collective tourist accommodation establishment, a supplementary tourist accommodation or a hikers' chalet simultaneously with the payment for the service.Article 95. (Repealed, SG No. 119/2002).Article 96. (Repealed, SG No. 119/2002).Article 97. (Amended, SG No. 119/2002, SG No. 94/2005) The fee shall be collected by the natural or legal persons who or which supply the service of overnight accommodation at a collective tourist accommodation establishment, a supplementary tourist accommodation or a hikers' chalet, and shall be credited to the on-budget account of the municipalities not later than the 15th day of the month next succeeding the month wherein the fee was collected.Section VQuarrying FeesArticle 98. Fees shall be charged for extraction of pit run, including such recovered from the bottom of water bodies.Article 99. (1) The fees shall be charged from the natural or legal persons who or which extract the pit run.(2) Any persons, who have been awarded a concession including extraction from the relevant deposit, shall not owe any fees under this Section.Article 100. The fees shall be determined separately in respect of each type of material according to the gross output determined:1. according to the production records mandatorily kept by each quarry;2. according to the quantities specified in the temporary or one-time permit for extraction of pit run.Article 101. (Amended, SG No. 119/2002) The amount of the fees shall be determined according to Articles 8, 8 and 9 herein:1. (amended, SG No. 109/2001, SG No. 119/2002) in respect of bank sand and pit sand, gravel and ballast;2. (amended, SG No. 109/2001, SG No. 119/2002) in respect of quartz sand used in glass-making and cutting sand;3. (amended, SG No. 109/2001, SG No. 119/2002) in respect of sandy loam material used for manufacture of bricks, roof tiles and ridge tiles, interior and exterior plastering;4. in respect of clay:(a) (amended, SG No. 109/2001, repealed, SG No. 119/2002);(b) (amended, SG No. 109/2001, repealed, SG No. 119/2002);5. (amended, SG No. 109/2001, SG No. 119/2002) in respect of foundry sand;6. (amended, SG No. 109/2001, SG No. 119/2002) in respect of rubble, crushed stone and mosaic of sedimentary, eruptive, erinaceous and other rocks;7. (amended, SG No. 109/2001, SG No. 119/2002) in respect of common stones of calcareous sandstone, limestone, travertine, dolomite, marble, aragonite, coquinoid limestone, conglomerate etc. used for interior and exterior facing;8. (amended, SG No. 109/2001, SG No. 119/2002) in respect of limestone, marl and calcite used for production of lime;9. (amended, SG No. 109/2001, SG No. 119/2002) in respect of limestone, marl, and sandy loam material used for production of cement;10. in respect of stone for manufacture of:(a) (amended, SG No. 109/2001, SG No. 119/2002) paving blocks;(b) (amended, SG No. 109/2001, SG No. 119/2002) rolls, millstones, grindstones and whetstones;(c) (amended, SG No. 109/2001, SG No. 119/2002) baseboards, eaves, steps and other such of sandstone, trochoid, marl and other of sedimentary rocks;(d) (amended, SG No. 109/2001, SG No. 119/2002) baseboards, eaves, steps and other such of granite, syenite, basalt, diorite, rhyolite, andensite and other of hard eruptive rocks;(e) (amended, SG No. 109/2001, SG No. 119/2002) sidewalk flagstones and roof slabs.Article 102. The fees shall be paid:1. every month: in the cases referred to in Item 1 of Article 100 herein;2. before extraction of the pit run in the cases referred to in Item 2 of Article 100 herein.Article 103. (Supplemented, SG No. 102/2000) The fees shall be credited to revenue of the budget of the municipality exercising jurisdiction over the place of extraction of the pit run not later than the 15th day of the month next succeeding the moth of extraction.Section VITechnical Service FeesArticle 104. Fees shall be charged for technical services provided by the municipalities and covering activities in connection with regional and urban planning, architecture, construction, urban development, cadastre in settlement and extra settlement spatial-development areas.Article 105. Technical service fees shall be charged from the natural and legal persons who and which benefit from the services, upon submission of the request.Article 106. The central-government and municipal bodies, the public-financed organizations and the Bulgarian Red Cross shall be exempt from technical service fees.Article 107. (Amended, SG No. 119/2002) The amount of technical service fees is hereby set as follows;1. (amended, SG No. 109/2001, SG No. 119/2002) for issuance of a design plat for a corporeal immovable;2. (amended, SG No. 109/2001, SG No. 119/2002) for issuance of a design plat for a corporeal immovable specifying the building development manner;3. (amended, SG No. 109/2001, SG No. 119/2002) for re certification of design plats after the lapse of six months since the issuance thereof;4. for marking of a building line and elevation:(a) (amended, SG No. 109/2001, repealed, SG No. 119/2002);(b) (amended, SG No. 109/2001, repealed, SG No. 119/2002);5. (amended, SG No. 109/2001, SG No. 119/2002) for issuance of a certificate of facts and circumstances regarding regional and urban planning;6. (amended, SG No. 109/2001, SG No. 119/2002) for certification of transcripts of documents and of copies of plans and the documentation appertaining thereto;7. (new, SG No. 119/2002) for issuance of a permit for placement of movable amenities for retail trade: stalls, kiosks, booths and other such;8. (new, SG No. 119/2002) for issuance of a building permit, an overhaul permit and a remodelling permit for existing buildings and premises therein.Article 108. No technical service fees shall be charged for:1. supplementation (correction) of an approved cadastral plan;2. a letter to the court, petitioning the issuing of a writ of execution on claims under an effective appraisal;3. certification of a construction work as unusable, a risk of spontaneous collapse, or harmful in terms of sanitation and hygiene, when the specialized commission ascertains the existence of such conditions;4. condemnation of corporeal immovables for construction purposes and indemnification of the title holders;5. modification and revocation of an effective order of condemnation and indemnification and reappraisal of a condemned immovable;6. determination of indemnities for corporeal immovables adjoinable to a parcel of land regulated under a yard regulation plan and for physical infrastructure work;7. provision of oral information on the cadastral, regulation and urban-planning status of corporeal immovables;8. provision of advance information on matters concerning technical services.Article 109. (1) The time limit for provision of technical services, which is not established by a statutory instrument, shall be set by resolution of the competent Municipal Council but may not be longer than one month.(2) Upon delay beyond the time limit referred to in Paragraph (1), the amount of the fee due for the respective service shall be reduced by 1 per cent daily, reckoned from the first day of delay, but by not more than 30 per cent in aggregate of the full amount of the said fee.Section VIIAdministrative Service FeesArticle 110. (1) The following fees shall be charged for provision of registrar services:1. (amended, SG No. 109/2001, SG No. 119/2002) for issuance of a certificate of heirship;2. (amended, SG No. 109/2001, SG No. 119/2002) for issuance of a certificate of identity of names;3. (amended, SG No. 109/2001, SG No. 119/2002) for issuance of a certificate of non-entry of a birth record or a death record;4. (amended, SG No. 109/2001, SG No. 119/2002) for issuance of a replacement of a birth certificate, a civil marriage certificate, as well as for re-issuance of an abstract of a death record;5. (amended, SG No. 109/2001, repealed, SG No. 119/2002);6. (amended, SG No. 109/2001, SG No. 119/2002) for issuance of a certificate of marital status;7. (amended, SG No. 109/2001, SG No. 119/2002) for issuance of a certificate of kinship;8. (amended, SG No. 109/2001, SG No. 119/2002) for address registration and/or issuance of certificates of permanent or current address;9. (amended, SG No. 109/2001, SG No. 119/2002) for authentication of an affidavit of invitation to a visit the Republic of Bulgaria of a foreigner;10. (amended, SG No. 109/2001, SG No. 119/2002) for authentication of an affidavit of invitation to a private visit to the Republic of Bulgaria to a non-resident person whereof one or both parents are of Bulgarian descent;11. (amended, SG No. 109/2001, SG No. 119/2002) for legalization of civil registration certificates intended for submission abroad;12. (amended, SG No. 109/2001, SG No. 119/2002) for any other types of certificates issued as requested;13. (amended, SG No. 109/2001, SG No. 119/2002) for transcripts of documents.(2) No fee shall be chargeable for any of the following services:1. entry of a birth record and issuance of an original birth certificate;2. entry of a civil marriage record and issuance of an original civil marriage certificate;3. entry of a death record and issuance of an abstract thereof;4. any entries, supplementary entries and corrections in the civil registration records;5. creation of tutorship and appointment of a curator;6. keeping of the population register;7. recording a change of name in the civil status register;8. issuance of a survivor benefit certificate.Article 111. (Amended, SG No. 109/2001, SG No. 119/2002) A fee shall be charged in respect of proceedings for accommodation of tenants, sale, exchange or creation of real rights in municipal corporeal immovables.Article 112. (Amended, SG No. 119/2002) A fee shall be charged for issuance of a certificate of ownership as required for sale of cattle.Article 113. (Amended, SG No. 109/2001, amended and supplemented, SG No. 119/2002, amended, SG No. 106/2004) (1) Fees shall be charged for issuance of permits and for practice of activities in amounts determined by the (competent) Municipal Council, in compliance with the following principles:1. the amount of the fees shall be determined on the basis of the expenses incurred by the municipality for the handling of the documents and for verification of compliance with the requirements set for practice of the activity;2. upon discontinuance of the operation of a distributive trade establishment, the municipality shall refund part of the annual fee in proportion to the period during which the activity is not performed;3. in the case of seasonal work, the annual fee shall be paid in an amount proportionate to the period of performance of the said work.(2) The following fees shall be collected under Paragraph (1):1. an initial fee: for issuance of a permit for trade under Article 30 (1) of the Tobacco and Tobacco Products Act; 2. an annual fee: for verification of compliance with the requirements for practice of the following activities:(a) trade in tobacco products under Article 30 (1) of the Tobacco and Tobacco Products Act; (b) storage, keeping, seasoning and wholesale trade in grape products, alcohol, distillates and spirit drinks;(c) retail trade in grape products, alcohol, distillates and spirit drinks;(d) trade in spirit drinks at mass-catering and amusement establishments;3. a daily fee: for a temporary stall for sale of grape products, alcohol, distillates and spirit drinks at fairs, local community festivals, corporate promotional campaigns and other such.(3) In respect of the year of issuance of the permit or of commencement of practice of the activity, the annual fee shall be paid in the amount of one-twelfth of the annual fee for each clear month remaining until the end of the year, including the month of issuance.(4) A person may not commence the relevant business prior to the issuance of a permit. A permit shall be issued upon presentation of a document certifying that there are no outstanding tax liabilities as well as other financial obligations to the municipality, whether declared or ascertained by a written statement of a competent authority at the date of issuance of the certificate.Article 114. (Supplemented, SG No. 109/2001, amended, SG No. 106/2004) The initial fee referred to in Item 1 of Article 113 (3) herein shall be paid by the persons upon submission of the request for issuance of a permit, and the annual fee referred to in Item 2 of (Article 113) (3) shall be paid on or before the 31st day of January.Article 115. (Repealed, SG No. 119/2002, new, SG No. 105/2006) A fee shall be paid for the issuance of certificates, where this is provided for in a law, and for certification of documents.Section VIIIDog Ownership(Amended, SG No. 109/2001, repealed, SG No. 119/2002,new, SG No. 87/2005) Article 116. (Repealed, SG No. 119/2002, new, SG No. 87/2005) (1) For ownership of a dog, the owner shall pay an annual fee in the municipality within the territory whereof the said owner has his, her or its permanent address or registered office, as the case may be.(2) The owners of dogs covered under Article 175 (2) of the Veterinary Practices Act shall be exempt from fee.Article 117. (Repealed, SG No. 119/2002, new, SG No. 87/2005) Within three months after acquisition of a dog, the owner thereof shall submit a declaration to the municipality exercising jurisdiction over the permanent address or the registered office of the said owner, as the case may be.Article 118. (Repealed, SG No. 119/2002, new, SG No. 87/2005) (1) The fee shall be paid annually, not later than the 31st day of March in the year wherefor the fee is due, or within one month after the date of acquisition of the dog, should the dog have been acquired after the 31st day of March. In respect of any dogs acquired during any current year, the fee shall be due in an amount equivalent to one-twelfth of the annual amount of the said fee for each month remaining until the end of the year, including the month of acquisition.(2) The proceeds from the fees collected under Paragraph (1) shall be used for measures related to a reduction of the number of stray dogs.Article 119. (Repealed, SG No. 119/2002). For more information visit www.solicitorbulgaria.com id: 338 Mon, 04 Aug 2008 06:57:18 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-local-taxes-and-fees-act-part-1 http://web.solicitorbulgaria.com/index.php/bulgarian-local-taxes-and-fees-act-part-1 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/LOCAL_TAXES_AND_FEES_ACT.JPG EUR http://web.solicitorbulgaria.com/index.php/bulgarian-local-taxes-and-fees-act-part-1 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Subject MatterArticle 1. These Regulations shall govern the application of the Value Added Tax Act.Chapter OneGENERAL PROVISIONSTaxable PersonArticle 2. A taxable person upon importation of goods shall be any natural or legal person.Provision of Goods or Rendering of ServicesArticle 3. (1) Provision of goods or rendering of services between branches or between structural units established within the territory of the country within the structure of one person established within the territory of the country shall constitute internal turnover and shall not be supply.(2) Paragraph 1 shall furthermore apply to supply of goods or services between branches or between structural units established within the territory of the country within the structure of one person established outside the territory of the country.(3) For supplies of goods or services between a person established within the territory of a Member State and its branches or structural units established within the territory of the… For more information visit http://www.solicitorbulgaria.com id: 339 Subject MatterArticle 1. These Regulations shall govern the application of the Value Added Tax Act.Chapter OneGENERAL PROVISIONSTaxable PersonArticle 2. A taxable person upon importation of goods shall be any natural or legal person.Provision of Goods or Rendering of ServicesArticle 3. (1) Provision of goods or rendering of services between branches or between structural units established within the territory of the country within the structure of one person established within the territory of the country shall constitute internal turnover and shall not be supply.(2) Paragraph 1 shall furthermore apply to supply of goods or services between branches or between structural units established within the territory of the country within the structure of one person established outside the territory of the country.(3) For supplies of goods or services between a person established within the territory of a Member State and its branches or structural units established within the territory of the country the general rules of the Act regulating the arrangement of supplies shall apply.(4) Paragraph 3 shall furthermore apply to supplies of goods or services between branches or structural units established within the territory of the country and branches or structural units within the structure of the same person, which are established within the territory of another Member State.(5) The supply of goods or services between branches or between structural units established within the territory of another Member State, within the structure of one person established within the territory of the country shall not be reported, documented and declared under the procedure of the Act. (6) (New, SG No. 16/2007) Paragraphs 3 and 4 shall not apply where the supply of services is carried out to cover expenses at cost. In these cases internal turnover exists, not supply.Chapter TwoPLACE OF SUPPLIES AND INTRA-COMMUNITY ACQUISITIONSection IPlace of SuppliesPlace of Supply of GoodsArticle 4. In the cases of supply of goods transported from third countries or territories to a place within the territory of the country, the place of transaction of supply shall be within the territory of the country if the supplier of the goods is an importer.Place of Supply of ServicesArticle 5. (1) (Redesignated from Article 5, SG No. 16/2007) For the purposes of determining the place of supply of a service within the meaning of the Act , the terms "permanent address" and "habitual residence" shall mean the place specified as such in a passport or identity card and should the latter be absent, in other identity documents.(2) (New, SG No. 16/2007) The place of supply of transport, forwarding, courier or postal services (other than the services under Article 49 of the Act) shall be determined in accordance with Item 2 of Article 21 (2) of the Act where the services are provided in regard to international transport between:1. third country/territory and third country/territory or2. third country/territory and another Member State or3. another Member State and third country/territory.Place of Supply of Services in Intra-Community Transport of GoodsArticle 6. (1) The place of supply of services in intra-Community transport of goods shall be the territory of the country wherein transportation of the goods begins.(2) (Amended, SG No. 101/2006) Where a recipient of the supply referred to in Paragraph 1 is a person registered for VAT purposes in a Member State other than the Member State wherein the transport begins, the place of supply shall be the territory of the Member State which issued the VAT identification number to the recipient under which the service was effected thereto.(3) (New, SG No. 101/2006) Where a forwarder acts in the conditions of a forwarding contract and provides a forwarding service in relation to the supply of services for transport of goods between Member States, the place of supply of the forwarding service shall be the territory of the Member State wherein the transport begins.(4) (New, SG No. 101/2006) Where the recipient of the supply under Paragraph 3 is a person registered for VAT purposes in a Member State other than the Member State wherein the transport begins, the place of supply of the forwarding service shall be the territory of the Member State which issued the VAT identification number to the recipient under which the service was provided.(5) (New, SG No. 101/2006, supplemented, No. 3/2007) A forwarding service under Paragraphs 3 and 4 shall be the service of organizing, carrying out and servicing of transport of goods between Member States, including the supply of transport service as main supply and provision of services ancillary to this supply such as transport handling of goods, processing of documents, storage and insurance. Where the main supply of transport service is related to transport of goods between two places within the territory of the country, the forwarder shall have documents certifying that the transport of the goods within the territory of the country is directly related to the transport of the goods between Member States.(6) (New, SG No. 101/2006) In the cases referred to in Paragraphs 3 - 5 the provision of Article 127 of the Act shall not apply.(7) (New, SG No. 101/2006) The place of supply of courier or postal services (other than the services under Article 49 ) in relation to transport between two Member States shall be the territory of the Member State wherein the transport begins.(8) (New, SG No. 101/2006) Where a recipient of the supply under Paragraph 7 is a person registered for VAT purposes in a Member State other than that wherein the transport begins, the place of supply shall be the territory of the Member State which has issued the VAT identification number of the recipient under which the courier or the postal service was provided.(9) (New, SG No. 101/2006) For the purposes of documentation, declaration and recording in the ledgers of account the supplies under the foregoing paragraphs shall be equalized to supplies of services for transport of goods under Article 22 of the Act .Place of Supply of Services Ancillary to the Supply of Services inIntra-Community Transport of GoodsArticle 7. (1) The place of supply of services involving transport handling of goods ancillary to the supplies referred to in Article 6 herein shall be the territory of the Member State which issued the VAT identification number to the recipient under which the service was effected thereto.(2) (Amended, SG No. 101/2006) Where the recipient of the supply referred to in Paragraph 1 is a person registered for VAT purposes in a Member State other than that wherein the actual handling of goods in transit was effected, the place of supply shall be the territory of the Member State which issued the VAT identification number to the recipient under which the service was effected thereto.(3) The place of supply of a service effected by an agent, broker and another intermediary acting in the name and for the account of another person in connection with the supply of the service under Article 6 herein, shall be the territory of the Member State where transportation of the goods begins.(4) (Amended, SG No. 101/2006) Notwithstanding Paragraph 3, where the recipient of the supply under Paragraph 2 is a person registered for VAT purposes in a Member State other than that wherein the transport begins, the place of supply shall be the territory of the Member State which issued the VAT identification number to the recipient under which the service was effected thereto.(5) The place of supply of services effected by an intermediary acting in the name and for the account of another person in connection with the provision of services for transport handling of goods under Paragraph 1 shall be the place where the transport handling of the goods is physically performed.(6) (Amended, SG No. 101/2006) Where the recipient of the supply referred to in Paragraph 5 is a person registered for VAT purposes in a Member State other than that wherein the actual handling of goods in transit was effected, the place of supply shall be the territory of the Member State which issued the recipient the VAT identification number under which the service was effected thereto.(7) (New, SG No. 101/2006) For the purposes of documentation, declaration and recording in the ledgers of account the supplies under the foregoing paragraphs shall be equalized to supplies of services under Article 23 of the Act .Place of Supply of Services Involving Valuation and Work on MovableThings with Recipient Established within the Territoryof Another Member StateArticle 8. (1) The place of supply of services involving valuation or work on movable things shall be the place where the service is effected physically.(2) Where the recipient of the supply referred to in Paragraph 1 is a person registered for VAT purposes in another Member State and the goods have left the territory of the Member State where the service was effected physically, the place of supply shall be the territory of the Member State which issued the VAT identification number to the recipient under which the service was effected thereto.(3) In the cases referred to in Paragraph 2 the supplier shall have documents certifying the circumstances under Paragraph 2.(4) The supplier shall have the following documents certifying the circumstances referred to in Item 2 of Article 24 (3) of the Act:1. invoice on the supply;2. documents proving dispatch or transportation of the goods from the territory of the country to a destination outside the territory of the country such as:(а) a transport document or a written confirmation by the recipient or a person authorized thereby certifying that the goods are received outside the territory of the country - in the cases where the transport is at the expense of the supplier or the recipient but is carried out by a third party, or(b) a transport document or a written confirmation by the recipient or a person authorized thereby certifying that the goods are received outside the territory of the country - where the transport is carried out by the supplier, or(c) a written confirmation by the recipient certifying that the goods have left the territory of the country - where the transport is carried out by the recipient.(5) If the supplier of the service does not obtain the documents under Paragraph 4 by the end of the calendar month following the calendar month in which the chargeable event for the supply occurred, it shall be considered that the place of supply is the territory of the country and the tax on it shall become chargeable on the last day of the tax period following the tax period in which the chargeable event for the supply occurred.(6) The tax under Paragraph 5 shall be charged by the supplier by issuing a memorandum under Article 117 (2) of the Act.(7) The memorandum under Paragraph 6 shall be issued within 5 days effective as from the last day of the calendar month following the calendar month in which the chargeable event for the supply occurred.(8) Where the supplier obtains the documents under Paragraph 4 subsequently, it shall adjust the result of the application of Paragraphs 5 and 6 by cancelling the memorandum under Paragraph 6. No new memorandum shall be issued for the cancellation.(9) The cancellation under Paragraph 8 shall be effected within 5 days effective as from the date on which the person obtained the required documents.(10) (New, SG No. 101/2006) For the purposes of documentation, declaration and recording in the ledgers of account the supplies under Paragraph 1 shall be equalized to supplies of services under Article 24 of the Act.Section IIPlace of Intra-Community AcquisitionCertification of Existing Circumstancesof Intra-Community AcquisitionArticle 9. (1) To prove the circumstances under Article 62 (3) of the Act that the intra-Community acquisition of the goods is charged in the Member State where the goods have arrived or the transport thereof has ended, the acquirer Article 62 (2) shall have a document certifying that the intra-Community acquisition of the goods is charged in that Member State. The document shall be issued by the competent administration of the Member State where the goods have arrived or the transport thereof has ended.(2) To prove the circumstances under Article 62 (5) of the Act the intermediary in a triangular operation shall have the following documents:1. an invoice issued by the transferor in the triangular operation, stating the VAT identification number of the intermediary under Article 94 (2) of the Act;2. (supplemented, SG No. 101/2006) an invoice under Item 1 of Article 79 (2) issued by the intermediary in the triangular operation, specifying the VAT number of the acquirer in the triangular operation, issued by the Member State wherein the goods arrive;3. a VIES return for the relevant tax period in which the supply is declared in respect of which the invoice under Item 2 has been issued;4. a written confirmation by the acquirer in the triangular operation, certifying the receipt of the goods.(3) If the intermediary in the triangular operation fails to obtain the documents under Paragraph 2 until the end of the tax period following the tax period in which the tax on the intra-Community acquisition under Article 62 (2) would become chargeable, it shall be considered that the place of intra-Community acquisition is the territory of the country whereof the tax becomes chargeable from the intermediary.(4) In the cases referred to in Paragraph 3 the tax shall become chargeable on the last day of the tax period following the tax period during which the tax on the intra-Community acquisition under Article 62 (2) of the Act would become chargeable and shall be charged by the intermediary by issuing a memorandum under Article 117 (2) of the Act.(5) The memorandum under Paragraph 4 shall be issued within 5 days effective as from the date on which the tax under Paragraph 4 became chargeable.AdjustmentsArticle 10. (1) Where the tax on the intra-Community acquisition under Article 62 (2) of the Act is charged by a memorandum under Article 117 (2) of the Act and subsequently the person effecting the intra-Community acquisition obtains the document under Article 9 (1), the person shall adjust the result of the application of Article 62 (2) of the Act by cancelling the memorandum under Article 117 (2) whereby the tax is charged. No new memorandum shall be issued for the cancellation.(2) In the cases of Paragraph 1 the memorandum shall be cancelled not later than the last day of the tax period during which the person obtained the document under Article 9 (1).(3) Where the intermediary in a triangular operation obtains the documents under Article 9 (2) after the time limit under Article 9 (3), the said intermediary shall adjust the result of the application of Article 9 (4) and (5).(4) In the cases of Paragraph 3 the adjustment shall be carried out by the intermediary by cancellation of the memorandum under Article 9 (5). No new memorandum shall be issued for the cancellation.(5) The cancellation under Paragraph 4 shall be effected within 5 days effective as from the date on which the intermediary obtained the documents under Article 9 (2).Chapter ThreeCHARGEABLE EVENT, TAXABLE AMOUNT AND TAX RATEChargeable EventArticle 11. (1) A chargeable event within the meaning given by the Act shall be any supply effected by taxable persons under the Act, including supplies whereof the place of transaction is outside the territory of the country.(2) A chargeable event shall furthermore be the intra-Community acquisition of goods.(3) A chargeable event shall furthermore be the importation of goods within the meaning given by Article 16 of the Act.Date of Occurrence of Chargeable Event upon Supply of ServicesArticle 12. (1) Except for the cases referred to in Article 25 (3) and (4) of the Act the service shall be considered supplied within the meaning of the Act on the date on which the conditions for recognition of the income therefrom occur in accordance with the Accountancy Act and the applicable accounting standards.(2) Except for the cases of Article 25 (3) and (4) of the Act where under a contract for supply of a service the latter is related to execution of separate stages which shall be accepted by the recipient of the supply, for every stage of completeness of the service a chargeable event shall occur and the tax on it shall become chargeable on the date of acceptance of the said stage and such date shall be ascertained by a delivery-acceptance protocol signed by the supplier and the recipient.(3) (New, SG No. 101/2006) In the event of supplies under Article 25 (4) of the Act - with periodic, staged or ongoing execution - every period or stage for which a payment is agreed shall be considered a separate supply the chargeable event whereof occurs on the date on which the payment became due.(4) (New, SG No. 101/2006) Where a payment on a supply is made before a chargeable event under Paragraph 3 occurred, the tax shall become chargeable upon receipt of the payment.(5) (New, SG No. 101/2006) Paragraphs 3 and 4 shall also apply in the cases of a lease contract wherein no obligation has been agreed but only a possibility (option) for transfer of the ownership right. It is considered that an option in a lease contract exists where an explicit expression of will by the lessee and an additional payment other than instalments due on the contract are required for the transfer of ownership.Chargeable Event upon Modification of Lease ContractArticle 13. (1) In the cases of modification of a lease contract which initially provides for an option for transfer of ownership over the goods and as a result of the modification of the contract transfer of ownership over the goods is provided for expressly, it shall be considered that the person effects supply under Item 3 of Article 6 (2) of the Act on the date of modification of the contract.(2) The taxable amount of the supply under Paragraph 1 shall be equal to the sum total of the instalments due after the date of the modification of the contract, net of tax due thereon.(3) The supply under Paragraph 1 shall be documented in accordance with the standard procedure established by the Act.(4) (New, SG No. 101/2006) The service of granting a loan on supply of goods under the conditions of a lease contract shall be considered a separate supply the chargeable event whereof occurs under the terms of Article 25 (4) of the Act.(5) (New, SG No. 101/2006) The supply under Paragraph 4 shall be documented in accordance with the standard procedure established in the Act.(6) (New, SG No. 101/2006) Upon replacement of a lessee with a new lessee under an existing lease contract which provides explicitly for a transfer of the right of ownership over the goods it shall be considered that at the date of replacement with the new lessee a termination of the lease contract with the replaced (initial) lessee exists, which shall be documented under the terms of Article 115 (6) of the Act.(7) (New, SG No. 101/2006) In the cases of Paragraph 6 it shall be considered that at the date of replacement with the new lessee the lessor effects a supply under Item 3 of Article 6 (2) of the Act to the new lessee. The taxable amount of said supply shall be equal to the sum of the instalments due after the date of the replacement with the new lessee, without the tax due thereon.(8) (New, SG No. 101/2006) The supply under Paragraph 7 shall be documented in accordance with the standard procedure established in the Act.Taxable Amount of Supply of Excisable GoodsArticle 14. The taxable amount under Article 26 and Article 52 of the Act shall not include the amount of the excise duty where the goods are placed under excise duty suspension arrangement in accordance with the terms and procedure of the Excise Duties and Tax Warehouses Act.Taxes and Fees under the Local Taxes and Fees Act Article 15. Taxes and charges under the Local Taxes and Fees Act shall be included in the taxable amount of the supplies for which they are due.Utilisation of Investment Grants (Subsidies)Article 16. (1) Investment grants (subsidies) shall be considered utilized where the conditions required for their recognition as income occur pursuant to the Accountancy Act and the applicable accounting standards.(2) Where the investment grant (subsidy) received is for both additional payment on effected supplies in respect of which a right to deduct credit for input tax applies as well as on exempt supplies or on supplies or activities in respect of which no right of credit for tax input applies and it is impossible to determine for which supplies or activities it refers to, it shall be considered that the investment grant (subsidy) is allocated proportionately in accordance with the supplies effected by the supplier under Article 73 (3) of the Act and Items 2 - 6 of Article 73 (4) of the Act in the last 12 months before the month in which the investment grant (subsidy) was utilized.Usual or Customary Packing MaterialsArticle 17. (1) Usual or customary packing materials or containers within the meaning of the Act shall be only those intended for multiple use without recycling, such as bottles, cases, cans, drums, pallets, casks, barrels, cisterns, containers and others, after their adjustments to the hygienic and sanitary requirements.(2) The taxable amount under Article 26 (2) of the Act shall not be credited with the value of the usual or customary packing materials or containers under Item 4 of Article 26 (3) of the Act in so far as this value is included in the incidental expenses for packing under Item 3 of Article 26 (3) of the Act.Trade Discounts or Rebates Granted to RecipientsArticle 18. (1) Item 1 of Article 26 (5) of the Act shall apply regardless of whether the trade discount or rebate is granted in the form of money, goods or services.(2) Supply of goods or services not linked to the subject of the supply in respect of which they are supplied shall not be considered trade discount or rebate granted.(3) Goods or services are considered linked to the subject of the supply within the meaning of Paragraph 2 if they are of the same kind or if they are intended for advertising, testing, accompany or facilitate the use of the goods or services supplied.(4) Where the trade discount or rebate is granted after the date of occurrence of the chargeable event for the supply, to adjust the taxable amount of the supply the supplier shall issue a credit advice to the invoice issued for the supply and where more than one invoice is issued, by a credit advice stating the numbers of all invoices issued for the supply.(5) In the cases of Item 2 of Article 26 (5) of the Act where usual or customary packing materials or containers are not returned within 12 months from dispatch thereof, the taxable amount of the supply shall be credited by issuing a debit advice to the invoice issued for the supply. The advice shall be issued within 5 days effective as from the day of expiration of the 12-month time limit.Taxable Amount for Intra-Community Acquisition of Excisable GoodsArticle 19. (1) Included in the taxable amount for intra-Community acquisition of excisable goods shall be the excise duty due or paid for the goods in the Member State from which the excisable goods were dispatched or transported.(2) Where the excise duty due or paid for the goods in the Member State from which they were dispatched or transported has been refunded, the taxable amount under Paragraph 1 shall be debited with the amount of the excise duty refunded.(3) Refunding of the excise duty under Paragraph 2 shall be ascertained by the person with a document issued by the competent administration of the Member State which has refunded the excise duty.(4) The taxable amount under Paragraph 2 shall be debited by issuing a memorandum under Article 117 (4) of the Act.(5) The memorandum under Article 117 (4) of the Act shall be issued within 5 days effective as from the last day of the tax period in which the person obtained the document under Paragraph 3.(6) Excluded from the taxable amount under Article 64 of the Act shall be the amount of the excise duty where the goods are placed under excise duty suspension arrangement in accordance with the terms and procedure of the Excise Duties and Tax Warehouses Act.Special Cases of Determination of Taxable AmountArticle 20. The open market value under Article 27 (3) of the Act shall be determined at the date of occurrence of the chargeable event for the supply.Chapter FourCERTIFICATION OF EXISTING CIRCUMSTANCES OF SUPPLIESSupply of Goods Dispatched or Transported Outside theTerritory of the CommunityArticle 21. (1) Where the goods are dispatched or transported to a third country, to prove the supply under Items 1 and 2 of Article 28 of the Act the supplier shall have the following documents:1. a written customs declaration naming the supplier as the exporter of the goods, certified by the exit customs office;2. an invoice on the supply;3. a document of transportation of the goods.(2) Where the goods are dispatched or transported to a third territory, to prove the supply under Items 1 and 2 of Article 28 of the Act the supplier shall have the following documents:1. an invoice on the supply;2. a document of transportation of the goods;3. a written confirmation by the recipient certifying that the goods have arrived in the third territory.International Transport of PassengersArticle 22. To prove international transport of passengers under Article 29 of the Act the supplier of the service shall have the following documents:1. a license for operation of international transport of passengers;2. a document certifying international transport of passengers specifying the number of the means of transport by which the transport is effected.International Transport of GoodsArticle 23. (1) To prove international transport of goods under Items 1 and 2 of Article 30 of the Act the supplier of the service shall have the following documents:1. a license for operation of international transport of cargo, if the transport is effected by road;2. international transport documents naming the supplier as the carrier - a bill of lading, an air waybill or another internationally recognised transport document or a copy thereof;3. an invoice on the supply.(2) To prove international transport of goods under Item 3 of Article 30 of the Act the supplier of the service shall have the following documents:1. transport documents naming the supplier as the carrier;2. a copy of a transit customs declaration of transport between two customs offices, specifying the identification number of the means of transport by which the transport is effected;3. an invoice on the supply.International Transport of Natural Gas and ElectricityArticle 24. (1) For the purposes of proving international transport of natural gas within the meaning of Article 30 of the Act the supplier of the service shall have the following:1. a contract for transport, transfer or transit of natural gas;2. a written confirmation by the supplier of natural gas for the transited quantities, accompanied by a delivery acceptance act issued by a gas measuring station;3. invoice on the supply.(2) For the purposes of proving international transport of electricity within the meaning of Article 30 of the Act the supplier of the service shall have the following documents:1. written confirmation by the owner of the electricity of the quantities involved in the traffic or documents issued by the administrator under international cross-border trade agreements;2. invoice on the supply.Supply of Goods for Supply of Vessels,Aircrafts or Rolling Railway StockArticle 25. (1) (Former text of Article 25, SG, No. 3/2007) For the purposes of proving the supply under Item 1 of Article 31 of the Act with place of transaction within the territory of the country the supplier shall have the following documents simultaneously:1. an order for supply, supply receipt, supply list, delivery certificate or another document for supply of goods for consumption on board showing: the number and date of the international route, the destination and the initials (name and/or number) of the vehicle;2. a written customs declaration naming the supplier as the exporter - where the destination is a third country;3. invoice on the supply.(2) (New, SG No. 3/2007) Item 1 of Article 31 of the Act shall furthermore apply to an international route within the Community.Supply of Goods Intended for Consumption on Board of VesselsArticle 26. For the purposes of proving supply for vessels under Item 2 of Article 31 of the Act with place of transaction within the territory of the country the supplier shall have the following documents simultaneously:1. an order for supply, supply receipt, supply list, delivery certificate or another document for supply of goods for consumption on board showing: the number and date of the international route, the destination and the initials (name and/or number) of the vehicle;2. documents certifying the right of carrying out commercial, industrial or fishing activities outside the sea territories of the Republic of Bulgaria;3. invoice on the supply.Supply of Services for Construction of Vessels or AircraftsArticle 27. (1) For the purposes of proving the supply of services for construction of a vessel or aircraft under Item 3 of Article 31 of the Act with place of transaction within the territory of the country the supplier shall have the following documents:1. a contract for construction of a vessel or aircraft;2. invoice on the supply.(2) For the purposes of proving the supply of services for maintenance, repair, modification, transformation, assembly, equipping, furnishing, transport and destruction of a vessel or aircraft under Item 3 of Article 31 of the Act with place of transaction within the territory of the country the supplier shall have the following documents:1. a contract with the vessel owner or the company operating the aircraft for provision of the relevant service, specifying the name and/or number of the vehicle;2. invoice on the supply.Chartering of Vessels, Aircrafts and Railway Rolling StockArticle 28. (1) (New, SG No. 16/2007) For the purpose of proving the supply under Item 4 of Article 31 of the Act with place of transaction within the territory of the country for renting of vessels corresponding to those referred to in Article 34 (3) of the Merchant Shipping Code the supplier shall have the following documents:1. a rent contract;2. a copy of the certificate of registration or the act of nationality of the vessel;3. an invoice on the supply.(2) (Supplemented, SG No. 3/2007, previous Article 28 and amended, SG No. 16/2007) Notwithstanding the cases referred to in Paragraph 1 for proving supply under Item 4 of Article 31 of the Act with place of transaction within the territory of the country the supplier shall have the following documents:1. a contract stating that the vessel, aircraft or railway rolling stock will be used by the charterer thereof for effecting of international transport, including international transport within the Community;2. a license or another document certifying the right of the charterer to effect international transport with the chartered vehicle where the charterer is a resident person;3. a copy of a document showing:(a) the initials of the vehicle;(b) the crew or the team;(c) the number of the flight, cruise or another route, the departure time and the arrival time.4. an invoice on the supply.Handling of Vessels, Aircraft and Railway RollingStock On International RouteArticle 29. (1) For the purposes of proving the supply of services for handling of a vessel under Item 5 of Article 31 of the Act with place of transaction within the territory of the country the supplier shall have the following documents:1. (amended, SG No. 3/2007) a document issued by the port enterprise of the vessel owner or its agent for said services certifying that the vessel is on international route, including an international route within the Community, and specifying the number and date of the route;2. an invoice on the supply.(2) For the purposes of proving the supply of services for handling of an aircraft under Item 5 of Article 34 of the Act with place of transaction within the territory of the country the supplier shall have the following documents:1. (amended, SG No. 3/2007) a document of the land servicing issued by the airport authorities or by the licensed operator for land servicing to the aircraft operator receiving the services, showing that the aircraft is on an international flight, including an international flight within the Community, and specifying the number and date of the flight;2. an invoice on the supply.(3) For the purposes of proving the supply of services for handling of railway rolling stock under Item 5 of Article 31 of the Act with place of transaction within the territory of the country the supplier shall have the following documents:1. a copy of the bill of lading CIM or copy of the bill of lading SMGS, receipt standard form 312c;2. an invoice on the supply.(4) Rescue operations under Item 5 of Article 31 shall be operations involving services linked to combating of natural calamities, elimination of the consequences thereof, as well as prevention of calamities through preventive measures, where such operations are performed outside the territory of the country.(5) "Calamity" shall mean an earthquake, flood, fire, landslide, volcano eruption, air or water disasters, wild animal incursion, calamity due to insects, epidemics or others, as well as accidents and disasters of massive nature that have grown into calamity (chemical, radiation or other pollution, accidents or disasters of public transport vehicles and others).(6) "Services linked to rescue operations" shall be:1. combat against calamities, including the transportation of rescue teams; the search, transportation or evacuation of people; the supply of food, medicines, human organs or others; the spraying of chemical and other substances; other rescue operations (monitoring, measuring, testing, mapping, weather impact, photographing and others);2. leasing of vehicles for the purposes of providing the services under Item 1.(7) For the purposes of proving the supply of services under Paragraph 6 the supplier shall have the following documents:1. where provided by air transport:(а) a document issued by the foreign competent authority to certify the preventive measures, the calamity or the elimination of the consequences thereof, as well as its nature;(b) a services contract;(c) an aviation operator license;(d) a statement on the services provided in hours or another measurement depending on the type of service;(e) an invoice on the supply;2. where provided by water transport:(a) documents proving the services provided in accordance with the Commercial Maritime Code;(b) an invoice on the supply.3. where provided by rolling railway transport:(a) documents certifying the services provided;(b) an invoice on the supply.Transport Handling of Goods or PassengersArticle 30. (1) For the purposes of proving the supply of services for handling of goods under Item 6 of Article 31 of the Act with place of transaction within the territory of the country the supplier shall have the following documents:1. the documents proving the handling of the vehicle;2. an invoice on the delivery.(2) The documents issued under Item 1 of Paragraph 1 may be issued in the name of the vessel owner (aviation operator or railway carrier), owner of the cargo, the carrier or the forwarder.(3) For the purposes of proving the supply of services for handling of passengers under Item 6 of Article 31 of the Act with place of transaction within the territory of the country the supplier shall have the following documents:1. the documents proving the handling of the vehicle;2. an invoice on the supply.Supply of Vessels and AircraftsArticle 31. For the purposes of proving the supply under Item 7 of Article 31 of the Act with place of transaction within the territory of the country the supplier shall have the following documents:1. a written contract for transfer of ownership or other property rights over the vehicle pursuant to the Merchant Shipping Code , the Civil Aviation Act respectively;2. an invoice on the supply.Supply Linked to International Goods TrafficArticle 32. (1) For the purposes of proving the supply under Item 1 of Article 32 of the Act with place of transaction within the territory of the country the supplier shall have the following documents:1. customs documents certifying that the goods are non-Community;2. customs documents showing that at the date on which the tax becomes chargeable the goods have the status of goods in temporary storage, or placed in a free zone or a free warehouse or under customs procedure of: customs warehousing, inward processing, temporary importation with full exemption from duty, external transit;3. an invoice on the supply.(2) For the purposes of proving the supply under Item 2 of Article 32 of the Act with place of transaction within the territory of the country the supplier shall have the following documents:1. a written declaration by the person who is the principal of the direction/procedure under Paragraph 1, stating that as of the date on which the tax on the supply of the service becomes chargeable for the goods, the circumstances under Paragraph 1 exist.2. an invoice on the supply.Supply for Handling of GoodsArticle 33. For the purposes of proving the supply of services for handling of goods under Article 33 of the Act with place of transaction within the territory of the country the supplier shall have the following documents:1. (amended, SG No. 101/2006) a written customs declaration for placing the goods under customs procedure of "inward processing" or "processing under customs control" naming the supplier as the principal - where the goods are non-Community, respectively a document certifying completion of customs formalities where the goods are Community and are imported into the territory of the country from a third territory;2. a contract under which the supplier undertakes the obligation to carry out treatment, processing or repair of the goods referred to in Item 1;3. documents proving the treatment, processing or repair of the goods referred to in Item 1;4. (amended, SG No. 101/2006) a written customs declaration of export or re-export of the treated, processed or repaired goods whereby the supplier completes the customs procedure under Item 1, respectively a customs document certifying that the treated, processed or repaired goods are sent from the territory of the country to a third territory;5. an invoice on the supply.Supply of Gold for Central BanksArticle 34. For the purposes of proving the supply under Article 34 of the Act with place of transaction within the territory of the country the supplier shall have the following documents:1. a written contract for transfer of ownership over the gold;2. a copy of a document certifying that the status of the recipient is a central bank of another Member State - where the recipient is a central bank of another Member State;3. a written confirmation by the recipient under Item 2 certifying the receipt of the goods thereby;4. an invoice on the supply.Supply of Goods at Duty-free Distributive Trade EstablishmentsArticle 35. (1) The sales of goods in duty-free distributive trade establishments under article 35 of the Act shall be liable to tax at the zero rate only where the sale of the goods is considered export pursuant to the Excise Duties and Tax Warehouses Act. (2) The sales referred to in Paragraph 1 shall be reported and documented in accordance with the Regulations for Application on the Excise Duties and Tax Warehouses.Supply of Services Provided by Agents, Brokersand Other Intermediaries Linked to International TransportArticle 36. (1) Agency services with place of transaction within the territory of the country provided in connection with international transport under Article 23 shall be the service provided by the shipping agent to the ship owner and/or the captain of the ship in connection with all formalities and activities linked to the arrival, stay and departure of the vessel.(2) For the purposes of proving the supply under Paragraph 1 with place of transaction within the territory of the country the supplier shall have the following documents:1. a disbursement account;2. a contract between the ship owner and the shipping agent;3. an invoice on the supply.(3) Brokerage services in connection with the supply under Article 23 shall be maritime brokerage services within the meaning of Articles 226 - 230 of the Merchant Shipping Code.(4) For the purposes of proving the supply under Paragraph 3 with place of transaction within the territory of the country the supplier shall have the following documents:1. a maritime brokerage contract;2. an invoice on the supply.(5) For the purposes of proving forwarding services with place of transaction within the territory of the country, provided in connection with international transport under Article 23 the supplier shall have the following documents:1. a copy of a transport document for international transport, in connection with which the forwarding services are provided, or, in the absence of a uniform international transport document, any of the alternative documents as follows:(а) a copy of a customs declaration in writing, indicating the place in the country where the goods are cleared as local goods upon importation;(b) a copy of the customs documents certifying the completion of customs clearance - in the cases of Article 16 (3) of the Act;(c) a copy of the document under Item 1 of Article 21 (1);(d) a copy of the document under Item 3 of Article 21 (2);(e) a copy of the transit customs declaration on transport between two customs institutions;2. (supplemented, SG No. 3/2007) an invoice on the forwarding services related to the organisation, performance or servicing of international transport and included activities for re-loading on the way, storage, insurance and customs clearance.(6) (Amended, SG No. 101/2006) For the purposes of proving the supply of courier services with place of transaction within the territory of the country in connection with international transport under Article 23 the supplier shall have the following documents:1. a bill of lading;2. an invoice of the transport service or a document, whereby the shipper undertakes the obligation to pay in the event of non-payment on the part of the customer;3. an invoice on the supply.(7) (Amended, SG No. 101/2006) For the purposes of proving the supply of postal services with place of transaction within the territory of the country in connection with international transport under Article 23 the supplier shall have the following documents:1. delivery receipts used in the exchange of international postal items in pursuance of the Regulations on the Enforcement of the Universal Postal Convention and the Regulations on the Enforcement of the Postal Parcels Agreement;2. an invoice on the supply.(8) (New, SG No. 3/2007) The services under Paragraphs 5, 6 and 7 shall be equalised to services for international transport of goods under Article 30 of the Act.(9) (New, SG No. 3/2007) In the cases of Paragraph 5 the provision of Article 127 of the Act shall not apply.Supply of Services for Sale of Airplane Tickets for InternationalTransport of PassengersArticle 37. For the purposes of proving the supply of services for sale of airplane tickets with place of transaction within the territory of the country, provided in connection with international transport of passengers, the supplier shall have the following documents:1. a contract for the provision of intermediary services in connection with the sale of airplane tickets for international transport;2. a report on the sales of airplane tickets, drawn up and presented by the airline company in accordance with the contract with this airline company, which contains the following compulsory requisites: name of the airline company, number of the ticket, destination of the flight, the unit price per ticket, the amount of the discount (commission fee);3. a report on the sales of airplane tickets containing compulsory requisites including the name of the airline, the number of the ticket, the flight destination, the unit price per ticket and the amount of the fee for the sale of an airplane ticket;4. an invoice on the supply.Supply of Other Services Provided by Agents, Brokers and OtherIntermediariesArticle 38. (1) For the purposes of proving the supply of services under Article 36 (1) of the Act with place of transaction within the territory of the country, other than those referred to in Articles 36 and 37, the supplier shall have documents certifying that the services are provided in connection with supplies in respect of which the circumstances of Chapter Three of the Act exist.(2) For the purposes of proving the supply under Article 36 (2) of the Act with place of transaction within the territory of the country, the supplier shall have documents certifying that the services are provided in connection with supply of goods or services with place of transaction outside the Community.Adjustments of SuppliesArticle 39. (1) In case the supplier fails to obtain the documents under Articles 21 - 38 by the end of the calendar month following the calendar month in which the tax became chargeable, including advance payment on a supply, it shall be considered that the supply is subject to a 20% rate of tax.(2) In the cases under Paragraph 1 the tax shall be charged by the supplier by issuing a memorandum under Article 117 (2) of the Act.(3) The memorandum under Paragraph 2 shall be issued within 5 days effective as from the last day of the calendar month following the calendar month in which the tax for the supply became chargeable.(4) Where the supplier obtains the required documents subsequently, the supplier shall adjust the result of the application of Paragraphs 1 and 2 by cancelling the memorandum under Paragraph 2. No new memorandum shall be issued for the cancellation.(5) Cancellation under Paragraph 4 shall be effected within 5 days effective as from the date on which the person obtained the required documents.(6) (New, SG No. 101/2006) In the cases of Paragraph 4 where the taxable amount of the supply is lower than the advance payment received, a tax shall be charged on the difference at a rate of 20 per cent by issuing a new memorandum under Article 117 (2) of the Act .(7) (New, SG No. 101/2006) The memorandum under Paragraph 6 shall be issued within the time limits referred to in Paragraph 5.Accommodation Provided by a Hotelier, Where Part of a Package TourArticle 40. For the purposes of proving the supplies under Article 66 (2) of the Act, the supplier shall have the following documents:1. a document certifying that the accommodation is part of a package tour;2. a copy of the register of accommodated tourists;3. a certificate of category of the tourist place;4. an invoice on the supply, except for the cases where issuance thereof is not compulsory under Article 113 (3) of the Act.Chapter FiveEXEMPT SUPPLIESSupply of Prostheses Linked to Health CareArticle 41. Prostheses within the meaning of Item 3 of Article 39 of the Act shall be the prostheses within the meaning of the Regulations for the Application of the Integration of Persons with Disabilities Act adopted by Council of Ministers' Decree No. 343 of 2004 (promulgated in the State Gazette No. 115/2004; amended, No. 31/2005, No. 63/2005 - Decision of Supreme Administrative Court No. 7081/2005 on administrative case No. 4402/2005, No. 78/2005, No. 54/2006, No. 58/2006 - Decision of Supreme Administrative Court No. 7623/2006 on administrative case No. 2426/2006).Financial Services and Insurance Services(Title supplemented, SG No. 101/2006) Article 42. (1) (Previous Article 42, SG No. 101/2006) Derivatives of securities within the meaning of Article 46 (5) of the Act shall be: investment portfolios, bond coupons, etc.(2) (New, SG No. 101/2006) An exempt supply within the meaning of Article 47 of the Act shall also be the execution of services under the conditions and in accordance with the procedure of the Insurance Code by reinsurers.(3) (New, SG No. 16/2007) The taxable amount of the financial services (transactions) for purchase and sale (exchange) of foreign currency provided as primary activity shall be the positive difference (positive margin) between income and expenses on forex operations reported under the Accountancy Act and the applicable accounting standards, realised in the tax period. Income and expenses from subsequent measurements (revaluations) of foreign currency shall not be taken into account in the calculation of the taxable amount.(4) (New, SG No. 16/2007) Where fees and commissions are agreed for the services under Paragraph 3, they shall be added to the taxable amount formed under Paragraph 3, including the cases where the value of such fees and commissions is zero.(5) (New, SG No. 16/2007) The taxable amount formed under the terms of Paragraph 3, Paragraph 4 respectively, may be recorded in the sales log on one line.Supply of Postage Stamps and Postal ServicesArticle 43. (1) An indication equivalent to postage stamps within the meaning of Item 1 of Article 49 of the Act shall be an imprint of a postage stamp on an envelope issued and circulated in accordance with the legally prescribed procedure. The imprint made by a charging machine under the control of a post office shall not be deemed to be an indication equivalent to postage stamps.(2) A universal postal service within the meaning of Item 2 of Article 49 of the Act shall be a universal postal service within the meaning of Chapter Four, Section I of the Postal Services Act.Supply of Buildings and Parts ThereofArticle 44. (1) Taxable supplies shall furthermore be the supplies of parts of a building which meet the definition of Item 5 of 1 of the supplementary provision of the Act.(2) Upon supply of a building comprised of parts in respect of which the circumstances under Item 5 of 1 of the supplementary provision of the Act exist as well as parts in respect of which such circumstances do not exist, exempt shall be only the supply of the parts of buildings in respect of which the circumstances do not exist.(3) In the cases of Paragraph 2 the supplier shall document the supplies as follows:1. by issuing separate invoices for the taxable supply and for the exempt supply, or2. by issuing a common invoice in which the data under Items 11 - 14 of Article 114 (1) of the Act are recorded on separate lines for the taxable supply and the exempt supply respectively.(4) (New, SG No. 101/2006) In the cases of Paragraph 2 the related terrain to the parts of a building for which the circumstances of Item 5 of 1 of the supplementary provision of the Act exist shall be determined on the basis of the proportion between the parts of the building for which the circumstances exist and the total space of the building.Chapter SixCERTIFICATION OF EXISTING CIRCUMSTANCES OF INTRA-COMMUNITY SUPPLIESDocuments Certifying Intra-Community Supply of GoodsArticle 45. For the purposes of proving an intra-Community supply of goods, the supplier shall have the following documents:1. (amended, SG No. 101/2006) a document on the supply:(a) an invoice on the supply stating, where the recipient is registered for VAT purposes in another Member State, the VAT identification number of the recipient issued by a Member State under which the service was effected thereto;(b) a memorandum under Article 117 (2) of the Act - in the cases of intra-Community supply under Article 7 (4) of the Act;(c) a document under Article 168 (8) of the Act - where the supplier is a natural person other than a sole trader and is not registered under the Act;2. documents proving dispatch or transport of the goods from the territory of the country to the territory of another Member State:(а) a transport document or written confirmation by the recipient or a person authorized thereby, certifying the receipt of the goods on the territory of another Member State - where the transport is at the expense of the supplier or the recipient but is effected by a third party, or(b) a transport document or written confirmation by the recipient or a person authorized thereby, certifying the receipt of the goods on the territory of another Member State - where the transport is effected by the supplier, or(c) a written confirmation by the recipient, certifying the receipt of the goods on the territory of another Member State - where the transport is effected by the recipient.Adjustments for Intra-Community SuppliesArticle 46. (1) If the supplier of the service does not obtain the documents under Article 45 by the end of the calendar month following the calendar month in which the tax for the supply became chargeable, it shall be considered that the supply is subject to a 20% rate of tax.(2) In the cases under Paragraph 1 the tax shall be charged by the supplier by issuing a memorandum under Article 117 (2) of the Act.(3) The memorandum under Paragraph 2 shall be issued within 5 days effective as from the last day of the calendar month following the calendar month in which the tax for the supply became chargeable.(4) Where the supplier obtains the required documents subsequently, the supplier shall adjust the result of the application of Paragraphs 1 and 2 by cancelling the memorandum under Paragraph 2. No new memorandum shall be issued for the cancellation.(5) Cancellation under Paragraph 4 shall be effected within 5 days effective as from the date on which the person obtained the required documents.Chapter SevenTAXATION OF IMPORTSTaxable Amount upon Importation of GoodsArticle 47. (1) The value for customs purposes shall not be credited with the expenses incidental to the importation under Item 2 of Article 55 (1) of the Act in so far as said expenses are included in the value for customs purposes.(2) (Supplemented, SG No. 101/2006) The amount of the excise duty shall not be included in taxable amount under Article 55 of the Act where the goods are placed under excise duty suspension arrangement under the terms and according to the procedure of the Excise Duties and Tax Warehouses Act. (3) (New, SG No. 101/2006) On importation of goods under Article 16 of the Act under "temporary importation with partial exemption from duty" or "processing under customs control" procedure included in the taxable amount under Article 55 of the Act shall be the full amount of the customs duties determined by the customs authorities.Taxing upon Importation by Customs Authorities and Payment of Tax(Title supplemented, SG No. 101/2006) Article 48. (1) A tax upon importation of goods shall be charged regardless of whether the importer is a person registered or not registered under the Act.(2) In the cases of exemption upon importation no tax shall be due, but it shall be recorded in the customs declaration.(3) (New, SG No. 101/2006) No tax shall be charged upon placement of goods under free circulation arrangement after "temporary importation with partial exemption from duty" or "processing under customs control" procedure.(4) (New, SG No. 101/2006) Upon importation of goods under Article 16 of the Act under "temporary importation with partial exemption from duty" or "processing under customs control" procedure the tax charged by the customs authorities shall be remitted to the republican budget upon placement of the goods under the respective procedure.Charging of Tax by the Importer for Goods Imported for InvestmentProjects ImplementationArticle 49. (1) To exercise the right of taxing under Article 164 (2) of the Act the importer shall submit to the relevant customs office clearing the importation the following documents:1. a written customs declaration of importation wherein the importer states that it will use the special arrangements for VAT charging - in the cases of importation under Article 16 (1) and (2) of the Act;2. customs documents for completion of customs clearance wherein the importer states that it will use the special arrangements for VAT charging - in the cases of importation under Article 16 (3) of the Act;3. an order of the minister of finance issued pursuant to Article 166 (5) of the Act;4. a written declaration whereby the importer certifies that at the time of the importation the importer is a registered person under the Act and has no chargeable or unpaid tax liabilities or social insurance liabilities to the National Revenue Agency.(2) Before effecting the importation customs authorities may require information about the specific supply under the permission granted.(3) In the cases of Paragraph 1 the tax shall be recorded in the customs declaration and shall not be accounted for and customs authorities may admit release of the goods without the tax being effectively paid or secured.(4) The tax under Paragraph 3 shall be charged by the importer by a memorandum under Article 117 (2) of the Act, which shall be issued within 5 days effective as from the date of occurrence of the chargeable event under Article 54 of the Act.Charging of Tax by Importer in Other CasesArticle 50. (1) Where the importer under Item 6 of Article 58 (1) of the Act fails to obtain the documents under Article 45 by the end of the calendar month following the calendar month in which the chargeable event under Article 54 of the Act occurred, the tax on the importation shall become chargeable on the importer.(2) In the cases of Paragraph 1 the tax shall be charged by the importer by a memorandum under Article 117 (2) of the Act, which shall be issued within 5 days effective as from the last day of the calendar month following the calendar day in which the chargeable event under Article 54 of the Act occurred.(3) Where the supplier obtains the required documents subsequently, the supplier shall adjust the result of the application of Paragraphs 1 and 2.(4) In the cases of Paragraph 3 the adjustment shall be effected by the supplier by cancelling the memorandum under Paragraph 2. No new memorandum shall be issued for the cancellation.(5) The memorandum under Paragraph 4 shall be cancelled within 5 days effective as from the date on which the importer obtained the required documents.Exemption from Tax upon ImportationArticle 51. (1) In cases of exemption from tax upon importation of textbooks and teaching aids the importer under Item 1, "a" of Article 41 of the Act shall submit to the competent customs office a copy of a document whereby the textbooks and teaching aids are approved by the minister of education and science or the minister of culture.(2) In cases of tax exemption upon importation under Item 6 of Article 58 (1) of the Act the importer shall submit to the competent customs office the following documents:1. a copy of the certificate of registration under Article 104 of the Act;2. a declaration in writing whereby the importer certifies that at the time of effecting the importation the importer is a registered person under the Act;3. transport documents stating that the goods are intended for another Member State.(3) (Amended, SG No. 16/2007) In cases of tax exemption upon importation under Item 10 of Article 58 (1) of the Act the importer shall submit to the competent customs office a license granted in accordance with the Energy Act . according to which the person is authorized to make importation of electricity and natural gas.(4) In cases of tax exemption upon importation under Item 17 of Article 58 (1) of the Act the importer shall submit to the competent customs office a memorandum or another document proving that the goods are returned on claim concerning quality or non-observance of standards.Provision of Security in respect of Tax upon ImportationArticle 52. The provisions of Article 59 of the Act shall furthermore apply to cases where the director of the National Customs Agency has exercised the right to determine another amount of the security for the customs duties or to approve exemption from security in accordance with the Customs Act and the regulations for its application.Chapter EightASSESSMENT OF TAX LIABILITY AND CHARGING OF TAXCalculation of the Tax for Every SupplyArticle 53. (1) The amount of the tax due for each supply shall be calculated in accordance with the following formula: T - the amount of the tax due for the specific supply;TA - the taxable amount for the specific supply;RT - the rate of tax as applicable.(2) Where in accordance with the Act the tax is assumed as included in the declared or agreed price, the amount of the tax shall be calculated in accordance with the following formula: T - the amount of the tax due for the specific supply;P - the agreed price with the tax included or the declared retail price for the specific supply;RT - the rate of tax as applicable.(3) In case of free of charge taxable supplies of goods or services under Article 6 (3) and Item 4 of Article 9 (2) and Article 9 (3) of the Act the charged tax shall be at the expense of the supplier.(4) (New, SG No. 16/2007) Free of charge supply of the services under Item 2 of Article 9 (3) of the Act shall be deemed to be tax exempt supply where the supplied services are subject to exemption upon their receipt.Charging of TaxArticle 54. A registered person in respect whereof the tax has become chargeable shall charge it by:1. issuing a tax document stating the tax on a separate line;2. including the amount of the tax in the calculation of the result for the corresponding tax period in the VAT return under Article 116 for such tax period;3. recording the document under Paragraph 1 in the sales log under Article 113 for the corresponding tax period.Charging of Tax for Supplies of Goods and Servicesfor Advertising PurposesArticle 55. (1) Any registered person shall charge tax upon free of charge provision of goods and free of charge rendering of services for advertising purposes.(2) Paragraph 1 shall not apply and no tax shall be charged in the cases of free of charge supply of goods or free of charge supply of services of negligible value, for advertising purposes for the purpose of independent economic activity of the person, where supply under Item 2 of Article 6 (4) or Item 4 of Article 9 (4) of the Act does not exist.Chapter NineSPECIAL CASES OF RIGHT TO DEDUCT CREDIT FOR INPUT TAXImportation of Goods under Inward Processing ArrangementArticle 56. (Amended, SG No. 101/2006) (1) The right to deduct credit for input tax for the tax paid in the cases of importation shall be exercised and the customs declaration, the document certifying completion of customs formalities respectively, shall be recorded in the purchases log for the respective period.(2) A right to deduct credit for input tax exists also for the tax paid in the cases of importation of goods:1. under inward processing and refunding system. system arrangement;2. under processing under customs control procedure;3. under temporary importation with partial exemption from duty procedure;4. under Article 16 (3) of the Act.Goods and Services of Negligible Value for Advertising PurposesArticle 57. (1) The person shall have the right to deduct credit for input tax for received goods and services of negligible value for advertising purposes where such goods or services were, are or will be used for advertising of the supplies effected by the person, which are taxable within the meaning of Article 69 of the Act.(2) The person shall have the right to deduct a partial credit for input tax in respect of the tax on received goods or services of negligible value for advertising purposes where such goods or services were, are or will be used for advertising of supplies effected by the person in respect of which the right to deduct credit for input tax exists and for exempt supplies or supplies or activities in respect of which the person has no such right.Right to Deduct Credit for Input Tax upon Cancellation, Loss,Destruction or Theft of Tax Documentand upon Absent Document in the Cases of Intra-Community Acquisition(Title supplemented, SG No. 16/2007) Article 58. (1) In the event of cancellation of erroneously drafted or corrected documents under Article 116 of the Act the registered person may exercise its right to deduct credit for input tax on the basis of the newly issued tax document under Article 116 (1) of the Act, provided that the registered person holds a memorandum under Article 116 (4) of the Act.(2) In the event of a loss, destruction or theft of the original of a document, the registered person may exercise its right to deduct credit for input tax, notifying thereof the National Revenue Agency territorial directorate whereat the said person is registered and providing the issuer with a copy of the document certified thereby with signature and seal, to be kept in its accounting office.(3) (New, SG No. 16/2007) In the cases of Intra-Community acquisition of goods in regard to the actual receipt of goods under Article 6 (2) the right to deduct credit for input tax may also be exercised where the supplier of the goods has not issued a document in accordance with the provisions of Article 114 of the Act. (4) (New, SG No. 16/2007) In the cases of Paragraph 3 the person performing the acquisition shall have other documents ascertaining the taxable amount of the actually received goods under Article 6 (2).(5) (New, SG No. 16/2007) In the event of intra-Community acquisition of goods under Article 13 (3) the right to deduct credit for input tax shall be exercised only on the basis of the memorandum under Article 117 (2) and provided that the person has met the requirements of Article 86 of the Act. Right of Credit for Input Tax upon Public Auction under Tax andSocial-Insurance Procedure Code or under Code of Civil Procedureor Sale under Registered Pledges Act and Credit Institutions ActArticle 59. (Supplemented, SG No. 101/2006) Any registered person may exercise the right to deduct credit for input tax on the basis of the document under Article 83 (1) in compliance with the general requirements for the exercise of said right.Right to Credit for Input Tax in cases of Legal Successionunder Article 10 of the Act Article 60. (1) In the cases of legal succession under Article 10 of the Act the legal successor shall have the right to deduct credit for input tax for goods and services received where the following conditions are met simultaneously:1. the transforming corporation, the transferor or the contributor of a non-cash asset has not exercised its right to deduct credit for input tax;2. the time limit under Article 72 (1) of the Act has not expired, within which the transforming corporation, the transferor or the contributor of a non-cash asset should have exercised its right to deduct credit for input tax;3. the received goods or services will be used for the purposes of the taxable supplies within the meaning of Article 69 of the Act effected by the legal successor;4. the supplier of the goods or services is a registered person under the Act at the date of issue of the tax document and the supply is taxable at that time.(2) In the cases of legal succession under Article 10 of the Act, the legal successor shall furthermore have the right to deduct credit for input tax for the received goods or services for which the transforming corporation, the transferor or the contributor of a non-cash asset has not had the right to deduct credit for input tax where the following conditions are met simultaneously:1. the received goods or services will be used for the purposes of the taxable supplies within the meaning of Article 69 of the Act effected by the legal successor and the supplier of the goods and services is a registered person under the Act at the date of issue of the tax document and the supply is taxable at such date;2. the goods or services are acquired by the transforming corporation, the transferor or the contributor of a non-cash asset within 5 years, and for immovable things, within 20 years before the date of entry in the commercial register of the respective circumstance under Article 10 of the Act.(3) In the cases of Paragraphs 1 and 2, where the goods and services will be used for both taxable supplies under Article 69 of the Act and for exempt supplies or supplies and activities not entitled to credit for input tax, a right to deduct partial credit for input tax shall exist for the charged tax, calculated under the terms of Article 73 of the Act.(4) The right to deduction under paragraphs 1 and 2 shall be exercised where the following conditions obtain:1. the legal successor has a copy of the tax document, drawn up in accordance with the provisions of Articles 114 and 115 of the Act , wherein the tax is stated on a separate line - in respect of supplies of goods or services whereon the recipient is the transforming corporation, the transferor or the contributor of a non-cash asset;2. (amended, SG No. 3/2007) the legal successor has a copy of a memorandum under Article 117 (2) of the Act, issued by the transforming corporation, the transferor or the contributor of a non-cash asset - in the cases where the tax is chargeable from the transforming corporation, the transferor or the contributor of a non-cash asset as a payer under Article 82 (2) and (3) of the Act;3. the legal successor has a copy of a customs declaration, customs documents respectively, certifying completion of customs clearance wherein the transforming corporation, the transferor or the contributor of a non-cash asset is specified as an importer and the tax is paid under the terms of Article 90 (1) of the Act - in the cases where the transforming corporation, the transferor or the contributor of a non-cash asset is an importer;4. the legal successor has a copy of a customs declaration, customs documents respectively, certifying completion of customs clearance wherein the transforming corporation, the transferor or the contributor of a non-cash asset is specified as an importer, and a memorandum under Article 117 (2) of the Act issued by the transforming corporation, the transferor or the contributor of a non-cash asset - in the cases where the tax is chargeable from the importer under the terms of Article 57 (1) and Article 58 (2) of the Act ;5. the legal successor has a copy of a document which meets the requirements of Article 114 of the Act , wherein the transforming corporation, the transferor or the contributor of a non-cash asset is specified as a recipient, and a copy of the memorandum under Article 117 (2) of the Act issued by the transforming corporation, the transferor or the contributor of a non-cash asset - in the cases of intra-Community acquisition under Article 84 of the Act by the transforming corporation, the transferor or the contributor of a non-cash asset;6. has a copy of a document under Article 83 (1) - in the cases where the transforming corporation, the transferor or the contributor of a non-cash asset has acquired a movable thing under Article 131 (1) of the Act.(7) (new, SG No. 3/2007) the legal successor has a copy of a document which meets the requirements of Article 114, wherein the transforming corporation, the transferor or the contributor is indicated as the recipient, and a copy of a memorandum under Article 117 (2) issued by the transforming corporation, the transferor or the contributor in the cases where the tax is chargeable from the transforming corporation, the transferor or the contributor as payer under Article 82 (4) and (5) of the Act .(5) The legal successor under Article 10 of the Act shall make an inventory in standard form - appendix No. 7 - of received goods and services under Paragraphs 1 and 2.(6) The inventory under Paragraph 5 shall be submitted to the National Revenue Agency territorial directorate at registration of the legal successor within 30 days effective as from the date of entry in the commercial register of the respective circumstance under Article 10 of the Act.(7) The right to deduct credit for input tax under Paragraphs 1 and 2 shall be exercised in the tax period in which it occurred or in one of the following three tax periods and the document under Paragraph 4 included in the inventory under Paragraph 5 shall be recorded in the purchases log and included in the calculation of the net tax for the relevant tax period.(8) The right to deduct credit for input tax under Paragraphs 1 and 2 shall not occur and may not be exercised if the inventory under Paragraph 5 is submitted after the time limit under Paragraph 6.Right to Deduct Credit for Input Tax for Assets Availableand Services Received before Registration Date or beforeRe-registration DateArticle 61. (1) The right to deduct credit for input tax under Article 74 of the Act shall occur only in respect of any assets available at the date of registration or services received before the date of registration recorded in the registration inventory in a standard form - appendix No. 2 - which shall be submitted not later than seven days from the registration date.(2) The right to deduct credit for input tax under Article 76 of the Act shall occur only in respect of any assets available at the date of re-registration recorded in the registration inventory in a standard form - appendix No. 3 - which is submitted not later than seven days from the re-registration date.(3) In the cases of Paragraphs 1 and 2 where the asset was used, is used or will be used for both taxable and exempt supplies or for supplies or activities in respect of which no right to deduct credit for input tax exists, a right to partial credit for input tax shall exist for the charged tax, calculated under the terms of Article 73 of the Act.(4) The right to deduct credit for input tax under Paragraphs 1 and 2 shall be exercised in the tax period in which it occurred or in one of the following three tax periods and the respective document under Article 71 of the Act shall be recorded in the purchases log for the relevant tax period.(5) The right to deduct credit for input tax under Paragraphs 1 and 2 shall not occur and may not be exercised if the inventory under Paragraphs 1 and 2 is submitted after the time limit under Paragraphs 1 and 2.Chapter TenRESTRICTIONS OF THE RIGHT TO DEDUCT CREDIT FOR INPUT TAXGoods and Services for Business or Entertainment PurposesArticle 62. (1) Business or entertainment purposes within the meaning of Item 3 of Article 70 (1) of the Act shall be: welcome, stay and seeing off of guests and delegations; accommodation; consumption of food and drinks; arrangement of business meetings; celebrations, entertainment; excursions.(2) Paragraph 1 shall not apply in respect of organization of symposia, congresses, conferences and other similar events directly related to the presentation or testing of the goods and services offered by the person within its independent economic activity.Goods and Services of Negligible Value for Advertising PurposesArticle 63. The registered person shall not have the right to deduct credit for input tax for received goods and services of negligible value where the advertised supplies are exempt supplies or supplies or activities in respect of which no right to deduct credit for input tax exists.Chapter ElevenADJUSTMENTS OF CREDIT FOR INPUT TAX USEDCalculation of the Factor under Article 73 (2) of the Act Article 64. (1) For the purposes of calculating the factor under Article 73 (2) of the Act the following supplies shall not be included in the turnover under Article 73 (3):1. Article 6 (4), Article 9 (4), Article 10 (1) and (3), Article 129 of the Act;2. a supply resulting from a request or an act of a central or local government authority or in pursuance of the law where no compensation is provided.(2) For the purposes of calculating the factor under Article 73 (2) of the Act the following supplies shall not be included in the turnover under Article 73 (4) of the Act:1. supplies under Paragraph 1;2. interest received on current and deposit accounts; this does not refer to:(а) credit and financial institutions within the meaning of the Credit Institutions Act;(b) insurance companies within the meaning of the Insurance Code;(c) collective investment schemes, investment companies and management companies under the Public Offering of Securities Act, social insurance companies, pension funds and management companies under the Social Insurance Code, health insurance companies under the Health Insurance Act.(3) (Amended, SG No. 16/2007) The person itself shall calculate the factors under Article 73 of the Act, shall round them up under the terms of Article 85 (3) and shall have the data necessary for calculation thereof.Annual Adjustment under Article 73 (8) of the Act Article 65. (1) The difference under Article 73 (8) of the Act shall be calculated in accordance with the following formula:AA = Tdpcit x Fcy - CIPUcy, where:AA shall be the amount of the annual adjustment under Article 73 (8) of the Act ;Tdpcit - tax with right to deduct partial credit for input tax for current year;Fcy - the factor under Article 73 (2) of the Act for the current year;CIPUcy - total amount of credit for input tax used in the current year.(2) (Supplemented, SG No. 101/2006, amended, SG No. 3/2007) The amount of the annual adjustment under Paragraph 1 shall be stated in cell 43 of Appendix No. 13 for the last tax period with "+" or "- sign. A memorandum under Article 117 (2) of the Act shall be drawn up for the adjustment, wherein the requisites under Items 3 to 7 of Article 117 (2) shall not be completed and the amount of the annual adjustment under Article 73 (8) shall be stated with a "+" or "-" sign. The memorandum shall be issued on the last day of the last tax period at the latest and shall be recorded in the purchases log for the last tax period.Adjustments of Credit for Input Tax Used(Title amended, SG, No. 101/2006) Article 66. (1) The adjustments under Article 73 (1) and (3) of the Act shall be made by issuing a memorandum which shall contain:1. number, date;2. name and identification number of the person under Article 94 (2) of the Act;3. grounds for the adjustment;4. description of the goods or service;5. amount of credit for input tax used;6. number of years under Article 79 (6) of the Act;7. amount of tax due under Article 79 (6) of the Act.(2) The memorandum under Paragraph 1 shall be issued not later than the last day of the tax period in which the circumstances for the adjustment arose.(3) The adjustment under Article 79 (2) of the Act shall be made by issuing a memorandum which shall contain:1. number, date;2. name and identification number of the person under Article 94 (2) of the Act;3. grounds for the adjustment;4. description of the goods or service;5. amount of credit for input tax used;6. number of years under Article 79 (7) of the Act;7. a factor under Article 79 (7) of the Act;8. amount of tax due under Article 79 (7) of the Act.(4) The memorandum under Paragraph 3 shall be issued not later than the last day of the last tax period of the year in which the circumstances for the adjustment arose.(5) The memorandums under Paragraphs 1 and 3 shall be recorded in the sales log and the VAT return for the tax period in which they were issued.(6) (New, SG No. 101/2006) A registered person which has fully or partially deducted credit for input tax on goods produced, purchased, acquired or imported thereby and subsequently effects an intra-Community free of charge supply therewith, shall owe a tax in the amount of the credit for input tax used.(7) (New, SG No. 101/2006) The adjustment under Paragraph 6 shall be made by issuing a memorandum which shall contain:1. number and date;2. name and identification number of the person under Article 94 (2) of the Act;3. grounds for the adjustment;4. type and quantity of the goods;5. amount of due tax (credit for input tax used);(8) (New, SG No. 101/2006, amended, No. 3/2007) The memorandum under Paragraph 7 shall be issued not later than the last day of the tax period in which the tax on the free of charge intra-Community supply became chargeable and shall be recorded in the sales log for said tax period.Adjustments of Credit for Input Tax Used in Other CasesArticle 67. (1) In the cases of Article 79 (8) of the Act the registered person has the right to credit the amount of the partial credit for input tax used with an amount calculated under the following formula:1. for immovable things: whereICIT is the increase of the amount of partial credit for input tax used;Tdpcit - the tax with right to deduct partial credit for input tax;Fydpcit - the factor under Article 73 (2) of the Act, calculated on the basis of the turnovers for the year in which the right to deduction of partial credit of input tax was exercised;NoY - the number of years from occurrence of the circumstances under Article 79 (8) of the Act , excluding the year of occurrence of the circumstances, until expiration of the 20-year time limit, effective as from the year of exercise of the right to deduct partial credit for input tax inclusive;2. for all other goods or services: where:ICIT is the increase of the amount of partial credit for input tax used;Tdpcit - the tax with right to deduct partial credit for input tax;Fydpcit - the factor under Article 73 (2) of the Act, calculated on the basis of the turnovers for the year in which the right to deduction of partial credit of input tax was exercised;NoY - the number of years from occurrence of the circumstances under Article 79 (8) of the Act, excluding the year of occurrence of the circumstances, until expiration of the 5-year time limit, effective as from the year of exercise of the right to deduct partial credit for input tax inclusive.(2) The increase under Paragraph 1 shall be effected by issuing a memorandum, which shall contain:1. number, date;2. name and identification number of the person under Article 94 (2) of the Act;3. grounds for the adjustment;4. description of the goods or service;5. charged tax with right to deduct partial credit for input tax;6. number of years under Paragraph 1;7. factor under Paragraph 1;8. increase of the amount of the credit for input tax under Paragraph 1.(3) The memorandum under Paragraph 2 shall be issued not later than the last day of the tax period in which the circumstances under Article 79 (8) of the Act occurred.(4) The right to deduct credit for input tax under Paragraph 1 shall be exercised by recording the memorandum under Paragraph 2 in the purchases log and in the VAT return for the last tax period of the year in which the time limit under Paragraph 1 expires and provided that the goods or services are used only for effecting taxable supplies under Article 69 of the Act for the period commencing from the period of occurrence of the circumstances under Article 79 (8) of the Act till the last day of the last tax period.(5) Where the person deregisters before the lapse of the time limit under Paragraph 1, the right to deduct credit for input tax shall be exercised by recording the memorandum under Paragraph 2 in the purchases log and in the VAT return for the last tax period under Article 87 (4) of the Act and provided that the goods or services are used only for effecting taxable supplies under Article 69 of the Act for the period from occurrence of the circumstances under Article 79 (8) of the Act until the last day of the tax period.(6) Where before the lapse of the time limit under Paragraph 1 the person effects a taxable supply of goods or service under Article 69 of the Act , the right to deduct credit for input tax under Paragraph 1 shall be exercised by recording the memorandum under Paragraph 2 in the purchases log and in the VAT return for the tax period in which the tax on the supply is charged and provided that the goods or services are used only for effecting taxable supplies under Article 69 of the Act from the period of occurrence of the circumstances under Article 79 (8) of the Act until the date on which the chargeable event for the supply occurred.Chapter TwelveSET-OFF, DEDUCTION AND REFUND OF NET TAX FOR PERIOD:INPUT TAX CLAIMABLEProcedure for Set-Off, Deduction and Refund of Net Tax forPeriod: Input Tax ClaimableArticle 68. (1) Where a registered person declares an input tax claimable in a VAT return submitted thereby for a specific tax period and the said person has chargeable and unpaid tax liabilities and liabilities for social insurance contributions at the date of submission of the VAT return the revenue authority shall set off such liabilities against the stated input tax claimable.(2) Subject to deduction under Article 92 (1) of the Act shall be any input tax claimable or the balance thereof after set-off, if such set-off is effected before submission of the next VAT return with the exception of:1. the input tax claimable subject to set-off or refund under the terms of Article 92 (3) and (4) of the Act ;2. the input tax claimable subject to set-off or refund together with the balance of another input tax claimable under the terms of Item 5 of Article 92 (1) of the Act.(3) If after submission of the three VAT returns under Item 2 of Article 92 (1) of the Act there is undeducted balance of the input tax claimable, the person shall state in cell 80 of the last VAT return the undeducted balance of the input tax claimable which is subject to set-off or refund within 45 days. If in any of the three VAT returns submitted an input tax claimable is declared, in respect of which Article 92 (3) and (4) of the Act does not apply, such tax shall be added to the undeducted balance of the input tax claimable and shall be stated in cell 80 of the last VAT return.(4) Where an input tax claimable which is subject to set-off or refund after completed deduction procedure is stated in cell 80 of the VAT return, the person shall submit in respect of such tax a statement of effected deduction in a standard form - appendix No. 6 - together with the VAT return.(5) The revenue authority may furthermore require submission of a statement of effected deduction in respect of another input tax claimable.Balance for RemissionArticle 69. (1) Where during an ongoing deduction procedure under Item 2 of Article 92 (1) of the Act a person declares in the VAT return submitted thereby for a specific tax period an output tax payable and after the deduction a balance remains of the output tax payable, such balance shall be due within the time limit under Article 89 of the Act.(2) Where during an ongoing deduction procedure under Item 2 of Article 92 (1) of the Act a person declares in the VAT return submitted thereby for a specific tax period an output tax payable which may be deducted with more than one input tax claimable, the deduction shall be effected consecutively with each input tax claimable in the order of occurrence thereof.Input Tax Claimable within 30 DaysArticle 70. (1) Where a registered person declares in a VAT return submitted thereby for a specific tax period an input tax claimable and in respect of the said person the circumstances under Article 92 (3) and (4) of the Act exist and such person wishes to apply this provision, the said person shall state in cells 81 and 82 of the VAT return for the period the input tax claimable which is subject to refund or set-off within 30 days.(2) The circumstances under Article 92 (3) and (4) of the Act shall be ascertained by the person by declaring them in the VAT return for the respective tax period.(3) In the cases referred to in Paragraph 1 the provisions of Article 68 (2) and (3) shall not apply and the input tax claimable shall not participate in the deduction procedure.Completion of Procedure for Deduction of Input Tax Claimable uponDeregistrationArticle 71. Where at the deregistration date the person is undergoing a procedure for deduction under the terms of Article 92 (1) of the Act, it shall be considered that the three one-month periods have lapsed at such date and the person shall state in cell 80 of the VAT return for the last tax period the balance of the input tax claimable after the deduction thereof.Chapter ThirteenREGISTRATIONVAT Identification NumberArticle 72. (1) Persons not registered under the Tax and Social-Insurance Procedure Code may not be registered under the Value Added Tax Act.(2) In the cases of registration under Article 152 of the Act the National Revenue Agency shall issue to the person an official identification number under Article 84 (3) of the Tax and Social-Insurance Procedure Code on the basis of the application submitted by the person under Article 95 (1).(3) Registration under the Value Added Tax Act of non-residents through accredited representative shall be effected by the competent National Revenue Agency territorial directorate whereat the accredited representative is registered or is subject to registration.(4) Upon registration under the Value Added Tax Act a VAT identification number shall be issued, containing the sign BG followed by the identification number of the person.(5) Upon registration under Article 152 of the Act the VAT identification number shall contain the sign EU.Obligations of the Persons Regarding Grounds for RegistrationArticle 73. (1) All taxable persons after the end of the calendar month shall determine their taxable turnover under Article 96 (2) of the Act for the 12 months preceding the current one.(2) All taxable persons and non-taxable legal persons which effect intra-Community acquisition of goods shall:1. determine on a current basis the total amount of intra-Community acquisitions for the current year, with the exception of acquisition of new means of transport and excisable goods;2. determine for the previous calendar year the sum total of the taxable amounts of the taxable intra-Community acquisitions, with the exception of acquisition of new means of transport and excisable goods;(3) All registered persons effecting supplies of goods under the terms of distance selling shall:1. determine on a current basis the total amount of the supplies of goods under the terms of distance selling for every individual Member State separately;2. determine for every of the two calendar years preceding the current one the taxable amounts of the effected supplies under the terms of distance selling for every individual Member State separately.Documents Linked to RegistrationArticle 74. (1) The application for registration under Article 101 (1) of the Act shall be submitted in a standard form - appendix No. 1.(2) The following documents shall be enclosed to the application for registration:1. a statement of the taxable turnover by month for the last 12 months preceding the current one - for registration under Article 96 (1) of the Act ;2. a statement of the total amount of taxable intra-Community acquisitions for the current year with the exception of acquisition of new means of transport and excisable goods - for registration under Article 99 (1) of the Act.(3) In the cases of registration pursuant to Article 133 of the Act, enclosed to the application for registration shall also be:1. a certificate by the competent tax authorities of current tax registration abroad of a non-resident person and a translation thereof;2. the original of a notary certified contract in the country between the non-resident person and the accredited representative on the occasion of assignment of obligations under Article 135 (2) and (3) of the Act;3. a certificate of current court registration of the person - accredited representative - or a copy of the identity documents where the latter is a natural person;4. a document by the competent tax authorities certifying registration for VAT purposes in another Member State - for the registration under Article 98 and Article 100 (3) of the Act ;5. a document by the competent tax authorities certifying that the latter authorities are notified that the person wishes the place of transaction of the distance sales effected thereby to be within the territory of the country - for registration under Article 100 (3) of the Act.(4) In the cases of registration under Article 132 of the Act enclosed to the application for registration shall be a copy of the court judgement on recording of the circumstance under Article 10 (1) of the Act in the commercial register.Registration CertificateArticle 75. (1) The certificate under Article 104 (1) and (2) of the Act shall be drawn up in a standard form - appendix No. 4.(2) The certificate under Article 104 (3) of the Act shall be drawn up in a standard form - appendix No. 5.Obligations of Accredited RepresentativeArticle 76. (1) Any accredited representative shall notify without delay the territorial directorate National Revenue Agency whereat the non-resident person is registered if circumstances arise which lead to the accredited representative being incapable of fulfilling his obligations under Article 135 (2) and (3) of the Act .(2) The accredited representative shall incur solidary and unlimited liability for the obligations of the non-resident person which have arisen on the date on which the accredited representative has assumed the obligations under Article 135 of the Act and where the non-resident person has nominated another accredited representative, until the date on which the other accredited representative has accepted to fulfil the obligations under Article 135 of the Act.Chapter FourteenTERMINATION OF REGISTRATION (DEREGISTRATION)Documents Linked to DeregistrationArticle 77. (1) The application for termination of registration (deregistration) under Article 109 of the Act shall be submitted in a standard form - appendix No. 8.(2) Enclosed to the application under Paragraph 1 shall be:1. a statement of the taxable turnover by months for the last 12 months preceding the current one;2. a statement of the total amount of taxable intra-Community acquisitions for the previous and current years, with the exception of acquisition of new means of transport and excisable goods;3. a statement of the sum total of the taxable amounts of the supplies under the terms of distance selling with place of transaction within the territory of the country, with the exception of the supplies of excisable goods, for the current year and for every of the two calendar years preceding the current one;4. (repealed, SG No. 16/2007); 5. the registration certificate(s) under Article 104 (1) and (2) of the Act.(3) In the cases of termination of registration on the grounds of Items 3 and 4 of Article 107 of the Act a copy of a court judgement certifying occurrence of the circumstances for termination of registration shall be enclosed to the application for deregistration.(4) (Amended, SG No. 16/2007) Together with the VAT return for the last tax period the person shall submit an inventory-memorandum for charging the tax under Article 111 of the Act according to a standard form - Appendix No. 9.(5) (New, SG No. 16/2007) The inventory-memorandum under Paragraph 4 shall be included in the sales log for the last tax period and in the net result for the last tax period stated in the VAT return for this tax period.Chapter FifteenDOCUMENTING SUPPLIESRequirements to Invoices and AdvicesArticle 78. (1) The forms of invoices and advices thereto issued by persons registered under the Act on grounds other than registration under Article 99, Article 100 (2) and Article 152 of the Act shall include the following printed requisites:1. sequence number;2. inscription "original" on the first counterpart;3. name, identification number of the person that will issue them;4. the VAT identification number under Article 94 (2) of the Act.(2) The numbers of the documents under Paragraph 1 shall be ten-digit, growing without any duplication and omissions, regardless of the type of form or document. Numbers of forms may duplicate only where they are issued from a fiscal device. All counterparts of any single document shall bear the same number.(3) The numbering of documents shall not depend on and be interrupted by the end of the calendar year. Where all possible numbers are exhausted, the person/branch shall re-start the numbering from "0000000001" upon advising the National Revenue Agency territorial directorate in writing thereof.(4) Where the person/branch has subdivisions or units, they may specify a range of numbers to be used by each subdivision (unit) in issuing tax documents thereby. The range shall be exhausted gradually over the next periods. Upon filling the range, a new range shall be assigned.(5) Faulty or damaged forms and cancelled documents shall not be destroyed and the issuer shall keep all counterparts thereof.(6) In the cases of cancellation of documents under Article 116 of the Act the memorandum under Article 116 (4) of the Act shall be kept by the issuer and the recipient.(7) Registered persons shall keep, use and report forms under the terms and procedures envisaged for the storage and reporting of documents in the Accountancy Act.(8) (New, SG No. 101/2006) The signature of the person who has prepared the document may be substituted by an identification code under Article 8 of the Accountancy Act.(9) (New, SG No. 101/2006) The invoices of intra-Community supplies issued by persons registered for VAT purposes in another Member State shall also be considered to meet the requirements of Article 114 of the Act in the cases where:1. the sequential number of the document is not a ten-character number or contains symbols other than Arabic numerals, or2. does not contain the requisites under Item 6 of Article 114 (1) of the Act.Issue of Invoices and AdvicesArticle 79. (1) Except for the cases of Article 113 (3) of the Act an invoice or advice thereto shall be issued regardless of whether the recipient is a registered or non-registered person under the Act.(2) An invoice/advice shall furthermore be issued for effecting supply with place of transaction outside the territory of the country within the economic activity of the person and no tax shall be charged in the invoice. The following shall be recorded in the invoice/advice as grounds for non-charging of tax under the Act:1. "Article 28с(Е)(3) 77/388/ЕЕС" - for supplies of goods as intermediary in a triangular operation;2. "Article 113 (9)" - for supplies of persons not registered under the Act or persons registered under Article 99 and Article 100 (2) of the Act;3. (amended, SG No. 101/2006, No. 3/2007) the relevant provision of the Act or the Regulations - for supply of services under Articles 22 - 24 of the Act;4. the relevant provision of the Act according to which the supply of goods or services is with place of transaction outside the territory of the country - for supply of goods and services other than those referred to in Items 1 - 3.(3) In case of supply with place of transaction within the territory of another Member State under the terms of distance selling, no grounds for non-charging of tax shall be recorded in the invoice/advice but the following shall be specified mandatorily:1. the VAT identification number of the person issued by the other Member State;2. the rate of tax as applicable in the other Member State;3. the amount of tax due on the supply.(4) In case of effecting exempt supply in the invoice/advice as grounds for non-charging of tax shall be specified the relevant provision of the Act pursuant to which the supply is exempt.(5) (New, SG No. 101/2006) For supply of single service to tourists in the invoice/advice as grounds for non-charging a tax shall be stated "Article 86 (1) of the RAVATA".(6) (New, SG No. 101/2006) For supply on which the tax is chargeable from the recipient of the supply in the invoice/advice as grounds for non- charging of tax shall be stated the relevant provision of the Act or the Regulations according to which the tax shall be charged from the recipient.(7) (Previous Paragraph 5, SG No. 101/2006) The original of the invoice/advice shall be submitted to the recipient of the supply.MemorandumsArticle 80 (1) The forms of memorandums issued by the persons registered under the Act, except for memorandums under Article 116 (4) of the Act, shall contain permanently printed requisites under Items 1, 3 and 4 of Article 78 (1).(2) The numbers of the memorandums shall be ascending without duplication and omissions and shall not depend on the type of the form. All counterparts of one memorandum shall have the same number.(3) The numbering of the forms of the memorandums does not depend on and shall not be interrupted by the end of the calendar year.(4) Where the person/branch of the person has subdivisions or units, the latter may specify a range of numbers to be used by each subdivision (unit) in issuing memorandums. The range shall be exhausted gradually over the next periods. Upon filling the range, a new range shall be assigned.(5) Incorrectly drawn up or corrected memorandums shall be cancelled and new ones shall be issued.(6) Faulty or damaged forms and cancelled memorandums shall not be destroyed and the issuer shall keep all the counterparts.(7) The provision of Article 78 (7) shall apply to the memorandums.Issue of MemorandumsArticle 81. (1) (Supplemented, SG No. 101/2006) For each individual supply the registered persons shall mandatorily issue a memorandum under Article 117 (2) of the Act in the following cases:1. (amended, SG No. 101/2006, No. 3/2007) where the person is a recipient on a supply under Article 82 (2), (4) and (5) of the Act , as well as where the person is an acquirer under Article 82 (3) and Article 84 of the Act; 2. where the person is an importer under Article 57 (1) and Article 58 (2) of the Act in connection with Article 49 (4) and Article 50 (2) herein;3. (supplemented, SG No. 101/2006) where the person is a supplier of goods and services under Article 6 (3) (including free of charge intra- Community supplies), Article 7 (4) and Article 9 (3) of the Act;4. where the person is a supplier of goods and services under Article 142 (1) and Article 144 (4) of the Act in connection with Article 87 (1) and Article 90 (1) herein;5. (amended, SG No. 101/2006) under Article 8 (6), Article 9 (4), Article 39, Article 46 (2), Article 67 (2), Article 100 (1) hereof.6. (new, SG No. 16/2007) upon utilization of Investment grants (subsidies) under Article 16.(2) (Amended, SG No. 101/2006) The memorandums under Paragraph 1 shall be completed in accordance with the requirements of Article 117 (2) of the Act in so far as otherwise provided for in this Regulations.(3) (New, SG No. 101/2006) In the cases of Item 1 of Paragraph 1 where the supplier is registered for VAT purposes in another Member State the memorandum under Paragraph 1 shall contain the following in addition to the requisites under Article 117 (2) of the Act :1. VAT identification number of the supplier under which the supply was effected, issued by another Member State;2. number and date of the invoice - where such has been issued until the date of issue of the memorandum.(4) (New, SG No. 101/2006) A memorandum under Article 116 (4) of the Act is not mandatorily issued where the date of issue of the cancelled document coincides with the date of issue of the new document.Issue of Tax Documents in Special CasesArticle 82. (1) Where after entry in the commercial register of the circumstances under Article 10 grounds for changing the taxable amount of a supply or grounds for rescission of a supply arise, the change shall be documented as follows:1. by issuing an advice to the invoice wherein the legal successor shall be stated as recipient - in cases where the transforming corporation, the transferor or the contributor under Article 10 of the Act was the recipient of the supply;2. by issuing an advice to the invoice wherein the legal successor shall be stated as supplier - in cases where the transforming corporation, the transferor or the contributor under Article 10 of the Act was the supplier;3. by issuing a memorandum under Article 117 (4) of the Act where the legal successor shall be stated as issuer - in cases where the tax was charged by the transforming corporation, the transferor or the contributor under Article 10 of the Act by issuing of a memorandum.(2) It shall be stated in the documents issued under Paragraph 1 that the supplier/recipient is the legal successor under Article 10 of the Act.(3) The legal successor under Article 10 of the Act shall have a copy of the tax document for the supply in respect of which the document under Paragraph 1 was issued.(4) Where after entry in the commercial register of the circumstances under Article 10 grounds arise for cancellation of a tax document under Article 116 of the Act , the legal successor under Article 10 of the Act shall be stated as the supplier, recipient respectively, in the new tax document and the memorandum under Article 116 (4) of the Act .Documenting of Supplies of Goods and Services upon Public Auction underTax and Social-Insurance Procedure Code or under Code of Civil Procedureor Sale under Registered Pledges Act and underCredit Institutions ActArticle 83. (1) In cases of sale under Article 131 (1) of the public enforcement agent, the bailiff or the pledgee shall execute a document of the sale, which shall contain the following requisites at a minimum:1. company name/name, address and identification number of the enforcement agent, the bailiff or the pledgee;2. company name/name, address, identification number, and VAT identification number of the debtor;3. company name/name, address, identification number, and VAT identification (if any) of the recipient (buyer);4. quantity and type of the goods or service;5. taxable amount and rate of tax;6. selling price of the thing under Article 131 (2) of the Act;7. date of issue of the document;8. name, surname and signature of the person who has executed the document.(2) The document under Paragraph 1 shall be issued in 3 counterparts within 5 days effective as from receipt of the full price on the sale.(3) Within the time limit under Paragraph 2 the public enforcement agent, the bailiff or the pledgee shall submit a notification in standard form - appendix № 20 - to the National Revenue Agency territorial directorate whereat the debtor is registered.(4) Where the thing has been awarded to the execution creditor on a motion thereby in payment of the claim thereof according to the procedure established by the Tax and Social-Insurance Procedure Code and by the Code of Civil Procedure, the supply shall be documented by the supplier (debtor) according to the standard procedure established in the Act. The taxable amount of the supply shall be determined in accordance with Article 131 (4) of the Act.Documenting of Damages and Interest of Compensatory NatureArticle 84. No tax document shall be issued for documentation of damages and interest of compensatory nature and the latter shall be documented by issuing a document certifying payment thereof.Chapter SixteenSUPPLIES UNDER SPECIAL ARRANGEMENTS FOR TAXINGSection IServices to TouristsArticle 85. (1) The tax on the supply of single service to tourists in the cases referred to in Article 136 of the Act shall be determined in accordance with the following formula: TA is the total amount, which the tour operator or the travel agent has received or will receive from the customer or the third party for the supply, including any subsidies and investment grants directly linked to such supply, the taxes and fees, as well as the incidental expenses such as commission and insurance, charged by the supplier to the recipient but exclusive of any trade discounts granted;PTot - the total taxable amounts and the tax on the supplies of goods and services received by the tour operator or the travel agent from other taxable persons for the direct benefit of the tourist;RT- the rate of tax at 20%.(2) Where the provision of Article 140 of the Act applies, the tax shall be determined according to the following formula: TA is the total amount, which the tour operator or the travel agent has received or will receive from the customer or the third party for the supply, including any subsidies and investment grants directly linked to such supply, the taxes and fees, as well as the incidental expenses such as commission and insurance, charged by the supplier to the recipient but exclusive of any trade discounts granted;PTot - the total taxable amounts and the tax on the supplies of goods and services received by the tour operator or the travel agent from other taxable persons for the direct benefit of the tourist;RT- the rate of tax at 20%.F - a factor rounded up to the second digit after the decimal place and determined in accordance with the following formula: P is the total of the taxable amounts and the tax on the supplies of goods and services received by the tour operator or the travel agent from other taxable persons for the direct benefit of the tourist and whose place of transaction is within the territory of third countries and territories.(3) (New, SG No. 101/2006) The rounding shall be made in accordance with the following rule:0,120 0,125 0,121 0,126 0,122 = 0,12 0,127 = 0,130,123 0,128 0,124 0,129 Documenting of Supply of Single Service to TouristsArticle 86. (1) Tour operators and travel agents shall document the supplies of single service to tourists provided thereby, including advance payments received on such supplies, by issuing invoices and advices to invoices wherein no tax shall be stated.(2) Invoices under Paragraph 1 shall be issued within 5 days from the date of payment (full or partial advance payment) or from the date of occurrence of the chargeable event for the supply, and advices to invoices under Paragraph 1, within 5 days from the alteration of the total amount which the tour operator or the travel agent has received or will receive from the customer or the third party for the supply.(3) (Amended, SG No. 101/2006) The invoices and advices to invoices under Paragraph 1 shall be recorded in the sales log for the tax period in which they are issued and the information in columns 9 - 25 of appendix № 10 shall not be completed.(4) (New, SG No. 101/2006) For supplies of services to tourists the tour operator or the travel agent shall prepare a report on sales effected in the tax period under Article 120 (1) of the Act , which shall not be included in the sales log.Charging of TaxArticle 87. (1) Upon occurrence of a chargeable event for the supply of single service to tourists the tour operator or the travel agent shall charge the tax for the supply of the single service to tourists effected by them by issuing a memorandum not later than 5 days from the occurrence of the chargeable event.(2) Besides the requisites under Article 117 (2) of the Act the memorandum under Paragraph 1 shall furthermore contain number and date of the tax documents issued in connection with the supply.(3) In case of alteration of the taxable amount of the supply in respect of which a memorandum under Paragraph 2 is issued, the correction shall be made within 5 days from the occurrence of the alteration, whereby a correction memorandum shall be issued, which shall satisfy the provisions of Article 117 (4) of the Act .(4) (Amended, SG No. 101/2006) The memorandums under Paragraphs 2 and 3 shall be recorded in the sales log for the relevant tax period and the information in columns 9 - 25 of appendix № 10 shall be completed in respect thereof.Section IISupply of Second-Hand Goods, Works of Art, Collectors'Items and AntiquesSupply of Second-Hand Goods, Works of Art, Collectors'Items and AntiquesArticle 88. (1) (Previous wording of Article 88, SG No. 101/2006) The tax on the supply of goods under special arrangements for taxing the margin under Chapter Seventeen of the Act shall be determined according to the following formula: T is the tax due for the supply;Ps - the total amount which the taxable dealer has received or will receive from the customer or the third party for the supply, including any subsidies and investment grants directly linked to such supply, the taxes and fees, as well as the incidental expenses for packing, transport, commission and insurance, charged by the supplier to the recipient but exclusive of any trade discounts granted;Pp - the amount which has been paid or will be paid for the goods received by the persons under Article 143 (1) and (3) of the Act , including the tax under the Act, and where the goods are imported, the taxable amount upon importation, including the tax under the Act;RT - the rate of the tax applicable to the supplies under Chapter Seventeen of the Act.(2) (New, SG No. 101/2006) The right of option under Article 143 (3) of the Act shall be exercised by means of submission of a notification according to a standard form set out in Appendix No. 23.Documenting of SuppliesArticle 89. (1) (Supplemented, SG No. 16/2007, effective 20.02.2007) Taxable dealers shall document the supplies effected thereby under special arrangements for taxing the margin by issuing invoices and advices to invoices wherein "Article 143 of the Act " shall be stated. The taxable amount and tax shall not be stated in the invoices and advices thereto.(2) (Amended, SG No. 101/2006) The invoices and advices to invoices under Paragraph 1 shall be recorded in the sales log for the relevant period and the information in columns 9 - 25 of appendix № 10 shall not be completed.Charging of TaxArticle 90. (1) At the end of every tax period the taxable dealers shall charge the tax for the supplies under Chapter Seventeen of the Act effected thereby by issuing a memorandum.(2) The memorandum under Paragraph 1 shall contain the following information:1. number and date;2. name, identification number and VAT identification number of the issuer;3. tax period;4. description of the goods - second-hand, works of art, collectors' item or antique;5. purchase price of the goods under Item 4;6. selling price of the goods under Item 4;7. difference between the total amount of the selling prices under Item 6 for the period and the total amount of the purchase prices under Item 5 for the period;8. tax charged for the period.(3) A separate memorandum shall be issued for sales upon public auction.(4) (Amended, SG No. 101/2006) The memorandums under Paragraphs 2 and 3 shall be recorded in the sales log for the relevant tax period and the information in columns 9 - 25 of appendix № 10 shall be completed in respect thereof.Credit for Input TaxArticle 91. Where the taxable dealer has not exercised the right under Article 143 (3) of the Act, the right to deduct credit for input tax for imported and acquired goods under Items 1 and 2 of Article 143 (3) shall occur and shall be exercised according to the standard procedure of the Act.Annual AdjustmentArticle 92. (1) Where the credit for input tax under Article 147 (1) of the Act used during the year exceeds the tax charged during the year on the supplies under Chapter Seventeen of the Act, a tax to the amount of the excess shall be chargeable from the registered dealer.(2) In the cases of Paragraph 1 the excess shall be declared in the VAT return for the last tax period as annual adjustment in cell 43 of appendix № 13 for the last tax period.Average Margin of DealerArticle 93. (1) (Amended, SG No. 101/2006) The average margin of a dealer shall be determined on the basis of effected supplies under Chapter Seventeen of the Act for the last 12 months preceding the date of deregistration of the dealer in accordance with the following formula: AM is the average margin of the dealer rounded up to the second digit after the decimal place;TPS - the total amount of PS under Article 88 for the period;TPP - the total amount of PP under Article 88 for the period;(2) The tax upon deregistration of a dealer shall be determined in accordance with the following formula: T is the tax due on the occasion of the dealer's deregistration on available second-hand goods, works of art, collector's items and antiques;PP - the amount which has been paid or will be paid for the available goods, including the tax under the Act, and where the goods are imported, the taxable amount upon importation, including the tax under the Act;AM - the average margin determined in accordance with Paragraph 1;RT - the rate of the tax applicable to the supplies under Chapter Seventeen(3) The dealer shall be liable for tax under the standard procedure of the Act upon deregistration for the available assets in respect of which no tax has been charged under Paragraph 2.Sales ReportArticle 94. (1) In the cases referred to in Article 151 (6) of the Act for supplies in respect of which special arrangement of taxing has been applied under Chapter Seventeen of the Act , the taxable dealer shall prepare a sales report for the tax period under Article 120 (1) of the Act .(2) The report under Paragraph 1 shall not be included in the sales log.(3) The supply of goods other than those referred to in Paragraph 1 shall be reported under the standard procedure of the Act.Section IIISupplies of Services Supplied Electronically by Persons Who Are NotEstablished within Community.Electronic Application for Registration and DeregistrationArticle 95. (1) In the cases of registration under Article 152 of the Act and of deregistration under Article 153 (1) of the Act the persons shall submit electronically to the National Revenue Agency territorial directorate - Sofia, an application for registration, deregistration respectively.(2) The requisites, the format and the manner of sending electronic applications under Paragraph 1 shall be announced on the website of the NRA.Electronic RegisterArticle 96. (1) Any person registered under Article 152 of the shall be obligated to prepare and keep an electronic register for the supplies effected thereby under Chapter Eighteen of the Act.(2) The parameters and requirements to the structure of data in the electronic register under Article 120 (3) of the Act shall be in accordance with appendix № 18.DeclarationArticle. 97. The VAT return for every tax period under Article 157 (2) of the Act shall be prepared and submitted by the registered person under Article 119.Section IVInvestment GoldRight of OptionArticle 98. (1) Where the supplier wishes to exercise the right under Article 160 (2) of the Act, the said supplier shall state this, including in the tax document issued for the supply the wording "Article 160 (2) of the Act applies to this supply and in accordance with Item 2 of Article 161 (1) of VAT Act the tax will be charged from the recipient in the amount of ..... (the amount of VAT shall be specified)".(2) In the cases of Paragraph 1 the tax shall be charged from the recipient of the supply who is a person registered under the Act.Supply of Gold Materials and Semi-manufactured ProductsArticle 99. (1) Notwithstanding Article 82 (1) of the Act, the tax on the supply of gold materials or semi-manufactured products of a purity of 325 thousandths or greater shall be charged from the recipient who is a person registered under the Act.(2) In the cases referred to in Paragraph 1 the supplier shall state in the tax document issued the wording "Pursuant to Item 1 of Article 161 (1) of VAT Act the recipient shall charge VAT in the amount of ..... (the amount of VAT shall be specified)".Charging of TaxArticle 100. (1) In the cases under Article 98 (2) and Article 99 (1) the tax shall be charged from the recipient by issuing a memorandum under Article 117 (2) of the Act.(2) The memorandum under Paragraph 1 shall be issued within 5 days effective as from the date on which the tax on the supply became chargeable.(3) In the cases of change of the taxable amount of the supply the change shall be documented by the recipient by issuing a memorandum under Article 117 (4) of the Act.(4) The memorandums under Paragraphs 1 and 2 shall be recorded in the sales log for the relevant tax period.(5) (New, SG No. 101/2006) The report on sales effected in the tax period under Article 120 (1) of the Act shall not be included in the sales log.Section VSpecial Arrangements for New Means of TransportReturn on Intra-Community Supply or Intra-Community Acquisition of NewMeans of Transport by Persons Who Are Not RegisteredArticle 101. (1) Any person not registered under the Act, who effects an intra-Community acquisition of a new means of transport referred to in Article 13 (2) of the Act or effects an incidental intra-Community supply of a new means of transport referred to in Article 7 (2) of the Act, shall be obligated to declare the intra-Community acquisition or the incidental supply as effected by submitting a return in a standard form - appendix № 19.(2) The return shall be submitted within 14 days after the lapse of the tax period during which the tax on the acquisition or the supply became chargeable. The return shall be submitted at the competent National Revenue Agency territorial directorate whereat the person is registered or is subject to registration under the Tax and Social-Insurance Procedure Code.(3) Enclosed to the return under Paragraph 1 shall be a copy of the document issued by the supplier, which shall contain the requisites under Items 3 - 15 of Article 114 (1) of the Act.Remittance of Tax upon Intra-Community Acquisition of New Means ofTransport by a Person Who Is Not RegisteredArticle 102. (1) The tax due on an intra-Community acquisition shall be remitted by the person under Article 101 within 14 days after the lapse of the tax period during which the tax on the acquisition became chargeable.(2) The tax shall be remitted to Executive Budget Revenue by crediting an account of the National Revenue Agency territorial directorate whereat the person is registered or is subject to registration under the Tax and Social-Insurance Procedure Code.Refund of Tax upon Subsequent Intra-Community Supply of aNew Means of Transport by a Person Who Is Not RegisteredArticle 103. (1) The right to refund tax under Article 168 (5) of the Act shall be exercised whereby the person who effects an intra-Community supply of the new means of transport shall specify the amount of the input tax claimable in the return for the intra-Community supply under Article 101 (1).(2) In the cases under Paragraph 1, the following documents shall be enclosed to the return:1. a copy of a document certifying the acquisition of the new means of transport:(а) an invoice satisfying the requirements of Article 114, where the means of transport is purchased within the territory of the country, or(b) a customs declaration, a customs document respectively, certifying the completion of customs clearance, where the means of transport is imported,(c) a document issued by the supplier which shall contain the requisites under Items 3 - 15 of Article 114 (1) of the Act , where the means of transport is acquired through an intra-Community acquisition;2. a copy of a payment document certifying that the tax has been remitted to Executive Budget Revenue, where the means of transport is acquired through importation or intra-Community acquisition;3. documents certifying dispatch or transportation of the means of transport from the territory of the country to the territory of another Member State:(а) a transport document or a written confirmation by the recipient or a person authorized thereby, certifying that the means of transport has been received within the territory of another Member State, where the transport is at the expense of supplier or the recipient, but has been carried out by a third party, or(b) a transport document or a written confirmation by the recipient or a person authorized thereby, certifying that the means of transport has been received within the territory of another Member State, where the transport has been carried out by the supplier, or(c) a written confirmation by the recipient, certifying that the means of transport has been received within the territory of another Member State, where the transport has been carried out by the recipient;4. a declaration (free wording) signed by the recipient wherein the recipient certifies:(а) that the recipient acquires a new means of transport within the meaning of Item 17 of 1 of the supplementary provision of the Act;(b) that the recipient is aware that the intra-Community acquisition of the means of transport is subject to declaration and taxation in the Member State where the means of transport is dispatched/transported;5. a document issued by an after-sales service establishment, insurance company or a competent government authority (ministry, agency, etc.) certifying that the means of transport is new within the meaning of Item 17 of 1 of the supplementary provision of the Act .(3) The tax under Paragraph 1 shall be refunded within 2 months from submission of the return and the documents enclosed thereto.Intra-Community Acquisition and Intra-Community Supply ofNew Means of Transport by Persons Registered under the ActArticle 104. (1) (Previous wording of Article 104, SG No. 101/2006) Any person registered under the Act who effects an intra-Community supply of a new means of transport under Article 7 (2) of the Act (incl. incidental) or intra-Community acquisition of a new means of transport under Article 13 (2) of the Act shall apply the general provisions for taxation of intra-Community supplies and intra-Community acquisitions.(2) (New, SG No. 101/2006) The invoices issued by the persons under Paragraph 1 shall be recorded in the VIES return for the relevant tax period provided that the recipient is registered for VAT purposes in another Member State.(3) (New, SG No. 101/2006) In the cases of Paragraph 1 where the recipient on the supply is a person not registered for VAT purposes in another Member State, the invoices under Paragraph 1 shall not be recorded in the VIES return.Chapter SeventeenTAX EXEMPTION AND REFUND IN SPECIAL CASESSection IExemption upon ImportationImportation Exempted by Virtue of International TreatiesArticle 105. (1) Where an international treaty whereto the Republic of Bulgaria is a signatory, ratified and promulgated according to the relevant procedure, provides for exemption of the importation from taxes, levies or other charges (payments, duties) having an effect equivalent to an indirect tax, including where such treaties are financed by resources of the executive budget or the municipal budgets or by loans guaranteed by the Government, exemption shall be granted by means of a written confirmation by the authority coordinating the performance of the contract to the regional customs directorate in whose structure the customs office carrying out the customs clearance of the specific supply is.(2) The written confirmation shall contain:1. the name, date of promulgation and date of entry into force of the international treaty, agreement, accord, convention, etc., in connection with which a contract is entered into with the importer, and the grounds for exemption;2. the name of the programme or project financed with funds in implementation of the international treaty under Item 1;3. the number, date and subject of the contract entered into for implementation of the international treaty and according to which the person under Item 4 is the importer, and the assignor is the coordinating authority under Paragraph 1;4. the company name, registered address, registered office, identification number (for non-resident person - identification number in the country in which it is a resident person) of the importer under the contract referred to in Item 3;5. type, quantity and value of the imported goods in connection with the performance of the contract referred to in Item 3;6. information about the persons authorized to sign contracts or effect payments with funds granted under the international treaty.(3) Copies of all documents necessary for the customs clearance of the goods shall be enclosed to the written confirmation under Paragraph 1.(4) The authority coordinating the performance of the international treaty shall notify in writing the Head Office of the National Customs Agency about the persons authorized to sign the written confirmations under Paragraph 1 and shall send a copy of the contract entered into in implementation of the international treaty.(5) The director of the regional customs directorate shall make inspection on compliance with the requirements for tax exemption on the basis of the relevant written confirmation.(6) Where in the course of an inspection it is established that the requirements for exemption exist, the director of the regional customs directorate shall notify the head of the customs office in charge of the customs clearance that the grounds for exemption from tax upon importation exist. The notification shall also be sent to the authority coordinating the performance of the international treaty.(7) Where the requirements for exemption are not satisfied, the director of the regional territorial directorate shall notify the authority coordinating the performance of the international treaty thereof.Exempted Importation of Goods by Armed Forces of Other StatesWhich Are Parties to North Atlantic TreatyArticle 106. (1) Exempted importation shall be the importation of goods imported by the armed forces of other states which are parties to the North Atlantic Treaty for use by such armed forces or by the civilian staff accompanying them, or for supplying their messes or canteens, where such forces take part in the common defence effort of the North Atlantic Treaty within the territory of the country.(2) Exemption under Paragraph 1 shall be granted by virtue of a Manifest NATO 302, certified in accordance with NATO procedures.Section IIExempted Supplies by Virtue of International TreatiesProcedure for Receiving Opinion on Application of Zero RateArticle 107. (1) In respect of supplies which are exempted from value added tax by virtue of international treaties, accords, agreements, conventions etc. whereto the Republic of Bulgaria is a signatory, ratified and promulgated according to the relevant procedure, a zero rate of tax shall apply, including in respect of the part of the supply financed by resources of the executive budget or the municipal budgets or by loans guaranteed by the Government.(2) Any person registered under the Act who is the main contractor under the contract referred to in Item 3 of Paragraph 3 shall submit a written request for confirmation of the existence of grounds for application of the arrangement under Article 173 (1) of the Act to the National Revenue Agency territorial directorate - Sofia.(3) The request under Paragraph 2 shall contain:1. the name, date of promulgation and date of entry into force of the international treaty, agreement, accord, convention, etc., which provide for exemption of taxable supplies from value added tax or a tax, levy or charge with equivalent to an indirect tax effect;2. the name of the programme or project in connection with which the supplies are effected, in respect of which confirmation of existence of the grounds for application of the arrangement under Article 173 (1) of the Act is required.3. (supplemented, SG No. 16/2007) a certified by the main contractor copy of the contract entered into in implementation of a programme or project under Item 2 by virtue of which the taxable person is the main contractor and the coordinating authority is the assignor or recipient;4. the company name, registered address, registered office , identification number, VAT identification number of the person which is the main contractor under the contract referred to in Item 3;5. the name, registered address, registered office, identification number of the coordinating authority under Item 3 and where the latter is a non-resident person, the name, registered address, and registered office.(4) Within 14 days from receipt of the request the National Revenue Agency territorial directorate - Sofia shall send to the registered person confirmation of existing grounds to use the arrangement under Article 173 (1) of the Act.(5) Within the meaning of this Section, the coordinating authority is a Bulgarian or non-resident legal person or organisation, receiving supplies of goods and/or services under the contract under Item 3 of Paragraph 3 and implementing a programme or project financed within the framework of an international treaty, accord, agreement, convention or another instrument.(6) The status of the coordinating authority under paragraph 5 shall be certified at the National Revenue Agency Territorial Directorate - Sofia by issuing a document in writing signed by the persons designated by each government to implement the respective international treaty, accord, agreement, convention or another instrument.(7) Within the meaning of this Section, the main contractor is a person who is the supplier of goods and/or services under the contract under Item 3 of Paragraph 3, under which the coordinating authority is the assignor.(8) The zero rate under Article 173 (1) of the Act shall be allowed only in respect of supplies effected by the main supplier(s).Obligations of the Coordinating AuthorityArticle 108. (1) The persons appointed by the relevant State to implement the relevant international treaty, accord, agreement, convention or another instrument shall certify said circumstance by a document to the National Revenue Agency Territorial Directorate - Sofia.(2) By the 15th day of the month following every quarter of the calendar year the persons under Paragraph 1 or the coordinating authorities within the meaning of Article 107 (5) of the Act shall submit at the National Revenue Agency Territorial Directorate - Sofia information about:1. contracts under Item 3 of Article 107 (3) entered into in the respective period, together with the data under Article 107 (3) of the Act about the parties to every contract, as well as the name of the programme or project in implementation of which the contracts have been entered into;2. the persons authorized to sign contracts or effect payments under a programme or project;3. total amount of agreed and paid funds under contracts entered into under Item 3 of Article 107 (3) for purchase of goods and services in Bulgaria as well as under every separate contract;4. manner of financing the supplies.Section IIIExempted Supplies in Which Recipients are Armed Forcesof Other States or Institutions of the European UnionCertification of Supplies Liable to Tax at Zero RateArticle 109. (1) Liable to tax at zero rate shall be the goods and services in which recipients are:1. the armed forces of other states which are parties to the North Atlantic Treaty, or2. institutions of the European Union.(2) For application of the zero rate under Paragraph 1 the supplier shall hold a certificate of tax exemption in a standard form - appendix № 21 - certified by the National Revenue Agency Territorial Directorate - Sofia, and an invoice on the supply.Procedure for Certification of the CertificateArticle 110. (1) The persons under Article 109 (1) shall submit at the National Revenue Agency Territorial Directorate - Sofia the appendix under Article 109 (2) in two counterparts before effecting the purchases.(2) The territorial directorate under Paragraph 1 shall certify the counterparts and shall keep one of the counterparts and the other one shall be submitted to the person.(3) The territorial directorate under Paragraph 1 shall keep a register of the certified certificates under Paragraph 2.Requirements to Forms of CertificateArticle 111. The form of the certificate under Article 109 (2) shall satisfy the following requirements:1. to be white with size 210 mm x 297 mm with maximum deviation in length of - 5 mm or +8 mm;2. to be printed on paper satisfying the requirements set out in the Official Journal of the European Communities № C 164/3 of 1.07.1989.Chapter EighteenREPORTING AND DECLARATIONSection IReports and LedgersSales LogArticle 112. (1) In respect of supplies for which no invoice is issued on the grounds of Article 113 (3) of the Act the supplier who is a registered person under the Act shall prepare a sales report, which shall contain consolidated information on the supplies for the relevant tax period.(2) The report under Paragraph 1 shall be prepared on the last day of the tax period at the latest.(3) The sales report under Paragraph 1 shall describe:1. the total sum of the taxable amounts and the sum total of the tax on the taxable supplies - separately according to the rate of tax (20%, 7%, 0%, respectively);2. the sum total of the taxable amounts of exempt supplies;3. (supplemented, SG No. 101/2006) the sum total of the taxable amounts of supplies other than those under Item 2, on which no tax shall be charged (with right to credit for input tax, without right to credit for input tax respectively).(4) (Amended, SG No. 101/2006) The supplier shall record the sales report under Paragraph 3 in the sales log, by completing columns 01 - 05 and 9 - 25 of appendix № 10.(5) The report under Paragraph 1 shall not describe the supplies on which tax is charged by the supplier with a memorandum in accordance with the provisions of the Act and these Regulations."Sales Log", "Purchases Log", and "Intra-Community Suppliesof New Means of Transport Ledger" Ledgers of Account(Title amended, SG No. 101/2006) Article 113. (1) Registered persons shall mandatorily keep the ledgers under Article 124 (1) of the Act: a purchases log and a sales log containing information of all issued and received tax documents and reports, which shall be issued in accordance with the provisions of the Act or these Regulations.(2) Registered persons shall keep the ledger under Paragraph 1 "Sales Log" in a standard form - appendix No. 10 - regardless of the type and form of their accounting systems.(3) (Supplemented, SG No. 101/2006) Registered persons shall keep the ledger under Paragraph 1 "Purchases Log" in a standard form - appendix No. 11 - regardless of the type and form of their accounting systems. Registered persons on the grounds of Articles 99 and 100 (2) of the Act are not required to keep mandatorily a purchases log. In these cases the purchases log submitted by the person on a magnetic data storage medium shall contain one single entry with values "zero" for numerical fields and "interval" for symbol fields.(4) Registered persons shall furthermore submit the information under Paragraph 1 on a magnetic or optical data storage medium, electronically respectively, according to parameters and requirements to files set out in appendix No. 12.(5) Information from ledgers of account shall be used for completion of VAT returns and VIES returns under the Act.(6) Data in the ledgers of account on a paper-based medium shall coincide completely with data submitted on the magnetic or optical data storage medium.(7) The data to be completed and submitted in the sales log and purchases log shall provide all the information contained in appendix No. 10 and appendix No. 11 respectively.(8) The information with the data to be submitted on a magnetic or optical data storage medium together with the VAT return and VIES return for the respective period shall provide all the information contained in appendix No. 10 and appendix No. 11.(9) (Amended, SG No. 101/2006) Where the sum of the taxable amounts of taxable supplies for a tax period in the documents included by the registered person in the purchases log or in the sales log exceeds BGN 1,000, the registered person shall have the right not to submit the ledgers of account on a paper-based medium.(10) (Amended, SG No. 101/2006) The right under Paragraph 9 shall be exercised and the registered person together with the VAT return for the relevant tax period shall file a request in writing (free wording) to the director of the relevant National Revenue Agency territorial directorate.(11) (New, SG No. 101/2006) Upon submission of the ledgers of account under Paragraphs 2 and 3 the following columns are not required to be printed mandatorily:1. subject of the supply and name of counterparty, and2. the columns which contain only blank fields.(12) (New, SG No. 101/2006) The registered person who is an intermediary in a triangular operation shall record the invoice issued by the transferor in the triangular operation in the purchases log for the tax period during which the invoice for the supply has been recorded by the intermediary to the acquirer in the triangular operation. In these cases columns 9 - 14 shall not be completed and in column "type of document" code "09" shall be indicated, and in column "TA upon acquisition of goods by an intermediary in a triangular operation" shall be stated the taxable amount in BGN specified in the invoice issued by the transferor in the triangular operation. Said taxable amount shall not be taken into account in the calculation of the net result for the period.(13) (New, SG No. 101/2006) Registered persons who in the calendar quarter have effected intra-Community supplies of new means of transport the recipients whereof are persons not registered for VAT purposes in other Member States, shall record the supplies effected in the calendar quarter in an intra-Community supply of new means of transport ledger.(14) (New, SG No. 101/2006) The persons shall provide information from the ledger under Paragraph 13 on a magnetic or optical data storage medium by the 14th day of the month following the calendar quarter for which it refers.(15) (New, SG No. 101/2006) The parameters and requirements to the structure of data in the ledger under Paragraph 13 shall be in compliance with appendix No. 22.(16) (New, SG No. 101/2006) Supplies with place of transaction outside the territory of the country, which have not been equalized to taxable ones within the meaning of Article 69 (2) of the Act , as well as supplies and activities outside the independent economic activity of the person shall be recorded in the ledgers of account as exempt supplies.Requirements to Magnetic and Optical Data Storage MediumsArticle 114. (1) (Amended, SG No. 101/2006) Magnetic and optical data storage mediums, as well as electronically submitted data from ledgers of account shall contain a set of the following files: Deklar, PRODAGBI, POKUPKI.(2) Any of the files under Paragraph 1 shall have the format of a standard ASCII text file with "txt" extension.(3) The files under Paragraph 1 shall be furthermore prepared and submitted in the cases where they do not contain information.(4) The files under Paragraph 1 shall cover only one tax period concerning the tax period for which the VAT return is submitted.(5) The National Revenue Agency territorial directorates shall not accept magnetic or optical data storage mediums which do not satisfy the parameters set out in appendix No. 12.(6) The National Revenue Agency territorial directorate shall draw up and submit a protocol certifying acceptance or refusal to accept the magnetic or optical data storage medium.(7) If no acceptance protocol under Paragraph 6 is issued, it shall be considered that the registered person has not submitted the information from the ledgers of account on a magnetic or optical data storage medium.(8) (Amended, SG No. 101/2006) Upon established inconsistencies between data submitted in the VAT return and data in the ledgers of account under Article 124 of the Act submitted on a magnetic or optical data storage medium thereto, the person submitting the data shall be asked to remove the inconsistencies within 7 days. To certify the circumstances referred to in this Paragraph the National Revenue Agency territorial directorate shall prepare and send a message.(9) (Supplemented, SG No. 101/2006) In the cases of Paragraph 8 the VAT return shall be considered to be submitted upon removal of the inconsistency upon submission of a correct VAT return and this shall not result in modification of the legally prescribed time limit for its submission and payment of the debt.Section IIDeclaration of Tax and VAT ReturnsDeclaration of TaxArticle 115. (1) Any registered person shall submit, as stated in this Section, a VAT return under Article 125 (1) of the Act, a VIES return under Article 125 (2) of the Act and a return on the supply of services supplied electronically under Article 157 (2) of the Act .(2) Tax periods for reporting of tax and time limits for submission of returns under Paragraph 1 are stipulated by the Act.(3) Determination, declaration and reporting of tax shall be effected by issuing the relevant standard forms set out in these Regulations.(4) Declaration under the terms of Paragraph 1 shall be effected by submission of the relevant standard form on a paper-based medium, as well as on a magnetic or optical data storage medium where this is required by the Act.(5) Paragraph 4 shall not apply in the cases of submission of returns electronically under the terms and procedure of the Tax and Social-Insurance Procedure Code.(6) Returns under Paragraph 1 shall be submitted in person at the competent National Revenue Agency territorial directorate by the person representing the registered person or a person authorized thereby.(7) The person shall mandatorily complete all data required in the standard forms of the returns and the ledgers of account under this Chapter. In case a field describing value is blank (shall not be completed according to the provisions of the Act and these Regulations) a zero value shall be specified.(8) Returns under Paragraph 1 shall be completed in Bulgarian.(9) (Amended, SG No. 101/2006) Returns under Paragraph 1 shall be published in Bulgarian on the website of the NRA.(10) Correction of errors in the VAT return and VIES return shall be effected in accordance with the terms of Article 126 of the Act.VAT ReturnArticle 116. (1) Any registered person shall be obligated to submit a VAT return under Article 125 (1) of the Act in a standard form - appendix № 13 - for every tax period.(2) A VAT return under Paragraph 1 shall furthermore be submitted in the cases where no tax is payable or claimable, as well as in the cases where the registered person has not effected or received supplies or acquisitions or has not effected importation for said tax period.(3) The registered person shall submit the return under Paragraph 1 at the competent National Revenue Agency territorial directorate for every tax period for which it refers.(4) The registered person shall submit at the competent National Revenue Agency territorial directorate the ledgers of account under Article 124 (1) of the Act together with the VAT return under Paragraph 1.VIES ReturnArticle 117. (1) The VIES return shall be prepared in a standard form - appendix № 14.(2) The return shall contain the following data:1. data about the registered person - name/company name, VAT identification number, address for correspondence;2. data about the person submitting the return - name, PIN/Personal Number of Non-resident, address for correspondence;3. tax period for which the return is submitted in format: mm/yyyy;4. (amended, SG No. 101/2006) sum total of taxable amounts of:(a) all effected intra-Community supplies of goods the recipients whereon are persons registered for VAT purposes in another Member State;(b) supplies of services under Article 21 (3) and Articles 22 - 24 of the Act with place of transaction within the territory of another Member State, the recipients whereon are persons registered for VAT purposes in another Member State;(c) supplies as an intermediary in a triangular operation;5. (amended, SG No. 101/2006) taxable amount of intra-Community supplies of goods, whereby recipients are VAT registered persons in another member state.6. (amended, SG No. 101/2006) total number of declared lines;7. (amended, SG No. 101/2006) VAT identification number of the recipient/acquirer, including the sign of the Member State under ISO 3166;8. (amended, SG No. 101/2006) the sum total of the taxable amounts of effected intra-Community supplies of goods to one registered person for VAT purposes in another Member State;9. (amended, SG No. 101/2006) the sum total of the taxable amounts of effected supplies of services under Article 21 (3) and Articles 22 -24 of the Act to one registered person for VAT purposes in another Member State;10. (amended, SG No. 101/2006) the sum total of the taxable amounts of effected supplies as intermediary in triangular operations to one registered person for VAT purposes in another Member State;11. (new, SG No. 101/2006) the tax period in which the tax on the supplies under Items 8 - 10 became chargeable in case said period is different from the tax period under Item 3.(3) (Amended, SG No. 101/2006) Intra-Community supplies of goods on which the person is supplier, supplies of services under Article 21 (3) and Articles 22 - 24 of the Act with place of transaction within the territory of another Member State, as well as supplies as intermediary in a triangular operation shall be mandatorily recorded in the ledgers of account .(4) (Amended, SG No. 101/2006) The VIES return shall be prepared on the basis of the consolidated data from the ledgers of account under Article 124 (1) of the Act, excluding intra-Community supplies of goods and supplies of services under Article 21 (3) and Articles 22 - 24 of the Act, with place of transaction within the territory of another Member State the recipients whereon are persons not registered for VAT purposes.(5) (Amended, SG No. 101/2006) Where in the tax period the registered person has not effected intra-Community supplies, supplies of services under Article 21 (3) and Articles 22 - 24 of the Act with place of transaction within the territory of another Member State, supplies as intermediary in a triangular operation and has not shown missing data for a previous tax period in accordance with Item 1 of Article 126 (3) of the Act, no VIES return shall be submitted.(6) The registered persons shall also submit the data under Paragraph 2 on a magnetic or optical data storage medium.(7) Data from the VIES return on a paper-based medium shall coincide completely with the data submitted on a magnetic or optical data storage medium.(8) (New, SG No. 16/2007) Submission of VIES return is not mandatory for supply of services under Article 21 (3) where the supply of the services with place of transaction within the territory of the country might be exempt.Requirements to Magnetic and Optical MediumsArticle 118. (1) The parameters of the data of the information from the VIES return, the information submitted on a magnetic or optical data storage medium as well as the requirements to the structure of the files submitted electronically are specified in appendix № 15.(2) The territorial directorates of the National Revenue Agency shall not accept magnetic or optical data storage mediums which do not satisfy the parameters set out in appendix № 15.(3) The territorial directorate of the National Revenue Agency shall prepare a protocol ascertaining the acceptance or refusal to accept the magnetic or optical data storage medium.(4) If no protocol under Paragraph 3 ascertaining the acceptance has been issued, it shall be deemed that the registered person has not submitted the information from the VIES return on a magnetic or optical data storage medium.(5) (Supplemented, SG No. 101/2006) The VIES return shall contain only one entry (line) with the consolidated data for all effected supplies to a given recipient/acquirer from a Member State for the current period, possessing a valid VAT identification number issued by the Member State.(6) Additional entries for the same recipient/acquirer are allowed only upon declaration of missing data for previous periods in accordance with Item 1 of Article 126 (3) of the Act.(7) Upon established inconsistencies between data submitted in the VIES return and data in the ledgers of account under Article 124 of the Act submitted on a magnetic or optical data storage medium thereto, the person submitting the data shall be asked to remove the inconsistencies within 14 days. To certify the circumstances referred to in this Paragraph the National Revenue Agency territorial directorate shall prepare and send a message.(8) In the cases of Paragraph 7 the VIES return shall be deemed to be submitted after removal of the inconsistency on submission of a correct VIES return.Return on Taxation of Supply of Services Effected Electronically byPersons Who Are not Established in the CommunityArticle 119. (1) Any registered person under Chapter Eighteen of the Act who effects supply of services effected electronically shall submit a return under Article 157 (2) of the Act in a standard form - appendix № 16.(2) The return shall be submitted electronically at the National Revenue Agency territorial directorate - Sofia under the terms and according to the procedure of the Tax and Social-Insurance Procedure Code.(3) The file with the information for the VAT return under Paragraph 1 submitted electronically shall satisfy the requirements set out in appendix № 17.(4) Data for the return under Paragraph 1 shall be completed on the basis of the consolidated data from the electronic register under Article 120 (3) of the Act.Exchange of Information with Foreign AdministrationsArticle 120. (1) (Amended, SG No. 101/2006) The information specified in the ledgers of account, the intra-Community supply of new means of transport ledger and the VIES return shall be exchanged with the administration of other Member States under the procedure, manner and time limits set out in Council Regulation (EC) № 1798/2003.(2) Exchange of information related to the levy of value added tax with the tax administrations of other Member States shall be effected under the terms of the Tax and Social-Insurance Procedure Code.Chapter NineteenOTHER OBLIGATIONSAccounting and Reporting of TaxArticle 121. (1) Registered persons shall keep documentation and accounts in conformity with the requirements of the Accountancy Act, the Value Added Tax Act and these Regulations.(2) Documentation and accounts shall be kept for taxable supplies, exempt supplies, supplies with place of transaction outside the territory of the country, intra-Community acquisitions, received supplies on which the person is the payer of the tax under Chapter Eight of the Act, and for importation.(3) Branches of registered persons shall keep accounts and maintain documentation as separately registered persons, without having any settlements with the budget.(4) Branches shall submit to the registered person the required information for completion of the VAT return, VIES return for the period and the information for the magnetic and data storage mediums.(5) Settlement with the budget for the value added tax shall be carried out by the registered person.(6) Branches of non-resident persons shall settle payments with the budget independently.(7) Registered persons shall calculate the net result for the tax period on the basis of the documents recorded in the ledgers for this tax period.(8) Any registered person shall keep a register of the goods under Items 8 - 10 of Article 7 (5) and Items 8 - 10 of Article 13 (4) of the Act, which shall provide the following information:1. type of dispatched/received goods;2. purpose of dispatch/receipt of goods;3. quantity of dispatched/received goods;4. Member State to/from which the goods have been dispatched/received;5. date of dispatch/receipt of the goods.SUPPLEMENTARY PROVISION 1. (1) (Former text of 1, SG No. 3/2007) For the purposes of this Regulations:1. "Identification number" shall mean:(а) the uniform identification code under the commercial register - of the persons entered in the commercial register;(b) the uniform identification code under BULSTAT - of the persons entered in the BULSTAT register;(c) the personal identification number or the personal number of a non-resident - of natural persons who are not entered in the commercial register or the BULSTAT register;(d) (amended, SG No. 101/2006) the official number under Article 84 (3) of the Tax and Social-Insurance Procedure Code for persons other than those under letters "a" - "c" and who are taxable persons under the Tax and Social-Insurance Procedure Code .2. " Third country" shall be a country outside the customs territory of the Community.3. "Third territory" shall be a territory which is part of the customs territory of the Community but is not part of the "territory of the Community" within the meaning of Item 3 of 1 of the supplementary provision of the Act.4. (New, SG No. 101/2006) VAT identification number under Article 94 (2) of the Act of the persons registered under the Act shall be the identification number under Item 1, in front of which the sign "BG" is written.(2) (New, SG No. 3/2007) Natural persons shall identify themselves for the purposes of the Act with the VAT identification number received upon registration thereof for all supplies carried out thereby constituting independent economic activity.(3) (New, SG No. 3/2007) Where a natural person receives a VAT identification number upon his registration in a capacity other than a sole trader and subsequently records himself as a sole trader, the said person shall be obliged to re-register and the VAT identification number for him shall be the number under "a" Item 1 of Paragraph 1, "b" respectively, received in the capacity of a sole trader, in front of which the sign "BG" shall be placed.(4) (New, SG No. 3/2007) Where a natural person receives a VAT identification number upon his registration in his capacity as a sole trader and subsequently deletes himself from the commercial register and the grounds for registration under the Act exist for him, the said person shall be obliged to re-register and the VAT identification number for him shall be the personal identification number, the personal number of a foreigner respectively, in front of which the sign "BG" shall be placed.(5) (New, SG No. 3/2007) Re-registration under Paragraphs 3 and 4 shall be made within 14 days from recording the relevant circumstance in the commercial register by filing a written notification to the relevant National Revenue Agency territorial directorate. The date of re-registration shall be the date of recording the relevant circumstance in the commercial register.TRANSITIONAL AND FINAL PROVISIONS 2. These Regulations shall supersede the Regulations of Application of the Value Added Tax Act (Promulgated State Gazette No. 19/1999, amended and supplemented, SG No. 55/1999, SG No. 9/2000, corrected, SG 15/2000, amended, Judgment No. 404/2001 of the Supreme Administrative Court - SG No. 12/2001, amended and supplemented, SG No. 15/2001, amended, SG No. 58/2001, amended and supplemented, SG No. 43/2002, SG No. 63/2002, SG No. 29/2003, SG No. 26/2004, SG No. 32/2005, SG No. 9/2006). 3. (1) (Amended, SG No. 101/2006) Registration certificates under Article 75 (1) shall be issued to the persons under 4 (1) of the transitional and final provisions of the Value Added Tax Act.(2) The certificates under Paragraph 1 shall be issued ex officio by the competent National Revenue Agency territorial directorate and shall be submitted to the persons within one month from entry into force of these Regulations.(3) Until submission of the certificate under Paragraph 2 the VAT identification number under Article 94 (2) of the Act shall be the identification number under Item 1 of 1 of the supplementary provision of these Regulations in front of which the sign "BG" shall be placed.(4) (New, SG No. 3/2007) For natural persons other than sole traders which upon their registration with the BULSTAT register have received uniform identification code other than the personal identification number, the VAT identification number shall be the personal identification number in front of which the sign "BG" shall be placed. 4. (1) For tax periods until entry into force of these Regulations the standard forms of documents provided in the superseded Regulations of Application of the Value Added Tax Act shall apply.(2) Together with the VAT return for the last tax period prior to the entry into force of these Regulations the persons shall submit on paper-based and magnetic data storage mediums the ledgers of account for the said last period.(3) The paper-based and magnetic data storage mediums submitted under Paragraph 2 shall comply with the format, parameters and requirements set out in Articles 91 and 92 and in appendix No. 10 of the superseded Regulations of Application of the Value Added Tax Act.(4) In the cases of 4 (5) of the transitional and final provisions of the Value Added Tax Act the registration inventory of the assets available at the registration date or the assets available at the re-registration date shall be submitted in a standard form - appendix No. 3, appendix No. 4 respectively of the superseded Regulations of Application of the Value Added Tax Act.(5) For the assets under Paragraph 4 the right to deduct credit for input tax occurs where the conditions of Chapter Twelve of the superseded Value Added Tax Act apply. 5. For presentation of the effected deduction of input tax claimable for the tax periods until entry into force of these Regulations a standard form appendix No. 5 of the superseded Regulations of Application of the Value Added Tax Act shall be completed and submitted. 6. The balance of the input tax claimable under 6 (3) of the transitional and final provisions of the Value Added Tax Act shall be stated in cell 80 of appendix No. 8 and in the statement on appendix № 5 of the superseded Regulations of Application of the Value Added Tax Act . 7. The sales report covering the tax periods prior to the entry into force of these Regulations shall be prepared in accordance with the provisions of Article 93 (5) of the superseded Regulations of Application of the Value Added Tax Act. 8. (1) Any registered person shall have the right to deduct the tax charged on the assets upon deregistration under Article 119 (3) of the superseded Value Added Tax Act , which are available at the date of said person's re-registration under the Value Added Tax Act .(2) The right under Paragraph 1 shall arise where the following conditions obtain simultaneously:1. available assets within the meaning of the Accountancy Act at the date of re-registration under the Value Added Tax Act have been charged upon the deregistration under Article 119 (3) of the superseded Value Added Tax Act;2. the tax charged upon the deregistration has been effectively paid or set off by the revenue authority;3. with the available assets under Item 1 the person has effected, is effecting or will effect taxable supplies within the meaning of Article 69 of the Act;4. the registration inventory in a standard form - appendix № 3, of the assets under Item 1 has been prepared at the date of re-registration and has been submitted not later than 7 days from the registration date;5. the assets under Item 1 have been acquired by the person up to 5 years, and for immovable things, up to 20 years before the date of re-registration under the Act.(3) In the cases where the asset under Paragraph 2 has been used, is used or will be used for both taxable and exempt supplies or for supplies or activities in respect of which no right to deduct credit for input tax exists, a right to deduct partial credit for input tax exists for the tax charged, calculated under the terms of Article 73 of the Act.(4) The right to deduct credit for input tax under Paragraph 1 shall be exercised in the tax period in which it occurred or in one of the following consecutive three tax periods and the relevant document under Article 71 of the Act shall be recorded in the purchases log for the relevant tax period.(5) The right to deduct credit for input tax under Paragraph 1 shall not occur and may not be exercised if the inventory under Item 4 of Paragraph 2 is submitted after the time limit under Item 4 of Paragraph 2. 9. (1) Where the time limit for submission of information under Article 120 (1) of the superseded Regulations of Application of the Value Added Tax Act expires after entry into force of these Regulations, commercial banks shall submit the information within 7 days from opening/closing of the "VAT account".(2) By the 14th day of the month following the month of entry into force of these Regulations, banks shall submit the information under Article 120 (2) and (3) of the superseded Regulations of Application of the Value Added Tax Act for the last calendar month preceding the month of entry into force of these Regulations. 10. Where an obligation for issuing a memorandum under the procedure of the superseded Regulations of Application of the Value Added Tax Act has arisen before entry into force of these Regulations and no such memorandum has been issued until entry into force of these Regulations, the person shall issue a memorandum, which shall satisfy the provisions of the Value Added Tax Act and these Regulations. 11. For goods and services received from other taxable persons for the direct benefit of the tourist and in respect of which the tour operator or travel agent have exercised their right to deduct credit for input tax before entry into force of these Regulations, no adjustment under the terms of Article 79 of the Value Added Tax Act shall be effected. 12. (Amended, SG No. 101/2006) (1) Notwithstanding 14 (1) of the transitional and final provisions of the Value Added Tax Act no tax shall be due upon execution of customs formalities regarding declaration of free circulation of goods where the following conditions obtain simultaneously:1. at the time of declaration the goods are under customs procedure and customs warehousing, inward processing under excise duty suspension arrangement, temporary importation with full or partial exemption from duty, or have the status of goods in temporary storage, or placed in a free zone or a free warehouse, and2. simultaneously with the declaration:(a) the goods leave the territory of the country to a third country or territory, or(b) the goods placed under temporary importation with full exemption from duty leave the territory of the country to the Member State from which they were exported (including the Republic of Romania) and the recipient is the person who exported them.(2) The provision of Article 16 (2) shall furthermore apply to the cases where goods have been temporarily exported from the territory of the country to the territory of a Member State or to the territory of the Republic of Romania before 31 December 2006 inclusive, for treatment, processing or repair under outward processing and said goods are imported again to the territory of the country after 1 January 2007 inclusive. 13. (New, SG No. 101/2006) The factor under Article 73 (5) of the Act for the previous 2006 shall be calculated according to the formula set out in Article 68 of the superseded regulations for the application of the Value Added Tax Act on the basis of all supplies effected in 2006. In determining the type of supplies the tax arrangement of the supplies at the date of occurrence of the chargeable event for them shall be taken into account. 14. (New, SG No. 101/2006) The numbering of the documents under Article 78, issued after 1 January 2007 inclusive, shall commence from "0000000001". 15. (New, SG No. 101/2006) (1) Introduction on the territory of the country of goods which were exported by 31 December 2006 inclusive from the territory of another Member State or from the territory of the Republic of Romania shall be considered importation of goods within the meaning of Article 16 of the Act.(2) In the cases of Paragraph 1 no intra-Community acquisition of goods shall exist. 16. (New, SG No. 101/2006) (1) No tax shall be charged on intra- Community acquisition of goods where the following conditions obtain simultaneously:1. the right of ownership over the goods is passed after 1 January 2007 inclusive;2. in respect of the goods a tax has been paid or charged upon importation of goods.(2) In the cases referred to in Paragraph 1, where the taxable amount of an intra-Community acquisition is higher than the taxable amount upon importation it shall be considered that an intra-Community acquisition of goods exists in respect of which the tax becomes chargeable under the Act and the difference shall be considered a taxable amount of the acquisition. 17. (New, SG No. 101/2006) (1) Where hoteliers, tour operators and travel agents have received advance payments by 31 December 2006 inclusive for supplies under chapter twenty one of the superseded Value Added Tax Act and in respect of such supplies after entry into force of the Act the provisions of Article 66 (2) or chapter sixteen of the Act apply, upon occurrence of a chargeable event the persons shall issue a tax document for the supplies in accordance with the procedures and time limits of the Act, stating:1. the total taxable amount for the supply formed in accordance with the Act;2. the amount of the rate of tax determined on the taxable amount under Item 1;3. the amount of the tax charged on advance payments by 31 December 2006 inclusive;4. the amount of the tax charged on advance payments after 1 January 2007 inclusive;5. the difference between the amount of the tax under Item 2 and the amount of the tax under Items 3 and 4.(2) In the cases referred to in Paragraph 1 the difference under Item 5 of Paragraph 1 shall be recorded in the sales log. 18. (New, SG No. 101/2006) The provisions of 9 of the transitional and final provisions of the Act shall furthermore apply to supply of goods under the terms of a financial lease contract in respect of which the tax procedure is changed upon entry into force of the Act from taxable to exempt supply or from exempt to taxable supply. For the instalments due after 1 January 2007 the tax procedure at the time of occurrence of the chargeable event under the Act shall apply. 19. (New, SG No. 101/2006) (1) Where an advance payment is received by 31 December 2006 inclusive, for a supply under chapter three of the Act and by 31 March 2007 the supplier has not obtained the documents certifying existence of circumstances under chapter four hereof, it shall be considered that the supply is taxable at a rate of 20 per cent.(2) In the cases referred to in Paragraph 1 a tax shall be charged on the supplier by issuing a memorandum under Article 117 (2) of the Act within 5 days, effective 31 March 2007.(3) Where the supplier obtains the required documents subsequently, said supplier shall correct the result of the application of Paragraph 2 in accordance with the terms of Article 39 (4) - (7) hereof. 20. (New, SG No. 101/2006) (1) Where an advance payment is received by 31 December 2006 inclusive for supply of goods or a service in respect of which the tax treatment is modified by the Act concerning the rate of tax, the place of transaction of the supply, equalisation of the supply to a taxable one under Article 69 (2) of the Act and the chargeable event for which occurs after said date, the supplier shall document the supply by issuing an invoice, stating the total taxable amount of the supply. The tax treatment at the date of occurrence of the chargeable event of the supply under the Act shall apply.(2) Where an advance payment is made by 31 December 2006 inclusive for supply of goods or a service the chargeable event for which occurs after said date and the tax on the supply is chargeable on the recipient under the terms of the Act and these Regulations, the recipient who is a registered person shall charge a tax on the total taxable amount of the supply, including the advance payment made.(3) Paragraph 2 shall not apply where a tax is charged on the advance payment under the repealed Value Added Tax Act. The provisions of the Act and these Regulations shall apply to the tax treatment of the supply, including any subsequent advance payments. 21. (New, SG No. 101/2006) These Regulations shall come into force on 1 January 2007.Regulations to Amend and Supplement the Regulationsfor Application of the Value Added Tax ActSG No. 16/20.02.2007, effective 1.01.2007TRANSITIONAL AND FINAL PROVISIONS 16. (1) The permits issued by the Minister of Finance under Article 58b of the repealed Value Added Tax Act shall survive for the term for which they were issued as permits under Article 166 of the Act. (2) Confirmations issued under the terms of Article 83 of the repealed Regulations for Application of the Value Added Tax Act shall survive in respect of the contracts for which they were issued. 17. These Regulations shall come into force on 1 January 2007 with the exception of з 11, which shall come into force on the date of promulgation of the Regulations in the State Gazette. - For more information visit www.solicitorbulgaria.com id: 339 Mon, 04 Aug 2008 07:04:24 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-regulations-for-application-of-the-value-added-tax-act http://web.solicitorbulgaria.com/index.php/bulgarian-regulations-for-application-of-the-value-added-tax-act http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/REGULATIONS_FOR_APPLICATION_OF_THE_VALUE_ADDED_TAX_ACT.jpg EUR http://web.solicitorbulgaria.com/index.php/bulgarian-regulations-for-application-of-the-value-added-tax-act legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Chapter ElevenDOCUMENTING SUPPLIESTax DocumentsArticle 112. (1) "Tax document," within the meaning given by this Act, shall be:1. the invoice;2. the advice to an invoice;3. the memorandum.(2) Tax documents can be issued manually or by automated mean.(3) In the event of theft, loss, damage or destruction of any tax documents, the registered person shall notify in writing the competent National Revenue Agency territorial directorate not later than 24 hours after learning of the relevant circumstance.Issuing InvoicesArticle 113. (1) Each taxable person who is a supplier shall be obligated to issue an invoice for a supply of goods or service effected thereby or upon receipt of an advance payment before effecting such a supply except in the cases where the supply is documented by a memorandum under Article 117 herein.(2) The invoice shall be issued at least in duplicate: one copy for the supplier and one copy for the recipient.(3) An invoice may not be issued:1. for any supplies in which the… For more information visit http://www.solicitorbulgaria.com id: 340 Chapter ElevenDOCUMENTING SUPPLIESTax DocumentsArticle 112. (1) "Tax document," within the meaning given by this Act, shall be:1. the invoice;2. the advice to an invoice;3. the memorandum.(2) Tax documents can be issued manually or by automated mean.(3) In the event of theft, loss, damage or destruction of any tax documents, the registered person shall notify in writing the competent National Revenue Agency territorial directorate not later than 24 hours after learning of the relevant circumstance.Issuing InvoicesArticle 113. (1) Each taxable person who is a supplier shall be obligated to issue an invoice for a supply of goods or service effected thereby or upon receipt of an advance payment before effecting such a supply except in the cases where the supply is documented by a memorandum under Article 117 herein.(2) The invoice shall be issued at least in duplicate: one copy for the supplier and one copy for the recipient.(3) An invoice may not be issued:1. for any supplies in which the recipient is a non-taxable natural person;2. for any supplies of financial services under Article 46 herein;3. for any supplies of insurance services under Article 47 herein;4. for sales of air tickets;5. upon supplies effected free of charge;6. for supplies of services under Chapter Eighteen herein.7. (new, SG No. 108/2006) for deliveries, performed by individuals not registered under this Act, other than sole proprietors, when for the deliveries made by them:a) a document is issued under the procedure of a special act, orb) a receipt about the paid amounts or a document under Article 9 from the Income Taxes on Natural Persons Act is issued, orc) the document issuance is not obligatory under the Income Taxes on Natural Persons Act. (4) The invoice shall mandatorily be issued not later than five days after the date of occurrence of the chargeable event for the supply, and in the cases of advance payment, not later than five days after the date of receipt of the payment.(5) Notwithstanding Paragraph (4), upon an intra-Community supply, including in the cases of advance payment, the invoice shall mandatorily be issued not later that the 15th day of the month following the month during which the chargeable event under Article 51 (1) herein occurred.(6) When issuing an invoice is not mandatory, it shall be issued upon the request of the supplier or of the recipient, with either party being obligated to render to the other party the cooperation necessary for the issuing.(7) The supplier may authorize in writing another person to issue invoices on behalf of the said supplier.(8) An invoice may not be issued in the cases referred to in Article 131 (1) herein.(9) Any taxable persons, who are not registered under this Act or are registered in pursuance of Article 99 and Article 100 (2) herein, shall not have the right to state the tax in the invoices issued thereby.(10) Where the registered person effects a taxable supply for which the said person has received an advance payment prior to the date of registration of the said person under this Act, the said person shall issue an invoice stating therein the full taxable amount of the supply.Requirements to InvoicesArticle 114. (1) An invoice shall mandatorily state:1. title of document;2. sequential ten-character number, containing only Arabic numerals, based on one or more series depending on the reporting needs of the taxable person, which identifies uniquely the invoice;3. date of issue;4. name and address of the supplier;5. supplier's identification number referred to in Article 94 (2) herein or, respectively, the number referred to in Article 84 of the Tax and Social-Insurance Procedure Code , where the supplier is a person not registered under this Act;6. forename, surname and signature of the drafter;7. name and address of the recipient of the supply.8. recipient's identification number referred to in Article 94 (2) herein or, respectively, the number referred to in Article 84 of the Tax and Social Insurance Procedure Code, where the recipient is a person not registered under this Act, identification number for VAT purposes, where the recipient is registered in another Member State, another number for identification of the person, where such a number is required according to the legislation of the State where the recipient is established;9. quantity and type of the goods, type of the service;10. date on which the chargeable event for the supply occurred, or date on which the payment was received;11. unit price net of the tax and the taxable amount of the supply, as well as any trade discounts and rebates allowed, unless included in the unit price;12. rate of the tax and, when the rate is zero, the grounds for application of the said rate, as well as the grounds for not charging tax;13. amount of tax;14. amount payable, if other than the sum of the taxable amount and of the tax;15. the circumstances which define the goods as a new means of transport: applicable to an intra-Community supply of new means of transport.(2) Where a person effects distance selling of goods, is registered for VAT purposes in another Member State, and the place of supply under the terms of distance selling is within the territory of that other Member State, in addition to the essential elements covered under Paragraph (1), the invoice shall mandatorily state:1. the person's identification number for VAT purposes issued by that other Member State;2. the rate of tax applicable to the supply in that other Member State;3. the amount of tax due on the supply.(3) When the registered person who is an intermediary in a triangular operation documents a supply of goods effected to the acquirer in the triangular operation, the invoice shall state "Article 28a (E) (3) [of the Sixth Council Directive] 77/388/EEC" as grounds for not charging tax.(4) Where the tax is chargeable from the recipient, the invoice shall not state the amount of tax and the rate of tax. In such case, the invoice shall expressly state that the tax is chargeable from the recipient, as well as the grounds for this.(5) The amount in the invoice may be stated in any currency, provided that the taxable amount and the amount of the tax are stated in Bulgarian leva complying with the requirements of Article 26 (6) herein.(6) Issued invoices may be dispatched on a paper-based medium or electronically. Invoices received electronically shall be accepted when the recipient has confirmed the receipt of the said invoices, provided that the authenticity of origin and the integrity of content are guaranteed.Debit and Credit AdvicesArticle 115. (1) Upon any change of the taxable amount of a supply or upon rescission of a supply on which an invoice has been issued, the supplier shall be obligated to issue an advice to the invoice.(2) The advice shall mandatorily be issued not later than five days after the occurrence of the relevant circumstance under Paragraph (1).(3) A debit advice shall be issued upon an increase in the taxable amount, and a credit advice shall be issued upon a decrease in the taxable amount or upon rescission of supplies.(4) In addition to the essential elements covered under Article 114 herein, an advice to the invoice shall mandatorily state:1. number and date of the invoice to which the advice is issued;2. grounds for issuing of the advice.(5) An advice shall be issued at least in duplicate: one copy for the supplier and one copy for the recipient.(6) Upon termination or rescission of a lease contract under Item 3 of Article 6 (2) herein, the supplier shall issue a credit advice on the difference between the taxable amount of the supply under Item 3 of Article 6 (2) herein and the amount which the said supplier is withholding pursuant to such contract, net of the tax under this Act.Adjustment of Invoices and AdvicesArticle 116. (1) No corrections and additions may be made in the invoices and the advices thereto. Any documents which have been erroneously drafted or corrected shall be cancelled and new documents shall be issued.(2) Any invoices and advices thereto, in which no tax is charged even though it should have been charged, shall likewise be deemed erroneously drafted documents.(3) Any invoices and advices thereto, in which tax is charged even though it should not have been charged, shall likewise be deemed erroneously drafted documents.(4) Where erroneously drafted documents or corrected documents are shown in the ledgers of accounts of the supplier or the recipient, a memorandum shall furthermore be drafted on the cancellation, with a copy for each of the parties, which shall state:1. the grounds for cancellation;2. number and date of the document which is being cancelled;3. number and date of the new document issued;4. signatures of the persons who drafted the memorandum for each of the parties.(5) All copies of the documents cancelled shall be kept with the issuer, and the said documents shall be accounted for by the supplier and the recipient according to a procedure established by the Regulations for Application of this Act.Issuing MemorandumsArticle 117. (1) A memorandum shall mandatorily be issued:1. (amended, SG No. 108/2006) in the cases referred to in Article 82 (2), (3), (4) and (5) and Article 84 herein: by the registered person who is a recipient of the supply;2. in the cases referred to in Article 57 herein: by the registered person who is an importer;3. in the cases referred to in Article 6 (3), Article 7 (4), Article 9 (3), Article 142 (1) and Article 144 (4) herein: by the registered person who is a supplier.4. (new, SG No. 108/2006) in the cases under Articles 161 and 163a - from the registered person - beneficiary under the delivery, when the supplier is a tax liable person that is not registered under the act.(2) A memorandum referred to in Paragraph (1) shall mandatorily state:1. number and date;2. (supplemented, SG No. 108/2006) name and identification number under Article 94, paragraph 2 of the person referred to in Paragraph (1);3. quantity and type of the goods or type of the service;4. date of occurrence of the chargeable event for the supply;5. taxable amount;6. rate of tax;7. grounds for charging of the tax by the person referred to in Paragraph (1);8. amount of tax.(3) (Amended, SG No. 108/2007) The memorandum shall be issued not later than 15 days after the date on which the tax became chargeable.(4) Upon any change of the taxable amount of a supply or upon rescission of a supply on which a memorandum has been issued, the person shall issue a new memorandum which shall mandatorily state:1. number and date of the initial memorandum issued on the supply;2. grounds for issuing the new memorandum;3. the increase/decrease in the taxable amount;4. the increase/decrease in the tax.(5) (Amended, SG No. 108/2007) The memorandum referred to in Paragraph (4) shall be issued not later than 15 days after the date on which the relevant circumstance under Paragraph (4) has occurred.Cash ReceiptsArticle 118. (1) Any person registered and any person not registered under this Act shall be obligated to register and report the supplies/sales effected thereby at a commercial outlet by means of issuing a fiscal cash receipt printed by a fiscal device, regardless of whether another tax document has been requested, and the recipient shall be obligated to receive the fiscal cash receipt and to keep it until he or she leaves the outlet.(2) The fiscal cash receipt (fiscal slip) shall be a paper document recording a sale/supply of goods or service at a commercial outlet which is paid for in cash, by cheque, by voucher, by bank credit or debit card, or by any other cash equivalents, issued using a commissioned fiscal device of an approved type, for which a registration certificate has been authenticated. The fiscal cash receipt (fiscal bill), issued by an Integrated Automated Commercial Activities Management System approved for the relevant commercial outlet, shall also be a fiscal cash receipt (fiscal slip).(3) The application of this Article, as well as the terms, procedure and manner for type approval, for type cancellation, for commissioning/ decommissioning, registration, reporting and service maintenance, expert examination and control of fiscal devices (electronic fiscal memory cash registers, fiscal printers and electronic fiscal memory systems for sale of liquid fuels) the technical and functional requirements for the said devices, the procedure and manner for issuing fiscal cash receipts and the minimum for issuing of fiscal cash receipts, as well as the minimum essential elements of fiscal cash receipts, shall be established by an ordinance of the Minister of Finance.(4) Upon operation of a fiscal device, the persons referred to in Paragraph (1) shall conclude a written contract for service maintenance and repair with service companies registered by the State Agency for Metrological and Technical Surveillance. Service maintenance during the warranty period shall be free of charge within the warranties assumed by the manufacturer.Sales ReportArticle 119. (1) Any supplier, who is a person registered under this Act, shall prepare a sales report on the supplies for which the issuing of an invoice or memorandum is not mandatory, which shall contain consolidated information on such supplies for the relevant tax period.(2) The sales report shall be prepared on the last day of the tax period at the latest.(3) Optionally, the person may prepare separate sales reports for each day of the tax period and/or for each of the commercial outlets thereof.(4) The content of the consolidated information referred to in Paragraph (1) shall be specified by the Regulations for Application of this Act.Sales or purchases Report under Special Arrangements for Taxing(Title supplemented, SG No. 108/2006) Article 120. (1) Any supplier, who is a person registered under this Act, shall prepare a sales report for every type of supply effected during the tax period for which the special arrangements for taxing under Chapters Sixteen, Seventeen and Nineteen herein are applicable, which, as a minimum, shall contain the following information:1. quantity and type of the goods for each particular supply, or type of the service;2. date on which the chargeable event for the supply occurred;3. description of the invoices issued on the supply, when issuing of such invoices is mandatory;4. the elements necessary for assessment of the taxable amount;5. taxable amount;6. rate of tax;7. amount of tax;(2) The sales report referred to in Paragraph (1) shall be prepared on the last day of the tax period at the latest.(3) The person registered under Article 152 herein shall prepare an electronic register on the services performed under Chapter Eighteen herein, which, as a minimum, shall contain the following information on each supply effected:1. name, address and electronic address of the customer;2. type and quantity of the electronically supplied service;3. date on which the chargeable event for the supply occurred;4. number and date of the invoice issued on the supply;5. taxable amount;6. rate of tax as applicable;7. amount of tax;8. mode of payment.(4) (New, SG No. 108/2006) For the delivery of the goods and services, for which the special procedure for taxation is applicable under chapter nineteen "a", where the suppliers are individuals, who are not tax liable persons, the recipient - the person registered under the present Act, shall draw up a report about the purchases made during the tax period, containing at least the following information:1. quality and type of the good or type of service - for each delivery;2. the date, on which the tax for the delivery has become executable;3. the purchase price - for each delivery;4. the tax rate;5. the tax amount.(5) (New, SG No. 108/2006) The report on the sales performed under paragraph 1 shall be drawn up not later than the last day of the tax period.Chapter TwelveOTHER OBLIGATIONSStorage of DocumentsArticle 121. (1) Any taxable person shall ensure the storage of the tax documents issued by or on behalf of the said person, as well as of all tax documents received thereby, for five years after the expiry of the prescription period for extinguishment of the public liability which such documents certify.(2) The authenticity of origin and the integrity of content of the tax documents, as well as the readability thereof, must be guaranteed during the entire period of storage.(3) Paragraphs (1) and (2) shall furthermore apply in respect of the sales reports referred to in Articles 119 and 120 herein, the registers referred to in Article 123 (2) and (3), as well as the customs declarations.Right of Access to Invoices Stored by Electronic Means in Another MemberStateArticle 122. When a taxable person stores invoices issued or received thereby by an electronic means, and when the place of storage is in another Member State, the said person shall be obligated to ensure the competent revenue authorities access by electronic means to the data stored. The revenue authorities shall have the right to download and use the invoices so stored for control purposes.AccountsArticle 123. (1) Each registered person shall keep detailed accounts sufficient for assessment of the liabilities thereof under this Act by the revenue authorities.(2) Each registered person shall be obligated to keep a register of goods under Items 8 to 10 of Article 7 (5) and Items 8 to 10 of Article 13 (4) herein.(3) Each taxable person shall keep a register of the goods transported thereto from another Member State by a person registered for VAT purposes in the said Member State, in connection with the supply of services involving assessment or work on movable things.(4) The form and the essential elements of the registers referred to in Paragraphs (2) and (3) shall be determined by the Regulations for Application of this Act.Chapter ThirteenDECLARATION AND REPORTINGLedgers of AccountArticle 124. (1) Persons registered under this Act shall mandatorily keep the following ledgers:1. a purchase day book;2. a sales day book.(2) (Amended, SG No. 108/2006) The registered person shall be obligated to show the tax documents issued by or on behalf of the said person, as well as the sales reports under Article 119 herein, in the sales day book for the tax period during which the said documents were issued.(3) (Amended, SG No. 108/2006) Notwithstanding Paragraph (2), the tax documents issued in connection with an intra-Community acquisition, including such on a payment received, shall be shown in the sales day book for the tax period during which the tax became chargeable according to Article 51 herein.(4) (Supplemented, SG No. 108/2006) The registered person shall be obligated to show tax the documents received thereby in the purchase day book not later than until the third tax period following the tax period during which the said documents were issued but not later than the last tax period under Article 72, paragraph 1.(5) Notwithstanding Paragraph (4), the registered person shall be obligated to show the credit advices received thereby in the purchase day book for the tax period during which the said advices were issued.(6) The type, content of and requirements for the ledgers covered under this Article, as well as the procedure and manner of showing documents therein, shall be determined by the Regulations for Application of this Act.(7) (New, SG No. 108/2006) The registered persons that during the calendar quarter have made intercommunity deliveries of new vehicles, the recipients of which are persons not registered for VAT purposes in other Member States, shall register the deliveries performed in the register for intercommunity deliveries of new vehicles.(8) (New, SG No. 108/2006) The type, contents and requirements to the register under paragraph 7 shall be determined by the Rules on the Implementation of the Act.Declaration of TaxArticle 125. (1) For every tax period, the registered person shall submit a VAT return, prepared on the basis of the ledgers of account covered under Article 124 herein, with the exception of the cases referred to in Article 157 herein.(2) A registered person, who has effected intra-Community supplies or supplies as an intermediary in a triangular operation for the tax period, shall submit a VIES return on the said supplies for the relevant tax period together with the VAT return referred to in Paragraph (1).(3) Together with the VAT return referred to in Paragraph (1), the registered person shall submit the ledgers of account covered under Article 124 herein for the relevant tax period.(4) A VAT return referred to in Paragraph (1) shall furthermore be submitted where there is no payable or refundable tax, as well as in the cases where the registered person has not effected or received any supplies or acquisitions or has effected any importation for the said tax period.(5) The returns referred to in Paragraphs (1) and (2) and the ledgers of account referred to in Paragraph (3) shall be submitted on or before the 14th day of the month following the tax period to which the said returns and ledgers refer.(6) The VIES return referred to in Paragraph (2) and the ledgers of account referred to in Paragraph (2) shall be submitted on a magnetic or optical data storage medium as well.(7) Alternatively, the returns referred to in Paragraphs (1) and (2) and the ledgers of account referred to in Paragraph (3) may be submitted electronically under the terms and according to the procedure established by the Tax and Social-Insurance Procedure Code . Where the return and the ledgers of account are submitted electronically, Paragraph (6) shall not apply.(8) The VAT return referred to in Paragraph (1) and the return referred to in Paragraph (2) shall be submitted in a standard form specified by the Regulations for Application of this Act.(9) (New, SG No. 108/2006) The register under Article 124, paragraph 7 shall be submitted on a magnetic or optical carrier by the 14th day of the month, following the respective calendar quarter.Corrections of Errors Made in DeclaringArticle 126. (1) Any errors made in returns submitted under Article 125 (1) or (2) herein as a result of documents not shown or shown incorrectly in the ledgers of account covered under Article 124 herein shall be corrected according to the procedure established in Paragraphs (2) and (3).(2) Any errors detected prior to the expiry of the time limit for submission of the VAT return shall be corrected by the person making the necessary corrections and submitting again the returns referred to in Article 125 (1) and (2) herein and the ledgers of account covered under Article 124 herein.(3) Beyond the cases referred to in Paragraph (2), errors shall be corrected by:1. the person making the necessary corrections in the tax period during which the error was detected and including the document that has not been shown in the relevant ledger of account for the same tax period: applicable to documents not shown in the ledgers of account covered under Article 124 herein;2. the person notifying in writing the competent revenue authority which shall take action to modify the liability of the person for the relevant tax period: applicable to documents shown incorrectly in the ledgers of account.PART SEVENSPECIFIC CASESChapter FourteenSPECIFIC CASES OF SUPPLIESSupply Effected by Person Acting in His Own Name and for Account ofAnotherArticle 127. (1) Where a taxable person (commission agent/mandatory) supplies goods or services in his own name and for the account of another, the person shall be presumed to have received and supplied the goods or the services.(2) In the cases under Paragraph (1), three supplies shall be effected:1. a supply between the commission agent/mandatary and the third party, for which the date of occurrence of the chargeable event for and the taxable amount of the supply shall be determined under the general rules of this Act;2. a supply between the principal/mandator and the commission agent/mandatary of the goods or the services subject to the supply referred to in Item 1; the taxable amount of such supply shall be equal to the taxable amount of the supply referred to in Item 1, and the date of occurrence of the chargeable event for such supply shall be determined under the general rules of this Act but may not be later than the date of occurrence of the chargeable event referred to in Item 1;3. a supply of service between the commission agent/mandatary and the principal/mandator; the taxable amount of such supply shall be the compensation of the commission agent/mandatary, which shall include the reimbursement for the expenses incurred thereby in connection with the supply, if so agreed; the date of occurrence of the chargeable event for such supply shall be determined under the general rules of this Act.(3) Where the commission agent/mandatary is a person not registered under this Act, for assessment of the taxable amount for the supply referred to in Item 2 of Paragraph (2), the agreed price for the supply referred to in Item 1 of Paragraph (2) shall be deemed to include the tax.(4) Where the taxable amount of the supply referred to in Item 4 of Article 6 (2) herein differs from the taxable amount referred to in Item 1 of Paragraph (2), grounds for modification of the taxable amount of the supply referred to in Item 4 of Article 6 (2) herein shall arise on the date of occurrence of the chargeable event for the supply referred to in Item 1 of Paragraph (2).Ancillary SupplyArticle 128. Where the principal supply is accompanied by another supply and the payment is determined as a total, it shall be deemed that there is only one principal supply.Warranty ServicesArticle 129. (1) The provision of goods by a manufacturer or a person authorized thereby for the purpose of replacement or elimination of defects under the terms of agreed warranty services, which is carried out for the account of the manufacturer, shall not be considered to be a supply.(2) The provision of a service for the elimination of defects under the terms of agreed warranty services shall not be considered to be a supply where the following conditions are simultaneously fulfilled:1. the service is performed by a person authorized to do so by the manufacturer;2. the manufacturer is not established within the territory of the country;3. the warranty services are for the account of the manufacturer.(3) The provision of goods and services for elimination of defects by a supplier, where the elimination of the defects is for the account of the said supplier in connection with amounts retains under Item 2 of Article 26 (4) herein, shall not be considered to be a supply.BarterArticle 130. (1) When there is a supply under which the consideration (in full or in part) is expressed in goods or services, it shall be considered that there are two counter supplies, with each of the suppliers being considered to be a seller of what the said supplier gives and buyer of what the said suppliers receives.(2) The chargeable event for both supplies referred to in Paragraph (1) shall occur on the date of occurrence of the chargeable event for whichever of the said supplies is the earlier.Supply of Goods or Services upon Public Auction under Tax andSocial-Insurance Procedure Code or under Code of Civil Procedure or Saleunder Registered Pledges Act Article 131. (1) In the cases of public auction according to the procedure established by the Tax and Social-Insurance Procedure Code or by the Code of Civil Procedure or upon a sale according to the procedure established by the Registered Pledges Act or by Article 60 of the Credit Institutions Act and where the debtor is a person registered under this Act, the public enforcement agent, the bailiff or the pledgee shall be obligated, within five days after receipt of the full price of the sale:1. to pay the tax payable under the sale by crediting the bank account of the competent National Revenue Agency territorial directorate whereat the debtor is registered under this Act;2. to prepare a document on the sale, as specified in the Regulations for Application of this Act, in triplicate: one copy for the public enforcement agent/bailiff/pledgee, one copy for the debtor, and one copy for the recipient (buyer);3. to provide the document referred to in Item 2 to the debtor and the recipient within three days after the issuing of the said document;4. to notify the competent National Revenue Agency territorial directorate whereat the debtor is registered under this Act of the document issued under Item 2 according to a procedure established by the Regulations for Application of this Act.(2) In the cases under Paragraph (1), the selling price shall be deemed to be inclusive of the tax, and the said tax shall be remitted (paid) by the recipient (buyer) to the public enforcement agent/bailiff/pledgee together with the selling price.(3) (Amended, SG No. 59/2007) Paragraph (1) shall not apply where the thing has been awarded to the execution creditor on a motion thereby in payment of the claim thereof according to the procedure established by the Tax and Social Insurance Procedure Code. (4) (Amended, SG No. 59/2007) In the cases under Paragraph (3), the taxable amount of the supply shall be the price of the thing determined according to the procedure established by Article 250 (3) or Article 254 (7) of the Tax and Social Insurance Procedure Code and the tax shall be deemed included in the price of the said thing.(5) (New, SG No. 113/2007) In case the competent court repeals the public auction or sale under Paragraph (1) the remitted tax on the auction/sale shall be refunded according to a procedure set out by the Regulations for Application of this Act. Chapter FifteenSPECIFIC CASES OF REGISTRATION AND DEREGISTRATIONCompulsory Registration as Result of TransformationArticle 132. (1) Registration under this Act shall be compulsory for any person who acquires goods and services from a registered person in pursuance of Article 10 (1) herein.(2) The registration referred to in Paragraph (1) shall be effected by submission of an application for registration within 14 days after the recording of the circumstance referred to in Article 10 (1) herein in the Commercial Register.(3) The date of registration in the cases referred to in Paragraph (1) shall be the date of recording of the circumstance referred to in Article 10 herein in the Commercial Register.(4) In the cases of registration under Paragraph (1), the registration inventory referred to in Item 3 of Article 74 (2) herein for the assets available (excluding the assets received in pursuance of Article 10 herein) shall be drawn up at the date of registration under Paragraph (3) and shall be submitted on or before the 14th day after that date.Registration of Non-Resident who Is Not Established within CountryArticle 133. (1) Any non-resident person, who has a fixed establishment within the territory of the country from which the said person carries out economic activity and who satisfies the conditions of this Act for compulsory registration or for optional registration, shall be registered through the agency of an accredited representative, with the exception of branches of non-residents which shall be registered according to the standard procedure.(2) Any non-resident person, who is not established within the territory of the country but effects taxable supplies whereof the place of transaction is within the territory of the country and who satisfies the conditions of this Act for compulsory registration or for optional registration, shall be registered through the agency of an accredited representative.(3) (Amended, SG No. 108/2007) Registration under Paragraphs (1) and (2) shall be effected according to the procedure established by Article 101 herein at the National Revenue Agency territorial directorate under Article 8 of the Tax Social-Insurance Procedure Code. (4) Upon dissolution of the person who is an accredited representative, or upon occurrence of other circumstances which lead to an impossibility for such person to fulfil the obligations thereof under this Act, the non-resident person shall be obligated to designate a new accredited representative within 14 days after the date of occurrence of the intervening circumstances.(5) Paragraphs (1) to (4) shall not apply to any non-resident persons supplying services under Chapter Eighteen herein.Termination of Registration (Deregistration) of Non-Residents Registeredunder This ActArticle 134. (1) The registration of a non-resident person registered in pursuance of Article 133 herein shall be terminated if the general conditions for deregistration under this Act are fulfilled.(2) Deregistration under Paragraph (1) shall be effected according to the procedure established by Article 109 herein.(3) Where the non-resident person fails to designate a new accredited representative within the time limit referred to in Article 133 (4) herein, the registration of the said person shall be terminated on the initiative of the revenue authority by issuing of a deregistration act.(4) In the cases referred to in Paragraph (3), the deregistration act shall not be delivered to the person, and the date of deregistration shall be the date of expiry of the time limit referred to in Article 133 (4) herein.(5) Upon deregistration under Paragraphs (1) and (3), the non-resident person shall be presumed to effect a supply under Article 111 herein.Accredited RepresentativeArticle 135. (1) (Amended, SG No. 108/2007) Only a natural person capable of performing juridical act with permanent address or permanently residing only in the country, or a local legal person which is not subject to liquidation proceeding or has not been adjudicated bankrupt and does not incur chargeable and unpaid tax liabilities and liabilities for social-insurance contributions collected by the National Revenue Agency may be an accredited representative of a non-resident person.(2) The accredited representative shall represent the non-resident person referred to in Article 133 herein in all tax legal relations of the said person which arise in pursuance of this Act.(3) The accredited representative shall incur solidary and unlimited liability for the obligations under this Act of the registered non-resident person.PART EIGHTSPECIAL TAXING ARRANGEMENTSChapter SixteenSERVICES TO TOURISTSSupply of Single Service to TouristsArticle 136. (1) The provision by a tour operator or a travel agent, acting in his own name, of goods or services in connection with the journey of a tourist, for the carrying out of which goods or services for the direct benefit of the tourist are used, shall be treated as a supply of a single service to tourists.(2) The goods and services referred to in Paragraph (1) directly benefiting the tourist shall be the goods and services which the tour operator or the travel agent has received from other taxable persons and has provided to the tourist without alteration.Place of Transaction of Single Service to TouristsArticle 137. The place of transaction of a single service to tourists shall be the place where the tour operator or the travel agent has established the economic activity thereof or has a fixed establishment from which the said operator or agent effects the transaction.Date of Occurrence of Chargeable Event and Chargeability of TaxArticle 138. (1) The date of occurrence of the chargeable event for the supply of a single service to tourists shall be the date on which the tourist benefits from the supply for the first time.(2) The tax on the supply of a single service to tourists shall become chargeable on the date of occurrence of the chargeable event referred to in Paragraph (1).Taxable Amount of Single Service to TouristsArticle 139. (1) The taxable amount of the supply of a single service to tourists shall be the margin which represents the difference, less the amount of the tax payable, between:1. the total amount, which the tour operator or travel agent has received or will receive from the customer or the third party for the supply, including any subsidies and investment grants directly linked to such supply, the taxes and fees, as well as the incidental expenses such as commission and insurance, charged by the supplier to the recipient but exclusive of any trade discounts allowed;2. the amount which has been paid or will be paid for supplies of goods and services received by the tour operator or the travel agent from other taxable persons for the direct benefit of the tourist, including the tax under this Act.(2) The taxable amount referred to in Paragraph (1) may not be a negative quantity.Zero-Rating upon Supply of Single Service to TouristsArticle 140. (1) The supply of a single service to tourists shall be liable to tax at the zero rate, if the supplies of goods and services are for the direct benefit of the tourist, shall have a place of transaction within the territory of third countries and territories.(2) Where only part of the supplies of goods and services referred to in Paragraph (1) which are for the direct benefit of the tourist have a place of transaction within the territory of third countries and territories, only the part of the said supplies corresponding to the supply of the single service to tourists shall be liable to tax at the zero rate.Credit for Input Tax to Tour Operator or Travel AgentArticle 141. The tour operator or the travel agent shall not have the right to deduct credit for input tax in respect of the supplies of goods and services received from other taxable persons for the direct benefit of the tourist.Charging Tax and Documenting Supply of Single Service to TouristsArticle 142. (1) The tax on the supply of a single service to tourists shall be charged by the issuing of a memorandum.(2) The supply of a single service to tourists shall be documented and reported according to a procedure established by the Regulations for Application of this Act.Chapter SeventeenSPECIAL ARRANGEMENTS FOR TAXING PRICE MARGINSupply of Second-Hand Goods, Works of Art, Collectors' Items andAntiquesArticle 143. (1) (Supplemented, SG No. 108/2006) The provisions in this Chapter shall apply to a supply effected by a taxable dealer of second-hand goods, works of art, collectors' items, antiques, supplied to the said dealer within the territory of the country (including imported) or from the territory of another Member State by:1. a non-taxable person;2. another taxable person as a subject of an exempt supply under Article 50 herein;3. another taxable person who is not registered under this Act;4. another taxable dealer applying the special arrangements for taxing the price margin.(2) The provision of Paragraph (1) shall not apply upon an intra-Community supply of new means of transport.(3) Taxable dealers shall have the right to apply the provisions of this Chapter also in respect of a supply of:1. works of art, collectors' items or antiques which they have imported;2. works of art supplied to them by their creators or by the successors in title of the said creators.(4) (Amended, SG No. 108/2006) The right of option under Paragraph (3) shall be exercised by means of submission of a notification to the competent National Revenue Agency territorial directorate.(5) Taxable dealers who have exercised a right of option under Paragraph (4) shall apply the special arrangements for taxing the margin for a supply covered under Paragraph (3) as from the first day of the month following the month of submission of the notification, and for a period not shorter than 24 months including the month following the month of submission of the notification.(6) After the lapse of the time period referred to in Paragraph (5), the taxable dealer may discontinue the application of the special arrangements for taxing the margin for supplies covered under Paragraph (3) by submitting a notification to the competent National Revenue Agency territorial directorate. The application of the special arrangements for taxing the margin shall be discontinued as from the month following the month of submission of the notification.(7) Notifications referred to in Paragraphs (4) and (6) shall be submitted in a standard form specified in the Regulations for Application of this Act.Place of Transaction, Chargeable Event and Chargeability of Tax onSupplies of Goods under Special Arrangements for Taxing MarginArticle 144. (1) The place of transaction of supplies covered under Article 143 herein shall be the place where the taxable dealer has the registered office or fixed establishment from which the said dealer effects such supplies.(2) The chargeable event for the supplies covered under Article 143 herein shall occur according to the general rules under this Act.(3) The tax on supplies covered under Article 143 herein shall become chargeable on the last day of the tax period during which the chargeable event occurred according to Paragraph (2).(4) The tax shall charged by the issuing of a memorandum according to a procedure and in a manner established by the Regulations for Application of this Act.Taxable AmountArticle 145. (1) The taxable amount of the supply of goods under this Chapter shall be the price margin which represents the difference, less the amount of the tax payable, between:1. the selling price, representing the total amount which the taxable dealer has received or will receive from the customer or the third party for the supply, including any subsidies and investment grants directly linked to such supply, the taxes and fees, as well as the incidental expenses on packing, transport, commissions and insurance, charged by the supplier to the recipient but exclusive of any trade discounts allowed;2. the amount which has been paid or will be paid for goods received by the persons under Article 143 (1) and (3) herein, including the tax under this Act, and where the goods have been imported, the taxable amount upon importation, including the tax under this Act.(2) The taxable amount referred to in Paragraph (1) may not be a negative quantity.Supply of Goods under Special Arrangements for Taxing Margin at ZeroRateArticle 146. The supply of goods under the special arrangements for taxing the margin shall be liable to tax at the zero rate where the conditions established by Article 28 herein are fulfilled in respect of the supply.Credit for Input TaxArticle 147. (1) The taxable dealer shall have the right to credit for input tax in respect of any goods and services acquired or imported thereby which the said dealer uses only for the effecting of supplies under this Chapter.(2) The total credit for input tax referred to in Paragraph (1) used for the year may not exceed the total amount of the tax charged by the dealer for supplies covered under Article 143 herein,(3) Where the credit for input tax used during the year exceeds the tax charged during the year, a tax to the amount of the excess shall be chargeable from the person.(4) The excess referred to in Paragraph (3) shall be declared in the VAT return for the last tax period of the year.(5) The taxable dealer shall not have the right to deduct credit for input tax in respect of any goods received or imported thereby to which the said dealer applies the special arrangements for taxing the margin.Documenting Supply of Goods under Special Arrangements for Taxing MarginArticle 148. The supply of goods under the special arrangements for taxing the margin shall be documented and reported according to a procedure established by the Regulations for Application of this Act.Taxable Turnover of Taxable Dealer from Supplies of Goods under SpecialArrangements for Taxing MarginArticle 149. The taxable turnover of a taxable dealer from supplies of goods under the special arrangements for taxing the margin shall be the sum total of the margins.Charging Tax on Goods in Stock upon Taxable Dealer's DeregistrationArticle 150. (1) The deregistration of the taxable dealer shall be effected according to the general conditions for deregistration of this Act.(2) Upon deregistration, the taxable dealer shall be liable for a tax on the goods in stock covered under this Chapter. The amount of the said tax shall be determined on the basis of the average margin achieved by the taxable dealer during the 12 months last preceding the deregistration date.(3) The procedure and manner for determining the average margin referred to in Paragraph (2) shall be established by the Regulations for Application of this Act.(4) Upon deregistration, the taxable dealer shall be liable for tax under Article 111 herein, with the exception of the tax on the goods in stock referred to in Paragraph (2).Right of OptionArticle 151. (1) A taxable dealer may apply the standard procedure under this Act for taxing the supply of second-hand goods, works of art, collectors' items and antiques.(2) The right referred to in Paragraph (1) shall be exercised by the person for each particular supply and, to this end, the invoice issued shall not state that the special arrangements under this Chapter are applied.(3) The taxable amount of the supply shall be determined according to the procedure established by Articles 26 and 27 herein and may not be lower than the taxable amount upon acquisition of the goods or lower than the taxable amount upon importation.(4) In the cases referred to in Paragraph (2), the right to credit for input tax in respect of the goods received or imported by the person to which the special arrangements for taxing the margin are not applied shall arise and shall be exercised during the tax period in which the tax on the subsequent supply of such goods has become chargeable.(5) The supplies referred to in Paragraph (2) shall be documents according to the standard procedure established by this Act.(6) Where the taxable dealer applies both the special arrangements for taxing the margin and the standard procedure for taxing the supplies, the said dealer shall be obligated to keep separate accounts for the supplies as specified by the Regulations for Application of this Act.Chapter EighteenTAXING SUPPLIES OF SERVICES SUPPLIED ELECTRONICALLY BY PERSONSWHO ARE NOT ESTABLISHED WITHIN COMMUNITYSpecial RegistrationArticle 152. (1) Any taxable person for which the following conditions are simultaneously fulfilled shall have the right to register under this Chapter:1. the said person effects supplies of electronically supplied services to recipients who are non-taxable persons who are established or have a permanent address, or usually reside in a Member State;2. the said person is not established within the territory of the Community;3. the said person is not obligated to register for VAT purposes on any other grounds within the territory of the country or within the territory of another Member State.(2) The right referred to in Paragraph (1) shall be exercised by the person submitting, by electronic means, an application for registration to the Sofia Territorial Directorate of the National Revenue Agency.(3) Together with the application referred to in Paragraph (1), the person shall provide the following information:1. name, mailing address, electronic addresses, including Internet sites;2. a national tax number, if any;3. a statement certifying that the person is not registered for VAT purposes in another Member State.(4) The person shall notify the territorial directorate referred to in Paragraph (2) by electronic means of any intervening changes in the information provided under Paragraph (3).(5) Within seven days after receipt of the application, the territorial directorate referred to in Paragraph (2) shall notify the person by electronic means of the registration effected according to the procedure established by this Chapter, of the identification number referred to in Article 94 (2) herein, and of the date of registration.(6) The first day of the month following the month of the notification referred to in Paragraph (5) shall be considered to be a date of registration.Termination of Special RegistrationArticle 153. (1) The registration referred to in Article 152 herein shall terminate on the initiative of the person where:1. the person terminates the activity thereof under this Chapter;2. the person no longer fulfils the conditions under Article 152 (1) herein.(2) For termination of the registration under Paragraph (1), the person shall submit an application for termination of registration by electronic means to the territorial directorate referred to in Article 152 (2) herein.(3) The registration under Article 152 herein may be terminated on the initiative of the revenue administration where:1. the administration ascertains that the activity of the person has been terminated, or2. the person does not fulfil the conditions under Article 152 (1) herein, or3. the person systematically fails to comply with the provisions of this Chapter.(4) In the cases covered under Paragraph (3), the territorial directorate referred to in Article 152 (2) shall notify the person that his registration has been terminated, indicating also the date of termination of registration.(5) In the cases covered under Paragraph (1), the registration shall terminate on the date of submission of the application referred to in Paragraph (2).(6) In the cases covered under Paragraph (3), the registration shall terminate on the date of the notification referred to in Paragraph (4).Place of Transaction of Supplies of Electronically Supplied ServicesArticle 154. The place of transaction of services supplied electronically by a registered person under Article 152 herein shall be the Member State in which the recipient under Item 1 of Article 152 (1) herein is established.Taxable Amount, Date of Occurrence of Chargeable Event and Chargeabilityof TaxArticle 155. The taxable amount, the date of occurrence of the chargeable event and the chargeability of tax on supplies of services under this Chapter shall be determined under the general rules of this Act.Rate of TaxArticle 156. The rate of tax on the supplies of electronically supplied services under this Chapter shall be the rate applicable in the Member State in which the recipient referred to in Item 1 of Article 152 (1) herein is established.Tax Period, Declaration and Remittance of TaxArticle 157. (1) The tax period for persons registered under this Chapter shall be three months and shall coincide with a calendar quarter.(2) A person registered under this Chapter shall submit a return completed in a standard form specified in the Regulations for Application of this Act for each tax period within 20 days after the end of the period, regardless of whether any supplies of electronically supplied services have been effected during the said period. The said return shall be submitted to the territorial directorate referred to in Article 152 (2) herein by electronic means.(3) The return shall state the identification number of the registered person, the total value, net of value added tax, of the supplies for each separate Member State, the total amount of tax for each Member State, the rate of tax applicable in the respective Member State and the total value of the tax payable for all Member States for the tax period.(4) The values covered under Paragraph (3) shall be stated in Euro and in Bulgarian leva, and Article 26 (6) herein shall apply to the translation.(5) The tax chargeable for the tax period shall be remitted by crediting the account of the territorial tax directorate referred to in Article 152 (2) herein within the time limit for submission of the return under Paragraph (2).Credit for Input Tax and Tax RefundArticle 158. (1) Persons registered under this Chapter shall not have the right to credit for input tax in respect of any supplies of goods and services received within the territory of the country and from importation.(2) Persons registered under this Chapter shall have the right to a refund of the tax paid within the territory of the country according to the procedure established by Item 2 of Article 81(1) herein.Documentation and Provision of InformationArticle 159. (1) Any person registered under this Chapter shall be obligated to keep an electronic register referred to in Article 120 (3) herein for the supplies of services effected under this Chapter in a manner enabling the tax administration of the Member States in which the recipients are established to determine whether the information stated in the return referred to in Article 158 (2) herein is full and accurate.(2) Upon request, the information from the electronic register must be provided by electronic means to the Bulgarian revenue administration or to the competent authorities of the Member States in which the recipients are established.(3) The information in the electronic register shall be stored for a period of not less than ten years reckoned from the end of the year during which the relevant supply was effected.Chapter NineteenINVESTMENT GOLDSupplies of Investment GoldArticle 160. (1) Supplies concerning investment gold shall be exempt where, for the purposes of this Act, the said supplies are:1. supplies of investment gold, including: supplies of investment gold represented by certificates for allocated or unallocated gold; gold traded on gold accounts, gold loans and swaps, involving the right of ownership or claim in respect to investment gold; supplies concerning investment gold involving futures and forward contracts leading to a transfer of the right of ownership or claim in respect of investment gold;2. services of agents who act in the name and for the account of another, in connection with supplies of investment gold.(2) Taxable persons, who produce investment gold or transform gold into investment gold, as well as taxable persons who normally supply gold for industrial purposes, shall be allowed a right of option for taxation of the supplies covered under Item 1 of Paragraph (1). Taxable persons who perform intermediation services in respect or supplies of investment gold shall be allowed a right of option for taxation of the supplies referred to in Item 2 of Paragraph (1) when the supply in connection with which the intermediation service was provided is taxable.(3) The right referred to in Paragraph (2) may be exercised where the following conditions are simultaneously fulfilled:1. a person registered under this Act is a recipient of the supplies;2. the invoice issued on the supply states that the tax is to be charged from the recipient.Chargeability of Tax from RecipientArticle 161. (1) The tax shall be charged from the recipient who is a person registered under this Act upon:1. supplies of gold material or semi-manufactured products of a purity of 325 thousandths or greater;2. supplies concerning investment gold where the right referred to in Article 160 herein has been exercised and the invoice issued by the supplier states that the tax is to be charged from the recipient.(2) The tax shall be charged by the issuing of a memorandum.Right to Credit for Input TaxArticle 162. (1) Although the subsequent supply concerning investment gold is exempt, registered persons shall have the right to credit for input tax in respect of:1. the tax charged from them according to the procedure established by Article 161 herein;2. the received supply or importation of gold other than investment gold which has then been transformed into investment gold by the person or for the account thereof;3. received services leading to a change of form, weight or purity of gold, including investment gold.(2) Although the subsequent supply concerning investment gold is exempt, registered persons who produce investment gold or transform gold into investment gold shall have the right to deduct credit for input tax in respect of the supplies or importation within the territory of the country of goods or services related to the production or transformation of such gold.DocumentingArticle 163. (1) The supplies concerning investment gold, as well as the supplies involving gold material or semi-manufactured products of a purity of 325 thousandths or greater, shall be documented by issuing of an invoice which, in addition to the essential elements covered under Article 114 herein, must also state:1. description of the gold sufficient for the identification thereof, as a minimum: form, weight, purity etc.;2. date and address of the physical delivery of the gold;3. name, address and Standard Public Registry Personal Number and/or type, number, issuer of an official identification document of the persons who prepared the document.(2) The invoices referred to in Paragraph (1) shall be stored for a period of ten years reckoned from the end of the year during which the relevant supply was effected.Chapter Nineteen "a"(New, SG No. 108/2006)DELIVERYDEDELIVERY OF GOODS AND SERVICES ACCORDING TO APPENDIX No 2 WITHA PLACE OF EXECUTION THE TERRITORY OF THE COUNTRY, WHERE TAX ISEXECUTABLE BY THE RECIPIENTTax event and executable taxArticle 163a. (New, SG No. 108/2006) (1) The tax event of the goods and services delivered, specified in appendix № 2, shall occur according to the general rules of the present Act.(2) The tax for the supplies under paragraph 1 shall be executable by the recipient - a person registered under this Act, regardless of whether the supplier is a tax liable person or not.(3) The tax for the supplies under paragraph 1 shall become executable according to the procedures of Article 25, paragraphs 5 and 6.Tax accruing by the recipientArticle 163b. (New, SG No. 108/2006) (1) Tax shall be accrued by the recipient via the issuance of:1. a protocol under Article 117, paragraph 2 within the deadline set in Article 117, paragraph 3 - when the supplier is a tax liable person.2. a general protocol of all supplies, for which tax has become executable in during respective tax period - when the suppliers are natural persons that are not liable for tax; the protocol shall be issued on the last day of the respective tax period.(2) The protocol under paragraph 1, sub-paragraph 2 must contain:1. a number and a date;2. the name and the identification number under Article 94, paragraph 2 of the person, who issues it;3. a tax period;4. a description of the goods and services;5. the total amount of the purchase prices of the goods and services under item 4 for the tax period;6. accrued tax for the period.Documenting the suppliesArticle 163c. (New, SG No. 108/2006) When the supplier is a tax liable person, the supplies of goods and services, specified in appendix № 2, shall be documented by the issuance of an invoice, in which "Article 163a, paragraph 2" shall be indicated as grounds for not accruing tax.Chapter TwentyINVESTMENT PROJECTSSpecial Arrangements for Charging Tax upon ImportationArticle 164. (1) Notwithstanding Article 56 herein, the tax upon importation of goods may be charged by the person registered under this Act if the said person holds a permission issued according to the procedure established by Article 166 herein and imports goods (with the exception of excisable goods) according to a list approved by the Minister of Finance.(2) The importer shall exercise the right thereof under Paragraph (1) by:1. declaring in the customs declaration as submitted that the importer will use this arrangement;2. declaring that at the time of effecting the importation the importer is a person registered under this Act and does not incur chargeable and unpaid tax liabilities and liabilities for social insurance contributions collected by the National Revenue Agency.(3) Where the importer has exercised the right thereof under Paragraph (1), the customs authorities shall admit the release of the goods without the tax being effectively remitted or secured.(4) The importer shall charge the tax referred to in Paragraph (1) according to the procedure established by Article 57 (3) herein.(5) The importer shall have the right to credit for input tax in respect of the tax charged under Paragraph (4) under the terms established by Articles 69 and 73 herein.Shortened 30-Day Period for Tax RefundArticle 165. Any person registered under this Act shall have the right to refund the tax referred to in Article 88 (3) herein within 30 days after submission of the VAT return where the conditions referred to in Article 92 (4) are fulfilled.Issuing PermissionArticle 166. (1) A permission to apply the special arrangements for charging tax upon importation and for refund of the tax within 30 days shall be issued to any person who simultaneously satisfies the following conditions:1. the person implements an investment project approved by the Minister of Finance;2. the person is registered under this Act;3. the person does not incur chargeable and unpaid tax liabilities and liabilities for social insurance contributions collected by the National Revenue Agency;4. (amended, SG No. 86/2006, No. 113/2007) the conditions for grant of minimum aids under Regulation (EC) No. 1998/2006 of the Commission on the Application of Articles 87 and 88 of the Treaty to de minimis aid exist.(2) The investment project shall be approved by the Minister of Finance where the following circumstances simultaneously exist:1. the time limit for implementation of the project does not exceed two years;2. the amount of investment exceeds BGN 10 million for a period not longer than two years;3. more than 50 new jobs are created;4. the person is capable of financing the project, as well as of constructing and maintaining facilities ensuring the implementation of the said project, such as:(a) agreements on credit and commercial loans;(b) financial lease contracts;(c) bank and other guarantees;(d) letters of commitment to finance the project by the equity owners;(e) own funds;(f) the projected cash inflows are true, correspond to market conditions and are sufficient to cover the investment and current costs of the project.(3) A permission shall be issued for a period of up to two years on the basis of a request in writing whereto the following documents shall be attached:1. designs, elaborations and plans for construction and maintenance of facilities and a business plan for economic stability and profitability of the investment project;2. an analysis of the financial position, confirmed by a registered auditor or a specialized audit enterprise within the meaning given by the Independent Financial Audit Act , in case the person has operated for more than one year; the full annual financial statements for the periods analysed shall be attached to the said analysis;3. documents certifying the capabilities to finance the project under Item 2 of Paragraph (2);4. a list of the goods which the person is to import in implementation of the investment project; the said list shall mandatorily contain information on the quantity, value, code under the Combined Nomenclature of the Republic of Bulgaria, and the number of the contract for the supply of the goods;5. certificates on the circumstances covered under Items 2 and 3 of Paragraph (1);6. (amended, SG No. 113/2007) a declaration by the persons of the amount of the received minimum aids, irrespective of their form and source, for the last three tax years; received minimum aids for the period shall not exceed the lev equivalent of EUR 200,000 at the official BGN/EUR exchange rate at the date of the permission; for undertakings carrying out road transport activity the total amount of the minimum aid shall be the lev equivalent of EUR 100,000 at the date of the permission; these thresholds shall apply irrespective of whether the aid is financed in full or in part with resources of the European Community.(4) (New, SG No. 113/2007) To determine the maximum admissible intensity of the aid introduced by a National Regional State Aid Map (OB, No. C 73 of 30 March 2007), the minimum aid under Item 6 of Paragraph (3) shall be added to another state aid received for the same investment project, approved by a decision of the European Commission or in respect of which Article 9 of the State Aids Act applies. (5) (Amended, SG No. 86/2006, renumbered from Paragraph 4, No. 113/2007) The Minister of Finance shall issue permission within one month after receipt of the request if the requirements covered under Paragraphs (1) and (2) are fulfilled. Where notification of the European Commission is required according to the State Aids Act and the Regulations for Application thereof, the permission shall be issued within one month after the date of the decision of the European Commission whereby the grant of the aid is authorized.(6) (New, SG No. 113/2007) The permission under Paragraph (5) shall not be issued where on receipt of the minimum aid under this Article the maximum admissible intensity of the aid fixed in the National Regional State Aid Map is exceeded.(7) (New, SG No. 113/2007) The permission under Paragraph (5) shall specify the amount of the minimum aid for the approved investment project.(8) (Renumbered from Paragraph 5, SG No. 113/2007) A permission shall be issued or refused by a written order of the Minister of Finance.(9) (Renumbered from Paragraph 6, amended SG No. 113/2007) Within six months after the issuing of the permission under Paragraph (5), it shall be permissible to issue a new permission on goods which are to be imported or acquired additionally in implementation of the investment project as already approved. Adjustments to a permission already issued shall be inadmissible.(10) (Renumbered from Paragraph 7, SG No. 113/2007) A refusal to issue a permission shall be appealable according to the procedure established by the Administrative Procedure Code. Withdrawal of PermissionArticle 167. (1) A permission issued shall be withdrawn in the following cases:1. where the person ceases to satisfy the conditions covered under Article 166 (1) herein;2. upon the lapse of the period referred to in Article 166 (3) herein.(2) Where the relevant competent authority ascertains that the conditions under Article 166 herein are not fulfilled, the said authority shall forthwith notify the Minister of Finance.(3) The permission shall be withdrawn by an order of the Minister of Finance, which shall be appealable according to the procedure established by the Administrative Procedure Code. (4) The Minister of Finance shall provide the customs administration with information on the permissions issued and revoked, as well as with the lists referred to in Item 4 of Article 166 (3) herein.Chapter Twenty-OneSPECIAL ARRANGEMENTS REGARDING NEW MEANS OF TRANSPORTSpecial Arrangements for Intra-Community Supply and Intra-CommunityAcquisition of New Means of TransportArticle 168. (1) Any person not registered under this Act, who effects an intra-Community acquisition of a new means of transport referred to in Article 13 (2) herein or effects an incidental intra-Community supply of a new means of transport referred to in Article 7 (2) herein, shall be obligated to declare the intra-Community acquisition or the incidental supply as effected within 14 days after the expiry of the tax period during which the tax on the acquisition or the supply became chargeable under Articles 63 or 51 herein.(2) Declaration shall be effected by the submission of a return at the National Revenue Agency territorial directorate whereat the person is registered or is subject to registration under the Tax and Social-Insurance Procedure Code. (3) The return referred to in Paragraph (2) shall be submitted in a standard form specified by the Regulations for Application of this Act.(4) The tax due on the intra-Community acquisition shall be remitted according to the procedure and within the time limits established by Article 91 herein.(5) In the cases of effecting of an intra-Community acquisition under Paragraph (1), credit for input tax paid on the acquired means of transport shall become refundable in respect of the person if the following conditions are fulfilled:1. the person:(a) holds an invoice satisfying the requirements of Article 114 herein: where the means of transport has been purchased within the territory of the country, or(b) holds a customs declaration: in the cases of importation, or(c) the person has submitted a return under Paragraph (2) on the intra-Community acquisition: in the cases of intra-Community acquisition under Paragraph (1);2. the tax on the intra-Community acquisition or on the importation has been remitted to Executive Budget Revenue according to the procedure and within the time limits established by Articles 90 and 91 herein.(6) The right to refund of the tax under Paragraph (5) shall be exercised by stating the amount of the input tax claimable in the return referred to in Paragraph (2).(7) The amount of the tax refundable under Paragraph (5) may not exceed the tax which would have been chargeable from the person if the supply was not liable to tax at the zero rate.(8) Where a natural person who is not a sole trader effects an incidental supply referred to in Paragraph (1), the said person shall issue a document which contains the essential elements covered under Items 3 to 15 of Article 114 (1) herein.PART NINEMISCELLANEOUS PROVISIONSChapter Twenty-TwoINFORMATIONPublic InformationArticle 169. (1) Public information shall be the information on the registration under this Act which includes:1. business name, identification number referred to in Article 84 of the Tax and Social-Insurance Procedure Code , identification number referred to in Article 94 (2) herein, and mailing address of the person;2. date of registration and termination of registration;3. date of posting of the circumstances referred to in Items 1 and 2.(2) The information covered under Paragraph (1) shall be accessible and shall be posted on the Internet site of the revenue administration.(3) The information covered under Paragraph (1) may alternatively be provided by the revenue administration upon a person's written request.(4) The circumstances covered under Paragraph (1) shall be presumed known to bona fide third parties as from the date of posting of the information under Item 3 of Paragraph (1).Exchange of Information with Customs AdministrationArticle 170. (1) The customs administration shall provide the revenue administration with information, by electronic means, on the accepted customs declarations and the received payments of tax upon importation within 14 days after the end of every calendar month.(2) Such information shall be supplied under terms and according to a procedure established by an order of the Minister of Finance.Exchange of Information with Tax Administrations of Other Member StatesArticle 171. (1) The revenue administration shall be free to exchange information relating to the levy of value added tax with the tax administrations of other Member States, provided that such information will be used only for assessment of the tax liabilities of persons and/or in the course of appealing the amount of such tax liabilities.(2) The information received according to the procedure established by Paragraph (1) from other Member States may be used as evidence for assessment of liabilities under this Act, as well as in administrative and court procedures.(3) Paragraphs (1) and (2) shall furthermore apply in the cases where the information is exchanged by electronic means.Chapter Twenty-ThreeAPPLICATION OF INTERNATIONAL TREATIES AND REFUND OF TAX TO PERSONS NOTESTABLISHED WITHIN TERRITORY OF COUNTRYImportation Exempted by Virtue of International Treaties and Importationof Goods by Armed Forces of Other StatesArticle 172. (1) Exemption from tax shall be granted in respect of importation of goods for which a law or an international treaty, ratified and promulgated according to the relevant procedure, provides for exemption of the importation from taxes, levies or other charges (payments, duties) having an effect equivalent to an indirect tax, including where such treaties are financed by resources of the executive budget or the municipal budgets or by loans guaranteed by the Government.(2) (Supplemented, SG No. 113/2007) Exemption from tax shall be granted in respect of importation of goods imported by the staff/headquarters of the North Atlantic Treaty Organisation or by the armed forces of other States which are parties to the North Atlantic Treaty for the use by such armed forces or by the civilian staff accompanying them, or for supplying their messes or canteens, where such forces take part in the common defence effort of the North Atlantic Treaty within the territory of the country.(3) The procedure for application of Paragraphs (1) and (2) shall be established by the Regulations for Application of this Act.Supplies Exempted by Virtue of International Treatiesand Supplies in Which Recipients Are Armed Forces of OtherStates or Institutions of European UnionArticle 173. (1) Any supplies, which are exempted from value added tax by virtue of international treaties, agreements, accords conventions or other such whereto the Republic of Bulgaria is a party, which are ratified and promulgated according to the relevant procedure, shall be liable to tax at the zero rate, including on the part of the supply which is financed by resources of the executive budget or the municipal budgets or by loans guaranteed by the Government.(2) For application of the zero rate, the supplier shall be obligated to request in writing an opinion as to the grounds for such exemption from the competent National Revenue Agency territorial directorate. Documents proving the grounds for application of the exemption, specified by the Regulations for Application of this Act, shall be attached to any such request.(3) The restrictions of the right to credit for input tax under Article 70 herein shall not apply in respect of goods or services which are used only for the effecting of supplies referred to in Paragraph (1).(4) The supplies of goods and services, in which the recipients are the persons referred to in Article 172 (2) herein and the institutions of the European Union, shall be liable to tax at the zero rate.(5) For application zero tax rate under Paragraph (4), the supplier shall be obligated to possess documents specified by the Regulations for Application of this Act.Refund of Tax to Diplomatic Missions, Consular Posts, Missions ofInternational Organizations and Members of Staff ThereofArticle 174. (1) The tax charged on supplies in which the following are recipients shall be refunded:1. diplomatic missions;2. consular posts;3. missions of international organizations;4. members of the staff of the recipients referred to in Items 1, 2 and 3.(2) The terms and the documents required for refund of the tax under Paragraph (1) shall be determined by an ordinance of the Minister of Foreign Affairs and the Minister of Finance.Chapter Twenty-FourPOWERS OF MINISTER OF FINANCEPowers of the Minister of FinanceArticle 175. (1) The Minister of Finance shall issue rules Regulations for Application of this Act.(2) The Minister of Finance shall issue the ordinances referred to in Article 81 (2), Article 118 (3) and Article 174 (2) herein.(3) The Minister of Finance may determine, where necessary, by an order:1. special arrangements for documenting and reporting certain types of supplies for which the application of the standard procedure presents practical difficulties;2. the information collected under this Act which is public;3. the information collected under this Act which may be provided to the tax administrations of other States;4. the list of coins which constitute investment gold;5. the procedure, manner and form for exchange of information with the persons not established within the territory of the Community for the purposes of levy of tax on the supplies of electronically supplied services.(4) The orders covered under Paragraph (3) shall be promulgated in the State Gazette.Chapter Twenty-FivePOWERS OF REVENUE AUTHORITIES AND PREVENTION OF TAX FRAUDRefusal to Register or Termination of Registration in Connection withTax ViolationsArticle 176. Any competent revenue authority may refuse to register or may terminate the registration of a person who:1. cannot be reached at the mailing address named thereby according to the procedure established by the Tax and Social-Insurance Procedure Code ;2. changes the mailing address thereof and does not provide notification according to the established procedure;3. fails systematically to fulfil the obligations thereof under this Act;4. incurs tax liabilities whereof the total value exceeds the value of the assets thereof less the liabilities thereof.Registration upon SecurityArticle 176a. (New, SG No. 108/2007) (1) The competent revenue authority shall refuse registration to a person having failed to provide, within the specified time period, security in cash, in government securities or in unconditional and irrevocable bank guarantee for a term of one year and on which data exist that one or more of its owners, managing directors, procurators, majority partners or shareholders:1. are or have been, at the time of occurrence of the liabilities, owners, procurators, majority partners or shareholders, members of managing or controlling bodies of persons with unsettled value added tax liabilities exceeding BGN 5,000, or2. have unsettled value added tax liabilities exceeding BGN 5,000 in the capacity as natural persons, or3. are persons against whom penal proceedings have been initiated or have been convicted for offenses against the tax system.(2) Paragraph (1) shall not apply to the persons subject to registration under Article 99 (1).(3) The competent revenue authority shall terminate the registration of a person registered under the terms of Article 132, which has failed to provide, within the specified time period, the security for a term of one year, where the transformation, confiscation or in-kind contribution is performed by a person with unsettled value added tax liabilities exceeding BGN 5,000.Security Requirements and AmountArticle 176b. (New, SG No. 108/2007) (1) The competent revenue authority shall require provision of the security by a written request which shall specify:1. the grounds for requiring the security;2. the amount of the security;3. the time period in which the person shall submit evidence of the provided security, which shall not be less than 7 days.(2) The amount of the security shall be equal to the sum total of unsettled liabilities in respect of which the security is required. In the cases under Item 3 of Article 176a (1) the amount of the security shall be BGN 250,000 where the amount of the liabilities is not established at the date the security is required.(3) The security may be released or reduced prior to expiry of the one year time period if after the registration of the person the grounds on the basis of which the amount of the required security is determined are removed or changed.(4) The revenue authority which has established existence of the grounds for release or reduction of the security under Paragraph (3) shall notify the bank that the security may be released or reduced up to a specific amount.Persons' Liability in Case of AbuseArticle 177. (1) Any registered person who is the recipient in a taxable supply shall be liable for the value added tax due and unremitted by another registered person insofar as the former person has exercised a right to deduct credit for input tax related directly or indirectly to the due and unremitted tax.(2) The liability referred to in Paragraph (1) shall be enforced where the registered person knew or was obligated to know that the tax will not be remitted, and this is proved by the auditing authority according to the procedure established by Articles 117 to 120 of the Tax and Social-Insurance Procedure Code. (3) For the purposes of Paragraph (2), the person shall be presumed to have been obligated to know where the following conditions are simultaneously fulfilled:1. the tax due under Paragraph (1) was not effectively effected as paid in as a net tax for a tax period by any of the previous suppliers under a taxable supply whereof the subject are the same goods or services, regardless of whether in the same, modified or processed form, and2. the taxable supply is simulated, circumvents the law, or is at a price which significantly departs from the market price.(4) The liability referred to in Paragraph (1) shall not be contingent on the obtaining of a specific benefit from the non-remittance of the tax due.(5) Any preceding supplier of the person who owes the unremitted tax shall also incur liability under the terms established by Paragraphs (2) and (3).(6) In the cases under Paragraphs (1) and (2), the liability shall be enforced in respect of the person who is the direct recipient of the supply on which the tax due has not been remitted, and where the collection fails, the liability may be enforced in respect of any succeeding recipient in the order of supplies.(7) Paragraph (6) shall apply, mutatis mutandis, in respect of the preceding suppliers as well.Chapter Twenty-SixCOERCIVE ADMINISTRATIVE MEASURES AND ADMINISTRATIVE PENALTY PROVISIONSArticle 178. Any taxable person under this Act who is obligated but fails to submit an application for registration or an application for termination of registration within the time limits established under this Act, shall be liable to a fine, applicable to natural persons who are not merchants, or by a pecuniary penalty, applicable to legal persons and sole traders, of BGN 500 or exceeding this amount but not exceeding BGN 5,000.Article 179. (Amended, SG No. 108/2007) Any person registered under this Act, who while obligated to do so, fails to submit a VAT return referred to in Article 125 (1) herein, a return referred to in Article 125 (2) herein, the ledgers of account referred to in Article 124 herein, a return referred to in Article 157 (2) herein, or fails to submit the said returns and ledgers in due time, shall be liable to a fine, applicable to natural persons who are not merchants, or to a pecuniary penalty, applicable to legal persons and sole traders, of BGN 500 or exceeding this amount but not exceeding BGN 10,000.Article 180. (1) (Amended, SG No. 108/2007) Any registered person who, while obligated to do so, fails to charge tax within the time limits provided for in this Act, shall be liable to a fine, applicable to natural persons who are not merchants, or to a pecuniary penalty, applicable to legal persons and sole traders, equivalent to the amount of the uncharged tax but not less than BGN 500.(2) Paragraph (1) shall furthermore apply where the person has failed to charge tax because the said person has failed to submit an application for registration and has not registered under this Act in due time.(3) (Amended, SG No. 108/2007) Upon a violation under Paragraph (1), where the registered person has charged the tax in the period following the period during which the tax should have been charged, the fine or the pecuniary penalty, as the case may be, shall amount to 25 per cent of the tax but not less than BGN 250.(4) (Amended, SG No. 108/2007) Upon a repeated violation under Paragraphs (1) and (2), the amount of the fine or the pecuniary penalty shall be equivalent to the uncharged tax but not less than BGN 5,000.Article 181. (1) (Amended, SG No. 108/2007) Any registered person, who fails to submit information from the ledgers of account or who submits information on a magnetic or optical data storage medium departing from the information stated in the ledgers of account, shall be liable to a fine, applicable to natural persons who are not merchants, or to a pecuniary penalty, applicable to legal persons and sole traders, of BGN 500 or exceeding this amount but not exceeding BGN 10,000.(2) (Amended, SG No. 108/2007) Upon a repeated violation under Paragraph (1), the fine or the pecuniary penalty shall be BGN 1,000 or exceeding this amount but not exceeding BGN 20,000.Article 182. (1) (Amended, SG No. 108/2007) Any registered person, who fails to issue a tax document, or to show a tax document issued or received in the ledgers of account for the relevant tax period, which leads to an assessment of the tax in a smaller amount, shall be liable to a fine, applicable to natural persons who are not merchants, or to a pecuniary penalty, applicable to legal persons and sole traders, in the amount of the smaller tax amount but not less than BGN 1,000.(2) (Amended, SG No. 108/2007) Upon a violation under Paragraph (1), where the registered person has issued or shown a tax document for the tax period following the tax period in which the said document should have been issued or shown, the fine or the pecuniary penalty, as the case may be, shall be in the amount of 25 per cent of the smaller tax amount but not less than BGN 250.Article 183. (1) (Amended, SG No. 108/2007) Any person, which is not registered under this Act and who issues a tax document stating therein tax, shall be liable to a fine, applicable to natural persons who are not merchants, or to a pecuniary penalty, applicable to legal persons and sole traders, equivalent to the amount of tax stated in the document but not less than BGN 1,000.(2) (Amended, SG No. 108/2007) Upon a repeated violation under Paragraph (1) the amount of the fine or the pecuniary penalty shall be the double amount of the uncharged tax but not less than BGN 5,000.Article 184. (1) (Amended, SG No. 108/2007) Any person, who fails to submit a return referred to in Article 168 (2) herein or who fails to submit the said return in due time, shall be liable to a fine, applicable to natural persons who are not merchants, or to a pecuniary penalty, applicable to legal persons and sole traders, of BGN 1,000 or exceeding this amount but not exceeding BGN 10,000.(2) (Amended, SG No. 108/2007) Upon a repeated violation, the fine or the penalty under Paragraph (1), as the case may be, shall be BGN 5,000 or exceeding this amount but not exceeding BGN 20,000.Article 185. (1) Any person, who fails to issue a fiscal cash receipt (fiscal slip) or who breaches the procedure and manner for type approval, registration or commissioning/decommissioning, or reporting, or service maintenance of fiscal devices, shall be liable to a fine of BGN 100 or exceeding this amount but not exceeding BGN 500, applicable to natural persons who are not merchants, or to a pecuniary penalty of BGN 200 or exceeding this amount but not exceeding BGN 10,000, applicable to legal persons and sole traders.(2) In the cases under Paragraph (1), the natural person who is actually obligated to issue a fiscal cash receipt (fiscal slip) and has accepted payment without issuing such a receipt, shall be liable to a fine of BGN 100 or exceeding this amount but not exceeding BGN 500.(3) Upon a repeated violation under Paragraph (1), the fine shall be BGN 500 or exceeding this amount but not exceeding BGN 2,500, and the pecuniary penalty shall be BGN 500 or exceeding this amount but not exceeding BGN 20,000.(4) Any person, who fails to fulfil the obligation thereof to keep the fiscal cash receipt (fiscal slip) until he or she leaves the commercial outlet, shall be liable to a fine of BGN 5, which shall be collected on the spot, against a receipt.Article 186. (1) The coercive administrative measure of sealing an outlet for a period of up to one month, notwithstanding the fines or pecuniary penalties provided for, shall be imposed on any person who:1. fails to observe the procedure or manner for:(a) issuing the relevant document on sale (fiscal slip, cash receipt from a receipt book or a sales certifying mark), printed and issued according to the established procedure for supply/ sale;(b) commissioning or registration of fiscal devices;(c) daily reporting of sales turnovers, where this is mandatory;2. uses a re-designed or modified fiscal device.(2) In the cases under Item 2 of Paragraph (1), the re-designed or modified fiscal device shall be confiscated by the revenue authority and shall be destroyed. The expenses shall be for the account of the person.(3) The coercive administrative measure referred to in Paragraph (1) shall be applied by a reasoned order of the revenue authority or by an official empowered by the said authority.(4) Any order referred to in Paragraph (3) shall be appealable according to the procedure established by the Administrative Procedure Code. Article 187. (1) Upon application of the coercive administrative measure referred to in Article 186 (1) herein, the person shall furthermore be barred from the outlet or outlets, and the merchandise in stock at the said outlets and at the warehouses thereto appertaining shall be removed by the person or by a person authorized thereby. Such measure shall be applied in respect of the outlet or outlets where violations have been ascertained.(2) Where such removal involves substantial difficulties for the revenue authorities and/or significant expenses for the person, the authority who decreed the sealing may order that the goods at the outlet or outlets be left to the person for safekeeping. Such order shall not apply to any goods which are the subject of violation referred to in Item 2 of Article 186 (1) herein.(3) In the cases under Paragraph (1), where the person has failed to remove the goods within the prescribed time limit, the revenue authority shall remove the said goods, placing them in front of the outlet, without any obligation to guard the said goods, and shall not be held liable for their damage, waste or loss which shall be for the account of the person.(4) The coercive administrative measure shall be terminated by the authority who applied the said measure at a request of the person on whom the administrative sanction has been imposed and after the said person proves that the file or pecuniary penalty has been paid in full. The person shall be obligated to cooperate upon the unsealing.Article 188. The coercive administrative measure referred to in Article 186 (1) herein shall be subject to anticipatory enforcement under the terms established by the Administrative Procedure Code. Article 189. (1) Any taxpayer under Article 91 (1) to (3) herein, who fails to remit the chargeable tax in due time, shall be liable to a fine, applicable to natural persons who are not merchants, or by a pecuniary penalty, applicable to legal persons and sole traders, of BGN 500 or exceeding this amount but not exceeding BGN 2,000.(2) Upon a repeated violation under Paragraph (1), the fine or the pecuniary penalty shall be equivalent to the unremitted tax but not less than BGN 4,000.Article 190. (1) Any revenue authority, who fails to refund a tax within the time period as provided for, where the conditions for refund of the said tax under this Act are fulfilled, shall be liable to a fine of BGN 500 or exceeding this amount but not exceeding BGN 2,000.(2) Upon a repeated violation under Paragraph (1), the fine shall be BGN 1,000 or exceeding this amount but not exceeding BGN 4,000.Article 191. (1) Any customs authority, which, while obligated to do so, fails to charge tax under this Act, or who charges tax in a lower amount, or releases goods from customs control without payment of the tax due, shall be liable to a fine of BGN 500 or exceeding this amount but not exceeding BGN 2,000.(2) Upon a repeated violation under Paragraph (1), the fine shall be BGN 1,000 or exceeding this amount but not exceeding BGN 4,000.Article 192. Upon ascertainment of any violations covered under Article 185 herein, committed by manufacturers, importers or service maintenance providers of fiscal devices, the Chairperson of the State Agency for Metrological and Technical Surveillance or a person empowered thereby:1. issue mandatory prescriptions in connection with the powers vested therein;2. shall cancel the fiscal devices type approval or the approval of an Integrated Automated Commercial Activities Management System;3. shall terminate the registration of the service maintenance provider upon systematic violations of Article 185 herein.Article 193. (1) The ascertainment of violations of this Act and of the statutory instruments on the application thereof, the issuing, appeal and execution of penalty decrees shall follow the procedure established by the Administrative Violations and Sanctions Act. (2) The written statements on violations shall be drawn up by the revenue authorities, and the penalty decrees shall be issued by the Executive Director of the National Revenue Agency or by an official empowered thereby.SUPPLEMENTARY PROVISION 1. For the purposes of this Act:1. "Territory of the country" shall comprise the geographic territory of the Republic of Bulgaria, the continental shelf and the exclusive economic zone.2. (Amended, SG No. 108/2007) "Territory of a Member State" shall be the area of application of the Treaty establishing the European Community, as defined in respect of each Member State in Article 299 of the said Treaty, with(a) the following territories being excluded from the said territory:(aa) for the Federal Republic of Germany: the Island of Heligoland and the territory of Bтsingen;(bb) for the Kingdom of Spain: Ceuta, Melilla, and the Canary Islands;(cc) for the Republic of Italy: Livigno, Campione d'Italia, and the Italian waters of Lake Lugano;(dd) for the French Republic: the overseas departments;(ee) for the Hellenic Republic: (Mt Athos);(ff) for the Republic of Finland: Ahvenanmaa (the Oland Islands).(gg) (new, SG No. 108/2007) for the United Kingdom of Great Britain and Northern Ireland: the Anglo-Norman Islands;(b) the supplies originating in or intended for:(aa) the Principality of Monaco being treated for the purposes of this Act as supplies originating in or intended for the French Republic;(bb) the Isle of Man being treated for the purposes of this Act as supplies originating in or intended for the United Kingdom of Great Britain and Northern Ireland.(cc) (new, SG No. 108/2007) The sovereign base areas of the United Kingdom of Great Britain and Northern Ireland in Akrotiri and Dhekelia - for the purposes of this Act they shall be treated as supplies originating in or intended for Cyprus.3. "Community" and "territory of the Community" shall be the territory of the Member States.4. "Third territory" or "third country" shall be any territory other than the territory of the Member States.5. "New buildings" shall be any buildings:(a) which are in a state of completion "rough construction work" at the date on which the tax on the supply of the said buildings became chargeable, or(b) in respect of which the tax on the supply thereof became chargeable before the lapse of 60 months from the date on which a use permit was granted according to the procedure established by the Spatial Development Act. 6. (Amended, SG No. 108/2006) "Adjacent site" shall be the amount of the built up area in the meaning of the Spatial Development Act and the area around the built up area, determined on the base of a distance of 3 m from the external outlines of each of the surrounding walls on the first overground floor or the semi underground floor of the building, within the regulated land estate.7. "Activities or supplies effected by the State, the state bodies and the local bodies in their capacity as central or local government authorities" shall be such activities or supplies effected by a person created by virtue of a law, where:(a) such activities or supplies are effected in exercise of the powers vested therein arising from a statutory instrument and which may not be effected by a merchant, unless such duty is imposed thereon by a law;(b) a fee has been established by a statutory instrument.8. A supply effected "free of charge" shall be any supply effected without consideration or such in which the value of the benefit provided exceeds manifold the value of the benefit received.9. "Goods of negligible value" and "services of negligible value" shall be any goods or services whereof the open market value does not exceed BGN 30 and whereof the supply is not part of a series of supplies in which the recipient is one and the same person.10. "Fixed establishment" shall be a representative office, a branch, an office, a bureau, a studio, a plant, a workshop (factory), a retail shop, a wholesale storage facility, an after-sales service establishment, an assembly project, a construction site, a mine, quarry, prospecting drill, oil or gas well, a water spring or any other place of extraction of natural resources, a fixed place (whether owned, rented, or allocated for use) or a fixed base wherethrough a person carries out economic activity within the territory of a country, whether wholly or partly.11. "Person established within the territory of the country" shall be any person who has a registered office and address of the place of management within the territory of the country or who has a fixed establishment within the territory of the country.12. "Person established within the territory of the Community" shall be any person who has a registered office and an address of the place of management within the territory of the Community or who has a fixed establishment within the territory of the Community.13. (Amended SG No. 41/2007) "Electronic communications services" shall be electronic communications services within the meaning given by the Electronic Communications Act. Electronic communications services shall furthermore include a transfer or cession of a right to use the capacity for conveyance, emission, transmission or reception or the provision of access to global information networks.14. "Electronically supplied services" shall be:(a) providing personal presence on the Internet, delivery of digitized content on the Internet (website and webpage hosting), online and distance maintenance of programmes and computer equipment;(b) online accessing or downloading of software plus updates;(c) accessing or downloading of images, writing and information and granting access to databases by electronic means;(d) online accessing or downloading of music, films and games, including lotteries, games of chance and games giving cash prizes and merchandise awards, as well as of political, cultural, artistic, sporting, scientific and entertainment broadcasts and events;(e) supply of distance teaching by electronic means.When the service provider and a customer thereof communicate by electronic mail, this does not imply by itself that the service provided is electronically supplied.15. (Amended, SG No. 113/2007) "Subsidies and investment grants directly linked to a supply" shall be such subsidies and investment grants whereof the allocation is directly dependent on the price of the goods or services provided. Subsidies and investment grants directly linked to a supply shall exclude any subsidies and investment grants intended solely for:(a) cover of losses;(b) financing of expenses, including the acquisition or liquidation of assets.16. "Open market value" shall be the price within the meaning given by Item 8 of 1 of the Supplementary Provisions of the Tax and Social-Insurance Procedure Code , determined according to the methods for determination of open market values within the meaning given by Item 10 of 1 of the Supplementary Provisions of the Tax and Social-Insurance Procedure Code.17. "New means of transport" shall be:(a) any vessels exceeding 7.5 metres in length (with the exception of such intended for the transport of persons or goods, for navigation, for the purpose of commercial, industrial or fishing activities, for rescue or assistance at sea), where one of the following conditions is fulfilled:(aa) the date of the chargeable event has occurred within three months after the date of their first entry into service, or(bb) the date of the chargeable event has occurred before they have sailed for more than 100 hours;(b) aircraft the take-off weight of which exceeds 1,550 kilograms, intended for the transport of persons or goods (with the exception of such intended for airlines operating on international routes), where one of the following conditions is fulfilled:(aa) the date of the chargeable event has occurred within three months after the date of their first entry into service, or(bb) the date of the chargeable event has occurred before they have flown for more than 40 hours;(c) motorized land vehicles the capacity of which exceeds 48 cubic centimetres or the power of which exceeds 7.2 kilowatts, intended for the transport of persons or goods, where one of the following conditions is fulfilled:(aa) the date of the chargeable event has occurred within six months after the date of their first entry into service, or(bb) the date of the chargeable event has occurred before they have travelled more than 6,000 kilometres.18. "Passenger car" shall be any automobile designed to seat no more than five persons (excluding the driver). Any light-duty cargo truck intended to carry goods or any passenger car with permanently in-built technical equipment for the purposes of the activities carried out by the registered person shall not be treated as passenger car.19. "Second-hand goods" shall be any used tangible movable property that is suitable for further use as it is or after repair, which can be used for the purpose for which it was made. The following shall not be second-hand goods:(a) works of art;(b) collectors' items;(c) antiques;(d) precious metals and precious stones in whatever form.20. "Works of art" shall be:(a) pictures, collages and similar decorative plaques, paintings and drawings, executed entirely by hand by the artist, other than plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, hand-decorated manufactured articles, theatrical scenery, studio back cloths or the like of painted canvas;(b) original engravings, prints and lithographs, being impressions produced in limited numbers directly in black and white or in colour of one or of several plates executed entirely by hand by the artist, irrespective of the process or of the material employed by him, but not including any mechanical or photomechanical process;(c) original sculptures and statuary, in any material, provided that they are executed entirely by the artist; sculpture casts the production of which is limited to eight copies and supervised by the artist or by artists authorized thereby;(d) tapestries and wall textiles made by hand from original designs provided by artists, provided that there are not more than eight copies of each;(e) individual pieces of ceramics executed entirely by the artist and signed thereby;(f) enamels on copper, executed entirely by hand, limited to eight copies bearing the signature of the artist or the seal of the studio, excluding articles of jewellery and goldsmiths' and silversmiths' wares;(g) photographs taken by the artist, printed by him or under his supervision, signed and numbered and limited to 30 copies, all sizes included.21. "Collectors' items" shall be any postage or revenue stamps, franked or if unfranked not being of or being intended for use as legal tender, as well any collections and collectors' pieces of zoological, botanical, mineralogical, anatomical, historical, archaeological, paleontological, ethnographic or numismatic interest.22. "Antiques" shall be any objects other than works of art or collectors' items, which are more than 100 years old.23. "Taxable dealer of second-hand goods, works of art, collectors' items and antiques" shall be a taxable person who, in the course of his economic activity, purchases or acquires or imports with a view to resale, second-hand goods, works of art, collectors' items or antiques, whether that taxable person is acting [for himself or] as a commission agent within the meaning given by the Commerce Code. 24. "Investment gold" shall be:(a) gold, in the form of a bar or a wafer of weights accepted by the bullion markets, and of a purity equal to or greater than 995 thousandths;(b) gold coins designated by an order of the Governor of the Bulgarian National Bank and the Minister of Finance, where the following conditions are simultaneously fulfilled:(aa) they are of a purity equal to or greater than 900 thousandths;(bb) they are minted after 1800;(cc) they are or have been legal tender in the country of origin;(dd) they are normally sold at a price which does not exceed the open market value of the gold contained in the coins by more than 80 per cent.25. "Standard software" shall be any software product recorded on a physical medium, which is intended for common use and which does not take account of the specifics in the activity of a concrete user.26. "Handling of goods in transit" shall be services for unloading, loading, reloading, stowage and securing of the goods, provision of containers, as well as other services provided directly in connection with the transport.27. "Taxable dealer of natural gas and electricity" shall be a taxable person whose economic activity is related to purchases of natural gas or electricity and subsequent resale of such products.28. (Amended, SG No. 108/2007) "Handling of a vessel" shall be all operations concerning the admission, stay and departure of a vessel performed by the port within the territory of the country.29. "Handling of an aircraft on international service" shall be the ground servicing of an aircraft within the meaning given by Item 18 of 3 of the Supplementary Provisions of the Civil Aviation Act , with the exception of the services for which stamp duty is payable under the Ordinance on Public-Transport Airport Charges and Air Navigation Charges in the Republic of Bulgaria (promulgated in the State Gazette No. 2 of 1999; amended in No. 15 of 2000, Nos. 9 and 62 of 2001, No. 19 of 2002, No. 16 of 2003, Nos. 32 and 71 of 2004, Nos. 15 and 96 of 2005, No. 22 of 2006).30. "Handling of railway rolling stock on international service" shall comprise the following operations: shunting for the purpose of moving wagons to and from the points of loading and unloading; stay of the wagon during loading and unloading; weighing of empty wagons by a wagon weighbridge prior to loading; weighing of loaded wagons by a wagon weighbridge; disinfection, elimination of harmful insects and rodents of wagons intended for loading of goods, where this requirement is according to the Bulgarian State Standard; maintenance of controlled temperature during loading and transport of goods, which require such controlled temperature; carrying out customs and other administrative formalities related to the carriage of goods intended for import and for export; providing or withdrawing wagons, inter alia sorting wagons from and for a rail ferry; switching of wagon wheel sets with different track gauges.31. "Repair" shall be the activity involving the incurrence of subsequent costs in connection with a specific asset which do not lead to an economic benefit in excess of the benefit from the initially estimated standard return on the said asset.32. "Improvement" shall be the activity involving the incurrence of subsequent costs in connection with a specific asset which lead to an economic benefit in excess of the benefit from the initially estimated standard return on the said asset.33. "Cash equivalents" shall be:(a) receipts for purchases;(b) gift vouchers or gift coupons;(c) metal or plastic tokens.34. "Connected persons" shall be the persons within the meaning given by Item 3 of 1 of the Supplementary Provisions of the Tax and Social-Insurance Procedure Code. 35. "Repeated violation" shall be any violation committed within one year after the entry into effect of a penalty decree whereby the offender was penalized for a violation of the same kind.36. "Free zone", "free warehouse", "goods in temporary storage", "customs procedure", "suspensive arrangement", "non-Community goods" shall be the terms within the meaning given by customs legislation.37. (Supplemented, SG No. 108/2006) "Tourist", "hotelier", "tour operator", "travel agent", "main tourist services" and "package tour" shall be the terms within the meaning given by Items 1, 3, 8, 10, 12 and 14 of 1 of the Supplementary Provision of the Tourism Act. 38. "Importer" shall be the person liable to pay the import duties, as well as the person who has received goods within the territory of the country from third countries or territories which form part of the customs territory of the Community.39. (Supplemented, SG No. 108/2007, No. 113/2007) "Excisable goods" shall be the goods covered under Items 1, 2 and 3 of Article 2 of the Excise Duties and Tax Warehouses Act except for natural gas supplied through transfer pipelines and electricity.40. "Fiscal device" shall be a device for registration and reporting of sales of goods or services by means of issuing of fiscal cash receipts and for storage of data on the registered turnovers in a fiscal memory.41. "Commercial outlet" shall be any place, premise or facility (for example: tables, stalls and other such) situated outdoors or under sheds, whereat or wherefrom sales of goods or services are effected, regardless of the fact that such premise or facility may concurrently serve for other purposes as well (for example: an office, a dwelling or other such), may be part of owned corporeal immovable (for example: a parking garage, a basement, a room or other such), or may be a manufacturing warehouse or a means of transport wherefrom sales are effected.42. "Systematic violations" shall be any violations committed within one year after the entry into effect of a penalty decree whereby the offender was penalized again for a violation of the same kind.43. "Work on goods" shall be treatment, processing or repair of goods.44. "VIES (Value Added Tax Information Exchange System) return" shall be a consolidated return used for the purposes of control and exchange of information among the Member States.45. (New, SG No. 108/2006) "Accommodation" means basic tourist services in the meaning of sub-paragraph 12 from the additional provision of the Tourism Act. 46. (New, SG No. 108/2006) "Waste production" is every activity as a result of which waste is generated.47. (New, SG No. 108/2006) "Waste processing" is any activity associated with the collection, storage, sorting and mechanical processing of waste without any changes to its chemical composition.48. (New, SG No. 108/2006) "Waste treatment" is any activity, which changes the properties or composition of waste, transforming it into recourses for the production of end products or into end products.49. (New, SG No. 108/2007) "Small vessel" is a vessel with the size set out in Article 34 (2) of the Merchant Shipping Code. 50. (New, SG No. 108/2007) "Large vessel" is a vessel with the size set out in Article 34 (3) of the Merchant Shipping Code. 51. (New, SG No. 108/2007) "Majority partner or shareholder" is a person holding more than 33 per cent of the participating interest or shares, as the case may be, in the company.52. (New, SG No. 108/2007) "Unsettled liabilities" are the established chargeable liabilities of the person except for the fully secured, rescheduled and deferred liabilities.53. (New, SG No. 108/2007) "Active implantable medical device" is a device within the meaning of Item 1 of 1 of the supplementary provisions of the Medical Devices Act. TRANSITIONAL AND FINAL PROVISIONS 2. This Act shall supersede the Value Added Tax Act (promulgated in the State Gazette No. 153 of 1998; corrected in No. 1 of 1999; amended in Nos. 44, 62, 64, 103 and 111 of 1999, Nos. 63, 78 and 102 of 2000, No. 109 of 2001, Nos. 28, 45 and 117 of 2002, Nos. 37, 42, 86 and 109 of 2003, Nos. 53, 70 and 108 of 2004, Nos. 28, 43, 76, 94, 95, 100, 103 and 105 of 2005, Nos. 30 and 54 of 2006), 3. (Effective 4.08.2006) (1) The Minister of Finance shall issue the Regulations for Application of this Act and the ordinances under this Act within three months after the promulgation of the said Act in the State Gazette.(2) The Regulations and the ordinances referred to in Paragraph (1) shall enter into force as from the day of entry into force of this Act. 4. (1) All persons registered under the Value Added Tax Act as hereby superseded at the date of entry into force of this Act shall be presumed registered under this Act as well. In such cases, the identification number referred to in Article 94 (2) herein and the registration certificate referred to in Article 104 herein shall be issued ex officio.(2) Any registration or deregistration procedures that have been initiated and have not been concluded at the date of entry into force of this Act shall be completed according to the procedure established by this Act.(3) Notwithstanding Paragraph (2), when grounds for termination of registration in respect to a registered person have arisen during the last tax period prior to the date of entry into force of this Act, such person may remain registered under this Act if the grounds for optional registration under this Act exist.(4) The tax charged on assets available in connection with termination of registration prior to the entry into force of this Act shall be remitted within 30 days after the date of termination of registration.(5) Where the time limit for submission of the registration inventory referred to in Article 68 or Article 70 of the Value Added Tax Act as hereby superseded expires after the entry into force of this Act, the said inventory shall be submitted within three days after the date of registration under the Value Added Tax Act as hereby superseded. 5. (1) The VAT return for the last tax period prior to the entry into force of this Act shall be submitted not later than the 14th day of the month following the month to which the said return refers, and all rights and obligations under this Act shall accrue in respect to the net tax (input tax claimable or output tax payable) stated therein.(2) The annual VAT return referred to in Article 101 (1) of the Value Added Tax Act as hereby superseded shall be submitted not later than the 15th day of April 2007, and the net tax stated therein shall not be included in the deduction procedure under this Act but the tax shall be remitted or recovered within three months after the submission of the said return. 6. (1) For registered persons in respect of whom the three-month deduction procedure for input tax claimable under the Value Added Tax Act as hereby superseded has been initiated and has not been concluded at the date of entry into force of this Act, the deduction procedure shall continue according to the procedure established by Article 92 (1) of this Act.(2) All nine-month deduction procedures for income tax payable under the Value Added Tax Act as hereby superseded which have not been completed at the date of entry into force of this Act shall be concluded at the last day of the month preceding the month of entry into force of this Act.(3) In the cases referred to in Paragraph (2), the balance of the input tax claimable shall be declared by the persons in the VAT returns for the last tax period prior to the entry into force of this Act, and the said balance shall be set off and refunded by the revenue authority within 45 days after the submission of the said VAT return.(4) Any balance of the input tax claimable under Item 4 of Article 77 (1) of the Value Added Tax Act as hereby superseded which has not been refunded at the date of entry into force of this Act shall be set off and refunded by the revenue authority within 45 days after the submission of the VAT return wherein the said balance is stated.(5) Any tax refundable in pursuance of Article 77 (2) of the Value Added Tax Act as hereby superseded which has not been refunded at the date of entry into force of this Act shall be set off and refunded by the revenue authority within the relevant time limits referred to in Article 77 (2) of the Value Added Tax Act as hereby superseded. 7. (1) Where an advance payment has been received in connection with an exempt supply within the meaning given by the Value Added Tax Act as hereby superseded, which is a taxable supply within the meaning given by Article 12 (1) (excluding zero-rated supplies) of this Act, and the chargeable event for which occurs after the entry into force of this Act, the registered person who is the supplier shall document the supply by issuing an invoice stating therein the full taxable amount for the said supply. The said supply shall be subject to the tax treatment effective at the date of the occurrence of the chargeable event for the supply under this Act.(2) Where an advance payment has been received in connection with a taxable supply within the meaning given by the Value Added Tax Act as hereby superseded, which is an exempt supply within the meaning given by this Act, and the chargeable event for which occurs after the entry into force of this Act, the registered person who is the supplier shall document the supply by cancelling the invoice issued on the advance payment and issuing a new invoice, stating therein the full taxable amount for the said supply. A memorandum under Article 116 (4) of this Act shall furthermore be issued on the said cancellation. The said supply shall be subject to the tax treatment effective at the date of occurrence of the chargeable event for the supply under this Act. 8. (1) Where the chargeable event for a supply has occurred prior to the entry into force of this Act and the tax document on the supply is to be issued after the entry into force of the said, the supply shall be documented by issuing an invoice under Article 114 of this Act, and upon the issuing the said invoice, the tax treatment effective at the date of occurrence of the chargeable event for such supply shall apply.(2) Where, after the entry of this Act into force, grounds arise for modification of the taxable amount of a supply which has been actually effected and documented prior to the entry into force of this Act, the taxable amount shall be modified by issuing a tax advice under Article 115 of this Act, and upon the issuing of the said advice, the tax treatment effective at the date of occurrence of the chargeable event for the supply as effected and documented shall apply. 9. (1) Where goods have actually been supplied under the terms of a financial lease contract prior to the date of entry into force of this Act, each subsequent payment (instalment) under such contract due after the entry into force of this Act shall be considered a separate supply for which the chargeable event shall occur on the earlier of the date of payment and the date on which the said payment became due.(2) Paragraph (1) shall apply only where the taxable person who is the supplier submits an inventory, which shall mandatorily contain the following information, to the National Revenue Agency territorial directorate whereat the said person is registered within one month after the entry into force of this Act:1. recipient under the contracts referred to in Paragraph (1);2. number and amount of instalments under each contract on which a tax document has been issued but which have not been received;3. number and amount of instalments under each contract for which the chargeable event referred to in Paragraph (1) will occur after the entry into force of this Act.(3) For any contracts which are not included in an inventory submitted according to the procedure established by Paragraph (2), the person shall be presumed to effect a supply under Item 3 of Article 6 (2) herein on the date of entry into force of this Act, whereof the taxable amount is equal to the sum total of the instalments due after the entry into force of this Act, net of tax due on the said instalments. 10. Where goods have actually been supplied by a principal/mandator to a commission agent/mandatary and the said goods have not been delivered by the commission agent/mandatary to a third party prior to the entry into force of this Act, the chargeable event for such supply of goods between the principal/mandator and the commission agent/mandatary shall be presumed to occur on the date of occurrence of the chargeable event for the supply of the goods to the third party. 11. The provision of Article 50 of this Act shall furthermore apply in cases of supplies of goods or services for which a right to deduct credit for input tax in pursuance of Article 65 (1) of the Value Added Tax Act as hereby superseded did not exist. 12. Any tax documents issued prior to the entry into force of this Act and complying with the requirements of the Value Added Tax Act as hereby superseded shall be deemed compliant with the requirements of this Act. 13. The right to deduct credit for input tax, which has accrued in pursuance of the Value Added Tax Act as hereby superseded and which has not been exercised until the date of entry into force of this Act and for the exercise of which the time limits under Articles 67 , 69 and 71 of the Value Added Tax Act as hereby superseded have not expired, may be exercised in any of the three tax periods following the tax period during which the said right has accrued. 14. (1) Importation shall furthermore refer to the completion of customs formalities in respect of declaring for free circulation of any goods for which the circumstances under Annex V, Chapter 4 "Customs Union," of the Protocol to the Treaty concerning the Accession of the Republic of Bulgaria to the European Union exist.(2) In the cases referred to in Paragraph (1), the chargeable event shall occur and the tax shall become chargeable according to the procedure established in Article 54 (2) of this Act.(3) The taxable amount in the cases referred to in Paragraph (1) shall be determined according to the procedure established in Article 55 (1) to (4) of this Act.(4) The tax shall be charged according to the procedure established in Article 56 of this Act.(5) The provisions of Articles 60 and 90 of this Act shall apply to the remittance of the tax.(6) Until occurrence of the chargeable event referred to in Paragraph (2), security shall be provided in respect of the tax according to the procedure and in the amounts specified in Article 59 of this Act.(7) (New, SG No. 113/2007) Notwithstanding Paragraph (1), no tax shall be due on the performance of customs formalities for declaring vehicles for free circulation where the following conditions exist simultaneously:1. as of 31 December 2006 inclusive the vehicles are under temporary import regime with full exemption from customs duties;2. the vehicles are acquired in or imported from another Member State, including Romania;3. at the time of declaring the free circulation the vehicles are under temporary import regime with full exemption from customs duties;4. the date of the first registration of the vehicles is not later than 31 December 1998 inclusive;5. the amount of the tax does not exceed BGN 100 inclusive. 15. (Amended, SG No. 108/2006) (1) The VAT accounts in the meaning of Article 20, sub-paragraph 17 of the repealed Value Added Tax Act, on which no funds are available, shall be closed at the request of the title-holders or ex officio by banks as at 31 January 2007.(2) If there are funds available in the VAT account, by 31 January 2007 the account holder may specify an account, to which the funds to be transferred and the VAT account shall be closed.(3) If within the deadline under paragraph 1 the holder of the VAT account in the meaning of Article 20, sub-paragraph 17 from the repealed Value Added Tax Act does not specify an account, to which the available amounts to be transferred, they shall be transferred as at 31 January 2007 ex officio by the bank to another account of the holder in the same bank, and if the holder does not have another account with the bank - to a current account opened by the bank ex officio in the name of the holder, whereas the VAT account shall be closed.(4) The frozen funds in the VAT accounts in the meaning of Article 20, sub-paragraph 17 from the repealed Value Added Tax Act may be transferred only to an account of the same holder, whereas the imposed freezing shall remain in force, including with regard to its imposition date."; 15a. (New, SG No. 108/2006) (1) When in 2006 reasons have occurred for an adjustment to a tax credit used according to the procedures of Article 81, paragraph 4 from the repealed Value Added Tax Act, the person shall accrue and pay tax to an amount, determined under the procedures of Article 76 from the repealed Rules for the Implementation of the Value Added Tax Act (promulgated in State Gazette No 19 from 1999; amended No 55 from 1999, amended No 9 from 2000; amended No 15 from 2000, amended No 12 from 2001 - Ruling № 404 from 2001 of the Supreme Administrative Court under administrative file № 1581 of 2000; amended No 15 and No 58 from 2001, No 43 and No 63 from 2002, amended No 29 from 2003, amended No 26 from 2004, amended No 32 from 2005, amended No 9 from 2006; repealed, State Gazette No 76 from 2006).(2) The adjustment under paragraph 1 shall be made by issuing a protocol under Article 117 of the present Act during the first tax period of 2007. The protocol shall be registered in the sales journal for that tax period as the tax, accrued under the act in other cases. 16. The Corporate Income Tax Act (promulgated in the State Gazette No. 115 of 1997; corrected in No. 19 of 1998; amended in Nos. 21 and 153 of 1998, Nos. 12, 50, 51, 64, 81, 103, 110 and 111 of 1999, Nos. 105 and 108 of 2000, Nos. 34 and 110 of 2001, Nos. 45, 61, 62 and 119 of 2002, Nos. 42 and 109 of 2003, Nos. 18, 53 and 107 of 2004, Nos. 39, 88, 91, 102, 103 and 105 of 2005, Nos. 30 and 34 of 2006) shall be amended and supplemented as follows:1. (Effective 4.08.2006) In Article 16 , Paragraph (1) shall be amended to read as follows:"(1) For the purposes of this Section, fair market value shall be determined according to the methods for determination of market prices within the meaning given by Item 10 of 1 of the Supplementary Provisions of the Tax and Social-Insurance Procedure Code ."2. In Article 36a , Item 6 of Paragraph (1) shall be repealed.3. (Effective 4.08.2006) In Article 55 , a new Paragraph (5) shall be added to read as follows:"(5) Taxes withheld at source from non-resident persons which do not carry out economic activity through a permanent establishment or a fixed base within the territory of the country shall be set off and refunded by the territorial directorate referred to in Paragraph (1)."4. Article 66 shall be amended as follows:(a) in Paragraph (1), the words "Article 136" shall be replaced by "Article 183";(b) in Paragraph (2), the words "Article 137" shall be replaced by "Article 185". 17. (Effective 4.08.2006) In the Waste Management Act (promulgated in the State Gazette No. 86 of 2003; amended in No. 70 of 2004, Nos. 77, 87, 88, 95 and 105 of 2005, Nos. 30 and 34 of 2006), in Item 27 of 1 of the Supplementary Provisions , the words "Item 5 of Article 20 of the Value Added Tax Act" shall be replaced by "Item 8 of 1 of the Supplementary Provisions of the Tax and Social-Insurance Procedure Code ." 18. (Effective 4.08.2006) The Excise Duties and Tax Warehouses Act (promulgated in the State Gazette No. 91 of 2005; amended in No. 105 of 2005, Nos. 30 and 34 of 2006) shall be amended and supplemented as follows:1. In Article 4 :(a) in Item 8, after the words "30 litres" there shall be added "of ethyl alcohol (rakiya)";(b) Item 10 shall be amended to read as follows:"10. "Dual use energy product" shall be a product which is used both as heating fuel and for purposes other than as motor fuel and heating fuel; the use of energy products for chemical reduction and in electrolytic and metallurgical processes shall be regarded as dual use.";(c) in Item 18, the figure "5,000" shall be replaced by "15,000".2. In Article 9 , a new Item 3 shall be added to read as follows:"3. obtained from distillation and potable, containing other products, whether in solution or not."3. In Article 14 , the words "Section VI and of Chapter Eight" shall be deleted.4. In Article 21 :(a) in Item 2 of Paragraph (1), the word "at importation" shall be deleted;(b) there shall be inserted a new Paragraph (2) to read as follows:"(2) Where excise duty has not been paid on the goods referred to in Items 1 and 3 of Paragraph (1), exemption shall be granted by a refund.";(c) the existing Paragraphs (2) and (3) shall be renumbered to become Paragraphs (3) and (4), respectively.5. In Article 22: (a) Paragraph (1) shall be amended to read as follows:"(1) Completely denatured ethyl alcohol shall be exempted from levy of excise duty.";(b) there shall be inserted a new Paragraph (2) to read as follows:"(2) The excise duty paid on ethyl alcohol, which is both expressly denatured and used for the manufacture of products not for human consumption, shall be refunded.";(c) the existing Paragraphs (2) and (3) shall be renumbered to become Paragraphs (3) and (4), respectively.(d) the existing Paragraph (4) shall be renumbered to become Paragraph (5) and shall be amended to read as follows:"(5) The excise duty paid under Paragraphs (2), (3) and (4) shall be refunded after the sale of the manufactured products referred to in Paragraphs (2) and (3) or, respectively, after the use thereof under Paragraph (4)."6. In Article 24 (2) :(a) in Item 1, the words "other than being used as motor fuel or heating fuel" shall be deleted;(b) there shall be added a new Item 4 to read as follows:"4. used for purposes other than as motor fuel and heating fuel."7. In Article 32 :(a) in Paragraph (2), the text before Item 1 shall be amended to read as follows: "The excise rate on motor fuel used for tillage of agricultural land by agricultural producers approved for financial assistance under the Agricultural Producers Support Act, shall be as follows:";(b) there shall be added new Paragraphs (3), (4), (5) and (6) to read as follows:"(3) The rates of excise duty referred to in Items 1 and 2 of Paragraph (2) shall be applied by means of reimbursement of the difference between the relevant rate under Paragraph (1) and the rate under Paragraph (2) for a quantity calculated on the basis of an annual fuel consumption rate of 73 litres per hectare of registered arable agricultural land.(4) Not later than the 1st day of July of each year, the Minister of Agriculture and Forestry shall provide the Director of the National Customs Agency with the following information from the Register of Agricultural Producers:1. identification particulars of the agricultural producer;2. legal form of business organization, name (business name), permanent address (registered office and address of the place of management), telephone, fax, electronic mail address;3. data on the agricultural land farmed (in hectares) according to the agricultural land parcel identification.(5) The right to reimbursement shall be exercised by the agricultural producers on a single occasion in respect of the motor fuel purchased thereby during the current year. A request for reimbursement shall be submitted from the 1st day of July until the 31st day of December in the current year,(6) Reimbursement under Paragraph (3) shall be effected within two months after submission of the request according to a procedure established the Regulations for Application of this Act."8. In Article 33 (1), the words "used" and "and household purposes" shall be deleted.9. In Article 34 , the words "Article 32, Paragraph 2 and" shall be deleted.10. In Item 5 of Article 47 , the words "of the tax or customs legislation" shall be replaced by "under this Act".11. In Item 5 of Article 51 (1) , the words "and tax number" shall be deleted.12. In Item 3 of Article 54 (2) and Item 2 of Article 56 (2) , the words "and tax number" shall be deleted.13. In Article 57 , Item 5 of Paragraph (3) shall be amended to read as follows:"5. a copy of BULSTAT Register identification card, certified by the person;".14. In Article 59 (1), after the word "including" there shall be inserted "extraction, recovery and".15. In Article 60 , Paragraphs (5) and (60 shall be repealed.16. In Article 65 (2) , Item 2 shall be amended to read as follows:"2. have been released for free circulation with simultaneous placing under an excise duty suspension arrangement;".17. In Article 66 , there shall be added new Paragraphs (3) and (4) to read as follows:"(3) Authorized warehousekeepers shall be obligated to use measuring instruments complying with the requirements of the Measurements Act and the statutory instruments on the application thereof.(4) The specific requirements and the control over the measuring instruments referred to in Paragraph (3) shall be determined according to the procedure established by Article 61 (2) herein."18. In Article 67 , Item 3 shall be amended to read as follows:"3. Transportation of excisable goods, released for free circulation with simultaneous placing under an excise duty suspension arrangement, to a tax warehouse."19. In Article 77 (2) at the end, there shall be placed a comma and there shall be added "with the exception of the cases referred to in Article 78 (3) herein."20. In Article 78 :(a) there shall be inserted a new Paragraph (3) to read as follows:"(3) The amount of the security for a tax warehouse for production and storage of excisable goods may not exceed BGN 30 million.";(b) the existing Paragraph (3) shall be renumbered to become Paragraph (4).21. In Article 88 (4) , the words "the Tax Procedure Code" shall be replaced by "the Tax and Social-Insurance Procedure Code".22. In Article 94 , Paragraph (2) shall be repealed.23. In Article 97 (1) , the word "Denaturing" shall be replaced by "Complete denaturing".24. In Article 106 (1) , the word "tax" shall be replaced by "revenue".25. In Article 125 , there shall be added a new Paragraph (4) to read as follows:"(4) The sanctions referred to in Paragraphs (1), (2) and (3) shall furthermore be imposed on any agricultural producer which uses motor fuel at reduced rates in violation of Article 32 herein."26. The Transitional and Final Provisions shall be amended and supplemented as follows:(a) in 2 :(aa) Paragraph (1) shall be amended to read as follows:"(1) Any proceedings for the establishment and collection of excise duty liabilities, initiated on or before the 30th day of June 2006, as well any proceedings for reimbursement of excise duty initiated until the said date, shall be completed by the National Revenue Agency authorities.";(bb) Paragraph (2) shall be amended to read as follows:"(2) The excise duty charged on or before the 30th day of June 2006 shall be declared and remitted according to the procedure and within the time limits established by the Excise Tax Act and the Regulations for Application thereof.";(cc) there shall be added new Paragraphs (3) and (4) to read as follows:"(3) The provisions of the Excise Tax Act shall apply to any excise duty liabilities which have arisen on or before the 30th day of June 2006, and the said liabilities shall be established, secured and collected by the National Revenue Agency authorities according to the procedure established by the Tax and Social-Insurance Procedure Code.(4) The security furnished under the Excise Tax Act, furnished on or before the 30th day of June 2006, shall be released or utilized by the National Revenue Agency according to the procedure and under the terms established by the Excise Tax Act and the Regulations for Application thereof.";(b) there shall be inserted 2a and 2b to read as follows:" 2a. (1) Authorized warehousekeepers shall have the right to reimbursement of the excise duty paid until the 30th day of June 2006 on:1. ethyl alcohol (alcohol-containing raw materials) used in the production of alcoholic beverages;2. gases intended for processing, falling within CN codes 2901 24 100, 2711 14 000, 2901 22 000 and 2901 21 000, which have undergone specific or chemical processing into excisable finished products;3. heavy oils intended for processing, falling within CN codes 2710 19 710 and 2710 19 750, and for heavy fuel oils, falling within CN codes 2710 19 510 and 2710 19 550, which have under undergone specific or chemical processing into excisable finished products;4. naphtha used in the production of ethylene;5. ethylene used in the production of ethylene dichloride.(2) Reimbursement shall be effected after release for consumption of the excisable goods in which the goods covered under Paragraph (1) are used or, respectively, after the sale of the ethylene dichloride, but not later than the 1st day of July 2007. 2b. The annual fuel consumption rate, referred to in Article 32 (3) herein, for 2006, shall be 44 litres per hectare of registered arable agricultural land.";(c) in 5 , the words "Article 21, Paragraph 2" shall be replaced by "Article 21, Paragraph 3";(d) in 12 :(aa) Item 1 shall be amended to read as follows:"1. the provisions of Articles 1 to 31, Article 32, Items 2, 4, 5 and 6 of Article 33 (1) and Article 33 (2), Articles 34 to 46, Articles 59 to 128, 1 (1) regarding the repeal of the Excise Tax Act, as well as 1 (3), which shall enter into force as from the 1st day of July 2006;".(bb) there shall be added a new Item 3 to read as follows:"3. The provisions of Items 1 and 3 of Article 33 (1), which shall enter into force as from the 1st day of January 2007." 19. (Effective 4.08.2006) The Tax and Social-Insurance Procedure Code (promulgated in the State Gazette No. 105 of 2005; amended in Nos. 30, 33 and 34 of 2006) shall be amended and supplemented as follows:1. In Article 30 (3) , the words "Article 29 (8) or (9)" shall be replaced by "Article 29 (6), (7) and (8)".2. In Article 140 (3) , the figure "139" shall be replaced by "138".3. In Article 143 , there shall be added a new Paragraph (4) to read as follows:"(4) Upon receipt of a request for exchange of information under Paragraph (1) from another country and on a basis of reciprocity, the Minister of Finance or a person authorized thereby may approach the court for disclosure of information constituting a bank secret within the meaning given by Article 52 of the Banking Act, a secret within the meaning given by Articles 71 and 133 of the Public Offering of Securities Act or within the meaning given by another provision of Bulgarian legislation on safeguarding the confidentiality of pecuniary funds, financial assets and other property, where the facts set forth in the request for exchange of information make clear that the said request is made in compliance with the requirements for exchange of information in the relevant international treaty."4. In Article 157 (3) , the words "and Paragraph (8)" shall be deleted.5. In sentence one of Article 183 (11) , the words "Article 148 (1)" shall be replaced by "Article 184 (1)", and sentence two shall be deleted.6. In Article 189 , the heading shall be amended to read as follows: "Rescheduling and Deferral in Bankruptcy Proceedings".7. In Article 202 (1) and in the heading of Article 228, the words "and persons connected therewith" shall be deleted.8. In Item 1 of Article 251 (3) at the end, the words "and address" shall be replaced by "address and certificate of current status."9. In Article 252: (a) in Paragraph (6), after the word "same" there shall be inserted "highest";(b) In Paragraph (7), the words "non-attending bidders" shall be replaced by "bidders and at least one of them is not present at the review of the offers".10. In Article 254 (2) :(a) a new sentence two shall be inserted, to read as follows: "If the second highest price has been offered by two or more participants, the public enforcement agent shall determine the succeeding buyer through a draw of lot.";(b) the existing sentence two shall become sentence three.11. In Article 255 , the words "the interest and the principal" shall be replaced by "the principal and the interest".12. In 6 of the Transition and Final Provisions , there shall be added a new Paragraph (7) to read as follows:"(7) Upon appointment to civil service at the National Customs Agency to a position whereof the functions are directly related to administration and control of excise duties, Article 10 (1) of the Civil Servants Act shall not apply if the candidates are in employment relationships with the National Customs Agency and with the National Revenue Agency." 20. (Effective 4.08.2006) In the Banking Act (promulgated in the State Gazette No. 52 of 1997; supplemented in No. 15 of 1998; amended in Nos. 21, 52, 70 and 98 of 1998, Nos. 54, 103 and 114 of 1999, Nos. 24, 63, 84 and 92 of 2000, No. 1 of 2001, Nos. 45, 91 and 92 of 2002, No. 31 of 2003, Nos. 19, 31, 39 and 105 of 2005, Nos. 30, 33 and 34 of 2006) Article 52 (5) shall be amended and supplemented as follows:1. There shall be inserted the following new Item 2 to read as follows:"2. the Minister of Finance or a person authorized thereby: in the cases referred to in Article 143 (4) of the Tax and Social-Insurance Procedure Code;".2. The existing Items 2, 2a, 3 and 4 shall be renumbered to become Items 3, 4, 5 and 6, respectively. 21. (Effective 4.08.2006) In the Public Offering of Securities Act (promulgated in the State Gazette No. 114 of 1999; amended in Nos. 63 and 92 of 2000, Nos. 28, 61, 93 and 101 of 2002, Nos. 8, 31, 67 and 71 of 2003, No. 37 of 2004, Nos. 19, 31, 39, 103 and 105 of 2005), Article 71 (6) shall be amended and supplemented as follows:1. There shall be inserted a new Item 2 to read as follows:"2. the Minister of Finance or a person authorized thereby: in the cases referred to in Article 143 (4) of the Tax and Social-Insurance Procedure Code;".2. The existing Items 2, 2a, 3 and 4 shall be renumbered to become Items 3, 4, 5 and 6, respectively. 22. (Effective 4.08.2006) In the Personal Income Tax Act (promulgated in the State Gazette No. 118 of 1997, modified by Constitutional Court Judgment No. 6 of 1998, promulgated in No. 35 of 1998; amended in Nos. 71 and 153 of 1998, Nos. 50, 103 and 111 of 1999, No. 105 of 2000, No. 110 of 2001, Nos. 40, 45, 61 and 118 of 2002, Nos. 42, 67, 95 and 112 of 2003, Nos. 36, 37, 53, 70 and 108/2004, Nos. 43, 102, 103 and 105 of 2005, No. 17 of 2006) in Article 20 (7) , the words "Paragraph (5)" shall be replaced by "Paragraph (6)". 23. (Effective 4.08.2006) In the Accountancy Act (promulgated in the State Gazette No. 98 of 2001; amended in No. 91 of 2002, No. 96 of 2004, Nos. 102 and 105 of 2005, No. 33 of 2006) Article 7 shall be amended and supplemented as follows:1. In Item 3 of Paragraph (1), after the word "address", the comma shall be deleted and the words "BULSTAT Code and number in the national tax register" shall be replaced by "and identification under Article 84 of the Tax and Social-Insurance Procedure Code".2. There shall be added new Paragraphs (5) and (6) to read as follows:"(5) The address referred to in Item 3 of Paragraph (1) shall be:1. the permanent address: applicable to natural persons;2. the address of the place of management: applicable to legal persons;3. the mailing address under the Tax and Social-Insurance Procedure Code: applicable to persons who do not have an address of the place of management.(6) A sole trader shall identify himself or herself only through a BULSTAT Register single identification code." 24. (Effective 4.08.2006) The Financial Support for Culture Act (promulgated in the State Gazette No. 103 of 2005; amended in Nos. 30 and 34 of 2006) shall be amended as follows:1. In Article 11: (a) in Paragraph (3), Item 5 shall be repealed;(b) in Item 1 of Paragraph (5), the words "tax registration number" shall be deleted.2. In Annex No. 1, in "I. Applicant Data", the words "number of tax registration" shall be deleted.3. In Annexes Nos. 2 and 3, the words "Tax registration number" shall be deleted. 25. The Integration of Persons with Disabilities Act (promulgated in the State Gazette No. 81 of 2004; amended in Nos. 28, 88, 94, 103 and 105 of 2005, Nos. 18, 30, 33 and 37 of 2006) shall be amended as follows:1. In Article 35 (2) , the words "and from value added tax" shall be deleted.2. In Article 44, Paragraph (2) shall be repealed. 26. This Act shall enter into force as from the day of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union, with the exception of 3, Items 1 and 3 of 16, 17, 18, 19, 20, 21, 22, 23 and 24 herein, which shall enter into force as from the day of promulgation of the Act in the State Gazette.This Act was passed by the 40th National Assembly on the 21th day of July 2006 and the Official Seal of the National Assembly has been affixed thereto. Annex No. 1 to Article 32 (1) (Previous Annex to Article 32 (1), SG No. 108/2006, effective 1.01.2007)Description of Goods Combined Nomenclature of Republic of Bulgaria CodeTin 8001Copper 7402 7403 7405 7408Zinc 7901Nickel 7502Aluminium 7601Lead 7801Indium ex 811291ex 811299 Cereals 1001 to 10051006: unprocessed rice only1007 to 1008 Oil seeds and oleaginous fruit 1201 to 1207Coconuts, Brazil nuts and cashew nuts 0801Other nuts 0802Olives 0711 20Grains and seeds (including soya beans) 1201 to 1207Coffee, not roasted 0901 11 000901 12 00Tea 0902Cocoa beans, whole or broken, raw or roasted 1801 Raw sugar 1701 111701 12Rubber, in primary forms or in plates, sheets or strip 40014002Wool 5101Chemicals in bulk Chapters 28 and 29Mineral oils (including propane and butane, also including crude petroleum oils) 2709 2710 2711 12 2711 13Silver 7106Platinum (palladium, rhodium) 7110 11 007110 21 007110 31 00Potatoes 0701Vegetable oils and fats and their fractions, whether or not refined, but not chemically modified 1507 to 1515 Annex No. 2 to Chapter Nineteen "a" (New, SG No. 108/2006, effective 1.01.2007) 1. Household waste under the Waste Management Act. 2. Production waste under the Waste Management Act. 3. Construction waste under the Waste Management Act. 4. Hazardous waste under the Waste Management Act. 5. Services associated with the production, processing or treatment ofwaste under sub-paragraphs 1 - 4. For more information visit www.solicitorbulgaria.com id: 340 Mon, 04 Aug 2008 07:16:01 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-value-added-tax-act-part-2 http://web.solicitorbulgaria.com/index.php/bulgarian-value-added-tax-act-part-2 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/VALUE_ADDED_TAX_ACT1.JPG EUR http://web.solicitorbulgaria.com/index.php/bulgarian-value-added-tax-act-part-2 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) PART ONEGENERAL DISPOSITIONSPurpose of ActArticle 1. This Act regulates the levy of value added tax (VAT).Subject to TaxationArticle 2. The following shall be subject to value added tax:1. each taxable supply of goods or services effected for consideration;2. each intra-Community acquisition effected for consideration, whereof the place of transaction is within the territory of the country, by a person registered under this Act or by a person in respect of which an obligation to register has arisen;3. each intra-Community acquisition of new means of transport effected for consideration, whereof the place of transaction is within the territory of the country;4. each intra-Community acquisition effected for consideration, whereof the place of transaction is within the territory of the country, of excisable goods, where the recipient is a taxable person or a non-taxable legal person which is not registered under this Act;5. the importation of goods.Taxable PersonsArticle 3. (1) "Taxable person"… For more information visit http://www.solicitorbulgaria.com id: 341 PART ONEGENERAL DISPOSITIONSPurpose of ActArticle 1. This Act regulates the levy of value added tax (VAT).Subject to TaxationArticle 2. The following shall be subject to value added tax:1. each taxable supply of goods or services effected for consideration;2. each intra-Community acquisition effected for consideration, whereof the place of transaction is within the territory of the country, by a person registered under this Act or by a person in respect of which an obligation to register has arisen;3. each intra-Community acquisition of new means of transport effected for consideration, whereof the place of transaction is within the territory of the country;4. each intra-Community acquisition effected for consideration, whereof the place of transaction is within the territory of the country, of excisable goods, where the recipient is a taxable person or a non-taxable legal person which is not registered under this Act;5. the importation of goods.Taxable PersonsArticle 3. (1) "Taxable person" shall mean any person who independently carries out an economic activity, whatever the purpose and results of that activity.(2) (Partially declared unconstitutional by the Constitutional Court of the Republic of Bulgaria regarding the expression "as well as the practice of a liberal profession, including as private enforcement agents and notaries" - SG, No. 37/2007, supplemented, SG No. 108/2007) Independently carried out economic activities shall comprise the activities of producers, traders and persons supplying services, including mining and agriculture, as well as the practice of a liberal profession, including as private enforcement agents and notaries. Any remunerative activity, carried out on a continuing basis or as a regular occupation or business on a professional basis for the purpose of obtaining income therefrom, including the exploitation of tangible and intangible property, shall also be considered an independently carried out economic activity.(3) The following shall not be considered an independently carried out economic activity:1. the activity carried out by natural persons under an employment relationship or under a legal relationship equivalent to an employment relationship;2. (amended, SG. No. 108/2006) the activity of natural persons, who are not sole traders, in respect of the activity carried out by such natural persons and regulated by law, concerning management and control of legal persons.(4) Any person, who from time to time effects an intra-Community supply for consideration of a new means of transport, shall also be regarded as a taxable person.(5) The State, the state and the local bodies shall not be taxable persons in respect of all activities and supplies in which they engage in their capacity as a central or local government authority, even where they collect fees, contributions or payments in connection with these activities or supplies, with the exception of:1. the following activities or supplies:(a) (amended, SG No. 41/2007) electronic communications services;(b) supply of water, gas, electricity or steam;(c) transport of goods:(d) port and airport services;(e) passenger transport;(f) sale of new goods manufactured for sale;(g) supplies effected for the purpose of intervention on the market in agricultural products;(h) organizing or running of trade fairs, exhibitions;(i) warehousing;(j) the activities of commercial publicity bodies, advertising services, including rental of advertising space;(k) tourist services;(l) running of shops, industrial canteens and other commercial outlets, the letting of buildings, parts of buildings and sales areas;(m) activities of radio and television bodies of a commercial nature.2. Any supplies other than those covered under Item 1, which will lead to significant distortion of competition.Non-taxable Legal PersonArticle 4. "Non-taxable legal person" shall mean any legal person which is not a taxable person within the meaning given by Article 3 herein and which effects intra-Community acquisition of goods.GoodsArticle 5. (1) "Goods," within the meaning given by this Act, shall be any movable and immovable thing, including electric current, gas, water, heat or refrigeration and other such, as well as standard software.(2) Money in circulation and foreign currency used as tender shall not be goods within the meaning given by this Act.Supply of GoodsArticle 6. (1) "Supply of goods," within the meaning given by this Act, shall be the transfer of the right of ownership or another right in rem to goods.(2) For the purposes of this Act, the following shall also be considered supply of goods:1. the transfer, resulting from a request or an act of a central or local government authority or the administrations thereof or in pursuance of the law, of a right of ownership or another right in rem against payment of compensation;2. the actual handing over of goods, pursuant to a lease contract which provides for the passing of the right of ownership of the said goods under a suspensive condition or in the normal course of events;3. the actual handing over of goods, pursuant to a lease contract which expressly provides for passing of the right of ownership of the goods; this provision shall not apply where passing of ownership of the goods is stipulated in the contract solely as an option;4. the actual handing over of goods to a person acting in his own name and for the account of another.(3) For the purposes of this Act, the following shall also be considered supply of goods effected for consideration:1. the setting aside or handing over of goods for the private use or consumption of the taxable natural person, of the owner, of the factory or office workers thereof or of third parties and subject to the condition that credit for input tax has been deducted wholly or partly upon the production, importation or acquisition of the said goods;2. the transfer of ownership or another right in rem to goods to third parties, effected free of charge, where credit for input tax has been deducted wholly or partly upon the production, importation or acquisition of the said goods.(4) Paragraph (3) shall not apply upon:1. the handing over of special-purpose, working, uniform and presentable clothing by an employer to the factory and office workers thereof, including such under management contracts, for the purposes of the economic activity of the person;2. the provision, free of charge, of goods of negligible value for advertising purposes or upon distribution of samples.Intra-Community Supply of GoodsArticle 7. (1) "Intra-Community supply of goods" shall be any supply of goods, transported by or for the account of the supplier who is a person registered under this Act, or of the recipient from the territory of the country to the territory of another Member State, where the recipient is a taxable person or a non-taxable legal person registered for VAT purposes in another Member State.(2) Any supply of a new means of transport, dispatched or transported by or for the account of the supplier or of the recipient from the territory of the county to the territory of another Member State, regardless of whether the recipient is a taxable person or a non-taxable person, shall also be considered intra-Community supply of goods.(3) Any supply of excisable goods, dispatched or transported by or for the account of the supplier who is a person registered under this Act, or of the recipient from the territory of the country to the territory of another Member State, where the recipient is a taxable person or a non-taxable legal person which is not registered for VAT purposes in another Member State, shall also be considered intra-Community supply of goods.(4) The dispatch or transport of any goods produced, extracted, processed, purchased or imported into the territory of the country by a person registered under this Act within the framework of the economic activity thereof shall also be considered intra-Community supply of goods effected for consideration, where the said goods are dispatched or transported for the purposes of the economic activity thereof by or for the account of the said person from the territory of the country to the territory of another Member State in which the said person is registered for VAT purposes.(5) The following shall not be intra-Community supply:1. the supplies of any goods in respect of which the supplier applies the special procedure for taxation under Chapter Seventeen herein;2. the supplies of any goods which are assembled or installed by or for the account of the supplier;3. the supplies of any goods under Article 18 herein;4. the supplies of any goods referred to in Items 1, 2 and 7 of Article 31 and Article 34 herein;5. the supplies of natural gas through the natural gas distribution system or of electricity;6. the supplies by a person registered under this Act who is an intermediary in a triangular operation to the acquirer in a triangular operation;7. the distance selling of goods effected under the identification number issued by the Member State whereto the goods have been dispatched or transported;8. the dispatch and transport of any goods from the territory of the country to the territory of another Member State for the purpose of work on the said goods, which is carried out in that other Member State, provided that the said goods, after being worked upon, are re-dispatched to the sender within the territory of the country;9. the dispatch and transport of any goods from the territory of the country to the territory of another Member State for the purpose of use of the said goods for the purposes of the supply of services within the territory of that other Member State, provided that the said goods are re-dispatched to the sender within the territory of the country after supply of the services;10. the dispatch and transport of any goods from the territory of the country to the territory of another Member State, if the following conditions are simultaneously fulfilled:(a) the import of the same goods from a third country or territory to the territory of that other Member State would be eligible for the arrangements for temporary importation with total exemption from import duty;(b) the goods are re-dispatched to the sender within the territory of the country within a period not exceeding 24 months after their dispatch.(6) (Amended, SG No. 113/2007) Where the conditions under Items 8 to 10 of Paragraph (5) no longer apply, intra-Community supply for consideration shall be considered to be effected by that time.ServicesArticle 8. "Services" within the meaning given by this Act, shall mean everything which has a value and which is other than goods, money in circulation and foreign currency used as legal tender.Supply of ServicesArticle 9. (1) "Supply of services" shall be any performance of services.(2) The following shall also be considered supply of services:1. the sale or transfer of rights to intangible property;2. the assumption of an obligation not to perform any acts or not to exercise any rights;3. any manual and intellectual work, including treatment in the sense of production, construction or assembly of a tangible asset using raw and prime materials placed by the client at the disposal of the service provider;4. the performance of services by a tenant/user for repair and/or improvement of an asset hired out or allocated for use.(3) The following shall also be considered supply of services effected for consideration:1. the provision of services for the private use of the taxable natural person, of the owner, of the factory and office workers or of third parties, the performance of which involves use of goods upon the production, importation or acquisition whereof credit for input tax has been wholly or partly deducted.2. the provision, free of charge, of services for the private use of the taxable person, of the owner, of the factory or office workers or of third parties.(4) Paragraph (3) shall not apply upon:1. the provision, free of charge, of transport services from the place of residence to the place of work and back, by an employer to the factory and office workers thereof, including such under management contracts, where for the purposes of the economic activity of the person;2. the performance, free of charge, of services by a tenant/user for repair of an asset hired out or allocated for use in the cases where the said asset was hired out or allocated for use to the tenant/user and has been actually used on a continuing basis for a period of not less than three years;3. the performance, free of charge, of services by a concessionaire for improvement of an asset allocated for use, where this is a condition and/or obligation under the contract of concession;4. the performance, free of charge, of services of negligible value for advertising purposes.Where No Supply or Goods or Services Has Taken PlaceArticle 10. (1) No supply of goods or services has taken place where the supply to the transferee from the transforming corporation, from the transferor or from the contributor of a non-cash asset results from:1. transformation of a commercial corporation according to the procedure established by Chapter Sixteen of the Commerce Act; 2. transfer of an enterprise according to the procedure established by Article 15 or Article 60 of the Commerce Act;3. contributing a non-cash asset in consideration of a capital allotment in a commercial corporation.(2) In the cases covered under Paragraph (1), the recipient of the goods or services shall furthermore accede to all rights and obligations under this Act and in connection with them, including the right to deduct credit for input tax and of the obligations to adjust credit for input tax used.(3) Paragraph (2) shall furthermore apply in the cases where the goods and services have been acquired by legal or testamentary succession by a taxable person under this Act.(4) The procedure and the requisite documents for application of Paragraphs (2) and (3) shall be determined by the Regulations for Application of this Act.Supplier and RecipientArticle 11. (1) "Supplier," within the meaning given by this Act, shall be the person who effects the supply of goods or services.(2) "Recipient," within the meaning given by this Act, shall be the person who receives the goods or the services.Taxable SupplyArticle 12. (1) "Taxable supply" shall be each supply of goods or services within the meaning given by Articles 6 and 9 herein, where effected by a taxable person under this Act and whereof the place of transaction is within the territory of the country, as well as the zero-rated supplies effected by a taxable person, save in the cases in which this Act provides otherwise.(2) A supply in which the recipient is a taxpayer under Chapter Eight herein shall not be subject to taxation by the supplier.Intra-Community AcquisitionArticle 13. (1) "Intra-Community acquisition" shall mean acquisition of the right of ownership of goods, as well as the actual receipt of goods in the cases under Article 6 (2) herein, which are dispatched or transported to the territory of the country from the territory of another Member State, where the supplier is a taxable person registered for VAT purposes in another Member State.(2) The acquisition of a new means of transport, which is dispatched or transported to the territory of the country from the territory of another Member State, regardless of whether the supplier is a taxable person for VAT purposes in another Member State, shall also be considered an intra-Community acquisition.(3) The receipt of goods within the territory of the country by a person registered under this Act, which will be used for the purposes of the economic activity of the said person, shall also be considered an intra-Community acquisition for consideration where the said goods are dispatched or transported by or for the account thereof from the territory of another Member State in which the person is registered for VAT purposes and where the said goods were produced, extracted, processed, purchased, acquired or imported thereby within the framework of the economic activity thereof.(4) The following shall not be an intra-Community acquisition:1. the acquisition of any goods to which the supplier applies special arrangements for taxing of second-hand goods, works of art, collectors' items and antiques, as regulated in the legislation of the relevant Member State;2. the acquisition of any goods which are assembled or installed by or for the account of the supplier;3. the acquisition of any goods covered under Article 18 herein;4. the acquisition of any goods referred to in Items 1, 2 and 7 of Article 31 and Article 34 herein;5. the acquisition of natural gas through the natural gas distribution system or of electricity;6. the acquisition of any goods by a person registered under this Act who is an acquirer in a triangular operation from an intermediary in a triangular operation;7. the acquisition of any goods dispatched or transported from the territory of another Member State for the purpose of distance selling whereof the place of transaction is within the territory of the country, where selling is effected under the supplier's identification number referred to in Article 94 (2) herein;8. the receipt of any goods dispatched or transported from the territory of another Member State to the territory of the country for the purpose of work on the said goods, which is carried out within the territory of the country, provided that the said goods, after being worked upon, are re-dispatched to the sender within the territory of that other Member State;9. the receipt of any goods dispatched or transported from the territory of another Member State to the territory of the country for the purpose of use of the said goods for the purposes of the supply of services within the territory of the country, provided that the said goods are re-dispatched to the sender within the territory of that other Member State after supply of the services;10. the receipt of any goods dispatched or transported from the territory of another Member State to the territory of the country, if the following conditions are simultaneously fulfilled:(a) the import of the same goods from the territory of the country would be eligible for the arrangements for temporary importation with total exemption from customs duty;(b) the goods are re-dispatched to the sender within the territory of another Member State within a period not exceeding 24 months after their dispatch.(5) (Amended, SG No. 113/2007) Where the conditions under Items 8 to 10 of Paragraph (4) no longer apply, intra-Community acquisition for consideration shall be considered to be effected by that time.Distance Selling of GoodsArticle 14. (1) "Distance selling" shall be a supply of goods where the following conditions are simultaneously fulfilled:1. the goods are dispatched or transported by or for the account of the supplier from the territory of a Member State other than the Member State in which the transport ends;2. the supplier of the goods is registered for VAT purposes in a Member State other than the Member State in which the transport ends;3. the recipient of the supply is a person who is not obliged to charge tax upon intra-Community acquisition of the goods in the Member State where the transport ends;4. the goods:(a) are not new means of transport, or(b) are not assembled and/or installed by or for the account of the supplier, or(c) are not subject to special arrangements for taxing the price margin for second-hand goods, works of art, collectors' items and antiques.(2) For the purposes of Paragraph (1), where the goods are supplied, dispatched or transported from a third country or territory and are imported by the supplier into a Member State other than the Member State in which the transport to the recipient ends, the goods shall be deemed to be dispatched or transported from the Member State of import of the goods.Triangular OperationArticle 15. "Triangular operation" shall be the supply of goods between three persons registered for VAT purposes in three different Member States A, B and C, where the following conditions are simultaneously fulfilled:1. a registered person in Member State A (transferor) effects a supply of goods to a person registered for the purposes of VAT in Member State B (intermediary) who then effects a supply of the said goods to a person registered for the purposes of VAT in Member State C (acquirer);2. the goods are transported directly from A to B;3. the intermediary is not registered for VAT purposes in Member States A and B;4. the acquirer charges VAT as a recipient of the supply.Importation of GoodsArticle 16. (1) "Importation of goods," within the meaning given by this Act, shall be the introduction of non-Community goods into the territory of the country.(2) "Importation of goods" shall furthermore mean the release of goods for free circulation after placing under the outward processing procedure.(3) "Importation of goods" shall furthermore mean the introduction of Community goods into the territory of the country from third countries or territories which form part of the customs territory of the Community.(4) "Importation of goods" shall furthermore mean any other event from which a customs debt arises.(5) Notwithstanding Paragraphs (1) to (4), where upon introduction into the territory of the country the customs status of goods in temporary storage is conferred on the goods or the goods are place in a free zone or free warehouse, or are placed under the customs procedures of: customs warehousing, inward processing, temporary importation with total exemption from duty, external transit, the importation shall be deemed effected when the goods cease to be under the relevant procedure within the territory of the country.PART TWOTAXATION OF SUPPLIESChapter OnePLACE OF TRANSACTIONPlace of Supply of GoodsArticle 17. (1) "Place of supply of goods which are not dispatched or transported" shall mean the place where the goods are when ownership passes or upon the actual handing over of the goods under Article 6 (2) herein.(2) "Place of supply of goods which are dispatched or transported either by the supplier or by the recipient or by a third person" shall be the place where the goods are at the time when dispatch or transport to the recipient begins.(3) "Place of supply of goods by an intermediary in a triangular operation to an acquirer in a triangular operation" shall be the Member State where the acquirer in a triangular operation is registered for VAT purposes.(4) "Place of supply of goods which are assembled or installed by or for the account of the supplier" shall be the place where the goods are assembled or installed.Place of Supply of Goods Effected on Board Ships, Aircraft and TrainsArticle 18. (1) The place of supply of goods effected on board ships, aircraft or trains during a transport of passengers shall be the territory of the country where:1. the point of departure of the transport of passengers is within the territory of the country and the point of arrival of the transport of passengers is within the territory of another Member State without a stop in the territory of a third country or territory, or2. the point of departure of the transport of passengers is within the territory of the country and the point of arrival of the transport of passengers is within the territory of a third country or territory without a stop in the territory of another Member State, or3. the point of departure of the transport of passengers is within the territory of a third country or territory and the point of arrival is within the territory of another Member State and the first stop within the territory of the Community has taken place within the territory of the country, or4. the transport of passengers is effected between two points within the territory of the country.(2) The place of supply of goods effected on board ships, aircraft or trains during a transport of passengers shall be determined according to the procedure established by Items 2 and 3 of Paragraph (1) solely in respect of the part of the transport of passengers effected between the territory of the country and the other Member States.(3) In the cases not covered by Paragraphs (1) and (2), the place of supply of goods effected on board ships, aircraft or trains during a transport of passengers shall be outside the territory of the country.Place of Supply of Natural Gas and ElectricityArticle 19. The place of supply of natural gas through the natural gas distribution system or of electricity shall be:1. the place where the recipient has established his registered office or fixed establishment or, in the absence of such an office or establishment, the place where the said recipient, who is a taxable dealer of natural gas or electricity, has his permanent address or usually resides;2. the place where the goods are effectively consumed: where a person other than the person referred to in Item 1 is a recipient;3. the place where the recipient referred to in Item 2 has his registered office or fixed establishment or, in the absence of such an office or establishment, the place where the recipient referred to in Item 2, who effects a subsequent supply or all or part of the goods received thereby, has his permanent address or usually resides.Place of Supply under Terms of Distance SellingArticle 20. (1) The place of supply of goods under the terms of distance selling referred to in Article 14 herein shall be the territory of the Member State where the transport ends and where the following conditions are simultaneously fulfilled:1. the supplier is a person registered under this Act on grounds other than for registration for intra-Community acquisition;2. the supplies effected by the person referred to in Item 1 under the terms of distance selling for a Member State exceed the threshold established in the legislation of that Member State for the current calendar year or have exceeded the said threshold for the last preceding calendar year.(2) The place of supply under the terms of distance selling shall be the territory of the country where the following conditions are simultaneously fulfilled:1. the supplier is a person registered for VAT purposes in another Member State;2. the supplies effected under the terms of distance selling for the territory of the country will exceed the amount of BGN 70,000 for the current calendar year or have exceeded the said amount for the last preceding calendar year.(3) The amount referred to in Item 2 of Paragraph (2) shall be net of the VAT due in the Member State where the supplier is registered for VAT purposes on the supplies of any goods other than excisable goods.(4) Where excisable goods for the private consumption of a natural person who is not a sole trader are subject of the supply, the place of supply under the terms of distance selling shall be the place where the goods arrive or the transport ends.(5) Where the conditions referred to in Item 2 of Paragraph (1) are not fulfilled, the place of supply shall be the territory of the country, with the exception of the cases where the supplier has notified the territorial directorate exercising competence over the place of registration that the said supplier wishes that the place of supply be the territory of another Member State, where the transport ends, and the said supplier is registered for VAT purposes in that other Member State.(6) Paragraph (2) shall not apply where the place of supply is the territory of the country, where the supplier is registered in pursuance of Article 100 (3) herein.Place of Supply of GoodsArticle 21. (1) The place of supply of services shall be the place where the supplier has established his independently carried out economic activity or has a fixed establishment from which the supply is effected or, in the absence of such a place or establishment, the place of his permanent or habitual residence.(2) The place of supply of services shall be:1. the place where the immovable property is situated, where the supply of services is connected with immovable property, including upon:(a) expert services or the services of estate agents;(b) the services for preparing and coordinating construction works connected with immovable property, such as the services of architects, engineers, firms providing on-site supervision etc.;2. the place where transport services are performed, having regard to the part of the distance covered for the supply of the said services;3. the place where the services are physically carried out, upon:(a) services relating to cultural, artistic, sporting, scientific, educational, entertainment or similar activities, including the activities of the organizers of such activities;(b) services relating to transport handling of goods;(c) valuation, expert examination or work on a movable thing.(3) The place of supply of services shall be the place where the recipient has his registered office or permanent establishment from which the said recipient carries out his economic activity or, in the absence of such an office or establishment, the place where the said recipient has his permanent address or usually resides, where the following conditions are simultaneously fulfilled:1. (amended, SG No. 108/2006) the recipient is a person established outside the Community, or a taxable person established in a Member State other than the State in which the supplier is established;2. the services supplied are:(a) assignment or transfer of licence, patent, copyright, trade mark, know-how rights or other similar industrial or intellectual property rights, as well as transfer of rights to software products other than standard software;(b) advertising services;(c) services performed by consultants, engineers, accountants, lawyers and other similar services, including the services for the redesign of software;(d) data processing or supplying of information;(e) banking, financial, social insurance, commercial insurance and reinsurance services, with the exception of the hire of safes;(f) supply of staff;(g) hiring out of movable things, with the exception of all types of means of transport;(h) (amended SG No. 41/2007) electronic communications services;(i) radio and television broadcasting services;(j) electronically supplied services;(k) services for the provision of access to, and of transport or transmission through, natural gas and electricity distribution systems and the provision of other directly linked services;(l) assumption of an obligation not to perform any acts or not to exercise any rights referred to in Litterae (a) to (k);(m) the services of intermediaries performed by a person acting in the name of and for the account of another, in connection with the services referred to in Litterae (a) to (l).(4) (Amended SG No. 41/2007) The place of provision of electronic communications services and radio and television broadcasting services shall be the territory of the country, where the following conditions are simultaneously fulfilled:1. the recipient of the said supplies is a non-taxable person who is established, has his permanent address or usually resides within the territory of the country;2. (supplemented, SG No. 113/2007) the supplier is a taxable person with registered office or a permanent establishment from which the said supplier carries out his economic activity or, in the absence of such an office or establishment, the place of his permanent address or habitual residence is outside the Community;3. the services are effectively used within the territory of the country.(5) The place of supply of electronically supplied services shall be the territory of the country, where the following conditions are simultaneously fulfilled:1. the recipient of the said supplies is a non-taxable person who is established, has a permanent address or usually resides within the territory of the country;2. the supplier is a person whose registered office or fixed establishment or, in the absence of such an office or establishment, whose permanent address or habitual residence is outside the territory of the Community.Place of Supply of Services in Intra-Community Transport of GoodsArticle 22. (1) The place of supply of services in the intra-Community transport of goods shall be the territory of the country, where the place of departure is situated within the territory of the country and the place of arrival is situated within the territory of another Member State.(2) Where a recipient of the supply referred to in Paragraph (1) is a person registered for VAT purposes in another Member State, the place of supply shall be the territory of the Member State which issued the said recipient with the VAT identification number under which the service was rendered thereto.(3) (New, SG. No. 108/2006) Beyond the cases under paragraphs 1 and 2, the place of performance of the delivery of a service, concerning the transportation of goods between two Member States shall be the territory of the Member State, in which the transportation of goods is initiated.(4) (New, SG. No. 108/2006) When the recipient of the delivery under paragraph 3 is a person, registered for the purposes of VAT in a Member State, other than the Member State where the transportation was initiated, the place of performance of the delivery shall be the territory of the Member State, which has issued the VAT identification number to the recipient, under which the service was rendered.(5) (New, SG No. 108/2007) For the purposes of this Act, forwarding, courier and postal services other than those referred to in Article 49 provided in connection with transportation of goods between Member States shall be equivalent to services for transportation of goods between Member States.(6) (New, SG No. 108/2007) A forwarding service under paragraph 5 shall be a service for organizing, carrying out or handling transportation of goods between Member States and related activities involving transport handling, document processing, storage and insurance.(7) (New, SG No. 108/2007) Where a forwarder acts under the terms and conditions of a forwarding contract and provides a forwarding service related to supply of services for transportation of goods between Member States, the provision of Article 127 shall not apply.Place of Supply of Services Ancillary to Supply of Services inIntra-Community Transport of GoodsArticle 23. (1) The place of supply of services involving transport handling of goods ancillary to the supplies referred to in Article 22 herein shall be the territory of the Member State which issued the recipient with the VAT identification number under which the service was rendered thereto.(2) (Amended, SG No. 108/2006) The place of supply of services rendered by an agent, broker and another intermediary acting in the name and for the account of another person in connection with the supplies of services under Article 22 herein, shall be on the territory of the Member State, in which the transportation of goods was initiated.(3) (Amended, SG No. 108/2006) Where the recipient of the supply referred to in Paragraph (2) is a person registered for VAT purposes in a Member State, other than the Member State, where transportation was initiated, the place of supply shall be the territory of the Member State which issued the recipient with the VAT identification number under which the service was rendered thereto.(4) The place of supply of services rendered by an intermediary acting in the name of and for the account of another person in connection with the provision of services for transport handling of goods under Paragraph (1) shall be the place where the transport handling of the goods is physically performed.(5) (Amended, SG No. 108/2006) Where the recipient of the supply under Paragraph (4) is a person registered for VAT purposes in a Member State, other than the Member State, where transportation was actually performed, the place of supply shall be the territory of the Member State which issued the recipient with the VAT identification number under which the service was rendered thereto.Place of Supply of Services Involving Valuations or Work on MovableThings and Intermediation ServicesArticle 24. (Amended, SG No. 108/2006, No. 113/2007) (1) The place of supply of services rendered by an intermediary acting in the name of and for the account of another person, when such services are linked to intra-Community acquisition of goods, to the supplies of goods or services other than those referred to in Article 21 (3), Articles 22 and 23 herein, shall be the place of supply of the intra-Community acquisition or of the supply in connection with which the intermediation is rendered.(2) When the recipient of the delivery under paragraph 1 is a person, registered for the purposes of VAT in a Member State, other than the Member State in which the place of supply of Intra-community acquisition is or performance of the delivery, with regard to which the intermediation was made, the place of performance of the delivery shall be the territory of the Member State, which issued the VAT identification number to the recipient, under which the service was rendered.(3) The place of supply of services involving valuations or work on movable things shall be the territory of the Member State which issued the recipient with the VAT identification number under which the service was rendered thereto, where the following conditions are fulfilled simultaneously:1. the recipient of the supply is a person registered for VAT purposes in a Member State other than the Member State in which the valuation or the work on movable things was actually performed;2. after completion of the valuation or the work on movable things the goods are sent or transported outside the territory of the Member State in which the valuation or the work on movable things was actually performed.Chapter TwoCHARGEABLE EVENT AND TAXABLE AMOUNTOccurrence of Chargeable Event and Chargeability of TaxArticle 25. (1) "Chargeable event," within the meaning given by this Act, shall be the supply of goods or services effected by taxable persons under this Act, the intra-Community acquisition, as well as the importation of goods under Article 16 herein.(2) A chargeable event shall occur on the date on which ownership of the goods passes or on which the services are performed.(3) In addition to the cases referred to in Paragraph (2), a chargeable event shall occur on:1. (supplemented, SG No. 108/2007) the date of actual handing over of the goods under Article 6 (2) herein, except for the cases under Paragraph (8);2. the date of setting aside or handing over of the goods under Article 6 (3) herein;3. the date on which the transport under Article 7 (4) herein starts;4. the date on which the supplier receives the payment: applicable to sale of goods by mail order or by electronic means;5. the date of retrieval of the coins or tokens: applicable to effecting of supplies by means of vending machines or other similar devices actuated by coins, tokens or other such;6. the date of the actual return of the asset repaired and/or improved upon termination of the contract or discontinuance of the use of the asset: in the cases of performance, free of charge, by a tenant/user of services for repair and/or improvement of an asset hired out or allocated for use, where the conditions under Items 2 and 3 of Article 9 (4) herein do not apply.(4) (Amended, SG No. 108/2006) In supplies effected periodically, by stages or continuously, with the exception of the supplies covered under Article 6 (2) herein, each period or stage for which payment has been agreed shall be considered to be a separate supply and the chargeable event for it shall occur on the date on which the payment became executable.(5) On the date of occurrence of the chargeable event under Paragraphs (2), (3) and (4):1. the tax under this Act shall become chargeable in respect of the taxable supplies and an obligation for the registered person to charge the said tax shall arise, or2. grounds shall arise for exemption from the charging of tax in respect of the exempt supplies and the supplies whereof the place of transaction is outside the territory of the country.(6) (Amended, SG No. 113/2007) Where an advance payment in full or in part is effected on a supply before the occurrence of a chargeable event under Paragraphs (2), (3) and (4), the tax shall become chargeable upon receipt of the payment (for the payment amount), with the exception of a payment received in connection with an intra-Community supply.(7) Where a person who is not registered under this Act receives an advance payment in connection with a taxable supply and actually effects the said supply after the date of registration of the said person under this Act, the advance payment received shall be presumed to include a tax which becomes chargeable on the date on which the tax on the supply becomes chargeable.(8) (New, SG No. 108/2007) The chargeable event for supply under Item 4 of Article 6 (2) of newspapers, magazines, books and other publications, music audio and video recordings and recordings of films on electronic or technical medium shall occur at the earlier of the following two dates:1. the date on which the principal/mandator receives the payment from the commission agent/mandatory under Article 127, or2. the last day of the quarter following the tax period in which actual handing over of the goods under Item 4 of Article 6 (2) is carried out.Taxable Amount in Supplies within the Territory of the CountryArticle 26. (1) "Taxable amount," within the meaning given by this Act, shall be the value whereon the tax is charged or not charged depending on whether the supply is taxable or exempt.(2) The taxable amount shall be determined on the basis of everything which constitutes the consideration which has been obtained by or is due to the supplier from the recipient or another person in connection with the supply, expressed in leva and stotinki exclusive of the tax under this Act. Any payment of interest and damages of a compensatory nature shall not be considered a consideration for a supply.(3) The taxable amount referred to in Paragraph (2) shall be credited with:1. all other taxes and fees, including excise duty, where such are payable on the supply;2. all subsidies and investment grants directly linked to the supply;3. the incidental expenses charged by the supplier to the recipient, such as commission, packing, transport, insurance costs etc., directly linked to the supply;4. the cost of the usual or customary packing materials or containers, unless returnable or if the recipient is not a taxable person; if such packing materials or containers are returned by the recipient, the taxable amount shall be debited with the value of the said materials or containers upon return.(4) The taxable amount shall be deemed to include:1. the value of the subsequent warranty services for the goods;2. the value retained by the recipient as a performance bond.(5) The taxable amount shall not include:1. the amount of the trade discount or rebate, if allowed to the recipient on the date of occurrence of the chargeable event; if the said discount or rebate is allowed to the recipient after the date of occurrence of the chargeable event, the taxable amount shall be debited therewith upon allowance;2. the cost of the usual or customary packing materials or containers, if the recipient is a taxable person and the said materials or containers are returnable; if such materials or containers are not returned within 12 months after dispatch thereof, the taxable amount shall be credited with the value of the said materials or containers at the end of this time period;3. the costs incurred by a lessor and lessee in connection with the use of goods under the terms and within the term of validity of a lease contract, such as: costs of property insurance, civil liability insurance and other such, for all or part of the term of validity of the contract, the costs of property taxes and fees, environmental fees and registration costs;4. the amounts paid to the supplier as repayment for the expenses incurred in the name and for the account of the recipient, where the said amounts are expressly entered in the accounts of the supplier; the supplier must hold proof of the actual amount of this expenditure and shall not have the right to credit for input tax in respect of the tax which may have become chargeable upon the incurrence of the said expenditure.(6) (Amended, SG No. 113/2007) Where the values required for calculation of the taxable amount are expressed in a foreign currency, the taxable amount shall be determined on the basis of the lev equivalent of the said currency at the exchange rate announced by the Bulgarian National Bank for the date on which the tax became chargeable.(7) Where the consideration is expressed wholly or partly in goods or services (the payment is effected wholly or partly in goods or services), the taxable amount of the supply shall be the open market value of the goods or services supplied, calculated at the date on which the tax became chargeable.Special Cases of Determination of Taxable AmountArticle 27. (1) The taxable amount of the supply may not be less than the taxable amount upon acquisition of the costs or than the cost price, and in the cases where the goods are imported, than the taxable amount upon importation, for any supplies of:1. goods under Article 6 (3) and Article 7 (4) herein;2. land which is a regulated lot within the meaning given by the Spatial Development Act, with the exception of building land of buildings which are not new;3. new buildings or parts thereof and the building land thereof.(2) The taxable amount of supplies of services under Article 9 (3) herein shall be the amount of the direct costs incurred in connection with the performance of the said services.(3) The taxable amount shall be the open market value in respect of the following supplies:1. any supplies between connected persons;2. (supplemented, SG No. 108/2007) any supplies of goods and/or services under Article 111 herein;3. any supplies effected free of charge under Item 4 of Article 9 (2) herein.Chapter ThreeZERO-RATED SUPPLIESSupplies of Goods Dispatched or Transported to Destination outsideTerritory of CommunityArticle 28. The following shall be supplies liable to tax at the zero rate:1. the supply of any goods which are dispatched or transported from a place within the territory of the country to a destination in a third country or territory, by or for the account of the supplier;2. the supply of any goods which are dispatched or transported from a place within the territory of the country to a destination in a third country or territory, by or for the account of the recipient, if the recipient is a person who is not established within the territory of the country; this provision shall not apply where the goods are intended for the fuelling, equipment and provisioning of vessels and aircraft which are used for sporting and entertainment purposes or for private use.International Transport of PassengersArticle 29. (1) Transport of passengers shall be a supply liable to tax at the zero rate where the transport is effected:1. from a place within the territory of the country to a destination outside the territory of the country, or2. from a place outside the territory of the country to a destination within the territory of the country, or3. between two places within the territory of the country, where the transport is not part of a transport referred to in Items 1 and 2.(2) The transport of goods and motor vehicles, where they are part of the luggage of passengers, shall also be considered as transport of passengers under Paragraph (1).International Transport of GoodsArticle 30. (1) (Previous Article 30, SG No. 108/2007) Transport of goods shall be a supply liable to tax at the zero rate where the transport is effected:1. from a place within the territory of the country to a destination within the territory of a third country or territory or to a destination within the territory of the islands making up the autonomous regions of the Azores and Madeira, or2. from the territory of a third country or territory or from the territory of the islands making up the autonomous regions of the Azores and Madeira to a destination within the territory of the country, or3. between two places within the territory of the country, where the transport is not part of a transport referred to in Items 1 and 2.(2) (New, SG No. 108/2007) For the purposes of this Act, forwarding, courier and postal services other than those referred to in Article 49 provided in connection with international transport of goods under Paragraph (1) shall be equivalent to international transport services under Paragraph (1).(3) (New, SG No. 108/2007) A forwarding service under Paragraph (2) shall be a service for organizing, carrying out or handling international transport of goods under Paragraph (1) and related activities involving transport handling, customs clearance, storage and insurance.(4) (New, SG No. 108/2007) Where a forwarder acts under the terms and conditions of a forwarding contract and provides a forwarding service related to supply of services for international transport of goods under Paragraph (1), the provision of Article 127 shall not apply.Supply Linked to International TransportArticle 31. The following shall be supplies liable to tax at the zero rate:1. (amended, SG No. 108/2007) the supply of goods for the equipping with spare parts, fuelling and lubricating, and provisioning with food, beverages, water and other victuals of small vessels, aircraft and railway rolling stock on international service, including in the Community, where the goods supplies are intended for consumption on board; this shall not apply to vessels or aircraft which are used for sporting and entertainment purposes or for private use;2. (amended, SG No. 108/2007) the supply of goods for the equipping with spare parts, fuelling and lubricating, and provisioning with food, beverages, water and other victuals intended for consumption on board:(a) large vessels used for transportation of goods or passengers, or vessels used for the purposes of commercial, industrial or fishing activities outside the maritime space of the Republic of Bulgaria;(b) vessels used for rescue or assistance at sea;(c) vessels of war, as defined in subheading 89.01 of the Common Customs Tariff, leaving the country and bound for foreign ports or anchorages;3. the supply of services for the building, maintenance, repair, modification, transformation, assembly, equipping, furnishing, transport and destruction of ships and aircraft, with the exception of those referred to in Item 2 (c); this shall not apply to any ships and aircraft which are used for sporting and entertainment purposes or for private use;4. (amended, SG No. 108/2007) the chartering of:(a) small vessels, aircraft and railway rolling stock for the effecting of international transport, including in the Community;(b) large vessels; this shall not apply to vessels which are used for sporting and entertainment purposes or for private use;5. (amended, SG No. 108/2007) the handling of:(a) small vessels, aircraft and railway rolling stock on international service, including in the Community;(b) large vessels; this shall not apply to vessels which are used for sporting and entertainment purposes or for private use;6. (amended, SG No. 108/2006, No. 108/2007) the supply of services linked to transport handling of goods or passengers, including transport containers:(a) carried by a small vessel, aircraft or railway rolling stock where the services are rendered in relation to the international transport under Articles 29 and 30;(b) carried by a large vessel;7. the supply of vessels and aircraft, with the exception of those used for sporting and entertainment purposes or for private use;8. (new, SG No. 108/2006, supplemented, SG No. 108/2007) the rendering of services, for which fees are collected under Article 120, paragraph 1 of the Civil Aviation Act, rendered by an airport operator Ц concessionaire in relation to aviation facilities in an international flight, including in the Community;9. (new, SG No. 108/2007) the supply of services under Chapter Nine of the Merchant Shipping Code, rendered to vessels; this shall not apply to vessels which are used for sporting and entertainment purposes or for private use;10. (new, SG No. 108/2007) the supply of services for rescue or assistance at sea.Supply Linked to International Goods TrafficArticle 32. (1) (Amended, SG No. 108/2006) The supply of non-Community goods, with the exception of such specified in Annex 1 hereto in respect of which the circumstances covered under Article 16 (5) herein apply, shall be a supply liable to tax at the zero rate.(2) (Amended, SG No. 113/2007) A supply liable to tax at the zero rate shall be the supply of services involving loading, unloading, re-loading, arrangement, strengthening of the goods and/or customs clearance, where these are rendered in connection with the supply of goods liable to tax at the zero rate under Paragraph (1), with the exception of the supplies exempt within the meaning given by this Act.Supply for Handling of GoodsArticle 33. The performance of services involving work on goods, such as treatment, processing or repair or goods, shall be a supply liable to tax at the zero rate where the following conditions are fulfilled:1. the goods are acquired or imported for the purposes of performance of such work within the territory of the Community;2. after being worked upon, the goods are dispatched or transported to a third country or territory by or for the account of the supplier or the recipient;3. the recipient of the goods is not established within the territory of the country.Supply of Gold for Central BanksArticle 34. The supply of gold other than investment gold within the meaning given by this Act shall be a supply liable to tax at the zero rate where the recipient is the Bulgarian National Bank or the Central Bank of another Member State.Supply Linked to Duty-Free TradeArticle 35. (Supplemented, SG No. 105/2006) The sales of goods in duty- free distributive trade establishments shall be a supply liable to tax at the zero rate when the sale is considered to be export as defined by the Duty Free Sales Act. Supply of Goods Provided by Agents, Brokers and Other IntermediariesArticle 36. (1) The supply of goods provided by agents, brokers and other intermediaries acting in the name and for the account of another shall be a supply liable to tax at the zero rate where linked to the supplies specified in this Chapter.(2) (Repealed, SG No. 113/2007). Documenting SuppliesArticle 37. (1) The documents certifying the existence of circumstances under this Chapter shall be specified by the Regulations for Application of this Act.(2) (Amended, SG No. 108/2007) If the supplier fails to obtain the documents referred to in Paragraph (1) prior to the lapse of the calendar month succeeding the calendar month during which the tax became chargeable, the provisions of this Chapter shall not apply. If the supplier obtains the documents referred to in Paragraph (1) subsequently, the supplier shall adjust the result of the application of this Paragraph according to a procedure established by the Regulations for Application of this Act. (3) (New, SG No. 108/2007) Paragraph 2 shall not apply to advance payments received.Chapter FourEXEMPT SUPPLIES AND ACQUISITIONSGeneral DispositionsArticle 38. (1) The supplies specified in this Chapter shall be exempt from tax.(2) Any intra-Community supplies shall likewise be exempt if they would have been exempt if effected within the territory of the country according to the procedure established by this Chapter.(3) Any intra-Community acquisition of goods, whose supply within the territory of the country is an exempt supply under this Chapter, shall likewise be exempt from taxation.Supply Linked to Health CareArticle 39. The following supplies shall be exempt:1. the performance of health (medical) services and of services directly linked thereto, rendered by health-care facilities under the Health Act and by medical-treatment facilities under the Medical-Treatment Facilities Act; 2. the supply of human organs, tissues and cells, blood, blood components and milk;3. the supply of prostheses, as well as the services for provision of prostheses to people with disabilities, where the said supplies are part of the health services referred to in Item 1;4. (new, SG No. 108/2007) the supply of actively implantable medical devices where the supply is part of the health services under item 1;5. (renumbered from item 4, SG No. 108/2007) the supply of dental prostheses;6. (renumbered from item 5, SG No. 108/2007) the performance of transport services for sick or injured persons in vehicles specially designed for the purpose by duly authorized bodies;7. (renumbered from item 6, SG No. 108/2007) the supply of goods and services within the framework of humanitarian activity carried out by the Bulgarian Red Cross and other not-for-profit legal entities pursuing public-benefit activities and entered into the Central Register of Not-for-Profit Legal Entities for Pursuit of Public-Benefit Activities.Supply Linked to Welfare and Social Security WorkArticle 40. The following supplies shall be exempt:1. the performance of social services under the Social Assistance Act; 2. the supply of social assistance benefits according to the procedure established by the Social Assistance Act; 3. the compulsory and voluntary social, retirement and health insurance under the terms and according to the procedure established by a special law, including the intermediation services directly linked thereto.Supply Linked to Education, Sports or Physical EducationArticle 41. The following supplies shall be exempt:1. pre-school instruction and character education, school or university education, vocational education and training, post-graduate training, retraining and upgrading of qualifications, provided by:(a) kindergartens, schools or auxiliary units under the Public Education Act , institutions within the vocational education and training system under the Vocational Education and Training Act , or cultural and educational or research institutions;(b) higher schools under the Higher Education Act;2. tuition given privately by teachers, covering school or university education under Item 1;3. the supply of textbooks and teaching aids, approved by the Minister of Education and Science or by the Minister of Culture in accordance with the endorsed compulsory teaching and educational syllabi and curricula, where the said goods are supplied by the organizations covered under Item 1 (a), as well as the supply of textbooks and teaching aids, where the said goods are supplied by the organizations covered under Item 1 (b);4. the services directly linked to sports or physical education, provided by sporting organizations under the Physical Education and Sports Act which are registered under the Non-Profit Legal Persons Act as organizations designated for pursuit of public-benefit activities.Supply Linked to CultureArticle 42. The following supplies shall be exempt:1. charges by cultural organizations and cultural institutions under the Protection and Promotion of Culture Act for admissions to:(a) circuses, music and musical performing-arts shows and concerts, with the exception of admissions to bars, variety show bars and erotic shows;(b) museums, art galleries, libraries and theatres;(c) zoos and botanical gardens;(d) architectural, historical, archaeological, ethnographic and museum reserves and complexes;2. the activities of the Bulgarian National Radio, the Bulgarian National Television and the Bulgarian News Agency for which they receive payment from the executive budget.Supply Linked to Religious DenominationsArticle 43. The supply of goods and the performance of services by the Bulgarian Orthodox Church and other registered religious denominations under the Religious Denominations Act shall be an exempt supply where the said supply is linked to the performance of their religious, social, educational and health activities.Supply of Non-Profit-Making NatureArticle 44. (1) The following supplies shall be exempt:1. the supply of goods and the performance of services by the organizations covered under Articles 39, 40, 41 and 42 herein, where the said supply is linked to fund-raising events organized for the benefit of the activities of the said organizations;2. the supply of goods and the performance of services by organizations which are not merchants and which have aims of a political, trade-union, religious, patriotic, philosophical, philanthropic or civic nature, where the said supply is linked to fund-raising events organized for the benefit of the activities of the said organizations;3. the supply of goods and the provision of services by the organizations referred to in Item 2 for the benefit of their members in return for a subscription fixed in accordance with the rules of the said organizations;4. the provision of services by independent groups of persons whose activities are exempt from or are not subject to tax for the purpose of rendering their members the services directly necessary for the exercise of their activity, where these groups merely claim from their members exact reimbursement of their share of the joint expenses.5. (new, SG No. 108/2007) procedural representation whereby the right to defence of natural persons in preliminary, legal, administrative and arbitration proceedings is exercised.(2) The supplies covered under Paragraph (1) shall be exempt insofar as they do not lead to distortion of competition.Supply Linked to Land and BuildingsArticle 45. (1) The transfer of the right of ownership of land, the creation or transfer of limited rights in rem to land, as well as the letting or leasing of land, shall be an exempt supply.(2) The creation or transfer of a building right shall be considered an exempt supply under Paragraph (1) until the time of completion of rough construction work on the building for which the building right is created or transferred. The building right shall not cover the building and erection works performed.(3) The supply of buildings or parts thereof, which are not new, the supply of building land, as well as the creation and transfer of other rights in rem thereto, shall likewise be an exempt supply.(4) The letting of a building or part thereof for residential use to a natural person who is not a merchant shall likewise be an exempt supply.(5) Paragraph (1) shall not apply in respect of:1. the transfer of a right of ownership of a regulated lot within the meaning given by the Spatial Development Act , with the exception of the building land of buildings which are not new;2. the transfer of a right of ownership or other rights in rem, as well as the letting of plant, machinery, equipment and structures immovably fixed to or built under the ground;3. the transfer of a right of ownership or other rights in rem, as well as the letting of camping sites, caravan parks, holiday camps, sites for parking vehicles and other such;4. the transfer of a right of ownership of building land of new buildings, as well as the creation and transfer of other rights in rem to such land.(6) Paragraph (4) shall not apply to provision of accommodation in hotels, motels, cottage villages and holiday villages, rented rooms in family houses, villas, houses, cabanas, camping sites, hikers' chalets, guest houses, inns, boarding houses, caravan parks, holiday camps, holiday accommodations owned by businesses for their employees, spa centres and sanatorium complexes.(7) In the cases of supplies covered under Paragraphs (1), (3) and (4), the supplier shall be allowed a right of option for taxation.Supply of Financial ServicesArticle 46. (1) The following supplies shall be exempt:1. the negotiation, the granting and the management of credit for a consideration (interest) by the person granting it, including the granting, negotiation and management of credit upon supply of goods pursuant to a lease contract;2. the negotiation of guarantees and transactions in guarantees or securities establishing title to money receivables, as well as management of guarantees by the creditor;3. the transactions, including negotiation, concerning bank accounts, transfers, payments, debts, receivables, cheques and other such negotiable instruments, excluding transactions concerning debt collection and factoring and the hire of safes;4. the transactions, including negotiation, concerning currency, banknotes and coins used as legal tender, with the exception of banknotes and coins which are not normally used as legal tender or are of numismatic interest;5. the transactions, including negotiation, concerning corporate interests, shares or other securities and derivatives thereof, with the exception of management and safekeeping; this shall not apply to any securities establishing titles to goods or services other than such specified in this Article;6. (amended and supplemented, SG No. 52/2007) management of the activity of collective investment schemes, investment companies of the closed-end type and pension funds, and the provision of investment advice according to the procedure established by the Public Offering of Securities Act, and the Markets in Financial Instruments Act; 7. the transactions, including negotiation, concerning financial-futures contracts and options.(2) In the cases of a supply pursuant to a lease contract under Item 1 of Paragraph (1), the supplier shall be allowed a right of option for taxation of the granting of the credit.(3) In respect of the supplier of the financial services covered under Item 1 of Paragraph (1), credit for input tax shall become fully deductible in compliance with the requirements of Article 71 herein for the goods subject to the lease contract.Supply of Insurance ServicesArticle 47. The performance of services under the terms and according to the procedure established by the Insurance Code shall be an exempt supply where performed by:1. (supplemented, SG No. 108/2006) insurers and reinsurers;2. insurance brokers and insurance agents.GamblingArticle 48. The organizing of games of chance, within the meaning given by the Gambling Act, shall be an exempt supply.Supply of Postage Stamps and Postal ServicesArticle 49. The following supplies shall be exempt:1. the supply at face value of postage stamps or an indication equivalent to a postage stamps;2. the performance of a universal postal service under the terms and according to the procedure established by the Postal Services Act. Supply of Goods or Services for which Credit for Input Tax Has Not BeenUsedArticle 50. The following supplies of goods or services shall be exempt:1. where the said goods or services have been used entirely for the performance of exempt supplies and, on these grounds, the right to deduct credit for input tax has not been exercised in respect of the tax charged upon their production, acquisition or importation;2. where a right to deduct credit for input tax pursuant to Article 70 herein was not in place upon the production, acquisition or importation of the said goods or services.Chapter FiveTAXATION OF INTRA-COMMUNITY SUPPLIESChargeable Event and Chargeability for Intra-Community SuppliesArticle 51. (1) The chargeable event for an intra-Community supply shall occur on the date on which the chargeable event would have occurred for a supply within the territory of the country.(2) The chargeable event for an intra-Community acquisition referred to in Article 7 (4) herein shall occur on the date on which the transport of the goods from the territory of the country starts.(3) The tax upon an intra-Community acquisition shall become chargeable on the 15th day of the month following the month during which the chargeable event occurs.(4) (Supplemented, SG No. 108/2006) Notwithstanding Paragraph (3), the tax shall become chargeable on the date of issue of the invoice respectively the document under Article 168, paragraph 8, where the said invoice is issued before the 15th day of the month following the month during which the chargeable event occurs.(5) Paragraph (4) shall not apply where the invoice is issued in connection with payment on the supply received before the date of occurrence of the chargeable event.Taxable Amount of Intra-Community SuppliesArticle 52. (1) The taxable amount for intra-Community acquisitions shall be determined according to the procedure established by Article 26 herein.(2) The taxable amount of intra-Community supplies under Article 7 (4) herein shall be the taxable amount upon acquisition of the goods, the cost price thereof or the taxable amount thereof upon importation, credited according to the procedure established by Article 26 (3) herein.(3) The taxable amount referred to in Paragraph (2) shall not be credited with the value of the services covered under Articles 22, 23 and 24 herein, whereof the place of transaction is within the territory of the country, for which the person registered under this Act is obliged to charge tax as a payer covered under Article 82 (2) herein.Rate of Tax and Documenting of Intra-Community SuppliesArticle 53. (1) The intra-Community supplies referred to in Article 7 herein, with the exception of the exempt intra-Community supplies referred to in Article 38 (2) herein, shall be liable to tax at the zero rate.(2) The documents certifying the effecting of the intra-Community supply shall be specified by the Regulations for Application of this Act.(3) If the supplier fails to obtain the documents referred to in Paragraph (2) prior to the lapse of the calendar month succeeding the calendar month during which the tax on the supply became chargeable, Paragraph (1) shall not apply. If the supplier obtains the documents referred to in Paragraph (1) subsequently, the supplier shall adjust the result of the application of this Paragraph according to a procedure established by the Regulations for Application of this Act.PART THREETAXATION OF IMPORTSChargeable Event for ImportationArticle 54. (1) The chargeable event for importation of goods shall occur and the tax shall become chargeable on the date on which the obligation to pay import duty within the territory of the country arises, or should have arisen, including where such an obligation does not exist or the rate of the said obligation is zero.(2) Where an obligation to pay import duty within the territory of the country does not arise upon importation of goods under Article 16 (3) herein, the chargeable event shall occur and the tax shall become chargeable on the date on which the customs formalities are completed.Taxable AmountArticle 55. (1) The taxable amount upon importation of goods under Article 16 herein shall be the value for customs purposes credited with:1. the customs duties, excise duties and other charges due in connection with the importation of the goods within the territory of the Community, as well as those due by reason of importation into the territory of the country;2. the expenses incidental to the importation, such as commission, packing, transport and insurance costs, incurred up to the first place of destination of the goods within the territory of the country.(2) The taxable amount shall furthermore be credited with any costs referred to in Item 2 of Paragraph (1) where the said costs result from transport of the goods from the territory of the country to the territory of another Member State, if the documents accompanying the goods show that the goods are intended for that other Member State.(3) When goods have been temporarily exported from the territory of the country to a place outside the territory of the Community for treatment, processing or repair under the outward processing procedure and are re-imported into the territory of the country, the taxable amount shall be the value of the treatment, processing or repair, credited according to the procedure established by Paragraph (1).(4) The taxable amount under the Paragraphs (1), (2) and (3) shall not include the trade discount or rebate, if allowed to the recipient not later than the date of occurrence of the chargeable event.(5) Upon importation of goods under Article 16 (3) herein, the taxable amount shall be determined according to the procedure established by Article 26 herein.Charging of Tax upon Importation by Customs AuthoritiesArticle 56. The tax upon importation under Article 16 herein shall be charged by the customs authorities, with the amount of tax being accounted for according to the procedure established for the customs debt.Charging of Tax upon Importation by ImporterArticle 57. (1) The tax upon importation may be charged by the importer if the said importer is a registered person and is granted authorization to apply this regime in connection with the implementation of an investment project under Article 166 herein.(2) In the cases under Paragraph (1), the importer shall exercise the right thereof according to the procedure established by Article 164 (2) herein.(3) The importer shall charge the tax in respect of the import for which the importer has exercised the right thereof under Paragraph (1) by a memorandum on the tax period during which the chargeable event under Article 54 herein occurred.(4) In the cases referred to in Article 58 (2) herein, the tax shall be charged by the importer by a memorandum on the tax period during which the tax became chargeable.Exemption from Tax upon ImportationArticle 58. (1) Exemption from tax shall be granted in respect of the importation of:1. goods subject to exemption from customs duties other than as provided for in the Common Customs Tariff;2. goods which are imported by the persons under Article 174 herein, which qualify for exemption from import duties;3. human organs, tissues and cells, blood, blood components, milk, dental prostheses;4. textbooks and teaching aids referred to in Item 3 of Article 41 herein by the organizations covered under Item 1 of Article 41 herein;5. sea fishing products and other products harvested outside the territorial waters of the Community by ships, where the said products are imported into ports unprocessed or after undergoing preservation for marketing;6. goods, where the following conditions are simultaneously fulfilled:(a) the importer is a person registered under this Act;(b) the documents accompanying the goods show that the goods are intended for another Member State;(c) the importer will effect a subsequent intra-Community supply of the goods;7. gold by the Bulgarian National Bank;8. aircraft, vessels, as well as of spare parts for them, with the exception of such for sporting and entertainment purposes;9. investment gold;10. electricity and natural gas, through a distribution system;11. data storage mediums as part of the participation of Bulgaria in the international exchange of publications where exempt from customs duties;12. goods within the duty-free allowances upon:(a) receipt of international postal items and other consignments, or importation of goods of negligible value, within the meaning given by customs legislation;(b) importation of personal luggage by travellers;(c) importation of goods acquired abroad by travellers;(d) importation of personal property acquired by inheritance;(e) importation of used personal property by natural persons transferring their normal place of residence to the Republic of Bulgaria;(f) importation of property on the occasion of a marriage;(g) importation of used household effects after the end of temporary residence outside the Republic of Bulgaria;(h) importation of orders, medals and honorary awards;(i) importation of own works of art and goods and works of science, regardless of the type of the data storage medium, by persons who are permanently resident within the territory of the country;(j) importation of gifts received within the framework of international relations;(k) importation of goods intended for the personal use of heads of State;(l) importation of goods for the benefit of disaster victims;(m) importation of goods related to services supplied by undertakers;(n) importation of goods required for the carrying out of transport operations;(o) importation of documentation;13. goods which are destroyed or abandoned to the Exchequer according to the procedure established by customs legislation, as well as of goods provided free of charge, which are abandoned and confiscated, with the exception of motor vehicles;14. goods placed under customs control, which are destroyed or irreversibly lost by reason related to the nature of the goods or through force majeure;15. goods in an unaltered state, which have been exported and are reimported in an unaltered state, within the time limits provided for in customs legislation;16. goods which have been temporarily exported for repair or putting in order, if the conditions provided for in customs legislation are fulfilled;17. goods which have been exported and returned within one year on a claim;18. motor vehicles subject to misappropriation or theft and for which the import duties due have been repaid or remitted according to the procedure established by customs legislation.(2) Where the importer of the goods covered under Item 6 of Paragraph (1) fails to obtain the documents referred to in Article 53 (2) herein prior to the lapse of the month succeeding the month of occurrence of the chargeable event under Article 54 herein, the tax on the importation shall become chargeable by the importer.(3) The tax referred to in Paragraph (2) shall become chargeable on the last day of the calendar month succeeding the month of occurrence of the chargeable event under Article 54 herein.Provision of Security in Respect of Tax upon ImportationArticle 59. (1) Where provision of security in respect of customs duties is not required or is required according to customs legislation, security shall not be provided or shall be provided in respect of the tax in accordance with the amounts specified in customs legislation and according to the procedure established for provision of security in respect of customs duties.(2) Where an obligation to pay interest on customs duties under a customs debt arises according to customs legislation, an obligation to pay interest on the uncollected tax shall arise as well.(3) Any person, who has been granted authorization to open and manage a customs warehouse (warehousekeeper) according to the procedure established by customs legislation, shall be solidarily liable with the depositor of the goods in the warehouse for the tax due upon removal of the goods from customs supervision during the storage thereof in the warehouse.(4) Where exemption from tax is provided for according to the procedure established by Article 173 (1) herein upon importation of motor vehicles and the said vehicles remain under customs supervision, such exemption from tax shall furthermore apply if the motor vehicles, imported by any persons enjoying privileges according to the Vienna Convention on Diplomatic Relations, the Vienna Convention on Consular Relations, consular conventions or other international treaties whereto the Republic of Bulgaria is a party, were subject to misappropriation or theft within the period of customs supervision and this has been established by the competent authorities according to the procedure provided for this.Payment of Tax upon ImportationArticle 60. (1) The tax charged by the customs authorities shall be remitted to Executive Budget Revenue according to the procedure and within the time limits provided for payment of customs duties.(2) The tax charged by the customs authorities upon importation into the territory of the country may not be set off against other receivables by the revenue or customs authorities.(3) (New, SG No. 108/2007) In case of import under Article 16 under a regime "temporary importation with partial exemption from import duty" the tax charged by the customs authorities shall be remitted to Executive Budget Revenue before the release of the goods.Release of GoodsArticle 61. The customs authorities shall release the goods after payment of the tax charged or after provision of security in respect of the said tax according to the procedure established for the customs debt, save in the cases where the tax is charged by the importer.PART FOURTAXATION OF INTRA-COMMUNITY ACQUISITIONPlace of Supply of Intra-Community AcquisitionArticle 62. (1) The place of supply of an intra-Community acquisition shall be the territory of the country, where the goods arrive and the transport thereof ends within the territory of the country.(2) Notwithstanding Paragraph (1), the place of supply of the intra-Community acquisition shall be the territory of the country, where the person acquiring the goods is registered under this Act and made the acquisition of the said goods under an identification number issued in the country.(3) Paragraph (2) shall not apply where the person holds proof that an intra-Community acquisition of the goods has been subject to tax in the Member State where the goods have arrived or the transport thereof has ended.(4) If the intra-Community acquisition is subject to tax according to Paragraph (2) and the person subsequently establishes that this intra-Community acquisition has been subject to tax as well in the Member State where the goods arrive or where the transport thereof ends, the person shall adjust the result of the application of Paragraph (2).(5) Notwithstanding Paragraph (2), the place of supply of the intra-Community acquisition shall be the Member State where the goods arrive or where the transport thereof ends, where the following conditions are simultaneously fulfilled:1. the intermediary in a triangular operation acquires goods under the identification number thereof referred to in Article 94 (2) herein;2. the person referred to in Item 1 effects a subsequent supply of the goods to the acquirer in the triangular operation;3. the person referred to in Item 1 issues an invoice on the supply referred to in Item 2, satisfying the requirements of Article 114 herein, stating therein that the said person is an intermediary in a triangular operation and that the acquirer in the triangular operation is the person liable for the tax due on the supply;4. the person referred to in Item 1 declares the supply referred to in Item 2 in the VIES return for the relevant tax period.(6) The documents certifying the circumstances covered under Paragraphs (3), (4) and (5), and the procedure for effecting the adjustment under Paragraph (4), shall be specified by the Regulations for Application of this Act.Chargeable Event and Chargeability of Tax upon Intra-CommunityAcquisitionArticle 63. (1) The chargeable event upon an intra-Community acquisition shall occur on the date on which the chargeable event would have occurred upon a supply within the territory of the country.(2) The chargeable event upon an intra-Community acquisition referred to in Article 13 (3) herein shall occur on the date on which the transport of the goods ends within the territory of the country.(3) The tax upon an intra-Community acquisition shall become chargeable on the 15th day of the month following the month during which the chargeable event occurs.(4) Notwithstanding Paragraph (3), the tax shall become chargeable on the date of issue of the invoice, where the said invoice is issued before the 15th day of the month following the month during which the chargeable event occurs.(5) Paragraph (4) shall not apply, where the invoice is issued in connection with payment effected before the date of occurrence of the chargeable event.Taxable Amount for Intra-Community AcquisitionArticle 64. (1) The taxable amount for an intra-Community acquisition shall be determined according to the procedure established by Article 26 herein.(2) The taxable amount for an intra-Community acquisition referred to in Article 13 (3) herein shall be equal to the taxable amount formed for the purposes of the intra-Community acquisition in the Member State from which the goods were dispatched or transported.(3) The taxable amount for an intra-Community acquisition of excisable goods shall also include the excise duty due or paid on the goods in the Member State from which the goods were dispatched or transported. If after acquisition the excise duty is refundable to the recipient, the taxable amount shall be debited according to a procedure established by the Regulations for Application of this Act.(4) The taxable amount referred to in Paragraphs (1), (2) and (3) shall not include the taxable amount of the services covered under Articles 22, 23 and 24 herein whereof the place of transaction is within the territory of the country, in respect of which the person registered under this Act is obliged to charge the tax as a person covered under Article 82 (2) herein.Exempt Intra-Community AcquisitionsArticle 65. (1) Exemption from tax shall be granted in respect of any intra-Community acquisitions of goods whereof the place of transaction is within the territory of the country, whose supply within the territory of the country is among those specified in Chapter Four herein.(2) Exemption from tax shall be granted in respect of any intra-Community acquisitions, whereof the place of transaction is within the territory of the country, of goods:1. where any persons covered under Article 172 (2) and Article 174 (1) herein are recipients;2. the importation of which into the territory of the country would be exempted from tax according to the procedure established by Article 58 (1) herein;3. where any institutions of the European Union are recipients;4. from an intermediary in a triangular operation, who is a person registered for VAT purposes in another Member State.PART FIVERATES OF TAX AND ASSESSMENT OF TAX LIABILITYChapter SixRATES OF TAXRate of TaxArticle 66. (1) The rate of tax shall be 20 per cent applicable to:1. the taxable supplies, except for those expressly specified as subject to the zero rate;2. the importation of goods into the territory of the country;3. the taxable intra-Community acquisitions.(2) The rate of tax applicable to accommodation provided by a hotelier, where part of a package tour, shall be 7 per cent.Amount of TaxArticle 67. (1) The amount of tax shall be determined by multiplying the taxable amount by the rate of tax.(2) Where upon contracting a supply the tax was not expressly stated as due separately, the said tax shall be presumed to be included in the agreed price.(3) The tax shall furthermore be presumed to be included in the named price where goods subject to a supply are offered in the retail network.Chapter SevenCREDIT FOR INPUT TAXCredit for Input Tax and Right to Deduct Credit for Input TaxArticle 68. (1) "Credit for input tax" shall be the amount of tax which a registered person has the right to deduct from the tax liabilities thereof under this Act in respect of:1. goods or services received thereby in a taxable supply;2. a payment effected thereby prior to the occurrence of the chargeable event for a taxable supply;3. importation effected thereby;4. the tax chargeable therefrom as a payer under Chapter Eight herein.(2) The credit for input tax shall become deductible where the tax subject to deduction becomes chargeable.(3) In the cases of legal succession under Article 10 herein, the credit for input tax shall become deductible:1. on the date of recording of the circumstance referred to in Article 10 herein in the Commercial Register: where the legal successor is a person registered under this Act;2. on the date of registration under Article 132 (3) herein.(4) In the cases referred to in Article 116 (2) herein, credit for input tax shall become deductible on the date of issue of the new tax document.(5) In the cases referred to in Article 131 herein, credit for input tax shall become deductible on the date of issue of the document referred to in Item 2 of Article 131 (1) herein.Supplies Conferring Right to Deduct Credit for Input TaxArticle 69. (1) Where the goods and services are used for the purposes of the taxable supplies effected by the registered person, the person shall have the right to deduct credit for:1. the tax in respect of goods or services which the supplier, who is a person registered under this Act, has supplied or is to supply to the said person;2. the tax charged upon importation of goods under Articles 56 and 57 herein;3. the tax chargeable therefrom as a payer under Chapter Eight herein.(2) For the purposes of Paragraph (1), the following shall furthermore be considered taxable supplies:1. the supplies within the framework of the economic activity of the registered person, whereof the place of transaction is outside the territory of the country but which would have been taxable if effected within the territory of the country;2. the supplies of financial services under Article 46 herein and of insurance services under Article 47 herein, where the recipient of the services is established outside the Community or where the supplies of such services are directly linked with goods for which the conditions of Article 28 herein are fulfilled.Block on the Right to Deduct Credit for Input TaxArticle 70. (1) The right to deduct credit for input tax shall not be exercisable even though the conditions under Articles 69 or 74 herein are fulfilled, where:1. the goods or services are intended for effecting of any exempt supplies under Chapter Four herein;2. the goods or services are intended for supplies effected free of charge or for activities other than the economic activity of the person;3. the goods or services are intended for business entertainment purposes;4. a motorcycle or a passenger car has been acquired, imported or rented;5. the goods or services are linked with the maintenance, repair, improvement or operation of the means of transport referred to in Item 4, as well as for transport services or taxi transport by any means of transport referred to in Item 4;6. the goods have been confiscated, or the building has been demolished as unlawfully constructed.(2) Items 4 and 5 of Paragraph (1) shall not apply where:1. the means of transport referred to in Item 4 of Paragraph (1) are used solely for transport and security services, taxi transport, rental, courier services or motor vehicle driving instruction, including upon their subsequent resale;2. the means of transport referred to in Item 4 of Paragraph (1) are intended solely for resale (merchandise in stock);3. the goods or services are intended solely for re-sale (merchandise in stock), including after processing;4. the goods or services are linked to the maintenance, repair, improvement or operation of the means of transport referred to in Item 1.(3) Item 2 of Paragraph (1) shall not apply to:1. the special-purpose, working, uniform or presentable clothing provided, free of charge, by an employer to the factory and office workers thereof, including such under management contracts, for the purposes of the economic activity of the said employer;2. the provision, free of charge, of transport services from the place of residence to the place of work and back, by an employer to the factory and office workers thereof, including such under management contracts, for the purposes of the economic activity of the said employer;3. the goods or services used in the performance, free of charge, of services by a tenant/user for repair of an asset hired out or allocated for use in the cases where the said asset was hired out or allocated for use to the tenant/user on a continuing basis for a period of not less than three years;4. the goods or services used in the performance, free of charge, of services by a concessionaire for improvement of an asset allocated for use, where this is a condition and/or obligation under the contract of concession;5. the provision, free of charge, of goods or services of negligible value for advertising purposes and upon distribution of samples;6. the food and/or food additives which are provided according to the procedure established by Article 285 of the Labour Code; 7. the transport and overnight stays of persons seconded by the person;8. the goods or services used in connection with the performance of warranty services under Article 129 herein.(4) Any person registered in pursuance of Article 99 and Article 100 (2) herein shall have no right to credit for input tax.(5) The right to credit for input tax shall not be exercisable in respect of any mischarged tax.Conditions for Exercise of Right to Deduct Credit for Input TaxArticle 71. The person shall exercise the right thereof to deduct credit for input tax where one of the following conditions is fulfilled:1. the said person holds a tax document drawn up in accordance with the requirements of Articles 114 and 115 herein, wherein the tax is indicated on a separate line: in respect of supplies of goods or services for which the person is a recipient;2. (amended, SG No. 108/2006) has issued a protocol under Article 117 and Article 163b, paragraph 2 and has complied with the requirements of Article 86 - in the cases, when tax is executable by the person as a payer under chapter eight; in the cases under Article 161 or 163a, when the supplier is a tax liable person, the recipient must possess a tax document, drawn up in compliance with the requirements of Articles 114 and 115, where the respective grounds for not calculating tax is specified;3. the said person holds a customs declaration wherein the person is specified as importer and the tax has been remitted according to the procedure established by Article 90 (1) herein: in the cases of importation under Article 16 herein;4. the said person holds a customs declaration wherein the person is specified as importer, has issued a memorandum under Article 117 herein, and has complied with the requirements of Article 86 herein: in the cases under Article 57 herein;5. the said person holds a document which satisfies the requirements of Article 114 herein, has issued a memorandum under Article 117 herein, and has complies with the requirements of Article 86 herein: in the cases of an intra-Community acquisition;6. the said person holds a document referred to in Item 2 of Article 131 (1) herein;7. the said person holds the documents specified in the Regulations for Application of this Act: in the cases of legal succession under Article 10 herein.Period of Exercisability of Right to Deduct Credit for Input TaxArticle 72. (1) A person registered under this Act may exercise the right thereof to deduct credit for input tax for the tax period during which the said credit becomes deductible or during one of the three succeeding tax periods.(2) The right referred to in Paragraph (1) shall be exercised by the person by means of:1. including the amount of the credit for input tax upon assessment of the net tax for the tax period under Paragraph (1) in the VAT return under Article 125 for the same tax period;2. indicating the document under Article 71 herein in the purchase day book under Article 124 herein for the tax period referred to in Item 1.Right to Deduct Partial Credit for Input TaxArticle 73. (1) A registered person shall have the right to deduct a partial credit for input tax in respect of the tax on goods or services which are used for effecting of both supplies in respect of which credit for input tax is deductible and of supplies or activities in respect of which such a credit is not deductible.(2) The amount of the partial credit for input tax shall be determined by multiplying the amount of the credit for input tax by a factor rounded up to the second decimal place, made up of a fraction having, as numerator, the turnover attributable to the supplies in respect of which credit for input tax is deductible and, as denominator, the turnover attributable to all supplies and activities effected by the person.(3) The turnover attributable to supplies in respect of which credit for input tax is deductible shall include:1. the taxable amounts of the taxable supplies effected by the person;2. the taxable amounts of the payments received by the person in respect of which the tax became chargeable before occurrence of the chargeable event for a taxable supply;3. the taxable amounts of the supplies effected by the person whereof the place of transaction is outside the territory of the country, treated as equivalent to taxable supplies according to Article 69 (2) herein, with the exception of the supplies whereof the place of supply is outside the territory of the country, effected from a fixed establishment of the person outside the territory of the country;4. the taxable amounts of the payments received by the person before effecting of the supplies referred to in Item 3;5. (amended, SG No. 108/2006) the tax base of the deliveries of goods or services, for which the right of deducting tax credit under Article 70, paragraph 1, sub-paragraphs 3 - 5, has not been exercised.(4) The turnover attributable to all supplies and activities of the person shall include:1. the turnover referred to in Paragraph (3);2. the taxable amounts of the supplies effected by the person whereof the place of transaction is outside the territory of the country, which are not treated as equivalent to taxable supplies within the meaning given by Article 69 (2) herein, with the exception of any supplies effected from a fixed establishment by the person outside the territory of the country;3. the taxable amounts of the exempt supplies effected, with the exception of any supplies referred to in Item 2 of Article 50 herein;4. the value of the supplies and the activities outside the framework of the economic activity of the person;5. the taxable amounts of the payments received by the person before effecting the supplies and the activities referred to in Items 2, 3 and 4 herein;6. the amount of the subsidies received other than those included in the taxable amount.(5) The factor shall be calculated on the basis of the turnovers referred to in Paragraphs (3) and (4) for the entire preceding calendar year and, where there are no such turnovers for the preceding calendar year, on the basis of the turnovers referred to in Paragraphs (3) and (4) for the tax period during which credit for input tax becomes deductible.(6) The right to partial credit for input tax under Paragraph (2) shall be recalculated during the last tax period of the current calendar year on the basis of the parameters covered under Paragraphs (3) and (4) for the current calendar year.(7) In the cases of deregistration, the amount of the partial credit for input tax under Paragraph (2) shall be recalculated at the end of the last tax period on the basis of the parameters under Paragraphs (3) and (4) in respect of the part of the current calendar year during which the person was not registered.(8) The difference resulting from the recalculation under Paragraphs (6) and (7) shall be included as an adjustment (upwards or downwards) in the amount of the credit for input tax in the VAT return for the last tax period.Right to Deduct Credit for Input Tax for Assets Available and ServicesReceived before Registration DateArticle 74. (1) Any person registered under Articles 96, 97, 98, Article 100 (1) and (3), Articles 102 or 132 herein shall have the right to deduct credit for input tax in respect of any assets, within the meaning given by the Accountancy Act , which were purchased or otherwise acquired or imported prior to the date of registration of the said person under this Act, which are available at the date of registration.(2) The credit referred to in Paragraph (1) shall become deductible solely in respect of assets available at the date of registration, in respect of which the following conditions are simultaneously fulfilled:1. the requirements of Articles 69 and 71 herein are satisfied;2. the supplier was a person registered under this Act at the date of issue of the tax document and the supply was taxable at that date;3. the registration inventory in standard form of the available assets was drawn up at the date of registration under this Act and was submitted within seven days after the date of registration;4. the assets were acquired by the person within five years and, applicable to immovable property, within 20 years before the date of registration under this Act.(3) Any registered person referred to in Paragraph (1) shall furthermore have the right to deduct credit for input tax in respect of any services received before the date of registration of the said person under this Act, where the following conditions are simultaneously fulfilled:1. the services are directly linked with the registration of the person according to the procedure established by the Commerce Act;2. the services were received not earlier than one month before registration of the person under the Commerce Act;3. the person has submitted an application for registration under this Act within 30 days after recording of the person in the register referred to in Article 82 of the Tax and Social-Insurance Procedure Code ;4. the person holds an invoice under Item 1 of Article 71 herein in respect of the services received;5. the supplier of the services was a person registered under this Act at the date of issue of the tax document and the supply was taxable at the said date;6. the registration inventory in standard form of the services received was drawn up at the date of registration under this Act and was submitted within seven days after the date of registration.Accrual and Exercise of Right to Deduct Credit for Input Tax in Respectof Available Assets and Services Received before RegistrationArticle 75. (1) Credit for input tax under Article 74 herein shall become deductible on the date of registration under this Act.(2) The right referred to in Paragraph (1) shall be exercised during the tax period during which the said right accrued or in one of the three succeeding tax periods, with the available assets, the services received and the tax included in the registration inventory under Article 74 herein being recorded in the purchase day book for the relevant tax period.(3) The right to deduct credit for input tax under Article 74 herein shall not accrue and may not be exercised by the registered person if the registration inventory was submitted later than seven clear days after the date of registration under this Act.Right to Deduct Credit for Input Tax upon Re-registrationArticle 76. (1) Any registered person shall have the right to deduct the tax charged upon deregistration of the said person under this Act in respect of the taxed assets under Item 1 of Article 111 (1) herein, which are available at the date of the subsequent registration of the said person.(2) The right referred to in Paragraph (1) shall accrue where the following conditions are simultaneously fulfilled:1. the assets, within the meaning given by the Accountancy Act, available at the date of the subsequent registration under this Act, were taxed upon the deregistration according to the procedure established by Item 1 of Article 111 (1) herein;2. the tax charged upon the deregistration was remitted effectively or was set off by the revenue authority;3. the available assets referred to in Item 1 were, are, or will be used by the person for effecting of taxable supplies within the meaning given by Article 69 herein;4. the registration inventory in standard form of the assets referred to in Item 1 was drawn up at the date of re-registration and was submitted within seven clear days after the date of registration;5. the assets referred to in Item 1 were acquired by the person within five years and, in respect of immovable property, within 20 years before the date of re-registration under this Act.Accrual and Exercise of Right to Deduct Charged Tax in Connection withDeregistration under this Act and Subsequent Registration of PersonArticle 77. (1) Credit for input tax under Article 76 herein shall become deductible on the date of re-registration under this Act.(2) The right to deduction under Paragraph (1) shall be exercised during the tax period during which the said right accrued or during one of the three succeeding tax periods, with the available assets and the tax included in the registration inventory under Article 74 herein being recorded in the purchase day book for the relevant tax period.(3) The right to deduct credit for input tax under Article 76 herein shall not accrue and may not be exercised by the registered person if the registration inventory was submitted later than seven clear days after the date of registration under this Act.Adjustments of Credit for Input Tax Used upon Change of Taxable Amountand upon Change of Type of SupplyArticle 78. (1) Any registered person shall be obliged to adjust the amount of the credit for input tax used upon any change of the taxable amount of the supply or upon rescission of the supply, as well as upon any change of the type of the supply.(2) The adjustment shall be effected during the tax period during which the circumstances referred in Paragraph (1) occurred, by means of recording the document referred to in Article 115 or the new document referred to in Article 116 herein, whereby the adjustment was effected, in the purchase day book and in the VAT return for the relevant tax period.Adjustment of Credit for Input Tax Used in Other CasesArticle 79. (1) Any registered person, who has wholly or partly deducted credit for input tax in respect of any goods or services produced, purchased, acquired or imported thereby and subsequently uses the said goods or services for effecting any exempt supplies or for any supplies or activities in respect of which credit for input tax is not deductible, shall be liable for tax to the amount of the credit for input tax used.(2) Any registered person, who has wholly deducted credit for input tax in respect of any goods or services produced, purchased, acquired or imported thereby and subsequently uses the said goods or services for effecting of supplies in respect of which credit for input tax is deductible as well as for supplies or activities in respect of which such a credit is not deductible, and where the person cannot determine what portion of the goods or services is used for supplies conferring the right to credit for input tax and such that do not confer the right to credit for input tax, shall be liable for tax according to the procedure established by Paragraph (7).(3) (Supplemented, SG No. 113/2007) Any registered person, who has wholly or partly deducted credit for input tax in respect of any goods or services produced, purchased, acquired or imported thereby shall charge and be liable for tax to the amount of the credit for input tax deducted upon destruction, ascertainment of shrinkages or upon discarding of goods, as well as upon change of the intended use of the said goods in respect of which credit for input tax is no longer deductible.(4) The adjustment under Paragraphs (1) and (3) shall be effected in the tax period during which the relevant circumstances have occurred, by means of drawing up a memorandum on the adjustment as effected and recording the said memorandum in the purchase day book and in the VAT return for the said tax period.(5) The adjustment referred to in Paragraph (2) shall be effected during the last tax period of the year during which the circumstances referred to in Paragraph (2) occur.(6) Notwithstanding Paragraphs (1) and (3), in respect of any goods and services which are fixed assets within the meaning given by the Corporate Income Tax Act, the person shall be liable for tax to an amount determined according to the following formula:1. in respect of immovable things: where:TD shall be the tax due;CITU shall be the amount of credit for input tax used;NoY shall be the clear number of years between the occurrence of the circumstances under Paragraphs (1) or (3), including the year of occurrence of the circumstances, and the lapse of the 20-year period, reckoned from the year of exercise of the right to credit for input tax inclusive;2. in respect of all other goods or services: where:TD shall be the tax due;CITU shall be the amount of credit for input tax used;NoY shall be the clear number of years between the occurrence of the circumstances under Paragraphs (1) or (3), including the year of occurrence of the circumstances, and the lapse of the five-year period, reckoned from the year of exercise of the right to credit for input tax inclusive;(7) In the cases under Paragraph (2), the person shall be liable to tax determined according to the following formula:1. in respect of immovable things: where:TD shall be the tax due;CITU shall be the amount of credit for input tax used;NoY shall be the clear number of years between the occurrence of the circumstances under Paragraph (2), including the year of occurrence of the circumstances, and the lapse of the 20-year period, reckoned from the year of exercise of the right to credit for input tax inclusive;F shall be the factor referred to in Article 73 herein, calculated on the basis of the turnover for the year during which the circumstances under Paragraph (2) occurred;2. in respect of all other goods or services: where:TD shall be the tax due;CITU shall be the amount of credit for input tax used;NoY shall be the clear number of years between the occurrence of the circumstances under Paragraph (2), including the year of occurrence of the circumstances, and the lapse of the five-year period, reckoned from the year of exercise of the right to credit for input tax inclusive;F shall be the factor referred to in Article 73 herein, calculated on the basis of the turnover for the year during which the circumstances under Paragraph (2) occurred.(8) Any registered person, who has partly deducted credit for input tax in respect of any goods or services produced, purchased, acquired or imported thereby and subsequently uses the said goods or services solely for effecting of taxable supplies under Article 69 herein, shall have the right to adjust (upwards) the amount of the partial credit for input tax upwards according to a procedure and to an amount established in the Regulations for Application of this Act.(9) Adjustments under Paragraphs (1) to (8) shall be effected on a single occasion.(10) (New, SG No. 108/2006) A registered person that has entirely or partially deducted tax credit for goods produced, purchased, acquired or imported by it and has later made an intercommunity delivery with these goods shall pay tax to the amount of the tax credit used.(11) (New, SG No. 108/2006) The adjustment under paragraph 10 shall be made during the tax period, in which the tax for the intercommunity delivery against no consideration has become executable, by drawing up a protocol and its registration in the sales journal for that tax period.Block on AdjustmentsArticle 80. (1) (Supplemented, SG No. 108/2007) Adjustments under Article 79, (1) - (7) herein shall not be effected:1. if the goods or services are used for supplies under Article 70 (3) herein, as well as in the cases under Article 10 herein;2. if the tax treatment of the supplies for which the registered person uses the goods or services is modified by law;3. for any goods or services if five years or, applicable to immovable property, -20 years, have elapsed since the commencement of the year during which the right to credit for input tax was exercised.(2) Adjustments under Article 79 (3) herein shall not be effected in the cases of:1. (supplemented, SG No. 108/2006) destruction, shrinkage or discarding caused by force majeure as well as in the cases of destroying excise goods under administrative control in accordance with the procedures of the Excise Duties and Tax Warehouses Act; 2. destruction, shrinkage or discarding caused by accidents or disasters which the person cannot prove that were not caused through the fault of the said person;3. shrinkages arising from alteration of physical and chemical properties within reasonable limits, conforming to the maximum permissible allowances for natural wastage and shrinkages of goods in the storage and transportation thereof according to the established standards, specifications and other statutory instruments;4. spoilage within permissible limits, established by the technological documentation as applicable to the production or activity concerned;5. discarding due to expiry of the service life or shelf life, determined according to the requirements of a statutory instrument;6. write-off of tangible fixed assets, within the meaning given by the Accountancy Act , where the balance-sheet value of the said assets is less than 10 per cent of the book value thereof.(3) (New, SG No. 108/2006) In the cases of adjustments under Article 79, paragraph 10 the person shall pay the full amount of the tax credit used regardless of the deadline under paragraph 1, sub-paragraph 3.Refund of Tax to Persons Not Established within Territory of CountryArticle 81. (1) The tax paid shall be refunded to:1. any taxable persons who are not established within the territory of the country but who are established and registered for VAT purposes within another Member State in respect of any goods purchased and services received thereby within the territory of the country;2. any persons who are not established within the territory of the Community but who are registered for VAT purposes in another State: on a basis of reciprocity;3. any non-taxable natural persons, who are not established within the territory of the Community, who have effected purchases of goods for private use inclusive of tax charged, after leaving the territory of the country, subject to the condition that the said goods are exported in an unaltered state.(2) The procedure and the documents required for refund of the tax under Paragraph (1) shall be determined by an ordinance of the Minister of Finance.Chapter EightCHARGING AND REMITTANCE OF TAXTaxpayer upon Effecting of Taxable SuppliesArticle 82. (1) (Amended, SG No. 108/2006) The tax shall be chargeable from a person registered under this Act who is a supplier of a taxable supply, with the exception of the cases covered under Paragraphs (4) and (5).(2) (Amended, SG No. 108/2006) Where the supplier is not a person registered under the Act and is not established within the territory of the country, the tax shall be chargeable from the recipient of the supply upon:1. supply of natural gas through the natural gas distribution system or of electricity: where the recipient is a person registered under this Act;2. supply of any services specified in Article 21 (3) herein: where the recipient is a taxable person;3. supply of any services referred to in Articles 22, 23 and 24 herein: where the recipient is a person registered under this Act and the supplier is established within the territory of another Member State;4. supply of any goods which are assembled or installed by or for the account of the supplier: where the recipient is a person registered under this Act and the supplier is established within the territory of another Member State.(3) The tax shall be chargeable from the acquirer in a triangular operation effected under the conditions of Article 15 herein.(4) The tax shall be chargeable from the recipient who is a person registered under this Act in the cases covered under Article 161 herein.(5) (New, SG No. 108/2006) The tax is executable by the recipient - the person registered under the present Act, in the cases of Article 163a regardless of whether the supplier is a tax liable person or not.Taxpayer upon ImportationArticle 83. (1) The tax upon importation under Article 16 herein shall be chargeable from the importer.(2) Where two and/or more persons are solidarily liable for payment of customs duties according to customs legislation, the said persons shall be solidarily liable for payment of the tax due as well.Taxpayer upon Intra-Community AcquisitionsArticle 84. The tax upon intra-Community acquisitions shall be chargeable from the person who effects the acquisition.Taxpayer under Invoices IssuedArticle 85. The tax shall furthermore be chargeable from any person who indicates the tax in a tax document under Article 112 herein.Registered Person's Obligation to Charge TaxArticle 86. (1) Any registered person, in respect of whom the tax has become chargeable, shall be obliged to charge the said tax and, to this end, must:1. issue a tax document and indicate the tax on a separate line therein;2. include the amount of the tax upon assessment of the net tax for the relevant tax period in the VAT return under Article 125 herein for the said tax period;3. indicate the document referred to in Item 1 in the purchase day book for the relevant tax period.(2) The registered person shall be liable for the tax in respect of the tax period during which the tax document was issued, and in the cases where no such document was issued or was issued beyond the time limit under this Act, in respect of the tax period during which the tax became chargeable.(3) No tax shall be charged in the cases of effecting an exempt supply, an exempt intra-Community acquisition, as well as in respect of any supply whereof the place of transaction is outside the territory of the country.(4) Items 1 and 2 of Paragraph (1) and Paragraph (2) shall not apply in the cases under Article 131 (1) herein.Tax PeriodArticle 87. (1) "Tax period," within the meaning given by this Act, shall be the period of time upon the lapse of which a registered person must submit a VAT return showing the net tax for the same tax period.(2) The tax period shall be fixed as one month in respect of all registered persons and shall be concurrent with the calendar month, except in the cases under Chapter Eighteen herein.(3) The first tax period after the date of registration shall comprise the clear time between the date of registration and the last day of the calendar month during which the registration under this Act was effected.(4) The last tax period shall comprise the clear time between the commencement of the tax period and the date of deregistration.Net Tax for Tax PeriodArticle 88. (1) The net tax for the tax period shall be the difference between the total amount of the tax chargeable from the person in respect of the said tax period and the total amount of the credit for input tax in respect of which the right to deduction has been exercised during the said tax period.(2) Where the tax charged exceeds the credit for input tax, the difference shall constitute a net tax for the period: output tax payable.(3) Where the credit for input tax exceeds the tax charged, the difference shall constitute a net tax for the period: input tax claimable.(4) The registered person shall self-assess the net tax for each tax period: output tax payable to Executive Budget Revenue or input tax claimable from Executive Budget Expenditures.Remittance of Tax by Registered PersonsArticle 89. (1) Where there is an output tax payable, the registered person shall be obligated to remit the tax to Executive Budget revenue by crediting an account of the competent National Revenue Agency territorial directorate within the time limit for submission of the VAT return for that tax period.(2) The tax shall be deemed remitted on the date on which the amount was credited to the relevant account referred to in Paragraph (1).Remittance of Tax upon Importation of GoodsArticle 90. (1) In the cases covered under Article 16 herein, the importer of goods shall remit the tax as effectively charged by the customs authorities to Executive Budget revenue as follows:1. by crediting an account of the relevant customs office releasing for free circulation the goods liable to import duties;2. by crediting an account or in cash at the cash department of the relevant customs office releasing for free circulation the goods liable to import duties, where the importer is a natural person not registered under this Act who is not a sole trader.(2) The tax referred to in Paragraph (1) may not be set off against other liabilities by the revenue authorities or the customs authorities.(3) In the cases under Paragraph (1), the customs authorities shall release the goods upon payment of the tax charged or after provision of security in respect of the said tax according to the procedure established for the customs debt.(4) (Repealed, SG No. 113/2007). Remittance of Tax by Person Who Is Not RegisteredArticle 91. (1) Upon an intra-Community acquisition of a new means of transport under Article 13 (2) herein by a person who is not registered under this Act, the tax shall be remitted by the said person within 14 days after the lapse of the tax period during which the tax on the acquisition became chargeable.(2) Upon an intra-Community acquisition of excisable goods under Item 4 of Article 2 herein, the tax shall be remitted by the person who effected the acquisition within 14 days after the lapse of the month during which the tax became chargeable.(3) Upon receipt of services under Article 21 (3) herein, where the supplier is not established within the territory of the country and the recipient is a taxable person who is not registered under this Act, the tax shall be remitted by the recipient within 14 days after the lapse of the month during which the tax became chargeable.(4) The tax referred to in Paragraphs (1), (2) and (3) shall be remitted to Executive Budget revenue by crediting an account of the National Revenue Agency territorial directorate whereat the person is registered or is subject to registration under the Tax and Social-Insurance Procedure Code.(5) The tax referred to in Paragraph (4) shall be deemed remitted on the date on which the amount was credited to the relevant account referred to in Paragraph (4).Set-off, Deduction and Refund of Net Tax for Period: Input Tax ClaimableArticle 92. (1) The input tax claimable referred to in Article 88 (3) shall be set off, deducted or refunded as follows:1. where there are other chargeable and unpaid tax liabilities and liabilities for social-insurance contributions collected by the National Revenue Agency which have accrued prior to the date of submission of the VAT return, the revenue authority shall set off such liabilities against the input tax claimable as stated in the VAT return; the procedure established in Item 2 shall apply to the balance, if any;2. where there are no other chargeable and unpaid liabilities referred to in Item 1 or where the amount of such liabilities is less than the input tax claimable as stated in the VAT return, the registered person shall deduct the input tax claimable or the balance referred to in Item 1 from the due output tax payable as stated in the VAT returns to be submitted in the next succeeding three tax periods;3. if after the deduction under Item 2 there remains any output tax payable, it shall be due within the time period established under Article 89 herein;4. if after the lapse of the time limit referred to in Item 2 there is a balance of the input tax claimable, the revenue authority shall set off such balance for redemption of other chargeable and unpaid tax liabilities or liabilities for social-insurance contributions collected by the National Revenue Agency, or shall refund the said balance within 45 days after submission of the most recent VAT return;5. if the input tax claimable in respect of which a deduction procedure has commenced has not been fully deducted at the time of submission of a VAT return for the last of the three tax periods, any other input tax claimable under a VAT return for any of the said three tax periods shall be added to it and shall be subject to refund or set-off together with such balance and within the time limit referred to in Item 4;6. if the conditions under Item 5 are not fulfilled, another three succeeding tax periods for deduction following the period in which such tax was stated shall commence in respect of the input tax claimable as stated next under a VAT return.(2) The revenue authority shall have no right to set off other chargeable and unpaid tax liabilities and liabilities for social-insurance contributions collected by the National Revenue Agency against an input tax claimable as stated in the VAT returns for the three tax periods of the deduction procedure under Paragraph (1).(3) (Amended, SG No. 108/2007) Notwithstanding Paragraph (1), the input tax claimable under Article 88 (3) herein shall be refunded within 30 days after submission of the VAT return, where the person has effected supplies liable to tax at the zero rate during the 12 months last preceding the current month and supplies under Articles 22, 23 and Article 24 (3) with place of transaction within the territory of another Member State on which a recipient is a person registered for VAT purposes in another Member State to a total value exceeding 30 per cent of the total value of all taxable supplies and supplies under Articles 22, 23 and Article 24 (3) with place of transaction within the territory of another Member State on which a recipient is a person registered for VAT purposes in another Member State, for the same period.(4) Notwithstanding Paragraph (1), the input tax claimable under Article 88 (3) herein shall be refunded within 30 days after submission of the VAT return, where the person has been granted permission under Article 166 herein.(5) Where, in the cases under Paragraphs (3) and (4), there are chargeable and unpaid tax liabilities and liabilities for social-insurance contributions collected by the National Revenue Agency which have accrued prior to the date of submission of the VAT return, within the same time limits the revenue authority shall effect a set-off and refund of the balance, if any.(6) The revenue authority shall effect the set-off under Paragraphs (1) to (2) in the following sequence: value added tax, other taxes collected by the National Revenue Agency, compulsory social-insurance contributions to the public social insurance funds, contributions for supplementary compulsory social insurance contributions, contributions to the National Health Insurance Fund and to the Factory and Office Workers' Guaranteed Claims Fund.(7) The circumstances covered under Paragraphs (3) and (4) shall be certified in writing to the competent National Revenue Agency territorial directorate according to a procedure established by the Regulations for Application of this Act.(8) (New, SG No. 108/2007) Notwithstanding Item 4 of Paragraph 1 and Paragraphs 3 - 6, where an audit of the person has commenced, the time period for refund of the tax shall be the time period for issuance of the audit act except for the cases where the person provides security in cash, in government securities or in unconditional and irrevocable bank guarantee which shall be valid for not less than 4 months, and in the cases under Article 114 (3) of the Tax Social-Insurance Procedure Code, not less than 8 months.(9) (New, SG No. 108/2007) The tax shall be refunded and/or set off to the amount of the security under Paragraph (8) within three days after provision thereof.(10) (Renumbered from paragraph 8, amended SG No. 108/2007) Any input tax claimable, which has not been refunded without grounds or which has not been refunded by reason of lapsed grounds (including upon revocation of an act) within the time limits provided for in this Act, shall be refunded together with the legal interest for a delay, reckoned from the date on which the said tax should have been refunded under this Act and until the final payment thereof, regardless of the interruption and resumption of the time periods under the tax proceedings.Interruption and Resumption of Time Periods under Article 92Article 93. (1) The time periods for refund under Item 4 of Article 92 (1) and Article 92 (3) and (4) herein shall be interrupted:1. where no accounts have been kept according to the requirements of the Accountancy Act, and shall resume upon commencement of keeping of such accounts;2. in the absence or upon failure to present documents that are mandatory under this Act, or of any other documents requested by the revenue authority, if such documents must mandatorily be drawn up according to a statutory instrument, and shall resume upon presentation of the said documents to the revenue authority.3. upon a failure to grant access to an authorized revenue body to office, production or other premises related to the activity of the registered person, and shall resume upon granting such access;4. where the person cannot be found according to the procedure established by the Tax and Social-Insurance Procedure Code by the revenue authority at the mailing address named by the said person, and shall resume upon written notification on the part of the registered person to the revenue authority on the change of the address thereof in the country and the finding of the said person at the named addressed by a revenue authority;5. (repealed, SG No. 108/2007). (2) The time periods for refund under Item 4 of Article 92 (1) and Article 92 (3) and (4) herein shall be interrupted after consultation with the Executive Director of the National Revenue Agency for a period not exceeding 60 days where:1. a revenue authority ascertains data of a criminal offence against the tax system and refers the said data to the pre-trial proceeding authorities within one month after ascertainment of the said data;2. the interruption has been requested in writing by the authorities of the Ministry of Interior or by the judicial authorities upon institution of a pre-trial or judicial proceeding.(3) In the cases referred to in Paragraph (2), the time periods for refund shall resume upon receipt of a written refusal to institute a proceeding or, respectively, after notification of a completion of the proceeding as institutedPART SIXOBLIGATIONS OF PERSONSChapter NineREGISTRATIONGeneral DispositionsArticle 94. (1) The National Revenue Agency shall establish and maintain a special register under this Act, which shall be part of the register referred to in Article 80 (1) of the Tax and Social-Insurance Procedure Code. (2) Upon recording in the register, the persons shall be issued with an identification number for VAT purposes, having a prefix "BG".(3) Registration under this Act shall be compulsory and optional.Registration in Connection with Supplies Effected within Territory ofCountryArticle 95. (1) The registration requirement under this Act shall apply to each taxable person who is established within the territory of the country and who effects taxable supplies of goods or services covered under Article 12 herein.(2) The registration requirement under this Act shall furthermore apply to each taxable person who is not established within the territory of the country and who effects taxable supplies of goods or services covered under Article 12 herein other than those for which the tax is chargeable from the recipient.Compulsory RegistrationArticle 96. (1) Any taxable person having a taxable turnover of BGN 50,000 or more for a period not exceeding twelve consecutive months last preceding the current month shall be obligated to submit an application for registration under this Act within 14 days after the lapse of the tax period during which such turnover has accrued to the said person.(2) The taxable turnover shall be the sum of taxable amounts of the following supplies effected by such person:1. taxable supplies, including supplies liable to tax at the zero rate;2. supplies of financial services under Article 46 herein;3. supplies of insurance services under Article 47 herein.(3) (Amended, SG No. 108/2006) The taxable turnover shall not include any supplies referred to in Items 2 and 3 of Paragraph (2), where not related to the core activity of the person, any supplies of tangible or intangible fixed assets employed in the activity of the person, as well as any supplies for which tax is executable by the recipient under Article 82, paragraphs 2 and 3.(4) The taxable turnover shall furthermore include any advance payments received for supplies covered under Paragraph (2), with the exception of advance payments received prior to the occurrence of the chargeable event under Article 51 (1) herein.(5) The obligation to register shall arise notwithstanding the time period over which the taxable turnover has accrued, but not for a period exceeding the period defined in Paragraph (1).(6) Determination of the taxable turnover shall give consideration to the tax treatment of the supplies applicable at the date of occurrence of the chargeable event or at the date of the payment prior to the occurrence of the chargeable event for the supply.(7) Paragraph (1) shall not apply to any persons for whom the following conditions are simultaneously fulfilled:1. they supply services electronically to recipients who are non-taxable persons, who are established or have a permanent address or usually reside within the territory of the country;2. they are not established within the territory of the Community;3. they are registered for VAT purposes for their activity referred to in Item 1 in another Member State.(8) (Supplemented, SG No. 108/2007) Notwithstanding Paragraph (1), a person whose registration has been terminated or refused by the revenue administration in pursuance of Article 176 herein cannot be registered before the grounds for such registration refusal or the grounds for deregistration lapse, or before the lapse of 24 months from the beginning of the month following the month of deregistration or refusal of registration.Obligation to Register in Case of Supplies of Assembled and InstalledGoodsArticle 97. (1) Notwithstanding the taxable turnover under Article 96 herein, the registration requirement under this Act shall apply to each person who is established in another Member State, who is not established within the territory of the country and who effects taxable supplies of goods which are assembled or installed within the territory of the country by or for the account of the said person.(2) An obligation to submit an application for registration shall arise in respect of the persons referred to in Paragraph (1) not later than seven days prior to the date of occurrence of the chargeable event for the supply referred to in Paragraph (1).(3) Paragraph (1) shall not apply where the recipient of such supply is a person registered under this Act.Obligation to Register in Case of Distance Selling of GoodsArticle 98. (1) The registration requirement under this Act shall apply to each taxable person who effects a supply of goods whereof the place of transaction is within the territory of the country under Article 20 herein under the terms of distance selling referred to in Article 14 herein.(2) An obligation to submit an application for registration under this Act shall arise in respect of the persons referred to in Paragraph (1) not later than seven days prior to the date of occurrence of the chargeable event for the supply by which the total value of distance selling during the current year exceeds the amount referred to in Item 2 of Article 20 (2). The supply referred to in sentence one shall be liable to tax under this Act.(3) Where the place of transaction of the supply referred to in Article 20 (4) herein is within the territory of the country, the persons referred to in Paragraph (1) shall submit an application for registration not later than seven days prior to the occurrence of the chargeable event for the supply or prior to the receipt of the advance payment.Obligation to Register in Case of Intra-Community AcquisitionArticle 99. (1) The registration requirement under this Act shall apply to each non-taxable legal person and taxable person which is not registered in pursuance of Articles 96, 97, 98, Article 100 (1) and (3), and Article 102 herein, and which effects intra-Community acquisition of goods.(2) Paragraph (1) shall not apply where the total value of taxable intra-Community acquisitions for the current calendar year does not exceed BGN 20,000.(3) An obligation to submit an application for registration under this Act shall arise in respect of the persons referred to in Paragraph (2) not later than seven days prior to the date of occurrence of the chargeable event for the acquisition by which the total value of taxable intra-Community acquisitions exceeds BGN 20,000 The intra-Community acquisition by which the said threshold is exceeded shall be liable to tax under this Act.(4) The value referred to in Paragraph (2) shall be the sum total of taxable intra-Community acquisitions, with the exception of the acquisition of new means of transport and of excisable goods, net of the value added tax payable or paid in the Member State from which the goods were transported or dispatched.(5) Paragraph (1) shall not apply in respect of:1. any persons referred to in Article 168 herein, who acquire new means of transport;2. any persons referred to in Item 4 of Article 2 herein.(6) Any person, who is registered in pursuance of this Article and for whom grounds for compulsory registration under Articles 96, 97 and 98 herein or for optional registration under Article 100 (1) and (3) herein arise, shall register according to the procedure and within the time limits applicable to compulsory registration or optional registration.Optional RegistrationArticle 100. (1) Any taxable person, whereto the conditions for compulsory registration covered under Article 96 (1) herein do not apply, shall have the right to register under this Act.(2) Any taxable and non-taxable legal person, whereto the conditions for compulsory registration under Article 99 (1) herein do not apply, shall have the right to register under this Act for intra-Community acquisition.(3) Any taxable person may register under this Act, notwithstanding the amount referred to in Item 2 of Article 20 (2) herein, where the said person has notified the tax administration of the Member State where the said person is registered for VAT purposes that the said person wishes the distance selling effected thereby to have a place of transaction within the territory of the country.(4) (Supplemented, SG No. 108/2007) Notwithstanding Paragraphs (1) and (3), a person whose registration under this Act has been terminated or refused by the revenue administration in pursuance of Article 176 herein cannot be registered before the grounds for refusal of registration or the grounds for deregistration lapse, or before the lapse of 24 months after the beginning of the month following the month of deregistration or refusal of registration.Registration ProcedureArticle 101. (1) For the effecting of registration, the person who is obligated or has the right to register shall submit an application for registration, completed in a standard form, to the competent National Revenue Agency territorial directorate.(2) Any such application shall be submitted:1. in person, where the taxable person is a natural person capable of performing juridical acts or a sole trader;2. by a person vested with representative authority by law, where the taxable person is a legal person or a cooperative;3. by a person vested with representative authority according to a contract of incorporation, where the taxable person is an unincorporated association or a social insurance fund;4. by an accredited representative referred to in Article 135 herein;5. by a person who has been expressly authorized for this act by the persons referred to in Items 1, 2, 3 and 4 by means of a notarized power of attorney.(3) The application may be submitted electronically according to the procedure established by the Tax and Social-Insurance Procedure Code. (4) Any application referred to in Paragraph (1) must state the grounds for registration. Documents specified in the Regulations for Application of this Act shall be attached to any such application.(5) (Supplemented, SG No. 108/2007) Within seven days after receipt of the application, the revenue authority shall verify the grounds for registration. Where the revenue authority has required the security under Article 176a, the time period for performing the verification shall be 30 days from submitting the application for registration.(6) Within seven days after completion of the verification, the revenue authority shall issue an act whereby it shall effect the registration or shall refuse to effect the registration, stating the reasons for such refusal.(7) Notwithstanding Paragraphs (5) and (6), the registration under Articles 97, 98 and 99 herein shall be effected by the revenue authority within three days after submission of the application for registration.Registration Initiated by Revenue AuthorityArticle 102. (1) Where a revenue authority ascertains that a person has failed to fulfil in due time the obligation thereof to submit an application for registration, the said authority shall register the said person by issuing a registration act, if the conditions for registration are fulfilled.(2) The act referred to in Paragraph (1) shall state the grounds and the date on which the obligation to register has arisen.(3) For the purposes of determining the tax liabilities of the person in the cases where the said person was obligated but has failed to submit an application for registration in due time, the person shall be presumed to be liable for tax on the taxable supplies and taxable intra-Community acquisitions effected thereby:1. for the period from the expiry of the time limit for submission of an application for registration until the date on which the person was registered by the revenue authority;2. for the period from the expiry of the time limit for submission of an application for registration until the date on which the grounds for registration have lapsed.(4) The liabilities referred to in Paragraph (3) shall be determined by an audit act according to the procedure established by the Tax and Social-Insurance Procedure Code. Date of RegistrationArticle 103. (1) The date of delivery of the registration act shall be deemed a date of registration under this Act.(2) As at the date of registration, the person shall draw up a registration inventory in a standard form of the assets, within the meaning given by the Accountancy Act, and of the services for which the person has the right to deduct credit for input tax under Articles 74 or 76 herein, and shall submit the said inventory not late than seven days after the date of registration.Documents Certifying RegistrationArticle 104. (1) A registration certificate, protected by plastic foil, drawn up in a standard form specified by the Regulations for Application of this Act, shall be delivered to the registered person simultaneously with the delivery of the registration act.(2) Upon written request by the registered person, the revenue authority shall issue more than one certificate.(3) Upon written request by the registered person, the director of the competent National Revenue Agency territorial directorate shall issue, within seven days, a separate certificate for the purposes of evidencing the registration under this Act abroad in a standard form specified in the Regulations for Application of this Act.Loss, Damage or Destruction of CertificateArticle 105. (1) In the event of a loss, damage or destruction of the certificate, the registered person shall be obligated to notify in writing the competent National Revenue Agency territorial directorate whereat the said person is registered within seven days after occurrence of any such circumstance.(2) In the cases referred to in Paragraph (1), the revenue authority shall issue a replacement certificate within seven days after notification.Chapter TenTERMINATION OF REGISTRATION (DEREGISTRATION)General DispositionsArticle 106. (1) Termination of registration (deregistration) under this Act shall be a procedure pursuant to which, after the date of deregistration, the person shall have no right to charge tax and to deduct credit for input tax, except where otherwise provided for in this Act.(2) Registration shall terminate:1. on the initiative of the registered person, when there are grounds for deregistration, whether compulsory or optional;2. on the initiative of the revenue authority, where:(a) the said authority has ascertained grounds for compulsory deregistration;(b) any circumstance covered under Article 176 herein exists.Grounds for Compulsory DeregistrationArticle 107. The following shall be grounds for compulsory deregistration:1. the death of the natural person;2. the death of the natural person who is a sole trade, with or without expungement in the Commercial Register;3. (supplemented, SG No. 108/2007) the expungement of the sole trade in the Commercial Register, unless the person is subject to compulsory registration under the procedure of Article 96 (1) for the taxable turnover of the supplies provided by him, representing independent economic activities, or if the grounds under Article 108 (2) exist;4. the dissolution of the person in the cases of:(a) dissolution of the legal person which is a merchant, with or without liquidation;(b) dissolution of the cooperative;(c) dissolution of the legal person which is not a merchant;(d) dissolution of the unincorporated association or the social insurance fund.Grounds for Optional DeregistrationArticle 108. (1) Grounds for optional deregistration shall arise:1. in respect of any person registered pursuant to Articles 96, 97 (3) or Article 100 (1) herein, upon the lapse of the relevant grounds for compulsory registration;2. in respect of any person registered pursuant to Article 98 (2) or Article 100 (3) herein, where:(a) the sum total of the taxable amounts of the supplies effected under the terms of distance selling within the territory of the country (excluding the supplies of excisable goods) does not exceed BGN 70,000 for each of the two calendar years preceding the current year, and(b) at the date of submission of the application for deregistration application, grounds for compulsory registration do not exist;3. in respect of any person registered pursuant to Article 99 and Article 100 (2) herein, where:(a) the sum total of the taxable amounts of the taxable intra-Community acquisitions, with the exception of new means of transport and excisable goods, does not exceed BGN 20,000 for the preceding calendar year, and(b) at the date of submission of the application for deregistration, grounds for compulsory registration do not exist.(2) Any persons who have opted to register according to Article 100 herein shall not have the right to terminate the registration thereof pursuant to Paragraph (1) before the lapse of 24 months reckoned from the beginning of the calendar year following the year of registration under this Act.Deregistration Procedure Initiated by PersonArticle 109. (1) In the cases referred to in Items 3 and 4 of Article 107 herein, the person shall submit an application for deregistration to the competent National Revenue Agency territorial directorate within 14 days after the occurrence of the relevant circumstance under Article 107 herein.(2) In the cases referred to in Article 108 (1) herein, the registered person shall have discretion to decide when to submit an application for deregistration to the competent National Revenue Agency territorial directorate.(3) Any application referred to in Paragraphs (1) and (2) must state the grounds for deregistration. Documents specified in the Regulations for Application of this Act shall be attached to any such application.(4) Within seven days after receipt of the application, the revenue authority shall verify the grounds for deregistration.(5) Within seven days after completion of the verification, the revenue authority shall issue an act whereby it shall effect the deregistration or shall refuse to effect the deregistration, stating reasons for such refusal.(6) (Amended, SG No. 113/2007) In the cases referred to in Paragraph (1) the date of occurrence of the respective circumstance under Article 107 shall be deemed a date of deregistration.(7) (New, SG No. 113/2007) In the cases referred to in Paragraph (2) the date of delivery of the deregistration act under Paragraph (5) shall be deemed a date of deregistration.Deregistration Procedure Initiated by Revenue AuthorityArticle 110. (1) Registration shall terminate on the initiative of the revenue authority by issuing a deregistration act, where:1. grounds for compulsory deregistration exists under Items 1 and 2 of Article 107 herein;2. the revenue authority ascertains that the person has failed to fulfil in due time the obligation thereof to submit an application for deregistration under Article 109 (1) herein.3. (new, SG No. 108/2007) grounds for deregistration under Article 176 exist.(2) (Supplemented, SG No. 108/2007) In the cases covered under Items 1 and 2 of Paragraph (1), the deregistration act shall not be delivered to the person, and the date of deregistration shall be the date of occurrence of the relevant event under Article 107 herein. In all the other cases the date of deregistration shall be the date of delivery of the deregistration act.Supply Linked to Deregistration and Assessment of Liabilities for LastTax PeriodArticle 111. (1) (Supplemented, SG No. 108/2007) At the date of deregistration, it shall be deemed that the person effects supplies, within the meaning given by this Act, of all available goods and/or services for which the said person has used, wholly or partly, credit for input tax, and which constitute:1. any assets, within the meaning given by the Accountancy Act, or2. any assets, within the meaning given by the Corporate Income Tax Act, other than such referred to in Item 1.(2) Paragraph (1) shall not apply:1. upon deregistration by reason of death of a natural person who is not a sole trader;2. upon the death of a person registered under this Act who is a sole trader, if the enterprise of the person has been taken over by legal or testamentary succession by a person who is registered under this Act, or who registers within six months after the date of such death: applicable only to the goods available at the date of registration;3. upon transformation of a registered legal person, if the newly formed person or the acquiring person is registered under this Act or registers according to the procedure and within the time limit established by Article 132 herein: applicable only to the goods available at the date of registration;4. to the available assets which constitute public state or public municipal property.(3) The tax referred to in Paragraph (1) shall be included in the net tax for the last tax period.(4) Where, at the date of deregistration the person is in a deduction procedure according to the procedure established by Article 92 herein, it shall be presumed that the three one-month periods have expired at the said date. For more information visit www.solicitorbulgaria.com id: 341 Mon, 04 Aug 2008 07:20:45 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-value-added-tax-act-part-1 http://web.solicitorbulgaria.com/index.php/bulgarian-value-added-tax-act-part-1 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/VALUE_ADDED_TAX_ACT.JPG EUR http://web.solicitorbulgaria.com/index.php/bulgarian-value-added-tax-act-part-1 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Chapter OneGENERAL PROVISIONSArticle 1This Act establishes the procedure for preparatory work and conclusion of international treaties by the Republic of Bulgaria, as well as the procedure for observance, amendment, suspension of the operation, termination, custody and registration of the international treaties whereto the Republic of Bulgaria is a party.Article 2(1) This Act shall apply to any bilateral or multilateral treaty concluded in written form between the Republic of Bulgaria and other States or international organizations, whether embodied in a single instrument or in two or more related instruments.(2) The provisions of this Act shall furthermore apply, mutatis mutandis, to the agreements of the Republic of Bulgaria with non-resident persons wherein the Republic of Bulgaria participates as a subject of public law, where any such agreements are subject to ratification by the National Assembly according to Article 85 (1) of the Constitution of the Republic of Bulgaria. Chapter… For more information visit http://www.solicitorbulgaria.com id: 327 Chapter OneGENERAL PROVISIONSArticle 1This Act establishes the procedure for preparatory work and conclusion of international treaties by the Republic of Bulgaria, as well as the procedure for observance, amendment, suspension of the operation, termination, custody and registration of the international treaties whereto the Republic of Bulgaria is a party.Article 2(1) This Act shall apply to any bilateral or multilateral treaty concluded in written form between the Republic of Bulgaria and other States or international organizations, whether embodied in a single instrument or in two or more related instruments.(2) The provisions of this Act shall furthermore apply, mutatis mutandis, to the agreements of the Republic of Bulgaria with non-resident persons wherein the Republic of Bulgaria participates as a subject of public law, where any such agreements are subject to ratification by the National Assembly according to Article 85 (1) of the Constitution of the Republic of Bulgaria. Chapter TwoPREPARATORY WORK FOR CONCLUSION OFINTERNATIONAL TREATIESArticle 3The drafts of international treaties shall be prepared by the competent minister or head of central-government department after detailed research and in accordance with the Constitution, the legislation and the international obligations of the Republic of Bulgaria.Article 4(1) Together with the draft referred to in Article 3 herein, there shall be prepared a draft of a report to the Council of Ministers which shall substantiate the need to conclude the treaty and shall set forth the expected results and financial consequences of the application thereof, the consistency thereof with the provisions of the Constitution, the legislation and the international obligations of the Republic of Bulgaria, as well as with the law of the European Union.(2) Should the observance of the treaty require that statutory instruments be adopted or that domestic legislation be amended and supplemented, the draft of the report shall specify the relevant actions which must be taken in statutory and subordinate legislation, as well as the public authorities which are competent to prepare the said actions.(3) Where the draft of an international treaty contains provisions which require amendments to the Constitution of the Republic of Bulgaria, the draft of a report shall substantiate the need of participation of the Republic of Bulgaria in the said treaty and, respectively, the need of such amendments, motivating the specific proposals for effecting them. The international treaty shall be concluded after adoption of the said amendments.Article 5(1) The draft of an international treaty and the draft of a report to the Council of Ministers shall be coordinated with the Minister of Foreign Affairs, as well as with the other ministers and heads of the central-government departments concerned, inter alia on the matter of the amendments which have to be effected in domestic legislation regulating the subject matter lying within the competence of the said ministers and heads in connection with the application of the treaty.(2) Where, upon coordination according to the procedure established by Paragraph (1), it shall be ascertained that the draft of an international treaty contains any provisions conflicting with the legislation of the Republic of Bulgaria, the report shall expressly specify the relevant statutory instruments and provisions, as well as the proposals by the Minister of Justice and the other ministers and heads of central-government departments concerned for elimination of the said conflicts.Article 6(1) The draft of an international treaty shall be introduced before the Council of Ministers for approval together with a report and a draft of decision. The written observations of the other ministers and heads of central-government departments concerned shall be attached to the report, specifying which of their recommendations have not been accepted and on what grounds.(2) Where conclusion of the treaty requires the consent of the National Assembly under Item 9 of Article 84 of the Constitution or the authorization of the Grand National Assembly under Article 158 (2) of the Constitution, the said consent or authorization shall likewise be attached to the report.Article 7(1) The provisions of Articles 3 to 6 herein shall furthermore apply where a draft of an international treaty, prepared by another State or by an international organization, is proposed as a basis for the conduct of negotiations. In such a case, the proposer shall submit, in addition to the original version in a foreign language, a translation of the draft into the Bulgarian language.(2) The provisions of Articles 4 to 5 herein shall apply accordingly to the preparatory work for accession of the Republic of Bulgaria to a multilateral international treaty, with the proposer submitting, in addition to the original version in a foreign language, a translation of the draft into the Bulgarian language. Where it shall be necessary for the Republic of Bulgaria to formulate any reservations to or declarations on a multilateral treaty, the proposer shall substantiate the said reservations or declarations in the draft of a report and shall include them in the draft of a Council of Ministers decision.(3) The provisions of Articles 3 to 6 herein shall apply accordingly to the preparation of a draft of an agreement to amend an international treaty, as well as to a proposal to terminate a treaty, to suspend the operation thereof and to withdraw from a multilateral treaty whereto the Republic of Bulgaria is a party.Article 8(1) The Council of Ministers shall adopt a decision approving the draft of an international treaty or the draft of an amendment of an international treaty whereto the Republic of Bulgaria is a party as a basis for the conduct of negotiations and shall designate the head of the delegation to hold the negotiations and to sign the treaty.(2) By the decision thereof referred to in Paragraph (1), the Council of Ministers in the cases under Article 4 (2) and (3) herein shall entrust the competent ministers and heads of central-government departments with preparation of the requisite measures and shall establish time limits for implementation of the said measures.(3) By the decision thereof referred to in Paragraph (1), the Council of Ministers shall mandatorily pronounce regarding the proposal referred to in Article 6 (2) herein.(4) The Council of Ministers shall adopt a decision approving the proposals referred to in Article 7 (2) and (3) herein.Chapter ThreeCONCLUSION OF INTERNATIONAL TREATIESArticle 9(1) International treaties shall be concluded:1. by the President of the Republic of Bulgaria, after coordination with the Council of Ministers depending on the significance and subject matter of the treaty or conforming with the level of public authorities who will sign the treaty as coordinated between the parties;2. by the Council of Ministers, in conformity with the subject matter of the treaty and of the provisions thereof.(2) In the cases where an international treaty lies within the discretionary competence of a specified minister or head of central-government department, the said minister or head shall conclude the treaty with the relevant authority of another State in pursuance of a Council of Ministers decision.(3) Any Council of Ministers decision adopting a draft treaty shall expressly specify who must sign the said treaty.Article 10(1) The Minister of Foreign Affairs shall hand the draft as approved to the other party and shall coordinate the time and venue of the negotiations.(2) With regard to any treaties referred to in Article 9 (2) herein, the acts provided for in Paragraph (1) shall be performed by the competent minister or head of central government department.Article 11(1) The draft of an international treaty or the draft of an amendment of an international treaty whereto the Republic of Bulgaria is a party, as approved by the Council of Ministers, shall serve as a basis of the negotiations.(2) Where a material departure from the draft referred to in Paragraph (1) shall become necessary in the course of the negotiations, the initialling and signing of the treaty shall follow approval by the Council of Ministers.Article 12Any bilateral international treaty shall be drawn up in two identical copies, each one in the Bulgarian language and in the language of the other party. The treaty may furthermore be drawn up in a third language as well or in a third language only. Each of the copies shall be equally authentic.Article 13(1) Full powers for the negotiating and signing of international treaties shall emanate from the Minister of Foreign Affairs in pursuance of a Council of Ministers decision.(2) The President of the Republic, the Prime Minister and the Minister of Foreign Affairs may conclude international treaties without having to produce full powers.Article 14The consent of the Republic of Bulgaria to be bound by international treaties shall be expressed by ratification or by approval, acceptance, accession, definitive signature not followed by ratification or approval, as well as by exchange of the instruments constituting the treaty.Article 15(1) Where an international treaty shall be subject to ratification according to the Constitution of the Republic of Bulgaria, the Council of Ministers shall move to the National Assembly to ratify the said treaty by statute.(2) Where the Constitution does not require the ratification of an international treaty, the Council of Ministers shall approve the said treaty by decision.Article 16Where a multilateral international treaty provides for the possibility of accession or acceptance, the consent of the Republic of Bulgaria to be bound by the said treaty shall be expressed by means of ratification or approval according to the procedure established in Article 15 herein.Article 17Where an international treaty provides for the consent to be bound thereby to be expressed by definitive signature or accession not followed by ratification or approval, any consent to be so bound shall be given by the Council of Ministers and shall be incorporated into the decision on approval of the treaty.Article 18Where consent to be bound by an international treaty is expressed by exchange of the instruments constituting the treaty, any such exchange shall be effected by the Minister of Foreign Affairs in pursuance of a Council of Ministers decision.Article 19(1) Any reservations to and declarations on a multilateral international treaty shall be formulated upon signature, ratification, approval, acceptance or upon accession.(2) The text of any reservations and declarations referred to in Paragraph (1) shall be approved by the public authority which has expressed the consent of the Republic of Bulgaria to be bound by the treaty.(3) Any objections to reservations or declarations made by other parties to a treaty, as well as any withdrawal of reservations and declarations, shall be prepared and adopted according to the procedure established by this Act and shall be declared by the Minister of Foreign Affairs.Article 20The Minister of Foreign Affairs shall prepare the instruments of ratification and the instruments of approval, acceptance or accession proceeding from the statute of ratification or the Council of Ministers act of approval and shall deliver the said instruments to the other party or to the depositary of the treaty.Article 21The Minister of Foreign Affairs shall notify the other contracting party or the depositary of the treaty of the ratification, approval, acceptance or accession and shall affect the exchange or deposit of the relevant instruments. A protocol shall be drawn up on the exchange of the instruments of ratification.Article 22(1) Upon detection of any apparent errors in the text of an international treaty whereto the Republic of Bulgaria is a party, the Minister of Foreign Affairs shall take action through diplomatic channels in order to obtain the consent of the other party or parties for correction of any such error.(2) In the cases where a treaty has already been promulgated, the correction therein shall be promulgated in the State Gazette upon obtaining of the consent referred to in Paragraph (1). Any such correction shall enter into force on the date of promulgation thereof.Chapter FourENTRY INTO FORCE, PROMULGATION AND LEGAL EFFECT OFINTERNATIONAL TREATIESArticle 23Save in the cases referred to in Article 17 herein, an international treaty, once signed, shall be introduced before the Council of Ministers together with a report by the competent minister in coordination with the Minister of Foreign Affairs, with the other ministers and with the heads of the central government departments concerned.Article 24(1) An international treaty shall enter into force for the Republic of Bulgaria under the terms and according to the procedure as provided for therein or as additionally agreed between the parties.(2) Any international treaty referred to in Article 9 (2) herein, which is not subject to ratification by the National Assembly, may enter into force on the date of signature not followed by approval, and this shall be expressly stated in the Council of Ministers decision on approval of the draft of the said treaty.Article 25(1) Any international treaty shall be promulgated in the State Gazette within fifteen days after the date of entry thereof into force for the Republic of Bulgaria. Promulgation shall be prepared by the minister or the head of the central-government department which has introduced the proposal for participation of the Republic of Bulgaria in the relevant treaty.(2) The authority which expresses the consent of the Republic of Bulgaria to be bound by an international treaty may provide for non-promulgation of the said treaty in the act of expression of such consent.(3) Where an international treaty has been promulgated, the amendment, termination or suspension of the operation of the said treaty shall be subject to promulgation according to the procedure established by Paragraph (1).Chapter FiveOBSERVANCE OF INTERNATIONAL TREATIESArticle 26(1) The obligations arising from an effective international treaty whereto the Republic of Bulgaria is a party shall be performed in good faith irrespective of which competent public authority expressed the consent to be bound.(2) A public authority may not invoke provisions of domestic law as grounds for non-observance of an international treaty whereto the Republic of Bulgaria is a party.(3) The effect of the provisions of an international treaty in the domestic legal system shall be determined depending on the nature of the said provisions, whether self-executing or not, and on the place of the act of expression of consent to be bound in the hierarchy of the domestic legal system in conformity with the Constitution and the laws of the land.Article 27Where adoption of statutes or other statutory instruments or introduction of amendments into the effective legislation shall be necessary for performance of the obligations of the Republic of Bulgaria under an international treaty, the Council of Ministers shall ensure in due course the preparation and presentation before the National Assembly of the relevant draft acts of statutory legislation or the preparation and adoption of the relevant acts of subordinate legislation.Article 28(1) Verification of compliance with the international treaties of the Republic of Bulgaria shall be performed by the Council of Ministers.(2) The ministers, who are competent to apply the international treaty in conformity with the subject matter and provisions thereof, shall be responsible for the performance of the obligations arising from the said treaty for the Republic of Bulgaria.(3) The Minister of Foreign Affairs shall be monitoring the observance of the international treaties of the Republic of Bulgaria and shall inform the Council of Ministers of any cases of non-observance, should any such cases come to the notice of the said Minister, and may propose remedial action.Article 29The provisions of Articles 26 through 28 herein shall apply, mutatis mutandis, to any resolution of an international organization or of an organ thereof which are binding upon the Republic of Bulgaria in virtue of an international treaty.Chapter SixCUSTODY, REGISTRATION OF INTERNATIONAL TREATIES ANDDEPOSITARY FUNCTIONSArticle 30(1) The originals of all international treaties with the participation of the Republic of Bulgaria, including any bilateral and multilateral treaties, for which no depositary has been designated, as well as certified copies of multilateral treaties, shall be in the custody of the Ministry of Foreign Affairs.(2) The originals of the international treaties referred to in Paragraph (1) shall be delivered into custody immediately after the signature thereof together with the accompanying documents, as well as with all succeeding instruments amending, supplementing, terminating or suspending the operation thereof.Article 31The Minister of Foreign Affairs shall perform the acts required for registration of the international treaties of the Republic of Bulgaria with the United Nations and with other intergovernmental organizations in conformity with the obligations assumed by the Republic of Bulgaria.Article 32Where the Republic of Bulgaria has been designated depositary of a multilateral international treaty, these functions shall be performed by the Minister of Foreign Affairs.SUPPLEMENTARY PROVISION 1. Within the meaning of this Act:1. "Non-resident person" shall be:(a) any juristic person with registered office outside the territory of the Republic of Bulgaria;(b) any association which is not a juristic person and which is registered abroad.2. "Central-government department" shall be an institution of State established by statute or by Council of Ministers decree, whereof the head is empowered to conclude international treaties.TRANSITIONAL AND FINAL PROVISIONS 2. Any international treaties which were ratified came into force for the Republic of Bulgaria and were promulgated prior to the entry into force of the effective Constitution, shall have the legal effect of the international treaties referred to in Article 5 (4) of the Constitution of the Republic of Bulgaria. 3. The Council of Ministers shall ensure the promulgation in the State Gazette of the effective non-promulgated international treaties, approved according to the legal procedure effective upon their entry into force, within six months after the entry of this Act into force. 4. This Act supersedes Decree No. 1496 on Participation of the People's Republic of Bulgaria in International Treaties (SG No. 62 of 1975). 5. In Article 5 of the State Gazette Act (promulgated, SG No. 89 of 1995; corrected, No. 92 of 1995; amended, No. 123 of 1997, No. 56 of 1999 and No. 1 of 2000), Paragraph (1) shall be amended to read as follows:"(1) Any international treaties, which are subject to promulgation, shall be transmitted and promulgated in the State Gazette within fifteen days after the date of their entry into force for the Republic of Bulgaria."This Act was passed by the 39th National Assembly on the thirty first day of October in the year two thousand and one, and the Official Seal of the National Assembly has been affixed thereto. For more information visit www.solicitorbulgaria.com id: 327 Fri, 01 Aug 2008 07:41:03 +0000 http://web.solicitorbulgaria.com/index.php/international-treaties-of-the-republic-of-bulgaria-act http://web.solicitorbulgaria.com/index.php/international-treaties-of-the-republic-of-bulgaria-act http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/International_Treaties_of_the_Republic_of_Bulgaria_Act.jpg EUR http://web.solicitorbulgaria.com/index.php/international-treaties-of-the-republic-of-bulgaria-act legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Section XISuspension of Connection and Electricity SupplyArticle 122. (1) The transmission company or the distribution companies shall have the right to suspend the electricity transmission through the relevant network by written advance notice in the event of planned repair, redevelopment or inspection of facilities of the electric energy company requiring the switching off of the said facilities for safety purposes.(2) The transmission company or the distribution companies shall have the right to suspend electricity transmission through the relevant network without advance notice:1. for prevention of an imminent risk to human health and security or to the security of facilities;2. upon failures of the electricity networks and facilities for reasons beyond the control of the electric energy company;3. where electricity is consumed unmetered or is incorrectly metered by means of commercial metering devices;4. where an uncleared modification of the connection diagram of the consumer is… For more information visit http://www.solicitorbulgaria.com id: 328 Section XISuspension of Connection and Electricity SupplyArticle 122. (1) The transmission company or the distribution companies shall have the right to suspend the electricity transmission through the relevant network by written advance notice in the event of planned repair, redevelopment or inspection of facilities of the electric energy company requiring the switching off of the said facilities for safety purposes.(2) The transmission company or the distribution companies shall have the right to suspend electricity transmission through the relevant network without advance notice:1. for prevention of an imminent risk to human health and security or to the security of facilities;2. upon failures of the electricity networks and facilities for reasons beyond the control of the electric energy company;3. where electricity is consumed unmetered or is incorrectly metered by means of commercial metering devices;4. where an uncleared modification of the connection diagram of the consumer is detected.(3) The transmission company or the distribution companies shall have the right to suspend the connection:1. of persons who have connected to the relevant network without having a right to do so;2. of consumers who have suffered the connection of a third party to their own electric fixtures without the express consent of the energy company;3. upon failure to perform a prescription issued by a control authority for remedy of a violation within the prescribed time limit;4. of consumers who cause disturbances to the electric power grid through their own network.(4) Upon suspension of the transmission and connection under Paragraphs (2) and (2), the public provider or the public suppliers shall not incur any liability for damages resulting from limitation or suspension of the supply.Article 123. (1) The public provider and public suppliers shall have the right to suspend the supply of electricity to consumers which fail to fulfil any obligations under the contract for sale of electricity, including a failure to fulfil the obligation to pay for the electricity consumed when due, or in the event of exceeding the agreed capacity.(2) The advance notice periods and the other conditions for suspension of supply shall be regulated by the contracts for purchase of electricity or in the general conditions, as the case may be.(3) The transmission company or the relevant distribution company shall suspend the transmission of electricity to the consumers referred to in Paragraph (1) at the request of the public provider or of the public supplier, as the case may be.(4) Upon fulfilment of the obligation thereof under Paragraph (3), the transmission company or the relevant distribution company shall not incur any liability for damages resulting from suspension of the transmission of electricity.Article 123a. (New, SG No. 74/2006, effective 1.07.2007) (1) The end supplier shall be entitled to temporarily suspend the electricity supply to any consumers which fail to fulfil any obligations under the contract for sale of electricity, including a failure to fulfil the obligation to pay for the electricity consumed when due, or in the event of exceeding the agreed capacity.(2) The advance notice periods and the other conditions for suspension of supply shall be regulated by the contracts for purchase of electricity or in the general conditions, as the case may be.(3) The transmission company or the relevant distribution company shall suspend the transmission of electricity to the consumers referred to in Paragraph (1) at the request of the end supplier.(4) Upon fulfilment of the obligation thereof under Paragraph (3), the transmission company or the relevant distribution company shall not incur any liability for damages resulting from suspension of the transmission of electricity.Article 124. The energy shall restore the supply and/or connection of consumers upon elimination of the reasons that led to the suspension of the said supply and/or connection.Chapter TenHEAT SUPPLYSection IGeneral ProvisionsArticle 125. (1) Heat supply is the process of generation, transmission, delivery, distribution and consumption of heat with water steam and hot water as a heat-transfer medium for household and business uses.(2) Heat supply shall be implemented by means of facilities and installations for generation, transmission, delivery and distribution connected in a heat supply system.(3) The procedure and the technical conditions for heat supply, for operational management of the heat supply system, for connection of producers and consumers to the heat transmission network, for distribution, disconnection of heat supply and suspension of heat supply shall be established by an ordinance of the Minister of Energy and Energy Recourses.(4) The technical rules and standard specifications for design, construction and operation of the facilities and installations for generation, transmission and distribution of heat shall be established by an ordinance of the Minister of Regional Development and Public Works and the Minister of Energy and Energy Resources.Section IIHeat GenerationArticle 126. (1) Heat shall be generated by an energy company licensed for generation according to the procedure established by this Act.(2) (Amended, SG No. 55/2007) Persons may generate heat even without holding a licence in the cases under Item 2 and 4 of Article 39 (4) herein.Article 127. (1) Heat shall be generated at:1. combined heat and power plants;2. heat generation plants;3. installations for recovery of waste heat and for utilization of renewable energy sources.(2) In case of a declared demand for heat, new plants with a capacity exceeding 5 megawatts and using natural gas as fuel shall be constructed for the combined generation of heat and electricity (co-generation).Article 128. Producers of heat at heat power plants and/or heat generation plants shall be obligated to maintain stocks of fuels in a quantity guaranteeing reliable generation, determined under the terms and according to the procedure established by the ordinance referred to in Article 85 (2) herein.Section IIIHeat TransmissionArticle 129. (1) (Amended, SG No. 74/2006) The heat transmission network shall be operated by a heat transmission company.(2) (Amended, SG No. 74/2006) The heat transmission company may, in addition, perform an activity comprehended in the generation of heat and electricity.Article 130. The heat transmission company shall be obligated:1. to supply heat to consumers connected to the heat transmission network on equal and non-discriminatory terms;2. to maintain the facilities and installations of the heat transmission network in accordance with technical requirements and safe operation requirements;3. to develop the heat transmission network in accordance with the plans for development of the areas for which the said company has been issued a licence;4. to purchase the contracted quantities of heat from producers located within the area for which the said company is licensed.Section IVOperational ManagementArticle 131. (1) The operational management of the heat transmission system shall be performed by a heat transmission network operator.(2) A heat transmission network operator shall be a specialized unit of the heat transmission company.(3) The directives of the operator shall be mandatory for the heat producers and consumers.Article 132. (1) The heat transmission network operator shall be obligated to ensure:1. a mode of operation of the heat transmission network in accordance with the requirements established by the ordinance referred to in Article 125 (3) herein;2. maintenance of the balance between generation and consumption;3. (amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) coordination with the electric power grid operator and/or the electricity distribution network operator in accordance with the contracts as concluded: in cases of combined generation of heat and electricity (co-generation);4. coordination with the natural gas transmission network operator and/or the natural gas distribution network operator in accordance with the contracts as concluded: where natural gas is used.(2) (Amended, SG No. 74/2006) The heat transmission network operator shall regulate the distribution of the heat load among the heat generation plants under criteria determined by the ordinance referred to in Article 125 (3) herein.Section VConnection to the Heat Transmission NetworkArticle 133. (1) The heat transmission company shall be obligated to connect to the heat transmission network producers and consumers located within the relevant area specified by the licence for transmission of heat.(2) (Supplemented, SG No. 74/2006) The connection of consumers in a condominium-project building through a subscriber sub-station or self-contained branches there from shall require a resolution of the general meeting of the condominium owners, taken with an express written consent by two thirds of all owners and titleholders of real right to use in a condominium-project building.(3) The heat transmission company may refuse to connect a producer to the heat transmission network if the said producer has failed to comply with the requirements under this Act and under the ordinance referred to in Article 125 (3) herein.(4) The heat transmission company may refuse to connect consumers to the heat transmission network:1. where no heat transmission network has been constructed;2. upon shortage of generating capacities;3. upon insufficient transmission capacity of the heat transmission network;4. (amended, SG No. 74/2006) where the systems of consumers in a condominium-project buildings are not equipped with the devices and appliances covered under Items 2 and 3 of Article 140 (1) herein.(5) The heat transmission company shall provide a reasoning in writing for a refusal to connect any producer or consumer.Article 134. Producers shall be connected to the heat transmission network by means of connecting heating mains which shall be constructed by and for the account of the producer and shall be owned thereby.Article 135. Consumers shall be connected to the heat transmission network by means of a connecting heating main and a subscriber sub-station.Article 136. (1) Upon connection of a consumer of heat for business uses, the connecting heating mains and the appurtenant facilities and the subscriber sub-station shall be constructed by and for the account of the consumer and shall be owned thereby.(2) Connection of a new consumer of heat for business uses by means of an existing connecting heating main owned by another consumer for business uses may be performed if technically practicable, provided the heat transmission company buys out the common use section of the connecting heating main or the owner creates an onerous right of use to the said section in favour of the said company.Article 137. (1) Upon connection of consumers of heat for household uses, the connecting heating main, the appurtenant facilities and the subscriber sub-station shall be constructed by the heat transmission company and shall be owned thereby.(2) (Amended, SG No. 74/2006) Construction of the facilities referred to in Paragraph (1)may be performed by the consumers after clearance with the heat transmission company. In this case, the heat transmission company shall pay a price to use the consumer-constructed facilities under Paragraph 1.(3) (New, SG No. 74/2006) Ownership of consumer-constructed facilities shall be transferred within three years, and any related relationships thereto shall be settled by the connection contract referred to in Article 138, Paragraph 1.(4) (Renumbered from Paragraph 3, SG No. 74/2006) Connection of consumers from one or more buildings to a subscriber sub-station in another building shall only be permissible where:1. the owners of the corporeal immovables in the buildings without a subscriber sub-station have concluded a contract for use of the premise of the existing subscriber sub-station, and2. the said owners have complied with the technical requirements established by the ordinance referred to in Article 125 (3) herein.(5) (Renumbered from Paragraph 4, amended, SG No. 74/2006) The connecting heating main from the existing subscriber sub- station to the building of the consumers referred to in Paragraph (4) shall be constructed by and for the account of the connecting consumers and shall be owned thereby.Article 138. (1) Producers and consumers shall be connected to the heat transmission network shall on the basis of a written contract with the heat transmission company under the terms and according to the procedure established by the ordinance referred to in Article 125 (3) herein.(2) Producers and consumers referred to in Paragraph (1) shall pay the heat transmission company a connection price which shall be formed according to the procedure established by the relevant ordinance referred to in Article 36 (3) herein.(3) Consumers connected to the heat transmission network shall be obligated to provide the licensed heat transmission company access through their own facilities for the purposes of heat transmission to other consumers within the area specified in the licence. The price for the access provided shall be fixed according to a method approved by the Commission.Section VIHeat DistributionArticle 139. (1) Head shall be distributed in a condominium project building on the basis of a share distribution system.(2) (Amended, SG No. 74/2006) Heat share distribution in a condominium-project building among the consumers shall be done by the heat transmission company or by a heat provider, or shall be assigned to a person, listed in the public register under Article 139a.Article 139a. (New, SG No. 74/2006) (1) Persons performing the share distribution service shall be registered in a public register with the Ministry of Economy and Energy.(2) A person meeting the following requirements shall be listed in the public register under Paragraph 1:1. is presenting a commercial registration document and a current status certificate;2. is a producer of individual heat distribution devices or is a duly authorised representative of such producer, which shall be certified by a statement from the producer person, and for the producer representatives - by a notarised letter of attorney or other document, with which the producer authorises the person to conduct such activities;3. is offering and/or using individual heat distribution and/or metering devices, meeting the effective standards in the country;4. is providing warranty and post-warranty service for the share distribution devices offered and installed;5. owns the hardware and licensed software needed to conduct its activities;6. has qualified personnel and an authorised representative at the respective city or village;7. applies a heat share distribution methodology, compliant with the rules on distribution according to the ordinance under Article 126, Paragraph 3;8. is not in any liquidation proceedings;9. is not declared bankrupt, and is not in any bankruptcy proceedings;10. presents a certificate for being a personal data administrator under the Personal Data Protection Act;11. does not have its right to conduct commercial activities revoked;12. has no monetary obligations to the state, established by an act of a competent authority, or obligations to social insurance funds, except in cases where the competent authority has allowed the obligation to be rescheduled or deferred.(3) In order to obtain registration, the person shall submit an application to the Minister of Economy and Energy, attaching thereto any documents certifying the conditions under Paragraph 2. When the share distribution is to be done by a foreign natural or legal person, the application shall be submitted in Bulgarian language, and any foreign-language documents attached thereto shall be also presented in translation.(4) For all conditions under Paragraph 2, Items 4-6, the person shall attach a statement to the application, stating the number of employees used, and their qualifications.(5) The conditions under Paragraph 2, Item 3 and Items 8-12 shall be certified by documents from the respective competent administrative or judicial authorities.(6) The application shall be reviewed by a Committee, appointed by order of the Minister of Economy and Energy, which, within one month after the date the application is submitted, shall prepare a motivated proposal for the Minister.(7) The Committee under Paragraph 6 shall be entitled, over the course of review of this application, to verify the data stated by the person, to ask for clarifications regarding the conditions and the documents under Paragraph 2, as well as to require written presentation within a given period of additional proof of any conditions stated in the application.(8) The Minister of Economy and Energy shall make a decision on the application based on the Committee's proposal within 7 days after preparation of the latter. The applicant shall be notified under the procedure of the Code of Civil Procedure.(9) The authority under Paragraph 8 shall make a decision with a motivated refusal on the application, when the person does not meet any requirements in Paragraph 2, and/or has not provided any documents under Paragraph 4 or Paragraph 5. The refusal may be appealed under the procedure of the Code of Administrative Procedure.(10) The entry into the register shall be effected within three days after the decision of the authority under Paragraph 8, on which the applicant shall have a certificate issued. The registration shall be considered effective as of the date of presenting the certificate.(11) Any person, listed in the register under Paragraph 1, shall be de-listed by an act of the authority under Paragraph 8:1. upon application for de-listing, submitted by the person;2. upon termination of activity or death of the natural person - sole trader, or upon placement of the latter under full judicial disability, as well as upon termination - for a legal person;3. when, as a result of any change in conditions, does not meet the requirements under Paragraph 2;4. when by two or more effective acts by competent state authorities it has been established that the company has been in regular violations of the law.(12) Persons, listed in the register under Paragraph 1, shall inform the Minister of Economy and Energy on all changes in conditions under Paragraph 2 within 7 days after such changes have occurred;(13) For the application review and the register listing, a fee shall be paid, set forth in a schedule by the Council of Ministers, upon proposal by the Minister of Economy and Energy.(14) The rules to maintain and store all data in the register shall be defined in an instruction by the Minister of Economy and Energy.Article 139b. (New, SG No. 74/2006) (1) Consumers in a condominium-project building shall designate a person, registered under the procedure of Article 139a, to perform the share distribution service.(2) The designation under Paragraph 1 shall be based on decision by heat consumers in the condominium-project building, taken on a general meeting of the condominium-project, held under the procedure of the Condominium Management, Order and Supervision Rules (prom., Not., No. 101/1951; amended No. 16/1952, No. 14 and 32/1957, SG, No. 76/1978, No. 73/1979, No. 21/1991, No. 87/2002).(3) Consumers shall notify in writing the heat transmission company or the heat supplier on the result of this designation decision.Article 139c. (New, SG No. 74/2006) (1) When the heat transmission company or the heat supplier have not been registered under Article 139a, they shall execute a written agreement on the performance of the share distribution service with the person designated by consumers under Article 139b.(2) The agreement under Paragraph 1 shall be executed on general conditions proposed by the heat transmission company or the heat supplier and approved by the Commission.(3) The agreement under Paragraph 1 shall contain:1. rights and obligations of the parties;2. the methodology for heat share distribution;3. the terms, procedure, timeframes and content of any required information the parties provide each other in order to perform the share distribution;4. price for the share distribution service, paid by the heat transmission company or the supplier, which compensates any service costs proven before the heat transmission company or the heat supplier and an economically justified rate of return on investment;5. the obligation of the person designated by consumers under Article 139b to read the share distribution meters and to prepare amount equalization for the actual consumed heat quantity in the event of agreement termination;6. all liabilities and charges upon any violation of the agreement, as well as the control the heat transmission company or the heat supplier has over the correct performance of the share distribution service;7. the agreement termination terms;8. the terms, procedure, timeframes, access, and conditions to provide all information needed to prepare the bills for consumers in the condominium-project building by the share distribution performing person, to the heat transmission company or the heat supplier.(4) Upon termination of the agreement under Paragraph 1, consumers in the condominium-project building, or the association under Article 151, Paragraph 1, shall designate another person registered under Article 139a, with whom the heat transmission company or the heat supplier shall execute an agreement.Article 140. (1) The share distribution of heat among consumers in a condominium-project building shall be performed by means of:1. commercial metering devices for the quantity of heat in the subscriber sub-station;2. (amended, SG No. 74/2006) heating share distribution devices: individual allocators conforming to the current standards in Bulgaria, or individual heat meters;3. (amended, SG No. 74/2006) household hot-water supply share distribution devices: individual hot water meters installed on all branches from the building hot-water supply system to the properties of the consumers;4. (repealed, SG No. 74/2006) .(2) Consumers connected to the subscriber sub-station in a condominium-project building shall use heating share distribution devices of one and the same model, delivered by one and the same merchant or approved by the said merchant for use in the building.(3) (Amended, SG No. 74/2006) Building heating and household hot-water supply installations shall be condominium-project property.(4) (Amended, SG No. 74/2006) The heating units, the appurtenant control fittings, the branches from the heating building systems, the branches from the hot-water supply systems and the share distribution devices referred to in Paragraph 1, Item 2, and the individual water meters referred to in Paragraph 1, Item 3 shall be owned by the consumers.(5) (Repealed, SG No. 74/2006).(6) (Repealed, SG No. 74/2006).Article 140a. (New, SG No. 74/2006) The total consumed quantity of heat in a condominium-project building, connected to a subscriber sub-station or a separate branch thereto, shall be allocated for hot-water supply and heating.Article 141. (1) The heat for hot-water supply in a condominium project building shall be calculated by means of:1. the quantity of household hot water supplied and consumed in the building according to the readings of the common water meter;2. the consumption of heat for heating of 1 cubic metre of water of the quantity referred to in Item 1, determined under the terms and according to the procedure established by the ordinance referred to in Article 125 (3) herein.(2) The heat referred to in Paragraph (1) shall be distributed among consumers under the terms and according to the procedure established by the ordinance referred to in Article 125 (3) herein.Article 142. (1) (Amended, SG No. 74/2006) The heat for heating of a condominium-project building shall be the difference between the total quantity of heat for allocation in a condominium-project building and the quantity of heat for hot water supply, calculated under Article 141 (1) herein.(2) The heat for heating of a condominium-project building shall be divided into heat released by the building system, heat for heating of common parts, and heat for heating of the properties.Article 143. (1) (Amended, SG No. 74/2006) The heat released by the building system, upon application of share distribution system through individual allocators, shall be calculated by the person performing heat share distribution in the building using methodology in the ordinance under Article 125, Paragraph 3.(2) The heat for heating of the common parts with installed heating units in condominium-project buildings, upon application of share distribution through individual allocators, shall be calculated on the basis of:1. the capacity of the heating units, or2. the readings of the individual allocators installed on the said heating units.(3) The heat referred to in Paragraphs (1) and (2) shall be distributed among all consumers in proportion to the design heated volume of the individual properties.Article 144. (1) The heat for heating of the properties shall be distributed among the individual properties on the basis of share units according to the readings of the individual allocators installed on the heating units in each property.(2) The value of one share unit shall be calculated on the basis of readings of the individual allocator, taking into consideration evaluation factors in accordance with the standard of the said allocator.(3) The heat per share unit shall be calculated by dividing the heat for heating of the building, less the quantity of heat calculated under Paragraph (1) and Item 1 of Paragraph (2) of Article 143 herein, by the sum total of the share units for all heating units in the building.(4) The heat released by one heating unit shall be the product of the share units as determined according to the readings of the individual allocator installed on the radiator, and the heat per share unit.(5) (New, SG No. 74/2006) The heat under Paragraph 4 shall not exceed the maximum heat the heating unit is able to emit within a heating period, calculated using methodology in the ordinance under Article 125, Paragraph 3, at the respective building installation operating mode.(6) (New, SG No. 74/2006) If there are no heating share distribution devices in a particular property and/or on particular premises, the heat for the heating thereof shall be calculated by multiplying the installed capacity of the heating units installed therein by the maximum specific consumption for the building, arrived at according to the procedure established by the ordinance referred to in Article 125 (3) herein.Article 145. (1) The heat for heating of the properties in a condominium-project building, upon application of share distribution through individual heat meters, shall be calculated on the basis of the readings of the heat meters in the individual properties.(2) The heat released by the building system and the heat for the heating of the common parts, upon application of share distribution through individual heat meters, shall be calculated as the difference between the heat for heating of the building, arrived at under Article 142 (1) herein, and the heat for heating of the properties, calculated under Paragraph (1).(3) The heat referred to in Paragraph (2) shall be distributed among all consumers in proportion to the heated volume of the individual properties.Article 146. (Repealed, SG No. 74/2006).Article 147. (Repealed, SG No. 74/2006).Article 148. (Repealed, SG No. 74/2006).Section VIICommercial RelationshipsArticle 149. (1) Heat shall be sold on the basis of written contracts under general conditions, concluded by and between:1. a producer and a heat transmission company;2. a producer and directly connected consumers of heat for business uses;3. a heat transmission company and consumers of heat for business uses;4. a heat transmission company and associations of heat consumers in a condominium-project building.5. (new, SG No. 74/2006) a heat transmission company and a heat supplier;6. (new, SG No. 74/2006) a heat supplier and consumers in condominium-project building.(2) (Amended and supplemented, SG No. 74/2006) The general conditions of any contracts referred to in under Items 1, 3 and 4 of Paragraph (1) shall be proposed by the heat transmission company, and the general conditions of any contracts referred to in Item 2 of Paragraph (1) shall be submitted by the producer to the Commission for approval.Article 149a. (New, SG No. 74/2006) (1) Heat consumers in a condominium-project building may purchase heat from a supplier, selected on a general meeting of the condominium owners. This selection shall be reflected in a protocol under the Condominium Management, Order, and Supervision Rules.(2) Heat suppliers shall be legal persons, registered as companies under Bulgarian law, meeting all financial-guarantee requirements for all transactions they execute with the heat transmission company.(3) The financial guarantees under Paragraph 2 shall be presented by the supplier to the benefit of the heat transmission company under the terms and procedure set forth in the ordinance under Article 125, Paragraph 3.Article 149b. (New, SG No. 74/2006) (1) Upon any sale of heat by supplier to consumers in a condominium-project building, the written agreement shall define:1. the rights and obligations of the parties;2. the price of heat;3. the procedure to measure, read, distributes and pay for the heat;4. the procedure to provide access to the heating units and the share distribution devices;5. the requirements to the quality of the service;6. the responsibility upon any failure to meet obligations;7. the procedure to review all consumer complaints and claims;8. the terms and procedure for agreement termination.(2) Integral part of the agreement under Paragraph 1 shall be:1. a copy of the agreement with the heat transmission company;2. the consumed heat share distribution methodology;3. a protocol from the general meeting of the condominium owners;(3) In the agreement under Paragraph 1, the share distribution service shall be performed by and at the expense of the supplier separately, or under an agreement the supplier has executed with a person registered under Article 139a.Article 150. (1) Heat shall be sold by the heat transmission company to consumers of heat for household uses under publicly known general conditions as proposed by the heat transmission company and as approved by the Commission; the said conditions shall stipulate:1. the rights and obligations of the heat transmission company and the consumers;2. the procedure for metering, reading, distribution and payment of the quantity of heat;3. the liability for non-fulfilment of the obligations;4. the terms and procedure for connection, suspension and disconnection of heat supply;5. the procedure for provision of access to the heating units, the commercial metering devices or other control appurtenances.6. (new, SG No. 74/2006) the procedure and the timeframes for the consumers to provide and receive their individual heat distribution bills in a manner setting forth the time, when the appeal period commences.(2) Heat transmission companies shall mandatorily publish the general conditions as approved by the Commission in at least one national and one local daily newspaper in the cities where heat supply for household uses is available. Such general conditions shall take effect 30 days after the first publication thereof, without the need of an express written acceptance by consumers.(3) Within 30 days after the effective date of the general conditions, the consumers who disagree with the said conditions shall have the right to submit a statement to the relevant heat transmission company, proposing thereby special conditions. Any special conditions departing from the general conditions as published, which are accepted by the heat transmission companies, shall be entered in supplemental written agreements.Article 151. (1) Heat consumers in a condominium-project building may establish an association wherewith the heat transmission company may conclude a contract for sale of heat to be used by the consumers in the said building.(2) Any contract referred to in Paragraph (1) shall stipulate:1. the rights and obligations of the parties to the contract;2. the procedure for metering, reading and payment of the quantity of heat according to the readings of the heat meter in the subscriber sub- station;3. warranties ensuring fulfilment of the obligations of the parties to the contract;4. the liability for non-fulfilment of the obligations;5. the procedure for consideration of consumer claims;6. the terms and procedure for termination of the contract.(3) Any contract referred to in Paragraph (1) shall be concluded at a preferential price of heat for the association, fixed by the Commission at a proposal by the heat transmission companies.(4) The contract for sale of heat at a preferential price shall be terminated upon dissolution of the association referred to in Paragraph (1) or upon cessation of a consumer's membership in the said association. As of the time of termination of the contract, the owners or users of the properties in a condominium-project building shall be considered to be the heat consumers.Article 152. (1) The association referred to in Article 151 (1) herein shall be a voluntary association of all heat consumers in a condominium- project building. The registration of any such association shall be effected according to the procedure established by Chapter One of the Not-for-Profit Legal Entities Act. The court shall record in the register the particulars referred to in Items 1 to 3, 5, 6, 8 and 9 of Article 18 (1) of the Not-for- Profit Legal Entities Act.(2) The association referred to in Article 151 (1) herein shall be incorporated for enhancement and improvement of the living conditions and environment in a condominium-project buildings and may:1. purchase heat from the heat transmission company which is to be used in the condominium-project building;2. take the readings of the metering devices and the heat distribution devices;3. create new or update existing documentation with data on the heated facilities and on the consumption of hot water;4. exercise control over the heating units and water meters, including such where to heat delivery and hot-water delivery has been discontinued;5. perform repair and adjustment of the building systems, whether independently or through other persons, including rehabilitation of the condominium-project building;6. take care of the building systems and of the condominium project building;7. perform other activities related to the servicing of the properties in the condominium-project building;8. carry out economic activity.(3) The association referred to in Article 151 (1) herein shall be a legal person and shall not distribute profit.(4) The association shall be dissolved on the grounds and according to the procedure established by the Not-for-Profit Legal Entities Act.(5) Upon dissolution, the association shall be liquidated. Liquidation shall be carried out by the Manager or by a person designated by the General Meeting. The provisions of the Commerce Act shall apply, mutatis mutandis, to the insolvency or bankruptcy, as the case may be, to the procedure for liquidation and to the powers of the liquidator.(6) The incorporators shall adopt a Charter which must state:1. the corporate name of the association;2. the purposes and the means for attainment thereof;3. the seat;4. the amount of initial contributions;5. the objects of economic activity;6. the governing bodies;7. the powers of the bodies of the association;8. the rules regarding the commencement and cessation of membership, as well as the procedure for settlement of property relations upon cessation of membership;9. the duration wherefore the association is incorporated, if applicable;10. the procedure for determination of the amount and the manner of transfer of contributions.(7) Each member shall have the right to participate in the management of the association, to stand informed of the operation of the association, to benefit from the property thereof and from the results of the activity according to a procedure established in the Charter. Each member shall be obligated to make contributions in an amount provided for in the Charter. Membership shall cease according to the procedure and in the manner established in the Charter.(8) Contributions by the members of the association which do not exceed the amount owed by the association under the contract for sale of heat referred to in Article 151 herein shall not form part of the economic activity of the association.(9) The General Meeting and the Manager shall be the bodies of the association.(10) The General Meeting shall be composed of all members of the association who are heat consumers.(11) The General Meeting shall exercise the following powers:1. amend and supplement the Charter;2. approve other internal acts;3. elect and remove a Manager and a Liquidator;4. admit, release and expel members;5. pass upon dissolution of the association;6. adopt the guidelines and a programme of action of the association;7. adopt the budget of the association;8. pass upon the dueness and amount of membership dues and/or of contributions;9. approve the report on the activities of the association;10. pass upon any other matters as provided for in the Charter.(12) Any resolution of the General Meeting shall be subject to judicial review as to the legal conformity thereof and compatibility with the Charter, the said review lying within the competence of the district court exercising jurisdiction over the seat of the association.(13) The General Meeting shall be called to a session by the Manager on his or her own initiative or on a requisition of one third of the members of the association. Should the Manager fail to transmit a written notice of convocation of the General Meeting within one week, the meeting shall be called by the interested members or by a person authorized thereby.(14) Any notice of convocation must state the agenda, the date, time and venue of the session of the General meeting, as well as the initiative for convocation.(15) Any notice of convocation shall be posted on the notice board in the building where the management of the association resides not later than one week prior to the appointed date.(16) For the valid transaction of business at any session of the General Meeting, more than one half of all members shall have to be present there, save as otherwise provided for by the Charter. Unless the required quorum is present, the session of the General Meeting shall stand adjourned to a time within one hour thereafter at the same venue and with the same agenda and can be held, with the attendance of whatever number of members have presented themselves, save as otherwise provided for in the Chamber.(17) No member of the General Meeting shall be entitled to vote in determination of any matter affecting the member himself or herself, the spouse thereof, or any lineal relative thereof up to any degree of consanguinity, or any collateral relative thereof up to the fourth degree of consanguinity, or any affine thereof up to the second degree of affinity.(18) A single person may not represent more than three members of the General Meeting by virtue of a written authorization, unless the Charter provides for a different representation quota or for a meeting of delegates. Re-authorization shall be inadmissible.(19) Each member of the General Meeting shall be entitled to one vote. The General Meeting shall pass resolutions by a majority of the members attending.(20) The Manager of the association shall be a natural person who is a member of the association and who shall perform the following functions:1. represent the association;2. ensure implementation of the resolutions of the General Meeting;3. dispose of the property of the association in compliance with the provisions of the Charter;4. prepare a draft budget and lay it before the General Meeting;5. prepare a report on the activities of the association and lay it before the General Meeting;6. make decisions on any matters which by law or according to the Charter do not lie within the competence of the General Meeting;7. discharge any other duties provided for in the Charter.Article 153. (1) All owners and holders of a real right of use in a condominium-project building, who are connected to a subscriber sub-station or to a self-contained branch there from, shall be considered heat consumers and shall be obligated to install share distribution devices referred to in Item 3 of Article 140 (1) herein on the heating units in the properties thereof and to a price for heat under the terms and according to the procedure established in the relevant ordinance referred to in Article 36 (3) herein.(2) (Amended, SG No. 74/2006) Where two thirds of all owners and holders of a real rights of use in a condominium-project building, who are connected to a subscriber sub-station or to a self-contained branch thereof, do not wish to be considered consumers of heat for heating and/or for hot water supply, the said owners and holder shall be obligated to declare this in writing to the heat transmission company and to request disconnection of the heat supply for heating and/or hot water supply from the said subscriber sub-station or from the self contained branch there from.(3) The persons referred to in Paragraph (2) shall be considered heat consumers until the date of disconnection of the heat supply.(4) The heat transmission company shall be obligated to perform the disconnection as requested under Paragraph (2) within fifteen days after receipt of the application.(5) If a heat share distribution system is applied, the consumers in a condominium-project building shall have no right to discontinue the delivery of heat to the heating units in the properties thereof by means of physical disconnection of the said heating units from the building system.(6) (Amended, SG No. 74/2006) Any consumers in a condominium-project building, who discontinue the heat delivery to the heating units in the properties thereof, shall continue to be considered consumers of the heat released by the building system and by the heating units in the common parts of the building.Article 154. (Amended and supplemented, SG No. 74/2006, amended, SG No. 59/2007) In respect of the liabilities of any customers, who are defaulting payers, and of the association referred to in Article 151 (1) herein to the heat transmission company, an enforcement order may be issued under Article 410 (1) of the Code of Civil Procedure, regardless of the amount of the said liabilities. An equalizing bill for the respective year for which the liability applies must have been prepared in respect of the liabilities of any customers with application of a share distribution system, who are defaulting payers.Article 155. (1) (Supplemented, SG No. 74/2006) Heat consumers in a condominium-project building shall pay for the heat consumed using one of the following options available to them:1. (amended, SG No. 74/2006) in ten equal monthly instalments and two equalizing instalments;2. in monthly instalments calculated on the basis of a forecast consumption for the building and one equalizing instalment;3. on the basis of the actual monthly consumption.(2) The rules for calculation of the forecast consumption and equalization of the bills for the quantity of heat actually consumed by each individual consumer shall be established by the ordinance referred to in Article 125 (3) herein.Article 156. (1) Heat shall be measured by means of commercial metering devices owned by the heat transmission company and installed on the property boundary of the facilities.(2) The property boundary of the facilities:1. between the producer and the heat transmission company shall be the last stop valve of the producer;2. between the heat transmission company or the producer and the business consumers shall be the last stop valve upstream of the connecting mains of the consumers;3. between the heat transmission company and the heat consumers in a self-contained building or in a condominium-project building shall be the last stop valve upstream of the distribution network of the building systems.(3) Where the heat is metered by means of commercial metering devices installed on a site other than the property boundary referred to in Paragraph (2), the manner of heat metering shall be regulated according to the ordinance referred to in Article 125 (3) herein.Chapter ElevenPROMOTION OF POWER GENERATION CO-GENERATION(Title amended, SG No. 49/2007) Section IGeneration of Electricity from Renewable Energy Sources(Repealed, SG No. 49/2007)Article 157. (Amended and supplemented, SG No. 74/2006, repealed, SG No. 49/2007). Article 158. (Supplemented, SG No. 74/2006, repealed, SG No. 49/2007). Article 159. (Amended and supplemented, SG No. 74/2006, repealed, SG No. 49/2007). Article 160. (Supplemented, SG No. 74/2006, repealed, SG No. 49/2007). Article 161. (Repealed, SG No. 74/2006) .Section IIGeneration of Electricity by Combined Heat and Power PlantsArticle 162. (1) (Amended and supplemented, SG No. 74/2006, effective 1.07.2007) The public provider and the end suppliers, respectively, shall be obligated to purchase from producers, connected to the respective network, the entire quantity of electricity from high- efficiency combined generation of heat and electricity, registered by a certificate of origin, with the exception of quantities used by the producer for own needs or for which the said producer has concluded contracts according to the procedure established by Section VII of Chapter Nine, or quantities with which the said producer participates on the balancing market.(2) (Amended, SG No. 74/2006) The electricity referred to in Paragraph (1) shall be purchased at preferential prices according to the respective ordinance under Article 36, Paragraph 3.(3) (Amended, SG No. 74/2006) The method for metering the co-generated electricity generated depending on the type of the technological cycle, the requirements for the technical metering and recording devices for co-generated electricity shall be specified by an ordinance of the Minister of Economy and Energy.(4) (New, SG No. 74/2006) The form, content, terms and procedure to issue the certificates of origin for the electricity from combined electricity and heat generation shall be set forth by the ordinance under Article 159, Paragraph 3.Article 162a. (New, SG No. 74/2006) (1) The transmission company and the distribution companies shall perform priority connection of all power plants generating electricity using high-efficiency combined generation, having installed capacity up to 10 MW, to the transmission, and the distribution network, respectively.(2) Any costs required to connect the power plant to the respective network up to the border of ownership of the electric works shall be borne by the producer.(3) Expansion and reconstruction of the transmission and/or distribution network, related to the connection of the power plant under Paragraph 1, shall be carried out by the transmission, and the distribution company, respectively, upon payment of a connection price.(4) In order to implement the expansion and reconstruction of the networks under Paragraph 3, the transmission and/or the distribution company, respectively, may apply for outside financing.Article 163. (Amended, SG No. 74/2006) The criteria, to which the analysis of the national potential for high-efficiency combined generation under Article 4, Paragraph 2, Item 11 shall conform, shall be set forth in the ordinance under Article 162, Paragraph 3.Chapter TwelveGAS SUPPLYSection IGeneral ProvisionsArticle 164. Gas supply is a totality of activities comprehended in the transmission, transit transmission, storage, distribution and delivery of natural gas for the purpose of meeting the demand of consumers.Article 165. The facilities and installations for performance of the activities comprehended in the transmission, storage and distribution of natural gas within the national territory, which are interconnected, shall function within an integral natural gas transmission system with a common mode of operation.Section IINatural Gas Transmission, Transit Transmission, Storage and DistributionArticle 166. Natural gas shall be transmitted and the natural gas transmission network shall be operated by the transmission company licensed under Item 2 of Article 39 (1) herein.Article 167. (1) Transit transmission of natural gas through the national territory to other countries shall be performed by the transmission company.(2) Transit transmission may furthermore be performed by any person licensed under Item 9 of Article 39 (1) herein.Article 168. Natural gas shall be stored and the storage facilities shall be operated by a person licensed under Item 4 of Article 39 (1) herein.Article 169. Natural gas shall be distributed and the distribution works shall be operated by distribution companies licensed under Item 3 of Article 39 (1) herein.Article 170. The transmission company shall ensure:1. integrated management and reliable functioning of the natural gas transmission network;2. transmission of natural gas through the natural gas transmission network and metering of the said gas;3. maintenance of the facilities and installations of the natural gas transmission network in accordance with technical requirements and with safe operation requirements;4. expansion of the gas-transmission network in accordance with long- term forecasts and plans for development of gas supply and outside the framework of such plans, where economically justified;5. maintenance and expansion of the auxiliary networks.Article 171. The distribution company shall ensure:1. management and reliable functioning of the natural gas distribution network;2. distribution of natural gas through the natural gas distribution network and metering of the said gas;3. maintenance of the facilities and installations of the natural gas distribution network in accordance with technical requirements;4. development of the distribution network in accordance with natural gas consumption forecasts adopted by the Commission, and outside the framework of such forecasts where economically justified;5. maintenance and development of the auxiliary natural gas distribution facilities and networks.Article 172. (1) The transmission company and the distribution companies shall be obligated to provide access on non discriminatory terms to the transmission network and/or the distribution networks thereof to persons responsive to conditions set in rules adopted by the Commission.(2) The transmission company or the distribution company, as the case may be, may refuse to provide access for lack of capacity or in case the provision of access would lead to breach of the technical conditions and the security of networks or would prevent the companies from fulfilling the public service obligations thereof, or if provision of access would result in substantial economic and financial difficulties to the transmission company or to the distribution company, as the case may be, as a result of contracts for delivery concluded with a "take or pay" clause.Article 172a. (New, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) (1) The public provider, the public supplier, the end supplier and the merchant may file a request to the Commission for temporary relief of the transmission or distribution company of its obligation to grant access under Article 172, Paragraph 1 in cases when granting such access would lead to serious economic and financial difficulties resulting from "take or pay" agreements executed before this Act becomes effective.(2) The request under Paragraph 1 shall be submitted for each separate case before or immediately after the denial of access to the system.(3) The request under Paragraph 1 shall be accompanied by detailed information on the type and scope of the economic and financial difficulties, and the measures taken to overcome them.(4) The Commission shall grant the temporary relief under Paragraph 1 upon lack of any other economically feasible option to grant access and upon taking into consideration the following criteria:1. fulfilment of obligations to the public and ensuring the safety of supply;2. the company's position on the gas market and the actual state of competition on this market;3. the degree of economic and financial difficulties;4. the contract terms and conditions;5. the measures taken to overcome the difficulties;6. the degree to which, upon accepting the "take or pay" obligations, the company has been able to predict, under the provisions of this Act, the occurrence of serious difficulties;7. the level of connectivity of the system to other systems and the degree of interaction of these systems;8. the consequences of the temporary relief for the efficient application of the provisions of this Act, related to the development of a competitive market for natural gas.(5) The Commission decision under Paragraph 4 shall be motivated.(6) There shall be no serious difficulties under Paragraph 1, when:1. natural gas sales have not fallen under the level of the minimum contracted quantities on "take or pay" gas purchase contracts;2. the terms of the respective "take or pay" gas purchase contract may be renegotiated.(7) The Commission shall notify the European Commission immediately on any effective temporary relief decision under Paragraph 4 and shall send the required information.(8) Upon request by the European Commission, the Commission may, within 28 days, to amend or repeal its decision under Paragraph 4, and shall notify the European Commission thereof.(9) The Commission shall notify the European Commission in all cases, when the Commission does not amend or repeal its decision under Paragraph 8. In this case, the temporary relief shall be decided by the European Commission.Article 172b. (New, SG No. 74/2006, effective 1.07.2007) (1) Gas storage operators shall grant access to natural gas storage facilities to transmission and distribution network operators, the public provider, the public suppliers, the end suppliers, the natural gas merchants and the eligible consumers on equal-treatment basis.(2) Gas storage operators may deny access:1. for lack of capacity;2. if granting access would result in compromising the technical conditions and safety of the facilities;3. if granting access would prevent operators from fulfilling their public service obligations.Article 172c. (New, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) (1) Upon any significant changes for the development of the transmission network, the distribution networks in a self-contained area under Article 43, Paragraph 5, and in order to promote investment, the Minister of Economy and Energy, per request from the interested parties, may submit a request to the European Commission for temporary relief from the application within this area of any provisions under Article 37 and Article 48, Chapter Four, Article 172, Paragraph 1, and Article 197, Paragraph 2.(2) The Minister of Economy and Energy shall evaluate the grounds for the request under Paragraph 1 upon taking into account the following criteria:1. need for infrastructure investment, which in a competitive market environment would not be economically feasible;2. rate of return of the needed investment;3. size and age of the gas system at the self-contained area;4. prospects for the respective gas market development;5. size, location, features, social-economic and demographic factors at the self-contained area.(3) For newly-built transmission networks, a temporary relief may be granted only if within the self-contained area there are no other such networks or if the existing ones have been built no more than 10 years ago. In these cases, the relief may not be for more than 10 years, commencing on the date of the first delivery of natural gas to the self-contained area.(4) For distribution networks, a temporary relief may be granted for a period of no more than 20 years since the first delivery of natural gas to the self-contained area.(5) The Minister of Economy and Energy shall make a decision on the request within three months, and immediately after the act accepting the request as reasonable becomes effective shall submit a request for temporary relief to the European Commission.Section IIINatural Gas TransactionsArticle 173. (1) Transactions in natural gas shall be effected on the basis of written contracts in compliance with the provisions of this Act and of the natural gas trading rules adopted by the Commission.(2) The rules referred to in Paragraph (1) shall specify the manner of administering transactions in natural gas.Article 174. Transactions in natural gas shall be delivery, transmission through a transmission network and distribution networks, and storage of natural gas.Article 175. The following may be parties to transactions in natural gas:1. a public provider of natural gas;2. (repealed, SG No. 74/2006, effective 1.07.2007) ;3. gas extraction companies;4. gas storage operators;5. a transmission company;5a. (new, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) a combined operator;6. a distribution company;7. natural gas traders;8. eligible consumers;9. consumers other than eligible consumers.10. (new, SG No. 74/2006, effective 1.07.2007) a natural gas end supplier;11. (new, SG No. 74/2006, effective 1.07.2007) end supplier customer consumers.Article 176. (1) Gas extraction companies may conclude natural gas delivery transactions with the public provider of natural gas, with the public supplier of natural gas, with storage operators, with natural gas traders and with eligible consumers.(2) Gas extraction companies may conclude natural gas transmission transactions with the transmission company and the distribution company.(3) Gas extraction companies may conclude natural gas storage transactions with the natural gas storage operators.(4) Gas extraction companies and natural gas consumers referred to in Article 175 (8) and (9) herein inside and outside Bulgaria may construct direct gas pipelines between each other and may conclude contracts for delivery of natural gas through the said gas pipelines.Article 176a. (New, SG No. 74/2006) The extraction companies, the public natural gas provider, the public natural gas suppliers, the end suppliers, the gas storage operators, the natural gas merchants and the eligible consumers may execute natural gas supply transactions with resident persons of a European Union member country, or persons registered in a country, with which the Republic of Bulgaria has an agreement under an international act for mutual application of the respective European Communities law:1. when the extraction companies, the public natural gas provider, the public natural gas suppliers, the end suppliers, the gas storage operators, the natural gas merchants and the eligible consumers are entitled to free trade in natural gas under the law of the other country, and2. on conditions of mutuality, when the law of the other country makes a provision for free trade in natural gas for its eligible consumers.Article 177. (1) (Supplemented, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The public provider of natural gas shall be a legal person registered under the Commerce Act or under the law of a European Union member country, or under the law of another country party to the European Economic Area Agreement, which may conclude natural gas delivery transactions with gas extraction companies, with natural gas traders, with public suppliers of natural gas, with eligible consumers and with consumers directly connected to the transmission network.(2) The public provider of natural gas may conclude natural gas transmission transactions with the transmission and distribution companies.(3) The public provider of natural gas may conclude natural gas storage transactions with the gas storage operators.(4) (Repealed, SG No. 74/2006, effective 1.07.2007) .Article 178. (1) (Supplemented, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The public suppliers of natural gas shall be legal persons registered under the Commerce Act or under the law of a European Union member country, or under the law of another country party to the European Economic Area Agreement, which conclude natural gas delivery transactions with end consumers connected to the natural gas distribution network for the area for which the said suppliers are licensed.(2) (Repealed, SG No. 74/2006, effective 1.07.2007).Article 178a. (New, SG No. 74/2006, effective 1.07.2007) The end supplier shall be any person, licensed for its activity, providing natural gas supply to household consumers and companies with less than 50 employees and less than 19.5 mil. BGN annual turnover, according to the rules under Article 21, Paragraph 1, Item 8.Article 178b. (New, SG No. 55/2007) The delivery of natural gas by the public provider and by the end suppliers shall be a universal service within the meaning given by this Act.Article 179. (1) A natural gas trader may be any Bulgarian or foreign legal person registered as a merchant under the Commerce Act or under the national legislation thereof.(2) (Amended, SG No. 74/2006) Outside the cases under Article 176a, natural gas traders shall conclude natural gas transactions with gas extraction companies inside or outside Bulgaria, with eligible consumers, with other natural gas traders, with the public provider of natural gas and with the natural gas storage operators.Article 180. (1) Eligible consumers shall be natural gas consumers responsive to certain eligibility conditions specified in the rules referred to in Article 173 (1) herein and having the right to choose the persons wherefrom to purchase natural gas inside and/or outside Bulgaria.(2) Eligible consumers shall be obligated to notify the transmission company and/or the distribution company in advance of any natural gas contracts concluded thereby according to a procedure and in a form established in the rules referred to in Article 173 (1) herein.(3) The transmission company and/or the distribution company shall meter the natural gas consumed according to a procedure and a method specified in the rules referred to in Article 173 (1) herein.Article 181. Natural gas contracts shall be concluded:1. at prices regulated by the Commission for universal services of natural gas transmission, distribution and delivery;2. at prices freely negotiated between the parties on an organized market, administered and managed by the transmission system operator, under the terms and according to the rules referred to in Article 173 (1) herein.Article 182. (1) Gas extraction companies, natural gas traders and eligible consumers shall conclude natural gas transactions between each other at freely negotiated prices.(2) The parties referred to in Paragraph (1) and the transmission company may furthermore conclude natural gas market balancing transactions under terms, according to a procedure and according to rules for price formation of natural gas intended for balancing, as provided for in the rules referred to in Article 173 (1) herein.Article 183. (Repealed, SG No. 74/2006, effective 1.07.2007).Article 183a. (New, SG No. 74/2006, effective 1.07.2007) (1) The end supplier shall sell natural gas on publicly known general conditions.(2) The general conditions shall include:1. the conditions on supply quality;2. information, provided by the supplier;3. term of validity of the contract;4. the energy company liability for any violation of the general terms.(3) The end supplier shall publish the general terms in at least one national and one local daily publication.(4) The published general conditions shall become effective for all consumers, buying natural gas from an end supplier, without the need for express written acceptance.Article 183b. (New, SG No. 74/2006, effective 1.07.2007) (1) End supplier's consumers shall execute an agreement with the distribution company on the transmission through distribution networks of the natural gas consumed by them on publicly known general conditions.(2) The general conditions shall include:1. the conditions on supply quality;2. the terms for supply termination or suspension;3. liability incurred by the energy company in the event of unwarranted suspension or poor quality of supply.(3) The distribution company shall publish the general conditions in at least one national and one local daily publication.(4) The published general conditions shall become effective for all consumers, buying natural gas from an end supplier, without the need for express written acceptance.Article 184. (Amended and supplemented, SG No. 74/2006, effective 1.07.2007, amended, SG No. 59/2007) The public provider, the public suppliers, and the end suppliers of natural gas shall have the option to move for the issuance of an enforcement order under Article 410 (1) of the Code of Civil Procedure for the receivables thereof for supply of natural gas regardless of the amount of the said receivables.Section IVOperational ManagementArticle 185. (1) The centralized operational management, the coordination and control of the mode of operation of the natural gas transmission network shall be performed by the transmission network operator.(2) Operational management of each distribution network shall be performed by the distribution network operator.(3) (Supplemented, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The directives of the natural gas transmission network operator shall be mandatory for the natural gas distribution network operators, the consumers, the gas extraction companies and the gas storage operators connected to the transmission network, and for the other companies in the vertically integrated company, in cases when the combined operator is part of a vertically integrated company.(4) The natural gas transmission network operator shall be a specialized unit within the structure of the transmission company.(5) The natural gas distribution network operators shall be specialized units within the structure of distribution companies.Article 186. (1) The transmission network operator shall ensure:1. reliable, safe and efficient functioning of the natural gas transmission network;2. maintenance of a balance between import, extraction and consumption of natural gas;3. transmission of natural gas through the natural gas transmission network in compliance with quality requirements;4. non-discrimination of consumers upon transmission of natural gas;5. secure and efficient functioning of auxiliary networks;6. operational management of the modes of operation of storage facilities during injection of natural gas under pressure and extraction of natural gas;7. optimum mode of operation of the transmission network upon performance of the activity comprehended in the transit transmission of natural gas.(2) The transit transmission network operator shall ensure:1. reliable, safe and efficient functioning of the transit transmission network;2. transit transmission of natural gas through the transit transmission network;3. secure and efficient functioning of auxiliary networks and facilities;4. operational management of the modes of operation of storage facilities upon injection of natural gas under pressure and extraction of natural gas.Article 186a. (New, SG No. 74/2006) (1) When the combined operator is part of a vertically integrated company, its activities shall be independent in terms of legal organisational form and decision making from the other activities, not related to transmission, transit transmission, and storage.(2) In order to ensure the operator's independence under Paragraph 1, any persons responsible for the management, including operational management of the combined operator:1. may not take part in the management of the other companies in the vertically integrated company, performing extraction, distribution, public delivery, public supply and trade in natural gas;2. shall take independent decisions in the course of their duties under this Act;3. shall not allow discriminatory actions in the course of their duties under this Act;(3) The combined operator shall prepare a programme, setting forth measures to achieve the goal under Paragraph 1 and Paragraph 2, containing specific obligations for the employees for its implementation. The combined operator shall designate an employee, responsible for the control over this programme's implementation.(4) The combined operator shall prepare an annual report on all measures under Paragraph 3, which shall be presented to the Commission by the designated employee and shall be published in the bulletin under Article 15, Paragraph 1.Article 187. (1) For the purposes of metering of natural gas, the transmission network operator shall ensure:1. technical and metrological support, development and modernization of the commercial metering devices for the quantity of natural gas entering and leaving the transmission system;2. maintenance of a data base with the readings of commercial metering devices of the quantity of natural gas referred to in Item 1 and under transactions at freely negotiated prices and on the balancing market.(2) The owners of natural gas commercial metering devices shall submit to the transmission network operator the readings taken by such devices regarding the transactions at freely negotiated prices and balancing transactions in natural gas.(3) Parties to natural gas transactions shall have the right to receive information from the data base regarding the quantities of natural gas traded by the said parties under the transactions.(4) The terms and procedure for maintenance of the commercial metering devices, maintenance of the data base and access thereto shall be regulated by the rules referred to in Article 173 (1) herein.Article 188. The natural gas transmission network operator shall administrate natural gas transactions at freely negotiated prices and shall organize the balancing of the natural gas market in accordance with the rules referred to in Article 173 (1) herein and, to this end shall:1. keep registers of the persons concluding transactions at freely negotiated prices and for balancing the natural gas market;2. keep registers of the contracts concluded between the persons referred to in Item 1;3. receive, arrange on priority lists according to price and technological criteria, and dispatch proposals and orders for purchase/sale for balancing the natural gas market;4. apply a method for computation and fix balancing natural gas prices for each settlement period;5. prepare advance and final notices of the amounts due for natural gas market balancing transactions from the participants for each settlement period;6. control the financial security of natural gas market balancing transactions and issue mandatory instructions to market participants in connection with this;7. have the right, upon occurrence of circumstances endangering the security of operation of the natural gas transmission system or of parts thereof, to suspend the performance of transactions or to change the quantities of natural gas contracted there under, under terms and in a manner described in the rules referred to in Article 173 (1) herein;8. provide information regarding forecast consumption of natural gas, transmission system limitations, references about natural gas prices upon market balancing in prior periods, and other information as may be required by the participants.Article 189. (1) The transmission company shall be party to all natural gas market balancing transactions.(2) The transmission company shall generate no profit from any transactions referred to in Paragraph (1).(3) The costs of performance of the functions referred to in Article 188 herein shall be allowed as economically justified costs under Item 2 of Article 31 herein.Article 190. Distribution network operators shall ensure:1. reliable, safe and efficient functioning of the distribution network;2. distribution of natural gas to consumers while in compliance with security and quality requirements;3. secure and efficient functioning of the auxiliary networks;4. non-discrimination of consumers upon natural gas distribution.Article 190a. (New, SG No. 74/2006) (1) When the distribution company is part of a vertically integrated company, its activities shall be independent in terms of legal organisational form and decision making from the other activities, which are not related to distribution.(2) In order to ensure the distribution company's independence under Paragraph 1, any persons responsible for the management, including operational management of the gas distribution networks:1. may not take part in the management of the other companies in the vertically integrated company, performing extraction, transmission, public delivery, public supply and trade in natural gas;2. shall take independent decisions in the course of their duties under this Act;3. shall not allow discriminatory actions in the course of their duties under this Act;(3) The distribution company shall prepare a programme, setting forth measures to achieve the goal under Paragraph 1 and Paragraph 2, containing specific obligations for the employees for its implementation. The distribution company shall designate an employee, responsible for the control over this programme's implementation.(4) The distribution company shall prepare an annual report on all measures under Paragraph 3, which shall be presented to the Commission by the designated employee and shall be published in the bulletin under Article 15, Paragraph 1.(5) Provisions in Paragraphs 1-4 shall not apply to vertically integrated natural gas companies, when less than 100 000 end users of natural gas are connected to the respective distribution network.Article 191. (Amended, SG No. 74/2006) Transmission and distribution network operators shall be obligated to respect the confidentiality of any information, which constitutes commercial secret, obtained in the course of or in connection with the fulfilment of the obligations thereof, as well as provide information related to their activities in a non-discriminatory manner.Article 192. The terms and procedure for the performance of the activities of transmission and distribution network operators shall be established by an ordinance of the Minister of Energy and Energy Resources.Section VNatural Gas MeteringArticle 193. Natural gas shall be transmitted through a natural gas transmission network using high-pressure gas pipelines to the outlets of natural gas metering stations or natural gas regulation stations.Article 194. Natural gas shall be distributed through the natural gas distribution network from the outlets of natural gas metering stations or from outlets of natural gas regulation stations of the transmission network to the consumer natural gas metering device.Article 195. (1) The quantity of natural gas destined for consumers connected to the transmission network shall be metered by means of commercial metering devices which are owned by the transmission company.(2) The quantity of natural gas destined for consumers connected to the distribution network shall be metered by means of commercial metering devices owned by the distribution company.(3) The quantity of natural gas destined for storage shall be metered by means of commercial metering devices owned by the company licensed for natural gas storage.(4) Natural gas consumers or owners on the properties whereof the commercial metering devices are installed shall be obligated to provide access to the said devices to authorized representatives of the public supplier for installation and inspection, reading and maintenance of the metering devices under terms stipulated in the general conditions referred to in Article 183 herein.(5) Transmission network operators, distribution network operators and/or storage facility operators shall determine the location and type of the commercial metering devices to be installed.Section VIConnection to Natural Gas Pipeline NetworkArticle 196. (1) Connection to the transmission and distribution networks shall be established under terms and according to a procedure established in an ordinance on connection, issued by the Minister of Energy and Energy Resources.(2) Connection to the natural gas transmission network and/or to the natural gas distribution network of extraction companies, natural gas storage companies, distribution companies and end consumers shall be established at prices fixed according to the procedure established by the relevant ordinance referred to in Article 36 (3) herein and on the basis of a written contract concluded between the transmission company or the distribution companies, as the case may be, and the connecting persons.Article 197. (1) The transmission company shall be obligated to connect to the network thereof, at an interconnection point designated thereby, the distribution companies, extraction companies, and natural gas storage companies.(2) Eligible natural gas consumers may also be connected to the transmission network through direct connecting gas pipelines.(3) The transmission company may refuse to establish connection to the network where:1. there is lack of capacity of the network, or2. there is lack of a link with the network, and3. improvement of the network is economically unjustified.(4) In case of a refusal under Paragraph (3), the extraction companies, the natural gas storage companies and the eligible natural gas consumers may construct, for their own account, the respective link with the transmission network.(5) The owner of the connecting gas pipeline shall be obligated to ensure the servicing, maintenance and repair of the said gas pipeline.(6) The transmission company may service, maintain and repair the connecting gas pipelines at the request of the owner and against payment.(7) Consumers connected to the natural gas transmission network shall be obligated to provide the relevant licensed natural gas distribution company access through their own facilities for the purposes of natural gas transmission to other consumers within the area specified in the licence. The price for the access provided shall be fixed according to a method approved by the Commission.Article 198. Distribution companies shall be obligated to build the distribution network thereof for their own account up to the interconnection point designated by the transmission company.Article 199. (1) The distribution company shall be obligated to connect and to ensure the supply of natural gas to consumers on non-discriminatory conditions and in compliance with technical requirements for reliable and safe operation.(2) By authorization of the Commission, the distribution company may connect a natural gas consumer located within the area of another distribution company where this is technically and economically advisable and is in the interest of consumers.(3) The branches and the facilities for connecting consumers to the relevant distribution network shall be constructed by the distribution company.Article 200. (1) (Amended, SG No. 95/2005) The layout and safe operation of the transmission and distribution gas pipelines, of the natural gas facilities, installations and appliances, shall be regulated by an ordinance adopted by the Council of Ministers on a motion by the Minister of Energy and Energy Resources and the Chairperson of the State Agency for Metrological and Technical Surveillance.(2) The technical rules and standard specifications for design, construction and use of the facilities and installations for natural gas transmission, storage, distribution and delivery shall be determined by an ordinance of the Minister of Regional Development and Public Works and the Minister of Energy and Energy Resources.(3) (Amended, SG No. 95/2005) The layout and safe operation of oil pipelines and petroleum product pipelines within the territory of the Republic of Bulgaria shall be stipulated in an ordinance adopted by the Council of Ministers on a motion by the Minister of Energy and energy Resources and the Chairperson of the State Agency for Metrological and Technical Surveillance.Chapter ThirteenCOERCIVE ADMINISTRATIVE MEASURESArticle 201. (1) The Commission or the Minister of Energy and Energy Resources shall impose the measures covered under Paragraph (2) if they establish that the legal persons controlled under this Act, the employees thereof or persons who, under contract, perform managerial functions therein or conclude transactions for their account, have committed or are committing any acts whereby:1. they violate any provisions of this Act, of the statutory instruments of secondary legislation on the application thereof, of acts issued by the Commission and by the Minister of Energy and Energy Resources;2. they endanger the security of the energy system, public interests, or interests of electricity, heat and natural gas consumers or of other energy companies;3. they breach the conditions for performance of the licensed activity;4. they obstruct the exercise of control activities by the Commission or by the Minister of Energy and Energy Resources.(2) In the cases covered under Paragraph (1), for the purpose of prevention or cessation of the violations, as well as for elimination of the harmful consequences of such violations, the Commission or the Minister of Energy and Energy Resources or persons authorized thereby, each acting according to the competence vested therein, shall impose the following coercive administrative measures:1. issue mandatory written instructions:(a) to cease the performance of particular actions or to mandatorily undertake such actions within a prescribed time limit;(b) to conduct expert assessments, inspections, tests of facilities and installations, parts thereof, systems or components;(c) to change operating conditions of energy works, parts thereof, systems or components;(d) to modify designs and structures relevant to the safety of persons and networks;(e) to certify the staff, including testing of knowledge and skills, organizing training and qualification courses;2. to order the licensee to convene a general meeting and/or to schedule a meeting of the management or supervising bodies with a preset agenda for making decisions on the measures that have to be taken;3. direct in writing a suspension or limitation of the licensed activity;4. appoint a special manager in the cases provided for in this Act.(3) The act whereby a coercive administrative measure is imposed shall establish an appropriate time limit for the execution thereof. Coercive administrative measures shall be applied until elimination of the reasons that led to the imposition of such measures.Article 202. (1) The proceedings for imposition of coercive administrative measures shall be initiated by the Commission or by Minister of Energy and Energy Resources, acting on a memorandum of ascertainment drafted by the persons entitled to exercise control under this Act.(2) The persons concerned shall be notified of the initiation of proceedings for imposition of coercive administrative measures.(3) Any notifications and the communications in the proceedings referred to in Paragraph (1) may furthermore be effected by means of registered mail with advice of delivery, by telegraph, teleprinter or facsimile machine.Where effected by means of registered mail with advice of delivery or by telegraph, notification or communication shall be certified by an advice of delivery, where effected by means of telephone call, notification or communication shall be certified in writing by the official who made the call, or where effected by means of teleprinter or facsimile machine, notification or communication shall be certified by confirmation in writing of a message sent.(4) Should any notification or communication in the proceedings referred to in Paragraph (1) be not received at the address, telephone, telex or facsimile number as named by the persons, the said notification or communication shall be deemed effected by the posting thereof in a place expressly provided for this purpose in the building of the Commission or of the Ministry of Energy and Energy Resources.Any such posting shall be attested by a memorandum drafted by officials designated by an order of the Chairperson of the Commission or by the Minister of Energy and Energy Resources.(5) Coercive administrative measures shall be imposed with a reasoned written decision or by an order which shall be communicated to the person concerned within seven days after rendition.Article 203. (1) Any decision referred to in Article 202 (5) herein shall be appealable before the Supreme Administrative Court care of the Commission or care of the Minister of Energy and Energy Resources within fourteen days after communication of the said decision.(2) Any decision or any order imposing a coercive administrative measure shall be subject to immediate execution.(3) An appeal against any decision imposing a coercive administrative measure shall not stay the execution of the said decision.Article 204. Save insofar as any specific rules are provided for in this Chapter, the provisions of the Administrative Procedure Code shall apply.Chapter FourteenADMINISTRATIVE PENALTY PROVISIONSArticle 205. (1) Any person, who performs or suffer the performance of any activities under this Act without a licence in the case where a licence is required, shall be liable to a fine of BGN 50,000 or exceeding this amount but not exceeding BGN 100,000, unless subject to a severer sanction.(2) Where the violations referred to in Paragraph (1) have been committed by a legal person or a sole trader, a pecuniary penalty of BGN 100,000 or exceeding this amount but not exceeding BGN 150,000 shall be imposed.(3) A repeated violation shall be punishable by a fine or a pecuniary penalty, as the case may be, equivalent to treble the maximum amount of the fine or pecuniary penalty, as the case may be, as fixed under Paragraphs (1) and (2).Article 206. (1) (Amended, SG No. 49/2007) Any energy company, which breaches the conditions of a licence issued thereto, shall be liable to a pecuniary penalty of BGN 20,000 or exceeding this amount but not exceeding BGN 1,000,000.(2) A repeated violation shall be punishable by a pecuniary penalty equivalent to treble the maximum amount of the pecuniary penalty as fixed under Paragraph (1).Article 207. (1) Any energy company, which refuses in non conformity with the law:1. to establish a connection to the relevant energy networks;2. to conclude a contract for sale of electricity, heat or natural gas;3. (amended, SG No. 49/2007) to provide access to electricity and natural gas transmission or distribution networks, shall be liable to a pecuniary penalty of BGN 20,000 or exceeding this amount but not exceeding BGN 1,000,000.(2) A repeated violation shall be punishable by a pecuniary penalty equivalent to treble the maximum amount of the pecuniary penalty as fixed under Paragraph (1).Article 208. (1) (Amended, SG No. 49/2007) Any energy company, which fails to submit the required information in the cases provided for in this Act, shall be liable to pecuniary penalty of BGN 10,000 or exceeding this amount but not exceeding BGN 100,000.(2) A repeated violation shall be punishable by a pecuniary penalty equivalent to treble the maximum amount of the pecuniary penalty as fixed under Paragraph (1).Article 209. (1) Any consumer, who or which fails to provide access to the own fixtures and facilities under the terms established by Article 117 (7) and Article 197 (7) herein, shall be liable to a fine of BGN 1,000 or exceeding this amount but not exceeding BGN 5,000 or to a pecuniary penalty of BGN 7,000 or exceeding this amount but not exceeding BGN 20,000.(2) A repeated violation shall be punishable by a fine or a pecuniary penalty, as the case may be, equivalent to treble the maximum amount of the fine or pecuniary penalty, as the case may be, as fixed under Paragraph (1).Article 210. (1) (Amended, SG No. 49/2007) Any person covered under Article 30 (1) herein, which sells electricity, heat or natural gas at prices subject to regulation without such prices having been endorsed or fixed by the Commission or at prices higher than the prices endorsed or fixed by the Commission according to Article 30 herein, shall be liable to a pecuniary penalty of BGN 20,000 or exceeding this amount but not exceeding BGN 1,000,000.(2) A repeated violation shall be punishable by a pecuniary penalty equivalent to treble the maximum amount of the pecuniary penalty as fixed under Paragraph (1).Article 211. (1) (Amended, SG No. 49/2007) Any energy company, which fails to comply with the technical standards or requirements for operation of energy works or the standards for building and storage of stocks of fuels by electric power and/or heat generation plants, shall be liable to a pecuniary penalty of BGN 20,000 or exceeding this amount but not exceeding BGN 1,000,000.(2) A repeated violation shall be punishable by a pecuniary penalty equivalent to treble the maximum amount of the pecuniary penalty as fixed under Paragraph (1).Article 212. (Amended, SG No. 74/2006, repealed, SG No. 49/2007). Article 212a. (New, SG No. 74/2006) (1) Any legal person or a sole trader, who, in violation of Article 139a, Paragraph 1, performs share distribution activities in violation of the registration regime, shall be liable to a pecuniary penalty between BGN 5,000 and BGN 10,000.(2) Upon any recurring violation, the pecuniary penalty shall be three times the maximum amount of the penalty under Paragraph 1.Article 213. (1) (Amended, SG No. 74/2006) Any person, who fails to comply with the technical conditions and procedure set for heat supply, for disconnection of heat supply and the rules for share distribution of heat under Article 125 (3) herein, shall be liable to a pecuniary penalty of BGN 10,000 or exceeding this amount but not exceeding BGN 25,000.(2) A repeated violation shall be punishable by a pecuniary penalty equivalent to treble the maximum amount of the pecuniary penalty as fixed under Paragraph (1).Article 214. (Amended, SG No. 74/2006) (1) A fine of BGN 1000 or exceeding this amount but not exceeding BGN 5000 shall be imposed on any person, unless subject to a severer sanction:1. who disrupts the normal electricity supply, heat supply or natural gas supply;2. who causes the introduction of a scheduled outage regime;3. who uses heat without the quantities thereof being metered by means of a commercial metering device and/or without having such heat distributed thereto upon share distribution, or who alters the readings of commercial metering and recording devices, or who impedes the proper functioning of such devices.(2) A repeated violation under Paragraph (1) shall be punishable by a fine equivalent to double the maximum amount of the fine referred to in Paragraph (1).Article 215. (1) Any person, who obstructs with the performance by officials and control authorities of the obligations thereof under this Act, shall be liable to a fine of BGN 100 or exceeding this amount but not exceeding BGN 200, unless the act constitutes a criminal offence.(2) Any person, who fails to perform the prescriptions of the officials or of the control authorities or who tolerates non performance of such prescriptions, shall be liable to a fine of BGN 500 or exceeding this amount but not exceeding BGN 1,000 unless subject to a severer sanction.(3) Any person, who or which fails to comply with an effective decision of the commission, shall be liable to a fine of BGN 3,000 or exceeding this amount but not exceeding BGN 10,000 or to a pecuniary penalty of BGN 20,000 or exceeding this amount but not exceeding BGN 60,000.Article 216. (Amended, SG No. 49/2007) Any official, who fails to fulfil the obligations under this Act, shall be liable to a fine of BGN 1,000 or exceeding this amount but not exceeding BGN 5,000, unless subject to a severer sanction.Article 217. A repeated violation under Articles 215 and 216 herein shall be punishable by a fine equivalent to treble the maximum amount of the fine or pecuniary penalty.Article 218. (1) Any violation under Article 214 herein, which is committed by a legal person or by a sole trader, shall be punishable by a pecuniary penalty of BGN 5,000 or exceeding this amount but not exceeding BGN 10,000.(2) A repeated violation shall be punishable by a pecuniary penalty equivalent to quintuple the maximum amount of the pecuniary penalty as fixed under Paragraph (1).Article 219. (1) (Amended, SG No. 49/2007) Any official in an energy company, who suffers the commission of any violation covered under Articles 206, 207, 210, 211 herein, shall be liable to a fine of BGN 1,000 or exceeding this amount but not exceeding BGN 8,000.(2) A repeated violation under Paragraphs (1) to (4) shall be punishable by a fine equivalent to treble the maximum amount of the fine referred to in Paragraph (1).Article 220. (1) Any person, who shall fail to act or who shall suffer another to fail to act on a directive of an operator referred to in Article 109 (2), Article 113 (2), Article 131 (3) and Article 185 (3) herein, shall be liable to a fine of BGN 500 or exceeding this amount but not exceeding BGN 5,000.(2) Any violation under Paragraph (1), which is committed by a legal person or by a sole trader, shall be punishable by a pecuniary penalty of BGN 10,000 or exceeding this amount but not exceeding BGN 20,000.(3) A repeated violation shall be punishable by a fine or a pecuniary penalty, as the case may be, equivalent to treble the maximum amount of the fine or pecuniary penalty, as the case may be, as fixed under Paragraph (1) or (2).Article 221. (1) Any energy company, whereof an operator fails to comply with Article 73 (2) herein, shall be liable to a pecuniary penalty of BGN 20,000 or exceeding this amount but not exceeding BGN 50,000.(2) A repeated violation shall be punishable by a pecuniary penalty equivalent to treble the maximum amount of the pecuniary penalty as fixed under Paragraph (1).Article 222. (1) Any electricity, heat or natural gas consumer, who fails to fulfil the obligation thereof under Article 117 (7), Article 138 (3) and Article 197 (7) herein, shall be punishable by a fine of BGN 500 or exceeding this amount but not exceeding BGN 5,000.(2) Any violation under Paragraph (1), which is committed by a legal person or by a sole trader, shall be punishable by a pecuniary penalty of BGN 30,000 or exceeding this amount but not exceeding BGN 50,000.(3) A repeated violation shall be punishable by a fine or a pecuniary penalty, as the case may be, equivalent to treble the maximum amount of the fine or pecuniary penalty, as the case may be, as fixed under Paragraph (1) or (2).Article 223. Any person, who violates any mandatory provisions of the statutory instruments on application of this Act, shall be sanctioned by the administrative sanctioning authority by a fine of BGN 500 or exceeding this amount but not exceeding BGN 1,000, unless subject to a severer sanction, or by a pecuniary penalty of BGN 5,000 or exceeding this amount but not exceeding BGN 10,000.Article 224. Any person referred to in Article 79 (1) herein, who discloses, provides, publishes, uses or disseminates in any other manner any data and circumstances constituting an official secret, shall be liable to a fine of BGN 2,000 or exceeding this amount but not exceeding BGN 5,000.Article 224a. (New, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) (1) Any energy company failing to comply with the requirements of Article 3, Paragraphs 2, 3, and 6, Article 4, Article 5, Article 6, Paragraphs 1, 2, 3, 5, and 6 of Regulation 1228/2003/EC of the European Parliament and the Council on conditions for access to the network for cross-border exchanges in electricity, shall be liable to a pecuniary penalty between BGN 10,000 and BGN 60,000.(2) Upon any recurring violation, the pecuniary penalty shall be double the maximum amount of the penalty under Paragraph 1.Article 224b. (New, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) (1) Any energy company failing to comply with the requirements of Article 4, Article 5, Paragraphs 2, 3, 4 and5, and Article 6, Article 7, Paragraph 6, and Article 8 of 1775/2005/EC of the European Parliament and the Council on conditions for access gas transmission networks, shall be liable to a pecuniary penalty between BGN 10,000 and BGN 60,000.(2) Upon any recurring violation, the pecuniary penalty shall be double the maximum amount of the penalty under Paragraph 1.Article 225. (1) The violations under this Act shall be ascertained by statements drawn up by the persons referred to in Item 1 of Paragraph (1) and Item 1 of Paragraph (2) of Article 77 herein.(2) (Amended, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union, SG No. 49/2007) The penalty decrees under Articles 205, 206, 207, 208, 209, 210, 215, 216, 217, 218, 219, 222, 223 and 224, 224a и 224b herein shall be issued by the Chairperson of the Commission or by an official authorized by the Commission.(3) The penalty decrees under Articles 211, 213, 214, 215, 216, 217, 218, 219, 220, 221, 223 and 224 herein shall be issued by the Minister of Energy and Energy Resources or by an official authorized thereby.(4) Violations shall be ascertained, and penalty decrees shall be issued, appealed and executed under the terms and according to the procedure established by the Administrative Violations and Sanctions Act.(5) Pending the issuance of a penalty decree, the person affected by the administrative violation may approach the administrative sanctioning authority with a request for compensation for the damages sustained by the said person to an amount not exceeding BGN 20,000.SUPPLEMENTARY PROVISION 1. Within the meaning given by this Act:1. "Subscriber sub-station" shall be a fixture whereby heat is delivered, metered, transformed and regulated as to parameters from the heat transmission network to consumers.1a. (New, SG No. 74/2006) "Balancing group" shall be any group comprised of one or more electricity merchants, network users or owners, organised under the requirements of the rules under Article 91, Paragraph 2.2. (Amended, SG No. 74/2006) "Balancing energy" shall be the active energy which the electric power grid operator activates to compensate the difference between the agreed and the actual delivery schedules registered at the operator, as well as the fluctuations of loads without agreed delivery schedule.3. (Supplemented, SG No. 74/2006, repealed, SG No. 49/2007). 3a. (New, SG No. 74/2006) A "vertically integrated company" shall be any energy company or interrelated energy companies, conducting at least one activity of transmission, distribution, storage activity and at least one activity of production/extraction, public delivery, public supply or trade in electricity or natural gas, when one of the companies is capable of controlling other(s) or exercising influence in decisions related to above activities.4. (Amended, SG No. 74/2006) "Universal service" shall be the transport, delivery, or supply of energy of a particular quality, at a regulated price and under other agreed conditions, which may not be refused for reasons not specified in the Act.5. "High-efficiency combined generation of heat and electricity by thermoelectric power plants" shall be such generation performed by plants:(a) constructed after the entry of this Act into force, where the said generation of heat and electricity leads to saving of not less than 10 per cent of the fuel necessary for the separate generation of an identical quantity of heat and electricity;(b) constructed before the entry of this Act into force, where the said generation of heat and electricity leads to saving of not less than 5 per cent of the fuel necessary for the separate generation of an identical quantity of heat and electricity;(c) using renewable energy sources and/or with unit electricity generating capacity of up to 1 megawatt, where the said generation of heat and electricity leads to saving of up to 5 per cent of the fuel necessary for the separate generation of an identical quantity of heat and electricity.6. (Repealed, SG No. 49/2007). 7. "Natural gas metering station" shall be a facility equipped with commercial natural gas metering devices.8. "Natural gas transmission network" shall be a system of high pressure gas pipelines and the appurtenant installations with an integrated technological mode of operation for transmission of natural gas to the outlet of a natural gas metering station or a natural gas regulation station, to which consumers and/or distribution companies are connected9. "Natural gas distribution network" shall be a local or regional system of high-pressure, medium-pressure and low-pressure natural gas pipelines and the appurtenant installations for transmission of natural gas to the relevant consumers within an area specified by a licence.10. "Natural gas regulation station" shall be a facility for regulation of natural gas pressure, also equipped with commercial metering devices11. "Natural gas transmission system" shall be a system of connected networks for transmission, transit transmission ("wheeling") and distribution of natural gas, as well as facilities to and from natural gas storage facilities and extraction companies within the national territory.12. "Direct gas pipeline" shall be a gas pipeline connecting directly a natural gas extraction company to a non-household consumer.13. "Contract for delivery with a 'take or pay' clause" shall be a contract providing for mandatory payment of quantities of natural gas stipulated therein at a fixed price, irrespective of whether the said natural gas has been received.14. "Ancillary services" shall be all services necessary for the operation of the electric power grid, including participation in voltage regulation and delivery of reactive power, participation in primary frequency regulation and secondary frequency regulation and exchange of power, spinning reserve, start-up capacity after a major break-down without the aid of an off-site source, and continuous load following.15. "Access" shall be the right to use the transmission network and/or the distribution networks for paid transmission of electricity or natural gas at a price and under terms specified in an ordinance.16. "Natural gas delivery" shall be sale of natural gas to consumers.17. "Long-term forecast energy balances" shall be forecast energy balances covering a period of 10 to 15 years.18. (Repealed, SG No. 49/2007). 19. "Electric fixture" shall be a totality of machinery, plant and apparatus intended for transmission, conversion and distribution of electricity.20.(Amended, SG No. 74/2006) "Electricity transmission network" shall be a totality of electric power lines and electric fixtures, which serves for transmission of electricity, transformation of electricity from high-voltage to mid-voltage, redistribution of electric power streams, or for electricity transit transmission ("wheeling") to a third party.21. (Amended, SG No. 74/2006) "Electric power lines" shall be overhead or cable facilities for connecting of electric fixtures and intended for transmission, transit, or distribution of electricity, conforming to "linear engineering electric supply networks" as defined by the Spatial Development Act.22. "Electricity distribution network" shall be a totality of electric power lines and high-voltage, medium-voltage and low voltage electric fixtures, which serves for distribution of electricity.23. (Amended, SG No. 74/2006) "Energy work" shall be a work or a totality of works whereat or whereby electricity and/or heat is generated in a particular output, oil or natural gas is extracted or stored, electricity, heat, and natural gas, oil or oil products are transmitted as well as converted as to parameters or type, as well as the ancillary networks and facilities of any such work, electricity, heat or natural gas is distributed through networks, as well as the ancillary networks and facilities of any such work, excluding the on-site systems of consumers.24. (Supplemented, SG No. 74/2006) "Energy company" shall be a legal person which performs one or more of the activities comprehended in the generation, conversion, transmission, storage, distribution, delivery, and supply of electricity, heat or natural gas on the grounds of a licence issued under this Act, or a person, which performs an activity comprehended in the generation of electricity and/or heat without being obligated to obtain a licence for the activity performed thereby under this Act, or a person performing oil and oil product transmission activity through pipelines.24a. (New, SG No. 74/2006) "Energy resources" shall be primary energy resources (coal, oil, gas, et al.), oil products, as well as renewable energy sources used to produce electricity and heat.25. (Repealed, SG No. 74/2006).26. "Economically inexpedient", where applied to an energy company, shall be the construction of connecting facilities wherein the investment cannot be recouped by the resources raised from depreciation charges and the profit from sales of energy and natural gas through the said facilities for a period of eight years, plus the price that a consumer will pay for establishment of the connection.27. "Individual allocator of heat for heating" shall be a technical device whereof the readings are used for distribution of the heat consumed by the heating units in a building.The readings of any such allocator shall be in relative units which shall be adjusted by evaluation factors depending on the type of the device and the type of the heating unit. The individual allocators shall serve only to determine the share of heat consumed by each heating unit as a share in the aggregate consumption of heat by the building.27a. (New, SG No. 74/2006) "Combined operator" shall be any energy company, which has obtained at least two of the licences under Article 39, Paragraph 1, Item 2, Item 4, and/or Item 9.28. "Combined generation of heat and electricity" shall be generation of heat and electricity in a single process depending on the demand for heat.28a. (New, SG No. 74/2006, effective 1.07.2007) "End supplier" shall be any energy company supplying electricity or natural gas to household users and companies having less than 50 employees and less than 19.5 mil. BGN annual turnover, which have not exercised their right to select the person, from which to purchase electricity or natural gas.29. "Short-term forecast energy balances" shall be forecast energy balances covering a period of one year.30. "Cross subsidization for integrated energy companies: between individual activities subject to licensing under this Act, and/or between activities subject to licensing under this Act and other activities" shall be the assimilation of the costs of another licensed activity to the prices for a particular licensed activity and/or assimilation of costs of a non- licensed activity to the prices of a licensed activity.31. "Cross subsidization between individual groups of consumers" shall be the assimilation to the prices for a group of consumers of an amount of costs larger than the costs relevant to the individual supply of the said group or of an amount of costs smaller than the additional costs incurred by the joint supply of the said group with the rest of the groups.31a. (New, SG No. 74/2006) "Oversight on the security of supply" shall be the balance between the supply and demand of electricity and natural gas on the national market, the level of anticipated future consumption and all projected additional capacities, which are in process of planning or building, the quality and the level of network maintenance, as well as the measures to cover peak consumptions and overcoming the shortages of one or more providers, suppliers, or merchants.32. "Material resources" shall be the availability of principal and auxiliary facilities required to ensure the normal functioning of an energy work.33. "Electric power grid interconnection point" shall be any of the points in the structure of the electric power grid owned by the transmission company, whereto the connecting facility of one or more consumers and producers are connected.34. "Aggregate heated volume of a building" shall be the sum total of the volumes of the properties of consumers and the volumes of the premises constituting common parts of a condominium project building, intended to be heated according to the design.35. (Amended, SG No. 74/2006) "Organized electricity market" shall be a totality of forms of trade in electricity whereon the method, place and time of conclusion of transactions are publicly known and pre-announced in trading rules.36. "Organizational structure" shall be the organization of the managerial and shop-floor personnel that reflects the staff size, the functional links, the coordination between the individual positions and units depending on the needs of the licensed activity.36a. (New, SG No. 74/2006) "Principal supplier" shall be any provider company and/or persons related thereto, having market share exceeding 75 percent.37. "Heating units" shall be the tubular heating units and vertical heating pipes, the radiator heating devices, the baseboard heating units and convectors which are structural elements used for release of heat on the premises through radiation and convection of the heat-transfer medium thereto connected.38. "Heated volume of a property" shall comprehend the volume of all premises owned and/or used by the subscriber and the relevant appertaining portions of the common parts of the building, intended to be heated according to the design.39. "Heated volume of common parts" shall be the sum total of the volumes of premises constituting common parts in a condominium project buildings with heating units projected according to the design.40. "Balancing energy market" shall be organized trade in electricity and natural gas for the purposes of maintaining the balance between generation and consumption in the electric power grid and, respectively, between natural gas import and consumption.41. (Supplemented, SG No. 74/2006) "Site energy works" shall be buildings and the energy works permanently affixed thereto or to a lot, excluding the line parts thereof, intended for performance of the activities comprehended in the generation, transmission and distribution of electricity, heat and natural gas, as well as energy resource extraction.41a. (New, SG No. 74/2006, effective 1.07.2007) "Network user" shall be any natural or legal person, providing electricity to the transmission and/or distribution networks or supplied thereby.42. (Amended, SG No. 74/2006) "Consumer of energy or natural gas for household uses" shall be a natural person who is owner or user of a property and who consumes electricity or heat with hot water or steam as a heat- transfer medium for heating, air conditioning and hot water supply, or natural gas, for the household thereof.43. (Amended and supplemented, SG No. 74/2006) "Consumer of energy or natural gas for business uses" shall be a natural or legal person, who or which purchases electricity or heat with hot water or steam as a heat-transfer medium for heating, air conditioning, hot water supply, and technical needs, or natural gas for business purposes, as well as persons financed by the state budget or a municipal budget.44. (Amended, SG No. 74/2006) "Electricity, heat or natural gas, oil and oil product transmission" shall be the transport of electricity, heat or natural gas, oil or oil products through the transmission network or pipelines.45. "Connecting gas pipeline" shall be a totality of gas pipelines and the appurtenant facilities connecting the transmission network to a non- household consumer of natural gas.46. (Amended, SG No. 74/2006) "Producer" shall be a person which generates electricity and/or heat.47. "Direct electric power line" shall be an electric power line which directly connects a producer with a division or branch thereof or with a consumer.48. "Availability" shall be the capability of a producer to provide available capacity over a particular period of time to deliver electricity.Availability shall be measured in watts per hour and the derivative units.49. "Distribution" shall be the transport of electricity or natural gas through the distribution networks.50. "Heat distribution" shall be the transport of heat through the systems for household hot water supply, heating, air conditioning and other such of consumers.51.(Amended, SG No. 74/2006) "Certificate of origin of electricity from combined generation of heat and electricity" shall be an official non transferable document certifying a producer, the quantity of co generated electricity, stating the period of generation, the electricity generation plant, the output of the said plant and other data and parameters specified in the ordinance referred to in Article 159 (3) herein.52. (Amended, SG No. 74/2006, repealed, SG No. 49/2007). 53. "Settlement" shall be a system applied by the electric power grid operator for individual calculation of deviations of the electricity as actually consumed or generated from the contracted quantities for a particular period using a method regulated in trading rules stipulated by an ordinance.53a. (New, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union amended, amended, SG No. 55/2007) "System services" shall be all services, provided by the network operator, which are necessary for the reliable operation of the electricity power grid and for the viability of the market, including planning, administration, and management of the reliable operation of network users, settlement of the liabilities of the market participants, balanced delivery schedules.54. (Amended, SG No. 18/2005, repealed, SG No. 74/2006).54a. (New, SG No. 74/2006) "Special balancing group" shall be any group comprised of licensed companies under Article 39, Paragraph 1, Items 2, 3, 7, 8 and 10, and producers selling at Commission-regulated prices and/or on long-term agreements, to which special balancing conditions apply according to the rules under Article 91, Paragraph 2.55. "Auxiliary networks" shall be the management, control, safety, communication and information networks required for the efficient functioning of the transmission and distribution networks.56. "Medium-term forecast energy balances" shall be forecast energy balances covering a period of three to five years.57. "Heating share distribution devices for heat consumption" shall be devices installed downstream from the heat commercial metering devices.58. "Commercial metering devices" shall be technical metering devices which possess metrological characteristics and are intended to be used for metering, whether independently or connected to one or more technical devices, and which are used upon sale of electricity, heat or natural gas.59. "Length of seniority in the energy sector" shall be the length of employment and/or civil-service seniority acquired in a managerial or expert position in the state administration of state bodies for management of the energy sector, in commercial corporations whereof the objects are subject to licensing under this Act or to award of concession under the Subsurface Resources Act, as well as in research institutions or commercial corporations servicing such activities.59a. (New, SG No. 18/2005) "Experience in the sphere of water supply and sewerage" shall be a length of civil-service or employment seniority acquired in a managerial or expert position at state or municipal bodies for management of water-supply and sewerage activities, at higher schools, at research institutions, or at commercial corporations whereof the objects are subject to regulation under the Water-Supply and Sewerage Services Regulation Act.59b. (New, SG No. 74/2006) "Standard balancing group" shall be group of commercial participants under Article 100, Paragraph 1, executing transactions in electricity at freely negotiated prices, to which the general conditions on balancing apply according to the rules under Article 91, Paragraph 2.60. "Level of reliability of the electric power grid" shall be the probability, determined in percentage terms by the Minister of Energy and Energy Recourses, of balancing consumption and generation of electricity in case of occurrence of a shortage in the system.61. (Amended, SG No. 74/2006) "Cold reserve" shall be a reserve, necessary to ensure the required level of adequacy, which the electric power grid operator purchases in the form of availability of generating units that are not planned to operate during a particular period of time and which the operator activates in the event of a shortage.62. "Natural gas storage" shall be an activity of injection of natural gas under pressure into natural gas storage facilities and the extraction of the said gas back to the gas transmission network, excluding the delivery of natural gas.63. "Technical capabilities" shall be the overall technical and operational condition of the energy work in accordance with the regulatory requirements for uninterrupted, secure, environmentally sound and safe operation of the facilities whereby the licensed activity is to be performed.64. "Technological costs" shall be the costs of electricity, heat and natural gas which are imputed to the technological process of the generation, transmission, distribution and storage thereof.65. "Heat transmission network" shall be a system of heating mains and technological facilities located between the property boundary of the heat transmission company with the source of heat and/or the consumers, serving for transmission of heat from the source of heat to the consumers.66. (Amended, SG No. 74/2006) "Transit transmissions" shall be the transmission of energy or natural gas, oil or oil products across the borders of a particular country provided that such energy or natural gas, oil or oil products have not been generated and will not be consumer within the territory of the said country.66a. (New, SG No. 55/2007) "Pulling power electricity" shall be the electricity consumed from the contact network of the National Railroad Infrastructure Company by the electricity-driven pulling power rolling stock - electricity-driven locomotives and electricity-driven trains owned by the licensed railroad carriers.67. "Financial capability" shall be the overall financial and economic condition of the applicant with a view to performing the licensed activity.68. "Storage facility" shall be a facility which is used for storage of natural gas and which is owned and/or operated by a natural gas company licensed for storage.69. "Human resources" shall be available to an applicant which has at its disposal the minimum managerial and shop-floor personnel possessing the appropriate level of education and professional qualifications enabling the said applicant to perform the licensed activity.70. "Plant" shall be a totality of technologically connected facilities, installations and auxiliary entities for generation of electricity, heat, and/or for combined generation of heat and electricity.TRANSITIONAL AND FINAL PROVISIONS 2. This Act shall supersede the Energy and Energy Efficiency Act (promulgated in the State Gazette No. 64 of 1999; amended in No. 1 of 2000, No. 108 of 2001, No. 63 of 2002 and No. 9 of 2003), with the exception of Chapter Thirteen thereof. 3. (1) All commercial metering devices, which are owned by consumers upon the entry of this Act into force, shall be purchased by the energy companies at the market value of the said devices within three years after the entry of this Act into force.(2) The obligation of energy companies to purchase the commercial metering devices referred to in Paragraph (1) shall be waived where the said companies install their own devices replacing the existing devices within the time limits provided for the purchase. 4. (1) The energy facilities and installations, constituting elements of the relevant transmission or distribution network which, upon the entry of this Act into force, should be owned by the energy companies but are actually owned by third parties, shall be purchased by the transmission company or by the respective distribution company depending on the appurtenance of the work to the networks within eight years after the entry of this Act into force.(2) The transmission company or, respectively, the distribution company, shall not be obligated to purchase any constructed fixtures and/or electric power lines owned by consumers connected to the transmission network or, respectively, to the distribution network whereto the said consumers have actually connected themselves without a contract for connection of new consumers.(3) The works referred to in Paragraph (1) shall be purchased at market value.In case the parties fail to reach agreement on the value of the said works, the said parties shall commission an independent licensed appraiser to conduct valuation of the said works.The value of the work as determined by the appraiser shall be the price of the purchase transaction.Should no agreement on the designation of an appraiser be reached within 60 days after receipt of a notice of such designation from the other party, the energy company and/or the owner of the works shall have the right to approach the Chairperson of the Commission with a request to designate an independent appraiser.The appraiser designated according to this procedure shall be mandatory to the parties. The costs of the valuation shall be shared equally between the parties.(4) The energy companies and the owners referred to in Paragraph (1) may not refuse, without good reason, to purchase or, respectively, to sell the energy works.(5) The obligation of the energy companies to purchase the energy works referred to in Paragraph (1) shall be waived where the said companies construct their own works replacing the existing works within the time limits provided for the purchase.(6) (Amended, SG No. 18/2004) In case of a refusal without good reason on the part of the owners to sell energy facilities and installations constituting elements of the transmission system and/or of the distribution networks, the said facilities and installations shall be condemned according to the procedure established by Article 63 herein together with the adjoining grounds.(7) The energy works referred to in Paragraph (1), which constitute private state or municipal property at the date of entry of this Act into force, and which have been constructed on resources from the state budget or a municipal budget, shall be transferred onerously to the energy companies within eight years after the entry of this Act into force.(8) Energy companies shall be obligated to transfer gratuitously any outdoor lighting facilities for streets, squares, parks, gardens and other corporeal immovables constituting public municipal property, which are incorporated into the assets of the said companies, to the relevant municipalities within two years after the entry of this Act into force.(9) Upon restitution of any corporeal immovables constituting former state property, should any energy works incorporated into the tangible fixed assets of an energy company be construction within any such immovables, the owners of the said immovables shall have no right to demand the relocation of the said works, to deprive other consumers of energy supply, and to obstruct the operation of the energy companies.(10) The owners of any corporeal immovables wherein energy works are constructed shall have the right to perform construction or other activities in the said immovables in compliance with the regulatory requirements for safe operation of energy works and after consultation with the energy company.(11) Upon privatization of any items of property where within any energy works are constructed, the said works shall be excluded from the subject of the transaction if more than one consumer is supplied with energy or natural gas through the said works. Such works shall be transferred to the relevant energy company according to the procedure established by the foregoing paragraphs. 5. The members of the State Energy Regulatory Commission, including the Chairperson and the Deputy Chairperson, shall complete the terms of office for which they were appointed under the Energy and Energy Efficiency Act as superseded. 6. (Repealed, SG No. 74/2006) . 7. The provision of Item 14 of Article 4 (2) herein shall apply until the 31st day of December 2005. 8. (Amended and supplemented, SG No. 74/2006) The non-recoverable costs incurred by energy companies under Article 34 herein shall be compensable according to the procedure under Article 21, Paragraph 1, Item 13. 9. (Repealed, SG No. 74/2006) . 10. (Repealed, SG No. 74/2006) . 11. (Repealed, SG No. 74/2006) . 12. (1) Any licences and authorizations issued in pursuance of the Energy and Energy Efficiency Act as superseded shall remain in effect insofar they do not conflict with this Act. The requirements for self- contained area under Article 43 (3) to (5) herein shall not apply to any such licences and authorizations.(2) The holders of any authorizations for construction of energy works under Article 37 (1) of the Energy and Energy Efficiency Act as superseded shall be obligated to submit an application to the Commission for issuance of a licence under Article 39 (3) herein within six months after the entry into force of the ordinance referred to in Article 60 herein.(3) Any licences issued, which conflict with this Act or are incomplete, shall be re-issued to the same licensees for the remainder of the term of validity of the effective licences or shall be supplemented at the discretion of the Commission. Any licensees whereof the licences are subject to re-issuance or supplementation shall be obligated to submit an application to the Commission within six months after the entry into force of the ordinance referred to in Article 60 herein. No fees shall be due for the proceedings of re-issuance or supplementation of any such licences.(4) The evidence which was already furnished for the issuance of the initial licences will not have to be furnished for the re issuance or supplementation of any licences referred to in Paragraph (3), provided that no intervening new circumstances have occurred.(5) Pending the issuance of a new licence under Paragraph (2), the licensees shall have the right to perform the licensed activities. 13. Any proceedings for the issuance of authorizations or licences under the Energy and Energy Efficiency Act as superseded, which are pending upon the entry of this Act into force, shall be concluded according to the procedure and under the terms established by this Act. 14. The inventory for construction of new natural gas transmission networks, issued in pursuance of Item 7 of Article 4 of the Energy and Energy Efficiency Act as superseded, shall remain in effect even after the adoption of this Act, and any pending tendering procedures for selection of an investor for construction of new natural gas transmission networks shall be completed according to the hitherto effective procedure. 15. (1) (Amended, SG No. 74/2006) The activities associated with electric power grid management and organizing of an electricity market may be separated in legal and organizational terms from the rest of the activities of the National Electric Company EAD not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union. National Electric Company EAD shall submit applications to the Commission to be allowed to transform and/or execute transactions for the disposal of property used to perform its licensed activity, and for the issuance of respective licences.(2) A licence for performance of the activity of public provider of electricity shall be issued to the National Electric Company EAD within six months after the entry of this Act into force. Until the effective date of the relevant licence, the National Electric Company EAD shall perform the functions of a public provider of electricity, as arising from this Act.(3) A licence for transmission of electricity shall be issued to the National Electric Company EAD within six months after the entry of this Act into force. Until the effective date of the relevant licence, the National Electric Company EAD shall perform the activities comprehended in the transmission of electricity, as arising from this Act.(4) (Amended, SG No. 74/2006) A licence for the activities of electric power grid management and organizing an electricity market shall be issued to the electric power grid operator - legal person, after its creation by the National Electric Company EAD. The Commission shall issue such a licence proprio motu, after evidence of the transformation under Paragraph 1 is furnished.(5) (Repealed, SG No. 74/2006) . 16. (1) Any contracts for long term purchase of availability and electricity at fixed parameters and the associated guarantees, concluded by the National Electric Company EAD before the entry of this Act into force, shall continue in effect for the time period for which they were concluded.(2) (Amended, SG No. 74/2006) The public provider shall be a party to the contracts referred to in Paragraph (1) after the corporate transformation of the National Electric Company EAD under 15, Paragraph 1. 17. (Amended, SG No. 74/2006) (1) The activities associated with distribution of electricity and operational management of the distribution networks may be separated in legal and organizational terms from electricity supply and the other activities of the electricity distribution companies until the 31st day of December 2006 but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union. Electricity distribution companies shall submit requests to the Commission to allow transformation and/or transactions for disposal of property used to perform the licensed activity, as well as for the issuance and/or amendment, and/or termination of respective licences.(2) Licences for the activity of public supplier of electricity shall be issued to the electricity distribution companies within six months after the entry of this Act into force. Until the effective date of the relevant licence, the electricity distribution companies shall perform the functions of public suppliers of electricity for the relevant areas, as arising from this Act.(3) Licences for electricity distribution with the relevant areas shall be issued to the existing electricity distribution companies within six months after the entry of this Act into force. Until the effective date of the said licences, the electricity distribution companies shall perform the functions of electricity distribution within the relevant areas, as arising from this Act.(4) Depending on the type of corporate transformation referred to in Paragraph (1) and the activities carried out by the transformed companies after the transformation, the electricity distribution and electricity supply licences of existing electricity distribution companies and their successors shall be amended and/or terminated, respectively, or new licences shall be issued. For the newly issued or the amended licenses, the transformed companies shall not pay initial licensing fees under Article 29, Paragraph 3, Item 1.(5) After their transformation under Paragraph 1, the electricity distribution companies shall inherit by subrogation all rights and obligations, related to electricity distribution at the self-contained area, defined by the electricity distribution licence, including any rights and obligations arising prior to the transformation, related to respective price regulation, while the public suppliers shall inherit by subrogation all rights and obligations, related to electricity supply at the self-contained area, defined by the public electricity supply licence, including any rights and obligations arising prior to the transformation, related to respective price regulation. 18. (1) Until the corporate transformation of the National Electric Company EAD according to 15 herein, and, respectively, of the electricity distribution companies according to 17 herein, the provisions of Article 104 (1) herein shall apply only to the quantities of electricity traded at freely negotiated prices.(2) The provisions of Article 104 (2) herein shall apply to the public provider, as transformed within the meaning given by 15 herein, and the public suppliers and distribution companies, as transformed within the meaning given by 17 herein. 19. (1) In the cases where a consumer fails to install a hot water meter in a corporeal immovable constituting private property, the heat for water heating shall be calculated according to the rates for water consumption as stipulated in the ordinance referred to in Article 125 (3) herein.(2) In the cases where a residential property is used or allocated to other persons for performance of economic activity, the owner or the holder of the real right of use shall be obligated to notify the heat transmission company within 30 days after commencement of the economic activity or after allocation of the property. Upon failure to fulfil this notification obligation, the owner or holder of the real right of use shall pay for the heat at a price for business uses with a 20 per cent surcharge for the delay. This provision shall be effective as long as different prices apply to heat for household and business uses.(3) (Amended, SG No. 74/2006) If the heat transmission company finds it technically impracticable to apply the heat share distribution system in a condominium-project building, the distribution shall be performed by the heat transmission company under terms and according to a procedure established in the ordinance referred to in Article 125 (3) herein.(4) (New, SG No. 74/2006) Consumers shall not install any additional insulation or blocking fittings to the heating unit inputs and outputs. 20. Until the 1st day of January 2010, the quantity of electricity required to ensure the operational reliability of the principal facilities at the combined heat and power plants existing upon the entry of this Act into force, generated in excess of the quantity of co-generated electricity, shall mandatorily be purchased by the public provider and/or by the public suppliers at negotiated prices. 21. Until the 1st day of January 2010, the public provider and/or the public suppliers shall be obligated to purchase the entire quantity of electricity registered by a certificate of origin from combined generation, generated by the combined heat and power plants existing upon the entry of this Act into force, without high efficiency parameters achieved, at preferential prices, according to the relevant ordinance referred to in Article 36 (2) herein, with the exception of the quantities which the producer consumes for its own uses or for which it has concluded contracts according to the procedure established by Section VII of Chapter Nine herein, or with which it participates in the balancing market. The provisions of Article 163 herein shall apply to any plants which have achieved a high efficiency parameter. 22. (1) (Amended, SG No. 74/2006) Bulgargaz EAD's activities associated with natural gas transmission, shall be separated in legal and organizational terms from the activities, by December 31, 2006, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union. Bulgargaz EAD shall submit requests to the Commission to allow transformation and/or transactions for disposal of property used to perform the licensed activity, and for the issuance of respective licences.(2) A licence for performance of the activity of public provider of natural gas shall be issued to Bulgargaz EAD pending execution of the corporate transformation referred to in Paragraph (1). Until the effective date of the relevant licence, Bulgargaz EAD shall perform the functions of public provider of natural gas, as arising from this Act.(3) A licence for natural gas transmission and transit transmission shall be issued to Bulgargaz EAD pending execution of the corporate transformation referred to in Paragraph (1). Until the effective date of the relevant licence, Bulgargaz EAD shall perform the activities comprehended in natural gas transmission, as arising from this Act.(4) A licence for natural gas storage shall be issued to Bulgargaz EAD, pending execution of the corporate transformation referred to in Paragraph (1). Until the effective date of the relevant licence, Bulgargaz EAD shall perform the activities comprehended in natural gas storage, as arising from this Act.(5) (Repealed, SG No. 74/2006) .(6) The prohibition referred to in Article 44 (2) herein shall apply after the date of the corporate transformation referred to in Paragraph (1).(7) The existing consumers, within the meaning given by Items 8 and 9 of Article 175 herein, of the transmission upon the entry of this Act into force shall be considered directly connected consumers.(8) (New, SG No. 74/2006) In cases, when, as a result of the restructuring under Paragraph 1, the licence for the activity of public natural gas supply, issued under Paragraph 2, is terminated and issued to a different person, the new licence holder shall subrogate Bulgargaz EAD as party to any natural gas supply agreements executed by Bulgargaz EAD prior to the said licence termination date.(9) (New, SG No. 74/2006) In cases, when, as a result of the restructuring under Paragraph 1, the licence for the activity of natural gas transit transmission, issued under Paragraph 3, is terminated and issued to a different person, the new licence holder shall subrogate Bulgargaz EAD as party to any natural gas transit transmission agreements executed by Bulgargaz EAD prior to the said licence termination date. 22a. (New, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) (1) When all the following conditions are present:1. the Republic of Bulgaria is not directly connected to the gas transport network to another European Union member country and2. the market share of the principal gas supplier or any related persons thereto as defined under the Commerce Act is not exceeding 75 percent, all interested persons may submit a request to the commission for a temporarily relief from application of Chapter Four, Article 172, Paragraph 1, and Article 197, Paragraph 2 provisions.(2) The Commission shall take decision on the request under Paragraph 1 within one month and shall immediately notify the European Commission on any effective decision on granting temporary relief. 23. (1) (Supplemented, SG No. 74/2006) The activities associated with natural gas distribution shall be separated in legal and organizational terms from natural gas supply to end consumers and from the other activities of the natural gas distribution companies when not fewer than 100,000 final consumers of natural gas are connected to the relevant distribution network. Gas distribution companies shall submit requests to the Commission to allow transformation and/or transactions for disposal of property used to perform the licensed activity, and for the issuance of respective licences.(2) Licences for performance of the activity of public supplier of natural gas shall be issued to the natural gas distribution companies pending execution of the corporate transformation referred to in Paragraph (1). Until the effective date of the relevant licence, the natural gas distribution companies shall perform the functions of public suppliers of natural gas, as arising from this Act, for the relevant areas.(3) Licences for natural gas distribution within the relevant areas shall be issued to the existing natural gas distribution companies pending execution of the corporate transformation referred to in Paragraph (1). Until the effective date of the relevant licences, the natural gas distribution companies shall perform the activities comprehended in natural gas transmission, as arising from this Act, within the relevant areas.(4) (Repealed, SG No. 74/2006) . 24. (Repealed, SG No. 74/2006). 25. (Amended, SG No. 74/2006) In cases, when assets of energy companies include property of right-holding persons under the Indemnification of Nationalized Property Owners Act or under Article 18 of the repealed State and Municipal Company Transformation and Privatisation Act (prom., SG No. 38/1992; amended, No. 51/1994, No. 45, 57, and 109/1995, No. 42, 45, 68, and 85/1996; corr., No. 86/1996; amended, No. 55, 61, 89, 98, and 122/1997, No. 39/1998; corr., No. 41/1998; amended, No. 70/1998, No. 12/1999, No. 47/1999 - Constitutional Court Decision No. 8/1999; amended, No. 56, 84, and 96/1999, No. 20, 99, and 108/2000, No. 42/2001; taken out., No. 28/2002), the latter shall be indemnified only by compensatory notes under the procedure of the Indemnification of Nationalized Property Owners Act. 26. (1) All servitude rights arising by virtue of the Energy and Energy Efficiency Act as superseded in favour of energy companies in respect of any energy works existing upon the entry of this Act into force shall continue in effect.(2) The size, location and special regime for exercise of any servitude referred to in Paragraph (1) shall be determined according to the procedure and in the manner provided for in the ordinance referred to in Article 64 (9) herein.(3) Any servitude rights referred to in Paragraph (1) shall be recorded in the recording office and in the property register according to the location of the servant estate at the request of the relevant energy company which owns the energy work. 27. The Spatial Development Act (promulgated in the State Gazette No. 1 of 2001; amended in Nos. 41 and 111 of 2001, No. 43 of 2002, Nos. 20 and 65 of 2003) shall be amended and supplemented as follows:1. In Article 73 (1), the words "the utility company or shared between the said company and" in the second sentence shall be deleted.2. In Article 182 (2), after the number 4 at the end of the first sentence, there shall be added "or a servitude has been established under Article 64 and 26 of the Transitional and Final Provisions of the Energy Act";3. In Item 31 of 5, after the words "electricity supply" there shall be added "heat supply". 28. In Article 15 of the Protection of Competition Act (promulgated in the State Gazette No. 52 of 1998; (modified by) Constitutional Court Judgment No. 22 of 1998, (promulgated in) No. 112 of 1998; amended in No. 81 of 1999, No. 28 of 2002, No. 9 of 2003), Paragraph (2) shall be amended to read as follows:"(2) Alignment of general conditions shall be admissible only where authorized by the Commission, except in cases where the said general conditions have been approved by a competent authority exercising regulation and control. Any such authorization shall be granted within two months after the submission of a request by the companies referred to in Paragraph (1)." 29. The Act Restricting Administrative Regulation and Administrative Control over Economic Activity (promulgated in the State Gazette No. 55 of 2003; corrected in No. 59 of 2003) shall be amended and supplemented as follows:1. In Article 13:(a) the existing text shall be redesignated to become Paragraph (1);(b) there shall be added the following new paragraph:"(2) Paragraph (1) shall only apply where no special law established another procedure on the grounds of exclusive rights."2. Item 28 of the Annex to Item Article 9 (1) shall be amended to read as follows:"28. Activities in the energy sector, as regulated in a special law." 30. The Mandatory Stocks of Crude Oil and Petroleum Products Act (promulgated in the State Gazette No. 9 of 2003) shall be amended as follows:1. Article 3 (2) shall be amended to read as follows"(2) The stocks of petroleum products, which are created and maintained by energy companies according to the procedure established by Article 85 (1) and Article 128 of the Energy Act, shall be assimilated to the total quantity of stocks under this Act."2. Article 4 (4) shall be amended to read as follows:"(4) Annually, the persons obligated under Article 85 (1) and Article 128 of the Energy Act shall prepare information on the stocks of petroleum products thereof for the current calendar year and shall submit the said information to the State Agency of Contingency Reserves and Wartime Stockage on or before the 25th day of February."3. Article 24 (3) shall be amended to read as follows"(3) The persons obligated under Article 85 (1) and Article 128 of the Energy Act shall notify the Chairperson of the Agency of each case of use of the stocks of petroleum products and the time limits for replenishment of such stocks. Any such notification shall be submitted in writing or electronically not later than the working day next succeeding the day when the stocks were drawn from." 31. In Article 47 of the Water Act (promulgated in the State Gazette No. 67 of 1999; amended in No. 81 of 2000, Nos. 34, 41 and 108 of 2001, Nos. 47, 74 and 91 of 2002, Nos. 42, 69 and 84 of 2003), there shall be added the following new paragraph:"(5) A concession compensation, fixed according to a methodology adopted by the Minister of Environment and Water and the Minister of Energy and Energy Resources, shall be paid for production of geothermal energy from mineral waters constituting exclusive state property, where the said waters are used only as a heat-transfer medium and are returned to the respective occurrence." 32. The Forests Act (promulgated in the State Gazette No. 125 of 1997; amended in Nos. 79 and 133 of 1998, No. 26 of 1999, Nos. 29 and 78 of 2000, Nos. 77, 79 and 99 of 2002, No. 16 of 2003) shall be amended and supplemented as follows:1. In Item 1 of Article 16 (5), the words "overhead electric power lines" shall be deleted.2. The following new article shall be inserted:"Article 16b. (1) The provisions of Chapter Five of the Energy Act shall apply to any servitudes around overhead and underground electric power lines, heating mains and natural gas pipelines.(2) Any servitudes around energy works located in forests or in forest stock land tracts shall be consulted by the energy companies with the National Forestry Board.(3) The amount of compensation for any servitudes on forests or forest stock land tracts, referred to in Paragraph (2), shall be fixed according to the procedure established by the ordinance referred to in Article 19 herein." 33. (Effective 10.06.2004) In Article 32 of the Technical Requirements for Products Act (promulgated in the State Gazette No. 86 of 1999; amended in Nos. 63 and 93 of 2002, No. 18 of 2003), after the words "acetylene equipment" there shall be added "oil pipelines and petroleum product pipelines". 34. (1) The statutory instruments of secondary legislation on the application of this Act shall be adopted within six months after the entry of the said Act into force.(2) Pending the issuance of the statutory instruments of secondary legislation as provided for under this Act, the statutory instruments of secondary legislation issued for application of the Energy and Energy Efficiency Act as superseded shall be applied insofar as they do not conflict with this Act. 35. The provision of 33 herein shall enter into force six months after the promulgation of this Act in the State Gazette.This Act was adopted by the 39 National Assembly on 26 November 2003 and the Official Seal of the National Assembly has been affixed thereto.TRANSITIONAL AND FINAL PROVISIONSof the Administrative Procedure Code (SG, No. 30/2006, effective 12.07.2006) 47. Everywhere in the Energy Act (Promulgated, SG No. 107/2003, amended, SG No. 18/2004, amended and supplemented, SG No. 18/2005, amended, SG No. 95/2005) the words "the Administrative Procedure Act" shall be replaced by "the Administrative Procedure Code".TRANSITIONAL AND FINAL PROVISIONSto the Energy Act Amendment Act(SG No. 74/2006, effective 8.09.2006, amended, SG No. 49/2007,SG No. 55/2007, effective 6.07.2007) 125. Throughout the Act:1. All phrases "Minister of Energy and Energy Resources" and "Ministry of Energy and Energy Resources" shall be replaced by the phrases "Minister of Economy and Energy" and "Ministry of Economy and Energy", respectively.2. The phrase "act whereby Republic of Bulgaria is recognised as full member of the European Union" shall be replaced by the phrase "Treaty concerning the Accession of the Republic of Bulgaria to the European Union". 126. (Effective 1.07.2007) (1) The public provider shall ensure electricity supply at freely negotiable prices to any consumers connected to the transmission network, when these consumers have obtained the eligible consumer status, but have not selected another provider, until the time when they have exercise this right.(2) End suppliers shall ensure electricity supply at freely negotiable prices to any consumers connected to the transmission network, when these consumers have obtained the eligible consumer status, but have not selected another provider, until the time when they have exercise this right. 127. (Repealed, SG No. 49/2007). 128. (1) The mandatory purchase under Article 162 of electricity produced using high-efficiency combined heat and electricity generation at preferential prices shall be applied for a term of 8 years:1. starting on the date this Act becomes effective - for all existing electricity producers using high-efficiency combined heat and electricity generation;2. starting on electricity production start, but not later than December 31, 2011 - for all other electricity producers using high-efficiency combined heat and electricity generation;(2) The preferential prices for the purchase of electricity produced using high-efficiency combined heat and electricity generation for the period until December 31, 2019, shall be set forth according to the respective ordinance under Article 36, Paragraph 3.(3) The Minister of Economy and Energy shall, by December 31, 2011, prepare and submit to the Council of Ministers for adoption a draft law introducing market mechanism for promotion of electricity production using a combined method, which may not be applied to electricity producers under Paragraph 1. 129. (1) Licences for the activity of electricity supply by end suppliers within the respective areas shall be issued proprio motu by the Commission to existing public electricity suppliers by July 1, 2008.(2) Until the date the newly-issued licenses under Paragraph 1 become effective, public electricity suppliers shall perform the activities of end suppliers within the respective areas, arising under this Act and the public electricity supply licences held by them, as far as these are not contradictory to the Act.(3) All licences under Paragraph 1 shall be issued for the remaining term of validity of existing public electricity supply licences. 130. (1) Licences for the activity of natural gas supply by end suppliers within the respective areas shall be issued proprio motu by the Commission to existing public natural gas suppliers by July 1, 2008.(2) Until the date the newly-issued licenses under Paragraph 1 become effective, public natural gas suppliers shall perform the activities of end suppliers within the respective areas, arising under this Act and the public natural gas supply licences held by them, as far as these are not contradictory to the Act.(3) All licences under Paragraph 1 shall be issued for the remaining term of validity of existing public natural gas supply licences. 131. Merchants, who, at the date this Act becomes effective, perform the activity of heat share distribution in condominium-project buildings, shall submit an application for registration under Article 139a, Paragraph 3 within three months after this Act becomes effective. 132. The 27 provision, related to the amendment of Article 49, Paragraph 3 and Paragraph 4, shall also apply to any unfinished proceedings existing at the date this Act becomes effective, created under Article 46, Paragraph 2, which have no effective Commission decision on designating a licence holder. 133. (1) The 55 provision, related to the amendment of Article 102, shall apply to any transactions with resident persons in a European Union member country, on the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union.(2) The effective 55 shall restrict, respectively, the public provider's exclusive right on the import and export of electricity under Article 93, Paragraph 2.(3) The provision in 55 shall apply on the date this Act becomes effective to electricity producers, having:1. a licence under Article 39, Paragraph 3 to build new electricity generation energy works;2. a permit for expansion under Article 35, Paragraph 1, Item 1 of the repealed Energy and Energy Efficiency Act (prom., SG, No. 64/1999; amended, No. 1/2000, No. 108/2001, No. 63/2002, No. 9/2003; repealed, No. 107/2003 and No. 18/2004) 134. The provision in 105, related to creation of Article 176a shall become effective to any transactions with resident persons in a European Union member country, on the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union. 135. Until the provision of 12, Item 6 on the repealing of Article 21, Paragraph 1, Item 17 becomes effective, the Commission shall determine the availability, based on which any producer may execute transactions with eligible consumers, electricity merchants, and other producers according to the rules under Article 91, Paragraph 2, or take part in an organised market. 136. Until the provision of 24, Item 2, "a" on the repealing of Article 43, Paragraph 2, Item 2 on the self-contained area under Article 43, Paragraph 3 becomes effective, only one public electricity supply licence shall be issued. 137. Until the provision of 24, Item 2, "a" on the repealing of Article 43, Paragraph 2, Item 2 on the self-contained area under Article 43, Paragraph 5 becomes effective, only one public natural gas supply licence shall be issued. 138. Until the provision of 50, Item 1, "a" - in the part concerning repealing of Article 97, Paragraph 1, Item 4 - becomes effective, electricity transactions shall be executed at Commission-regulated prices between the public provider and all transmission network connected consumers, who have not selected another supplier.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140. Any statutory acts related to the application of the Energy Act shall be adopted or brought in accordance with this Act within 6 months after this Act becomes effective. 141. This Act shall become effective on the date of its promulgation in the State Gazette, except the provisions in:1. 3, Item 2, "f", related to Article 4, Paragraph 2, Item 18b and Item 18c, 12, Item 8, related to Article 21, Paragraph 1, Item 19a and Item 19b, 23, Item 2; 26, 28, 103, related to Article 172a and Article 172c, 104, Item 2, 106, Item 1, 107, Item 1, 113, 121, 122, 124, Item 9, becoming effective on the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union;2. (Amended, SG No. 55/2007) 12, Item 2, Item 6, and Item 7, 16, Item 1, Item 4, Item 5, and Item 6, 22, Item 1, "a" and "b", 24, Item 2, Item 3, and Item 5, 44, Item 2 and Item 5, 46, 48, 50, Item 1, "a" and "c", 51, 53, 56, 74, 97, Item 1, and Item 2, 100, Item 1, 103, related to the creation of Article 172b, 104, Item 1 and Item 3, 106, Item 2, 107, Item 2, 108, 110, 111, 112, 123, Item 13, and 126, becoming effective July 1, 2007;3. 16, Item 4 and Item 7, 22, Item 1, "c", 23, Item 1, 24, Item 1, 25, Item 1, 35, 39, 40, 41, 44, Item 4, 50, Item 2, 52, 54, 57, 59, Item 1, 61, 62, 64, 65, 66, 71, 72, 76, Item 1, and 123, Item 25, becoming effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union. For more information visit www.solicitorbulgaria.com id: 328 Fri, 01 Aug 2008 08:01:41 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-energy-act-part-2 http://web.solicitorbulgaria.com/index.php/bulgarian-energy-act-part-2 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/ENERGY_ACT1.jpg EUR http://web.solicitorbulgaria.com/index.php/bulgarian-energy-act-part-2 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Chapter OneGENERAL PROVISIONSArticle 1. (Supplemented, SG No. 74/2006, amended, SG No. 49/2007) This Act regulates the social relations associated with the activities of generation, import and export, transmission, transit transmission, distribution of electricity, heat and natural gas, oil and oil product transmission through pipelines, trade in electricity, heat and natural gas, as well as the powers of state bodies in formulating energy policy, regulation and control.Article 2. (1) The principal purposes of this Act are to create conditions for:1. high-quality and secure supply of electricity, heat and natural gas to the general public;2. energy development and the energy security of the country through efficient use of energy and energy resources;3. creation and development of a competitive and financially stable energy market;4. energy deliveries at minimum costs;5. (repealed, SG No. 49/2007); 6. promotion of the combined generation of electricity and heat.7. (new, SG No. 74/2006)… For more information visit http://www.solicitorbulgaria.com id: 329 Chapter OneGENERAL PROVISIONSArticle 1. (Supplemented, SG No. 74/2006, amended, SG No. 49/2007) This Act regulates the social relations associated with the activities of generation, import and export, transmission, transit transmission, distribution of electricity, heat and natural gas, oil and oil product transmission through pipelines, trade in electricity, heat and natural gas, as well as the powers of state bodies in formulating energy policy, regulation and control.Article 2. (1) The principal purposes of this Act are to create conditions for:1. high-quality and secure supply of electricity, heat and natural gas to the general public;2. energy development and the energy security of the country through efficient use of energy and energy resources;3. creation and development of a competitive and financially stable energy market;4. energy deliveries at minimum costs;5. (repealed, SG No. 49/2007); 6. promotion of the combined generation of electricity and heat.7. (new, SG No. 74/2006) development of electricity, natural gas, oil or oil product transmission infrastructures on the territory of the country, and through it.(2) (Amended and supplemented, SG No. 74/2006) The generation, import, export, transmission, transit transmission, distribution and trade in electricity, heat, natural gas, oil and oil products shall be carried out under the guaranteed protection of the life and health of citizens, the property, the environment, the interests of consumers, and the national interests.Chapter TwoENERGY POLICYSection IState Governance of the Energy SectorArticle 3. (1) The Council of Ministers shall define the state policy in the energy sector.(2) The Council of Ministers shall adopt the Energy Strategy of the Republic of Bulgaria on a motion by the Minister of Economy and Energy that shall state basic objectives, stages, means and methods for the development of the energy sector.Article 4. (1) (Amended, SG No. 74/2006) The national energy policy shall be implemented by the Minister of Economy and Energy.(2) (Amended, SG No. 74/2006) The Minister of Economy and Energy shall perform the following functions:1. elaborate the Energy Strategy of the Republic of Bulgaria and lay the said energy before the Council of Ministers for adoption;2. adopt the short-term, medium-term and long-term overall national forecast energy balances in accordance with the strategy as adopted;3. (supplemented, SG No. 74/2006) lay a list of energy works of strategic national importance, including ones extracting local hard fuel, before the Council of Ministers for endorsement;4. (supplemented, SG No. 74/2006) define, by an order, the mandatory parameters of the level of reliability of electricity supply, as well as minimum safety standards for natural gas supply;5. approve an inventory of the required new electricity generating capacities solely in cases where the security of electricity supply cannot be guaranteed through the effective licensing system under this Act, and promulgate the said inventory in the State Gazette;6. lay before the Council of Ministers for endorsement an inventory of new self-contained areas for natural gas distribution and for modification of existing self-contained areas for natural gas distribution for which no licence has been issued, and promulgate the said inventory in the State Gazette;7. approve restructuring programmes and strategies for the energy sector;8. determine an overall annual quota for mandatory acquisition of electricity from producers utilizing primary local energy sources (of fuel), of up to 15 per cent of the combined primary energy required for the generation of electricity that is consumed in the country during each calendar year, for reasons of security of supply;9. (repealed, SG No. 49/2007); 10. (supplemented, SG No. 74/2006, repealed, SG No. 49/2007); 11. (amended, SG No. 74/2006) based on adopted criteria, prepare analysis of the national potential for high efficiency combined production and evaluates the progress made on increasing the share of high efficiency combined production in the gross consumption of electric power every 4 years and publish it on Ministry of Economy and Energy web site;12. make proposals for establishment and maintenance of national energy reserves and wartime energy reserves;13. approve standard levels for the stocks of fuels necessary for secure energy supply;14. (effective until 31.12.2005) lay before the Council of Ministers a proposal for grant of state aids to certain entities and/or activities in the energy sector;15. exercises control in the cases provided for by this Act;16. issue permits for prospecting and exploration of energy resources and organize procedures for the award of concessions for extraction of energy resources and for construction of hydro power works;17. publish an annual bulletin on the status and development of the energy sector;18. formulate and implement a state policy related to the activities comprehended in the transmission of oil and petroleum products through pipelines within and through the national territory;18a. (new, SG No. 74/2006) represent the government in its relationships with other countries, as well as with commercial companies in all matters, related to the application of the Agreement to the Energy Charter and the implementation of transnational electricity, natural gas and oil transmission infrastructure building projects;18b. (new, SG No. 74/2006, effective as of the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) provide competent authorities in the European communities with all information under the law of the European communities;18c. (new, SG No. 74/2006, effective as of the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) according to its authority, send requests and notices to the competent authorities of the European communities for granting temporary relief from the application of provisions in the law of the European communities and transitional periods in the field of energy in all cases under the law of the European communities.19. issue the statutory instruments of secondary legislation provided for in this Act according to the competence vested therein;20. represent the Republic of Bulgaria in international organizations on energy matters;21. exercise other powers as well, conferred thereon by other statutory instruments.(3) The Energy Strategy adopted by the Council of Ministers under Item 1 of Article 4 (2) herein shall be promulgated in the State Gazette.Article 5. (1) The list of energy works of strategic national importance, referred to in Item 3 of Article 4 (2) herein, shall be prepared on an annual basis by the Ministry of Economy and Energy and shall be laid by the Minister of Economy and Energy before the Council of Ministers for endorsement.(2) Any persons performing activities under this Act by means of works included in the list referred to in Paragraph (1) shall enjoy protection which includes:1. (supplemented, SG No. 74/2006) organization and control of physical protection (security) of works, implemented by the authorities of the Ministry of Interior or by persons conducting activities under the Private Security Business Act ;2. information security, implemented through administrative, organizational and technical measures.(3) The protection covered under Paragraph (2) shall be for the account of the persons performing the activities under this Act by means of works included in the list referred to in Paragraph (1).(4) (New, SG No. 74/2006) Any persons carrying out activities under this act through sites, included in the list under Paragraph 1, shall carry out activities and work during military and non-military crises, as assigned to them by the Minister of Economy and Energy.Article 6. (1) Municipality mayors shall require from energy companies operating on the territory of the municipalities thereof to submit forecasts of the development of demand for electricity, heat and natural gas, programmes and plans for electricity, heat and natural-gas supply.(2) Acting on a proposal by the energy companies, municipality mayors shall mandatorily project, in the master plans and detailed plans, spatial renewal works required for implementation of the programmes and plans referred to in Paragraph (1).(3) (Amended, SG No. 74/2006) Municipality mayors shall ensure the construction, operation, maintenance and development of the outdoor lighting networks and facilities within the territory of the municipality in respect of corporeal immovables constituting municipal property.Article 7. (1) (Amended and supplemented, SG No. 74/2006) Upon conduct of the state policy in the energy sector, the Minister of Economy and Energy may be assisted by industrial branch chambers and organizations of energy and energy resource extraction sector workers.(2) (Supplemented, SG No. 74/2006) Employers in the energy sector may establish and participate in industrial branch chambers and organizations of energy and energy resource extraction sector workers.(3) (Supplemented, SG No. 74/2006) The industrial branch chambers and organizations of energy and energy resource extraction sector workers shall be registered under the terms and according to the procedure established by the Not-for-Profit Legal Entities Act .(4) (Supplemented, SG No. 74/2006) The industrial branch chambers and organizations of energy and energy resource extraction sector workers shall:1. have as an objective to represent and protect the common interests of the members thereof;2. may negotiate with trade unions on issues of common interest and be parties in signing an industry-wide collective agreement;3. (supplemented, SG No. 74/2006) elaborate rules for good manufacturing practices, models of systems for risk analysis of energy generation and/or energy resource extraction, as well as other professional criteria;4. participate in the elaboration of strategies, analyses, programmes and opinions on the development of the sector and facilitate the implementation thereof;5. (supplemented, SG No. 74/2006) create data bases on professionals in the sector available to assist energy producers and energy resource extractors, as well as the state bodies;6. (supplemented, SG No. 74/2006) elaborate a Code of Ethics regulating professional ethics in the sector and prevention of unfair competition between energy producers and energy resource extractors;7. (supplemented, SG No. 74/2006) notify the competent authorities of violations committed in the production of and trade in energy and/or energy resource and natural gas extraction;8. give opinions on any amendments to statutory instruments for the respective industrial branch;9. organize and deliver vocational training;10. perform other functions as well assigned thereto by a law.(5) (Supplemented, SG No. 74/2006) The state bodies and the management bodies of the industrial branch chambers and organizations of energy sector workers shall collaborate and inform each other of violations detected in the production of and/or trade in energy and/or energy resource and natural gas extraction.(6) (Supplemented, SG No. 74/2006) The state bodies, institutions and central-government departments, the bodies of local self-government and local administration work shall assist and provide the industrial branch chambers and organizations of energy and energy resource extraction sector workers with information the said chambers and organizations need to perform the functions thereof provided for under this Act.Section IIEnergy Forecasting and PlanningArticle 8. (1) (Amended, SG No. 74/2006) The Minister of Economy and Energy shall elaborate the Energy Strategy of the Republic of Bulgaria.(2) (Amended, SG No. 74/2006) On the basis of the Energy Strategy of the Republic of Bulgaria, the Ministry of Economy and Energy shall prepare programmes and strategies for restructuring of the energy sector that shall be approved by the Minister of Economy and Energy. Commercial corporations in the energy sector shall be privatized in accordance with the programmes and strategies for restructuring of the energy sector, as approved by the Minister of Economy and Energy.(3) There shall be short-term, medium-term and long-term overall national forecast energy balances. The said balances shall be prepared on the basis of:1. (amended, SG No. 74/2006) forecasts, studies and plans of enterprises engaged in the activities comprehended in extraction, processing, conversion, transmission and distribution of energy resources and energy;2. information from the overall indicative energy balances;3. information provided by the National Statistical Institute.(4) (Amended, SG No. 74/2006) The Minister of Economy and Energy shall determine the need of construction of new generating capacities and shall approve the inventory referred to in Item 5 of Article 4 (2) herein on the basis of:1. the overall forecast energy balances;2. the mandatory parameters of the level of reliability of electricity supply;3. (amended, SG No. 74/2006) the development plan at minimum public expenses for new generation capacity, prepared by the electric power grid operator.(5) (Amended and supplemented, SG No. 74/2006) The Minister of Economy and Energy shall implement an energy policy targeting national energy development with efficient utilization of energy and energy resources and meeting the demand of the public for electricity, heat and natural gas, oil products, and solid fuels on the basis of the overall forecast energy balances and in accordance with the Energy Strategy as adopted by the Council of Ministers.(6) (Amended, SG No. 74/2006) The Minister of Economy and Energy shall perform oversight on the security of supply and shall publish all measures planned and taken, the results from the oversight, as well as the energy policy guidelines in the bulletin under Article 4, Paragraph 2, Item 17, as well as on Ministry of Economy and Energy's web site.Article 9. (1) (Supplemented, SG No. 74/2006) Companies engaged in activities comprehended in energy resource extraction, processing and trade in fuels, conversion, transmission, distribution and trade in energy and natural gas shall:1. (supplemented, SG No. 74/2006) conduct studies and analyses, elaborate short-term, medium term and long-term forecasts of the energy resource extraction, processing and trade in fuels and energy, and adopt the relevant plans ensuring the said activities;2. (amended, SG No. 74/2006) prepare, at least once every two years, and submit to the Minister of Economy and Energy plans for rehabilitation, for measures to improve the efficiency of existing generating capacities and networks, and for the construction of new capacities and networks at minimum costs. The said plans shall be accompanied by a feasibility study, a financial analysis and an environmental impact analysis, and alternatives for energy saving.(2) (Supplemented, SG No. 74/2006) The forecasts referred to in Paragraph (1), including the respective reporting information and the preliminary studies and a list of required new generating capacities and networks, and natural gas storage facilities, shall be submitted as follows:1. (amended, SG No. 74/2006) to the Minister of Economy and Energy;2. (supplemented, SG No. 18/2005) to the State Energy and Water Regulatory Commission;3. to the mayors of the municipalities concerned for fulfilment of the obligations under Paragraph (6);4. (supplemented, SG No. 74/2006) to the transmission companies and the electric power grid operator;5. to the relevant distribution companies.(3) (Amended and supplemented, SG No. 74/2006) The content, structure, terms and procedure for submission of the information covered under Paragraphs (1) and (2) shall be established in an ordinance of the Minister of Economy and Energy.(4) (New, SG No. 74/2006) The content, structure, and procedure to present all information under Article 4, Paragraph 2, Item 18b, as well as under Article 21, Paragraph 1, Item 19a, shall be defined by a Council of Ministers ordinance, after a proposal by the Minister of Economy and Energy, and of the State Energy and Water Regulatory Commission.Chapter ThreeREGULATION OF ENERGY SECTOR ACTIVITIESSection IState Energy and Water Regulatory Commission(Title amended, SG No. 18/2005) Article 10. (1) (Amended, SG No. 18/2005) The State Energy and Water Regulatory Commission, hereinafter referred to as the "Commission", shall regulate energy-sector and water-supply and sewerage activities.(2) The Commission shall be an independent specialized state body, a legal person with a head office in Sofia.Article 11. (1) (Amended, SG No. 18/2005) The Commission shall be a collegial authority and shall consist of thirteen members, including a Chairperson and two Deputy Chairpersons, of whom one shall have experience in the energy sector, and the other shall have experience in water-supply and sewerage.(2) (Amended, SG No. 18/2005) The Chairperson, the Deputy Chairpersons and the members of the Commission shall be elected and removed from office by a decision of the Council of Ministers and shall be appointed by an order of the Prime Minister.(3) The term of office of the members of the Commission shall be five years.Article 12. (1) Eligibility for membership of the Commission shall be limited to capable Bulgarian citizens who have graduated from a higher educational establishment, attaining an educational qualification degree of Master, and at least one of which shall be a qualified lawyer and one economist:1. (supplemented, SG No. 18/2005) with length of employment and/or civil-service seniority of at least ten years, of which at least three years in the energy sector, applicable to five of the members, and in water supply and sewerage, applicable to the remaining five members;2. who has not been sentenced to deprivation of liberty for a premeditated offence at public law.(2) The following shall be ineligible for members of the Commission:1. (supplemented, SG No. 18/2005) sole traders, shareholders, partners, managing directors, managerial agents or members of management or supervisory bodies, as well as liquidators and consultants of commercial corporations engaged in activities subject to licensing under this Act or to regulation under the Water-Supply and Sewerage Services Regulation Act;2. occupants of another salaried position with the exception of academic research or teaching.(3) Members of the Commission shall be removed prior to the expiry of the term of office thereof solely:1. upon resignation in writing;2. upon ascertainment of incompatibility with the qualifications for occupation of the office under this Act;3. upon actual inability to discharge the duties thereof for more than 6 months;4. when sentenced to deprivation of liberty for a premeditated offence at public law by an effective sentence.(4) In the cases referred to in Paragraph (3), the Council of Ministers shall elect a new member to serve the remainder of the original term.(5) The remuneration of the members of the Commission shall be fixed as follows:1. (amended, SG No. 18/2005) for the Chairperson: 93 per cent of three average monthly wages of persons hired under an employment or under a civil-service relationship in the Electricity, Gas and Water Supply Sector as reported by the National Statistical Institute;2. (amended, SG No. 18/2005) for the Deputy Chairpersons: 90 per cent of three average monthly wages of persons hired under an employment or under a civil-service relationship in the Electricity, Gas and Water Supply Sector as reported by the National Statistical Institute;3. (amended, SG No. 18/2005) for the rest of the members of the Commission: 85 per cent of three average monthly wages of persons hired under an employment or under a civil-service relationship in the Electricity, Gas and Water Supply Sector as reported by the National Statistical Institute.Article 13. (1) (Amended, SG No. 18/2005) The Commission shall be a standing body and shall meet if not fewer than seven of the members thereof are present, and shall exercise the powers thereof as follows:1. under this Act: in the presence of not fewer than five of the members with experience in the sphere of the energy sector;2. under the Water-Supply and Sewerage Services Regulation Act : in the presence of not fewer than five of the members with experience in the sphere of water supply and sewerage.(2) (Amended, SG No. 18/2005) The Commission shall rule by reasoned decisions, which shall be individual or general administrative acts and shall be adopted by a majority of not fewer than seven votes, of which five shall belong to members of the Commission with experience in the relevant sphere in respect of which the decision is adopted.(3) Commission meetings shall be open to the public when considering applications or requests related to:1. the issuance, modification, supplementation, withdrawal and termination of a licence;2. (amended, SG No. 18/2005) endorsement of prices proposed by the energy companies and by the water and sewerage utilities.(4) In certain cases, the Commission may decide that the meetings referred to in Paragraph (3) be held behind closed doors, attendance thereat being limited to members of the Commission and the parties to the relevant proceeding.(5) (Amended, SG No. 18/2005, supplemented, SG No. 74/2006) The decisions of the Commission under Paragraphs (3) and (4) shall be made in a meeting behind closed doors and shall be announced according to a procedure established in the Rules referred to in Article 16 (2) herein.(6) In performance of the powers thereof, the Commission shall apply the rules of procedure provided for in this Act, and in cases unregulated thereby, the rules of the Administrative Procedure Code .(7) Any decisions of the Commission, including a tacit refusal, shall be appealable before the Supreme Administrative Court. An appeal shall not stay the execution of a decision.(8) The general administrative acts of the Commission that establish rules under this Act shall be promulgated in the State Gazette.Article 14. (1) (Supplemented, SG No. 18/2005) The Commission shall conduct a procedure for public discussions with interested parties when drafting general administrative acts provided for in this Act and in the Water-Supply and Sewerage Services Regulation Act , as well as on other matters of public relevance for development of the energy sector and of the water and sewerage sector.(2) (Supplemented, SG No. 18/2005, amended, SG No. 74/2006) Interested parties under Paragraph (1) shall be the state bodies, the industrial branch organizations, the energy companies, the water and sewerage utilities, the eligible consumers, directly related to the draft prepared, as well as consumer organizations.(3) The Commission shall discuss with the interested parties the basic principles set in the draft and shall allow not less than 14 days for preparation of opinions on the said draft.(4) The Commission shall consider all opinions submitted by interested parties and shall reason its own opinion, posting the reasoning on the Internet site thereof.Article 15. (1) The Commission shall make public the policies pursued and the practice established in the implementation of its acts and reasoning for revision of the said acts in the bulletin published by the Commission or in another appropriate manner.(2) The bulletin of the Commission shall be published once every six months and shall be posted on the Internet site of the Commission.Article 16. (1) In its activities, the Commission shall be assisted by an administration.(2) The activities of the Commission, the structure and organization of the administration thereof shall be determined in Rules of Organization adopted by the Council of Ministers.(3) The ineligibilities referred to in Items 1 and 2 of Article 12 (2) shall apply to the employees of the specialized administration.Article 17. The members of the Commission, as well as the employees of the administration thereof, shall be obligated to comply with the professional ethics rules adopted by the Commission.Article 18. (Amended, SG No. 74/2006) (1) The Commission's Chairperson, its members and administrative officials shall not disclose any classified information they have created and stored, and which has become known to them in the course of their duties under this Act and under the Water-Supply and Sewerage Services Regulation Act , contained in list of facts, data, and subjects, constituting an official secret.(2) The Commission, after coordination with the State Commission on Information Security, issues a decision to endorse, amend and supplement the list under Paragraph 1.(3) The list under Paragraph 1 may include information, declared to be commercial secret by the applicants and licensees, only if its publication would not lead to unfair competition between companies or threaten commercial interests of third parties. This category of information the Commission shall include in the list after coordination with the Protection of Competition Commission.(4) Any information constituting an official secret may be disclosed only to judicial authorities or other public authorities according to the procedure established by the law.Article 19. (1) State bodies, energy companies and public officials shall assist the Commission in the performance of the functions thereof.(2) In the performance of the functions thereof, the Commission may collaborate with persons representing and protecting consumer interests.Article 20. The Chairperson of the Commission shall perform the following functions:1. organize and direct the activities of the Commission and of the administration thereof according to this Act and the decisions of the Commission;2. represent the Commission in dealing with third parties;3. appoint and dismisses the employees of the administration;4. submit annually a report on the performance of the Commission to the Council of Ministers;5. organize the preparation of the budget and lay it before the Commission for consideration and adoption;6. be responsible for the implementation, balancing off and reporting of the budget of the Commission;7. lay the annual report and the periodic financial statements before the Commission for adoption.Section IIPowers of the CommissionArticle 21. (1) (Previous Article 21, SG No. 18/2005) For regulation of the activities comprehended in electricity generation, transmission and distribution, natural gas transmission and distribution, trade in electricity and natural gas, heat generation and transmission, the Commission shall exercise the following powers:1. issue, modify, supplement, suspend, terminate and withdraw licences in the cases provided for in this Act;2. adopt and publish guidelines for the activities thereof;3. draft the statutory instruments of secondary legislation provided for in this Act;4. approve the general conditions of the contracts provided for in this Act;5. exercise control in the cases provided for in this Act;6. perform price regulation in the cases provided for in this Act;7. (amended, SG No. 74/2006) adopt the rules for trade in electricity and natural gas (Market Rules) and the technical rules for the networks (Grid Code), proposed by energy companies, and control compliance with the said rules;7a. (new, SG No. 74/2006, effective 1.07.2007) adopts rules on electricity and natural gas supply from end suppliers as part of the electricity and natural gas trade rules under Item 7;8. adopt and control the implementation of a methodology for setting of prices for balancing electricity as part of the rules for trade in electricity under Item 7;9. set the rules for access to the electricity and natural gas transmission networks, respectively to the electricity and natural gas distribution networks (Rules on Network Access);10. acting on a proposal by the relevant transmission or distribution company, decide on the classification of the electric power lines, heating mains, natural gas pipelines and the facilities appurtenant thereto within the transmission or distribution networks and issue mandatory directions for their purchase and/or provision of access thereto;11. conduct the tendering procedures under Article 46 herein;12. develop and control compliance with the conditions and rules for supply of electricity, heat and natural gas to consumers, including the quality of service standards;13. (amended, SG No. 74/2006) review energy companies' requests for the reimbursement of any non-recoverable costs or any costs resulting from public obligations imposed on them under Articles 34 and 35, endorse the reasonable size and the terms of such reimbursement;14. issue certificates to electricity producers on the origin of the electricity commodity that is generated from renewable energy sources and upon combined generation of electricity and heat;15. (repealed, SG No. 74/2006) ;16. (amended and supplemented, SG No. 74/2006) set, according to a methodology or instructions adopted by the Commission, the permissible allowances for technological losses of electricity in the process of its generation, transmission and distribution, in the process of generation and transmission of heat, and in the process of natural gas transmission, distribution and storage;17. (repealed, SG No. 74/2006, effective 1.07.2007) ;17a. (new, SG No. 74/2006, effective 1.07.2007) set the electric power availability for generation, according to which each producer shall make agreements with end suppliers and/or the public provider with regard to the implementation of principles under Article 24, Paragraph 1;18. grant consent to the division by the formation of new companies, division by acquisition, merger by acquisition, or merger by the formation of a new company in respect of any energy companies which are holders of licences under this Act;19. approve the transactions in property used in the performance of licensed activities (Capital Improvements and Lending Operations) in the cases provided for in this Act, as well as in other transactions that will or may affect the security of supply as a result of indebtedness of the energy company;19a. (new, SG No. 74/2006, effective as of the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) provide the competent authorities of the European Communities all information under the law of the European Communities;19b. (new, SG No. 74/2006, effective as of the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) according to its authority, send requests and notices to the competent authorities of the European communities for granting temporary relief from the application of provisions in the law of the European communities and transitional periods in the field of energy in all cases under the law of the European communities;19c. (new, SG No. 74/2006) publish an annual report on its activity, including results from the control to avoid restriction and violation of energy market competition and efficient functioning.20. adopt the draft annual budget and the financial report of the Commission, as submitted by the Chairperson, and the report referred to in Item 4 of Article 20 herein;21. exercise other powers provided for by a law.(2) (New, SG No. 18/2005) The powers of the Commission to regulate activities in the sphere of water supply and sewerage shall be determined in the Water-Supply and Sewerage Services Regulation Act.Article 22. (1) (Amended, SG No. 18/2005) The Commission shall consider complaints:1. by consumers against licensees or by licensees against other licensees, related to performance of the licensed activity;2. by consumers against water and sewerage utilities, or by water and sewerage utilities against water and sewerage utilities, related to the subject matter regulated under the Water-Supply and Sewerage Services Regulation Act.(2) Upon receipt of a complaint, the Chairperson of the Commission shall order an inquiry according to the procedure established by Chapter Eight herein.(3) The Commission may facilitate an amicable settlement of the dispute within two months after receipt of a complaint under Paragraph (1). The Commission may extend this period by an additional two months if the subject of dispute requires collection of additional data and information by the Commission.(4) Where the dispute has been settled amicably by means of reaching a written agreement between the parties and any of the parties has failed to comply with the obligations thereof under the said agreement, the other party may refer the dispute subject of the agreement to a court of law for settlement.(5) The procedure for the submission of complaints, the consideration thereof and the procedure for amicable settlement of disputes shall be regulated in the ordinance referred to in Article 60 herein.Article 23. (1) In exercising the regulatory powers thereof, the Commission shall be guided by the following general principles:1. prevention and preclusion of limitation or distortion of competition on the energy market;2. balancing the interests of energy companies and consumers;3. ensuring non-discrimination between the various categories of energy companies and between groups of consumers;4. providing incentives for efficient operation of regulated energy companies;5. providing incentives for development of a competitive market for energy sector activities, where conditions so permit.(2) In implementation of the principle under Item 1 of Paragraph (1), the Commission may notify the Commission for the Protection of Competition for initiation of proceedings according to the procedure established by the Protection of Competition Act.Article 24. (1) (Amended, SG No. 74/2006) Implementing the power thereof referred to in Paragraph 1, Item 7a, 17a of Article 21 (1) and 135 herein, the Commission shall adhere to the following principles:1. (amended and supplemented, SG No. 74/2006) fair allocation of the economic consequences of market liberalisation between all parties to transactions in electricity and natural gas;2. (supplemented, SG No. 74/2006) ensuring equal terms for conclusion of transactions at freely negotiated prices, compared to the transactions concluded with the public provider or the public suppliers of electricity and natural gas;3. (supplemented, SG No. 74/2006) ensuring a balanced adjustment of end-user prices, taking into account the public service obligations, public obligations, and non-recoverable costs of the public provider or the public suppliers.4. (new, SG No. 74/2006) ensuring all measures required to supply consumers with electricity and natural gas of certain quality at fully comparable, transparent, and objectively set prices, applied on equal-treatment conditions.(2) The eligibility requirements for the persons entitled to conclude transactions under Article 100 (1) herein, as well as the conditions for granting network access, shall be established by rules adopted by the Commission.Article 25. (1) The Commission shall keep public registers of:1. any licences as issued, recording therein all licensees, licences issued and other particulars;2. any certificates of origin as issued, recording therein the holder and the generating capacity, the quantities of electricity for which the certificate was issued, and the period of generation;3. (repealed, SG No. 74/2006);4. (repealed, SG No. 74/2006);5. any permits as issued by the Commission under this Act.(2) (Amended, SG No. 74/2006) The particulars recordable under Items 1 and 5 of Paragraph (1), the procedure for recording in the registers and for obtaining information shall be determined in the ordinance referred to in Article 60 herein. The particulars recordable under Items 2, of Paragraph (1), the procedure for recording in the register and for obtaining information shall be determined by the ordinance referred to in Article 159 (3) herein.(3) Any decisions of the Commission to issue, modify, supplement, withdraw and terminate licences, as well as any decisions to endorse prices, shall be published in the bulletin of the Commission.Section IIIFinancing of the Commission. FeesArticle 26. (1) (Supplemented, SG No. 18/2005) The activities of the Commission and of the administration thereof shall be financed from the revenue specified under Article 27 (1) herein and in the Water-Supply and Sewerage Services Regulation Act .(2) The Commission shall be a first-level spending unit.Article 27. (1) The revenues on the budget of the Commission shall be raised from:1. (amended, SG No. 18/2005) the fees collected by the Commission under Article 28 herein and under Items 1 and 3 of Article 8 (1) of the Water-Supply and Sewerage Services Regulation Act , and any interest thereon;2. (supplemented, SG No. 18/2005) twenty per cent of the fines and pecuniary penalties provided for in this Act and in the Water-Supply and Sewerage Services Regulation Act;3. donations from persons not subject to licensing under this Act or from persons connected therewith within the meaning given by the Commerce Act.(2) (Supplemented, SG No. 18/2005) No donation may be accepted from any persons subject to licensing under this Act or subject to regulation under the Water-Supply and Sewerage Services Regulation Act from any persons connected therewith within the meaning given by the Commerce Act.(3) The resources referred to in Paragraph (1) shall be expended on:1. (supplemented, SG No. 18/2005) financing the activities of the Commission and of the administration thereof, including the conduct of studies, analyses and expert assessments associated with the regulatory activities under this Act and under the Water-Supply and Sewerage Services Regulation Act ;2. capital expenditure on development of facilities;3. upgrading the qualifications of the employees in the administration;4. incentive pay according to a procedure established in the Rules of Organization.(4) The resources referred to in Item 4 of Paragraph (3) shall be fixed at up to 25 per cent of the annual wage bill and shall be incorporated into the budget of the Commission for the respective year.(5) If the annual revenues from fees under this Act exceed or are insufficient to cover the necessary expenditures on the budget of the Commission for the succeeding calendar year, the Chairperson of the Commission may propose a review of the amount of the fees.Article 28. (1) (Amended, SG No. 18/2005) For exercise of the regulatory powers thereof under this Act and under the Water-Supply and Sewerage Services Regulation Act, the Commission shall charge fees for consideration of applications, for issuance of certificates, for sale of tender documents, licensing fees, and experts registration fees.(2) The amount of the fees covered under Paragraph (1), the procedure and time limits for payment thereof shall be established by a rate schedule approved by the Council of Ministers on a motion by the Commission.(3) (New, SG No. 74/2006) Any fees collected under the procedure of this Act and the Water-Supply and Sewerage Service Regulation Act, shall be public state receivables.Article 29. (1) The fee for consideration of an application shall be paid upon submission of the application.(2) Any persons who have obtained a licence shall pay licensing fees for each licence issued, as well as for any modification of the licence in the cases specified in the rate schedule.(3) There shall be the following licensing fees:1. initial: for issuance or modification of a licence, covering the expenses on preparation and expenses on the regulatory activity under the licence until the end of the current year;2. annual: covering the expenses on the regulatory activity under the licence for the respective year;(4) Annual fees for the term of validity of the licence, as well as for the term of any extension thereof, shall be paid by the licensee for every year succeeding the year of its issuance.(5) Licensing fees shall be fixed depending on the type of licensed activity performed and shall be differentiated on the basis of criteria determined by the rate schedule referred to in Article 28 (2) herein.Section IVPrice RegulationArticle 30. (1) The following prices shall be subject to regulation by the Commission:1. at which producers sell electricity to the public provider and/or to public suppliers;1a. (new, SG No. 74/2006, effective 1.07.2007) at which producers, within the availability set by the Commission under Article 21, Paragraph 1, Item 17a, sell electricity to the end supplier or the public provider;2. (supplemented, SG No. 74/2006) at which producers sell heat to the heat transmission company and to directly connected consumers;3. at which the heat transmission company sells heat to consumers;4. (amended, SG No. 74/2006) at which the public provider sells electricity to public suppliers, to consumers connected to the transmission network, and to the distribution company, in order to cover the technological costs of transmission;4a. (new, SG No. 74/2006, effective 1.07.2007) at which the public provider sells to end suppliers any electricity purchased under Article 21, Paragraph 1, Item 17a;5. at which the public provider sells natural gas to public suppliers of natural gas and to consumers connected to the natural gas transmission network;5a. (new, SG No. 74/2006, effective 1.07.2007) at which the public provider sells any natural gas to end suppliers of natural gas;6. at which public providers sell electricity and natural gas to consumers connected to the respective distribution networks or to public suppliers;6a. (new, SG No. 74/2006, effective 1.07.2007) at which end suppliers sell electricity and natural gas to home consumers and companies with less than 50 employees and less than 19.5 mil. BGN annual turnover;7. for transmission of electricity and natural gas to consumers through the respective transmission and/or distribution networks, except for the prices of transit transmission;8. for connection to the networks;9. for storage of natural gas.10. (new, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) for access to the electricity transmission and electricity distribution networks.(2) The prices of electricity referred to in Items 1, 4 and 6 of Paragraph (1) shall be subject to regulation until all consumers acquire the status of eligible consumers.(3) The prices of natural gas referred to in Items 5 and 6 of Paragraph (1) shall be subject to regulation until all consumers acquire the status of eligible consumers.(4) Prices of energy, natural gas and services provided by the energy companies shall not be subject to regulation by the Commission when the latter establishes the existence of competition creating prerequisites for free negotiation of the prices on market terms for the respective energy sector activity.Article 31. (Supplemented, SG No. 74/2006) In exercising its price regulation powers, in addition to the principles under Articles 23 and 24 herein, the Commission shall be guided by the following principles as well:1. prices shall be non-discriminatory, based on objective criteria and determined in a transparent manner;2. prices of energy companies shall cover the economically justified operating costs, including the costs of:(a) management, operation and maintenance of energy works;(b) maintenance of stand-by and regulating capacities required for reliable supply to consumers;(c) delivery and maintenance of the stocks of fuels;(d) repairs;(e) depreciation;(f) storage and processing of spent nuclear fuel and radioactive waste, decommissioning of nuclear facilities, and nuclear safety;3. apart from the costs covered under Item 2, prices shall include non-recoverable costs related to the transition to a competitive energy market, as well as costs resulting from fulfilment of public obligations related to security of supply;4. prices must ensure an economically justified rate of capital return;5. prices for the individual groups of consumers shall conform to the costs of delivery of energy and natural gas to the said consumers;6. avoidance of cross subsidization through the prices:(a) between individual groups of consumers;(b) for integrated energy companies: between individual activities subject to licensing under this Act, and/or between activities subject to licensing under this Act and other activities.7. (new, SG No. 74/2006) fair passing of any renewable energy source and combined electricity and heat generation preferential pricing costs to electricity end consumers;8. (new, SG No. 74/2006) fair passing of any system service, incl. ancillary services, cold reserve, and technology, costs to transmission network, respectively distribution network, users.Article 32. (1) The Commission may regulate prices by setting an upper limit for prices or income, by setting efficiency parameters for energy companies, parameters of comparability between such companies, achievement of basis criteria.(2) The Commission may determine:1. price components reflecting the cost structure;2. time-of-the-day, seasonal and other tariff structures of prices in accordance with costs.(3) (New, SG No. 74/2006) The Commission shall endorse a price of heat for end consumers as a single-component price.Article 33. (Amended, SG No. 74/2006) (1) (Amended, SG No. 49/2007) The Commission shall set preferential prices for sale of electricity generated from co-generation by combined heat and power plants under Article 162 (2) herein.(2) (Repealed, SG No. 49/2007). (3) The preferential price of any electricity produced using a combined method by plants for combined electricity and heat production under Paragraph 1 shall be set based on individual production costs plus surcharge set by the Commission on producer groups and criteria according to the ordinance under Article 35, Paragraph 3.(4) Acting on a proposal by the respective heat transmission company, the Commission shall determine a preferential price for heat for the association referred to in Article 151 (1) herein and for the supplier under Article 149a.Article 34. (1) Energy companies shall have the right to lodge requests for allowance and compensation of non-recoverable costs.(2) Non-recoverable costs shall be the costs resulting from investments made and/or transactions concluded prior to the entry of this Act into force by energy companies, which cannot be recovered as a result of the establishment of a competitive electricity market.(3) Energy companies under Paragraph (1) shall submit applications to the Commission for allowance of costs as non recoverable and establishment of the amount thereof. Any such applications shall be accompanied by evidence of the grounds for incurrence of such non-recoverable costs and the amount thereof.(4) The Commission shall determine the maximum total amount and period of compensation of allowed non-recoverable costs for each individual company.(5) The Commission, guided by the principles under Article 23 herein and taking into account the changes in competitive conditions, shall:1. recalculate annually the maximum total amount of the compensation related to non-recoverable costs;2. determine the recoverable volume for the respective period;3. allocate them among the respective energy companies.(6) The manner of compensation of non-recoverable costs will be determined in the ordinances referred in Article 36 (3) herein.(7) Compensation of non-recoverable costs shall be effected by all consumers in a non-discriminatory and transparent manner.Article 35. (1) Energy companies shall have the right to request compensation of expenses resulting from public obligations imposed thereon, including such related to security of supply, environmental protection, and energy efficiency.(2) The following shall be treated as expenses under Paragraph (1):1. resulting from obligations to purchase electricity from producers, winners of tendering procedures under Article 46 herein;2. resulting from obligations to generate electricity using local primary energy sources under Item 8 of Article 4 (2) herein;3. (amended, SG No. 49/2007) resulting from obligations to purchase electricity at preferential prices under Article 162 and under Article 15 of the Renewable and Alternative Energy Sources and Bio fuels Act herein;4. other additional obligations.(3) Energy companies under Paragraph (1) shall submit periodically to the Commission applications for compensation of such costs. The application shall be accompanied by evidence of the legal grounds and the amount of the said costs.(4) The Commission shall determine the volume of compensation for each individual company and the overall volume for compensation for the respective period.(5) The manner of compensation for costs resulting from public obligations shall be determined in the ordinances referred to in Article 36 (3) herein.(6) Costs resulting from public obligations shall be compensated by all consumers in a non-discriminatory and transparent manner.Article 36. (1) Prices that are subject to regulation shall be formed by the energy companies in compliance with the requirements of this Act and the ordinances referred to in Paragraph (3). The instructions adopted by the Commission shall be mandatory for the energy companies.(2) (Repealed, SG No. 74/2006).(3) The methods of price regulation, the rules for price formation or setting and modification, the procedure for provision of information, for submission of proposals on prices and for endorsement of prices shall be established by ordinances on electricity, heat and natural gas adopted by the Council of Ministers on a motion by the Commission.Article 36a. (New, SG No. 74/2006) (1) The public electricity and natural gas provider, the public electricity or natural gas suppliers, and the end electricity or natural gas suppliers, as well as the heat transmission companies, within one month prior to submitting the request for new price endorsement or current price modification shall publish in the media their proposal for endorsing new or modifying current prices.(2) The Commission shall endorse prices under Paragraph 1 as price limits for each licensee by a decision, which shall be an individual administrative act.(3) Within 7 days after receiving the decision under Paragraph 2, the licensee shall publish in the media the price limits endorsed and the consumer agreement prices.Section VSeparate AccountingArticle 37. (1) Energy companies shall keep separate accounts of:1. each activity subject to licensing under this Act;2. activities subject to licensing under this Act and other activities;3. each branch or company;4. activities in the cases of regulated and freely negotiated prices.(2) The rules for keeping separate accounts by energy companies, including assets for the purposes of pricing by groups of consumers, as well as the form and content of the financial statements for regulatory purposes, shall be established by a decision of the Commission according to a procedure established in the ordinances referred to in Article 36 (3) herein.Article 38. (1) Energy companies shall be obligated to submit the following to the Commission on an annual basis:1. their annual financial statements, including the notes thereto, according to the Accountancy Act, and the annual audit reports;2. reports by types of activity.(2) Energy companies shall be obligated, when so requested by the Commission for the purposes of price regulation, to submit to the Commission the entire accounting documentation and technical and economic information, including contracts concluded.Chapter FourLICENCESSection IIssuance of LicencesArticle 39. (1) The following activities shall be subject to licensing under this Act:1. generation of electricity and/or heat;2. transmission of electricity, heat and natural gas;3. distribution of electricity or natural gas;4. storage of natural gas;5. trade in electricity;6. organizing an electricity market;7. public delivery of electricity or natural gas;8. (repealed, SG No. 74/2006, effective 1.07.2007);9. transit transmission of natural gas.10. (new, SG No. 74/2006, effective 1.07.2007) electricity or natural gas supply from end suppliers;11. (new, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) electric power grid management;12. (new, SG No. 74/2006) pulling power electricity distribution over the railroad transportation distribution networks.(2) A licence shall authorize performance of any of the activities covered under Paragraph (1) subject to the conditions stated therein and shall constitute an integral part of the decision on the issuance thereof.(3) Where a licence is issued for performance of any of the activities covered under Paragraph (1) before construction of the energy work required for implementation of the said activity, the licence shall state the conditions for construction of the said work and a time limit for commencement of the licensed activity.(4) (Amended, SG No. 74/2006) Issuance of a licence shall not be required for:1. electricity generation by person, having a plant with a total installed electric power up to 5 MW;2. heat generation by person, having a plant with a total installed heat generating capacity up to 5 MW;3. heat transmission by person, having a heat transmission network, connecting plants with a total installed power up to 5 MW;4. generation of heat for own consumption only.(5) (New, SG No. 74/2006) When the person, applying for licence for any activity under Paragraph 1, Items 1-3, 5-8, 10, or 11, or having such licence, meets the requirements for a balancing group coordinator, the respective licence shall also contain all rights and obligations, related to the balancing group coordinator activities.Article 40. (1) A licence shall be issued to a legal person registered under the Commerce Act which:1. possesses the technical and financial capabilities, material and human resources and organizational structure required to meet the regulatory requirements for performance of the licensed activity;2. (amended and supplemented, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) holds real rights to the energy works whereby the activity is to be performed, if the said facilities are constructed, with the exception of the licensees referred to in Items 5, 6, 7, 8, and 11 of Article 39 (1) herein;3. furnishes evidence that the energy works whereby the licensed activity s to be performed meet the regulatory requirements for safe operation and environmental protection.(2) The terms established by Items 1 to 3 of Paragraph (1) must be fulfilled at the time of commencement of the licensed activity in case of issuance of a licence under Article 39 (3) herein.(3) (New, SG No. 65/2006) A licence referred to in Article 39, Paragraph (1), Item 4 shall be issued in compliance with the provisions of Articles 118a (3) - (6) of the Water Act.(4) (Renumbered from Paragraph 3, SG No. 65/2006) A licence shall not be issued to any person which:1. is subject to instituted bankruptcy proceedings or has been adjudicated bankrupt;2. is placed in liquidation;3. has had a licence for the same activity withdrawn or the issuance of a such licence has been refused thereto, and the period referred to in Article 59 (3) herein or under Article 41 (4) herein has not yet expired.(5) (Renumbered from Paragraph 4, SG No. 65/2006) A licence shall not be issued if there is a risk to the life and health of citizens, to property of third parties and to the interests of consumers, of disturbing the reliable supply of electricity, heat and natural gas.(6) (Renumbered from Paragraph 5, SG No. 65/2006) In cases where one and the same person performs more than one of the activities subject to licensing, separate licences shall be issued for each of the said activities. The Commission shall ensure that there are no conflicts in the regime of performance of the individual licensed activities.(*) (7) (New, SG No. 74/2006, effective as of the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) A licence under Paragraph 1 shall also be issued to a legal person, registered under the law of any member country of the European Union, or any other country, which is party to the European Economic Area Agreement, under the terms of Paragraphs 1-5.----------------------(*) Editor's note: The Energy Act Amendment Act of SG No. 74/2006, in its Article 40, creates a new Paragraph 6, which is not brought in accordance with the order of Paragraphs in this Article. With the amendments of the Water Act Amendment Act of SG No. 65/2006, Paragraph 6 is already created.----------------------Article 41. (1) The procedure for the issuance of a licence shall be initiated acting on a written application accompanied by all documents required for the issuance of a licence.(2) Should the licensed activity be performed at prices subject to regulation under this Act, an application for endorsement of the said prices shall be submitted attached to the application referred to in Paragraph (1).(3) Within three months after submission of any application referred to in Paragraphs (1) and (2), the Commission shall issue a licence or shall refuse to issue a licence by a reasoned decision and shall endorse or determine the relevant prices.(4) In cases of refusal, the applicant may submit a new request for the issuance of a licence not earlier than three months after the decision on a refusal or, respectively, after the entry into effect of the judgment of court whereby any appeal is dismissed as unfounded.Article 42. (1) Licences shall be issued for a term of validity not exceeding 35 years in accordance with the requirements of the ordinance referred to in Article 60 herein.(2) The term of validity of a licence may be extended for a period not exceeding the term referred to in Paragraph, provided that the licensee satisfies the conditions established by the law and fulfils all obligations and requirements under the licence and has submitted a written request for an extension at least one year prior to the expiry of the term of the original licence.(3) In a decision to extend the term of validity under Paragraph (2), the Commission shall also determine the conditions for performance of the activity for the new term of validity of the licence.Article 43. (1) Only a single licence shall be issued within the national territory for:1. transmission of electricity or of natural gas;2. organizing an electricity market;3. public delivery of electricity or of natural gas;4. (new, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) electric power grid management.(2) Only a single licence shall be issued for one self contained area for:1. distribution of electricity or of natural gas;2. (repealed, SG No. 74/2006, effective 1.07.2007);2a. (new, SG No. 74/2006) electricity or natural gas supply by end suppliers;3. transmission of heat.(3) A self-contained area for distribution of electricity shall comprise not fewer than 150,000 consumers connected to the adjoining distribution network and shall be coextensive with at least one administrative region according to the territorial administration of Bulgaria.(4) (New, SG No. 74/2006, effective 1.07.2007) For a self-contained area under Paragraph 3, a single licence on electricity supply from end suppliers shall be issued.(5) (Renumbered from Paragraph 4, SG No. 74/2006) A self-contained areas for distribution of natural gas shall comprise not fewer than 50,000 consumers, which may be connected to the adjoining distribution network, and the boundaries thereof shall be determined by the inventory referred to in Item 6 of Article 4 (2) herein.(6) (New, SG No. 74/2006, effective 1.07.2007) For a self-contained area under Paragraph 5, a single licence on natural gas supply from end suppliers shall be issued.(7) (Renumbered from Paragraph 5, SG No. 74/2006) A self-contained area for transmission of heat shall be designated conforming to the projections of the approved spatial development schemes and plans of the nucleated settlement.(8) (Renumbered from Paragraph 6, amended SG No. 74/2006) The provision made in Paragraph 6 shall not apply, where an interest has been expressed in natural gas supply of a particular area which is not included in the inventory referred to in Item 6 of Article 4 (2) herein. In this case, the area, subject to investment interest, shall be designated as a self-contained area for natural gas distribution. Licences on natural gas distribution, as well as on public supply or natural gas supply from end supplier in this area, shall be issued without a tender for the interested investor under the terms of Section I of this Chapter and according to the procedure in the ordinance under Article 60, after coordinating with the respective municipality.(9) (Renumbered from Paragraph 7, amended, SG No. 74/2006) If there is more than one gas supply request for the area under Paragraph 8 submitted, the Commission shall announce a tender under the terms of Section II of this Chapter and according to procedure in the ordinance under Article 60.(10) (Renumbered from Paragraph 8, amended, SG No. 74/2006) By Commission decision to amend the licence, the area of the municipality, which is outside the list under Article 4, Paragraph 2, may be joined to a self-contained area for natural gas distribution upon declared request by the respective municipality and consent of the titleholder of the natural gas distribution licence for the self-contained area.(11) (New, SG No. 74/2006) Provisions of Paragraphs 8 and 9 shall not apply, when the consent under Paragraph 10 by the titleholder of the natural gas distribution licence for the self-contained area has been obtained.(12) (New, SG No. 74/2006) For the territory of the country, a single pulling power electricity distribution licence shall be issued only for the railroad transportation distribution networks to the National Railroad Infrastructure Company.Article 44. (1) (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) Any person where to a licence for electricity system management has been issued may not be issued a licence for another activity subject to licensing under this Act, except a licence for organizing an electricity market.(2) Any person where to a licence for natural gas transmission has been issued may not be issued a licence for another activity subject to licensing under this Act, except a licence for storage of natural gas and a licence for transit transmission of natural gas. Any persons where to a licence for transmission of natural gas has been issued may not engage in natural gas trade.(3) (Amended, SG No. 74/2006) Any persons where to licences for distribution of electricity have been issued may not be issued licences for other activities subject to licensing under this Act.(4) (New, SG No. 74/2006) Any persons where to licences for natural gas distribution have been issued may not be issued licences for other activities, subject to licensing under this Act, except licences for public natural gas supply or natural gas supply from an end supplier, if the consumers attached to the gas distribution network in the respective area are less than 100 000.Article 45. A licence shall state:1. the designation of the licensee;2. the activity for which the licence is issued;3. the works whereby the licensed activity is to be performed;4. the territorial scope of the licence for the activities for which it is required;5. the term of validity of the licence;6. the types of insurance, the risks covered, and the amount of insurance cover which the licensee is obligated to maintain as long as it performs the licensed activity;7. requirements for decommissioning of the energy works whereby the activity is to be performed;8. any other special regulatory requirements related to performance of the licensed activity.Section IITendering ProcedureArticle 46. (1) Solely in the cases of a need of a new electricity generating capacity, ascertained and made public according to the procedure established by Item 5 of Article 4 (2), the holder of the licence stating an obligation to construct the said capacity shall be selected by a tendering procedure.(2) The holders of licences for distribution of natural gas for self-contained areas designated by the inventory referred to in Item 6 of Article 4 (2) herein shall be selected by tendering procedures.(3) The winner of a tendering procedure under Paragraph (1) or Paragraph (2) shall be issued a licence under Article 39 (3) herein.(4) (Supplemented, SG No. 74/2006, effective as of the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) Where the winner in a tendering procedure is a non-resident person, not registered in a member country of the European Union, or another country party to the European Economic Area Agreement, the licence shall be issued to a corporation registered under the Commerce Act wherein the non-resident person holds at least 67 per cent of the corporate capital. Any such person shall have no right to transfer the participating interest thereof in the licensee corporation to a third party until the date of commencement of the licensed activity.(5) The public provider shall conclude a contract for purchase of electricity with the winner of the tendering procedure under Paragraph (1).Article 47. (1) A tendering procedure shall be announced by the Commission in accordance with the inventory referred to in Item 5 or 6 of Article 4 (2) herein and shall be held under terms and according to a procedure established by the ordinance referred to in Article 60 herein.(2) The tender documents shall be prepared in accordance with the ordinance referred to in Article 60 herein and shall be endorsed by the Commission. The tender documents shall include a draft licence and, in the case under Article 46 (1) herein, also a drafts a contract for purchase of electricity.(3) The tendering procedure shall be announced by a decision of the Commission which shall be promulgated in the State Gazette not later than six months before the time limit for submission of applications for participation in the tendering procedure. The decision of the Commission announcing the tendering procedure shall be appealable solely together with the decision declaring the winner of the tendering procedure.Article 48. Where no application is received by the time limit for submission of applications for participation in the tendering procedure, or where only a single such application is received, the said time limit may be extended by not more than 60 days reckoned from the date of promulgation of the notice of extension of the time limit in the State Gazette. In such a case, the date of conduct of the tendering procedure shall be changed as well.Article 49. (1) The Commission shall adopt a decision appointing a tender board for conduct of the tendering procedure, chaired by a member of the Commission. The said board shall include employees of the administration of the Commission and, depending of the subject of the tendering procedure, also representatives of the municipalities concerned and interested central- government departments and organizations as well.(2) The tender board shall consider and evaluate the bids of the candidates and shall propose to the Commission to make a decision designating the winner of the tendering procedure.(3) (Amended, SG No. 74/2006) Within 14 days after receipt of the proposal of the tender board, the Commission shall rank the candidates, shall adopt a reasoned decision designating the winner of the tendering procedure and shall issue the respective license thereto.(4) (Amended, SG No. 74/2006) The Commission shall notify the candidates on its decision referred to in Paragraph 3.Article 50. (1) The Commission shall cancel the tendering procedure and shall announce a new tendering procedure where:1. only a single candidate has appeared, or2. the proposals of the candidates are not responsive to the tendering procedure requirements.(2) Should after the tendering procedure is re-announced only a single candidate has appeared, the Commission shall declare the said candidate the winner of the tendering procedure, provided that the said candidate is responsive to the tendering procedure requirements.Section IIIModifications, Supplementations, Terminationand Withdrawal of LicencesArticle 51. (1) A licence may be modified and/or supplemented by a decision of the Commission:1. at the request of the licensee;2. on the Commission's own initiative.(2) The Commission shall have the right to initiate a modification and/or supplementation of a licence as issued in the following cases:1. in order to ensure reliability or uninterrupted and high quality supply of electricity, heat and natural gas to consumers;2. upon change in the relevant legislation;3. to safeguard national security and public order in coordination with the relevant competent state bodies;4. in case of risk to the life and health of citizens, of damage to the environment or to the property of third parties, when this does not necessitate withdrawal of the licence, and/or on a motion by specialized state bodies in pursuance of the powers vested therein;5. should corporate transformation of a licensee or a capital improvement transaction is authorized, where this does not lead to termination of the licence.(3) The Commission shall inform the licensee in writing of the initiation of a proceeding for modification and/or supplementation of the licence under Paragraph (2). Within fourteen days, the licensee may submit a written opinion regarding the grounds for the modification and/or supplementation of the licence.(4) The Commission shall modify and/or amend the licence after expiry of the time limit referred to in Paragraph (3).(5) The licensee may request modification and/or supplementation of the licence in respect of the utilized primary energy sources and/or the technology of energy conversion.(6) The holder of a licence under Article 39 (3) herein, issued after a tendering procedure, may request modification and/or supplementation of the said licence before commencement of the licensed activity solely by reason of occurrence of circumstances beyond the control of the holder.Article 52. (1) The Commission shall authorize the corporate transformation of a licensee through merger by acquisition, merger by the formation of a new company, division by the formation of new companies, division by acquisition, and division by the formation of a wholly owned commercial corporation or through change of the legal form of business organization if the person that will perform the licensed activity after the corporate transformation is responsive to the eligibility requirements for issuance of a licence for the activity.(2) In the cases under Paragraph (1), the Commission shall modify or terminate the existing licence and/or shall issue a new licence depending on the particular case within one month after submission of the application. The termination, modification or issuance of a licence shall become effective as from the date of recording of the corporate transformation in the commercial register.(3) (New, SG No. 74/2006, effective as of the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The termination, modification or issuance of a licence in the Republic of Bulgaria upon any transformation of a legal person, having a licence issued under Article 40, Paragraph 6, shall become effective on the date when said transformation of the legal person under the law of country, where it is registered, becomes effective.Article 53. (1) Capital improvement transactions in any construction works in progress or in any property whereby the licensed activity is performed may be effected solely in their entirety, subject to advance authorization by the Commission, including when the licensee is adjudicated bankrupt.(2) In the cases under Paragraph (1), where the licence is issued for generation of electricity and/or heat and the activity is performed by means of generating capacities (units) which can technologically be operated independently of one other, an individual unit may be the subject of a transaction. In such a case, the original licence shall be modified or supplemented.(3) Where termination or modification of a licence under Paragraph (1) or (2) could lead to disturbance of the security of supply of electricity, heat or natural gas, the Commission shall authorize conduct of the capital improvement transaction provided the transferee under the said transaction has submitted an application and is responsive to the conditions for issuance of a licence for the respective activity. The licence issued to the transferee shall become effective as from the date of the transfer transaction.(4) Where termination or modification of a licence under Paragraph (1) or (2) does not lead to disturbance of the security of supply, the Commission may authorize conduct of the capital improvement transaction regardless of whether the transferee has submitted an application for issuance of a licence.(5) The Commission shall also authorize conduct of the capital improvement transaction in the cases of pledge or mortgage on the property whereby the licensed activity is performed.(6) No authorization shall be required in cases of replacement or modernization, or where such disposition does not lead to change of the terms under which the licensed activity is performed.(7) Any transactions concluded in violation of the foregoing paragraphs shall be declared null and void by the court on a petition by the Commission, the prosecutor, or any interested party.(8) The Commission shall consider the requests covered under Paragraphs (1) to (4) within three months after submission of the application, and the requests referred to in Paragraph (5) within one month.Article 54. (1) No authorization under Article 53 herein shall be required upon privatization of a self-contained part of an energy company.(2) The Commission shall issue a licence to the transferee in a privatization transaction referred to in Paragraph (1) if the said transferee has requested issuance of a licence and is responsive to requirements for issuance of such a licence.Article 55. (1) A licence shall be terminated by a decision of the Commission:1. at the request of the licensee, including upon transfer of the property whereby the licensed activity is performed, under the terms established by Article 53 herein;2. in the event of a total loss of the energy work whereby the licensee performs the activity thereof;3. upon corporate transformation of the licensee, where the said transformation leads to dissolution of the legal person which is the holder of the licence;4. entry into effect of a judgment of court adjudicating the licensee bankrupt or of a judgment on cessation of operation owing to the placing of the licensee in liquidation beside the cases under Article 61 herein.(2) (Amended, SG No. 74/2006) The Commission may, upon written notification, terminate the licence, should the licensee fail to exercise the licensed activity for a period exceeding one year.(3) A licence shall be terminated upon expiry of the term of validity thereof, except in the cases under Article 56 herein.(4) The decision to terminate a licence shall be a precondition for consideration by the competent court of a petition for recording of liquidators upon cessation of the operation of the legal person which is the holder of the licence.(5) In cases of termination of the licence under Item 1 of Paragraph (1) and Paragraph (2) under terms specified in the ordinance referred to in Article 60 herein, the Commission shall have the right to order the licensee to transfer to a third party the property whereby the licensed activity is performed in its entirety or to create a right of use of the said property, should the transferee in the said transaction is a licensee or has submitted an application and is responsive to the requirements for issuance of a licence for the respective activity. In case the licensee fails to transfer the ownership or to create a real right of use within one month after termination of the licence, the provisions of Article 56 (4) to (11) shall apply accordingly.Article 56. (1) Not later than one year before expiry of the term of validity of the licence, the licensee shall be obligated:1. to submit an application for extension of the said term, or2. to notify the Commission that it will not perform the licensed activity after expiry of the said term.(2) Where, after expiry of the term of validity of a licence, the energy work whereby the licensed activity was performed is subject to final decommissioning for technical reasons, the Commission shall extend the term of validity of the licence until the final decommissioning of the said energy work.(3) In the case under Item 2 of Paragraph (1), or should the Commission refuse to extend the term of validity of the licence if cessation of the licensed activity could lead to disturbance of the security of supply of electricity, heat or natural gas to consumers, or a risk to national security and public order could arise, the licensee shall be obligated to transfer the ownership thereof to a third party or to create a right of use of the property whereby the licensed activity is performed solely in its entirety, according to the procedure established by Article 53 (1) and (3) herein.(4) Where the licensee fails to fulfil the obligations thereof under Paragraph (3) not later than 60 days prior to expiry of the term of validity of the licence or the Commission refuses to authorize the capital improvement transaction, the Commission shall appoint a special commercial administrator who:1. shall accept, against a checklist, the works whereby the licensed activity was performed, where the said facilities are transferred thereto for management, effective the first day following the expiry of the term of validity of the licence, and2. shall continue performance of the licensed activity for the account of the licensee until transfer of ownership of the energy works and selection of a new licensee.(5) The special commercial administrator shall be selected by mutual consent of the licensee and the Commission not later than 30 days prior to expiry of the term of validity of the licence. Should no agreement be reached, the special commercial administrator shall be designated by the Commission.(6) The special commercial administrator shall have the right to perform solely activities and transactions directly related to the licensed activity and shall have no right to alienate or encumber any corporeal immovables, as well as to perform any activities determined by the Commission by the act of appointment.(7) The name and address of the special commercial administrator as appointed shall be recorded in the commercial register at the request of the Chairperson of the Commission and shall be promulgated in the State Gazette.(8) After recording of the special commercial administrator in the commercial register, the management bodies of the licensee may perform solely activities related to the preparation and conclusion of a capital improvement transaction under Paragraph (3).(9) In cases of appeal against a refusal by the Commission, the licensee shall continue to perform the activity until the final judgment of the court on the appeal.(10) The circumstances under Paragraph (3) shall be ascertained in coordination with the relevant competent state bodies.(11) Eligibility for appointment as a special commercial administrator shall be limited to persons responsive to the following requirements:1. higher education and professional experience in management of energy companies;2. no conviction, after reaching majority, of a premeditated offence at public law, unless rehabilitated;3. no relations with the licensee give grounds for reasonable doubt as to the impartiality of the said persons.Article 57. (1) In cases where a licensee requests termination of the licence prior to expiry of the term of validity thereof and if cessation of the licensed activity could lead to disturbance of the security of supply of electricity, heat or natural gas to consumers, or a risk to national security or public order could arise, the said licence shall be obligated to continue to perform the licensed activity until issuance of a new license to another person according to the procedure established by Article 56 (3) herein.(2) If no new licensee is selected according to the procedure established by Paragraph (1) during the period of the notice whereby the licensee has requested termination of the licence, the procedure established by Article 56 (4), (5), (6), (7), (9) and (11) herein shall apply, mutatis mutandis.Article 58. (1) Upon submission of an application requesting termination of a licence issued after a tendering procedure, the Commission shall evaluate the request in view of the needs of the national overall forecast energy balance and the secure and reliable supply of energy and natural gas to consumers.(2) The holder of a licence selected by tendering procedure may submit a request for termination of the said licence in case that the said holder has transferred the construction work in progress to a third party, under the terms established by Article 53 (1) herein.Article 59. (1) After a written warning fixing a time limit, the Commission shall withdraw the licence:1. where the licensee fails to perform or violates the obligations thereof under Chapters Six and Seven herein;2. where the licensee fails to perform or violates the obligations there under the licence as issued;3. where the licensee fails to perform within the prescribed time limit or breaches any prescriptions of the control authorities of the Commission or coercive administrative measures imposed by the Commission;4. where the licensee has submitted untrue information which has served as grounds for issuance of the licence.(2) The licence shall furthermore be withdrawn where a licence for operation of a nuclear facility, issued under the Safe Use of Nuclear Power Act, has been withdrawn from the licensee by an effective administrative act.(3) (Amended, SG No. 74/2006) The Commission may withdraw a licence for distribution of natural gas, issued after a tendering procedure, if the licensee fails to construct the relevant natural gas distribution network indicated in the tender thereof within the time limit fixed in the licence. In such a case, a new tendering procedure shall be held according to the procedure established by this Act for the area vacated.(4) The decision to withdraw a licence shall fix a time period during which the person may not apply for issuance of a new licence for the same activity. The said time period may not be shorter than two years.(5) Withdrawal of a licence shall not override the enforcement of administrative or criminal liability for a violation committed, if the preconditions for this exist.(6) By a decision to withdraw a licence, the Commission shall appoints a special administrator vested with powers according to Article 56 (4) until the final judgment of the Supreme Administrative Court, in the event of appeal.Article 60. The terms and procedure for the issuance, modification, supplementation, termination and withdrawal of licences, for the issuance of authorizations under this Chapter, for approval of the general conditions of contracts under this Act, for supply of electricity, heat and natural gas to consumers, as well as for amicable settlement of disputes under Article 22 herein, shall be established by an ordinance adopted by the Council of Ministers on a motion by the Commission.Article 61. The relations associated with the insolvency and bankruptcy of an energy company which has obtained a licence for transmission of electricity, heat and natural gas, for distribution of electricity or natural gas, as well as the persons which have obtained licences for public delivery or public supply of electricity or natural gas using works on the list of energy works of strategic national importance, as approved by the Council of Ministers, shall be regulated by a special law.Chapter FiveREAL RIGHTSSection IBuilding Right. CondemnationArticle 62. (Amended, SG No. 74/2006) (1) Where site and/or linear energy works, as well as ground or underground hydro-technological electricity generation facilities or parts thereof are constructed or expanded on a corporeal immovable constituting private state property or private municipal ownership, the competent state or municipal authorities shall create an onerous building right to the land tract without auction or tendering procedure in favour of the person to operate the energy site.(2) The building right value shall be determined by an independent licensed evaluator, selected by the competent state or municipal authority according to the Public Procurement Act procedure. The value determined by the licensed evaluator shall be taken as the lowest market price that may be paid for the right to build on the specific property.(3) Where site and/or energy works, as well as ground and underground hydro-technological electricity generation facilities or parts thereof have to be constructed or expanded on a corporeal immovable constituting private property, the energy company must acquire in advance and onerously a right or ownership or a building right to the land tract required for construction of the work.Article 63. (1) (Amended, SG No. 74/2006) In case of refusal or of impossibility to implement the activities under Article 62 (3) herein for reasons beyond the control of the energy company, the corporeal immovable shall be condemned.(2) Any condemnation referred to in Paragraph (1) shall be effected under the terms and according to the procedure established by the State Property Act.(3) The energy company may use the corporeal immovable solely for the purposes of the condemnation.Section IIServitudesArticle 64. (1) (Amended and supplemented, SG No. 74/2006) Upon expansion of existing overhead and underground electric power lines of ground and underground hydro-technological electricity generation facilities, heating mains, oil and gas pipelines, and oil-product lines and upon construction of new such lines and mains, servitudes shall arise in favour of the energy companies. Servitudes under this Act shall be reflected in the cadastre and shall be recorded under the terms and according to the procedure established by the Cadastre and Property Register Act.(2) There shall be the following servitudes under this Act:1. a rights of passage of persons and machinery in favour of the energy company;2. (amended and supplemented, SG No. 74/2006) a rights of laying overhead and underground electric power lines of ground and underground hydro-technological electricity generation facilities, heating mains, oil and gas pipelines, and oil-product pipelines in favour of the energy company;3. limitation on use of lots adjoining the energy works.(3) Upon exercise of servitudes:1. the energy company shall acquire the right:(a) (amended and supplemented, SG No. 74/2006) to lay overhead and underground electric power lines, heating mains, gas and oil pipelines, and oil product pipelines in favour of the energy company;(b) for representatives of the energy company, to enter into and pass through the servient estates and to perform activities therein in connection with the operation of energy works, including a right of passage of machinery through the servient estates in connection with the construction and maintenance of overhead and underground lines;2. the following shall be impermissible in the servient estates:(a) building development or plantation of perennial plants in the servitude strip, designated in the ordinance referred to in Paragraph (9);(b) laying of line of other physical-infrastructure networks, except in the cases when this is permissible under a statutory instrument, complying with the relevant technical requirements;3. the change in the ownership of the corporeal immovable shall not terminate the effect of the servitudes in respect of the dominant estate and in respect of the servient estate;4. servitudes shall be inseparable rights; they may be exercised entirely in favour of each part of the dominant estate and shall entirely encumber each part of the servient estate, even where the two estates are separated;5. a servitude may be used solely for the needs of the dominant estate;6. the owner of the servient estate shall have no right to relocate the servitude.(4) Servitudes under Paragraph (2) shall arise when:1. there is an effective detailed plan, whereby the location of the respective corporeal immovables is determined, and2. a lump-sum compensation has been paid to the owner of the immovable whereon the servitude has arisen.(5) The holder of the servitude shall pay a lump-sum compensation to the owner of the land tract.(6) (Supplemented, SG No. 74/2006) The amount of compensations under this Chapter shall be determined according to the procedure established by Articles 210 and 211 of the Spatial Development Act or by mutual consent by both parties with an evaluation by a licensed evaluator.(7) The energy company shall exercise the servitude right conforming to the technical requirements established by the ordinance referred to in Paragraph (9).(8) In case the servitude zone falls within a corporeal immovable in respect of which a building right has been created in favour of the energy company, the servitude on the said corporeal immovable shall be stipulated in the act creating a building right.(9) The size, location and special exercise regime of servitudes shall be specific to the different types of energy works and shall be determined according to a procedure and in a manner provided for in an ordinance of the Minister of Economy and Energy, the Minister of Agriculture and Forestry, and the Minister of Regional Development and Public Works.Article 65. (1) The amount of the compensation referred to in Article 64 (5) herein shall be determined applying the following criteria:1. the surface area of others' lots incorporated within the servitude boundaries;2. the types of limitations on use;3. the period of the limitation;4. the assessed fair market value of the corporeal immovable or of the part thereof which falls within the servitude boundaries.(2) Notwithstanding any compensation referred to in Paragraph (1), the energy company shall be obligated to repair all damages caused to the corporeal immovable or to pay a respective pecuniary compensation.Article 66. The type and location of the energy works and of the surface areas of servient estates incorporated within the servitude boundaries under this Act shall determined in master plans and detailed plans.Article 67. (1) Any representatives of the energy companies and any officials who exercise control under this Act may enter into and pass through others' corporeal immovables and perform activities therein in connection with the operation of the energy works or for control over the said facilities.(2) (Amended and supplemented, SG No. 74/2006) Energy companies shall have the right to use gratuitously bridges, roads, streets, sidewalks and other corporeal immovables constituting public property for the laying, connection, passage and maintenance of overhead and underground electric power lines, heating mains, gas pipelines, water mains for power generation purposes, oil and oil product pipelines, while ensuring technical safety and taking measures for prevention of detriment.(3) Energy companies shall use gratuitously parts of buildings for installation of metering devices and other equipment related to delivery of electricity, heat and natural gas.(4) Owners of the corporeal immovables covered under Paragraphs (1) to (3) shall be entitled to compensation for any detriment sustained.Article 68. (1) Where an owner, user or lessee of the corporeal immovable performs unauthorized building development, enclosure, planting or any other violation of the servitude exercise regime, the energy company shall have the right to approach the competent authorities with a request for removal of the illegal construction works for the account of the said owner, user or lessee, unless the said owner, user or lessee removes the said works within a time limit set by the energy company.(2) In the cases under Paragraph (1), the energy company shall not owe any compensation for the damage sustained.Chapter SixPUBLIC OBLIGATIONSArticle 69. Energy companies shall be obligated to perform the operation thereof in the interest of the public and of the individual consumers and in accordance with the requirements established by this Act and the other statutory instruments, ensuring the security of supply, the non-interruption and the quality of electricity, heat and natural gas, the efficient utilization of fuels and energy, the protection of the environment, the life, health and property of citizens.Article 70. (1) The Minister of Economy and Energy may impose additional public service obligations on energy companies.(2) Additional obligations referred to in Paragraph (1) shall be imposed, where related to:1. non-interruption of deliveries of electricity, heat and natural gas, and2. protection of the environment: in consultation with the Minister of Environment and Water.(3) The additional obligations referred to in Paragraph (1) shall be imposed by an order stating:1. the person whereon the obligation is imposed;2. the content of the obligation;3. the time limit and terms under which the obligation must be performed;4. other terms and conditions.(4) Any supplementary costs incurred by the energy companies under Paragraph (3) shall be allowed as expenses under Article 35 herein.Article 71. (Supplemented, SG No. 74/2006, on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The energy companies managing the electric power grid, carrying out transmission of electricity, heat and natural gas or for distribution of electricity and natural gas, which provide a universal service and which have a dominant position on the market within the meaning given by the Protection of Competition Act, shall be subject to the provisions of the said Act insofar as this does not prevent them, de facto or de jure, from performing the obligations assigned thereto.Chapter SevenSCHEDULED OUTAGE REGIME, TEMPORARY INTERRUPTION OR LIMITATIONArticle 72. (1) A scheduled outage regime for the supply of electricity, heat or natural gas may be introduced whenever the said supply has to be limited or interrupted for a duration exceeding 48 hours within the entire national territory or any part thereof as a result of:1. force majeure;2. occurrence, or for prevention, of breakdowns of facilities for generation and transmission of electricity, heat or natural gas and for distribution of electricity and natural gas;3. a sustained shortage of power generation facilities or energy resources;4. measures ordered by state bodies regarding an alert status or in case of hostilities;5. terrorist acts.(2) The Minister of Economy and Energy or a Deputy Minister empowered thereby shall be the authority competent to make decisions on introduction of a scheduled outage regime within the national territory.(3) The mayors shall designate a scheduled outage regime for heat and natural gas within the territory of the municipality after consultation with the Minister of Economy and Energy, in accordance with the ordinance referred to in Article 74 (1) herein.(4) The introduction of a scheduled outage regime or of the restrictive conditions under Paragraphs (1) to (3) shall be announced by the Minister of Economy and Energy through the mass communication media.Article 73. (1) The operators of the electric power grid, of the heat transmission network, of the natural gas transmission network, or the relevant distribution network operator may order a suspension or limitation of the generation or supply of electricity, heat or natural gas without prior notification of producers and consumers:1. upon occurrence, or for prevention, of breakdowns;2. where human health or life is endangered;3. where the integrity of the electric power grid, the heat transmission system or the natural gas transmission system is endangered;4. in case the system, respectively the network or the consumers, risk sustaining substantial physical damage;5. in case of risk of excessive environmental pollution, on a motion by the competent authorities within the meaning given by Article 10 (1) of the Environmental Protection Act ;6. upon limitation of deliveries of natural gas for reasons beyond the control of the transmission company.(2) The operators covered under Paragraph (1) shall be obligated to notify in advance producers and consumers of the time and duration of the interruption or limitation upon performance of repair works, operating switchovers, commissioning of new facilities and other such schedulable activities.(3) The duration of an interruption or limitation under Paragraph (1) may not exceed 48 hours.Article 74. (1) The procedure for introduction of a scheduled outage regime, temporary interruption or limitation of generation or supply of electricity, heat and natural gas shall be established by an ordinance of the Minister of Economy and Energy.(2) Energy companies shall not be liable to pay compensation for any damages inflicted as a result of a scheduled outage regime, temporary interruption or limitation of generation or supply of electricity, heat or natural gas with the exception of the cases where the breakdowns or sustained shortage has occurred through the fault of the said companies.Chapter EightCONTROL IN THE ENERGY SECTORArticle 75. (1) (Amended, SG No. 74/2006) The Minister of Economy and Energy shall exercise preventive, current and follow-up control over:1. (amended, SG No. 74/2006) the technical condition and the operation of the energy works;2. application of the procedure and technical terms for heat supply, disconnection of heat delivery and application of share allocation of heat;3. fulfilment of the obligation to build and store stocks of fuels required for secure and uninterrupted energy supply;4. the readiness of the energy works to operate in emergency and in wartime;5. (amended, SG No. 74/2006) fulfilment of the obligations under this Act to provide information to the Ministry of Economy and Energy.(2) The Commission shall exercise control over:1. compliance with the terms of the licences as issued;2. application of the prices referred to in Article 30 (1) herein;3. (repealed, SG No. 74/2006);Article 76. (1) The Commission shall control the conformity of the licensed activities performed with the conditions of the licences as issued.(2) The Commission shall exercise preventive, current and follow-up control.(3) The Commission shall exercise preventive control over the procedures for issuance of licences under this Act.(4) The Commission shall exercise current control over the conformity of the performance of the licensed activity with the licence conditions, including:1. compliance with the requirements for security of deliveries of electricity, heat and natural gas and for efficient use of energy and energy resources;2. fulfilment of the obligations to provide access to the networks;3. application of the prices endorsed by the Commission;4. fulfilment or readiness to fulfil additional obligations for cessation of the licensed activity after expiry of the term of validity of the licence or upon termination of the said licence, as well as for decommissioning of energy works;5. fulfilment of the obligations to insure the property whereby the licensed activity is performed or to fulfil the financial security obligations;6. fulfilment of the obligations to provide information to the Commission;7. fulfilment of the obligations to provide information to the relevant system operator;8. checking the justifiability of complaints and alerts against energy companies, including breaches of contracts, non-fulfilment of obligations for connection of producers and consumers to the networks, or interruption of energy or natural gas supply;9. other conditions specified in the licence.(5) The Commission shall exercise follow-up control over the implementation of recommendations and prescriptions issued to licensees.Article 77. (1) In exercise of the control powers thereof, the Minister of Economy and Energy shall:1. conduct inspections through persons authorized thereby;2. notify the specialized control authorities with a view to taking measures within the scope of the competence of the said authorities;3. impose coercive administrative measures and administrative sanctions provided for by this Act.(2) In exercise of the control powers thereof, the Commission shall:1. conduct inspections through persons authorized thereby;2. notify the specialized control authorities with a view to taking measures within the scope of the competence of the said authorities;3. suspend the operation, modify or withdraw a licence as issued;4. impose coercive administrative measures and administrative sanctions provided for by this Act.(3) The Minister of Economy and Energy or the Commission, as the case may be, shall have the right to demand from persons inspected to provide information regarding the operation thereof, the documents required in connection with the exercise of control and, where necessary, to approach the specialized control authorities for assistance.Article 78. (1) The persons who conduct inspections and who draw up statements ascertaining violations committed shall be designated by an order of the Minister of Economy and Energy or by the Chairperson of the Commission depending on the competence vested therein under this Act.(2) The persons referred to in Paragraph (1), hereinafter referred to as the "control authorities," shall have the right:1. to unimpeded access to the persons and works controlled thereby for inspection;2. to demand from the relevant officials to produce the required data, information, explanations, operating and other information, including the performance or the commissioning of performance of expert assessments, measurements and tests in order to clarify the technical conditions and the service conditions of the work, including the licensed competence of the personnel, as well as any other information relevant to ensuring compliance with the conditions of the licence;3. to conduct cross-checks and to demand from third parties to provide information and documents required for conduct of such cross-checks;4. to make proposals for issuance of mandatory prescriptions;5. to make proposals for imposition of coercive administrative measures and administrative sanctions.(3) The person inspected shall be obligated to ensure all conditions required for the normal conduct of the inspection and to cooperate with the control authorities and, to this end:1. provide a place for conduct of the inspection or present himself or herself at the building of the Ministry or of the Commission, as the case may be;2. designate an employee thereof to liaise with and render assistance to the officials who conduct the inspection;3. provide access to official premises;4. produce all accounting, business and other documents required for establishment of facts and circumstances relevant to the scope of the inspection;5. provide written explanations at the request of the control authority.(4) The prescriptions issued by control authorities in exercise of the powers vested therein under this Act shall be mandatory.Article 79. (1) The control authorities shall be obligated to safeguard any official, production and commercial secrets that have come to the knowledge thereof in the course of or in connection with the implementation of control activities.(2) The control authorities shall perform the activity thereof independently or, where necessary, jointly with other specialized control authorities.Article 80. (1) The control authorities shall draft a memorandum on the results of each inspection, attaching thereto the data, documents and explanations collected.(2) Any such memorandum shall be signed by the drafter and the person inspected or, should the latter refuse to sign, by two witnesses of the refusal.(3) On the basis of the results of the inspection, the control authorities may issue mandatory prescriptions to the persons inspected by the memorandum and/or draw up statements ascertaining administrative violations.(4) The persons who are issued mandatory prescriptions shall notify the control authorities of the compliance with the said prescriptions within the time limit appointed thereto.Article 81. The State and municipal bodies and the administrations thereof, as well as any persons obligated under the law, shall be obligated to cooperate with the control authorities bodies in the exercise of the powers vested therein.Chapter NineELECTRICITY INDUSTRYSection IElectric Power GridArticle 82. (1) All electricity works within the national territory shall be connected and shall function with an integral electric power grid with a common mode of operation and uninterrupted process of electricity generation, conversion, transmission, distribution and consumption.(2) The electric power grid shall comprise the electric power plants, the transmission network, the individual distribution networks, and the electric wiring systems of consumers.(3) (Supplemented, SG No. 74/2006) The parallel operation of Bulgaria's electric power grid with other power grids and pools of grids shall be implemented in accordance with the effective international electricity industry instruments and in compliance with the technical standards and reliable and safe operation requirements.Article 83. (1) The power grid shall be structured and operated according to standards provided for in:1. an ordinance on the structure of electric fixtures and electric power lines, which shall regulate the technical standards for design and construction of electric fixtures and electric power lines;2. an ordinance on the operation of electric power plants and networks, which shall regulate the terms and procedure for organization and operation of: electric power plants and networks, of power plants for generation of electricity and/or heat, of heat transmission networks, of the hydraulic engineering facilities of power plants and the mechanical parts thereof (and the management and operation of electric power plants and networks);3. an ordinance on the operation of power equipment, which shall regulate the rules for maintenance of the serviceability and the rules for safe operation of the electric fixtures and facilities of consumers;4. rules for operation of the electric power grid, which shall regulate the rights and obligations of the transmission company, the electric power grid operator, and the persons connected to the transmission network in connection with a planning of the development of the transmission network, the planning and management of the mode of operation of the electric power grid, the procedures for mandatory data exchange, the procedure for early warning and exchange of information, the development and implementation of a protection plan and a recovery plan for the electric power grid, terms and procedure for conduct of system wide tests and for provision of ancillary services;5. (amended, SG No. 18/2004) rules for management of distribution networks, which regulate the rights and obligations of the distribution company, the distribution network operator and the persons connected to the relevant network in connection with a planning of the development of the network, planning and management of the mode of operation of the distribution network, the procedures for mandatory data exchange, the procedure for early warning and exchange of information, the development and implementation of a local protection plan and for provision of ancillary services;6. rules for electricity metering, regulating the metering principles, the metering methods and sites, the terms and procedure for servicing of the said sites, as well as the building and maintenance of data bases of the readings of commercial metering devices.(2) The ordinances referred to in Items 1 to 3 of Paragraph (1) shall be issued by the Minister of Economy and Energy. The rules referred to in Items 4 to 6 of Paragraph (1) shall be adopted by the Commission on a motion by the energy companies.(3) The technical rules and standard specifications for design, construction and use of facilities and installations for electricity generation, conversion, transmission and distribution shall be established by an ordinance of the Minister of Regional Development and Public Works and the Minister of Economy and Energy.Section IIElectricity GenerationArticle 84. Electricity may be generated by energy companies licensed for generation according to the procedure established by this Act, except in the cases under Item 1 of Article 39 (4) herein.Article 85. (1) (Supplemented, SG No. 74/2006) Electricity producers shall be obligated to maintain stocks of fuels, including local hard fuels, in quantities guaranteeing sustained and reliable generation.(2) (Amended, SG No. 74/2006) The terms and procedure for the building, maintenance of stocks of fuel and control shall be established by an ordinance of the Minister of Economy and Energy.Section IIIElectricity Transmission and Electric Power Grid Management(Title amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning theAccession of the Republic of Bulgaria to the European Union) Article 86. (1) (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The transmission of electricity shall be implemented by a transmission company which owns the transmission network and which has been licensed for transmission of electricity.(2) (New, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The licensee may assign, through an agreement, the transmission operation and maintenance only to the electric power grid operator, who has obtained an electric power grid management licence.(3) (Renumbered from Paragraph 2, amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) Electricity transmission and transformation shall be a universal service, managed by the electric power grid operator.Article 87. (1) (New, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The transmission company shall ensure the expansion, reconstruction, and modernisation of the transmission network, in accordance with the long-term electric power industry development forecasts and plans.(2) (Renumbered from Paragraph 1, amended, SG No. 74/2006, on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The electric power grid operator shall ensure:1. integrated management of the electric power grid and reliable functioning of the transmission network;2. (amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) transit transmission of electricity through the transmission network;3. maintenance of the facilities and installations of the transmission network in accordance with technical requirements and with safe operation requirements;4. (repealed, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) ;5. maintenance and development of auxiliary networks.(3) (Renumbered from Paragraph 2, amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) For preparation of the national electric energy balance, the electric power grid operator shall:1. elaborate short-term and long-term forecasts of changes in consumption of electricity in Bulgaria;2. organize the conduct of assessments of the feasibility of expansion and modernization of the transmission network with a view to the commissioning of new generating capacities, decommissioning of existing generating capacities, connecting new consumers to the transmission network, the expected increase in the quantity of electricity transmitted, implementation of new technologies ensuring better quality and security of the services provided and efficiency of the operation; the said assessments shall be accompanied by a feasibility study and an environmental impact analysis;3. prepare short-term, medium-term and long-term forecasts and plans for expansion and modernization of the transmission network and for development of auxiliary networks;4. prepare shot-term and long-term plans for development of the electric power grid with a view to ensuring the electric energy balance;5. (amended and supplemented, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) on the basis of the assessments, forecasts and plans, prepare a draft national electric energy balance and a list of the sources, including new generating capacities and intersystem electric power lines, required to meet national demand, and submit the said draft to the Minister of Economy and Energy.Section IVElectricity DistributionArticle 88. (1) The distribution of electricity and the operation of distribution networks shall be implemented by distribution companies which own the distribution networks within a self-contained area, licensed for distribution of electricity within the relevant area.(2) (Amended, SG No. 74/2006) Electricity distribution shall be a universal service.Article 89. The distribution company shall ensure for the area serviced by the distribution network:1. distribution of the electricity entering the distribution network;2. non-interruption of electricity supply and high quality of the electricity delivered;3. management of the distribution network;4. maintenance of the distribution network, the facilities and installations and the auxiliary networks in accordance with technical requirements;5. expansion, redevelopment and modernization of the distribution network and auxiliary networks;6. other services.Article 90. The distribution company shall:1. assess the prospects for economic development and changes in electricity consumption within the relevant area;2. prepare short-term and long-term plans for development of the distribution network;3. submit the results of the assessments and the plans as prepared under Items 1 and 2 to the transmission company.Section VCommercial Relationships. Parties to Electricity TransactionsArticle 91. (1) Transactions in electricity may be concluded at prices regulated by the Commission, at prices freely negotiated between the parties, and on an organized electricity market.(2) Transactions in electricity shall be effected in compliance with the provisions of this Act and the electricity trading rules (Market Rules) adopted by the Commission on a motion by the energy companies.(3) (Amended, SG No. 74/2006) The rules referred to in Paragraph (2) shall establish the manner of transaction administration and of organization and operation of the balancing market for electricity, as well as the organisation of the balancing group types and the activities of balancing group coordinators.(4)(New, SG No. 74/2006) The Commission, taking into account all results achieved from the electric power grid and the electricity market operation, as well as all procedures regulated in the electricity trading rules, after proposal by the energy companies, shall amend or repeal, and then accept new electricity trading rules, observing the equal-treatment and all-party interest balance principles.Article 92. (Amended, SG No. 74/2006) Parties to electricity transactions shall be:1. the public provider of electricity;2. (repealed, SG No. 74/2006, effective 1.07.2007);3. the electricity producers;4. (amended, SG No. 74/2006) the consumers, including eligible consumers;5. the transmission company;6. the distribution companies;7. the electricity traders;8. (amended, SG No. 74/2006, on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) the electric power grid operator;9. (new, SG No. 74/2006, effective 1.07.2007) the end supplier.Article 93. (1) (Supplemented, SG No. 74/2006, repealed, SG No. 55/2007, effective 1.07.2007) Article 93a. (New, SG No. 74/2006, effective 1.07.2007) (1) The public provider shall purchase electricity from producers, connected to the transmission network, on long-term availability and electricity purchase agreements, as well as electricity produced from renewable energy sources, from high-efficiency combined electricity and heat generation, and the quantity of electricity, defined under Article 4, Paragraph 2, Item 8.(2) The public provider may purchase electricity, defined within the availability under Article 21, Paragraph 1, Item 17a, in order to provide electricity to end suppliers.Article 94. (Repealed, SG No. 55/2007, effective 1.07.2007). Article 94a. (New, SG No. 74/2006) (1) The end supplier shall ensure provision of electricity at a certain quality and reliability level to home consumers and companies having less than 50 employees and annual turnover of less than 19.5 mil. BGN, according to the rules under Article 21, Paragraph 1, Item 7a.(2) Electricity supply under Paragraph 1 shall be an universal service under this Act, provided on the basis of equal-treatment.(3) The end supplier shall purchase electricity produced using renewable energy sources and using high-efficiency combined electricity and heat generation from producers, connected to the distribution network.Article 95. Eligible consumers shall be electricity consumers responsive to the eligibility requirements established in the rules referred to in Article 24 (2) herein, which shall have the right to choose the person wherefrom they purchase electricity.Article 96. (Amended, SG No. 74/2006, effective 1.07.2007) Electricity traders shall be persons licensed for the operation thereof, responsive to the requirements for financial security of the electricity transactions concluded thereby as established in the rules under Article 24 (2) herein.Article 96a. (New, SG No. 74/2006) Balancing group coordinator shall be a person, having licence issued for any activity under Article 39, Paragraph 1, Item 1, 2, 3, 5, 6, 7, 8, 10 or 11, meeting financial guarantee requirements for any transactions executed by this person, the requirements set forth in the rules under Article 91, Paragraph 1, and registered by the electric power grid operator.Section VITransactions at Regulated PricesArticle 97. (1) Transactions in electricity at prices regulated Commission shall be concluded between:1. (repealed, SG No. 74/2006, effective 1.07.2007);2. (repealed, SG No. 74/2006, effective 1.07.2007);3. (repealed, SG No. 74/2006, effective 1.07.2007);4. (repealed, SG No. 74/2006, effective 1.07.2007);5. (amended, SG No. 18/2004, repealed, SG No. 74/2006, effective 1.07.2007);6. (repealed, SG No. 74/2006, effective 1.07.2007) ;7. (amended, SG No. 74/2006) the producers and the transmission company, the public provider and the distribution companies, respectively, for the electricity needed to compensate the technological losses of transmission or distribution, respectively.8. (new, SG No. 74/2006, effective 1.07.2007) the producers and the end suppliers, or the public provider for the electricity defined by the Commission within the availability under Article 21, Paragraph 1, Item 17a;9. (new, SG No. 74/2006, effective 1.07.2007) the public provider and the end suppliers for the electricity defined by the Commission within the availability under Article 21, Paragraph 1, Item 17a;10. (new, SG No. 74/2006, effective 1.07.2007) end suppliers, home consumers, and the companies having less than 50 employees and less than 19.5 mil. BGN annual turnover, who have not exercised their right to select their electricity provider.(2) (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union, repealed, SG No. 55/2007, effective 1.07.2007) (3) (Repealed, SG No. 55/2007, effective 1.07.2007). (4) (New, SG No. 74/2006) The electric power grid operator shall execute transactions with the neighbouring system operators to mutually compensate the transboundary electricity streams.Article 98. (Repealed, SG No. 55/2007, effective 1.07.2007). Article 98a. (New, SG No. 74/2006, effective 1.07.2007) (1) The end supplier shall sell electricity under publicly known general conditions.(2) These general conditions shall include:1. information, provided by the supplier;2. the agreement term;3. the supply termination or suspension terms;4. the energy company liability upon failure to meet the general terms.(3) The end electricity supplier shall publish its general conditions in at least one national and one local daily publication.(4) The general conditions become effective for all consumers, purchasing electricity from the end supplier, without the need of express written acceptance.(5) Within 30 days after the general conditions become effective, consumers, who do not agree with them, shall have the right to submit to their respective end electricity supplier a request proposing special conditions. The special conditions, accepted by the end electricity supplier, which differ from the published general conditions, shall be reflected in written annexes.Article 98b. (New, SG No. 74/2006, effective 1.07.2007) (1) (Amended, SG No.55/2007, effective 1.07.2007) The end electricity supplier consumers shall use the distribution networks that they are connected to, under publicly known general conditions.(2) These general conditions shall include:1. information, supplied by the distribution company;2. the supply termination or suspension terms;3. the supply quality and reliability conditions;4. the energy company's liability upon any unregulated suspension or low-quality supply.(3) The distribution company shall publish its general conditions in at least one national and one local daily publication.(4) The general conditions become effective for all consumers, purchasing electricity from the end supplier, without the need of express written acceptance.Article 98c. (New, SG No. 55/2007, effective 1.07.2007) (1) The relationships between the end supplier and the distribution company in connection with the electricity supply for the consumers connected to the distribution networks shall be regulated by the rules for trade in electricity.(2) The relationships under Articles 98a and 98b between the home consumers and the companies with less than 50 employees and an annual turnover of less than 19.5 mil. BGN, on the one hand, and the end supplier and the distribution company, on the other hand, shall be regulated by a general contract in accordance with the rules for trade in electricity.Article 99. (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) (1) For the purposes of balancing electricity production and demand, the electric power grid operator shall organize a balancing market for electricity in accordance with the rules referred to in Article 91 (2) herein.(2) The electric power grid operator shall be party to all balancing transactions in electricity.(3) The electric power grid operator shall execute balancing transactions in electricity with domestic or foreign suppliers to balance the electric power grid.(4) The electric power grid operator shall execute transactions with balancing group coordinators to settle their imbalances.(5) The electric power grid operator shall settle all transactions and mutual obligations between the balancing energy market participants in accordance with the rules under Article 91, Paragraph 2.Section VIITransactions at Freely Negotiated PricesArticle 100. (1) Electricity producers, electricity traders and eligible consumers may conclude between them transactions in electricity at freely negotiated prices.(2) (Repealed, SG No. 74/2006, effective 1.07.2007) .(3) (Repealed, SG No. 74/2006, effective 1.07.2007) .(4) (New, SG No. 74/2006, effective 1.07.2007) The public electricity provider shall sell any electricity purchased under Article 93a at freely negotiated prices. In this case, the public provider shall have the right to claim reimbursement for its costs before the Commission under Article 34 and Article 35.Article 101. (1) For an identical period of time fixed in the rules referred to in Article 91 (2) herein, eligible consumers may conclude transactions at freely negotiated prices and/or prices regulated by the Commission in the cases provided for in the said rules.(2) (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The transmission company shall receive validated data on the metered quantities of electricity by the commercial metering device owners under the procedures and within the timeframes regulated in the rules under Article 83, Paragraph 1, Item 6 and Article 91, Paragraph 2.Article 102. (Amended, SG No. 74/2006) Electricity producers, traders, the public provider, the public suppliers, the end suppliers, and the eligible consumers may conclude electricity transactions with resident persons of a European Union member country, or persons registered in a country, with which the Republic of Bulgaria has an agreement under an international act for mutual application of the respective European Communities law, when:1. electricity producers, traders, the public provider, the public suppliers, the end suppliers and the eligible consumers are granted the right to free trade in electricity according to the legislation of the other State, and2. on conditions of reciprocity, the legislation of the other State provide for an opportunity for free trade in electricity for eligible consumers of the said State.3. provided that all home consumers and companies having less than 50 employees and less than 19.5 mil. BGN annual turnover have been provided with the electricity they need at certain quality indicators and transparent and reasonable prices.Article 103. (1) Transactions in the organized electricity market shall be concluded according to the electricity trading rules referred to in Article 91 (2) herein.(2) An electricity market shall be organized by a person licensed under Item 6 of Article 39 (1) herein, which shall:1. organize the solicitation of offers for sale and purchase of electricity;2. match the offers for sale and purchase for the relevant period until the demand is met;3. inform the market participants and the electric power grid operator of the transactions on the organized market and take into consideration the limitations and changes dictated by limitations of the transmission capacity or by emergency situations in the networks;4. set a price of the electricity traded for each period.(3) (Repealed, SG No. 74/2006, effective 1.07.2007).Section VIIITransmission, Access, Ancillary Services and Cold Reserve Transactions(Title amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) Article 104. (Amended, SG No. 74/2006, effective 1.07.2007) (1) Users of the relevant network, excluding the end supplier's consumers, shall execute a transaction governing their relationships, concerning their network usage and the transmission of any quantities of electricity fed to the network or consumed by the network, with the transmission and/or distribution company.(2) Users of the relevant network, excluding the end supplier's consumers, shall execute a transaction governing their relationships, concerning network access, with the electric power grid operator and/or the distribution company.(3) (Amended, SG No. 55/2007) The terms, the procedure, and the ratio for the payment of all prices under Paragraph 1 and Paragraph 2 by users of relevant networks shall be set forth in the rules for trade in electricity.Article 105. (1) (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) For the purpose of guaranteeing the reliable operation of the electric power grid, the electric power grid operator shall conclude ancillary-services and cold-reserve transactions under the terms and according to the procedure established by Article 83, Paragraph 1, Item 4 and Article 91, Paragraph 2 herein with suppliers within or outside the country.(2) The cold reserve referred to in Paragraph (1) shall be procured through availability purchase transactions in quantities determined on the basis of the level of reliability of electricity supply under Item 4 of Article 4 (2) herein.(3) The terms and procedure for purchase of the quantities of cold reserve referred to in Paragraph (2) shall be established by the rules referred to in Item 4 of Article 83 (1) herein.(4) (New, SG No. 74/2006) The net electricity from an activated cold reserve shall be paid on terms, procedure, and price, set forth in the rules under Article 91, Paragraph 2.Article 106. For the purpose of guaranteeing the reliable operation of the distribution networks, the distribution companies shall conclude ancillary-services transactions under the terms and according to the procedure established by Item 4 of Article 83 (1) herein.Article 107. (Amended, SG No. 74/2006, SG No. 59/2007) The public provider, the electricity system operator, the public suppliers, the suppliers of last resort, the transmission company and the distribution companies shall have the option to move for the issuance of an enforcement order under Article 410 (1) of the Code of Civil Procedure for the receivables thereof for electricity provided or transmitted, as well as for the services rendered thereby under this Act, regardless of the amount of the said receivables.Section IXOperational ManagementArticle 108. (1) (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The centralized operational planning, coordination, and management of the electric power grid shall be performed by the electric power grid operator and by the operators of each of the distribution networks.(2) (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The electric power grid operator shall be a separate legal person, having obtained an electric power grid management licence.(3) The operational management and the ensuring of the reliable functioning of the distribution networks shall be performed by the operators of the respective networks.(4) The operators of the distribution networks shall be specialized units of the distribution companies.Article 109. (1) The electric power grid operator shall be obligated to ensure:1. secure, safe and efficient functioning of the electric power grid;2. maintenance of the balance between electricity generation and consumption;3. implementation of the joint operation of the national electric power grid with the electric power grids of other countries in accordance with international treaties;4. non-discriminatory access to electricity transmission in compliance with quality requirements;5. secure and efficient functioning of the auxiliary networks.(2) (Supplemented, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The directives of the electric power grid operator, related to the fulfilment of the obligations assigned thereto by this Act, shall be mandatory for the operators of the distribution networks and the electricity producers and the electricity consumers connected to the transmission network, and for the other companies of the vertically integrated company in the cases when the electric power grid operator is part of a vertically integrated company.(3) (New, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The electric power grid operator shall set forth a coordinated schedule for planned downtimes of the generation capacities and the transmission network components based on maximum reliability criterion.Article 109a. (New, SG No. 74/2006) (1) When the electric power grid operator is part of a vertically integrated company, its activities shall be independent in terms of legal organisational form and decision making from the vertically integrated company's other activities.(2) In order to ensure the electric power grid operator's independence under Paragraph 1, any persons responsible for the management, including operational management of the electric power grid:1. may not take part in the management of the other companies in the vertically integrated company, performing electricity generation, distribution, public delivery, public supply and trade;2. shall take independent decisions in the course of their duties under this Act;3. shall not allow discriminatory actions in the course of their duties under this Act;(3) The electric power grid operator shall prepare a programme, setting forth measures to achieve the goal under Paragraph 1 and Paragraph 2, containing specific obligations for the employees for its implementation, and shall designate an employee, responsible for the control over this programme's implementation.(4) The electric power grid operator shall prepare an annual report on all measures under Paragraph 3, which shall be presented to the Commission by the designated employee and shall be published in the bulletin under Article 15, Paragraph 1.Article 110. (1) (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) For the purposes of metering the quantities of electricity, the transmission company shall ensure:1. technical and metrological support, development and modernization of the commercial metering devices for the quantity of electricity entering and leaving the transmission system;2. (amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) maintenance of data bases of the readings of the quantity of electricity referred to in Item 1, taken by commercial metering devices.(2) (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) Owners of commercial metering devices for quantities of electricity shall make available the readings of the said devices to the electric power grid operator, needed by the latter to carry out its activities under Article 111.(3) (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The parties to electricity transactions shall have the right to receive information from the electric power grid operator's data base regarding the quantities of electricity traded by the said parties under the transactions.Article 111. (1) (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The electric power grid operator shall administrate electricity transactions, executed on regulated and freely negotiated prices, and shall organise a balancing market for electricity according to the rules referred to in Article 91, Paragraph 2, and to this end shall:1. (amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) keep registers of the persons concluding transactions on the market for electricity;2. keep registers of the contracts concluded between the persons referred to in Item 1;3. receive, arrange on priority lists according to price and technological criteria, and activate proposals and orders for purchase and/or sale of balancing electricity;4. apply a method for computation and fix balancing electricity prices for each settlement period;5. prepare advance and final notices of the amounts due for balancing electricity from the participants for each settlement period;6. control the financial security of balancing transactions in electricity and issue mandatory instructions to market participants in connection with this;7. have the right, upon occurrence of circumstances endangering the secure operation of the electric power grid or of parts thereof, to suspend the performance of transactions or to change the quantities of electricity contracted there under, under terms and in a manner described in the rules referred to in Article 91 (2) herein;8. provide information regarding forecast consumption of electricity, transmission system limitations, references about balancing electricity prices in prior periods, and other information as may be required by the participants.(2) The costs incurred in connection with the performance of the functions covered under Paragraph (1) shall be allowed as economically justified costs under Item 2 of Article 31 herein.Article 112. (1) (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The electric power grid operator shall regulate the distribution of the electric load of the electric power grid among the electric power plants under technical and economic criteria.(2) (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) In the process of distribution of the electric load, the electric power grid operator shall ensure compliance with the contracts as concluded which provide for mandatory purchase of part or all of the electricity generated under this Act.(3) (New, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) When dividing the throughput of any network components, the electric power grid operator shall observe technical and economic rules to ensure equal access and following its network safety and public availability of information obligations.(4) (New, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The electric power grid operator shall have the right to sanction any violators of any network-user negotiated technical requirements for the reliable operation of the electric power grid.Article 113. (1) Distribution network operators shall be obligated to ensure:1. reliable, safe and efficient functioning of the relevant distribution network;2. reliable and efficient functioning of the auxiliary networks;3. non-discriminatory access to electricity transmission in compliance with quality requirements;4. non-discriminatory treatment of the producers and of the consumers connected to the network.(2) (Supplemented, SG No. 74/2006) The directives of the distribution network operator, related to the fulfilment of the obligations assigned thereto by this Act, shall be mandatory for the operational personnel on duty at energy works and the electricity producers directly connected to the relevant distribution network and for the other companies in the vertically integrated company, in the cases when the distribution company is part of a vertically integrated company.Article 113a. (New, SG No. 74/2006) (1) When the distribution company is part of a vertically integrated company, its activities shall be independent in terms of legal organisational form and decision making from the other activities, which are not related to distribution.(2) In order to ensure the distribution company's independence under Paragraph 1, any persons responsible for the management, including operational management of the distribution networks:1. may not take part in the management of the other companies in the vertically integrated company, performing electricity generation, transmission, public delivery, public supply and trade;2. shall take independent decisions in the course of their duties under this Act;3. shall not allow discriminatory actions in the course of their duties under this Act;(3) The distribution company shall prepare a programme, setting forth measures to achieve the goal under Paragraph 1 and Paragraph 2, containing specific obligations for the employees for its implementation. The distribution company shall designate an employee, responsible for the control over this programme's implementation.(4) The distribution company shall prepare an annual report on all measures under Paragraph 3, which shall be presented to the Commission by the designated employee and shall be published in the bulletin under Article 15, Paragraph 1.Article 114. (Amended, SG No. 74/2006) The electric power grid and the distribution network operators shall be obligated to respect the confidentiality of any information, constituting commercial secret, obtained in the course of or in connection with the fulfilment of the obligations thereof. The operators shall provide information on their activities on equal-treatment basis.Article 115. The terms and procedure for performance of the activity of the electric power grid operator and the distribution network operators, as well as of the operational personnel on duty at electricity works and the electric fixtures of consumers, shall be established by an ordinance of the Minister of Energy and Energy Resources.Section XConnecting Producers and Consumers to Networks.Access to NetworksArticle 116. (1) The transmission company or distribution company, as the case may be, shall be obligated to connect any electricity producer located within the relevant area which:1. has concluded a written contract with the transmission company or distribution company, as the case may be, at a connection price fixed according to the relevant ordinance referred to in Article 36 (3) herein;2. has fulfilled the conditions for connection to the transmission or distribution network, and3. has electric fixtures built within the boundaries of the said producer's own corporeal immovable or of a corporeal immovable where within the said producer enjoys a building right, and the said fixtures conform to technical standards and to safe operation requirements.(2) The transmission company shall be obligated to connect facilities of the distribution companies under the terms established by Paragraph (1).(3) The transmission company or the relevant distribution company shall be obligated to implement the expansion and redevelopment of the transmission network or distribution networks related to connection of electric power plants up to the interconnection point.(4) The transmission company or distribution company, as the case may be, shall own the expansion or redevelopment implemented as referred to in Paragraph (3).(5) In cases where the interconnection point is not located on the property boundaries of the electric fixtures of the producer, the high- voltage or medium-voltage electric power lines connecting the said fixtures shall be built by the transmission company or distribution company, as the case may be, which shall own the said lines.(6) The electricity generated shall be metered by commercial metering devices owned by the transmission company or distribution company, as the case may be, with the requirements that the said devices must satisfy and the location site thereof being established by the rules referred to in Item 6 of Article 83 (1) herein.(7) The terms and procedure for connection to the relevant network, for suspension of the connection or electricity supply, and the property boundaries between the electric facilities shall be established by an ordinance of the Minister of Energy and Energy Resources.Article 117. (1) The transmission company or distribution company, as the case may be, shall be obligated to connect any facility of a electricity consumer located within the relevant area which:1. has electric fixtures built within the boundaries of the said producer's own corporeal immovable or of the corporeal immovable of the said consumer which conform to the technical standards and to safe operation requirements;2. has satisfied the conditions for connection to the transmission network or distribution network, as the case may be, and3. has concluded a written contract with the transmission company or distribution company, as the case may be, at a connection price fixed according to the relevant ordinance referred to in Article 36 (3) herein.(2) The distribution company may connect an electricity consumer located within the area of another distribution company, wherever that is technically and economically advisable and in the interest of consumers.(3) The terms and procedure for connection to the transmission or distribution network and for conclusion of the contracts referred to in Paragraph (1) shall be regulated by the ordinance referred to in Article 116 (7) herein.(4) The refusal of the energy company to perform a connection shall have to be reasoned.(5) (Supplemented, SG No. 74/2006) High-voltage and medium-voltage electric fixtures and/or lines, which are used to supply electricity to a single consumer of electricity for business uses, shall be built for the account of the said consumer and shall be owned thereby.(6) Low-voltage electric equipment, which are located within the corporeal immovables of consumers and are located outside the property boundaries of the facilities, shall be built for the account of the consumers and shall be owned thereby.(7) (Amended, SG No. 74/2006) Electric fixture and equipment owners shall be obligated to provide the transmission company or distribution company, as the case may be, access through their own fixtures and facilities for the purposes of electricity conversion and transmission to other consumers. An access price shall be fixed according to a method approved by the Commission.Article 118. (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) (1) The electric power grid operator and the distribution company shall provide access on equal-treatment basis to the transmission and distribution networks for the respective network's users.(2) The electric power grid operator or distribution company, as the case may be, may refuse access in case the provision of such access could result in deterioration of technical conditions and security of the networks or to deterioration of the conditions for supply of other consumers and users.Article 119. (1) Producers may supply electricity to branches, enterprises and works thereof located within the national territory:1. through the transmission network and/or the distribution networks (high-voltage, medium-voltage and low-voltage) to the relevant work, concluding to this end a contract for transmission with the transmission company and/or the distribution companies, or2. through direct electric power lines, constructed for the account of the said producers up to the divisions or works thereof.(2) (New, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) Eligible consumers may be supplied through a direct electric power line.(3) (Renumbered from Paragraph 2, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The transmission company and/or the distribution companies may refuse to sign contracts for transmission through the relevant networks in the cases under Item 1 of Paragraph (1) where:1. the transmission capacity of the networks is insufficient, or2. (repealed, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) 3. no technical conditions exist for metering of the quantities of electricity consumed that originate from own generation separately from the quantities of electricity delivered from other sources.(4) (Renumbered from Paragraph 3, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The manner of distribution of the electricity originating from own generation or delivered from other sources shall be established by the rules referred to in Article 91 (2) herein.(5) (New, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The electric power grid operator and the distribution companies may refuse to execute an agreement on access to the relevant networks in the cases under Paragraph 1, Item 1, when the reliable operation of the electric power grid or the security of supply are being compromised.Article 120. (1) The electricity used by consumers shall be metered by means of commercial metering devices owned by the transmission company or by the relevant distribution company, which shall be located next to or on the property boundary of the consumer.(2) The property boundary of electric facilities and the site of commercial metering devices shall be determined according to the requirements established by the ordinance referred to in Article 116 (7) herein and by the rules referred to in Item 6 of Article 83 (1) herein.(3) The transmission company or distribution company, as the case may be, shall determine the type, number and site of the metering devices and equipment and of the appurtenant controls and communication devices.(4) Where endorsed tariffs allow consumers of a particular group to choose the method of metering of the quantity of electricity, the transmission company or distribution company, as the case may be, shall be obligated to install metering devices corresponding to the choice stated by the consumer in writing.(5) The terms and procedure for replacement of a metering devices at the request of a consumer in the cases under Paragraph (4) shall be established by the rules referred to in Item 6 of Article 83 (1) herein.Article 120a. (New, SG No. 74/2006) The electricity consumers shall not pay a fee for the commercial metering devices.Article 121. (1) The transmission company or distribution company, as the case may be, shall specify to consumers mandatory technical requirements for installation of consumer's own stand-by power supply source according to the ordinance referred to in Item 1 of Article 83 (1) herein.(2) Any consumer wishing to install an own stand-by power supply source shall be obligated to notify in writing the transmission company or distribution company, as the case may be, and to provide representatives of the said company with access to the stand-by source for the conduct of inspections.(3) The transmission company or distribution company, as the case may be, shall have the right to suspend the electricity supply of the consumer if the said consumer fails to fulfil the obligations thereof under Paragraphs (1) and (2). For more information visit www.solicitorbulgaria.com id: 329 Fri, 01 Aug 2008 08:08:04 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-energy-act-part-1 http://web.solicitorbulgaria.com/index.php/bulgarian-energy-act-part-1 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/ENERGY_ACT.jpg EUR http://web.solicitorbulgaria.com/index.php/bulgarian-energy-act-part-1 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Chapter OneGENERAL PROVISIONSArticle 1This Act shall regulate the ownership and use of agricultural land.Article 2Agricultural land, for the purposes of this Act, shall be any land, set aside for farming, which:1. (supplemented, SG No. 98/1997, SG No. 68/1999, amended, SG No. 99/2002) does not fall within the confines of urbanized territories (settlements and other populated areas) determined by a detailed territorial structure design, or by a belt line range;2. is not included as part of the forest reserve;3. is not built-up by: industrial or other economic enterprises, recreation or health establishments, religious denominations or other public organisations; nor is within courtyards, nor under warehouses auxiliary to such buildings as the above;4. (amended, SG No. 28/1992) is not occupied by open mines and quarries, energy, irrigation, transportation facilities or other public utilities, nor is adjacent to such facilities and utilities.Article 3(1) (Amended, SG No. 28/1992) Agricultural… For more information visit http://www.solicitorbulgaria.com id: 323 Chapter OneGENERAL PROVISIONSArticle 1This Act shall regulate the ownership and use of agricultural land.Article 2Agricultural land, for the purposes of this Act, shall be any land, set aside for farming, which:1. (supplemented, SG No. 98/1997, SG No. 68/1999, amended, SG No. 99/2002) does not fall within the confines of urbanized territories (settlements and other populated areas) determined by a detailed territorial structure design, or by a belt line range;2. is not included as part of the forest reserve;3. is not built-up by: industrial or other economic enterprises, recreation or health establishments, religious denominations or other public organisations; nor is within courtyards, nor under warehouses auxiliary to such buildings as the above;4. (amended, SG No. 28/1992) is not occupied by open mines and quarries, energy, irrigation, transportation facilities or other public utilities, nor is adjacent to such facilities and utilities.Article 3(1) (Amended, SG No. 28/1992) Agricultural land may be individual citizen's, State, municipal, or legal persons' property.(2) Political parties and organisations, movements and coalitions for political purposes may not have ownership of agricultural land.(3) (Amended, SG No. 28/1992, SG No. 45/1995, amended and supplemented, SG No. 98/1997, amended, SG No. 24/2007) Foreign states shall not have a right of ownership over agricultural lands.(4) (Amended, SG No. 28/1992, SG No. 24/2007) Foreign nationals or foreign legal persons may not acquire right of ownership over agricultural land under the conditions of an international treaty, ratified pursuant to the procedure of Art. 22, paragraph 2 of the Constitution of the Republic of Bulgaria, promulgated and entered into force, and the foreigner nationals - also by inheritance by law.(5) (New, SG No. 24/2007) Citizens of the Member States of the European Union and of the states - parties to the European Economic Area Agreement may acquire right of ownership over agricultural lands pursuant to this Act after the expiry of the term defined in the Treaty of Accession of the Republic of Bulgaria to the European Union.(6) (New, SG No. 24/2007) Legal persons from the Member States of the European Union or from the states - parties to the European Economic Area Agreement may acquire ownership over agricultural lands pursuant to the procedure of paragraph 5.(7) (Amended, SG No. 28/1992, renumbered from Paragraph 5, SG No. 24/2007) Foreign legal persons and foreign nationals may acquire usufruct in agricultural land or other limited real rights in land by terms and procedures as provided by law.Article 3a(New, SG No. 24/2007)(1) Citizens of the Member States of the European Union - individually occupied farmers who wish to settle and reside permanently in the Republic of Bulgaria and who are registered in that capacity pursuant to the procedure of the BULSTAT Register Act, may acquire right of ownership over agricultural and forestry lands for usufruct from the date of the entry into force of the Treaty of Accession of the Republic of Bulgaria to the European Union.(2) In those cases where before the expiry of the term defined in the Treaty of Accession of the Republic of Bulgaria to the European Union, the persons under paragraph 1 terminate their activity as individually occupied farmers, the provisions of Article 3b shall be applied.Article 3b(New, SG No. 24/2007)(1) Foreign nationals who acquire right of ownership over agricultural lands by inheritance by law but who do not fulfil the conditions provided for in the Treaty of Accession of the Republic of Bulgaria to the European Union, or when something else is not provided for in an international treaty, ratified pursuant to the procedure of Article 22, paragraph 2 of the Constitution of the Republic of Bulgaria, shall be obliged, within a three year term following the revealing of the inheritance, to transfer the ownership to persons who have right to acquire such estates.(2) For persons under paragraph 1, to whom right of ownership over agricultural lands has been restored, the three year term for the transfer of the ownership shall run from the moment of its restoration.(3) If the term under paragraph 1 has not been complied with, the state may buy the agricultural lands at prices, determined by an Ordinance of the Council of Ministers.Article 4(Amended and supplemented, SG No. 28/1992)(1) Proprietors shall be free to determine a manner of using agricultural land according to its purposes. Proprietors shall use land in a manner such as is not detrimental to soils and in compliance with sanitation, fire safety and environmental protection standards.(2) (Amended, SG No. 99/2002) Buildings and installations may be erected on agricultural land such as are related to its use by terms and procedures as provided by the Spatial Development Act. (3) (Amended, 79/1996, SG No. 13/2007) Expropriation of agricultural lands for important government and municipal purposes shall be done pursuant to the Ownership Act and the Agricultural Land Conservation Act. (4) Proprietors and users shall protect archaeological sites, cultural monuments, irrigation, power generation and other facilities and installations, geodetic and frontier signs such as exist on their land, and shall not prevent other proprietors, users and officials from using and maintaining such facilities and installations.(5) (Amended, SG No. 79/1996, supplemented, SG No. 68/1999, amended, SG No. 99/2002) Incorporation of agricultural land within the confines of urbanized territories (settlements and other populated areas) shall be done pursuant to the Agricultural Land Conservation Act and the Territorial and the Spatial Development Act. Article 4a(New, SG No. 13/2007)(1) A citizen or a legal person shall sell agricultural land to a third party only after presentation to the notary of:1. written proofs that he has proposed to the user with whom he has a concluded lease contract or rent contract for a period of five or more years, and he has used the estate under the same conditions, and2. declaration that the user did not accept the proposal under item 1;3. declaration that the user, although not having accepted the proposal under item 1, has unpaid lease or rent instalments.(2) When the declarations under paragraph 1, item 2 and 3 are false or if the third party buys the agricultural land under conditions, stipulated under colour of law, the user can buy the agricultural land under the actually stipulated conditions. The claim shall be brought within two months from the date of the sale.(3) When the claim under paragraph 2 is satisfied but the user does not pay the due amount within one month from the entry into force of the court decision, this decision shall be deemed invalidated by law.(4) Paragraph 1 shall not apply to public sale.(5) When the agricultural land is co-owned, the right of redemption of the users under paragraph 1 shall be applied after the redemption right of the co-owners under Article 33 of the Ownership Act. Article 5(Repealed, SG No. 28/1992, new, SG No. 45/1995, amended, SG No. 98/1997,SG No. 88/1998, supplemented, SG No. 68/1999, SG No. 106/2000)(1) (Redesignated from Article 5, SG No. 99/2002) Proprietors of agricultural land restituted under this Act, shall be exempted from state, state notary fees and local tax and fees in the event of concluding lease contract, rent contracts for a period of time exceeding one year, voluntary partition and rights-transferring transactions in agricultural land for a period of five (5) years.(2) (New, SG No. 99/2002) No state fee is payable for the recordation of decisions of the Municipal Agriculture and Forestry Service that have the force of public notary deeds based on factual possession.(3) (New, SG No. 99/2002) A public notary fee collected for certification of the signatures of parties to contracts for farming land lease and rent, for a period above one year, shall be determined irrespective of the amount under the relevant contracts.Chapter TwoLAND OF INDIVIDUAL PROPRIETORSArticle 6(Repealed, SG No. 28/1992)Article 7(Amended, SG No. 79/1996)(1) Declared partially unconstitutional by Constitutional Court of the Republic of Bulgaria, over the term "reimbursement" - SG No. 103/1996) In the event of disposition, partition, reimbursement and grant of land, agricultural land estates shall not be parcelled out into fragments the proportions whereof are less than the ones prescribed under Article 72 of the Succession Act. (2) (Repealed, SG No. 98/1997).(3) Partition of a farm estate or disposition of real shares of a farm estate shall be executed only if the separate shares thereof are detachable to constitute separate estates of such proportions as specified in paragraph 1 above under a project drawn up or approved by the respective Municipal Agriculture and Forestry Service.(4) (Amended, SG No. 98/1997) In the event of partitions, disposition transactions, alienation, change of function and appraisal of agricultural lands, attached shall be a plot drawn up or endorsed by the Municipal Agriculture and Forestry Service.(5) (Amended, SG No. 98/1997, 36/2004 - effective 31.07.2004) Registration offices and other competent authorities shall be required to notify, within one month, the Municipal Agriculture and Forestry Service of any changes in land ownership and use.(6) (Amended, SG No. 98/1997, repealed, SG No. 99/2002).Article 8(Amended, SG No. 28/1992, SG No. 98/1997)Individuals may associate in co operatives or associations for joint farming of their land. In such cases they shall retain ownership of their land within real boundaries.Article 9(Repealed, SG No. 28/1992, new, SG No. 45/1995, amended, Sg No. 79/1996,SG No. 104/1996, repealed, SG No. 98/1997)Article 9a(New, SG No. 45/1995, Judgment No. 8 of the Constitutional Court of theRepublic of Bulgaria, SG No. 59/1995, amended, SG No. 79/1996,SG No. 104/1996, repealed, SG No. 98/1997)Article 10(1) (Amended, SG No. 28/1992, 45/1995, Judgment No. 8 of the Constitutional Court of the Republic of Bulgaria, SG No. 59/1995, amended, SG No. 79/1996, SG No. 98/1997) Proprietors or their inheritors shall be reinstated in possession of the agricultural lands they used to own prior to the institution of labour co-operative farms (TKZS) or state farms (DZS) regardless of whether such lands used to be incorporated therein or in other suchlike agricultural organisations set up on the basis thereof.(2) (Amended, SG No. 28/1992), Proprietors shall be reinstated in their agricultural land as nationalised under the repealed Article 12 of the Citizens' Property Act, subject to reimbursement of moneys received in compensation.(3) (Renumbered from Paragraph 6 and amended, SG No. 28/1992) Proprietors who donated their land to TKZS or the State shall be reinstated.(4) (Renumbered from Paragraph 3, SG No. 28/1992) Proprietors shall be reinstated in their agricultural land where unlawfully dispossessed.(5) (Repealed, New, SG No. 28/1992, supplemented, SG No. 45/1995, SG No. 79/1996, SG No. 98/1997) Proprietors shall be reinstated in afforested or self-afforested agricultural land, inclusive of such lands incorporated into the State forestry reserve for which proprietors have received no compensation, with the exception of forest nurseries and forest shelter belts. Such reinstatement shall be effected following the procedure set forth in Article 14, paragraph 1, subparagraph 1.(6) (New, SG No. 28/1992, amended, SG No. 98/1997) Proprietors shall be reinstated in farm yards managed as agricultural land by labour co-operative farms, state-owned farms or other agricultural organisations based thereon, in the effaced or abandoned settlements.(7) (Repealed, new, SG No. 28/1992, SG No. 48/1993 Judgment No. 12 of the Constitutional Court of the Republic of Bulgaria, SG No. 64/1993, amended, SG No. 45/1995, Judgments No. 7 and 8 of the Constitutional Court of the Republic of Bulgaria, SG No. 59/1995, amended, SG No. 79/1996, Judgment No. 20 of the Constitutional Court of the Republic of Bulgaria, SG No. 103/1996, amended, SG No. 98/1997, SG No. 99/2002) Proprietors shall be reinstated in possession of the agricultural lands they used to own prior to the institution of labour co-operative farms or state farms, regardless of whether such lands used to be incorporated therein or in other suchlike agricultural organisations set up on the basis thereof, and are located within the confines of urbanized territories (settlements) determined by a detailed territorial structure design, or by a circular belt range, except where buildings have been erected thereon by third persons in strict adherence to all regulative requirements, or where the right to build has been ceded and the erection, lawfully afforded as of March 1, 1991, has commenced. Such reinstatement shall be effected following the procedure set forth in Article 14, paragraph 1, subparagraph 1.(8) (Repealed, redesignated from Article 4, amended, SG No. 28/1992, SG No. 79/1996, SG No. 98/1997) Proprietors shall be reinstated in agricultural land up to such proportions as specified by the repealed Article 8, paragraph (1) and Article 10 of the Earned Landed Property Act, inclusive of land alienated under the Earned Landed Property Act. For agricultural land exceeding such proportions, proprietors shall be indemnified following the procedure laid down in Article 35. The limitation on land proportions shall also apply to any instances where agricultural land was confiscated by virtue of a sentence and such sentence has been vacated.(9) (New, SG No. 28/1992) Proprietors shall be reinstated, at their request, in land nationalised as forests and subsequently transformed into agricultural land.(10) (New, SG No. 28/1992, amended, SG No. 45/1995, supplemented, SG No. 98/1997, amended, SG No. 68/1999) Proprietors shall be reinstated in land that is polluted, eroded, salinated, with high acid content or with excess moisture in the surface layer, and the expenses for its ecological reclamation shall be borne by the State. Funds needed to recover such lands productivity as well as to neutralise hazardous pollutants, shall be provided by the budget of the Ministry of Agriculture and Forestry under a program approved by the Council of Ministers on an annual basis. The Council of Ministers shall determine the procedure and manner of the ecological reclamation of such land and the control over polluted agricultural land.(11) (New, SG No. 45/1995, amended, SG No. 79/1996, SG No. 98/1997) Reinstated in land shall be such persons who have been granted land under the Earned Landed Property Act, including those who have not yet paid a part of the instalments due, with the exception of such persons who have lost their rights over such land.(12) (New, SG No. 79/1996, amended, SG No. 98/1997, SG No. 99/2002) Proprietors shall be reinstated under the procedure laid down in Article 14, paragraph 1, item 1, in possession of lands, both within and outside the confines of urbanized territories (settlements), incorporated into farm yards of labour co-operative farms, state farms, or other suchlike agricultural organisations set up on the basis thereof, which are not built- up and do not represent areas contiguous to buildings.(13) (New, SG No. 98/1997) Proprietors shall be reinstated in possession of such lands, which they used to own prior to the institution of labour co- operative farms or state farms, or other suchlike agricultural organisations set up on the basis thereof, that have been sold or ceded by such organisations, or by other governmental or municipal authorities, respectively, to third parties with the exception of the ones explicitly specified herein. Reference to acquisition by virtue of positive prescription shall be inadmissible.(14) (New, SG No. 98/1997, supplemented, SG No. 88/1998, 99/2002) Subject to restitution shall be also all land taken away from its proprietors under the Ordinance-Act on Prosecution by a Popular Court of Those Guilty of Involving Bulgaria in the World War against the Allied Nations and of the Felonies thereto Related (SG No. 219/1944, amended SG No. 261/1944, 9/1945), the Law on Confiscation of Property Acquired by Way of Profiteering or in an Illicit Way (SG No. 78/1946), or pursuant to the Law on Collection of Taxes and Other State Revenue (SG No. 304/1948), the Regulation on Collection of Taxes and Charges (Izvestiya, No. 13/1952), the Decree on Procurement and Prices (SG No. 213/1945), the Decree on Mandatory Re-registration of Agricultural land Property (SG No. 122/1949), as well as under Government Decree No. 982 of 1951 on the Measures Preparatory to the Completion of 1951 Autumn Sowing and Deep Autumn Ploughing (not promulgated), Government Decree No. 5 on Measures Preparatory to the Completion of the Spring Sowing and on the Cares for Growing the Autumn Crops in 1951 (Izvestiya, No. 4 of 1951), Government Decree No. 1559 of 1951 on the Measures Preparatory to the Completion of the Spring Sowing and on the Cares for Growing the Autumn and Spring Crops and Ensuring High Yields in 1952 (not promulgated), and Government Decree No. 48 of 1958 on Establishing the Balance of Arable Land as of January 1, 1958 and Taking Measures to Ensure its Further Enlargement, Utilisation and Protection against Misuse and Wasteful Practices (Izvestiya, No. 28/1952).Article 10a(New, SG No. 28/1992, supplemented, SG No. 45/1995)(1) (Judgment No. 8/19.06.1995 of the Constitutional Court of the Republic of Bulgaria - SG No. 59/1995) Reinstatement shall be done within the actual boundaries of land owned wherever existent or if possible to be established from the Cadastre of settlements or from compensation plans.(2) Wherever boundaries of land no longer exist, reinstatement in ownership shall be done within actual boundaries of agricultural land of equivalent area on the territory of the respective settlement or an adjacent territory, and upon proprietor's consent, on another territory, following land reallocation and consolidation of real estates on it.(3) (Amended, SG No. 24/2007) Foreign nationals who are reinstated in property pursuant to this Article shall within three years transfer the said property to persons who have right to acquire agricultural lands.(4) (New, SG No. 24/2007) Paragraph 3 shall not apply to citizens of the Member States of the European Union and of the states - parties to the European Economic Area Agreement, as well as to citizens of other states by virtue of a treaty under Article 3, paragraph 4.Article 10b(New, SG No. 28/2992, amended, SG No. 45/1995)(1) (Judgment No. 8/19.06.1995 of the Constitutional Court of the Republic of Bulgaria - SG No. 59/1995, amended SG No. 79/1996, SG No. 98/1997, SG No. 88/1998, amended and supplemented, SG No. 68/1999, SG No. 99/2002) Proprietors or their inheritors who used to be in possession of agricultural land prior to the institution of labour co- operative farms or state farms, regardless of whether such land was incorporated therein, or in other suchlike agricultural organisations set up on the basis thereof, located either within or outside the confines of urbanized territories (settlements), and which are either built-up or such projects have been undertaken thereupon which render reinstatement in ownership inadmissible, shall have the right to indemnification, at their request, with land of equal worth from the municipal landed reserve, and/or with registered compensation bonds. Based on a substantiated proposal by the Municipal Agriculture and Forestry Service or any person concerned, the municipal council shall, within one month of its receipt, define the type, size and location of the lands to be granted in compensation from the municipal landed reserve, inclusive of instances pursuant of Article 10b, Article 1, item 2 and 3, paragraph 2 and 4 but not less than 50 per cent of the available municipal landed reserve. Should the municipal council not make a decision within the prescribed time or refuse a request for granting up to 50 percent of the available municipal landed reserve, the land for compensation shall be defined by ruling of the district governor upon request by the Municipal Agriculture and Forestry Service or any person concerned. Where the proposal is for land constituting less than 50 per cent of the available municipal landed reserve, the land for compensation shall be defined by ruling of the district governor up to the size of land requested.(2) (Repealed, SG No. 28/2002).(3) (New, SG No. 79/1996, amended, SG No. 98/1997, supplemented, SG No. 88/1998) Proprietors of land confiscated by virtue of a sentence which has been vacated, and ownership thereupon may not be reinstated for circumstances cited under paragraph 1, shall be indemnified under the terms and procedures of paragraph 1 above.(4) (Repealed, SG No. 98/1997).(5) (New, SG No. 45/1995, renumbered from paragraph 4, SG No. 79/1996) Land ownership wherever cannot be restituted as a result of the circumstances described in the above paragraphs shall be the property of the State.Article 10c(New, SG No. 74/1991, redesignated from Article 10a, amended,SG No. 28/1992, SG No. 45/1995, SG No. 79/1996)(1) Bulgarian nationals or their heirs whose agricultural lands have served as a government debt redemption pursuant to the Agreement on the Settlement of Open Financial Issues and Economic Co-operation Development between the People's Republic of Bulgaria and the Kingdom of Greece (SG, No. 87 of 1964) shall be indemnified as follows:1. (amended, SG No. 68/1999) persons who emigrated in the period between 1913 and 1928 who have not registered their bonds for redemption by the State: with registered compensation bonds;2. (amended, SG No. 98/1997) Bulgarian nationals who emigrated in the period from 1913 to 1928 and who have not obtained bonds and have not been otherwise indemnified - with registered compensation bonds and/or with land from the State and municipal landed reserve;3. (amended, SG No. 98/1997) those who emigrated in from 1928 to 1944 - with registered compensation bonds and/or with land from the State and municipal landed reserve.(2) (Amended, SG No. 98/1997, SG No. 68/1999) Bulgarian nationals or their heirs, from whom the State of Romania, under the Organisation of New Dobrudja Act of 1 April 1914, confiscated one third of their own agricultural land, shall be indemnified as follows:1. the one third for which the right to compensation was not claimed under the Act on Settlement of Ownership of Real Estates in South Dobroudja (promulgated SG No. 157/1942, repealed Izv., No. 16/1951): with land from the State and/or municipal landed reserve for adding to the owner's other property up to 100 decares, and registered compensation bonds for the shortage to the full amount of the confiscated one third;2. the granted right to moneys in compensation under Chapter III of the Act on Settlement of Ownership of Real Estates in South Dobroudja: with registered compensation bonds.(3) (Amended, SG No. 68/1999) Persons under paragraphs 1 and 4 shall file petitions with the Ministry of Agriculture and Forestry, and persons under paragraph 2, with the Municipal Agriculture and Forestry Services having jurisdiction over the location of the restituted property.(4) (New, SG No. 88/1998) Bulgarian nationals whose estates have not been substituted with land from the State landed reserve under the provisions of Chapter Seven of the Act on the Amendment of the Act on Regulation of Real Estates in South Dobrudja (repealed, SG No. 57/1948), shall be compensated according to the provisions of paragraph 2.(5) (New, SG No. 68/1999) Indemnification with land shall be done: under paragraph 2, subparagraph 1, and under paragraph 4, in the location of the restituted property, and in case of shortage or lack of land from the State landed reserve or the municipal landed reserve in the village land, with registered compensation bonds.Article 11(1) (Amended, SG No. 18/1992, 46/1992) Persons under Article 10 above shall file petitions for reinstatement in agricultural land within seventeen months from the date that this Act comes into force.(2) (Amended, SG No. 28/1992, 45/1995, amended and supplemented, SG No. 13/2007) Persons who failed to file petitions within the period under paragraph 1, can establish by claim against the respective Municipal Agriculture and Forestry Service their right to reinstate their ownership of agricultural lands only with written proofs. Written declarations and/or witness testimonies shall not constitute grounds for proving the right of ownership. The municipality at the location of the estate shall be called in the court case. On the basis of the rendered decision the Municipal Agriculture and Forestry Service shall set out the lands for restitution of ownership by complying with the requirements of this Act.(3) (New, SG No. 45/1995, repealed, SG No. 98/1997).(4) (New, SG No. 45/1995, amended, SG No. 79/1996, SG No. 98/1997, supplemented, SG No. 99/2002) Where a court ruling is presented to the respective Municipal Agriculture and Forestry Service following the promulgation in the official State Gazette of an announcement that the land reallocation plan had been drafted, the owner shall be indemnified under the terms and procedures specified in Article 10b, if he/she may not be afforded land under Article 19 by of compensation.Article 12(1) Petitions under the preceding Article shall be referred to the respective Municipal Agriculture and Forestry Service. Petitions shall contain description of the estate concerned together with evidence of ownership.(2) (Repealed, renumbered from Paragraph 3, SG No. 28/1992, supplemented, SG No. 45/1995, amended, SG No. 98/1997) Ownership shall be proven by: act of notary, deeds of partition, TKZS protocols, land registers, applications for TKZS membership, rent ledgers protocols and decisions for vesting in landed property, including under the Earned Landed Property Act of 1946 and the Regulation for its application, and other evidence in writing.(3) (New, SG No. 28/1992, repealed, SG No. 13/2007). (4) (New, SG No. 28/1992, repealed, SG No. 13/2007). (5) (New, SG No. 45/1995, repealed, SG No. 13/2007). (6) (New, SG No. 45/1995, amended, SG No. 79/1996, SG No. 87/1997, SG No. 98/1997) In the event that the land claimed should exceed the amount of land available in the area at the time of the establishment of the labour co- operative farms, the state farms and other suchlike agricultural organisations, the Minister of Agriculture and Forestry shall be empowered to discontinue the land-division for the purpose of precisely specifying the amount of land due to each claimant, as well as to order a Municipal Agriculture and Forestry Service to rescind earlier enacted decisions. In such cases persons found to have filed false petitions and declarations shall be held materially liable for damages inflicted as well.(7) (New, SG No. 98/1997) Positive prescription in favour of a agricultural land holder, whose possession thereto is based on a contract in writing, a deed of voluntary partition or other legal instrument in writing, shall not be suspended with the incorporation of such land in labour co- operative farms, state farms and other suchlike agricultural organisations. This shall not constitute a ground for rescinding any court rulings that have entered into force.Article 13(1) Municipal Agriculture and Forestry Services shall post petitions filed with the information presented at municipalities or other appropriate places.(2) (Repealed, SG No. 28/1992).(3) (Repealed, SG No. 28/1992).Article 14(1) (Amended, SG No. 28/1992, SG No. 45/1995) A Municipal Agriculture and Forestry Service shall hand down rulings on:1. (supplemented, SG No. 98/1997, amended and supplemented, SG No. 68/1999) restitution of ownership rights over land within existing old actual boundaries or such that are possible to restore. A board's ruling shall provide a description of the size and category of the property, its location (boundaries, neighbours) and any applicable limitations on the property with a quotation of the reasons for such limitations. A plan of the property shall be annexed to such ruling. A ruling having entered into force accompanied by a plan, except in the cases under Article 10, paragraph 7, shall certify the ownership right and shall be valid as a ascertaining notarial title deed for the property. Where a ruling restitutes ownership right over agricultural land to a deceased owner, the ruling shall be issued for all his/her heirs together. The shares of the heirs shall be defined as per the Succession Act, without being specified in the ruling.2. (amended, SG No. 79/1996, amended and supplemented, SG No. 98/1997, amended, SG No. 106/2000) restitution of ownership rights over agricultural lands within new real confines by means of a land reallocation plan. A ruling shall indicate the size and categories of the agricultural lands, and the precise locality on the territory within which they used to be. A land reallocation plan shall be drawn up on the basis of a Municipal Agriculture and Forestry Service's resolutions and following a survey, an inquiry and designing. A land reallocation plan shall be drawn up after an inquiry shall have been conducted with the participation of no less than half the owners or their inheritors. Such inquiry shall be conducted in the order and manner prescribed in the Rules on the implementation of this Act. Any need to rework a land reallocation plan shall be prescribed by an executive order of the Minister of Agriculture and Forestry.3. (new, SG No. 98/1997, amended, SG No. 88/1998, SG No. 68/1999) acknowledgement of ownership right under the provisions of 4 through 4l; the ruling shall set forth the size and the locality where the agricultural land was found.(2) (Amended, SG No. 16/2003 - effective 26.10.2002) The Municipal Agriculture and Forestry Service's rulings shall be notified to the persons concerned in correspondence with the Code of Civil Procedure. (3) (Amended, SG Nos. 62/1997, 98/1997, 59/1998, 16/2003 - effective 26.10.2002, SG No. 30/11.04.2006, effective 1.03.2007) The Municipal Agriculture and Forestry Service's rulings shall be appealable to the District Court within fourteen (14) days of notification. Appeals shall be lodged with the respective Municipal Agriculture and Forestry Service. The Court shall rule at the substance of the matter. Cases shall be heard in the same settlement in whose territory the property is located. The regional court judgment shall be subject to cassation appeal before the administrative court according to the procedure established by the Administrative Procedure Code , which shall be examined by the court sitting in a panel of three judges.(4) (New, SG No 28/1992) Where disputes arise on material rights every person concerned shall establish his rights by court action.(5) In legal proceedings at the District Court all forms of evidence under the Code of Civil Procedure shall be valid as well.(6) (New, SG No. 45/1995) The Municipal Agriculture and Forestry Service may correct at its own initiative or at the request of interested persons any obvious factual errors made in the ruling under this Article.(7) (Amended, SG Nos. 79/1996, 87/1997, 98/1997) Upon detection of infractions of this Act and the Rules on the implementation thereof, as well as of any new circumstances and/or new written evidence of substantial significance for handing down a ruling under paragraph 1, a Municipal Agriculture and Forestry Service shall, at the request of the Minister of Agriculture and Forestry or at the request of the concerned persons, render a ruling amending the previous one within one (1) year following the emergence of such new circumstances, or of new written evidence, but certainly no later than two (2) years of the land reallocation plan's entry into effect or of the handing down of the Municipal Agriculture and Forestry Service's decision under Article 14, paragraph 1, subparagraph 1. This procedure shall not apply where a court ruling has entered into force in respect of the same lands.(7a) (New, SG 79/1996) Interested persons shall have the right to require, under the conditions and following the procedure laid down in paragraph 7 above, that a Municipal Agriculture and Forestry Service modify the persons in favour or to the prejudice of whom their ruling has been handed down.(8) (Amended, SG Nos. 79/1996, 98/1997) Any rulings under paragraphs 6 and 7 shall be made known following the procedure described in paragraph 2 and may be appealed in the manner and within the terms laid down in paragraph 3. Where the rulings are handed down following the promulgation in the official State Gazette of the announcement that the land reallocation plan has been drawn up, the owners shall be indemnified under the terms and procedures specified in Article 10b.(9) (Amended, SG Nos. 79/1996, 87/1997, 16/2003) A Municipal Agriculture and Forestry Service shall be represented before the court by the chief, deputy chief, or by a duly authorised person having a degree in law, or by the Ministry of Agriculture and Forestry.Article 15(1) (Amended, SG No. 28/1992) Municipal Councils shall, within six months of the date this Act comes into force, provide Municipal Agriculture and Forestry Services with information on changes in the area of agricultural land within the respective territory.(2) (New, SG No. 98/1997) Where a Municipal Agriculture and Forestry Service has ascertained a decrease in the proportion of agricultural land within a respective territory, lessened respectively shall be also the plots of land subject to restitution with the exception of such plots of land that are to be restituted within their either currently existing or previous actual confines restorable on the same terrain. Lessened appropriately shall also be the plots of land the title whereto is subject to restitution in execution of a court ruling on restitution of title by way of a land reallocation plan.(3) (Former paragraph 2, amended, SG No. 79/1996, renumbered and amended, SG No. 98/1997) Proprietors, at their request, shall be indemnified for the differential between the land under rightful claim and land received in restitution with equivalent lands from the municipal landed fund and/or registered compensation bonds. Lands shall be appraised under such terms and procedures as prescribed by the Council of Ministers in consideration of the current market prices in the respective area.(4) (Former paragraph 3, amended, SG No. 79/1996, renumbered and amended, SG No. 98/1997) Owners shall be indemnified under the procedure specified in paragraph 3 also where the court ruling by virtue whereof their right to restitution of ownership of agricultural land has been acknowledged has been presented to the Municipal Agriculture and Forestry Service following the promulgation of an announcement in the official State Gazette that a land reallocation plan has been drawn up.(5) (Former paragraph 4, renumbered, SG No. 98/1997) Legal persons who have worked out or keep and maintain cadastral topographic and geodetic information on the territories of settlements, shall submit it to the state authorities within 10 days from request. Information shall be submitted free of charge, with the exception of the expenses incurred for producing copies of the documentation.Article 16Municipal Agriculture and Forestry Services shall keep registers of petitions filed pursuant to Article 11 above, and rulings become effective under Article 14 above.Article 17(Amended, SG No. 28/1992, SG No. 45/1995)(1) (Amended and supplemented, SG No. 98/1997, SG No. 68/1999) Ownership of agricultural land within new actual boundaries shall be restored using plots of land of similar proportion and quality, appropriately lessened in the cases under Article 15, paragraph 3, and where possible in the same localities where petitioners' estates owned by them even prior to the establishment of labour co-operative farms, state-owned farms, or other agricultural organisations based thereon had been located. New actual boundaries shall be established by way of a land reallocation plan. Restitution of title shall be made by a ruling of the Municipal Agriculture and Forestry Service rendered on the basis of a valid land reallocation plan. Said ruling shall include a description of the agricultural land's proportions and category, its location, confines, neighbours, as well as any limitations on the property and the reasons for such limitations. A plan of the property shall be also annexed to the ruling. A ruling having entered into force with a plan annexed to it, shall certify the ownership right and shall be valid as an ascertaining notarial title deed for the property. Where a ruling restitutes ownership right over agricultural land to a deceased owner, the ruling shall be issued for all his/her heirs together, except in the cases under paragraph 2. The shares of the heirs shall be defined as per the Succession Act, without being specified in the ruling.(2) (Repealed, SG No. 99/2002).(3) (Repealed, SG No. 98/1997).(4) (Amended, SG Nos. 79/1996, 98/1997) Separate land reallocation plans shall be adopted in respect of territories occupied by perennial crops, rice fields and canal equipment, which shall be part and parcel of the land reallocation plan for the entire territory.(5) (Supplemented, SG No. 98/1997) By way of a land reallocation plan, any particular owner's plots of land within a locality shall be restored in one and the same area. All other requirements to which a land reallocation plan and the manner of its elaboration, as well as any technical activities relating to its drawing up and to the survey of estates under Article 14, paragraph 1, subparagraph 1 should conform, shall be set forth in the Rules on the implementation of this Act.(6) Restitution of property shall take place after harvesting of the crop unless the proprietor pays compensation.(7) (Judgment No. 8 of the Constitutional Court of the Republic of Bulgaria - SG No. 59/30.06.1995, amended, SG No. 79/1996) Prior to entry into force of the land reallocation plan petitioners who have been issued a ruling under Article 14, paragraph 1, item 2, or where partitions have been effected under the procedure laid down in paragraph 2, may be put in possession of agricultural lands in such proportions as shall not exceed the ones specified in the ruling.(8) (Amended, SG Nos. 87/1997, 98/1997, 88/1998, 68/1999, 99/2002) A land reallocation plan already in force and an approved chart of existing or restorable real agricultural land boundaries may be reworked in the event of a manifest factual error, following an order of the Minister of Agriculture and Forestry or of an official duly authorised by the Minister. The order shall be promulgated in the State Gazette and shall be notified by the Municipal Agriculture and Forestry Service in the municipality. In redressing such error affected individuals shall be indemnified according to Article 10b, Paragraph 1.(9) (New, SG No. 79/1996, repealed, SG No. 98/1997).Article 18(New, SG No. 45/1995, amended, SG No. 87/1997, 99/2002)(1) Proprietors of farmland located within consolidated plots of perennial plants, rice fields and irrigation facilities shall be under the obligation to manage them by executing all applicable agro technical and agrochemical operations.(2) Proprietors under Paragraph 1 may not destroy perennial plants, rice fields and irrigation facilities located in their own consolidated plots of land prior to the expiry of the period of depreciation, except in compliance to a permission of the Minister of Agriculture and Forestry or any members of the staff duly authorized by him.(3) Perennial plants shall be subject to destruction following the procedures under Paragraph 2 within a period of one year after delivery of said permission.Article 19(1) (Amended, SG No. 98/1997, supplemented, SG No. 99/2002, redesignated from Article 19 and amended, SG No. 13/2007) The municipality shall run and manage the agricultural land that has remained after the rights of the proprietors have been reinstated. Following the entry into force of the land allocation plan and of the approved map of existing and old actual boundaries which can be restored, such land shall become municipal property.(2) (New, SG No. 13/2007) The defining of the estates under paragraph 1 shall be done by a commission, appointed by the director of the district directorate "Agriculture and Forestry", which comprises representatives of the Municipal Agriculture and Forestry Service, of the Agency on Geodesy, Maps and Cadastre, of the municipality, of the state forestry and/or state wild animals stations.(3) (New, SG No. 13/2007) The terms and the procedure for defining the estates under paragraph 1 shall be set out in the Rules on the implementation of this Act. The protocol decision of the commission under paragraph 2 shall be mentioned as well in the municipality property acts as a ground for their drafting(4) (New, SG No. 13/2007) The municipalities shall be obliged to grant the lands under paragraph 1 for a term of 5 years if one of the following conditions exist:1. establishment of the boundaries of the agricultural lands regarding which there is a decision of the Municipal Agriculture and Forestry Service for recognition of the right of reinstatement of ownership in existing or old actual boundaries which can be restored;2. execution of court decisions for recognised right of ownership;3. compensation of the owners;4. execution of projects for consolidation of agricultural lands in the settlements on the territory of the municipality;5. execution of sites from the technical infrastructure, as well as of other projects about which the law allows compulsory expropriation.(5) (New, SG No. 13/2007) In the instances under paragraph 4, item 1-3 and following the same sequence, the granting of the lands shall be done by a reasoned request of the Municipal Agriculture and Forestry Service with an order of the municipal mayor, without the need of a decision by the municipal council.(6) (New, SG No. 13/2007) When there is an approved cadastral map about the settlement, the establishment of the boundaries of the agricultural lands shall be done according to the Cadastre and Property Register Act. (7) (New, SG No. 13/2007) In order to compensate the owners, upon a reasoned proposal of the Municipal Agriculture and Forestry Service, at least 50 percent of the lands under paragraph 1 shall be envisaged, but not more than the necessary ones, under terms and procedure set out in the Rules on the implementation of the Act. (8) (New, SG No. 13/2007) Regarding the lands under paragraph 1, the municipalities shall not be able to conclude for a term of 5 years:1. (amended, SG No. 59/2007) preliminary contracts, as well as to issue certificates in relation to a factual check under the procedure of Article 587 of the Code of Civil Procedure; 2. rental and lease contracts for a term not longer than three, respectively 4 years.(9) (New, SG No. 13/2007) Right-transferring transactions with the lands under paragraph 1 shall be done on the basis of a land management plan, adopted by the municipal council and approved by the Minister of Agriculture and Forestry. The terms and procedure for drafting, publication, adoption and approval of the land management plan shall be set out in the Rules on the implementation of the Act. (10) (New, SG No. 13/2007) Apart from the instances under paragraphs 4 and 9, the lands under paragraph 1 shall not be subject to right-transferring transactions for a term of 5 years.Article 19a(New, SG No. 45/1995)(1) (Amended, SG No. 98/1997, 99/2002) Terms and procedures of compensation shall be prescribed by the Rules on the implementation of this Act.(2) (Repealed, SG No. 98/1997).(3) (Repealed, SG No. 98/1997).(4) (New, SG No. 99/2002) Within proprietor compensation proceedings the Municipal Agriculture and Forestry Service shall deliver a decision with regard to:1. Determination of the right to compensation following the procedures under Article 10b, 10c, and Article 35, also specifying the amount of compensation,2. Determination of the amount of compensation in land and/or registered compensation bonds in accordance with the Paragraph 5 index,3. Compensation of proprietors by offering registered compensation bonds,4. Compensation of proprietors by offering farmland.(5) (New, SG No. 99/2002) The Municipal Agriculture and Forestry Service shall pass a memorandum to determine an index representing the relation of the value of land offered in compensation to the value of compensation in land due on the territory of the relevant municipality that will be used to reduce the value of compensation in land for all rights' claimants.(6) (New, SG No. 99/2002) Where, in the process of determining compensations in land, estates are formed that are smaller than 3 decares as regards cornfields, 2 decares as regards meadows, and 1 decare as regards perennial plants, compensation shall be effected through granting such estates to several co-proprietors, each co proprietor being entitled to a fractional interest in correspondence to the value of his compensation.(7) (New, SG No. 99/2002) Decisions of Municipal Agriculture and Forestry Services under Paragraph 4, items 1 and 4 may be amended on the grounds and following the procedures under Article 14, Paragraph 7 - within a period of one year following their entry into force, but not later than two years following the entry into force of the compensation plan, as well as following the terms and conditions laid out in Article 14, Paragraph 6.(8) (New, SG No. 99/2002) Judicial expert examinations to be filed upon appeal of Municipal Agriculture and Forestry Services decisions on fixing amounts of compensation under Paragraph 4, item 1, shall be entrusted to experts from a list approved by the Minister of Agriculture and Forestry and by the Minister of Finance.(9) (New, SG No. 99/2002) The Municipal Agriculture and Forestry Service shall issue a decision for the determination of compensation under Paragraph 4, item 3, where under conditions laid out in Article 35, Paragraph 1 acts of the court or of real estate property bodies underlying said decision, have been delivered or submitted after fixing the index under Paragraph 5.(10) (New, SG No. 99/2002) Provisions of Article 17, Paragraph 1, sentences 4 - 8 shall apply mutatis mutandis to decisions of the Municipal Agriculture and Forestry Service.Article 20(1) (Amended, SG Nos. 45/1995, 79/1996) Landless persons and small proprietors shall be granted land by respective Municipal Agriculture and Forestry Services from the national and municipal land reserves by way of transferring the property rights or leasing out by such terms and under such procedure as shall be prescribed in an ordinance enacted by the Council of Ministers.(2) (New, SG No. 79/1996, amended, SG No. 87/1997, 99/2002) The size and locality of lands to be granted shall be specified by the Minister of Agriculture and Forestry on a motion by the Municipal Agriculture and Forestry Service as regards lands belonging to the State landed reserve, and by the municipal council where lands constituting municipal landed funds are concerned, in proportion to the factual availability of landed funds in the respective territory. Same authorities shall specify what part thereof shall be transferred in possession or leased out. Agricultural estates granted by virtue of a land provision plan to individuals with little or without any real property may not be smaller in size than 3 decares as regards cornfields, 2 decares as regards meadows, and 1 decare as regards perennial plantations. Real estate below these sizes may be granted to individuals eligible for obtaining land provisions upon their written consent.(3) (New, SG No. 79/1996, amended, SG No. 99/2002) Land shall be granted within the territory of the settlement where a person takes up his permanent abode, or where his agricultural lands have been reinstated, as well as within neighbouring territories. Provision of land may be operated from other landed funds of the municipality upon the written consent of the individuals with little or without any real property where no land or a shortage of land exists.(4) Persons thus vested with landed property may not transfer said property before the expiry of 10 years of the date of acquisition unless the transfer is made to the State or the local Municipality.Article 21(1) (Amended, SG No. 28/1992) Among persons eligible to be thus vested with property, preference shall be given, as follows:1. persons who are engaged in farming in a local settlements;2. (amended, SG No. 99/2002) persons, residing permanently in a local settlement, who have relinquished land to the State land reserve in another settlement;3. graduates in farming and young couples who undertake to engage in farming;4. persons dispossessed of agricultural land for state or public policy needs.(2) (Amended, SG No. 99/2002) Among applicants of the same category, preference shall be given, in the ranking order set out below, to individuals who:1. Have been registered with the Municipal Social Assistance Service and/or Labour Office and do not own any land or own less in comparison to others,2. Do not own any land or own less in comparison to others.(3) A Municipal Agriculture and Forestry Service's rulings on petitions shall be notified to persons concerned pursuant to the Code of Civil Procedure and may be appealed against pursuant to Article 14 above.Article 22Persons outside categories under the preceding article shall be vested with property rights in land subject to a ruling of the Municipal Agriculture and Forestry Service on results of auction held according to rules set by the Council of Ministers.Article 23(1) (Amended, SG No. 79, SG No. 104/1996, redesignated from Article 23, SG No. 13/2007) Where land is granted, ownership shall be acquired upon the entry into force of the decision of the Municipal Agriculture and Forestry Service. The decision shall be entered into the registers of the Registry Service. A lawful mortgage shall be established on the estate until the payment of the sums due for the grant of the land.(2) (New, SG No. 13/2007) The Municipal Agriculture and Forestry Service shall issue a decision for repeal of the grant of land for the benefit of the state land fund or of the municipal land fund in case of non-fulfilment of the obligations defined in the Ordinance under Article 20, paragraph 1, by the persons to whom the land has been granted or in case of falsely declared data, used for the issue of the decision.(3) (New, SG No. 13/2007) The repeal decision for the grant of land shall be issued within three months from the establishment of the infringement.(4) (New, SG No. 13/2007) The repeal decision for the grant of land shall be communicated to the interested persons according to the procedure of the Code of Civil Procedure and shall be subject to appeal according to the procedure of Article 14, paragraph 3. The decision which has entered into force shall be entered into the Registry Service.Article 23a(New, SG No. 13/2007)The decisions of the Municipal Agriculture and Forestry Services under Article 21, paragraph 3 and under Article 23 shall be subject to amendments on the grounds of and according to the procedure of Article 14, paragraph 7 within two years from their entry into force, but not later than three years from the entry into force of the land granting plan, as well as under the terms and procedure of Article 14, paragraph 6.Chapter ThreeLAND HELD BY THE STATE, MUNICIPALITIES, AND LEGAL PERSONS(Retitled, SG No. 98/1997)Article 24(1) (Amended, SG Nos. 28/1992, 45/1995, 79/1996, 87/1997, 68/1999, 99/2002) The State shall retain its ownership of agricultural lands according to the status quo at the time of entry of this Act into force, with the exception of the lands subject to restitution. The Minister of Agriculture and Forestry shall exercise the owner's rights in respect of lands included in the State landed fund, by letting or leasing them out, by establishing limited real rights thereon, by executing sales and exchanges for farmland belonging to individuals and legal entities of an equivalent valuation determined in accordance with Regulations provided for under Article 36, Paragraph 2.(2) (Amended, SG Nos. 79/1996, 87/1997) The property rights of the State over agricultural lands allotted to research, research and manufacture, and academic institutions, inclusive of the Ministry of Transportation, to the penitentiaries, to seed production and pedigree animal farms, fruit tree nurseries, pepper nurseries, forest nurseries and hunting estates, as well as to the Ministry of Regional Development and Urban Planning inasmuch as are necessary for their activities, shall be retained in such proportions as correspond to such institutions' basic nature of business and as determined by the Ministry of Agriculture and Forestry following consultations with all administrations concerned.(3) (Amended, SG No. 99/2002) The State's ownership of agricultural land allotted to the Ministry of Defence, the Ministry of the Interior and other departments directly pertaining to the national defence and security, shall be retained on territories and in size determined by the Council of Ministers on a motion by the Minister of Defence, or by the Minister of the Interior, respectively, or by the head of the respective department. Where compelling circumstances related to national defence and security are no longer found the above farmland shall be made part of the State landed reserve by virtue of a Decision of the Council of Ministers.(4) (Amended, SG No. 133/1998) Proprietors shall not be reinstated in ownership of agricultural lands which have been included in parks of national significance and natural reserves, exclusively state owned, as identified under the provisions of the Protected Areas Act, or of land where immovable archaeological sites are located on or below its surface.(5) (New, SG No. 45/1995) The lands under paragraphs 2, 3 and 4 shall be the property of the State. These may only be used for the purposes for which they had been granted. The users of such lands shall not be entitled to permit other persons to use such lands.(6) Proprietors under paragraphs (2), (3) and (4) above shall be granted compensation pursuant to Article 10b, paragraph (1).(7) (New, SG No. 88/1998, amended, SG No. 99/2002) Land in the State landed reserve shall not be acquired by prescription. Seizure thereof from individuals who are in possession in the absence of a legally valid title or use these not in accordance with their intended purpose shall be operated following the terms and conditions of Article 34, irrespective of the manner in which the State has acquired them.(8) (New, SG No. 13/2007) In the instances of paragraph 3, when the need relating to the defence and security of the country stops to exist, upon a request by the former proprietor or his heirs, the district governor shall repeal the expropriation if the persons have not been compensated. The district governor shall transmit the request to the Minister of Agriculture and Forestry for an opinion.(9) (New, SG No. 13/2007) The request under paragraph 8 shall be deposited within 6 months from the date of the publication of the decision of the Council of Ministers under paragraph 3 in the State Gazette.(10) (New, SG No. 13/2007) The terms and procedure for the repeal of the expropriation shall be determined by an Ordinance of the Council of Ministers.(11) (New, SG No. 13/2007) The Minister of Agriculture and Forestry shall define plots and pastures from the state land fund which can be granted for common use by agricultural farmers for breeding of animals in accordance with the terms for maintenance of the land in good agricultural and ecological condition, pursuant to the procedure of Article 48 of the Referral to the People Act. The list shall be sent annually to the mayors of the municipalities at the location of the state plots and pastures and shall be published on the Internet site of the Ministry of Agriculture and Forestry.(12) (New, SG No. 13/2007) The state shall be represented before the court by the Minister of Agriculture and Forestry regarding cases relating to lands from the state land fund.(13) (New, SG No. 13/2007) The appraisal of limited real rights and easements on lands from the state land fund shall be determined pursuant to the Ordinance under Article 36, paragraph2. The value determined by the evaluators under Article19a, paragraph 8 shall be the lowest price according to which limited real rights and easements can be established.Article 24a(New, SG No. 99/2002)(1) The lease or rent of estates belonging to the State landed reserve shall be operated on the occasion of an auction or competition in accordance with the terms, conditions, and prices determined within the Rules and Regulations for the implementation of this act. On the basis of the outcome of said auction or competition a contract for lease or rent shall be signed. The duration of a lease contract may not exceed 10 years.(2) Farmlands belonging to the State landed reserve may be leased or rented without auction or competition:1. Where perennial plantations are grown on these,2. Where no use has been made thereof during two or more annual farming cycles,3. To users under Article 24, Paragraph 2 where these have formed commercial companies, and4. Upon privatisation of commercial companies under item 3 - for the period of excess of the duty to keep preceding activities, as provided for in a privatisation contract, over the duration of the contract for lease or rent.(3) (New, SG No. 13/2007) The Minister of Agriculture and Forestry shall determine, upon a proposal by the district directorates "Agriculture and Forestry", small size estates from the state land fund which can be rented for use for a year without tender or competition.Article 24b(New, SG No. 13/2007)(1) The Minister of Agriculture and Forestry shall grant for free estates from the state land fund to the organisations and services under Article 24, paragraph 2 and 3, which are necessary for their activities.(2) The lands under paragraph1 shall be used only for the purposes for which they have been granted. Their users shall not have the right to grant them for use by third parties.Article 24c(New, SG No. 13/2007)The prior consent of the Minister of Agriculture and Forestry shall be required for the assignment of the drafting of a detailed regulation plan which involves lands from the state land fund.Article 24d(New, SG No. 13/2007)(1) The exchange of agricultural lands from the state land fund with agricultural lands of citizens, legal persons or municipalities shall be done upon a written proposal by the interested persons. The proposal shall not be binding upon the Minister of Agriculture and Forestry regarding the exchange.(2) When with the proposed exchange of agricultural lands a consolidation of land estates is achieved, no restrictions regarding the size of the agricultural lands - subject of the exchange, shall be applied.(3) The Minister of Agriculture and Forestry shall decide with a prior written statement on the proposal for exchange within one month. When the statement is favourable, it shall include as well the terms for the execution of the exchange.(4) The exchange of agricultural lands under paragraph 1 shall not be done when the lands - property of citizens, legal persons or municipalities, are encumbered with mortgages or other charges, are rented or leased, are located in sanitary-protective areas, there is no direct access to them, as well as in other cases, provided for in the Rules on the implementation of this Act, or the exchange is not in the interest of the state.(5) For the preparation of the exchange a file shall be prepared, containing documents certifying the right of ownership over the estates subject to the exchange, their appraisals, the compliance with the legal conditions and with the terms under paragraph 3.(6) For the execution of the exchange the Minister of Agriculture and Forestry shall issue an order. Within one month from the announcement of the order the interested person shall pay the due taxes, charges, expenses and other payments.(7) On the basis of the order a written contract shall be concluded within one month from the payment of the amounts under paragraph 6. The contract shall be entered in the Registry Agency at the location of the estates at the expense of the applicant. A notarial form shall not be required.(8) When the applicant does not pay the due amounts within the term under paragraph 6 or does not appear to conclude the contract within the term under paragraph 7, it shall be considered that he renounces to conclude the transaction.(9) The exchange of agricultural lands from the municipality land fund with agricultural lands of citizens, legal persons and the state shall be done by decision of the municipal council after presentation of a reasoned statement to the Municipal Agriculture and Forestry Service.(10) The consolidated agricultural lands, acquired through exchange of agricultural lands from the state land fund or from the municipality land fund, shall not be partitioned through right-transferring transactions during a period of 10 years as from the execution of the exchange.Article 25(1) (Supplemented, SG No. 13/2007) Agricultural land, which is not owned by citizens, legal persons or the State, shall be municipal property. The property of the municipalities over the plots and the pastures shall be public and shall not be proclaimed as private municipal property pursuant to the Act on the Municipal Property. The municipal council can determine a charge for use of the municipal plots and pastures, the revenues from which shall be used for their maintenance.(2) (Supplemented, SG No. 45/1995, amended, SG No. 98/1997) Municipalities shall be reinstated in ownership of agricultural land of which they were dispossessed to benefit state-owned farms, labour co-operative farms, agricultural and industrial complexes, agricultural companies, as well as state-owned forest lands, where such land was included in the State forestry fund, except in the instances of forest nurseries and protective forest belts.Article 26(Amended, SG Nos. 28/1992, 45/1995, 87/1997) The Ministry of Agriculture and Forestry and the Municipal Agriculture and Forestry Services may grant usufruct in state and municipal land to individuals where such land is in low-productivity or depopulated areas as determined by the Council of Ministers. Users, who have cultivated such land for a period over 10 years, may be granted ownership subject to a resolution of the Municipal Council and by order of the Minister of Agriculture and Forestry, when ownership of land from the State Land Reserve shall be granted.Article 27(1) (Amended, SG Nos. 28/1992, 45/1995, 79/1996) Proprietors of land incorporated in labour co-operative farms and state farms, members of labour co-operative farms or of other agricultural organisations set up on the basis thereof, as well as all persons in legal labour relations with them, shall be entitled to a share of such entities' property. Shares shall be assessed on the basis of a person's contribution to the acquisition thereof: contributed land, perennials, length of service and moneys paid up for the acquisition of machinery and equipment not cleared by subsequent payment. The distribution of shares shall be effected under the terms and procedures laid down in the Rules on the implementation of this Act, in equal proportions of contributed land and length of service and following the reimbursement of moneys provided for the acquisition of machinery and equipment not cleared by payment. Where a rightful claimant has not made contributions of land and fixed assets, his years of service shall be taken into account, provided they are not less than five (5).(2) Members of co-operative farms shall have the right to withdraw their shares at termination of membership.(3) Persons, and their inheritors, who have terminated their membership before this Act comes into force shall also be entitled to shares.(4) (Repealed, SG No. 98/1997).(5) (New, SG No. 45/1995, amended, SG No. 98/1997) In the event that several persons under paragraph 1 have requested to be granted a certain chattel related to agricultural production in exchange of shares in the organisation under 12 of the Transitional and Concluding Provisions, priority shall have those who manufacture agricultural produce or provide manufacturing services related thereto; and if several persons should satisfy this requirement, priority shall have those whose shares cover a larger portion of the requested chattel's value.(6) (New, SG No. 45/1995, amended, SG No. 79/1996, amended and supplemented, SG No. 98/1997, supplemented, SG No. 13/2007) Persons who have acquired ownership over buildings and facilities from the property of the organisations under 12 of the Transitional and Concluding Provisions, shall be entitled to utilise, as of the day of the acquisition of the buildings and against payment, the non-built part of land surrounding such buildings within such size as set by the law for a period of one (1) year following the entry into force of the land allocation plan. The rental amount shall be determined by the respective District Governor. The said persons shall have the right to acquire the property over that land and over the built-up portion of it by way of:1. (amended, SG No. 98/1997) a three-year instalment plan involving payment by equal annual instalments of the outstanding amount increased by 20 per cent of the annual inflation rate;2. (repealed, SG No. 98/1997).3. submitting of an equal amount of land to the State landed fund. If the person in question is a legal person, such submission of land may be effected by its members following the appropriate procedure.(7) (Amended, SG No. 98/1997) Persons having a share in a co-operative under Article 27, upon leaving such co-operative shall have the right to receive a portion of the property of the organisations under 12 of the Transitional and Concluding Provisions in proportions corresponding to their shares.Article 28(1) (Amended, SG No. 28/1992) Labour co-operative farms shall be reinstated in ownership of agricultural land, fixed and financial assets, etc. as dispossessed of them or of state-owned farms based on them to benefit other entities.(2) Where such property is an indivisible part of existing assets and the project has not changed its purposes since its foundation, it shall be restituted to the proprietor who will reimburse the difference in value.(3) Where a labour co-operative farm's property was ceded to a state owned farm, a tractor depot and to other state-owned organisations, and has been subsequently incorporated into corporate property, the labour co- operative farm's equity share, or that of its legal successors, shall be determined in proportion to the property transferred by the labour co- operative farm to a state-owned farm and to other state-owned organisations.(4) (Repealed, SG No. 28/1992).(5) (Repealed, SG No. 28/1992).Article 29(1) (Amended, SG No. 28/1992, SG No. 99/2002) The Bulgarian Orthodox Church and the other religious denominations, co-operatives and other organisations, shall, at their request, be reinstated in ownership of agricultural land, as dispossessed, unless such land has since been lawfully built up for purposes other than farming, or granted to individuals. In such cases the above organisations shall be compensated with land equal in quality and area from the State or Municipal Land Reserves. In the absence of such land proprietors shall be compensated with registered compensation bonds.(2) Subject to consent of the organisations under paragraph (1) above, reinstatement in ownership may be done elsewhere in the country.Article 30(1) (Amended, SG Nos. 87/1997, 98/1997, 68/1999) Any property of the expunged organisations under 12 of the Transitional and Concluding Provisions, which the persons specified in Article 27, paragraph 1 do not wish to receive as a share, and which cannot be sold out, shall be ceded gratis free to the municipality in whose territory it is located. In the presence of state property, municipalities shall be obligated to render the same to the Ministry of Agriculture and Forestry.(2) (New, SG No. 68/1999) Following the expiry of a 5-year period starting from transferring the property under paragraph 1, sentence 1, such property shall pass into ownership of the municipality.(3) (New, SG No. 68/1999) The documents of the expunged organisations under 12 shall be submitted according to an inventory, by the persons under 29 of the Transitional and Concluding Provisions of the Act on the Amendment of the Ownership and Use of Agricultural land Act (promulgated, SG 45/1995, amended, 46/1995, 59/1995: Ruling No. 8/1995 of the Constitutional Court, amended, 79/1996, 15/1997: Ruling No. 3/1997 of the Constitutional Court, amended, 98/1997) to the Mayor in the municipality where the organisation had its registered seat.Chapter FourLANDED PROPERTY AUTHORITIES(Title amended, SG No. 28/1992)Article 31(Amended, SG No. 28/1992)(1) (Amended, SG Nos. 28/1992, 87/1997, 98/1997, 99/2002) Land property authorities shall be the Ministry of Agriculture and Forestry and all Regional Agriculture and Forestry Directorates and the Municipal Agriculture and Forestry Services.(2) (New, SG No. 98/1997, amended, SG No. 68/1999) On a motion of the Minister of Agriculture and Forestry in agreement and co-ordination with the Finance Minister, the Council of Ministers shall adopt a tariff of state fees to be charged, for keeping and updating land reallocation plans and for any other administrative services provided by land property authorities. Revenues from such fees shall be deposited into the budget of the Ministry of Agriculture and Forestry.Article 32(Repealed, SG No. 28/1992)Article 33(Amended, SG Nos. 28/1992, 45/1995)(1) (Judgment No. 7 of the Constitutional Court of the Republic of Bulgaria - SG No. 59/30. 06. 1995, amended, 79/1996, 87/1997, 99/2002) Municipal Agriculture and Forestry Services shall be bodies of the Ministry of Agriculture and Forestry. They shall be established, re-established and disbanded by the Minister of Agriculture and Forestry upon a proposal of the Regional Agriculture and Forestry Directorates. The Minister shall appoint and members of their staff.(2) (Amended, SG No. 79/1996, 34/2000, 99/2002, 36/2004) Municipal Agriculture and Forestry Services shall restore property over land and forests under the provisions of this Act, shall implement government agricultural policy on their territory, and shall conduct other activities under the Application Regulations to this Act and the Organisation Rules of the Ministry of Agriculture and Forestry. Municipal Agriculture and Forestry Services shall keep and update land reallocation plans and other materials or data obtained in the course of implementing this Act, and shall issue land plans while transacting and partitioning agricultural land until cadastral maps and cadastral registers are adopted for their territory according to the provisions of the Cadastre and Property Register Act. (3) (New, SG No. 79/1996, amended, SG No. 87/1997, 106/2000) Performance of activities related to maintenance and update of land reallocation plans and of other materials and data obtained in result of the enforcement of this Act, shall be assigned by the Minister of Agriculture and Forestry, or by persons duly authorised by the Minister, on a motion by the Municipal Agriculture and Forestry Service to contractors within one (1) month following the entry into force of land reallocation plans.(4) (New, SG No. 79/1996, amended, SG No. 87/1997) The powers of the Minister of Agriculture and Forestry relative to the implementation of this Act may also be exercised by persons authorised by him in writing.(5) (Amended, SG No. 87/1997, 99/2002) The Minister of Agriculture and Forestry shall determine the number of staff of Municipal Agriculture and Forestry Services.(6) (New, SG No. 13/2007) The decisions of the Municipal Agriculture and Forestry Services in relation to the restitution of ownership and the compensation of the owners pursuant to this Act and the Act Restoring Ownership of Forests and Forest Stock Land Tracts, as well as in relation to the granting of land to citizens, shall be signed by the director of the service and by the officials determined by an order of the director of the District Directorate "Agriculture and Forestry".Article 34(New, SG No. 98/1997)(1) (Supplemented, SG No. 13/2007) At the request of the owners or legal users, farm estates the right of ownership whereto has been restituted shall be seized from the persons using them without legal grounds and shall be rendered to their lawful proprietors by an n order of the mayor of the municipality at the location of the estates.(2) Both a mayor's ruling as well as his refusal to issue such ruling shall be appealable under the terms and procedures presented in the Administrative Procedure Code. No appeal shall suspend the execution of the ruling unless the court has ruled otherwise.(3) A mayor's ruling shall be carried out through administrative channels and with the assistance of the national police authorities.(4) (New, SG No. 13/2007) The lands under Article 19 shall be seized from the persons using them without legal grounds pursuant to the procedure of Article 65 of the Municipal Property Act. (5) (Renumbered from Paragraph 4, SG No. 13/2007) No persons thus removed from the utilisation of the estate shall have any right to indemnification.Article 34a(New, SG No. 98/1997, repealed, SG No. 68/1999)Article 34b(New, SG No. 98/1997, repealed, SG No. 68/1999)Article 34c(New, SG No. 68/1999, amended, SG No. 99/2002)In the cases under Article 17, paragraph 8 and under 31, 32 and 34 of the Transitional and Concluding Provisions of the Act on the Amendment of the Ownership and Use of Agricultural land Act (promulgated, SG 98/1997, amended, 36 and 88/1998), starting from the date of promulgation in the State Gazette of the ruling for the reworking of the plan under Article 17, paragraph 8, all rulings of the Municipal Agriculture and Forestry Service and the public deeds based on factual possession for the property affected by the reworking, issued on the basis of these rulings, shall be considered null and void by rights.Chapter Five(New, SG No. 98/1997)INDEMNIFICATIONArticle 35(1) (Amended, SG No. 16/2003) Where restitution of property cannot be effected in any other way stipulated statutorily, agricultural land owners that are subject to restitution under this Act, shall be indemnified with registered compensation bonds.(2) (Repealed, SG No. 47/2002)(3) (Amended, SG Nos. 47/2002, 99/2002, 16/2003) Registered compensation bonds shall be registered and have no cash value. The terms of their emission, the transactions and payments through them shall be regulated by a separate act. They can only be used for purchasing by auction of agricultural land from the State landed fund, for participation of their holders in the privatisation, as well as for acquisition of title to, and use of, land under Article 27, paragraph 6. Only holders of registered compensation bonds shall have the right to participate in auctions for agricultural land from the State landed fund.(4) (Amended, SG No. 68/1999) Registered compensation bonds shall be transferable without limitations.(5) Registered compensation bonds shall be inheritable.(6) Registered compensation bonds may not be put up as collateral security, nor can be used as a means of payment, except from the instances specified in paragraph 3.(7) Registered compensation bonds shall have a par value of one thousand (1,000) units each. For the purpose of establishing the amount of indemnification payable to entitled persons by way of registered compensation bonds, as well as of any payments thereby in the instances specified in paragraph 3, each nominal value unit shall be equal to one (1) Bulgarian Lev.Article 36(1) Municipal Agriculture and Forestry Services shall determine the pecuniary indemnification amount due and the number of registered compensation bonds owing to entitled persons under Article 35, paragraph 1.(2) (Amended, SG No. 99/2002, SG No. 17/2006) The indemnification amount under paragraph 1, including the one concerning farmlands within the confines of urbanized territories (settlements and populated areas) shall be determined pursuant to the terms and conditions of a Council of Ministers Ordinance.(3) (New, SG No. 13/2007) The appraisal of the municipal lands, upon which a right of use has been established on the basis of the acts referred to in 4 of the Transitional and Concluding Provisions, shall be determined by a decision of the municipal council pursuant to the procedure of the on Municipal Property Act. The price determined by the municipal council shall not be higher than the appraisal determined pursuant to the procedure under paragraph 2.Article 37(Amended, SG No.47/2002, 99/2002)Terms, deadlines and procedure of indemnification with registered compensation bonds shall be prescribed by the Rules for Implementation of this act.Article 37a(New, SG No.47/2002)Land commissions shall be obliged to keep a register of the certification documents, sent to the bodies under the Transactions in Compensation Instruments Act, as well as of the certification documents received and delivered to owners of compensatory documents.Chapter Five A(New, SG No. 99/2002)Use of FarmlandArticle 37b(Amended, SG No. 13/2007) Each proprietor shall file with the Municipal Agriculture and Forestry Service at the estate location a declaration form indicating the type of business structure and the intended durable use of the lands. A declaration filed by one of the co-owners can be used by all the other co-owners. Users of farmland shall submit a copy of all lease, rent or joint farming contracts to the Municipal Agriculture and Forestry Service. The Municipal Agriculture and Forestry Service shall keep a register of farmland proprietors and users and shall make information concerning them available in view of promoting the use of larger and the establishment of consolidated plots of land.Article 37c(1) (Amended, SG No. 13/2007) Consolidated plots for the use of farmland shall be established upon written agreement between proprietors and/or users. The conclusion of the agreement shall be conducted by a commission per each settlement at the territory of the municipality, appointed by an order of the municipal mayor. The commission shall be comprised by: the mayor of the settlement or the deputy mayor, representatives of the respective Municipal Agriculture and Forestry Service and representatives of the municipality. All users in the respective settlements shall submit to the commission the contracts concluded with the co-owners and registered in the Municipal Agriculture and Forestry Service, a list of the leased or rented agricultural lands by plots and lots.(2) (New, SG No. 13/2007) The agreement shall contain the data under paragraph 1, shall be signed by the users and the chairman of the commission, and shall be submitted to the Municipal Agriculture and Forestry Service and the respective municipality. The agreement shall be concluded and updated each year by 30th March.(3) (New, SG No. 13/2007) When the users cannot reach an agreement, the commission shall draft a project for allocation of the use of the lands by plots by 10th April of the respective year according to the following manner:1. the right to use the respective plot shall be granted to the user with the biggest share of leased/rented agricultural land in the plot;2. the part of the plot regarding which there are no concluded contracts and there are no declarations submitted by their owners under Article 37b, shall be granted to the user with the biggest share of leased/rented agricultural land in the respective plot;(4) (New, SG No. 13/2007) The commission shall draft a report to the municipal mayor, which shall contain the allocation of the plots for use, data about the lands under paragraph 3, item 2, about their proprietors and the rent payment due, on the basis of which the mayor shall issue an order.(5) (New, SG No. 13/2007) The order under paragraph 4 shall be published in the mayoralty and in the building of the Municipal Agriculture and Forestry Service, and shall be published on the Internet site of the municipality and the respective district directorate "Agriculture and Forestry" by 15th April. The order shall be appealed according to the procedure of the Administrative Procedure Code. (6) (New, SG No. 13/2007) The appeal of the order under paragraph 4 shall not stop its execution.(7) (New, SG No. 13/2007) The user of agricultural lands who wants to benefit from the order in its part regarding the plot under paragraph 3, item 2, shall pay in beforehand into a special non-budget account of the municipality a sum in the amount of the average annual rental payment for the region for the previous year. The sums shall be deposits and shall be paid by the municipality to the entitled persons on the basis of the order of the mayor under paragraph 4 within three years.(8) (New, SG No. 13/2007) A livery to use the respective plot or parts thereof shall be done by an order of the mayor of the respective municipality after the gathering of the harvest and payment of the sums under paragraph 7.(9) (Renumbered from Paragraph 2, SG No. 13/2007) The plots shall be designated in an extract from the map of the settlement and shall be publicized at the Mayoralty and the Municipal Agriculture and Forestry Service.Article 37dThe terms and conditions for designation of consolidated plots intended for farmland use, as well as those for entering, amending, and terminating agreements shall be laid out in the Rules for Implementation of this act.Article 37e(1) The State shall promote sales and exchanges of neighbouring estates in view of their consolidation, all costs related to technical activities on the occasion of sales or exchanges being covered by it.(2) Individuals may not dispose of farmland acquired under Paragraph 1 from the State or municipal landed reserves for a period of 10 years.Article 37f(New, SG No. 13/2007)(1) Upon a written agreement of the proprietors of agricultural lands with notarial certified signatures, the land division plan which entered into force and the approved map of the existing or restorable old actual boundaries of agricultural lands, as well as the map of the restituted property can be amended in order to create consolidated land estates.(2) When there is a change in the boundaries of the agricultural lands Ц state or municipal property, the agreement under paragraph 1 about the state or municipal estates shall be concluded by the Minister of Agriculture and Forestry or by a person authorised by him, respectively the municipal mayor, in a written form.(3) The agreement on creation of consolidated land estates shall be entered into the Registry Agency.(4) On the basis of the approved project for amendment of the plans and the maps and the entered agreement, the Municipal Agriculture and Forestry Service shall issue decisions and plans about the consolidated land estates. The decision shall describe the size and the category of the estate, its location (boundaries, neighbours) and the limitations on the ownership by stating the grounds for that. The proprietors shall be informed about the decision according to the procedure of the Code of Civil Procedure. The decision shall not be subject to an appeal. The ownership over the consolidated land estates shall be acquired from the date of the decision of the Municipal Agriculture and Forestry Service. The decision, accompanied by a plan, shall certify the right of ownership and shall have the value of a notary deed.(5) The mortgages imposed on the land estates before their consolidation shall be transferred in full to the newly established land estates.(6) The expenses for creation of consolidated land estates by agreement of their proprietors shall be borne by them apart from those cases where the consolidation resulted as a consequence of technical infrastructure projects which concern the intended use of the land estates or parts thereof.(7) The terms and procedure for amendments to the map of the restituted property by agreement of the owners shall be determined in the Rules on the implementation of this Act. (8) For settlements with approved cadastral map the amendments shall be reflected according to the procedure of the Cadastre and Property Register Act. Article 37g(New, SG No. 13/2007)The Minister of Agriculture and Forestry shall issue an ordinance on the terms and procedure for application of the plans for consolidation of the agricultural lands.Chapter Six(New, SG No. 98/1997)ADMINISTRATIVE AND PENAL PROVISIONSArticle 38(1) (Amended, SG No. 68/1999) Any person who destroys, damages, removes or relocates a permanent landmark designating the supporting net or the boundaries of farm estates, shall be penalised by a fine in the amount of Bulgarian Leva (BGL) from two hundred and fifty (250) up to five hundred (500).(2) (Amended, SG No. 68/1999) Any person who destroys a field road traced under a land reallocation plan, or presents an obstacle to its tracing under a land reallocation plan, shall be penalised by a fine of BGL from five hundred (500) up to one thousand (1,000).(3) (Amended, SG No. 68/1999) Where a violation under paragraphs 1 and 2 has been committed on the orders of a legal entity's official, the executive manager thereof shall be penalised by a fine in the amount of BGL from one thousand (1,000) up to two thousand (2,000), and the legal entity shall be penalised by a property sanction in the amount of BGL from two thousand (2,000) up to five thousand (5,000).Article 38a(New, SG No. 99/2002)An individual or a legal entity which fails to perform its duty within the time-limit of Article 18, Paragraph 3 shall be sanctioned by a fine or penalty of BGN 500 to 1,000.Article 39(1) (Amended, SG No. 68/1999) Any official who has failed to discharge his obligations under Article 7, paragraph 5, Article 15, paragraph 5, and Article 34, paragraph 1, shall be penalised by a fine in the amount of Bulgarian Leva (BGL) from five hundred (500) up to two thousand (2,000).(2) (Amended, SG No. 68/1999) Any official who has caused or allowed the approval of a land reallocation plan, or of other technical activities relating to the implementation of this Act, in violation of the requirements for their elaboration, shall be penalised by a fine of Bulgarian Leva (BGL) from one hundred and fifty (150) up to two thousand (2,000).Article 40(1) (Amended, SG No. 68/1999) Any person who utilises without any legal ground a agricultural land estate the title whereto has been restituted, shall be penalised by a fine in the amount of Bulgarian Leva (BGL) from two thousand (2,000) up to ten thousand (10,000).(2) (Amended, SG No. 68/1999) Any person who fails to obey an order for seizing such estate as provided for in Article 34, shall be penalised by a fine in the amount of Bulgarian Leva (BGL) from five hundred (500) up to two thousand (2,000).Article 41(1) (Amended, SG No. 68/1999) Violations under the preceding articles shall be ascertained by way of statements drawn up by an official designated by the district governor having jurisdiction over the location of the property.(2) (Amended, SG No. 68/1999) Penal decrees shall be issued by the district governor having jurisdiction over the location of the property, or by a person duly authorised by the district governor.(3) (Amended, SG No. 68/1999) Penalties shall be deposited into the budget of the Ministry of Agriculture and Forestry.(4) Ascertainment of violations, as well as issuance, appeal and execution of penal decrees shall be effected under the terms and procedures prescribed in the Administrative Violations and Sanctions Act. ADDITIONAL PROVISIONS(New, SG No. 79/1996) 1. (Repealed, SG No. 13/2007). 2. (Repealed, SG No. 98/1997). 2a. (Repealed, SG No. 98/1997). 2b. (New, SG No. 13/2007) "Small size estates" in the meaning of Article 24a, paragraph 3 shall be estates with surface up to 10 decares.TRANSITIONAL AND CONCLUDING PROVISIONS 3. (New, SG No. 28/1992)(1) Disputes on the use of land of the State and Municipal Land Reserves, or on boundaries between the settlement territories, shall be settled according to the general legal procedure.(2) (New, SG No. 45/1995) Until the dispute over boundaries between settlement territories is resolved land reallocation shall be made on the basis of the settlement territory confines established by the Integrated Cadastre of the Republic of Bulgaria Act.(3) (New, SG No. 45/1995) In the event that settlement territory confines are amended by a court decision that has entered into force, the agricultural land reduction made by the Municipal Agriculture and Forestry Service under Article 15, paragraph 2 in the respective settlement territory shall remain into force.(4) (New, SG No. 45/1995) Court rulings on amending confines of settlement territories for which land reallocation plans have already come into effect, shall not be reflected in the restituted rights of proprietors. 4. (1) (Amended, SG Nos. 28/1992, 45/1995, Judgment No. 8 of the Constitutional Court of the Republic of Bulgaria - SG No. 59/30. 06. 1995; amended, SG No. 98/1997) Usufruct of agricultural land granted to individuals under any acts issued by the once Presidium of the National Assembly, State Council and the Council of Ministers, shall be hereby discontinued.(2) (New, SG No. 68/1999) Populated areas shall be created under the provisions of Chapter III, Section II of the Territorial Administration of the Republic of Bulgaria Act on the lands under paragraph 1, where at least two thirds of the property situated on them, have been built up.(3) (New, SG No. 68/1999, 99/2002) Lands under paragraph 2 situated in the immediate vicinity of the confines of urbanized territories, may be incorporated into them.(4) (New, SG No. 68/1999, 106/2000) The mayors of municipalities shall propose to the municipal councils not later than 1 March 2001 belt line ranges of lands under paragraphs 2 and 3.(5) (New, SG No. 68/1999, 99/2002) No fees as per Article 30 of the Agricultural Land Conservation Act shall be charged for incorporation of lands under paragraphs 2 and 3 into the confines of urbanized territories. 4a. (New, SG Nos. 28/1992, amended, SG No. 105/1992, 83/1993, 80/1994, 45/1995, Judgment No. 8 of the Constitutional Court of the Republic of Bulgaria - SG No. 59/30.06.1995, amended, SG No. 98/1997)(1) Individuals, enjoying usufruct of land under 4, shall, in the event of strict adherence to all requirements of any state authorities' acts stated in such usufruct, acquire title to the usufructed land provided they had erected a building thereupon by March 1, 1991, and provided also they pay for such land to its owner via the municipality at prices set by the Council of Ministers pursuant to Article 36, paragraph 2, within three (3) months of the entry of such appraisal into force.(2) Where a building's total floorage exceeds thirty-five (35) square metres, or is more than a single storey high, an individual coming into possession under this Act shall also pay in favour of the state a graduated fee in accordance with the building's floorage, and in such an amount as prescribed by the Council of Ministers. Such fee shall not be paid provided that as of January 1, 1992 the erected building served as the only residence of its owner's family, comprising of the spouses and their under aged children.(3) In the event that the land-owner is not paid the value of his land under the terms and procedure set forth in paragraph 1 above, he shall acquire a good title to the building erected thereon, provided he pays for it to the land-usufructuary who erected the building, or to his inheritors, respectively, at prices set by the Council of Ministers.(4) (Amended, SG No. 99/2002) In the event that neither the value of the land, nor that of the building have been paid, both the building and the regulated landed estate determined within a plant of newly-formed estates under par. 4k attached to it shall be offered for public sale following the terms and procedures laid down in the Code of Civil Procedure. (5) Where an usufructuary, by virtue of any of the acts specified in 4, has been granted usufruct of municipal or state owned land the title whereto is not restorable to citizens, such usufructuary shall acquire ownership provided he pays via the municipality the value of the land at prices set by the Council of Ministers under the terms of paragraph 1, pursuant to Article 36, paragraph 2, within three (3) months of the entry of the appraisal into force.(6) In order to attain the hold of title in adherence to the requirements presented in 4a, 4b, 4e and 4h hereof, usufructuaries shall be required to make a statement of their intention to the respective municipality up to January 31, 1998. 4b. (New, SG Nos. 28/1992, amended, SG No. 105/1992, 83/1993. 80/1994, 45/1995, Judgment No. 8 of the Constitutional Court of the Republic of Bulgaria - SG No. 59/30.06.1995, amended, SG No. 98/1997)(1) (Amended, SG No. 123/1997) Individuals shall be reinstated in ownership of agricultural lands clear of erections and granted in usufruct under the acts stated in 4. Where such lands are planted with vineyards or orchards, or where a plot of agricultural land is the only one held by an usufructuary's family residing permanently in the same settlement in whose territory the estate in issue is located, such usufructuary shall acquire title to the land, provided he pays for it to its owner via the municipality at prices set by the Council of Ministers pursuant to Article 36, paragraph 2, within three (3) months of the entry of such appraisal into force. No usufructuary shall be allowed to acquire title to any land lying at less that thirty (30) kilometres away from cities with a population exceeding three hundred thousand (300,000) inhabitants, irrespective of the municipality which it is situated in, or falling within 10 kilometres from the littoral strip.(2) Where an usufructuary acquires title to land pursuant to paragraph 1 above, or to 4a, instead of paying for the land he may offer to the land-owner to exchange it for a plot of land of his own, provided the land- owner is willing to accept the offer. 4c. (Amended, SG No. 98/1997) Persons who have effected ameliorations on landed estates subject to restitution shall enjoy the rights stipulated for in Article 72 of the Ownership Act. 4d. (Amended, SG No. 98/1997) Any land estate held and usufructed by any person without good legal grounds shall be subject to seizure. A seizure shall be effected following the procedure laid down in Article 34. 4e. (Amended, SG No. 98/1997) Individuals enjoying usufruct of two or more landed estates shall have the right to acquire title, under the terms of 4a and 4b, to one of them alone by exercising their own choice and making a statement to the respective municipality within the time limit specified in 4a, paragraph 6. 4f. (Amended, SG No. 98/1997, repealed, SG No. 68/1999) 4g. (New, SG No. 28/1992, amended, SG No. 45/1995, Judgment No. 8 of the Constitutional Court of the Republic of Bulgaria - SG No. 59/30 06.1995; amended, SG No. 98/1997) Funds under 4a, 4b and 4h shall be raised in an extra-budgetary account with the municipalities and shall, along with the interest accrued, be used to indemnify former land-owners and usufructuaries. The amounts shall be paid within one month of their being deposited, under terms and procedures defined in the Rules on the implementation of this Act. 4h. (New, SG No. 98/1997)(1) Individuals whose usufruct of a property is transformed into a good title thereto pursuant to д 4a, paragraph 1, shall acquire title to plots of land up to six hundred (600) sq. m., and those under 4a, paragraph 1 to plots of land up to one thousand (1,000) sq. m.(2) (Amended, SG No. 68/1999) The differential between six hundred (600) sq. m. and one thousand (1,000) sq. m. and the actually usufructed plot of land shall be restituted to the land owners for the purpose of setting up new pieces of property with proportions of no less than two hundred and fifty (250) sq. m. under terms and procedures prescribed in the Rules on the implementation of this Act. Plots of land which cannot be used to establish a new piece of real estate shall be paid for by the usufructuaries to the proprietors at market prices, within three months of entry into force of the valuation. 4i. (New, SG No. 98/1997)(1) Land-owners or their inheritors shall have the right to file a claim for restitution of title to the land where it was granted in usufruct under 4 and the subsequent, or has been transferred not by its owner, if the granting of such usufruct or the acquisition of the property has been effected in violation of any statutory and regulative instruments, as well as through a misuse of high official or communist party standing, or through an abuse of power.(2) The rights under paragraph 1 shall be also enjoyed by the land- owners or their inheritors in any instances specified in Article 10, paragraph 7.(3) In the event that a building has been erected on a plot of land in the instances under paragraphs 1 and 2, or some other ameliorations have been carried out, the relations between the land-owner and the usufructuary shall be settled in correspondence with Articles 73 and 74 of the Ownership Act. 4k. (New, SG No. 98/1997, amended, SG No. 68/1999)(1) (Amended, SG No. 99/2002) A support plan and a plan of newly formed estates shall be designed for the lands granted in usufruct to individuals on the basis of the enactments specified in 4.(2) (Amended, SG No. 99/2002) The support plant under paragraph 1 shall contain information both on the landed property granted in usufruct, and on the landed property which existed before the establishment of labour co- operative farms and state-owned farms.(3) For the purpose of ascertaining the boundaries of landed property existing prior to the establishment of the labour co operative farms and state-owned farms, all information sources may be used: aerial photographs, photo diagrams, photo plans, cadastral plans, reallocation plans and other graphic materials and data. Where information from these sources on the boundaries of landed property is lacking, data shall be collected through inquiries, under terms and procedures provided for in the Rules on the implementation of this Act.(4) (Amended, SG No. 99/2002) The contents of plans under Paragraph 1 and the terms and procedures for their design, adoption, and notification to the interested shall be stipulated in the Rules for Implementation of this Act.(5) (Amended, SG No. 99/2002) Plans under Paragraph 1 shall be developed by individuals who have acquired competency under the Cadastre and Property Register Act. (6) (Amended, SG No. 99/2002, No. 30/2006, effective 1.03.2007) The plan of newly-formed estates shall be approved by the district governor. The ruling thereon shall be published in the State Gazette and announced in the media, including two national dailies, and posted at suitable locations of public access inside municipal HQ and Mayoralty buildings. Complaints against the approved plan of newly-formed estates may be filed with the administrative court within 14 days of the publication of said ruling in the State Gazette.(7) Restitution, or acquisition, respectively, of ownership right on newly-formed landed property shall be executed by ruling of the mayor of the municipality, which shall be notified under the provisions of the Code of Civil Procedure. The ruling shall set forth the location, confines, neighbours, as well as any limitations on the property and the reasons for such limitations. A plan of the property shall be annexed to the ruling.(8) A plan of newly-formed estates which has already entered into force may be changed:1. (amended, SG No. 99/2002) when the support plan on the basis of which it has been worked out, contains significant inadequacies or errors; where a material right is contested, the parties concerned shall assert their rights through the court;2. when the plan contains an obvious factual error;3. when the plan has been worked out in gross violation of the law, unless a court ruling has entered into force, or the plan has been annexed;4. upon request of the court in relation to lawsuits for partition of property;5. with the consent of all owners directly concerned.(9) (Amended, SG No. 99/2002) Financing of the plans under paragraph 1 shall be done from the State budget, according to an yearly programme formulated by the district governor in conjunction with the mayor of the municipality.(10) (Amended, SG No. 99/2002) In respect of the plots of land under 4, the district governor shall order that a support plan and a plan of newly-formed estates as of 30 September the previous year, be designed.(11) (New, SG No. 99/2002) Where the Ruling for approval of plans of newly-formed estates under Paragraph 6 enters into force, once the cadastral map and registers for the respective territory have been approved and the introduction of an estate register has been announced, newly-formed estates shall be made part of the cadastre, and the Ruling under Paragraph 7 shall be entered in the estate register following the terms and conditions of the Cadastre and Property Register Act. 4l. (New, SG No. 98/1997, amended, SG No. 68/1999) Valuations of land, buildings and ameliorations under 4a, 4b, 4c and 4h shall be carried out by ruling of the mayor of the respective municipality, or of an official duly authorised by the mayor, within three months of entry into force of the plan of newly-formed estates, under terms and procedures set forth in the Rules on the implementation of this Act. 5. Leases shall be honoured where land under lease is to remain as possession of or in use by the lessor. Should the opposite be the case, the lease shall be terminated as the rightful proprietor comes into possession, but in no case earlier than the crop has been gathered. 6. (Repealed, SG No. 99/2002). 7. (1) (Repealed, SG No. 57/1995).(2) Annuity receipts from agricultural land shall be deducted from the sum dutiable to income tax.(3) Natural persons shall be exempt from tax on buildings erected on agricultural land for a period of five years from the date of their entering into possession.(4) Young families shall be exempt from income tax on farming receipts from vegetable and animal products for a period of eight years since the entering in force of this Act. 8. (New, SG No. 28/1992) The inheritors of persons reinstated in ownership of agricultural land under this Act shall be exempt from inheritance tax. 9. (New, SG No. 28/1992) Farm land subject to reinstated ownership under Article 10 of this Act and considered as forests in the sense of the Forestry Act, shall be subject to the provisions of the Forestry Act and the Hunting Estates Act. 10. (New, SG No. 28/1992, amended, SG Nos. 45/1995, 79/1996) Agricultural lands the ownership wherein has been reinstated under the provisions of this Act, and which are construed as forests in the accepted meaning of the Forestry Act may, at their proprietors' request, be commuted for other agricultural land from the landed reserve of the respective settlement or within the territory of an adjacent settlement, and by the proprietors' consent - within a different territory just as well. 11. (New, SG No. 28/1992, amended, SG No. 45/1995)(1) All transactions concluded in violation of the Decision of the National Assembly on Temporary Halting of Disposal with Property (SG No. 1/1992) shall be null and void.(2) All auctions of property of organisations under 12, held in violation of the terms and procedures specified for them, as well as any deals made on the basis of such auctions shall be null and void. Such property shall be confiscated under Article 16 of the Ownership Act by ruling of the district governor.(3) Subject to annulment shall be deals with property of organisations under 12 made by liquidation councils at obviously unfavourable terms. Annulment claims may be filed within one year of the entry into force of this Act by any of the persons under Article 27, paragraph 1 or on their behalf by a co operative or company of which they are members of shareholders. 12. (New, SG No. 28/1992) Terminates all existing TKZS and farm co operatives established under 7 of the Transitional and Concluding Provisions of the Co-operatives Act. Terminates all existing organisations and companies registered under Decree No. 922 on Land Use and Farming (promulg. SG, No. 39/1989, amend. No. 10/1990, repeal. No. 63/1991) and Decree No. 56 on Economic Activity with property and share in equity of farming teams, farm co-operatives, TKZS, tractor depot, APK and agricultural institutes. Terminates the existence of co-operatives registered under the Co-operatives Act, when the provisions under Article 33, paragraph (3) of that Act have not been observed and contribution of agricultural land has been envisaged in their By laws. 13. (New, SG No. 28/1992, amended, SG Nos. 48/1993).(1) The liquidation of the organisations under 12 shall be carried out by Liquidation Councils, composed of a chairman and up to two members.(2) (Amended, SG No. 87/1997) The members of the Liquidation Councils shall be dismissed and appointed by the Minister of Agriculture and Forestry upon a proposal by the regional agricultural offices in consultation with the respective mayors of communities. The Minister of Agriculture and Forestry shall also make changes or shall fill in vacancies in the respective Liquidation Council on his own initiative through a procedure to be determined by the Council of Ministers.(3) The Liquidation Councils shall terminate their activities with the deletion of the organisations under 12 from the register of the respective district court.(4) (Amended, SG 87/1997) The regional agricultural offices shall, in consultation with the respective mayors of communities, forward to the Minister of Agriculture and Forestry within one month of the entry into force of this Act a reasoned proposal on changes or filling in of vacancies in the respective Liquidation Councils.(5) The Liquidation Council shall:1. organise and manage the activities of the organisation under 12 until its deletion from the register of the respective district court and shall have the rights and obligations of the Managing Board, while the Chairman of the Liquidation Council shall execute the rights and obligations of the organisation's head;2. determine the shares under Article 27, paragraph (1) and grant ownership or co-ownership of property based on such shares;3. distribute the in-kind property among the persons possessing the right to a share in accordance with the shares owned by them;4. undertake other actions pertaining to liquidation under the Rules on the implementation of this Act.(6) The Liquidation Councils shall file with the respective district courts applications for deletion of the organisations under 12 immediately after the ending of the liquidation activities.(7) (Amended, SG No. 45/1995) The Minister of Agriculture and Forestry shall carry out the guidance and supervision of the activities of the Liquidation Councils. The Minister of Agriculture and Forestry, or a person duly authorised by the Minister, may revoke acts of the liquidation councils, including after termination of the latter within one year of the entry into force of this Act. He shall determine the final deadline for their work in accordance with the liquidation activities performed.(8) (Amended, SG No. 45/1995) The members of the Liquidation Councils shall be liable jointly and severally for the damages they have caused to the organisations under 12 and to the persons possessing a share in the property. Persons eligible to receive shares may empower co-operatives or companies of which they are members to file claims under this paragraph on their behalf. Such claims shall be exempt of state fees.(9) (Amended, SG. No. 45/1995) Within one (1) year of the entry into force of this Act the Ministry of Finance shall organise and carry out financial control of the organisations under 12 of the Transitional and Concluding Provisions, including after such organisations are terminated. The funds necessary for exercising financial control shall be allocated from the State budget. The audit statements and penal statements shall also be sent to the Ministry of Agriculture and Forestry. Within the legal process in respect to claims under paragraph 8 the factual findings in audit statements shall be considered true until proved false. 14. (New, SG No. 28/1992, amended, SG No. 48/1993)(1) The obligations of the organisations under 12 to the banks with state participation, as existent by December 31, 1992, shall be converted to state debt under terms and procedures to be determined by the Council of Ministers.(2) The State shall assume the rights of the organisations under 12 for all their claims towards third parties natural or legal persons which have arisen by December 31, 1992.(3) Movable and immovable property of liquidated labour co operative farms necessary for their activities may not be subject to execution. 15. (New, SG No. 28/1992, repealed, SG No. 88/1998). 16. (Amended, SG Nos. 79/1996, 104/1996, 98/1997).(1) (Amended, SG No. 104/1996, 98/1997) Court proceedings under this Act shall be free with the exception of the ones under Article 14, paragraph 4.(2) (New, SG No. 98/1997) Conduct of technical activities relating to the execution of court rulings whereby the right to reinstatement in agricultural land under Article 11, paragraph 2 has been adjudged, shall be paid for by the land-owners.(3) (Former paragraph 2, renumbered and amended, SG Nos. 98/1997, 68/1999) Revenues from activities related to the keeping and updating of land reallocation plans shall be paid into the budget of the Ministry of Agriculture and Forestry. 17. Financing required for the enforcement of this Act shall be provided from the State budget, as requested by the Council of Ministers. 18. (New, SG No. 48/1993, repealed, SG No. 99/2002). 19. This Act is hereby assigned for enforcement to the Council of Ministers which shall issue Rules on the implementation thereof.This Act was submitted to a vote and duly adopted by the Grand National Assembly on March 20, 1992 and the State Seal was affixed hereto.AMENDMENT ACT TO THE OWNERSHIP AND USE OF AGRICULTURAL LAND ACTPromulgated State Gazette No. 28/20.03.1992TRANSITIONAL AND CONCLUDING PROVISIONS 40. The sentence "No charges shall be payable for court proceedings pursuant to this Act" shall be added to the end of Article 7 of the Property Reinstatement of Nationalised Immovables Act. 41. Within one (1) month of the date of entry of this Act into force, the Council of Ministers shall revoke land expropriations for State purposes, when expropriated land has not been used for such purposes or they have dropped off.AMENDMENT ACT TO THE OWNERSHIP AND USE OF AGRICULTURAL LAND ACTPromulgated State Gazette No. 45/16.05.1995Judgment No. 8 of the Constitutional Court of the Republic of Bulgaria -SG No. 59/1995, amended SG Nos. 79/1996, Judgment No. 3 of theConstitutional Court of the Republic of Bulgaria - SG No. 15/1995amended, SG No. 98 ?TRANSITIONAL AND CONCLUDING PROVISIONS 28. (1) (Third sentence - Declared unconstitutional by Constitutional Court of the Republic of Bulgaria - SG No. 59/1995, amended, SG No. 79/1996, Fifth sentence - Declared unconstitutional by Constitutional Court of the Republic of Bulgaria - SG No. 15/1997) With the entry into force of this Act liquidation councils shall be terminated and the organisations under 12 of the Transitional and Concluding Provisions of the Ownership and Use of Agricultural land Act shall be deleted from the registers of district courts. The members of liquidation councils shall not receive compensation under Article 220, 222 and 224 of the Labour Code. Disputes arising out of dismissals of members of liquidation councils shall not be examined by the courts. Pending cases and pending execution proceedings where to organisations under 12 of the Ownership and Use of Agricultural land Act are defendants or debtors shall be discontinued, while those to which they are plaintiffs or claimants may be continued by the persons under 29, paragraph 1.(2) (Amended, SG No. 79/1996) Property of organisations under 12 of the Transitional and Concluding Provisions of the Ownership and Use of Agricultural land Act shall be the joint property of persons under Article 27, paragraph 1, commensurate with their rights, with the exception of perennials following the restitution of ownership over the land whereupon they have been planted. The shares of persons who are not to receive perennials shall be equalised by supplement of other property in compensation. The General Meeting of persons under Article 27, paragraph 1 shall be empowered to adopt changes to the assessment of property of organisations under 12 of the same Act. Each person under Article 27, paragraph 1 shall enjoy the rights under Article 28 commensurate with his share in the property of an organisation under 12. A person may delegate such rights as well as authorise a co-operative or a company of which he is a member or a shareholder to exercise such rights at his expense and account, inclusive of the right to file claims in connection therewith.(3) (Amended, SG No. 79/1996) Persons who have effected ameliorations of real estates belonging to organisations under 12 of the Transitional and Concluding Provisions of the Ownership and Use of Agricultural land Act, shall have the right to request that the owner repays to them the cost of such ameliorations under the provisos of Articles 72 and 74 of the Property Act or Article 59 of the Obligations and Contracts Act. (4) The documents of the organisations under 12 of the Transitional and Concluding Provisions shall be handed over as per document lists to the mayors of the municipalities where such organisations have their principal offices and shall be kept by them. Mayors shall provide information to interested parties on the grounds of such documents. They shall present all documents of organisations under 12 to the persons under 29, paragraph 1 upon their request.(5) Banks, other legal persons and sole traders may deduct from their taxable profits any amounts due to them by organisations under 12 of the Transitional and Concluding Provisions for three years after the deletion of such organisations from the registers.(6) (New, SG No. 79/1996) No Value Added Tax shall be due for mechanised farming services provided but not paid for, and for seeds, fertilisers and preparations (chemicals) sold to organisations deleted from court registers under paragraph 1 hereinabove. The liabilities of such organisations to the State and municipal budget shall be written off as uncollectable. 29. (1) (Amended, SG Nos. 79/1996, 98/1997) The General Meeting of persons under Article 27, paragraph 1 may appoint physical or legal persons to distribute the property of the organisations under 12 of the Transitional and Concluding Provisions, including their moneys in banks. They shall provide information on the state property to the government authorities. Where a person or a group of persons under Article 27, paragraph 1 are not willing to receive a certain chattel of property belonging to an organisation under 12 of the Transitional and Concluding Provisions of the Ownership and Use of Agricultural land Act, the General Meeting of the persons under Article 27, paragraph 1 may authorise in writing persons to have such chattel sold. Sale of motor vehicles and immovable property (real estate) shall be made by an agreement in writing and shall require a notary certification of the parties' hands. The price fetched shall be allotted to the persons under Article 27, paragraph 1 commensurate with their rights. Prescription time for acquisition of shares under Article 27, paragraph 1 shall be five (5) years effective as of the date of termination of an organisation under 12. Following the expiry of such term all remaining property shall be apportioned to all remaining persons under Article 27, paragraph 1 commensurate with their rights.(2) (Amended, SG No. 79/1996) Persons under paragraph 1 may receive from debtors to organisations under 12 of the Transitional and Concluding Provisions of the Ownership and Use of Agricultural land Act in exchange of their debt shares or stakes in their capital, or chattels which they shall apportion to the persons under Article 27, paragraph 1.(3) (New, SG No. 79/1996) Persons under paragraph 1 shall have the right to transfer to persons under Article 27, paragraph 1, and by their consent to other persons as well, collections of organisations deleted under 12 of the Transitional and Concluding Provisions of the Ownership and Use of Agricultural land Act, inclusive of their rights under Article 28 of the same Act. Such transfer shall be effected in exchange of their share in the property of the deleted organisations by way of an agreement in writing.(4) A General Meeting shall be held in the settlement where an organisation under 12 of the Transitional and Concluding Provisions used to have its principal office. The General Meeting shall be called by at least 50 persons eligible to receive shares, or by the mayor of the settlement where the organisation under 12 of the Transitional and Concluding Provisions had its principal office, by announcement published in the local or national media. In the event that more than half of the persons eligible to attend the meeting should fail to appear on the announced date and time, the General Meeting shall be postponed for the next day and may sit on that day with the same agenda and adopt decisions irrespective of the number of persons attending it. Decisions shall be adopted by open ballot and simple majority of those in attendance. Each person shall have the right to one vote. Heirs of a person eligible to receive shares shall have the right to one vote in the General Meeting and shall be counted as one when the quorum is established. The minutes of the meeting shall be certified by the mayor of the settlement.(5) Whenever many persons are eligible to attend a General Meeting or the operation of the organisation under 12 has covered several settlements, a meeting of authorised representatives may be called which shall be governed by the preceding paragraphs. The number of authorised representatives may not be smaller than 100. The number of persons represented by one representative shall be determined by the mayor of the settlement where the organisation under 12 had its principal office, or by the General Meeting.(6) (New, SG No. 79/1996) The persons under paragraph 1 shall be jointly liable materially for damages they have inflicted to persons entitled to a share of the property of organisations under 12 of the Transitional and Concluding Provisions of the Ownership and Use of Agricultural land Act, inclusive of the damages inflicted to the state property husbanded by them.(7) (New, SG No. 79/1996) The persons under paragraph 1 shall report to the General Meeting on the husbandry and manage, and allocation of property. The General Meeting shall adopt the statement on the closure of their activities and may decide that a financial audit be carried out, where the expenditures for such audit shall be borne by the persons under Article 27, paragraph 1.(8) (New, SG No. 98/1997, amended, SG No. 124/1997) The General Meeting of the persons under Article 27, paragraph 1 shall set a time limit for the appointed persons to allocate the property of the organisations whose existence has been terminated under 12 of the Transitional and Concluding Provisions, which shall be not later than 31 December 1997. Such term shall not apply to property and chattels where over litigation is pending in court. The authorised representatives shall represent the General Meeting in court until pending lawsuits are finally decided or settled, where after they shall allocate such property within two (2) months.(9) (New, SG No. 98/1997) Null and void shall be announced such auctions and decisions about distribution of the property of the organisations whose existence has been terminated under 12 of the Transitional and Concluding Provisions made by the persons appointed or authorised under paragraph 1, which are in violation of the terms and procedures for holding such auctions provided for in the Act, the Rules on its implementation and the resolutions of the General Meeting of rightful claimants. Null and void shall also be announced the transactions based on these auctions and decisions. Such property shall be confiscated under the provisions of Article 80 of the State Property Act by ruling of the district governor. 30. (1) The rulings of Municipal Agriculture and Forestry Services on restitution of ownership issued prior to the entry into force of this Act shall remain in force on the terms described in Article 14.(2) (Repealed, SG No. 79/1996)(3) The transactions announced null and void under the former '11 of the Transitional and Concluding Provisions, shall be valid if the parties to such transactions have not returned items they have received under those transactions prior to the entry into force of this Act.(4) Land reallocation plans which have not come into effect on the day of entry into force of this Act shall be prepared under the requirements of this Act. 31. Everywhere in the Act "Ministry of Agriculture" and "Minister ofAgriculture" shall be replaced with "Ministry of Agriculture and Food Industry" and "Minister of Agriculture and Food Industry", respectively. 32. The persons under Article 10c, paragraph 2 shall specify in express petitions their choice of manner of compensation within one year of entry into force of this Act. 33. All cases under Article 11, paragraph 1 pending at the time of the entry into force of this Act, shall be examined in the manner applicable prior to the adoption of this Act. 34. For rulings of Municipal Agriculture and Forestry Services, the terms under Article 14, paragraph 7 shall commence as of the entry into force of this Act. 35. In 6, paragraph 4 of the Transitional and Concluding Provisions of the Transformation and Privatisation of State and Municipal Enterprises Act, "within four months following the entry into force of this Act" shall be replaced with "until December 31, 1996".AMENDMENT ACT TO THE OWNERSHIP AND USE OF AGRICULTURAL LAND ACTPromulgated State Gazette No. 79/17.09.1996, amended SG No. 98/1997TRANSITIONAL AND CONCLUDING PROVISIONS 24. Such projects of land reallocation plans whereof no announcement of their elaboration has been promulgated in the official State Gazette as of the date of entry of this Act into force, shall be drawn up pursuant to the requirements thereof. 25. In respect of land reallocation plans that have entered into force, the time limit under Article 17, paragraph 8 of the Ownership and Use of Agricultural land Act shall be effective as of the entry into force of this Act. 26. (Repealed, SG No. 98/1997). 27. Persons under Article 10b, paragraphs 1, 2 and 3, Article 10c, Article 15 paragraph 2 of the Ownership and Use of Agricultural land Act shall, within one (1) year following the entry into force of this Act, specify in additional applications the mode of indemnification.AN AMENDMENT ENACTMENT TO THE OWNERSHIP AND USE OF AGRICULTURALLAND ACTPromulgated State Gazette No. 62/05.08.1997TRANSITIONAL PROVISION 2. Pendent court proceedings instituted under appeals to the Supreme Court of Administrative Appeal for judicial re-examination of regional courts' rulings under Article 14, paragraph 3 hereof, shall be terminated and send to the respective District Courts in accordance with the jurisdiction thereof.AMENDMENT ACT TO THE OWNERSHIP AND USE OF AGRICULTURAL LAND ACTPromulgated State Gazette No. 98/28.10.1997Amended SG No. 36 ?106/2000TRANSITIONAL AND CONCLUDING PROVISIONS 30. (Amended, SG No. 36/1998, 68/1999) Persons under Article 10c, paragraph 1, items 2 and 3 and paragraphs 2 and 4 may file applications with the Ministry of Agriculture and Forestry following the entry into force of this Act, by 31 October, 1999. 31. Persons who have failed, within the time limit under Article 14, paragraph 3, to appeal against land reallocation plans and rulings of the Municipal Agriculture and Forestry Service under Article 14, paragraph 1, items 1 and 2, which have already become effective, may make an appeal within one month of the entry into force of this Act. 32. Where the time periods under article 14, paragraph 7 have expired, the Municipal Agriculture and Forestry Service shall rule amendment to its ruling already made, within one month of the entry into force of this Act. 33. (Repealed SG No. 106/2000). 34. Persons concerned are entitled, within three months of the entry into force of this Act to request that the Municipal Agriculture and Forestry Service rescind its rulings which disallowed them reinstatement of ownership over agricultural land, on the grounds of the repealed, amended respectively, provisions of this Act. 35. A claim under 4 shall be made within one year of the entry into force of this Act, and legal proceedings shall be exempt of stamp duty. 36. Usufructuaries who have filed applications for valuation to the municipal councils having jurisdiction over the property prior to 30 September 1995 under 4a and 4b, shall retain their rights to have such valuation made by virtue of this Act. 37. The Minister of Agriculture and Forestry shall announce in the official State Gazette the territories in which proceedings shall be suspended on the reinstatement in ownership of lands which are under the jurisdiction both of the Union Republic of Yugoslavia and the Republic of Macedonia until this issue has been resolved on governmental level with the Union Republic of Yugoslavia and the Republic of Macedonia. 38. The decree under Article 37 shall be drafted jointly by the Minister of Agriculture and Forestry and the Minister of Finance and shall be adopted by the Council of Ministers by 31 December 1997. 39. Projects of land reallocation plans for which no announcement has been made in the official State Gazette as of the date of entry into force of this Act, shall be made in accordance with its requirements.AMENDMENT ACT TO THE OWNERSHIP AND USE OF AGRICULTURAL LAND ACTPromulgated State Gazette No. 88/31.07.1998ADDITIONAL PROVISIONS 11. (1) In cities with regional partitioning, mayoral competencies relevant to enforcement of the Act and the enforcement rules thereof may also be exercised by officials empowered by the Mayor.(2) The functions of the municipal technical service, entrusted with the enforcement of the law and the enforcement rules thereof, may be assigned to the regional technical services, pursuant of a Municipal Council resolution.TRANSITIONAL AND CONCLUDING PROVISIONS 12. (1) When the disposition of the property of organisations under 12 of the Transitional and Concluding Provisions has not been completed, the Regional Governor shall convene a General Meeting of the persons envisioned in Article 27, paragraph 1 within two months of the enactment of the current Act.(2) The General Meeting shall be announced by means of a notice in the local and national media and it shall be displayed in a visible location in the Town Hall of the respective settlement.(3) If on the date and hour set for the General Meeting of the persons under Article 27, paragraph 1, the persons holding altogether over 50 per cent of the shares fail to appear, the General Meeting shall be postponed by an hour and may adopt decisions in the presence of persons holding no less than 30 per cent of the shares. Decisions shall be adopted by open vote and on an ordinary majority of represented shares. Each person shall be entitled to a number of votes proportionate to participation expressed as a percentage rate of shares held compared to the total property of the organisation under 12 of the Transitional and Concluding Provisions. The heirs of a person entitled to shares shall be eligible to as many votes as their Grantor held shares. The General Meeting shall be attended by the Regional Governor or an official empowered by him. In the event that a General Meeting is unfeasible, a new General Meeting shall be convened within one month, under the conditions of paragraph 1.(4) At the General Meeting, the persons under 29, paragraph 1 of the Transitional and Concluding Provisions of the Amendment Act to the Ownership and Use of Agricultural land Act (Promulgated SG, No. 45/1995, amended Nos. 46/1995, 59/1995 Resolution No. 8 of the Constitutional Court of 1995, 79/1996, 15/1997 - Resolution No. 3 of the Constitutional Court of 1997, 98/1997) shall report on performance.(5) The convened General Meeting may extend the operation of the persons under 29, paragraph 1 of the Transitional and Concluding Provisions of the Amendment Act to the Ownership and Use of Agricultural land Act (Promulgated SG, No 45/1995, amended Nos 46/1995, 59/1995 - Resolution No 8 of the Constitutional Court of 1995, 79/1996, 15/1997 - Resolution No 3 of the Constitutional Court of 1997, 98/1997) or it may designate new persons, through elections, assigning them the competencies under 29, paragraph 1 for a period not exceeding 6 months of the date of the Meeting, and similarly representation in pending lawsuits pursuant of 29, paragraph 8 of the Transitional and Concluding Provisions of the Amendment Act to the Ownership and Use of Agricultural land Act (Promulgated SG, No 45/1995, amended Nos. 46/1995, 59/1995 - Resolution No. 8 of the Constitutional Court of 1995, 79/1996, 15/1997 - Resolution No. 3 of the Constitutional Court of 1997, 98/1997).(6) The Regional Governor or the official empowered by him shall monitor the legitimacy of the Meeting; by verifying the minutes of the latter and by monitoring compliance with the deadline on the final disposition of property.(7) Persons under paragraph 5 shall be subject to joint liability.LEV RE-DENOMINATION ACT Promulgated, SG No. 20/5.03.1999, amended, SG No. 65/20.07.1999(effective 5.07.1999)TRANSITIONAL AND FINAL PROVISIONS....................................................................... 4. (1) (Amended, SG No. 65/1999) Upon the entry of this Act into force, all figures expressed in old lev terms as indicated in the laws which will have entered into force prior to the 5th day of July 1999 shall be replaced by figures expressed in new lev terms, reduced by a factor of 1,000. The replacement of all figures expressed in old lev terms, reduced by a factor of 1,000, shall furthermore apply to all laws passed prior to the 5th day of July 1999 which have entered or will enter into force after the 5th day of July 1999.(2) The authorities, which have adopted or issued any acts of subordinate legislation which will have entered into force prior to the 5th day of July 1999 and which contain figures expressed in lev terms, shall amend the said acts to bring them in conformity with this Act so that the amendments apply as from the date of entry of this Act into force........................................................................ 5. This Act shall enter into force on the 5th day of July 1999.AMENDMENT ACT TO THE OWNERSHIP AND USE OF AGRICULTURAL LAND ACTPromulgated State Gazette No. 68/30.07.1999, effective 30.07.1999TRANSITIONAL AND CONCLUDING PROVISIONS 21. Notarial title deeds based on rulings of the Municipal Agriculture and Forestry Services, which have entered into force, shall be issued under the current procedure, in case applications for the issuance of such rulings have been filed with the respective Municipal Agriculture and Forestry Service, or draft notarial title deeds have been submitted to the notaries, prior to this Act's entry into force. 22. In relation to proposals by a Municipal Agriculture and Forestry Service, for which the municipal council has made no ruling, the one-month period under Article 10b, paragraph 1 shall be considered to start from the date of this Act's entry into force. 23. The provisions of Article 14, paragraph 1, subparagraph 1, sentence four, and of Article 17, paragraph 1, sentence six, shall also apply to rulings of Municipal Agriculture and Forestry Services which have already entered into force, with plans annexed thereto, on the basis of which no notarial title deeds have been issued prior to this Act's entry into force, except in the cases under 21. 24. Pendent administrative penal proceedings shall be completed by the bodies, and under the terms and procedures, provided for in this Act. 25. (1) Contracts for designing the plans under 4k, paragraph 1, concluded prior to this Act's entry into force, shall be completed by the party which contracted with the supplier.(2) Plans of newly-formed landed property the designing of which was contracted prior to this Act's entry into force, shall be made under the provisions stipulated therein.AMENDMENT ACT TO THE OWNERSHIP AND USE OF AGRICULTURAL LAND ACTPromulgated State Gazette No. 106/22.12.2000TRANSITIONAL AND CONCLUDING PROVISIONS 6. Within three months following the entry into force of this Act, the persons under Article 10c, paragraph 2 may file petitions to the Municipal Agriculture and Forestry Services having jurisdiction over the restituted property, and the persons under Article 10c, paragraph 4 may file petitions to the Ministry of Agriculture and Forestry.TRANSITIONAL AND CONCLUDING PROVISIONSto the Act on Transactions with compensatory Instruments(SG No. 47/2002, effective 11.06.2002) 5. Only the persons who made a request prior to the entry into force of this Act shall be authorised to receive a compensation under Article 31, paragraph 3 of the Water Act and under Article 35, paragraph 2 of the Act on Ownership and Use of Agricultural Lands.AMENDMENT ACT TO THE OWNERSHIP AND USE OF AGRICULTURAL LAND ACT(Promulgated State Gazette No. 99/22.10.2002amended, SG No. 38/2004, SG No. 87/2005,effective 26.10.2005)TRANSITIONAL AND CONCLUDING PROVISIONS 30. (1) Interested individuals and entities may, within six months of the entry into force of this act, request the Municipal Agriculture and Forestry Service, to repeal decisions for refusal to restitute property of farmland confiscated by virtue of convictions under the Ordinance-Act on Prosecution by a Popular Court of Those Guilty of Involving Bulgaria in the World War against the Allied Nations and of the Felonies thereto Related.(2) Individuals who have not submitted a statement for restitution of confiscated farmland by virtue of convictions under the Ordinance-Act on Prosecution by a Popular Court of Those Guilty of Involving Bulgaria in the World War against the Allied Nations and of the Felonies thereto Related to the Municipal Agriculture and Forestry Service, shall be entitled to do so within six months of the entry into force of this act. 31. Individuals under Article 10c, Paragraph 1, item 2 and 3 may submit a request to the Ministry of Agriculture and Forestry within six months of the entry into force of this act. 32. (1) Land boards under Chapter Four shall be transformed into Municipal Agriculture and Forestry Services attached to Regional Agriculture and Forestry Directorates as of the date of entry into force of this act.(2) The Municipal Agriculture and Forestry Services shall succeed into operations, possessions, rights, and obligations of land boards. 33. (1) The time limit under Article 5, Paragraph 1 starts running at the date of entry into force of decisions for restitution of property titles of the Municipal Services.(2) The time limit under Article 5, Paragraph 1 with regard to decisions found of land boards for restitution of property titles that have entered into force, starts running from the entry into force of this act. 34. (1) With regard to decisions found the one-year time limit under Article 19a, Paragraph 7 starts running from the entry into force of this act.(2) The list under Article 19a, Paragraph 8 shall be published in the State Gazette within one month of the entry into force of this act. 35. (1) (Amended, SG No. 38/2004, SG No. 87/2005, SG No. 13/2007) Amounts chargeable for use of adjacent and built-up lands under Article 27, Paragraph 6, shall not be payable in cases where entitled individuals submit a request to the Minister of Agriculture and Forestry for acquisition of title of property over them within five years following this Act's entry into force.(2) (Amended, SG No. 38/2004, SG No. 87/2005) Upon expiry of the above four year term land title under Paragraph 1 shall be acquired as under the terms and conditions of the State Property Act. Land use charges shall then be payable.(3) (New, SG No. 13/2007) The Minister of Agriculture and Forestry shall make a proposal to the district governor for issue of acts of state property according to data, submitted by the district directorates "Agriculture and Forestry" within one month from the filing of the request under paragraph 1.(4) (New, SG No. 13/2007) The district governor at the location of the estate shall issue an act of state property for the lands from the former farm yards of the organisations under 12 of the transitional and concluding provisions and under 29 of the transitional and concluding provisions of the Act on Amendment and Supplement to the Act on Ownership and Use of Agricultural Lands (promulgated SG, No. 45/1995; amended No.46/1995, No.59/1995 - Decision No.8/1995 of the Constitutional Court; amended No.79/1996, No.15/1997 - Decision No.3/1997 of the Constitutional Court; amended No.98/1997, No.124/1997), upon which there are buildings and/or facilities from their property without taking into consideration whether these have been legally built, as well as regarding the non-occupied with buildings and facilities or adjacent to them surfaces but unfit for agricultural use and lands which are not subject to restitution, within one month from the filing of the proposal under paragraph 3. 36. Statements under Article 37b, Paragraph 1 shall be filed within six months of the entry into force of this act. Upon a modification in the business structure and the mode of durable intended use of land proprietors shall file a new statement within one month of said occurrence. 37. The words "land board" and "land boards" shall be replaced with "Municipal Agriculture and Forestry Service" and, correspondingly, with "Municipal Agriculture and Forestry Services", everywhere inside this act.TRANSITIONAL AND CONCLUDING PROVISIONSTo the Law for Amendment of the Cadastre and Property Register Act (SG No 36/2004) 62. Within three months' time from the promulgation of this law in the State Gazette, the entries under the name system shall be performed by the registry offices reporting to the Registry Agency.TRANSITIONAL AND CONCLUDING PROVISIONSto the Act on Veterinary Medical Activity (SG No. 87/2005, effective 1.05.2006) 23. Within three months from the entry into force of the Act the Council of Ministers shall submit to the National Assembly a draft law on protection of the animals. 24. Within six months from the entry into force of the Act the Council of Ministers shall submit to the National Assembly a draft law on national guild organisation of the veterinary doctors in practice and the procedure for exercising veterinary medical practice. 25. The secondary legislation acts issued prior to the entry into force of this Act shall be applied as far as they do not run counter to it and until their explicit repeal. 26. (1) The Minister of Agriculture and Forestry shall issue the ordinances on the implementation of this Act within one year of its entry into force.(2) Within six months of the promulgation of this Act in the "State Gazette" the Council of Ministers shall adopt the ordinance under Article 109 and shall approve the tariff under Article14, paragraph 2.TRANSITIONAL AND FINAL PROVISIONSof the Administrative Procedure Code (SG, No. 30/2006, effective 12.07.2006). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117. Everywhere in the Agricultural Land Ownership and Use Act (Promulgated State Gazette No. 17/1991, Corrected, SG No. 20/1991, amended and supplemented, SG No. 74/1991, amended, SG No. 18/1992, amended and supplemented, SG No. 28/1992, amended, SG No. 46/1992, 105/1992, amended and supplemented, SG No. 48/1993, Judgment No. 12/1993 of the Constitutional Court of the Republic of Bulgaria - SG No. 64/1993, amended, SG No. 83/1993, SG No. 80/1994, amended and supplemented, SG No. 45/1995, amended, SG No. 57/1995, Judgment No. 7 and 8/1995 of the Constitutional Court of the Republic of Bulgaria - SG No. 59/1995, amended and supplemented, SG No. 79/1996, Judgment No. 20/1996 of the Constitutional Court of the Republic of Bulgaria - SG No. 103/1996, amended, SG No. 104/1996, Judgment No. 3/1997 of the Constitutional Court of the Republic of Bulgaria - SG No. 15/1997, supplemented, SG No. 62/1997, amended and supplemented, SG No. 87/1997, SG No. 98/1997, SG No. 123/1997, supplemented SG No. 124/1997, amended, SG No. 36/1998, 59/1998, amended and supplemented, SG No. 88/1998, amended, SG No. 133/1998, amended and supplemented, SG No. 68/1999, amended, SG No. 34/2000, amended and supplemented, SG No. 106/2000, amended, SG No. 28/2002, amended and supplemented, SG No. 47/2002, 99/2002, amended, SG No. 16/2003, SG No. 36/2004, SG No. 38/2004, SG No. 87/2005, SG No. 17/2006). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3. the words "the Administrative Procedure Act" shall be replaced by "the Administrative Procedure Code".TRANSITIONAL AND CONCLUDING PROVISIONSto the Act on Amendment and Supplement tothe Act on Ownership and Use of Agricultural Lands(SG No. 13/2007) 22. The claims under Article 11, paragraph 2 shall be submitted within three months of the entry into force of this Act. 23. The term under Article 19, paragraphs 4, 8 and 10 shall run as from the entry into force of this Act. 24. When the coefficient under Article 19a, paragraph 5 is determined towards the day of the entry into force of this Act, the plans for compensation shall be prepared according to the procedure into force until now. 25. (1) For those decisions for compensation which have entered into force, the one year term under Article 19a, paragraph 7 shall run from the entry into force of this Act.(2) The land procedures which have not been terminated shall be finalised according to the procedure into force until now.(3) For those decisions for granting of land which have entered into force, the two year term under Article 23a shall run from the entry into force of this Act. 26. (1) This act shall be implemented also to the status quo agricultural lands which remained after the restitution of the rights of the owners which the municipality runs and manages or which it has acquired after the expiry of the ten year term from the entry into force of the land allocation plan and the approved map of the existing and restorable old actual boundaries.(2) The pending proceedings under Article 35 of the Municipal Property Act shall be finalised pursuant to the procedure into force until now.(3) The lease and rent contracts for the lands under paragraph 1 with a term more than three, respectively four years, shall be deemed concluded without a specific term from the day of the occurrence of one of the following conditions under Article 19, paragraph 4, items 1-3. The contracts shall be terminated under the conditions of 5 of the transitional and concluding provisions. 27. The persons under Article 10c, paragraph 1, item 2 and 3 can submit an application at the Ministry of Agriculture and Forestry within one year from the entry into force of this Act. 28. Until the approval of the cadastral map and the cadastral registers, the amendment and the maintenance of the entered into force plans of the newly established estates under 4k of the transitional and concluding provisions shall be done by the municipal administration. 29. When in cases of established right of use over lands - municipal property, on the basis of the acts under 4 of the transitional and concluding provisions, the value of the land is not paid, within one year from the entry into force of this Act the users can ask for determination of an appraisal pursuant to Article 36, paragraph 3 and pay the price of the land within three months from the entry into force of the appraisal. 30. The pending proceedings under Article 11, paragraph 2 shall be terminated pursuant to the terms and procedure of this Act. For more information visit www.solicitorbulgaria.com id: 323 Fri, 01 Aug 2008 07:22:47 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-agricultural-land-ownership-and-use-act http://web.solicitorbulgaria.com/index.php/bulgarian-agricultural-land-ownership-and-use-act http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/Agricultural_Land_Ownership_and_Use_Act.jpg EUR http://web.solicitorbulgaria.com/index.php/bulgarian-agricultural-land-ownership-and-use-act legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Part OneGENERAL PROVISIONSArticle 1. This Act governs the organization, funding, production, administration and use of the cadastre and the property register.Article 2. (1) The term cadastre shall denote the aggregation of basic data regarding the location, boundaries and sizes of immovable properties within the territory of the Republic of Bulgaria, such data being collected, presented, updated and stored according to procedures established by force of this Act.(2) The cadastre shall also comprise:1. Data about the right of ownership over immovable properties;2. Data about other real rights over immovable properties;3. Data about the state borders, the boundaries of administrative territorial units, the boundaries of lands adjacent and belonging to populated areas, and the boundaries of lands of identical permanent use;4. additional data in cases as per Article 34.(3) The data as per Paragraphs (1) and (2) shall be entered into a cadastral map and shall be recorded in cadastral registers.(4)… For more information visit http://www.solicitorbulgaria.com id: 324 Part OneGENERAL PROVISIONSArticle 1. This Act governs the organization, funding, production, administration and use of the cadastre and the property register.Article 2. (1) The term cadastre shall denote the aggregation of basic data regarding the location, boundaries and sizes of immovable properties within the territory of the Republic of Bulgaria, such data being collected, presented, updated and stored according to procedures established by force of this Act.(2) The cadastre shall also comprise:1. Data about the right of ownership over immovable properties;2. Data about other real rights over immovable properties;3. Data about the state borders, the boundaries of administrative territorial units, the boundaries of lands adjacent and belonging to populated areas, and the boundaries of lands of identical permanent use;4. additional data in cases as per Article 34.(3) The data as per Paragraphs (1) and (2) shall be entered into a cadastral map and shall be recorded in cadastral registers.(4) A map on which additional data as per Paragraph (2), item 4, are also entered shall be referred to as a specialized map.(5) Data as per Paragraphs (1) and (2) shall be considered as evidence of the circumstances referred to, until proven otherwise.Article 3. (1) The property register shall be comprised of the accounts of all immovable properties.(2) Subject to recordation in the property register shall be any title deeds or other documents whereby the right of ownership is attested to or transferred, or any other real rights over immovable properties, any mortgages and foreclosures in respect thereof are established, transferred, modified or terminated, as well as any other actions, circumstances and legal facts subject to recordation therein as prescribed by force of this Act.(3) (New, SG 36/2004) Any and all recordations in the accounts of immovable properties located within the territory of the respective court district shall be made subject to a ruling by the recordation judge.Article 4. (Effective 25.04.2000) (1) The cadastre shall be created, maintained and stored by the Geodesy, Cartography, and Cadastre Agency under the Ministry of Regional Development and Public Works.(2) The Minister of Regional Development and Public Works shall supervise and control the overall activity related to the cadastre.Article 5. (1) (Amended, SG No. 36/2004) The property register shall be kept and stored by the Recordation Agency under the Minister of Justice.(2) (Amended, SG No. 36/2004) The Minister of Justice shall supervise and control the entire activity related to the property register.(3) The Minister of Justice shall issue an ordinance regarding the keeping and storage of the property register.Article 6. (1) The cadastre and the property register shall be mutually interconnected through the identifier of immovable properties.(2) Basic data about immovable properties in the property register shall be supplied from the cadastre. Data regarding the right of ownership and other real rights over immovable properties in the cadastre shall be supplied from the property register.(3) The mutual interconnection as per Paragraph (1) and the exchange of data between the cadastre and the property register shall be implemented subject to terms, conditions and procedure as prescribed by an ordinance issued by the Minister of Regional Development and Public Works and the Minister of Justice.Article 7. (1) A computerized information systems shall be established for the needs of the cadastre and the property register, which shall be mutually interlinked.(2) The information systems as per Paragraph (1) shall also provide links with the Unified Classifier of Administrative-Territorial Units UCATU), with BULSTAT (the Unified State Register of Commercial Entities in the Republic of Bulgaria), with ESGRAON (the Unified System for Civil Registration and the Provision of Administrative Services to the Population), and the state and municipal property registers of.(3) The terms, conditions and procedure for the establishment, maintenance and use of the information systems, as well as for direct access to the data therein, shall be prescribed by an ordinance adopted by the Council of Ministers subject to a proposal by the Minister of Regional Development and Public Works and the Minister of Justice.Article 8. (1) The cadastre and the property register shall constitute public information.(2) (Amended, SG No. 36/2004) Fees shall be charged for recordation in the cadastre, for announcement of procedures as per Art 35b (3) and Article 49a, (1) and (4), and for responding to queries, issuing document transcripts and other services as per Article 52 (5), Article 55 and 56; the amounts of such fees shall be determined by a tariff approved by the Council of Ministers.(3) (Amended, SG No. 36/2004) Fees shall be charged for recordation in the property register and for responding to queries, issuing document transcripts and other services as per Article 92; the amounts of such fees shall be determined by a tariff approved by the Council of Ministers.(4) Government institutions, agencies and municipalities shall pay for the services as per Paragraph (2) only the actual costs of the production of copies of the documentation.(5) The Geodesy, Cartography, and Cadastre Agency shall pay for data supplied in cases as per Article 51 (1), (2) and (3), only the actual costs of the production of copies of the documentation.Article 9. (Amended, SG No. 36/2004) (1) Activities pertinent to the production, maintenance and storage of the cadastre shall be funded by subsidies from the budget of the Ministry of Regional Development and Public Works, by proceeds from fees as per this Act, by other proceeds, as well as by funds allocated under national and regional programs for development of the technical infrastructure, under international programs, projects and agreements.(2) The property register shall be funded by a subsidy from the budget of the Ministry of Justice, by proceeds from fees as per this Act, by other proceeds, as well as by funds allocated under national and regional programs, under international programs, projects and agreements.Part TwoTHE CADASTREChapter OneTHE GEODESY, CARTOGRAPHY, AND CADASTRE AGENCY(Title amended, SG No. 29/2006) Article 10. (Effective 25.04.2000) (1) The Geodesy, Cartography, and Cadastre Agency shall be an executive agency constituting a legal entity with its registered office in Sofia and with local Geodesy, Cartography, and Cadastre Offices based in the administrative centres of all districts of the country.(2) The Geodesy, Cartography, and Cadastre Offices shall be territorial units of the Geodesy, Cartography, and Cadastre Agency.(3) (New, SG No. 36/2004) For the purposes of providing administrative services, the Geodesy, Cartography, and Cadastre Offices may have structural units based at the seats of the district courts.Article 11. (Effective 25.04.2000) (1) The Geodesy, Cartography, and Cadastre Agency shall be managed by an Executive Director, and the district Geodesy, Cartography and Cadastre Office, by a head of office.(2) The Executive Director of the Geodesy, Cartography, and Cadastre Agency may delegate to the heads of the Geodesy, Cartography, and Cadastre Offices his/her own functions, rights and obligations except for those as per Chapter Two, Article 35 (1), Article 47 (2) and Article 49 (1).(3) (New, SG No. 36/2004) The Executive Director may be a person who:1. has a Master's degree in geodesy;2. has at least 5 years length of service in a profession corresponding to his/her academic specialization;3. has not been convicted and sentenced to imprisonment for premeditated indictable offences, unless rehabilitated since the passing of the sentence.(4) (New, SG No. 36/2004, amended, SG No. 29/2006) The funds raised from 75 percent deductions on the fees collected as per this Act and the Geodesy and Cartography Act , as well as from additional budget revenue collected from fines and material sanctions imposed by force of penal orders issued pursuant to this Act, shall be allocated for the creation of cadastre and geodesic surveys, for the acquisition and development of premises, facilities and equipment, for the provision of training and incentives to the employees of the Agency subject to the terms, conditions and procedure prescribed by an ordinance of the Minister of Regional Development and Public Works.Article 12. (Effective 25.04.2000) The Geodesy, Cartography, and Cadastre Agency shall:1. perform any and all functions pertinent to the cadastre pursuant to this Act;2. (new, SG No. 29/2006) perform any and all functions and tasks assigned thereto by the Geodesy and Cartography Act; 3. (renumbered from Item 2, SG No. 29/2006, amended, SG No. 57/2007) keep a geodetic/survey, cartographic and cadastral archive (to be referred to as Geokartfond), that shall collect, store and make available to users geodetic, cartographic, cadastral and other materials and data, subject to the terms and procedure as per the National Archives Stock Act ;4. (renumbered from Item 3, SG No. 29/2006) coordinate the performance of functions pertinent to the cadastre with the other geodetic/survey and cartographic activities of the State;5. (amended, SG No. 36/2004, renumbered from Item 4, SG No. 29/2006) develop a recordation format in respect of the digital data cards and the relevant registers the said format shall be subject to approval by the Council of Ministers;6. (renumbered from Item 5, SG No. 29/2006) in conjunction with the competent state metrology agency, organize metrological control of the existing geodetic measurement equipment;7. (renumbered from Item 6, SG No. 29/2006) ensure that employees are properly trained and qualified at all times;8. (renumbered from Item 7, amended, SG No. 29/2006) keep a register of the persons competent to perform functions pertinent to the cadastre, geodesy, and cartography;9. (renumbered from Item 8, SG No. 29/2006) coordinate the international exchange of information involving cadastral information.10. (new, SG No. 36/2004, renumbered from Item 9, supplemented, SG No. 29/2006) administer the proceeds from fees, fines and material sanctions collected as per this Act and the Geodesy and Cartography Act.Article 13. (Amended, SG No. 29/2006) The Geodesy, Cartography, and Cadastre Offices shall perform any and all functions pertinent to the geodesy, cartography, and cadastre within their assigned districts of the territory of the country, shall store the original materials and data from geodetic surveys, and shall perform any other functions, as prescribed by the respective rules of organization.Article 14. (Effective 25.04.2000)(effective 25.04.2000) In performing his/her official duties, the officer of the Geodesy, Cartography, and Cadastre Agency must carry on his/her person and present on demand proper identification.Article 15. (Effective 25.04.2000) The activity, structure, operational organization and staff of the Geodesy, Cartography, and Cadastre Agency and the Geodesy, Cartography, and Cadastre Offices shall be prescribed by rules of organization, adopted by the Council of Ministers subject to a proposal by the Minister of Regional Development and Public Works.Chapter TwoPERSONNEL PROFESSIONALLY COMPETENT TO PERFORM FUNCTIONS PERTINENTTO THE GEODESY, CARTOGRAPHY, CADASTRE(Title amended, SG No. 29/2006) Article 16. (1) (Effective 25.04.2000) (Supplemented, SG No. 29/2006) Functions pertinent to cadastre may be also performed by persons or entities who have acquired proper professional competence in cadastre subject to the terms, conditions, and procedure as per this Act.(2) The Geodesy, Cartography, and Cadastre Agency shall assign to professionally competent bodies as per Paragraph (1) the performance of functions pertinent to creating the cadastral map and cadastral registers as per Chapter Five.(3) (Supplemented, SG No. 36/2004, amended, SG No. 29/2006) A property owner or another interested party can also assign to a professionally competent body as per Paragraph (1) to produce sketches of landed estates and buildings, floor plans of separate properties within buildings, blueprints for partition or merging of immovable properties, combined plans attesting to a full or partial correspondence of the boundaries of a landed property, a cadastral map and cadastral registers as per Article 35a.Article 17. (1) (Amended, SG No. 29/2006) A professionally competent body in geodesy, cartography, or cadastre may be:1. (Supplemented, SG No. 29/2006) a natural person of Bulgarian citizenship, -holding an academic degree of Master-Engineer in geodesy, who has at least two years length of service in the field of the cadastre, geodesy or cartography, respectively, and has not been convicted of premeditated indictable offences, unless rehabilitated since the passing of the sentence;2. (Amended, SG No. 29/2006) a Bulgarian legal entity whose subject of activity is the production of cadastre, respectively, geodesic and cartography activities, with professionally competent to perform geodesy, cartography, and cadastre activities person or persons in its permanent specialized staff.(2) (New, SG No. 36/2004) Any professionally competent natural person may be a member of the permanent specialized personnel of no more than one legal entity.Article 18. (Effective 25.04.2000) (1) (Amended, SG No. 29/2006) An applicant for a position shall submit an application for entry into the respective register under Article 12, Item 8 to the Geodesy, Cartography, and Cadastre Agency.(2) (Amended, SG No. 29/2006, effective after the Chamber of Geodesy Engineers is established) A committee, appointed by the Executive Director of the Geodesy, Cartography, and Cadastre Agency shall check, within 30 days following receipt of the application, whether the statutory requirements as per Article 17 for entering the applicant into the respective register are met. A representative from the Chamber of Geodesy Engineers shall be included in the committee. The applicant shall then be entered in the register by an administrative order issued by the Executive Director.(3) When the said statutory requirements are not met, the Geodesy, Cartography, and Cadastre Agency shall deny registration. The applicant shall be notified in writing of such denial, and within two weeks following receipt of such notification may appeal against it before the Minister of Regional Development and Public Works.(4) (Amended, SG No. 30/2006) The decision whereby an appeal as per Paragraph (3) is rejected shall be subject to appeal before the Supreme Administrative Court within two weeks following notification of the applicant thereof, subject to the terms and procedure as per the Administrative Procedure Code. Article 19. (Effective 25.04.2000) (1) (Amended, SG No. 29/2006) Professional competence to perform functions pertinent to the cadastre, geodesy or cartography shall be acquired from the moment of entry of the applicant into the respective register as per Article 12, item 8.(2) (Amended, SG No. 29/2006) The register of the bodies professionally competent to perform functions pertinent to the cadastre, geodesy and cartography shall constitute public information.Article 20. (Effective 25.04.2000) (1) A professionally competent body shall be obliged:1. (amended, SG No. 29/2006) to fulfil the duties assigned to him/her/it pertinent to the cadastre and respectively to the geodesy or cartography in compliance with the applicable legislation and bylaws;2. (amended, SG No. 45/2002) To protect any classified information constituting an official secret which has become known to him/her/it in connection with the performance of his/her/its assigned duties.3. (new, SG No. 29/2006) provide protection of personal data that were disclosed to him/her/it in relation to implementing the duties assigned.(2) Upon approval of the cadastral map and the cadastral registers, the bodies as per Paragraph (1) shall be allowed use data from these only subject to the procedure prescribed in Chapter Seven.(3) A professionally competent body shall be required to obtain insurance, only for the duration of his/her/its work as per this Act, against liability for damages as may occur due to guilty non-fulfilment of his/her/its obligations as well as the obligations of his/her/its employees. The minimum amount of the insurance premium shall be determined by the Geodesy, Cartography, and Cadastre Agency.Article 21. (Effective 25.04.2000) (1) Such a body's professional competence shall be lost:1. upon written request submitted by the professionally competent body to the Geodesy, Cartography, and Cadastre Agency;2. in the event of death or placement under judicial disability of the professionally competent body (where a natural person);3. upon re-organization or termination of the professionally competent body (where a legal entity) through liquidation;4. when the professionally competent body (where a natural person) has lost his/her Bulgarian citizenship or has been convicted for a premeditated indictable offence and sentenced to imprisonment;5. (supplemented, SG No. 29/2006) when the professionally competent body breaches his/her/its obligations as per Article 20 (1) under this Act or as per Article 25 (1) under the Geodesy and Cartography Act .(2) (New, SG No. 36/2004) In the cases as per Paragraph (1), item 5 the professional competence shall be lost for a period of one to three years.(3) (Previous Paragraph (2), SG No. 36/2004, amended, Sg No. 29/2006, SG No. 36/2004) In the cases as per Paragraph (1), items 1 through 4 inclusive, the Executive Director of the Geodesy, Cartography, and Cadastre Agency shall issue an administrative order on deleting the professionally competent body from the respective register.(4) (Previous Paragraph (3), supplemented, SG No. 36/2004) Breaches of Paragraph (1), item 5 shall be established by force of a statement of fact issued by officials appointed by the Executive Director of the Geodesy, Cartography, and Cadastre Agency, on the basis of which the deletion order shall be issued. The deletion order shall determine the period during which the professionally competent body may not be re-entered into the personnel register.(5) (Previous Paragraph (4), SG No. 36/2004) The order of the Executive Director of the Geodesy, Cartography, and Cadastre Agency in the cases as per Paragraph (1), item 2, where the professionally competent body is placed under judicial disability, as well as items 3 through 5 inclusive, shall be subject to appeal within two weeks following receipt of the notification as per Article 18, Paragraphs (3) and (4).Article 22. (Amended, SG No. 29/2006) The terms and procedure of keeping of the cadastre, geodesy and cartography register shall be prescribed by an ordinance issued by the Minister of Regional Development and Public Works.Article 22a. (New, SG. 29/2006) The Geodesy, Cartography and Cadastre Agency and its local offices in implementing their cadastre-related functions are considered professionally competent to implement cadastre activities under this Act.Chapter ThreeCONTENT OF THE CADASTREArticle 23. Immovable properties subject to entry into the cadastre shall include:1. any landed property;2. any building, including a rough structure, as yet unfinished;3. any self-contained property within a building.Article 24. (1) The basic cadastral unit of the shall be a landed property.(2) A landed property shall be any part of the surface of the earth, including one permanently submerged under water, defined by boundaries in accordance with a title of ownership.(3) Landed properties make up the entire territory of the country, as defined by its state borders, without overlapping with one another.(4) The state borders, the boundaries of administrative territorial units, the boundaries of territories adjacent and belonging to populated areas, and the boundaries of lands of identical permanent use shall also constitute boundaries of landed properties.Article 25. (1) Each landed property shall subsume the permanent use as of the land within the boundaries of which it is located.(2) Changes of the permanent use of the land shall be effected subject to a procedure prescribed by law.(3) A change of the permanent use of part of a landed property shall result in the formation of separate properties.Article 26. (1) Each landed property, building or self-contained property within a building shall be assigned an identifier.(2) Such an identifier shall constitute a unique number by which the immovable property shall be positively identified within the territory of the country. Such an identifier shall contain the UCATU code of the populated area within whose territory the property is located.(3) Such an identifier shall be assigned by the geodesy, cartography and cadastre office.(4) The structure and the content of the identifier, as well as the terms and procedure of its application, shall be prescribed by an ordinance issued by the Minister of Regional Development and Public Works.Article 27. (1) The following shall constitute basic cadastral data:1. for a landed property: its identifier; its boundaries as defined by the geodetic co-ordinates of the points making them up; its surface area; its permanent use and the model and method thereof;; and its address;2. (Amended, SG No. 36/2004) for a building: its identifier; the layout of the building as defined by the geodetic coordinates of the points making them up; its built-up area; the number of floors; its use; and its address;3. for a self-contained property within a building: its identifier; location; and use.(2) Basic cadastral data shall also signify the data regarding the state borders, the boundaries of administrative territorial units, the boundaries of territories adjacent and belonging to populated areas, and the boundaries of lands of identical permanent land use.(3) For immovable properties pertinent to the national defence and security, the cadastre shall contain only identifiers and data about the boundaries of the relevant landed properties.Article 28. (1) The cadastral map and the cadastral registers shall be produced in graphic and text format on conventional data carriers, and in digital format on magnetic, optical or other data carriers.(2) Cadastral maps and cadastral registers shall be subject to adoption, notification of the interested parties, and approval pursuant to the procedure as prescribed by this Act.(3) The approved cadastral map and cadastral registers shall be entered into the information database by the geodesy, cartography and cadastre office.(4) Basic cadastral data shall be duly dated upon being entered into the information database.Article 29. (1) The cadastral map shall contain:1. the state borders, the boundaries of administrative territorial units, the boundaries of territories adjacent and belonging to populated areas, and the boundaries of lands of identical permanent use;2. all landed properties with their boundaries and identifiers;3. all buildings with their identifiers;4. all names of localities, streets, watercourses and water surfaces, and any other sites, locations and facilities as prescribed by the ordinance as per Article 31;5. the geodetic base points.(2) Attached to the cadastral map shall be floor plans of self-contained properties and premises within buildings.Article 30. (1) Cadastral registers shall be kept of:1. all immovable properties subject to entry into the cadastre;2. the geodetic base points;3. the geodetic base stations;4. all identifiers and any changes thereto.(2) The cadastral register of immovable properties subject to entry therein shall contain:1. the basic data about the property as per Article 27 (1), except the data regarding the boundaries of a landed property or the outlines of a building;2. the data as per Article 61 (1), items 1 through 11 inclusive, regarding the owner of the immovable property and the title deed from which the ownership rights arise;3. the data as per Article 62 (1), items 1 through 4 inclusive, regarding any other real rights over the immovable property;4. the number of the property account as per the property register.Article 31. The content, as well as the terms and procedure of the production and maintenance of a cadastral map and cadastral registers shall be prescribed by an ordinance issued by the Minister of Regional Development and Public Works. The ordinance shall also prescribe the permanent land use classifier of landed properties.Chapter FourSPECIALIZED MAPS, REGISTERS AND INFORMATION SYSTEMS. ADDITIONALCADASTRAL DATAArticle 32. (1) Government institutions, agencies, municipalities and other legal entities, in accordance with the scope and nature of their functions, shall:1. organize the collection, regular updating and provision upon request of specialized data regarding:a) immovable properties, other than basic cadastral data;b) building sites, amenities and other facilities in landed properties, including above-ground and underground linear utilities and facilities, other than buildings and self-contained properties therein;c) perennial plantations;d) water courses and water surfaces;e) mineral deposits in the earth's womb;f) the relief of the earth's surface.2. produce specialized maps, registers and information systems on the basis of data as per item1.(2) In case where any specialized maps, registers or information systems contain basic cadastral data, then the government institutions, agencies, municipalities and other legal entities shall be required to use the relevant data from the cadastre.(3) The content of specialized maps and registers, and the terms and procedure of production and maintenance thereof, shall be prescribed by ordinances issued jointly by the head of the relevant government institution or agency and the Minister of Regional Development and Public Works.Article 33. (1) Specialized information systems using cadastral data shall be required to maintain a link with the cadastral information system.(2) (Amended, SG No. 36/2004) The terms and the procedure of data exchange between the information systems shall be prescribed by an ordinance adopted by the Council of Ministers subject to a proposal by the Minister of Regional Development and Public Works.Article 34. (1) Data as per Article 31 (1) item1 shall be included in the cadastre as additional cadastral data; shall be kept up-to-date, stored and provided on request by the Geodesy, Cartography, and Cadastre Agency subject to terms and procedures established on a contractual basis.(2) (Supplemented, SG No. 36/2004) Additional cadastral data collected by geodetic, photogrammetric and other surveys shall be accepted for entry subject to the provisions of Article 45.Chapter FivePRODUCTION OF A CADASTRAL MAP AND CADASTRAL REGISTERSArticle 35. (1) Proceedings pertinent to the production of a cadastral map and cadastral registers shall be initiated by an administrative order of the Executive Director of the Geodesy, Cartography, and Cadastre Agency.(2) The administrative order as per Paragraph (1) shall contain the name and boundaries of the area for which a cadastral map and cadastral registers will be produced; the professionally competent person or entity to whom/which the production of the cadastral map and cadastral registers has been assigned, and the time frame and schedule for completion of the assignment. The said administrative order shall also indicate the time limit for demarcation of the boundaries of landed properties, which shall be no less than 30 days from the date of promulgation of the administrative order.(3) The administrative order as per Paragraph (1) shall be promulgated in State Gazette, publicized in the mass media, including two central daily newspapers, and shall be displayed prominently in public places within the buildings of the Geodesy, Cartography and Cadastre Office, the municipality, and the mayor's office.Article 35a. (New, SG No. 36/2004) A cadastral map and cadastral registers may also be produced in respect of an individual property or group of properties on request by the owner or an investor and at their expense. .Article 35b. (New, SG No. 36/2004) (1) The proceedings as per Article 35a shall be initiated by an administrative order of:1. the head of the service on geodesy, cartography and cadastre within whose jurisdiction the properties are located;2. the Executive Director of the Geodesy, Cartography, and Cadastre Agency, in cases where when the request was filed in respect of immovable properties located in a region for which an administrative order has been issued pursuant to Article 35 (1).(2) The administrative order as per Paragraph (1) shall state the location and the boundaries of the properties, the professionally competent body to which the duty is to be assigned and the time limit of marking the boundaries. In cases as per Paragraph (1) item 1, production shall be assigned to a professionally competent body appointed by the owner or the investor, and in cases as per item 2, to the body appointed by virtue of the administrative order as per Article 35 (2).(3) Any interested parties shall be notified of the administrative order as per Paragraph (1) subject to the provisions of the Code of Civil Procedure. Article 36. The District Governor and the mayor of the municipality are required by law to:1. ensure the demarcation of boundaries of state and municipal properties within the time limit prescribed by the administrative order as per Article 35 (1);2. (Amended, SG No. 36/2004) supply to the Geodesy, Cartography, and Cadastre Agency data regarding the immovable properties drawn from the relevant registers.Article 37. (1) (Amended, SG No. 105/2005) Upon request by the Geodesy, Cartography, and Cadastre Agency, the National Revenue Agency- - shall be required to supply to the Geodesy, Cartography, and Cadastre Offices the available data about the immovable properties and their owners.(2) The terms and conditions, the procedure and the concrete data to be supplied shall be prescribed by an ordinance jointly issued by the Minister of Regional Development and Public Works and the Minister of Finance.Article 38. (1) The owner, respectively the person vested in another real right, -shall be required by law to:1. ensure free access to the property for the performance of cadastre-related work;2. demarcate, at their own expense, using the prescribed permanent monuments, the property boundaries in accordance with the title deed or document attesting to the right of ownership or other real right, and protect the monuments from damage or destruction;3.present on demand for inspection by the officer of the geodesy, cartography and cadastre office, or to the person appointed by the administrative order as per Article 35 (2) the title deed certifying their rights over the property, as well as supply to the said officer any other data pursuant to the ordinance as per Article 31;4. protect from damage the geodetic monuments placed within the property.(2) (Supplemented, SG No. 36/2004) In case of destruction of the geodetic monuments as per Paragraph (1), item 4, the owner, respectively the person vested in another real right, - must immediately notify the geodesy, cartography and cadastre office. Should the need arise,, due to construction or assembly work, to remove a geodetic sign or marking, the person shall be required to notify the service on geodesy, cartography and cadastre 7 days before the work commences. The sign or marking shall be restored at the expense of the person subject to a procedure prescribed by the ordinance as per Article 31.Article 39. (1) (Supplemented, SG No. 36/2004) For purposes of placement of geodetic monuments and/or performance of land surveys, the officer of the geodesy, cartography and cadastre office, respectively the person as per Article 35 (2), or Article 35b (2) shall be entitled to:1. pass through the immovable property to the survey station, respectively the geodetic monument, following due notification of owner.2. perform surveys;3. place temporary geodetic signs and marking in landed properties or on buildings;4. following notification of the owner of the immovable property, to place permanent geodetic monuments in the landed property or on buildings.(2) For purposes of performing geodetic survey on an immovable property pertinent to the national defence and security, as well as of placement of geodetic monuments within it, permission by the head of the relevant institution or government agency, or by an official duly authorized by the latter, shall be required.(3) (Supplemented, SG No. 36/2004) The person as per Article 35 (2), respectively Article 35b (2) shall be required by law to produce proof of authority to perform functions as per Paragraph (1), as well as to demand of owners to present title deeds and/or supply data as per Article 37 (1), item 3.Article 40. Any expenses pertinent to the remedy of errors or omissions in the cadastre made as a result of non-fulfilment of obligations as per Article 35 and Article 37 (1), items1, 2 and 3, shall be covered by the liable persons.Article 41. (1) (Amended, SG No. 36/2004) A cadastral map and cadastral registers shall be produced by pooling together data which:1. are contained in maps, plans, registers and other documentation approved pursuant to the Uniform Cadastre of the People's Republic of Bulgaria Act (repealed), the Territorial and Urban Development Act (repealed), the Agricultural Land Ownership and Use Act and the Act Restoring Ownership of Forests and Forest Stock Land Tracts; are by nature basic cadastre data and conform, in terms of content and accuracy, with the requirements prescribed by the ordinance as per Article 31;2. have been gathered through geodetic, photogrammetric and other measurements and calculations.(2) (Amended, SG No. 36/2004) Data regarding the owners and holders of other real rights, as well as the title deeds from which their rights arise, shall be gathered from:1. the registers to the maps and plans;2. the title deeds presented as per Article 38 (1), item 3;3. the registers of the municipal and regional administration;4. (Repealed, SG No.. 105/2005)(3) Data regarding the right of ownership and other real rights shall be clarified on the basis of preliminary property accounts presented by the recordation service as per the provisions of Article 71c (3).(4) (Amended, SG No. 36/2004) No data regarding the owners and other holders of real rights, or regarding the title deeds from which their rights arise, shall be entered in the cadastral register of immovable properties, if such data have not been established pursuant to the provisions of Paragraph 2.Article 41a. (New, SG No.. 36/2004) In the cases as per Article 36 item 1 and Article 38 (1), item 2, boundaries shall be marked only within the territories specified by the administrative order on initiating proceedings, where the cadastral map and the cadastral registers are to be produced by means of geodetic, photogrammetric and other measurements.Article 42. (1) For the production and maintenance of a cadastral map of the Republic of Bulgaria, a three-dimensional network of geodetic base points shall be maintained as a uniform reference base for geodetic surveys.(2) Geodetic coordinates for cadastral purposes shall be defined by means of a uniform coordinate reference system.Article 43. (1) Boundaries subject to the cadastre shall be determined as follows:1. the state border, by force of international treaties;2. boundaries of administrative territorial units, pursuant to the provisions of, and subject to the procedure as prescribed by the Territorial Administration of the Republic of Bulgaria Act; 3. (amended, SG No. 36/2004) boundaries of territories adjacent and belonging to populated areas, whether in creating new settlements or making changes to existing ones, by a commission appointed by the District Governor, said commission being chaired by a representative of the district administration, and having as its members representatives of the respective municipal administrations, of the mayor's offices and the geodesy, cartography and cadastre office;4. boundaries of lands of identical permanent use, subject to terms, conditions and procedures prescribed by law or another statutory act, or by a valid territorial development plan;5. boundaries of landed properties:a) from the actual situation as demarcated in situ, in accordance with the title deeds as per Article 37 (1), it.3;b) from the working documents as produced in the course of defining the boundaries;c) from the image on a valid cadastral map.d) (New, SG No. 36/2004) from plans and maps as specified in Article 41 (1), item 1.(2) The Geodesy, Cartography, and Cadastre Agency shall not be held liable for any discrepancies in mapping out the boundaries of landed properties in the cadastral map within the standard deviation as prescribed by the ordinance as per Article 31.(3) Any disputes regarding boundaries of landed properties and/or territorial units shall be resolved by a court of law.(4) The boundaries of landed properties and the boundaries of territories adjacent and belonging to populated areas shall be demarcated in situ subject to the procedure prescribed by the ordinance as per Article 31.Article 44. (1) (Amended, SG No. 36/2004) Self-contained properties within buildings shall be identified on the strength of the building documentation, title deeds, or on the basis of a description made in situ.(2) (Repealed, SG No. 36/2004)Article 45. The cadastral map and cadastral registers of an area produced by the body appointed by force of the administrative order as per Article 34 (2), shall be subject to approval by the geodesy, cartography and cadastre office.Article 46. (1) Any and all interested parties shall be duly notified of the approved cadastral map and cadastral registers of immovable properties pursuant to the provisions of Article 35 (3).(2) Within 30 days from the date of promulgation in State Gazette, owners may file objections in writing with the service on geodesy, cartography and cadastre in respect of the cadastral map and the cadastral register of immovable properties.(3) (New, SG No. 36/2004) Written objections in respect of parts of the cadastral map and/or the cadastral registers produced pursuant to the procedure as per Article 41 (1), item 1, may be filed only regarding non-conformity with the data contained in the plans and maps used in their production.Article 47. (1) Objections shall be considered by a commission chaired by the head of the geodesy, cartography and cadastre office, and comprised of one representative of the geodesy, cartography and cadastre office, representatives of the municipal and district administration, and representatives of any institutions or government agencies concerned.(2) The Executive Director of the Geodesy, Cartography, and Cadastre Agency shall issue an administrative order nominating all members of the commissions to be set up for every municipality.(3) The chairperson shall organize the proceedings of the commission.Article 48. (1) The commission shall pass a well-grounded ruling on each objection within 30 days from the expiry of the time limit as per Article 46 (2).(2) Amendments to the cadastral map and the cadastral register of immovable properties in accordance with the rulings as per Paragraph (1) shall be made within 60-days from the date of such a ruling by the body appointed by force of the administrative order as per Article 35 (2).(3) The performance of duties as per Paragraph (2) shall be subject to approval pursuant to the provisions of Article 45.Article 49. (1) The approved cadastral map and cadastral registers of the area shall be subject to approval by an administrative order of the Executive Director of the Geodesy, Cartography, and Cadastre Agency; such an approval shall be communicated to the interested parties pursuant to the provision of Article 35 (3).(2) (Supplemented, SG No. 36/2004, amended, SG No. 30/2006, effective 1.03.2007, in respect of the replacement of the word "district" by "administrative") The order as per Paragraph (1) shall be subject to appeal pursuant to the Administrative Procedure Code before the administrative court within whose jurisdiction the property is located, within 30 days from the date of promulgation thereof in State Gazette.(3) Within seven days from the expiry of the time limit as per Paragraph (2), the Geodesy, Cartography, and Cadastre Agency shall notify the Minister of Justice that a cadastral map and cadastral registers for the respective territory have been approved, and shall submit to the recordation office:1. a sketch -abstract of the cadastral map and, for a self-contained property within a building, also a floor plan, together with hard copy transcripts from the cadastral register of immovable properties in respect of each immovable property, to be filed in the property account;2. the cadastral register of immovable properties, on a magnetic, optical or other technical carrier;3. information about any appeals as may have been filed pursuant to Paragraph (2).(4) (New, SG No. 36/2004) The administrative order as per Paragraph (1) shall be subject to appeal by the owners and/or holders of other real rights over the immovable properties and/or the neighbouring ones, located within the range of the cadastral map.(5) (New, SG No. 36/2004) The administrative order on the approval of the cadastral map and the cadastral registers shall enter into force following expiry of the time limit as per Paragraph (2) for properties in respect of which no appeals have been filed.(6) (New, SG No. 36/2004) Paragraph (3) shall also apply in cases as per Article 35a.Article 49a. (New, SG No. 36/2004) (1) The cadastral map and cadastral registers produced pursuant to the provisions of Article 35a shall be subject to approval by the geodesy, cartography and cadastre office; any and all interested parties shall be notified of such approval pursuant to the provisions of the Code of Civil Procedure. They may then file written objections with the service on geodesy, cartography and cadastre within 14 days from receipt of the notification.(2) The commission as per Article 47 (1) shall announce its decision within 14 days from the expiry of the time limit for filing objections. Any amendments to the cadastral map and the cadastral registers in accordance with decisions of the commission shall be made by the body as per Article 35b (2) within 14 days from the date of such a decision.(3) The adopted cadastral maps and cadastral registers as per Paragraph (1) shall be subject to approval by an administrative order of the head of the geodesy, cartography and cadastral office or, respectively, of the Executive Director of the Geodesy, Cartography, and Cadastre Agency.(4) (Amended, SG No. 30/2006, effective 1.03.2007) Any interested parties shall be notified of such an administrative order subject to the provisions of the Code of Civil Procedure ; it shall be subject to appeal within 7 days before the administrative court within whose jurisdiction the property is located.(5) In the cases as per Paragraphs 1 through 4 the provisions of Article 46 (3) and Article 49 (4) and (5) respectively shall apply.Article 49b. (New, SG No. 36/2004) Following approval of the cadastral map and the cadastral registers for the respective territory, a sketch-abstract of the cadastral map issued by the Geodesy, Cartography, and Cadastre Agency shall be required for purposes of issuance of title deeds whereby the right of ownership is attested to or transferred, or another real right over an immovable property is established, transferred, amended or terminated.Article 50. for the terms, conditions and procedure of oversight and approval of the cadastral map and cadastral registers shall be prescribed by an ordinance issued by the Minister of Regional Development and Public Works.Chapter SixCONTINUOUS UPDATING OF THE CADASTRAL MAP AND CADASTRAL REGISTERSArticle 51. (1) The cadastral map and the cadastral registers shall be continuously updated on the basis of data received pursuant to the provisions of Article 52 and Article 86 (1), as well as from geodetic surveys.(2) Geodetic surveys shall be performed in cases of changes in the boundaries of landed properties and of the layouts of buildings, in cases of creation of new cadastral items, as well as in upon remedy of errors and omissions therein.(3) Displacements of earth masses (landslides) as a result of natural disasters shall not change the boundaries of landed properties as identified in the cadastre.Article 52. (1) A transcript of any title deed, court ruling or administrative whereby rights of ownership are attested to or transferred, or other real rights over an immovable property are established, transferred, amended or terminated; or of any title deed, ruling or act whereby immovable properties are divided, partitioned or merged, shall be submitted by the respective court or State Property and Municipal Property office to the service on geodesy, cartography and cadastre within whose jurisdiction the property is located, within 7 days from the date of entry into force of the respective deed, ruling or administrative act.(2) The Farm Lands Commission under the Ministry of Agriculture and Forests shall send to the service on geodesy, cartography and cadastre within whose jurisdiction the property is located, a copy of the decision whereby a change of the use of farm land is allowed, within 7 days from the date of payment of the fee as per Article 30 of the Agricultural Land Conservation Act.(3) The National Forestry Board shall send to the service on geodesy, cartography and cadastre within whose jurisdiction the property is located a copy of all title deeds or other relevant documents in respects of forests and lands not included in the forest domain, within 7 days from the date of payment of the fee as per Article 30 of the Farm Land Protection Act.(4) The owner- or, respectively, the investor shall supply - to the service on geodesy, cartography and cadastre data about all structures, whether newly-constructed, additional stories, extensions, below-ground structures, rebuilt or demolished structures, as well as all relevant data as per Article 34, pursuant to the provisions and procedure prescribed by the ordinance as per Article 31.(5) An occupancy permit in respect of a building or other structure shall not be issued unless the owner or, respectively, the investor has submitted a certificate from the service on geodesy, cartography and cadastre that the obligation as per Paragraph 4 has been fulfilled.(6) (Repealed, SG No. 36/2004)Article 53. (1) The approved cadastral map and cadastral registers may be altered in cases where:1. they contain errors or omissions;2. they have been approved in contravention of the law;3.additional cadastral data are must be recorded pursuant to the provisions of Article 34 (1).(2) Any omissions or errors in basic data in the cadastral map and cadastral registers shall be remedied by the Geodesy, Cartography, and Cadastre Agency upon request by the interested party. Should such omissions or errors be related to any litigation in respect of material rights, these shall be remedied after the case has been resolved by a court of law.(3) Errors and/or remissions as per Paragraph (1), item 1, shall be established in situ by the geodesy, cartography and cadastre office, by force of a statement of fact, to be signed jointly by the issuing body, the applicant and the owners directly concerned.Article 54. (1) (Amended, SG No. 29/2006) Amendments to the cadastral map under Article 53 shall be subject to approval by an administrative order of the Executive Director of the Geodesy, Cartography, and Cadastre Agency, or any head of service on geodesy, cartography and cadastre empowered by the latter. Said administrative order shall be communicated to the interested parties pursuant to the provisions of the Code of Civil Procedure. (2) (Supplemented, SG No. 36/2004, amended, SG No. 30/2006, effective 1.03.2007, in respect of the replacement of the word "district" by "administrative") The administrative order as per Paragraph (1) shall be subject to appeal pursuant to the procedure as per the Administrative Procedure Code , before the administrative court within whose jurisdiction the property is located.(3) The Geodesy, Cartography, and Cadastre Agency shall submit without delay to the recordation office a sketch-abstract and a transcript of the approved cadastral register of real properties for each individual property in case of:1. partition or merging of immovable property at the request of the owner;2. partition of immovable properties resulting from changes in the boundaries of administrative territorial units, territories adjacent and belonging to populated areas, or lands of identical permanent use;3. Partition of real property in case of change of the permanent land use of part(s) thereof;4. Remedy of errors or omissions.(4) In cases of legal partition of property the court shall allocate the newly defined shares after they have been assigned cadastral identifiers pursuant to the provisions of this Act.(5) In cases of voluntary partition of property, the provisions of Paragraph (4) shall apply. Such voluntary subdivision shall not be valid if the shares of the parties thereto have not been assigned cadastral identifiers.Chapter SevenPROVISION OF CADASTRAL DATA ON REQUESTArticle 55. (1) The Geodesy, Cartography, and Cadastre Agency shall, upon request, issue transcripts from, or supply information based upon, the cadastral map and the cadastral registers.(2) The information supplied may be written or verbal.(3) Written information may be supplied in the following formats:1. sketch-abstracts of the cadastral map supported with transcripts of the cadastral registers and, in case of a self-contained property within a building, also a floor plan of that property;2. sketch-abstracts as per item 1 containing additional cadastral data, as well;3. other transcripts of the cadastre.(4) Verbal information may also be supplied by telephone, tealeaf or by other technical means. Information obtained by direct access to the information system shall have the validity of verbal information.(5) Information excerpts containing additional cadastral data as per Article 34 (1) must also include information about their current validity.Article 56. (1) Upon request by the owner, the boundaries of the landed property shall be demarcated in situ by the service on geodesy, cartography and cadastre with permanent monuments, on the basis of the cadastral data.(2) In cases both of legal and voluntary partition, or else in cases of sale of part(s) of an immovable property, merging of neighbouring properties, as well as in case of partition of an immovable property upon request by the owner, or as a result of change of its permanent use, the service on geodesy, cartography and cadastre shall assign identifiers and issue sketch-abstracts of the cadastral register, and in case of a self-contained property within a building, also a floor plan of that property. Where such a sketch-abstract is produced by a professionally competent body, it shall be duly certified by the geodesy, cartography and cadastre office.Article 57. (1) By virtue of the provision of information and other services by the Geodesy, Cartography, and Cadastre Offices the service recipient shall be entitled to one single use, for purposes of one procedure only, of the data received.(2) Cadastral data and separate materials may be reproduced, for purposes of further use, subject to prior permission by the Geodesy, Cartography, and Cadastre Agency.(3) Pursuant to the provisions of Paragraph (2), any processing of cadastral maps, registers and data in digital format shall likewise be deemed to constitute reproduction.Article 58. (1) (Amended, SG 29/2006) The terms, conditions and procedure of the provision of cadastral, geodetic and cartographic materials and data shall be prescribed by an ordinance issued by the Minister of Regional Development and Public Works.(2) The terms, conditions and procedure of obtaining cadastral data by direct access to the information system shall be prescribed by the ordinance as per Article 7 (3).(3) (Amended, SG No. 29/2006) The Geodesy, Cartography, and Cadastre Agency shall be required to provide cadastral, geodetic and cartographic materials and data to institutions and government agencies and to municipalities subject to a contract entered into pursuant to the provisions of Article 8 (4).Part ThreeTHE PROPERTY REGISTERChapter Seven ATHE RECORDATION AGENCY(New, SG No. 36/2004, effective 31.07.2004)Article 58a. (1) A Recordation Agency shall be established as an executive agency subordinated to the Minister of Justice, which shall constitute a legal entity based in Sofia and with recordation offices based at the seats of the district courts.(2) The said recordation offices shall be territorial units of the Recordation Agency.(3) The funds raised from 25 percent deductions on the fees collected under this Act, as well as from additional budget revenue collected from fines and material sanctions imposed by force of penal orders issued pursuant to this Act, shall be allocated solely for the acquisition and development of premises, facilities and equipment, for the provision of training and incentives to the employees of the Agency subject to the terms, conditions and procedure prescribed by an ordinance of the Minister of Regional Development and Public Works. The funds allocated for material incentives of the employees may not exceed 25 percent of the annual payroll.Article 58b. (1) The Recordation Agency shall:1. organize any activities pertinent to the creation and maintenance of the property register;2. provide for the interconnectivity between the property register and other registers;3. provide for the development and the technical improvement of the property register;4. establish and maintain a central archive in electronic format of the accounts of immovable properties and the title deeds and other documentation recorded, together with the relevant supporting documents;5. ensure that employees are properly trained and qualified at all times;6. administer proceeds from fees and fines collected as per this Act;7. perform other functions as prescribed by the rules of organization.(2) The recordation office within the jurisdiction of the respective district court shall:1. make entries, notes and deletions as ruled by the recordation judge ;2. prepare and submit to the Recordation Agency the information as per Paragraphs (1) through (4);3. provide information on request, issue abstracts and transcripts of its records as well as certificates of recordations;4. perform other functions pertinent to the keeping of the property register as prescribed by the ordinance as per Article 5 (3).Article 58c. (1) The Recordation Agency shall be headed by an Executive Director.(2) (Repealed, SG No. 39/2005).Article 58d. The activity, structure, operational organization and staff of the Recordation Agency shall be prescribed by a rules of organization adopted by the Council of Minister subject to a proposal by the Minister of Justice.Chapter EightTHE IMMOVABLE PROPERTY ACCOUNT. THE ACCOUNT FILEArticle 59. (1) The account assigned to each immovable property shall comprise of the following five sections:1. section "A", regarding the property;2. Section "B", regarding the owner, for purposes of recognition and/or transfer of the right of ownership;3. Section "C", for purposes of establishing and/or transferring other real rights and in respect of the legal facts and circumstances subject to recordation, except those as per items 4 and 5;4. Section "D", regarding mortgages;5. Section "E", regarding attachments and foreclosures.(2) The title deed or other legal document subject to recordation shall be entered into the account section to which it pertains.(3) The Minister of Justice shall approve the standard form of an immovable property account.Article 60. The following data shall be recorded in section "A" of the account:1. the identifier;2. the type of property, whether landed property, building, or self-contained property within a building;3. the address;4. the boundaries of the landed property (the identifiers of the neighbouring landed properties or, respectively, the neighbouring self-contained properties within the same building);5. area in square meters or in decares (1 dca = 0.1 ha);6. function (use) of the property;7. number of floors of the building;8. the circumstance as per Article 67 (2) of the Succession Act. Article 61. (1) The following data shall be recorded in section "B" of the account:1. where the owner is a natural person, his/her name, the unified civil code (UCC) or another personal identification number, and address;2. where the owner is a legal entity, the name, form of organization, registered address and BULSTAT (Unified State Register of the Commercial Entities in the Republic of Bulgaria) code or another identification number of the said legal entity;3. where a government body is assigned with the management of state-owned property, the name, form of organization, registered address and BULSTAT (Unified State Register of the Commercial Entities in the Republic of Bulgaria) code or another identification number of the said government body;4. where an organization or another legal entity funded from the municipal budget is assigned with the management and husbanding, without compensation, of municipal property, the name, form of organization, registered address and BULSTAT (Unified State Register of the Commercial Entities in the Republic of Bulgaria) code or another identification number of said organization or legal entity;5. where an immovable property is owned by a municipality, the name and UCATU (Unified Classifier of Administrative Territorial units) code;6. for local legal entities registered in a court register and for foreign legal entities having a registered branch in the Republic of Bulgaria, the court of registration, the type of register and the volume and account numbers;7. for local and foreign legal entities without court registration, the BULSTAT (Unified State Register of the Commercial Entities in the Republic of Bulgaria) code or another identification number-;8. the type of ownership: whether private or public;9. in case of co-ownership, the ideal shares, as well as the personal data of the co-owners, or in case of joint matrimonial ownership, the personal data of the spouses;10. the title deed or other legal document(s) from which the ownership rights arise;11. the number and date of the title deed or other document as per Article 112 of the Ownership Act subject to recordation, as well as the date of recordation;12. any claims as per Article 114 of the Ownership Act;13. the circumstance (if any) that the title deed or other document as per item 11 is conditional or limited by a term of validity.(2) The following shall be noted in section "B":1. the application for recordation;2. any denial of recordation by the recordation judge;3. any appeal against a denial as per item 2.Article 62. (1) The following data shall be recorded in section "C" of the account:1. the type of ownership right;2. the person vested in the right;3. the length of the term, should the right be for a term of years;4. the document as per Article 112 of the Ownership Act subject to recordation;5. any claims as per Article 114 of the Ownership Act; 6. any contracts subject to recordation;a) the type of contract;b) the date of entry into the contract, parties to and subject of the contract;c) the circumstance (if any) that the contract is conditional or limited by a term of validity.(2) The following shall be noted in section "C":1. the application for recordation;2. any denial of recordation by the recordation judge;3. any appeal against a denial as per item 2.Article 63. (1) The following data shall be recorded in section "D" of the account:1. the type of mortgage, whether statutory, contractual, or instituted as a collateral to court proceedings;2. the type, number, date and issuing authority of the title deed or other document on the grounds of which the recordation was effected;3. the amount due for which the mortgage was established as security: principal, interest, expenses;4. the due date;5. the mortgagee with the respective personal data thereof, as prescribed in Article 61 (1);6. the mortgager, with the respective personal data thereof, or data about the person, where other than the owner, for whose debt the mortgage was established, as prescribed by Article 61 (1);7. changes in the receivable;8. any deletion of the mortgage and the grounds therefore;9. the circumstance (if any) that the contract is conditional;10. any renewal of the mortgage.(2) The following shall be noted in section "D"::1. the application for recordation;2. any denial of recordation by the recordation judge;3. any appeal against a denial as per item 2.Article 64. (1) The following data shall be recorded in section "E" of the account:1. the type of foreclosure, whether general or of a separate property;2. the number and date of issuance of the ruling imposing the foreclosure and the issuing authority;3. the number and date of recordation of the foreclosure;4. the amount secured;5. deletion (if any) of the foreclosure and the grounds therefore.(2) The following shall be noted in section "E":1. the application for recordation;2. any denial of recordation by the recordation judge;3. any appeal against a denial as per item 2.Article 65. (1) An account shall be kept for any immovable property assigned an identifier.(2) Each account shall have a separate, unique number.Article 66. (1) In case of partition of an immovable property, separate accounts shall be opened for each newly established property, and the account number and the cadastre identifier of the partitioned property shall be recorded therein.(2) The account numbers and cadastre identifiers of the newly established properties shall be recorded in the account of the partitioned property, and the latter shall be closed.(3) Any and all real rights, mortgages and other encumbrances over the partitioned property shall be recorded in the newly opened accounts.Article 67. (1) In the account of a property formed as a result of merging of properties, the account numbers and cadastre identifiers of the properties forming it, as well as the real rights and other encumbrances over each of the properties, shall be recorded.(2) In the accounts of the merged properties, the account number and the cadastre identifier of the newly established property shall be recorded, and they shall be closed.Article 68. (1) An account shall be recorded on paper and on another data carrier. In the event of inconsistency between the two records, the one kept on paper shall take legal precedence.(2) An account that has been lost or destroyed shall be recovered pursuant to the terms and procedure prescribed by the ordinance as per Article 5 (3).Article 69. (1) The following documents shall be stored in an account file :1. the title deeds or other documents providing the grounds for recordation;2. the sketch of the property or the floor plan of the self-contained property within a building;3. the documents as per Article 72.(2) The account file shall bear the account number.Chapter NineCREATION OF THE PROPERTY REGISTERArticle 70. (1) Proceedings for the creation of a property register for each court district shall be initiated by an administrative order of the Minister of Justice in accordance with the program as per Article 94 (2).(2) The administrative order as per Paragraph (1) shall state the court district and the schedule of compilation of the property accounts, itemized by areas as per Article 35 (2), and shall appoint the recordation judge.(3) The said administrative order shall be promulgated in State Gazette.Article 71. (1) The recordation office shall prepare preliminary accounts and account files thereto in respect of immovable properties on the basis of the data contained in the recordation books as well as these as per Article 41 (1) and (2) and the title deeds and other documents received from the Service on geodesy, cartography and cadastre.(2) (Supplemented, SG No. 36/2004) For any transaction involving immovable property where no preliminary account has been prepared, simultaneously with the recordation of such data the recordation judge shall open a preliminary account in respect of that property and shall enter its number in every deed or other document subject to recordation. In the cases as per Article 35a, the preliminary account shall be transformed into the account of the immovable property.(3) The recordation office shall submit in digital format to the service on geodesy, cartography and cadastre the preliminary property accounts for purposes of more accurate definition of the cadastral map and the data about ownership and other real rights in the cadastral register of immovable properties, as well as for purposes of assigning identifiers.Article 72. (1) The recordation judge shall transform the preliminary accounts into permanent immovable property accounts pursuant to this Act, following introduction of the cadastral map and cadastral register of immovable property approved as per Article 49.(2) The recordation judge shall not transform the preliminary account of an immovable property in respect of which a claim has been filed pursuant to the provisions of Article 49 (2), or in cases where the holder of the real right is not identified pursuant to the provisions of Article 41. In such cases, the respective circumstance shall be noted and the property identifier shall be entered into the preliminary account.(3) As of the moment when the circumstance as per Paragraph (2) shall cease to apply, the respective preliminary account shall be transformed into a permanent immovable property account.Article 73. (1) Following completion of the property accounts for the entire court district, the Minister of Justice shall issue an administrative order announcing the establishment of the property register for the respective court district. The said administrative order shall be promulgated in State Gazette.(2) An administrative order as per Paragraph (1) shall also be issued when there are accounts as per Article 72 (2) in the court district .Article 74. (1) (Amended, SG No. 36/2004) Until an administrative order as per Article 73 (1) is promulgated, recordation shall be carried out in accordance with the procedure as established heretofore and the property accounts prepared as per Article 71 shall be automatically updated by entry of the respective data electronically. The number of the property account shall also be entered in the deed or other document subject to recordation.(2) Within six months from the date of promulgation of the administrative order as per Paragraph (1), any interested party may request that any deeds and other documents recorded in accordance with the procedure established heretofore but not reflected in the property account, be duly recorded therein. Deeds and other documents that have not been entered in the property account pursuant to the provision of the previous sentence, shall have no validity with regard to third persons, except as of the date of recordation thereof pursuant to the provisions of Article 76 and full.Article 75. The procedure of creating the property register shall be prescribed by the ordinance as per Article 5 (3).Chapter TenRECORDATIONS IN THE PROPERTY REGISTERArticle 76. (1) A recordation in the property register may be effected:1. on request by an interested party or its authorized representative;2. on request by a notary public in cases as provided by law;3. ex officio, in cases as provided by law.(2) Accounts may be opened and closed ex officio in the cases as per Article 54 (3).Article 77. (1) The application for recordation shall be submitted in Bulgarian, and shall include:1. the name, address and other personal data of the applicant as listed in Article 61 (1);2. the legal fact subject to recordation;3. a description of the immovable property;4. the identifier of the immovable property as per the cadastre;5. the account number;6. any other circumstances, as provided by law;7. the signature of the applicant.(2) The following shall be enclosed in support of the application:1. a sketch-abstract of the cadastral map with a transcript from the cadastral registers, and for self-contained property within a building, also a floor plan thereof; in case where the deed or other document subject to recordation indicates the formation of new properties, a plan-abstract of the cadastral map and cadastral register of the immovable properties as amended subject to the procedure as per Article 54 (1) shall also be enclosed;2. the relevant documentary evidence in support of the legal fact being recorded;3. power of attorney, in case where the application is submitted by proxy.Article 78. (1) (Supplemented, SG No. 36/2004) The application for recordation shall be submitted to the recordation judge care of the recording office.(2) The application shall be marked (stamped) with the year, month, date and exact time of its submission, and shall be issued with an incoming number. .(3) Following completion of all actions as per Paragraph (2), a note shall be made in the relevant section of the property account to the effect that an application for recordation has been submitted.(4) The application may be withdrawn by a new application.Article 79. The application for recordation must not be conditional, limited by a term or by any reservations. In cases where the same applicant has submitted more than one application, he/she may request that one recordation should not be effected without the other.Article 80. The title deed or other document shall be recorded subject to the condition that the grantor has been recorded in the property register as the right-holder, except in case of acquisition of title by prescription.Article 81. Recordations in the same section of a property account shall follow the sequence of submission of the applications.Article 82. (1) The recordation judge shall rule that a recordation be effected, only after he/she has become satisfied that all the relevant provisions of the law, including the form of the title deed or other document whereby the real right is recognized, established, transferred, modified or terminated, - have been complied with.(2) (Repealed, SG No. 36/2004)(3) The ruling of the recordation judge shall be subject to execution without delay.Article 83. The recordation judge shall deny recordation in case where the relevant provisions of the law have not been complied with.Article 84. (1) In any instance of recordation, the date (day, month and year) on which it is effected shall be noted in the property account. The recordation shall be certified with the signature of the recordation judge.(2) On a recorded title deed or other document, the incoming number, the date of recordation and the account number shall be noted.(3) A note shall be made in the account of any ruling whereby recordation was denied, as well as the appeal filed against it, in keeping with the sequence as per Article 81.(4) If no appeal has been filed against the ruling whereby recordation is denied, the note made as per Paragraph (3) shall be deleted ex officio.Article 85. A recordation shall be considered null and void without a ruling by the recordation judge, or in case where the recordation is not certified pursuant to the provision of Article 84 (1).Article 86. (1) (Amended, SG No. 36/2004) The recordation office shall immediately notify the respective service on geodesy, cartography and cadastre of any newly opened accounts and any recordation effected therein.(2) The standard forms of documents whereby the information as per Paragraph (1) is to be communicated, shall be subject to approval by the Minister of Justice and the Minister of Regional Development and Public Works.Article 87. (Amended, SG No. 59/2007) Unless otherwise provided herein, the provisions of chapter Forty Nine "General Rules" of the Code of Civil Procedure shall apply accordingly.Chapter ElevenCONTESTATION OF A RECORDATION. CORRECTION AND DELETION OF RECORDATIONSArticle 88. (Amended, SG No. 59/2007) Any recordation in the property register may be contested subject to the provisions of Article 537 (2) and (3) of the Code of Civil Procedure. Article 89. (Amended, SG No. 59/2007) A manifest factual error in the recordation in the property register shall be remedied pursuant to the provision of Article 247 of the Code of Civil Procedure , by a ruling of the recordation judge.Article 90. (1) A recordation in the property register shall be deleted in case where the inadmissibility or nullity of the recordation, and/or the falsity of the recorded circumstance have been established by an action-bringing procedure.(2) Deletion shall be effected upon request by the interested party, a prosecutor, or ex officio, by a ruling of the recordation judge.(3) The party requesting deletion or the interested party shall be notified of the ruling whereby a deletion is effected or denied pursuant to the provisions of the Code of Civil Procedure ; the said ruling shall be subject to appeal by a separate motion of appeal filed with the district court. The decision of the district court shall be final and shall not be subject to appeal.Article 91. (1) Deletion of a recordation shall be effected by underlining the text subject to deletion and entering a note beside it to the effect that the underlined text, with its beginning and end duly and properly marked, has been deleted.(2) In case of inconsistency between the underlined text and the text specified in the note, the text specified in the note shall be considered as representing the deleted text.Chapter TwelvePUBLIC ACCESS TO THE PROPERTY REGISTERArticle 92. Information from the property register shall be provided and transcripts shall be issued from accounts in respect of individual properties only.Article 93. (1) Anyone may receive, on request, verbal information about recordations in an immovable property account, a transcript or an excerpt there from, or a certificate of a circumstance, whether recorded or unrecorded therein.(2) The standard form of the said certificate shall be subject to approval by the Minister of Justice.Part FourTHE LONG-TERM AND ANNUAL CADASTRE AND PROPERTY REGISTER PROGRAMS(Title amended, SG No. 36/2004)Article 94. (1) Activities related to the production and storage of the cadastral map, the cadastral registers, the property register and the information systems shall be financed with funds from sources as per Article 9.(2) The Council of Ministers, subject to a proposal by the Minister of Regional Development and Public Works and the Minister of Justice, shall adopt a long-term as well as an annual program of activities pertinent to creation and keeping of the cadastre and the property register.(3) (Amended, SG No. 36/2004) The funds necessary for the production, maintenance, updating and storage of the cadastral map, the cadastral registers and the property register, as well as of the information systems, shall be allocated on the basis of the annual program from the approved budgets of the Ministry of Regional Development and Public Works and the Ministry of Justice .Article 95. (Repealed, SG No. 36/2004)Part FiveADMINISTRATIVE PENALTY PROVISIONSArticle 96. (1) A fine in the amount of BGN 10 to 400 shall be imposed on any natural person who:1. has committed an act in violation of Article 39 (2);2. has destroyed or displaced a geodetic or any other permanent monument demarcating the boundary of a landed property or territory adjacent and belonging to a populated area;3. has failed to fulfil his/her obligations as per Article 38 (1), item 4, and Article 52 (4).(2) A fine in the amount of BGN 400 to 1,000 shall be imposed on any official who:1. has failed to fulfil a duty assigned to him/her pursuant to this Act;2. has produced, ordered the production of, or approved development plans and building papers without ensuring conformity thereof with the basic data in the cadastral map and the cadastral registers;3. has issued an occupancy permit in respect of a building in violation of Article 52 (5);4. has committed acts in violation of 6 (2).(3) In case where a legal entity or sole trader has violated Paragraph (1), a material sanction in the amount of BGN 1,000 to 5,000 shall be imposed.Article 97. (1) Any natural person who, in violation of Article 57 uses cadastral data drawn from the cadastral map and the cadastral registers approved subject to the provisions of this Act, shall be liable to a fine in the amount of BGN 50 to 1,000.(2) In case where a legal entity or sole trader has violated Paragraph (1), a material sanction in the amount of BGN 2,000 to 5,000 shall be imposed.Article 98. (1) (Supplemented, SG No. 36/2004) A punishable offence shall be established by a statement of fact issued by an official appointed by the Minister of Regional Development and Public Works, respectively by the Minister of Justice.(2) (Amended, SG No. 36/2004) A penal order shall be issued by the Minister of Regional Development and Public Works, respectively by the Minister of Justice, or by officials duly authorized by them.(3) (Supplemented, SG No. 36/2004) Proceeds from the above fines shall be remitted as income to the Ministry of Regional Development and Public Works, respectively to the Ministry of Justice.(4) The establishment of violations, the issuance, appeal and execution of penal orders shall be carried out pursuant to the provisions and procedure as established by the Administrative Violations and Sanctions Act. SUPPLEMENTARY PROVISIONS 1. For the purposes of this Act:1. "Self-contained property within a building" shall be an entire floor or part thereof, in compliance with Chapter Four of the Ownership Act ;2. "Rough structure" shall be one in which only the outer (surrounding) walls and roof are completed, either without finishing jobs or with ones at different stages of completion;3. "Permanent use of land" shall be its permanent status as prescribed by law;4. "Floor plan of a self-contained property within a building" shall be a depiction in graphic form of self-contained properties within a building showing their positions vis-a-vis one another and their respective identifiers;5. "Area" shall be the area defined on the basis of geodetic coordinates of the points determining the boundaries of landed properties or, respectively, the outlines of buildings;6. "Digital format" of a cadastral map, respectively of the recordation books, shall be a digital record of their full content in a certain format on a magnetic, optical or other data carrier which, when processed by computer, will allow reproduction on a screen or conventional data carrier;7. "Conventional carrier" shall be paper, polyester foil or other material with similar properties;8. "Geodetic base points" shall be the stations of the state geodetic control network and of the local survey control network;9. "Manifest factual error" shall be any inconsistency between the permanent objects of topography, whether natural or man-made, existing on the ground and surveyed pursuant to the provisions of this Act, and the corresponding data on the map or the plan;10. (Supplemented, SG No. 36/2004) "Address of an immovable property" shall be the description of its whereabouts comprising obligatorily the names of the district, of the municipality and the populated area or settlement unit, and including (as appropriate) the name of the street, respectively square or boulevard, housing estate, ward/subdivision, street and entrance number, floor, self-contained property within a building, and for immovable properties in farm lands, forests and lands of the forest domain, respectively the name of the locality.11. (New, SG No. 36/2004) "Combined sketch attesting to full or partial identity of the boundaries of a landed property" is a sketch showing the combined data from previous cadastral, zoning or urban development plans, as well as maps and plans pursuant to the Agricultural Land Ownership and Use Act and the Act Restoring Ownership of Forests and Forest Stock Land Tracts .12. (New, SG No. 36/2004) "Group of properties" is an agglomeration of no more than 50 neighbouring landed properties;13. (New, SG No. 36/2004) "Interested parties as per Article 54 (1)" are the owners and the holders of other real rights in respect of immovable properties, whose rights are affected by the change.14. (New, SG No. 29/2006) "Professional competence in geodesy" is recognized by means of possession of a mandatory volume of professional competencies based on a specific education and experience, which gives the right for the creation and maintenance of a unified geodesic foundation, geodetic measurements and processing thereof in order to design the national topographical maps as well as to implement specialized activities in the field of geodesy;15. (New, SG No. 29/2006) "Professional competence in cartography" is recognized by means of possession of a mandatory volume of professional competencies based on a specific education and experience, which gives the right for the creation, editing and design of the national topographical maps, specialized scientific maps and school maps atlases, globes, and relief maps; 2. Geographic sites and entities shall be designated in the cadastre by their established official names.TRANSITIONAL AND FINAL PROVISIONS 3. Cadastres produced on behalf of government institutions and agencies prior to the date of entry in force of this Act in the sense as per Article 3 (4) of the Unified Cadastre of the Republic of Bulgaria Act, shall be considered specialized maps, registers and information systems as per Chapter Four. 4. (Amended, SG No. 36/2004) (1) Prior to the approval of a cadastral map and cadastral registers:1. the sketches of immovable properties shall be issued pursuant to the procedure established heretofore;2. cadastral plans and registers (occupancy lists) thereto, approved pursuant to the provisions of the now repealed Unified Cadastre of the People's Republic of Bulgaria Act and the Territorial and Urban Development Act shall be maintained by the respective municipal administration, whereby l any changes as may occur in the immovable properties subject thereto shall be duly recorded therein, pursuant to the procedure as prescribed by the ordinance as per Article 31; such changes shall be approved by an administrative order of the mayor of the municipality, and for cities with territorial subdivision, by the mayor of the respective borough;3. the plans, maps and registers approved pursuant to the provisions of the Agricultural Land Ownership and Use Act and the Act Restoring Ownership of Forests and Forest Stock Land Tracts shall be maintained by the municipal offices of agriculture and forestry pursuant to the terms and procedure as prescribed by an ordinance of the Minister of Agriculture and Forests;4. the data as per Article 52 (4) shall be submitted to the municipal administration which shall then issue the certificate as per Paragraph (5) thereof.(2) For area where proceedings have been initiated and are underway for the production of a cadastral map and cadastral registers, the bodies as per Paragraph (1), items 2 and 3, shall submit to the Geodesy, Cartography, and Cadastre Agency all data regarding the changes in the plans and maps maintained by them within 7 days from the date of recordation thereof.(3) Following approval of the cadastral map and cadastral registers, the activities of the municipal office of agriculture and forestry with regard to maintaining the map of restored ownership and the issuance of sketch-abstracts there from in respect of the relevant territory shall be terminated.(4) Following approval of the cadastral map and cadastral registers, the functions of the municipal administration with regard to maintaining the cadastral plans and the issuance of sketch abstracts there from for the respective territory shall be terminated. 5. (1) For the purposes of this Act, a property lot, in respect of which a lot zoning scheme has been applied, shall be considered landed property.(2) The lot zoning scheme shall apply to these shares for which indemnity has been duly paid in respect of any immovable properties attached to the lot and owned by other natural persons or legal entities, or where the shares of the co-owners within a common lot formed by town planning are equalized. 6. (1) (Amended, SG No. 36/2004) Prior to the issuance of the administrative order as per Article 35 (1), the Geodesy, Cartography, and Cadastre Agency shall define the areas in respect of which the cadastral map and cadastral registers shall be created using data from the maps and plans as per Article 41 (1), item 1, respectively the areas in respect of which data are to be collected through geodetic, photogrammetric and other measurements and calculations. To that end, the Geodesy, Cartography, and Cadastre Agency shall:1. assess the maps, plans, registers and the other relevant documentation approved pursuant to the provisions of the now repealed Unified Cadastre of the People's Republic of Bulgaria Act and the Territorial and Urban Development Act, the Agricultural Land Ownership and Use Act and the Act Restoring Ownership of Forests and Forest Stock Land Tracts in terms of their compliance with the requirements of content and accuracy as prescribed by the ordinance as per Article 31;2. transform into digital format the graphic plans which meet the requirements as per item 1;3. pool together the data of maps and plans in digital format which meet the requirements as per item 1.(2) For the purposes of producing a cadastral map and cadastral registers, the bodies responsible for the development, approval, maintenance and storage of maps, plans, registers and other documentation as per Paragraph (1) shall submit to the Geodesy, Cartography, and Cadastre Agency, within two weeks from the date of receipt of a formal request to that effect, the required copies thereof, as well as of any acts by force of which they have been repealed, amended or modified subject to the provisions of Article 8 (5). The maps, plans and registers shall also be submitted on a magnetic, optical or other data carrier.(3) Municipalities and other legal entities storing cadastral plans in their possession shall hand over to the Geodesy, Cartography, and Cadastre Agency, without compensation, the originals and the relevant documentation within two weeks from the date of receipt of a formal request to that effect.(4) (Amended, SG 99/2002) The authorities of central and local government and the municipal offices of agriculture and forestry shall submit to the Service on geodesy, cartography and cadastre copies of all title deeds and other documents whereby an ownership right or other real right is recognized, established or restored, as well as of copies of effective title deeds or other documents whereby the rights of owners as per the Agricultural Land Ownership and Use Act are restored, within 30 days from the date of receipt of a formal request to that effect or following the promulgation in State Gazette of the order as per Article 35 (1). The said deeds and other documents, as well as the respective registers, shall also be submitted on a magnetic, optical or other data carrier. The Geodesy, Cartography, and Cadastre Agency shall reimburse them only for the actual costs incurred in the production of the copies.(5) Upon initiation of a procedure for the development of the cadastral map and cadastral registers, the title deeds and other documents as per Paragraph (4) shall be submitted in batches for the individual areas as per Article 35 (2).(6) The bodies as per Paragraphs (2) and (4) shall be required to ascertain the veracity of the data submitted.(7) (Repealed, SG No. 36/2004)(8) When, in the process of production of a cadastral map and cadastral registers, a manifest factual error is established in the data as per Paragraph (2) relevant to the implementation of the Agricultural Land Ownership and Use Act and the Act Restoring Ownership of Forests and Forest Stock Land Tracts , it shall be remedied pursuant to the provisions of this Act.(9) The owners affected as a result of the remedy of a manifest factual error as per Paragraph (4) shall be indemnified pursuant to the provisions of Article 10b of the Ownership and Use of Farm Lands Act or, respectively, of Article 6 and 8 of the Transitional and Final Provisions of the Restoration of Ownership over Forests and Land in the Forestry Domain Act . 7. The Council of Ministers, the district governors and the mayors of municipalities shall, within six months from the date of promulgation of this Act in State Gazette, provide buildings and other facilities and equipment for the needs and use of the Geodesy, Cartography, and Cadastre Agency and its territorial units. 8. The Unified Cadastre of the People's Republic of Bulgaria Act (Promulgated SG 35/1979; amended SG 102/1981, SG 45/1984, and SG 104/1996), shall hereby be repealed. 9. The following amendments and supplements shall hereby be made to the Territorial and Urban Development Act (Promulgated SG 29/1973; corrected SG 32/1973; amended and supplemented: SG 87/1974, SG 3 and SG 102/1977, SG 36/1979; SG 3/1980, SG 45/1984, SG 19/1985, SG 36/1986, SG 14/1988, SG 31/1990; corrected: SG 32/1990; amended: SG 15/1991; SG 63/1995, SG 104/1996, SG 41 and SG 79/1998; amended: SG 124 and SG 133/1998, SG 26 and SG 86/1999, SG 14/2000),:1. Article 21 shall be amended as follows:"Article 21. (1) Zoning plans and town-planning schemes shall be used in the zoning of streets, roads and property lots -in respect of sites constituting public state and municipal property; in respect of sites constituting private property, if the latter have not been zoned; and shall prescribe the specific land use of each property, as well as construction in properties zoned for development."(2) Detailed urban development plans, besides their full format in the sense as per Paragraph (1), may also be one of the following:"1. zoning plan inclusive of an urban development scheme;"2. zoning plan not inclusive of an urban development scheme;"3. zoning plan in respect of streets and property lots only, where these are public state and municipal property;4. block development plan and elevation."(3) Subject to the development objectives and assignments, and pursuant to the Rules and Regulations on the implementation of this Act, only one of the plans as per Paragraph (2) may be produced and implemented."(4) For restructuring and renovation of housing estates; of industrial, resort, tourist or other populated areas and settlement units, an urban development and zoning plan shall be produced and implemented."(5) Where standard deviations from regulations and statutes are regulated, or in cases where terrace-type structures are developed in more than two adjacent lots (landed properties subject to a zoning plan), then block development plans and elevations shall be produced and approved."2. In Article 21a, the following amendments shall be made:a) in Paragraph (1), sentence 1, after the words "for unzoned areas", a comma shall be inserted and the following text shall be added:- "as well as for areas where an earlier zoning plan has not been implemented";b) in Paragraph (2), at the end of sentence 3, a comma shall be inserted and the following text shall be added: "that shall be duly recorded in the cadastre and the property register, pursuant to the provisions and procedure as per the Cadastre and Property Register Act";.3. A new Article 21b shall be inserted, as follows:"Article 21b. Plans as per Arts. 21 and 21a shall be produced on the basis of data from the cadastre."4. In Chapter Two, "Territorial Development Plans", section three, "General and Detailed Urban Development Plans", the title of item 3, indent (c) shall be amended as follows:"c) Detailed Urban Development Plans".5. Article 27 shall be amended as follows:"Article 27. (1) By virtue of the plans as per Article 21 (2), items 1 and 2, hitherto unzoned landed properties in the possession of natural persons or legal entities shall be zoned for residential and summer house development."(2) The provisions of the plan shall be economically feasible and shall allow the rational management and development of zoned property lots and neighbourhoods."6. Article 28 shall be amended as follows:"Article 28. (1) Pursuant to the provisions of Article 27, the following may be zoned:"1. existing unzoned landed properties, for the formation of a larger number of individual zoned landed properties, on request by the owners, duly signed and notarised;"2. undersized unzoned landed properties, for purposes of bringing them up to size by the addition of portions of neighbouring properties;"3. neighbouring unzoned landed properties, for the establishment of zoned landed properties in co-ownership."(2) In cases as per Paragraph (1), items 2 and 3, notarised contracts shall be entered into and duly recorded."7. Article 29 shall be amended as follows:"Article 29. Owners who have requested zoning of hitherto unzoned landed properties pursuant to the provisions of Article 27, shall submit to the relevant service on geodesy, cartography and cadastre a sketch-abstract of the approved and effective detailed development plan, for purposes of the issuance of a sketch-abstract as per Article 54 (3) of the Cadastre and Property Register Act. The sketch-abstract issued by the service on geodesy, cartography and cadastre shall serve as the basis for the issuance of a title deed."8. Arts. 30 and 31 shall be repealed.9. A new Paragraph (4) shall be inserted in Article 32, as follows:"(4) Upon expiry of the time limit as per Article 182a (1), any omissions or errors in the cadastral map and the cadastral registers shall be remedied pursuant to the provisions of Article 53 of the Cadastre and Property Register Act."10. In Article 46 (1), a second sentence shall be inserted, as follows: "The placement and protection of boundary monuments shall be carried out in compliance with the Cadastre and Property Register Act."11. In Article 52 (2), the first sentence shall be amended as follows:"In cases as per Paragraph (1), the ownership and the boundaries of landed properties shall be retained in accordance with the data in the cadastre and the property register."12. Article 59 shall be amended as follows:"Article 59. (1) Real shares of landed properties within the limits of populated areas may be acquired by legal transactions or by prescription only if these meet the requirements regarding minimum area and frontage, as prescribed by the Rules and Regulations on the Implementation of this Act."(2) The provision of Paragraph (1) shall not apply in cases where the share of the landed property is annexed to a neighbouring property pursuant to the provisions of Article 28, and the remaining share either meets the requirements regarding minimum area and frontage, or is also annexed to a neighbouring property."13. Article 60 shall be repealed.14. Article 61 shall be amended, as follows:"Article 61. Partition of landed property located within the development boundaries of a populated area may be effected only if the shares resulting from such partition meet the requirements regarding minimum area and frontage, as prescribed by the Rules and Regulations on the Implementation of this Act. The blueprints for partition of the property shall be produced on the basis of a cadastral sketch-abstract issued by the relevant cadastre office."15. A new Article 62a shall be inserted, as follows:"Article 62a. In case of partition or merging of landed properties, buildings and self-contained properties within a building, the newly established immovable properties must be assigned an identifier by the cadastre."16. In Article 112, Paragraph (3) shall be amended as follows:"(3) Evaluations shall be done by a commission appointed by the mayor of the municipality, in accordance with market prices."17. Article s182a, 182b, 182c and 182d shall be inserted, as follows:"Article 182a. (1) If prior to the entry into force of the Cadastre and Property Register Act the indemnity due for immovable properties in the possession of other natural persons or legal entities added to the property lot pursuant to a valid lot zoning scheme has been paid or, respectively, when the real shares of a common property lot formed as a result of zoning are equalized, the lot zoning scheme shall be considered duly implemented in respect of these property lots and their boundaries shall be construed as boundaries of zoned landed properties."(2) In cases where, prior to the entry into force of the Cadastre and Property Register Act, the provisions as per Paragraph (1) are not fulfilled, the alienation effect of the lot zoning schemes in respect of the relevant properties shall be suspended."(3) The municipalities shall ensure the implementation of the provisions of Paragraphs (1) and (2) by duly recording any changes as may have occurred in the plans, whether ex officio or through professionally competent bodies - appointed for the purpose ."Article 182b. (1) Within the time limit as per Article 182a (1), real shares of zoned lots shall not be subject to acquisition by legal transactions or by prescription."(2) The provision of Paragraph (1) shall not apply in cases where the real shares and the remaining shares of the zoned lot meet the minimum dimension requirements as prescribed by the Rules and Regulations on the Implementation of this Act, or else, where one real share meets the minimum dimension requirements, while, the remaining share(s) is/are annexed to neighbouring lot(s)."Article 182c. Within the time limit set as per Article 182a (1), the ownership of a zoned lot shall not be transferable, and no real rights may be established in respect thereof, in cases where no indemnity has been provided for shares of the property transferred to other entities."Article 182d. Pending administrative or court proceedings pertinent to alienation of immovable properties subject to lot zoning schemes approved prior to the date of entry into force of the Cadastre and Property Register Act, shall be decided subject to the terms and procedure established heretofore." 10. The following amendments and supplements shall hereby be made to Article 33 (2) of the Agricultural Land Ownership and Use Act (Promulgated SG 17/1991; corrected SG 20/1991; amended: SG 74/1991, SG 18, SG 28, SG 46 and SG 105/1992, SG 48/1993, SG 64/1993 -(Resolution No. 12/1993 of the Constitutional Court), SG 83/1993, SG 80/1994, SG 45 and SG 57/1995, SG 59/1995 -(Resolutions No. No. 7 and 8/1995 of the Constitutional Court); amended SG 79/1996, SG 103/1996- (Resolution No. 20/1996 of the Constitutional Court); amended: SG 104/1996, SG 62, SG 87, SG 98 and SG 123/1997, SG 59, SG 88, SG 133/1998, SG 68/1999):"(2) The land commissions shall restore land ownership pursuant to the provisions of this Act, and shall perform other activities as defined by the Rules and Regulations on the Implementation of this Act. The land commissions shall maintain and update the land allocation plans and any other materials and data generated through the implementation of this Act, and shall issue sketch-abstracts for purposes of transactions of disposal involving, and partition of, farm lands until these are submitted to the Geodesy, Cartography, and Cadastre Agency, pursuant to the provisions of 6 (2) of the Cadastre and Property Register Act." 11. The following amendments and supplements shall hereby be made to the Obligations and Contracts Act (Promulgated SG 275/1950; corrected Izvestiya SG 2/1950; amended: SG 69/1951, SG 92/1952, SG85/1963, SG 27/1973, SG 16/1977, SG 28/1982, SG 30/1990; SG 12 and SG 56/1993, SG 83 and SG 104/1996, SG 83 and 103/1999):1. In Article 166 (1) after the words "by recordation", the text - "in the property register" shall be inserted.2. In Article 169 Paragraph (1) shall be repealed.3. In Article 171 the text "in respect of the mortgage, shall be noted in the contract or in the mortgage application", shall be replaced by the text: "shall be done in writing, with notarisation of the signatures, and shall be recorded in the property register".4. In Article 175 (2), sentence 2, after the words "to the recordation", the text- "in the property register" shall be inserted.5. In Article 179 (2), the second sentence shall be amended as follows:"It shall be effected by making a note in the mortgaged property account."6. In Article 237 at the end of Paragraph (1), the text "in the property register" shall be added. 12. The following amendments and supplements shall hereby be made to the Ownership Act (Promulgated Izvestiya SG 92/1951; amended: SG 12/1958, SG 90/1960; SG 99/1963, SG 26 and SG 27/1973, SG 54 and SG 87/1974, SG 55/1978, SG 36/1979, SG 19/1985, SG 14 and SG 91/1988, SG 38/1989, SG 31/1990, SG 77/1991, SG 33/1996, SG 100/1997 and SG 90/1999):1. In Article 100: a) the existing text shall become Paragraph (1), and at the end thereof, the words "in the property register" shall be added;b) a new Paragraph (2) shall be inserted, as follows:"The statement relinquishing the right of ownership as per Paragraph (1) may be withdrawn prior to recordation thereof in the property register."2. In Article 112: "a) at the end of indent (a), a coma shall be placed and the following text shall be added: "as well as deeds and other documents whereby such rights are recognized";b) a new indent (i) shall be inserted as follows:"i) Transcripts of the wills made in respect of immovable property and rights over immovable property." 13. In Article 67 (2) of the Succession Act (Promulgated SG No. 22/1949, corrected: SG 41/1949; amended: SG 275/1950, SG 41/1985 SG 60/1992 and SG 21/1996 (Resolution No. 4/1996 of the Constitutional Court); amended: SG 104/1996, SG 117/1997, SG 96/1999), the words "by recordation pursuant to the provisions of the Privileges and Mortgages Act" shall be replaced by "by recordation in the accounts of immovable properties of the legator pursuant to the provisions of the Cadastre and Property Register Act". 14. Article 158 (2) of Judicial System Act (Promulgated SG 59/1994; Resolution No. 8/1994 of the Constitutional Court of the R.B. - SG 78/1994; Resolution No. 9/1994 of the Constitutional Court of the R.B. - SG 87/1994; Resolution No. 17/1995 of the Constitutional Court of the R.B. - SG 93/1995; supplemented: SG 64/1996; Resolution No. 19/1996 of the Constitutional Court of the R.B. - SG 96/1996; amended: SG 104 and SG 110/1996, SG 58, SG 122 and SG 124/1997, SG 11 and SG 133/1998; Resolution No. 1/1999 of the Constitutional Court of the R.B. - SG 6/1999) shall be amended as follows:"(2) The recordation judge shall effect the recordations in the property register and shall perform the duties of a notary public pertinent to notations and deletion thereof, the issuance of transcripts from recordation books and any other duties as provided by law." 15. The following amendments and supplements shall be made to Article 18 of the Local Taxes and Fees Act (Promulgated SG 117/1997; amended and supplemented: SG 71/1998, SG 83, SG 105 and SG 153/1998, SG 103/1999):1. In Paragraph (1) the words "of the municipality" shall be deleted;2. In Paragraph (2) the words "cadastral and other" in parentheses shall be deleted;3. A new Paragraph (3) shall be inserted, was follows:"(3) Data from the cadastre as per Paragraph (2) shall be provided pursuant to the provisions and procedure of the Cadastre and Property Register Act." 16. (Amended, SG No. 36/2004) For purposes of creation of the property register, the Minister of Justice shall:1. ensure the introduction of the software necessary for making recordations by the nominal system and for entering data in the preliminary accounts;2. ensure the transformation into digital format on a magnetic, optical or other data carrier of the data currently available in the recordation books and their registration in the preliminary accounts. 17. Prior to the entry into force of this Act, the Council of Ministers shall submit proposals for relevant amendments and supplements to acts whereby the establishment of cadastres on behalf of government institutions and agencies is provided for . 18. Prior to the entry into force of this Act, the Council of Ministers shall approve the programs as per Article 94 (2). 19. This Act shall enter into force as of January 1st, 2001, except for Article 4 and Arts. 10 through 22, which shall enter into force on the day of promulgation thereof in State Gazette.TRANSITIONAL AND FINAL PROVISIONSto the Act on Amending and Supplementing the Cadastre and Property Register Act(SG No. 36/2004) 39. Proceedings that had been underway but not completed towards the date of entry into force of this Act, pertinent to the production of a cadastral map and cadastral registers in respect of one property or a group of properties, shall be concluded pursuant to the provisions of Article 49a. 40. (1) Proceedings that had been underway but not completed towards December 31, 2000, pertinent to the approval of cadastral plans pursuant to the now repealed Unified Cadastre of the People's Republic of Bulgaria Act, shall be concluded pursuant to the provisions of this Act.(2) The date of submission of a cadastral plan for consideration and approval by the competent agency shall be constued as commencement of the proceedings pertinent to approval thereof.(3) Cadastral plans assigned for development prior to December 31, 2000, shall be completed pursuant to the legislative provisions and requirements for development thereof, in effect towards the moment of entry into force of the procurement contract. Such plans shall be adopted, communicated to the interested parties and approved subject to the provisions this Act.(4) Cadastral plans which have not been approved pursuant to the established procedure, but conform in terms of content and accuracy to the requirements prescribed by the ordinance as per Article 31, shall be approved subject to the provisions of this Act.(5) Approved cadastral plans shall be maintained subject to the provisions of 4 (1), item 2. 41. Pending the approval of a cadastral map and cadastral registers for the respective area, the approved cadastral maps and cadastral registers as per Article 35b shall be maintained subject to the provisions of the ordinance as per Article 31. 42. Pending the approval of a cadastral map and cadastral registers for the respective area, any buildings and facilities built on farm land and in forest territories shall be indicated in the maps and plans approved subject to the procedure as per the Agricultural Land Ownership and Use Act and the Act Restoring Ownership of Forests and Forest Stock Land Tracts . Such indication shall be effected upon payment by the investors of a fee pursuant to the tariff as per Article 31 (2) of the Ownership and Use of Farm Lands Act . The Ministry of Agriculture and Forests shall administer proceeds from such fees. 43. Ongoing proceedings as per the now repealed Paragraph (6) of 6 of the Transitional and Final Provisions of the Spatial Development Act pertinent to the completion or correction of cadastral plans, initiated prior to the entry into force of this Act, shall be concluded subject to the procedure as established heretofore. 44. Within one month from the date of entry into force of this Act, the Council of Ministers shall adopt Rules of Organization of the Recordation Agency. 45. (1) Within three months from the date of entry into force of this Act, the Council of Ministers shall allocate a suitable building for the Recordation Agency.(2) The Council of Ministers, subject to a proposal by the Minister of Justice, shall provide for the needs and use of the recordation offices under the Recordation Agency premises within the buildings provided for the needs of the district courts. 46. The Minister of Justice shall approve the structure and the staff of the Recordation Agency. 47. (Effective 31.07.2004) (1) Employment relations with the recordation officers at the district courts shall be governed by the provisions of Article 123 of the Labour Code. (2) Employment relations with employees of the court administration performing the duties of recordation officer shall be governed by the provisions of Article 111 of the Labour Code until the appointment of a tenured official at the recordation office. 48. The part of the archive of the district courts containing the archive materials of the recordation offices shall be handed over to the Recordation Agency. 49. Within three months from the entry into force of this Act the Minister of Regional Development and Public Works shall approve standard forms of the combined sketch attesting to full or partial identity of the boundaries of a landed property as per Article 16 (3), and of the sketch as per 4 (1), item 1.TRANSITIONAL AND FINAL PROVISIONSunder the Geodesy and Cartography Act(SG No. 29/2006)........................................................................ 7. In the Cadastre and Property Register Act (promulgated in SG No 34/2000, amended SG No. 45 and 99/2002, SG No. 36/2004, SG No. 39 and 105/2005) the following amendments and supplements shall be made:........................................................................17. Everywhere in the Act the words "Cadastre Agency", "cadastre service", "the cadastre service", "cadastre offices" and "the cadastre offices" shall be replaced respectively with "Geodesy, cartography, and cadastre agency", "service on geodesy, cartography and cadastre", "the service on geodesy, cartography and cadastre", "geodesy, cartography and cadastre offices" and "the geodesy, cartography and cadastre services". For more information visit www.solicitorbulgaria.com id: 324 Fri, 01 Aug 2008 07:28:07 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-cadastre-and-property-register-act http://web.solicitorbulgaria.com/index.php/bulgarian-cadastre-and-property-register-act http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/CADASTRE_AND_PROPERTY_REGISTER_ACT.jpg EUR http://web.solicitorbulgaria.com/index.php/bulgarian-cadastre-and-property-register-act legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Article 1(Amended, SG No. 31/1990)This Act regulates ownership, other real rights and their acquisition, loss and protection, as well as possession and recording.Article 2(1) (Amended, SG No. 31/1990) Ownership may belong to the state, municipalities, cooperatives and other juristic persons and citizens.(2) (Amended, SG No. 33/1996) All kinds of ownership shall enjoy equal opportunities for development and protection.Article 3(Repealed, SG No. 31/1990)Chapter OneSTATE AND MUNICIPAL OWNERSHIP(Previous Heading of Chapter One, Amended SG No. 31/1990)Articles 4-5(Repealed SG No. 31/1990)Article 6(Amended SG No. 31/1990; SG No. 77/1991; SG No. 33/1996)State and municipal ownership shall be public and private.Article 7(Amended SG No. 31/1990; SG No. 33/1996)The status of all state and municipally-owned objects shall be determined by way of separate acts.Article 8(Repealed SG No. 33/1996)Articles 9-10(Repealed SG No. 91/1988)Article 11(Amended SG No. 99/1963; Repealed SG No. 91/1988)Article 12(Repealed… For more information visit http://www.solicitorbulgaria.com id: 325 Article 1(Amended, SG No. 31/1990)This Act regulates ownership, other real rights and their acquisition, loss and protection, as well as possession and recording.Article 2(1) (Amended, SG No. 31/1990) Ownership may belong to the state, municipalities, cooperatives and other juristic persons and citizens.(2) (Amended, SG No. 33/1996) All kinds of ownership shall enjoy equal opportunities for development and protection.Article 3(Repealed, SG No. 31/1990)Chapter OneSTATE AND MUNICIPAL OWNERSHIP(Previous Heading of Chapter One, Amended SG No. 31/1990)Articles 4-5(Repealed SG No. 31/1990)Article 6(Amended SG No. 31/1990; SG No. 77/1991; SG No. 33/1996)State and municipal ownership shall be public and private.Article 7(Amended SG No. 31/1990; SG No. 33/1996)The status of all state and municipally-owned objects shall be determined by way of separate acts.Article 8(Repealed SG No. 33/1996)Articles 9-10(Repealed SG No. 91/1988)Article 11(Amended SG No. 99/1963; Repealed SG No. 91/1988)Article 12(Repealed SG No. 31/1990)Articles 13-17(Repealed SG No. 33/1996)Article 18(Amended, SG No. 33/1996, No. 32/2005) Contracts, whereby acquisition or disposal of properties in private state or municipal ownership is conducted, shall be executed in writing upon the order of the registrations judge, having competence over the location of the property. The notarial form shall not be required"Article 19(Supplemented, SG No. 31/1990)The right of ownership of state and municipal immovable properties may also be established with a document issued on the basis of the registers kept for these properties.Article 20(Repealed SG No. 33/1996)Article 20a(Amendment enacted Izvestya No. 12/1958; amended No. 90 /1960; SG No.36/1979; SG No. 91/1988; repealed SG No. 31/1990)Article 21(Repealed SG No. 33/1996)Articles 22-24(Repealed SG No. 31/1990)Article 25(Repealed SG No. 33/1996)Articles 26-27(Repealed SG No. 31/1990)Chapter TwoPRIVATE OWNERSHIP(Heading amended SG No. 31/1990)Article 28(Amended SG No. 31/1990; SG No. 31/1990; SG No. 33/1996)(1) Property of natural and legal persons may be all belongings with the exception of those which under the Constitution of the Republic of Bulgaria are exclusive state property or, under this Act, are public, state or municipal possessions.(2) The right of natural and legal persons to own realties and belongings, related to such activities for which state monopoly has been established, may be prohibited by a specific act.Article 29(Supplemented, SG No. 26/1973, amended, SG No. 31/1990,SG No. 33/1996, SG No. 59/2000, amended SG No. 24/2007) Non-resident natural and juristic persons may acquire the right of ownership in land under the terms of an international agreement ratified under the terms of Article 22 (2) of the Constitution of the Republic of Bulgaria which has been promulgated and entered into force, and non-resident natural persons - also in cases of legal succession.Citizens of EU Member States or of Member States under the European Economic Space Agreement may acquire the right of ownership in land in accordance with the requirements laid down in law in compliance with the Treaty concerning the Accession of the Republic of Bulgaria to the European Union.Juristic persons from EU Member States or from Member States under the European Economic Space Agreement may acquire the right of ownership in land under the terms of Paragraph 2.Non-resident natural and juristic persons may acquire the right of ownership in premises and limited real rights in a real estate in the country unless provided otherwise by law.A foreign country or intergovernmental organization may acquire the right of ownership in land, premises and limited real rights in a real estate in the country pursuant to an international agreement, law or act of the Council of Ministers.A foreign country may not acquire the right of ownership in a real estate in the country by inheritance.Article 29a(New, SG No. 24/2007)The persons under Article 29 (2), who do not reside permanently in the Republic of Bulgaria, may acquire land for a second residential property after expiry of the time limit stipulated under the Treaty concerning the Accession of the Republic of Bulgaria to the European Union. Chapter ThreeJOINT OWNERSHIPArticle 30(1) (Amended SG No. 31/1990) The right of ownership may belong jointly to two or more persons - the state, municipalities and other juristic and natural persons.(2) The shares of the persons shall be deemed equal until proven otherwise.(3) Each joint owner shall participate in the benefits and burdens of the common property in proportion with his share.Article 31(1) Each joint owner may use the common property in accordance with its purpose and in such manner as not to interfere with the other owners' use according to their rights.(2) When the common property is used personally only by some of the joint owners, they shall owe compensation to the remaining joint owners for the benefits of which the latter are deprived from the date of written request.Article 32(1) The common property shall be used and managed in accordance with the decision of the joint owners owning more than half of the common property.(2) If a majority cannot be formed or if the majority's decision is harmful to the common property the regional court, at the request of any of the joint owners, shall settle the issue and take the required measures and, if necessary, appoint an administrator of the common property.Article 33(1) A joint owner may sell his share of the immovable property to a third party only after presenting proof in writing to the notary public that he has made an offer to the other joint owners to purchase the said share under the same conditions and declaring in writing that none of the said joint owners has accepted the offer.(2) If the declaration under the previous paragraph proves to be false or if the third party purchases the joint owner's share under conditions agreed to fictitiously to the detriment of the other joint owners, the interested joint owners may purchase the said share under the actually agreed upon conditions. The action must be brought within two months of the sale.(3) Where a joint owner has not paid the due sale price within one month of the entry into force of the decision, the said decision shall become null and void ex lege.Article 34(1) Each joint owner may, despite an agreement to the contrary, ask for a partition of the common property, except where the law provides otherwise or if this is incompatible with the nature and purpose of the property.(2) The provisions for the partition of an inheritance shall apply mutatis mutandis to the partition of an immovable property.(3) There shall be no limitation period for the action for partition.Article 35(1) (Amended SG No. 33/1996) The voluntary partition of movables exceeding in value 50 000 leva, as well as of immovable properties, shall be done in writing with notarially certified signatures.(2) When incapacitated or absent persons are taking part in the partition, the authorization of the regional court must be obtained.(3) (Amended Izvestya No. 12/1958; SG No. 87/1974; SG No. 91/1988; repealed SG No. 31/1990)Article 36(Amended Izvestya No. 12/1958; SG No. 87/1974; SG No. 31/1990)The joint ownership of the state or a municipality may be terminated, other than through a partition, through the sale of the share of the state or the municipality, through the transfer of the ownership of another equivalent property or through the buying out of their share under conditions and through a procedure to be determined by the Council of Ministers.Chapter FourCONDOMINIUM OWNERSHIPArticle 37(Amended SG No. 31/1990)Floors or parts of floors, together with belonging to them premises in the attic or basement, may be owned by individual owners - the state, municipalities and other juristic or natural persons.Article 38(1) In buildings in which floors or parts of floors are owned by different owners, common for all owners are the land on which the building is constructed, the courtyard, the foundations, the external walls, the internal dividing walls between separate parts, the internal supporting walls, columns, cross beams, floor slabs, trimmer joists, staircases, landings, roofs, walls between attic and basement premises of the individual owners, chimneys, external entrance doors to the building, and the doors to the common parts of the attic and basement, the main lines for all manner of installations and their central outfits, elevators, drain-pipes, the janitor's apartment and everything else which by its nature or purpose serves for common use.(2) It may be agreed upon that the parts of the building which serve only some of the individually owned floors or parts of floors are common only to the persons whose premises they serve.(3) Common parts may not be partitioned.Article 39(1) The owners may partition the common building by floors or parts thereof.(2) In the same manner the common building may be partitioned through the court, if the individual floors or parts of floors may be used separately without significant adjustments and without inconveniences greater than the ordinary.Article 40(1) The shares of the individual owners in the common parts shall be proportional to the ratio between the value of the individual premises which they own, calculated at the time of establishing the condominium ownership. Later changes in individual premises shall not affect the size of the shares.(2) When adding new floors to a condominium ownership the owners of the additional floors or parts thereof shall acquire, for consideration, ownership of all common parts of the building, including the land. The shares of all owners in the common parts shall be determined in accordance with the ratio between the values of the individual premises at the time of finishing the construction.(3) When an owner of a floor or part thereof transfers a separate part of its property to another person, the shares of the transferee and the transferor in the common parts of the building shall be determined by the ratio between the transferred and preserved part at the time of the transfer. The same rule shall apply for a partition.Article 41Each joint owner, in proportion to its share in the common parts, must participate in the expenditures necessary for their maintenance and restoration, as well as in the useful expenditures for which there is a decision of the general meeting.Article 42The management of the common parts of the building in a condominium ownership and the supervision for the performance of occupants' obligations belongs to the general meeting of owners and the elected by it manager or managing council.Article 43(1) The general meeting may adopt decisions if three quarters of the owners are present, either personally or through representatives.(2) Tenants shall also take part in general meetings and shall have the right to vote when decisions are adopted on issues concerning their property interests or condominium regulations. In such cases the general meeting shall adopt decisions if more than half the people who have the right to take part in the meeting are present.(3) If during the first convening the necessary number of persons have not appeared the meeting shall be postponed by one hour, shall have the same agenda and shall be deemed quorate regardless of the number of people present.Article 44(1) The general meeting shall adopt decisions with a majority of more than half the owners present.(2) In the case of paragraph 2 of the previous Article the general meeting shall adopt decisions with the votes of more than half those present.Article 45(1) (Amended SG No. 33/1996) The owner of a floor or a part thereof shall be evicted from the building by a decision of the general meeting where he:a) uses or permits his premises to be used in a way which creates a fire hazard or a threat of considerable damages, andb) (Amended SG No. 33/1996) systematically violates the regulations or the decisions of the general meeting or the rules of decency and good manners.(2) The general meeting may adopt an eviction decision only after the owner has been warned in writing by the manager that it will be evicted from the property and if after such notice it does not discontinue the violation.Article 46(1) The owner may request that the regional court rescind the general meeting's eviction decision through a procedure to be established by the regulation under Article 49.(2) (Amended, SG No. 59/2007) On the basis of an effective resolution of the general meeting under Article 45, the manager or the chairman of the managing council shall have the option to move for the issuance of an enforcement order according to the procedure established by Article 410 (1) of the Code of Civil Procedure. Article 47(1) The manager or chairman of the managing council shall represent the owners in the performance of any acts, including in a court of law, which are related to the ordinary management of the condominium ownership. For acts which are beyond such ordinary management the manager or chairman of the managing council shall represent the owners only when authorized by the general meeting.(2) The manager or the chairman of the managing council shall represent in a court of law the owners jointly for actions brought against them in connection with the common parts.(3) Each owner may personally take part in the trial in which the manager is representing the owners.Article 48(Repealed SG No. 55/1978)Article 49(1) The rules for management, for the maintenance of order and the supervision of the use of the building, as well as the rules concerning the manner of rescinding general meeting decisions and the procedure through which they will not be carried out, shall be set forth in a special regulation introduced by the Minister of Justice and approved by the Council of Ministers.(2) (Amended, SG No. 33/1996, 90/1999) For violations of the regulation the general meeting may give the manager or the chairman of the managing council the right to impose fines from 1 to 60 BGL in favour of the condominium.Chapter FiveRESTRICTIONS ON OWNERSHIPArticle 50An owner of an immovable property shall not perform such acts in its property which create obstacles, greater than the usual, for the use of an adjacent property.Article 51When, for the performance of some work in a property, it is necessary to enter another property the owner of the latter property must provide access.Article 52(Amended SG No. 54/1974; 36/1979, 33/1996)Trees may not be planted near a neighbour's property at a distance less than 3 metres for high trees, 1,5 metres for trees of medium height and 1 metre for low trees. A neighbour shall ask for a permission from the Mayor of the respective municipality, precinct or mayorship to cut off tree branches which extend over his/her property, as well the roots which cross into his/her property. Under the same procedure an owner may require that trees which have been planted closer than the above mentioned distances be moved.Article 53The restrictions on ownership related to urbanization and health care purposes shall be set forth in separate laws.Article 54Obligations related to the ownership or running of the property may be assigned by a decision of the Council of Ministers.Chapter SixREAL RIGHTS OVER ANOTHER'S PROPERTYArticle 55Real rights over another's property, to the extent that they are provided for by laws, may be acquired or created through legal transaction, prescription or other methods provided for by law.Section IRight of UseArticle 56(1) The right of use includes the right to use the property in accordance with its purpose and the right to the benefits thereof without causing any essential changes to it.(2) The user cannot transfer his right.Article 57(1) The user must pay the expenses related to the use, including taxes and other charges, maintain the property in the state in which it was received, and return the property to the owner after the termination of the right of use.(2) An inventory must be taken when handing over the property. In the absence of such inventory it shall be deemed, until proven otherwise, that the property was handed over in a good condition.(3) The user shall not be held liable for the wear and tear of the property which are due to normal use.(4) The user must insure the property in favour of the owner and pay the insurance premiums unless otherwise decreed or agreed.Article 58The user shall inform the owner of any trespass on the ownership.Article 59(1) The right of use shall be terminated with the death of the user if a shorter period is not agreed upon.(2) The right of use created in favour of a legal entity shall be terminated with its winding up if it is not created for a shorter period.(3) The right to use shall be terminated with the perishing of the property or if it is not exercised for five years.Article 60Contracts concluded by the user for leasing fields shall remain in force until the end of the current agricultural year if the right of use is terminated earlier.Article 61The owner may request from the court that the right of use be terminated if the user, despite being warned, continues to use the property in a way which threatens it with destruction or significant damage, constitutes a fundamental breach of obligations or fundamentally alters the property.Article 62(Amended SG No. 31/1990; SG No. 33/1996)Concerning the right of use of a state or municipal property, the provisions of this section shall apply unless otherwise provided in an act of legislation or in a specific act for the creation of such right.Section IIOwnership of a buildingArticle 63(1) The owner may cede to another person the right to construct a building on its land, whereby the other person becomes owner of the building.(2) The owner of the land may also transfer independently from the land the ownership of an already existing building.(3) Ownership of a building independently from the underlying land may also be created through voluntary partition.Article 64The owner of a building may use the land to the extent that is necessary for the use of the building according to its purpose, unless the act with which the right is ceded contains another provision.Article 65When the right of use of a building is created with a fixed time period, after the expiration of said period the ownership of the building shall pass gratuitously to the owner of the land.Article 66(1) The owner of the building may sell it to a third party, the provisions of Article 33 applying mutatis mutandis.(2) (New, SG No. 33/1996) The right to erect a building shall not lapse if the building or a portion thereof is lost, unless otherwise provided in the in the act for the creation of such right.(3) (New, SG No. 33/1996) The subject of the right of construction may as well be such construction which lies under the surface of the ground.(4) (New, SG No. 33/1996) The right to erect an additional storey or the right to add to a building shall be allowed for superstructure or outbuilding, respectively, to an already existing edifice.Article 67(1) The right to construct a building on another's land (Article 63, paragraph 1) shall be extinguished in favour of the owner of the land through limitation if it is not exercised within 5 years.(2) (New, SG No. 87/1974; amended SG No. 91/1988; SG No. 31/1990, repealed, SG No. 33/1996)Chapter SevenPOSSESSIONArticle 68(1) Possession is the exercise of de facto power over a property which the possessor holds, either personally or through another, as his own.(2) Holding means exercising de facto power over a property which the person does not hold as his own.Article 69It shall be deemed that the possessor holds the property as its own until proven that he holds it for another.Article 70(1) The possessor shall be deemed to possess in good faith when he possesses the property on a legal basis fit to make him an owner, without knowing that the transferor is not an owner or that there is a defect in the form prescribed by the law. It is sufficient that the good faith exists at the time of the arising of the legal basis.(2) Good faith shall be presumed until proven otherwise.(3) Where possession has been handed over on the basis of a preliminary contract concluded with the property owner, the possessor shall have the rights under Articles 71 and 72.Article 71A bona fide possessor may use the property and enjoy the benefits derived from it until the bringing of the action for its return.Article 72(1) A bona fide possessor may ask, for the improvements made by him, the sum with which the value of the property has increased as a result of such improvements. Such increase shall be determined as of the date of the judgement rendered by the court.(2) A bona fide possessor may ask that he be reimbursed for the necessary expenditures made for the preservation of the property.(3) He may hold the property until reimbursed for the improvements and the expenses.Article 73(1) A mala fide possessor shall owe the owner the benefits which he has derived or could have derived, as well as compensation for the profits of which he has deprived the owner, deducting the expenditures made for this purpose.(2) The mala fide possessor may ask that he be reimbursed for the necessary expenditures made by him for the preservation of the property.Article 74(1) A mala fide possessor may ask, for the improvements made by him, only the lesser sum of the sum total of all expenditures and the sum with which the value of the property has increased as a result of such improvements.(2) Where the owner has known that improvements are being made on its property and has not objected, the rights of the possessor shall be arranged in accordance with Article 72.Article 75The possession of an immovable property or a real right over such property, including servitus which has continued for more than six months, may be defended against any violation. The action must be brought within six months.Article 76A possessor or a holder whose movable or immovable property has been taken through violent means or through concealment may, within six months, request that it be returned by the person who has taken it. This does not exclude the right of the person which has taken the property to bring an action under the previous Article.Chapter EightACQUIRING AND LOSING THE RIGHT OF OWNERSHIPArticle 77The right of ownership may be acquired through legal transaction, through prescription or through other means provided by the law.Section IAcquiring Movable Property through Possession in Good FaithArticle 78(1) (Amended, SG No. 100/1997) Whoever has acquired for consideration the possession of a movable property or security to the bearer on a legal basis, even if not from the owner, but without knowledge of that fact, shall acquire the ownership. The same rule shall also apply to acquiring other real rights over a movable property.(2) (Amended SG No. 31/1990) The owner of a lost or stolen property may seek such property from a bona fide possessor within three years from the its being stolen or lost. This rule shall not apply when the possessor has acquired the property from a state or municipal enterprise.Section IIAcquiring the Right of Ownership through PrescriptionArticle 79(1) The right of ownership of immovable property through prescription shall be acquired through continuous possession for 10 years.(2) If the possession is in good faith the ownership shall be acquired with continuous possession for 5 years.Article 80(1) A movable property shall be acquired through prescription with continuous possession for 5 years.(2) Whoever acquires the possession of a movable property through a crime cannot acquire the ownership through prescription.Article 81With the closing of the possession for more than six months the prescription period shall be interrupted.Article 82The possessor may incorporate the possession of the transferor with his own possession.Article 83Whoever proves that he has possessed during different times shall be deemed to have possessed in the intervals between them as well, unless proven otherwise.Article 84Concerning prescription, in addition to the above rules the provisions of Articles 113, 115, 116, 117 and 120 of the Obligation and Contract Act shall apply mutatis mutandis.Article 85The provisions for acquiring the right of ownership over immovable property through prescription shall apply as well for acquiring other real rights over such property through prescription.Article 86(Amended SG No. 31/1990; SG No. 33/1996)Property which is public, state or municipally owned may not be acquired through prescription.Section IIIFound PropertyArticle 87Whoever finds an immovable property must return it to the owner or to the person who has lost it, after deducting or receiving payment for a reward and expenditures.Article 88(1) (Amended SG No. 33/1996) Where the owner and the person who has lost the property are not known, the person who has found it must immediately turn it over to the relevant "Municipal Property" office.(2) If the owner or the person who has lost the property asks for it within one year after it is found, the property shall be handed over to him after payment of a reward equal to 10 per cent of the value of the property plus the expenditures for transporting and storing. The reward may be reduced by the court, taking into consideration the property status of the person who has lost the property or when the full amount of the reward is excessively high.Article 89(1) (Amended SG No. 31/1990; SG No. 33/1996) If the owner or the person who has lost the property is not found or does not appear within one year, the property shall pass into ownership of the municipality. In this case the provision of Article 78, paragraph 2 shall not be applied.(2) Properties which spoil rapidly or the safekeeping of which is expensive shall be sold and the sum received shall be disposed of with in accordance with the previous paragraph.Article 90(Repealed SG No. 33/1996)Article 91(1) Properties buried in the ground, walled in or hidden in another manner, the owner of which cannot be found, shall become the ownership of the state.(2) The person who has found them shall have the right to a reward equal to 25 per cent of their value.Section IVAccretionArticle 92The owner of the land is the owner of the buildings and plants on it except where something else has been agreed upon.Article 93The benefits from the property, such as fruits, increase of cattle, rent payments, etc. shall belong to the owner.Section VProcessing and IncorporatingArticle 94(1) A person who has made a new item out of another's material shall become its owner if the value of the processed item exceeds the value of the material and if the person did not know that the material belonged to another.(2) Otherwise, the owner of the material shall become the owner of the property having the right, though, to give it up.Article 95(1) When the property is made of materials which belong to different owners, the owner of the property shall be the person to whom the main material belongs.(2) If none of the materials may be identified as main a joint ownership over the property shall arise.Article 96In the cases under the previous two paragraphs the person who becomes the owner of the new property shall owe compensation for the value of the material or for the processing, as well as for other damages if such exist.Article 97When another's property has been incorporated as a part of a main property in such a way that it may not be separated without causing significant damage to the main property the owner of the latter property shall acquire the ownership over the adjoined part as well.Article 98The incorporation shall follow the main property in the absence of an agreement to the contrary.Section VILosing the Right of OwnershipArticle 99The right of ownership shall be lost if another person acquires it or if the owner renounces it.Article 100(Amended SG No. 34/2000)(1) Renouncing the right of ownership over immovable property shall be effective only if done in writing with notarially certified signatures and if recorded in the property register.(2) The statement of renouncement of the right of ownership under paragraph (2) may be withdrawn prior to the recordation of the renouncement in the property register.Section VIIExpropriation of Property for State and Municipal NeedsArticle 101(Amended SG No. 38/1989; SG No. 33/1996)For such especially important needs of the State and the municipalities, which cannot be otherwise satisfied, properties may be alienated under such terms and in such order as shall be prescribed by the law and following the payment of a tantamount compensation in advance.Articles 102-105(Repealed SG No. 33/1996)Article 106(Repealed SG No. 38/1989)Article 107(Repealed SG No. 33/1996)Chapter NinePROTECTION OF THE RIGHT OF OWNERSHIPArticle 108The owner may request its property from any person which possesses or holds it without grounds to do so.Article 109(1) The owner may request the discontinuing of any act without grounds which creates obstacles for the exercising of his right.(2) (Repealed, SG No. 33/1996)Article 109a(New, SG No. 33/1996)The owner of a real estate is entitled to request fixing of boundaries between his/her estate and the adjacent estates.Chapter TenGENERAL PROVISIONSArticle 110(1) Immovable property is: land, plants, buildings and other structures and, in general, everything which either naturally or through a human act is firmly fixed to the land or to the structure.(2) All other properties, including energy, are movable.Article 111(1) The provisions concerning immovable properties shall also be applied for real rights over immovable property if the law does not decree otherwise.(2) Concerning all other rights the provisions relating to movables shall be applied.(3) The provisions of chapters V-XI shall apply to all types of ownership under Article 2, to the extent that no provision to the contrary exists.Chapter ElevenRECORDINGArticle 112(1) The following shall be recorded:a) (Amended SG No. 87/1974; 33/1996;34/2000) all acts with which the right of ownership is transferred or another real right is created, transferred, altered or terminated for immovable property as well as acts with which such rights are recognized;b) (Amended SG No. 33/1996) contracts with which a decedent's estate which includes immovable property is transferred;c) acts for renouncing real rights over immovable property;d) agreements for the partition of immovable property, as well as court partition protocols concerning such properties;e) applications of the creditors of the decedent or of the devises for separating the immovable properties for a period longer than one year;f) rent contracts for a term exceeding one year;g) settlements on disputes concerning acts which themselves are subject to recording, andh) court judgements which have entered into force, which supplant the acts under (a), as well as judgements with which the existence of acts subject to recording pursuant to the previous points is established.i) (New SG No. 34/2000) transcripts of announced last wills and testaments pertaining to real estate and rights over real property.Article 113Acts under the previous Article, prior to their recording, may be defeated by third parties which have earlier acquired from the same owner and recorded real rights over an immovable property.Article 114(1) The following must be recorded:a) complaints for the avoidance, declaring the invalidity, the repeal or nullification of acts subject to recording.(2) (Amended SG 33/1996) When the recording of the complaint is provided for with an explicit provision of the law, they shall have upon third parties the effect indicated in the relative provision. In the absence of such a provision the recording shall only serve to make public the court dispute concerning properties;b) (Amended SG 33/1996) complaints for a judgement for concluding a final contract with which a real right over immovable property is transferred or created.(3) (Amended SG 33/1996) Acquired real rights and imposed attachments on immovable property after the recording may be defeated by the plaintiff. The state or the municipality, for its claims against the transfer or which have become executable before the date of transfer or creation of the real right, may divert its claim against the property no matter in which hands it is, andc) complaints for other judgements under Article 112 (h). Real rights acquired by third parties after the recording may be defeated by the plaintiff.(4) The courts shall not initiate proceedings on complaints under the previous paragraph until they have been recorded.Article 115(1) Judgements which have entered into force and have been rendered upon complaints pursuant to the previous paragraph, shall be entered upon presentation of a copy of the judgement.(2) In the judgement granted for the plaintiff the court shall give him a six-month period to make such entry. After the expiration of the said period the recording of the complaint shall lose its effect.(3) The court shall not issue a copy of the judgement under Article 19, paragraph 3 of the Obligation and Contract Act until the plaintiff has proven that the expenses for the transfer of the property have been paid, as well as the taxes and other obligations of the transferee to the state.(4) If the complaint has not been recorded the judgement rendered upon it shall not have effect vis a vis third parties except from the day it is recorded.Article 116The details concerning the manner of recording and the fees payable for recording shall be provided for in the Regulation on Recording approved by the Council of Ministers.TRANSITIONAL PROVISIONS 1. This Act shall enter into force one month after publication and shall repeal:1. the Property, Ownership and Servitus Act.2. The Privileges and Mortgages Act.3. The State Properties Act.4. The Condominium Ownership Act.5. The Housing Construction and Management of the Housing Stock Act.6. The Arranging the Ownership and Pledge of Agricultural and Transportation Machinery of a Considerable Value Act.7. The Prescription and Limitation Act.8. The Act against Speculation with Immovable Property.9. Article 974 of the Civil Procedure Act. 2. Article 84 of the Compulsory Military Service Act shall be amended as follows:"When transferring motor vehicles the seller and the buyer must inform in writing not later than ten days the Control on Automobile Transport Department of the Ministry of Internal Affairs." 3. The right of ownership and other real rights acquired prior to the entry into force of this Act shall be preserved. 4. Concerning prescription, which has begun to run under the repealed Prescription and Limitation Act, the provisions of this Act shall apply if for the completion of the prescription period a longer period of time is required than under this Act. 5. The references to various acts in the provisions of the acts repealed in ? 6. (New, SG No. 87/1974) Citizens to whom the surface right has been recognized on regulated state plots, ceded or occupied by them prior to December 15, 1951 and built up prior to September 1, 1956, shall have the right when transferring or alienating the properties to receive the full price for the surface right. 7. (New, SG No. 87/1974) The provision of Article 67, paragraph 2 shall also apply to existing prior to its enactment cases when the property has not been built up and continues to be in the possession of the person to which the surface right was ceded, or by its successors, if it has not been revoked by the executive committee of the municipal council prior to the entry into force of this provision.ACT FOR THE AMENDMENT AND SUPPLEMENTTO THE OWNERSHIP ACTPromulgated State Gazette No 33/19.04.1996, effective 1.06.1996TRANSITIONAL AND CONCLUDING PROVISIONS 27. (1) The persons who have acquired the right of construction on state- and municipally owned land before 13 July 1991, shall have the right to acquire ownership in such land at such prices as shall be set by the Council of Ministers.(2) The persons who have acquired a share of the right of construction on state- and municipally owned land before 13 July 1991, shall have the right to acquire the corresponding share of the ownership in such land at such prices as shall be set by the Council of Ministers. 28. This Act shall enter into force on the 1st day of June 1996.This Act was passed by the 37th National Assembly on the 5th day of April 1996 and the State Seal has been affixed to it.Lev Re-denomination Act Promulgated, State Gazette No. 20/5.03.1999,amended, SG No. 65/20.07.1999 (effective 5.07.1999).TRANSITIONAL AND FINAL PROVISIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. (1) (Amended, SG No. 65/1999) Upon the entry of this Act into force, all figures expressed in old lev terms as indicated in the laws which will have entered into force prior to the 5th day of July 1999 shall be replaced by figures expressed in new lev terms, reduced by a factor of 1,000. The replacement of all figures expressed in old lev terms, reduced by a factor of 1,000, shall furthermore apply to all laws passed prior to the 5th day of July 1999 which have entered or will enter into force after the 5th day of July 1999.(2) The authorities, which have adopted or issued any acts of subordinate legislation which will have entered into force prior to the 5th day of July 1999 and which contain figures expressed in lev terms, shall amend the said acts to bring them in conformity with this Act so that the amendments apply as from the date of entry of this Act into force.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. This Act shall enter into force on the 5th day of July 1999.Act to Supplement the OWNERSHIP ACT(SG No. 46/2006, effective 1.06.2006, amended, SG No. 105/22.12.2006,SG No. 113/2007, effective 31.12.2007) 1. (Amended, SG N0. 105/2006, SG No. 113/2007) The statutory limitation term for acquiring government and municipal real estate properties shall stop to run by 31 December 2008. For more information visit www.solicitorbulgaria.com id: 325 Fri, 01 Aug 2008 07:35:02 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-ownership-act http://web.solicitorbulgaria.com/index.php/bulgarian-ownership-act http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/OWNERSHIP_ACT.JPG EUR http://web.solicitorbulgaria.com/index.php/bulgarian-ownership-act legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) I. General DispositionsArticle 1. (Amended, Izvestiya No. 14/1957) (1) (Amended, SG No. 87/2002) When using parts of a building to which he has title any inhabitant of a floor or part thereof shall be obligated not to do or allow anything that may place the building at risk of fire or considerable damage.(2) (Amended, SG No. 87/2002) That inhabitant may not, without the agreement of the general meeting, engage in activity that may create for the inhabitants of the other premises larger than usual inconvenience.(3) (Amended, SG No. 87/2002) Upon using own parts of the condominium building an inhabitant shall be obligated to abide by good morals.Article 2. (1) (Amended, SG No. 87/2002) Each holder of title shall be entitled to reconstruct own parts (individual units) of the building without changing or occupying premises, spaces or parts thereof intended for common usage and without endangering the bearing capacity of the building structure and the fire safety and safe use of said building.(2)… For more information visit http://www.solicitorbulgaria.com id: 326 I. General DispositionsArticle 1. (Amended, Izvestiya No. 14/1957) (1) (Amended, SG No. 87/2002) When using parts of a building to which he has title any inhabitant of a floor or part thereof shall be obligated not to do or allow anything that may place the building at risk of fire or considerable damage.(2) (Amended, SG No. 87/2002) That inhabitant may not, without the agreement of the general meeting, engage in activity that may create for the inhabitants of the other premises larger than usual inconvenience.(3) (Amended, SG No. 87/2002) Upon using own parts of the condominium building an inhabitant shall be obligated to abide by good morals.Article 2. (1) (Amended, SG No. 87/2002) Each holder of title shall be entitled to reconstruct own parts (individual units) of the building without changing or occupying premises, spaces or parts thereof intended for common usage and without endangering the bearing capacity of the building structure and the fire safety and safe use of said building.(2) (Repealed, SG No. 87/2002).(3) (Amended, SG No. 76/1978, SG No. 87/2002) Changes and reconstructions of the buildings or parts thereof shall be made in accordance with the provisions of the Spatial Development Act. Article 3. (1) (Amended, Izvestiya No. 14/1957, renumbered from Article 3; amended, SG No. 87/2002). Each inhabitant shall be entitled to use the common areas of the building according to their purpose, providing that inhabitant does not thereby hinder the other inhabitants in using them or does not encroach upon their title to use their separate premises. He/she shall be obligated to provide access in own premises for investigation, design, measurement or building and erection works related to improvements, repairs or changes of common areas or premises of others in the cases provided by a law.(2) (Amended, SG No. 87/2002) One or more title holders shall be entitled to use common areas of the building on the basis of a decision of the general meeting under conditions and a procedure established by the [relevant] Rules of Internal Organization and Procedure;II. General MeetingArticle 4. (Amended, Izvestiya No. 14/1957) (1) (Amended, SG No. 76/1978, No. 87/2002) The General Meeting of owners shall be entitled to:1. adopt Rules of Internal Organization and Procedure2. elect a management board or a manager for a period of two years;3. elect a supervisory board of no less than three members for a period of three years in the case of condominium with more than 15 housing units, ateliers, garages, shops or other sites to which different owners have title;4. determine monthly cash contributions for covering the costs of management and maintenance of common areas of the building and for other general costs;5. determine the amount of monthly cash contributions for unforeseen costs related to repair of accidents or damages of installations, equipment, systems or other common areas of the building, as well as the manner in which the collected funds shall be kept;6. adopt an annual plan for repairs in the building;7. by end-January each year adopt an annual budget of maintenance fees and costs for the management and maintenance of the common areas and shared use;8. distribute the total costs for lighting, water supply, heating, maintenance, cleaning and other of the common areas and by individual consumers in the case of absence of measurement devices in pursuance to the statutory instruments;9. adopt decisions for rental or gratuitous use of premises, spaces or parts thereof that are common areas of the building;10. determine the manner of storage of collected cash and shall authorize a person or person that shall have the right to operate therewith;11. pass a decision for reconstructions and remodelling in the common areas of the building and. determines the necessary costs therefore;12. authorize the management board or the manager to decide on their own concerning the execution of necessary minor repairs or costs;13. adopt decisions on eviction from building of owner of floor or part of floor in pursuance to Article 45 of the Ownership Act. 14. pass decisions in the cases required by imperative provisions of acting statutory instruments pertaining to heating and water supply, sanitary and hygiene standards and other activities in the condominium;15. resolve all other matters that have not been commissioned for resolution by the management board or the manager.(2) (Amended, SG No. 87/2002) The general meeting shall pass decisions providing at least three-fourths of the title holders are present. The decisions shall be passed with a majority of the votes of title holders attending the meeting.(3) (New, Izvestiya No. 32/1957) In case the necessary number of persons fail to attend at first call, the meeting shall be adjourned for one hour later, with the same agenda, and shall be deemed legal without regard of the number of persons attending.(4) (Renumbered from Paragraph (3), Izvestiya No. 32/1957) The general meeting may not refuse making of costs necessary for the maintenance or restoration of common areas of the building.(5) (Renumbered from Paragraph (4), Izvestiya No. 32/1957; amended, SG No. 87/2002) The Rules of Internal Organization and Procedure shall determine:1. the bodies of condominium management;2. the principles and procedure of budget compilation;3. the conditions and procedure of leasing or permitting gratuitous use of premises, spaces or parts thereof that constitute common areas of the building;4. rules related to the usage and maintenance of the building and the hygiene therein and around it with the provision of safety and peace of the inhabitants thereof;5. sanctions for systematic non-participation in meetings of the general meeting, as well as for other violations of the Rules;6. other requirements related to instructions of the local authorities.Article 5. (Amended, Izvestiya No. 14/1957) (1) (Amended, SG No. 76/1978) In case other inhabitants inhabit the building on individual legal grounds the general meeting, with the participation of title holders and the other inhabitants on individual legal grounds, shall resolve the issues pertaining to property interests of the former and the latter, as well as matters pertaining to the use, hygiene and maintenance of the common areas, preservation of internal order in the building and good coexistence between the inhabitants.(2) (Amended, SG No. 73/1979, repealed, SG No. 87/2002).(3) (Supplemented, Izvestiya No. 32/1957; amended, SG No. 76/1978, No. 87/2002) The general meeting referred to in Paragraph (1) may pass decisions in case of the presence of more than half of the title holders and the other inhabitants on individual legal grounds. The decisions shall be passed with a majority of the votes of those attending the meeting. Article 4 (3) shall also apply to these meetings.(4) (Amended, SG No. 76/1978; repealed, SG No. 87/2002).(5) (Amended, Izvestiya No. 32/1957; SG No. 76/1978; repealed, SG No. 87/2002).Article 6. (1) (Amended and supplemented, Izvestiya No. 16/1952, amended, Izvestiya No. 14/1957; SG No. 76/1978) The general meeting shall be convened by the manager or the management board.(2) (Amended, SG No. 73/1979; No. 87/2002) The general meeting may also be convened at the request of one-fifth of the title holders (Article 4) or the title holders and other inhabitants (Article 5). Should the manager or management board fail to convene the general meeting within seven days following a request to that end, it shall be convened by the persons that have requested the convention thereof.Article 7. (1) (Amended, Izvestiya No. 14/1957; SG No. 76/1978) The general meeting shall be convened by personal invitations, which shall be delivered at least three days before the meeting and, in emergency cases, at least 24 hours prior to said meeting.(2) The absent shall be considered invited when the invitation has been attached to the front door of the dwelling, atelier, garage, etc. within the time-limits referred to in the previous paragraph. The persons who live in another nucleated settlement shall be invited by a person of their own choice living in the condominium or, where such a person has not been named, they shall be invited under the procedure for absent persons.(3) Co-owners shall be invited by delivery of the invitation to one of them who shall be obligated to notify the others. When none of the co-owners inhabits the condominium they shall be obligated to name a person living therein through whom the invitations and notifications shall be delivered. In case they fail to do so they shall be invited under the procedure indicated in the previous paragraph.(4) The invitation shall state the agenda. The agenda shall include any issue the deliberation of which an owner or another inhabitant has requested in writing from the manager or the management board prior to the issuance of the invitation.Article 7a. (New, SG No. 76/1978) (1) The owner of one or more independent units (dwelling, atelier, garage, etc.) shall have one vote in the general meeting. Co-owners shall have one vote together. In the case of marital co-ownership the spouses shall have one vote together. The right to vote shall be exercised by the co-owner, spouse or representative thereof attending the meeting.(2) The other inhabitants in an individual dwelling unit, atelier, garage, etc. shall have one vote.Article 8. (1) (Amended, Izvestiya No. 14/1957; SG No. 87/2002) All repairs, improvements and instances of redesign in the common areas and on the common facilities shall be made only by decision of the general meeting of the condominium.(2) (Amended, SG No. 87/2002) The costs for maintenance or restoration of common areas in the condominium for which there is a decision of the general meeting shall be distributed among the owners in proportion with their share in the common areas of the condominium.(3) Costs that are beneficial but are not necessary shall be made in pursuance to a decision of the general meeting passed with a majority of three-fourths of the members attending the meeting.(4) In case in the course of the year the need arises of making costs that have not been calculated in the budget the general meeting shall enter the necessary supplements therein.Article 8a. (New, Izvestiya No. 14/1957, repealed, SG No. 87/2002).Article 9. (Amended, Izvestiya No. 14/1957) (1) (Amended, SG Nos. 76/1978, 73/1979, 87/2002) The costs for lighting, water, maintenance, cleaning, etc. of the common areas of the condominium shall be distributed according to the number of inhabitants who use them for no less than a month.(2) (Amended, SG No. 87/2002) In the case of availability of measuring and control devices for heating power for the individual consumers, the heating power they have consumed shall be paid in accordance with the readings.(3) (Amended, SG No. 87/2002) In the case of buildings in which there are shops, restaurants, cafes, workshops, offices or other similar establishments, the heating power consumed thereby shall be determined by the readings of the measuring and control devices mounted therein. In the case of lack of such devices, heating power consumption in these sites shall be calculated in proportion to the heated air space or by the power of the heating units in the respective properties in pursuance to acting statutory instruments. The remaining quantity of heating power shall be distributed between the various consumers, calculated per cubic meter heated air space or in accordance with the readings of the measuring and control devices mounted therein.(4) (Amended, SG No. 87/2002) The costs for a janitor (salary, work clothing and rent of occupied premise), as well as for cleaning and maintenance of the areas for common use shall be distributed equally in accordance to the number of inhabitants. These costs shall not be paid by children aged below 3, including the temporarily residing ones that have lived in the buildings no less than one month, and children aged between 3 and 6 years inclusive shall pay 50 per cent of the sum determined for the other inhabitants.(5) (Amended, SG No. 87/2002) Persons practicing a profession or engaged in activity in the condominium that are associated with access of alien persons more frequent than the usual shall participate in the distribution of the costs for lighting, cleaning and maintenance of the common areas, as well as for janitor to a five-fold amount (as for five inhabitants).(6) (New, Izvestiya No. 32/1957) The costs referred to in Littera "a" of Paragraph (1) (for lighting), and in Paragraph (4) (for janitor, cleaning and maintenance of the common areas) shall be paid by the title holders or the lessees of shops, restaurants, production and other premises that are not used for housing needs, in accordance with the value of the premises (Article 40 of the Ownership Act ), and between the owners or lessees of one and the same such premise - in accordance with the area used thereby.(7) (New, SG No. 76/1978, amended, SG No. 87/2002) The costs for using and maintenance of lift installations shall be distributed according to the number of inhabitants without the children aged below three. The general meeting may decide that the distribution of these costs be made in another manner, as well as to waive these some of the inhabitants of the lower floors.(8) (Amended, SG No. 87/2002) Dog owners shall participate additionally in the costs for cleaning the common areas, paying for each dog as much as for one member of the family, but no less than BGN 1.0.(9) (Amended, SG No. 87/2002) The general meeting may pass a decision for remission or temporary assistance from the budget for owners in financial difficulty concerning the whole or part of the sum they have to pay to cover approved costs.(10) (Amended, SG No. 87/2002) By a decision of the general meeting the title holders may participate with materials and/or labour in works on the maintenance and restoration of common areas of the building, the value thereof being deducted from the sum they owe.Article 9a. (New, Izvestiya No. 14/1957) (1) Floors or parts thereof in a separate block of flats with a separate entrance and other separate common areas may form a separate condominium in spite of being attached by common walls or of having a common yard with other floors, parts thereof or other condominiums.(2) (Amended, SG No. 76/1978) A separate condominium in these cases shall be established by a decision of the general meeting of title holders and other inhabitants living in the separate block of flats on independent legal grounds (as the case may be).(3) A decision may be passed in case at least three-fourths of the title holders and lessees are present. The decision shall be passed by a simple majority.Article 9b. (New, Izvestiya No. 14/1957, amended, SG No. 76/1978) In the case of maintenance and restoration of common areas between separate blocks of flats that form separate condominiums (such as common walls, common roof, common yard, etc.), a decision shall be passed by the general meetings of title holders in the separate condominiums (Article 4) that shall also provide for the sums necessary to that end.Article 10. (Amended, SG No. 76/1978) (1) The decisions of the general meeting shall be executed within the time limits determined thereby and, in case such time limits have not been determined, within seven days following the written invitation.(2) In case an obligated person fails to pay within the time limits referred to in the previous paragraph the sum that is that person's share pursuant to the decision or budget adopted by the general meeting, the manager or the chair of the management board may acquire a writ of execution concerning that sum.(3) The writ of execution shall be issued by the regional judge on the basis of a written application, accompanied by a copy of the decision or the budget attested by the manager or the chair of the management board.(4) Appeal of the claim pursuant to the writ of execution may be made by the procedure provided by the Code of Civil Procedure for appeal of writs of execution issued on the basis of non-judicial writs.Article 11. (Amended, Izvestiya No. 14/1957) (1) (Amended, SG No. 87/2002) The general meeting shall pass decisions in the case of disputes related to the use of common areas of the building and the keeping of internal order.(2) (Amended, SG No. 87/2002) For violations of these Regulations, the Rules of Internal Organization and Procedure referred to in Article 4, Item I of Paragraph (1), or of decisions of the general meeting, the general meeting may delegate to the management board or the manager the right to impose on the accountable persons - title holders, lessees or users - a fine in favour of the condominium between BGN 1.0 and not more than BGN 60.(3) (Amended, SG No. 87/2002).(4) (Amended, SG No. 87/2002).Article 12. (1) The decisions of the general meeting shall be liable to anticipatory execution. The writ of execution shall be issued in the name of the manager or the chair of the management board by the regional judge on the basis of a written application accompanied by a copy of the minutes of the general meeting.(2) The decisions of the general meeting for eviction of title holder from inhabiting the property shall not be liable to anticipatory execution. Issuance of a writ of execution concerning these decisions shall be preceded by submission of the forewarning addressed to the title holder in pursuance to Article 45 (2) of the Ownership Act. Article 13. (1) A repeal of the decision of the general meeting may be request by anyone who has taken part in the meeting and whose disagreement has been recorded in the minutes, or by anyone who has not taken part in the meeting but is entitled to participate, as well as by anyone that bases his/her claim on irregularities involving the convention of the general meeting or the agenda.(2) (Amended, SG No. 76/1978) The application shall be filed with the regional court within seven days following the day of decision-making and, for the persons who have not received an invitation for the meeting, following the day of reception of the summons for voluntary execution or of being notified.(3) The court may decree suspension of the execution of the general meeting decision.Article 14. (1) As regards the application for repeal of a decision of the general meeting the manager or the chair of the management board shall represent the other title holders on the case. All documents shall be handed to the said person who shall be obligated to duly notify the other title holders of reception thereof. The general meeting may also appoint another title holder to conduct the case. Each title holder shall also be entitled to participate in the case.Article 15. (1) (New, SG No. 76/1978) The court shall repeal decisions of the general meeting in the case where they are illegal.(2) (Amended, Izvestiya No. 14/1957, renumbered from Paragraph (1), SG No. 76/1978) Upon passing a judgement on the case the court shall be obligated to coordinate the common interests of the inhabitants with their individual rights and interests.(3) (Amended, Izvestiya No. 14/1957, renumbered from Paragraph (2), SG No. 76/1978) When the court repeals the decision of the general meeting it shall also be entitled to prescribe the measures it deems necessary and to permit the applicant to carry them out in the name of all title holders.(4) (Renumbered from Paragraph (3), SG No. 76/1978) By a judgement of the court the lessee of premises in a condominium that does not comply with the ordinances on the procedure and management of the condominium may be evicted from the leased premises at the request of the manager of the management board in pursuance to Article 235 of the Obligations and Contracts Act. III. ManagementArticle 16. (Repealed, Izvestiya No. 14/1957).Article 17. (1) The election of a new manager or management board shall occur within two weeks following the expiry of the term of office or the date of substitution thereof.(2) (Amended, SG No. 87/2002) In case the necessary majority is not achieved upon voting, the vote shall be repeated. In this case the person (persons) who has (have) received the largest number of votes shall be considered elected.(3) (Repealed, Izvestiya No. 14/1957; amended, SG Nos. 76/1978, 73/1979, renumbered from Paragraph (4), amended, SG No. 87/2002) In case the general meeting for election of a new management board or a new manager is not convened within the time limit referred to in Paragraph (1), it shall be convened by the management board or the manager upon the request of one-fifth of the title holders or of the title holders and the lessees. Should these fail to convene the meeting within seven days following the request, said meeting shall be convened by the persons who have requested its convention.Article 18. The positions of manager or member, or chair of the management board, as well as all other positions established by the decision of the general meeting shall be gratuitous in case they are practised by the title holders or lessees, or by members of the families thereof, except in cases where all title holders and lessees agree that it should be paid.Article 19. No title holder may refuse to execute the office of manager or member of the management board, except in the case of illness, prolonged absence or if said person has been in the management directly prior to that for a period of at least two years.Article 20. The management board or the manager shall bring into execution the decisions of the general meeting and shall supervise abidance by the inhabitants of the provisions of the laws and the present Regulations and the Rules of Internal Organization and Procedure. They shall execute the budget adopted by the general meeting beyond which they shall be unable to make any expenses whatsoever.Article 21. (1) The manager or the management board shall be obligated to account for their management before the general meeting called for the election of new manager or management board.(2) (Repealed, SG No. 76/1978).Article 22. (1) The manager or management board shall, by a motivated memorandum, impose the fines provided pursuant to the Rules of Internal Organization and Procedure pursuant to Article 11 (2).(2) The fine shall be collected under the procedure referred to in Article 10.(3) The memorandum whereby the fine is imposed may be appealed within seven days of notification before the regional judge. The appeal shall not terminate its enforcement except in the cases where the judge decrees otherwise.(4) The judgement of the regional judge shall not be liable to appeal.Article 23. (Amended, SG No. 87/2002) The manager or the chair of the management board may take measures for preservation of internal order both as regards the inhabitants and as regards alien persons. In this respect the police authorities shall be obligated to extend the cooperation necessary.Article 24. (1) With the exception of the cases referred to in Article 22, the acts of the management board, its chair or the manager may be appealed before the general meeting within one week of notification.(2) Appeals shall be submitted through the chair of the management board or through the manager. These shall not suspend the execution of the appealed act.Article 24a. (New, SG No. 87/2002) (1) The supervisory board shall control the execution of the budget and the decisions of the general meeting for the correct expenditure of the funds for maintenance and restoration of common areas.(2) The supervisory board shall have the right to conduct checks of the collected cash and to notify the general meeting in case it establishes violations.(3) Where a supervisory board has not been elected the general meeting shall appoint the persons among the title holders who shall conduct a check of the cash collected and shall notify the general meeting of the result thereof.IV. Condominium Management(New Section, SG No. 76/1978)Articles 25-26. (New, SG No. 76/1978; amended, SG No. 73/1979; repealed, SG No. 21/1991).Article 27. (Renumbered from Article 25, SG No. 76/1978; repealed, SG No. 87/2002).SUPPLEMENTARY PROVISIONS(New, SG No. 87/2002) 1. (Amended, SG No. 87/2002) For the purposes of these Regulations "necessary costs" shall refer to the costs that are exigent in relation to providing the technical fitness of the building and the facilities and installations therein with a view to protecting the health and safety of the inhabitants and citizens. 2. (Amended, SG No. 87/2002) Throughout these Regulations the articles shall be designated with "Article" and in Arabic numerical, the paragraphs - with Arabic numerical in their sequence, in brackets and the items - with Arabic numerical.TRANSITIONAL AND FINAL PROVISIONS(New, SG No. 87/2002) 3. (New, SG No. 87/2002) The present Regulations have been issued in pursuance to Article 49 of the Ownership Act. 4. (New, SG No. 87/2002) Instruction on the application of the Regulation shall be issued by the Minister of Justice. 5. (New, SG No. 87/2002) Within three months following the entry into force of the amendments and supplements to the Regulations the Minister of Justice and the Minister of Regional Development and Public Works shall table for consideration by the Council of Ministers a draft decree on the amendment and supplementation of the Sample Rules on the Internal Order and Procedure in housing buildings, approved under Council of Ministers Decree No. 44 of 1978 (promulgated, SG No. 76/1978; amended, SG No. 73/1979).DECREE No. 44of the Council of Ministers, dated September 6, 1979,to Amend and Supplement the Regulations on the Applicationof the Lease Relations Act and other StatutoryInstruments of the Council of Ministers(SG No. 73/1979).................................. 46. Throughout the Regulations the words "people's court" or "people's judge" shall be substituted for "regional court" or "regional judge"... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . For more information visit www.solicitorbulgaria.com id: 326 Fri, 01 Aug 2008 07:38:12 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-regulations-on-condominium-management-order-and-supervision http://web.solicitorbulgaria.com/index.php/bulgarian-regulations-on-condominium-management-order-and-supervision http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/Regulations_on_Condominium_Management_Order_and_Supervision.jpg EUR http://web.solicitorbulgaria.com/index.php/bulgarian-regulations-on-condominium-management-order-and-supervision legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Chapter OneGENERAL PROVISIONSSubject MatterArticle 1. This Act regulates the legal status of notaries and of the Notary Chamber of Bulgaria, the organization of notarial practice, and notarial fees.NotaryArticle 2. (1) (Amended, SG No. 18/2003) "Notary" means a person entrusted by the State with the performance of the notarial acts as provided for in the laws.(2) Solely persons who have been entered in the Register of the Notary Chamber of Bulgaria may practise as notaries.(3) Notaries shall perform personally any notarial and other acts as provided for by the law.Area of PracticeArticle 3. A notary's area of practice shall be coextensive with the geographical jurisdiction of the competent regional court.Notary Chamber of BulgariaArticle 4. (1) There shall be established a Notary Chamber of Bulgaria. All notaries shall be members of the Notary Chamber of Bulgaria by right.(2) The Notary Chamber of Bulgaria shall be a legal person with registered office in Sofia.(3) (New, SG No. 18/2003)… For more information visit http://www.solicitorbulgaria.com id: 318 Chapter OneGENERAL PROVISIONSSubject MatterArticle 1. This Act regulates the legal status of notaries and of the Notary Chamber of Bulgaria, the organization of notarial practice, and notarial fees.NotaryArticle 2. (1) (Amended, SG No. 18/2003) "Notary" means a person entrusted by the State with the performance of the notarial acts as provided for in the laws.(2) Solely persons who have been entered in the Register of the Notary Chamber of Bulgaria may practise as notaries.(3) Notaries shall perform personally any notarial and other acts as provided for by the law.Area of PracticeArticle 3. A notary's area of practice shall be coextensive with the geographical jurisdiction of the competent regional court.Notary Chamber of BulgariaArticle 4. (1) There shall be established a Notary Chamber of Bulgaria. All notaries shall be members of the Notary Chamber of Bulgaria by right.(2) The Notary Chamber of Bulgaria shall be a legal person with registered office in Sofia.(3) (New, SG No. 18/2003) Notary associations shall be established in the geographical jurisdiction of each appellate court to assist the operation of the Notary Chamber of Bulgaria and the practice of the notaries. A separate notary association shall be established for the City of Sofia.(4) (New, SG No. 18/2003) The status and the functions of the notary associations shall be determined in the Statute of the Notary Chamber of Bulgaria.Register of the Notary Chamber of BulgariaArticle 5. A register shall be kept at the Notary Chamber of Bulgaria. The notaries, assistant notaries, and the relevant circumstances thereto appertaining as provided for in the law shall be recorded in the said register.Duty to RecordArticle 6. Any person who, under the law, is obligated to declare any circumstance subject to recording in the register referred to in Article 5 herein, or to submit any documents, must do so within seven days after the occurrence of the circumstance, save as where the law prescribes another time limit.Public Access to Register of Notary Chamber of BulgariaArticle 7. Every person shall have the right to inspect the Register of the Notary Chamber of Bulgaria and to obtain an abstract therefrom.Chapter TwoNOTARYSection IAdmission to Notarial PracticeQualificationsArticle 8. (1) Admission to notarial practice shall be limited to capable natural persons who have not attained the age of sixty years, who hold solely Bulgarian citizenship, and who possess the following qualifications:1. graduation in law from a higher educational establishment;2. (amended, SG No. 18/2003) attainment of licensed competence to practise law under the Judicial System Act; 3. (amended, SG No. 18/2003) completion of three years' length of service;4. no record of sentences imposing a penal sanction of deprivation of liberty for a premeditated criminal offence, irrespective of whether they have been rehabilitated or not;5. no disqualification from notarial practice;6. no disbarment or disqualification from practice of commercial business;7. no status as subject to bankruptcy proceedings or as an undischarged bankrupt, and no conviction for fraudulent bankruptcy;8. recording in the register referred to in Article 5 herein.(2) (Supplemented, SG No. 29/2004, SG No. 43/2005, SG No. 39/2006, amended, SG No. 64/2007) The time served as judge, prosecutor, investigating magistrate, lawyer, arbitrator, junior judge, junior prosecutor, junior investigating magistrate, court assistant at the Supreme Court of Cassation or the Supreme Administrative Court, prosecutor assistant at the Supreme Prosecution Office of Cassation or the Supreme Administrative Prosecution Office, executive judge, public enforcement agent, private enforcement agent, assistant private enforcement agent, notary, recording magistrate, assistant notary, researcher in legal science, court inspector, expert on legislation or in the judicial authorities, legal advisor, legal consultant or expert on legal matters in the state or municipal administration, in the position of investigating magistrate in the system of the Ministry of Interior or investigating magistrate in the system of the Ministry of Defence, shall count towards the length of service for the purposes of Item 3 of Paragraph (3).Incompatibility of DutiesArticle 9. (1) A notary cannot practise as notary and concurrently:1. (Amended, SG No. 69/1999) be a national representative, government minister, mayor, or municipal councillor;2. hold office in a state or municipal body;3. be employed under an employment relationship;4. practice the legal profession;5. engage in commercial business, be a managing director or a member of supervisory, management or controlling bodies of any commercial corporations or cooperatives.(2) Upon discontinuance of any activity covered under Item 1 of Paragraph (1), the notary shall be re-admitted to practice under the terms established by Article 39 herein.Creation of Notary Vacancies. Announcement of Competitive Examination(Title supplemented, SG No. 18/2003)Article 10. (1) (Amended, SG No. 123/1997) There may be not fewer than two notary vacancies in a particular geographical jurisdiction. One notary vacancy shall be created per 10,000 population in each particular geographical jurisdiction.(2) (Amended and supplemented, SG No. 18/2003) Notary vacancies shall filled on the basis of a competitive examination scheduled by an order of the Minister of Justice. The Board of Notaries shall state its opinion within fourteen days. The Minister of Justice may furthermore appoint a competitive examination on a motion by the Board of Notaries.(3) Any order referred to in Paragraph (2) shall be communicated in writing to the Notary Chamber of Bulgaria. Any effective order shall be promulgated in the State Gazette.(4) Should more notaries be necessary than the apportionment under Paragraph (1), the Minister of Justice may, acting on his or her own initiative or on a motion by the Board of Notaries, create additional notary vacancies in the geographical jurisdiction concerned.(5) (New, SG No. 18/2003) A notary recorded in the Register of the Notary Chamber of Bulgaria may transfer to another geographical jurisdiction by permission of the Minister of Justice.Application ProcedureArticle 11. (1) (Amended, SG No. 18/2003) Within one month after promulgation of the order referred to in Article 10 (2) herein, applicants shall submit to the Minister of Justice an application in writing for admission to the competitive examination. Any such application shall state the name, the Standard Public Registry Personal Number, the address and the profession or trade practiced by the applicant, as well as the succession of geographical jurisdictions wherefor the said applicant applies. In a single competitive examination, an applicant may state up to three geographical jurisdictions.(2) (Supplemented, SG No. 41/2006) Documents for paid state tax, certifying birth, graduation in law from a higher educational establishment and attainment of licensed competence to practise law, length of service and place of work, a conviction status certificate, a declaration stating that the applicant does not holding any citizenship other than Bulgarian, a declaration under Items 5, 6 and 7 of Article 8 herein, and a medical certificate shall be attached to any application referred to in Paragraph (1).(3) (Amended, SG No. 18/2003) Should no applicants apply for all vacancies in a particular geographical jurisdiction, the time limit for application shall be extended by one month. In such a case, persons who have attained the age of 60 years shall also be eligible to apply for the geographical jurisdiction concerned.Competitive Examination for Admission to Notarial PracticeArticle 12. (1) (Amended, SG No. 123/1997 and SG No. 18/2003) The terms and procedure for conduct of a competitive examination shall be established by an ordinance issued by the Minister of Justice after consultation with the Board of Notaries.(2) (Amended, SG No. 123/1997 and SG No. 18/2003) A competitive examination shall be conducted by a commission composed of a chairperson, representing the Ministry of Justice, designated by the Minister of Justice, and four members: a Supreme Court of Cassation judge, designated by the President of the Supreme Court of Cassation, two notaries, designated by the Board of Notaries, and an academic degree holder teaching civil law sciences, designated by the Minister of Justice.(3) (Amended, SG No. 18/2003) The commission referred to in Paragraph (2) shall transmit a memorandum stating the results of the competitive examination to the Minister of Justice, who within fourteen days shall issue an order on recording in the Register of the Notary Chamber of Bulgaria of the applicant who was ranked as best qualified in the relevant geographical jurisdiction.(4) (Amended, SG No. 18/2003) The order referred to in Paragraph (3) shall be communicated to the applicants for the relevant geographical jurisdiction and to the Board of Notaries and shall be appealable according to the procedure established by the Administrative Procedure Code. (5) (New, SG No. 41/2006) The Ministry of Justice shall collect a state tax for the competition the amount of which shall be fixed by a rate schedule approved by the Council of Ministers.Notary's OfficeArticle 13. (1) Upon entry into force of the order on entry in the Register, the applicant for admission to notarial practice shall be obligated to procure a notary's office, which may be shared with other applicants or practising notaries of the same geographical jurisdiction.(2) (Amended, SG No. 18/2003) A notary's office must have two or more functionally connected premises which shall mandatorily accommodate the notary's chambers and the notary's professional records.(3) (Amended, SG No. 18/2003) A notary may have a single notary's office within the area of practice thereof. The notary's office must satisfy conditions which guarantee the safe custody of the records and the proper performance of the professional duties of the notary.Recording in Register of Notary Chamber of BulgariaArticle 14. (1) Recording in the Register of the Notary Chamber of Bulgaria shall be effected by decision of the Board of Notaries.(2) To record a notary in the Register:1. the order of the Minister of Justice on recording must have entered into force;2. the notary must submit a declaration in writing to the effect that the incompatibility of duties covered under Article 9 herein does not apply;3. (Amended, SG No. 18/2003) the address of the notary's office must be stated, and the requirements covered under Article 13 (2) and (3) herein must be complied with;4. (Amended and supplemented, SG No. 123/1997) a documentary proof of a real right held to the notary's office or a recorded lease agreement, a declaration of the origin of the resources invested in procurement of the notary's office, completed in a standard form approved by the Minister of Justice, must be presented;5. a documentary proof of insurance contracted under Article 30 herein must be presented;6. a specimen of the impression of a seal, as approved by the Minister of Justice, must be presented;7. a specimen of the notary's signature must be presented.(3) Conformity with the requirements covered under Items 1, 2, 5 and 7 of Paragraph (2) shall suffice for recording of an assistant notary.(4) (Amended and supplemented, SG No. 123/1997, amended, SG No. 18/2003) Recording in the Register must be requested and the requirements covered under Paragraphs (2) and (3) must be complied with within three months after the entry into force of the order on recording. Should a notary vacancy remain unfilled, the Minister of Justice shall order the recording of the next ranked applicant.(5) (New, SG No. 18/2003) Within one month after receipt of a request for recording in the Register, the Board of Notaries shall conduct an inspection of the notary's office of the applicant as to compliance with the requirements established by Article 13 (2) and (3) herein. A memorandum shall be drafted, stating the findings of any such inspection, and the said memorandum shall be attached to the request as a matter of course.Administration of OathArticle 15. (1) Upon declaration of any decision referred to in Article 14 (1) herein, the applicant shall take the following oath of office before the Board of Notaries, unless previously sworn in: "I do swear that I will accurately observe the Constitution and the laws of the Republic of Bulgaria, that I will honestly, faithfully and impartially perform the duties of my office, that I will be worthy of the confidence and respect requisite to the profession, that I will contribute to the upgrading of the prestige of the profession, and that I will safeguard privileged information, always remembering that I shall be held responsible for all before the law. I have sworn to it!"(2) An Oath Paper shall be signed upon administration of the oath of office.(3) Recording in the Register shall be effected after the Oath Paper is signed.Registrable ParticularsArticle 16. (1) There shall be recorded in the Register:1. the area of practice;2. the name and Standard Public Registry Personal Number of the notary or the assistant notary, as the case may be;3. the address of the notary's office;4. the term of office of the assistant notary, inter alia upon substitution;5. (Supplemented, SG No. 18/2003) the corporate name and registered office of the insurer, as well as the amount of the sum insured;6. (New, SG No. 18/2003) the particulars referred to in Articles 41, 42 and 46 herein.(2) (Supplemented, SG No. 18/2003) The persons recorded in the Register of the Notary Chamber of Bulgaria must declare for recording any alteration in registrable particulars within seven days.Section IINotary's Rights and DutiesIndependenceArticle 17. (1) (Redesignated from Article 17, SG No. 18/2003) A notary shall be independent in the performance of the functions thereof and shall comply solely with the law.(2) (New, SG No. 18/2003) The Minister of Justice and the Board of Notaries shall be notified upon detention of any notary or upon indictment of any notary as accused of a criminal offence at public law.Cooperation and RespectArticle 18. A notary shall be entitled to cooperation and respect in the performance of the functions thereof.Access to DocumentsArticle 19. (Amended, SG No. 18/2003) A notary shall be entitled to gain free access to the judicial and administrative services and may make searches of case and proceeding records, as well as request copies, transcripts and documents and obtain information and certificates on a basis of priority.Seeing Client in PrivateArticle 20. In the performance of the official functions thereof, a notary shall see the person who has sought his or her professional aid in private, save as where the said person wishes that other persons be present as well.Inviolability of Professional RecordsArticle 21. (1) The professional records of any notary shall be inviolable. and no person shall have the right of access thereto without the notary's consent except in the instances provided for by a law.(2) Any person, who has been granted access to the professional records of any notary, must safeguard privileged information on terms established by the notary himself or herself, and must notify the notary of any acts performed which affect the records.Notary's Other ActsArticle 22. Where so directed by the parties, a notary may, in connection with the notarial proceedings, prepare and verify drafts of documents, offer oral or written advice, mediate to clarify the will of the parties, consult records, obtain documents, papers and other such, as well as act as an executor of wills or administrator of estates.Duty to AidArticle 23. A notary shall consider all requests for professional aid wherewith he or she is approached, unless interested in performance of the act requested or unless being in a special relationship with the party which may give rise to reasonable doubt of the notary's impartiality.ImpartialityArticle 24. In the performance of the official functions thereof, a notary may not favour any party more than another.Protection of Parties' Rights and InterestsArticle 25. (1) A notary must protect the rights and interests of the parties, provide guidance to the parties, clarify the will and actual position of the parties, familiarize the parties clearly and unambiguously with the legal consequences, and not admit omissions or unreasonable delay in work which might lead to impairment of the parties' rights.(2) (New, SG No. 19/1.03.2005) Before drafting the relevant act, the notary shell verify whether the injunction has been imposed under the Criminal Assets Forfeiture Act.(3) (Amended, SG No. 123/1997 and SG No. 36/2004, renumbered from Paragraph 2, SG No. 19/2005) Upon executing any recordable acts, if so requested by the parties, the amount due to the seller or exchanger shall be deposited in the bank account of the notary who shall present a document certifying the said deposit at the Recording Office.(4) (New, SG No. 123/1997, amended, SG No. 36/2004, renumbered from Paragraph 3, SG No. 19/2005) A notary shall present any recordable acts to the Recording Office on the day of execution of the said acts. Prior to recording, a notary may not furnish the parties with a transcript of the recordable act.(5) (New, SG No. 18/2003, amended, SG No. 36/2004, renumbered from Paragraph 4, SG No. 19/2005) Any acts recordable in another geographical jurisdiction shall be transmitted to the recording offices through official channels at the directive of the recording magistrate. The costs of any such transmittal shall be for the account of the parties.(6) (New, SG No. 123/1997, renumbered from Paragraph (4), SG No. 18/2003, renumbered from Paragraph 5, amended SG No. 19/2005) In the cases referred to in Paragraph (3), the notary shall pay the amounts due to the seller or to the exchangers after the recording.(7) (New, SG No. 18/2003, renumbered from Paragraph 6, SG No. 19/2005) Upon effecting of any transactions for disposition, the parties shall be obligated to present to the notary a declaration of citizenship and civil status completed in a standard form endorsed by the Minister of Justice.Safeguarding Privileged InformationArticle 26. (1) A notary must safeguard the secrecy of any circumstances which come to his or her knowledge in connection with the practice thereof, and may not use the said knowledge to his, her, or another's advantage.(2) The duties covered under Paragraph (1) shall furthermore extend to the time where the notary does not perform the functions thereof or where the practice thereof is suspended.Continuous PracticeArticle 27. The Minister of Justice shall determine the opening hours of notary's offices and the conditions whereon the said offices may be temporarily closed.Professional RecordsArticle 28. (1) (Amended, SG No. 18/2003) Each notary shall keep self-contained professional records. The terms and procedure for record- keeping shall be established by an ordinance issued by the Minister of Justice after consultation with the Board of Notaries.(2) (New, SG No. 18/2003) The professional records shall consist of:1. notarial registers and books;2. notarial case files;3. other documents;4. a seal of the notary.(3) (Renumbered from Paragraph (2) and amended, SG No. 18/2003) Any case files and documents belonging to the professional records of a notary may be removed outside the notary's office solely proceeding from a written directive (ruling, directive, warrant) by a judge or a prosecutor. Transcripts shall be delivered, upon signed acknowledgement, to an official expressly indicated by name in the directive.(4) (New, SG No. 18/2003) The originals of the documents kept in the professional records may be removed outside the notary's office in the cases of an express directive under Paragraph (3) by the notary in person, and expert examination of any such originals may be conducted solely in the presence of the said notary.(5) (New, SG No. 18/2003) The seal of a notary may be seized or a notary's office may be sealed solely if the notary has been excluded from practice.Notarial Registers and BooksArticle 28a. (New, SG No. 18/2003) (1) Each notary shall keep:1. a general register;2. an alphabetical index;3. a register to record the delivery for safekeeping, the return and the reading of holographic wills, as well as the acceptance and return of documents and papers delivered for safekeeping;4. a book formed by filing notarial and other recordable acts and documents;5. a book formed by filing notarized wills and acts of revocation of wills;6. a book of notarial invitations, protests, statements of ascertainment, and transcripts of documents of certified contents;7. a delivery book.(2) The general register referred to in Item 1 of Paragraph (1) and the books referred to in Items 6 and 7 of Paragraph (1) shall be preserved for a period of ten years, and shall be subject to destruction upon the lapse of the said period after consultation with the relevant state archive.(3) The alphabetical index referred to in Item 2 of Paragraph (1), the register referred to in Item 3 of Paragraph (1), and the books referred to in Items 4 and 5 of Paragraph (1) shall be preserved for a period of 100 years, and upon the lapse of the said period shall be subject to delivery for permanent safe custody to the relevant state archives.(4) The results of searches in the notarial case files shall be available solely to the parties, to the legal successors thereof, as well as to the legal or authorized representatives thereof. Where the authorized representative is not a lawyer, he or she must be authorized expressly by a notarized power of attorney.Notification of Regional Court PresidentArticle 29. A notary shall forthwith notify the President of the Regional Court of any displacement of the notary's office and of the professional records thereof.InsuranceArticle 30. (1) (Redesignated from Article 30, SG No. 18/2003) Each notary shall contract insurance for the time of practice thereof against loss or injury which may arise from culpable non-fulfilment of the obligations thereof, as well as of the obligations of the assistant notary and the employees of the notary's office. The minimum and maximum amount of the sum insured shall be determined by the Notary Chamber of Bulgaria.(2) (New, SG No. 18/2003) Within seven days after conclusion of the contract referred to in Paragraph (1), the notary shall be obligated to present a copy of the insurance policy to the Notary Chamber of Bulgaria.Social SecurityArticle 31. Each notary shall be subject to compulsory social insurance under the terms and according to the procedure established in respect of practitioners of liberal professions.Notary Chamber of Bulgaria Membership Subscription FeesArticle 32. Each notary shall pay a mandatory membership subscription fee in favour of the Notary Chamber of Bulgaria under terms and according to a procedure established by the Statute of the Chamber and the resolutions of the General Meeting.AccountsArticle 33. Each notary shall keep accounts.Professional Ethics and Qualifications(Title amended, SG No. 18/2003)Article 34. (1) (Supplemented, SG No. 18/2003) A notary shall be obligated to observe professional ethics and to uphold the prestige of the profession according to the Statute of the Notary Chamber of Bulgaria.(2) (Amended, SG No. 18/2003) A notary shall be obligated to initiate into the practice, to train and provide guidance to the assistant notary, as well as the notary's employees.Notaries' AssociationArticle 34a. (New, SG No. 123/1997, amended, SG No. 18/2003) Notaries shall be free to associate and to act jointly under the terms of a civil-law partnership according to the procedure established by Articles 357 to 364 of the Obligations and Contracts Act. In such cases, the notaries shall keep self-contained records.Notary RelocationArticle 34b. (New, SG No. 18/2003) (1) A notary may be relocated owing to important reasons to another area of practice on the basis of a reasoned application by the said notary to the Minister of Justice, provided a vacancy referred to in Article 10 herein is created in the said area.(2) The Minister of Justice shall pronounce within fourteen days after receipt of any application referred to in Paragraph (1). The order shall be communicated to the notary and to the Board of Notaries according to the procedure established by the Code of Civil Procedure. (3) A relocation order shall be appealable by the Board of Notaries according to the procedure established by the Administrative Procedure Code, if the relocation has been effected in breach of the legal requirements. A refusal to grant relocation shall be appealable by the notary according to the procedure established by the Administrative Procedure Code.(4) Articles 13, 14, 16, 36 and 38 herein shall apply upon the relocation of any notary.Section IIIExclusion from, and Re-admission to, Notarial PracticeGrounds for Exclusion from PracticeArticle 35. A notary shall be excluded from practice:1. upon request of the notary, submitted in writing to the Board of Notaries;2. by death or interdiction;3. upon occurrence of a disqualification covered under Article 8 herein or an incompatibility covered under Article 9 herein;4. (New, SG No. 18/2003) upon imposition of any disciplinary sanction under Item 4 of Article 75 (1) herein.Sealing and Inventorying of Professional RecordsArticle 36. (1) Upon occurrence of any grounds covered under Article 35 herein, a notary may not perform any notarial or other acts provided for in the law whatsoever, and the professional records of the said notary shall be sealed.(2) The professional records shall be sealed and unsealed by order of the President of the District Court, and a memorandum with an inventory shall be drafted thereupon.(3) (Amended, SG No. 18/2003) The terms and procedure for sealing, unsealing and delivery of the professional records shall be regulated by an ordinance issued by the Minister of Justice after consultation with the Board of Notaries.(4) Enforcement or process to secure property on premises registered as a notary's office may be proceeded with solely after delivery of the notary's professional records.Striking OffArticle 37. (1) Striking off the Notary Chamber of Bulgaria Register shall be effected as a matter of course by the Board of Notaries, and there shall be noted in the Register:1. (Amended, SG No. 18/2003) the grounds for exclusion from notarial practice;2. the date and the name of the person whereto the records have been delivered.(2) A notary shall be excluded from practice by the striking thereof off the register, except in the cases covered under Item 2 of Article 35 herein.(3) (Amended, SG No. 18/2003) The Board of Notaries shall notify the Minister of Justice within three days after a striking off, and the said Minister may schedule a competitive examination if the prerequisites under Article 10 herein exist.Notarial Acts Affecting Records as DeliveredArticle 38. The notary or the recording magistrate, as the case may be, shall perform notarial acts solely affecting the documents and papers available in the records.Re-admission to PracticeArticle 39. (1) A notary shall be re-admitted to practice upon his or her own request, should the said notary have been excluded from practice on any of the following grounds:1. suspension from practice for a specified period: upon expiration of the said period;2. engagement in incompatible activity covered under Item 1 of Article 9 (1) herein: upon cessation of the said activity.(2) A request for Re-admission to practice shall be submitted to the Board of Notaries within on month after elimination of the grounds for exclusion.(3) Any Re-admission to practice shall be recorded in the Register of the Notary Chamber of Bulgaria according to the procedure established by Article 14 herein.(4) The person, who has taken delivery of the professional records of a suspended notary, shall be obligated to redeliver the said records upon Re- admission of the said notary to practice.Section IVAssistant NotaryCompetenceArticle 40. (1) (Amended, SG No. 18/2003) An assistant notary may perform all acts within the notary's competence, following the notary's directions, with the exception of:1. any acts whereby real rights to corporeal immovables are created, transferred, altered or terminated;2. any acts whereby the right of ownership or limited real rights to corporeal immovables are acknowledged;3. any acts of notarized will and of revocation of a notarized will;4. any acts whereby mortgages are raised or discharged.(2) The assistant notary shall use the professional records and the seal of the notary, adding to his or her own signature the designation "assistant."(3) The notary shall be liable solidarily with the assistant notary for any loss or injury as may arise from culpable non-fulfilment of the obligations of the said assistant notary.(4) Insofar as there are no specific rules, the rules applicable to notaries shall apply to assistant notaries.(5) (New, SG No. 18/2003) The relations between notary and assistant notary shall be regulated by contract.Admission to PracticeArticle 41. (1) (Amended, SG No. 18/2003) A notary may appoint one assistant notary from amongst the persons who satisfy the requirements for admission to notarial practice, regardless of the age and length of service thereof.(2) (Amended, SG No. 18/2003) The Minister of Justice shall issue an order on the recording of the assistant notary in the Register of the Notary Chamber of Bulgaria, acting on a written application by the notary, countersigned by the applicant. The documents listed under Article 11 (2) herein must be attached to any such application. A term of office for the assistant notary may furthermore be specified in any such application.(3) Recording in the Register of the Notary Chamber of Bulgaria shall follow the procedure established by Articles 14, 15 and 16 herein.Exclusion from PracticeArticle 42. (1) An assistant notary shall be excluded from practice:1. upon request of the assistant notary, submitted in writing to the notary;2. by the assistant notary's or the notary's death or interdiction;3. upon occurrence of a hindrance covered under Article 8 herein or an incompatibility covered under Article 9 herein;4. upon written request by the notary to the Board of Notaries;5. upon expiration of the term of office fixed by the notary and by striking of the notary off the Register of the Notary Chamber of Bulgaria.(2) The striking of an assistant notary off the Notary Chamber of Bulgaria Register shall be effected as a matter of course or at the request of the notary, and the grounds under Paragraph (1) shall be recorded in the register.(3) An assistant notary shall be excluded from practice by striking off the register save in the instances covered under Items 2 and 5 of Paragraph (1).Section VProbationary Notary(Repealed, SG No. 18/2003)CompetenceArticle 43. (Repealed, SG No. 18/2003).Admission to PracticeArticle 44. (Repealed, SG No. 18/2003).Exclusion from PracticeArticle 45. (Repealed, SG No. 18/2003).Section VISubstitution for NotarySubstitution for Notary by Assistant Notary. Admission to Substitution(Title supplemented, SG No. 18/2003)Article 46. (1) (Amended, SG No. 18/2003) When a notary is absent or is unable to perform the functions thereof, the said notary may be substituted for by an assistant notary who has the length of service required under Item 3 of Article 8 (2) herein and has taken an examination. In such a case, the assistant notary shall independently perform all acts within the notary's competence, adding to the signature thereof the designation "by substitution."(2) (New, SG No. 18/2003) The notary and the assistant notary applicant shall submit a written application to the Minister of Justice, attaching the documents covered under Article 11 (2) herein. The period of substitution, which may not be longer than two years reckoned from the recording in the Register, shall be specified in the said application.(3) (New, SG No. 18/2003) The assistant notary applying as notary substitute shall take an examination under terms and according to a procedure established by an ordinance of the Minister of Justice after consultation with the Board of Notaries.(4) (New, SG No. 18/2003) The examination referred to in Paragraph (3) shall be conducted by a commission composed of: a representative of the Ministry of Justice, designated by the Minister of Justice, a notary and a notary inspector designated by the Board of Notaries.(5) (New, SG No. 18/2003) The commission referred to in Paragraph (4) shall submit the memorandum stating the results of the competitive examination to the Minister of Justice, who within seven days shall issue an order on recording in the Register of the Notary Chamber of Bulgaria.(6) (New, SG No. 18/2003) The order referred to in Paragraph (5) shall be communicated to the applicant and to the Board of Notaries and shall be appealable according to the procedure established by the Administrative Procedure Code. (7) (Renumbered from Paragraph (2), SG No. 18/2003) Any substitution referred to in Paragraph (1) shall be recorded in the Register of the Notary Chamber of Bulgaria, applying Articles 41 and 42 herein, mutatis mutandis.(8) (New, SG No. 41/2006) The Ministry of Justice shall collect a state tax for the examination, under paragraph 3, the amount of which shall be fixed by a rate schedule approved by the Council of Ministers.Substitution for Notary by Another NotaryArticle 47. (1) A notary may be substituted for by another notary of the same geographical jurisdiction. Relations between any two such notaries shall be regulated by contract.(2) The substituting notary shall use the professional records of the substituted notary, affixing his or her own signature and seal to any certified document and noting the fact of substitution.(3) Should the professional records of the substituted notary be displaced during the time of substitution, Article 29 herein shall apply.(4) (New, SG No. 18/2003) The period of any substitution under Paragraph (1) may not be longer than two years reckoned from the conclusion of the contract.Substitution for Notary by Recording MagistrateArticle 48. (1) (Amended, SG No. 123/1997) Should a notary be absent or be not in a position to perform the functions thereof, and should no substitute be available in the geographical jurisdiction, the said notary shall be obligated to notify the recording magistrate who shall take over the substitution therefor for the duration of any such time in respect of performance of urgent notarial acts. In such a case, Article 47 (2) herein shall apply, mutatis mutandis.(2) Should the notary have failed to provide access to the records required for the substitution therefor, for the purposes of performance of urgent notarial acts the President of the Regional Court, acting at the request of the interested party, shall decree entering of the notary's office, opening of the required records, and performing of the notarial act by the recording magistrate.Section VIINotary's EmployeesSafeguarding Privileged InformationArticle 49. A notary's employees shall be obligated to safeguard privileged information on terms established by the notary himself or herself.Assignment of Service of Communications and Delivery of PapersArticle 50. (Amended, SG No. 59/2007) A notary may assign a specified employee in the notary's office to service communications and deliver papers under the terms and according to the procedure established by Articles 37 to 58 of the Code of Civil Procedure. Chapter ThreeNOTARY CHAMBER OF BULGARIASection IGeneral ProvisionsStatuteArticle 51. The Notary Chamber of Bulgaria shall adopt a Statute regulating the organization and operation thereof.Bodies and RepresentationArticle 52. (1) The bodies of the Notary Chamber of Bulgaria shall be the General Meeting, the Board of Notaries, the Supervisory Board, and the Disciplinary Commission.(2) The Notary Chamber of Bulgaria shall be represented by the Chair of the Board of Notaries or, in the absence of the said Chair, by the deputy chairs in order of seniority.PropertyArticle 53. (1) The property of the Notary Chamber of Bulgaria shall consist of:1. the mandatory entrance and annual membership subscription fees and the additional contributions paid by the members of the Chamber;2. fees for services;3. donations and successions;4. other sources.(2) (Amended, SG No. 123/1997) The Notary Chamber of Bulgaria shall collect fees for entries effected in the Register thereof. The said fees shall be fixed by a rate schedule approved by the Council of Ministers.Section IIGeneral Meeting of Notary Chamber of BulgariaCompositionArticle 54. (1) The General Meeting shall be composed of all members of the Notary Chamber of Bulgaria.(2) There shall be ordinary and extraordinary general meetings.ConvocationArticle 55. (1) An ordinary general meeting shall be called annually on the last Saturday and Sunday of January.(2) The General Meeting shall be called by the Board of Notaries by publication of a notice in the State Gazette not less than two months before the date of the meeting. Any such notice shall state the agenda.(3) Should not less than one tenth of the members of the Chamber demand inclusion of a specified item into the agenda within twenty days after the publication, the Board of Notaries shall be obligated to publish an addendum supplementing the agenda not later than seven days before the date of the meeting.Quorum and ProxiesArticle 56. (1) A general meeting shall be held provided two thirds of the members of the Chamber are present thereat in person or by proxy. Unless a quorum is present, the meeting shall stand adjourned to a time within one hour thereafter, and the transaction of business at the meeting held after that time shall be valid regardless of the number of members present.(2) Voting shall be either in person or by proxy, who may be a notary or an assistant notary. The proxy must hold a power of attorney in writing. One proxy may not represent more than three members of the Chamber. Any such power of attorney shall be presented to the Chair of the Board of Notaries or to the Administrative Secretary of the Chamber before the opening of the meeting.CompetenceArticle 57. The General Meeting shall exercise the following powers:1. adopt the Statute of the Notary Chamber of Bulgaria;2. (Supplemented, SG No. 123/1997) elect and remove the Chair and the members of the Board of Notaries, of the Supervisory Board and of the Disciplinary Commission for a term of thee years, determining the number of members thereof and fixing the compensation of the said members;3. (Amended, SG No. 18/2003) determine the minimum and maximum amount of the sum insured referred to in Article 30 (1) herein;4. resolve on contracting of group insurance;5. create a guaranty find for indemnification upon occurrence of risks uncovered by compulsory insurance or in the event of expired and unrenewed insurance, and resolve on creation of other pecuniary funds;6. determine the amount of the mandatory entrance and annual membership subscription fees;7. resolve on additional pecuniary contributions;8. discuss and approve the budget of the Chamber;9. pass on the bringing of actions by the Notary Chamber of Bulgaria against members of the bodies thereof, or discharge such members from liability;10. (New, SG No. 18/2003) resolve on acquisition and alienation of corporeal immovables and real rights thereto;11. (Renumbered from Item 10, SG No. 18/2003) resolve on any other matters provided by the Statute.Decision-MakingArticle 58. (1) The General Meeting shall pass resolutions by a majority of more than one half of the members present. Any resolution covered under Item 1, 2 and 7 of Article 57 herein shall require the affirmative vote of more than two thirds of the members present.(2) (New, SG No. 18/2003) Where, in an election referred to in Item 2 of Article 57 herein, it is proceeded with a subsequent vote, the nominees who have garnered the most votes shall be considered elected. Should two or more nominees garner an equal number of votes, the nominee who has practised law for a longer period of time, as referred to in Article 8 (2) herein, shall be considered elected.(3) (Renumbered from Paragraph (2), SG No. 18/2003) No resolutions may be passed on any matter which is not included in the agenda, with the exception of removal of members of the Chamber's bodies and election of new members in the place thereof.Extraordinary General MeetingArticle 59. (1) An extraordinary general meeting may be called by the Board of Notaries, the Supervisory Board or the Minister of Justice on an agenda thereby appointed.(2) The Board of Notaries shall be obligated to call an extraordinary general meeting on the written requisition of one tenth of the members of the Chamber, who shall state the agenda in the requisition. Should the Board of Notaries fail to do so within fourteen days after submission of the requisition, the General Meeting shall be called by the requisitionists.(3) Articles 55 and 56 herein shall apply, mutatis mutandis, to the convocation and conduct of an extraordinary general meeting.Appealability of ResolutionsArticle 60. (1) Any resolution passed by the General Meeting shall be appealable before the Supreme Administrative Court within seven days after the date of resolution.(2) Any such appeal may be joined by any member of the Chamber or may be supported thereby, even if the appellant withdraws the said appeal.(3) Any resolution passed by the General Meeting shall furthermore be appealable by the Minister of Justice if affecting an interest of State.Coercive EnforcementArticle 61. (Amended, SG No. 59/2007) In respect of the sums due, the Notary Chamber of Bulgaria shall have the option, acting on a resolution of the General Meeting, to move for the issuance of an enforcement order under Article 410 (1) of the Code of Civil Procedure regardless of the amount of the said sums.Section IIIBoard of NotariesCompositionArticle 62. (1) A Board of Notaries shall be elected to comprise not fewer than five regular and two alternate members, with a Chair and a Deputy Chair elected from amongst the regular members.(2) Should the Board of Notaries be of a larger composition, two Deputy Chairs shall be elected from amongst the regular members.(3) (Supplemented, SG No. 123/1997, amended, SG No. 18/2003) To be eligible for membership of the Board of Notaries, a person must:1. have at least two years' length of service as a notary;2. have not been elected as member of the said body for more than two consecutive terms of office;(4) Members who are unable to participate or who withdraw from the Board of Notaries shall be substituted for by the alternate members in order of seniority of the length of service until elimination of the obstacle or until expiry of the term of office, as the case may be.(5) The alternate members shall substitute for the Chair and the Deputy Chairs solely in the capacity of the latter as members of the Board of Notaries.ConvocationArticle 63. (1) The Board of Notaries shall be called to an ordinary meeting by the Chair at least once monthly.(2) The Chair of the Board of Notaries shall be obligated to call the Board to an extraordinary meeting on the written requisition of one third of the regular members, who shall state the agenda in the requisition. Should the Chair fail to do so within seven days after submission of the requisition, the extraordinary meeting shall be called by the requisitionists.(3) An extraordinary meeting of the Board of Notaries may furthermore be called by the Minister of Justice on an agenda thereby appointed.QuorumArticle 64. The Board of Notaries may take action if two thirds of the members of the Board are present at the meeting.CompetenceArticle 65. (1) (Redesignated from Article 65, SG No. 18/2003) The Board of Notaries shall exercise the following powers:1. direct the operation of the Notary Chamber of Bulgaria;2. call the General Meeting, implement the resolutions thereof, and report thereto;3. elect the Deputy Chairs;4. determine the staff size and select the Administrative Secretary of the Chamber;5. organize the keeping of the Register of the Notary Chamber of Bulgaria, decide on the effecting of entries, notations and deletions in the said register, and perform the mandatory acts when a notary forfeits notary's rights;6. (Amended, SG No. 123/1997) select a notary for member of the competitive examination commission;7. (Repealed, SG No. 18/2003);8. monitor compliance with the obligations of the notaries and the assistant notaries, and take part through its representatives in disciplinary proceedings against such notaries and assistants in the prescribed cases;9. (Amended, SG No. 18/2003) direct and implement the activity for continuing education of notaries and of assistant notaries, as well as employees, and take care of the protection of the professional rights thereof;10. perform all duties which, under the law, the Statute or by resolution of the General Meeting, do not lie within the competence of another body.(2) (New, SG No. 18/2003) The Board of Notaries shall notify the Minister of Justice of the results of the checks referred to in Item 8 of Paragraph (1).Decision-MakingArticle 66. (1) The Board of Notaries shall make decisions by a majority of more than one half of the regular members present, and the alternate members present shall attend in a non-voting capacity. The alternate members shall have voting power when recruited to substitute for regular members of the Board. In a tie vote, the Chair shall have the casting vote.(2) The Board of Notaries may furthermore act without a meeting, if all voting members of the Board consent to the action so taken and sign the said action.Chair of Board of NotariesArticle 67. (1) The Chair of the Board of Notaries shall organize, direct and be responsible for the overall operation of the Board.(2) The Chair of the Board of Notaries shall perform the following functions:1. appoint the Administrative Secretary, the employees and the support staff of the Notary Chamber of Bulgaria;2. (Amended, SG No. 18/2003) manage and steward the property of the Notary Chamber of Bulgaria;3. implement the budget of the Notary Chamber of Bulgaria.Administrative SecretaryArticle 68. (1) The Administrative Secretary shall perform the following functions:1. direct the financial and estate management operations;2. coordinate the operation of the subsidiary bodies;3. organize the meetings of the Board of Notaries, prepare the materials for such meetings, and direct the immediate implementation of the decisions of the Board;4. direct and organize the work of the employees and of the support staff and make technical and administrative arrangements for the overall operation of the Notary Chamber of Bulgaria.(2) The Administrative Secretary may or may not be a member of the Notary Chamber of Bulgaria.Section IVSupervisory BoardCompositionArticle 69. (1) (Amended and supplemented, SG No. 123/1997, redesignated from Article 69 and amended, SG No. 18/2003) The Supervisory Board shall be composed of not fewer than three members.(2) (New, SG No. 18/2003) Eligibility for membership of the Supervisory Board shall be limited to members of the Notary Chamber of Bulgaria who:1. have at least two years' length of service as a notary;2. have not been elected as member of the said body for more than two consecutive terms of office.CompetenceArticle 70. (1) The Supervisory Board shall control the financial and estate-management operation of the Notary Chamber of Bulgaria and shall report to the General Meeting.(2) Upon ascertainment of any violation of the law, of the Statute of the Notary Chamber of Bulgaria, of a resolution of the General Meeting or of a decision of the Board of Notaries, the Supervisory Board shall prepare a report which shall be laid before the Board of Notaries or before the General Meeting, as the case may be.(3) The members of the Supervisory Board may attend the meetings of the Board of Notaries.Section VDisciplinary CommissionCompositionArticle 71. (1) The Disciplinary Commission shall be composed of not fewer than six members.(2) (Amended and supplemented, SG No. 123/1997, amended, SG No. 18/2003) Eligibility for membership of the Disciplinary Commission shall be limited to members of the Notary Chamber of Bulgaria who:1. have at least two years' length of service as a notary;2. have not been elected as member of the said body for more than two consecutive terms of office.CompetenceArticle 72. The Disciplinary Commission shall hear and determine disciplinary actions brought against notaries and assistant notaries according to the procedure provided for in the law.Chapter FourPECUNIARY LIABILITYGroundsArticle 73. (1) (Supplemented, SG No. 123/1997) A notary shall incur pecuniary liability for any loss or injury inflicted by culpable non- fulfilment of the obligations thereof, in accordance with the Obligations and Contracts Act which, however, shall be limited to the extent of the certified proprietary interest.(2) The State shall not be liable for the acts of any notary.Chapter FiveDISCIPLINARY LIABILITYBreaches of DisciplineArticle 74. (1) Any notary and assistant notary shall incur disciplinary liability for culpable non-fulfilment of any obligations under the law and the Statute of the Notary Chamber of Bulgaria.(2) (Repealed, SG No. 18/2003).Disciplinary SanctionsArticle 75. (Amended, SG No. 18/2003) (1) There shall be the following disciplinary sanctions:1. censure;2. a fine of BGN 100 or exceeding this amount but not exceeding BGN 1,000;3. warning of an exclusion from practice;4. suspension for a period of three months or exceeding this period but not exceeding five years.(2) The fine referred to in Item 2 of Paragraph (1) shall be collected in favour of the Notary Chamber of Bulgaria.Extinguishment of Disciplinary LiabilityArticle 76. (1) (Redesignated from Article 76 and amended, SG No. 18/2003) Disciplinary liability shall be extinguished by limitation after a period of six months reckoned from the detection of the breach and not later than two years after the commission of the said breach.(2) (New, SG No. 18/2003) A breach of discipline shall be considered detected as from the point in time whereat the said beach has come to the notice of the authority referred to in Article 77 (1) herein. Should the breach have come to the notice of the authority referred to in Article 77 (1) herein in connection with a complaint or an alert submitted, the said authority shall be obligated to institute disciplinary proceedings within three months should the said authority determine that a breach of discipline has been committed.Institution of Disciplinary ProceedingsArticle 77. (1) (Amended, SG No. 18/2003) Disciplinary proceedings shall be instituted on a motion by the Minister of Justice or as proprio motu by a decision of the Board of Notaries.(2) The body which has initiated the institution of disciplinary proceedings shall notify the notary concerned, who may give explanations within seven days after notification.(3) The Board of Notaries shall transmit the records to the Chair of the Disciplinary Commission upon lapse of the time limit under Paragraph (2).(4) The Chair of the Disciplinary Commission shall appoint a chair and two members of a disciplinary panel, entrusting the said panel with the hearing of the disciplinary action.Hearing of Disciplinary ActionArticle 78. (1) The chair of the panel shall appoint a time for a hearing and shall solicit attendance by the notary concerned, a representative of the Board of Notaries and a representative of the Minister of Justice, where the disciplinary proceedings have been institution on a motion thereby. The notary shall have the right to legal counsel.(2) The hearings of the Disciplinary Commission shall be held in private.(3) All relevant evidence shall be admissible in disciplinary proceedings.Delivery of DeterminationArticle 79. (1) The Disciplinary Commission shall deliver a reasoned determination on the disciplinary action.(2) Any such determination shall be rendered after deliberation in private by a majority of the members of the panel.(3) (New, SG No. 18/2003) A decision to impose a disciplinary sanction referred to in Item 4 of Article 75 (1) herein shall require the affirmative vote of more than two thirds of the members of the Disciplinary Commission. Absent a qualified majority, any such decision shall be made according to the procedure established by Paragraph (2).(4) (Renumbered from Paragraph (3) and amended, SG No. 18/2003) The Disciplinary Commission shall hear and determine the disciplinary action within one month after assignment.(5) (New, SG No. 18/2003) Any decision referred to in Paragraph (2) shall be communicated to the notary concerned, to the Board of Notaries and to the Minister of Justice according to the procedure established by the Code of Civil Procedure. The Minister of Justice shall designate by an order the official who shall certify service or receipt of any such communication.Appeal against, and Entry into Force of, DeterminationArticle 80. (Amended, SG No. 18/2003) (1) The determination of the Disciplinary Commission shall be appealable by the notary concerned, by the Board of Notaries and by the Minister of Justice before the Supreme Court of Cassation within fourteen days after communication.(2) The determination of the Disciplinary Commission shall be appealable by the Minister of Justice even where the disciplinary proceedings have been instituted proprio motu by a decision of the Board of Notaries.(3) The Supreme Board of Cassation shall consider the appeal on the merits in a panel of three judges. The determination shall be subject to cassation appeal before a five-judge panel.Striking Off of Disciplinary SanctionArticle 80a. (New, SG No. 18/2003) A disciplinary sanctions shall be stricken off if the following period has lapsed since the imposition thereof:1. one year: applicable to any sanction referred to in Item 1 of Article 75 (1) herein;2. two years, reckoned from the payment or enforced collection of the fine referred to in Item 2 of Article 75 (1) herein;3. three years, reckoned from the imposition of the sanction referred to in Item 3 of Article 75 (1) herein;4. five years, reckoned from the lapse of the period of the sanction referred to in Item 4 of Article 75 (1) herein.Chapter Five a(New, SG No. 18/2003)CONTROL OVER NOTARIES' PRACTICEForm of ControlArticle 80b. (1) (Supplemented, SG No. 64/2007) The Minister of Justice shall exercise control over the practice of each notary as to implementation of the law and the Statute of the Notary Chamber of Bulgaria. The Minister of Justice shall assign joint inspections to the inspectors of the Inspectorate with the Minister of Justice under the Judiciary System Act and to the inspector notaries public under Article 80c, Paragraph 4.(2) A check of the practice under Paragraph (1) shall be ordered by the Minister of Justice on his own initiative, in connection with an alert or a complaint by an interested party, as well as on a motion by the Board of Notaries. Any such order shall be unappealable.(3) A memorandum shall be drafted on the findings of any checks referred to in Paragraph (2), and a copy of the said memorandum shall be transmitted to the Board of Notaries.Notary Inspector StatusArticle 80c. (1) (Repealed, SG No. 64/2007). (2) Eligibility for nomination as notary inspector shall be limited to members of the Notary Chamber of Bulgaria who have practised law for an aggregate exceeding ten years, of which three years as a notary.(3) The notary inspectors referred to in Paragraph (2) shall be elected by the general meeting of the relevant notary association for a term of three years. Any such resolution shall require the affirmative vote of more than one half of the members present. The total number of notary inspectors may not be smaller than ten.(4) After the election referred to in Paragraph (3), the Board of Notaries shall compile the list of notary inspectors and shall submit the said list to the Minister of Justice.Chapter SixNOTARIAL FUNCTIONS OF NON-NOTARIESCommon RuleArticle 81. A person who is not a notary may perform notarial functions solely insofar as this is provided for by a law.Judicial AuthoritiesArticle 82. (1) Where there is no notary in the geographical jurisdiction, the notarial acts shall be performed by the recording magistrate at the competent regional court.(2) (Amended, SG No. 36/2004) Where there is a notary, the recording magistrate shall perform the notarial acts solely in respect of the documents and papers in the records of the Recording Office, as well as the notarial acts when substituting for a notary.Local Administration AuthoritiesArticle 83. (Amended, SG No. 18/2003) Where there is no notary or regional court in a nucleated settlement, the mayor of the said nucleated settlement, if not an administrative centre of a municipality or, if administrative centre of a municipality, the municipality mayor, the deputy mayor, the municipal secretary, as well as the lieutenant mayor, shall certify the signatures on private documents which are non-recordable deed polls, as well as the authenticity of transcripts and abstracts of documents and papers.Bulgarian Diplomatic Agents and Consular OfficersArticle 84. (Supplemented, SG No. 18/2003) The Bulgarian diplomatic agents and consular officers abroad may certify the date, contents and signatures of non recordable private documents, the authenticity of transcripts and abstracts of documents presented by Bulgarian citizens, and draft notarized wills of Bulgarian citizens. The signatures of foreign citizens shall be certified solely if the document is intended to operate in the Republic of Bulgaria.Chapter SevenNOTARIAL FEESSection IGeneral ProvisionsGrounds and AmountArticle 85. (1) Notarial fees shall be charged for:1. performance of notarial acts;2. performance of other acts by a notary.(2) A notarial fee of an identical amount shall be charged for performance of an identical notarial act by a notary and a public authority.(3) (Amended, SG No. 123/1997) The amounts of notarial fees shall be fixed according to a rate schedule adopted by the Council of Ministers on a motion by the Minister of Justice after consultation with the Notary Chamber of Bulgaria.PaymentArticle 86. Notarial fees shall be credited to the revenue of:1. the notary: in respect of any act whereof the performance is noted in the professional records of the said notary;2. the municipal budget: in respect of any notarial acts performed by local administration authorities;3. the state budget: in respect of any notarial acts performed by any other authorities, including substitution for a notary by a recording magistrate.PayersArticle 87. Notarial fees shall be payable by the person whereof the request for professional aid has been considered by a notary or another authority performing notarial functions. Several payers shall be liable solidarily.Payability of Notarial FeesArticle 88. (1) Notarial fees shall be payable upon performance of the requested act, and fees for verification of circumstances shall be payable upon submission of the request.(2) A notary shall have the right to demand payment of part of the fee due in advance.Collection of Notarial FeesArticle 89. (1) A bill in two or more identical copies, signed by the notary, shall be prepared for collection of the notarial fees, and one of the copies of the said bill shall be delivered to the payer.(2) Any such bill shall itemize the provisions in pursuance whereof the fees are due, the certified proprietary interest or the time expended in the case of a pro rata fee, the amounts of the fees due and the extra expenses, the amount of prepayment and the consequences of non-payment.(3) (Amended, SG No. 59/2007) In respect of any unpaid notarial fees, the notary shall have the option to move for the issuance of an enforcement order under Article 410 (1) of the Code of Civil Procedure regardless of the amount of the said fees.(4) (New, SG No. 18/2003) Should the proprietary interest and the fees charged have been miscalculated, the fees as actually due shall be collected on the basis of a bill signed by the notary and prepared within seven days after detection of the error.Section IITypes of Notarial FeesFlat Notarial FeesArticle 90. Flat notarial fees shall be collected solely for acts expressly listed in the rate schedule and shall not depend on the certified proprietary interest or the time expended.Pro Rata Notarial FeesArticle 91. Pro rata notarial fees shall be collected depending on the certified proprietary interest or time expended and shall have a specified minimum amount.Fees Per Certified Proprietary InterestArticle 92. (1) The percentage rate of the pro rata fee per certified proprietary interest shall vary in inverse proportion to the interest, and the fee may not exceed a specified maximum amount.(2) The rate schedule may provide that the fee under Paragraph (1) be collected in a reduced or increased amount in respect of specified types of certification.Fees Per Time ExpendedArticle 93. (1) Fees per time expended shall be due to the notaries only and shall be payable for:1. oral and written advice;2. mediation to clarify the will of the parties;3. search of records and obtaining of documents, papers and other such.(2) No fees shall be due for oral advice provided in connection with another act wherefor a fee is charged.Fees for Preparation and Verification of DocumentsArticle 94. (1) Fees for preparation and verification of documents shall be due to the notaries only.(2) The fee prescribed for certification shall be charged for preparation of a draft of a notarial act or another document.(3) One half of the fee prescribed for certification shall be charged for verification of a prepared draft of a document without notarization. Should the same document be notarized by the same notary within one month, only the other half of the fee shall be charged.Additional Notarial FeeArticle 95. (1) An additional notarial fee shall be payable for acts performed at the request of the client outside the notary's office beyond the opening hours or during weekends or public holidays.(2) Any fee referred to in Paragraph (1) shall be due in an aggregate amount of one half of the fee for certification.Section IIICertified Proprietary InterestTransactions in Real RightsArticle 96. (1) (Supplemented, SG No. 18/2003) In a transfer and certification of a right of ownership to things, the certified proprietary interest shall be:1. the fair market value of the thing;2. the fair market value of the more expensive thing: in respect of exchange;3. the fair market value of all parts: in respect of a deed of voluntary partition.(2) In a creation or transfer of other real rights, the certified proprietary interest shall be:1. in respect of a building right: 90 per cent of the fair market value of the land lot or the portion thereof, as the case may be, whereon the right is created or transferred;2. in respect of a right of use: the fair market rental charge which could accrue for the entire period of use or, if no such period is specified, for a period of three years.(3) (Repealed, SG No. 117. 1997, new, SG No. 123/1997) Should there be any difference between the appraised value referred to in 2 of the Supplementary Provisions and the certified proprietary interest, the notarial fee shall be charged on the larger of the two.Special CasesArticle 97. (1) The certified proprietary interest shall be:1. in respect of a transaction in a motor vehicle: the insured value thereof;2. in respect of a transaction in a business enterprise: the carrying amount of the enterprise's fixed assets for the last preceding quarter;3. in respect of an incorporation of a commercial corporation: the amount of capital;4. in respect of a sale of a succession: the fair market value of the corporeal immovables comprised in the succession;5. in respect of execution of wills: the fair market value of the devise, bequest, or legacy;6. in respect of administration of an estate: the monthly income from the estate;7. in respect of a transaction whereof the subject is a money claim: the nominal value of the claim, and in respect of a transaction payable in instalments: the aggregate amount of payments for the entire period or, if no such period is specified, for a period of three years.(2) In respect of amendments and supplements to transactions and documents, the certified proprietary interest shall be limited to the changes.(3) In respect of onerous transactions, the certified proprietary interest shall be the contract price if higher than the price as determined according to the procedure established by this Section.SUPPLEMENTARY PROVISIONS 1. Within the meaning given by this Act, "notarial fee" shall be the compensation which is paid to a notary for a service rendered. 2. (Amended, SG No. 118/1997) The fair market value shall be determined according to the price which could be obtained under normal market conditions, taking into consideration the nature of the subject-matter and all factors which influence the value upon sale or lease, as the case may be. Valuation shall be made according to the procedure established by Article 33 of the Local Taxes and Fees Act. TRANSITIONAL PROVISIONS 3. (Amended, SG No. 123/1997 and No. 24/1998) Any persons, who perform notarial functions at the region courts upon the entry of this Act into force, shall continue to perform the said functions according to the theretofore effective procedure but not later than the 1st day of October 1998. 4. (Amended, SG No. 123/1997) The Minister of Justice shall appoint the recording magistrates. 5. (1) The first general meeting of the Notary Chamber of Bulgaria shall be composed of the persons covered under 3 herein, who possess the qualifications covered under Items 1, 2, 4, 5, 6 and 7 of Article 8 herein and who have applied for admission to notarial practice within the time limit and according to the procedure established by 6 herein.(2) The Minister of Justice shall call the General Meeting within three months after the entry of this Act into force, with the following agenda:1. adoption of a Statute of the Notary Chamber of Bulgaria;2. election of the Chamber's bodies;3. determination of the amounts of the sum insured referred to in Article 30 herein;4. determination of the amount of mandatory entrance and annual membership subscription fees;5. adoption of the budget for the period remaining until the end of the current year.(3) The General Meeting may resolve to include other business as well into the agenda.(4) (New, SG No. 123/1997) Proceeding from the results of the first competitive examination, recording in the Register under Article 14 herein and the orders referred to in 6 herein shall be effected by the Ministry of Justice Inspectorate. After the conduct of the first general meeting of the Notary Chamber of Bulgaria and the election of the bodies thereof by the notaries, the said register shall be presented to the Board of Notaries.(5) (New, SG No. 123/1997, amended, SG No. 24/1998) The first General Meeting of the Notary Chamber of Bulgaria after conduct of the competitive examination referred to in Article 12 herein shall be called by the Minister of Justice within one month after the recording of not less than two thirds of the persons who have successfully passed the examination.(6) (New, SG No. 123/1997) The bodies of the Notary Chamber of Bulgaria, elected according to the procedure established by Item 2 of Paragraph (2), shall perform the functions thereof until conduct of a General Meeting according to Paragraph (5). 6. (Amended, SG No. 123/1997 and SG No. 24/1998) The Minister of Justice shall revoke any orders issued for recording in the Register of the Notary Chamber of Bulgaria or any notaries who have not been ranked at the competitive examination referred to in Article 12 herein. 7. (Amended, SG No. 123/1997) (1) (Redesignated from 7, SG No. 24/1998) Upon conduct of the first competitive examination referred to in Article 12 (2) herein, a district judge, designated by the President of the Supreme Court of Cassation, shall be a member of the commission in lieu of a representative of the Notary Chamber of Bulgaria.(2) (New, SG No. 24/1998) The first competitive examination shall be organized and financed by the Ministry of Justice. 8. (Amended, SG No. 123/1997) In the Act, the words "the Minister of Justice" and "the Ministry of Justice" shall be replaced passim, respectively, by "the Minister of Justice and European Legal Integration" and "the Ministry of Justice and European Legal Integration". 9. Any notarial proceedings pending upon the lapse of one year after the entry of this Act into force shall be completed by the recording magistrates 10. Until promulgation of the rate schedule referred to in Article 85 (3) herein, fees for notarial acts shall be charged according to the heretofore effective procedure.FINAL PROVISIONS 11. The Judicial System Act (promulgated in the State Gazette No. 59 of 1994; modified by Constitutional Court Judgment No. 8 of 1994, promulgated in No. 78 of 1994; modified by Constitutional Court Judgment No. 9 of 1994, promulgated in No. 87 of 1994; modified by Constitutional Court Judgment No. 17 of 1995, promulgated in No. 93 of 1995; amended in No. 64 of 1996; modified by Constitutional Court Judgment No. 19 of 1996, promulgated in No. 96 of 1996) shall be amended and supplemented as follows:1. In Item 3 of Article 35 (1), after the words "executive judges" there shall be placed a comma and there shall be inserted the words "recording magistrates".2. In Article 36 (2), the words "the notaries" shall be replaced by "the recording magistrates and the notaries", and the following second sentence shall be added: "Notary inspectors may be other notaries with at least ten years' length of service as notary, designated by the Notary Chamber of Bulgaria".3. In Item 4 of Article 56 (1) and Item 2 of Article 60, the words "the notaries" shall be replaced by "the recording magistrates".4. In Item 5 of Article 63 (1), the word "notaries" shall be replaced by "recording magistrates".5. In Article 109 the word "notary" shall be replaced by "recording magistrate".6. In Article 127 (5), after the word "notary" there shall be placed a comma and there shall be inserted "recording magistrate or assistant notary".7. Chapter Twelve shall be amended to read as follows:Chapter TwelveRECORDING MAGISTRATESArticle 158. (1) There shall be a recording magistrate at the regional courts.(2) A recording magistrate shall perform the notarial acts of recording, notations and expungement, searches of the recording books, as well as other acts as provided for by law.(3) In regional courts where there is no recording magistrate, the functions thereof shall be performed by the regional judge.(4) The Minister of Justice may assign an executive judge of the same court to perform concurrently the functions of a recording magistrate.Article 159. A recording magistrate may perform acts solely within the geographical jurisdiction thereof.Article 160. (1) Eligibility for appointment to the office of recording magistrate shall be limited to the persons who possess the qualifications under Article 126 herein.(2) A recording magistrate shall be appointed by the Minister of Justice on a motion by the president of the relevant regional court.(3) Where there are more than one recording magistrate in any recording office, the Minister of Justice shall appoint one of the said magistrates as head in order of seniority.Article 161. Upon assumption of office, a recording magistrate shall take the oath under Article 109 herein, and the provision of Article 110 herein. shall be complied with.Article 162. The provisions of Article 152, 154, 156 and 157 herein shall furthermore apply to recording magistrates."8. Article 166 shall be amended to read as follows:"Article 166. A judicial candidate, who has served for six months, may be appointed to act as an executive judge for a period of up to one month and, upon request of a notary, to act as a probationary notary until the lapse of the period provided for under Article 164 (1) herein. The written consent of the judicial candidate shall be required for appointment for a period exceeding one month."9. In Article 185, the word "notary" shall be replaced by "recording magistrate".10. In Article 190, Article 191 (2) and Article 195 (2), the words "the notaries" shall be replaced passim by "the recording magistrates".11. In Item 1 of Article 198, the words "the notarial services" shall be replaced by "the recording offices". 12. The Code of Civil Procedure (promulgated in Transactions of the Presidium of the National Assembly No. 12 of 1952; amended and supplemented in No. 92 of 1952, No. 89 of 1953, No. 90 of 1955, No. 90 of 1956, No. 90 of 1958, Nos. 50 and 90 of 1961; corrected in No. 99 of 1961; amended and supplemented in the State Gazette No. 1 of 1963, No. 23 of 1968, No. 27 of 1973, No. 89 of 1976, No. 36 of 1979, No. 28 of 1983, No. 41 of 1985, No. 27 of 1986, No. 55 of 1987, No. 60 of 1988, Nos. 31 and 38 of 1989, No. 31 of 1990, No. 62 of 1991, No. 55 of 1992, Nos. 61 and 93 of 1993, No. 87 of 1995, and Nos. 12, 26, 37 and 44 of 1996) shall be amended and supplemented as follows:1. In Article 302 (1), the words "the notary" shall be replaced by "the recording magistrate".2. In Article 315 (1), the words "the notary" shall be replaced by "the recording magistrate".3. In Article 319 (2), the words "notary" and "the notary" shall be replaced, respectively, by "recording magistrate" and "the recording magistrate".4. In Article 343 (2), the words "the notary" shall be replaced by "the recording magistrate".5. In Article 374, the words "the notary public's office" shall be replaced by "the recording office".6. In Article 392 (2), the words "the notary public's office" shall be replaced by "the recording office".7. Article 465 shall be amended and supplemented as follows:(a) Item (d) shall be amended to read as follows:"(d) notarial invitations, protests, certification of appearance or of non-appearance of persons before the notary for performance of acts therebefore";(b) there shall be inserted the following new Item:"(e) acceptance and return of documents and papers delivered for safekeeping, and";(c) Item (e) shall be redesignated to become Item (f).8. Article 466 (1) shall be amended to read as follows:"Article 466. (1) Notarial acts on transfer of ownership or on creation of a real right to corporeal immovables and certification of a right of ownership to such immovables shall be performed by the notary in the area of practice whereof the property concerned is located. Any recordings, notations and expungement in respect of corporeal immovables shall be effected by the recording magistrate in the geographical jurisdiction whereof he property concerned is located."9. In Article 467 the words "to the notary" shall be deleted.10. In Article 469 (2) the word "transactions" shall be replaced by "notarial acts".11. Article 470 shall be amended to read as follows:"Article 470. No notarial acts may be performed in respect of any transaction, document or other act contrary to the law or to good morals."12. Article 473 (1) shall be replaced by the following:"Article 473. (1) A refusal by a notary or a recording magistrate to perform a notarial act shall be appealable before the competent District Court within seven days after the refusal."13. Article 473a shall be repealed.14. Article 474 shall be amended and supplemented as follows:(a) Paragraphs (1) and (2) shall be replaced by the following:"Article 474. (1) For execution of a notarial act, a draft of the act shall be prepared in two or more identical copies. The shape, kind and size of the paper whereon the draft shall be handwritten or typed shall conform to a standard set by the Minister of Justice.(2) All copies of the draft must be prepared in a clean and legible form, must be handwritten in black or blue ink or must be typed";(b) in Paragraph (5), the words "witnesses personally known to the notary" shall be replaced by "witnesses of established identity".15. Article 480 (f) shall be replaced as follows:"(f) the persons employed in the notary's office and the employees of the recording office. "16. In Article 485, the following Paragraph shall be added:"(3) Should the private document be in a foreign language and be non-recordable, Article 478 herein shall apply, mutatis mutandis."17. In Article 488 (1), the words "the notary public's office" shall be replaced by "the notary".18. There shall be inserted the following two new articles:"Article 488a. In certification of appearance or non-appearance of persons before the notary for performance of acts therebefore, a memorandum of ascertainment shall be drafted. The consent or dissent of the appearing persons to the performance of the required acts shall be certified in the same manner. In drafting any such memorandum of ascertainment, insofar as there are no specific rules, the notary shall be guided by the provisions of Article 476 herein. Any such memorandum of ascertainment shall be drafted in duplicate, which shall be signed by the client and the notary, whereupon one copy shall be filed in a special book and the other copy shall be delivered to the client, certified as a copy.Article 488b. (1) Upon acceptance by the notary of documents and papers for safekeeping, a memorandum of acceptance shall be drafted in duplicate, which shall be signed by the client and the notary, whereupon one copy shall be filed in a special register and the other copy shall be delivered to the client, certified as a copy.(2) For return of any documents and papers delivered for safekeeping, a memorandum of return shall be drafted, which shall be signed by the applicant or by the applicant's heirs or a limited attorney-in-fact, as the case may be, whereupon the said memorandum shall be filed in the register". 13. In Article 24 (2) of the Succession Act (promulgated in the State Gazette No. 22 of 1949; corrected in No. 41 of 1949; amended in No. 275 of 1950, No. 41 of 1985, No. 60 of 1992, modified by Constitutional Court Judgment No. 4 of 1996, promulgated in No. 21 of 1996) there shall be added the following fourth sentence: "In drafting a notarized will, the notary shall be guided by the provisions of Article 474 (1) and (2) of the Code of Civil Procedure" 14. The Stamp Duty Act (promulgated in Transactions of the Presidium of the National Assembly No. 104 of 1951; amended and supplemented in No. 89 of 1959, No. 21 of 1960; State Gazette No. 53 of 1973, No. 87 of 1974, No. 21 of 1975, No. 21 of 1990, No. 55 of 1991, No. 100 of 1992, Nos. 69 and 87 of 1995, Nos. 37 and 100 of 1996) shall be amended and supplemented as follows:1. Article 2 (3) and (4) shall be repealed.2. Item (c) of Article 4 shall be replaced by the following:"(c) for performance of acts and services by executive judges and recording magistrates;"3. Article 4a (2) shall be repealed. 15. In 4 of the Supplementary Provisions of the Housing Associations Act (promulgated in the State Gazette No. 55 of 1978; amended in No. 102 of 1981, No. 45 of 1984, No. 75 of 1988, No. 46 of 1989, No. 21 of 1990, and No. 60 of 1992), the words "as well as for issuing and recording of notarial acts of housing associations and of the members thereof" shall be deleted. 16. In Item 10 of Article 9 (1) of the Value Added Tax Act (promulgated in the State Gazette No. 90 of 1993; amended in No. 57 of 1995, Nos. 16 and 56 of 1996), after the words "The Bar Act" there shall be added "and the Notaries Act." 17. In Article 13 (5) of the Aggregate Income Tax Act (promulgated in the State Gazette No. 132 of 1950; amended in Transactions of the Presidium of the National Assembly No. 104 of 1952, No. 60 of 1953, No. 15 of 1954, No. 64 of 1955, No. 91 of 1957, No. 90 of 1958, No. 91 of 1960, No. 105 of 1962; State Gazette No. 99 of 1963, No. 52 of 1965, Nos. 16 and 52 of 1966, Nos. 15 and 100 of 1967, No. 69 of 1968, No. 60 of 1970, No. 101 of 1972, No. 53 of 1973; corrected in No. 54 of 1973; amended and supplemented in Nos. 36 and 93 of 1979, No. 7 of 1982, No. 44 of 1984, No. 79 of 1985, No. 33 of 1988, No. 4 of 1989, Nos. 10 and 30 of 1990, No. 27 of 1991; corrected in No. 30 of 1991; amended in No. 82 of 1991, Nos. 19 and 62 of 1992, No. 23 of 1993, Nos. 38 and 83 of 1994, Nos. 53 and 59 of 1995, Nos. 28, 33, 58 and 59 of 1996), after the words "of the sole trader" there shall be placed a comma and there shall be inserted "of the notary". 18. The Agricultural Land Ownership and Use Act (promulgated in the State Gazette No. 17 of 1991; corrected in No. 20 of 1991; amended in No. 74 of 1991, Nos. 18, 28, 46 and 105 of 1992, No. 48 of 1993; modified by Constitutional Court Judgment No. 12 of 1993, promulgated in No. 64 of 1993; amended in No. 83 of 1993, No. 80 of 1994, No. 45 of 1995, No. 57 of 1995; modified by Constitutional Court Judgments Nos. 7 and 8 of 1995, promulgated in No. 59 of 1995; amended in No. 79 of 1996) shall be amended as follows:1. In Article 9 (6) and Article 9a (4), the words "The notary" shall be replaced by "The recording magistrate".2. In Article 23, the words "the notary public's office" shall be replaced by "the recording office".3. In 16 (1) of the Transitional and Final Provisions, the words "the stamp duties" shall be replaced by "the notarial fees". 19. The State Property Act (promulgated in the State Gazette No. 44 of 1996) shall be amended as follows:1. In Article 41 (2) and Article 48, the words "the notary" shall be replaced by "the recording magistrate".2. In Article 60, the words "the notarial service" shall be replaced by "the recording office". 20. The Municipal Property Act (promulgated in the State Gazette No. 44 of 1996) shall be amended as follows:1. In Article 32 (2), the words "the notary" shall be replaced by "the recording magistrate".2. In Article 35 (4), the words "the notarial service" shall be replaced by "the recording office". 21. In Article 31 (4) and Item 2 of Article 104 of the Regional and Urban Planning Act (promulgated in the State Gazette No. 29 of 1973; corrected in No. 32 of 1973; amended and supplemented in No. 87 of 1974, Nos. 3 and 102 of 1977, No. 36 of 1979, No. 3 of 1980, No. 45 of 1984, No. 19 of 1985, No. 36 of 1986, No. 14 of 1988, No. 31 of 1990; corrected in No. 32 of 1990; amended in No. 15 of 1991 and No. 63 of 1995), the words "the notary" shall be replaced by "the recording magistrate". 22. In Article 185 (b) of the Obligations and Contracts Act (promulgated in the State Gazette No. 275 of 1950; corrected in Transactions of the Presidium of the National Assembly No. 2 of 1951; amended in No. 69 of 1951, No. 92 of 1952; State Gazette No. 85 of 1963, No. 27 of 1973, No. 16 of 1977, No. 28 of 1982, No. 30 of 1990; Nos. 12 and 56 of 1993, and No. 83 of 1996), the words "the notaries" shall be replaced by "the recording magistrates". 23. The Commerce Act (promulgated in the State Gazette No. 48 of 1991; amended in No. 25 or 1992, Nos. 61 and 103 of 1993, No. 63 of 1994, No. 63 of 1995, Nos. 42, 59, 83 and 86 of 1996) shall be amended as follows:1. In Article 16 (2) the words "the notary public's office" shall be replaced by "the recording office".2. In Article 73 (5) the words "the notary public's office" and "the notary" shall be replaced, respectively, by "the recording office" and "the recording magistrate". 24. In Article 14 (1) of the Uniform Cadastre of the People's Republic of Bulgaria Act (promulgated in the State Gazette No. 35 of 1979; amended in No. 102 of 1981 and No. 45 of 1984), the words "The notarial services" shall be replaced by "The recording offices", and after the words "within one month" there shall be inserted "after the day of recording thereof, respectively". 25. The State Receivables Collection Act (promulgated in the State Gazette No. 26 of 1996) shall be amended as follows:1. In Article 59 (1), the words "the notary" shall be replaced by "the recording magistrate".2. In Article 60, the words "the notary public's office" shall be replaced by "the recording office". 26. In 1 of the Supplementary Provisions of The Bar Act (promulgated in the State Gazette No. 80 of 1991), after the word "notary" there shall be placed a comma and there shall be added "recording magistrate or assistant notary". 27. The Minister of Justice shall be entrusted with the implementation of this Act. 28. This Act shall enter into force one month after the date of promulgation thereof in the State Gazette.Act to Amend and Supplement the Notaries and NotarialPractice ActPromulgated, SG No. 18/25.02.2003................................................................... 46. In the Act, the words "the Minister of Justice and European Legal Integration" and "the Ministry of Justice and European Legal Integration" shall be replaced passim, respectively, by "the Minister of Justice" and "the Ministry of Justice". 46. In the Act, the words "probationary notary", "or probationary notary", "the probationary notary", "the probationary notaries", "and of the probationary notaries" and "and of the probationary notary" shall be deleted.TRANSITIONAL AND FINAL PROVISIONS 48. The bodies of the Notary Chamber of Bulgaria shall perform the activities thereof until the next ordinary elective general meeting. 49. Any probationary notaries serving upon the entry of this Act into force shall complete the probation thereof and shall pass an examination in theory and practice according to the hitherto effective procedure, and shall have the right to enter an examination of theory and practice if they have served for three months. 50. (1) Within six months after the entry of this Act into force, notaries shall be obligated to fulfil the obligations under Article 41 (1) of the Notaries and Notarial Practice Act, terminating the contractual relationships with the assistant notaries on a 30 days' notice.(2) In the cases referred to in Paragraph (1), the notary shall notify the Board of Notaries. Article 42 (2)of the Notaries and Notarial Practice Act shall apply, mutatis mutandis, to the striking off of the assistant notaries. 51. Within six months after the entry of this Act into force, notaries shall be obligated to bring the notary's offices thereof into conformity with the requirements established by Article 13 of the Notaries and Notarial Practice Act.TRANSITIONAL AND FINAL PROVISIONSof the Administrative Procedure Code(SG, No. 30/2006, effective 12.07.2006). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88. Everywhere in the Notaries and Notarial Practice Act (Promulgated, State Gazette No. 104/1996, amended, SG No. 117/1997, SG No. 118/1997, amended and supplemented, SG No. 123/1997, SG No. 24/1998, amended, SG No. 69/1999, amended and supplemented, SG No. 18/2003, supplemented, SG No. 29/2004, amended, SG No. 35/2004, amended and supplemented, SG No. 19/2005, supplemented, SG No. 43/2005) the words "the Supreme Administrative Court Act" shall be replaced by "the Administrative Procedure Code". For more information visit www.solicitorbulgaria.com id: 318 Fri, 01 Aug 2008 06:09:46 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-notaries-and-notarial-practice-act http://web.solicitorbulgaria.com/index.php/bulgarian-notaries-and-notarial-practice-act http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/NOTARIES_AND_NOTARIAL_PRACTICE_ACT.JPG EUR http://web.solicitorbulgaria.com/index.php/bulgarian-notaries-and-notarial-practice-act legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Section IIICorrection of JudgmentJudgment Non-WithdrawableArticle 246. After publishing the judgment in the matter of the case, the court may not reverse or modify the said judgment of its own motion.Correction of Apparent Error of FactArticle 247. (1) The court, acting on its own initiative or on a petition by the parties, may correct any apparent errors of fact made in the judgment.(2) The court shall send a communication to the parties regarding the correction sought, instructing the parties to present an answer within one week.(3) The court shall summon the parties to a public session where the said court deems this necessary.(4) The judgment of correction shall be served upon the parties and shall be appealable according to the procedure applicable to appellate review of the judgment.Modification of Judgment in Part Concerning CostsArticle 248. (1) Within the time limit for appellate review and, if the judgment is unappealable, within one month after rendition of the said judgment,… For more information visit http://www.solicitorbulgaria.com id: 321 Section IIICorrection of JudgmentJudgment Non-WithdrawableArticle 246. After publishing the judgment in the matter of the case, the court may not reverse or modify the said judgment of its own motion.Correction of Apparent Error of FactArticle 247. (1) The court, acting on its own initiative or on a petition by the parties, may correct any apparent errors of fact made in the judgment.(2) The court shall send a communication to the parties regarding the correction sought, instructing the parties to present an answer within one week.(3) The court shall summon the parties to a public session where the said court deems this necessary.(4) The judgment of correction shall be served upon the parties and shall be appealable according to the procedure applicable to appellate review of the judgment.Modification of Judgment in Part Concerning CostsArticle 248. (1) Within the time limit for appellate review and, if the judgment is unappealable, within one month after rendition of the said judgment, the court, acting on a motion by the parties, may amplify or modify the judgment as rendered in the part thereof concerning the costs.(2) The court shall send a communication to the opposing party regarding the amplification or modification sought, instructing the said party to present an answer within one week.(3) The ruling on the costs shall be rendered in camera and shall be served upon the parties. The said ruling shall be appealable according to the procedure applicable to appellate review of the judgment.Settlement after Conclusion of TrialArticle 249. The court shall invalidate the judgment rendered thereby if, before the entry into effect of the said judgment, the parties declare that they have reached a settlement and move for a dismissal of the case.Amplification of JudgmentArticle 250. (1) A party may move for amplification of the judgment if the court has not pronounced on the entire motion of the said party. A petition for such amplification may be submitted within one month after the service of the judgment or after the entry into effect of the said judgment.(2) The court shall send a communication to the opposing party regarding the amplification sought, instructing the said party to present an answer within one week. The motion shall be examined in public session with the parties being summoned, where the court deems this necessary with a view to clarifying the unresolved part of the dispute.(3) The court shall render an additional judgment which shall be appealable according to the standard procedure.Interpretation of JudgmentArticle 251. (1) Any disputes over interpretation of an effective judgment shall be examined by the court which has rendered the said judgment.(2) An interpretation may not be sought after the judgment has been enforced.(3) The court shall send a communication to the parties regarding the interpretation sought, instructing the said parties of the possibility to present an answer within one week.(4) The court shall summon the parties to a public session, where the said court deems this necessary.(5) The judgment of interpretation shall be appealable according to the procedure applicable to appellate review of the judgment which is interpreted.Section IVRendition of RulingsScope of ApplicationArticle 252. The court shall render a ruling where the court pronounces on any issues whereby the dispute is not resolved on the merits.Rulings WithdrawableArticle 253. Any rulings which do not conclude the case may be modified or vacated by the same court consequent to a change of circumstances, an error or an omission.Ruling: ContentArticle 254. (1) Any ruling whereby the court pronounces on conflicting motions by the parties, as well as any ruling whereby a motion is denied, shall be reasoned. The motions by the parties and the circumstances of the case in connection with the said motions shall be cited in the reasoning, insofar as this is necessary.(2) Where the ruling is rendered in camera, it must contain:1. the date and place of rendition;2. a reference to the court, the names of the judges of the court panel and of the parties;3. the number of the case in the matter of which the ruling is rendered;4. what the court decrees;5. against whom the costs are awarded;6. whether the ruling is appealable, before which court and within what time limit;7. signatures of the judges.Chapter NineteenSETTING TIME LIMIT IN CASE OF UNREASONABLE DELAYPetition to Set Time Limit in Case of Unreasonable DelayArticle 255. (1) Where the court fails to perform a particular procedural step in due time, the party may, during any stage of the proceeding, submit a petition to set an appropriate time limit for performance of the said step.(2) The petition shall be submitted care of the same court to the superior court. The court which examines the case shall forthwith transmit the petition together with the observations thereof to the superior court.Granting of PetitionArticle 256. (1) Where the court performs forthwith all steps stated in the petition and sends a communication to the party regarding this performance, the petition shall be presumed withdrawn.(2) The petition shall be transmitted for examination to the superior court if the party declares within one week after receipt of the communication under Paragraph (1) that it continues to maintain the said petition.Examination and Adjudication of Petition to Set Time LimitArticle 257. (1) A petition to set a time limit shall be examined by a judge of the superior court within one week after receipt of the said petition.(2) If the court finds an unreasonable delay, the court shall set a time limit for performance of the step. Otherwise, the court shall deny the petition. The ruling shall be unappealable.TITLE TWOAPPELLATE REVIEW OF JUDGMENTS AND RULINGS. REVERSAL OF EFFECTIVEJUDGMENTSChapter TwentyINTERMEDIATE APPELLATE REVIEWSubject of Appellate Review and Competent CourtArticle 258. (1) The judgments of regional courts shall be appealable before the district courts, whereas the judgments of district courts acting as courts of first instance shall be appealable before the appellate courts.(2) An appeal may be lodged either against the entire judgment or against separate parts thereof.Time Limit for Intermediate Appellate ReviewArticle 259. (1) The appeal shall be lodged care of the court which has rendered the judgment within two weeks after service of the said judgment upon the party.(2) The time limit for intermediate appellate review shall be interrupted by the submission of an application for legal aid and shall not run while the said application is considered.(3) A new time limit shall begin to run as from the entry into effect of the decision rejecting the application referred to in Paragraph (2), and in case any such application is granted, the new time limit shall begin to run as from the service of the first-instance judgment upon the assigned counsel as appointed.(4) The submission of a subsequent application for legal aid shall not suspend and shall not interrupt the time limit for intermediate appellate review.Intermediate Appellate Review Appeal: ContentArticle 260. The appeal shall contain:1. the name and address of the lodging party;2. an indication of the judgment appealed;3. a specification of the vice of the judgment;4. formulation of the prayer;5. the newly discovered or intervening facts which the appellant wishes to be taken into account upon adjudication of the case by the court of intermediate appellate review instance, and an exact listing of the reasons which have prevented the appellant from citing the newly discovered facts;6. the new evidence which the appellant wishes to be taken upon examination of the case by the court of intermediate appellate review instance, and a narrative of the reasons which have presented the appellant from citing or presenting the said evidence;7. signature of the appellant.Attachments to AppealArticle 261. The following shall be attached to the appeal:1. transcripts of the appeal and of the attachments thereto according to the number of persons who participate in the case as an opposing party;2. a power of attorney, where the appeal is lodged by an attorney-in-fact;3. the new written evidence cited in the appeal;4. documentary proof of payment of stamp duty.Verification by First-Instance CourtArticle 262. (1) If the appeal does not conform to the requirements referred to in Items 1, 2, 4 and 7 of Article 260 and Article 261 herein, a communication shall be sent to the party, instructing the party to cure the non-conformities within one week.(2) The appeal shall be returned where:1. the said appeal has been lodged after expiry of the time limit for appellate review, and2. the non-conformities are not cured in due time.(3) The order of return shall be appealable by an interlocutory appeal.Answer to Intermediate Appellate Review Appeal and IntermediateAppellate Review Cross-AppealArticle 263. (1) After accepting the appeal, the court shall transmit a duplicate copy thereof together with the attachments to the other party, which may submit an answer to the appeal within two weeks after receipt of the said copy and attachments. The provisions of Article 259 (2) to (4), Items 1, 2, 4 and 7 of Article 260 and Article 261 herein shall apply, mutatis mutandis, to any such answer.(2) Within the time limit for answer, the opposing party may lodge an intermediate appellate review cross-appeal. The intermediate appellate review cross-appeal must conform to the requirements applicable to an intermediate appellate review appeal.(3) The court shall verify the conformity of the intermediate appellate review cross-appeal according to Article 262 herein. After accepting the said cross-appeal, the court shall transmit a transcript thereof together with the attachments to the other party, which may submit an answer within one week after receipt of the said transcript and attachments.(4) The intermediate appellate review cross-appeal shall not be examined if the intermediate appellate review appeal is withdrawn or returned.(5) After expiry of the time limits referred to in Paragraphs (1) and (3), the case, together with the appeals and the answers, shall be transmitted to the superior court.Withdrawal of Intermediate Appellate Review Appeal and Waiver of Rightof AppealArticle 264. (1) During any stage of the proceeding, a party may withdraw, in whole or in part, an appeal lodged.(2) Any advance waiver of the right of appeal shall be invalid.Joining Intermediate Appellate Review AppealArticle 265. (1) Not later than during the first hearing in the court of intermediate appellate review instance, each of the co-parties to the case may join the appeal lodged by the co-plaintiff or co-respondent thereof. Joinder shall be effected by means of submission of a petition in writing with transcripts according to the number of parties.(2) In the cases of necessary joinder of parties, the court shall constitute the co-parties of the appellant ex officio.Citing New Facts and Evidence ProhibitedArticle 266. (1) In an intermediate appellate review proceeding, the parties may not allege new circumstances, cite and present evidence which the said parties could have cited and presented in due time in the first-instance proceeding.(2) Prior to the conclusion of the trial, the parties may:1. allege any new circumstances and cite and present any new evidence solely if the parties were unable to learn of such circumstances and to cite and present such evidence prior to the lodgment of the appeal or within the time limit for an answer, as the case may be;2. allege any circumstances which have occurred after the lodgment of the appeal or after expiry of the time limit for an answer, as the case may be, circumstances which are relevant to the case, and cite and present evidence of any such circumstances.(3) Taking of evidence which was not admitted by the first-instance court by reason of procedural breaches may not be moved for in an intermediate appellate review proceeding.Preparatory HearingArticle 267. (1) The intermediate appellate review court, sitting in camera, shall verify the admissibility of the appeals applying, mutatis mutandis, Article 262 herein, shall pronounce on admission of the new evidence cited by the parties, and shall schedule an examination of the case in public session. The issues of the admissibility of the appeals and the motions for evidence may alternatively be addressed during the first hearing of the case, if the court determines that the oral explanations of the parties must be heard as well.(2) The court may hear again witnesses and expert witnesses, if the court deems this necessary.Public Session of Intermediate Appellate Review CourtArticle 268. (1) The intermediate appellate review court shall examine the appeals, sitting in public session with the parties being summoned, and the appeals and the answers shall be reported during the hearing.(2) The taking of evidence shall follow the general rules and, if necessary, the hearing of the case shall be adjourned.(3) After addressing the issues referred to in Article 267 herein and taking of the evidence, the court shall proceed with the oral arguments, where to Article 149 (3) herein shall apply, mutatis mutandis.Intermediate Appellate Review Court: PowersArticle 269. The intermediate appellate review court shall pronounce ex officio on the validity of the judgment and on the admissibility in the appealed part of the said judgment. On the rest of the issues, the said court shall be limited by what is stated in the appeal.Adjudication in Case of Null and Inadmissible First-Instance JudgmentArticle 270. (1) Where a first-instance judgment is null, the intermediate appellate review court shall declare the nullity and, if the case is not dismissible, shall return the said case to the first-instance court for rendition of a new judgment.(2) The nullity of the judgment may be raised according to an action procedure sine die or by means of an opposition.(3) Where the judgment is inadmissible, the intermediate appellate review court shall invalidate the said judgment and shall dismiss the case. Where the grounds for invalidation are lack of cognizance of the dispute, the case shall be transmitted to the competent court. If an unbrought action has been examined, the judgment shall be invalidated and the case shall be returned to the first-instance court for pronouncement on the action brought.(4) The judgment of the district court may not be invalidated solely due to the fact that the action was cognizable in the regional court.Judgment in Case of Incorrect First-Instance JudgmentArticle 271. (1) Where the first instance judgment is valid and admissible, the intermediate appellate review court shall resolve the dispute on the merits, upholding or reversing the first instance judgment in whole or in part. If the judgment is not appealed by the other party, the position of the appellant may not be affected adversely by the new judgment.(2) Upon reversal of the judgment on the principal action, the pendency of any actions which may be joined thereto and on which the first-instance court has not pronounced shall be restored.(3) The court shall reverse the judgment also in respect of the co-parties of the appellant who have not appealed.Judgment in Case of Correct First-Instance JudgmentArticle 272. Where the intermediate appellate review court upholds the first-instance judgment, the said court shall reason the judgment thereof, inter alia by reference to the reasoning of the first-instance court.Applicability of First-Instance Proceeding RulesArticle 273. Save insofar as there are any special rules for the proceeding before the court of intermediate appellate review instance, the rules applicable to the proceeding before the court of first instance shall apply, mutatis mutandis.Chapter Twenty-OneAPPELLATE REVIEW OF RULINGSAppellate Review by Interlocutory AppealArticle 274. (1) Interlocutory appeals may be lodged against the rulings of the court:1. where the ruling bars the further progress of the case, and2. in the cases expressly specified in the law.(2) Where the rulings referred to in Paragraph (1) are rendered by a court of intermediate appellate review instance, the said rulings shall be appealable by an interlocutory appeal before the Supreme Court of Cassation. The rulings referred to in Paragraph (1), rendered by a panel of the Supreme Court of Cassation, shall be appealable before another panel of the same court.(3) Where the prerequisites covered under Article 280 (1) herein apply, appealability by an interlocutory appeal before the Supreme Court of Cassation shall apply to:1. the rulings of the intermediate appellate review courts whereby any interlocutory appeals against rulings barring the further progress of the case are left without consideration;2. the rulings whereby other proceedings are resolved on the merits or the progress of any such proceedings is barred.(4) Cassation appealability shall not apply to any rulings in cases with an appealable interest not exceeding BGN 1,000.Time Limit for Appellate Review and Interlocutory Appeal ContentArticle 275. (1) Interlocutory appeals shall be lodged within one week after communication of the ruling. If a ruling rendered during a court hearing is appealed, this time limit shall begin to run in respect of the party who appeared during the said hearing as from the day of the said hearing.(2) In respect of interlocutory appeals, the provisions of Article 259 (2) to (4), Articles 260, 261, 263 and 273 herein shall apply, mutatis mutandis.Answer to Interlocutory AppealArticle 276. (1) After accepting the appeal, the court shall transmit a transcript to the other party, which may submit an answer within one week after receipt of the said transcript.(2) After expiry of the time limit referred to in Paragraph (1), the appeal, together with the answer and the attachments thereto, if any such have been submitted, shall be transmitted to the superior court. The court shall attach a transcript of the ruling appealed.Stay of ProceedingArticle 277. An interlocutory appeal shall not stay the proceeding in the matter of the case, nor the enforcement of the ruling appealed, unless otherwise provided for in a law. The court competent to examine the appeal may stay the proceeding or the enforcement of the ruling appealed until adjudication of the interlocutory appeal, if the said court deems this necessary.Examination and Adjudication of Interlocutory AppealArticle 278. (1) Interlocutory appeals shall be examined in camera. The court, if it deems it necessary, may examine the appeal sitting in public session.(2) If it vacates the ruling appealed, the court itself shall address the issue under the appeal. The court may also take evidence, if the court deems this necessary.(3) The ruling rendered on the interlocutory appeal shall be binding upon the inferior court.(4) Save insofar as there are any special rules in this Section, the rules applicable to the appellate review of judgments shall apply, mutatis mutandis, to the proceeding on interlocutory appeals.Appellate Review of OrdersArticle 279. The provisions of Articles 274 to 278 herein shall furthermore apply, mutatis mutandis, to the interlocutory appeals against the orders of the court.Chapter Twenty-TwoCASSATION APPELLATE REVIEWScope of ApplicationArticle 280. (1) Cassation appealability before the Supreme Court of Cassation shall apply to any intermediate appellate review judgments wherein the court has pronounced on a material issue of substantive law or procedural law which:1. is addressed in conflict with the case law of the Supreme Court of Cassation;2. has been addressed by the courts in a conflicting manner;3. is relevant to the accurate application of the law, as well as to the progress of the case.(2) Cassation appealability shall not apply to any judgments in the matter of cases with an appealable interest not exceeding BGN 1,000.Grounds for Cassation Appellate ReviewArticle 281. A cassation appeal shall be lodged where:1. the judgment is null;2. the judgment is inadmissible;3. the judgment is incorrect by reason of violation of the substantive law, a material breach of the rules of court procedure, or lack of justification.Stay of Enforcement of Intermediate Appellate Review JudgmentArticle 282. (1) The lodgment of a cassation appeal shall not stay the enforcement of the judgment.(2) The appellant may move for a stay of the enforcement of the intermediate appellate review judgment. In such case, the appellant shall be obligated to furnish due security. The amount of the security shall be set at:1. in judgments on pecuniary receivables: the amount awarded;2. in judgments regarding rights in rem: the appealable interest.(3) In all other cases, the amount of security shall be set by the court.(4) Where security has been furnished in connection with the enforcement of a judgment regarding rights in rem to corporeal immovables or movable things, the said security shall be retained if, within two weeks after the cassation appeal has been left without consideration, the holder of the receivable brings an action for compensation for the damages resulting from the delay of enforcement.(5) Where enforcement of the awarded receivable has been secured, the security shall be released after the action is dismissed or the proceeding is terminated.(6) If the intermediate appellate review judgment is reversed, the enforcement of the said judgment shall be stayed. In case the new judgment is different from the previous judgment, the provision of sentence two of Article 245 (3) herein shall apply, mutatis mutandis.Time Limit for Cassation Appellate ReviewArticle 283. The appeal shall be lodged care of the court which has rendered the intermediate appellate review judgment within one month after service of the said judgment upon the party. The time limit for cassation appellate review shall be interrupted according to Article 259 (2), (3) and (4) herein.Cassation Appeal: ContentArticle 284. (1) The appeal must contain:1. the name and address of the lodging party;2. an indication of the judgment appealed;3. an accurate and reasoned narrative of the cassation grounds;4. formulation of the prayer;5. signature of the appellant.(2) The cassation appeal shall be countersigned by a lawyer or a legal adviser, save as where the appellant or the representative thereof possesses a licensed competence to practise law. A power of attorney on the countersigning or a certificate of licensed competence to practise law shall be attached to the appeal.(3) The following shall be attached to the appeal:1. a narrative of the grounds for cassation appealability under Article 280 (1) herein;2. transcripts of the appeal and of the attachments thereto according to the number of persons who participate in the case as an opposing party;3. a power of attorney, where the appeal is lodged by an attorney-in-fact;4. documentary proof of payment of stamp duty.Verification of Conformity of Cassation AppealArticle 285. (1) The intermediate appellate review court shall verify the conformity of the appeal, and if the said appeal does not conform to the requirements covered under Article 284 herein, the said court shall send a communication to the party, instructing the party to cure the non-conformities within one week.(2) If the appeal is conforming, the intermediate appellate review court shall transmit the said appeal together with the papers exchanged and the case to the Supreme Court of Cassation.Return of Cassation AppealArticle 286. (1) The appeal shall be returned by the intermediate appellate review court where:1. the said appeal has been lodged after expiry of the time limit for appellate review;2. the non-conformities are not cured in due time;3. the intermediate appellate review judgment is not subject to cassation appellate review under Article 280 (2) herein.(2) The order of return shall be appealable by an interlocutory appeal.Answer to Cassation Appeal and Cassation Cross-AppealArticle 287. (1) After accepting the appeal, the intermediate appellate review court shall transmit a transcript thereof together with the attachments to the other party, which may submit an answer to the appeal within one month after receipt of the said copy and attachments. The provisions of Article 259 (2) to (4) and Article 284 herein shall apply, mutatis mutandis, to any such answer.(2) The opposing party under the appeal may lodge a cassation cross-appeal within the time limit for answer. The cassation cross-appeal must conform to the requirements applicable to a cassation appeal.(3) If a cassation cross-appeal is lodged in due time, the intermediate appellate review court shall verify the conformity of the said appeal and shall transmit a transcript thereof together with the attachments thereto to the other party, which may submit an answer within two weeks after receipt of the said transcript and attachments.(4) The cassation cross-appeal shall not be examined if the cassation appeal is not examined.Admission of Cassation Appellate ReviewArticle 288. The Supreme Court of Cassation, sitting in camera in a three-judge panel, shall render a ruling on admission of the cassation appellate review.Summoning of Parties in Cassation ProceedingArticle 289. Prior to the first day of each month, the Supreme Court of Cassation shall promulgate in the State Gazette the days on which the said Court is to sit during the next succeeding month, and the cases subject to examination. Where circumstances necessitate any departures from this procedure, the parties shall be notified by means of communication.Examination of Cassation AppealArticle 290. (1) The appeal shall be examined by a three-judge panel of the Supreme Court of Cassation sitting in public session.(2) The Supreme Court of Cassation shall verify the correctness of the intermediate appellate review judgment solely on the grounds cited in the appeal.Reconciliation of Case LawArticle 291. Where the intermediate appellate review judgment has been rendered with a conflicting case law, the Supreme Court of Cassation:1. shall specify, by a reasoned judgment, the conflicting judgment wherein the case law it considers correct; in such case, the said Court shall render a judgment in the matter of the case on the basis of the said case law;2. where it holds that the case law in the judgments is incorrect, the said Court shall specify, by a reasoned judgment, why the said case law is incorrect; in such case, the said Court shall render a judgment interpreting the law on the basis of the circumstances of the case;3. where it holds that the case law in the conflicting judgments is inapplicable to the pending dispute, the said Court shall specify, by a reasoned judgment, why the said case law is inapplicable; in such case, the said Court shall render a judgment interpreting the law on the basis of the circumstances of the case.Proposal for Interpretative JudgmentArticle 292. Where issues have been addressed in a conflicting manner by the Supreme Court of Cassation, the panel shall propose to the general meeting to render an interpretative judgment and shall stay the proceeding in the matter of the case.Cassation JudgmentArticle 293. (1) The Supreme Court of Cassation shall leave standing or shall reverse, in part or in whole, the judgment appealed.(2) The judgment shall be reversed as wrong where the substantive law has been violated or where material breaches of the rules of court procedure have been committed or the judgment is unjustified.(3) The court shall return the case for a new examination by another panel of the intermediate appellate review court solely if any procedural steps at court have to be repeated or new such steps have to be performed.(4) Where the judgment appeal is null or inadmissible, the rules of Article 270 herein shall apply.Re-examination of CaseArticle 294. (1) The court whereto the case has been transmitted shall examine the said case according to the standard procedure, with the proceeding commencing from the legally non-conforming step which has served as grounds for reversal of the judgment. The instructions of the Supreme Court of Cassation regarding the application and interpretation of the law shall be binding upon the court whereto the case has been returned.(2) Upon re-examination of the case, the court shall furthermore pronounce on the costs of conduct of the case at the Supreme Court of Cassation.Cassation Appellate Review of Judgment upon Re-examination of CaseArticle 295. (1) Where the prerequisites covered under Article 280 (1) herein apply, the second judgment of the court of intermediate appellate review instance may be appealed over violations committed upon the re-examination of the case. Any such appeal shall be examined by a three-judge panel of the Supreme Court of Cassation which, upon reversal, shall resolve the dispute on the merits.(2) Where the grounds for reversal necessitate the performance of any procedural steps at court, the Supreme Court of Cassation shall reverse the intermediate appellate review judgment and shall render a new judgment, where after the said Court shall perform the requisite steps. In such case, the rules applicable to the intermediate appellate review proceeding shall apply, mutatis mutandis.Chapter Twenty-ThreeEFFECT OF JUDGMENTSEntry into EffectArticle 296. The following judgments shall enter into effect:1. which are unappealable;2. where against no intermediate appellate review appeal or cassation appeal has been lodged within the time limit set by the law, or an appeal lodged has been withdrawn; in the latter case, the judgment shall enter into effect as from the day of entry into effect of the ruling whereby the case is dismissed;3. in respect of which a cassation appeal has not been admitted to examination or has been denied consideration.Respect of JudgmentArticle 297. An effective judgment shall be binding upon the court which has rendered the said judgment and on all courts, institutions and municipalities in the Republic of Bulgaria.Extent of EffectArticle 298. (1) A judgment shall enter into effect solely between the same parties, in respect of the same demand, and on the same grounds.(2) An effective judgment shall furthermore have effect in respect of the heirs of the parties, as well as in respect of the successors thereto.(3) A judgment rendered in the matter of actions for civil status, including in the matter of matrimonial actions, shall have effect in respect of everybody.(4) A judgment shall furthermore enter into effect in respect of any motions and oppositions regarding a right of retention and set-off granted by the said judgment.Non-Re-resolvabilityArticle 299. (1) A dispute, which has been resolved by an effective judgment, may not be re-resolved save in the cases where the law provides otherwise.(2) The re-instituted case shall be dismissed ex officio by the court.(3) The effective judgment may not be contested by the party as rendered in a simulated procedure.Binding Effect of SentenceArticle 300. An effective sentence of a criminal court shall be binding upon the civil court which examines the civil consequences of the act, regarding whether the act has been committed, the wrongfulness of the said act and the guilt of the perpetrator.Extension of Effect on Action by ProsecutorArticle 301. Where the case has been commenced on an action brought by a prosecutor, the effective judgment shall be furthermore binding upon the party in the interest whereof the prosecutor has brought the action.Binding Effect of Judgment on Administrative DisputeArticle 302. An effective judgment on an administrative dispute shall be binding upon the civil court regarding whether the administrative act is valid and legally conforming.Chapter Twenty-FourREVERSAL OF EFFECTIVE JUDGMENTSGrounds for ReversalArticle 303. (1) The interested party may move for a reversal of an effective judgment where:1. new circumstances or new written evidence of material relevance to the case are discovered which could not have been known upon adjudication of the said case or which the party could not procure in due time;2. falsity of a document, of testimony of a witness, of a conclusion of an expert witness, upon which the judgment is founded, is established according to the due judicial procedure, or a criminal act by the party, by the representative thereof, by a member of the court panel or by a server in connection with the adjudication of the case, is so established;3. the judgment is based upon a decree by a court or by another government institution which has subsequently been vacated;4. another effective judgment, which conflicts with the judgment, has previously been rendered between the same parties, in respect of the same demand, and on the same grounds;5. the party, consequent to a breach of the respective rules, has been deprived of an opportunity to participate in the case or has not been duly represented, or where the said party has been unable to appear in person or through counsel owing to special unforeseen circumstances which the said party was unable to overcome;6. the party, upon a breach of the respective rules, was or, respectively, was not represented by a person referred to in Article 29 herein.(2) It shall be inadmissible to reverse a judgment whereby a divorce or a marriage annulment is decreed or a marriage is declared non-existent.(3) A reversal of a judgment by default may not be sought for a reason for which a reversal of the said judgment could have been sought or is sought under Article 240 (1) herein, or an action could have been brought or is brought under Article 240 (2) herein.Reversal on Petition by Third PartyArticle 304. The party in respect of whom the judgment has effect may also move for a reversal of the judgment, even though the said person has not been party to the case (Article 216 (2) herein).Time Limit for ReversalArticle 305. A petition for reversal shall be submitted within three months reckoned from the day:1. whereon the petitioner learnt of the intervening circumstances, or from the day whereon the petitioner could procure the new written evidence: in the cases referred to in Item 1 of Article 303 (1) herein;2. of entry into effect of the judgment or of learning of the sentence, but not later than one year after the entry into effect of the said sentence: in the cases referred to in Item 2 of Article 303 (1) herein;3. of learning of the act of reversal, but not later than one year after the entry into effect of the said act: in the cases referred to in Item 3 of Article 303 (1) herein;4. of entry into effect of the last judgment: in the cases referred to in Item 4 of Article 303 (1) herein;5. of learning of the judgment, but not later than one year after the entry into effect of the said judgment: in the cases referred to in Items 5 and 6 of Article 303 (1) and Article 304 herein.Petition for Reversal: ContentArticle 306. (1) A petition for reversal must conform to the requirements covered under Articles 260 and 261 herein and must contain an accurate and reasoned narrative of the grounds for reversal. If the petition does not conform to these requirements, the party shall be sent a communication, instructing the party to cure the non-conformities within one week.(2) Upon failure to cure the non-conformities of the petition for reversal in due time, the provisions of Article 286 herein shall apply.(3) The petition shall be submitted care of the first-instance court. A transcript shall be attached to the said petition, and the said transcript shall be served upon the opposing party. The said party may give an answer within one week after receipt of the transcript.Petition for Reversal: Examination and AdjudicationArticle 307. (1) The Supreme Court of Cassation, sitting in camera, shall pronounce on the admissibility of the petition for reversal.(2) The petition for reversal shall be examined by the Supreme Court of Cassation sitting in public session, within which the parties shall be heard and the requisite evidence shall be taken. Where a reversal of a judgment of the Supreme Court of Cassation is sought, the petition shall be examined by another three-judge panel of the Supreme Court of Cassation.(3) If it determines that the petition is well-founded, the Supreme Court of Cassation shall reverse the judgment in whole or in part and shall return the case for a new examination by another panel of the competent court, also specifying the point wherefrom the new examination of the case must commence.(4) In the case referred to in Item 4 of Article 303 (1) herein, the court shall reverse the incorrect judgment.New Examination of CaseArticle 308. The general rules shall apply upon the new examination of the case in the matter of which the judgment has been reversed.Stay of EnforcementArticle 309. (1) The submission of a petition for reversal shall not stay the enforcement of the judgment. The court, acting on a motion by the party, may stay the enforcement under the terms established by Article 282 (2) to (6) herein.(2) If the judgment is reversed, the enforcement of the said judgment shall be stayed. In case the new judgment is different from the previous judgment, the provision of sentence two of Article 245 (3) herein shall apply, mutatis mutandis.PART THREESPECIAL ACTION PROCEEDINGSChapter Twenty-FiveSUMMARY PROCEEDINGScope of ApplicationArticle 310. The procedure established by this Chapter shall apply to examination of any actions:1. for labour remuneration, to pronounce a dismissal wrongful and to revoke such dismissal, for compensation for the period of unemployment due to the dismissal, and for correction of the grounds for the dismissal as entered in the work book or in other documents;2. for protection of premises leased or loaned for use;3. for establishment and cessation of an infringement of rights under the Copyright and Neighbouring Rights Act, the Patents and Utility Models Registration Act, the Marks and Geographical Indications Act, the Industrial Designs Act, the Topographies of Integrated Circuits Act, and the Protection of New Plant Varieties and Animal Breeds Act; 4. for ascertainment and cessation of violation of rights under the Consumer Protection Act; 5. other actions whereof the examination in a summary proceeding is regulated in a law.Verification of Statement of ActionArticle 311. (1) On the day of receipt of the statement of action, the court shall verify the conformity thereof and the admissibility of the action.(2) The court shall instruct the plaintiff to amplify, particularize the allegations thereof and to eliminate the contradictions therein, where the said allegations are obscure, deficient or imprecise.Preparation of Case in CameraArticle 312. (1) On the day of receipt of the answer of the respondent or of the expiry of the time limit for receipt of the said answer, the court, sitting in camera, shall:1. schedule a hearing of the case for a date within three weeks;2. prepare a written report on the case;3. invite the parties to reach a settlement and explain thereto the advantages of the various procedures for voluntary resolution of the dispute;4. pronounce on the motions for evidence, admitting the evidence which is relevant, admissible and requisite;5. determine an amount and a time limit for depositing of the costs of taking of evidence.(2) The court shall serve upon the parties a transcript of the order, and, in addition to the said transcript, shall serve upon the respondent a transcript of the written answer and the evidence attached thereto, and shall instruct the parties to take a stand, within one week, in connection with the instructions given and the report on the case and to undertake the relevant procedural steps, as well as advise the parties of the consequences of non-compliance with the instructions.(3) The court shall pronounce on any motions made in due time in connection with the instructions and the report on the case on the day of receipt of the said motions. The order on the motions made shall be communicated to the parties.Consequences of Non-compliance with InstructionsArticle 313. Where the parties fail to comply with the instructions of the court within the time limit set, the said parties shall forfeit the possibility to do so later, unless the omission is due to special unforeseen circumstances.Joinder of ActionsArticle 314. (1) The plaintiff may, by the stand thereof on the report of the court, and the respondent may, by the written answer, approach the court with a motion to pronounce, by the judgment thereof, regarding the existence or non-existence of a disputed legal relation upon which the outcome of the case depends in whole or in part.(2) Counter actions may not be brought, third parties may not be impleaded, and actions may not be brought against any such third parties according to the procedure of this proceeding.(3) In actions for eviction from premises leased or loaned for use, oppositions as to ownership and to improvements made in the immovable shall be inadmissible.Examination of CaseArticle 315. (1) During the hearing for examination of the case, the court shall reinvite the parties to reach a settlement, and if no such settlement is reached, the court shall take the evidence presented and shall hear the oral arguments.(2) During the same hearing, the court shall assign a day whereon the said court is to publish the judgment thereof and which shall be the day as from which the time limit for appellate review of the said judgment shall begin to run.Time Limit for Rendition of JudgmentArticle 316. The court shall publish the judgment thereof with the reasoning within two weeks after the hearing during which the examination of the case was concluded.Applicability of Rules before Intermediate Appellate Review CourtArticle 317. The rules of this Chapter shall apply, mutatis mutandis, to the proceeding before the intermediate appellate review court.Chapter Twenty-SixPROCEEDING IN MATRIMONIAL SUITSMatrimonial ActionsArticle 318. The actions for divorce, for marriage annulment and for establishment of the existence or non-existence of a marriage between the parties shall be examined according to the procedure established by this Chapter.Special Capacity to SueArticle 319. Spouses who are minors and limited interdicts may bring matrimonial actions and be sued under such actions of their accord.Divorce When Wife PregnantArticle 320. The proceeding in the matter of a matrimonial action shall be stayed on a motion by the wife if she is pregnant and until the child attains the age of twelve months.Examination of CaseArticle 321. (1) During the first hearing for examination of the case on an action for divorce, the parties must appear in person. In case of non-appearance of the plaintiff without reasonable excuse, the proceeding shall be dismissed.(2) After addressing the preliminary issues and the issues pertaining to the conformity of the statement of action, the court shall be obligated to redirect the parties to mediation or another procedure for voluntary resolution of the dispute.(3) If the parties reach agreement on commencement of mediation or another procedure for voluntary resolution of the dispute, the case shall be stayed.(4) Each of the parties may move for a resumption of the proceeding in the matter of the case within six months. Unless such a motion is made, the case shall be dismissed.(5) Where agreement is reached, depending on the content of the said agreement the case shall be dismissed or a proceeding for divorce by mutual consent shall be proceeded with.(6) If the parties fail to reach agreement on a mediation procedure or another procedure for voluntary resolution of the dispute, the examination of the case shall continue.Exhaustive GroundsArticle 322. (1) In an action for divorce, the plaintiff must raise all grounds for the deep and irrevocable break-down of the marriage. Any uncited grounds, which have occurred and have become known to the spouse prior to the conclusion of the oral arguments, may not serve as grounds for bringing a new action for divorce.(2) All matrimonial actions may be joined there between. The demands for exercise of parental rights, interspousal personal relations and child maintenance, use of the matrimonial home, interspousal maintenance and the surname shall mandatorily be brought and examined by such actions.(3) The provisions of Paragraphs (1) and (2) shall furthermore apply to the respondent regarding the actions which the said respondent could have brought.(4) An action for marriage annulment by reason of a violation of the age qualification under Article 12 and by reason of threat under Item 2 of Article 96 (1) of the Family Code may not be brought after the action for divorce is dismissed.Interim MeasuresArticle 323. (1) Acting on a petition by any of the parties, the court where before the action for divorce or for marriage annulment has been brought shall rule on interim measures regarding the maintenance, the matrimonial home and the use of the property acquired during the marriage, as well as regarding the care of the children and the maintenance thereof.(2) The court shall pronounce on any such petition during the hearing during which the said petition is submitted, unless additional evidence has to be taken. In such case, a new hearing shall be scheduled within two weeks.(3) The ruling referred to in Paragraph (1) shall be unappealable but may be modified by the same court.Judgment on Matrimonial ActionsArticle 324. A judgment by default and a judgment upon acknowledgment of the demand shall not be rendered on matrimonial actions.Entry into Effect of Judgment of DivorceArticle 325. A judgment on divorce shall enter into effect, even if the said judgment has been appealed solely in the part thereof concerning the fault.Surname after DivorceArticle 326. By the judgment whereby the divorce is granted, the court shall also address the issue of the surname which the spouses will be able to use in future.Continuing Case upon Plaintiff's DeathArticle 327. (1) When the plaintiff spouse dies and the action for divorce is based on the fault of the surviving spouse, the court shall allow the descendants or ascendants called to accept the succession to state whether they wish to continue the case. This rule shall furthermore apply to an action for marriage annulment, if the surviving spouse acted in bad faith.(2) If nobody states a wish to continue the case within the time limit allowed, the said case shall be dismissed. The case shall also be dismissed if the action for divorce is not based on the fault of the surviving spouse or if, upon an action for marriage annulment, the surviving spouse acted in good faith.(3) Where the case is continued, the court shall pronounce solely on the culpable behaviour of the survivor cited by the deceased spouse as grounds for marriage annulment.Continuing Case upon Respondent's DeathArticle 328. Upon the death of the respondent, the persons referred to in Article 327 herein may continue the case if the action brought is in reference to Article 13 of the Family Code and the plaintiff acted in bad faith when the marriage was contracted.Costs of CaseArticle 329. (1) The court costs of matrimonial suits shall be awarded against the spouse at fault or the spouse who acted in bad faith. Where there is no fault or bad faith, or where both spouses are at fault or acted in bad faith, the costs shall be left borne by each one of them as incurred.(2) Upon dismissal of the action for divorce, the costs shall be determined according to the procedure established by Article 78 herein. The same procedure shall furthermore apply to determination of costs upon appellate review of the judgment.Divorce by Mutual ConsentArticle 330. (1) Upon a motion for divorce by mutual consent, the spouses shall appear in person during the court hearing.(2) Where any of the spouses fails to appear without reasonable excuse, the case shall be dismissed.(3) After satisfying itself that the consent of the spouses to divorce is serious and firm, and after determining that the agreement reached under Article 101 of the Family Code does not conflict with the law and is in the interest of the children, the court shall grant the divorce and shall endorse the agreement by a judgment.(4) Examination of the petition shall be adjourned solely if additional evidence has to be taken.(5) The judgment whereby divorce by mutual consent is granted shall be unappealable.Chapter Twenty-SevenPROCEEDING IN CIVIL STATUS CASESGoverning ProvisionsArticle 331. (1) Any actions to establish or disavow filiation, as well as any actions to terminate adoption, shall be examined according to the procedure established by this Chapter.(2) Articles 319 and 327 herein shall apply, mutatis mutandis, to any actions covered under Paragraph (1) regarding the continuing of the case by the heirs of the adopter to establish that it is well-founded.Joinder of Actions for MaintenanceArticle 332. (1) An action for maintenance of the child may be joined to the action to establish paternity or maternity, but interim maintenance may not be awarded in the matter of such cases.(2) An action for compensation of the adoptee who has contributed to an augmentation of the property status of the adopter may be joined to the action to terminate adoption. Any such action may be brought as a counter action as well.Duty to CooperateArticle 333. (1) The parties to a filiation case shall be obligated to cooperate upon the preparation of the conclusion by the expert witness, unless the research involves a substantial or sustained risk to the life or health of the said parties.(2) The court shall pronounce on a refusal to cooperate by a ruling which shall be subject to appellate review by separate appeal. Where the refusal is rightful, the court shall determine another method of research into filiation which does not involve any such risk.(3) For obtaining any samples whereupon the inviolability of the body is not impaired, the court shall command, where necessary, the application of appropriate methods of compulsion.(4) If evidence cannot be taken according to the procedure established by Paragraphs (1) to (3), the court may decree that the requisite post-mortem samples be taken except in the cases where this is prohibited by a law.Judgment on Civil Status ActionArticle 334. A judgment by default and a judgment upon acknowledgment of the demand shall not be rendered on any action for civil status.Termination of Proceeding upon Child's DeathArticle 335. The proceeding in the matter of cases to disavow paternity shall be terminated in the event of death of the child.Chapter Twenty-EightINTERDICTIONCommencement of ProceedingArticle 336. (1) The full or limited interdiction of a person may be moved for by a statement of action by the spouse, by members of the immediate family, by a prosecutor and by any person who has standing to do so.(2) The participation of a prosecutor in the proceedings referred to in Paragraph (1) shall be mandatory.Immediate Impressions of PersonArticle 337. (1) The person sought to be interdicted must be examined in person and, if necessary, the attendance thereof shall be compelled. Where the said person is placed in a medical-treatment facility and the health condition thereof precludes that he or she be brought in person to a court hearing, the court shall be obligated to obtain an immediate impression of the condition of the said person.(2) If, after the examination, the court deems it necessary, the court shall appoint a provisional curator to take care of the personal and property interests of the person referred to in Paragraph (1).Examination of ActionArticle 338. (1) The court shall pronounce on the statement of action after an examination of the person sought to be interdicted and of the family members thereof. If this proves insufficient, the court shall proceed with taking of other evidence and hearing of expert witnesses.(2) If the person is placed in a medical-treatment facility, the court shall procure information on the condition of the said person.(3) After the entry into effect of the judgment whereby the person is interdicted, the court shall communicate this to the authority on tutorship and on curatorship in order to institute tutorship or curatorship.(4) The plaintiff shall not be entitled to costs in the interdiction proceeding. If the action is dismissed, the plaintiff shall owe the respondent the costs incurred thereby in connection with the case.Judgment on Action for InterdictionArticle 339. A judgment by default and a judgment upon acknowledgment of the demand shall not be rendered on any action for interdiction.Vacation of InterdictionArticle 340. (1) The provisions of this Chapter shall furthermore apply to a vacation of interdiction.(2) A vacation of interdiction may be requested, inter alia, by the authority on tutorship and on curatorship or by the tutor.Chapter Twenty-NineJUDICIAL PARTITIONCommencement of ProceedingArticle 341. (1) Any co-heir who wishes a partition shall submit a written petition to the regional court, attaching thereto:1. a certificate of death of the decedent and a certificate of heir ship of the said decedent;2. a certificate or other written evidence of the succession immovables;3. transcripts of the petition and the attachments for the other co-heirs.(2) During the first hearing of the case, each of the remaining co-heirs may move, by a written petition, for incorporation of other immovables into the decedent's estate.First HearingArticle 342. During the first hearing, each of the co-heirs may oppose the right of any of the said co-heirs to participate in the partition, to the amount of the share of each of the said co-heirs, as well as to the incorporation of certain immovables into the decedent's estate.Pre-conditioning QuestionsArticle 343. Disavowals of filiations, contestations of adoptions, of testaments and of the authenticity of written evidence, as well as motions for reduction of testamentary dispositions and of donations, shall be examined in the partition proceeding.Judgment Granting PartitionArticle 344. (1) In the judgment whereby partition is granted, the court shall pronounce on the questions as to between which persons and in respect of which immovables the said partition is to be made, as well as what share appertains to each co-heir. Where partition of movable things is granted, the court shall furthermore pronounce on the question as to which of the co-partitioners holds the said things.(2) In the judgment referred to in Paragraph (1) or later, if all heirs do not use the succession immovables in conformity with the rights thereof, the court, acting on a motion by some of the said heirs, shall decree which of the heirs are to avail themselves of which immovables until the partition is finally made or what amounts the former must pay the latter in consideration of the use.(3) The ruling under Paragraph (2) may be modified by the same court. Any such ruling shall furthermore be appealable by an interlocutory appeal.Exclusion of Immovables from PartitionArticle 345. Where the succession includes any immovables which the decedent owned in co-ownership with third parties, the said immovables shall be excluded from the divisible estate, if a partition is not made between the heirs, of the one part, and the third parties, of the other hand, prior to the drawing up of the memorandum of division.Demands for AccountsArticle 346. During the first hearing after the granting of the petition, the co-heirs may raise demands for accounts there between, citing the evidence in their possession.Memorandum of DivisionArticle 347. The court shall draft the memorandum of division on the basis of the conclusion of an expert witness in compliance with the rules of the Succession Act.Offering for Public SaleArticle 348. Where any immovable is indivisible and cannot be allocated to any of the shares, the court shall decree that the said immovable be offered for public sale. The parties to the partition may bid in the public sale.Award of Indivisible Dwelling UnitArticle 349. (1) If the indivisible immovable is a dwelling unit which constituted matrimonial community property terminated by the death of one spouse or by divorce, and the surviving or former spouse, who has been awarded the exercise of parental rights in respect of the children from the marriage, does not have a dwelling unit of his or her own, the court, acting on a motion by the said spouse, may allocate any such dwelling unit to a share, the shares of the rest of the co-partitioners being balanced by other immovables or by money.(2) If the indivisible immovable is a dwelling unit, each of the co-partitioners who, upon the opening of the succession resided therein and does not own another dwelling unit, may move that the said dwelling unit be allocated to the share thereof, with the shares of the rest of the co-partitioners being balanced by another immovable or by money. Where several co-partitioners satisfying the conditions of sentence one lay claims to allocation of the immovable to the share thereof, preference shall be given to the co-partitioner who offers a higher price.(3) The interested parties may record a legal mortgage for the claims for balancing of the shares.(4) A motion for award may be made at the latest during the first hearing after the entry into effect of the judgment granting the partition under Article 344 (1) herein. The immovable shall be appraised at the actual value thereof.(5) Where the balancing is by money, the said balancing must be paid together with the statutory interest within six months after the entry into effect of the judgment of award.(6) The co-partitioner, to whose share the immovable is allocated according to the procedure established by Paragraphs (1) and (2), shall become owner of the said immovable after paying the money balancing as set together with the statutory interest within the time limit referred to in Paragraph (5). If the balancing is not paid within the said time limit, the judgment of award shall be invalidated ex lege and the property shall be offered for public sale. The immovable may not be offered for public sale and may be awarded to another co-partitioner who satisfies the conditions under Paragraph (2) and has moved for an award within the time limit referred to in Paragraph (4) if the said partitioner forthwith pays the price whereat the immovable was appraised upon the partition, debited with the value of the share of the said partitioner in the said immovable. The resulting amount shall be apportioned among the rest of the co-partitioners according to the quotas thereof.Final Memorandum of DivisionArticle 350. After drawing up the draft of the memorandum of division, the court shall summon the parties in order to present the said draft thereto and to hear the oppositions thereof to the said draft. Thereafter, the court shall draw up and publish the final memorandum of division.Appellate Review of JudgmentsArticle 351. The judgments under Articles 346, 348, 349 and 350 herein shall be appealable by a general appeal within the time limit for appellate review of the latest judgment.Drawing of LotsArticle 352. After the judgment on the memorandum of division enters into effect, the court shall summon the parties for a drawing of lots.Apportionment of ImmovablesArticle 353. The court may make the partition by apportioning the succession immovables among the co-partitioners without drawing of lots, where the formation of shares and the drawing of lots proves impossible or very inconvenient.Buy-out by Co-partitionerArticle 354. (1) Where the immovable is offered for public sale as indivisible, each of the co-partitioners in the partition may buy out the said immovable under the terms established by Article 505 (2) herein.(2) If several co-partitioners wish to buy out the immovable under the terms established by Paragraph (1), a new sale shall be conducted solely between the said co-partitioners, with the highest price offered in the first sale as the starting bid. The said new sale shall continue for one week and shall follow the general rules.(3) If none of the co-partitioners buys out the immovable in the sale referred to in Paragraph (2), the said immovable shall be awarded to the third-party bidder in respect of the partition who offered the highest price in the first sale.Costs of ProceedingArticle 355. The parties shall pay the costs in proportion to the shares thereof. The costs under the joined actions in the partition proceeding shall be determined under Article 78 herein.Chapter ThirtyREMEDY AGAINST AND RECOVERY OF DISTURBED POSSESSIONGeneric CognizanceArticle 356. Any actions for remedy against disturbed possession and holding and for recovery of disturbed possession and holding (Articles 75 and 76 of the Ownership Act) shall be cognizable in the regional court acting as a court of first instance.Establishment of Fact of PossessionArticle 357. (1) Under these cases, the court shall verify solely the fact of possession or of the disturbance thereof.(2) The documents attesting the right of ownership shall be taken into account solely insofar as the said documents establish the fact of possession.Verification as to Legal ConformityArticle 358. Where possession has been forfeited at a command or with the cooperation of an enforcement agent or another state body, the court shall verify the legal conformity of the command or, respectively, of the acts performed, regardless of whether they are appealable or have been appealed.Inadmissibility where Action for Ownership BroughtArticle 359. The person, who has brought an action for ownership of a corporeal immovable, may not bring an action for possession against the same respondent in respect of the same immovable while the suit for the ownership is pending, unless dispossession has been effected through violent means or through concealment after the said action has been brought.Fine for DisturberArticle 360. Where the possession or holding has been forfeited through violent means or through concealment (Article 76 of the Ownership Act), the court may, inter alia, impose on the disturber a fine not exceeding BGN 1,000.Anticipatory EnforcementArticle 361. The judgment regarding the delivery of the immovable shall be subject to anticipatory enforcement and may not be stayed.Chapter Thirty-OnePROCEEDING FOR CONCLUSION OF FINAL CONTRACTDeclaring Finality of Contract in Case of Cross-ObligationArticle 362. (1) In an action under Article 19 (3) of the Obligations and Contracts Act, if, according to the preliminary contract, the plaintiff must perform a cross-obligation thereof upon conclusion of the final contract, the court shall render judgment in lieu of the final contract, subject to the condition that the plaintiff is to perform the obligation thereof. In such case, the plaintiff must perform the obligation thereof within two weeks after the entry into effect of the judgment, inter alia through setting off the obligations to the State paid thereby for the account of the respondent.(2) If the plaintiff fails to perform the obligation thereof within the time limit referred to in Paragraph (1), the first-instance court, acting on a motion by the respondent, shall invalidate the judgment.Verification of OwnershipArticle 363. Where the obligation is for transfer of a right of ownership to an immovable, the court shall verify whether the prerequisites for transfer of the ownership according to a notarial procedure apply, including whether the transferor is owner of the said immovable.Fees and CostsArticle 364. (1) By the judgment thereof, the court shall order the plaintiff to pay the State the costs due for the transfer of the immovable and shall command the recording of a preventive attachment of the said immovable until payment of the said costs.(2) The court shall not issue a transcript of the judgment until the plaintiff proves that the costs of the transfer have been paid.Chapter Thirty-TwoPROCEEDINGS ON COMMERCIAL DISPUTESGoverning ProvisionsArticle 365. According to the procedure established by this Chapter, the district court, acting as a court of first instance, shall examine actions for a right or a legal relation arising from or appertaining to:1. a commercial transaction, including the conclusion, interpretation, validity, performance, non-performance or termination of any such transaction, the consequences of the termination thereof, as well as for filling gaps in a commercial transaction or adjustment of any such transaction to intervening circumstances;2. a privatization contract, a public procurement contract, or a concession agreement;3. participation in a commercial corporation or in another legal person which is a merchant, as well as for establishment of admissibility or nullity of a recording and for non-existence of a circumstance recorded in the commercial register;4. replenishment of the bankruptcy estate, including the actions of creditors for a declaratory judgment;5. cartel agreements, decisions and concerted practices, concentration of economic activities, unfair competition, and abuse of a monopoly position or of a dominant position.Attachments to Statement of ActionArticle 366. As an attachment to a statement of action for a pecuniary receivable, the party shall be obligated to present a statement containing the calculations required for determination of the amount of the said claim.Answer to Statement of ActionArticle 367. (1) After accepting the statement of action, the court shall transmit a transcript of the said statement together with the attachments to the respondent, instructing the said respondent to submit a written answer within two weeks, specifying the mandatory content of the answer and the consequences of the non-submission of an answer or of the non-exercise of rights.(2) The written answer of the respondent must contain:1. a reference to the court and to the case number;2. the name and address of the respondent, as well as of the legal representative or attorney-in-fact thereof, if any;3. a stand on the admissibility of the action and on whether the action is well-founded;4. a stand on the circumstances upon which the action is founded;5. the oppositions to the action and the circumstances upon which the said oppositions are founded;6. signature of the person who submits the answer.(3) In the answer to the statement of action, the respondent shall be obligated to cite exactly the evidence and the specific circumstances which the said respondent is to prove thereby, as well as to present all written evidence in the possession thereof.(4) Within the time limit for answer, the respondent may bring a counter action, may implead third parties and may bring actions there against.Attachments to Answer to Statement of ActionArticle 368. Transcripts of the answer and of the attachments thereto according to the number of plaintiffs shall be presented attached to the answer to the statement of action.Opposition to Examination According to Standard ProcedureArticle 369. (1) An opposition alleging that the dispute is not subject to examination according to the standard procedure may be lodged solely by the respondent at the latest by the answer to the statement of action, or may be raised ex officio by the court within the same time limit.(2) A ruling that the dispute is subject to examination according to the standard procedure shall be appealable by an interlocutory appeal.Consequences of Non-submission of AnswerArticle 370. Where the respondent fails, within the established time limit, to submit a written answer, to take a stand, to lodge oppositions, to cite evidence or to present written evidence, the said respondent shall forfeit the possibility to do so later, unless the omission is due to special unforeseen circumstances.Opposition to Set-Off after Time Limit for AnswerArticle 371. An opposition to set-off may be raised prior to the conclusion of the trial in the court of first instance, where taking of new evidence is not required to prove the said set-off, or prior to the conclusion of the trial in the court of intermediate appellate review instance, where the existence or non-contestation of the said set-off are established by an effective judgment of court or an enforcement order.Additional Statement of ActionArticle 372. (1) After accepting the answer, the court shall transmit a duplicate copy of the said answer together with the attachments to the plaintiff, who may submit an additional statement of action within two weeks.(2) In the additional statement of action, the plaintiff may explain and amplify the initial statement of action. Within the time limit for submission of an additional statement of action, the plaintiff may modify the demand raised, may implead third parties and bring actions there against, may approach the court with a motion to pronounce by the judgment itself inter alia regarding the existence or non-existence of a legal relation disputed in the answer to the statement of action upon which the outcome of the case depends in whole or in part, as well as cite and present new evidence which the plaintiff was unable to cite and present by the statement of action.Additional AnswerArticle 373. (1) After accepting the additional statement of action, the court shall transmit a transcript of the said statement together with the attachments to the respondent who may submit an answer within two weeks.(2) In the additional answer, the respondent shall be obligated to respond to the additional statement of action. Within the time limit for submission of an additional statement of action, the respondent may approach the court with a motion to pronounce by the judgment itself inter alia regarding the existence or non-existence of a legal relation disputed in the additional statement of action upon which the outcome of the case depends in whole or in part, as well as cite and present new evidence which the respondent was unable to cite and present by the answer to the statement of action.Preparation of Case in CameraArticle 374. (1) After verifying the conformity of the papers exchanged and the admissibility of the actions brought, including the cost of the said actions, as well as the other motions and oppositions by the parties, the court shall render a ruling on all preliminary issues and on admission of the evidence. Alternatively, the court may pronounce on the admission of certain evidence in public session solely if the court determines that the oral explanations of the parties must be heard as well.(2) The court shall schedule a hearing of the case in public session, transmitting the additional answer to the plaintiff. The court shall communicate the ruling thereof referred to in Paragraph (1) to the parties. The court may furthermore communicate to the parties the court's draft of a report on the case, as well as direct the parties to mediation or another procedure for voluntary resolution of the dispute.Examination of Case in Public SessionArticle 375. (1) The court, sitting in public session, shall deliver an oral report, shall give instructions to the parties, and shall afford the parties an opportunity to set forth the stand thereof in connection with the report on the case and the instructions given, as well as to undertake the procedural steps they wish, where after the court shall take the evidence admitted and shall hear the oral arguments.(2) If the case is of factual and legal complexity, the court may allow each of the parties' time to present a written defence and a reply.Examination of Case in CameraArticle 376. (1) Where all evidence has been presented by the exchange of papers and if the court holds that hearing of the parties is not necessary, the court may examine the case in camera, affording the parties an opportunity to present written defences and replies.(2) The court shall examine and adjudicate in the case in camera where the parties move for this.(3) The court shall assign a day whereon the said court is to publish the judgment thereof and which shall be the day as from which the time limit for appellate review shall begin to run.Applicability of General RulesArticle 377. Save insofar as there are any special rules for the proceeding on commercial cases, the general rules applicable to the proceeding before the court of first instance shall apply.Applicability of Rules before Intermediate Appellate Review CourtArticle 378. The rules of this Chapter shall apply, mutatis mutandis, to the proceeding before the intermediate appellate review court.Chapter Thirty-ThreePROCEEDINGS ON CLASS ACTIONSClass ActionsArticle 379. (1) A class action may be brought on behalf of persons who are harmed by the same infringement where, according to the nature of the infringement, the circle of the said persons cannot be defined precisely but is identifiable.(2) Any persons who claim that they are harmed by an infringement under Paragraph (1), or any organizations responsible for the protection of injured persons or for protection against such infringements, may bring, on behalf of all injured persons, an action against the infringer for a declaratory judgment on the harmful act or omission, an action for the wrongfulness of the said act or omission, and an act for the blame.(3) Any persons who claim that the collective interest thereof has been harmed or is likely to be harmed by an infringement referred to in Paragraph (1), or any organization responsible for the protection of injured persons, of the harmed collective interest or for protection against such infringements, may bring, on behalf of all injured persons, an action against the infringer for cessation of the infringement, for rectification of the consequences of the infringement of the harmed collective interest, or for compensation for the damages inflicted on the said interest.Bringing Class ActionArticle 380. (1) Class actions shall be examined by the district court acting as a court of first instance according to the procedure established by this Chapter.(2) The statement of action, apart from the circumstances upon which the action is founded, shall specify the circumstances which identify the circle of injured persons and the form in which publication of the bringing of the action is proposed.(3) Evidence of the capacity of the resident to protect the harmed interest seriously and in good faith, as well as to incur the charges related to the conduct of the case, including the costs, shall be presented attached to the statement of action.Verification of Conditions for Bringing Class ActionArticle 381. (1) After verification of the admissibility of the action brought and the conformity of the statement of action, the court shall verify ex officio the capacity of the person or persons who have brought the action to protect the harmed interest seriously and in good faith and to incur the charges related to the conduct of the case, including the costs.(2) The court may hear the person or persons who have brought the action in public session.(3) The court shall not admit the case to examination if none of the persons who have brought the action satisfies the conditions referred to in Paragraph (1) or if all such persons together do not satisfy the said conditions.(4) The ruling of the court whereby the case is not admitted to examination shall be appealable by an interlocutory appeal.Preparation of Case for ExaminationArticle 382. (1) The court, sitting in public session with the parties being summoned, shall hear the stands of the parties regarding the circumstances which identify the circle of injured persons and the form of publication of the bringing of the action.(2) The court shall rule on:1. an adequate form of publication of the bringing of the action: number of announcements, through which media and for what length of time the said announcements must be made;2. an adequate time limit after the publication within which the injured persons may declare that they will participate in the procedure or will pursue a remedy independently.(3) The ruling shall be appealable by an interlocutory appeal.Acceptance of New Participants and Exclusion from ParticipationArticle 383. (1) The court, sitting in camera, shall:1. accept for participation in the procedure other injured persons, organizations responsible for the protection of the injured persons, of the harmed collective interest or for protection against such infringements, who or which have declared, within the time limit set, a motion for participation in the procedure;2. exclude the injured persons who have declared, within the time limit set, that they will pursue a remedy independently in a separate procedure.(2) The ruling whereby inclusion of new participants or exclusion from participation is refused shall be appealable by an interlocutory appeal.(3) The court shall issue a transcript of the ruling on exclusion to the persons who have declared, within the time limit set, that they will pursue a remedy independently in a separate procedure.Accommodation on Voluntary Resolution of DisputeArticle 384. (1) The court shall direct the parties to a settlement and shall explain thereto the advantages of the various procedures for voluntary resolution of the dispute.(2) The court shall approve the settlement, agreement, conciliation or another accommodation reached on a partial or comprehensive resolution of the dispute if the said accommodation does not conflict with the law and good morals and if the harmed interest can be protected in a sufficient degree through the measures included in the said accommodation.(3) The accommodation on resolution of the dispute shall take effect after being approved by the court.Measures for Protection of Harmed InterestArticle 385. (1) The court may order the respondent to perform a specific act, to refrain from performing a specific act, or to pay a specific amount.(2) Acting on a petition by the plaintiff, the court where before the action has been brought may rule on adequate interim measures for protection of the harmed interest. The ruling may be modified or vacated by the same court consequent to a change of circumstances, an error or an omission.(3) The ruling shall be subject to intermediate appellate review and cassation appellate review regardless of the prerequisites for cassation appealability covered under Article 280 (1) herein. An appellate review of the ruling shall not stay the enforcement thereof, unless the court competent to examine the appeal decrees otherwise.(4) Upon rendition of the judgment, the court shall not be bound by the measures for protection cited by the plaintiff. Considering the specifics of the case and after taking into account the stand of the respondent, the court may decree other measures which ensure adequate protection of the harmed interest.Judgment on Class ActionArticle 386. (1) The judgment of the court shall have effect in respect of the infringer, the person or persons who have brought the action, as well as in respect of those persons who claim that they are harmed by the established infringement and who have not declared that they wish to pursue a remedy independently in a separate procedure. The excluded persons may avail themselves of the judgment whereby the class action has been granted.(2) A list of the excluded persons shall be attached to the judgment of the court.(3) The judgment shall be subject to intermediate appellate review and cassation appellate review regardless of the prerequisites for cassation appealability covered under Article 280 (1) herein.(4) A judgment on a class action may not be reversed under Article 304 herein.Disposition of CompensationArticle 387. (1) The court may decree that the compensation be credited to an account of one of the persons who have brought the action, to a special account jointly disposable by the persons who have brought the action, or to a special account jointly disposable by the injured persons.(2) After rendition of the judgment, the court may obligate the persons who have brought the action to transfer the compensation to a special account jointly disposable by the injured persons, taking adequate measures to secure the execution of this obligation.Injured Persons' General Meeting and CommitteeArticle 388. (1) The first-instance court may convene a general meeting of the injured persons by publishing the notice in the form in which the bringing of the action has been published. The general meeting of the injured persons shall be presided over by the judge and may act if at least six injured persons present themselves.(2) The general meeting of the injured persons shall elect a committee to dispose of the assets on the special account and may resolve on the acts which the said general meeting assigns the said committee to perform.PART FOURPRECAUTIONARY PROCEEDINGSChapter Thirty-FourGRANTING INJUNCTIONInjunction Securing Action BroughtArticle 389. (1) During any stage of the proceeding prior to the conclusion of the trial in the intermediate appellate review proceeding, the plaintiff may approach the court where before the case is pending with a motion to grant an injunction securing the action brought.(2) An injunction may be granted to secure all types of action.Injunction Securing Future ActionArticle 390. (1) Even before the action is brought, an injunction may be sought from the generically competent court exercising jurisdiction over the permanent address of the plaintiff or over the location of the immovable which is to serve as security.(2) In the case referred to in Paragraph (1), the court shall set a time limit for bringing of the action which may not be longer than one month. Unless proof of bringing an action within the time limit set is presented, the court shall dissolve the injunction ex officio.(3) The petition to grant an injunction securing a future action by means of a stay of enforcement shall be submitted to the generically competent court exercising jurisdiction over the place of the enforcement. A stay of enforcement shall be granted solely upon furnishing of security.Prerequisites for Granting InjunctionArticle 391. (1) An injunction securing the action shall be granted where, without such an injunction, it will be impossible or difficult for the plaintiff to realize the rights under the judgment and if:1. the action is supported by convincing written evidence, or2. a bond is furnished in an amount determined by the court according to Articles 180 and 181 of the Obligations and Contracts Act. (2) The court may obligate the plaintiff the furnish a bond of money or property in an amount determined by the court even in the case referred to in Item 1 of Paragraph (1).(3) The amount of the bond shall be determined on the basis of the amount of the direct and immediate damages which the respondent will incur if the injunction is unfounded.(4) The State, the government institutions and the medical-treatment facilities covered under Article 5 (1) of the Medical-Treatment Facilities Act shall be exempted from furnishing a bond.(5) An injunction securing the action shall be granted even when the case is stayed.Injunction Securing Action for Maintenance ObligationsArticle 392. An injunction securing actions for maintenance obligations shall be granted even without compliance with the requirements of Article 391 herein. In such case, the court may alternatively take measures to secure the action ex officio.Inadmissibility of InjunctionArticle 393. (1) An injunction securing an action for a pecuniary receivable against the State, the government institutions and the medical-treatment facilities covered under Article 5 (1) of the Medical-Treatment Facilities Act shall not be granted.(2) An injunction securing an action for a pecuniary receivable by means of garnishment of receivables where against coercive enforcement is inadmissible shall not be granted.Partial InjunctionArticle 394. The court may grant an injunction securing the full amount of the action or only such portions of the action as are supported by sufficient evidence.Petition to Grant InjunctionArticle 395. (1) The petition for an injunction shall specify the precautionary measure and the cost of the action. A transcript of the said petition shall not be served upon the opposing party.(2) The petition shall be adjudicated in camera on the day on which the said petition is submitted.(3) On the basis of the ruling whereby the petition is granted, the court shall issue an injunctive order. Where a bond has been set, the court shall issue an injunctive order after the said bond has been deposited.Appellate ReviewArticle 396. (1) The ruling of the court on an injunction securing the action shall be appealable by an interlocutory appeal within one week which shall begin to run, in respect of the petitioner, as from the service of the said ruling and, in respect of the respondent, as from the day of service thereupon of a communication of the precautionary measure imposed by the enforcement agent, by the Recording Office or by the court in the cases referred to in Item 3 of Article 397 (1) herein.(2) A transcript of the interlocutory appeal shall be served upon the opposing party for an answer within one week.(3) The ruling whereby an injunction securing the action is granted may not be stayed by reason of being appealed by an interlocutory appeal.Chapter Thirty-FivePRECAUTIONARY MEASURESTypes of MeasuresArticle 397. (1) An injunction shall be effected:1. by means of imposition of a preventive attachment of a corporeal immovable;2. by means of garnishment of movable things and receivables of the debtor;3. through other appropriate measures determined by the court, including through a suspension from operation of a motor vehicle and through a stay of enforcement.(2) The court may grant several types of injunction up to the amount of the cost of action as defined in Article 69 (1) herein.Replacement of InjunctionArticle 398. (1) The court, acting on a motion by one of the parties, may, after notifying the other party and taking into account the oppositions thereof lodged within three days after the communication, grant the replacement of one type of injunction by another type.(2) Where the injunction secures an action appraisable in money, the respondent may always replace the injunction as granted by the court by a pledge of money or of securities according to Articles 180 and 181 of the Obligations and Contracts Act without the consent of the other party. This shall not apply to any injunction securing actions for ownership.(3) In the cases referred to in Paragraphs (1) and (2), the garnishment and preventive attachment shall be dissolved.Consent Regarding Object of InjunctionArticle 399. If the action is based on a contract which specifies the immovable which is to serve as security, the injunction shall be granted solely in respect of the said immovable, unless the said immovable is not available or has been encumbered, in the intervening time, by other charges which render the security insufficient.Imposition of Precautionary MeasureArticle 400. (1) Garnishment shall be imposed immediately by the enforcement agent on a motion by the petitioner on the basis of the injunctive order of the court according to Article 449 (1), Article 450 (1) and (2), Articles 507, 515, 516 and 517 herein, and a communication instead of a summons to voluntary compliance shall be served upon the respondent. In case of garnishment of a movable thing, the enforcement agent shall take an inventory, conduct an appraisal and deliver the thing for safekeeping according to Articles 465 to 472 herein.(2) Preventive attachment shall be imposed by recording of the injunctive order of the court in the notarial books. The Recording Office shall notify the respondent of the recording effected.Effect of Precautionary MeasureArticle 401. A garnishment and a preventive attachment, imposed to secure an action, shall take the effect provided for in Articles 451 to 453, Article 456 (1), Articles 508, 509 and Articles 512 to 514 herein. The secured creditor may bring an action against the garnishee for the amounts or the corporeal things which the said garnishee refuses to surrender voluntarily. Articles 435 (4) and Article 440 herein shall apply to this case.Dissolution of InjunctionArticle 402. (1) Dissolution of the injunction shall be decreed on a petition by the interested party. A transcript of the petition shall be served upon the person on whose motion the injunction has been imposed. The said person may lodge oppositions within three days after receipt of the transcript.(2) The court, sitting in camera, shall dissolve the injunction after satisfying itself that the reason for which the said injunction was granted no longer exists, or that the conditions referred to in Article 398 (2) herein apply. The ruling of the court shall be appealable by an interlocutory appeal.(3) The lifting of the garnishment, the striking of the preventive attachment, as well as the dissolution of the other precautionary measures shall be effected on the basis of the effective ruling of the court.Compensation for DamagesArticle 403. (1) If the action for the securing of which the injunction has been granted is dismissed or if the said action is not brought within the time limit set to the plaintiff, or if the case is dismissed, the respondent may seek from the plaintiff recovery of the damages inflicted as a result of the injunction.(2) In the cases referred to in Paragraph (1), for the release of the bond furnished, the interested party shall submit a petition with a transcript for the opposing party. Within one week after service of the petition, the respondent may lodge an opposition to the release of the bond and, within one month, to bring an action for the damages inflicted thereon. If the respondent fails to lodge an opposition and to bring such an action within the said time limits, the bond shall be released.PART FIVEENFORCEMENT PROCEEDINGSTITLE ONEGENERAL DISPOSITIONSChapter Thirty-SixISSUING OF WRIT OF EXECUTIONEnforcement TitleArticle 404. The following shall be subject to coercive enforcement:1. the effective judgments and rulings of the court, the adverse judgments of the intermediate appellate review courts, the enforcement orders, the memoranda on court settlement, the judgments of enforcement and enforcement orders which are subject to or are admitted to anticipatory or immediate enforcement, as well as the awards of the arbitration courts and the settlements reached before such courts in the matter of arbitration cases;2. the judgments, acts and memoranda on court settlement of the foreign courts which are enforceable within the territory of the Republic of Bulgaria without an express proceeding;3. the judgments, acts and memoranda on court settlement of the foreign courts, as well as the awards of the foreign arbitration courts and the settlement reached before such courts in the matter of arbitration cases, which have been admitted to enforcement within the territory of the Republic of Bulgaria.Proceeding for Issuing of Writ of ExecutionArticle 405. (1) A writ of execution shall be issued on a written petition on the basis of any of the acts specified in Article 404 herein. A transcript of the said petition shall not be served upon the debtor.(2) A petition based on the acts covered under Item 1 of Article 404 herein shall be submitted to the first-instance court which has examined the case or to the court which has issued the enforcement order, and where the act is subject to immediate enforcement, any such petition shall be submitted to the court which has rendered the judgment of enforcement or has decreed the enforcement order.(3) A petition based on the awards of the domestic arbitration courts and the settlements reached before such courts in the matter of arbitration cases shall be submitted to the Sofia City Court.(4) The court competent to admit the enforcement shall issue a writ of execution on the basis of the acts covered under Items 2 and 3 of Article 404 herein. A writ of execution issued on the basis of the acts covered under Item 3 of Article 404 herein shall not be delivered to the creditor until the judgment admitting the enforcement enters into effect.(5) In respect of any amounts awarded in favour of the State, the court shall issue a writ of execution ex officio.(6) A petition based on the acts covered under Item 1 of Article 404 herein shall be examined in camera within seven days by a judge of the competent court.Order to Issue Writ of ExecutionArticle 406. (1) A writ of execution shall be issued after the court verifies whether the act is prima facie conforming and whether the said act attests the receivable enforceable against the debtor.(2) In the cases covered under Items 2 and 3 of Article 404 herein, the court shall furthermore verify whether the receivable is enforceable by the methods of the Bulgarian law. Where this is impossible, the court shall decree a substitute enforcement which can satisfy the creditor.(3) The judge shall make a due note on the act regarding the issuing of the writ of execution.(4) Articles 247, 250 and 251 herein shall apply, mutatis mutandis, in the proceeding for the issuing of a writ of execution.Appellate Review of Order to Issue Writ of ExecutionArticle 407. (1) An order whereby a petition to issue a writ of execution is granted or refused in whole or in part shall be appealable by an interlocutory appeal within two weeks which shall begin to run, in respect of the petitioner, as from the service of the order and, in respect of the respondent, as from the service of the notice of voluntary compliance.(2) The appellate review of the order whereby the petition is granted shall not stay the enforcement.(3) Where the writ of execution has been issued under the terms established by Article 406 (2) herein, the order shall be appealable according to the standard procedure.Original Writ of ExecutionArticle 408. (1) A writ of execution shall be issued in a single copy, signed by a judge of the competent court.(2) Where several separate immovables have to be delivered or where the judgment has been rendered in favour of or adverse to several persons, separate writs of execution may be issued, specifying the part of the judgment which is enforceable under each writ.Replacement Writ of ExecutionArticle 409. (1) If the original writ of execution is lost or destroyed, the court which has issued the said writ, acting on a written petition by the petitioner, shall issue a replacement of the said writ on the basis of the act under which the original was issued.(2) The petition shall be examined in public session after a transcript of the said petition is served upon the execution debtor.(3) Apart from the lack of conditions under Paragraph (1), the execution debtor may furthermore raise an opposition of redemption of the debt on the basis of circumstances which have intervened after the establishment of the existence of the said debt.(4) The judgment rendered shall be appealable according to the standard procedure. After the judgment enters into effect, the execution debtor may not contest the existence of the debt on grounds which the said debtor could have raised in the proceeding for the issuing of the replacement.(5) If the act itself has been lost or destroyed and the content thereof cannot be restored by means of official documents, the petitioner may bring an action for performance against the execution debtor. For more information visit www.solicitorbulgaria.com id: 321 Fri, 01 Aug 2008 07:09:06 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-code-of-civil-procedure-part-2 http://web.solicitorbulgaria.com/index.php/bulgarian-code-of-civil-procedure-part-2 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/CODE_OF_CIVIL_PROCEDURE3.JPG EUR http://web.solicitorbulgaria.com/index.php/bulgarian-code-of-civil-procedure-part-2 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Chapter Thirty-SevenORDER FOR PAYMENT PROCEEDINGEnforcement Order: Application for IssuingArticle 410. (1) The applicant may request the issuing of an enforcement order:1. for pecuniary receivables or for fungible things, where the action is cognizable in the regional court;2. for the delivery of a movable thing which the execution debtor has received with an obligation to return the said thing or which is encumbered by a pledge or has been transferred to the debtor with an obligation to surrender possession, where the action is cognizable in the regional court.(2) The application shall contain a prayer to issue a writ of execution and must comply with the requirements covered under Article 127 (1) and (3) and Items 1 and 2 of Article 128 herein.Enforcement Order: IssuingArticle 411. (1) The application shall be submitted to the regional court exercising jurisdiction over the permanent address or over the registered office of the execution debtor, or over the place of enforcement.(2) The… For more information visit http://www.solicitorbulgaria.com id: 320 Chapter Thirty-SevenORDER FOR PAYMENT PROCEEDINGEnforcement Order: Application for IssuingArticle 410. (1) The applicant may request the issuing of an enforcement order:1. for pecuniary receivables or for fungible things, where the action is cognizable in the regional court;2. for the delivery of a movable thing which the execution debtor has received with an obligation to return the said thing or which is encumbered by a pledge or has been transferred to the debtor with an obligation to surrender possession, where the action is cognizable in the regional court.(2) The application shall contain a prayer to issue a writ of execution and must comply with the requirements covered under Article 127 (1) and (3) and Items 1 and 2 of Article 128 herein.Enforcement Order: IssuingArticle 411. (1) The application shall be submitted to the regional court exercising jurisdiction over the permanent address or over the registered office of the execution debtor, or over the place of enforcement.(2) The court shall examine the application in private deliberation and shall issue an enforcement order within three days, except where:1. the prayer does not comply with the requirements covered under Article 410 herein;2. the prayer conflicts with the law or with good morals;3. the execution debtor does not have a permanent address or a registered office within the territory of the Republic of Bulgaria;4. the execution debtor does not have a habitual residence or a place of business within the territory of the Republic of Bulgaria.(3) Where the application is granted, the court shall issue an enforcement order, a transcript of which shall be served upon the execution debtor.Enforcement Order: ContentArticle 412. The enforcement order shall contain:1. the indication "Enforcement Order";2. date and place of rendition;3. a reference to the court and the name of the judge who rendered the order;4. the forenames, patronymics and surnames and addresses of the parties;5. the case in the matter of which the order is issued;6. the obligation wherewith the execution debtor must comply, and the costs which the execution debtor must pay;7. an invitation to the execution debtor to comply within two weeks after service of the order;8. an instruction to the effect that the enforcement order will be invalidated if an opposition is lodged within the same time limit;9. an instruction to the effect that if the execution debtor fails to lodge oppositions to the issuer of the order or to comply, the enforcement order will enter into effect and coercive enforcement will be proceeded with;10. the extent of appealability, before which court and within what time limit;11. signature of the judge.Appellate ReviewArticle 413. (1) The enforcement order shall be unappealable by the parties, except in the part regarding the costs.(2) The order whereby the application is rejected in whole or in part shall be appealable by the applicant by an interlocutory appeal.OppositionArticle 414. (1) The execution debtor may oppose in writing the enforcement order or a part thereof. Justification of the opposition shall not be required.(2) An opposition shall be lodged within two weeks after service of the order, and the said time limit may not be extended.Effect of OppositionArticle 415. (1) Where the opposition has been lodged in due time, the court shall instruct the applicant that the said applicant may bring an action regarding the receivable thereof within one month, depositing the balance of the stamp duty due.(2) Where the applicant fails to present evidence that the said applicant has brought the action within the time limit set, the court shall invalidate the enforcement order in part or in whole, as well as the writ of execution issued under Article 418 herein.Entry into Effect of Enforcement OrderArticle 416. Where an opposition has not been lodged within due time or has been withdrawn, the enforcement order shall enter into effect. On the basis of the said order, the court shall issue a writ of execution and shall note this on the order.Enforcement Order Based on DocumentArticle 417. Alternatively, the applicant may request the issuing of an enforcement order where the receivable, regardless of the amount thereof, is based upon:1. an act of an administrative authority, where under the admission to enforcement is vested in the civil courts;2. a document or an abstract of the books of account, whereby receivables of the government institutions, the municipalities and the banks are established;3. a notarial act, a settlement or another contract bearing notarized signatures in respect of the obligations contained therein to pay sums of money or other fungible things, as well as obligations to deliver particular things;4. an abstract of the registered pledges registry on a recorded security interest and on commencement of foreclosure: in respect of the delivery of pledged things;5. an abstract of the registered pledges registry on a recording of a contract for sale with retention of title until payment of the purchase price or a lease contract: in respect of the return of corporeal things sold or leased;6. a contract of pledge or a mortgage deed under Article 160 and Article 173 (3) of the Obligations and Contracts Act; 7. an effective act establishing a State or municipal receivable, where the enforcement of this act is effected according to the procedure established by this Code;8. a deficit deed;9. a promissory note, a bill or exchange or another negotiable security payable to order which is Equivalent thereto, as well as a bond or coupons attached thereto.Immediate EnforcementArticle 418. (1) Where a document covered under Article 417 herein, whereupon the receivable is based, has been presented with the application, the creditor may approach the court with a motion to decree an immediate enforcement and to issue a writ of execution.(2) The writ of execution shall be issued after the court verifies whether the document is prima facie conforming and whether the said document attest an obligation enforceable against the execution debtor. The court shall make a due note on the document presented and on the enforcement order regarding the issuing of the writ of execution.(3) Where, according to the document presented, the exigibility of the receivable is contingent on the compliance with a cross-obligation or on the occurrence of another circumstance, the compliance with the said obligation or the occurrence of the said circumstance must be attested by an official document or by a document originating from the execution debtor.(4) The order whereby the petition for the issuing of a writ of execution is refused in whole or in part shall be appealable by an interlocutory appeal within one week after communication of the said order.(5) The enforcement order with the noting of the issuing of a writ of execution shall be served by the enforcement agent.Immediate Enforcement Order: Appellate ReviewArticle 419. (1) The order whereby the petition for immediate enforcement is granted shall be appealable by an interlocutory appeal within two weeks after service of the enforcement order.(2) The interlocutory appeal of the immediate enforcement order shall be submitted together with the opposition to the enforcement order as issued and may be founded only upon considerations derived from acts covered under Article 417 herein.(3) The appellate review of the immediate enforcement order shall not stay the enforcement.Stay of EnforcementArticle 420. (1) An opposition to the enforcement order shall not stay the coercive enforcement in the cases covered under Items 1 to 8 of Article 417 herein, except where the execution debtor furnishes due security to the creditor according to the procedure established by Articles 180 and 181 of the Obligations and Contracts Act. (2) Where a motion for stay, supported by convincing written evidence, has been made within the time limit for opposition, the court which has decreed immediate enforcement may stay the said enforcement.(3) The ruling on the motion for stay shall be appealable by an interlocutory appeal.Partial Stay of EnforcementArticle 421. (1) Where there are multiple obligated persons, the security referred to in Article 420 (1) herein shall serve solely in respect of the person or persons for whom the said security has been furnished.(2) Where the opposition refers only to part of the receivable, as well as where the security furnished is partial, the court shall stay the anticipatory enforcement solely for the relevant part of the receivable.Action for Existence of ReceivableArticle 422. (1) An action for the existence of a receivable shall be considered brought as from the time of submission of the application for issuing of an enforcement order, where the time limit referred to in Article 415 (1) herein has been complied with.(2) The bringing of an action under Paragraph (1) shall not stay the immediate enforcement as admitted, except in the cases referred to in Article 420 herein.(3) If the action is dismissed by an effective judgment, the enforcement shall terminate and sentence two of Article 245 (3) herein shall apply.Reversal by Reason of Lack of Opportunity to ContestArticle 423. (1) Within one month after learning of the enforcement order, the execution debtor, who has been deprived of an opportunity to contest the receivable, may approach the intermediate appellate review court with a motion for reversal of the said order, where:1. the enforcement order has not been duly served upon the said execution debtor;2. the enforcement order has not been served upon the said execution debtor in person and on the day of the service the said execution debtor did not have a habitual residence within the territory of the Republic of Bulgaria;3. the execution debtor was unable to learn of the service in due time owing to special unforeseen circumstances;4. the execution debtor was unable to lodge the opposition thereof owing to special unforeseen circumstances which the said execution debtor was unable to overcome.(2) The new examination of the case shall commence with an instruction under Article 415 (1) herein to the effect that the applicant may bring an action regarding the receivable thereof within one month, depositing the balance of stamp duty due.Action to Contest ReceivableArticle 424. (1) The execution debtor may contest the receivable according to an action procedure, where intervening, newly discovered circumstances or new written evidence of material relevance to the case are discovered, which could not have been known to the said execution debtor before expiry of the time limit for lodgment of the opposition or which the said execution debtor could not procure within the same time limit.(2) The action may be brought within three months after the day on which the new circumstance became known to the execution debtor or after the day on which the execution debtor could procure the new written evidence, but not later than within one year after extinguishment of the receivable.Standard FormsArticle 425. (1) The Minister of Justice shall issue an ordinance endorsing thereby standard forms of an enforcement order, an application for issuing of an enforcement order and the other papers in connection with the order for payment proceeding.(2) Where the applicant has not used a standard form or has used a wrong standard form, the court shall attach the relevant standard form to the written instruction thereof for curing of the non-conformity.Chapter Thirty-EightCOMMENCEMENT, STAY AND TERMINATION OF ENFORCEMENTCommencement of EnforcementArticle 426. (1) The enforcement agent shall proceed with enforcement on a petition by the interested party on the basis of a presented writ of execution or another enforceable act.(2) In the petition thereof, the execution creditor shall specify the method of enforcement. The said creditor may specify several methods simultaneously. In the course of the proceeding, the said creditor may specify other methods of enforcement as well.(3) The conformity of the petition referred to in Paragraph (1) shall be verified under Article 129 herein.(4) The execution creditor may request that the enforcement agent enquire into the property status of the execution debtor, search records, and require abstracts of documents.Territorial CompetenceArticle 427. (1) The petition for enforcement shall be submitted to the enforcement agent whose area of practice covers:1. the location of the movable or immovable things where against the enforcement is levied;2. the permanent address or the registered office of the garnishee, where the enforcement is levied against receivables of the execution debtor from the said garnishee;3. the place of compliance with the obligations to act or not to act, where compliance with such obligations is sought;4. the permanent or current address of the execution creditor or the execution debtor: at the choice of the execution creditor in respect of a receivable for maintenance.(2) The execution creditor may request from the enforcement agent exercising competence over the permanent address thereof to impose a garnishment or preventive attachment on corporeal things and receivables of the execution debtor, even though the enforcement steps are subject to performance by another enforcement agent according to the rules of Paragraph (1). After imposition of the garnishment or preventive attachment, the enforcement agent shall transmit the enforcement case to the competent enforcement agent, who is to take an inventory and conduct a sale of the corporeal things.(3) Where the enforcement is levied against pecuniary receivables of the execution debtor from a garnishee with a permanent address or registered office within another geographical jurisdiction, the enforcement case shall not be transmitted.Notice of Voluntary ComplianceArticle 428. (1) The enforcement agent shall be obligated to invite the execution debtor to comply voluntarily with the obligation thereof within two weeks. Where proceeding with enforcement on the basis of an enforcement order, the enforcement agent shall invite the execution debtor by the service of the said order, and where the order has been served upon the execution debtor, a new time limit for voluntary compliance therewith shall not be allowed.(2) The notice shall contain the name and address of the execution creditor and a warning to the execution debtor that unless the said execution debtor complies with the obligation thereof within the time limit allowed thereto, coercive enforcement will be proceeded with. The notice shall communicate the garnishments and preventive attachments imposed. A duplicate copy of the enforceable act shall be attached to the notice of voluntary compliance.(3) Should the execution debtor die after receiving a notice of voluntary compliance but before other enforcement steps have been performed, the enforcement agent, prior to proceeding with the steps thereof, shall transmit a new notice of voluntary compliance to the heirs.(4) Where the enforcement agent replaces one method of enforcement by another method, the said agent shall transmit to the execution debtor communications of the garnishment and preventive attachment imposed.Extent of Personal Applicability of Writ of ExecutionArticle 429. (1) The heirs of and singular successors to the execution creditor, as well as the surety and the solidary execution co-debtor who have paid the debt, may move for enforcement on the basis of the writ of execution issued in favour of the execution creditor. The succession or the payment by the surety or execution co-debtor, as the case may be, shall be established by written evidence.(2) The writ of execution issued against the decedent may be enforced even against the property of the heirs of the said decedent, unless the said heirs establish that they have renounced the succession or have accepted the succession under an inventory. Where the heir has not accepted the succession, the enforcement agent shall set the time limit under Article 51 of the Succession Act, communicating the declaration of will of the heir to the competent regional judge for due recording of the said declaration.(3) The writ of execution shall furthermore have effect against any third party who has pledged or mortgaged a corporeal thing of his or her own to secure the debt, where the execution creditor commences the enforcement against the said thing.Execution Debtor's Ad Hoc RepresentativeArticle 430. The regional court exercising jurisdiction over the place of enforcement, acting on a motion by the execution creditor, shall appoint an ad hoc representative of the execution debtor if, upon proceeding with enforcement, the execution debtor does not have a registered permanent or current address.Enforcement Agent's PowersArticle 431. (1) The enforcement agent, if so required for the enforcement, may order any buildings of the execution debtor to be opened and may search the personal effects, dwelling unit and other premises of the execution debtor.(2) The enforcement agent may request cooperation from the police authorities or from the mayor of the municipality, borough or mayoralty, who shall be obligated to cooperate therewith.(3) The enforcement agent shall have right of access to information in the court and administrative services, including the authorities of the National Revenue Agency and the State Receivables Collection Agency, the local divisions of the National Social Security Institute, of the Central Depository, of the persons keeping a register of government securities, of the control authorities under the Road Traffic Act and of other persons who keep registers of property or possess data of the property thereof. The said agent may search records and obtain information on the execution debtor, as well as request duplicate copies and abstracts of documents.(4) In the cases where the personal presence of the execution debtor is required and the execution debtor does not appear, even though the said execution debtor has received a summons to do so, the enforcement agent may order the police authorities to bring the execution debtor.(5) Where necessary, the enforcement agent may ask the authorities of the Ministry of Interior to suspend from operation a motor vehicle where against enforcement is levied for a period of up to three months.Stay of EnforcementArticle 432. The enforcement proceeding shall be stayed:1. by the court, in the cases referred to in Article 245 (1) and (2), Article 309 (1), Item 3 of Article 397 (1), Articles 438 and 524 herein;2. on a motion by the execution creditor;3. in the cases referred to in Items 2 and 3 of Article 229 (1) herein, with the exception of the sale of a corporeal immovable which has already been advertised;4. in the cases referred to in Article 282 (2) herein, as well as where the intermediate appellate review judgment appealed is reversed by the Supreme Court of Cassation;5. in other cases provided for in a law.Termination of EnforcementArticle 433. (1) The enforcement proceeding shall be terminated by decree where:1. the execution debtor presents a receipt from the execution creditor, duly authenticated, or a receipt from the post office, or a letter from a bank showing that the amount under the writ of execution has been paid to or deposited with the execution creditor prior to the institution of the enforcement proceeding; if the execution debtor presents a receipt bearing an unauthenticated signature of the execution creditor, the said creditor, if a dispute with the debtor arises, shall be obligated to declare in writing that the receipt has not been issued thereby, or otherwise the said receipt shall be presumed genuine;2. the execution creditor has moved for this in writing;3. the writ of execution has been invalidated;4. the act on the basis of which the writ of execution has been issued is vacated or the said act is pronounced forged by an effective judicial act;5. the property cited by the execution creditor cannot be sold and other seizable property cannot be discovered;6. the fees and costs related to the enforcement, due in advance have not been paid;7. an effective judgment, whereby the action under Article 439 or 440 herein is granted, is presented;8. the execution creditor fails to move for the performance of enforcement steps in the course of two years, with the exception of the suits for maintenance obligations.(2) In all cases covered under Paragraph (1), the enforcement agent shall lift ex officio the garnishments and preventive attachments imposed after the decree on termination enters into effect.(3) The termination of the proceeding shall not affect the rights which third parties have acquired before that on the basis of the enforcement steps, as well as the conformity of the payment effected by the garnishee to the enforcement agent.Attestation of Enforcement StepsArticle 434. The enforcement agent shall draw up a memorandum on each step undertaken and performed thereby, stating therein the day and place of performance of the said step, the demands and statements made by the parties, the amount collected, and the costs related to the enforcement as incurred.Chapter Thirty-NineREMEDIES AGAINST ENFORCEMENTSection IAppellate Review of Enforcement Agent's StepsAppealable StepsArticle 435. (1) The execution creditor may appeal against the refusal of the enforcement agent to perform an enforcement step sought, as well as the stay and termination of the coercive enforcement.(2) The execution debtor may appeal against the decree on a fine and the levy of the enforcement against any property which the execution debtor considers unseizable, the seizure of a movable thing or the eviction of the execution debtor from an immovable, by reason of not being duly notified of the enforcement.(3) The decree on award shall be appealable solely by a person who deposited earnest money before the last day of the sale, and by an execution creditor who entered the sale as a bidder, as well as by the execution debtor, by reason of a failure to conduct due bidding at the public sale or of the property not being awarded to the highest bidder.(4) A third party may appeal against the steps of the enforcement agent solely where the enforcement is levied against corporeal things which, on the day of the garnishment, preventive attachment or delivery, if a movable thing is concerned, were in the possession of the said person. Any such appeal shall not be granted if it is established that the corporeal thing was owned by the execution debtor upon imposition of the garnishment or preventive attachment.(5) A coercive seizure of possession of a corporeal immovable shall be appealable solely by a third party who was in possession of the said immovable prior to the bringing of the action where under the judgment is enforced. If the said third party fails to appeal within the time limit for appellate review, the said third party may bring a possessory action.Lodgment of AppealArticle 436. (1) The appeal shall be lodged care of the enforcement agent with the district court exercising jurisdiction over the place of the enforcement within one week after performance of the step, if the party was present at the performance of the said step or if the party was summoned, and in the rest of the cases, within one week after the day of the communication. In respect of the third parties, the time limit shall begin to run as from learning of the step.(2) A transcript of the appeal shall be served upon the other party, and where the appeal has been lodged by a third party, transcripts of the said appeal shall be served upon the execution debtor and upon the execution creditor on the petition whereof the enforcement case has been instituted.(3) The party which has received a transcript of the appeal may lodge written oppositions within three days. After expiry of the said time limit, the enforcement agent shall transmit the appeal together with the oppositions, if any, and a duplicate copy of the enforcement case to the district court, setting forth reasoning on the steps appealed.(4) The provisions of Articles 260, 261 and 262 herein shall apply, mutatis mutandis, in respect of the appeals.Examination of AppealsArticle 437. (1) The appeals lodged by the parties shall be examined in camera, except where witnesses or expert witnesses must be heard.(2) The appeals lodged by third parties shall be examined in public session, with the appellant, the execution debtor and the execution creditor on the petition whereof the enforcement case has been instituted being summoned.(3) The court shall examine the appeal on the basis of the data in the enforcement case and the evidence presented by the parties.(4) The court shall publish the judgment together with the reasoning thereof within one month after the receipt of the appeal in the court. The judgment shall be unappealable.Stay of Enforcement upon Appellate ReviewArticle 438. The lodgment of the appeal shall not stay the enforcement steps, but the court may decree a stay. In such case, the court shall immediately transmit a transcript of the ruling on stay to the enforcement agent.Section IIRemedy according to Action ProcedureContestation of ReceivableArticle 439. (1) The execution debtor may contest the enforcement through an action.(2) The action of the execution debtor may be founded solely on facts which have occurred after conclusion of the trial in the proceeding where under the enforcement title has been issued.Remedy of Third PartyArticle 440. (1) Any third party whereof a right has been affected by the enforcement may bring an action for declaration that the property where against the enforcement for a pecuniary receivable is levied does not appertain to the execution debtor.(2) Any such action shall be brought against the execution creditor and the execution debtor.(3) The execution creditor shall be liable, under the terms established by Article 45 of the Obligations and Contracts Act, for any damages inflicted on third parties through levy of the enforcement against the property which appertains thereto.Enforcement Agent's Liability for DamagesArticle 441. The private enforcement agent shall be liable, under the terms established by Article 45 of the Obligations and Contracts Act, for any damages inflicted on the execution debtor as a result of legally non-conforming coercive enforcement. The State shall be liable for any such damages inflicted by the public enforcement agent.TITLE TWOENFORCEMENT OF PECUNIARY RECEIVABLESChapter FortyGENERAL RULESSubject of EnforcementArticle 442. The execution creditor may levy the enforcement against any corporeal thing or receivable owned by the execution debtor.Replacement of Subject and Method of EnforcementArticle 443. The execution debtor may propose that the enforcement be levied against another corporeal thing or receivable or be performed solely by some of the methods of enforcement demanded by the execution creditor. If the enforcement agent determines that the method of enforcement proposed by the execution debtor is in a position to satisfy the execution creditor, the enforcement agent shall levy the enforcement against the corporeal thing or receivable named by the execution debtor.Unseizable Corporeal ThingsArticle 444. Enforcement may not be levied against the following corporeal things owned by any execution debtor who is a natural person:1. corporeal things for habitual use of the execution debtor and the family thereof, specified in a list adopted by the Council of Ministers;2. the food which the execution debtor and the family thereof need for one month and, applicable to farmers, until the next harvest, or the equivalent thereof in other agricultural produce if such food is not available;3. the heating, cooking and lighting fuel needed for three months;4. the machinery, tools, devices and books which the execution debtor needs in his or her personal capacity where the said debtor practises a liberal profession or which an artisan needs for the practice of the skilled craft thereof;5. the land tracts owned by the execution debtor where the said debtor is a farmer: orchards and vineyards of an aggregate surface area not exceeding 0.5 hectares, or cropland and meadows of a surface area not exceeding 3 hectares, and the machinery and implements needed for the farming, as well as the fertilizers, the plant protection products and sowing seed: for one year;6. the necessary two head of draught animals, one cow, five sheep or goats, ten beehives and the domestic fowl, as well as the feed needed for the sustenance thereof until the next harvest or until the animals are turned out to graze;7. the dwelling unit owned by the execution debtor, if the said debtor and any of the family members thereof wherewith the said debtor lives together have no other dwelling unit, regardless of whether the execution debtor resides therein; if the dwelling unit exceeds the housing needs of the execution debtor and the family members thereof specified by an ordinance of the Council of Ministers, the part of the said dwelling unit in excess of the said needs shall be sold if the conditions under Article 39 (2) of the Ownership Act apply;8. the corporeal things and receivables provided for in another law as not subject to coercive enforcement.Non-applicability of UnseizabilityArticle 445. (1) Execution debtors may not avail themselves of the prohibitions covered under Article 444 herein in respect of any corporeal things which are pledged or mortgaged, where the pledgee or the mortgagee is an execution creditor.(2) The following may not avail themselves of the prohibitions referred to in Item 5 and 7 of Article 444 herein:1. any debtors on obligations for maintenance, for damages sustained as a result of a tort or delict, or for defalcation;2. any debtors in respect of cases provided for by a law.Unseizable IncomeArticle 446. (1) If the enforcement is levied against a labour remuneration or against another remuneration for work, as well as against a pension to an amount exceeding the minimum wage, the following may be withheld if the execution debtor has a monthly income:1. up to the amount of the minimum wage: the excess over the guaranteed minimum income, if the debtor has no children, and one-half of the said excess, if the debtor has children whom the said debtor maintains;2. in excess of the minimum wage: the double amount of the tax due under the Income Taxes on Natural Persons Act, if the debtor has no children, and the amount of the tax due under the Income Taxes on Natural Persons Act, if the debtor has children whom the said debtor maintains.(2) The limitations covered under Paragraph (1) shall not apply to any maintenance obligations. In such cases, the amount for maintenance as awarded shall be withheld in whole, and the deductions covered under Paragraph (1) for the other obligations of the party found against and for maintenance obligations for a past period shall be made on the balance of all income accruing to the said debtor.(3) Coercive enforcement against receivables for maintenance shall not be admitted. Coercive enforcement against student grants shall be admitted solely in respect of maintenance obligations.Invalidity of Waiver of RemedyArticle 447. Any waiver by the execution debtor of the remedy under Articles 444 and 446 herein shall be invalid.Obligation to Declare Property and IncomeArticle 448. (1) If any seizable property whereof the sale would cover the costs of the enforcement is not found in the possession of the execution debtor, the said debtor shall be obligated to appear before the regional judge and to declare, on pain of criminal liability, the entire property and all income thereof. The lack of sufficient property shall be established by memorandum.(2) The regional judge, acting on a motion by the enforcement agent, shall schedule a hearing for the appearance of the execution debtor and the execution creditor.(3) If the execution debtor fails to appear, the court shall decree that the attendance of the said debtor be compelled.(4) If the execution debtor fails to present a declaration, the said debtor shall be liable as for the presentation of a false declaration. The obligation to appear and to present a declaration and the liability for non-compliance with the said obligations shall be stated in the summons to the execution debtor.Moves Simultaneous with Notice of Voluntary ComplianceArticle 449. (1) Where the enforcement is levied against a movable or immovable thing, the notice of voluntary compliance shall furthermore specify the day whereon the inventory will be taken. The said inventory may also be taken within the time limit for voluntary compliance.(2) Where the enforcement is levied against an immovable simultaneously with the dispatch of the notice of voluntary compliance wherein the immovable is specified, the enforcement agent shall dispatch a letter to the Recording Office for recording of a preventive attachment of the said immovable.Garnishment of Movable Thing or ReceivableArticle 450. (1) A movable thing shall be garnished by means of taking an inventory of the said thing by the enforcement agent.(2) A movable thing or a receivable of the execution debtor may alternatively be garnished by the receipt of the communication of the inventory or the garnishment if the said communication specifies exactly the thing or the receivable where against the enforcement is levied.(3) The garnishment of the receivable of the execution debtor shall be considered imposed in respect of the garnishee as from the day on which the garnishment communication is served upon the said garnishee according to Article 507 herein.Effect of Garnishment and of Preventive Attachment in Respect ofExecution DebtorArticle 451. (1) As from the time of imposition of the garnishment, the execution debtor shall forfeit the right to dispose of the receivable or of the corporeal thing and may not, on pain of criminal liability, modify, damage or destroy the corporeal thing.(2) The consequences under Paragraph (1) shall occur in respect of the execution debtor as from the receipt of the notice of voluntary compliance, where the enforcement is levied against a movable or immovable thing and the said thing is specified in the notice.Effect of Garnishment and of Preventive Attachment in Respect ofExecution CreditorArticle 452. (1) Any dispositions of the garnished corporeal thing or receivable performed by the execution debtor after the garnishment shall be invalid in respect of the execution creditor and the joint creditors, unless the third-party transferee can invoke Article 78 of the Ownership Act. (2) Where the enforcement is levied against an immovable, the invalidity shall have effect solely in respect of the dispositions performed after the recording of the preventive attachment.(3) The execution creditor and the joint creditors may demand payment from the garnishee despite the payment which the said garnishee has made to the execution debtor after the garnishment communication was served upon the said garnishee. The members of the management bodies of the garnishee shall incur solidary liability with the said garnishee.Inopposability of Unrecorded InstrumentsArticle 453. The following may not be opposed to the execution creditor and to the joint creditors:1. the transfer and creation of any rights in rem which were not recorded prior to the preventive attachment;2. the recordable judgments on any statements of action which were not recorded prior to the preventive attachment;3. the transfer of any receivable communicated after the garnishee received the garnishment communication;4. the alienation of any movable things whereof the possession was not delivered to the transferee prior to the imposition of the garnishment, unless there is a document about the alienation of the said things validly pre-dating the said imposition.Stay of Enforcement on Execution Debtor's MotionArticle 454. (1) The enforcement agent shall stay the enforcement if, until the delivery of the movable thing to a retail establishment or a commodity exchange or, respectively, until the commencement of the open-outcry auction and, applicable to the public sale of an immovable, before expiry of the time limit for submission of written bids, the natural-person execution debtor deposits 30 per cent of the receivables under the writs of execution presented there against and undertakes in writing to deposit to the enforcement agent 10 per cent of the said receivables monthly.(2) If the execution debtor fails to pay any of the instalments under Paragraph (1), the enforcement agent, acting on a motion by any of the execution creditors, shall proceed with the enforcement without the execution debtor being able to seek a new stay.(3) Paragraph (1) shall not apply where a pledged or mortgaged corporeal thing or a corporeal thing incorporated into the commercial enterprise of the sole trader is being sold.Proceeds of EnforcementArticle 455. (1) All amounts accruing under the enforcement case from the execution debtor, from the garnishee, from bidders and buyers in the sale, as well as from the retail establishments or commodity exchanges which have conducted the sale of movable things, shall be credited to the account of the enforcement agent.(2) Payment of the amounts due to the execution creditor and to the joint creditors shall be effected on the basis of payment orders issued by the enforcement agent, who shall note the redemption on the writ of execution.(3) Where the execution creditor and the execution debtor have not named an account for transfer of the amounts accruing, the said amounts shall remain on the account of the enforcement agent until claimed.Chapter Forty-OneJOINING CREDITORS AND DISTRIBUTION OF AMOUNTS COLLECTEDJoining CreditorsArticle 456. (1) During any stage of the enforcement, while the distribution has not been prepared, other creditors of the same execution debtor may join the proceeding.(2) Joining under Paragraph (1) shall be effected by a written motion whereto the creditor shall attach the writ of execution held thereby or a certificate issued by the enforcement agent to the effect that the said writ is filed with another enforcement case.(3) The certificate shall indicate the unsatisfied balance of the receivable, including principal, interest and costs, and the day at which the said balance is determined. In such case, the distributable amount shall be transferred to the account of the enforcement agent who has issued the certificate and who shall note the redemption on the writ of execution.Consequences of JoiningArticle 457. (1) The joint execution creditor shall enjoy the same rights in the enforcement proceeding as the rights enjoyed by the original execution creditor.(2) The enforcement steps performed prior to the joining shall benefit the joint execution creditor as well.(3) The communications and summonses shall be addressed solely to the original execution creditor.(4) If a third party brings an action or lodges an appeal against the enforcement steps, the original execution creditor shall be summoned as a party. The joint execution creditors may intervene in the case as co-parties. The judgment issued shall have effect in respect of the joint execution creditors as well, even if the said creditors have not intervened in the case.Joining of the StateArticle 458. The State shall be considered a priori a joint execution creditor in respect of the public and other receivables due thereto by the execution debtor, whereof the amount has been communicated to the enforcement agent prior to the effecting of the distribution. To this end, the enforcement agent shall dispatch a communication to the State Receivables Collection Agency and the National Revenue Agency regarding each enforcement commenced by the said agent and regarding each distribution.Joining of Secured CreditorArticle 459. (1) Any creditor in favour of whom an injunction by means of imposition of a garnishment or preventive attachment has been granted shall be considered joint execution creditor where the enforcement is levied against the subject of the injunction. The amount appertaining to the secured creditor shall be preserved on the account of the enforcement agent and shall be delivered to the said creditor after the said creditor presents a writ of execution. The said amount shall be distributed among the rest of the execution creditors or shall be restored to the execution debtor if the injunction is dissolved.(2) Paragraph (1) shall furthermore apply to any mortgagee and pledgee, as well as to any creditor enjoying a right of retention.DistributionArticle 460. If the amount collected under the enforcement case is insufficient to satisfy all execution creditors, the enforcement agent shall effect a distribution, allocating first amounts for payment of the receivables which enjoy a right to preferred satisfaction. The balance shall be distributed among the other receivables on a pro rata basis.Offsetting Amounts under DistributionArticle 461. The execution creditor who has been awarded the corporeal thing may set off such portion of the receivable thereof against the amount due for the value of the said thing as appertains to the said creditor on a pro rata basis.Presentment of DistributionArticle 462. (1) The enforcement agent shall present the distribution to the execution debtor and to all execution creditors, who shall be summoned to this end on a day assigned by the enforcement agent.(2) Unless an appeal is lodged within three days after the presentment of the distribution, the said distribution shall be considered final and the enforcement agent shall deliver the amounts under the distribution.Judgment on DistributionArticle 463. (1) In case the distribution is appealed, the case, together with the appeal, shall be transmitted to the district court, which shall examine the said appeal according to the procedure established by Article 278 herein.(2) The judgment of the district court on the distribution shall be appealable before the appellate court. The examination of the appeal shall follow the procedure established by Article 274 herein. The judgment of the appellate court shall be unappealable.Contestation of Joint Creditor's ReceivableArticle 464. (1) Where one of the execution creditors contests the existence of the receivable of another creditor, the former must bring an action against the latter and the execution debtor. The bringing of the action shall stay the delivery of the amount allocated to the creditor holding the contested receivable. Unless such action is brought within one month after the distribution, the amount shall be delivered to the execution creditor.(2) The action may alternatively be based on facts pre-dating the conclusion of the trial in the proceeding under which the enforcement title has been issued.Chapter Forty-TwoENFORCEMENT AGAINST CORPOREAL THINGSSection IInventory, Appraisal and Delivery for SafekeepingInventory of Movable ThingArticle 465. The enforcement agent shall take an inventory of the corporeal thing specified by the execution creditor solely if the said thing is in the possession of the execution debtor, except where it is evident from the circumstances that the said thing appertains to another person.Inventory of Growing Crops and FruitsArticle 466. Coercive enforcement may be levied even against growing crops and fruits, an inventory of which shall be taken not earlier than two months prior to the customary time for the harvesting thereof.Inventory of Movable Thing: ContentArticle 467. (1) The inventory must contain:1. a reference to the writ of execution;2. the place where the inventory is taken;3. a detailed description of the corporeal thing;4. the price at which the corporeal thing is to be sold at a retail establishment;5. the oppositions by the parties, if any, and any rights to the inventoried corporeal thing declared by third parties.(2) It must be noted in the inventory whether the corporeal things where against coercive enforcement is not admitted have been left with the execution debtor.(3) The inventory shall furthermore specify the place and time of the sale of the corporeal thing, should the execution creditor so request. In such case, the execution debtor shall be considered notified of the sale regardless of whether the said debtor was present when the inventory was taken.(4) The inventory shall be signed by the enforcement agent. The inventory shall not be communicated to the parties.Fixing Price of Movable ThingArticle 468. (1) The enforcement agent shall fix the price at which the movable thing is to be sold at a retail establishment. The starting bid for bidding at the open-outcry auction or for the public sale shall be 50 per cent of the selling price at a retail establishment.(2) Where necessary, an expert may be appointed to determine the condition of the corporeal thing. The said expert may alternatively give the conclusion thereof orally, which shall be recorded in the memorandum.Delivery to Execution Debtor for SafekeepingArticle 469. The inventoried movable thing may be delivered to the execution debtor for safekeeping, unless removed for sale at a retail establishment. In such case, the execution creditor may use the said thing solely if this does not diminish the value thereof.Safekeeping of Inventoried Corporeal ThingArticle 470. (1) If the execution debtor refuses to accept the corporeal thing for safekeeping or if the enforcement agent determines that the said thing must not be left with the said debtor, the corporeal thing shall be seized by the enforcement agent and shall be given for safekeeping to the execution creditor or to a keeper appointed by the enforcement agent.(2) The keeper shall be selected in consideration of the person thereof, as well as of the nature of the corporeal thing, and of the place where the said thing is situated or will be stored.(3) The corporeal thing shall be delivered for safekeeping against signed acknowledgment.Keeper's ObligationsArticle 471. (1) The keeper shall be obligated to keep the corporeal thing acting as a prudent administrator and to give account for the revenue accruing from the said thing and for the expenses incurred on the safekeeping of the said thing.(2) If the keeper fails to comply with the obligations thereof under Paragraph (1), the enforcement agent may deliver the corporeal thing for safekeeping to another person.Remuneration of Expert and KeeperArticle 472. The enforcement agent shall fix a remuneration due to the expert and to the keeper, where a third party, which shall be deposited by the execution creditor in advance. If any costs have to be incurred as well on the removal or safekeeping of the corporeal thing, the said costs shall be deposited by the execution creditor in advance.Section IISale of Movable ThingsCompetition upon Levy of Another EnforcementArticle 473. (1) The sale of a garnished corporeal thing shall be conducted by the enforcement agent who has taken an inventory of the said thing.(2) If another enforcement is levied against the inventoried corporeal thing, the subsequent execution creditor may approach the regional court with a motion to authorize the conduct of a sale for enforcement of the receivable of the said creditor. An authorization shall be granted if a memorandum referred to in Article 477 (3) herein is not registered at the regional court after the lapse of one month since the levy of the enforcement.(3) The movable thing as inventoried shall be seized for enforcement on the basis of the authorization referred to in Paragraph (2).Sale of Movable ThingArticle 474. (1) The sale of a movable thing shall be conducted through a retail establishment or a commodity exchange, at open-outcry auction, or according to the procedure applicable to the public sale of an immovable.(2) The execution debtor may agree that the corporeal thing be sold at the price as fixed by the enforcement agent at a retail establishment of the private enforcement agent or at a retail establishment named thereby, presenting the written consent for acceptance of the said thing for sale at the retail establishment.(3) If the corporeal thing can be sold on a commodity exchange, the execution creditor or the execution debtor may name a commodity exchange, presenting the written consent for acceptance of the said thing for sale by the exchange.(4) The delivery of the corporeal thing shall be attested by a memorandum signed by the enforcement agent and by the manager of the commodity exchange or retail establishment. The retail establishment or the commodity exchange, as the case may be, shall receive a commission for the sale effected to the amount of 15 per cent of the selling price, which shall be withheld upon depositing of the proceeds.(5) Any corporeal things of a value appraised in excess of BGN 5,000, any motor vehicles, any ships and aircraft shall be sold by the enforcement agent according to the procedure applicable to the public sale of an immovable as established by this Code. Any such sale shall be advertised according to the procedure established by Article 477 (3) herein. The enforcement agent shall deliver possession of the corporeal thing after payment of the price. The rules of Articles 482 and 521 herein shall apply in this proceeding.Sale of Perishable ThingsArticle 475. Any corporeal things that are perishable and whose preservation requires substantial costs or special conditions shall be sold not later than one week after the inventory is taken.Sale of Growing Crops and FruitsArticle 476. Any growing crops and fruits shall be sold by the enforcement agent according to the procedure applicable to the public sale of an immovable established by this Code. Any such sale must be conducted not earlier than one week prior to the customary time for the harvesting of the said crops and fruits.Sale at Retail EstablishmentArticle 477. (1) The corporeal thing shall be removed to the retail establishment by the execution debtor.(2) The execution debtor shall present to the enforcement agent a receipt attesting the delivery of the corporeal thing at the retail establishment.(3) The enforcement agent shall advertise the sale of the corporeal thing by means of notices which shall be posted in the places designated for this purpose at the regional court, at the office of the enforcement agent, and at the local municipality or mayoralty. The memorandum on the posting of the said notices shall be registered at the regional court.Sale on SiteArticle 478. Where removal of the corporeal thing to a retail establishment is inconvenient in respect of the sale of the said thing, the enforcement agent shall post a notice in a conspicuous place at the retail establishment and shall afford an opportunity to those wishing to view the corporeal thing in the place where the said thing is situated. The sale shall be advertised according to the procedure established by Article 477 (3) herein.Payment of PriceArticle 479. The sale at a retail establishment shall be conducted at the price fixed. The corporeal thing shall be delivered to the buyer after payment of the price. If the corporeal thing sells at a price lower than the price fixed or is delivered to the seller prior to payment of the price, the enforcement agent shall collect the selling price from the seller.New SaleArticle 480. If the corporeal thing is not sold within three months after the delivery of the said thing to a retail establishment or after the sale is advertised according to the procedure established by Article 478 herein, the said thing shall be sold at open-outcry auction.Sale at Open-Outcry AuctionArticle 481. (1) The enforcement agent shall conduct the sale at open-outcry auction at the assigned time in front of the building where the inventoried corporeal things are kept or in another place appointed by mutual consent of the parties. Should no consent be reached, the sale shall be conducted in a place assigned by the enforcement agent, and shall be scheduled to a date within one to three weeks after the inventory is taken.(2) The sale shall not be scheduled and the corporeal things as inventoried shall be released if the enforcement creditor fails to deposit the costs of conduct of the said sale within one week after the inventory is taken.(3) On the day of the sale, the enforcement agent shall draw up a memorandum, stating therein the day and the manner of advertisement and notification of the parties.(4) The auction shall commence at the time assigned and shall end after the last thing inventoried is offered.(5) No earnest money shall be deposited for entry in the auction.(6) If no bidders present themselves within one hour after the assigned time, the enforcement agent shall offer the corporeal things for sale in succession in an order at his or her own discretion.(7) Each separate corporeal thing shall be offered orally by the enforcement agent at the starting bid as fixed for the auction. The price shall be announced thrice.(8) If any of the bidders signals that he or she accepts the price, the enforcement agent shall offer the corporeal thing at a higher price. If the higher price is accepted by any of the bidders, the enforcement agent shall offer an even higher price.(9) If the highest price offered is not accepted even after the third announcement, the enforcement agent shall declare that the corporeal thing has been purchased by the bidder who was the first to accept the lower price announced, shall record the price in the memorandum, and shall deliver the corporeal thing to the bidder against payment in cash. If the purchaser declared by the enforcement agent fails to pay the accepted price in cash immediately, the enforcement agent shall exclude the said bidder from further bidding in the auction.(10) If bidders do not present themselves or if the starting bid is not accepted even after the third announcement, the enforcement agent shall declare the sale uneffected, shall release the corporeal thing, and shall deliver the said thing to the execution debtor. If the execution debtor is not present, the corporeal thing shall be delivered to the keeper, and if the corporeal thing has not been delivered for safekeeping, the said thing shall be left in the place of the sale at the disposal of the execution debtor.Stability of SaleArticle 482. (1) Once conducted, the sale may not be appealed or contested according to an action procedure.(2) Ownership of the corporeal thing shall pass to the purchaser of the said thing regardless of whether the said thing appertained to the execution debtor.(3) The previous owner shall be entitled to receive the price if the said price was not paid under the distribution. If the said price was paid, the said owner shall be entitled to recover from the execution creditors and from the execution debtor what they received under the distribution.(4) If the execution creditor acts in bad faith, the said creditor shall be liable to the owner for the damages inflicted thereon. In all cases, the costs of the enforcement shall be borne by the execution creditor.Chapter Forty-ThreeENFORCEMENT AGAINST IMMOVABLE THINGSInventory of ImmovableArticle 483. The enforcement agent shall take an inventory of the immovable specified by the enforcement creditor after satisfying himself or herself that the said immovable was owned by the execution debtor at the day of imposition of the preventive attachment. The verification of ownership shall be performed by means of a search of the tax or notarial books or in another manner, including an examination of neighbours. Where reliable data on the ownership are not available, possession at the day of the preventive attachment shall be taken into account.Inventory: ContentArticle 484. (1) The inventory shall contain:1. a reference to the writ of execution;2. the place where the inventory is taken;3. the location, the boundaries of the immovable, and any mortgages and preventive attachments imposed thereon, as well as any taxes due;4. the starting bid for the bidding;5. the oppositions by the parties, if any, and any rights to the corporeal thing inventories as declared by third parties.(2) The enforcement agent shall request information on the charges from the National Revenue Agency territorial directorate and from the Recording Offices simultaneously with the motion for recording of the preventive attachment.(3) The inventory shall furthermore specify the place and time of the sale of the corporeal thing, should the execution creditor so request. In such case, the execution debtor shall be considered notified of the sale regardless of whether the said debtor was present when the inventory was taken.(4) The inventory shall be signed by the enforcement agent. The inventory shall not be communicated to the parties.Fixing Starting Bid for Public SaleArticle 485. The enforcement agent shall fix the starting bid for the bidding, with Article 468 herein being applied, mutatis mutandis.Keeping of Corporeal ImmovableArticle 486. (1) The immovable shall be left in the possession of the execution debtor until conduct of the sale. The execution debtor must manage the immovable acting as a prudent administrator. The said debtor shall receive the immovable according to the inventory and shall be obligated to deliver the said immovable in the same condition as accepted thereby.(2) If the execution debtor fails to manage the immovable properly or obstructs the viewing by third parties, the enforcement agent shall deliver the management to another person.Advertisement of SaleArticle 487. (1) Upon the lapse of one week since the inventory was taken, the enforcement agent shall be obligated to draw up a notice of the sale, stating therein the owner of the immovable, a description of the immovable, whether the immovable is mortgaged and for what amount, the starting bid for the sale, and the place and the day on which the sale will commence and will end.(2) The notice referred to in Paragraph (1) shall be posted in the places designated for this purpose at the office of the private enforcement agent, at the building of the regional court, in the municipality or mayoralty exercising competence over the location of the immovable, as well as in the immovable itself, and then at least one day prior to the day stated in the notice for commencement of the sale.(3) On the day referred to in Paragraph (2), the enforcement agent shall draw up a memorandum, stating therein the day of advertising of the notice. The said memorandum shall be registered at the regional court.(4) The enforcement agent shall determine the period of time during which persons who wish to purchase the immovable may view the said immovable.Place of SaleArticle 488. (1) The sale shall be conducted at the building of the regional court. The said sale shall continue for one month and shall end on the day stated in the notice.(2) The papers on the sale shall be kept at the office of the regional court at the disposal of any person interested in the immovable.BidsArticle 489. (1) Earnest money for entry in the bidding, amounting to 10 per cent of the starting bid, shall be deposited in an account of the enforcement agent. The execution creditor shall not deposit earnest money if the receivable thereof exceeds the amount of the said earnest money.(2) Each bidder shall state the price offered thereby in figures and in words and shall submit the bid thereof, together with the receipt of deposit of the earnest money, in a sealed envelope. Each bidder may make multiple bids. Each bid shall be made separately.(3) The execution creditor shall not deposit earnest money for each bid if the receivable thereof exceeds the amount of the sum total of the requisite amounts of earnest money according to the number of the bids made.(4) The bids shall be submitted at the office of the regional court, and any such submission shall be recorded in the incoming register.(5) The sale shall end at the end of normal business hours on the last day.(6) Any bids by any persons who are disqualified from entering the public sale, as well as any price offers below the starting bids, shall be invalid.Persons Disqualified from BiddingArticle 490. (1) The execution debtor, the legal representative thereof, the officials of the office of the regional court, the employees of the enforcement agent, as well as the persons specified in Article 185 of the Obligations and Contracts Act, shall not have the right to enter the bidding.(2) Where the immovable has been purchased by a person disqualified from bidding, the sale shall be invalid.(3) In the case referred to in Paragraph (2), the amount deposited by the purchaser shall be retained for satisfaction of the receivables under the enforcement case, and the immovable may be offered for sale again on a motion by any of the execution creditors.Non-conduct of Sale upon Payment of DebtArticle 491. If the execution debtor deposits everything due under the writs of execution presented there against and the costs of the enforcement case before expiry of the time limit for submission of the written bids, the sale shall not be conducted.Declaration of PurchaserArticle 492. (1) At the commencement of normal business hours on the day after expiry of the time limit for submission of written bids, in the assigned place at the building of the regional court, the enforcement agent, in the presence of the bidders who have presented themselves, shall declare the bids as submitted and shall draw up a memorandum on the said declaration. The bidders and the bids shall be entered in the said memorandum in the order of opening of the envelopes. The bidder who has offered the highest price shall be considered purchaser of the immovable. If the highest price has been offered by more than one bidder, the purchaser shall be determined by the drawing of lots in the presence of the bidders who have appeared. The declaration of the purchaser shall be effected by the enforcement agent in the memorandum which shall be signed thereby.(2) If, upon declaration of the purchaser, any of the bidders who have appeared offers orally a price higher by one amount of earnest money, the enforcement agent shall record the bid in the memorandum and, after the bidder signs the said memorandum, the enforcement agent shall ask thrice whether anybody wishes to offer a price higher by one more amount of earnest money. If such a bid is submitted, it shall be recorded in the memorandum and the bidder shall sign the said memorandum. After the bids are exhausted, the bidder who has offered the highest price shall be declared purchaser of the immovable.(3) The purchaser shall be obligated to deposit the price offered thereby, deducting the earnest money deposited, within one week after the end of the sale.Next PurchaserArticle 493. If the price is not deposited within the time limit referred to in Article 492 (3) herein:1. the earnest money deposited by the bidder shall serve for satisfaction of the execution creditors;2. the enforcement agent shall invite the bidder, who offered the next highest price and has not withdrawn the earnest money thereof, to purchase the immovable; if the said bidder agrees, the said bidder shall be declared purchaser of the immovable; if the said bidder declines or fails to deposit the price within one week after being declared purchaser, the enforcement agent shall offer the immovable to the next bidder in the order of the prices offered and shall do so until exhausting all bidders who have offered a price equal to the starting bid; any bidder, who has agreed to purchase the immovable and who fails to deposit the price offered in due time, shall be liable under Item 1.New SaleArticle 494. (1) If bidders have not appeared or if no valid bids have been made, or if the purchaser has failed to deposit the price and the immovable has not been awarded according to the procedure established by Item 2 of Article 493 herein, the execution creditor shall have the right to move, within one week after the communication, for the conduct of a new sale.(2) The new sale shall be conducted according to the rules applicable to the first sale. The said sale shall commence not earlier than one month after the end of the first sale at a starting bid equal to 80 per cent of the starting bid for the first sale. If the immovable is not sold even at that sale and the fixing of a new starting bid is not moved for within one week, the immovable shall be released from enforcement and the preventive detachment shall be expunged on a motion by the enforcement agent.Payment of Price by Enforcement CreditorArticle 495. The execution creditor, who has been declared purchaser of an immovable, shall be obligated, within one week after the distribution, to deposit the amount required for payment of the proportionate parts of the receivables of the other execution creditors, or the amount whereby the price exceeds the receivable of the said creditor where there are no other execution creditors. If the execution creditor fails to deposit the said amount, the said execution creditor shall be liable for the damages and for the costs of the sale, and Article 494 (2) herein shall apply in respect of the immovable.Award DecreeArticle 496. (1) Where the person who has been declared purchaser according to the procedure established by Articles 492 to 494 herein deposits the amount due in due time, the enforcement agent shall award the immovable thereto by a decree.(2) As from the day of the award decree, the purchaser shall acquire all rights to the immovable which the execution debtor enjoyed. The rights to the immovable which any third parties have acquired shall be inopposable to the purchaser if the said rights are inopposable to the execution creditors.(3) Unless the award is appealed, the validity of the sale shall be contestable solely upon breach of Article 490 herein and upon non-payment of the price. In the latter case, the purchaser may avert the granting of the action if the said purchaser deposits the amount due with interest accruing since the day when the said purchaser was declared purchaser.Advertisement of New SaleArticle 497. If the award decree is vacated or if the sale is declared invalid under Article 496 (3) herein, the new sale shall be conducted after new advertising.Delivery of Possession to PurchaserArticle 498. (1) Possession of the immovable shall be delivered to the purchaser by the enforcement agent on the basis of the effective award decree. The purchaser shall present certificates of fees paid on the transfer of the immovable and on recording of the award decree.(2) The coercive seizure of possession shall be executed against any person who is in possession of the immovable. The only remedy available to such a person shall be an action for ownership.Recovery upon Judicial EvictionArticle 499. (1) If it is established by an effective judgment that the execution debtor did not own the immovable sold, the purchaser may seek recovery of the price deposited thereby, if the said price has not yet been paid out to the execution creditors, or if the said price has been paid out, the said purchaser may seek recovery from each one of the said creditors, as well as from the execution debtor. In both cases the purchaser shall be entitled to interest and to the costs incurred on the entry thereof in the sale. The said purchaser shall furthermore be entitled to seek a refund of the fees paid on the transfer from the municipality and the State.(2) For recovery of the amounts referred to in Paragraph (1), the regional judge exercising jurisdiction over the location of the immovable shall issue a writ of execution on the basis of the distribution and the certificates referred to in Article 498 (1) herein, if the persons where against the writ is issued are impleaded in the case in the matter of which the judgment has been rendered. If the amount deposited by the purchaser has not been paid out, the said purchaser shall recover the said amount by payment order issued by the enforcement agent.(3) Where the immovable has been awarded to an execution creditor, the said creditor shall retain the receivable thereof against the execution debtor and shall be entitled to seek, according to the procedure established by Paragraph (2), recovery of the amounts specified in Paragraph (1), excluding the costs incurred on the entry thereof in the sale.Sale of Co-owned ImmovableArticle 500. (1) Where the enforcement is levied against any co-owned immovable for a debt of any of the co-owners, an inventory shall be taken of the immovable in globo, but solely the undivided interest of the execution debtor shall be sold.(2) Alternatively, the immovable may be sold in globo, if the rest of the co-owners agree to this in writing.Sale of Mortgaged ImmovableArticle 501. (1) Upon the sale of a mortgaged immovable which is conducted to enforce a receivable other than the receivable of the mortgagee, the enforcement agent shall dispatch to the said mortgagee a communication on the scheduling of the inventory and the sale.(2) In the cases referred to in Articles 494 and 495 herein, the mortgagee may enter the sale on an equal footing with the rest of the creditors.Chapter Forty-FourENFORCEMENT OF CORPOREAL THINGS IN MATRIMONIAL COMMUNITY PROPERTYLevy of Enforcement against Common Corporeal ThingArticle 502. (1) Enforcement of a receivable against one of the spouses may be levied against a corporeal thing which constitutes matrimonial community property. The non-debtor spouse may name a property owned by the debtor spouse where against the enforcement is to be levied. If the property named is available and the receivable can be satisfied there from, after the inventory is taken, the enforcement in respect of the corporeal thing which constitutes matrimonial community property shall be stayed and may be resumed if, after realization of the property named, the receivable or part thereof remains unsatisfied.(2) Where the spouses agree that the enforcement be levied against a corporeal thing designated thereby, which constitutes matrimonial community property, Article 443 herein shall apply.Non-debtor Spouse NotifiedArticle 503. (1) Where the enforcement agent establishes that a corporeal thing where against enforcement is levied constitutes matrimonial community property, the said agent shall notify the non-debtor spouse.(2) The non-debtor spouse may appeal against the enforcement steps citing non-compliance with Article 502 herein.(3) The non-debtor spouse may contest the receivable on the same grounds and according to the same procedure as the debtor spouse, as well as appeal against the enforcement steps on the same grounds as the debtor spouse.(4) The non-debtor spouse may furthermore enter the bidding upon the public sale of the corporeal immovable.Sale of Common Corporeal ThingArticle 504. (1) Where the enforcement is levied against any corporeal thing constituting matrimonial community property, after the sale of the said thing the enforcement agent shall pay out half of the proceeds to the non-debtor spouse, and shall apply Article 455 (2) and Articles 460 to 464 herein to the balance.(2) If the enforcement is levied against an immovable, Article 500 herein shall apply.Frustration of Sale and Precedence upon AwardArticle 505. (1) The non-debtor spouse may frustrate the sale if the said spouse deposits the cash equivalent of the share of the debtor spouse in the common corporeal thing in an account of the enforcement agent according to the price fixed for sale at a retail establishment or of the price of the immovable, as the case may be, prior to the delivery of the corporeal thing to a retail establishment or a commodity exchange or, respectively, prior to the commencement of the open-outcry auction and, applicable to the public sale of an immovable, before expiry of the time limit for submission of written bids.(2) Where the non-debtor spouse enters the bidding, the said spouse shall be declared purchaser if, upon the drawing up of the memorandum under Article 492 (1) herein, the said spouse declares that he or she wishes to purchase the immovable at the highest price offered.Equality of SharesArticle 506. In the cases referred to in Articles 504 and 505 herein, the non-debtor spouse may not oppose to the execution creditor the entitlement of the said spouse to a larger share than the debtor spouse owing to the contribution of the non-debtor spouse to the acquisition of the corporeal thing. The execution creditor may not claim that the share of the debtor spouse is larger on the same grounds.Chapter Forty-FiveENFORCEMENT AGAINST EXECUTION DEBTOR'S RECEIVABLESGarnishment of ReceivableArticle 507. (1) The garnishment communication shall be dispatched to the garnishee simultaneously with the dispatch of the notice of voluntary compliance to the execution debtor.(2) The garnishment communication shall forbid the garnishee to deliver the amounts or corporeal things due there from to the execution debtor. The said corporeal things must be listed exactly.(3) As from the day of receipt of the garnishment communication, the garnishee shall assume the obligations of a keeper in respect of the corporeal things or amounts due there from.Garnishee's DutiesArticle 508. (1) Within three days after service of the garnishment communication, the garnishee must inform the enforcement agent:1. whether the said garnishee acknowledges the receivable whereupon the garnishment is imposed, and whether the said garnishee is ready to pay the said receivable;2. whether any other parties claim the same receivable;3. whether a garnishment has been imposed on the same receivable under other writs of execution as well, and for what claims.(2) The invitation to give these explanations shall be contained in the communication of imposition of the garnishment itself.(3) If the garnishee does not contest the obligation thereof, the said garnishee shall deposit the amount due there from in the account of the enforcement agent or shall deliver the garnished corporeal things thereto.Garnishment of Receivable Secured by Pledge or MortgageArticle 509. (1) If the garnished receivable is secured by a pledge, the person who holds the pledged corporeal thing shall be commanded not to deliver the said thing to the execution debtor but to deliver the said thing to the enforcement agent if the garnishee acknowledges the debt.(2) If the garnished receivable is secured by a mortgage, the garnishment shall be noted in the relevant book at the Recording Office.Award for Collection or in Lieu of PaymentArticle 510. The garnished receivable shall be made available to the execution creditor for collection or, on a motion thereby, shall be given to the execution creditor in lieu of payment. Where there are several execution creditors under the enforcement case, the receivable shall be made available for collection to the execution creditor on whose motion the case has been instituted and, should the said creditor decline, to another execution creditor who makes such a motion.Enforcement against Delivered Corporeal ThingsArticle 511. Enforcement against the corporeal things which the garnishee delivers or which the said garnishee has been ordered to deliver shall follow the procedure established by Articles 465 to 482 herein.Garnishment of Labour RemunerationArticle 512. (1) The garnishment of a labour remuneration shall affect not only the remuneration specified in the garnishment communication but also any other remuneration received by the execution debtor in consideration of the same or other work with the same employer or at the same institution.(2) If the execution debtor takes up employment with another employer or at another institution, the garnishment communication shall be forwarded there by the person who initially received the said communication and shall be considered dispatched by the enforcement agent. The garnishee shall notify the enforcement agent of the new place of work of the execution debtor and of the amount withheld until the change of employment.(3) The person who pays a labour remuneration to the execution debtor notwithstanding the garnishment imposed, without withholding the amount under the garnishment, shall be liable in person to the execution creditor for the said amount solidarily with the garnishee.(4) The garnishment communication under maintenance obligations shall be entered into the civil-service or employment work book of the execution debtor by the person who pays the remuneration. Where the execution debtor takes up employment with another employer or at another institution, the remuneration thereof shall continue to be withheld on the basis of this entry even if no other garnishment communication is received.(5) The entry shall be expunged at the command of the enforcement agent who has imposed the garnishment.(6) If the employment relationship or civil-service relationship of the execution debtor is terminated after the imposition of the garnishment on the labour remuneration and the said debtor fails to notify the enforcement agent of the new employment of the said debtor within one month, the enforcement agent shall impose a fine not exceeding BGN 200 on the said debtor.Execution Creditor's Liability upon Collection of ReceivableArticle 513. The execution creditor who delays the collection of the receivable delivered thereto shall be liable to the execution creditor under the writ of execution for all damages which constitute a direct and immediate consequence of the said delay.Costs of Collection of Awarded ReceivableArticle 514. The costs which the execution creditor incurs on collection of the receivable delivered thereto shall be left borne thereby. The said execution creditor shall be obligated to give the enforcement agent exact account of the amounts collected.Enforcement against Physical SecuritiesArticle 515. (1) Physical securities shall be garnished by means of taking an inventory and seizure of the said securities by the enforcement agent, who shall deposit the said securities with a bank.(2) Upon the imposition of garnishment on physical registered shares or bonds, the enforcement agent shall notify the corporation of this. The garnishment shall have effect in respect of the corporation as from the receipt of the garnishment communication. The garnishment shall extend to all property rights conferred by the security.(3) After imposition of the garnishment, the execution creditor may move for:1. an award of the receivable under the security for collection in lieu of payment;2. the conduct of a public sale.(4) Physical securities shall be sold by the enforcement agent in accordance with the rules for public sale of an immovable under this Code, separately and in blocks. The enforcement agent shall transfer each security in the due manner applicable to the said security and shall deliver the said security to the purchaser after the entry into effect of the award decree. Where the security is transferred by endorsement, the order of endorsements shall not be interrupted.Enforcement against Dematerialized SecuritiesArticle 516. (1) Dematerialized securities shall be garnished by means of dispatch of a garnishment communication to the Central Depository, the corporation being notified simultaneously. The Central Depository shall notify immediately the relevant regulated market of the garnishment imposed.(2) Government securities shall be garnished by means of dispatch of a garnishment communication to the person keeping a register of government securities.(3) The garnishment shall have effect as from the time of service of the garnishment communication and shall extend to all property rights conferred by the security.(4) The Central Depository and the person keeping a register of government securities shall be obligated to notify the enforcement agent, within the time limit referred to in Article 508 herein, of what securities are held by the execution debtor, whether any other garnishments have been imposed and for what claims.(5) As from the receipt of the garnishment communication, the dematerialized securities shall pass into the disposition of the enforcement agent.(6) After imposition of the garnishment, the execution creditor may move for:1. an award of the receivable under the security for collection in lieu of payment;2. the conduct of a public sale.(7) Dematerialized securities shall be sold through a bank in the manner established for the said securities. The enforcement agent shall act on his or her behalf and for the account of the execution debtor.Enforcement against Participating Interest in Commercial CorporationArticle 517. (1) A participating interest in a commercial corporation shall be garnished by dispatch of a garnishment communication to the Registry Agency. The garnishment shall be recorded according to the procedure applicable to recording of a pledge of a participating interest in a commercial corporation and shall have effect as from the recording of the said garnishment. The Registry Agency shall notify the corporation of the garnishment as recorded.(2) Where the enforcement is levied against a participating interest held by a general partner, the enforcement agent, after establishing compliance with the conditions under Article 96 (1) of the Commerce Act, shall serve the declaration of will of the execution creditor on dissolution of the corporation upon the corporation and upon the rest of the general partners. After the lapse of six months, the enforcement agent shall empower the execution creditor to bring an action for dissolution of the corporation before the district court exercising jurisdiction over the registered office of the said corporation. The court shall dismiss the action if it is established that the receivable of the execution creditor has been satisfied. If it determines that the action is well-founded, the court shall dissolve the corporation. The dissolution shall be recorded ex officio in the commercial register, where after liquidation shall be proceeded with.(3) Where the enforcement is levied against a participating interest held by a limited partner, the enforcement agent shall serve upon the corporation the declaration of will of the execution creditor on termination of the participating interest of the execution debtor in the corporation. After the lapse of three months, the enforcement agent shall empower the execution creditor to bring an action for dissolution of the corporation before the district court exercising jurisdiction over the registered office of the said corporation. The court shall dismiss the action if it is established that the corporation has paid the execution creditor the portion of the property, determined according to Article 125 (3) of the Commerce Act, appertaining to the execution-debtor partner, or that the receivable of the execution creditor has been satisfied. If it determines that the action is well-founded, the court shall dissolve the corporation. The dissolution shall be recorded ex officio in the commercial register, where after liquidation shall be proceeded with.(4) Where the enforcement is levied against all participating interests in a corporation, the action for dissolution of the said corporation may be brought after recording of the garnishment and without compliance with the requirements of Article 96 (1) of the Commerce Act, without service of a declaration of will for dissolution of the company or for termination of the participation of the execution debtors in the company. The court shall dismiss the action if it is established that the receivable of the execution creditor has been satisfied before the end of the first hearing of the case. If it determines that the action is well-founded, the court shall dissolve the corporation and this shall be recorded ex officio in the commercial register, where after liquidation shall be proceeded with.Enforcement against Common DepositArticle 518. Enforcement for a receivable against one of the spouses may alternatively be levied against one-half of a money deposit in matrimonial community. The other half shall remain a personal deposit of the non-debtor spouse. The provisions of Articles 503 and 506 herein shall apply, mutatis mutandis, to any such enforcement.Chapter Forty-SixENFORCEMENT AGAINST GOVERNMENT INSTITUTIONS, MUNICIPALITIES ANDBUDGET-SUBSIDIZED ESTABLISHMENTSEnforcement against Government InstitutionsArticle 519. (1) Enforcement of pecuniary receivables against government institutions shall be inadmissible.(2) The pecuniary receivables against government institutions shall be paid out of the budgetary spending authority of the said institutions provided for this purpose. To this end, the writ of execution shall be presented to the financial authority of the relevant institution. If spending authority is not available, the superior institution shall undertake the measures necessary for a provision for such authority in the next succeeding budget at the latest.Enforcement against Municipalities and Budget-Subsidized EstablishmentsArticle 520. (1) Enforcement against any resources on the bank accounts of the municipalities and the other establishments subsidized by the budget, which have accrued as a subsidy from the central government budget, shall be inadmissible.(2) Enforcement of pecuniary receivables against any other property which is privately owned by the execution creditors referred to in Paragraph (1) shall follow the rules of this Title.TITLE THREEENFORCEMENT OF NON-PECUNIARY RECEIVABLESChapter Forty-SevenCOERCIVE SEIZURE OF CORPOREAL THINGSDelivery of Movable ThingArticle 521. (1) Any movable thing awarded which, having been claimed by the enforcement agent, was not voluntarily delivered by the execution debtor, shall be seized coercively from the said debtor and shall be delivered to the execution creditor.(2) If the corporeal thing is not in the possession of the execution debtor or has deteriorated, the cash equivalent of the said thing shall be collected from the said debtor. It shall be proceeded in a similar way where only part of the corporeal thing is found. If the cash equivalent of the corporeal thing is not specified in the writ of execution, the said equivalent shall be determined by the enforcement agent after hearing of the parties and, where necessary, after examination of witnesses and an expert witness as well.(3) The decree determining the cash equivalent shall be appealable under Article 436 herein. The appellate review of the decree shall not stay the collection of the cash equivalent, but the court may decree the stay. The court shall examine the appeal, sitting in public session with the execution debtor and the execution creditor being summoned. The judgment shall be appealable before the appellate court, whose judgment shall be unappealable.Delivery of PossessionArticle 522. (1) Possession of an immovable which has been awarded to a person shall be delivered to the said person. The enforcement agent shall assign a day and hour for the delivery of possession and shall notify the parties. The memorandum shall be drawn up by the enforcement agent on site. If the enforcement agent does not vacate the immovable voluntarily, the said agent shall be evicted coercively.(2) The judgments referred to in Article 349 herein shall be enforced after the appertaining portions of the value of the immovable are paid up to the other co-partitioners.Delivery of Possession Adverse to Third PartyArticle 523. (1) If the enforcement agent finds the corporeal immovable awarded in the possession of a third party and if the said agent satisfies himself or herself that the said party has acquired possession of the immovable after the institution of the case in the matter of which the judgment enforced has been issued, the said agent shall deliver possession of the immovable to the execution creditor. In the memorandum, the enforcement agent shall specify the manner in which the said agent satisfied himself or herself that the third party has acquired possession after the institution of the case.(2) If the third party claims any rights to the awarded immovable which exclude the rights of the execution creditor, the enforcement agent shall adjourn the enforcement and shall allow the third party three days to approach the regional court with a motion for stay of the enforcement.Stay of Delivery of PossessionArticle 524. Attached to the petition for the stay, the third party must present written evidence of the right claimed thereby to the immovable. The petition shall be examined in public session with the execution creditor, the execution debtor and the third party being summoned. If the court determines that the petition is well-founded, the court shall stay the enforcement and shall allow the third party one week to bring an action before the competent court. If the third party fails to bring an action within the time limit allowed, the stay shall be vacated on a motion by the execution creditor.Unsanctioned Recovery of PossessionArticle 525. (1) Where the person evicted from possession recovers possession of the immovable in any manner whatsoever without a sanction, the enforcement agent, acting on a motion by the execution creditor, shall re-evict the said person there from.(2) The person referred to in Paragraph (1) shall furthermore incur criminal liability under Article 323 (2) of the Criminal Code. Chapter Forty-EightPERFORMANCE OF SPECIFIC ACTEnforcement of Obligation to Perform Substitutable ActArticle 526. (1) Where the execution debtor fails to perform an act which the said debtor has been ordered to perform and which may be performed by another person, the execution creditor may seek from the enforcement agent empowerment of the said creditor to perform the act for the account of the execution debtor.(2) The execution creditor may approach the court with a motion that the execution debtor be ordered to deposit in advance the amount necessary for performance of the act.Enforcement of Obligation to Perform Non-substitutable Act and toRefrain from ActingArticle 527. (1) Where the act cannot be performed by another person but depends exclusively on the will of the execution debtor, the enforcement agent, acting on a motion by the execution creditor, shall compel the said debtor to perform the act, imposing thereon a fine not exceeding BGN 200. If even after that the execution creditor fails to perform the act, the enforcement agent shall impose thereon successive new fines up to the same amount.(2) The rule under Paragraph (1) shall not apply to the obligations of factory and office workers arising from an employment relationship or civil-service relationship.(3) Where the execution debtor acts contrary to what the said debtor is obligated to do or to suffer, the enforcement agent, acting on a motion by the execution creditor, shall impose on the said debtor a fine not exceeding BGN 400 for each breach of the said obligation.(4) The acts of the enforcement agent for the empowerment and for the imposition of the fines shall be appealable according to the procedure established by Articles 435 to 438 herein.Enforcement of Obligation to Deliver ChildArticle 528. (1) Where the enforcement agent proceeds with the enforcement of an obligation to deliver a child, as well as of an obligation to return the child thereafter, the said agent shall invite the execution debtor to comply voluntarily at the assigned place and time. The notice of voluntary compliance must be served upon the execution debtor if practicable two weeks, but in any case not later than one week, prior to the time assigned for delivery of the child.(2) Within three days after service of the notice, the execution debtor must notify the enforcement agent:1. whether the said debtor is ready to deliver the child at the assigned place and time;2. what impediments exist to the timely compliance with the obligation;3. of the place and time at which the said debtor is ready to deliver the child.(3) The enforcement agent shall impose a fine under Article 527 (3) herein on the execution debtor for a failure to comply with the obligation under Paragraph (2) in due time and, where necessary, shall decree that the attendance of the said debtor be compelled.(4) The enforcement agent may approach the Social Assistance Directorate with a request for assistance to eliminate the impediments to timely compliance with the obligation and for explanation to the execution debtor and, where necessary, to the child as well, of the advantages of voluntary compliance and the adverse consequences of non-compliance with the judgment of court. The enforcement agent may approach the Social Assistance Directorate with a request to undertake appropriate measures under Article 23 of the Child Protection Act and, where necessary, the said agent may approach the police authority with a request to take measures under Article 56 of the Ministry of Interior Act. (5) If the execution debtor fails to comply voluntarily, the enforcement agent, acting with the assistance of the police authorities and the mayor of the municipality, borough or mayoralty, shall seize the child coercively and shall deliver the said child to the execution creditor.Detention upon Obstruction of EnforcementArticle 529. If the execution debtor obstructs the enforcement, the police authorities shall detain the said debtor and shall notify the prosecuting magistracy immediately.PART SIXNON-CONTENTIOUS PROCEEDINGSChapter Forty-NineGENERAL RULESGoverning ProvisionsArticle 530. The non-contentious proceedings provided for in this Code and in other laws shall be governed by the rules of this Chapter, save insofar as any special rules are established.Cognizance of Petition for FacilitationArticle 531. (1) The non-contentious proceeding shall commence on a written petition by the interested party.(2) The petition shall be submitted to the regional court within whose geographical jurisdiction the permanent address of the petitioner is located. If the petitioners have different permanent addresses, the said petition shall be submitted to the court exercising jurisdiction over the permanent address of one of the said petitioners.Examination of Petition in CameraArticle 532. The petition shall be examined in camera, unless the court determines that the correct adjudication of the case requires that the said case be examined in public session.Ex Officio VerificationArticle 533. The court shall be obligated to verify ex officio whether the conditions for issuing of the act sought exist. The court, acting on its own initiative, may take evidence and take into account any facts not cited by the petitioner.Personal Appearance and Declaration of CircumstancesArticle 534. The court may decree the personal appearance of the petitioner. The court may require from the petitioner to confirm by a declaration the authenticity of the circumstances set forth thereby.Use of EvidenceArticle 535. The court may invoke testimony given before other authorities, as well as assign another court or the police authorities, or the municipalities, to take the requisite evidence.Stay of ProceedingArticle 536. (1) The non-contentious proceeding shall be stayed where:1. there is a case regarding a legal relation which is a precondition for the issuing of the act sought or which is subject to establishment by the said act;2. a dispute over a civil right arises on the petition for issuing of the act between the petitioner and another person, who opposes the petition; in such case, the court shall allow the petitioner one month to bring the action; the proceeding shall be terminated if the said action is not brought within the said time limit.(2) The effective judgment on the dispute shall be binding upon authorization of the non-contentious proceeding under the terms and within the limits established by Article 298 herein.Contestation of Non-contentious ActArticle 537. (1) The judgment whereby the petition for issuing of the act sought is granted shall be unappealable.(2) Where the act referred to in Paragraph (1) affects the rights of third parties, the dispute which has arisen there from, if over a civil right, shall be resolved according to an action procedure. The action shall be brought against the persons who benefit from the act. If the action is granted, the act issued shall be vacated or modified.(3) The prosecutor may bring an action for vacation of the act issued, where the said act was rendered in violation of the law. The action shall be directed against the persons who benefit from the act.Appellate Review of RefusalArticle 538. (1) A refusal to issue the act shall be appealable within one week after service of the judgment on the party.(2) The appeal shall be lodged through the regional court. The said appeal may alternatively be based on new facts and evidence. The examination of the appeal shall follow the procedure established by Article 278 herein.(3) The judgment whereby the petition is denied shall be no impediment to a re-submission of a petition to the same court for the issuing of the same act.Termination of ProceedingArticle 539. (1) The non-contentious proceeding shall be terminated where:1. the petition for issuing of the act is withdrawn;2. the petitioner is not found at the address named thereby.(2) The ruling whereby the proceeding is terminated shall be appealable by an interlocutory appeal.Applicability of Action Proceeding RulesArticle 540. In addition to the general rules of this Code, the rules of action proceeding, with the exception of Articles 207 to 266 and Articles 303 to 388 herein, shall also apply, mutatis mutandis, to non-contentious proceedings.CostsArticle 541. The costs of non-contentious proceedings shall be for the account of the petitioner.Chapter FiftyESTABLISHMENT OF FACTSScope of ApplicationArticle 542. Where the law provides that a known fact of legal relevance must be certified by a duly drawn up document (such as a certificate of educational attainment, a certificate of civil status etc.), and such document has not been drawn up and cannot be drawn up or the document drawn up has been destroyed or lost beyond recovery, the person who invokes this fact as a fountain of rights may approach the regional court with a petition to establish the said fact and, where necessary, to order the execution of the relevant document.Petition: ContentArticle 543. The petition shall state:1. the purpose for which the petitioner prays for the establishment of the relevant fact;2. the reasons for which the document has not been drawn up or for which the said document cannot be drawn up, with official documents being presented for establishment of the said reasons;3. evidence of the fact subject to establishment.Examination of PetitionArticle 544. (1) The petition shall be examined in public session, with the petitioner and the persons interested in the establishment of the fact being summoned. Apart from the said persons, the prosecutor shall be summoned as well.(2) The following parties shall be interested:1. the persons whereof the relations depend on the fact subject to establishment;2. the organizations and institutions which were supposed to draw up the document or which are not in a position to recover the said document;3. the organizations and institutions in dealing wherewith the petitioner wishes to invoke the establishment decreed by the court.(3) If any interested person is deceased, the heirs thereof shall be summoned. The interested parties referred to in Item 3 of Paragraph (2) may alternatively be represented by the local subdivisions thereof.Establishment of Educational AttainmentArticle 545. (1) Where the petitioner wishes to establish that the said petitioner has received education at a particular educational establishment, to establish this fact the court may use, in addition to the other evidence, a conclusion of expert witnesses regarding the qualifications of the petitioner.(2) In the case referred to in Paragraph (1), the superior institution of the educational establishment referred to in Paragraph (1) shall be summoned as an interested institution referred to in Item 2 of Article 544 (2) herein.Judgment: Content and EffectArticle 546. (1) The judgment of the court shall specify the fact established by the court and the evidence on the basis of which the said fact was established.(2) The judgment whereby the court pronounces on the petition shall be appealable according to the standard procedure.(3) The judgment shall have no evidential value in respect of those interested persons, organizations or institutions covered under Article 544 herein, who or which have not been summoned to participate in the proceeding, if the said parties contest the fact.Applicability of Proceeding for Removal of ErrorsArticle 547. Any errors in the documents referred to in Article 542 herein may be rectified according to the procedure established by this Chapter and with the same consequences, where a law does not provide for another procedure for rectification of the said errors.Establishment of Facts which have Occurred AbroadArticle 548. Where any facts referred to in Article 542 herein have occurred abroad, the establishment of the said facts may be sought according to the procedure established by this Chapter solely if it is proved that the petitioner is unable to obtain the document which the said petitioner needs or an attestation in lieu of the said document from the authorities of the State within whose territory the fact has occurred. This impediment shall be proved either by means of documents issued by the competent authorities of the foreign State, or by means of a certificate issued by the Ministry of Foreign Affairs, to the effect that the authorities of the foreign State have refused to examine the petition of the interested person or that it is impossible to make such a request.Chapter Fifty-OneDECLARATION OF ABSENCE OR DEATHCognizance and Content of PetitionArticle 549. (1) A petition for declaration of the absence or death of a particular person shall be cognizable in the regional court exercising jurisdiction over the last permanent address of the absent person, and where there is no such address, in the regional court exercising jurisdiction over the place where the person lived immediately before absenting himself or herself.(2) The petition shall furthermore indicate the presumable heirs of the absent person and the attorney-in-fact or legal representative thereof, if any.Examination of PetitionArticle 550. (1) The court, sitting in camera, shall decree the collection of information on the absent persons from the next of kin thereof, from the municipality, borough or mayoralty, from the National Police Service and from any other appropriate source.(2) The court shall dispatch an abstract of the petition for publication to the municipality, borough or mayoralty wherein the person lived immediately before absenting himself or herself. The said abstract shall be served upon the persons referred to in Article 549 (2) herein.(3) The court shall pronounce on the petition for declaration of the absence or death after hearing the prosecutor and the persons specified in Article 549 (2) herein, as well as the other interested parties.Drawing up Certificate of DeathArticle 551. On the basis of the judgment whereby the death of a particular person has been declared, a certificate of death shall be drawn up, citing the last permanent address of the person or the place where the said person lived immediately before absenting himself or herself.Reversal of JudgmentArticle 552. (1) On a petition by any interested party or on a motion by the prosecutor, the judgment declaring the absence or death of a particular person may be reversed or modified if it is established that the absent person is alive or that the exact date of the death thereof is other than the date declared by the court.(2) The action under Paragraph (1) shall be brought against the party which has moved for the declaration of the absence or death, and against the persons who invoke the relevant act as a fountain of rights. - For more information visit www.solicitorbulgaria.com id: 320 Fri, 01 Aug 2008 07:04:10 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-code-of-civil-procedure-part-3 http://web.solicitorbulgaria.com/index.php/bulgarian-code-of-civil-procedure-part-3 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/CODE_OF_CIVIL_PROCEDURE2.JPG EUR http://web.solicitorbulgaria.com/index.php/bulgarian-code-of-civil-procedure-part-3 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Chapter Fifty-TwoPROCEEDING IN RESPECT OF OPENED SUCCESSIONTerritorial CompetenceArticle 553. (1) The property left after the death of a person shall be sealed in the cases established by the law by the regional court exercising jurisdiction over the place of the opening of the succession or of the location of the property.(2) The regional court may assign the municipality or the mayoralty to perform the sealing through its own authority.(3) On a motion by the petitioner, the sealing may alternatively be assigned to the enforcement agent.Authorized PersonsArticle 554. The following may move for sealing:1. any person who claims a right to succession;2. the creditor who holds a writ of execution against the deceased;3. the prosecutor and the mayor of the municipality, borough or mayoralty, where any heirs are absent.SealingArticle 555. A memorandum shall be drawn up on the sealing, stating therein the date, the authority which commanded the performance of the sealing, a listing of the sealed… For more information visit http://www.solicitorbulgaria.com id: 319 Chapter Fifty-TwoPROCEEDING IN RESPECT OF OPENED SUCCESSIONTerritorial CompetenceArticle 553. (1) The property left after the death of a person shall be sealed in the cases established by the law by the regional court exercising jurisdiction over the place of the opening of the succession or of the location of the property.(2) The regional court may assign the municipality or the mayoralty to perform the sealing through its own authority.(3) On a motion by the petitioner, the sealing may alternatively be assigned to the enforcement agent.Authorized PersonsArticle 554. The following may move for sealing:1. any person who claims a right to succession;2. the creditor who holds a writ of execution against the deceased;3. the prosecutor and the mayor of the municipality, borough or mayoralty, where any heirs are absent.SealingArticle 555. A memorandum shall be drawn up on the sealing, stating therein the date, the authority which commanded the performance of the sealing, a listing of the sealed premises, safes, trunks and other such, and a brief description of the objects which are not sealed. The said memorandum shall be signed by the official and by the parties present.UnsealingArticle 556. (1) Any party entitled to move for sealing may move for unsealing and for taking an inventory of the property.(2) The unsealing shall be performed and the inventory shall be taken by the regional court, which may assign this according to the procedure established by Article 553 (2) and (3) herein.Taking of InventoryArticle 557. (1) A memorandum shall be drawn up on the inventory, describing therein separately all things in the order of unsealing. An expert may be appointed for appraisal of the things.(2) The heirs of the deceased and the creditors may be present at the taking of the inventory.(3) The inventory may be taken even if no sealing has been performed.Delivery of Corporeal ThingsArticle 558. The corporeal things inventoried shall be delivered to the heirs or to any of the said heirs against signed acknowledgment, and where there are no heirs or where the said heirs do not wish to accept the said things, the said things shall be delivered to a third party for safekeeping.Notification of InventoryArticle 559. Where the sealing and unsealing are performed and the inventory is taken by the municipality, borough or mayoralty, the memorandum shall be transmitted to the regional judge.Chapter Fifty-ThreeCANCELLATION OF SECURITIESSubject Matter and PrerequisitesArticle 560. Any person, who holds a right to a negotiable security payable to order: a promissory note, a bill of exchange and other such, or to a negotiable instrument payable to bearer, may move for the cancellation of the said security if the said person is dispossessed of the said security against the will thereof or if the said security has been destroyed.Petition: ContentArticle 561. In the petition thereof, the petitioner must:1. reproduce the security or indicate everything which is necessary for the establishment of the identity of the said security;2. set forth the circumstances where under the security was lost or destroyed, as well as the circumstances wherefrom the right of the petitioner to the said security arises;3. confirm the authenticity of the allegations thereof by an express declaration contained in the petition.Order Barring PaymentArticle 562. (1) If the petition conforms to the requirements covered under Article 561 herein, the court, sitting in camera, shall issue an order which shall contain:1. an indication of the petitioner;2. an invitation to the holder of the security to declare the rights thereof not later than the day specified in the order for a hearing of the court for pronouncement on the cancellation, with a warning that if the said holder fails to do so, the security will be cancelled;3. a command to the payer not to effect any payments to the bearer of the security.(2) The order shall be posted in the place designated for this purpose at the court and shall be promulgated in the Unofficial Section of the State Gazette.(3) A transcript of the order shall be dispatched to the payer.Scheduling of Hearing for CancellationArticle 563. A hearing for cancellation of a security shall be scheduled to a date not earlier than:1. forty-five days after the promulgation of the order referred to in Article 562 (2) herein or after the maturity of the security, if the said promulgation was effected prior to the maturity: applicable to any negotiable security payable to order;2. one year after the maturity of the first coupon after the promulgation of the order: applicable to any negotiable security payable to bearer issued with interest coupons attached thereto;3. one year after the maturity of the security: applicable to any negotiable securities payable to bearer issued with no interest coupons attached thereto.Contestation of PetitionArticle 564. (1) The person who contests the petition for cancellation shall be obligated to state this at the latest during the court hearing and to deposit the security with the court or with a bank until resolution of the dispute.(2) In the case referred to in Paragraph (1), the court shall stay the cancellation proceeding and shall allow the petitioner one month to present evidence that the said petitioner has brought an action for declaratory judgment on the right thereof to the security. The court shall terminate the cancellation proceeding unless evidence of the bringing of an action is presented.Judgment on CancellationArticle 565. (1) The judgment on cancellation shall be rendered in public session with the petitioner being summoned.(2) The judgment whereby the petition for cancellation is denied shall be appealable according to the standard procedure.Exercise of Rights Conferred by SecurityArticle 566. After the cancellation of the security, the petitioner shall exercise the rights conferred thereby on the basis of the judgment on cancellation. On the basis of the said judgment, the said petitioner may demand the issuing of a duplicate copy of the security.Security Holder's RightsArticle 567. The person who possesses the cancelled security, regardless of the fact that the said person has not claimed the rights thereto in due time, may seek to recover the amount under the security from the person on the petition whereof the cancellation has been decreed if the said person was not entitled to move for cancellation.Vacation of Order Barring PaymentArticle 568. If the proceeding on cancellation ends without a judgment on cancellation, the order barring payment shall be vacated ex officio by the court and this shall be communicated to the payer.Chapter Fifty-FourNOTARIAL PROCEEDINGSSection IGeneral RulesNotarial CertificationsArticle 569. Notarial proceedings shall be proceedings whereof the procedure applies to the effecting of:1. legal transactions by notarial acts;2. certification of a right of ownership to a corporeal immovable, certification of the date, content or signatures of private documents, as well as the authenticity of transcripts and abstracts of documents and papers;3. notarial invitations, protests, certification of appearance or of non-appearance of persons before the notary for performance of steps therebefore;4. acceptance and return of documents and papers delivered for safekeeping;5. entries, notations and the deletion thereof in the cases provided for in a law;6. searches of the notarial books, including searches of the books referred to in Article 577 (2) herein;7. issuing of certificates of existence or non-existence of charges;8. performance of other notarial steps provided for in a law.Territorial CompetenceArticle 570. (1) Any notarial acts on transfer of ownership or on creation of a right in rem to a corporeal immovable and on certification of a right of ownership to an immovable shall be issued by the notary within whose area of practice the immovable is located. Any entries, notations and deletions of an immovable shall be effected by the Recording Office exercising competence over the location of the immovable. Any acts subject to entry, notation and deletion shall be presented in two or more identical copies.(2) The other notarial steps, as well as the testaments, may be performed by any notary regardless of the link between the area of practice thereof and the notarial certification.Commencement of Notarial ProceedingArticle 571. Notarial proceedings shall commence on an oral petition. The said petition shall be submitted in writing solely where an issuing of a notarial act on transfer or creation of a right in rem to an immovable, certification of a right of ownership to an immovable, and entry, notation and deletion of an entry is sought.Parties to and Participants in Notarial ProceedingArticle 572. Parties to a notarial proceeding shall be the persons on whose behalf the performance of the notarial step is sought. Participating in a notarial proceeding shall be the persons whose personal declaration of will the notary certifies.Place and Time of Notarial CertificationsArticle 573. (1) The notary cannot perform notarial steps outside the area of practice thereof.(2) Any notarial steps subject to entry shall be performed solely in the notary's chambers within normal business hours.(3) Any other notarial steps may also be performed out of the notary's chambers and outside normal business hours, where valid reasons prevent the persons participating in the certification from appearing in the notary's chambers or necessitate the immediate performance of a notarial step.Legal Conformity of Notarial CertificationsArticle 574. Notarial steps may not be performed in respect of any transactions, documents or other acts which conflict with the law or with good morals.Notary's RecusalArticle 575. (1) The notary may not perform notarial steps where the notary himself or herself, the spouse thereof or the person who is a de facto cohabitee therewith, any ascendants or descendants thereof, any collateral relatives thereof up to the fourth degree of consanguinity, any affines thereof up to the first degree of affinity, as well as any person in respect of whom the notary is a tutor, curator, adoptee or adopter or a member of a foster family, is a party to the notarial proceeding or a person participating in the said proceeding.(2) The prohibition under Paragraph (1) shall furthermore apply in the cases where the transaction or the document contains a disposition in favour of any of the persons covered under Paragraph (1).Null Notarial CertificationsArticle 576. A notarial step shall be null where the notary did not have the right to perform the said step (Article 569, Article 570 (1), Article 573 (1), Articles 574 and 575 herein), as well as where Article 578 (4) (in respect of the personal appearance of the participating persons), Article 579, Items 1, 3, 4 and 6 of Article 580, Articles 582, 583 and Article 589 (2) herein were violated upon the performance of the said step.Appellate Review of RefusalArticle 577. (1) Any refusal to effect a notarial certification shall be appealable by an interlocutory appeal before the district court.(2) Separate books shall be kept of the refusals to effect an entry, notation or deletion.(3) Where the court reverses the refusal, the entry, notation or deletion shall be considered effected as from the time of submission of the petition for the said entry, notation or deletion.Section IISpecial RulesNotarial Act: FormArticle 578. (1) For the issuing of a notarial act, a draft of the act shall be prepared in two or more identical copies. The shape, kind and size of the paper whereon the said draft shall be handwritten or typed shall conform to a standard form endorsed by the Minister of Justice.(2) All copies of the draft shall be prepared in a clean and legible form, handwritten in black or blue ink or typed.(3) The figures in the draft shall be written in words, where the said figures concern the content of the transaction. The blank spaces shall be crossed out.(4) The persons or the attorneys-in-fact thereof, whose declarations of will are contained in the draft, must appear in person before the notary who, before issuing the act, shall verify the identity, the full capacity to act and the representative authority of the persons who have appeared there before.(5) The identity of the persons who are unknown to the notary shall be established by means of an identity document. In the same manner, the notary shall establish whether the persons who have appeared there before have attained the age of 18 years. If an identity document is not available, the person shall establish the identity thereof by means of two witnesses of established identity.Notarial Act: IssuingArticle 579. (1) The notary shall read the content of the act to the participating persons. If the said persons approve the content of the said act, they shall write out the name thereof and shall affix the signature thereof before the notary, or if the act is already signed, they shall write out the full name thereof and shall confirm the signatures thereof.(2) Where any of the participating persons is unable to sign by reason of illiteracy or disability, Article 189 herein shall apply, and the act shall not be countersigned by witnesses.(3) Where any corrections, insertions or deletions in the act have to be made, an express note of this shall be made and the said note shall be signed in the same manner as the act itself.Act: ContentArticle 580. The notarial act shall contain:1. the year, the month and the day and, where necessary, also the hour and place of issuing;2. the name of the issuing notary;3. the full name and the Standard Public Registry Personal Number of the persons who participate in the proceeding;4. the content of the act;5. brief reference to the documents attesting compliance with the requirements referred to in Article 586 (1) herein;6. signature and full name of the parties or representatives thereof written out, and signature of the notary.Notarial Act: FilingArticle 581. After the issuing of the act and the recording thereof, one copy of the said act shall be filed in a special book, and the other copies, where on a fee shall be charges as for transcripts, shall be delivered to the participating persons.Oral InterpreterArticle 582. Where any of the participating persons has no command of the Bulgarian language, the notary shall appoint an oral interpreter.Participation of Deaf, Mute or Illiterate PersonArticle 583. (1) Where any participating person is literate but mute, deaf or deaf-mute, the deaf person must read the document aloud and declare whether the said person agrees with the content of the said document, whereas the mute or deaf-mute person must, after the reading of the document, write in his or her own hand therein that the said person agrees with the content of the said document.(2) Where any of the persons referred to in Paragraph (1) are illiterate, the notary shall appoint a sign-language interpreter, with the assistance of whom the content of the document shall be communicated to the deaf or deaf-mute person and the approval by the deaf or deaf-mute person of what is read shall be conveyed. The notary must satisfy himself or herself that the sign-language interpreter and the said persons understand each other.(3) In the cases referred to in Paragraph (2), the notary shall make the relevant note in the act.Incompatibility of Witnesses, Oral Interpreters and Sign-LanguageInterpretersArticle 584. The following may not act as witnesses, oral interpreters and sign-language interpreters:1. any persons who lack full capacity to act;2. any persons who cannot read and write in the Bulgarian language;3. any persons who are related to the persons referred to in Article 572 herein or to the notary in any of the manners specified in Article 575 herein; the sign-language interpreter may be a relative to a person participating in the proceeding;4. any person in whose favour is any disposition contained in the act;5. any blind, deaf and mute persons;6. any persons employed in the notary's office and the employees of the Recording Office.Participation of Witnesses, Oral Interpreters and Sign-LanguageInterpretersArticle 585. (1) The witnesses, oral interpreters and sign-language interpreters shall promise that what they will affirm before the notary will be true, according to Article 170 herein.(2) The persons referred to in Paragraph (1) shall sign the act.Verification of OwnershipArticle 586. (1) Upon the issuing of a notarial act whereby a right of ownership is transferred or another right in rem to a corporeal immovable is created, transferred, modified or terminated, the notary shall verify whether the grantor owns the said immovable and whether the special requirements for effecting of the transaction are fulfilled.(2) The right of ownership shall be certified by the relevant document. Where such documents are not available to the grantor, the right of ownership shall be verified according to the procedure established by Article 587 (2) herein.(3) In the act, the notary shall furthermore certify the performance of the verification referred to in Paragraph (1) and, to this end, shall specify the documents attesting the right of ownership and the other requirements.(4) Where the document of ownership of the owner is not recorded, the notarial act shall not be issued until the recording of the said documentary proof.Notarial Act of AscertainmentArticle 587. (1) Where the owner of an immovable does not have a document on the right thereof, the said owner may obtain such a document after establishing the right thereof before a notary by means of due written evidence.(2) If the owner does have such evidence at the disposal thereof or if the said evidence is insufficient, the notary shall perform a circumstantial verification as to acquisition of the ownership by acquisitive prescription by means of an examination of three witnesses, named by the mayor of the municipality, borough or mayoralty wherein the immovable is located or by an official designated thereby. The witnesses shall be named at a direction of the owner and must be, as far as practicable, neighbours to the immovable.(3) On the basis of the evidence referred to in Paragraphs (1) and (2), the notary shall render a reasoned decree. If the right of ownership is acknowledged by the said decree, the notary shall issue the petitioner a notarial act of ownership of the corporeal immovable.Notarial Act of Ascertainment: ContentArticle 588. (1) A notarial act of ascertainment shall contain:1. the essential elements referred to in Items 1, 2 and 5 of Article 580 herein and signature of the notary;2. the full name or the designation and the Standard Public Registry Personal Number of the owner;3. exact description of the corporeal immovable, indicating the boundaries and the location thereof.(2) Upon issuing of a notarial act of ascertainment, Article 578 (4) and (5), Articles 579, 581, 582 and 583 herein shall not apply.Presentation of Private Document for CertificationArticle 589. (1) Each person may present to the notary a private document for certification of the date of presentation of the said document before the notary or the content of the said document.(2) Upon certification of a signature affixed to a private document, the persons whereof the signatures are subject to certification must appear in person before the notary and sign the document before the said notary or confirm the previously affixed signatures. Where the document is to be used for the creation, modification or termination of rights to an immovable, the persons must write out the full name thereof and affix the signature thereof before the notary, or if the signature is already affixed, write out the full name thereof and confirm the signature. Article 578 (4) and (5), Article 579 (2) and Articles 581 to 583 herein shall apply upon certification of a signature affixed to a private document.(3) If the private document is in any language other than Bulgarian and is non-recordable, Article 582 herein shall apply, mutatis mutandis.Certification of Private Document Date, Content and SignaturesArticle 590. (1) The certification of the date, content and signatures of a private document shall be effected by means of an inscription on the document. Article 580 herein shall apply in this case, save insofar as there are any special rules.(2) In respect of the certification of the date or signatures as effected, a note shall be made in a special register of such certifications. Upon certification of the content of a document, the petitioner must present a transcript of the said document. After the certification the transcript, duly authenticated, shall be filed in a special book.(3) After the certification, the private documents shall be returned to the persons who have presented the said documents.Certification of Document TranscriptArticle 591. (1) Upon certification of the authenticity of a transcript of any documents presented to the notary, the notary shall be obligated to compare the transcript with the original and to specify in the certification who presented the document, who made the transcript, as well as whether the transcript was made from the original document or from another transcript and whether they contained any crossings, insertions, corrections and other peculiarities.(2) In the case referred to in Paragraph (1), Article 589 (1) and Article 590 herein shall apply, mutatis mutandis.Notarial InvitationArticle 592. (1) For the purpose of service of a notarial invitation, the petitioner must present the invitation in three identical copies. The notary shall note on each of the said copies that the invitation has been communicated to the person whom it concerns, whereupon one of the copies of the invitation shall be delivered to the person wherefrom the invitation originates, and the other copy shall be filed in a special book at the notary.(2) Any other communications, warnings and answers in connection with civil-law relationships shall be effected through the notary according to the procedure established by Paragraph (1).Memorandum of AscertainmentArticle 593. Upon certification of the appearance or non-appearance of persons before the notary for performance of any steps there before, a memorandum of ascertainment shall be drawn up. The consent or dissent of the appearing persons to the performance of the relevant steps shall be certified in the same manner. Article 580 herein shall apply to the drawing up of any such memorandum of ascertainment, save insofar as there are special rules. Any such memorandum of ascertainment shall be drawn up in two identical copies, which shall be signed by the petitioner and by the notary. One of the copies shall be filed in a special book, and the other copy shall be delivered to the petitioner, authenticated as a transcript.Safekeeping of Documents and PapersArticle 594. (1) Upon acceptance by the notary of documents and papers for safekeeping, a memorandum of acceptance shall be drawn up in two identical copies, which shall be signed by the petitioner and by the notary. One copy shall be filed in a special register, and the other copy shall be delivered to the petitioner, authenticated as a transcript.(2) A memorandum of delivery shall be drawn up upon the return of any documents and papers delivered for safekeeping, and the said memorandum shall be signed by the petitioner or by the applicant's heirs or an ad hoc attorney-in-fact, as the case may be. The said memorandum shall be filed in the register.Chapter Fifty-FiveRECORDING OF LEGAL PERSONSScope of ApplicationArticle 595. (1) The formation, transformation, placing in liquidation and dissolution of legal persons and the other recordable circumstances shall be recorded according to the procedure established by this Chapter, where a law provides for recording in a court register.(2) The registers shall be kept by the district courts.Recordable CircumstancesArticle 596. (1) The following shall be recorded in the registers:1. the type, designation, registered office and address of the legal person;2. the objects;3. the bodies and the persons who represent the legal persons, the manner of representation, as well as the liquidators;4. other circumstances provided for in a law.(2) Any changes in the circumstances indicated in Paragraph (1) shall be recorded as well.(3) The recording shall be promulgated in the State Gazette where a law so provides.RecordingArticle 597. Recording shall be effected on the basis of a judgment of the court within whose geographical jurisdiction the registered office of the legal person is located. The said judgment shall contain the recordable circumstances. The recording shall have effect solely in respect of the recordable circumstances.Public Access to RegistersArticle 598. The registers and the case records shall be accessible to the general public, and any person may request searches for a circumstance recorded in the registers or issuing of a document on any such circumstance.Effect of RecordingArticle 599. (1) Any recorded circumstance shall be presumed known to bona fide third parties as from the day of the recording, and any circumstance which is subject to promulgation shall be presumed known to bona fide third parties as from the date of promulgation.(2) Any bona fide third party may invoke the recording, even if the recorded circumstance does not exist.(3) Any unrecorded circumstances shall be considered non-existent in respect of bona fide third parties.(4) In the event of a discrepancy between a recorded and a promulgated circumstance, the third parties may invoke the promulgated circumstance unless it is established that the recorded circumstance was known to the said parties.LegitimationArticle 600. A recording proceeding shall commence on a written motion by:1. an empowered person;2. a body empowered to form, transform or dissolve the legal person;3. a liquidator.Motion: ContentArticle 601. (1) The motion shall contain:1. the name and address of the movant;2. the type, designation and registered office of the legal person;3. the circumstance whereof the recording is sought.(2) The requisite documents on the recordable circumstances, as well as specimen signatures of the persons who represent the legal person, shall be attached to the motion.(3) Where dissolution of a legal person which has no successor is recorded, the certificate on delivery of the payrolls, issued by the local division of the National Social Security Institute, shall be attached to the motion.Recording ProceedingArticle 602. (1) The motion for recording shall be examined in camera, unless the court deems it necessary to examine the said motion in public session or this is provided for in a law.(2) The court shall verify the existence of the recordable circumstance and the admissibility of the recording of the said circumstance and shall render a judgment, which shall be served upon the petitioner.Immediate EnforcementArticle 603. The judgment of recording shall be subject to immediate enforcement.Expungement of Recorded CircumstanceArticle 604. Where it is established according to an action procedure that the recording is inadmissible or null, as well as that a recorded circumstance is non-existent, the court shall expunge the recording or the relevant circumstance ex officio, acting on a motion by the prosecutor or by the interested party.Corrections in RegistersArticle 605. Corrections in the registers shall be effected on a motion by the bodies and persons covered under Article 600 herein or ex officio by the court according to the procedure established by Article 602 herein.Appellate Review of RefusalArticle 606. Any judgment whereby a recording is refused shall be appealable by an interlocutory appeal before the appellate court.Ordinance on Keeping and Safe Custody of RegistersArticle 607. The Minister of Justice shall issue an ordinance on the keeping and safe custody of the registers of recordings.PART SEVENSPECIAL RULES REGARDING PROCEEDINGS ON CIVIL CASES SUBJECT TO OPERATIONOF COMMUNITY LAW(Effective 24.07.2007 - SG No. 59/2007)Chapter Fifty-SixCOOPERATION WITHIN THE EUROPEAN UNION IN PROCEEDINGS IN CIVIL MATTERSSection IService under Council Regulation (EC) No. 1348/2000 on the Service inthe Member Countries of Judicial and Extrajudicial Documents in Civil orCommercial MattersService through Diplomatic Missions and Consular PostsArticle 608. Service under Article 13.1 of Council Regulation (EC) No. 1348/2000, which must be effected in the Republic of Bulgaria, shall be admissible where the addressee is a national of the Member State which effects the service.Service by Post in Another Member StateArticle 609. (1) Service under Article 14.1 of Council Regulation (EC) No. 1348/2000 in another Member State shall be effected on a motion by the party by means of a registered letter with an addressee's acknowledgment of receipt. The service, the refusal to accept or the circumstance that the addressee was not found at the address shall be certified by an addressee's acknowledgment of receipt.(2) Any addressee, who cannot be found at the addressed named twice within one month, shall be presumed duly summoned if the person who moved for the service certifies by a search of records the residence registration, the registered office or the address of the place of management of the addressee.(3) A party may move that service be effected through a postal-operator courier. In such case, the costs shall remain for the account of the party.Service by Post in the Republic of BulgariaArticle 610. (1) Service under Article 14.1 of Council Regulation (EC) No. 1348/2000 in the Republic of Bulgaria shall be effected by means of a registered letter with an addressee's acknowledgment of receipt.(2) The document subject to service in the Republic of Bulgaria must be drawn up or accompanied by a translation into the Bulgarian language or any of the official languages of the originating Member State, if the addressee is a national of the said State.Competent Authorities under Articles 2.1 and 2.2 of Council Regulation(EC) No. 1348/2000Article 611. (1) Upon service abroad of judicial communications and summonses, a transmitting agency shall be the court where before the case is pending.(2) Upon service abroad of extrajudicial documents, a transmitting agency shall be the regional court exercising jurisdiction over the current or permanent address of the person who moved for the service or over the registered office of the said person, and in respect of notarized documents, a transmitting agency shall alternatively be the regional court within whose geographical jurisdiction the notary practises.(3) Upon service in the Republic of Bulgaria, a receiving agency shall be the regional court within whose geographical jurisdiction the service must be effected.(4) The receiving agency referred to in Article 7 of Council Regulation (EC) No. 1348/2000 shall effect the service through a court official or by post. Where there is no court institution in the nucleated settlement where the service must be effected, service may be effected care of the municipality or mayoralty.Refusal to Accept by Reason of Document LanguageArticle 612. (1) Upon service abroad, the time limit where within the addressee may declare a refusal to receive the document under Article 8.1 of Council Regulation (EC) No. 1348/2000 shall be two weeks and shall begin to run as from the service of the document. The addressee must be informed of the said time limit by the transmitting agency.(2) Upon service in the Republic of Bulgaria, the receiving agency shall inform the addressee that the said addressee has the right to refuse to accept the document to be served under Article 8.1 of Council Regulation (EC) No. 1348/2000.(3) The addressee shall declare the refusal thereof under Article 8.1 of Council Regulation (EC) No. 1348/2000 to the foreign transmitting agency, where the communication has been served by post, or to the receiving agency wherethorugh the said communication has been served.Service of Document from Abroad by Another Party to DisputeArticle 613. Service under Article 15.1 of Council Regulation (EC) No. 1348/2000 shall be inadmissible in the Republic of Bulgaria.Section IITaking of Evidence under Council Regulation (EC) No. 1206/2001 onCooperation between the Courts of the Member States in the Takingof Evidence in Civil or Commercial MattersTaking of Evidence in Member States of European UnionArticle 614. Where taking of evidence must be performed under Council Regulation (EC) No. 1206/2001, the court may transmit a request to take evidence to the competent authority of the other Member State or, under the terms established by Article 17 of the Regulation, the court may request to take evidence directly.Right to ParticipateArticle 615. Within the scope of Council Regulation (EC) No. 1206/2001, the Bulgarian court or an authorized member thereof may be present and participate in the taking of evidence by the court of the other Member State.Direct Taking of EvidenceArticle 616. (1) Direct taking of evidence in another Member State shall be performed by members of the court or by a person authorized by the court.(2) The parties, representatives thereof and expert witnesses may participate in this proceeding, insofar as this is permitted by Bulgarian legislation.Competent Authorities under Article 2.1 of Council Regulation (EC) No.1206/2001Article 617. (1) The requests for taking of evidence in the Republic of Bulgaria shall be submitted to the regional court within whose geographical jurisdiction the taking is to be performed.(2) The district court within whose geographical jurisdiction the direct taking of evidence is to be performed shall be competent to authorize direct taking of evidence in the Republic of Bulgaria.Language of Requests and CommunicationsArticle 618. The requests from another Member State for the taking of evidence and the communications under Council Regulation (EC) No. 1206/2001 must be drawn up in the Bulgarian language or must be accompanied by a translation into the Bulgarian language.Chapter Fifty-SevenRECOGNITION OF AND ADMISSION TO ENFORCEMENT OF JUDGMENTS AND JUDICIALACTS SUBJECT TO OPERATION OF COMMUNITY LAWSection ICertificatesCertificate of European Enforcement Order for Uncontested ClaimsArticle 619. (1) The certificate under Regulation (EC) No. 805/2004 of the European Parliament and of the Council creating a European Enforcement Order for uncontested claims shall be issued upon a written application by the party to the first-instance court which has examined the case.(2) The order whereby the application for the issuing of a certificate is granted shall be unappealable and shall not be communicated to the person against whom enforcement is sought.(3) The order whereby the application for the issuing of a certificate is rejected in whole or in part shall be appealable by an interlocutory appeal, a transcript whereof shall not be presented for service.(4) On a motion by the person against whom enforcement is sought, the court may rectify or withdraw the certificate in pursuance of Article 10 of Regulation (EC) No. 805/2004 of the European Parliament and of the Council.Issuing of Certificate on Recognition of or Admission to Enforcement ofBulgarian JudgmentArticle 620. (1) The first-instance court which has examined the case shall, upon a written application by the party, issue a certificate of recognition of or admission to enforcement of a Bulgarian judgment of court in another Member State, where an act of the European Union so requires.(2) A certificate referred to in Paragraph (1) shall also be issued by the first-instance court on a written application by the party where recognition of or admission to enforcement is to be sought in a State which is not a Member State of the European Union.Section IIProceeding for Recognition of and Admission to Enforcement of Judgmentsand ActsDirect RecognitionArticle 621. (1) A judgment of court or another act shall be respected by the authority where before the said act is presented on the basis of a transcript authenticated by the rendering court, and a certificate of enforceability of the said act, where an act of the European Union so requires.(2) The judgment within the scope of Article 21.2 of Council Regulation (EC) No. 2201/2003 concerning jurisdiction and the recognition and enforcement of judgments in matrimonial matters and the matters of parental responsibility, repealing Regulation (EC) No. 1347/2000, shall be recognized by the competent registration authorities.Recognition according to Judicial ProcedureArticle 622. (1) The interested party may approach the district court exercising jurisdiction over the permanent address of the opposing party or over the registered office thereof or, where the said party does not have a permanent address or registered office within the territory of the Republic of Bulgaria, over the permanent address or registered office of the interested party, with an application for recognition of the judgment according to the procedure established by Article 623 herein. Where the interested party, either, does not have a permanent address or registered office within the territory of the Republic of Bulgaria, the Sofia City Court shall be approached with the application.(2) The judgment shall be respected and recognized on the basis of a transcript authenticated by the rendering court, and a certificate of enforceability of the said judgment.(3) The order of recognition shall have the relevance of a judgment rendered in an action procedure.(4) Where the outcome of the case depends in whole or in part on the recognition of a foreign judgment rendered in a Member State of the European Union, the court where before the case is pending shall be competent regarding the recognition.Admission to EnforcementArticle 623. (1) An application for admission to enforcement of a judgment of court or another act rendered in another Member State of the European Union shall be submitted to the district court exercising jurisdiction over the permanent address of the person against whom enforcement is sought, over the registered office thereof, or over the place of enforcement. A transcript of the application shall not be presented for service on the person against whom enforcement is sought.(2) The court shall examine the application in camera. The court shall verify the conditions for admission to enforcement solely on the basis of the copy of the judgment of court, the certificate and the translation thereof into the Bulgarian language.(3) In the order whereby the application is granted, the court shall set a time limit for appeal of the said order by the person against whom enforcement is sought. Anticipatory enforcement of the order whereby the application is granted shall not be granted.(4) In the order whereby the application is granted, the court shall also pronounce on the interim and precautionary measures sought.(5) The judgment shall be appealable before the Supreme Court of Cassation according to the procedure applicable to intermediate appellate review.Enforcement Pursuant to European Enforcement OrderArticle 624. An application for the issuing of a writ of execution pursuant to a European Enforcement Order for an uncontested claim shall be submitted to the district court exercising jurisdiction over the permanent address of the person against whom enforcement is sought, over the registered office thereof, or over the place of enforcement.Chapter Fifty-EightENFORCEMENT PURSUANT TO REGULATION (EC) No. 1896/2006 OF THE EUROPEANPARLIAMENT AND OF THE COUNCIL CREATING A EUROPEAN ORDER FOR PAYMENTPROCEDUREAuthority Competent to Issue European OrderArticle 625. (1) An application for issuing of a European order for payment shall be submitted to the district court exercising jurisdiction over the permanent address of the debtor, over the registered office thereof, or over the place of enforcement.(2) Where the possibility of examination of the case according to an action procedure is not ruled out, the respondent may make a recusal for territorial cognizance at the latest by the statement of opposition lodged thereby.Transmittal of CaseArticle 626. Where the statement of opposition has been lodged in due time, the court shall instruct the applicant who has not ruled out the possibility of examination of the case according to an action procedure to deposit the remainder of the stamp duty due in an account of the generically and territorially competent court. The court shall transmit ex officio the case records to the generically and territorially competent court.Enforcement Pursuant to European OrderArticle 627. (1) The application for the issuing of a writ of execution pursuant to a European Order for Payment, issued by another Member State, shall be submitted to the district court exercising jurisdiction over the permanent address of the debtor, over the registered office thereof, or over the place of enforcement.(2) The judgment shall be appealable according to the procedure established by Article 623 (5) herein.Chapter Fifty-NineREFERRAL OF QUESTIONS FOR PRELIMINARY RULINGSNational Court CompetenceArticle 628. Where the interpretation of a provision of Community law or the interpretation and validity of an act of the institutions of the European Union is relevant to the correct adjudication of the case, the Bulgarian court shall request the Court of Justice of the European Communities to give a ruling thereon.Referral of QuestionArticle 629. (1) The question shall be referred by the court where before the case is pending, either ex officio or on a motion by the party.(2) The court whereof the judgment is appealable, may not grant the motion of the party for referral of a question for a preliminary ruling on interpretation of a provision or act. Any ruling denying such a motion shall be unappealable.(3) The court whereof the judgment is unappealable shall always refer a question for a preliminary ruling, except where the answer to the question arises clearly and unambiguously from a previous judgment of the Court of Justice of the European Communities or the meaning and import of the provision are so clear that they give no rise to any doubt whatsoever.(4) The court shall always refer a question where the validity of an act referred to in Article 628 herein is at issue.(5) Where the interpretation of Title IV "Visas, asylum, immigration and other policies related to free movement of persons" of the Treaty Establishing the European Community or the interpretation and validity of any acts adopted by virtue of the said Title of the Treaty is relevant to the correct adjudication of the case, solely the court whereof the judgment is unappealable may refer a question under Article 628 herein.Content of RequestArticle 630. (1) The request to the Court of Justice of the European Communities shall contain a description of the facts of the case, the applicable national law, an exact reference to the provision or act whereof the interpretation or validity is subject to the request, the reasons for which the court believes that the preliminary ruling requested is relevant to the correct adjudication of the case, as well a formulation of the specific question referred for a preliminary ruling.(2) At its discretion, the court may also transmit a transcript of the case.Stay and Resumption of Proceeding before National CourtArticle 631. (1) Upon referral of the question, the court shall stay the proceeding in the matter of the case. Any such ruling shall be unappealable.(2) The proceeding in the matter of the case shall be resumed after the pronouncement by the Court of Justice of the European Communities.Precautionary and Interim MeasuresArticle 632. The court, acting on a motion by the parties, may decree appropriate precautionary and interim measures while the proceeding in the matter of the case is stayed.Effect of Judgment on Request for Preliminary RulingArticle 633. The judgment given by the Court of Justice of the European Communities shall be binding upon all courts and institutions in the Republic of Bulgaria.TRANSITIONAL AND FINAL PROVISIONS 1. (1) Any first-instance cases, instituted on statements of action received at the regional and district court prior to the entry into force of this Code, shall be completed at the same courts, regardless of the change of cognizance.(2) Any cases on petitions to secure a future action, instituted prior to the entry into force of this Code, shall be examined at the same courts, regardless of the change of cognizance. 2. (1) Any first-instance cases, instituted on statements of action received prior to the entry into force of this Code, shall be examined according to the hitherto effective procedure for examination of cases by the court of first instance.(2) Any intermediate appellate review cases, instituted on appeals received prior to the entry into force of this Code, shall be examined according to the hitherto effective procedure for examination of cases by the court of intermediate appellate review instance.(3) Any cassation cases, instituted on cassation appeals received prior to the entry into force of this Code, shall be examined according to the hitherto effective procedure for examination of cases by the court of cassation instance.(4) (Effective 24.07.2007 - SG No. 59/2007) Any cassation appeals against intermediate appellate review judgments of the district courts on actions for remedy against wrongful dismissal under Items 1 to 3 of Article 344 (1) of the Labour Code and on actions for labour remuneration and compensation under an employment relationship with a cost of action above the amount referred to in Littera (a) of Article 218a (1) of the Code of Civil Procedure as superseded, lodged prior to the entry into force of this Code, shall be examined by the relevant appellate court according to the hitherto effective cassation procedure. Any cases instituted at the Supreme Court of Cassation, which have not been scheduled for examination, as well as any cases scheduled for examination after the 30th day of June 2008, shall be transmitted to the relevant appellate court, which shall examine the said cases according to the hitherto effective cassation procedure.(5) Any public sales, advertised prior to the entry into force of this Code, shall be completed according to the hitherto effective procedure. 3. (Effective 24.07.2007, in respect of the repeal of Chapter Thirty-Two A "Special Rules for the Recognition and Admission for Enforcement of Decisions of Foreign Courts and of Other Foreign Bodies" with Articles 307a to 307e and Part Seven "Proceedings Concerning Return of a Child or Exercise of the Right of Access" with Articles 502 to 507 - SG No. 59/2007) The Code of Civil Procedure (Promulgated in the Transactions of the Presidium of the National Assembly No. 12 of 1952; amended in No. 92 of 1952, No. 89 of 1953, No. 90 of 1955, No. 90 of 1956, No. 90 of 1958, Nos. 50 and 90 of 1961; corrected in No. 99 of 1961; amended in the State Gazette No. 1 of 1963, No. 23 of 1968, No. 27 of 1973, No. 89 of 1976, No. 36 of 1979, No. 28 of 1983, No. 41 of 1985, No. 27 of 1986, No. 55 of 1987, No. 60 of 1988, Nos. 31 and 38 of 1989, No. 31 of 1990, No. 62 of 1991, No. 55 of 1992, Nos. 61 and 93 of 1993, No. 87 of 1995, Nos. 12, 26, 37, 44 and 104 of 1996, Nos. 43, 55 and 124 of 1997, Nos. 21, 59, 70 and 73 of 1998, Nos. 64 and 103 of 1999, Nos. 36, 85 and 92 of 2000, No. 25 of 2001, Nos. 105 and 113 of 2002, Nos. 58 and 84 of 2003, Nos. 28 and 36 of 2004, Nos. 38, 42, 43, 79, 86, 99 and 105 of 2005, Nos. 17, 33, 34, 36. 37, 48, 51 and 64 of 2006) is hereby superseded. 4. (1) The statutory instruments of secondary legislation, issued in pursuance of the Code of Civil Procedure as superseded, shall apply insofar as they do not conflict with this Code.(2) (Effective 24.07.2007 - SG No. 59/2007) The Council of Ministers and the Minister of Justice shall issue the instruments referred to in Article 55, Article 73 (3), sentence two of Article 235 (5), Article 425, Item 7 of Article 444 and Article 489 (4) within six months after the promulgation of this Code in the State Gazette. 5. The Administrative Procedure Code (Promulgated in the State Gazette No. 30 of 2006) shall be amended as follows:1. In Article 182 (2), the words "shall incur liability according to Article 65 (1) of the Code of Civil Procedure" shall be replaced by "shall incur, regardless of the outcome of the case, the costs of the new hearing, of the taking of new evidence or of the re-taking of previously taken evidence, the costs incurred by the other party and of the attorney-in-fact thereof on appearance in the case, as well as shall pay an additional stamp duty to the amount of one-third of the initially paid stamp duty but not less than BGN 100."2. In Article 189 (4), the words "shall incur liability under Article 65 (1) of the Code of Civil Procedure" shall be replaced by "shall incur, regardless of the outcome of the case, the costs of the new hearing, of the taking of new evidence or of the re-taking of previously taken evidence, the costs incurred by the other party and of the attorney-in-fact thereof on appearance in the case, as well as shall pay an additional stamp duty to the amount of one-third of the initially paid stamp duty but not less than BGN 100." 6. The Tax and Social-Insurance Procedure Code (Promulgated in the State Gazette No. 105 of 2005, amended in Nos. 30, 33, 34, 59, 63, 73, 82, 86, 95 and 105 of 2006, No. 46 of 2007) shall be amended as follows:1. In Article 56 (1), the words "Article 114" shall be replaced by "Article 176".2. In Article 181, Paragraph (2) shall be amended to read as follows:"(2) The person who complied with the obligation may proceed with coercive enforcement according to the procedure established by the Code of Civil Procedure on the basis of the act ascertaining the public receivable and the certificate issued under Paragraph (1) in the cases referred to in Item 1 of Article 180 (1) herein, as well as where the person who complied with the obligation has acceded, as co-execution debtor, to the public obligation with a validly dated express written consent of the obligated person."3. In Article 206 (1), the words "Articles 345, 346 and 347, Article 354 (1), Articles 391, 392, 395, 396 and 397" shall be replaced by "Articles 451, 452 and 453, Article 459 (1), Articles 508, 509, 512, 513 and 514". 7. The Private International Law Code (Promulgated in the State Gazette No. 42 of 2005) shall be amended as follows:1. In Article 12 (1), the words "Article 83" shall be replaced by "Article 109".2. In Article 14, the words "Article 84" shall be replaced by "Article 110".3. In Article 19 (1), the words "Littera (d) of Article 80 (1)" shall be replaced by "Item 5 of Article 104".4. In Article 21 (2), the words "Article 104" shall be replaced by "Article 211".5. In sentence two of Article 23 (1), the words "not later than before the end of the first hearing of the case" shall be replaced by "within the time limit for answer to the statement of action".6. In Article 24, the words "before the end of the first hearing of the case" shall be replaced by "within the time limit for answer to the statement of action".7. In Article 30 (2), the words "Article 133" shall be replaced by "Article 164". 8. The Labour Code (Promulgated in the State Gazette Nos. 26 and 27 of 1986; amended in No. 6 of 1988, Nos. 21, 30 and 94 of 1990, Nos. 27, 32 and 104 of 1991, Nos. 23, 26, 88 and 100 of 1992; modified by Constitutional Court Judgment No. 12 of 1995, promulgated in No. 69 of 1995; amended in No. 87 of 1995, Nos. 2, 12 and 28 of 1996, No. 124 of 1997, No. 22 of 1998; modified by Constitutional Court Judgment No. 11 of 1998, promulgated in No. 52 of 1998; amended in Nos. 56, 83, 108 and 133 of 1998, Nos. 51, 67 and 110 of 1999, No. 25 of 2001, Nos. 1, 105 and 120 of 2002, Nos. 18, 86 and 95 of 2003, No. 52 of 2004, Nos. 19, 27, 46, 76, 83 and 105 of 2005, and Nos. 24, 30, 48, 57, 68, 75, 102 and 105 of 2006, Nos. 40 and 46 of 2007) shall be amended as follows:1. In Article 210 (5), the words "a writ of execution shall be issued on the basis of the order of the employer or the authority under sentence two of Paragraph (1) according to the procedure established by the Code of Civil Procedure" shall be replaced by "the employer shall have the option to move for the issuance of an enforcement order under Article 410 (1) of the Code of Civil Procedure, regardless of the amount of the claim".2. In Item 11 of Article 349 (2), the words "Article 395 (4)" shall be replaced by "Article 512 (4)". 9. The Copyright and Neighbouring Rights Act (Promulgated in the State Gazette No. 56 of 1993; amended in No. 63 of 1994, No. 10 of 1998, No. 28 of 2000, No. 77 of 2002, Nos. 28, 43, 74, 99 and 105 of 2005, Nos. 29, 30 and 73 of 2006) shall be amended as follows:1. In Article 95a (2), the words "Article 15 (3)" shall be replaced by "Article 26 (4)".2. In Article 96a (2), the words "Articles 308 to 322" shall be replaced by "Articles 389 to 403", and the words "Article 317" shall be replaced by "Article 398". 10. The Bar Act (Promulgated in the State Gazette No. 55 of 2004; amended in Nos. 43 and 79 of 2005, Nos. 10, 39 and 105 of 2006) shall be amended as follows:1. Article 37 shall be amended to read as follows:"Article 37. In respect of their claims arising from unrecovered remuneration and expenses, attorneys-at-law shall have the option to move for the issuance of an enforcement order under Article 410 (1) of the Civil Procedure Code regardless of the amount of the said claims."2. In Article 62 (6), the words "Chapter Fifty-Two" shall be replaced by "Chapter Fifty-Five "Recording of Natural Persons"".3. In Article 143, Paragraph (2) shall be amended to read as follows:"(2) In the event outstanding expenses are not paid by the attorney-at-law sanctioned within one month of entry into force of the decision, the coercive enforcement of the decision in the part regarding the expenses shall be admitted on a motion by the Bar Council or by the Disciplinary Tribunal according to the procedure established by Article 418 of the Code of Civil Procedure. The attorney-at-law being shall be inscribed in the list of attorneys-at-law at fault with the college fund."4. Article 145 shall be amended to read as follows:"Article 145. The coercive enforcement of the decision whereby a disciplinary sanction of fine has been imposed shall be admitted on a motion by the Bar College according to the procedure established by Article 418 of the Code of Civil Procedure." 11. The Administrative Violations and Sanctions Act (Promulgated in the State Gazette No. 92 of 1969; amended and supplemented in No. 54 of 1978, No. 28 of 1982, Nos. 28 and 101 of 1983, No. 89 of 1986, No. 24 of 1987, No. 94 of 1990, No. 105 of 1991, No. 59 of 1992, No. 102 of 1995, Nos. 12 and 110 of 1996, Nos. 11, 15, 59, 85 and 89 of 1998, Nos. 51, 67 and 114 of 1999, No. 92 of 2000, Nos. 25, 61 and 101 of 2002, No. 96 of 2004, Nos. 39 and 79 of 2005, Nos. 30, 33, 69 and 108 of 2006) shall be amended as follows:1. Article 78 shall be amended to read as follows:"Article 78. Where damages have been awarded, the coercive enforcement of the penalty decree shall be admitted on a motion by the person who is entitled to damages according to the procedure established by Article 418 of the Code of Civil Procedure."2. In Article 83f (1), the words "Article 97 (4)" shall be replaced by "Article 124 (5)". 12. The Bank Bankruptcy Act (Promulgated in the State Gazette No. 92 of 2002; amended in No. 67 of 2003, No. 36 of 2004, Nos. 31 and 105 of 2005, Nos. 30, 34 and 59 of 2006) shall be amended as follows:1. Article 16 shall be amended to read as follows:"Appellate Review of JudgmentsArticle 16. (1) The judgments referred to in Article 13 (1) and in Article 14 herein shall be subject to intermediate appellate review and cassation appellate review according to the standard procedure. The time limit for intermediate appellate review shall be seven days. The right of appeal shall vest in the conservators of the bank and the Central Bank, and the right to protest shall vest in the prosecutor.(2) An appellate review of a judgment under Article 13 (1) shall not stay the enforcement thereof.(3) The intermediate appellate review court shall institute the case on the day of receipt of the appeal or on the next working day at the latest and shall examine the said appeal, rendering judgment within one month after institution of the case.(4) Upon reversal of the judgment on the initiation of bankruptcy proceedings, all consequences arising from the effect of the said judgment shall be deleted, reckoned from the effective date of the judgment on reversal, and the powers of the bankruptcy bodies shall be terminated.(5) The judgment whereby a judgment referred to in Article 13 (1) or in Article 14 herein is reversed shall be recorded in the Commercial Register."2. In Article 39: (a) in Paragraph (4), the words "Chapter Nineteen" shall be replaced by "Chapter Twenty-One "Appellate Review of Rulings"";(b) in Paragraph (5), the words "Article 218j" shall be replaced by "Chapter Twenty-One "Appellate Review of Rulings"".3. In Article 47 (1), the words "cassation appellate review according to the procedure established by Articles 218b to 218j of" shall be replaced by "appellate review according to the standard procedure established by".4. In Article 57, Paragraph (5) shall be amended to read as follows:"(5) When the credit is not repaid on maturity, the trustee in bankruptcy shall have the option to move for the issuance of an immediate enforcement order according to the procedure established by Article 418 of the Code of Civil Procedure on the basis of an abstract of the books of account."5. In Article 76: (a) in Paragraph (1), the words "Article 372 (3)" shall be replaced by "Article 482 (3)";(b) in Paragraph (2), the words "Article 387" shall be replaced by "Article 499".6. In Article 89, the words "Articles 332 to 335" shall be replaced by "Articles 435 to 438".7. In Article 99 (4), the words "Articles 214 to 217" shall be replaced by "Chapter Twenty-One "Appellate Review of Rulings"". 13. In the Bulgarian National Bank Act (Promulgated in the State Gazette No. 46 of 1997; amended in Nos. 49 and 153 of 1998, Nos. 20 and 54 of 1999, No. 109 of 2001, No. 45 of 2002, Nos. 10 and 39 of 2005, Nos. 37, 59 and 108 of 2006) in Article 53, Paragraph (2) shall be amended to read as follows:"(2) The Bulgarian National Bank shall have the option to move for the issuance of an immediate enforcement order according to the procedure established by Article 418 of the Civil Procedure Code on the basis of an abstract of the books of accounts of the said Bank, whereby the defaulted receivables thereof, including any interest due, are ascertained." 14. In the Religious Denominations Act (Promulgated in the State Gazette No. 120 of 2002; amended in No. 33 of 2006) in Article 15 (1), the words "Chapter Forty-Six" shall be replaced by "Chapter Forty-Nine "General Rules"". 15. The Water Act (Promulgated in the State Gazette No. 67 of 1999; amended in No. 81 of 2000, Nos. 34, 41 and 108 of 2001, Nos. 47, 74 and 91 of 2002, Nos. 42, 69, 84 and 107 of 2003, Nos. 6 and 70 of 2004, Nos. 18, 77 and 94 of 2005, Nos. 29, 30, 36, 65, 66, 105 and 108 of 2006) shall be amended as follows:1. In Article 202 (4), the words "Article 31" shall be replaced by "Article 26 (4)".2. In Article 203, the words "with the amounts due being collected according to the procedure established by Littera (j) of Article 237 of the Code of Civil Procedure proceeding from an abstract of the bills" shall be replaced by "with the provider of the service having the option to move for the issuance of an execution order under Article 410 (1) of the Civil Procedure Code regardless of the amount of the obligation". 16. In the Act Restoring Ownership of Forests and Forest Stock Land Tracts (Promulgated in the State Gazette No. 110 of 1997; amended in Nos. 33, 59 and 133 of 1998, No. 49 of 1999, Nos. 26 and 36 of 2001, Nos. 45, 63 and 99 of 2002, No. 16 of 2003, No. 30 of 2006, Nos. 13 and 24 of 2007) in Article 15 (4) and (5), the words "Article 18 (2) and Littera (a) and (c) of Article 20 (1)" shall be replaced by "Article 30 (3) and Article 32 (1) and (3)". 17. In the Civil Registration Act (Promulgated in the State Gazette No. 67 of 1999; amended in Nos. 28 and 37 of 2001, No. 54 of 2002, No. 63 of 2003, Nos. 70 and 96 of 2004, No. 30 of 2006, No. 48 of 2007) in Article 19 (2), the words "the summary proceedings under" shall be replaced by "Chapter Fifteen "Ascertainment of Facts" of". 18. In the Value Added Tax Act (Promulgated in the State Gazette No. 63 of 2006; amended in Nos. 86, 105 and 108 of 2006; modified by Constitutional Court Judgment No. 7 of 2007, promulgated in No. 37 of 2007; amended in No. 41 of 2007) Article 131 shall be amended as follows:1. In Paragraph (3), the words "and by the Code of Civil Procedure" shall be deleted.2. In Paragraph (4), the words "or, respectively, according to the procedure established by Article 382 (1) or (3) and Article 371 (1) or (4) of the Code of Civil Procedure" shall be deleted. 19. In the State Property Act (Promulgated in the State Gazette No. 44 of 1996; amended in No. 104 of 1996, Nos. 55, 61 and 117 of 1997, Nos. 93 and 124 of 1998, No. 67 of 1999, Nos. 9, 12, 26 and 57 of 2000, No. 1 of 2001, modified by Constitutional Court Judgment No. 7 of 2001, promulgated in No. 38 of 2001; amended in No. 45 of 2002, No. 63 of 2003, Nos. 24 and 93 of 2004, No. 32 of 2005, Nos. 17, 30, 36, 64 and 105 of 2006, No. 41 of 2007) in Article 38 (5), the words "Article 41 (5) and the time limit referred to in Article 157 (1)" shall be replaced by "Article 56 (3) and the time limit referred to in Article 199". 20. The Public Financial Inspection Act (Promulgated in the State Gazette No. 33 of 2006; amended in No. 59 of 2006) shall be amended as follows:1. In Article 22: (a) there shall be inserted a new Paragraph (5) to read as follows:"(5) The findings of fact in the deficit deed shall be considered true until proven otherwise.";(b) the existing Paragraph (5) shall be renumbered to become Paragraph (6).2. In Article 27, Paragraph (4) shall be amended to read as follows:"(4) On the basis of the deficit deed, an immediate enforcement order shall be issued according to the procedure established by Article 418 of the Civil Procedure Code." 21. In the Civil Servants Act (Promulgated in the State Gazette No. 67 of 1999; amended in No. 1 of 2000, Nos. 25, 99 and 110 of 2001, No. 45 of 2002, No. 95 of 2003, No. 70 of 2004, No. 19 of 2005, Nos. 24, 30 and 102 of 2006) in Item 10 of Article 112 (1), the words "Article 395 (4)" shall be replaced by "Article 512 (4)". 22. The Energy Act (Promulgated in the State Gazette No. 107 of 2003; amended in No. 18 of 2004, Nos. 18 and 95 of 2005, Nos. 30, 65 and 74 of 2006, No. 49 of 2007) shall be amended as follows:1. Article 107 shall be amended to read as follows:"Article 107. The public provider, the electricity system operator, the public suppliers, the suppliers of last resort, the transmission company and the distribution companies shall have the option to move for the issuance of an enforcement order under Article 410 (1) of the Code of Civil Procedure for the receivables thereof for electricity provided or transmitted, as well as for the services rendered thereby under this Act, regardless of the amount of the said receivables."2. Article 154 shall be amended to read as follows:"Article 154. In respect of the liabilities of any customers, who are defaulting payers, and of the association referred to in Article 151 (1) herein to the heat transmission company, an enforcement order may be issued under Article 410 (1) of the Code of Civil Procedure, regardless of the amount of the said liabilities. An equalizing bill for the respective year for which the liability applies must have been prepared in respect of the liabilities of any customers with application of a share distribution system, who are defaulting payers."3. In Article 184, the words "may collect the receivables thereof for natural gas from defaulting payers according to the procedure established by Littera (j) of Article 237 the Code of Civil Procedure on the basis of abstracts of the bills" shall be replaced by "shall have the option to move for the issuance of an enforcement order under Article 410 (1) of the Code of Civil Procedure for the receivables thereof for supply of natural gas regardless of the amount of the said receivables". 23. The Obligations and Contracts Act (Promulgated in the State Gazette No. 275 of 1950; corrected in Transactions of the Presidium of the National Assembly No. 2 of 1951; amended in No. 69 of 1951, No. 92 of 1952; State Gazette No. 85 of 1963, No. 27 of 1973, No. 16 of 1977, No. 28 of 1982, No. 30 of 1990, Nos. 12 and 56 of 1993, Nos. 83 and 104 of 1996, Nos. 83 and 103 of 1999, No. 34 of 2000, No. 19 of 2003, Nos. 42 and 43 of 2005, No. 36 of 2006) shall be amended and supplemented as follows:1. In Article 37, the words "with notarized signature" shall be replaced by "with notarial certification of the signature and the contents, performed simultaneously".2. Article 160 shall be amended to read as follows:"Article 160. Where a secured claim is monetary or liquidated damages in cash have been agreed for it, if the pledge is created by a contract in writing or is provided by operation of law for securing claims which arise from a contract in writing, the creditor shall have the option to move for the issuance of an immediate enforcement order according to the procedure established by Article 418 of the Code of Civil Procedure."3. Article 165 shall be amended to read as follows:"Article 165. A creditor who has a pledge on a claim shall have the option to move for the issuance of an immediate enforcement order according to the procedure established by Article 418 of the Code of Civil Procedure under the terms and according to the procedure established by Article 160 herein and shall be satisfied preferentially according to the procedure for reversal of the enforcement of a claim."4. In Article 173, Paragraph (3) shall be amended to read as follows:"(3) If a claim is for a specific amount of money, or if liquidated damages in cash have been agreed for it, the creditor shall have the option to move, on the basis of the act on recording of the mortgage, for the issuance of an immediate enforcement order according to the procedure established by Article 418 of the Code of Civil Procedure." 24. (Effective 24.07.2007 - SG No. 59/2007) The Child Protection Act (Promulgated in the State Gazette No. 48 of 2000; amended in Nos. 75 and 120 of 2002, Nos. 36 and 63 of 2003, Nos. 70 and 115 of 2004, Nos. 28, 94 and 103 of 2005, Nos. 30, 38 and 82 of 2006) shall be amended as follows:1. In Article 4 (1), there shall be added a new Item 12 to read as follows:"12. taking of measures of a provisional character for the protection of a child in the cases and under the terms established by Article 12 of the Convention on Jurisdiction, Applicable Law, Recognition, Enforcement and Co-operation in Respect of Parental Responsibility and Measures for Protection of Children, done at The Hague on the 19th day of October 1996 (ratified by law, promulgated in the State Gazette No. 9 of 2006) (Convention promulgated in the State Gazette No. 15 of 2007) hereinafter referred to as "the Convention of 1996"."2. In Article 21, there shall be added a new Paragraph (3) to read as follows:"(3) In pursuance of Article 35, paragraph 2 of the Convention of 1996, the Social Assistance Directorate, exercising competence over the permanent address of the parent who has approached the relevant competent authority with a request to obtain or to maintain access to the child who does not habitually reside in the Republic of Bulgaria, shall gather information or evidence and shall make a finding on the suitability of that parent to exercise the rights of access, as well as on the conditions under which access is to be exercised."3. There shall be inserted a new Chapter Three A with Articles 22a to 22g and a new Chapter Three B with Articles 22h to 22m, to read as follows:"Chapter Three APROCEEDINGS CONCERNING RETURN OF A CHILD OR EXERCISE OF RIGHTS OF ACCESSArticle 22a. (1) An application for the return of a child or for the exercise of rights of access under the Hague Convention on the Civil Aspects of International Child Abduction, done at The Hague on the 25th day of October 1980 (ratified by law, promulgated in the State Gazette No. 20 of 2003) (Convention promulgated in the State Gazette No. 82 of 2003), hereinafter referred to as "the Hague Convention", shall be examined by the Sofia City Court in public session with the participation of:1. the Ministry of Justice or the applicant;2. the interested parties;3. a prosecutor.(2) The Social Assistance Directorate with the municipality wherein the child has its current address shall submit an opinion in the proceeding under Paragraph (1). The court shall hear the child in accordance with Article 15 herein.(3) The Ministry of Justice shall represent the applicant, where application has been lodged care of the said Ministry. The said Ministry may appoint a representative to act on its behalf.Article 22b. The court, acting on a motion as submitted or ex officio, may rule on a suitable provisional measure for the protection of the child for the purpose of avoiding any further dangers to the child or detriment to the parties.Article 22c. (1) The court shall render judgment within one month after submission of the application.(2) In the proceeding under Article 22a (1), the court shall not examine the question of exercise of the rights of custody on the merits.Article 22d. (1) The judgment of the Sofia City Court shall be appealable by the persons covered under Article 22a (1) before the Sofia Appellate Court.(2) Within one month after lodgment of any such appeal, the court shall render judgment which shall be final.Article 22e. In this proceeding, the court may take evidence of its own motion, as well as assist the parties in exercising their procedural rights.Article 22f. Where a foreign court applies Article 15 of the Hague Convention, the Bulgarian authority competent to determine that the removal or retention of a child was wrongful shall be the court which has examined or is examining the questions regarding the rights of custody, or the Ministry of Justice, where the said questions have not been a subject matter of a court proceeding.Article 22g. (1) The rules of this Chapter shall furthermore apply, mutatis mutandis, in respect of the Convention of 1996 concerning parental responsibility and measures for the protection of children.(2) In the cases and under the terms of Articles 8, 9 and 13 of the Convention of 1996, the competent court first seised, if it considers that this is in the child's best interests, may decline jurisdiction in favour of a foreign court second seised or accept to examine the case and render judgment, where the foreign court first seised has declined jurisdiction in favour of the said competent court.(3) In the cases referred to in Paragraph (2), the judgment rendered by the foreign court shall be recognizable and enforceable according to the procedure established by Chapter Three B.Chapter Three BSPECIAL RULES FOR RECOGNITION AND ADMISSION TO ENFORCEMENT OF DECISIONS OF FOREIGN COURTS AND OF OTHER FOREIGN AUTHORITIES CONCERNING CUSTODY AND MEASURES FOR THE PROTECTION OF CHILDRENArticle 22h. (1) An application for recognition and admission to enforcement of a decision of a foreign court or another foreign authority concerning the exercise of rights of custody and restoration of the exercise of rights of custody upon improper removal of a child, based on the European Convention on Recognition and Enforcement of Decisions concerning Custody of Children and on Restoration of Custody of Children of 1980, done at Luxembourg on the 20th day of May 1980 (ratified by law, promulgated in the State Gazette No. 21 of 2003) (Convention promulgated in the State Gazette No. 104 of 2003), hereinafter referred to as "Luxembourg Convention", shall be examined by the Sofia in public session with the participation of:1. the Ministry of Justice;2. the parties to the foreign decision;3. a prosecutor.(2) Paragraph (1) shall not apply where the applicant has seised the court directly.(3) The Social Assistance Directorate with the municipality wherein the child has its current address shall submit an opinion in the proceeding under Paragraph (1). The court shall hear the child in accordance with Article 15 herein.(4) The court, acting on a motion as submitted or ex officio, may rule on a suitable provisional measure for the protection of the child for the purpose of avoiding any further dangers to the child or detriment to the parties.Article 22i. (1) The court shall suspend the proceeding under Article 22g (1) herein where:1. the decision is subject to appeal;2. a proceeding on the merits of the dispute, which has commenced before the proceeding in the State of origin of the decision whereof the recognition and/or admission to enforcement is applied for, is pending before a Bulgarian court;3. another decision concerning the exercise of the rights of custody is the subject of a proceeding for recognition and/or admission to enforcement of the said decision.(2) In the cases referred to in Item 2 of Paragraph (1), the court shall immediately notify the relevant court, which shall be obligated to pronounce within one month after notification.Article 22j. (1) The court shall render judgment within one month after submission of the application.(2) The judgment of the court shall be appealable before the Sofia Appellate Court.(3) The Sofia Appellate Court shall render judgment within the time limit referred to in Paragraph (1). The said judgment shall be final.Article 22k. (1) Recognition and enforcement of a decision on exercise of the rights of custody, rendered after the removal of the child, may be applied for according to the procedure established by this Chapter, if the said removal has been declared improper by the said decision.(2) A recognition and enforcement of the decision of another State party to the Luxembourg Convention shall be refused in the cases covered by Articles 8 and 9, where the grounds provided under Article 10, paragraph 1 of the Convention exist.(3) A recognition and enforcement of the decision shall be admitted solely in so far as the said decision is enforceable in the State of origin of the said decision.Article 22l. Save in so far there are no special rules concerning this proceeding, the standard action proceeding rules in the Code of Civil Procedure shall apply.Article 22m. The rules of this Chapter shall furthermore apply, mutatis mutandis, in respect of the Convention of 1996 concerning the recognition and enforcement of decisions of foreign courts and of other foreign authorities."4. In Article 25, there shall be added a new Item 5 to read as follows:"5. in the cases covered under Article 11 of the Convention of 1996." 25. The Consumer Protection Act (Promulgated in the State Gazette No. 99 of 2005; amended in Nos. 30, 51, 53, 59, 105 and 108 of 2006, Nos. 31 and 41 of 2007) shall be amended and supplemented as follows:1. In Article 186 (1), there shall be added the following sentence two: "Any such action shall be examined according to the procedure established by Chapter Thirty-Three "Proceedings on Class Actions" of the Code of Civil Procedure."2. Article 186b shall be repealed.3. In Article 188, Paragraphs (2) and (3) shall be repealed.4. In Article 189: (a) Paragraphs (2) and (3) shall be repealed;(b) Paragraph (5) shall be repealed.5. Article 190a shall be repealed. 26. The Protection Against Discrimination Act (Promulgated in the State Gazette No. 86 of 2003; amended in No. 70 of 2004, No. 105 of 2005, Nos. 30 and 68 of 2006) shall be amended as follows:1. In Article 61: (a) in Paragraph (2), the words "Article 105 (3)" shall be replaced by "Article 136";(b) in Paragraph (3), the words "Chapter Three" shall be replaced by "Articles 22 to 24".2. In Article 71 (3), the words "Article 174" shall be replaced by "Article 218". 27. In the Health Insurance Act (Promulgated in the State Gazette No. 70 of 1998; amended in Nos. 93 and 153 of 1998, Nos. 62, 65, 67, 69, 110 and 113 of 1999, Nos. 1, 31 and 64 of 2000, No. 41 of 2001, Nos. 1, 54, 74, 107, 112, 119 and 120 of 2002, Nos. 8, 50, 107 and 114 of 2003, Nos. 28, 38, 49, 70, 85 and 111 of 2004, Nos. 39, 45, 76, 99, 102, 103 and 105 of 2005, Nos. 17, 18, 30, 33, 34, 59, 95 and 105 of 2006, No. 11 of 2007, modified by Constitutional Court Judgment No. 3 of 2007, promulgated in No. 26 of 2007; amended in Nos. 31 and 46 of 2007) in Article 111, Paragraph (2) shall be amended to read as follows:"(2) In respect of the amount due under Paragraph (1), the Regional Health Insurance Fund shall have the option to move for the issuance of an immediate enforcement order according to the procedure established by Article 418 of the Code of Civil Procedure on the basis of an abstract of the books of account of the said Fund." 28. In the Mortgage Bonds Act (Promulgated in the State Gazette No. 83 of 2000; amended in No. 59 of 2006) in Article 22 (2), the words "Articles 375 to 389" shall be replaced by "Articles 486 to 501". 29. The Cadastre and Property Register Act (Promulgated in the State Gazette No. 34 of 2000; amended in Nos. 45 and 99 of 2002, No. 36 of 2004, Nos. 39 and 105 of 2005, Nos. 29 and 30 of 2006) shall be amended as follows:1. In Article 87, the words "Chapter Forty-Six" shall be replaced by "Chapter Forty-Nine "General Rules"".2. In Article 88, the words "Article 431 (2) and (3)" shall be replaced by "Article 537 (2) and (3)".3. In Article 89, the words "Article 192 (2)" shall be replaced by "Article 247". 30. In the Chambers of Architects and Engineers in Project Development Design Act (Promulgated in the State Gazette No. 20 of 2003; amended in No. 65 of 2003, No. 77 of 2005, Nos. 30 and 79 of 2006) in Article 30, the words "to obtain writs of execution under the provisions of Chapter Twenty-Three of the Code of Civil Procedure" shall be replaced by "to move for the issuance of an enforcement order under Article 410 (1) of the Code of Civil Procedure regardless of the amount of the said receivables. 31. In the Concessions Act (Promulgated in the State Gazette No. 36 of 2006; amended in Nos. 53, 65 and 105 of 2006, No. 41 of 2007) in Article 89 (2), the words "Article 41 (5)" shall be replaced by "Article 56 (3)". 32. In the Credit Institutions Act (Promulgated in the State Gazette No. 58 of 2006; amended in No. 105 of 2006) in Article 60 (2), the words "shall be entitled to obtain a writ of execution according to a statement of account for the whole amount due" shall be replaced by "shall have the option to move for the issuance of an immediate enforcement order according to the procedure established by Article 418 of the Code of Civil Procedure on the basis of an abstract of the books of account thereof." 33. In the Marks and Geographical Indications Act (Promulgated in the State Gazette No. 81 of 1999; corrected in No. 82 of 1999; amended in Nos. 28, 43, 94 and 105 of 2005, Nos. 30, 73 and 96 of 2006) Article 76g shall be amended as follows:1. The heading shall be amended to read as follows: "Interim Measures".2. In Paragraph (1), in the text before Item 1, the words "the person in regard of whom the injunction is requested" shall be replaced by "the respondent party".3. In Paragraph (2), the word "injunctions" shall be replaced by "interim measures", the words "Articles 308 to 322" shall be replaced by "Articles 389 to 403", and the words "Article 317" shall be replaced by "Article 398".4. In Paragraph (3), the word "injunction" shall be replaced by "interim measure".5. In Paragraph (4), in sentence one, the word "injunctions" shall be replaced by "interim measures", the words "state or private law enforcement" shall be replaced by "enforcement", and the words "admission of the injunction" shall be replaced by "imposition of the measure", and in sentence two, the word "injunction" shall be replaced by "interim measure".6. In Paragraph (5), the word "injunctions" shall be replaced by "interim measures".7. In Paragraph (6), the word "injunction" shall be replaced by "interim measure". 34. The International Commercial Arbitration Act (Promulgated in the State Gazette No. 60 of 1988; amended in No. 93 of 1993, No. 59 of 1998, No. 38 of 2001, No. 46 of 2002; modified by Constitutional Court Judgment No. 9 of 2002, promulgated in No. 102 of 2002) shall be amended as follows:1. In sentence one of Article 8 (1), the words "at the first court meeting" shall be replaced by "within the time limit for answer to the statement of action".2. In Article 16 (1), the words "Articles 126b and 126c" shall be replaced by "Article 71".3. In Article 48 (3), the words "Articles 54 and 55" shall be replaced by "Article 71".4. In Article 51, Paragraph (3) shall be amended to read as follows:"(3) The actions for recognition and admission to enforcement of foreign arbitration awards and of the settlements reached before foreign arbitration courts on arbitration cases shall be brought, unless otherwise provided for in an international treaty whereto the Republic of Bulgaria is a party, before the Sofia City Court, and Articles 118 to 122 of the Private International Law Code shall apply, mutatis mutandis, to the consideration of any such actions, with the exception of the right of the execution debtor to raise a defence of extinguishment of the claim." 35. In the Customs Act (Promulgated in the State Gazette No. 15 of 1998; amended in Nos. 89 and 153 of 1998, Nos. 30 and 83 of 1999, No. 63 of 2000, No. 110 of 2001, No. 76 of 2002, Nos. 37 and 95 of 2003, No. 38 of 2004, Nos. 45, 86, 91 and 105 of 2005, Nos. 30 and 105 of 2006) shall be amended as follows:1. In Item 9 of Article 14 (1), the words "Article 64 (5)" shall be replaced by "Article 78 (6) and (8)".2. In Article 211j (1), the words "Article 231" shall be replaced by "Article 303". 36. In the Succession Act (Promulgated in the State Gazette No. 22 of 1949; corrected in No. 41 of 1949; amended in No. 275 of 1950, No. 41 of 1985, No. 60 of 1992, modified by Constitutional Court Judgment No. 4 of 1996, promulgated in No. 21 of 1996; amended in No. 104 of 1996, No. 117 of 1997, No. 96 of 1999, No. 34 of 2000) in Article 24 (2), the words "Article 474 (1) and (2)" shall be replaced by "Article 578 (1) and (2)". 37. The Notaries and Notarial Practice Act (Promulgated in the State Gazette No. 104 of 1996; amended in Nos. 117, 118 and 123 of 1997, No. 24 of 1998, No. 69 of 1999, No. 18 of 2003, Nos. 29 and 36 of 2004, Nos. 19 and 43 of 2005, Nos. 30, 39 and 41 of 2006) shall be amended as follows:1. In Article 50, the words "Articles 41 to 52" shall be replaced by "Articles 37 to 58".2. Article 61 shall be amended to read as follows:"Coercive EnforcementArticle 61. In respect of the sums due, the Notary Chamber of Bulgaria shall have the option, acting on a resolution of the General Meeting, to move for the issuance of an enforcement order under Article 410 (1) of the Code of Civil Procedure regardless of the amount of the said sums."3. In Article 89, Paragraph (3) shall be amended to read as follows:"(3) In respect of any unpaid notarial fees, the notary shall have the option to move for the issuance of an enforcement order under Article 410 (1) of the Code of Civil Procedure regardless of the amount of the said fees." 38. In the Indemnification of Nationalized Property Owners Act (Promulgated in the State Gazette No. 107 of 1997; modified by Constitutional Court Judgment No. 4 of 1998, promulgated in No. 30 of 1998; amended in Nos. 45, 88 and 135 of 1998, No. 12 of 1999, No. 9 of 2000; corrected in No. 10 of 2000; amended in No. 99 of 2000, No. 25 of 2001, Nos. 28, 45, 47 of 2002, No. 112 of 2003, No. 101 of 2004, No. 24 of 2006) in Article 6, Paragraph (12) shall be repealed. 39. In the Public Procurement Act (Promulgated in the State Gazette No. 28 of 2004; amended in No. 53 of 2004, Nos. 31, 34 and 105 of 2005, Nos. 18, 33, 37 and 79 of 2006) in Article 122b (2), the words "Article 41 (5)" shall be replaced by "Article 56 (3)". 40. In the Municipal Property Act (Promulgated in the State Gazette No. 44 of 1996; amended in No. 104 of 1996, No. 55 of 1997, Nos. 22 and 93 of 1998, Nos. 23, 56, 64, 67, 69 and 96 of 1999, No. 26 of 2000, No. 34 of 2001, No. 120 of 2002, No. 101 of 2004, Nos. 29, 30 and 36 of 2006) in Article 27 (3), the words "Article 41 (5) and the time limit referred to in Article 157 (1)" shall be replaced by "Article 56 (3) and the time limit referred to in Article 199". 41. The Registered Pledges Act (Promulgated in the State Gazette No. 100 of 1996; amended in No. 86 of 1997, No. 42 of 1999, Nos. 19 and 58 of 2003, Nos. 34 and 43 of 2005, Nos. 30 and 34 of 2006) shall be amended as follows:1. In Article 35: (a) Paragraph (1) shall be amended to read as follows:"(1) Where the pledgor does not duly cooperate for the foreclosure on the pledged property or for its conservation, the pledgee, proceeding from an abstract from the registry of a recorded security interest and a recording of commencement of foreclosure, shall have the option to move for the issuance of an immediate enforcement order according to the procedure established by Article 418 of the Code of Civil Procedure. The delivery of the pledged property shall follow the procedure established by Article 521 of the Civil Procedure Code.";(b) in Paragraph (2), the words "the public or private enforcement" shall be replaced by "the enforcement".2. Article 36 shall be amended to read as follows:"Challenge of RightsArticle 36. In the foreclosure proceeding, the pledgor may challenge the debt or the security interest according to the procedure established by Article 439 of the Code of Civil Procedure."3. In Article 37 (4), the words "Article 372" shall be replaced by "Article 482".4. In Article 40 (2), the words "Article 372" shall be replaced by "Article 482".5. In Article 41 (2), the words "Article 217" shall be replaced by "Article 278".6. In Article 42, the words "Article 369" shall be replaced by "Article 464". 42. The Republic of Bulgaria Defence and Armed Forces Act (Promulgated in the State Gazette No. 112 of 1995; amended in No. 67 of 1996, No. 122 of 1997, Nos. 70, 93, 152 and 153 of 1998, Nos. 12, 67 and 69 of 1999, Nos. 49 and 64 of 2000, No. 25 of 2001, Nos. 1, 40, 45 and 119 of 2002, Nos. 50, 86, 95 and 112 of 2003, Nos. 93 and 111 of 2004, Nos. 27, 38, 76, 88, 102 and 105 of 2005, Nos. 30, 36, 56, 82, 91 and 102 of 2006, No. 11, 41 and 46 of 2007) shall be amended as follows:1. In Article 300, Paragraph (3) shall be amended to read as follows:"(3) In respect of the costs referred to in Paragraphs (1) and (2), the relevant competent authority, designated by the Minister of Defence, shall have the option to move for the issuance of an immediate enforcement order according to the procedure established by Article 418 of the Code of Civil Procedure on the basis of an abstract of the books of account of the said authority."2. In Article 300a, Paragraph (2) shall be amended to read as follows:"(2) In respect of the costs referred to in Paragraph (1), the relevant competent authority, designated by the Minister of Defence, shall have the option to move for the issuance of an immediate enforcement order according to the procedure established by Article 418 of the Code of Civil Procedure on the basis of an abstract of the books of account of the said authority." 43. In the Criminal Assets Forfeiture Act (Promulgated in the State Gazette No. 19 of 2005; amended in Nos. 86 and 105 of 2005, Nos. 33 and 75 of 2006) in Article 28 (5), the words "Article 87 (4)" shall be replaced by "Article 124 (5)". 44. In the Patents and Utility Models Registration Act (Promulgated in the State Gazette No. 27 of 1993; amended in No. 83 of 1996, No. 11 of 1998, No. 81 of 1999, Nos. 45 and 66 of 2002, No. 17 of 2003, Nos. 30 and 64 of 2006, No. 31 of 2007) in Article 67 (4), sentence two shall be amended to read as follows: "Non-payment of this fee may not serve as grounds to suspend procedures, but the receiving office shall have the option to move for the issuance of an immediate enforcement order according to the procedure established by Article 418 of the Code of Civil Procedure on the basis of an abstract of the books of account of the said office." 45. In the Agricultural Producers Support Act (Promulgated in the State Gazette No. 58 of 1998; amended in Nos. 79 and 153 of 1998, Nos. 12, 26, 86 and 113 of 1999, No. 24 of 2000, Nos. 34 and 41 of 2001, Nos. 46 and 96 of 2002, No. 18 of 2004, Nos. 14 and 105 of 2005, Nos. 18, 30, 34, 59, 96 and 108 of 2006, No. 13 of 2007) in Article 27, Paragraph (2) shall be amended to read as follows:"(2) In respect of the receivables thereof from natural and legal persons, the Fund shall have the option to move for the issuance of an immediate enforcement order according to the procedure established by Article 418 of the Code of Civil Procedure on the basis of an abstract of the books of account of the said Fund. Any such receivables shall be collected by the State Receivables Collection Agency." 46. The Political Parties Act (Promulgated in the State Gazette No. 28 of 2005; amended in No. 102 of 2005, Nos. 17 and 73 of 2006) shall be amended as follows:1. In Article 18, Paragraph (1) shall be amended to read as follows:"(1) Any judgment on the application for registration shall be appealable or protestable before the Supreme Court of Cassation within seven days after learning of the said judgment regardless of the prerequisites for cassation appealability covered under Article 280 (1) of the Code of Civil Procedure."2. In Article 41: (a) Paragraph (1) shall be amended to read as follows:"(1) The Sofia City Court judgment referred to in Article 40 herein shall be appealable before the Supreme Court of Cassation regardless of the prerequisites for cassation appealability covered under Article 280 (1) of the Code of Civil Procedure.";(b) in Paragraph (2), the words "Article 231" shall be replaced by "Article 303". 47. In the Privatization and Post-privatization Control Act (Promulgated in the State Gazette No. 28 of 2002; amended in No. 78 of 2002, Nos. 20 and 31 of 2003; modified by Constitutional Court Judgment No. 5 of 2003, promulgated in No. 39 of 2003; amended in Nos. 46 and 84 of 2003, Nos. 55 and 115 of 2004, Nos. 28, 39, 88, 94, 103 and 105 of 2005, Nos. 36, 53, 72 and 105 of 2006) 11b of the Supplementary Provisions shall be amended to read as follows:" 11b. In respect of the instalments of the price under contracts for privatization, the Post-privatisation Control Agency and the authorities referred to in Article 4 (2) herein shall have the option to move for the issuance of an immediate enforcement order according to the procedure established by Article 418 of the Civil Procedure Code on the basis of an abstract of the books of account of the said Agency." 48. The Industrial Designs Act (Promulgated in the State Gazette No. 81 of 1999; amended in No. 17 of 2003, Nos. 43 and 105 of 2005, Nos. 30 and 73 of 2006) shall be amended as follows:1. In Article 57g: (a) the heading shall be amended to read as follows: "Interim Measures".(b) in Paragraph (1), in the text before Item 1, the words "the person in respect to whom a security measure is requested" shall be replaced by "the respondent party".(c) in Paragraph (2), the words "security measures" shall be replaced by "interim measures", the words "Articles 308 to 322" shall be replaced by "Articles 389 to 403", and the words "Article 317" shall be replaced by "Article 398".(d) In Paragraph (3), the words "security measure" shall be replaced by "interim measure".(e) in Paragraph (4), in sentence one, the word "security measures" shall be replaced by "interim measures", the words "a public or private law enforcement" shall be replaced by "an enforcement", and the words "admission of the security interest" shall be replaced by "imposition of the measure", and in sentence two, the words "security measure" shall be replaced by "interim measure".(f) in Paragraph (5), the words "security measures" shall be replaced by "interim measures".(g) in Paragraph (6), the words "security measure" shall be replaced by "interim measure".2. In Article 60a: (a) the heading shall be amended to read as follows: "Interim Measures";(b) in Paragraph (1), in the text before Item 1, the word "injunctions" shall be replaced by "measures";(c) Paragraph (2) shall be amended to read as follows:"(2) The admission, imposition and lifting of interim measures shall follow the procedure established by Articles 389 to 403 of the Code of Civil Procedure, with the exception of sentence one of Article 398 (2), save insofar as this Act provides for otherwise."(d) in Paragraph (3), the word "injunction" shall be replaced by "interim measure";(e) in Paragraph (4), the word "injunctions" shall be replaced by "interim measures", the words "executive judge" shall be replaced by "enforcement agent", and the words "admission of the security interest" shall be replaced by "imposition of the measure";(f) in Paragraph (5), the word "injunctions" shall be replaced by "interim measures";(g) in Paragraph (6), in sentence one, the word "injunctions" shall be replaced by "interim measures" and the words "executive judge" shall be replaced by "enforcement agent", and in sentence two, the word "injunction" shall be replaced by "interim measure";(h) in Paragraph (7), the word "injunction" shall be replaced by "interim measure", and the words "the said security interest" shall be replaced by "imposition of the said measure". 49. In the Roads Act (Promulgated in the State Gazette No. 26 of 2000; amended in No. 88 of 2000, No. 111 of 2001, Nos. 47 and 118 of 2002, Nos. 9 and 112 of 2003, Nos. 6 and 14 of 2004, Nos. 88 and 105 of 2005, Nos. 30, 36, 64, 102, 105 and 108 of 2006) in Article 57, Paragraph (2) shall be amended to read as follows:"(2) In the event of failure to comply with the provision contained in Paragraph (1), the authority managing the road shall repair the consequences of the violation at the expense of the offender. In respect of the receivable thereof from the offender, the administration shall have the option to move for the issuance of an immediate enforcement order according to the procedure established by Article 418 of the Code of Civil Procedure on the basis of an abstract of the books of account of the said administration." 50. In the Irrigation Associations Act (Promulgated in the State Gazette No. 34 of 2001; amended in No. 108 of 2001, No. 30 of 2006) Article 54 shall be amended to read as follows:"Article 54. In respect of the receivables thereof, the associations shall have the option to move for the issuance of an enforcement order under Article 410 (1) of the Code of Civil Procedure regardless of the amount of the said receivables." 51. In the Ownership Act (Promulgated in Transactions of the Presidium of the National Assembly No. 92 of 1951; amended in No. 12 of 1958, No. 90 of 1960, Official Gazette No. 99 of 1963, Nos. 26 and 27 of 1973, Nos. 54 and 87 of 1974, No. 55 of 1978, No. 36 of 1979, No. 19 of 1985, Nos. 14 and 91 of 1988, No. 38 of 1989, No. 31 of 1990, No. 77 of 1991, No. 33 of 1996, No. 100 of 1997, No. 90 of 1999, Nos. 34 and 59 of 2000, No. 32 of 2005, No. 46 of 2006, No. 24 of 2007) in Article 46, Paragraph (2) shall be amended to read as follows:"(2) On the basis of an effective resolution of the general meeting under Article 45, the manager or the chairman of the managing council shall have the option to move for the issuance of an enforcement order according to the procedure established by Article 410 (1) of the Code of Civil Procedure." 52. In the Agricultural Land Ownership and Use Act (Promulgated in the State Gazette No. 17 of 1991; corrected in No. 20 of 1991; amended in No. 74 of 1991, Nos. 18, 28, 46 and 105 of 1992, No. 48 of 1993; modified by Constitutional Court Judgment No. 12 of 1993, promulgated in No. 64 of 1993; amended in No. 83 of 1993, No. 80 of 1994, Nos. 45 and 57 of 1995; modified by Constitutional Court Judgments Nos. 7 and 8 of 1995, promulgated in No. 59 of 1995; amended in No. 79 of 1996; modified by Constitutional Court Judgments No. 20 of 1996, promulgated in No. 103 of 1996; amended in No. 104 of 1996, Nos. 62, 87, 98 and 123 of 1997, Nos. 59, 88 and 133 of 1998, No. 68 of 1999, Nos. 34 and 106 of 2000, Nos. 28, 47 and 99 of 2002, No. 16 of 2003, No. 36 of 2004, Nos. 17 and 30 of 2006, Nos. 13 and 24 of 2007) in Item 1 of Article 19 (8), the words "Article 483" shall be replaced by "Article 587". 53. In the Social Assistance Act (Promulgated in the State Gazette No. 56 of 1998; amended in Nos. 45 and 120 of 2002, Nos. 18, 30 and 105 of 2006) in Article 14b, Paragraph (2) shall be amended to read as follows:"(2) The coercive enforcement of the order referred to in Article 14a (3) herein shall be admitted on a motion by the Social Assistance Directorate according to the procedure established by Article 418 of the Code of Civil Procedure." 54. In the State Receivables Collection Act (Promulgated in the State Gazette No. 26 of 1996; amended in No. 104 of 1996, No. 51 of 1997, No. 59 of 1998, No. 103 of 1999; modified by Constitutional Court Judgment No. 2 of 2000, promulgated in No. 29 of 2000; amended in No. 63 of 2000, No. 111 of 2001, Nos. 28 and 46 of 2002, No. 105 of 2005, No. 105 of 2006) in Article 87, Paragraph (2) shall be amended to read as follows:"(2) The receivables covered under Paragraph (1), with the exception of the receivables referred to in Item 5, shall be ascertained by an act of ascertainment of a private state receivable, which shall be issued by the Executive Director of the Agency. On the basis of the act of ascertainment of a private state receivable, the Agency shall have the option to move for the issuance of an immediate enforcement order according to the procedure established by Article 418 of the Code of Civil Procedure." 55. In the Judicial System Act (Promulgated in the State Gazette No. 59 of 1994;, modified by Constitutional Court Judgment No. 8 of 1994, promulgated in No. 78 of 1994; modified by Constitutional Court Judgment No. 9 of 1994, promulgated in No. 87 of 1994; modified by Constitutional Court Judgment No. 17 of 1995, promulgated in No. 93 of 1995; amended in No. 64 of 1996; modified by Constitutional Court Judgment No. 19 of 1996, promulgated in No. 96 of 1996; amended in Nos. 104 and 110 of 1996, Nos. 58, 122 and 124 of 1997, Nos. 11 and 133 of 1998; modified by Constitutional Court Judgment No. 1 of 1999, promulgated in No. 6 of 1999; amended in Nos. 34, 38 and 84 of 2000, No. 25 of 2001, No. 74 of 2002; modified by Constitutional Court Judgment No. 11 of 2002, promulgated in No. 110 of 2002; modified by Constitutional Court Judgment No. 13 of 2002, promulgated in No. 118 of 2002; amended in Nos. 61 and 112 of 2003, Nos. 29, 36 and 70 of 2004; modified by Constitutional Court Judgment No. 4 of 2004, promulgated in No. 93 of 2004; modified by Constitutional Court Judgment No. 4 of 2005, promulgated in No. 37 of 2005; amended in Nos. 43 and 86 of 2005, No. 17 of 2006; modified by Constitutional Court Judgment No. 1 of 2006, promulgated in No. 23 of 2006; amended in Nos. 30 and 39 of 2006) in Article 175 (2), Article 176 (3), Article 181 (4) and Article 182, the words "Articles 41 to 52" shall be replaced by "Articles 37 to 58". 56. In the Commercial Register Act (Promulgated in the State Gazette No. 34 of 2006; amended in Nos. 80 and 105 of 2006) in sentence one of Article 25 (4), the words "Chapter Twenty A" shall be replaced by "Chapter Twenty One "Appellate Review of Rulings"". 57. The Private Enforcement Agents Act (Promulgated in the State Gazette No. 43 of 2005; amended in No. 39 of 2006, No. 31 of 2007) shall be amended as follows:1. Article 15 shall be repealed.2. In Article 16: (a) Paragraph (1) shall be repealed;(b) the existing Paragraph (2) shall be renumbered to become Paragraph (1);(c) the existing Paragraph (3) shall be renumbered to become Paragraph (2), and the figure "2" therein shall be replaced by "under Article 431 (3) of the Code of Civil Procedure".3. In Article 18: (a) in Paragraph (4), in sentence one the words "Article 414" shall be replaced by "Article 521", and in sentence two, the words "Articles 357 and 358" shall be replaced by "Articles 462 and 463";(b) Paragraph (5) shall be amended to read as follows:"(5) Acting on a court order, a private enforcement agent may serve notices and summonses in civil cases."4. In Article 19 (3), the words "Article 12" shall be replaced by "Article 22".5. In Article 43, the words "Articles 41 to 52" shall be replaced by "Articles 37 to 58".6. Article 54 shall be amended to read as follows:"Coercive EnforcementArticle 54. In respect of the sums due under an effective decision of the General Meeting, the Chamber shall have the option to move for the issuance of an enforcement order under Article 410 (1) of the Code of Civil Procedure regardless of the amount of the said sums."7. In Article 71 (5), the words "Articles 165 to 170" shall be replaced by "Articles 207 to 209".8. In Article 79, Paragraph (3) shall be amended to read as follows:"(3) In respect of any fees and costs outstanding and not paid, the private enforcement agent shall have the option to move for the issuance of an enforcement order under Article 410 (1) of the Code of Civil Procedure regardless of the amount of the said fees and costs." 58. The Commerce Act (Promulgated in the State Gazette No. 48 of 1991; amended in No. 25 of 1992, Nos. 61 and No. 103 of 1993, No. 63 of 1994, No. 63 of 1995, Nos. 42, No. 59, 83, 86 and 104 of 1996, Nos. 58, 100 and 124 of 1997, Nos. 52 and No. 70 of 1998, Nos. 33, 42, 64, 81, 90, 103 and 114 of 1999, No. 84 of 2000, Nos. 28, 61 and 96 of 2002, Nos. 19, 31 and 58 of 2003, Nos. 31, 39, 42, 43, 66, 103 and 105 of 2005, Nos. 38, 59 and 105 of 2006) shall be amended and supplemented as follows:1. In Article 70 (6), the words "Article 498" shall be replaced by "Article 605".2. In Article 74, there shall be added a new Paragraph (4) to read as follows:"(4) The action shall be examined according to the procedure established by Chapter Thirty-Three "Proceedings on Class Actions" of the Code of Civil Procedure, where the contested resolution has been passed by the general meeting of a joint-stock company with issued bearer shares or by an investment company of the open-end type. Exclusion from participation shall not be granted in this case."3. In Article 232 (4), the words "Article 488a" shall be replaced by "Article 583".4. In Article 263n (5), the words "Twelve A "Summary Proceedings" of the Code of Civil Procedure, and Article 126e shall not apply" shall be replaced by "Thirty-Two "Proceedings on Commercial Disputes" of the Code of Civil Procedure".5. In Article 264k (5), the words "Twelve A "Summary Proceedings" of the Code of Civil Procedure, and Article 126e shall not apply" shall be replaced by "Thirty-Two "Proceedings on Commercial Disputes" of the Code of Civil Procedure".6. In Article 581 (1), the words "Article 456" shall be replaced by "Article 560".7. In Article 613a: (a) in Paragraph (1), the words "before the Supreme Court of Cassation following the rules set out in Chapter Nineteen A of" shall be replaced by "according to the standard procedure established by";(b) in Paragraph (3), the words "Chapters Eighteen and Nineteen" shall be replaced by "Chapter Twenty "Intermediate Appellate Review"".8. Article 708 shall be amended to read as follows:"Collection of Transformed ClaimArticle 708. On the basis of the plan as endorsed by the court, the creditor shall have the option to move for the issuance of an order under Article 410 (1) of the Code of Civil Procedure for enforcement of the transformed claim regardless of the amount of the said claim." 59. In the Family Code (Promulgated in the State Gazette No. 41 of 1985; amended in No. 11 of 1992; corrected in No. 15 of 1992; amended in Nos. 63 and 84 of 2003, No. 42 of 2005, No. 30 of 2006) Article 79 shall be amended and supplemented as follows:1. The existing text shall be redesignated to become Paragraph (1).2. There shall be added a new Paragraph (2) to read as follows:"(2) The actions for support and for an increase of support shall be examined according to the procedure established by Chapter Twenty-Five "Summary Proceedings" of the Code of Civil Procedure." 60. (Effective 24.07.2007 - SG No. 59/2007) Within three months after the promulgation of this Code in the State Gazette, the Council of Ministers shall lay before the National Assembly drafts of acts to amend and supplement the law whose provisions must be brought into conformity with this Code. 61. This Code shall enter into force on the 1st day of March 2008, with the exception of:1. Part Seven "Special Rules Regarding Proceedings on Civil Cases Subject to Operation of Community Law";2. 2 (4);3. 3 in respect of the repeal of Chapter Thirty-Two A "Special Rules for the Recognition and Admission for Enforcement of Decisions of Foreign Courts and of Other Foreign Bodies" with Articles 307a to 307e and Part Seven "Proceedings Concerning Return of a Child or Exercise of the Right of Access" with Articles 502 to 507;4. 4 (2);5. 24;6. 60,which shall enter into force three days after the promulgation of this Code in the State Gazette. For more information visit www.solicitorbulgaria.com id: 319 Fri, 01 Aug 2008 06:44:06 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-code-of-civil-procedure-part-4 http://web.solicitorbulgaria.com/index.php/bulgarian-code-of-civil-procedure-part-4 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/CODE_OF_CIVIL_PROCEDURE1.JPG EUR http://web.solicitorbulgaria.com/index.php/bulgarian-code-of-civil-procedure-part-4 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) PART ONEGENERAL RULESChapter OneBASIC PROVISIONSSubject MatterArticle 1. This Code regulates proceedings in the matter of civil cases.Due Protection and FacilitationArticle 2. Courts shall be obligated to examine and adjudicate in each petition submitted thereto for protection and facilitation of personal and property rights.Good FaithArticle 3. The persons participating in court proceedings and the representatives thereof, on pain of liability for damages, shall be obligated to exercise the procedural rights conferred thereon in good faith and in compliance with good morals. The said persons shall be obligated to present to the court nothing but the truth.Court Language, Oral Interpreters and Sign-Language InterpretersArticle 4. (1) Court proceedings shall be conducted in the Bulgarian language.(2) Where any persons participating in the case have no command of the Bulgarian language, the court shall appoint an oral interpreter with the assistance of whom such persons shall perform the… For more information visit http://www.solicitorbulgaria.com id: 322 PART ONEGENERAL RULESChapter OneBASIC PROVISIONSSubject MatterArticle 1. This Code regulates proceedings in the matter of civil cases.Due Protection and FacilitationArticle 2. Courts shall be obligated to examine and adjudicate in each petition submitted thereto for protection and facilitation of personal and property rights.Good FaithArticle 3. The persons participating in court proceedings and the representatives thereof, on pain of liability for damages, shall be obligated to exercise the procedural rights conferred thereon in good faith and in compliance with good morals. The said persons shall be obligated to present to the court nothing but the truth.Court Language, Oral Interpreters and Sign-Language InterpretersArticle 4. (1) Court proceedings shall be conducted in the Bulgarian language.(2) Where any persons participating in the case have no command of the Bulgarian language, the court shall appoint an oral interpreter with the assistance of whom such persons shall perform the court procedural steps and shall be provided with an explanation of the steps taken by the court.(3) Where a deaf or a mute person participates in the case, a sign-language interpreter shall be appointed thereto.Chapter TwoFUNDAMENTAL PRINCIPLESLegalityArticle 5. The court shall examine and adjudicate in cases according to the precise meaning of the laws, and where the laws are deficient, obscure or conflicting, according to the common sense thereof. In the absence of an applicable law, the court shall found the judgment thereof on the fundamental principles of law, custom and ethics.Dispositive PrincipleArticle 6. (1) Court proceedings shall commence on a petition by the interested party or on a motion by the prosecutor in the cases specified by a law.(2) The subject matter of the case and the amount of the protection and facilitation due shall be determined by the parties.Ex Officio PrincipleArticle 7. (1) The court shall perform ex officio the procedural steps necessary for the progress and close of the case and shall see to the admissibility and due performance of the procedural steps by the parties. The court shall facilitate the parties to clarify the factual and legal aspects of the case.(2) The court shall serve upon the parties a transcript of the acts which are subject to appellate review by separate appeal.Adversarial PrincipleArticle 8. (1) Each party shall have the right to be heard by the court before rendition of an act relevant to the rights and interests of the said party.(2) The parties shall indicate the facts underlying the demands thereof and shall present evidence supporting the said facts.(3) The court shall afford the parties an opportunity to familiarize themselves with the demands and arguments of the opposing party, with the subject matter of the case and the progress thereof, as well as to express a stand on the said demands, arguments and subject matter.Equality of PartiesArticle 9. The court shall afford the parties an equal opportunity to exercise the rights conferred thereon. The court shall apply the law equally in respect of all.Establishment of the TruthArticle 10. The court shall afford the parties an opportunity and shall facilitate the parties to establish the facts relevant to adjudication of the case.Publicity and ImmediacyArticle 11. Cases shall be examined orally in public session, save as where a law provided that such examination take place in camera.Inner ConvictionArticle 12. The court shall weigh all evidence in the case and the arguments of the parties, guided by its inner conviction.Examination and Adjudication of Cases within Reasonable TimeArticle 13. The court shall examine and adjudicate in the cases within a reasonable period of time.Chapter ThreeJURISDICTIONJurisdiction over Civil CasesArticle 14. (1) The courts shall have jurisdiction over all civil cases.(2) The court shall have discretion to determine whether a case instituted is entertainable thereby.(3) No other institution shall have the right to admit for examination a case which is already being examined by the court.Verification of JurisdictionArticle 15. (1) The question of whether a case instituted is under the jurisdiction of the court may be raised either by the parties or ex officio by the court during any stage of the proceeding, save as where a time limit for this is established in a law.(2) The ruling of the court on this issue shall be appealable by an interlocutory appeal.Jurisdiction DisputeArticle 16. Where the courts and the other institutions have refused to examine a case by reason of declining jurisdiction, the plaintiff may bring a jurisdiction dispute before the Supreme Court of Cassation.Competence over Pre-conditioning QuestionsArticle 17. (1) The court shall take a stand on all questions which are relevant to adjudication of the case, with the exception of the question as to whether a criminal offence has been committed.(2) The court shall pronounce on the validity of administrative acts as an incidental question regardless of whether the said acts are subject to judicial review. The court may not pronounce on the legal conformity of administrative acts as an incidental question, save as where any such act is opposed to a party to the case who did not participate in the administrative proceeding for the issuing and appellate review of the said act.Judicial ImmunityArticle 18. (1) The Bulgarian court shall be competent to examine actions where to a foreign State, as well as a person enjoying judicial immunity, is a party in the following cases:1. where judicial immunity is waived;2. under actions based on contractual relations, where the obligation is performed in the Republic of Bulgaria;3. under actions for damages sustained as a result of a tort or delict where the harmful act was committed in the Republic of Bulgaria;4. under actions regarding rights to succession property and vacant succession in the Republic of Bulgaria;5. under cases which are under the exclusive jurisdiction of the Bulgarian courts.(2) The provisions of Items 2, 3 and 4 of Paragraph (1) shall not apply to any legal transactions and moves performed in execution of official functions of the persons or, respectively, in connection with the exercise of sovereign rights of the foreign State.Arbitration AgreementArticle 19. (1) The parties to a property dispute may agree that the said dispute be settled by an arbitration court, unless the said dispute has as its subject matter any rights in rem or possession of a corporeal immovable, maintenance obligations or rights under an employment relationship.(2) The arbitration may have a seat abroad if one of the party has his, her or its habitual residence, registered office according to the basic instrument thereof or place of the actual management thereof abroad.Chapter FourCOURTSCourt PanelArticle 20. First-instance cases shall be examined by a one-judge panel, and intermediate appellate review cases and cassation cases shall be examined by a three-judge panel, including a presiding judge.DeliberationArticle 21. (1) The deliberation and the voting of the court panel shall be moderated by the presiding judge and shall be conducted in camera.(2) None of the judges may abstain from voting.(3) The members of the panel shall vote in the order of seniority. The first to vote shall be the junior member, and the presiding judge shall vote last.(4) Where, upon adjudication of the case on the merits, the court has to pronounce on several actions, a separate vote shall be taken on each of the said actions.(5) Judgments of the court shall be adopted by a majority of the votes of the judges.(6) Any judge who dissents from the opinion of the majority shall sign the judgment, reasoning separately for his or her dissenting opinion.Grounds for RecusalArticle 22. (1) Participation in a case as a judge shall be inadmissible for any person:1. who is a party to the case or, together with any of the parties to the case, has entered into the legal relation at issue or into a legal relation linked thereto;2. who is a spouse of or a lineal relative up to any degree of consanguinity, or a collateral relative up to the fourth degree of consanguinity, or an affine up to the third degree of affinity, to any of the parties or to any representative of any such party;3. who is a de facto cohabitee with any party to the case or with any representative of any such party;4. who has been a representative or an attorney-in-fact, as the case may be, of any party to the case;5. who has taken part in adjudication in the case in a court of another instance or who has been a witness or an expert witness in the case;6. in respect of whom other circumstances exist which give rise to reasonable doubts as to the impartiality of the said person.(2) The judge shall be obligated to exclude himself or herself in the cases covered under Items 1 to 5 of Paragraph (1), and should he or she decline the recusal under Item 6 of Paragraph (1), to disclose the circumstances.Recusal ProcedureArticle 23. (1) Each of the parties may move for exclusion during a hearing after the grounds for exclusion have arisen or have become known.(2) The court shall determine the question of the exclusion with the participation of the judge in respect of whom the motion was made.(3) If, owing to the exclusion of judges, the examination of the case at the relevant court is impossible, the superior court shall decree the transmittal of the case for examination to another court of equal rank.Recusal of Other OfficialsArticle 24. The prosecutor and the clerk of court may be excluded on the grounds covered under Article 22 (1) herein.Rogatory CommissionsArticle 25. (1) Where evidence has to be taken outside the geographical jurisdiction of the court, the court may commission the territorial regional court to take the said evidence.(2) The court shall communicate to the commissioned court the time limit where within the evidence must be taken and, if possible, the day of the next succeeding hearing of the case.(3) The commissioned court shall notify the commissioning court forthwith of all circumstances which delay or impede the fulfilment of the commission.(4) The commissioned court shall render a ruling on all questions in connection with the fulfilment of the commission.Chapter FivePARTIES. REPRESENTATIONPartiesArticle 26. (1) Parties to civil cases shall be the persons who or which sue and who or which are sued.(2) Save in the cases provided for by a law, no one may claim under another's rights on one's own behalf before a court of law.(3) A prosecutor may participate in the proceeding, enjoying the rights of a party, in the cases provided for by a law. A prosecutor may not perform any steps which constitute disposition of the subject matter of the case.(4) In a case under which any person claims under another's right, the person under whose right the first-mentioned person claims shall likewise be summoned as a party.Capacity to Have Procedural Rights and DutiesArticle 27. (1) A person shall be capable of having procedural rights and duties if the said person is of full capacity to have rights and duties under the substantive law.(2) The government institutions which are spending units shall likewise be capable of having procedural rights and duties. If a government institution is not a spending unit, the court procedural steps shall be performed by and against the superior institution which is a spending unit.Procedural Capacity to SueArticle 28. (1) The natural persons of full capacity to act shall perform procedural steps at court in person.(2) Minors and limited interdicts shall perform procedural steps at court in person, but with the consent of the parents or curators thereof.(3) Minors may sue in person for any disputes over employment relationships or for any disputes arising from transactions referred to in Article 4 (2) of the Persons and Family Act, as well as in other cases specified by a law.(4) Minors and full interdicts shall be represented by the legal representatives thereof: parents or tutors.Ad Hoc Procedural RepresentationArticle 29. (1) Absent persons unheard of shall be represented by representatives thereof appointed by the court, and persons declared absent shall be represented by the heirs where to possession has been delivered.(2) The party who wishes to perform a procedural step which brooks no delay in respect of any person who lacks procedural capacity to sue and who does not have a legal representative or curator, may approach the court where before the case is pending with a motion to appoint an ad hoc representative of the said party. In such case, the costs shall be initially borne by the said party.(2) A person whose permanent and current address is unknown shall be represented by a person expressly appointed by the court. In such case, the costs shall be initially borne by the opposing party.(4) If there is a conflict between the interests of a represented person and a representative, the court shall appoint an ad hoc representative. In such case, the court, acting according to the circumstances, shall rule whether the costs shall be initially borne by the represented person or by the representative.(5) The ad hoc representative may perform steps for which an express power of attorney is required solely with the approval of the court where before which the case is pursued.Representation of Legal PersonsArticle 30. (1) Legal persons shall be represented before the courts by the persons who represent the said persons by law or according to the rules of organization thereof.(2) In the absence of a rule for representation, the legal person shall be represented by two members of the management thereof.(3) Government institutions shall be represented by the heads thereof according to the rules of organization of the said institutions.(4) Municipalities shall be represented by the mayors.Representation of the StateArticle 31. (1) The State shall be represented by the Minister of Finance, unless otherwise provided for in a law.(2) In cases concerning corporeal immovables constituting state property, the State shall be represented by the Minister of Regional Development and Public Works.Representation Per ProcurationemArticle 32. The following may be representatives of the parties by authorization:1. the lawyers;2. the parents, the children or the spouse;3. the legal advisers or other employees possessing legal qualifications at the institutions, the enterprises, the legal persons and the sole trader;4. the regional governors, authorized by the Minister of Finance or by the Minister of Regional Development and Public Works, in the cases referred to in Article 31 herein;5. other persons provided for in a law.Power of AttorneyArticle 33. The attorneys-in-fact shall identify themselves by means of a power of attorney signed by the party or by the representative thereof. The power of attorney shall state the forename, patronymic and surname, the exact address and telephone number of the attorney-in-fact. Authorization may furthermore be made orally before the court, and shall be included in the judicial record of the court hearing.Representative AuthorityArticle 34. (1) A general power of attorney shall confer a right to perform all procedural steps at court, including receipt of costs deposited and sub-delegation.(2) Bringing actions for civil status, including matrimonial actions, shall require an express power of attorney.(3) Conclusion of a settlement, diminution of the demand, withdrawal from or abandonment of the action, acknowledgment of the demands of the other party, receipt of money or of other valuables, as well as any steps constituting disposition of the subject matter of the case, shall require an express power of attorney.(4) A power of attorney shall remain valid until completion of the case in the courts of all instances, unless otherwise agreed.Withdrawal of AuthorizationArticle 35. The principal shall have the right to withdraw at any time the authorization granted thereby, notifying the court thereof, but this shall not stay the examination of the case. All steps performed lawfully by the attorney-in-fact until withdrawal of the power of attorney shall remain valid.Adjournment of Case upon Termination of AuthorizationArticle 36. In the event of death, mental derangement or deprivation of rights of the principal, as well as upon renunciation of the authorization thereof, of which the said principal has notified the court, the proceeding in the matter of the case shall not be stayed but examination of the case may be adjourned for another hearing if the court determines that these circumstances could not have become known to the party or that the party has learnt of the said circumstances too late to be able to replace the attorney-in-fact in due time.Chapter SixCOMMUNICATIONS AND SUMMONSESSection ICommunicationsAddresseeArticle 37. Addressee shall be the person wherefore the communication is destined.Address for ServiceArticle 38. A communication shall be served at the address named under the case. Where the addressee has not been found at the address named, the communication shall be served at the current address of the said addressee, and in the absence of a current address, at the permanent address.Service upon RepresentativeArticle 39. (1) Where the party has named a person for service of communications in the seat of the court (a legal addressee), or where the party has an attorney-in-fact for the case, service shall be effected upon the said person or upon the attorney-in-fact.(2) Where several plaintiffs or respondents have named a shared legal addressee or have a shared attorney-in-fact in the seat of the court, a single communication shall be issued for all persons, wherein the names thereof shall be stated.(3) If there are multiple plaintiffs or respondents, where the interests thereof are not conflicting, the court, acting either on a motion by the opposing party or at its own discretion, may order the said plaintiffs or respondents to name one of them or another person as a shared legal addressee. Upon failure to comply with this obligation, the court may appoint a representative of the said plaintiffs or respondents for service of papers at their own expense and risk.(4) Where the addressee lacks procedural capacity to sue, the communication shall be served upon the legal representative thereof.Legal AddresseeArticle 40. (1) Any party, who resides abroad or leaves the country for more than one month, shall be obligated to name a person in the seat of the court for service of communications: a legal addressee, if the said party does not have an attorney-in-fact for the case in the Republic of Bulgaria. The same obligation shall apply to the legal representative, the curator and the attorney-in-fact of any such party.(2) Where the persons referred to in Paragraph (1) fail to name a legal addressee, all communications shall be filed with the case records and shall be presumed served. The said persons must be warned of these consequences by the court upon service of the first communication.Obligation to NotifyArticle 41. (1) Any party, who is absent for more than one month from the address which the said party has communicated under the case or whereat a communication has been served thereon once, shall be obligated to notify the court of the new address thereof. The same obligation shall furthermore apply to the legal representative, the curator and the attorney-in-fact of any such party.(2) Upon failure to comply with the obligation referred to in Paragraph (1), all communications shall be filed with the case records and shall be presumed served. The said persons must be warned of these consequences by the court upon service of the first communication.ServerArticle 42. (1) Communications shall be served by a court official, by post or through a courier service by means of a registered item with an addressee's acknowledgment of receipt. Where there is no court institution in the place of service, service may be effected care of the municipality or the mayoralty.(2) On a motion by the party, the court may order that communications be served by a private enforcement agent. The costs of the private enforcement agent shall be borne by the party.(3) Where the communication has not been served in another manner, the court may decree, as an exception, that service be effected by a court official by means of telephone, telex, telefax or by telegram.(4) Communications may furthermore be served upon the party at an electronic address named thereby. Any such communications shall be presumed served upon the receipt thereof in the named information system.Manner of ServiceArticle 43. (1) A communication shall be served personally or through another person.(2) The court may order that service be effected by means of filing of the communication with the case records or by means of posting of a notification.(3) The court may order that service be effected by means of publication.Attestation of ServiceArticle 44. (1) The server shall attest, by the signature thereof, the date and the manner of service, as well as all steps in connection with the service. The server shall furthermore note the capacity of the person whereupon the communication has been served. The recipient shall likewise attest, by the signature thereof, that the said recipient has received the communication. A refusal to accept a communication shall be noted on the receipt and shall be attested by the signature of the server. The refusal of the recipient shall not affect the dueness of the service.(2) Service by telephone or by telefax shall be attested in writing by the server, and service by telegram shall be attested by an advice of delivery of the said telegram, and where service has been effected by means of telex, service shall be attested by a written confirmation of delivery of the message. Service by post shall be attested by the addressee's acknowledgment of receipt.(3) Service at an electronic address shall be attested by a copy of the electronic record of the service.(4) The receipt attesting service by a court official or by a private enforcement agent, the addressee's acknowledgment of receipt attesting service by a postal officer, the advice of delivery of a telegram, as well as the written confirmation of delivery of a message by telex, shall be returned to the court immediately after being drafted.Personal ServiceArticle 45. A communication shall be served upon the addressee personally. Service upon a representative shall be considered personal service.Service upon Another PersonArticle 46. (1) Where a communication cannot be served upon the addressee personally, the said communication shall be served upon another person who is willing to accept it.(2) Another person may be any member of the household or any person who resides at the address, or who is a factory or office worker employed by or, respectively, an employer of the addressee and who has attained the age of 18 years. The person where through service is effected shall sign the receipt, undertaking to pass the summons to the addressee. Service may not be effected upon persons who participate in the case as an opposing party to the addressee.(3) The court shall exclude from the range of other persons those who are interested in the outcome of the case or who are expressly named in a written statement by the addressee. These persons shall be listed in the communication and in the addressee's acknowledgment of receipt.(4) Upon receipt of the communication by the other person, service shall be presumed effected upon the addressee. The addressee may move for resumption of the time limit if the addressee was absent from the address and was unable to learn of the service in due time. The time limit referred to in Article 64 (2) herein shall begin to run as from the time when the addressee was able to learn of the service.Service through Posting of NotificationArticle 47. (1) Where the respondent cannot be found at the address named under the case and a person willing to accept the communication cannot be found, the server shall post a notification on the door or on the mailbox, and where no access is afforded thereto, on the front door or in a conspicuous place around the front door. Where the mailbox is accessible, the server shall place a notification therein as well.(2) The notification shall state that the papers have been left at the office of the court, where service is effected through a court official or a private enforcement agent or, respectively, at the municipality, where service is effected through a municipal official, as well as that the said papers can be claimed there within two weeks after the posting of the notification.(3) Where the respondent does not present himself or herself to claim the papers, the court shall instruct the plaintiff to present a statement of search of records regarding the residence registration of the respondent, except in the cases referred to in Article 40 (2) and Article 41 (1) herein, when the communication shall be filed with the case records. If the address named in the statement is other than the permanent and current address of the party, the court shall order service at the current or permanent address according to the procedure established by Paragraphs (1) and (2).(4) Where the server finds that the respondent does not reside at the address named, the court shall instruct the plaintiff to present a statement of search of records regarding the residence registration of the respondent notwithstanding the posting of the notification under Paragraph (1).(5) The communication shall be presumed served upon expiry of the time limit for claiming the said communication from the office of the court or the municipality.(6) Having established that the service has been duly effected, the court shall order that the communication be filed with the case records and shall appoint an ad hoc representative at the expense of the plaintiff.(7) The provisions of Paragraphs (1) to (5) shall apply, mutatis mutandis, to the service of communications on an assisting party.(8) The provisions of Paragraphs (1) and (2) shall apply to the service of communications on a witness, an expert witness and a person who does not participate in the case, with any such communication being deposited in the mailbox and, where no access is afforded thereto, through posting of a notification.Service through PublicationArticle 48. (1) If, when the case is instituted, the respondent does not have a registered permanent or current address, on a motion by the plaintiff, service shall be effected through publication in the Unofficial Section of the State Gazette, performed at least one month before the hearing. The court shall authorize the effecting of service according to this procedure after the plaintiff certifies by a statement of search of records that the respondent does not have a residence registration and the plaintiff confirms by a declaration that the said plaintiff is not aware of the address of the respondent abroad.(2) If, despite the publication, the respondent fails to appear in court upon examination of the case, the case shall appoint an ad hoc representative of the said respondent at the expense of the plaintiff.Place of ServiceArticle 49. The place of service shall be the residence, the weekend house, the place of employment, the place of civil service, the registered office, the place of implementation of economic activity or another place which is inhabited by the addressee, as well as any other place wherein the addressee can be found.Service upon Merchants and Legal PersonsArticle 50. (1) The place of service of a merchant and of a legal person which is recorded in the relevant register shall be the last address named in the register.(2) If the person has left the address thereof and the new address thereof is not recorded in the register, all communications shall be filed with the case records and shall be presumed duly served.(3) Service upon merchants and upon legal persons shall take place at the offices thereof and may be effected upon each office or factory worker who is willing to accept them. Upon attestation of the service, the server shall indicate the names and position of the recipient.(4) Where the server does not obtain access to the office and does not find a person willing to accept the communication, the server shall post a notification under Article 47 (1) herein. A second notification shall not be posted.Service upon LawyerArticle 51. (1) Service upon a lawyer shall be effected personally at the office of the said lawyer or in any place where the said lawyer is on business. Service at the office may be effected upon any person who works for or assists the lawyer. Upon attestation of the service, the server shall indicate the name and capacity of the recipient.(2) Where a person to receive the communication cannot be found at the lawyer's office, the server shall post a notification under Article 47 (1) herein. A second notification shall not be posted.(3) The lawyer may not refuse to receive a communication of a client thereof, except after withdrawal of the power of attorney according to the procedure established by Article 35 herein, renunciation of authorization under Article 36 herein, as well as where the power of attorney unambiguously shows that it does not refer to the court of the instance where to the summoning applies. A refusal of the lawyer to accept the communication shall be noted in the receipt and shall be attested by the signature of the server. Any such refusal shall not affect the dueness of the service.Service upon Government Institutions and MunicipalitiesArticle 52. Government institutions and municipalities shall be obligated to ensure an official to accept communications within normal business hours.Service upon Foreigners Resident in BulgariaArticle 53. Service upon foreigners resident in Bulgaria shall be effected at the address stated to the relevant administrative services.Cure of Non-conformities upon ServiceArticle 54. If there are any non-conformities upon the service, the said service shall be presumed effected at the time at which the communication actually reached the addressee.Standard FormsArticle 55. The Minister of Justice shall issue an ordinance endorsing thereby the standard forms of all papers related to service.Section IISummoningSummonsesArticle 56. (1) The court shall summon the parties for the hearings of the case.(2) Upon adjournment of the case, the parties who are duly summoned shall not be summoned for the next succeeding hearing where the date of the said hearing has been announced during the hearing.(3) Summoning shall be effected not later than one week before the hearing. This rule shall not apply in the enforcement procedure.Summons: ContentArticle 57. A summons shall state:1. the issuing court;2. the name and address of the person summoned;3. the case and the capacity in which the person is summoned;4. the place and time of the hearing, and5. the legal consequences of non-appearance.Procedure for Service of SummonsesArticle 58. Summonses under a case shall be served according to the procedure applicable to service of communications.Chapter SevenTIME LIMITS AND RESUMPTION OF TIME LIMITSSection ITime LimitsSetting of Time LimitsArticle 59. The time limits in the procedure, which are not established by the law, shall be set by the court.Calculation of Time LimitsArticle 60. (1) A time limit shall be calculated in years, months, weeks and days.(2) A time limit which is counted in years shall expire on the respective day of the last year, and if the month in the last year lacks a respective day, the time limit shall expire on the last day of the said month.(3) A time limit which is counted in months shall expire on the respective day of the last month, and if the last month lacks a respective day, the time limit shall expire on the last day of the said month.(4) A time limit which is counted in weeks shall expire on the respective day of the last week.(5) A time limit which is counted in days shall be calculated as from the day next succeeding the day from which the time limit begins to run, and shall expire at the end of the last day.(6) Where the last day of a time limit is a non-working day, the time limit shall expire on the first next succeeding working day.Suspension of Time LimitArticle 61. As the proceeding is stayed, all time limits which have begun to run but have not expired shall be suspended. In such case, the suspension of the time limit shall begin as from the event in connection with which the proceeding has been stayed.Expiry of Time LimitArticle 62. (1) The last day of the time limit shall continue until the end of the twenty-four hour, but if any step has to be performed or if anything has to be presented in court, the time limit shall expire at the time of close of normal business hours.(2) A time limit shall not be considered exceeded where the petition has been dispatched by post. A time limit shall not be considered exceeded, either, where the petition has been submitted to another court or to the prosecution office within the time limit, except where submitted by electronic means.(3) Where the court sets a time limit longer than the time limit established by a law, a step performed after the expiry of the statutory time limit but before the expiry of the time limit set by the court shall not be considered overdue.Extension of Time LimitArticle 63. (1) The statutory time limits and the time limits set by the court may be extended by the court on a petition by the interested party submitted before the expiry of the time limits, if there are valid reasons.(2) The newly set time limit may not be shorter than the initial time limit. An extension of the time limit shall run as from the expiry of the initial time limit.(3) Paragraph (1) shall not apply to the time limits for appellate review and for submission of a petition for a reversal of an effective judgment.Section IIResumption of Time LimitsConditionsArticle 64. (1) Any procedural steps performed after the expiry of the time limits as set shall be ignored by the court.(2) A party, which has exceeded any time limit established by the law or set by the court, may move for resumption of the said time limit if the said party proves that the excess was due to special unforeseen circumstances which the said party was unable to overcome.(3) The petition for resumption shall be submitted within one week after the communication of the excess of the time limit. Resumption shall not be granted if extension of the time limit for performance of the omitted step was possible.(4) The time limit for submission of a petition for resumption of a time limit may not be extended.Petition for ResumptionArticle 65. (1) The petition shall state:1. all circumstances which justify the petition;2. all items of evidence proving that the petition is well-founded.(2) Any papers for the issuing whereof a resumption of the time limit is required shall be submitted simultaneously with the petition for resumption of the time limit, and where the time limit is for depositing of amounts for costs, the court shall set a new time limit for depositing the said amounts.(3) Submission of the petition shall not suspend the course of the proceedings.ProcedureArticle 66. (1) The petition shall be submitted accompanied by a transcript for the opposing party, who may give an answer within one week. The petition shall be examined in public session.(2) An interlocutory appeal may be lodged against a ruling whereby resumption of the time limit is refused.(3) Where granting of the petition necessitates the holding of a public court session, the court may, where necessary, vacate the steps performed before resumption of the time limit.CostsArticle 67. All costs, which have arisen for the opposite party from the excess of the time limit and in the proceeding for resumption of the time limit, shall be borne by the petitioner.Chapter EightFEES AND COSTSSection ICost of ActionCost of ActionArticle 68. The value of the subject matter of the case, appraised in money, shall be the cost of action.Cost of Action: AmountArticle 69. (1) The amount of the cost of action shall be:1. in actions for pecuniary receivables: the sum claimed;2. in actions for ownership and other rights in rem to an immovable: the tax assessed value or, in the absence of such value, the market price of the right in rem;3. in actions for disturbed possession: one-fourth of the amount referred to in Item 2;4. in actions for existence, for annulment or for rescission of a contract and for conclusion of a final contract: the value of the contract, and where the contract has, as a subject matter, any rights in rem to an immovable, the amounts referred to in Item 2;5. in actions for existence or termination of a lease contract: the rent for one year;6. in actions for term annuities: the sum total of all payments;7. in actions for perpetual annuities or for life annuities: the sum total of the payments for three years.(2) In actions which are not specified under Paragraph (1), the court shall determine the initial cost of action.Cost of Action: DeterminationArticle 70. (1) The cost of action shall be named by the plaintiff. An issue of the cost of action may be raised either by the respondent or ex officio by the court at the latest during the first hearing for examination of the case. In the event of discrepancy between the cost named and the actual cost, the court shall determine the cost of action.(2) The ruling of the court, whereby the cost of action is increased, shall be appealable by an interlocutory appeal.(3) In actions where under an appraisal gives rise to difficulties at the time when the action is brought, an approximate cost of action shall be determined by the court and an additional fee shall subsequently be charged or the over collected fee shall be refunded depending on the cost which the court determines upon adjudication of the case.Section IIStamp Duties and CostsIncurrence of Fees and CostsArticle 71. (1) Stamp duties on the cost of action and court costs shall be collected upon conduct of the case. Where the action is unappeasable, the amount of the stamp duty shall be determined by the court.(2) Where the subject matter of the case is a right of ownership or other rights in rem to an immovable, the amount of the stamp duty shall be determined on one-fourth of the cost of action.Stamp Duties upon Joinder of ActionsArticle 72. (1) In cumulatively joined actions brought by a single petition, stamp duty shall be collected for each action.(2) In alternatively or eventually joined actions brought by a single petition against a single person, stamp duty shall be collected for a single action.(3) In alternatively or eventually joined actions against multiple persons, stamp duty shall be collected for the actions against each person.Stamp DutyArticle 73. (1) There shall be simple and proportionate stamp duties.(2) Simple duties shall be determined on the basis of the material, technical and administrative expenses required for the proceeding. Proportionate taxes shall be determined on the basis of the proprietary interest.(3) The stamp duty shall be collected upon presentation of a motion for protection or facilitation and upon the issuing of the document for which duty is paid, according to a rate schedule adopted by the Council of Ministers.Modification of DemandArticle 74. Upon diminution of the demand, the stamp duty paid shall not be refunded. Upon increase of the demand, the stamp duty on the difference shall be paid additionally.Determination of CostsArticle 75. The remuneration of witnesses shall be determined by the court considering the time allocated and the expenses incurred, and the remuneration of expert witnesses shall be determined by the court considering the work done and the expenses incurred.Advance Deposit for CostsArticle 76. Each party shall make an advance deposit to the court for the costs for the steps which the said party has moved for. The amounts for costs for steps on a motion by both parties or on the initiative of the court shall be deposited by both parties or by one party depending on the circumstances.Coercive Collection of CostsArticle 77. If any costs remain due by a party, the court shall render a ruling on the coercive collection of the said costs.Award of CostsArticle 78. (1) The fees paid by the plaintiff, the costs of the proceeding and the fees for one lawyer, if any, shall be paid by the respondent commensurate to the portion of the action granted.(2) If the respondent has not provided an occasion for institution of the case by the behaviour thereof or if the respondent acknowledges the demand, the costs shall be awarded against the plaintiff.(3) The respondent, too, shall have the right to move for payment of the costs incurred thereby commensurate to the portion of the action dismissed.(4) The respondent shall be entitled to costs even upon dismissal of the case.(5) If the fees for a lawyer paid by the party are excessive considering the actual legal and factual complexity of the case, the court, acting on a motion by the opposing party, may award a lower amount of the costs in this part, but not less than the minimum amount set according to Article 36 of the Bar Act. (6) Where the case has been adjudicated in favour of a person for whom payment of stamp duty or of costs of the proceeding is waived, the person found against shall be obligated to pay all fees and applicable costs due. The respective amounts shall be awarded in favour of the court.(7) If the claim of a recipient of legal aid is granted, the lawyers' fees paid shall be awarded in favour of the National Legal Aid Office commensurate to the portion of the action granted. In the cases of a judgment adverse to the recipient of legal aid, the said recipient shall owe costs commensurate to the portion of the action dismissed.(8) A lawyer's fee shall be awarded, inter alia, in favour of legal persons and sole traders, if the said persons and traders have been defended by a legal adviser.(9) Upon conclusion of the case by a settlement, half of the stamp duty deposited shall be refunded to the plaintiff. The costs of the proceeding and of the settlement shall be borne by the parties who incurred the said costs, unless otherwise agreed.(10) A third-party intervenor shall not be awarded costs, but any such intervenor shall owe the costs inflicted by the procedural steps thereof.(11) Where the prosecutor participates in the case as a party, the costs due shall be awarded to the State or shall be paid thereby.Costs of EnforcementArticle 79. (1) The costs of enforcement shall be borne by the State except in the cases where:1. the case is dismissed according to Article 433 herein, except by reason of a payment effected after commencement of the enforcement proceeding, or2. the enforcement steps are abandoned by the execution creditor or are vacated by the court.(2) Where the fees on enforcement are not deposited by the execution creditor, the said fees shall be collected from the execution debtor.List of CostsArticle 80. The party who has moved for the award of costs shall present to the court a list of costs not later than before the close of the last hearing in the court of the relevant instance. Failing this, the said party shall not have the right of appeal against the judgment in its part concerning the costs.Award of CostsArticle 81. In each act which concludes the case in the court of the relevant instance, the court shall pronounce, inter alia, on the demand of costs.Order Regarding Amounts Deposited for Costs and BondsArticle 82. Any amounts for costs and bonds deposited and furnished in money and valuables shall be credited to State budget revenue unless claimed within one year after the date at which the said amounts became eligible.Waiver of Fees and CostsArticle 83. (1) Fees and costs of the proceeding in the matter of cases shall not be deposited:1. by the plaintiffs who are factory or office workers or cooperative members in respect of any actions arising from employment relationships;2. by the plaintiffs: in respect of any actions for maintenance obligations;3. on any actions brought by a prosecutor;4. by the plaintiff: in respect of any actions for damages sustained as a result of a tort or delict, for which a sentence has entered into effect;5. by the ad hoc representatives of the party whose address is unknown, appointed by the court.(2) Fees and costs of the proceeding shall not be deposited by any natural persons who have been found by the court to lack sufficient means to pay the said fees and costs. Considering the petition for waiver, the court shall take into consideration:1. the income accruing to the person and to the family thereof;2. the property status, as certified by a declaration;3. the family situation;4. the health status;5. the employment status;6. the age;7. other circumstances ascertained.(3) In the cases covered under Paragraphs (1) and (2), the costs of the proceeding shall be paid from the amounts allocated under the budget of the court.Waiver in Special CasesArticle 84. Payment of stamp duty but not of court costs shall be waived for:1. the State and the government institutions, except on actions for private State receivables and rights to corporeal things constituting private State property;2. the Bulgarian Red Cross;3. the municipalities, except in actions for private municipal receivables and rights to corporeal things constituting private municipal property.Chapter NineFINESWitness, When FinedArticle 85. (1) If a witness summoned to appear in court fails to appear without reasonable excuse, the court shall impose a fine thereon and shall decree that the attendance of the said witness during the next hearing be compelled.(2) If a witness refuses to testify without reasonable excuse, the court shall impose a fine thereon.Expert Witness, When FinedArticle 86. If an expert witness fails to appear, refuses to give a conclusion, or fails to present a conclusion in due time without reasonable excuse, the court shall impose a fine thereon.Third Party, When FinedArticle 87. If a third party who does not participate in the case refuses to present a document or a tangible thing for inspection demanded there from by the court, which has been established to be in the possession of the said party, the court shall impose a fine thereon and shall urge to present the said document or thing.Fine for Breaches upon ServiceArticle 88. (1) The court shall impose a fine on any server who has misserved a communication, who has failed to duly attest the service, or who has not returned to court, in due time, the receipt proving service, or who has failed to comply with any other commands of the court in connection with the service.(2) The court shall impose a fine on the manager of the office, where a person willing to accept a communication cannot be found in the office of a government institution or a municipality within normal business hours.Fine for Breaches upon Examination of CaseArticle 89. The court shall impose a fine for:1. disorderly behaviour during a court hearing;2. disobedience of the orders of the court;3. insult of a judge, a party, a representative, a witness or an expert witness.Wrongful Receipt of Legal AidArticle 90. (1) The court shall impose a fine on a party who has stated any untrue or incomplete data in an application for legal aid and, as a result of this, has received or has attempted to receive legal aid.(2) A fine shall likewise be imposed in the cases where a party who has been granted legal aid fails to notify the court in due time of any circumstances relevant to the judgment referred to in Articles 96 and 97 herein.Amount of FineArticle 91. (1) The fine for any breaches covered under Article 85 to 90 herein shall be BGN 50 or exceeding this amount but not exceeding BGN 300.(2) The fine for any breaches which impede the course of proceedings or which are re-committed shall be BGN 100 or exceeding this amount but not exceeding BGN 1,200.Appellate ReviewArticle 92. (1) A petition for vacation of a fine as imposed may be submitted within one week to the court which has imposed the said fine. The time limit shall begin to run as from the day of the court hearing, and in the cases where the person does not attend the hearing, as from the day of the communication.(2) The court shall examine the petition in camera and, if it finds the reasons set forth valid, the court shall reduce or vacate the fine, as well the compelled attendance.(3) The ruling shall be appealable by an interlocutory appeal.Fines upon Coercive EnforcementArticle 93. (1) The enforcement agent shall impose a fine in the amounts referred to in Article 91 herein for:1. any breaches covered under Articles 85 to 88 herein;2. posing any obstacles to the viewing of the corporeal thing offered for sale;3. failure to obey any other commands of the enforcement agent.(2) The decree whereby the enforcement agent imposes the fine shall be appealable within one week after communication before the regional judge, who shall pronounce in camera, rendering a ruling which shall be unappealable.Chapter TenLEGAL AIDContent of Legal AidArticle 94. Legal aid shall consist in ensuring defence by legal counsel free of charge.Grant of Legal AidArticle 95. (1) An application for legal aid shall be submitted in writing to the court where before the case is pending.(2) In the ruling whereby the application is granted, the court shall specify the type and scope of the legal aid granted.(3) The ruling on the grant of legal aid shall have effect as from the submission of the application, unless the court decrees otherwise.(4) The ruling shall be rendered in camera, unless the court deems it necessary to hear the party in order to clarify all circumstances.(5) The ruling whereby legal aid is refused shall be appealable by an interlocutory appeal.(6) The ruling of the court on the interlocutory appeal shall be final.Termination of Legal AidArticle 96. (1) Legal aid shall be terminated:1. upon change of the circumstances on the grounds of which the said aid has been granted;2. by the death of the natural person whereto the said aid has been granted.(2) The court, acting either ex officio or on a motion by a party or by the assigned counsel, shall decree termination in whole or in part of the legal aid granted, effective from the time of occurrence of a change in the circumstances which justified the grant of the said aid.Deprivation of Legal AidArticle 97. (1) The court, acting either ex officio or on a motion by a party or by the assigned counsel, shall deprive the party of legal aid in whole or in part if it is established that the conditions for the grant of the said aid did not exist at all or in part.(2) In the case referred to in Paragraph (1), the party shall be obligated to deposit or to restore all amounts from the payment of which the said party has been groundlessly exempted, as well as to pay the fee set by the court to the counsel assigned thereto.Consequences of Termination and Deprivation of Legal AidArticle 98. (1) The assigned counsel shall exercise the powers thereof until the entry into effect of the ruling on termination or on deprivation of legal aid, if this is necessary to safeguard the party against adverse legal consequences.(2) The time limits for appellate review shall be interrupted as from the rendition and until the entry into effect of the ruling on termination or on deprivation of legal aid and shall commence anew thereafter.Advice of Parties on Legal AidArticle 99. The court shall apprise the parties of their legitimate rights and obligations in connection with legal aid, as well as of the legal consequences upon failure to comply with the obligations thereof.Chapter ElevenPROCEDURAL STEPS BY PARTIESFormArticle 100. The parties shall perform procedural steps orally during a court hearing. The procedural steps outside a court hearing shall be performed in writing.Non-conformity of Procedural StepArticle 101. (1) The court, acting ex officio, shall see to the due performance of procedural steps. The court shall instruct the party as to the nature of the non-conformity of the procedural step performed thereby and to the manner in which the said non-conformity can be cured, and shall set a time limit for the curing.(2) The cured procedural step shall be deemed conforming as from the time of performance thereof.(3) Upon failure to cure the non-conformity within the time limit set, the procedural step shall be deemed non-performed.Written StatementsArticle 102. (1) Any written statements to the court shall contain:1. a reference to the court;2. the name and address of the party making the statement or, respectively, the name and address of the representative where through the statement is effected;3. the nature of the statement;4. signature.(2) The following shall be attached to written statements:1. a power of attorney, where the statement is effected through a representative;2. documentary proof of payment of fees and costs, where such are due;3. transcripts of the statement and the attachments according to the number of opposing parties.PART TWOSTANDARD ACTION PROCEDURETITLE ONEPROCEEDING BEFORE COURT OF FIRST INSTANCEChapter TwelveCOGNIZANCESection IGeneric CognizanceBasic CognizanceArticle 103. The regional court shall take cognizance of all civil cases, with the exception of such as are cognizable in the district court acting as a court of first instance.Cognizance of District CourtArticle 104. The district court, acting as a court of first instance, shall take cognizance of:1. any actions to establish or disavow filiations, to terminate adoption, any actions for interdiction or for vacation of interdiction;2. any actions on commercial disputes;3. any actions for ownership and other rights in rem to an immovable with a cost of action exceeding BGN 50,000;4. any actions on civil cases with a cost of action exceeding BGN 25,000, with the exception of any actions for maintenance obligations, for labour disputes, and for receivables under deficit deeds;5. any actions to establish inadmissibility or nullity of a recording, as well as for non-existence of a recorded circumstance, where so provided for in a law;6. any actions which, under other laws, are subject to examination by the district court.Section IITerritorial CognizanceGeneral Territorial CognizanceArticle 105. An action shall be brought before the court within whose geographical jurisdiction the permanent address or the registered office of the respondent is located.Actions against Minors or Full InterdictsArticle 106. Actions against minors or full interdicts shall be brought before the court exercising jurisdiction over the permanent address of the legal representative thereof.Actions against Persons whose Address Is UnknownArticle 107. (1) An action against a person whose address is unknown shall be brought before the court exercising jurisdiction over the permanent address of the attorney-in-fact or representative of the said person or, should there be no such attorney or representative, over the permanent address of the plaintiff.(2) The rules under Paragraph (1) shall furthermore apply to any respondent who does not reside at the permanent address thereof within the territory of the Republic of Bulgaria.(3) If the respondent does not have a permanent address in the Republic of Bulgaria, either, the action shall be brought before the competent court in Sofia.Actions against Government Institutions and Legal PersonsArticle 108. (1) Actions against government institutions and legal persons shall be brought before the court within whose geographical jurisdiction the place of management or registered office thereof is located. In respect of any disputes which have arisen from direct relations with divisions or branches of any such institutions or persons, actions may alternatively be brought before the court exercising jurisdiction over the location of the said divisions or branches.(2) Actions against the State shall be brought before the court within whose geographical jurisdiction the legal relation at issue has arisen, except in the cases referred to in Articles 109 and 110 herein. Where the said relation has arisen abroad, the court shall be brought before the competent court in Sofia.Cognizance in Place of Corporeal ImmovableArticle 109. Actions for rights in rem to a corporeal immovable, for partition of a co-owned corporeal immovable, for boundaries, and for remedy against disturbed possession of a corporeal immovable shall be brought before the court exercising jurisdiction over the place where the immovable is located. Actions for conclusion of a final contract for creation and transfer of rights in rem to a corporeal immovable, as well as for rescission, annulment and declaration of nullity of contracts for rights in rem to a corporeal immovable, shall likewise be brought before the court exercising jurisdiction over the place where the immovable is located.Cognizance in Place of Opening of SuccessionArticle 110. (1) Actions for succession, for annulment or reduction of testaments, for partition of succession and for annulment of voluntary partition shall be brought before the court exercising jurisdiction over the place where the succession has been opened.(2) If the decedent is a Bulgarian citizen but the succession has been opened abroad, the actions referred to in Paragraph (1) may be brought before the court exercising jurisdiction over the last permanent address of the said decedent in the Republic of Bulgaria or before the court within whose geographical jurisdiction the immovables of the said decedent are located.Action for Pecuniary Receivables on Contractual GroundsArticle 111. An action for pecuniary receivables on contractual grounds may be brought, alternatively, before the court exercising jurisdiction over the current address of the respondent.Action for Maintenance ObligationsArticle 112. An action for maintenance obligations may be brought, alternatively, before the court exercising jurisdiction over the permanent address of the plaintiff.Consumers' ActionsArticle 113. A consumer may bring an action, alternatively, before the court exercising jurisdiction over the current or permanent address of the said consumer.Actions in Labour CasesArticle 114. A worker may bring an action against the employer thereof, alternatively, before the court exercising jurisdiction over the place where the said worker habitually performs the work thereof.Actions for Tort or DelictArticle 115. An action for damages sustained as a result of a tort or delict may be brought, alternatively, before the court exercising jurisdiction over the place where the act was committed.Concurrent CognizanceArticle 116. An action against respondents from different geographical jurisdictions or for an immovable located in different geographical jurisdictions shall be brought, at the choice of the plaintiff, before the court of any of the said geographical jurisdictions.Agreed CognizanceArticle 117. (1) The cognizance determined by the law may not be altered by agreement between the parties.(2) By written agreement, the parties to a property dispute may name a court other than the court wherein the case is cognizable conforming to the rules of territorial cognizance. This provision shall not apply to the cognizance referred to in Article 109 herein.(3) An agreement on choice of court under consumers' actions and under labour disputes shall take effect only if concluded after the dispute has arisen.Section IIICognizance ProceedingVerification of CognizanceArticle 118. (1) Each court shall have discretion to decide whether a case commenced before it is cognizable therein.(2) If the court determines that the case is not cognizable therein, the court shall transmit the said case to the competent court. In such case, the case shall be considered pending before that court as from the day of submission of the petition to the non-competent court, and the steps performed by the latter shall retain the validity thereof.Opposition over Lack of CognizanceArticle 119. (1) An opposition to the generic cognizance of the case may be lodged prior to the close of the proceeding in the court of second instance and may furthermore be raised ex officio by the court.(2) An opposition over lack of cognizance of the case in the court exercising jurisdiction over the place where the corporeal immovable is located may be lodged by the party and may be raised ex officio by the court prior to the conclusion of the trial in the court of first instance.(3) In all cases other than those referred to in Paragraphs (1) and (2), an opposition over lack of cognizance of the case may be lodged solely by the respondent and then within the time limit for answer to the statement of action.(4) Simultaneously with the lodgment of the opposition, the party shall be obligated to present the evidence thereof.Stabilization of CognizanceArticle 120. Any changes in the factual circumstances, justifying the territorial cognizance, which have occurred after submission of the statement of action, shall be no grounds for transmittal of the case.Appellate Review of Ruling on CognizanceArticle 121. The interested party may appeal the ruling in connection with cognizance.Cognizance DisputesArticle 122. Any cognizance disputes between courts shall be resolved by the common superior court thereof. If the said courts are located within the geographical jurisdictions of different superior courts, the dispute shall be resolved by the superior court within whose geographical jurisdiction the court which last accepted or refused to examine the case is located. Any cognizance disputes involving an appellate court shall be resolved by the Supreme Court of Cassation. The court shall pronounce on any cognizance dispute sitting in camera.Determination of Cognizance by Supreme Court of CassationArticle 123. Where the competent court cannot be determined according to the rules of this Chapter, Supreme Court of Cassation, acting on a motion by the party and sitting in camera, shall determine the court where before the action must be brought.Chapter ThirteenORDINARY PROCEEDINGSection IBringing an ActionTypes of ActionArticle 124. (1) Every person may bring an action in order to restore a right thereof where the said right has been impaired, or to establish the existence or non-existence of a legal relation or of a right, where the said person has standing to do so.(2) An action may be brought for the respondent to be ordered to comply with recurrent obligations, even if the said obligations become exigible after rendition of the judgment.(3) An action for the arising, modification or termination of civil legal relations may be brought solely in the cases provided for in a law.(4) An action may be brought to establish the authenticity or falsity of a document. An action to establish the existence or non-existence of other facts of legal relevance shall be admitted solely in the cases provided for in a law.(5) An action to establish a criminal circumstance relevant to a civil legal relation or to reversal of an effective judgment shall be admitted solely in the cases where criminal prosecution may not be instituted or has been terminated on any of the grounds referred to in Items 2 to 5 of Article 24 (1) or has been suspended on any of the grounds referred to in Item 2 of Article 25 or Article 26 of the Criminal Procedure Code, and in the cases where the perpetrator of the act has remained undiscovered.Bringing the ActionArticle 125. An action shall be brought by the receipt of the statement of action in the court.Dismissal in Pending ProcedureArticle 126. (1) Where two cases between the same parties are pending before the same court or before different courts on the same grounds and in respect of the same demand, the case which has been instituted later shall be dismissed ex officio by the court.(2) Where the dismissal is decreed by the intermediate appellate review court, the said court shall invalidate the judgment of the court of first instance.Statement of Action: ContentArticle 127. (1) The statement of action must be written in the Bulgarian language and must contain:1. a reference to the court;2. the name and address of the plaintiff and respondent, of the legal representatives or attorneys-in-fact thereof, if any, as well as the Standard Public Registry Personal Number of the plaintiff and the telefax and telex number, if any;3. the cost of action, where the action is appraisable;4. a narrative of the circumstances upon which the action is based;5. the nature of the demand;6. signature of the person who submits the statement.(2) In the statement of action, the plaintiff shall be obligated to cite the evidence and the specific circumstances which the said plaintiff is to prove thereby, and to present, together with the said statement, all written evidence.(3) If the submitter of the statement does not know or is unable to sign the said statement, the said statement shall be signed by the person whom the submitter has assigned to do so, stating the reason for which the submitter himself or herself has not signed the statement.Statement of Action: AttachmentsArticle 128. The following shall be presented attached to the statement of action:1. the power of attorney, where the statement is submitted by an attorney-in-fact;2. documentary proof of payment of stamp duties and costs, where such are due;3. transcripts of the statement of action and of the attachments thereto according to the number of respondents.Statement of Action: VerificationArticle 129. (1) The court shall verify the conformity of the statement of action.(2) Where the statement of action does not conform to the requirements covered under Article 127 (1) and under Article 128 herein, a communication shall be sent to the plaintiff instructing the plaintiff to cure the non-conformities within one week, as well as apprising the plaintiff of the possibility to use legal aid, if necessary and if entitled thereto. Where the address of the plaintiff is not named and is unknown to the court, the communication shall be effected by means of posting of a notice in a place designated for this purpose at the court in the course of one week.(3) Where the plaintiff fails to cure the non-conformities, the statement of action together with the attachments shall be returned, and where the address is unknown, the said statement shall be left in the office of the court at the disposal of the plaintiff. An interlocutory appeal may be lodged against the return of the statement of action without presenting a transcript of the said appeal for service.(4) It shall be proceeded in the same manner where the non-conformities in the statement of action are noticed in the course of the proceeding.(5) The cured statement of action shall be considered conforming as from the day of submission.(6) Any official, who forwards a statement without the full amount of stamp duty having been paid, shall be liable under Article 6 of the Stamp Duty Act. Verification of Admissibility of ActionArticle 130. Where, upon verification of the statement of action, the court establishes that the action brought is inadmissible, the court shall return the statement of action. An interlocutory appeal may be lodged against the return of the statement of action without presenting a transcript for service.Answer to Statement of ActionArticle 131. (1) After accepting the statement of action, the court shall transmit a transcript of the said statement together with the attachments to the respondent, instructing the said respondent to submit a written answer within one month, specifying the mandatory content of the answer and the consequences of non-submission of an answer or of the non-exercise of rights, as well as the possibility to use legal aid, if necessary and if entitled thereto.(2) The written answer of the respondent must contain:1. a reference to the court and to the case number;2. the name and address of the respondent, as well as of the legal representative or attorney-in-fact, if any;3. a stand on the admissibility of the action and on whether the action is well-founded;4. a stand on the circumstances upon which the action is founded;5. the oppositions to the action and the circumstances upon which the said oppositions are founded;6. signature of the person who submits the answer.(3) In the answer to the statement of action, the respondent shall be obligated to cite the evidence and the specific circumstances which the said respondent is to prove thereby, and to present all written evidence in the possession thereof.Answer to Statement of Action: AttachmentsArticle 132. The following shall be presented attached to the answer to the statement of action:1. a power of attorney, where the answer is submitted by an attorney-in-fact;2. transcripts of the answer and of the attachments thereto according to the number of plaintiffs.Consequences of Non-submission of AnswerArticle 133. Where the respondent fails, within the established time limit, to submit a written answer, to take a stand, to lodge oppositions, to cite evidence, to present written evidence or to exercise the rights thereof under Article 211 (1), Article 212 and Article 219 (1) herein, the said respondent shall forfeit the possibility to do so later, unless the omission is due to special unforeseen circumstances.Section IICourt HearingsTypes of SessionArticle 134. (1) The court shall examine the cases sitting in public session and in camera.(3) Hearings shall be conducted in camera in the cases provided for by the law without the parties attending.Place and TimeArticle 135. (1) Hearings of the cases shall be conducted at the building of the court. Conduct of hearings outside the building of the court shall be admissible if larger costs can be avoided in this way.(2) The court shall assign a place, day and hour for the public sessions.(3) Hearings may not be conducted on non-working days.Exclusion of PublicityArticle 136. (1) The court, acting either ex officio or on a motion by any of the parties, may decree that the case be examined or only some steps be performed behind closed doors where:1. the public interest so necessitates;2. the protection of the privacy of the parties, of the family, or of the persons under curatorship so necessitates;3. the case involves a trade, industrial, inventor's or tax secret whereof the public disclosure would impair any defensible interests;4. other valid reasons apply.(2) In the cases covered under Paragraph (1), the parties, the attorneys-in-fact thereof, the expert witnesses and the witnesses, as well as the persons permitted by the presiding judge to attend, shall be admitted to the courtroom.Examination of Motion to Exclude PublicityArticle 137. The motion shall be examined in public session behind closed doors. The ruling rendered on any such motion shall be published.Obligation to Maintain ConfidentialityArticle 138. Where a hearing has been conducted behind closed doors, the public disclosure of the content of the said hearing shall be prohibited.Persons Who May Not Attend HearingArticle 139. The following may not attend a court hearing without permission of the court:1. any minors who are not parties to the case or witnesses;2. any armed persons, except court security.Section IIIExamination of CasePreparation of Case in CameraArticle 140. (1) After verifying the conformity and admissibility of the actions brought, as well as the other demands and oppositions of the parties, the court shall render a ruling on all preliminary issues and on admission of the evidence.(2) Where counter demands are made in the answer, the court may alternatively pronounce on the said demands and on admission of some of the items of evidence during the first hearing of the case.(3) The court shall schedule a hearing of the case in public session, for which the court shall summon the parties, serving thereon a transcript of the ruling referred to in Paragraph (1). The court may furthermore communicate to the parties the court's draft of a report on the case, as well as direct the parties to mediation or another procedure for voluntary resolution of the dispute.Presiding Judge's DutiesArticle 141. (1) The hearing shall be chaired by the presiding judge.(2) The presiding judge shall see to order in the courtroom and may impose fines for breach of the said order.(3) The presiding judge may expel any person who breaches the order.(4) Where, despite a warning of expulsion, order in the courtroom is breached by any party or by any representative thereof, the court may expel the offender for a specified period of time. After the expelled person returns to the courtroom, the presiding judge shall apprise him or her of the steps performed in the absence thereof by means of reading of the judicial record.Proceeding with and Adjournment of CaseArticle 142. (1) The non-appearance of any of the parties, who has been duly summoned, shall be no impediment to examination of the case. The court shall proceed with examination of the case after examining the cases to which the parties have appeared.(2) The court shall adjourn the case if the party and the attorney-in-fact thereof cannot appear due to an obstacle which the party cannot remove.(3) Upon adjournment of the case, the court shall announce the date of the next hearing, for which the parties and the witnesses and expert witnesses who have appeared in the case shall be considered summoned.(4) Where another date for conduct of the hearing has to be assigned, the court, sitting in camera, shall set the said date and shall summon the parties, the witnesses and the expert witnesses.Examination of Case in Public SessionArticle 143. (1) The court, sitting in public session, after addressing the preliminary issues, shall proceed with clarification of the factual aspect of the dispute.(2) The plaintiff may explain and amplify the statement of action, as well as cite and present evidence in connection with the contestations made by the respondent, and the respondent may cite and present new evidence which the said respondent was unable to cite and present in the answer to the statement of action.(3) The parties shall be obligated to make and justify all demands and oppositions thereof and to take a stand on the circumstances alleged by the opposing party.Additional TimeArticle 144. (1) The respondent may move to be allowed additional time in order to take a stand on the motions for evidence made by the respondent during this hearing and to cite additional evidence in connection with the contestations made.(2) Where the motion referred to in Paragraph (1) is granted, the court, sitting in camera, shall render a ruling on the contestations and demands made, which shall be communicated to the parties.Instructions of CourtArticle 145. (1) The court shall pose questions to the parties for clarification of the facts, specifying the relevance of the said facts to the case.(2) The court shall instruct the parties to amplify and particularize the allegations thereof and to eliminate any contradictions therein.(3) Thereafter, the court shall invite the parties to reach a settlement and shall specify the consequences thereof. If no settlement is reached, the court shall make a report which shall be included in the judicial record.Report on CaseArticle 146. (1) The report on the case shall contain:1. the circumstances wherefrom the claimed rights and oppositions arise;2. the legal qualification of the rights claimed by the plaintiff, of the counter rights and the oppositions of the respondent;3. which rights and which circumstances are admitted;4. which circumstances need to be proved;5. how the burden of proving the facts to be proved is apportioned.(2) The court shall instruct the parties as to the facts alleged thereby in respect of which they do not cite evidence.(3) The court shall afford the parties an opportunity to set forth the stand thereof in connection with the instructions given and the report on the case, as well as to undertake the relevant procedural steps.(4) The court shall render a ruling on the motions for evidence of the parties, admitting the evidence which is relevant, admissible and requisite.New Facts and CircumstancesArticle 147. Prior to the conclusion of the trial, the parties may:1. allege any new circumstances and cite and present any new evidence solely if the parties were unable to learn of such circumstances and to cite and present such evidence in due time;2. allege any intervening circumstances, which are relevant to the case, and cite and present evidence of any such circumstances.Taking of EvidenceArticle 148. The court shall take all items of evidence admitted with the participation of the parties. If necessary, the court shall schedule a new hearing for taking of evidence which has not been taken for reasons beyond the control of the parties.Conclusion of the TrialArticle 149. (1) After taking of the evidence, the court shall reinvite the parties to reach a settlement. If no settlement is reached, the court shall proceed with the oral arguments.(2) When the case is clarified, the court shall declare the oral arguments concluded and shall assign a day whereon the said court is to publish the judgment.(3) If the case is of factual and legal complexity, the court, acting on a motion by any of the parties, may set a suitable time limit for presentation of written defences. Written defences shall be presented with transcripts according to the number of parties.Judicial Record of HearingArticle 150. (1) A judicial record on the examination of the case shall be prepared, entering therein the place and time of the hearing, the composition of the court, the name of the clerk, the parties who appeared and the representatives thereof, the essence of the parties' statements, demands and speeches, the written evidence presented, the testimony of the witnesses and of the other persons in the case, and the findings and rulings of the court.(2) The judicial record shall be prepared under the dictation of the presiding judge. The said record shall be made available to the parties within three days after the hearing.(3) If technically possible, a sound recording of the hearing shall be made and the judicial record shall be prepared on the basis of the said recording within three days.(4) The judicial record shall be signed by the presiding judge and by the clerk.Correction and Amplification of Judicial RecordArticle 151. (1) Within one week after the judicial record is made available to the parties, each participant in the procedure may move for the amplification or correction of the said record.(2) If a sound recording has been made during the hearing, any corrections and amplification of the judicial record shall be admitted solely on the basis of the sound recording.(3) If no sound recording has been made during the hearing, any corrections and amplification of the judicial record shall be admitted solely on the basis of notes taken on the content of the said record.(4) The court shall pronounce on the motion for corrections and amplification of the judicial record after summoning the parties and the petitioner and after hearing the sound recording or, respectively, the explanations of the clerk.(5) The sound recording shall be preserved until expiry of the time limit for motion for corrections and amplification of the judicial record or, if such a motion has been made, until the entry into effect of the judgment in the matter of the case.Evidential Value of Judicial RecordArticle 152. The judicial record of the court hearing shall be evidence of the court procedural steps performed during the court hearing. Any steps which are not attested in the judicial record shall be considered non-performed.Chapter FourteenEVIDENCESection IGeneral RulesWhat Is to Be ProvedArticle 153. The disputable facts relevant to adjudication of the case and the links there between shall be subject to proving.Burden of ProofArticle 154. (1) Each party shall be obligated to establish the facts upon which the demands or oppositions thereof are founded.(2) Facts in respect of which a presumption established by law exists need not be proved. Refutation of such presumptions shall be granted in all cases except where a law prohibits this.Facts Not to Be ProvedArticle 155. Any facts of common knowledge and any facts known to the court ex officio, of which the court shall be obligated to inform the parties, shall not have to be proved.Motion for EvidenceArticle 156. (1) In a motion for evidence, a party shall cite the facts and the means by which the said facts will be proven.(2) In a motion for admission of an examination of a witness, the party shall cite the facts about which the said witness is to be questioned, the forename, patronymic and surname of the said witness and the address, where the party motions for the summoning thereof.(3) A motion for admission of explanations by the other side shall formulate the questions which the other side is to answer.(4) A motion for admission of an expert examination shall specify the field in which special knowledge is required, the subject and the task of the expert examination.Admission of EvidenceArticle 157. The court shall render a ruling on admission of evidence, setting thereby a time limit for the taking of such evidence as well. The said time limit shall begin to run as from the day of the court hearing during which the said time limit was set, and this beginning shall apply as well to the party who did not appear.Time Limit for Taking of EvidenceArticle 158. (1) If the taking of any item of evidence is doubtful or presents a special difficulty, the court may set a relevant time limit for the taking of the said item, after the expiry of which the case shall be heard without the said item of evidence.(2) Upon the further examination of the case, the said item of evidence may be taken, if this does not delay the proceeding.Non-admission of EvidenceArticle 159. (1) Any motions by the parties for admission of evidence regarding facts which are irrelevant to adjudication of the case, as well as any untimely motions for admission of evidence, shall be denied by the court by a ruling.(2) Where a party names multiple witnesses for the establishment of the same fact, the court may admit only some of the said witnesses. The rest of the witnesses shall be admitted if the witnesses summoned do not establish the disputable fact.Costs of Taking of EvidenceArticle 160. (1) Where costs have to be incurred on the taking of evidence, the court shall set an amount and a time limit for depositing of the said costs. The said time limit shall begin to run as from the day of the court hearing during which the said time limit was set, and this beginning shall apply as well to the party who did not appear.(2) The evidence shall be taken after presentation of documentary proof of making the deposit set for costs.(3) The time limit for depositing of costs shall be interrupted by the submission of a petition for waiver of the depositing of such costs and shall not run while the said petition is examined.Consequences of Obstruction of ProvingArticle 161. Considering the circumstances of the case, the court may hold as proved the facts in respect of which a party has created impediments to the taking of admitted evidence.Discretionary PowerArticle 162. Where the action is established as to cause but there is no sufficient information about the amount of the said action, the court shall determine the said amount at its own discretion or shall consult the conclusion of an expert witness.Section IITestimonyDuty to TestifyArticle 163. (1) A witness shall be obligated to appear before court in order to give testimony.(2) If there is an important reason, the examination of the witness may be conducted even before the day assigned for the hearing, as well as outside the premises of the court. The parties shall be summoned for any such examination.Admissibility of TestimonyArticle 164. (1) Testimony shall be admitted in all cases except where:1. legal transactions, for the validity whereof a law requires a written instrument, have to be established;2. the content of an official document has to be denied;3. circumstances have to be established, for the proving whereof a law requires a written instrument, as well as for establishment of contracts to a value exceeding BGN 5,000, except where concluded between spouses or lineal relatives, collateral relatives up to the fourth degree of consanguinity and affines up to the second degree of affinity;4. obligations, established by a written instrument, have to be extinguished;5. written accords have to be established, wherein the party moving for the witnesses has participated, or such accords have to be modified or repudiated;6. the content of a private document originating from the party has to be denied.(2) In the cases referred to in Items 3, 4, 5 and 6 of Paragraph (1), testimony shall be admitted solely with the express consent of the parties.Exceptions to InadmissibilityArticle 165. (1) In the cases where the law requires a written document, testimony shall be admitted if it is proved that the document has been lost or destroyed not through the fault of the party.(2) Testimony shall furthermore be admitted where the party seeks to prove that the consent expressed in the document is simulated, and then if there is written evidence in the case originating from the other party or attesting statements of the other party before a state body, which lend probability to the allegation of the party that the consent is simulated. This limitation shall not apply to the third parties, as well as to the heirs, where the transaction is directed there against.Refusal to TestifyArticle 166. (1) No one has the right to refuse to testify except:1. the attorneys-in-fact of the parties to the same case and the persons who were mediators in the same dispute;2. the lineal relatives to the parties, the siblings and the affines in the first degree of affinity, the spouse and the former spouse, as well as the de facto cohabitee with a party.(2) The persons who, by the answers thereof, would incur or inflict on the persons referred to in Item 2 of Paragraph (1) any immediate damage, defamation or criminal prosecution, may not refuse to testify but may refuse to give an answer to a particular question, stating the reasons for this.(3) The witnesses in the case may not be attorneys-in-fact of the parties to the same case.Dereliction of Duty to TestifyArticle 167. (1) Any witness, who refuses to give testimony or to answer particular questions, shall be obligated to state the reasons for this in writing and to attest the said reasons before the hearing whereat the said witness is to be examined, or orally before the court.TEXT:(2) Any witness, who has failed to comply with the obligation thereof under Article 163 herein and has so delayed the proving:1. shall reimburse the parties for the costs incurred as a result of non-compliance with the said obligation;2. shall forfeit the entitlement to claim remuneration.Witness's Entitlement to RemunerationArticle 168. A witness shall be entitled to remuneration and to costs for appearance in court, if claimed by the said witness before the end of the court hearing. The remuneration and the costs shall be paid from the deposit made.Summoning a WitnessArticle 169. (1) If a witness cannot be summoned at the address named by the party, the court shall set a time limit for naming another address.(2) If the party fails to act on the instructions of the court, the witness shall not be summoned.(3) The parties may bring the admitted witnesses even without summoning.Promise to Tell the TruthArticle 170. (1) Before the examination of a witness, the court shall establish the identity thereof, shall clarify the information as to whether the said witness may be interested, and shall remind the witness of the liability incurable under the law for perjury.(2) The witness shall promise to tell the truth.Conduct of ExaminationArticle 171. (1) Each witness shall be examined separately in the presence of the parties who have appeared. Any witnesses, who have not yet given testimony, may not be present at the examination of the other witnesses.(2) A witness may be re-examined during the same hearing or during another hearing on a motion by the said witness, on a petition by the party, or on the initiative of the court.(3) The court, acting on a motion by a party or on its own initiative, may include in the judicial record any specific peculiarities in the behaviour of the witness under examination.Evaluation of TestimonyArticle 172. The testimony of relatives, of the tutor or of the curator of the party who has named the witness, of the adopters, of the adoptees, of those who are in a civil or criminal dispute with the opposing party or with the relatives thereto, of the attorneys-in-fact named by the principals thereof, as well as of everybody else who are interested toward or against one of the parties, shall be evaluated by the court considering all other information on the case, giving consideration to the possibility of any such persons being interested witnesses.Witness's Examination on Court's InitiativeArticle 173. The party may abandon the examination of a witness whom the said party has invoked, but the said witness shall be examined if the other party so moves or if the court determines that the examination of the said witness is necessary for clarification of the circumstances of the case.ConfrontationArticle 174. In case of discrepancy between the testimonies of the witnesses, the court may decree the conduct of a confrontation. A confrontation may furthermore be decreed between a witness and the parties.Section IIIExplanations by PartiesJudicial Admission of FactArticle 175. An admission of a fact, made by a party or by a representative thereof, shall be evaluated by the court considering all circumstances of the case.Explanations by PartyArticle 176. (1) The court may order a party to appear in person in order to provide explanations about the circumstances of the case.(2) The court shall communicate to the party obligated to appear in person the questions which the said party must answer, warning the said party of the consequences of non-compliance with this obligation.(3) The court may hold as proved the circumstances for the clarification of which the party has failed to appear or has refused to answer without reasonable excuse, as well as where the party has given evasive or unclear answers.(4) Where the party is unable to appear before the court owing to a hardly surmountable impediment, the explanations of the said party may be provided to a delegated court.Scope of ApplicationArticle 177. (1) The following shall provide explanations as parties to the case:1. the natural persons;2. the legal representatives of the legal persons;3. the debtors and the trustee in bankruptcy in cases related to the bankruptcy estate;4. the partners in a general partnership;5. the personally liable partner in a limited partnership;(2) Where the party is an infant or a full interdict, the court may hear the legal representative of the said party. Where the party is a minor or a limited interdict, the court may examine the said party in the presence of the parent of curator thereof.Section IVWritten EvidenceEvidential ValueArticle 178. (1) The evidential value of documents shall be determined conforming to the law which was in force at the time and in the place where the said documents were drafted.(2) The court shall evaluate the evidential value of the document which contains any crossings, deletions, insertions between the lines and other apparent blemishes, considering all circumstances of the case. This rule shall not apply to a signed electronic document.Official DocumentArticle 179. (1) An official document, issued by an official within the official responsibilities thereof in the established form and according to the established procedure, shall constitute evidence of the statements made before the said official and of the steps performed by and before the said official.(2) Officially authenticated transcripts or excerpts of official documents shall have the same evidential value as the originals.Private DocumentArticle 180. Private documents, signed by the persons who issued the said documents, shall constitute evidence that the statements contained therein were made by the said persons.Valid Date of Private DocumentArticle 181. (1) A private document shall be validly dated in respect of third parties as from the day of authentication of the said document or from the day of death, or from the occurrence of a physical incapacity of being signed by the person who signed the document, or as from the day on which the content of the document was reproduced in an official document, or as from the day on which another fact occurred, proving beyond doubt the preceding drafting of the document.(2) To establish the date of receipts on a payment effected, the court may admit any means of proof, considering the circumstances of the case.Account Book EntriesArticle 182. Entries in account books shall be evaluated by the court according to the regularity of the said entries and considering the other circumstances of the case. Any such entries may serve the person or organization who or which has kept the books as evidence.Presentation of Documents on Paper-Based Data MediumArticle 183. Where a document is filed with the case records, the said document may alternatively be presented in a transcript authenticated by the party, but in such case, upon request, the said party shall be obligated to present the original of the document or an officially authenticated duplicate copy thereof. Failing this, the transcript presented shall be excluded from the evidence in the case.Presentation of Electronic DocumentArticle 184. (1) An electronic document may be presented reproduced on a paper-based data medium in the form of a transcript authenticated by the party. Upon request, the party shall be obligated to present the document on an electronic data medium.(2) If the court does not have at its disposal technical means and experts making it possible to reproduce the electronic document and to duly verify the electronic signature in the courtroom in the presence of the persons who appeared, electronic copies of the document shall furthermore be presented to each of the parties to the case. In such case, the authenticity of the electronic document may be contested during the next succeeding court hearing.Presentation of Document in Foreign LanguageArticle 185. Any document presented in any language other than Bulgarian shall be accompanied by an accurate translation into the Bulgarian language, authenticated by the party. If the court is unable to verify the accuracy of the translation on its own or if the accuracy of the translation is contested, the court shall appoint an expert witness to perform a verification.Presentation of Official DocumentsArticle 186. Official documents and certificates shall be presented by the parties. The court may require such documents from the relevant institution or may furnish the party with a court certificate on the basis of which the said party is to obtain the said documents. The institution shall be obligated to issue the documents required or to explain the reasons for not issuing the said documents.Presentation of Published ItemsArticle 187. Items published in print shall be presented by the parties, but when the court can procure such items on its own without particular difficulty, it shall be sufficient for the party to cite where the said items were published.Conversion of Official DocumentArticle 188. Any document issued by a non-competent authority or not in the prescribed form shall be relevant as a private document if signed by the parties.Document Issued by Illiterate or Blind PersonArticle 189. (1) Any private document issued by an illiterate person must bear, in lieu of a signature, an impression of the right thumb of the said person and must be countersigned by two witnesses. If the impression of the right thumb cannot be affixed, the reason for this must be noted in the document, as well as the impression of which other finger has been affixed.(2) Any private document issued by a blind but literate person must be countersigned by two witnesses.Obligating Party to Present DocumentArticle 190. (1) Each party may approach the court with a motion to obligate the other party to present a document in the possession thereof, explaining the relevance of the said document to the dispute.(2) Non-presentation of the document shall be evaluated according to Article 161 herein.Grounds for Refusal to PresentArticle 191. (1) Presentation of a document may be refused where:1. the content of the document concerns circumstances of the personal or family life of the party;2. this would lead to defamation or to criminal prosecution of the party or of any relatives thereto within the meaning given by Article 166 herein.(2) Where the grounds covered under Paragraph (1) affect parts of the document, the party may be obligated to present an abstract of the document authenticated thereby.Obligating Third Party to Present DocumentArticle 192. (1) Each party may approach the court with a written petition to obligate a person non-participating in the case to present a document in the possession thereof.(2) A transcript of the petition shall be transmitted to the third party, and a time limit shall be set thereto for presentation of the document.(3) In addition to the liability under Article 87 herein, the third party, who groundlessly fails to present the required document, shall furthermore incur liability to the party for the damages inflicted thereon.Contesting Authenticity of DocumentArticle 193. (1) The interested party may contest the authenticity of a document at the latest by the answer to the court procedural step whereby the said document was presented. Where the document is presented during a court hearing, contestation may be made at the latest before the end of the hearing.(2) The court shall decree the performance of a verification of the authenticity of the document if the other party states that it wishes to avail itself of the said document.(3) The burden of proving the falsity of the document shall be upon the party contesting the said document. Where the authenticity of a private document, which does not bear the signature of the contesting party, is contested, the burden of proving the authenticity shall be upon the party who presented the said document.Verification of DocumentArticle 194. (1) The court shall perform a verification by means of comparison with other indisputable documents, by means of examination of witnesses, or by means of expert witnesses.(2) After the verification, the court shall render a ruling acknowledging either that the contestation is not proven or that the document is false. In the latter case, the court shall exclude the said document from the evidence, transmitting the said document to the prosecutor together with the ruling of the court.(3) The court may alternatively pronounce on the contestation of the document by the judgment thereof in the matter of the case. In such case, the document, together with a transcript of the judgment, shall be transmitted to the prosecutor.Section VExpert WitnessesAppointment of Expert WitnessArticle 195. (1) An expert witness shall be appointed either on a motion by a party or ex officio where special knowledge in the field of science, art, skilled crafts and other such is necessary for clarification of certain questions which have arisen in the case.(2) The court may appoint multiple expert witnesses as well, where this is necessitated considering the circumstances of the case.Exclusion of Expert WitnessArticle 196. (1) The provisions of Article 22 (1) herein shall apply, mutatis mutandis, to expert witnesses as well.(2) Each of the parties may move for the exclusion of an expert witness if any of the grounds referred to in Paragraph (1) applies.(3) The expert witness shall be obligated to communicate to the court immediately all circumstances which may be grounds for exclusion. The expert witness shall be obligated to express an opinion on the allegations in the petition for the exclusion thereof.(4) The court shall render a ruling on the motion for exclusion of an expert witness.Assignment of Expert ExaminationArticle 197. (1) The ruling whereby the court appoints an expert witness shall specify: the subject and the task of the expert examination; the materials which are provided to the expert witness; the name, education and specialist qualifications of the expert witness.(2) The court shall allow the expert examination a suitable time for preparation of the conclusion. The expert witness shall notify the court when the said expert witness is unable to prepare the conclusion within the time limit set, and shall state the time limit that the said expert witness will need.Excusal of Expert WitnessArticle 198. An expert witness as appointed shall be excused from the task assigned thereto where the said expert witness is unable to fulfil the said task for lack of qualifications, an illness or another reason beyond the control thereof, under the terms established by Article 166 herein, or where the conclusion has not been prepared in due time.Presentation of ConclusionArticle 199. The expert witness shall be obligated to present the conclusion thereof at least one week before the court hearing.Hearing of Expert WitnessArticle 200. (1) The court shall remind the expert witness of the liability incurrable thereby for giving a false conclusion.(2) The expert witness shall set forth orally the conclusion thereof. The parties may pose questions for clarification of the conclusion.(3) Upon contestation of the conclusion, the court may appoint another or multiple expert witnesses. Contestation may be made pendente lite.Additional and Second ConclusionArticle 201. An additional conclusion shall be assigned where the conclusion is not sufficiently complete and clear, and a second conclusion shall be assigned where the conclusion is not justified and gives rise to any doubt as to the correctness thereof.Evaluation of ConclusionArticle 202. The court shall not be obligated to accept the conclusion of the expert witness but shall consider the said conclusion together with the rest of the evidence in the case.Dissent between Expert WitnessesArticle 203. In the event of dissent between expert witnesses, each group shall set forth the separate opinions thereof. Where the court cannot take a stand on the dissent, the court shall require from the same expert witnesses additional research or shall appoint other expert witnesses.Section VIInspection and CertificationAdmission of Inspection and CertificationArticle 204. (1) The court, acting on a motion by the parties or at its own discretion, may assign an inspection of movable or immovable things or certification of persons with the participation or without the participation of witnesses and expert witnesses.(2) Inspection and certification shall be methods of taking and verification of evidence. They shall be performed by the entire panel of the court, by a delegated member of the court or by another delegated court.(3) The court shall notify the parties of the place and time of the inspection. A memorandum shall be drawn up on the inspection performed, including the findings of the inspection, the explanations of the expert witnesses and the explanations of the witnesses who have been examined in the place of the inspection.Duty to CooperateArticle 205. The provisions regarding documents shall apply to the duty to provide, surrender or afford access to the subject of inspection.CertificationArticle 206. (1) A person may be certified solely with the consent thereof.(2) Certification shall be performed in a manner which does not impair the personal dignity of the person certified. To this end, the judge need not attend the certification in person and may assign the performance of the certification to appropriate expert witnesses.(3) A refusal of a person to be certified shall be evaluated according to Article 161 herein.Section VIIPerpetuation of EvidencePerpetuation of EvidenceArticle 207. Where there is a risk that some item of evidence may be lost or the taking thereof may be impeded, the party may move for the anticipatory taking of the said item of evidence.Proceeding for Perpetuation of EvidenceArticle 208. (1) The petition for perpetuation of evidence shall be submitted to the court which examines the case, and if the case has not yet been instituted, any such motion shall be submitted to the regional court exercising jurisdiction over the permanent address of the person to be examined or over the location of the immovable to be inspected.(2) A transcript of the petition for perpetuation of evidence shall be served upon the other party.(3) The ruling of the court, whereby the petition is dismissed, shall be appealable by an interlocutory appeal.(4) Within the same proceeding, the court may take evidence specified by the other party if the said evidence is closely related to the evidence specified by the petitioner.(5) Where the petitioner is not in a position to name the name and address of the other party, the court shall appoint a representative of the said other party.(6) The general rules shall apply regarding the procedure for taking of evidence and the value thereof.CostsArticle 209. The costs of taking of evidence shall not be awarded in favour of the party in the proceeding for perpetuation of evidence. The said costs shall be taken into consideration subsequently upon resolution of the dispute.Chapter FifteenDEVIATIONS IN CONNECTION WITH SUBJECT MATTER OF CASEInitial Joinder of ActionsArticle 210. (1) The plaintiff may bring several actions against the same respondent by a single statement of action if the said actions are cognizable in the same court and are subject to examination according to the procedure of the same proceeding.(2) Where the actions brought are not subject to examination according to the procedure of the same proceeding or where the court determines that the joint examination of the said actions will be considerably impeded, the court shall decree a disjoinder of the said actions.Counter ActionArticle 211. (1) Within the time limit for answer to the statement of action, the respondent may bring a counter action if the said action is generically cognizable in the same court and is connected with the original action or if the said action can be set off against the original action.(2) The counter action shall be brought according to the rules applicable to the bringing of an action. Where the court determines that the joint examination of the counter action will be considerably impeded, the court shall decree a disjoinder of the said counter action.Incidental ActionArticle 212. During the first hearing for examination of the case, the plaintiff and, in the answer to the statement of action, the respondent, may approach the court with a motion to pronounce, in the judgment thereof, inter alia regarding the existence or non-existence of a disputed legal relation upon which the outcome of the case depends in whole or in part.Ex Officio Joinder of ActionsArticle 213. Where several cases, in which the same persons participate for the plaintiff and for the respondent and which are interconnected, are pending before the court, the court may join the said cases in a single proceeding and may render a joint judgment in the matter of the said cases.Modification of ActionArticle 214. (1) During the first hearing for examination of the case, the plaintiff may modify the grounds of the action thereof if the court deems this appropriate considering the defence of the respondent. The plaintiff may furthermore, without modifying the grounds, modify the demand thereof. Prior to the conclusion of the trial in the court of first instance, the plaintiff may modify solely the amount of the demand made, as well as transfer from an action for a declaratory action to an action for performance and vice versa.(2) The addition of overdue interest or yields of the thing collected after the action is brought shall not be treated as an increase of the demand.Chapter SixteenDEVIATIONS IN CONNECTION WITH PARTIESSection IJoinder of PartiesAdmissibilityArticle 215. An action may be brought by several plaintiffs or against several respondents if the matter in dispute is:1. their common rights or obligations, or2. rights or obligations resting on the same grounds.Procedural StepsArticle 216. (1) Each of the co-parties shall act independently. The procedural steps and performed or omitted by each co-party shall neither benefit nor injure the rest of the co-parties.(2) Where, considering the nature of the legal relation at issue or as dictated by the law, the judgment of the court must be identical in respect of all co-parties (necessary joinder of parties), the steps performed by some of them shall be also relevant to the co-parties who have not appeared or who have not performed such steps. In this case, too, however, the consent of all co-parties shall be required for conclusion of a settlement and for withdrawal or abandonment of the action.Allegations Regarding Common FactsArticle 217. If the factual allegations by the co-parties regarding the common facts conflict each other, the court shall evaluate the said allegations in relation to all circumstances of the case.Section IIThird PartiesThird Party InterventionArticle 218. A third party may intervene prior to the conclusion of the trial in the court of first instance in order to assist one of the parties if the said third party has an interest in the judgment being rendered in favour of the said party.Impleader of Third PartyArticle 219. (1) During the first hearing for examination of the case, the plaintiff and, by the answer to the statement of action, the respondent may implead a third party where the said party has the right to intervene in order to assist.(2) The impleader shall not be granted if the third party does not have a permanent address in the Republic of Bulgaria or is resident abroad.(3) The party who has a recourse action against the third party may bring the said action for joint examination simultaneously with the motion for impleader.Admission of ParticipationArticle 220. The court shall render a ruling on admission of the third party. The ruling whereby the third party is not admitted shall be appealable by an interlocutory appeal.Third Party's RightsArticle 221. (1) The third party shall have the right to perform all court procedural steps with the exception of the steps constituting disposition of the matter in dispute.(2) In the event of a conflict between the steps and the explanations of the party and of the third party, the court shall evaluate the said steps and explanations in connection with all circumstances of the case.Substitution for Party AssistedArticle 222. With the consent of both parties, the third party who has intervened or who has been impleaded may substitute himself or herself for the party assisted thereby and may excuse the said party.Effect of JudgmentArticle 223. (1) The judgment rendered shall have a declaratory effect in the relations of the third party and the opposing party.(2) What the court has declared in the reasoning to the judgment thereof shall be binding upon the third party in the relations thereof with the party assisted thereby or with the party who has impleaded the said third party. What the court has declared in the reasoning to the judgment thereof may not be contested under the pretext that the party has misconducted the case, except where the said party, acting wilfully or by gross negligence, has omitted to cite circumstances or evidence unknown to the third party.Impleader of Person Claiming Own RightsArticle 224. (1) The respondent shall be excused from participation in the case if the said respondent deposits the amount or corporeal thing claimed and impleads the person who also claims rights of his or her own thereto. In such case, the case shall proceed solely between the two creditors.(2) If the person impleaded fails to intervene in the case, the proceeding shall be terminated and the amount or corporeal thing deposited shall be delivered to the plaintiff.(3) Where the respondent makes the motion for impleader by the answer to the statement of action, the said respondent shall not be liable for the costs.Principal InterventionArticle 225. (1) The third party, who holds independent rights to the matter in dispute, may intervene in the case by bringing an action against both parties.(2) The bringing of an action by a third party shall be admitted prior to the completion of the trial in the court of first instance.Section IIITransfer of Right at Issue and Replacement of PartyTransfer of Right at IssueArticle 226. (1) If in the course of the proceeding the right at issue is transferred to another, the case shall follow its course between the original parties.(2) The transferee may intervene or be impleaded in the case as a third party. The said transferee may substitute himself or herself for the grantor thereof solely under the terms established by Article 222 herein.(3) The judgment rendered shall in any case constitute res judicata in respect of the transferee as well, with the exception of the steps of recording, where a corporeal immovable is involved (Article 114 of the Ownership Act), and where acquisition of ownership by bona fide possession (Article 78 of the Ownership Act), where movable things are involved.Succession in ProcedureArticle 227. Where the party dies or the legal person ceases to exist, the proceeding in the matter of the case shall continue with the participation of the successor.Replacement of PartyArticle 228. (1) A modification of the action through replacement of any of the parties by another party shall be admissible during any stage of the proceeding in the court of first instance with the consent of both parties and of the person who intervenes as a party to the case.(2) The consent of the respondent shall not be necessary where the plaintiff abandons the action thereof in respect of the said respondent.(3) The plaintiff may direct the action thereof against a respondent who does not agree to intervene in the case. In such case, however, the action against the new respondent shall be considered brought as from the day on which the statement of action against the said respondent has been received in the court.Chapter SeventeenDEVIATIONS IN PROGRESS OF PROCEEDINGSection IStay, Resumption and Termination of ProceedingStay of ProceedingArticle 229. (1) The court shall stay the proceeding:1. by consent of the parties;2. in the event of death of any of the parties;3. where it is necessary to institute tutorship or curatorship for any of the parties;4. where a case is examined in the same or in another court and the judgment in the matter of the said case will be relevant to the correct resolution of the dispute;5. where, upon examination of a civil case, criminal circumstances are discovered and the outcome of the civil dispute depends on the establishment of the said circumstances;6. where the Constitutional Court has admitted to examination on the merits a motion whereby the constitutionality of a law applicable to the case is contested;7. in the cases expressly provided for in a law.(2) In the cases referred to in Item 1 of Paragraph (1), if the prosecutor participates in the case together with any of the parties, the stay shall require the consent of the said prosecutor as well. In the cases referred to in Items 2 and 3 of Paragraph (1), if the trial has been concluded, the proceeding shall be stayed after rendition of the judgment in the matter of the case.(3) A stay of the case with the consent of the parties shall be granted on a single occasion during the proceeding in the court of any instance.Resumption of ProceedingArticle 230. (1) The proceeding shall be resumed either ex officio or on a motion by one of the parties, after removal of the impediments to the progress of the case, for which the court, in the cases of a death of the plaintiff and under Items 3 to 6 of Article 229 (1) herein, shall take the appropriate measures of its own motion.(2) Upon death of the respondent, the plaintiff shall be obligated, within six months after the communication, to name the successors to the said respondent and the addresses of the said successors or to take measures for appointment of an administrator of the vacant succession or for summoning of the successors according to the procedure established by Article 48 herein. Upon failure to comply with this obligation, the case shall be dismissed.(3) Upon resumption, the proceeding shall commence from the step whereat the proceeding was stayed.Termination of ProceedingArticle 231. (1) A proceeding stayed by mutual consent of the parties shall be terminated if none of the parties has moved for the resumption of the proceeding within six months after the termination thereof. If a judgment has been rendered, it shall be invalidated.(2) Sentence two of Article 232 herein shall apply in the case referred to in Paragraph (1).Section IIWithdrawal of Action, Abandonment of Action, Court SettlementWithdrawal of ActionArticle 232. The plaintiff may withdraw the statement of action thereof without the consent of the respondent before the end of the first hearing of the case. If the plaintiff brings the same action again, the said plaintiff may use the evidence taken in the new case solely if there is a hardly surmountable impediment to the taking anew of the said evidence.Abandonment of ActionArticle 233. The plaintiff may abandon, in whole or in part, the right at issue during any stage of the proceeding. In such case, the plaintiff may not bring the same action again. Where the abandonment has been made before the court of intermediate appellate review instance or the court of cassation instance, the judgment appealed shall be invalidated.Court SettlementArticle 234. (1) A memorandum shall be drawn up on any settlement which does not conflict with the law and with good morals, and the said memorandum shall be approved by the court and shall be signed thereby and by the parties.(2) Where the prosecutor participates as a party to the case, the court shall approve the settlement after consulting the prosecutor as well.(3) The court settlement shall have the relevance of an effective judgment and shall not be appealable before a superior court.(4) Where the settlement refers to only part of the dispute, the court shall proceed with examination of the case in respect of the unsettled part.Chapter EighteenADJUDICATION OF CASESSection IJudgment in Matter of CaseRendition of JudgmentArticle 235. (1) The judgment shall be rendered by the court panel which has participated in the hearing during which the examination of the case was completed.(2) The court shall found the judgment thereof on the circumstances of the case held thereby as established and on the law.(3) The court shall furthermore take into account the facts which have intervened since the action was brought, which are relevant to the right at issue.(4) The judgment, together with the reasoning thereto, shall be reduced to writing.(5) The court shall publish the judgment thereof with the reasoning within one month after the hearing during which the examination of the case was completed. The judgment shall be published in the register of judgments of courts, which shall be open to public inspection and shall be freely accessible to everyone.Judgment: ContentArticle 236. (1) The judgment must contain:1. the date and place of rendition;2. a reference to the court, the names of the judges, of the clerk and of the prosecutor, where a prosecutor has participated in the case;3. the number of the case in the matter of which the judgment is rendered;4. the names or, respectively, the designation and the address of the parties;5. what the court decrees on the merits of the dispute;6. against whom the costs are awarded;7. whether the judgment is appealable, before which court and within what time limit.(2) The court shall set forth reasoning to the judgment, stating therein the demands and oppositions of the parties, the evaluation of evidence, the findings of fact and the legal conclusions reached by the court.(3) The judgment shall be signed by all judges who have participated in the rendition thereof. Where any of the judges is unable to sign the judgment, the presiding judge or the senior judge shall note the reasons for this on the judgment.Judgment upon Acknowledgment of DemandArticle 237. (1) Where the respondent acknowledges the demand, the court, acting on a motion by the plaintiff, shall terminate the trial and shall render judgment conforming to the acknowledgment.(2) The reasoning to the judgment shall suffice to state that the said judgment is based on the acknowledgment of the demand.(3) The court may not render judgment upon acknowledgment of the demand where:1. the right acknowledged conflicts with the law or with good morals;2. the right acknowledged is indisposable by the party.(4) An acknowledgment of the demand may not be withdrawn.Judgment by DefaultArticle 238. (1) If the respondent has failed to present an answer to the statement of action in due time and fails to appear during the first hearing of the case without having moved for examination of the case in the absence thereof, the plaintiff may move for rendition of a judgment by default against the respondent or may withdraw the action.(2) The respondent may not move for dismissal of the case and award of costs or for rendition of a judgment by default against the plaintiff if the said plaintiff fails to appear during the first hearing of the case, has not taken a stand on the answer to the statement of action, and has failed to move for examination of the case in the absence thereof. If the plaintiff brings the same action again, sentence two of Article 232 herein shall apply.(3) If the plaintiff has not cited and has not presented evidence by the statement of action thereof and the respondent has not submitted an answer in due time, and if both parties fail to appear during the first hearing of the case without having moved that the case be examined in the absence thereof, the case shall be dismissed.Rendition of Judgment by DefaultArticle 239. (1) The court shall render a judgment by default where:1. the parties have been instructed about the consequences of a failure to observe the time limits for exchange of papers and of the non-appearance of the parties during a court hearing;2. the action is probably well-founded considering the circumstances cited in the statement of action and the evidence presented or is probably unfounded considering the oppositions raised and the evidence supporting the said oppositions.(2) A judgment by default shall not be reasoned on the merits. It shall suffice to indicate in any such judgment that it is founded on the existence of the prerequisites for rendition of a judgment by default.(3) Where the court determines that the prerequisites for rendition of a judgment by default do not apply, the court shall deny the motion by a ruling and shall proceed with examination of the case.(4) A judgment by default shall be unappealable.Remedy against Judgment by DefaultArticle 240. (1) Within one month after the service of the judgment by default, the party where against the said judgment has been rendered may approach the intermediate appellate review court with a motion for reversal of the said judgment if the said party has been deprived of an opportunity to participate in the case owing to:1. undue service of the transcript of the statement of action or the summonses for the court hearing;2. an impossibility to learn in due time of the service of the transcript of the statement of action or the summonses for the court hearing owing to special unforeseen circumstances;3. an impossibility to appear in person or through counsel owing to special unforeseen circumstances which the party was unable to overcome.(2) The party where against a judgment by default has been rendered may claim the same right by an action or may contest the same right, where intervening, newly discovered circumstances or new written evidence of material relevance to the case are discovered, which could not have been known to the said party upon adjudication of the said case or which the said party could not procure in due time.(3) The action referred to in Paragraph (2) may be brought within three months after the day whereon the party learnt of the intervening circumstance or after the day whereon the party could procure the new written evidence, but not later than one year after extinguishment of the receivable.Section IIDeferral and Rescheduling of Enforcement. Anticipatory EnforcementDeferral and Rescheduling of EnforcementArticle 241. (1) Upon rendition of the judgment, the court may defer or reschedule the enforcement thereof considering the property status of the party or other circumstances.(2) The court may not reschedule the enforcement of any judgment in respect of which rescheduling is provided for by law.Admission to Anticipatory EnforcementArticle 242. (1) The court shall decree anticipatory enforcement of the judgment where the court awards maintenance, remuneration and compensation for work.(2) The court, acting on a motion by the plaintiff, may furthermore admit the judgment to anticipatory enforcement where:1. the court awards a receivable based on an official document;2. the court awards a receivable which has been acknowledged by the respondent;3. the delay of enforcement may result in material and irreparable damages to the plaintiff or the enforcement itself would become impossible or be considerably impeded.(3) In the cases referred to in Paragraph (2), the court may order the plaintiff to furnish due security in advance.Inadmissibility of Anticipatory EnforcementArticle 243. (1) Anticipatory enforcement shall not be admitted even against security if the enforcement may result in the infliction on the respondent of an irreparable damage or a damage which is unappraisable in terms of a specific monetary amount. Sentence one shall not apply to any judgments whereby maintenance or remuneration for work is awarded.(2) Enforcement of any judgment against the State, the government institutions and the medical-treatment facilities covered under Article 5 (1) of the Medical-Treatment Facilities Act, which has not entered into effect, shall be inadmissible.Appellate Review of RulingArticle 244. The ruling, whereby the judgment is admitted to anticipatory enforcement or such enforcement is refused, shall be appealable by an interlocutory appeal.Stay and Termination of Anticipatory EnforcementArticle 245. (1) The execution debtor where against anticipatory enforcement has been admitted may, except in the cases referred to in Article 242 (1) herein, stay the enforcement by furnishing security to the execution creditor according to Articles 180 and 181 of the Obligations and Contracts Act. (2) Enforcement shall furthermore be stayed where the judgment appealed is reversed.(3) If the action is thereafter dismissed by an effective judgment, enforcement shall be terminated. In such case the court which has rendered the judgment shall issue the execution debtor a writ of execution against the execution creditor for recovery of the amounts or corporeal things received on the basis of the anticipatory enforcement of the reversed judgment as admitted. For more information visit www.solicitorbulgaria.com id: 322 Fri, 01 Aug 2008 07:16:54 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-code-of-civil-procedure-part-1 http://web.solicitorbulgaria.com/index.php/bulgarian-code-of-civil-procedure-part-1 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/CODE_OF_CIVIL_PROCEDURE.JPG EUR http://web.solicitorbulgaria.com/index.php/bulgarian-code-of-civil-procedure-part-1 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Part OneBASIC PROVISIONSChapter OneSCOPE OF CODESubject MatterArticle 1. (1) The provisions of this Code shall govern:1. the international jurisdiction of the Bulgarian courts, of other authorities, and proceedings in international civil matters;2. the law applicable to relationships at private law with an international element;3. the recognition and enforcement of foreign judgments and other authentic instruments in the Republic of Bulgaria.(2) Within the meaning given by this Code, "relationship at private law with an international element" shall be a relationship involving two or more States.Closest Connection PrincipleArticle 2. (1) Relationships at private law with an international element shall be governed by the law of the State with which the said relationships are most closely connected. The provisions contained in the Code regarding the determination of the applicable law express this principle.(2) If the applicable law cannot be determined on the basis of the provisions of Part… For more information visit http://www.solicitorbulgaria.com id: 317 Part OneBASIC PROVISIONSChapter OneSCOPE OF CODESubject MatterArticle 1. (1) The provisions of this Code shall govern:1. the international jurisdiction of the Bulgarian courts, of other authorities, and proceedings in international civil matters;2. the law applicable to relationships at private law with an international element;3. the recognition and enforcement of foreign judgments and other authentic instruments in the Republic of Bulgaria.(2) Within the meaning given by this Code, "relationship at private law with an international element" shall be a relationship involving two or more States.Closest Connection PrincipleArticle 2. (1) Relationships at private law with an international element shall be governed by the law of the State with which the said relationships are most closely connected. The provisions contained in the Code regarding the determination of the applicable law express this principle.(2) If the applicable law cannot be determined on the basis of the provisions of Part Three herein, the law of the State with which the relationship has the closest connection by virtue of other criteria shall apply.Relations with International Treaties, InternationalInstruments and Other LawsArticle 3. (1) The provisions of this Code shall not affect the regulation of relationships at private law with an international element as established in an international treaty, in another international instrument in force for the Republic of Bulgaria, or in another law.(2) Upon application of an international treaty or of another international instrument, regard shall be had to the international character of the provisions thereof, to the qualification established in the said provisions, and to the need to achieve uniformity in the interpretation and application of the said provisions.Part TwoINTERNATIONAL JURISDICTION OF BULGARIAN COURTS ANDOTHER AUTHORITIES.PROCEEDINGS IN INTERNATIONAL CIVIL MATTERSChapter TwoJURISDICTION OF BULGARIAN COURTS AND OTHER AUTHORITIESGeneral JurisdictionArticle 4. (1) The Bulgarian courts and other authorities shall have international jurisdiction where:1. the defendant has a habitual residence, statutory seat or principal place of business in the Republic of Bulgaria;2. the claimant or applicant is a Bulgarian national or is a legal person registered in the Republic of Bulgaria.(2) Actions against a legal person, where the dispute has arisen out of direct relationships with a branch of the said person, may be brought before the Bulgarian courts if the branch is registered in the Republic of Bulgaria.Jurisdiction in Matters Relating to Personal RightsArticle 5. Apart from pursuant to Article 4 herein, the Bulgarian court and other authorities shall furthermore have jurisdiction:1. over matters relating to a change or protection of a name, where the person is a Bulgarian national or is habitually resident in the Republic of Bulgaria;2. over matters relating to limitation or deprivation of Bulgarian nationals of the capacity to enter into legal relationships;3. to establish and terminate guardianship or curatorship, where the person placed under guardianship or curatorship is a Bulgarian national or is habitually resident in the Republic of Bulgaria;4. to declare the absence unheard from or death of a person who is a Bulgarian national or who has a known habitual residence in the Republic of Bulgaria.Celebration of MarriageArticle 6. (1) Marriage in the Republic of Bulgaria shall be celebrated by a civil-status registrar if one of the future spouses is a Bulgarian national or is habitually resident in the Republic of Bulgaria.(2) Marriage between foreign nationals may be celebrated in the Republic of Bulgaria by a consular official or a diplomatic agent of the State of origin of the said foreign nationals, if this is permissible under the law of the said State.(3) Bulgarian nationals abroad may enter into marriage before a competent authority of the foreign State if this is permissible under the law of the said State.(4) Marriage between Bulgarian nationals abroad may be celebrated by a Bulgarian consular official or diplomatic agent if this is permissible under the law of the receiving State.(5) Marriage between a Bulgarian national and a foreign national may be celebrated abroad by a Bulgarian consular official or diplomatic agent if this is permissible under the law of the receiving State and the national law of the foreign national.Jurisdiction in Matrimonial MattersArticle 7. Matrimonial matters shall be cognizable in the Bulgarian courts if one of the spouses is a Bulgarian national or is habitually resident in the Republic of Bulgaria.Jurisdiction in Matters Relating to Interspousal Relationshipsin Personam and in RemArticle 8. Under the terms established by Article 7 herein, the Bulgarian courts shall furthermore have jurisdiction over matters relating to relationships in personam and in rem between spouses.Jurisdiction in Matters Relating to Establishment of ParenthoodArticle 9. (1) The Bulgarian courts and other authorities shall have jurisdiction over proceedings for establishment and contesting of parenthood except pursuant to Article 4 herein and where the child or the parent, who is a party, is a Bulgarian national or is habitually resident in the Republic of Bulgaria.(2) Under the terms established by Paragraph (1), this jurisdiction shall furthermore apply to matters relating to relationships in personam and in rem between parents and children.Jurisdiction in Matters Relating to AdoptionArticle 10. (1) The Bulgarian courts and other authorities shall have jurisdiction over matters relating to admission of adoption, annulment or revocation of adoption, except in the cases covered under Article 4 herein and where the adopter, the adoptee or one of the parents of the adoptee is a Bulgarian national or is habitually resident in the Republic of Bulgaria.(2) The Bulgarian courts shall have jurisdiction over matters relating to relationships in rem between adopter and adoptee, where the adopter or adoptee is a Bulgarian national or is habitually resident in the Republic of Bulgaria, as well as in the cases covered under Article 4 herein.Jurisdiction in Matters Relating to MaintenanceArticle 11. The Bulgarian courts shall have jurisdiction over actions on maintenance save in the cases under Article 4 (1) herein and where the maintenance creditor is habitually resident in the Republic of Bulgaria.Jurisdiction in Matters Relating to Rights in RemArticle 12. (1) (Amended, SG No. 59/2007) The matters under Article 109 of the Code of Civil Procedure relating to immovable property situated in the Republic of Bulgaria, the matters relating to enforcement or to security which such property constitutes, as well as the matters relating to transfer or establishment of rights in rem in such property, shall be exclusively cognizable in the Bulgarian courts and other authorities.(2) The Bulgarian courts shall have jurisdiction over actions on rights in rem in movable property, save in the cases covered under Article 4 herein and where the property is situated in the Republic of Bulgaria.Jurisdiction in Matters Relating to Intellectual Property RightsArticle 13. (1) The Bulgarian courts shall have jurisdiction over actions on copyrights and neighbouring rights, where protection is sought within the territory of the Republic of Bulgaria.(2) The Bulgarian courts shall have exclusive jurisdiction over actions on items of industrial property, where the patent has been issued or the registration has been effected in the Republic of Bulgaria.Jurisdiction in Matters Relating to SuccessionArticle 14. (Amended, SG No. 59/2007) The Bulgarian courts and other authorities shall have jurisdiction over actions under Article 110 of the Code of Civil Procedure and other proceedings relating to succession to the estates of deceased persons, where the deceased at the time of his or her death was habitually resident in the Republic of Bulgaria, or was then a Bulgarian national, as well as where part of the estate thereof is situated in the Republic of Bulgaria.Jurisdiction in Matters Relating to Rights Arising out ofContractual RelationshipsArticle 15. The Bulgarian courts shall have jurisdiction over actions on contractual relationships, save in the cases covered under Article 4 herein and where the place of performance of the obligation is within the Republic of Bulgaria or where the defendant has a principal place of business within the Republic of Bulgaria.Jurisdiction in Matters Relating to Consumer RightsArticle 16. (1) The Bulgarian courts shall have jurisdiction over actions brought by a consumer save in the cases covered under Article 4 herein and where the said consumer is habitually resident in the Republic of Bulgaria and the conditions under Article 95 (2) herein are in place.(2) An agreement on choice of court shall be admissible solely if entered into after the dispute has arisen.Jurisdiction in Labour DisputesArticle 17. (1) Matters relating to labour disputes shall be cognizable in the Bulgarian courts, where the factory or office worker habitually carries out his or her work in the Republic of Bulgaria, as well as in the cases covered under Article 4 herein.(2) An agreement on choice of court shall be admissible solely if entered into after the dispute has arisen.Jurisdiction in Matters Relating to Tortuous orDelictual RightsArticle 18. (1) The Bulgarian courts shall have jurisdiction over actions on damage sustained as a result of a tort or delict save in the cases covered under Article 4 herein and where the harmful act was committed in the Republic of Bulgaria or where the damage or part thereof occurred in the Republic of Bulgaria.(2) The jurisdiction referred to in Paragraph (1) shall furthermore apply to direct actions taken by the party who has suffered the damage against the insurer of the person claimed to be liable.Exclusive Jurisdiction in Matters Relating to the Legal Status ofLegal Persons Registered in the Republic of BulgariaArticle 19. (1) (Amended, SG No. 59/2007) The Bulgarian courts shall have exclusive jurisdiction over actions under Item 5 of Article 104 of the Code of Civil Procedure, where the legal person is registered in the Republic of Bulgaria.(2) Paragraph (1) shall apply to actions which have as their object the nullity or the dissolution of a corporation or another legal person, or the revocation of acts of bodies thereof, protection of membership, as well as challenge of the transformation of a commercial corporation and pecuniary balancing upon transformation, where the corporation or the other legal person is registered in the Republic of Bulgaria.Jurisdiction in Actions Brought against a Number of DefendantsArticle 20. The Bulgarian courts shall have jurisdiction over actions brought against a number of defendants if the grounds for jurisdiction exist in respect of one of the said defendants.Jurisdiction by Reason of Related ActionsArticle 21. (1) Where the Bulgarian courts have jurisdiction over one of the actions brought by the claimant, the said courts shall furthermore have jurisdiction over the rest of the actions if the connection between the cases necessitates that they be heard and determined together.(2) (Amended, SG No. 59/2007) Where the Bulgarian courts have international jurisdiction over the original claim, the said courts shall also have jurisdiction over the counter-claim under the terms established by Article 211 of the Code of Civil Procedure .Exclusive JurisdictionArticle 22. The international jurisdiction of the Bulgarian courts and other authorities shall be exclusive solely where so expressly provided for.Submission of Action to Foreign CourtArticle 23. (1) (Amended, SG No. 59/2007) Where an action is brought to assert a proprietary right and the dispute does not fall within the exclusive jurisdiction of the Bulgarian courts, any such action may be submitted to a foreign court by an agreement in writing between the parties. Where the Bulgarian court has been seized while such an agreement is in place, the defendant must raise his or her objection to the exercise of such jurisdiction within the time limit for response to the statement of action and before the court has taken a stand on the merits of the dispute. Sentence one shall not apply to actions on maintenance.(2) Under the terms established by sentence one of Paragraph (1), a case cognizable in a foreign court may be submitted to the Bulgarian courts. This shall not apply to actions on maintenance.(3) Save insofar as otherwise provided for by the agreement, it shall be presumed to confer on the Bulgarian or foreign courts exclusive jurisdiction over the dispute for the subject matter whereof the said agreement has been entered into.Tacit Establishment of Jurisdiction by Bulgarian CourtArticle 24. (Amended, SG No. 59/2007) Where the jurisdiction of the Bulgarian courts may be stipulated by an agreement under Article 23 (1) herein, the said jurisdiction may be established even without any such agreement if the defendant accepts the said jurisdiction expressly or tacitly through acts on the merits of the dispute within the time limit for response to the statement of action.Jurisdiction upon Securing a ClaimArticle 25. The Bulgarian courts shall furthermore have jurisdiction to secure a claim for the examination whereof they do not have international jurisdiction, if the subject matter of the conservatory attachment is situated in the Republic of Bulgaria and the judgment of the foreign court is entitled to recognition and enforcement in the Republic of Bulgaria.Jurisdiction to Coerce EnforcementArticle 26. The Bulgarian enforcement authorities shall have exclusive jurisdiction to take action for coercive enforcement where the obligation which is the subject to such action must be performed by a person habitually resident in the Republic of Bulgaria or where the subject matter of this action is situated in the Republic of Bulgaria.Jurisdiction upon Change of CircumstancesArticle 27. (1) Where the grounds for international jurisdiction existed when the case was instituted, the said jurisdiction shall be retained even if the said grounds lapse while the proceedings are in progress.(2) If the international jurisdiction did not exist when the case was instituted, the said jurisdiction shall be conferred if the grounds for it arise while the proceedings are in progress.Verification Proprio MotuArticle 28. The court shall of its own motion verify international jurisdiction. The determination of the existence of absence of such jurisdiction shall be subject to intermediate and cassation appeal.Chapter ThreePROCEEDINGSApplicable LawArticle 29. The Bulgarian courts and other authorities shall hear and determine cases pursuant to Bulgarian law.Rules of EvidenceArticle 30. (1) The apportionment of the burden of proof shall be determined by the substantive law which governs the consequences of the fact requiring proof.(2) (Amended, SG No. 59/2007) If the law applicable to the merits of the case admits testimony regarding the circumstances under Article 164 of the Code of Civil Procedure , this type of evidence shall be admissible if the fact materialized within the territory of the State whereof the law is applicable.(3) The securing of evidence which is situated in the Republic of Bulgaria shall be effected by the Bulgarian courts even if they do not have jurisdiction over the case for the determination of which the said evidence is required. The opposite party shall be notified of the day of the securing, unless it brooks no delay.Evaluation of Foreign Procedural ActsArticle 31. The Bulgarian courts and other authorities shall evaluate the validity of foreign procedural acts and authentic instruments in conformity with the law of the State where the said acts were performed or the said instruments issued.Summonsing and Service of DocumentsArticle 32. (1) The summonsing, as well as the service of notices and documents abroad, shall be effected through the Bulgarian diplomatic agents or consular officials and the competent foreign authorities. The Bulgarian authorities shall approach the said agents, officers and authorities through the Ministry of Justice according to a procedure established by the Minister of Justice.(2) Assistance from the Bulgarian diplomatic agents and consular officials shall be sought solely for acts in respect of Bulgarian nationals.Legal AddressArticle 33. (1) A party with a known address abroad shall be summonsed at the said address, with the writ of summons indicating that the said party may name a legal address in the Republic of Bulgaria.(2) The obligation referred to in Paragraph (1) shall furthermore apply to the legitimate representative, guardian and authorized representative of a person in the Republic of Bulgaria, should they leave the country.(3) Upon non-performance of the obligation referred to in Paragraphs (1) and (2), the subsequent writs of summons shall be filed with the case records and shall be presumed served. The party shall be notified of these consequences upon the first summonsing.Summonsing through RepresentativeArticle 34. Where a party has a known address abroad, the said party may be summonsed through a representative thereof in the Republic of Bulgaria, if the said representative has concluded on behalf of the said party the transaction in connection with which the proceedings have been instituted.Summonsing through PublicationArticle 35. (1) Where a party has a known address abroad and an attempt at summonsing at the said address has failed, the said party shall be summoned by means of a publication in the Unofficial Section of the State Gazette, effected at least one month prior to the date of the hearing.(2) If, notwithstanding the publication, the party does not appear at the hearing, the court shall appoint a representative of the said party.Judicial CooperationArticle 36. (1) The Bulgarian authorities shall be obliged to render judicial cooperation at the request of the foreign authorities, except where compliance with any such request is contrary to Bulgarian public policy.(2) The requested cooperation shall be provided in accordance with Bulgarian law. At the request of the foreign authority, the said cooperation may be provided in accordance with the foreign law provided this is compatible with Bulgarian law.(3) Where the Bulgarian authorities seek judicial cooperation abroad, the said authorities may request that the act be performed pursuant to Bulgarian law.Decline of Jurisdiction over Lawsuit PendingElsewhere (Lis Pendens)Article 37. The Bulgarian court shall of its own motion stay any proceedings brought before it if other proceedings based on the same facts, involving the same cause of action and between the same parties, were brought earlier before a foreign court and the latter proceedings are expected to be concluded within a reasonable time by a final judgment which is entitled to recognition and enforcement in the Republic of Bulgaria.Jurisdiction over Pre-conditioning Legal RelationshipArticle 38. (1) The Bulgarian court shall take a stand on legal relationships on which the outcome of the dispute depends, even where it does not have jurisdiction over the cases for such relationships.(2) Where a lawsuit is pending abroad on the pre-conditioning legal relationship, the Bulgarian court may stay the proceedings brought before it if there is reason to expect that the foreign judgment will be recognized in the Republic of Bulgaria.Part ThreeAPPLICABLE LAWChapter FourCOMMON PROVISIONSQualificationArticle 39. (1) Where determination of the applicable law depends on the qualification of the essential elements or of the relationships, the said qualification shall be performed according to Bulgarian law.(2) Where a specific legal institution or legal concept are unknown to Bulgarian law and cannot be defined through interpretation pursuant to Bulgarian law, the foreign law which governs the said institution or concept must be taken into consideration for the qualification thereof.(3) Upon performance of qualification, account must be taken of the international element in the relationships which are being settled and of the specifics of private international law.ReferralArticle 40. (1) Within the meaning given by this Code, the "law of a State" shall denote the legal standards of the said State, including the conflict of laws rules thereof, save as otherwise provided for in this Code or in another statute.(2) Remission to Bulgarian law and transmission to the law of a third State shall be inadmissible regarding:1. the legal status of legal persons and of bodies unincorporated;2. the formal requirements for legal transactions;3. the choice of applicable law;4. maintenance;5. contractual relationships;6. non-contractual relationships.(3) In the cases covered under Paragraph (1), where referral is admitted, Bulgarian substantive law or, respectively, the substantive law of the third State, shall apply.Applicable Law of State with Several Legal SystemsArticle 41. (1) Where the State whereof the law has been determined as applicable by this Code has several territorial units with separate legal systems, the law of that State shall determine which of the said systems shall apply.(2) Where a State has several territorial units each having its own legal regulation of contractual and non-contractual relationships, each territorial unit shall be treated as a separate State upon determination of the applicable law under Chapters Ten and Eleven herein.(3) Where the State whereof the law has been determined as applicable by this Code comprises several legal systems applicable to different categories of persons, the law of that State shall determine which of the said systems shall apply.(4) Where the law of the State referred to in Paragraphs (1) and (3) does not lay down criteria for determination of the applicable legal system, the legal system with which the relationship has the closest connection shall apply.Change of Determination CriterionArticle 42. No subsequent change of circumstances on the basis of which the applicable law has been determined shall be retroactive.Establishment of Content of Foreign LawArticle 43. (1) The court or another authority applying the law shall of its own motion establish the content of the foreign law. The said court may resort to the methods provided for in international treaties, may request information from the Ministry of Justice or from another body, as well as request opinions from experts and specialized institutions.(2) The parties may present documents establishing the content of the provisions of foreign law on which they base their motions or objections, or otherwise assist the court or another authority applying the law.(3) Upon choice of applicable law, the court or another authority applying the law may order the parties to assist in the establishment of the content of the said law.Interpretation and Application of Foreign LawArticle 44. (1) The foreign law shall be interpreted and applied as it is interpreted and applied in the State which created the said law.(2) Non-application of a foreign law, as well as its misinterpretation and misapplication, shall be a ground for appeal.Public PolicyArticle 45. (1) A provision of a foreign law determined as applicable by this Code shall not apply only if the consequences of such application are manifestly incompatible with Bulgarian public policy.(2) Incompatibility shall be evaluated while taking account of the extent of connection of the relationship with Bulgarian public policy and the significance of the consequences of application of the foreign law.(3) Where an incompatibility referred to in Paragraph (2) is established, another appropriate provision of the same foreign law shall be applied. In the absence of such a provision, a provision of Bulgarian law shall apply, if necessary for settlement of the relationship.Special Mandatory RulesArticle 46. (1) The provisions of this Code shall not affect the application of the mandatory rules of Bulgarian law which, considering their subject matter and purpose, must be applied notwithstanding the referral to a foreign law.(2) The court may have regard to the mandatory rules of another State with which the relationship has a close connection if the said rules, according to the law of the State that created them, must be applied notwithstanding what law has been determined as applicable by a conflict of laws rule of this Code. To decide whether to have regard of such special mandatory rules, the court must have regard to the nature of the said rules and the subject matter thereof, as well as to the consequences of the application or non-application thereof.ReciprocityArticle 47. (1) The application of a foreign law shall be independent of any requirement of reciprocity.(2) In case a statutory instrument requires reciprocity, the existence of such reciprocity shall be presumed until the contrary is established.Chapter FiveLEGAL STATUS OF SUBJECTSSection ILegal Status of Natural PersonsCommon ProvisionsArticle 48. (1) Within the meaning given by this Code, the national law of a person (lex patriae) shall be the law of the State of the nationality of the said person.(2) The national law of a person holding dual or multiple nationality, of which one is Bulgarian nationality, shall be Bulgarian law.(3) The national law of a person who is a national of two or more foreign States shall be the law of the State of habitual residence of the said person. Where the person does not have a habitual residence in any State whereof the said person is a national, the law of the State with which the said person has the closest connection shall apply.(4) Within the meaning given by this Code, the national law of a stateless person shall be the law of the State of habitual residence of the said person.(5) Within the meaning given by this Code, the national law of a person with a recognized refugee status and of an asylee shall be the law of the State of habitual residence of the said person.(6) Where in the cases referred to in Paragraphs (3), (4) and (5) the person does not have a habitual residence or such cannot be established, the law of the State with which the said person has the closest connection shall apply.(7) Within the meaning given by this Code, "habitual residence of a natural person" shall denote the place where the said person has settled predominantly to live without this being related to a need of registration or authorization of residence or settlement. For determination of this place, special regard must be had to circumstances of personal or professional nature arising from sustained connections of the person with the said place or from the intention of the said person to establish such connections.Capacity to Have Rights and DutiesArticle 49. (1) The capacity of a person to have rights and duties shall be governed by the national law thereof.(2) Foreign nationals and stateless persons shall have in the Republic of Bulgaria the same rights as Bulgarian nationals, save as otherwise provided for by statute.Capacity to Enter into Legal RelationshipsArticle 50. (1) The capacity of a person to enter into legal relationships shall be governed by the national law thereof. Where the law applicable to a specific relationship establishes special conditions regarding the capacity to have rights and duties, the said law shall apply.(2) Where the contract is entered into between persons who are present within the territory of the same State, the person who is capable of having rights and duties under the law of that State may not invoke the incapacity thereof under the law of another State, except where the opposite party was aware of the said incapacity or was unaware of the said incapacity through negligence at the time of conclusion of the contract.(3) The provision of Paragraph (2) shall not apply to any transactions in family and succession relationships, as well as to any transactions regarding rights in rem in immovable property situated in a State other than the State of the place of conclusion of the transaction.Acquired Capacity to Have Rights and Duties and to Enter intoLegal RelationshipsArticle 51. The capacity to have rights and duties and to enter into legal relationships, which is acquired pursuant to national law, shall not be affected by a change of nationality.Capacity to Carry Out Activities of Commercial NatureArticle 52. The capacity of a person to carry out activities of a commercial nature without incorporation of a legal person shall be determined by the law of the State where the person is registered as a merchant. Where registration is not required, the law of the State where the person has a principal place of business shall apply.NameArticle 53. (1) The name of a person and the change of the said name shall be governed by the national law of the person.(2) The effect of the change of nationality on the name shall be determined by the law of the State whose nationality the person has acquired. Where any such person is stateless, the effect of the change of his or her habitual residence on the name shall be determined by the law of the State in which the said person establishes his or her new habitual residence.(3) The protection of the name shall be governed by the law which is applicable according to the provisions of Chapter Eleven herein.(4) The name and the change thereof may be governed by Bulgarian law, should this be requested by a person who is habitually resident in the Republic of Bulgaria.Limitation and Deprivation of Capacity to Enter intoLegal RelationshipsArticle 54. (1) The terms and consequences of limitation or deprivation of the capacity of a person to enter into legal relationships shall be governed by the national law of the said person. Where a person is habitually resident within the territory of the Republic of Bulgaria, the court may apply Bulgarian law.(2) The law applied according to Paragraph (1) shall furthermore govern the terms for revocation of the limitation or deprivation of the capacity to enter into legal relationships.Declaration of Absence Unheard from and DeathArticle 55. (1) The terms and consequences of declaration of an absence unheard from and of death shall be governed by the law of State whose nationality the person held when last heard from. Where any such person is stateless, the terms and consequences of declaration of an absence unheard from and of death shall be governed by the law of State where the said person was last habitually resident.(2) The provisional measures for conservation of the property of a person situated within the territory of the Republic of Bulgaria shall be governed by Bulgarian law.(3) Any person, who was habitually resident in the Republic of Bulgaria, may be declared absent unheard from or dead under Bulgarian law, should this be requested by a justifiably interested party.Section IILegal Status of Legal Persons, Unincorporated Entitiesand the StateLegal PersonsArticle 56. (1) Legal persons shall be governed by the law of the State where the said persons are registered.(2) Where no registration is required for incorporation of the legal person, or where the legal person is registered in several States, the applicable law shall be the law of the State in which the statutory seat thereof is situated.(3) If in the cases under Paragraph (2) the situs of the statutory seat is different from the situs of the actual place of management of the legal person, the law of the State where the actual place of management thereof is situated shall apply.(4) The branch of a legal person shall be governed by the law of the State in which the said branch is registered.Bodies UnincorporateArticle 57. Associations or organizations which are not legal persons shall be governed by the law of the State in which the said entities are registered or instituted.Scope of Applicable LawArticle 58. The law applicable to the persons covered under Articles 56 and 57 herein shall govern:1. the establishment, the legal nature, and the form of legal organization thereof;2. the name or the corporate designation;3. the legal personality and the system of management;4. the composition, competence and functioning of the bodies;5. the representation;6. the acquisition and loss of membership, as well as the rights and duties thereto incidental;7. the liability for obligations;8. the consequences of violations of the law or of the basic instrument;9. the transformation and dissolution.Transfer of Central Administration and TransformationArticle 59. The transfer of the central administration to another State and the transformation of legal persons with central administration in different States shall take effect solely if carried out in accordance with the law of the said States.Participation of State in Relationships at Private Law withInternational ElementArticle 60. The provisions of this Code shall furthermore apply to the relationships at private law with an international element, whereto a State is a party, save as where otherwise established by statute.Chapter SixLEGAL TRANSACTIONS, AGENCY AND EXTINCTIVE PRESCRIPTIONFormal Requirements for Legal TransactionsArticle 61. The formal requirements for legal transactions shall be governed by the law applicable to the transaction. Compliance with the formal requirements as established by the law of the State where performance of the transaction is to be made shall, however, suffice.Relationships between Principal and Third Party inVoluntary AgencyArticle 62. (1) In the relationships between the principal and the third party, the existence and the extent of the authority of the agent, as well as the effects of the agent's actual or purported exercise of the authority thereof, shall be governed by the law of the State in which the agent had his or her principal place of business at the time of performance of the relevant acts.(2) Notwithstanding the provision of Paragraph (1), the law of the State in which the agent has acted shall apply if:1. the principal place of business of the principal or the habitual residence thereof is situated in that State, and the agent has acted in the name of the principal, or2. the principal place of business of the third party or the habitual residence thereof is situated in that State, or3. the agent has acted at an exchange or auction, or4. the agent has no principal place of business.(3) The agent or the third party may choose in writing the law governing the matters covered under paragraph (1). The choice of applicable law must be expressly accepted by the other party and must not prejudice the interests of the agent.Extinctive PrescriptionArticle 63. The law governing the relevant relationship shall apply to extinctive prescription.Chapter SevenRIGHTS IN REM AND INTELLECTUAL PROPERTY RIGHTSSection IRights in RemCommon ProvisionsArticle 64. (1) Possession, ownership and other rights in rem in movable and immovable property shall be governed by the law of the State in which the property is situated (lex loci rei sitae).(2) The evaluation as to whether a corporeal object is movable or immovable, as well as the type of the rights in rem, shall be determined by the law specified in Paragraph (1).Acquisition and Termination of Rights in RemArticle 65. (1) The acquisition and termination of proprietary and possessory rights shall be governed by the law of the State in which the corporeal object is situated during performance of the act or occurrence of the circumstance justifying the acquisition or termination.(2) The acquisition of ownership and other rights in rem on the grounds of acquisitive prescription shall be governed by the law of the State in which the corporeal object was situated at the time of lapse of the period of acquisitive prescription. The time of possession in another State shall be assimilated to the said period.Acquired RightsArticle 66. Upon change of the place in which the corporeal object is situated, the rights acquired pursuant to the law of the State in which the corporeal object was situated may not be exercised to the prejudice of the law of the State in which the said object is newly situated.Corporeal Objects in TransitArticle 67. (1) The acquisition and termination of rights in rem in corporeal objects in transit shall be governed by the law of the State of destination of the said objects.(2) The rights in rem in corporeal objects for personal use carried by a passenger shall be governed by the law of the State where the passenger is habitually resident.Means of TransportArticle 68. The acquisition, transfer and termination of rights in rem in means of transport shall be governed by:1. the law of the flag of the ship;2. the law of the State where the aircraft is registered;3. the law of the State where the person operating the railway rolling stock and land motor vehicles has its place of business.RecordingArticle 69. The recording of legal transactions for the acquisition, transfer and extinguishment of rights in rem shall be governed by the law of the State in which the corporeal object was situated at the time of performance of the transaction.Cultural PropertyArticle 70. Where a given corporeal object belonging to the cultural heritage of a specific State has been wrongfully removed from the territory of the said State, the request of the said State for return of the said object shall be governed by the law of the said State, except where the said State has opted for application of the law of the State in which the object is situated at the time of making the request for return.Section IIIntellectual Property RightsCommon ProvisionsArticle 71. (1) The arising, content, transfer and termination of copyright and of rights neighbouring on copyright shall be governed by the law of the State for which the protection of the said rights is sought (lex loci protectionis).(2) The arising, content, transfer and termination of industrial property rights shall be governed by the law of the State in which the patent has been issued or the registration has been effected or, respectively, in which an application for a patent or for registration has been filed.Rights in Intellectual Property Items Prepared within the Scope ofEmploymentArticle 72. The law governing the contract of employment shall furthermore apply to the relationships between the employer and the author, the holder of intellectual property rights in respect of intellectual property items prepared within the scope of employment.Law Applicable to AgreementsArticle 73. The agreements transferring rights or granting consent to the use of intellectual property rights shall be governed by the law applicable according to Chapter Ten herein.Section IIIScope of Law Applicable to Rights in Rem and to Intellectual PropertyRightsScope of Applicable LawArticle 74. The applicable law, determined according to the provisions of Sections I and II of this Chapter, shall govern:1. the existence, type, content and scope of the rights;2. the holders of the rights;3. the transferability of the rights;4. the methods of creation, modification, transfer and extinguishment of the rights;5. the need of recording and the enforceability of the rights against third parties.Chapter EightFAMILY RELATIONSHIPSFormal Requirements for MarriageArticle 75. (1) The formal requirements for marriages shall be governed by the law of the State of celebration.(2) The formal requirements for marriages celebrated by a duly empowered diplomatic agent or consular official shall be governed by the law of the sending State.(3) The validity of a marriage celebrated abroad shall be recognized in the Republic of Bulgaria if the formal requirements established in the law applicable under Paragraphs (1) and (2) have been satisfied.Substantive Requirements for Entry into MarriageArticle 76. (1) The substantive requirements for entry into marriage shall be governed for each of the future spouses by the law of the State of which the person was a national at the time of celebration of the marriage. In respect of a Bulgarian national who enters into marriage abroad, the authorization referred to in Article 12 (2) of the Family Code may be granted by the Bulgarian diplomatic agent or consular official.(2) Where one of the future spouses is a Bulgarian national or is habitually resident in the Republic of Bulgaria, the marriage shall be celebrated by a Bulgarian civil-status registrar and if the applicable foreign internal law establishes any impediment to the entry into marriage which, under Bulgarian law, is incompatible with the freedom to enter into marriage, the said impediment shall be disregarded.Establishment of Absence of ImpedimentsArticle 77. A foreign national or a stateless person must certify to the Bulgarian civil-status registrar that:1. the national law of the said person recognizes the validity of a marriage celebrated by a foreign competent authority;2. there are no impediments to entry into the said marriage under the national law of the said person.Marriage AnnulmentArticle 78. Marriage annulment shall be governed by the law which was applicable to the substantive requirements for entry into the marriage.Interspousal Relationships in Personam and in RemArticle 79. (1) The relationships in personam between spouses shall be governed by the common national law thereof.(2) The relationships in personam between spouses holding different nationalities shall be governed by the law of the State in which they have a common habitual residence or, in the absence of such habitual residence, by the law of the State with which both spouses are most closely connected.(3) The relationships in rem between spouses shall be governed by the law applicable to the relationships in personam there between.(4) Spouses may select an applicable law to govern the relationships in rem therebetween if this is admissible under the law determined in Paragraphs (1) and (2).Agreement on Choice of Applicable LawArticle 80. (1) The choice of applicable law under Article 79 (4) herein must be evidenced in writing, dated and signed by the spouses.(2) The entry into and the validity of the agreement on choice shall be governed by the selected law.(3) The choice may be made before or after entry into the marriage. The spouses may change or revoke the choice of applicable law. Where the choice has been made after entry into the marriage, the said choice shall take effect as from the time of entry into the marriage unless otherwise agreed between the parties.Enforceability of Choice of Applicable LawArticle 81. If the relationships in rem between spouses are governed by a selected foreign law, they shall be enforceable against third parties solely if the said parties were aware of the application of the said law or were unaware through negligence. Enforceability shall apply to rights in rem in immovable property solely if the requirements for recording, established by the law of the State in which the property is situated, have been satisfied.DivorceArticle 82. (1) A divorce between spouses possessing the same foreign nationality shall be governed by the law of the State whose nationals the said spouses were upon submission of the application for divorce.(2) A divorce between spouses possessing different nationalities shall be governed by the law of the State in which the said spouses have a common habitual residence at the time of submission of the application for divorce. Where the spouses have no common habitual residence, Bulgarian law shall apply.(3) If the applicable foreign law does not admit the divorce and at the time of submission of the application for divorce one of the spouses was a Bulgarian national or was habitually resident in the Republic of Bulgaria, Bulgarian law shall apply.Establishment of ParenthoodArticle 83. (1) Establishment of parenthood shall be governed by the law of the State whose nationality the child acquired at the time of birth.(2) Notwithstanding the application of Paragraph (1), the following law may be applied should this be more favourable to the child:1. the law of the State of which the child is a national or in which the child is habitually resident at the time of establishment of parenthood, or2. the law applicable to the relationships in personam between the parents at the time of birth.(3) Referral to the law of a third State shall be admissible where the said law admits establishment of the parenthood of the child.(4) Affiliation shall be effective if it conforms to the national law of the affiliator or to the national law of the child at the time of affiliation, or by the law of the State in which the child has a habitual residence at the time of affiliation.(5) The formal requirements for affiliation shall be governed by the law of the State were the affiliation has been effected, or by the law applicable according to Paragraph (4).AdoptionArticle 84. (1) The conditions for adoption shall be governed by the law of the State of which the adopter (or adopters) and the adoptee are nationals at the time of submission of the application for adoption.(2) Should the said persons hold different nationalities, the national law of each of the persons shall apply.(3) Where the adoptee is a Bulgarian national, the consent of the Minister of Justice shall be requested. The terms and procedure for the grant of consent to adoption of a person who is a Bulgarian national by a foreign national shall be established by an ordinance of the Minister of Justice.(4) Where the adoptee is a Bulgarian national, the adopter, whether a Bulgarian or a foreign national habitually resident in another State, must satisfy the conditions for adoption under the law of that State as well.(5) The effect of adoption shall be governed by the common national law of adopter and adoptee. If adopter and adoptee hold different nationalities, the law of the State in which they have a common habitual residence shall apply.(6) Annulment of adoption shall be governed by the law which was applicable to the conditions for the adoption according to Paragraphs (1), (2) and (4).(7) The grounds for revocation of adoption, apart from annulment under Paragraph (6), shall be governed by the law applicable to the act of adoption according to Paragraph (5).(8) Upon revocation of adoption, regard must be had to the best interests of the adoptee who has not attained full legal age.Relationships between Parents and ChildrenArticle 85. (1) The relationships between parents and children shall be governed by the law of the State in which they have a common habitual residence.(2) If parents and child have no common habitual residence, the relationships therebetween shall be governed by the law of the State in which the child has a habitual residence or by the national law thereof, should this be more favourable to the child.Guardianship and CuratorshipArticle 86. (1) The institution and termination of guardianship and curatorship shall be governed by the law of the State in which the person who is placed under guardianship or curatorship has a habitual residence.(2) The relationships between the person placed under guardianship or curatorship and the guardian or curator shall be governed by the law which applied according to Paragraph (1).(3) The obligation to accept guardianship or curatorship shall be governed by the national law of the person designated as guardian or curator.(4) Provisional or urgent protection measures may be taken under Bulgarian law where the person or any movable or immovable property thereof is situated within the territory of the Republic of Bulgaria.MaintenanceArticle 87. (1) Maintenance obligations shall be governed by the law of the State in which the maintenance creditor has a habitual residence, save as where the national law thereof is more favourable to the said creditor. In such case, the national law of the maintenance creditor shall apply.(2) Where the maintenance creditor and the maintenance debtor are nationals of the same State and the maintenance debtor is habitually resident in that State, the common national law of the two persons shall apply.(3) Where the law applicable under Paragraphs (1) and (2) does not admit the award of maintenance, Bulgarian law shall apply.(4) Where maintenance obligations between former spouses arise by reason of annulment of a marriage or by reason of divorce, the applicable law shall be the law which applied according to Article 78 or Article 82 herein, as the case may be.Scope of Law Applicable to MaintenanceArticle 88. (1) The law applicable to maintenance shall determine:1. whether maintenance may be claimed, to what amount and by whom;2. who can claim maintenance and within what time limits;3. whether and under what terms the maintenance may be modified;4. the grounds for extinguishment of the right to maintenance;5. the obligation of the maintenance debtor to reimburse the authority which paid the maintenance instead of the said debtor.(2) Upon determination of the amount of maintenance, account must be taken of the financial capabilities of the maintenance debtor and of the actual needs of the maintenance creditor, even where the applicable foreign law provides for otherwise.Chapter NineSUCCESSION RELATIONSHIPSSuccession by Operation of LawArticle 89. (1) Succession to movable property shall be governed by the law of the State in which the antecessor had a habitual residence upon death.(2) Succession to immovable property shall be governed by the law of the State in which the said property is situated.(3) The antecessor may designate the law of the State of which the said antecessor was a national at the time of the designation to govern the succession to the whole of the estate thereof.(4) The conditions for material validity of the act of designation of applicable law and the revocation of the said designation shall be governed by the law designated. The designation of applicable law and the revocation of the said designation must be expressed in a statement made in accordance with the formal requirements for testamentary dispositions.(5) The choice of applicable law must not affect the reserved share of the heirs determined under the law applicable according to Paragraphs (1) and (2).Testamentary SuccessionArticle 90. (1) The capacity of a person to dispose of the property thereof by means of a will (making and revocation) shall be governed by the law applicable according to Article 89 herein.(2) A will shall be formally valid if it conforms to the law of the State:1. in which it was made, or2. of which the testator was a national at the time of making the will or upon death, or3. in which the testator was habitually resident at the time of making the will or upon death, or4. in which the immovable property subject to the will is situated.(3) Paragraph (2) shall furthermore apply to the form of revocation of the testamentary disposition.Scope of Applicable LawArticle 91. The law applicable to succession shall govern:1. the time and place of opening of the succession;2. the range and precedence of the heirs, devisees and legatees;3. the respective shares of the heirs, devisees and legatees;4. the capacity to inherit;5. the assumption of the obligations of the deceased and the apportionment of the said obligations among the heirs, devisees and legatees;6. the acceptance and renunciation of succession;7. the time limits for acceptance of the succession;8. the disposable part of the estate;9. the conditions for material validity of the will.Vacant SuccessionArticle 92. Where under the law applicable there is no heir, devisee or legatee under a disposition of property upon death and no natural person is an heir by operation of law, the assets of the estate situated within the territory of the Republic of Bulgaria shall be appropriated by the Bulgarian State or by the municipality.Chapter TenCONTRACTUAL RELATIONSHIPSChoice of Applicable LawArticle 93. (1) Contracts shall be governed by the law chosen by the parties. Any such choice must be expressed or clearly demonstrated by the terms of the contract or by the circumstances whereunder the contractual relationship evolves.(2) Unless otherwise agreed, the parties shall be presumed to have accepted as applicable the usage of which the parties are or ought to have been aware and which is widely known in international trade or commerce, and regularly observed by, parties to contracts of the type involved in the particular trade or commerce involved.(3) By their choice, the parties can select a law applicable to the whole or a part only of the contract.(4) The parties may at any time agree to subject the contract in whole or in part to a law other than that which previously governed the said contract. Any variation by the parties of the law to be applied, made after the conclusion of the contract, shall not prejudice the formal validity of the contract according to Article 98 herein or adversely affect the rights of third parties.(5) Where all the elements of a contract at the time of choice are connected with one State only, the choice of a foreign law must not prejudice the application of the mandatory rules of the said State which cannot be derogated from by contract.(6) The existence and validity of the consent of the parties as to the choice of the applicable law shall be determined in accordance with the provisions of Articles 97 and 98 herein.Applicable Law in the Absence of ChoiceArticle 94. (1) To the extent that the parties have not chosen an applicable law, the law of the State with which the contract is most closely connected shall apply. If any part of the contract can be separated from the other clauses thereof and should the said part have a closer relation to another State, the law of the latter may apply as an exception.(2) It shall be presumed that the contract is most closely connected with the State in which the party who is to effect the performance which is characteristic of the contract has, at the time of conclusion of the contract, his or her habitual residence or central administration.(3) If the contract is entered into in the course of the trade or profession of the party referred to in Paragraph (2), it shall be presumed that the contract is most closely connected with the State within whose territory the main place of business is situated. If the place where the performance is effected differs from the main place of business of the party, it shall be presumed that that the contract is most closely connected with the State within whose territory, as of the moment of the contract conclusion, the place of business wherethrough the performance is to be effected is situated.(4) The provisions of Paragraphs (2) and (3) shall not apply if the performance which is characteristic of the contract cannot be determined.(5) Where the subject matter of the contract is a right in immovable property, it shall be presumed that the contract is most closely connected with the State in which the said immovable property is situated.(6) The provisions of Paragraphs (2) and (3) shall not apply to a contract for the carriage of goods. It shall be presumed that a contract for the carriage of goods is most closely connected with the State within whose territory the principal place of business of the carrier is situated at the time of conclusion of the contract, subject to the condition that:1. the place of loading, or2. the place of discharge, or3. the principal place of business of the consignoris also situated in that State.(7) The provision of Paragraph (6) shall furthermore apply to single voyage charter parties or to other contracts whereof the main purpose is the carriage of goods.(8) The provisions of Paragraphs (2), (3), (5), (6) and (7) shall not apply if it appears from the circumstances as a whole that the contract is more closely connected with another State. In such case, the law of that other State shall apply.Law Applicable to Consumer ContractsArticle 95. (1) Within the meaning given by this Code, "consumer contract" shall be a contract under which one of the parties is a person who acquires goods, uses services, or is granted credit for the needs thereof or for the needs of the family thereof rather than for sale, production or practice of a trade.(2) A consumer contract shall be governed by a law chosen by the parties. A choice of applicable law must not deprive the consumer of the protection afforded thereto by the mandatory rules of the State in which the said consumer is habitually resident where:1. the conclusion of the contract in that State was preceded by a specific invitation addressed to the consumer or by advertising, and the consumer had taken in that State all the steps required for the conclusion of the contract, or2. the other party or an agent of the said party received the consumer's order in that State, or3. the contract is for the sale of goods and, for the purpose of inducing the consumer to buy goods, the seller arranged the consumer's journey to another State where the consumer gave his or her order.(3) Where the parties have not chosen an applicable law, the contracts entered into in the circumstances described in Paragraph (2) shall be governed by the law of the State in which the consumer is habitually resident.(4) The provisions of Paragraphs (2) and (3) shall not apply to contracts of carriage and to contracts for the supply of services where the services are to be supplied to the consumer exclusively in a State other than that in which the consumer is habitually resident. Any such contracts shall be governed according to Articles 93 and 94 herein.(5) The contracts which, for an inclusive price, provide for a combination of travel and accommodation, shall be governed by the law determined as applicable under Paragraphs (2) and (3).Law Applicable to Individual Employment ContractsArticle 96. (1) An employment contract shall be governed by the law chosen by the parties. A choice of applicable law must not deprive the factory or office worker of the protection afforded thereto by the mandatory rules of the law which would be applicable in the absence of choice of applicable law.(2) In the absence of choice of applicable law, a contract of employment shall be governed by the law of the State in which the factory or office worker habitually carries out his or her work, even if he or she is temporarily employed in another State.(3) Where the factory or office worker does not habitually carry out his or her work in any one State, the law of the State in which the employer is habitually resident or in which the employer's principal place of business is situated shall apply.(4) If, in the cases covered under Paragraphs (2) and (3), it appears from the circumstances as a whole that the contract is more closely connected with another State, the law of that other State shall apply.Conclusion and Material Validity of ContractsArticle 97. (1) The conclusion and material validity of a contract, or of any separate provision of a contract, shall be governed by the law of the State which, according to this Chapter, would be applicable if the contract or provision were valid.(2) To establish that he or she did not consent, each party may invoke the law of the State in which the said party is habitually resident if it appears from the circumstances that it would not be reasonable to determine the effect of his or her conduct in accordance with the law specified in Paragraph (1).Formal Requirements for ContractsArticle 98. (1) A contract shall be formally valid if it satisfies the formal requirements established by the law applicable to the contract according to the provisions of this Chapter or by the law of the State in which the contract is concluded.(2) A contract concluded at a time when the parties are present in different States shall be formally valid if it satisfies the formal requirements established by the law applicable to the contract according to the provisions of this Chapter or by the law of one of those States.(3) Where a contract is concluded by an agent, account must be taken of the law of the State within whose territory the agent is present upon application of Paragraphs (1) and (2).(4) A consumer contract concluded in the circumstances described in Article 95 (2) herein shall be formally valid if it satisfies the formal requirements established by the law of the State in which the consumer is habitually resident.(5) A unilateral act intended to have legal effect relating to an existing or contemplated contract is formally valid if it satisfies the formal requirements established by the law which, by virtue of the provisions of this Chapter, governs or would govern the contract, or by the law of the State where the act was done.(6) A contract whereof the subject matter is a right in rem in immovable property shall be subject to the mandatory formal requirements established by the law of the State in which the immovable property is situated, to the extent that by the law of the State the said requirements are imposed irrespective of the State where the contract is concluded and irrespective of the law governing the contract.SubrogationArticle 99. (1) Where a third party has a duty to satisfy a creditor or has satisfied a creditor, the law which governs the third party's duty to satisfy the creditor shall determine whether and to what extent the said third party is entitled to exercise against the debtor in full or to a limited extent the rights which the satisfied creditor had against the debtor under the law governing their relationship.(2) Paragraph (1) shall furthermore apply in the cases where several persons are subject to the same duty and one of the said persons has satisfied the creditor.Assignment of ClaimArticle 100. (1) The relationship between an assignor and an assignee of a claim shall be governed by the law which, according to the provisions of this Chapter, applies to the contract of assignment.(2) The law governing the claim assigned shall determine the assignability of the said claim, the relationship between assignee and debtor, the conditions whereunder the assignment can be invoked against the debtor, and the discharging effect of payment by the debtor.Burden of ProofArticle 101. (1) The law governing the contract according to the provisions of this Chapter shall furthermore apply in connection with the proving of the contract, to the extent that the said law contains rules which raise presumptions of law or other provisions regarding the burden or proof.(2) A contract or a unilateral act intended to have legal effect may be proved by any mode of proof admissible under the law of the State of the court seized (lex fori) or under the law referred to in Article 98 herein, according to which the said contract or act is formally valid.Scope of Applicable LawArticle 102. (1) The law applicable to the contract, as determined by the provisions of this Chapter, shall govern:1. the interpretation of the contract;2. the performance of the obligations;3. the consequences of full or partial non-performance of obligations;4. the assessment of damages;5. the grounds for extinguishment of the obligations;6. the consequences of nullity of the contract;7. the extinctive prescription;8. the termination of rights consequent to the lapse of a specified period.(2) In relation to the manner of performance and the steps that the creditor may take in the event of non-performance, the court shall have full or partial regard to the law of the State in which performance of the contract takes place (lex loci solutionis).Interpretation and Application of the Provisions of this ChapterArticle 103. In the interpretation and application of the provisions of this Chapter, regard must be had to:1. the circumstance that the said provisions are aligned with the Convention on the Law Applicable to Contractual Obligations of 19 June 1980, concluded in Rome by the Member States of the European Community, and2. the need to achieve uniformity in the manner in which the rules of the said Convention are interpreted and applied in the States for which it is in force.Inapplicability of the Provisions of this ChapterArticle 104. The provisions of this Chapter shall not apply to any obligations arising under a bill of exchange, a promissory note and a cheque.Chapter ElevenNON-CONTRACTUAL RELATIONSHIPSSection ITort or DelictCommon ProvisionsArticle 105. (1) The obligations arising out of a tort or delict shall be governed by the law of the State within whose territory the direct damage arises or is likely to arise (lex loci delicti commissi).(2) Where the author of the tort or delict and the person sustaining damage both have their habitual residence or a place of business in the same State at the time when the damage occurs, the law of that State shall apply.(3) Notwithstanding the provisions of Paragraphs (1) and (2), if it appears from the circumstances as a whole that the tort or delict is manifestly more closely connected with another State, the law of that other State shall apply. A manifestly closer connection may be based on a pre-existing relationship between the parties, such as a contract that is closely connected with the tort or delict in question.Product LiabilityArticle 106. (1) Where the damage is caused or there is a risk of damage being caused by a defective product, the obligation for compensation shall be governed by the law of the State in which the person sustaining the damage is habitually resident, unless the person claimed to be liable can show that the product was introduced into the market of that State without the consent of the said person. In such case, the applicable law shall be the law of the State of the habitual residence or the place of business of the person claimed to be liable.(2) Paragraph (1) shall not affect the application of the provisions of Article 105 (2) and (3) herein.Unfair Competition and Restriction of CompetitionArticle 107. (1) The obligations arising out of an act of unfair competition and of restriction of competition shall be governed by the law of the State within whose territory the interests of competitors in the relationships therebetween or the collective interests of consumers are or are likely to be directly and substantially affected.(2) Where an act of unfair competition affects exclusively the interests of a specific competitor, the provisions of Article 105 (2) and (3) herein shall apply.Violation of Rights Relating to the PersonalityArticle 108. (1) The obligations arising out of a violation of rights relating to the personality by the mass communication media, and in particular print publications, radio, television or other means of dissemination of information, shall be governed, at the election of the person sustaining damage, by:1. the law of the State in which the said person is habitually resident, or2. the law of the State within whose territory the damage occurred, or3. the law of the State of the habitual residence or the place of business of the person claimed to be liable.(2) In the cases referred to in Items 1 and 2 of Paragraph (1), the person claimed to be liable must have reasonably foreseen that the damage would occur within the territory of the relevant State.(3) The right of reply upon violation of rights relating to the personality by the mass communication media shall be governed by the law of the State in which the place of publication or transmission of the broadcast is situated.(4) The provision of Paragraph (1) shall furthermore apply to obligations arising from violation of rights related to protection of personal data.Violation of the EnvironmentArticle 109. The obligations arising out of a violation of the environment shall be governed by the law of the State within whose territory the damage arises or is likely to arise, unless the person sustaining damage prefers to base the claim thereof on the law of the State in which the harmful act was committed.Infringement of Intellectual Property RightsArticle 110. The obligations arising from an infringement of copyrights, of rights neighbouring on copyright, and on industrial property rights, shall be governed by the law of the State for which protection of the right is sought (lex loci protectionis).Section IIUnjust Enrichment. Agency without AuthorityUnjust EnrichmentArticle 111. (1) The obligations arising out of unjust enrichment shall be governed by the law of the State in which the enrichment takes place.(2) Where the unjust enrichment takes place in connection with another relationship between the parties, such as a contract that is closely connected with the unjust enrichment in question, the law governing that other relationship shall apply.(3) Where at the time of the unjust enrichment taking place the parties had their habitual residence or place of business in the same State, the law of that State shall apply.(4) If it appears from the circumstances as a whole that the unjust enrichment is manifestly more closely connected with another State, the law of that other State shall apply.Agency without AuthorityArticle 112. (1) The obligations arising out of agency without authority shall be governed by the law of the State of habitual residence or place of business of the party concerned at the time of assuming the agency.(2) Where the agency has been assumed in connection with another relationship between the parties, such as a contract that is closely connected with the agency without authority in question, the law governing that other relationship shall apply.(3) Where the obligation arising out of agency without authority is connected to protection of a natural person or of a specific property, the applicable law shall be the law of the State in which the person was present or the property was situated at the time of agency without authority.(4) If it appears from the circumstances as a whole that the agency without authority is manifestly more closely connected with another State, the law of that other State shall apply.Section IIICommon Provisions on Non-Contractual RelationshipsChoice of Applicable LawArticle 113. (1) After an obligation arising out of a non-contractual relationship regulated in Section I and II comes into existence, the parties may submit the said obligation to a law of their choice. The choice of applicable law must be expressed or clearly demonstrated by the circumstances of the case and may not affect the rights of third parties.(2) Where at the time when the obligation comes into existence all the elements of the non-contractual relationship are connected to a State other than the State whose law has been chosen, the choice must be without prejudice to the application of the mandatory rules of that State, which cannot be derogated from by contract.(3) The provisions of Paragraphs (1) and (2) shall not apply to the obligations regulated in Article 111 herein.(4) The provisions of Articles 97 and 98 herein shall apply, mutatis mutandis, to the existence and material validity of the agreement on choice of applicable law.Scope of Law Applicable to Non-Contractual RelationshipsArticle 114. (1) The law applicable to obligations arising out of a non-contractual relationship shall govern:1. the conditions and extent of liability, including the determination of persons who are liable for acts performed thereby;2. the grounds for exemption from liability, as well as any limitation of liability and any division of liability;3. the measures which the court has power to take so as to ensure to prevention, termination of compensation of injury or damage;4. the kinds of injury or damage for which compensation may be due;5. the assessment of the damage or injury, in so far as prescribed by legal standards;6. the assignability of a right to compensation;7. the persons entitled to compensation for injury or damage sustained personally;8. liability for injury caused by another person;9. the manners in which an obligation may be extinguished, the extinctive prescription and the termination of rights consequent to the lapse of a specified period.10. the proving of the obligations, to the extent that the applicable law contains rules which raise presumptions of law or other provisions regarding the burden of proof.(2) The applicable law shall not govern the liability of the State and of bodies governed by public law, as well as of the authorities and representatives thereof, for acts performed thereby in the course of exercise of the powers thereof.Taking Account of Rules of Safety and ConductArticle 115. Whatever may be the applicable law, in determining liability, regard must be had to the rules of safety and conduct which were in force at the place and time of commission of the harmful act.Direct Action against the InsurerArticle 116. The right of persons who have suffered injury or damage to take direct action against the insurer of the person claimed to be liable shall be governed by the law applicable to the obligation arising out of the relevant non-contractual relationship, unless the person who has suffered injury or damage prefers to base the claims thereof on the law applicable to the insurance contract.Part FourRECOGNITION AND ENFORCEMENT OF FOREIGN JUDGMENTS ANDOTHER AUTHENTIC ACTSChapter TwelveCONDITIONS OF AND PROCEDURE FOR RECOGNITION AND ENFORCEMENT OFFOREIGN JUDGMENTS AND OTHER AUTHENTIC ACTSConditions of Recognition and EnforcementArticle 117. The judgments and authentic acts of the foreign courts and other authorities shall be entitled to recognition and enforcement where:1. the foreign court or authority had jurisdiction according to the provisions of Bulgarian law, but not if the nationality of the plaintiff or the registration thereof in the State of the court seized was the only ground for the foreign jurisdiction over disputes in rem;2. the defendant was served a copy of the statement of action, the parties were duly summonsed, and fundamental principles of Bulgarian law, related to the defence of the said parties, have not been prejudiced;3. if no effective judgment has been given by a Bulgarian court based on the same facts, involving the same cause of action and between the same parties;4. if no proceedings based on the same facts, involving the same cause of action and between the same parties, are brought before a Bulgarian court earlier than a case instituted before the foreign court in the matter of which the judgment whereof the recognition is sought and the enforcement is applied for has been rendered;5. the recognition or enforcement is not contrary to Bulgarian public policy.Jurisdiction upon RecognitionArticle 118. (1) A foreign judgment shall be recognized by the authority whereto the said judgment is presented.(2) Should the conditions of recognition of the foreign judgment be raised as the issue in a dispute, an action for ascertainment may be brought before the Sofia City Court.Jurisdiction upon EnforcementArticle 119. (1) An action for enforcement of a foreign judgment shall be brought before the Sofia City Court.(2) A true copy of the judgment, authenticated by the rendering court, and a certificate issued by the same court, to the effect that the said judgment has taken effect, shall be attached to the statement of action. These documents must be certified by the Ministry of Foreign Affairs of the Republic of Bulgaria.(3) Paragraph (2) shall furthermore apply in the cases referred to in Article 118 herein.Verification of Conditions of Recognition and EnforcementArticle 120. (1) The court shall of its own motion verify the conditions covered under Article 117 herein.(2) The defendant in the proceedings for recognition and enforcement of the foreign judgement may not invoke violations under Item 2 of Article 117 herein, which the said defendant could have raised before the foreign court.Scope of Verification and Defence of DebtorArticle 121. (1) The court shall not examine the merits of the dispute decided by the foreign court.(2) The debtor may raise the defence of extinguishment of the obligation on the basis of circumstances that have occurred after the foreign judgment took effect.(3) The debtor may not raise the defence of extinguishment of the obligation on the basis of the circumstances referred to in Paragraph (2) after the judgment admitting enforcement has taken effect.Recognition and Enforcement of Court SettlementsArticle 122. The provisions of Article 117 to 121 herein shall furthermore apply to court settlements, if the said settlements enjoy equal status as judgments of court in the State in which the said settlements are reached.Enforceability of Foreign Authentic InstrumentsArticle 123. The conditions covered under Articles 117 to 121 herein shall furthermore apply to the issue of a declaration of enforceability in the Republic of Bulgaria for a foreign authentic instrument which certifies a claim enforceable in the State in which the instrument was issued.Recognition of Effects of Foreign Writs ofEnforcement and ProtectionArticle 124. The civil effects of foreign writs of enforcement and protection shall be respected in the Republic of Bulgaria in connection with the presentment thereof, if the said writs were issued by a body which has international jurisdiction under Bulgarian law and if they are not contrary to Bulgarian public policy.FINAL PROVISIONS 1. In the Consumer Protection and Rules of Trade Act (promulgated in the State Gazette No. 30 of 1999; amended in Nos. 17 and 19 of 2003), Article 37a shall be repealed. 2. In the Obligations and Contracts Act (promulgated in the State Gazette No. 275 of 1950; corrected in Transactions of the Presidium of the National Assembly No. 2 of 1951; amended in No. 69 of 1951, No. 92 of 1952; State Gazette No. 85 of 1963, No. 27 of 1973, No. 16 of 1977, No. 28 of 1982, No. 30 of 1990; Nos. 12 and 56 of 1993, Nos. 83 and 104 of 1996, Nos. 83 and 103 of 1999, Nos. 34 and 19 of 2003), Articles 437 to 449 inclusive shall be repealed. 3. In the Commerce Act (promulgated in the State Gazette No. 48 of 1991; amended in No. 25 of 1992, Nos. 61 and 103 of 1993, No. 63 of 1994, No. 63 of 1995, Nos. 42, 59, 83, 86 and 104 of 1996, Nos. 58, 100 and 124 of 1997, Nos. 52 and 70 of 1998, Nos. 33, 42, 64, 81, 90, 103 and 114 of 1999, No. 84 of 2000, Nos. 28, 61 and 96 of 2002, Nos. 19, 31 and 58 of 2003, No. 31 of 2005), Articles 281 and 282 shall be repealed. 4. In the Code of Civil Procedure (promulgated in Transactions of the Presidium of the National Assembly No. 12 of 1952; amended in No. 92 of 1952, No. 89 of 1953, No. 90 of 1955, No. 90 of 1956, No. 90 of 1958, Nos. 50 and 90 of 1961, corrected in No. 99 of 1961; amended in the State Gazette No. 1 of 1963, No. 23 of 1968, No. 27 of 1973, No. 89 of 1976, No. 36 of 1979, No. 28 of 1983, No. 41 of 1985, No. 27 of 1986, No. 55 of 1987, No. 60 of 1988, Nos. 31 and 38 of 1989, No. 31 of 1990, No. 62 of 1991, No. 55 of 1992, Nos. 61 and 93 of 1993, No. 87 of 1995, Nos. 12 and 26 of 1996, Nos. 37, 44 and 104 of 1996, Nos. 43, 55 and 124 of 1997, Nos. 59, 70 and 73 of 1998, Nos. 64 and 103 of 1999, Nos. 36, 85 and 92 of 2000, No. 25 of 2001, Nos. 105 and 113 of 2002, Nos. 58 and 84 of 2003, Nos. 28 and 36 of 2004), Article 7, Article 9 (3) and (4), Article 132 and Chapter Thirty-Two shall be repealed. 5. The Family Code (promulgated in the State Gazette No. 41 of 1985; amended in No. 11 of 1992; corrected in No. 15 of 1992; amended in Nos. 63 and 84 of 2003) shall be amended as follows:1. Article 129 to 135 and 137 to 143 inclusive shall be repealed.2. In Article 136 :(a) Paragraph (1) shall be repealed;(b) Paragraph (2) shall be amended to read as follows:"(2) A Bulgarian national who has attained the age of one year may be adopted by a foreigner who has presented an authorization to adopt a child according to his or her national law. By way of exception, considering the state of health of the child or where other important circumstances exist, any such child may be adopted even before attaining the age of one year, if this is in the child's best interests.";(c) Paragraphs (3), (4), (5), (7), (8) and (9) shall be repealed. 6. The Not-for-Profit Legal Entities Act (promulgated in the State Gazette No. 81 of 2000; amended in Nos. 41 and 98 of 2001, Nos. 25 and 120 of 2002) shall be amended as follows:1. The heading of Chapter Four shall be amended to read as follows: "Branches of Foreign Not-for-Profit Legal Entities".2. Article 51 shall be repealed.3. In Article 52 :(a) the heading shall be amended to read as follows: "Incorporation of a Branch";(b) Paragraph (1) shall be repealed. 7. In the Merchant Shipping Code (promulgated in the State Gazette Nos. 55 and 56 of 1970; corrected in No. 58 of 1970; amended and supplemented in No. 55 of 1975, No. 10 of 1987, No. 30 of 1990, No. 85 of 1998, No. 12 of 2000, No. 41 of 2001, No. 113 of 2002, No. 55 of 2004), Articles 21, 24 and 26 shall be repealed.This Code was passed by the 39th National Assembly on the 4th day of May 2005 and the Official Seal of the National Assembly has been affixed thereto. For more information visit www.solicitorbulgaria.com id: 317 Fri, 01 Aug 2008 06:00:27 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-private-international-law-code http://web.solicitorbulgaria.com/index.php/bulgarian-private-international-law-code http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/PRIVATE_INTERNATIONAL_LAW_CODE.JPG EUR http://web.solicitorbulgaria.com/index.php/bulgarian-private-international-law-code legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) The Government of the Republic of Bulgaria and the Government of the United Kingdom of Great Britain and Northern Ireland, each hereinafter referred to as a "Contracting Party";Desiring to create favourable conditions for further development of investment by investors of one State in the territory of the other State;Recognising that the encouragement and reciprocal protection under international agreement of such investments will be conducive to the stimulation of business initiative by investors and will contribute to the development of economic relations;Have agreed as follows:ARTICLE 1DefinitionsFor the purposes of this Agreement:a) The term "investment" means every kind of asset connected with economic activities and includes, to the extent possible under the law of the Contracting Party in whose territory the investment is made, in particular:(i) Property and any other property rights such as mortgages, liens or pledges;(ii) Shares in and stock and debentures of a company and any… For more information visit http://www.solicitorbulgaria.com id: 315 The Government of the Republic of Bulgaria and the Government of the United Kingdom of Great Britain and Northern Ireland, each hereinafter referred to as a "Contracting Party";Desiring to create favourable conditions for further development of investment by investors of one State in the territory of the other State;Recognising that the encouragement and reciprocal protection under international agreement of such investments will be conducive to the stimulation of business initiative by investors and will contribute to the development of economic relations;Have agreed as follows:ARTICLE 1DefinitionsFor the purposes of this Agreement:a) The term "investment" means every kind of asset connected with economic activities and includes, to the extent possible under the law of the Contracting Party in whose territory the investment is made, in particular:(i) Property and any other property rights such as mortgages, liens or pledges;(ii) Shares in and stock and debentures of a company and any other form of participation in a company;(iii) Outstanding claims to money or to any performance under contract having a financial value;(iv) copyrights, rights in the field of industrial property (such as patents, licences, trademarks and trade names), technical processes, know-how and goodwill;(v) Business arrangements conferred by law or under contract, including licences granted to search for, cultivate, extract or exploit natural resources.Any change in the form in which assets are invested does not affect their character as investments;b) the term "returns" means all amounts yielded by an investment and in particular includes profit, interest, capital gains, dividends, licence fees, royalties and other fees;c) The term "investor" means:(i) In respect of the Republic of Bulgaria (hereinafter referred to as "Bulgaria"):(aa) physical persons having the nationality of Bulgaria in accordance with its legislation;(bb) any company, firm, partnership, organisation or association with or without juridical personality, incorporated 'or constituted in accordance with the laws of Bulgaria with a seat in its territory;(ii) In respect of the United Kingdom of Great Britain and Northern Ireland (hereinafter referred to as "the United Kingdom"):(aa) physical persons deriving their status as United Kingdom nationals from the law in force in the United Kingdom;(bb) corporations, firms and associations registered or constituted under the law in force in any part of the United Kingdom or in any territory to which this Agreement is extended in accordance with the provisions of Article 12;d) The term "territory" means:(i) in respect of Bulgaria: the territory under the sovereignty of Bulgaria, including the territorial sea, as well as the continental shelf and the exclusive economic zone over which Bulgaria exercises sovereign rights or jurisdiction in conformity with international law;(ii) in respect of the United Kingdom: Great Britain and Northern Ireland, including the territorial sea and any maritime area situated beyond the territorial sea of the United Kingdom which has been or might in the future be designated under the national law of the United Kingdom in accordance with international law as an area within which the United Kingdom may exercise rights with regard to the sea-bed and subsoil and the natural resources and any territory to which this Agreement is extended in accordance with the provisions of Article 12.ARTICLE 2Promotion and Protection of Investments1. Each Contracting Party shall encourage and create favourable conditions for investors of the other Contracting Party to make investments in its territory, and, subject to its right to exercise powers conferred by its laws, each Contracting Party shall admit such investments.2. Investments of investors of each Contracting Party shall at all times be accorded fair and equitable treatment and shall enjoy full protection and security in the territory of the other Contracting Party. Neither Contracting Party shall in any way impair by unreasonable or discriminatory measures the management/ maintenance, use, enjoyment or disposal of investments in its territory of investors of the other Contracting Party. Each Contracting Party shall observe any obligation it may have entered into with regard to investments of investors of the other Contracting Party.ARTICLE 3Most-favoured-nation and National Treatment Provisions1. Neither Contracting Party shall in its territory subject investments or returns of investors of the other Contracting Party to treatment less favourable than that which it accords to investments or returns of its own investors or to investments or returns of investors of any third State, whichever is more favourable.2. Neither Contracting Party shall subject investors of the other Contracting Party, as regards the management, maintenance, use, enjoyment or disposal of their investments in its territory, to treatment less favourable than that which it accords to its own investors or to investors of any third State, whichever is more favourable.ARTICLE 4Exceptions1. The provisions of this Agreement shall not be construed so as to oblige one Contracting Party to extend to the investors of the other the benefit of any treatment, preference or privilege resulting from:a) Its existing or future membership of or association with any customs or economic union, free trade area, or other similar international institution; orb) Any international agreement or arrangement relating wholly or mainly to taxation or any domestic legislation relating wholly or mainly to taxation.2. The provisions of this Agreement regarding the granting by a Contracting Party of treatment not less favourable than that accorded to its own investors may be subject to exceptions by that Contracting Party other than those specified in paragraph (1) above provided such exceptions are consistent with the Europe Agreement establishing an Association between the European Communities and their Member States of the one part, and the Republic of Bulgaria, of the other part, of 8 March 1993.ARTICLE 5Application of other RulesIf the provisions of law of either Contracting Party or obligations under international law existing at present or established hereafter between the Contracting Parties in addition to the present Agreement contain rules, whether general or specific, entitling investments by investors of the other Contracting Party to a treatment more favourable than is provided for by the present Agreement, such rules shall to the extent that they are more favourable prevail over the present Agreement.ARTICLE 6Compensation for LossesInvestors of one Contracting Party whose investments in the territory of the other Contracting Party suffer losses owing to war or other armed conflict, a state of national emergency, or civil disturbance in the territory of the latter Contracting Party shall be accorded by the latter Contracting Party treatment, as regards restitution, indemnification, compensation or other settlement, no less favourable than that which the latter Contracting Party accords to investors of any third State. Resulting payments shall be freely transferable.ARTICLE 7Expropriation1. Investments of investors of either Contracting Party shall not be nationalised, expropriated or subjected to measures which have an effect equivalent to nationalisation or expropriation (hereinafter referred to as "expropriation" in the territory of the other Contracting Party except for a public purpose related to the internal needs of that Party. The expropriation shall be in accordance with laws which contain clearly defined and non- discriminatory measures, and against prompt, adequate and effective compensation. Such compensation shall amount to the market value of the investment expropriated immediately before the expropriation or before the impending expropriation became public knowledge, whichever is earlier, shall include interest at LIBOR until the date of payment, shall be made without delay be effectively realisable and freely transferable. The investor affected shall have a right, under the law of the Contracting Party making the expropriation, to prompt review by a competent judicial or other independent authority of that Party of his or its case and of the valuation of his or its investment in accordance with the principles set out in this paragraph.2. Where a Contracting Party expropriates the assets of a company which is incorporated or constituted under the law in force in any part of its own territory, and in which investors of the other Contracting Party participate, the provisions of paragraph 1 of this Article shall apply.ARTICLE 8Transfer of Payments1. Each Contracting Party shall ensure, in respect of investments of investors of the other Contracting Party, the unrestricted transfer of the payments related to the investment referred to in paragraph 2 of this Article, after the payment of any taxes due in respect of that investment under the law of the first Contracting Party and in accordance with the terms of any Convention in force between the Contracting Parties for the Avoidance of Double Taxation with respect to Taxes on Income and Capital Gains. The transfer shall be effected without delay in the convertible currency in which the capital was originally invested or in any other convertible currency agreed by the investor and the Contracting Party concerned. - The transfers shall be made at the rate of exchange applicable on the date of transfer pursuant to the exchange regulations in force in the Contracting Party in the territory of which the investment has been made.2. Such payments include in particular:a) Proceeds obtained from the sale or the total or partial liquidation of the investment;b) Returns from the investment.ARTICLE 9Settlement of Disputes between an Investor andA Contracting Party1. Disputes between an investor of one Contracting Party and the other Contracting Party concerning obligations of the latter under Articles 6, 7 and 8 of this Agreement in relation to an investment of the former which have not been amicably settled shall after a period of four months from written notification of a claim be submitted to international arbitration if either party to the dispute so wishes.2. Where the dispute is referred to international arbitration, the investor concerned in the dispute may refer the dispute to an ad hoc arbitral tribunal to be established under the Arbitration Rules of the United Nations Commission on International Trade Law. The parties to the dispute may agree in writing to modify these Rules.3. Nothing in this Article shall prevent an investor of one Contracting Party from bringing any dispute concerning an obligation of the other Contracting Party under this Agreement in relation to an investment of the former to the attention of the competent authorities of the first Contracting Party with a view to its possible settlement in accordance with Article 10 of this Agreement.ARTICLE 10Disputes between the Contracting Parties1. Disputes between the Contracting Parties concerning the interpretation or application of this Agreement should, if possible, be settled through the diplomatic channel.2. If a dispute between the Contracting Parties cannot thus be settled within four months of written notification of the dispute, it shall, upon the request of either Contracting Party, be submitted to an arbitral tribunal.3. Such an arbitral tribunal shall be constituted for each individual case in the following way. Within two months of the receipt of the request for arbitration, each Contracting Party shall appoint one member of the tribunal. Those two members shall then select a national of a third State who on approval by the two Contracting Parties shall be appointed Chairman of the tribunal. The Chairman shall be appointed within two months from the date of appointment of the other two members.4. If within the periods specified in paragraph (3) of this Article the necessary appointments have not been made, either Contracting Party may, in the absence of any other agreement, invite the President of the International Court of Justice to make any necessary appointments. If the President is a national of either Contracting Party or if he is otherwise prevented from discharging the said function, the Vice-president shall be invited to make the necessary appointments. If the Vice-president is a national of either Contracting Party or if he too is prevented from discharging the said function, the Member of the International Court of Justice next in seniority who is not a national of either Contracting Party shall be invited to make the necessary appointments.5. The arbitral tribunal shall reach its decision by a majority of votes. Such decision shall be binding on both Contracting Parties. Each Contracting Party shall bear the cost of its own member of the tribunal and of its representation in the arbitral proceedings; the cost of the Chairman and the remaining costs shall be borne in equal parts by the Contracting Parties. The tribunal shall determine its own procedure. The tribunal shall decide on the basis of the provisions of this Agreement, universally recognised principles of international law and relevant domestic laws.ARTICLE 11Subrogation1. If one Contracting Party or its designated Agency makes a payment under an indemnity given in respect of an investment in the territory of the other Contracting Party, the latter Contracting Party shall recognise the assignment to the former Contracting Party or its designated Agency by law or by legal transaction of all the rights and claims of the party indemnified and that the former Contracting Party or its designated Agency is entitled to exercise such rights and enforce such claims by virtue of subrogation, to the same extent, and subject to the same obligations connected with those rights, as the party indemnified.2. The former Contracting Party or its designated Agency shall be entitled in all circumstances to the same treatment in respect of the rights, claims and obligations acquired by it by virtue of the assignment and any payments received in pursuance of those rights and claims as the party indemnified was entitled to receive by virtue of this Agreement in respect of the investment concerned and its related returns.3. Any payments received by the former Contracting Party or its designated Agency in pursuance of the rights and claims acquired shall be freely available to the former Contracting Party for the purpose of meeting any expenditure incurred in the territory of the latter Contracting Party.ARTICLE 12Territorial ExtensionThe provisions of this Agreement may at any time after ratification be extended to such territories for whose international relations the Government of the United Kingdom are responsible in accordance with international law as may be agreed between the Contracting Parties in an Exchange of Notes.ARTICLE 13Application of the AgreementThis Agreement shall apply to investments existing at the date of its entry into force, but shall not apply to any claims in respect of such investments which shall have already arisen before that date.ARTICLE 14Entry into Force, Duration and Termination1. This Agreement is subject to ratification and shall enter into force on the day of the exchange of Instruments of Ratification.2. This Agreement shall remain in force for a period of ten years. Thereafter it shall continue in force until the expiration of twelve months from the date on which either Contracting Party shall have given written notice of termination to the other. Provided that in respect of investments to which this Agreement applies, its provisions shall continue in effect with respect to such investments for a period of twenty years after the date of termination and without prejudice to the application thereafter of the rules of general international law.In witness whereof the undersigned, duly authorised thereto by their respective Governments, have signed this Agreement.Done in duplicate at London this first day of December 1995 in the Bulgarian and English languages, both texts being equally authoritative. For more information visit www.solicitorbulgaria.com id: 315 Fri, 01 Aug 2008 05:48:35 +0000 http://web.solicitorbulgaria.com/index.php/agreement-between-the-government-of-the-republic-of-bulgaria-and-the-government-of-the-united-kingdom-of-great-britain-and-northern-ireland-for-the-promotion-and-reciprocal-protection-of-investments http://web.solicitorbulgaria.com/index.php/agreement-between-the-government-of-the-republic-of-bulgaria-and-the-government-of-the-united-kingdom-of-great-britain-and-northern-ireland-for-the-promotion-and-reciprocal-protection-of-investments http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/Agreement_between_Bulgaria_and_United_KingdoM1.jpg EUR http://web.solicitorbulgaria.com/index.php/agreement-between-the-government-of-the-republic-of-bulgaria-and-the-government-of-the-united-kingdom-of-great-britain-and-northern-ireland-for-the-promotion-and-reciprocal-protection-of-investments legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) The Republic of Bulgaria and the Kingdom of Spain, hereinafter referred to as "The Contracting Parties",Desiring to intensify their economic cooperation for the mutual benefit of both countries,Intending to create favourable conditions for investments made by investors of each Contracting Party in the territory of the other Contracting Party,AndRecognizing that the promotion and protection of investments under this Agreement will stimulate initiatives in this field,Have agreed as follows:ARTICLE 1DEFINITIONSFor the purposes of the present Agreement,1. The term "investor" means:a) any individual who, in the case of the Kingdom of Spain, is a national of or a resident in Spain under Spanish law and, in the case of the Republic of Bulgaria, any individual who is a national of the Republic of Bulgaria in accordance with its applicable legislation.b) Any company, firm, partnership, organization or association with or without juridical personality, incorporated or constituted in accordance with… For more information visit http://www.solicitorbulgaria.com id: 316 The Republic of Bulgaria and the Kingdom of Spain, hereinafter referred to as "The Contracting Parties",Desiring to intensify their economic cooperation for the mutual benefit of both countries,Intending to create favourable conditions for investments made by investors of each Contracting Party in the territory of the other Contracting Party,AndRecognizing that the promotion and protection of investments under this Agreement will stimulate initiatives in this field,Have agreed as follows:ARTICLE 1DEFINITIONSFor the purposes of the present Agreement,1. The term "investor" means:a) any individual who, in the case of the Kingdom of Spain, is a national of or a resident in Spain under Spanish law and, in the case of the Republic of Bulgaria, any individual who is a national of the Republic of Bulgaria in accordance with its applicable legislation.b) Any company, firm, partnership, organization or association with or without juridical personality, incorporated or constituted in accordance with the laws of either Contracting Party with a seat in its territory.2. The term "investment" means any kind of assets acquired under the law of the host country of the investment and includes in particular:- Shares and other forms of participation in companies;- Outstanding claims, including every loan, whether capitalized ornot, and any other rights having economic value;- Movable and immovable property and any other property rights suchas mortgages, liens or pledges;- Copyrights, rights in the field of industrial and intellectualproperty (such as patents, licences, industrial designs,trademarks and names), technical processes, know-how and goodwill;- Rights to engage in economic activities authorized by law or byvirtue of a contract, particularly those rights to search for,cultivate, extract or exploit natural resources.3. The term "returns" refers to income deriving from an investment in accordance with the definition contained above and includes, in particular although not exclusively, profits, dividends and interests.4. The term "territory" designates the State territory and the territorial sea of each of the Contracting Parties, as well as the exclusive economic zone and the continental shelf that extends outside the limits of the territorial waters of each of the Contracting Parties, over which they have or may have jurisdiction and sovereign rights according to international law and its national legislation.ARTICLE 2PROMOTION, ACCEPTANCE1. Each Contracting Party shall encourage the investments made in its territory by investors of the other Contracting Party and shall accept such investments pursuant to its legislation.2. This Agreement shall likewise be applicable to investments made before its entry into force by investors of one Contracting Party under the legal provisions of the other Contracting Party in the territory of the latter. However this Agreement shall not apply to investments made before 1950.ARTICLE 3PROTECTION1. Each Contracting Party shall protect in its territory the investments made in accordance with its laws and regulations, by investors of the other Contracting Party and shall not hamper, by means of unjustified or discriminatory measures, the management, development, maintenance, use, enjoyment, expansion, sale and if it is the case, the liquidation of such investments.2. Each Contracting Party shall endeavour to grant the necessary permits relating to these investments and shall allow, within the framework of its legislation, the execution of work permits and contracts related to manufacturing-licences and technical, commercial, financial and administrative assistance.3. Each Contracting Party shall also grant, according to its legislation, whenever necessary, the permits required in connection with the activities of consultants or experts engaged by investors of the other Contracting Party.4. In case of reinvestment of returns from an investment, these reinvestments and their returns shall enjoy the same protection as the initial investments.ARTICLE 4TREATMENT1. Each Contracting Party shall guarantee in its territory fair and equitable treatment for the investments made by investors of the other Contracting Party.2. This treatment shall not be less favourable than that which is extended by each Contracting Party to the investments made in its territory by investors of any third country.3. However, this treatment shall not extend to the privileges that one Contracting Party may grant to investors of a third country by virtue of its membership or association with any existing or future free-trade area, customs union, common market or similar international agreement to which any of the Contracting Parties is or may become a Party.4. The treatment given pursuant to this article shall not extend to tax deductions and exemptions or other similar privileges granted by either of the Contracting Parties to investors of third countries by virtue of a double-taxation avoidance agreement or any other taxation agreement.5. In addition to the provisions of paragraph 2 of this article, each Contracting Party shall apply, under its own law, no less favourable treatment to the investments of investors of the other Contracting Party than that granted to its own investors.ARTICLE 5NATIONALIZATION AND EXPROPRIATION1. The nationalization, expropriation or any other measure of similar characteristics or effects that may be applied by the authorities of one Contracting Party against the investments in its own territory of investors of the other Contracting Party must be applied exclusively for reasons of public interest, pursuant to the law, and shall in no case be discriminatory. The Contracting Party adopting such measures shall pay to the investor or his legal beneficiary, without unjustified delay, an adequate indemnity in convertible and freely transferable currency.2. Such compensation shall amount to the market value of the investment expropriated immediately before the expropriation or impending expropriation became public knowledge.ARTICLE 6COMPENSATION FOR LOSSESInvestors of one Contracting Party whose investments or returns in the territory of the other Contracting Party suffer losses owing to war, other armed conflicts, a state of national emergency, civil disturbances or other similar events, including losses arising out of requisitioning measures, shall be accorded, as regards restitution, indemnification, compensation or other settlement, treatment no less favourable than that which the latter Contracting Party grants to investors of any third State. Any payment made under this Article shall be prompt, adequate, effective and freely transferable.ARTICLE 7TRANSFER1. With regard to the investments made in its territory, each Contracting Party shall grant to investors of the other Contracting Party the free transfer of the income deriving there from and other payments related thereto, including particularly but not exclusively, the following:- Investment returns, as defined in Article 1;- The indemnities provided for under Articles 5 and 6;- The proceeds of the sale or liquidation, in full or partial, of aninvestment;- Funds in repayment of loans;- Payments and additional amounts necessary to maintain, develop orincrease the investment;- The salaries, wages and other compensation received by the citizensof the Contracting Party who have obtained in the territory of the otherContracting Party the corresponding work permits in relation to aninvestment.2. The transfers under the present Agreement shall be made in freely convertible currencies and in accordance with tax regulations in the host Contracting Party of the investment.3. The Contracting Parties undertake to facilitate the procedures needed to make these transfers without excessive delays, according to the practices in international financial centres. In particular, no more than three months must elapse from the date on which the investor properly submits the necessary applications in order to make the transfer until the date the transfer actually takes place. Therefore, both Contracting Parties undertake to carry out the required formalities, both for the acquisition of foreign currency and for its effective transfer abroad, within that period of time.4. The Contracting Parties agree, related to the access to the foreign exchange market and to transfers referred to in the present Article, a treatment no less favourable than that accorded to investments made by investors of any third State.ARTICLE 8MORE FAVOURABLE TERMS1. If the provisions of law of either Contracting Party or obligations under international law existing at present or established hereafter between the Contracting Parties in addition to the present Agreement contain a regulation, whether general or specific, entitling investments by investors of the other Contracting Party to a treatment more favourable than is provided for by the present Agreement, such regulation shall, to the extent that it is more favourable, prevail over the present Agreement.2. More favourable terms than those of this Agreement which have been agreed to by one of the Contracting Parties with investors of the other Contracting Party shall not be affected by this Agreement.ARTICLE 9SUBROGATIONIn case one Contracting Party, has granted a financial guarantee relative to non-commercial ri sVs in respect of an investment made by its investors in the territory of the other Contracting Party, the latter shall accept the subrogation of the former Contracting Party in respect of the economic rights of the investor from the time when the former Contracting Party made a first payment charged to the guarantee issued. This subrogation will make it possible for the former Contracting Party to be the direct beneficiary of all the payments for compensation of which the initial investor could be a creditor.In respect of property rights, use, enjoyment or any other property right, subrogation will only takes place after having met the relevant legal requirements of the host Contracting Party.ARTICLE 10SETTLEMENT OF DISPUTES BETWEEN THE CONTRACTING PARTIES1. Any dispute between the Contracting Parties relative to the interpretation or application of this Agreement shall as far as possible be settled amicably by the Governments of the two Contracting Parties.2. If it were not possible to settle the dispute in this way within six months from the start of the negotiations, it shall be submitted, at the request of either of the two Contracting Parties, to a court of arbitration.3. The court of arbitration shall be set up in the following way: each Contracting Party shall appoint an arbitrator and these two arbitrators shall elect a citizen from a third country as The and the president either of the shall be appointed within three five months from the date on which Contracting Parties informed the other intention to submit the dispute to a court arbitration.4. If within the periods specified in paragraph 3 Article the necessary appointments have not been made, either Contracting Party may, in the absence of any other agreement, invite the President of the International Court of Justice to make any necessary appointments. If the President is a national of either Contracting Party or if he is otherwise prevented from discharging the said function, the Vice-President shall be invited to make the necessary appointments. If the Vice-President is a national of either Contracting Party or if he too is prevented from discharging the said function, the Member of the International Court of Justice next in seniority who is not a national of either Contracting Party shall be invited to make necessary5. The court of arbitration shall reach its decision on the basis of respect for the law, of the rules contained in Agreement or in other agreements in force between the Parties, and as well as of the universally recognized principles of international law.6. Unless the Contracting Parties decide otherwise, the court shall lay its own procedure.7. The court shall reach its decision by a majority of votes that decision shall be final and binding on both Contracting Parties.8. Each Contracting Party shall bear the expenses of the arbitrator appointed by it and those connected with representing it in the arbitration proceedings. The other expenses, including those of the president, shall be borne in equal parts by the two Contracting Parties.ARTICLE 11DISPUTES BETWEEN ONE PARTY AND INVESTORS OF THE OTHERCONTRACTING PARTY1. Disputes that may arise between one of the Contracting Parties and an investor of the other Contracting Party with regard to an investment in the sense of the present Agreement, shall be notified in writing, including a detailed information, by the investor to the host Contracting Party of the investment. As far as possible, the parties concerned shall endeavour to settle these differences by means of a friendly agreement.2. If such disputes cannot be settled this way within six months from the date either party requested amicable settlement, the investor concerned may submit the dispute to the competent court of the Contracting Party.3. In case of disputes with regard to Articles 5, 6 and 7 the dispute shall be submitted, instead, at the choice of the investor, to:- The ad hoc court of arbitration established under the ArbitrationRules of Procedure of the United Nations Commission forInternational Trade Law;- The International Centre for Settlement of Investment Disputes(ICSID) set up by the "Convention on Settlement of InvestmentDisputes between States and Nationals of other States", opened forsignature at Washington on 18 March 1965, in case both ContractingParties become signatories to this Convention;4. The arbitration shall be based on:- The provisions of this Agreement and of the other agreements inforce between the Contracting Parties;- The rules and the universally accepted principles ofinternational law;- The national law of the Contracting Party in whose territory theinvestment was made, including the rules relative to conflicts oflaw.5. The arbitration decisions shall be final and binding on the parties in the dispute. Each Contracting Party undertakes to execute the decisions in accordance with its national law.ARTICLE 12ENTRY INTO FORCE, EXTENSION AND TERMINATION1. This Agreement shall enter into force on the date on which the Contracting Parties shall have notified each other that the respective constitutional formalities required for the entry into force of international agreements have been completed. It shall remain in force for an initial period of ten years and, by tacit renewal, for consecutive of five-year periods.Either Contracting Party may terminate this Agreement by prior notification in writing, six months before the date of its expiration.2. With respect to investments made or acquired prior to the date of termination of this Agreement and to which this Agreement otherwise applies, the provisions of all of the other Articles of this Agreement shall thereafter continue to be effective for a further period of ten years from such date of termination. IN WITNESS WHEREOF, the respective plenipotentiaries have signed this Agreement.DONE in originals in Spanish, Bulgarian and English, all of which are equally authentic, in Sofia, 5th September, 1995. For more information visit www.solicitorbulgaria.com id: 316 Fri, 01 Aug 2008 05:54:12 +0000 http://web.solicitorbulgaria.com/index.php/agreement-between-the-republic-of-bulgaria-and-the-kingdom-of-spain-on-mutual-promotion-and-protection-of-investment http://web.solicitorbulgaria.com/index.php/agreement-between-the-republic-of-bulgaria-and-the-kingdom-of-spain-on-mutual-promotion-and-protection-of-investment http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/AGREEMENT_between_the_Republic_of_Bulgaria_and_the_Kingdom_of_Spain_on_mutual_promotion_and_protecti1.JPG EUR http://web.solicitorbulgaria.com/index.php/agreement-between-the-republic-of-bulgaria-and-the-kingdom-of-spain-on-mutual-promotion-and-protection-of-investment legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Chapter OneGENERAL PROVISIONSArticle 1. The estate shall be open for distribution at the time of death, at the last residence of the deceased.Article 2. (1) Nobody can inherit on intestacy or through appointment by will if:a) not begotten at the opening of the estate for distribution; and ifb) born unable to live.(2) The one born alive shall be presumed able to live till the reverse is proven.Article 3. Shall be unworthy of succession the one who:a) has murdered or attempted murdering the deceased, his/her spouse or child, as well as any accomplice in said crimes, unless the act has been committed under circumstances excluding its punishability, or it has been amnestied;b) has unjustly accused the deceased of a crime, punishable by imprisonment or graver penalty, unless such unjust accusations are prosecuted upon complaint of the victim and none has been filed;c) has persuaded or hindered the deceased by force or through deceit to make, amend or the revoke appointments by will, or who… For more information visit http://www.solicitorbulgaria.com id: 314 Chapter OneGENERAL PROVISIONSArticle 1. The estate shall be open for distribution at the time of death, at the last residence of the deceased.Article 2. (1) Nobody can inherit on intestacy or through appointment by will if:a) not begotten at the opening of the estate for distribution; and ifb) born unable to live.(2) The one born alive shall be presumed able to live till the reverse is proven.Article 3. Shall be unworthy of succession the one who:a) has murdered or attempted murdering the deceased, his/her spouse or child, as well as any accomplice in said crimes, unless the act has been committed under circumstances excluding its punishability, or it has been amnestied;b) has unjustly accused the deceased of a crime, punishable by imprisonment or graver penalty, unless such unjust accusations are prosecuted upon complaint of the victim and none has been filed;c) has persuaded or hindered the deceased by force or through deceit to make, amend or the revoke appointments by will, or who has destroyed, concealed or corrected the will of the deceased or has made use of an untrue will.Article 4. (1) The unworthy of succession can take, where the deceased has expressly acknowledged him or her to be worthy, through an act whose content has been certified by notary-public or through a will.(2) The unworthy of succession, in favour of whom the deceased has made a testamentary disposition, having been aware of the reason of unworthiness, without expressly acknowledging the worthiness of the latter, shall only take within the limits of the will.Chapter TwoDISTRIBUTION ON INTESTACYArticle 5. (1) The children of the deceased shall take equal parts.(2) Those adopted by the deceased shall be considered his or her children.(3) (Amended, SG No. 41/1985) In the case of adoption under Article 62 of the Family Code adoptees and their descendants shall not inherit from the relatives of the adoptive parent.Article 6. Where the deceased has left no children or other issue, the estate shall be equally distributed among his or her parents or be taken by the one who is alive.Article 7. Where the deceased has left only ascendants in the second or higher degree, the closest in degree from among them shall take equal parts.Article 8. (1) Where the deceased has only left brothers and sisters, they shall inherit from him in equal parts.(2) Where the deceased has only left brothers and sisters, together with ascendants in the second or higher degree, the former shall take two-thirds of the estate and the ascendants - one-third.(3) In the hypotheses under the previous paragraphs consanguine and uterine brothers and sisters shall take half of the amount, distributed to born brothers and sisters.(4) (New, SG No. 60/1992) Where the deceased has left no ascendants in the second or higher degree, no brothers or sisters or descendants thereof, the relatives on the lateral line up to the sixth degree inclusive shall take. The ones closer in degree, as well as the descendant of a relative closer in degree, shall exclude those more distant in degree.Article 9. (1) The spouse shall take a part equal to the part of each child.(2) (Amended, SG No. 60/1992) When the spouse inherits together with ascendants or with brothers and sisters, or with descendants thereof, he or she shall take half of the estate, where said estate is opened before the expiry of ten years from marriage, and conversely, he or she shall take 2/3 of the estate. When the spouse takes together with ascendants and with brothers and sisters or their descendants, he shall take one-third of the estate in the first hypothesis and half of it in the second hypothesis.(3) (Supplemented, SG No. 60/1992) Where no other heirs under the previous paragraph are found, the spouse shall take the whole estate.Article 9a. (New, SG No. 60/1992) When to an open estate ownership is restituted in properties taken by the state or included in labour co operative agricultural farms or in other agricultural organisations, formed on their basis, the heirs of a subsequent spouse shall not inherit, where said spouse has deceased before restitution of ownership and no children were born or adopted during the marriage with the deceased.Article 10. (1) The descendants of the deceased, who have died before him ore are unworthy of succession, shall be substituted in the distribution on intestacy by their descendants, without limitation in degree.(2) The brothers and sisters who have died before the deceased or those unworthy of succession shall only be substituted for their children or grand children.(3) Succession in these cases shall occur by stocks.(4) Substitution shall also be admitted in favour of a person, who has waived succession from an ascendant, whom he substitutes for or who is unworthy of succession.Article 10a. (New, SG No. 117/1997) Where several persons have died and where it is not possible to establish the sequence in which death has occurred for each of them, it shall be assumed that the older have died before the younger.Article 11 (Supplemented, SG No. 96/1999) Where there are no persons, capable of taking, in accordance with the previous articles, or where all heirs make a waiver of succession or lose the right to accept the estate, the estate shall devolve on the state, except for movable properties, housing, workshops and garages, as well as the plots of land and properties, primarily intended for residential construction, which shall become ownership of the municipality, on the territory of which they are located.Article 12. (1) The heirs, who have lived together with the deceased and have taken care of him, shall take in succession the ordinary household possessions and where they have an occupation pertaining to agriculture and are not adequately remunerated in any other way, they shall also take agricultural implements of the deceased.(2) Co-heirs, who have assisted in the lifetime of the deceased to the increase of his or her estate, can, if they have not been remunerated in any other way, request, at the time of estate division, to have an increase calculated to their benefit; such increase can be taken in kind or cash.Chapter ThreeSUCCESSION BY TESTAMENT1. GENERAL PROVISIONSArticle 13. Any person, who has reached 18 years of age and is not under full incapacitation due to dementia and who is capable of acting reasonably, can make testamentary dispositions with regard to his or her property for the time after his or her death.Article 14. (1) (Amended, SG No. 60/1992) A testator can dispose through a will of the whole of his or her property.(2) (Repealed, previous paragraph 3, SG No. 60/1992) In all cases testamentary dispositions cannot infringe upon the reserved share of an estate (Article 29).Article 15. Through one and the same act two or more individuals may not make testamentary dispositions neither to their mutual benefit, neither to the benefit of third parties.Article 16. (1) Testamentary dispositions, which refer to the whole or a fractional interest in the entire estate of a testator shall be called "general" and shall make the person, to the benefit of whom they were made, an heir.(2) Testamentary dispositions, which refer to specific properties, shall be "partial" and confer the capacity of bequestee.Article 17. (1) Testamentary dispositions can be made conditional or dependent on encumbrance.(2) A general testamentary disposition, whose period is fixed, shall be considered a bequest of usufruct over the whole estate or the respective share thereof; the starting date shall be considered unwritten.Article 18. Each one interested can request the execution of encumbrances, imposed by the will. The non-fulfilment of the latter shall not entail the abolition of a testamentary disposition.Article 19. (1) A bequest of a specific item of property shall be invalid, if the testator is not the owner of said item at the opening of the estate for distribution.(2) A bequest of a certain quantity of items determined by their genus, although none have been found in the estate of the deceased at its opening for distribution, shall still be valid.Article 20. A testamentary disposition shall have no effect where the individual, in favour of whom it has been made, dies before the testator.Article 21. (1) A testator may appoint one or more persons, who shall acquire the estate or bequest in case the heir or bequestee dies before him or her or makes a waiver of succession or bequest, or proves unworthy to inherit therefrom.(2) A testator cannot, however, obligate the heir to keep and transmit, after his or her death, the inheritance taken by him or her, in its entirely or partially, to a third person.Article 22. (1) An heir, intestate or by will, has the right to take a bequest, which has been made to him or her, even where he or she has made a waiver of succession.(2) Provisions of Article 48 - 54 shall also apply to bequests.2. FORM OF TESTAMENTARY DISPOSITIONS (WILLS)Article 23. A testamentary disposition can be notarial or personally handwritten.Article 24. (1) A notarial testamentary disposition shall be executed by a notary in the presence of two witnesses.(2) (Supplemented, SG No. 104/1996, amended, SG No. 59/2007) A testator shall verbally express his or her will to the notary, who shall write it as it has been expressed, after which he shall read the will to the testator, in the presence of the witnesses. The notary shall take note of these formalities in the will, also marking the place and date of its drafting. Then the will shall be signed by the testator, the witnesses and the notary. In drafting the notarial will the notary shall be guided by the provisions of Article 578, paragraphs 1 and 2 of the Civil Procedure Code. (3) Where the testator cannot sign, he or she must disclose the reason for this and the notary shall take note of his or her statement before reading out the will.Article 25. (1) A personally handwritten will must be entirely written by the hand of the testator him- or herself, set out the date, when it was drafted and it must also be signed by him or her. The signature must be placed below the testamentary dispositions.(2) A will can be transmitted for keeping to the notary in a sealed envelope. In this case the notary shall draft a protocol on the very envelope. The protocol shall be signed by the person, who has presented the will, and by the notary, and it shall be entered in a special register.Article 26. (1) A personally handwritten will, submitted for keeping to the notary, can be taken back, but only by the testator in person.(2) A note shall be made of the return of a will in the special register, which shall be signed by the testator, two witnesses and the notary.Article 27. (1) A person, who has possession of a personally handwritten will, must as soon as he or she becomes aware of the testator's death, request its disclosure by the notary.(2) Any interested person may require from the regional judge at the place, where the estate was opened for distribution, to fix a term for presentation of the will, in order to have it announcement by the notary.(3) (Corrected SG No. 41/1949) A notary shall disclose the will, drafting a protocol to this effect, where the status of the will is described and a note is made of its unsealing. The protocol shall be signed by the person, who has presented the will and by the notary. The paper, on which the will was written, countersigned by the above persons on each page shall be attached to the protocol.(4) Where a will has been submitted for keeping to the notary (Article 25, paragraph 2). the above provisions shall be implemented by the notary in whose possession said will is.3. RESERVED AND DISPOSABLE SHAREArticle 28. (1) Where the deceased leaves descendants, parents or a spouse, he or she may not, through testamentary dispositions or donation, infringe upon what constitutes their reserved share of the estate.(2) The share of the estate, out of the reserved share thereof, shall constitute the disposable share of the deceased.Article 29. (1) The reserved share for descendants (including adoptees), when the deceased has not left a spouse, shall be as follows: in case of one child or descendants thereof - 1/2 and in case of two or more children or descendants thereof, 2/3 of the estate of the deceased.(2) The reserved share for the parents or the surviving one shall be 1/3.(3) The reserved share for the spouse shall be 1/2, where he or she is the only heir, and 1/3 where the deceased has also left his or her parents. Where the deceased has left descendants and a spouse, the reserved share of the spouse shall be equal to the reserved share of each child. In these hypotheses the disposable share, in case of one child, shall be equal to 1/3; in case of two children it shall be equal to 1/4; and in case of three or more children it shall be equal to 1/6 of the estate.4. RESTITUTION OF THE RESERVED SHAREArticle 30. (1) An heir, having the right to a reserved share, who cannot take the full extent of said share due to wills or donations, can request their reduction to the extent, necessary to supplement his or her reserved share, after compensation of the testamentary dispositions and donations made in his or her favour. with the exception of ordinary gifts.(2) Where an heir, whose reserved share is infringed, exercises the above right with regard to persons, who are not intestate heirs, it shall be necessary for him to have taken the inheritance by inventory.Article 31. In order to determine the disposable share, as well as the extent of the reserved share of an heir, an estate of all properties shall be formed, which had belonged to the deceased at the time of his or her death, deducting therefrom any liabilities and the increase of the estate under Article 12, paragraph 2. Then donations, with the exception of ordinary gifts, shall be added thereto, in accordance with their position at the time of donation and with their value at the time of opening of the estate, as regards immovable properties, and at the time of donation, as regards movable ones.Article 32. The testamentary dispositions shall be reduced on a pro rata basis, making no difference between heirs and bequestees, unless the testator has otherwise ordered.Article 33. Donations shall only be reduced where bequested properties are depleted, starting from the last and moving consecutively to the preceding ones.Article 34. Where several properties have been bequested or donated to a person, reduction shall be implemented at this person's choice. If he or she does not make a choice within the period given by the court, the rules of Article 32 - 33 shall be applied.Article 35. (1) Where the deceased has bequested an usufruct or a life rent, the income, respectively the extent of which exceeds the income from the disposable share, the heirs, having the right to a reserved share, who receive the nude property, also have the right to choose either to fulfil the testamentary disposition or to abandon the full ownership of such part of the inheritance property, which is equal to the disposable share.(2) The heirs shall also have the same right of choice where the deceased has bequested the nude property of estates the income from which exceeds the income of the disposable share.(3) (corrected SG 41/1949) The decision to fulfil a testamentary disposition can be taken only with the agreement of all affected heirs, less the one, in favour of whom it had been made.(4) The same rights shall also apply where the usufruct, rent or nude property have been established through an act of donation.Article 36. (1) Where the object of bequest or donation is an immovable property and the separation of a part thereof, in order to supplement the reserved share for the heir, cannot conveniently take place, in case the value of the bequested or the donated property, calculated in accordance with Article 31, exceeds by more than 1/4 the disposable share, said property shall remain in its entirety within the estate and the bequestee or the recipient of donation shall receive the value of the disposable share. Where the 1/4 has not been exceeded, the bequestee or recipient of donation can keep the entire property and indemnify the heir with money, in accordance with the price at the time of the reduction.(2) When a bequestee or recipient of donation is an heir with a reserved share, he can keep the whole property only if its value does not exceed the disposable share and his or her reserved share taken together.(3) A bequestee or recipient of donation shall be obliged to give back fruits from the properties, which exceed the disposable share, from the death of the deceased, where a claim to this effect has been presented within one year from the same date, and conversely, from the date of the statement of claim.Article 37. (1) Alienation of the bequested or donated immovable properties, as well as the establishment of real rights in them, as implemented by bequestees or the recipients of donations, against whom reduction has been decreed, which had taken place before the expiry of one year from the opening of the estate for distribution or after a statement of claim for reduction had been recorded, can be revoked upon request of the heir, where the latter cannot supplement his reserved share from the property of the bequestee or recipient of donation and where the acquirer does not supplement the reserved share with money.(2) The same is valid for agricultural and transport machinery of significant value.(3) Claims must be filed starting from the last alienation and moving consecutively to the previous ones.5. REVOCATION OF WILLArticle 38. A will can be explicitly revoked with a new will or a notarial act, whereby a testator explicitly declares, that he entirely or partially revokes any previous provisions.Article 39. A subsequent will, which does not explicitly revoke the previous one, shall only revoke the provisions, which are incompatible with the new one.Article 40. A will, which has been revoked by a subsequent one, shall remain revoked even where the subsequent will has no effect, due to the fact that the heir or bequestee die before the testator, prove unworthy, or make a waiver of succession or bequest.Article 41. (Corrected, SG No 41/1949) (1) The entire or partial alienation of a bequested possession shall repeal a bequest whose object has been alienated, even when possession is recovered by the testator or when the act of alienation is invalidated for any reason, other than defect in consent.(2) The same is also valid when the testator processes or modifies the bequested possession in a way that makes it lose its previous form and intended use.6. NULLITY OF WILLArticle 42. A testamentary disposition shall be null:a) when it has been made in favour of a person, who does not have the right to take by bequest;b) when at the time of drafting the will the provisions of Article 24, respectively of Article 25, paragraph 1, have not been observed, andc) when a testamentary disposition or the sole motive, expressed in a will, due to which the disposition has been made, are contrary to the law, the public order and the good morals; the same is also valid when the condition or encumbrance are impossible.Article 43. (1) A testamentary disposition shall be voidable:a) when it has been made by a person, who at the time of drafting had not been able to bequest, andb) when it had been made due to a mistake, an act of violence or fraud.(2) A mistake in the motive shall be a reason for abolition of the testamentary disposition, when the motive is expressed in the very will and the disposition has only been made because of it.Article 44. (1) A claim for abolition of a testamentary disposition shall be extinguished upon the expiry of three years from the day, on which the claimant has come to know about the reason of Voidability, and in any case upon the expiry of ten years from the opening of the estate for distribution.(2) Where gaining knowledge precedes the opening of the estate, the three year term shall start running from opening of the estate.(3) The objection of Voidability shall not be restricted in time.7. EXECUTORS OF WILLSArticle 45. (1) A testator can assign one or more legally capable persons to execute his or her testamentary dispositions.(2) Upon request of each interested party the regional judge at the location, where the estate has been opened, can set a term for the acceptance of assignment after the expiry of which, if the assignment is not accepted, it shall be considered that the person assigned has refused.Article 46. (1) The executor of will must take inventory of the estate, after inviting the heirs and bequestees to attend thereat.(2) He/she shall enter into possession of the estate and manage it, as far as these actions are required for the implementation of testamentary dispositions.(3) He/she cannot alienate estate properties except where necessary, with a permission of the regional judge, who shall decide after hearing the heirs.Article 47. The regional judge can remove the executor of the will from office if he/she makes proof of negligence, lack of capacity or takes acts, which are incompatible with the required level of trust.Chapter FourACCEPTANCE AND WAIVER OF SUCCESSIONArticle 48. An estate shall be acquired upon acceptance. The acceptance shall have effect as of the opening of the estate.Article 49. (1) The acceptance can be made through a written declaration to the regional judge, in whose district the estate has been opened for distribution; in this case acceptance shall be entered in a special book.(2) Acceptance also exists where the heir takes an act, which undoubtedly reveals his/her intention to accept the estate, or when he/she conceals inheritance property. In the latter case the heir shall lose the right to an inheritance share in the concealed property.Article 50. (Repealed, SG No. 60/1992).Article 51. (1) Upon request of each interested party the regional judge, after summoning the person, who has a right of succession, shall set a term to said person, within which he/she shall have to declare whether his/her acceptance or waiver of succession. Where a lawsuit has been brought against the heir, said term shall be fixed by the court, hearing the case.(2) Where the heir does not respond within the set term, he/she shall lose the right to accept succession.(3) The statement of the heir shall be entered in the book, provided for under Article 49, paragraph 1.Article 52. A waiver of succession shall take place pursuant to the rules under Article 49, paragraph 1; it shall be recorded on the basis of the same rules.Article 53. The share of the heir who has made a waiver or lost the right of acceptance of succession, shall increase the shares of the other heirs.Article 54. (1) Acceptance and waiver, made conditional condition, restricted by a period of time or in respect of a portion of the estate, shall be invalid.(2) Acceptance and waiver cannot be challenged due to a mistake.Article 55. Where, after acceptance of succession a will is found, which had not been known, the heir shall not be obligated to satisfy bequests thereunder exceeding the value of the estate, or if they infringe upon his/her reserved share. In such cases the heir can request the reduction of bequests under other wills.Article 56. (Corrected, SG No. 41/1949) (1) The creditors of the person, who has made a waiver of succession, can request its invalidation to their benefit, as far as they cannot obtain satisfaction from the possessions of the heir.(2) The claim can be submitted within one year from becoming aware of said waiver, and not later, however, than three years therefrom.Article 57. Where an heir dies before accepting the succession or before waiving it, each of his/her heirs can only accept said succession if he/she also accepts the estate of the deceased; he/she can waive said succession, despite accepting the estate of the latter.Article 58. Until acceptance of the estate, the person who has the right to inherit, can manage the inheritance estate and exercise possessory actions for keeping it.Article 59. (1) When a person, who has the right to succession, is at an unknown residence or although his/her residence is known, he/she has not assumed the management of inheritance possessions, the regional judge shall, ex officio or upon request of the interested persons, appoint a manager of the estate.(2) The manager must take an inventory of the inheritance estate. He shall file and defend claims concerning the inheritance estate and liabilities. To perform under inheritance liabilities, execute bequests and sell the inheritance properties, he/she must request permission from the regional judge.Article 60. (1) The heirs, who have accepted the succession, shall incur the liabilities it has been encumbered with, in accordance with the shares they have taken.(2) An heir, who has accepted the succession by inventory, shall only be responsible to the extent of the received inheritance.Article 61. (1) The acceptance of succession by inventory must be declared in writing to the regional judge within three months, after an heir has come to know, that the estate has been opened. This term can be extended by the regional judge up to three months. The acceptance shall be recorded pursuant to the rules of Article 49, paragraph 1.(2) Legally incapacitated persons, the state and public organisations shall only accept the succession by inventory.Article 62. Acceptance by inventory by one of the heirs may be used by the others, but it does not deprive them from the right to directly accept succession or make a waiver from it.Article 63. Inventory shall be taken in pursuance of the rules of the Civil Procedure Code. Article 64. An heir shall be obliged to indicate to the regional judge all inheritance properties, known to him/her, in order to be included in the inventory, or else he/she shall lose the benefits, associated with acceptance of succession by inventory.Article 65. (1) An heir, who has accepted succession by inventory, shall manage inheritance possessions, being obliged to take the same level of care he takes of his own works. He/she cannot alienate immovable properties up to five years after acceptance and up to three years any movable properties, except following a permission of the regional judge; conversely, he shall incur the liabilities of the deceased without limitation.(2) The heir shall be accountable to the creditors and bequests of his or her management.Article 66. (1) When succession has been accepted by inventory, each creditor or bequestee can request from the regional judge to determine the rules, following which the heir will pay the creditors and bequestees. In case this is not made, the heir, who has accepted succession by inventory, shall pay the creditors and the bequestees at the order, in which they make their claims to him.(2) Creditors, who present their rights after the assets of the estate have been depleted, shall have a counterclaim against bequestees. A claim must be filed within three years from the last payment.Article 67. (1) (Corrected, SG No. 41/1949) The creditors of the estate and bequestees can, within three months following acceptance of succession, require the separation of possessions of the deceased from those possessions of the heir.(2) (Amended SG 34/2000) Said separation shall be implemented for immovable properties by a note in the in the accounts for the immovable properties of the deceased pursuant to the Cadastre and Estate Register Act, and as regards movable properties, by application to the regional judge, which shall be entered pursuant to Article 49, paragraph 1.(3) The creditors of the estate and bequestees, who have requested separation, shall enjoy preference over those who have not requested it. When separation has been requested by the creditors and bequestees, the former shall enjoy preference over the latter.Article 68. The bequest of a specific item of property shall be respectively reduced, when the remaining inheritance estate is not sufficient for the payment of inheritance liabilities.Chapter FiveDIVISION OF THE ESTATEArticle 69. (1) An heir can always request division, despite any adverse disposition of the deceased.(2) Each heir can request his or her share in kind, as far as this is possible. Inequality in shares shall be compensated with money. The properties which cannot be conveniently divided, shall be presented at a public auction.(3) An heir who is a farmer, living inside or in the vicinity of a populated area where non-developed real estates of inheritance are located, in order to supplement the land owned by him or her up to the average type of private labour agricultural farm, can buy out from the rest of co-heirs, who do not live in the same populated area or in the vicinity thereof or who or do not deal with agriculture, the non-developed real estated, falling into their respective shares.Article 70. (Corrected, SG No. 41/1949) Before proceeding at compiling the shares, each co-heir must contribute to the estate what he/she owes to the deceased and also what he/she owes to other co-heirs in relation to the co-ownership among them. If he/she does not implement a contribution in kind, co heirs, who have right to request it, shall receive in their share part of the inherited possessions, the equal of what is due in value, and where possible, also in kind.Article 71. (Repealed, SG No. 60/1992).Article 72. When compiling shares, splitting of fields into sections smaller than 3 decares, of pastures into sections smaller than 2 decares and of vineyards and orchards into sections smaller than 1 decare, shall not be admitted.Article 73. (1) Each co-heir shall, in proportion to his or her inheritance share, be obligated to provide security to a co-heir, who, due to a reason preceding the division, has been evicted by the court from possessions going into his or her share.(2) This security shall not be due, when it has been excluded with special agreement in the act for the division or when the co-heir on his guilt has endured court removal.Article 74. (1) Division cannot be challenged due to a mistake, except where, in implementing it, some of the co-heirs have been damaged by more than 1/4 of the value of his or her share.(2) A claim to this effect cannot be filed later than 1 year after the implementation of division.(3) The nullifying shall not be admitted if before the taking of the decision by the utmost court instance the share of the damaged is supplemented with money or in kind by the rest of the co-heirs.Article 75. (1) When, in implementing a division some inheritance possession is missing, it shall be additionally made subject to division.(2) When the division has been implemented without the participation of some of the co-owners, it shall be entirely null.Article 76. Acts of disposal by a co-heir of specific inheritance objects shall be void, unless said objects go into his or her share upon division.Article 77. (1) (Corrected, SG 41/1949) During his or her lifetime the deceased can divide his possessions between his or her heirs, including the reserved share in said division.(2) This division must be implemented through an act of donation or a will.Article 78. (1) A division, in which the deceased had not included some of the co-heirs with a right to reserved share, shall be void.(2) A co-heir, who has sustained damages in his reserved share as a result of a division, can request its restitution by the other co-heirs. When the division has been made by an act of donation, it can be contested pursuant to the rules of Article 74.Article 79. If not all the properties, which the deceased had owned at the time of his death, are included in the division, the non-divisioned properties shall be divided in accordance with the law, as far as the deceased has not otherwise ordered.Article 80. The rules of Article 69, paragraph 3 shall apply to lifetime divisions through will.Chapter SixDONATIONArticle 81 - 88. (Repealed, SG No. 275/1950).TRANSITIONAL PROVISIONSArticle 89. (1) The inheritance share of the descendants and wife in estates, opened for distribution after October 16, 1944, until the entry into force of this Act, shall be determined in accordance with the provisions of this Act.(2) The court divisions of estates, in which the protocol of division has entered into binding force, as well as the voluntary divisions, shall remain in force. The interested heirs can, however, request the compensation of inheritance shares in cash.Article 90. (1) The wills, made until the entry of this Act into force using the forms under the Succession Act in force until now, shall keep their effect.(2) The provisions of Article 14 shall also apply to wills, made before the entry of this Act into force, where the estate has been opened for distribution thereafter.Article 90a. (New, SG No. 60/1992, proclaimed unconstitutional by the Constitutional Court of the Republic of Bulgaria, as regards the section, envisaging that a will, drafted after inclusion in labour co-operative agricultural farms or other agricultural organisations, formed on their basis, of properties of co-operative members, the ownership of which is restituted under Article 10, paragraph 1 of OUALA, has no effect for these properties, SG No. 21/1996)---------------------------------------------------------------------------A will or sale of inheritance, drafted or implemented after nationalisation or inclusion in labour co-operative agricultural farms or other agricultural organisations, formed on their basis, of properties, the ownership of which is restituted, shall have no effect for these properties.---------------------------------------------------------------------------Article 91. The prescription term of Article 50, starting to run on the date of the entry into force of this Act, shall be also apply to estates, opened before that date.Article 91a. (New, SG No. 60/1992) In the case of estates, including properties, taken by the state or made part of labour co-operative agricultural farms or other agricultural organisations formed on their basis, the ownership of which is restituted, waiver of succession made after nationalisation, or the inclusion of properties, shall have no effect with regard to them. They shall be considered estates newly opened for distribution within the meaning of Article 1 of this Act.Article 92. With regard to estates opened for distribution before this Act has entered into force the period under Article 56 shall start running thereafter.Article 93. The present Act shall enter into force three months after its promulgation in the State Gazette.PENAL CODE (Promulgated, Transactions No. 12/1956)Article 377(Previous article 337, Transactions No. 12/1956)Everywhere in laws the sentences of confinement in prison or solitary confinement in prison for a fixed period shall be replaced by the sentence of imprisonment for the same period and the sentence of detention with the sentence of corrective labour. Life confinement in prison shall be replaced by imprisonment for a period of 20 years.TRANSITIONAL PROVISIONto the Act on Amendment and Supplement of the Succession Act(Promulgated, SG No. 60/1992) 9. The revocation of the term for acceptance of succession under Article 50 repealed shall both refer to estates opened for distribution prior to the commencement of this Act, in respect of which no objections have been raised within the stipulated period, and to properties, the ownership of which is being restituted. For more information visit www.solicitorbulgaria.com id: 314 Fri, 01 Aug 2008 05:40:03 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-succession-act http://web.solicitorbulgaria.com/index.php/bulgarian-succession-act http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/SUCCESSION_ACT.jpg EUR http://web.solicitorbulgaria.com/index.php/bulgarian-succession-act legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Section IIIAssisted ReproductionArticle 129Assisted reproduction shall be applied, where the condition of the man or the woman prevents the natural performance of their reproductive functions.Article 130(1) Assisted reproduction shall be carried out upon the informed consent given in writing by the persons willing to have progeny.(2) Assisted reproduction shall be carried out after the conduct of medical tests to guarantee the health of the progeny.(3) (Amended, SG No. 71/2006) Assisted reproduction shall be carried out in accordance with the medical standards approved by an ordinance of the Minister of Health.(4) (New, SG No. 71/2006) Assisted reproduction shall include the activities related to:1. the application of medical methods for fertilization of an ovum located inside or outside the body of the woman;2. the extraction, expert testing, processing, labelling and storage of ova, spermatozoids or zygotes;2. the extraction of an ovum from one woman and the implantation thereof into… For more information visit http://www.solicitorbulgaria.com id: 310 Section IIIAssisted ReproductionArticle 129Assisted reproduction shall be applied, where the condition of the man or the woman prevents the natural performance of their reproductive functions.Article 130(1) Assisted reproduction shall be carried out upon the informed consent given in writing by the persons willing to have progeny.(2) Assisted reproduction shall be carried out after the conduct of medical tests to guarantee the health of the progeny.(3) (Amended, SG No. 71/2006) Assisted reproduction shall be carried out in accordance with the medical standards approved by an ordinance of the Minister of Health.(4) (New, SG No. 71/2006) Assisted reproduction shall include the activities related to:1. the application of medical methods for fertilization of an ovum located inside or outside the body of the woman;2. the extraction, expert testing, processing, labelling and storage of ova, spermatozoids or zygotes;2. the extraction of an ovum from one woman and the implantation thereof into the body of the same woman;4. the extraction of an ovum from one woman and the implantation thereof into the body of another woman.(5) (New, SG No. 71/2006) Extraction of ova from a donor in the cases referred to in Item 4 of Paragraph (4) may be effected providing the following conditions have been met:1. the donor is of full age and has not been placed under interdiction;2. a written agreement from the donor has been received, notarized by a notary in whose judicial district the medical establishment which will implement the extraction is located;3. the donor has been informed in understandable language as regards the risks that person is undertaking.4. the physical and mental health of the donor has been established with a memorandum signed by the members of a commission appointed by the director of the medical establishment implementing the extraction, which shall consist of at least three doctors who do not participate in the team on the extraction.(6) (New, SG No. 71/2006) Medical establishments shall be obligated to prepare an annual report on the activities implemented pursuant to Paragraph (4) in a from established by the ordinance referred to in Article 131 (3) and shall submit it to the Executive Agency on Transplantation.(7) (New, SG No. 71/2006) Offering pecuniary benefit to a donor of ova or spermatozoids, as well as acceptance of pecuniary benefit by the donor shall be prohibited.Article 131(Amended, SG No. 71/2006) (1) Assisted reproduction, as well as the provision, use and storage of human ova, spermatozoids and zygotes shall be implemented by medical establishments that have received a permit from the Minister of Health under conditions and by a procedure set down by an Ordinance of the Minister of Health.(2) Medical establishments shall carry out all medical activities related to the testing, preparation and continuous monitoring of the persons subjected to assisted reproduction, and shall control the condition of their health until childbirth.(3) The terms and conditions for the extraction, placement, medical expert opinion, processing, labelling and storage of ova, spermatozoids and or zygotes for the needs of assisted reproduction, as well as of the materials and products coming in contact therewith and their tracking from the donor to the recipient, shall be determined by an ordinance issued by the Minister of Health and shall be controlled by the Executive Agency on Transplantation.Article 132(1) (Amended, SG No. 71/2006) The medical establishments referred to in Article 131 (1) shall create and maintain a register that shall contain:1. data about each case of extraction, medical expert opinion, processing, labelling and storage of ova, spermatozoids and or zygotes;2. the forename, patronymic and family name, personal identity number, permanent address and unique identification number of the persons who have donated ova or spermatozoids;3. the unique identification number of extracted ova, spermatozoids or zygotes, related to the number pursuant to Item 2.4. the forename, patronymic and family name, the personal identity number, permanent address and unique identification number of the woman to whom ova, spermatozoids or zygotes have been implanted, related to the number pursuant to Item 3.(2) Any disclosure of data which may lead to identification of donors or recipients of ova or spermatozoids, where the donor is a person other than the man or woman willing to have progeny, shall be prohibited, unless ruled otherwise by law.(3) The data in the register under Paragraph (1) shall be deemed to be official information and shall be kept for 30 years.(4) (Amended, SG No. 71/2006) The terms and conditions for the registration, processing, storage and provision of the information in the register under Paragraph (1) shall be set out in the ordinance under Article 131 (3).Article 132a(New, SG No. 71/2006)(1) The medical establishments referred to in Article 131 (1) shall be obligated to notify the Executive Agency on Transplantation within seven days of establishment of all grave unwanted reactions or serious incidents where these are the result of extraction, medical expert opinion, processing, labelling and storage of ova, spermatozoids and or zygotes and are related to the quality and safety thereof.(2) The medical establishments pursuant to Article 131 (1) shall be obligated to create and apply a system for immediate blocking, withdrawal or destruction of all ova, spermatozoids or zygotes which may lead to a grave unwanted reaction or a serious accident.(3) The conditions and procedure for notification, registration, reporting and relay of information about the grave unwanted reactions and the serious accidents, as well as for blocking, withdrawal and destruction of ova, spermatozoids or zygotes shall be determined by an ordinance of the Minister of Health.Article 132b(New, SG No. 71/2006)(1) Medical establishments shall be obligated to label the extracted ova, spermatozoids and zygotes.(2) The medical establishments referred to in Article 131 (1) shall be obligated to create conditions for tracking the ova, spermatozoids and zygotes, as well as the products and materials that come into contact therewith and are related to their quality and safety, under conditions and by a procedure established by the ordinance referred to in Article 131 (3).Article 133No artificial fertilization of an ovum with spermatozoids of a donor who in blood kin of direct or collateral lineage up to four times removed to the woman to whom the ovum belongs shall be allowed. These circumstances shall be certified with a statement in writing by the persons willing to have progeny.Article 134(1) (New, SG No. 71/2006) Export and import of ova, spermatozoids and zygotes shall be effected under conditions and by the procedure of Articles 36, 37 and 38 of the Organ, Tissue and Cell Transplantation Act .(2) (Previous Article 134, SG No. 71/2006) Ova, spermatozoids and fertilized ova which have not been used for creating progeny may be provided to research, educational and medical establishments in this country and abroad for medical, research and educational purposes upon receipt of the informed consent in writing of the donor or, in the case of fertilized ova, by the two donors under terms and conditions set out in an ordinance issued by the Minister of Health.Article 135(1) Assisted reproduction techniques for selection of the gender of the progeny shall be prohibited, unless gender related hereditary diseases have to be prevented.(2) Assisted reproduction techniques for transmission of the genetic information of one individual only shall be prohibited.(3) The reproductive cloning of people shall be prohibited, including that for the purposes of donating organs, tissues and cells.(4) Any intervention aimed at modifying the human genome may be undertaken only for preventive or therapeutic purposes and not for the purposes of introducing the modification into the genome of the progeny.Article 136Any form of genome-based discrimination shall be prohibited.Section IVGenetic Health and Genetic TestsArticle 137The protection of genetic health shall be ensured through health activities aimed at:1. preventive and diagnostic tests to prove and classify genetic diseases;2. dispensary registration of persons with higher risk of occurrence and development of genetic diseases;4. treatment of hereditary diseases, innate anomalies and predispositions;4. identification of hereditary signs and identification of a parent;5. preservation of genetic information.Article 138Preventive genetic tests shall be conducted for the following purposes;1. to identify the risk of occurrence of a genetic diseases in the progeny;2. to identify clinically healthy carriers of genetic deviations;3. to diagnose hereditary and other diseases before and during pregnancy and after birth.Article 139(1) Genetic tests before childbirth shall be conducted in cases of proven risk of transmission of a genetic disease to the progeny.(2) The tests under Paragraph 1 shall be carried out under medical control and shall include:1. proving genetic deviations in cases of clinically healthy and ill patients;2. establishing predisposition to a genetic disease;3. establishing genetic deviations as a result of the life style or the external environment;4. proving genetic diseases upon their clinical manifestation.Article 140Special studies shall be conducted to establish the type and frequency of genetic deviations and to identify the genetic stock through national health programmes.Article 141(1) Genetic tests and the taking of biological material for genetic tests for medical or research purposes shall be carried out only upon receipt of the informed consent of the tested persons given in writing.(2) Genetic tests of children, persons with mental disorders and persons put under legal incapacity shall be carried out also at the permission of the commission for medical ethics at the respective medical establishment.(3) The results of genetic tests and screening may not be used for discrimination against the tested persons.(4) The information about the human genome of persons shall constitute personal data and may not be disclosed to employers, health insurance organisations and insurance companies.Article 142(1) Genetic tests for medical or research purposes shall be carried out by accredited:1. genetic laboratories at medical establishments for hospital aid;2. genetic laboratories at medical establishments for outpatient aid;3. independent laboratories.(2) The Minister of Health shall issue an order on the National Genetic Laboratory.(3) The laboratory under Paragraph 2 shall provide methodological guidance and supervision of the activities of genetic laboratories.(4) The National Genetic Laboratory shall establish and maintain a national genetic register.(5) The terms and conditions for the operation of the National Genetic Laboratory and the register under Paragraph 4 shall be set out in an ordinance issued by the Minister of Health.Article 143(1) The medical establishments under Article 142, Paragraph 1 shall inform the National Genetic Laboratory on a monthly basis of the genetic tests performed and the results thereof.(2) The medical establishments under Paragraph 1 shall establish and maintain an administrative register of the tests they have performed.(3) The structure of the laboratories under Paragraph 1 shall be set out in an ordinance issued by the Minister of Health, while their activities and the procedures for registration, storage, processing and access to the information in the register shall be set out in the ordinance under Article 142, Paragraph 5.Article 144(1) The genetic laboratories at medical establishments may set up DNA banks for taking and keeping genetic material for research and medical purposes.(2) The medical establishments under Paragraph 1 shall register their DNA banks with the Ministry of Health within seven days under terms and conditions set out in the ordinance under Article 142, Paragraph 5.Chapter FiveMENTAL HEALTHSection IProtection of Mental HealthArticle 145(1) Central and local government authorities and nongovernmental organisations shall organise activities for the protection of mental health related to:1. the provision of accessible and high-quality medical aid, care and support to persons with mental disorders, which they need for their life in the family and the community;2. the protection of the mental health in risk groups: children, students, aged people, persons at social welfare establishments, servicemen, arrested persons and prisoners;3. the active prevention of mental disorders;4. the support to public initiatives in the field of mental healthcare;5. the specialised continued training of persons involved in the protection of mental health;6. the implementation of mental health strengthening and protection training programmes for the persons who train and perform medical activities, social adaptation, organisation and management, and protection of the public order;7. applied research oriented to the strengthening of mental health;8. public awareness of mental health issues.(2) Local governments shall create conditions for psycho social rehabilitation and financial and material support, including housing, to persons with mental disorders.Article 146(1) Persons with mental disorders in need of special healthcare are as follows:1. mental patients with established serious mental dysfunction (psychosis or severe disorder of the personality) or pronounced long-term mental damage as a result of a mental disease;2. persons with moderate, severe or deep mental handicap or vascular and senile dementia;3. persons with other mental dysfunctions, learning handicaps and adaptation difficulties, which require medical aid, care and support to live fully in the family and the community.(2) Any person with mental disorders shall receive treatment and care under conditions equal to those offered to other patients.Article 147(1) No person may be subject to medical activities for the establishment or treatment of a mental disorder, unless prescribed by law.(2) The assessment of an existing mental disorder may not be based on family, professional or other conflicts or information of a mental disorder in the past.Article 148The following fundamental principles shall apply to the treatment of persons with mental disorders:1. minimization of the restriction of personal freedom and respect for the patient's rights;2. reduction of the institutional dependence of persons with mental disorders on long-term hospital treatment provided that this does not contravene the established medical standards;3. development of a broad network of specialised establishments for outpatient psychiatric aid and priority of the care in the family and the community;4. integration and equality of psychiatric care among the other branches of medicine;5. observance of humanitarian principles and norms in the therapeutic process and social adaptation;6. encouragement of self-assistance and mutual assistance and active public and professional support to persons with mental disorders;7. specialised training, vocational training and re-training of persons with mental disorders with a view to their social adaptation;8. participation of humanitarian non-governmental organisations in the process of treatment and social adaptation.Article 149(1) The treatment of persons with mental disorders shall be carried out by medical establishments for primary or specialised outpatient aid, medical establishments for mental hospital care, dispensaries, specialised wards in multi profile hospitals and medical and social care homes.(2) The medical activities related to the treatment of persons with mental disorders shall include diagnostic tests, pharmaceutical and instrumental methods of treatment and psychotherapy. The terms and conditions for their performance shall be set out in an ordinance issued by the Minister of Health.(3) The use of surgical methods for change of the morphology of the central nerve system with a view to attaining specific psychic characteristics shall be prohibited.Article 150(1) Measures for temporary physical constraint may be applied to patients with established mental dysfunction in a condition that represents a direct and immediate threat to their own life and health or the life and health of other people.(2) The measures under Paragraph 1 shall be applied only as a precondition for the treatment and shall not replace the active treatment.(3) The undertaking of temporary physical constraint measures shall be performed at the instructions of a medical doctor, specifying the type of measure and its duration. This duration may not be longer than six hours.(4) The measures under Paragraph 1 shall be carried out by staff specially trained for this purpose.(5) The type of the physical constraint measures undertaken, the reasons for their undertaking, their duration and the name of the medical doctor who has given the instructions shall be entered into a special journal of the medical establishment and in the history of the case.(6) The person under physical constraint measures shall be continuously monitored by a medical doctor or a nurse.(7) The type and manner of applying physical constraint measures shall be set out in the established medical standards.(8) The terms and conditions for the application of physical constraint measures shall be set out in an ordinance issued by the Minister of Health together with the Minister of Justice.Article 151(1) The labour therapy of persons with mental disorders shall be incorporated in psycho-social rehabilitation programmes.(2) All forms of exploitation and coercion shall be ruled out in the implementation of labour therapy.(3) The activities related to the organisation, working conditions and remuneration of work shall be set out in an ordinance issued by the Minister of Health in consultation with the Minister of Labour and Social Policy and the Minister of Finance.Article 152(1) Specialised institutions for social services to persons with mental disorders shall establish health offices with a medical doctor, a paramedic or a nurse.(2) Health offices shall perform activities involving:1. continuous medical monitoring;2. the provision of first medical aid;3. control of the hygiene of persons;4. operational control over the observance of sanitary requirements;5. the preparation and keeping of medical documentation of each person.Article 153(1) Urgent psychiatric aid is a set of medical rules and activities applied to persons with apparent signs of mental disorders, where their behaviour of condition represents a direct and immediate threat to their own life and health or the life and health of other people.(2) Urgent psychiatric aid shall be provided by psychiatric dispensaries, medical establishments for mental hospital aid, psychiatric wards or clinics at multi-profile hospitals and urgent medical aid centres.(3) Urgent psychiatric aid shall be provided in accordance with the established medical standards.Article 154(1) Where the condition of a person under Article 146, Paragraph 1, Items 1 and 2 warrants continuation of the treatment after the urgent condition is put under control, the head of the medical establishment shall make a decision to have the person temporarily accommodated for treatment for not more than 24 hours, informing the patient's relatives thereof forthwith.(2) By way of exception, the term under Paragraph 1 may be renewed by up to 48 hours with the permission of the district judge.(3) If a decision to conduct mandatory treatment is needed, the head of the medical establishment shall immediately petition the court and serve also an opinion on the mental condition of the person drawn up by a psychiatrist.Section IIMandatory Accommodation and TreatmentArticle 155Subject to mandatory accommodation and treatment shall be the persons under Article 146, Paragraph 1, Items 1 and 2 who, due to their disease, may commit an offence threatening their relatives, the people around them or the community or seriously threatening their health.Article 156(1) The mandatory accommodation and treatment of the persons under Article 155 shall be implemented upon a decision of the district court at the current address of the person or, in the cases under Article 154, of the district court at the location of the medical establishment.(2) The mandatory treatment aid shall be provided by medical establishments for mental hospital aid and psychiatric dispensaries, psychiatric wards or clinics at multi-profile hospitals and medical establishments for specialised psychiatric outpatient aid.Article 157The mandatory accommodation and treatment may be demanded by the public prosecutor and, in the cases under Article 154, Paragraph 3, also by the head of the medical establishment.Article 158(1) The court shall send copies of the request for mandatory accommodation and treatment of the person whose case will be heard. The person may raise objections and produce evidence within seven days.(2) The court shall hear the case in a public session with the participation of the person within 14 days of the date of the request.(3) Where the district judge has given the permission under Article 154, Paragraph 2, and the court shall hear the case immediately and the provisions of Paragraph 1 shall not apply. The copies shall be delivered during the court session and the head of the medical establishment shall make arrangements for the person to appear.(4) The participation of a psychiatrist, legal defence and a public prosecutor shall be mandatory.(5) The person whose case is heard shall be questioned in person and, if necessary, brought to the court room. Where the health condition of the person prevents him/her from appearing in the court session, the court shall acquire immediate impressions of the person's condition.Article 159(1) The court shall issue instructions on the preparation of a forensic expert medical opinion and report, having established the existence of any of the circumstances under Article 155 and having heard a psychiatrist as to the likelihood of a mental disorder of the person. The court shall rule on the form of the forensic expert medical activities - outpatient or hospital.(2) The court shall designate the medical establishment and the expert to perform the forensic expert medical activities and the time limits for their performance, which may not be longer than 14 days, and schedule the next court session on the case within 48 hours of the completion of the forensic expert medical opinion and report.(3) Where the time limits for the forensic expert medical opinion and report prove insufficient, by way of exception, the court may rule in a public session to renew it once by up to ten days. In such cases, the court shall reschedule the court session scheduled under Paragraph 2.(4) Where the court establishes that the circumstances under Article 155 do not exist or it is not established that the person has a mental disorder after the hearing of the psychiatrist, the proceedings shall be dropped.Article 160(1) The forensic expert medical opinion and report shall be performed under terms and conditions set out in an ordinance issued by the Minister of Health and the Minister of Justice.(2) During the conduct of the forensic expert medical activities, no treatment shall be applied, except for urgent conditions and upon the informed consent of the person.(3) The expert shall give the forensic expert medical opinion and report, as well as an opinion on the capability of the person of giving an informed consent with the treatment, a proposal for the treatment of the respective disease, and a recommendation on the medical establishments to perform the treatment.Article 161(1) The court ruling on the dropping of proceedings or the appointment of forensic expert medical activities shall be subject to private appeal or protest within three days. The appeal shall stay the forensic expert medical activities, unless the court rules otherwise.(2) The regional court shall rule in a public session. The failure of the person to appear without any cogent reasons shall be no obstacle to the hearing of the case.Article 162(1) Having heard the person with regard to the forensic expert medical opinion and report, the court shall rule on the case on the basis of the evidence collected.(2) In its judgement, the court shall rule on the need for mandatory accommodation and specify the medical establishment, as well as the existence or non-existence of capability of the person to give informed consent. The court shall establish the duration of the accommodation and treatment, as well as the form of treatment - outpatient or hospital.(3) Where non-existence of capability of the person is assumed, the court shall rule on mandatory treatment and appoint a person from among the relatives of the patient to give the informed consent with the treatment. In the case of conflict of interests or lack of relatives, the court shall appoint a representative of the municipal healthcare service or a person designated by the mayor of the municipality to give the informed consent with the treatment of the person.Article 163(1) The court judgement shall be subject to appeal by the parties concerned within seven days of its ruling. The regional court shall rule within seven days and its judgement shall not be subject to appeal.(2) The appeal against a judgement on mandatory accommodation and treatment shall stay its enforcement, unless the first instance or appellate court rules otherwise.Article 164(1) The mandatory treatment shall be terminated upon the expiration of the time limit for which it was adjudicated or at a decision of the district court at the location of the medical establishment.(2) The district court at the location of the medical establishment shall rule ex officio on a quarterly basis and in accordance with the forensic expert medical opinion and report whether to terminate the mandatory accommodation and treatment or to continue the mandatory accommodation and treatment pursuant to Arts. 158, 159, 160 and 161.(3) Where the prerequisites for mandatory accommodation and treatment are eliminated prior to the expiration of the time limits, the court may terminate the mandatory accommodation and treatment at the request of the person, the public prosecutor or the head of the medical establishment.Article 165(1) The provisions of the Criminal Procedure Code shall apply, unless this Section provides for some special rules.(2) The enforceable judgement on mandatory accommodation and treatment and the court ruling on a forensic expert medical activities shall be implemented by the respective medical establishments with the assistance of the authorities of the Ministry of Interior, if needed.Chapter SixNON-CONVENTIONAL METHODS FOR FAVOURABLE IMPACT ON INDIVIDUALHEALTHArticle 166(1) The Minister of Health shall control the application of non-conventional methods for favourable impact on individual health, including:1. the use of non-pharmaceutical products of organic origin;2. the use of non-pharmaceutical products of mineral origin;3. the use of non-conventional physical methods;4. homeopathy;5. acupuncture and acupressure;6. iris, pulse and auricular methods of testing;7. dietetics and curative hunger.(2) The use of non-conventional methods for favourable impact on individual health other than those under Paragraph 1 shall be prohibited.(3) The Minister of Health shall issue an ordinance to set out the requirements to persons applying non-conventional methods for favourable impact on individual health.Article 167(1) (Supplemented, SG No. 59/2006) Eligible to practice non-convention methods under Article 166 (1), except for homeopathy, shall be Bulgarian citizens and citizens of a European Union member-state, the other states from the European economic space and Switzerland, who are mentally healthy, who have not been convicted for felony and who meet any of the following conditions:1. they are holders of a master's degree in the professional areas of medicine, dental medicine or pharmacology;2. (amended, SG No. 85/2005) they are holders of a specialist's or bachelor's degree in the professional area of health care;3. they are holders of secondary education diploma and a certificate of completed training of at least four semesters at a higher medical school under terms and conditions set out in an ordinance issued by the Minister of Health and the Minister of Education and Science.(2) (Supplemented, SG No. 59/2006) Eligible to practice homeopathy shall be Bulgarian citizens and citizens of a European Union member-state, the other states from the European economic space and Switzerland, who are holders of a masters degree in the professional areas of medicine or dental medicine.Article 168Persons practising non-conventional methods shall:1. act in good faith;2. prevent any harm to the health of the persons seeking their assistance;3. explain to the persons seeking their assistance in detail and in a comprehensible language what non-conventional method they will apply and what results they expect;4. obtain the explicit consent of the persons seeking their assistance on the application of the respective method given in writing;5. not mislead the persons seeking their assistance, including the opportunities for achieving an impact on their health condition through the non-conventional method practised.Article 169All forms of advertising non-conventional methods, including their association with preventive, diagnostic, therapeutic and rehabilitation activities shall be prohibited.Article 170(1) Persons practising non-conventional methods shall register at the RHC in the region where they operate by serving an application with documents certifying the meeting of the requirements under Article 167 attached thereto.(2) The application shall give an exhaustive description of the non-conventional methods and means that the person will apply.(3) Where the documentation is incomplete or the registration requirements are not met, the RHC director shall advise the person thereof within 15 days and give a ten-day time limit for removal of inconsistencies.(4) Within 15 days of the date of the application or the removal of inconsistencies, the RHC director shall issue a registration certificate, specifying the types of non convention methods to be applied by the person or refuse to issue such a certificate with the reasons thereof.(5) The RHC director may refuse to register the applicant, where the non-conventional method described in the application contravenes the statutory requirements.(6) The refusal to register an applicant shall be subject to appeal pursuant to the Administrative Procedure Code. (7) A registration fee shall be paid in amounts set by the Council of Ministers.Article 171(1) The regional healthcare centre shall establish and maintain a register of persons practising non-conventional methods. The register shall be public and include:1. the number of the entry;2. the date of the non-conventional practice registration certificate;3. details of the person practising non-conventional methods - name, personal identification number and permanent address;4. a description of the non-conventional method practised by the person;5. the registration number of the visitors' journal under Article 173;6. the date of deletion of the registration and the reasons thereof;7. any changes of the circumstances set out in items 1 to 6;6. any comments on the registered circumstances.(2) Registered persons shall advise the respective RHC of any change in the non-conventional practice registration within seven days of its occurrence.Article 172(1) The registration shall be deleted in any of the following cases:1. at the request of the person who has registered the non conventional practice;2. upon the death of the registered person or putting him/her under legal incapacity;3. in the case of presenting untrue statements in the documents under Article 170, Paragraph 1;4. in the case of activities in violation of the registration;5. upon the establishment of unfavourable effects on human health as a result of the non-convention methods applied by the registered person.(2) The registration shall be deleted at an order of the RHC director.(3) The orders under Paragraph 1, Items 3, 4 and 5 shall be subject to appeal pursuant to the Administrative Procedure Code. (4) The appeal against an order shall not stay its enforcement.Article 173(1) Persons practising non-conventional methods shall enter the details of each person seeking their assistance in the visitors' journal as follows:1. the date of each visit;2. the number of each visit;3. the full name, personal identification number and permanent address;4. all complaints reported during the visit;5. the non-conventional activities performed.(2) The visitors' journal shall be bound, sealed and registered by the RHC which has made the registration.(3) Persons practising non-conventional methods shall keep the visitors' journal for ten years after its finalization and submit it to controlling authorities upon request.Chapter SevenMEDICAL EDUCATION. MEDICAL PROFESSION. MEDICAL RESEARCHON PEOPLE. MEDICAL SCIENCESection IMedical EducationArticle 174(1) Medical education shall provide and guarantee the volume and quality of training of the medical and non-medical specialists working in the national healthcare system.(2) The fundamental principles of medical education shall be as follows:1. continuous and high-quality teaching and mastering of a guaranteed volume of theoretical knowledge and practical skills;2. stage-by-stage conduct and continuous nature of the training;3. freedom of choice of a specialty.Article 175(1) The training for and acquisition of a master's degree in specialties from the professional areas of medicine, dental medicine, pharmacology and public health shall be organised and conducted at departments of higher schools accredited under the Higher Education Act. (2) (Amended, SG No. 85/2005, effective 1.09.2006) The training for and acquisition of a bachelorТs degree in specialties from the professional area of public health and as nurse and midwife from the professional area of health care shall be organised and conducted at departments and/or branches of higher schools accredited under the Higher Education Act. (3) (Amended and supplemented, SG No. 85/2005, effective 1.09.2006, amended, SG No. 41/2007) The training for and acquisition of a bachelor's under Article 42, Paragraph 1, item 1, letter "a" of the Higher Education Act degree in specialties from the professional areas of health care dental medicine, pharmacology and public health shall be organised and conducted at colleges accredited under the Higher Education Act. (4) The training for the acquisition of a doctor's degree in scientific specialties in the field of healthcare shall be conducted at higher schools, the Bulgarian Academy of Sciences, national centres for public health affairs and other research organisations accredited under the Higher Education Act. Article 176(1) Upon receiving their diplomas, all medical doctors and doctors of dental medicine shall take the Hippocratic oath. The text of the oath shall be adopted by the Supreme Medical Council.(2) (Supplemented, SG No. 85/2005) Nationals of EU Member States, other states from the European economic community and Switzerland, shall be provided an oath suitable in content and form.Article 177(Amended, SG No. 85/2005) The Council of Ministers shall adopt uniform state requirements to the acquisition of higher education in specialties of regulated profession from the professional areas of medicine, dental medicine, pharmacology and health care at the proposal of the Minister of Health.Article 178(1) (Amended, SG No. 41/2007) Post-graduate training shall be the right of all holders of a doctor's, masters and bachelor's degree working in the national healthcare system.(2) Post-graduate training shall include:1. the training for acquisition of a specialty in healthcare;2. (amended, SG No. 85/2005) continuing medical training.(3) The Minister of Health shall specify the number of places for post-graduate training in specialties subsidized by the government in conformity with the objectives and priorities of the national health strategy on an annual basis.Article 179The Minister of Health shall plan and coordinate the activities related to the post-graduate training for the acquisition of a specialty by medical and non-medical specialists working in the national healthcare system.Article 180(1) The theoretical training under Article 178, Paragraph 2, and Item 1 shall be conducted by:1. higher schools accredited with positive assessment under the Higher Education Act and the Military Medical Academy;2. national centres for public health affairs accredited for the respective specialty under the Higher Education Act. (2) The practical training under Article 178, Paragraph 2, and Item 1 shall be conducted by:1. the establishments under Paragraph 1;2. medical establishments accredited with positive assessment for training of students and post-graduates.(3) Specialty shall be acquired upon the completion of training programmes and successful sitting for a practical and theoretical examination before a state examination panel appointed at an order of the Minister of health.Article 181(1) The list of basic and profiled specialties in the healthcare system and the terms and conditions for conducting training and acquiring a specialty in healthcare, as well as financial matters, shall be set out in an ordinance issued by the Minister of Health in consultation with the Minister of Education and Science and the Minister of Finance.(2) The funding of the training for acquiring a specialty in healthcare shall be determined in conformity with the objectives and priorities of the national health strategy.Article 182(1) (Amended, SG No. 85/2005, SG No. 75/2006) Doctors', dentists', master pharmacists', nurses, midwives and associated medical specialists professional organisations shall organise, coordinate, conduct and register the continuing medical education of medical doctors, dentists, master pharmacists, nurses, midwives and associated medical specialists under terms and by a procedure set out in agreements with the higher schools, the Bulgarian Red Cross and the Military Medical Academy.(2) (Amended, SG No. 85/2005) Higher schools, the Military Medical Academy, medical colleges, the Bulgarian Red Cross Society and other associations of people working in healthcare shall conduct the continued medical training of specialists in the healthcare system other than those under Paragraph 1 under terms and conditions set out in agreements with the post-graduate training facilities.(3) (Amended, SG No. 85/2005, SG No. 75/2006) The Union of Scientific Medical Societies in Bulgaria, the Union of Scientists in Bulgaria and medical associations by specialties may engage in the conduct of continuing medical training of medical doctors, doctors of dental medicine and master pharmacists under terms and conditions set out in agreements with the Bulgarian Doctors' Union, the Union of Dentists in Bulgaria and Union of Pharmacists in Bulgaria.(4) The activities under Paragraphs (1) to (3) shall be subject to control under terms and conditions set out by the Minister of Health.Section IIMedical ProfessionArticle 183(1) (Amended, SG No. 85/2005) The medical profession shall be practiced by persons who hold a diploma for completed higher education in specialities from the occupational sections of medicine, dentistry, pharmacology and health care.(2) (New, SG No. 85/2005) The diploma referred to in Paragraph 1 shall attest to the higher education acquired in the respective specialty and educational qualification degree, as well as to the professional qualification as set down in the state requirements pursuant to Article 177.(3) (Renumbered from Paragraph (2), SG No. 85/2005) Medical doctors and doctors of dental medicine shall practice the medical profession under the conditions of Paragraph 1 and Article 3 (1) of the Doctors' and Doctors of Dental Medicine Professional Organisations Act. (4) (New, SG No. 85/2005) Professional Organisation of Medical Nurses, Midwives and Associated Medical Specialists Guild Act. (5) (New, SG No. 75/2006) Master pharmacists shall practice the medical profession under the conditions of Paragraph (1) and Article 3 (1) of the Professional Organisation of Masters of Pharmacy Act. Article 184(Repealed, SG No. 85/2005) Article 185(1) (Amended, SG No. 85/2005) The Ministry of Health shall officially establish and maintain a list of persons who have acquired higher education in specialties from the professional field of medicine, dentistry, pharmacology, public health and health care.(2) (Repealed, renumbered from Paragraph (4), amended, SG No. 85/2005) The data in the list shall be accessible for use to all persons under the Access to Public Information Act. (3) (Repealed, SG No. 85/2005) Article 186(Amended, SG No. 85/2005) (1) (+mended, SG No. 13/2008) Citizens of a European Union member state, the other states from the European economic community and Switzerland shall practice the medical profession in the Republic of Bulgaria after recognition of the professional qualifications thereof according to the procedure established by the Recognition of Professional Qualifications Act. (2) The Ministry of Health and the higher educational establishments shall provide the persons referred to in Paragraph (1) conditions for the acquisition of the necessary linguistic knowledge and professional terminology in Bulgarian for practicing their profession in the Republic of Bulgaria when the need arises and when this is in their interest and in the interest of their patients.(3) (Amended, SG No. 59/2006, SG No. 13/2008) Foreigners other than those referred to in Paragraph (1) shall practice the medical profession in the Republic of Bulgaria after recognition of the professional qualifications thereof according to the procedure established by the Recognition of Professional Qualifications Act, and if they have a command of the Bulgarian language and professional terminology in Bulgarian, determined in pursuance to Regulations of the Minister of Education and Science and the Minister of Health.(4) In the cases other than those under Paragraphs (1) - (3), the right to practice the medical profession shall be granted also to foreigners invited for scientific exchange between medical establishments under terms and conditions set out in an ordinance issued by the Minister of Health.(5) (Repealed, SG No. 13/2008). Article 187(Repealed, SG No. 85/2005) Article 188(Amended, SG No. 85/2005) The Minister of Health shall issue an ordinance to specify the professional competence of persons working in the national healthcare system who are holders of a higher education diploma in the specialties of psychology, kinesitherapy, biology, biochemistry, microbiology and molecular biology.Article 189Medical establishments shall insure the persons exercising the medical profession at the medical establishment for potential damages resulting from culpable non-performance of their professional duties.Article 190(1) Persons exercising the medical profession shall be free to act and make decisions in accordance with their professional qualifications, medical standards and medical ethics.(2) Medical specialists and medical establishments may not use commercial advertising for their activities.Article 191(1) (Amended, SG No. 85/2005, 59/2006) A medical specialist - A medical specialist - Bulgarian citizen, foreigner or a citizen of a European Union member-state, the other states from the European economic space or Switzerland, permanently residing in the Republic of Bulgaria who has not occupied a position or performed an activity requiring professional qualification in a medical profession for more than five years shall lose the right to practice that medical profession.(2) (New, SG No. 85/2005, amended, SG No. 59/2006) The persons with professional qualification in a medical profession who hold positions or operate in the field of public health care shall not lose their right to practice the medical profession in case of continuous training and practicing the profession.(3) (Renumbered from Paragraph (2), amended, SG No. 85/2005) The persons under Paragraph (1) shall restore their rights following an examination under conditions and by a procedure established by an ordinance issued by the Minister of Health.Article 192(1) Medical specialists may not exercise their profession if they suffer of diseases threatening the health and life of patients.(2) The list of diseases under Paragraph 1 shall be determined by the Minister of Health.(3) In the cases under Paragraph 1, the Minister of Health shall issue an order to delete the medical specialist from the register under Article 185.(4) The order of the Minister of Health shall be subject to appeal under the Administrative Procedure Code. Article 193(1) The Minister of Health may issue an order to withdraw the right of a person to exercise the medical profession in the Republic of Bulgaria for a term ranging from six months to two years in any of the following cases:1. repeated violation of the established medical standards;2. repeated violation of the principles and procedure for conducting medical expert activities to establish the ability to work.(2) The order under Paragraph 1 shall be subject to appeal under the Administrative Procedure Code. Section III(Repealed, SG No. 13/2008)Recognition of Professional Qualification in Medical Profession(Title amended, SG No. 59/2006) Article 194(Amended and supplemented, SG No. 85/2005, No. 59/2006,repealed, No. 13/2008) Article 195(Supplemented, SG No. 85/2005, amended and supplemented,No. 59/2006, repealed, No. 13/2008) Article 196(Repealed, SG No. 59/2006) Section IVMedical Research on People. Medical ScienceArticle 197(1) The Ministry of Health shall organise and control the conduct of medical research on people.(2) Medical research, within the meaning of this Act, is any experiment on people conducted with a view to increasing medical knowledge.(3) Tested persons shall have all the rights of a patient.(4) Medical research shall be conducted, while ensuring maximum safety for the health of the tested person and non disclosing his/her personal data.(5) The interests of the tested person shall prevail over the scientific and financial interests of the researcher at any stage of the medical research.Article 198(1) Medical research on people shall not be conducted in any of the following cases:1. it contravenes the law or medical ethics;2. no evidence has been produced on their safety;3. no evidence has been produced on the expected scientific benefits;4. it does not correspond to the scientific objective and the medical research plan;5. there is an increased risk for the health and life of the tested person.(2) No medical research on people shall be conducted with chemical substances and physical sources of radiation which may lead to changes of the human genome.(3) No medical research on people shall be conducted with products of genetic engineering which may lead to the transmission of new properties of the progeny.Article 199(1) Medical research shall be conducted only on persons who have given their informed consent in writing upon their notification in writing by the leader of the research on the essence, importance, scope and possible risks of the research.(2) Consent with the participation in medical research shall be given only by a legally capable person understanding the essence, importance, scope and possible risks of the clinical tests.(3) The consent shall be given in person and in writing. It may be withdrawn at any point of time.Article 200(1) No medical research shall be conducted on people put under legal incapacity.(2) Where no significant health benefits are expected, medical research shall not be conducted on:1. pregnant women and breast-feeding mothers;2. prisoners;3. (repealed, SG No. 46/2007, effective 1.01.2008). Article 201(1) All persons subjected to medical research shall be insured against damage to their health or death.(2) The general terms and conditions, the minimum insurance amount, the minimum insurance premium and the insurance procedure under Paragraph 1 shall be set out in an ordinance issued by the Council of Ministers.Article 202(1) The leader of the medical research shall be a medical doctor or a doctor of dental medicine with recognised medical specialty and shall be responsible for the planning and conduct of the research.(2) Medical research on people shall be conducted only by qualified specialists with higher education in the field of medicine, dental medicine, pharmacology, biology and biochemistry.(3) Medical research may be conducted by foreign persons only on the basis of an agreement consulted with the Minister of Health.Article 203(1) Medical research shall be conducted upon obtaining a positive opinion from the local commission for ethics set up at the medical establishment or research organisation conducting the medical research.(2) The membership of the commission under Paragraph 1 shall be determined by the head of the establishment or organisation.(3) Specialists involved in the preparation, organisation and conduct of the research may not sit on the commission under Paragraph 1.(4) The local commission for ethics shall give its opinion within 30 days of receipt of the request by the leader of the research.(5) The local commission for ethics shall supervise the conduct of medical research on people, on which it has given a positive opinion.Article 204Upon the completion of the medical research on people, the leader of the research shall inform the local commission for ethics within 30 days.Article 205(1) The medical research may be terminated at any point of time in any of the following cases:1. withdrawal of the consent of the tested person;2. at the proposal of the leader of the research;3. at the proposal of the chairperson of the local commission for ethics at the medical or healthcare establishment in the event of proven violations in the course of its conduct.(2) Upon the termination of the medical research under Paragraph 1, Items 1 and 2, the leader of the research shall inform the local commission for ethics within 15 days.Article 206The terms and conditions for the conduct of medical research shall be set out in an ordinance issued by the Minister of Health in consultation with the Minister of Education and Science.Article 207The Minister of Health shall determine, on an annual basis, research projects in the government research priorities in the field of medicine at the proposal of the rectors of higher schools, the directors of the national centres for public health affairs, heads of research organisations and other legal entities and upon obtaining the opinion of the Supreme Medical Council.Article 208(1) The Minister of Health shall announce a competition to select contractors of research projects in the government research priorities.(2) The terms and conditions for the conduct of competitions and the requirements to the applicants shall be set out in an ordinance issued by the Minister of Health in consultation with the Minister of Education and Science.(3) Research projects shall be financed through government subsidies and other sources.Chapter EightADMINISTRATIVE PENALTY PROVISIONSArticle 209(1) Persons failing to appear for a compulsory preventive medical examination, test or immunization shall be punished with a fine ranging from BGN 50 to BGN 100 or from BGN 100 to BGN 200 in the case of repeated failure to appear.(2) The penalties under Paragraph 1 shall be imposed also on officials who have prevented persons to appear for a compulsory preventive medical examination, test or immunization.Parents or trustees failing to ensure the compulsory immunization of their children shall be punished with a fine ranging from BGN 50 to BGN 100. The fine shall range from BGN 100 to BGN 200 in the case of repeated violation.Article 210(1) Persons engaging in activities in violation of the health requirements under this Act and the related secondary legislation shall be punished with a fine ranging from BGN 200 to BGN 5,000 or from BGN 3,000 to BGN 10,000 in the case of repeated violation.(2) Where the violation under Paragraph 1 has been committed by a sole proprietor, a pecuniary sanction shall be imposed, ranging from BGN 100 to BGN 1,500 or from BGN 3,000 to BGN 9,000 in the case of repeated violation.(2) Where the violation under Paragraph 1 has been committed by a legal entity, a pecuniary sanction shall be imposed, ranging from BGN 2,000 to BGN 5,000 or from BGN 6,000 to BGN 12,000 in the case of repeated violation.Article 211(1) Persons engaging in activities in a facility for public use without fulfilling the obligation to advise RIPHPC thereof shall be punished with a fine ranging from BGN 1,000 to BGN 3,000 or from BGN 3,000 to BGN 10,000 in the case of repeated violation.(2) Where the violation under Paragraph 1 has been committed by a sole proprietor, a pecuniary sanction shall be imposed, ranging from BGN 3,000 to BGN 9,000 or from BGN 9,000 to BGN 15,000 in the case of repeated violation.(3) Where the violation under Paragraph 1 has been committed by a legal entity, a pecuniary sanction shall be imposed, ranging from BGN 5,000 to BGN 15,000 or from BGN 10,000 to BGN 20,000 in the case of repeated violation.Article 212(1) Persons refusing or obstructing the exercise of state health control or the taking of samples by the state health control authorities shall be punished with a fine ranging from BGN 500 to BGN 1,000 or from BGN 1,000 to BGN 1,500 in the case of repeated violation, unless a more severe punishment is due.(2) Persons failing to fulfil the instructions of the state health control authorities shall be punished with a fine ranging from BGN 500 to BGN 1,000 or from BGN 1,000 to BGN 1,500 in the case of repeated violation, unless a more severe punishment is due.(3) Where the violation under Paragraphs (1) and (2) has been committed by a sole proprietor or a legal entity, a pecuniary sanction shall be imposed, ranging from BGN 500 to BGN 1,000 or from BGN 1,000 to BGN 1,500 in the case of repeated violation.Article 213(2) Persons failing to fulfil the instructions to discontinue the operation of facilities or violating a prohibition to sell products and goods as instructed by the state health control authorities shall be punished with a fine ranging from BGN 3,000 to BGN 9,000 or from BGN 10,000 to BGN 30,000 in the case of repeated violation, unless a more severe punishment is due.(2) Where the violation under Paragraph 1 has been committed by a sole proprietor, a pecuniary sanction shall be imposed, ranging from BGN 2,000 to BGN 6,000 or from BGN 6,000 to BGN 12,000 in the case of repeated violation.(3) Where the violation under Paragraph 1 has been committed by a legal entity, a pecuniary sanction shall be imposed, ranging from BGN 5,000 to BGN 15,000 or from BGN 15,000 to BGN 30,000 in the case of repeated violation.Article 214(1) (Amended, SG No. 59/2006, effective 21.07.2006) Persons engaging in unauthorised activities for the demolishing or removal of asbestos and/or asbestos-containing materials of buildings, structures, enterprises, installations or vessels without having received the permit referred to in Article 73 herein shall be punished with a fine of up to BGN 1,500 or ranging from BGN 1,500 to BGN 3,000 in the case of repeated violation.(2) Where the violation under Paragraph 1 has been committed by a sole proprietor, a pecuniary sanction shall be imposed, ranging from BGN 500 to BGN 1,500 or from BGN 1,500 to BGN 5,000 in the case of repeated violation.(3) Where the violation under Paragraph 1 has been committed by a legal entity, a pecuniary sanction shall be imposed, ranging from BGN 1,000 to BGN 3,000 or from BGN 3,000 to BGN 6,000 in the case of repeated violation.Article 215Persons with infectious diseases under Art, 61 refusing mandatory isolation and treatment shall be punished with a fine ranging from BGN 50 to BGN 500. Persons refusing to come voluntarily for isolation and treatment shall be brought forcibly with the assistance of the authorities of the Ministry of Interior at the request of the head of the medical establishment for hospital aid.Article 216Medical specialists violating the terms and conditions for registration, notification and reporting, as well as the terms and conditions for isolation, testing and dispensary registration of patients, former patients, infection carriers and persons in contact with them shall be punished with a fine ranging from BGN 300 to BGN 1,000 and with withdrawal of the right to exercise the medical profession for a term ranging from six months to a year in the case of repeated violation.Article 217(1) Persons engaging in activities for disinfection, disinfection and deratization in violation of the requirements under this Act and the related secondary legislation shall be punished with a fine ranging from BGN 500 to BGN 1,500 or from BGN 1,500 to BGN 3,000 in the case of repeated violation.(2) Where the violation under Paragraph 1 has been committed by a sole proprietor, a pecuniary sanction shall be imposed, ranging from BGN 300 to BGN 1,000 or from BGN 1,000 to BGN 3,000 in the case of repeated violation.(3) Where the violation under Paragraph 1 has been committed by a legal entity, a pecuniary sanction shall be imposed, ranging from BGN 500 to BGN 1,500 or from BGN 1,500 to BGN 5,000 in the case of repeated violation.Article 218(1) Persons violating the provisions of Arts. 54 or 56 shall be punished with a fine ranging from BGN 50 to BGN 100 or from BGN 100 to BGN 300 in the case of repeated violation.(2) (Supplemented, SG No. 59/2006) The pecuniary sanction for violations under Articles 54 and 56 committed by legal entities shall range from BGN 500 to BGN 1,500 and from BGN 3,000 to BGN 10,000 in the case of repeated violation.(3) Persons advertising alcoholic beverages in violation of Article 55, pares 1 and 2 shall be punished with a fine ranging from BGN 500 to BGN 1,500 or from BGN 1,500 to BGN 5,000 in the case of repeated violation.(4) Where the violation under Paragraph 3 has been committed by a sole proprietor, a pecuniary sanction shall be imposed, ranging from BGN 300 to BGN 1,000 or from BGN 1,000 to BGN 3,000 in the case of repeated violation.(5) Where the violation under Paragraph 3 has been committed by a legal entity, a pecuniary sanction shall be imposed, ranging from BGN 500 to BGN 1,500 or from BGN 1,500 to BGN 5,000 in the case of repeated violation.(6) Radio and television operators broadcasting advertisement of alcoholic beverages in violation of Article 55, Paragraphs 1 and 3 shall be punished with a pecuniary sanction of BGN 5,000 or BGN 10,000 in the case of repeated violation as imposed by the Council for Electronic Media under the Radio and Television Act.(6) Radio and television operators broadcasting advertisement of spirits in violation of Article 55, Paragraph 2 shall be punished pursuant to the Radio and Television Act. Article 219(1) Persons engaging in activities with sources of ionizing radiation in violation of the requirements under this Act and the related secondary legislation shall be punished with a fine ranging from BGN 2,000 to BGN 5,000 or from BGN 5,000 to BGN 15,000 in the case of repeated violation.(2) Where the violation under Paragraph 1 has been committed by a sole proprietor, a pecuniary sanction shall be imposed, ranging from BGN 1,000 to BGN 3,000 or from BGN 3,000 to BGN 10,000 in the case of repeated violation.(3) Where the violation under Paragraph 1 has been committed by a legal entity, a pecuniary sanction shall be imposed, ranging from BGN 1,500 to BGN 5,000 or from BGN 5,000 to BGN 15,000 in the case of repeated violation.Article 220(1) Officials failing to inform the patient of the circumstances under Article 88, Paragraph 1 shall be punished with a fine ranging from BGN 300 to BGN 1,000 and with withdrawal of the right to exercise the medical profession for a term ranging from six months to a year in the case of repeated violation.(2) Persons providing medical aid without the informed consent of the patient or in violation of the requirements for obtaining the informed consent of the patient shall be punished with a fine ranging from BGN 500 to BGN 1,500 and with withdrawal of the right to exercise the medical profession for a term ranging from six months to a year in the case of repeated violation.(3) Officials disclosing health information beyond the provisions of this Act and the related secondary legislation shall be punished with a fine ranging from BGN 500 to BGN 1,500 or from BGN 2,000 to BGN 6,000 in the case of repeated violation, unless a more severe punishment is due.Article 221Persons violating of rights of a patient under this Act and the related secondary legislation shall be punished with a fine ranging from BGN 300 to BGN 1,000 or from BGN 500 to BGN 1,500 in the case of repeated violation.Article 222(1) (Amended, SG No. 85/2005, No. 59/2006) Persons providing medical aid or engaging in healthcare activities without having the necessary professional qualification in a medical profession required shall be punished with a fine ranging from BGN 5,000 to BGN 10,000 or from BGN 10,000 to BGN 20,000 in the case of repeated violation, unless a more severe punishment is due.(2) Medical specialists committing recurrent violations in the course of exercising the medical profession due to negligence or ignorance, committing gross mistakes in the job or engaging in immoral actions abusing with their official position shall be punished with withdrawal of the right to exercise the medical profession for a term ranging from three months to two years, unless a more severe punishment is due.(3) Medical doctors, doctors of dental medicine, nurses, midwives or paramedics refusing to provide urgent medical aid to a person in critical condition shall be punished with a fine ranging from BGN 1,000 to BGN 5,000 and with withdrawal of the right to exercise the medical profession for a term ranging from three months to a year in the case of repeated violation.Article 223(Amended, SG No. 71/2006) (1) Persons engaging in assisted reproduction in violation of Articles 130, 131, 132a, 132b, 133, 135 and 136 shall be punished with a fine of BGN 15,000 or exceeding this sum but not exceeding BGN 50,000 and with withdrawal of the right to exercise the medical profession for a term ranging from three months to a year in the case of repeated violation, unless a more severe punishment is due.(2) Persons who violate the provision of Article 132 shall be punished with a fine of BGN 5,000 or exceeding this sum but not exceeding BGN 10,000 and a pecuniary sanction of BGN 20,000 or exceeding this sum but not exceeding BGN 50,000 shall be imposed in cases where the violation is perpetrated by a legal person.(3) Persons who violate the provision of Article 134 shall be punished with a fine of BGN 25,000 or exceeding this sum but not exceeding BGN 50,000 and a pecuniary sanction of BGN 50,000 or exceeding this sum but not exceeding BGN 100,000 shall be imposed in cases where the violation is perpetrated by a legal person.Article 224Officials imposing physical constraint measures to a patient with established mental disorders in violation of the requirements of this Act and the related secondary legislation shall be punished with a fine ranging from BGN 500 to BGN 1,500 and with withdrawal of the right to exercise the medical profession for a term ranging from three months to a year in the case of repeated violation, unless a more severe punishment is due.Article 225(1) Medical specialists issuing sickness certificates in violation of the existing statutory requirements shall be punished with a fine ranging from BGN 1,000 to BGN 3,000 or from BGN 4,000 to BGN 10,000 in the case of repeated violation.(2) Officials failing to fulfil the order of the director of the regional healthcare centre to set up a physician consultative commission shall be punished with a fine ranging from BGN 500 to BGN 1,500 or from BGN 1,500 to BGN 4,500 in the case of repeated violation.Article 226Persons engaging in medical research in violation of this Act shall be punished with a fine ranging from BGN 2,000 to BGN 6,000 and with withdrawal of the right to exercise the medical profession for a term ranging from three months to a year in the case of repeated violation, unless a more severe punishment is due.Article 227Persons practising non-conventional methods of impact on individual health in violation of the requirements of this Act and the related secondary legislation shall be punished with a fine ranging from BGN 500 to BGN 1,500 or from BGN 1,500 to BGN 5,000 in the case of repeated violation.Article 228Medical specialists violating the requirements under this Act and the related secondary legislation to the form, content, terms and conditions for the use, processing, analysis, storage and disclosure of medical documentation shall be punished with a fine ranging from BGN 500 to BGN 1,500 or from BGN 1,500 to BGN 3,000 in the case of repeated violation.Article 229(1) Persons violating the requirements under this Act and the related secondary legislation in the cases other than those under Arts. 209 to 228 shall be punished with a fine ranging from BGN 200 to BGN 600 or from BGN 1,000 to BGN 3,000 in the case of repeated violation.(2) Where the violation under Paragraph 1 has been committed by a sole proprietor, a pecuniary sanction shall be imposed, ranging from BGN 200 to BGN 600 or from BGN 600 to BGN 2,000 in the case of repeated violation.(3) Where the violation under Paragraph 1 has been committed by a legal entity, a pecuniary sanction shall be imposed, ranging from BGN 500 to BGN 2,000 or from BGN 2,000 to BGN 5,000 in the case of repeated violation.Article 229a(New, SG No. 71/2006)The violations referred to in Articles 130, 131, 132, 132a, 132b, 133, 135 and 136 shall be established by memoranda compiled by officials from the Executive Agency of Transplantation appointed by the director thereof, and the penalty orders shall be issued by the Minister of Health or by an official authorized thereby.Article 229b(New, SG No. 71/2006)The violations referred to in Article 134 shall be established by memoranda compiled by the customs authorities or by officials from the Executive Agency of Transplantation appointed by the director thereof, and the penalty orders shall be issued by the Director of the Customs Agency or persons appointed thereby, respectively by the Minister of Health or by an official authorised thereby.Article 230(1) The violations under Arts. 225 and 227 shall be established with statements of findings by officials designated by the RHC director and penalty orders shall be issued by the RHC director.(2) A copy of the penalty order issued for violations under Paragraph 1 shall be send to the higher-standing medical expert body for assessment of the ability to work, to the regional council for control of the acts issued by the medical expert bodies for assessment of the temporary loss of the ability to work, to the parties concerned (assessed persons, insurers and the National Insurance Institute) and RHIF.Article 231The violations under Arts. 210 to 217 and 218, pares 1, 2, 3, 4 and 5 shall be established with statements of findings by state health inspectors and penalty orders shall be issued by the RIPHPC director.Article 232The violations under Arts. 209, 215 and 217 shall be established with statements of findings by officials designated by the RHC director or by state health inspectors and penalty orders shall be issued by the RHC or RIPHPC director respectively.Article 233The violations under Article 219 shall be established with statements of findings by state health inspectors or by officials designated by the NCRRP director and penalty orders shall be issued by the RIPHPC or NCRRP director respectively.Article 234The violations under Arts. 220 to 228 shall be established with statements of findings by officials designated by the Minister of Health or RHC director and penalty orders shall be issued by Minister of Health or a person designated by the Minister or by the RHC director.Article 235The violations under Article 229 shall be established with statements of findings by officials designated by the Minister of Health or RHC director or by state health inspectors and penalty orders shall be issued by Minister of Health, the RHC director or the RIPHPC director, depending on their competence.Article 236The drawing up of statements of findings and the issuance, appeal and enforcement of penalty orders shall be performed pursuant to the provisions of the Administrative Violations and Sanctions Act. ADDITIONAL PROVISION 1. Within the meaning of this Act:1. "Health documentation" is all forms of registration and storage of health information;2. "Dispensary registration" is a method of active search for and diagnostics, treatment and regular monitoring of patients with specific diseases.3. "Invasive methods" and diagnostic and therapeutic instrumental methods of penetration into the human body by means of severing of the skin and mucous membranes or through natural openings.4. "Medical legal procedures" are procedures applied with a view to protecting the security of the country, the internal order or the health of citizens without any medical indications.5. "Repeated violation" is a violation committed within a year of the effective date of the penalty order imposing a penalty for a violation of the same type.6. "Screening" is a targeted preventive test within the framework of a specific programme to detect the spread of a certain sign, symptom or disease among a group of individuals.7. "Physical constraint" is the application of mechanical means for immobilization, forced isolation in special closed premises and use of pharmaceuticals to reduce the physical activity of a patient, where the latter is a threat to himself/herself or the people around him/her.8. "Health promotion" is a process, in which social, economic, environmental and other conditions are created and adequate health education is provided in order to enable individuals to improve their own health through enhanced individual and group responsibility.9. "Facilities for public use" are:(a) water sources and mineral water sources, water supply facilities, installations and networks for supply of drinking water to households;(b) swimming pools, beaches, baths;(c) (amended, SG No. 94/2005) sheltering facilities - hotels, motels, villa sites and tourist holiday villages, accommodation facilities boarding houses, holiday houses, family hotels, separate rooms, villas, houses, bungalows, camping sites, as well as tourist mountain lodges, tourist training centres and tourist dormitories;(d) sports facilities - stadiums, sports halls, playgrounds, fitness centres and halls;(e) theatre halls, cinema halls, concerts halls, computer and Internet halls, game halls;(f) barbers' shops, hairdressers' and beauty salons, public baths, launderettes, saunas, public WC;(g) cemetery parks;(h) (supplemented, SG No. 81/2006, amended, SG No. 46/2007, effective 12.06.2007) enterprises for the production of and wholesale trade in medicinal products and medical devices, pharmacies, drugstores and opticians shops;(i) enterprises for the production and storage of and trade in cosmetic products;(j) railway stations, airports, ports, bus stations, underground stations;(k) petrol and gas stations;(l) public transport vehicles - trains, aircraft, ships, buses, trams, trolleybuses, underground trams, special vehicles - sanitary vehicles for patients, medicines and consumables, food transporting vehicles, hearses;(m) (supplemented, SG No. 94/2005) enterprises for production, storage of and trade in foods, public catering and entertainment outlets, as well as catering facilities, belonging to tourist lodges - tourist canteens, tourist buffets and tourist canteens with waiter services);(n) cr ches and kindergartens and social establishments for children and students, schools and higher schools, student hostels, schools in music, foreign languages and sports, and centres for work with children;(o) (amended, SG No. 59/2006) medical and healthcare establishments, health offices;(p) (repealed, SG No. 59/2006) ;(q) sites with sources of ionizing radiation;(r) (repealed, SG No. 82/2007) ;(s) agricultural pharmacies.10. "Products and goods of importance for human health" are:(a) foods, food additives, materials and objects designed for contact with food;(b) pharmaceuticals;(c) cosmetic products;(d) chemical substances, preparations and products;(e) second-hand clothes.11. "Activities of importance for human health" are:(a) urban planning and development;(b) the design, construction, reconstruction, extension and commissioning of housing units and facilities for public use;(c) cleaning of settlements in municipalities;(d) the implementation of the immunization calendar of the Republic of Bulgaria;(e) the prevention and restriction of internal hospital infections at medical establishments;(f) the implementation of disinfection, pest control of insects and rodents;(g) the preparation and observance of weekly school programmes;(h) the observance of physiological standards for the organised nutrition of groups of the population.(i) (new, SG No. 59/2006) the activity of the services on labour medicine;(j) (new, SG No. 59/2006) activity with hazardous waste.12. "Environmental factors" are:(a) drinking water and water for household purposes;(b) water for bathing;(c) mineral water for drinking or use for preventive, therapeutic or sanitary purposes;(d) noise and vibrations in housing and public buildings and urban areas;(e) ionizing radiation in housing, industrial and public buildings;(f) non-ionizing radiation in housing, industrial and public buildings;(g) chemical factors and biological agents in facilities for public use;(h) resort resources;(i) air.13. "Urban areas" are settlements and communities within building boundaries set out in a specific development plan.14. "Cosmetic product" is any substance or preparation for contact with the various external parts of the human body - skin (epidermis), hair, nails, lips and external genitals - or with the teeth and mucous membrane of the stoma exclusively or primarily for the purposes of their cleaning, perfuming, change of appearance and/or correction of odours and/or protection and maintenance in good shape.15. "Informed consent" is the consent given voluntarily after becoming aware of specific information.16. "reproductive health" is the health of people in connection with their ability to have progeny.17. "Alcoholic beverages" are spirits, wine and beer.18. "Spirits" are liquids for consumption with at least 15 volumetric percent of ethyl alcohol.19. "Direct advertising" is any form of a commercial message, communication or recommendation aimed at promoting alcoholic beverages and/or their consumption through the use of the beverages themselves or actions related to their consumption, production and distribution.20. "Indirect advertising" is any form of a commercial message, communication, recommendation or action using a brand or trademark of an alcoholic beverage, as well as the name of brand of a producer of alcoholic beverages on products and goods which are not alcoholic beverages.21. "Assisted reproduction" is the set of diagnostic and therapeutic methods intended to overcome sterility, which are applied at specialised centres.22. "Dietetics" is a curative method by means of which a prescribed nutrition regime, including the one only with fruit, vegetables or other products of organic origin, leads to favourable impact on individual health.23. "Curative hunger" is a curative method by means of which a prescribed regime of water, juices or other liquids intake leads to favourable impact on individual health.24. (New, SG No. 71/2006) "Ovum" is a female reproductive cell.25. (New, SG No. 71/2006) "Spermatozoids" are the male reproductive cells.26. (New, SG No. 71/2006) "Zygote" is a fertilized ovum in the stage of division.27. (New, SG No. 71/2006) "Extraction" is the extraction of ova by medical methods or the collection of spermatozoids from a donor, which is done with the objective of assisted reproduction or for other scientific and educational needs of medicine.28. (New, SG No. 71/2006) "Insertion" is the placement by medical methods of spermatozoids, an ovum or a zygote in the body of a woman.29. (New, SG No. 71/2006) "Expert opinion: is an activity related to tests for assessing the condition of an ovum, spermatozoids or a zygote, as well as for establishing the existence of pathogenic organisms, chemical or biological substances through which an illness, infection or intoxication may be transmitted.30. (New, SG No. 71/2006) "Processing" is an activity for preparation of an ovum, spermatozoids or a zygote for placement by the application of physical, chemical or biological methods, in the course of extraction or directly after that, including the packaging thereof, at which no change to their integrity takes place.31. (New, SG No. 71/2006) "Storage" is an activity related to the application of physical or chemical processes, or change to the environment, for the prevention or delay of the biological or physical damage of the extracted ova, spermatozoids or zygotes, including the packaging thereof.32. (New, SG No. 71/2006) "Donor" is every source of cells of human origin.33. (New, SG No. 71/2006) "Labelling" is an activity on designation of the packaging of organs, tissues and cells with the objective of identification thereof.TRANSITIONAL AND FINAL PROVISIONS 2. (1) The persons authorised to practise the medical profession under the repealed Public Health Act are legally competent medical specialists within the meaning of Article 184.(2) The Minister of Health shall issue an ordinance on the entry of the persons under Paragraph 2 in the register under Article 185. 2a. (New, SG No. 76/2005) (1) The persons who have acquired the educational qualification degree "Master" for the profession "Dentistry" have the rights of the persons who have acquired the educational qualification degree "Master" in "Dental Medicine".(2) The Health Minister issues a document with which it certifies the rights of the persons under Paragraph 1. 2b. (New, SG No. 59/2007) (1) The persons who have rights under з 32, Paragraphs (2) and (3) of the Transitional and Final Provisions of the Act to Amend and Supplement the Higher Education Act (Promulgated SG No. 41/2007) shall enjoy the rights of persons who have acquired a bachelors degree under Article 42, Paragraph (1), Item 1(b) of the Higher Education Act to practice the profession provided that they have practised it for at least three years in succession during the past 5 years in the case of nurses, or for at least two years in succession during the past 5 years in the case of midwives.(2) The persons who do not meet the experience requirements of Paragraph (1) shall enjoy the rights of persons who have acquired a bachelor's degree under Article 42, Paragraph (1), and Item 1(b) of the Higher Education Act to practice the profession after they gain the required experience. 3. The persons who were given a deadline for the degree of the long- term loss of their ability to work as of 31 December 2004 shall be considered to have an established extent of the long-term loss of their ability to work for life upon becoming 65 years of age. 4. (1) Within a month of the effective date of this Act, the Council of Ministers shall re-organise the existing district healthcare centres into regional healthcare centres and the existing inspectorates for hygiene and epidemiology into regional inspectorates for public health protection and control.(2) Within a month of the effective date of the ordinance under Paragraph 1, the Minister of Health shall issue Regulations on the Structure and Activities of Regional Healthcare Centres and Regulations on the Structure and Activities of Regional Inspectorates for Public Health Protection and Control.(3) The persons exercising the state sanitary control at the inspectorates for hygiene and epidemiology as of the effective date of this Act, shall have the rights laid down in 3 of the Transitional and Final Provisions of the Civil Servants Act. (4) Regional inspectorates for health protection and control may conclude contracts with the NHIF until 31 December 2005. 5. This Act shall repeal the Public Health Act (Promulgated SG No. 88/1973; Emended SG No. 92/1973; Amended SG Nos. 63/1976, 28/1983, 66/1985, 27/1986, 89/1988, 87 and 99/1989, 15/1991; Emended SG No. 24/1991; Amended SG Nos. 64/1993, 31/1994, 36/1995, 12, 87 and 124/1997, 21, 70, 71 and 93/1998, 30, 62, 67, 90 and 113/1999, 10 and 36/2000, 63/2002, 83 and 102/2003. 6. In Article 52, Paragraph 2 of the Carriage by Road Act (Promulgated SG No. 82/1999; Amended SG Nos. 11 and 45/2002 and 99/2003), the word "sanitary" shall be replaced by the words "state health control authorities". 7. The Safe Use of Nuclear Energy Act (Promulgated SG No. 63/2002; Amended SG No. 120/2002) shall be amended as follows:1. In Article 15: (a) Paragraph 3, Item 6 is repealed;(b) Paragraph 4, Item 8 is repealed;2. Article 18, Paragraph 1, Item 3 is amended as follows:"3. under Article 15, Paragraph 3, Items 2 to 5 - within a month";3. In Art, 29: (a) the current wording becomes Paragraph 1;(b) a new Paragraph 2 is inserted as follows:"(2) No fee shall be payable for the issuance of an authorization to import or export sources of ionizing radiation or parts thereof."4. In Article 31: (a) a new Paragraph 2 is inserted as follows:"(2) The initial licensing fee for the issuance of a license to use radioactive substances and other sources of ionizing radiation for medical purposes and the annual licensing fees shall be equal to 50 percent of the fees set out in Article 28, Paragraph 1."(b) the current Paragraph 2 becomes Paragraph 3;5. Article 57, Paragraph 1 is repealed;6. In Article 58: (a) Paragraph 1, Item 5 is repealed;(b) In Paragraph 3, the words "of three" shall be inserted after the words "for a term";7. Article 59 is amended as follows:"Article 59'. Authorizations to import radioactive sources of ionizing radiation shall be issued provided that:1. the person for whom said authorization is intended holds the necessary licence or permit authorizing the right to use and/or store such sources;2. their carriage by a person licensed or authorized to perform carriage under this Act is ensured."8. In Article 60: (a) in Paragraph 2, the words "and/or national consultants for radiotherapy, nuclear medicine and roentgenology" are deleted;(b) a new Paragraph 3 is inserted as follows:"(3) The official coordination under Paragraph 2 shall be carried out with the obligation that the sources of ionizing radiation may be used for medical purposes";9. Article 61 is repealed;10. In Article 62, the words "or the holder of an authorization" are inserted after the words "the licensee". 8. In Article 47, Paragraph 1 of the Higher Education Act (Promulgated SG No. 112/1995; Amended SG Nos. 28/1996, 56/1997; Emended SG No. 57/1997; Amended SG Nos. 58/1997, 60 and 113/1999, 54/2000, 22/2001, 40 and 53/2002, 48/2004) the words "the national centres for public health affairs" shall be inserted after the words "agrarian sciences". 9. The Water Act (Promulgated SG No. 67/1999; Amended SG Nos. 81/2000, 34, 41 and 108/2001, 47, 74 and 91/2002, 42, 69, 84 and 107/2003, 6/2004) shall be amended as follows:1. In Article 42, second sentence, the word "sanitary" is replaced by the words "for hygiene and epidemiology";2. In Article 47, Paragraph 2, the words "public health establishments" are replaced by the words "medical establishments for hospital aid";3. In Article 48, Paragraph 1, Item 7, the word "sanitary" is replaced by the words "for hygiene and epidemiology";4. In Article 151, Item 1(f), the words "public health establishments" are replaced by the words "medical establishments for hospital aid"; 10. Everywhere in the Civil Registration Act (Promulgated SG No. 67/1999; Amended SG Nos. 28 and 37/2001, 54/2002, 63/2003), the words "healthcare establishment", "The healthcare establishment" and "specialised healthcare establishments" shall be replaced by the words "medical establishment", "the medical establishment" and "medical establishments" respectively. 11. The Civil Aviation Act (Promulgated SG No. 94/1972; Amended SG Nos. 30/1990, 16/1997, 85/1998, 12/2000, 34 and 111/2001, 52/2004) shall be amended as follows:1. In Article 71, Paragrah 1(a), the words "healthcare establishment" are replaced by the words "medical establishment";2. In Article 85, Paragraph 2, the word "sanitary" is replaced by the word "healthcare". 12. In Article 40, Paragraph 1 of the Value Added Tax Act (Promulgated SG No. 153/1998; Emended SG No. 1/1999; Amended SG Nos. 44, 62, 64, 103 and 111/1999, 63, 78 and 102/2000, 109/2001, 28, 45 and 117/2002, 37, 42, 86 and 109/2003, 53/2004), the words "healthcare establishments under the Public Health Act" shall be replaced by the words "national centres for public health affairs" and the words "medical specialists under the Public Health Act" shall be replaced by the words "medical specialists under the Health Act". 13. In Article 123, Paragraph 1, Item 2(d) of the Road Traffic Act (Promulgated SG No. 20/1999; Amended SG Nos. 1/2000, 43, 45 and 76/2002, 16 and 22/2003, 6/2004), the words "healthcare establishment" are replaced by the words "medical establishment"; 14. In Article 83, Paragraph 4 of the Rail Transport Act (Promulgated SG No. 97/2000; Amended SG Nos. 47 and 96/2002), the word "sanitary" shall be replaced by the words "state health control authorities". 15. In Article 32, Item 8 of the Child Protection Act (Promulgated SG No. 48/2000; Amended SG Nos. 75 and 120/2002, 36 and 63/2003), the words "of diseases under Arts. 36 and 36a of the Public Health Act" shall be replaced by the words "of AIDS and diseases under Article 61, Paragraph 1 and Article 146, Paragraph 1, Items 1 and 2 of the Health Act". 16. In Article 37, Paragraph 2, Item 2 of the Replacement of Military Obligations by an Alternative Service Act (Promulgated SG No. 131/1998; Amended SG Nos. 69/1999, 49/2000, 50/2003), the words "state sanitary control authorities" shall be replaced by the words "state health control authorities". 17. The Health Insurance Act (Promulgated SG No. 70/1998; Amended SG Nos. 93 and 153/1998, 62, 65, 67, 69, 110 and 113/1999, 1, 31 and 64/2000, 41/2001, 1, 54, 74, 107, 112, 119 and 120/2002, 8, 50, 107 and 114/2003, 28, 38 and 49/2004) shall be amended as follows:1. In Article 49, the words "state sanitary control" are replaced by the words "state health control";2. In Article 58, the words "and healthcare establishments under the Public Health Act" shall be replaced by the words "national centres for public health affairs under the Health Act". 18. The Health and Safety at Work Act (Promulgated SG No. 124/1997; Amended SG Nos. 86/1999, 64 and 92/2000, 25 and 111/2001, 18 and 114/2003) shall be amended as follows:1. In Article 25, a new Paragraph 6 is inserted as follows:"(6) The activities of labour medicine services shall be subject to accreditation under the terms and conditions set out for accreditation of medical establishments under the Medical Treatment Facilities Act.";2. In Article 37, Paragraph 6, the word "sanitary" is replaced by the word "healthcare". 19. In Article 9 of the Implementation of Penal Sanctions Act (Promulgated SG No. 30/1969; Amended SG Nos. 34/1974, 84/1977, 36/1979, 28/1982, 27 and 89/1986, 26/1988, 21/1990, 109/1993, 50/1995, 12 and 13/1997, 73 and 153/1998, 49/2000, 62 and 120/2002, 61/2004), the words "sanitary requirements" shall be replaced by the words "healthcare requirements". 20. The Blood, Blood Donation and Blood Transfusion Act (Promulgated SG No. 102/2003) shall be amended as follows:1. A new Article 34a is inserted as follows:"Article 34a. (1) All medical establishments for hospital aid and dispensaries with beds may take blood for autohaemotransfusion, while observing the requirements under Article 12, Paragraph 2, where there exist no medical counter indications thereof and upon receipt of an informed consent in writing.(2) Where the person is under age, the informed consent in writing shall be obtained from the legitimate representative or guardian of the person under age."2. A new 13 is inserted in the Additional Provision as follows:"13. "Autohaemotransfusion" is the method, whereby the patient is transfused blood taken from the patient in advance." 21. Everywhere in the Human Medicinal Drugs and Pharmacies Act (Promulgated SG No. 36/1995; SG No. 61/1996 - Judgement No. 10/1996 of the Constitutional Court; Amended SG Nos. 38/1998, 30/1999, 10/2000; SG No. 37/2000 - Judgement No. 3/2000 of the Constitutional Court; Amended SG No. 59/2000; SG No. 78/2000 - Judgement No. 7/2000 of the Constitutional Court; Amended SG Nos. 41/2001, 107 and 120/2002; Emended SG No. 2/2003; Amended Nos. 56, 71 and 112/2003), the words "the Chief State Sanitary Inspector" shall be replaced by the words "the Chief State Health Inspector" and the words "inspectorates for hygiene and epidemiology" shall be replaced by the words "the regional inspectorate for public health protection and control" and "regional inspectorates for public health protection and control" respectively. 22. The Medical Treatment Facilities Act (Promulgated SG No. 62/1999; Amended SG Nos. 88 and 113/1999; Amended SG No. 114/1999; Amended SG Nos. 36, 65 and 108/2000; SG No. 51/2001 - Judgement No. 11/2001 of the Constitutional Court; Amended SG Nos. 28 and 62/2002, 83, 102 and 114/2003) shall be amended as follows:1. In Article 86: (a) a new Paragraph 2 is inserted as follows:"(2) Medical establishments other than those under Paragraph 1 shall be Subject to voluntary accreditation for assessment of their base capacity to train students, postgraduates and medical doctors for the purposes of the continuous medical education";(b) the current Paragraph 2 becomes Paragraph 3;2. Article 91 is amended as follows:"Article 91. Medical establishments for outpatient care may offer practical training of postgraduates in the specialties laid down in the an ordinance under Article 181 of the Health Act and training for the purposes of the continuous medical education."3. Article 115 is amended as follows:(a) in Paragraph 1, the words "from BGN 100 to BGN 300" are replaced by the words "from BGN 1,000 to BGN 3,000";(b) a new Paragraph 2 is inserted as follows:"(2) Whoever provides outpatient medical care in violation of Article 39 shall be punished with a fine from BGN 2,000 to BGN 5,000 and, in the case of repeated violation, with withdrawal of the right to practice the profession from three months to one year";(c) the current Paragraph 2 becomes Paragraph 3 and there the words "from BGN 200 to BGN 500" are replaced by the words "from BGN 2,000 to BGN 5,000";4. In Article 116: (a) in Paragraph 1, the words "from BGN 100 to BGN 500" are replaced by the words "from BGN 1,000 to BGN 5,000";(b) in Paragraph 2, the words "from BGN 750 to BGN 2,000" are replaced by the words "from BGN 8,000 to BGN 20,000";5. Everywhere in the Act, the words "district healthcare centre", "the district healthcare centre" and "district healthcare centres" are replaced by the words "regional healthcare centre", "the regional healthcare centre" and "regional healthcare centres" respectively, while the words "inspectorate for hygiene and epidemiology" shall be replaced by the words "the regional inspectorate for public health protection and control". 23. In Article 6, Paragraph 1 of the Local Taxes and Fees Act (Promulgated SG No. 117/1997; Amended SG Nos. 71, 83, 105 and 153/1998, 103/1999, 34 and 102/2000, 109/2001, 28, 45, 56 and 119/2002, 84 and 112/2003, 6, 18 and 36/2004), the words "kitchens for children" shall be inserted after the word "cr ches". 24. In Article 82 of the Ministry of Interior Act (Promulgated SG No. 122/1997; SG No. 29/1998 - Judgement No. 3/1998 of the Constitutional Court; Amended SG Nos. 70, 73 and 153/1998, 30 and 110/1999, 1 and 29/2000, 28/2001, 45 and 119/2002, 17, 26, 95, 103, 112 and 114/2003, 15/2004) shall be amended as follows:"(3) Sobering facilities shall be established by the Ministry of Interior in coordination with local governments." 25. The Maritime Space, Inland Waterways and Ports of the Republic of Bulgaria Act (Promulgated SG No. 12/2000; Amended SG Nos. 111/2001, 24/2004) shall be amended as follows:1. In Article 23, Paragraph 1, the word "sanitary" is replaced by the word "healthcare".2. In Article 38 and Article 66, Item 2, the words "sanitary provisions" are replaced by the words "healthcare requirements". 26. In Article 19, Paragraph 2, Item 1 of the Personal Income Tax Act (Promulgated SG No. 118/1997; SG No. 35/1998 - Judgement No. 6/1998 of the Constitutional Court; Amended SG Nos. 71 and 153/1998, 50, 103 and 111/1999, 105/2000, 110/2001, 40, 45, 61 and 118/2002, 42, 67, 95 and 112/2003, 36, 37 and 53/2004), the words "and health" shall be deleted. 27. In Article 95 of the Waste Management Act (Promulgated SG No. 86/2003), the words "the director of the inspectorate for hygiene and epidemiology" is replaced by the words "the director of the regional inspectorate for public health care and control" and the word "sanitary" is replaced by the word "healthcare". 28. In the Environmental Protection Act (Promulgated SG No. 91/2002; Emended SG No. 98/2002; Amended SG No. 86/2003), in Chapter Three after Article 59 a new Section VIII shall be inserted under the title Protection of the Environment Against Asbestos Pollution with Article 59a as follows:"Section VIII. Protection of the Environment Against Asbestos PollutionArticle 59a. (1) The Minister of the Environment and Water, in consultation with the Minister of Health, shall issue an ordinance to establish:1. the requirements and measures to prevent and reduce the asbestos pollution of air and water;2. the methods and procedures for defining asbestos in dust emissions;3. the methods and procedures for defining the concentration of undisclosed substances in asbestos-containing waste waters;4. the cases, where exceptions to the requirements and measures under Item 1 may be allowed.(2) The Minister of the Environment and Water may authorise the use of methods and procedures other than those under Paragraph 1 provided that they yield equivalent data and results." 29. In Article 200k of the Judicial System Act (Promulgated SG No. 59/1994; SG No. 78/1994 - Judgement No. 8/1994 of the Constitutional Court; SG No. 87/1994 - Judgement No. 9/1994 of the Constitutional Court; SG No. 93/1995 - Judgement No. 17/1995 of the Constitutional Court; Amended SG Nos. 104 and 110/1996, 58, 122 and 124/1997, 11 and 133/1998; SG No. 6/1999 - Judgement No. 1/1999 of the Constitutional Court; Amended SG Nos. 34, 38 and 84/2000, 25/2001, 74/2002; SG No. 110/2002 - Judgement No. 11/2002 of the Constitutional Court; No. 118/2002 - Judgement No. 13/2002 of the Constitutional Court; Amended SG Nos. 61 and 112/2003, 29 and 36/2004), a new Paragraph 3 shall be inserted as follows:"(3) The ordinance under Paragraph 2 shall establish also the terms and conditions for calculating and paying the costs of medical establishments in the preparation of forensic medical expert reports." 30. The Doctors and Dentists Professional Organisations Act (Promulgated SG No. 83/1998) shall be amended as follows:1. In Article 4, the words "Articles. 88 and 93 of the Public Health Act" are replaced by the words "Chapter Seven, Section II of the Health Act";2. In Article 5, Item 4, the words "together with the National Health Insurance Fund" are deleted;3. Article 9, Item 9 is repealed;4. In Article 32, Paragraph 3: (a) Item 2 is amended as follows:"2. a certificate of legal competence under the Health Act;";(b) Item 6 is amended as follows:"6. for foreign nationals - a long-term stay and work permit and a certificate of legal competence under the Health Act.";5. In Article 33, Paragraph 1, the words "Articles. 88 and 93 of the Public Health Act" are replaced by the words "Chapter Seven, Section II of the Health Act";6. A new 6a is inserted in the Transitional and Final Provisions:" 6a. The Bulgarian Doctors' Union and the Union of Dentists in Bulgaria shall draft and adopt Rules for Good Medical Practice and submit them for approval to the Minister of Health before 31 July 2005." 31. In Article 4. Paragraph 4 of the Gambling Act (Promulgated SG No. 51/1999; Amended SG Nos. 103/1999, 53/2000, 1, 102 and 110/2001, 75/2002, 31/2003), a comma and the word "healthcare" shall be inserted after the word "educational". 32. Everywhere in the Foodstuffs Act (Promulgated SG No. 90/1999; Amended SG No. 102/2003), the words "state sanitary control" shall be replaced by the words "state health control", the words "the Public Health Act" shall be replaced by the words "the Health Act" and the words "the Chief State Sanitary Inspector" shall be replaced by the words "the Chief State Health Inspector". 33. In Article 24, Paragraph 1, Item 4 of the Foreigners in the Republic of Bulgaria Act (Promulgated SG No. 153/1998; Amended SG Nos. 70/1999, 42 and 112/2001, 45 and 54/2002, 37 and 103/2003, 37/2004), the words "healthcare establishment" are replaced by the words "medical establishment"; 34. Article 30, Paragraph 2 of the Tobacco and Tobacco Products Act (Promulgated SG No. 101/1993; Amended SG Nos. 19/1994, 110/1996, 153/1998, 113/1999, 33 and 102/2000, 110/2001, 20/2003, 57/2004) shall be amended as follows:1. Item 1 is amended as follows:"1. within the territory of cr ches and kindergartens, schools, school boarding houses, medical and healthcare establishments;";2. Item 5 is amended as follows:"5. which do not meet healthcare requirements;";3. In Item 11, the words "at outlets licensed for duty-free trade" are deleted;4. A new Item 16 is inserted as follows:"16. at sports and public events organised for children and pupils." 35. In the Social Insurance Code (Promulgated SG No. 110/1999; SG No. 55/2000 - Judgement No. 5/2000 of the Constitutional Court; Amended SG Nos. 64/2000, 1, 35 and 41/2001, 1, 10, 45, 74, 112, 119 and 120/2002, 8, 42, 67, 95, 112 and 114/2003, 12, 38, 52 and 53/2004), Articles 14, 15, 16 and 17 shall be repealed. 36. The Protection against Discrimination Act (Promulgated SG No. 86/2003) shall be amended as follows:1. In Article 4, Paragraph 1, the words "human genome" are inserted after the words "ethnic origin";2. A new Item 14 is inserted in 1 of the Additional Provision:"14. "Human genome" is the sum total of all genes in a single (diploid) set of chromosomes of an individual." 37. The Personal Data Protection Act (Promulgated SG No. 1/2002) shall be amended as follows:1. In Article 2, Paragraph 1, the words "as well as the human genome data" shall be inserted at the end;2. A new Item 10 is inserted in 1 of the Additional Provision:"10. "Human genome" is the sum total of all genes in a single (diploid) set of chromosomes of an individual." 38. The Council of Ministers shall adopt and the Minister of Health shall issue the secondary legislation on the implementation of this Act within a year of its effective date. 39. Pending the entry into force of the secondary legislation under 38, the existing secondary legislation on the implementation of the repealed Public Health Act shall apply, insofar as they do not contravene this Act. 40. The implementation of this Act is hereby assigned to the Minister of Health. 41. This Act shall enter into force on 1 January 2005, except for Article 53, Paragraph 3 which shall enter into force on 1 January 2006.TRANSITIONAL AND FINAL RPOVISIONSto the Act to Amend and Supplementof the Health Act(SG, No. 85/2005, effective 25.10.2005, amended, SG No. 59/2007) 17. (1) The higher schools shall provide the training and the acquisition of "bachelor" educational and qualification degree in specialties from the "Health Care" vocational sector under the procedure of the Higher Education Act by the beginning of the 2006/2007 academic year.(2) The persons who have begun their training in the specialties of "medical nurse" and "midwife" from the "Health Care" vocational sector of the "specialist" educational and qualification degree and by September 1, 2006 have not completed their education, shall continue their education at a department or branch of a higher school in the next academic year in the respective specialty from the "Health Care" vocational sector for the acquisition of a "bachelor" education and qualification degree without previously sitting for admission exams.(3) (Repealed, SG no. 59/2007). (4) The persons who have begun their "specialist" educational and qualification training as "remedial gymnast", "medical lab expert", "x-ray lab expert", "sanitary inspector" and "masseur" of the "Public Health" vocational section, as "dental mechanic" of the "Dentistry" vocational section and as "assistant pharmacist" of the "Pharmacology" vocational section, shall continue their training in the same specialties for acquiring the same educational degree in the "Health Care" vocational section.TRANSITIONAL AND FINAL PROVISIONSof the Administrative Procedure Code (SG, No. 30/2006, effective 12.07.2006). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61. In the Health Act (Promulgated, SG No. 70/2004, supplemented, SG No. 46/2005, amended and supplemented, SG No. 76/2005, SG No. 85/2005, amended, No. 88/2005, amended and supplemented, SG No. 94/2005, amended, SG No. 103/2005, amended and supplemented, SG No. 18/2006) shall be amended as follows:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2. Everywhere in the Act the words "the Administrative Procedure Act" and "the Supreme Administrative Court Act" shall be replaced by "the Administrative Procedure Code".FINAL PROVISIONSto the Act to Amend and Supplement the Health Act(SG No. 59/2006, effective 1.01.2007). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21. This Act shall become effective on January 1, 2007, with the exception of 4, 5 and 14 which shall become effective on the day of their promulgation in the State Gazette.(*) Act to Amend the Commercial Register Act(SG No. 80/2006, effective 3.10.2006) 1. In 56 of the Transitional and Final Provisions the words "1 October 2006" shall be replaced by "1 July 2007"........................................................................TRANSITIONAL AND FINAL PROVISIONSto the Act to Amend and Supplement the Health Act(SG No. 81/2006) 5. (1) Handicraft enterprises providing services in the field of optics and optometry in operation by the date this Act becomes effective may continue to operate if they register under the procedure of Article 26b herein with the respective RHC within six months.(2) Within six months after this Act becomes effective the owners of handicraft enterprises or the heirs, or the legal successors, providing services in the field of optics and optometry, as well as the apprentices, journeymen and masters, shall submit an application to the respective crafts chamber for the expungement thereof from the respective registers referred to in Articles 21, 48, 54 and 63 of the Skilled Crafts Act. (3) In the cases referred to in Paragraph (2) the regional crafts chambers shall expunge the registration of the respective persons within 14 days following the filing of the application and shall issue a certificate for expungement of journeymen and masters on the basis of which they may enjoy the rights referred to in Article 26a. 6. (1) The persons with acquired professional qualification in Optometry shall enjoy the rights referred to in Article 26a (2) and (3) and may undertake measures for the correction of sight.(2) Persons with acquired professional qualification as "assistant pharmacist and dispensing optician" shall enjoy the rights referred to in Article 26a (2) and (3), and the persons with acquired professional qualification in Optics, Optomechanical and Optoelectronic Devices shall enjoy the rights referred to in Article 26a (3).Medicinal Products in Human Medicine Act TRANSITIONAL AND FINAL PROVISIONS(Promulgated, SG No. 31/13.04.2007)........................................................................ 19. (1) Within a period of three months of the entry of this Act into force:1. The Council of Ministers shall amend and supplement the Organic Rules of the Bulgarian Drugs Agency, bringing it in line with this Act;2. The Minister of Health shall issue the Ordinance under Art. 82, para 3.(2) Within a period of up to 6 months of the entry of this Act into force, the Council of Ministers shall adopt and the Minister of Health shall issue the other legislative instruments for the implementation of this Act. 20. After expiry of the first two years of the term of office of the members of Commissions under Art. 103, 107, 259 and 261, half of the members whose term of office will terminate shall be drawn by lot. 21. Within a period of up to one year of the entry of this Act into force, the Bulgarian Drugs Agency shall take the necessary action to have its laboratory for the control of medicinal products and active substances accredited by the European Directorate for the Quality of Medicines and Healthcare......................................................................... 36. Until entry into force of the instruments under 19, legal instruments issued for the implementation of the repealed Human Medicinal Drugs and Pharmacies Act shall apply, insofar as they do not stand in contradiction hereto. 37. This Act shall become effective on the day of its publication in the State Gazette with the exception of 22, which shall enter into force one year after the entry of this Act into force. For more information visit www.solicitorbulgaria.com id: 310 Fri, 01 Aug 2008 04:21:00 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-health-act-part-2 http://web.solicitorbulgaria.com/index.php/bulgarian-health-act-part-2 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/HEALTH_ACT1.JPG EUR http://web.solicitorbulgaria.com/index.php/bulgarian-health-act-part-2 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Chapter OneNATIONAL HEALTHCARE SYSTEMSection IGeneral ProvisionsArticle 1This Act shall regulate the social relations concerning the protection of the citizens' health.Article 2The protection of the citizens' health as a condition of full physical, mental and social wellbeing is a national priority and it shall be guaranteed by the government through the application of the following principles:1. equality in the use of health services;2. ensuring accessible and high-quality healthcare, giving priority to children, pregnant women and mothers of children aged up to one year;3. priority of health promotion and the integrated disease prevention;4. prevention and reduction of the health risk to citizens as a result of adverse effects of environmental factors;5. special health protection of children, pregnant women, mothers of children aged up to one year and people with physical and mental disabilities;6. participation of the government in the financing of activities aimed at protecting the… For more information visit http://www.solicitorbulgaria.com id: 311 Chapter OneNATIONAL HEALTHCARE SYSTEMSection IGeneral ProvisionsArticle 1This Act shall regulate the social relations concerning the protection of the citizens' health.Article 2The protection of the citizens' health as a condition of full physical, mental and social wellbeing is a national priority and it shall be guaranteed by the government through the application of the following principles:1. equality in the use of health services;2. ensuring accessible and high-quality healthcare, giving priority to children, pregnant women and mothers of children aged up to one year;3. priority of health promotion and the integrated disease prevention;4. prevention and reduction of the health risk to citizens as a result of adverse effects of environmental factors;5. special health protection of children, pregnant women, mothers of children aged up to one year and people with physical and mental disabilities;6. participation of the government in the financing of activities aimed at protecting the health of citizens.Article 3(1) The government health policy shall be guided and implemented by the Council of Ministers.(2) The Council of Ministers, at the proposal of the Minister of Health, shall approve the National Health Strategy to be adopted by the National Assembly.(3) The Council of Ministers, at the proposal of the Minister of Health, shall adopt national health programmes.(4) The National Health Strategy and the national health programmes shall build on an assessment of the health condition and health needs of the citizens, the health and demographic trends, as well as the resource capacities of the national healthcare system.(5) National health programmes shall be financed from the central government budget as separate expenditures from the budget of the Ministry of Health and may be supported by other financial sources.Article 4(Amended, SG No. 31/2007) The national healthcare system shall include the medical establishments under the Medical Treatment Facilities Act, the healthcare establishments under this Act and the Medicinal Products in Human Medicine Act, as well as the central, local and non-governmental bodies and institutions for organisation, management and control of health-protection and building activities.Section IIManaging Bodies of the National Healthcare SystemArticle 5(1) The Minister of Health shall guide the national healthcare system and exercise control over the activities related to:1. the protection of the citizens' health and the state health control;2. the provision of urgent medical aid, transfusion haematology, psychiatric aid at specialised facilities, medical and social care for children aged up to three years, transplantations and health information;3. the provision and sustainable development of health activities at medical and healthcare establishments;4. medical expert activities.(2) The Minister of Health shall submit to the National Assembly an annual report on the condition of the citizens' health and the implementation of the National Health Strategy within three months before the beginning of the fiscal year.(3) The Minister of Health shall approve the allocation of the central government budget transfers for the activities under this Act by programmes, except for the activities under Paragraph 1, Items 1 and 2.(4) (Amended, SG No. 88/2005) The Minister of Health shall provide methodological guidance and control of the medical activities of the medical establishments set up at the Council of Ministers, the Ministry of Defence, the Ministry of Interior, the Ministry of Justice and the Ministry of Transport.(5) The Minister of Health shall exercise also other powers prescribed by law or a secondary legislative act of the Council of Ministers.Article 6(1) The Supreme Medical Council shall be set up at the Minister of Health.(2) (Supplemented, SG No. 46/2005, SG No. 75/2006) The Supreme Medical Council shall include five representatives designated by the Minister of Health, five representatives of the Bulgarian Doctors' Union, three representatives of the Union of Dentists in Bulgaria, three representatives of the Union of Pharmacists in Bulgaria, three representatives of the National Health Insurance Fund (NHIF), one representative of the Bulgarian Association of Health Care Professionals and a representative of the National Association of Municipalities, each higher medical school and the Bulgarian Red Cross each. The Minister of Health shall serve as the Chairperson of the Council in a non-voting capacity.(3) The Supreme Medical Council shall be an advisory body, discussing and giving opinions on:1. the priorities of the National Health Strategy;2. ethical issues of medicine and biomedicine;3. bills and drafts of secondary legislative acts of the Council of Ministers in the field of healthcare and within the competence of the Minister of Health;4. the report of the Minister of Health under Article 5, Paragraph 2;5. the draft of the annual health budget;6. the research priorities in the field of medicine and dental medicine;7. the annual admission of students and postgraduates in the professional area of health and the criteria for selecting facilities to conduct undergraduate and postgraduate training under Arts. 91 and 92 of the Medical Treatment Facilities Act; 8. the types of specialties in the professional area of health.(4) The organisation and activities of the Supreme Medical Council shall be regulated in Rules drafted by the Supreme Medical Council and approved by the Minister of Health.Article 7(1) The government health policy within the territory of administrative regions shall be implemented and organised by the Regional Healthcare Centre (RHC) and the Regional Inspectorate for Public Health Protection and Control (RIPHPC).(2) For the purposes of organising healthcare within municipalities, the respective municipal council may set up a healthcare service within the framework of the municipal administration. The service shall operate under the methodological guidance of the regional healthcare centre.Article 8(1) Regional healthcare centres shall be budget-supported legal entities - secondary spending units at the Minister of Health seated in the community which is the administrative centre of the region.(2) Regional healthcare centres shall be opened, re-organised and closed by the Council of Ministers.Article 9(1) A regional healthcare centre shall be managed and represented by a director appointed on the basis of a competition announced by the Minister of Health.(2) A RHC director may be a person with three years length of service in medicine or dental medicine.(3) The RHC director shall be subject to evaluation by a commission appointed by the Minister of Health once in three years. The evaluation procedure shall be laid down in the regulations under Article 10, Paragraph 3.(4) The Minister of Health may terminate the employment contract of a RHC director who has received a negative evaluation with a notice pursuant to Article 328, Paragraph 1, Item 5 of the Labour Code. Article 10(1) Regional healthcare centres shall carry out activities related to:1. the control of the registration and healthcare activities provided by the medical establishments and health offices within the territory of the respective region;2. the control over the application of the medical standards approved pursuant to Article 6, Paragraph 1 of the Medical Treatment Facilities Act and over the quality assurance arrangements with regard to medical activities at healthcare and medical establishments;3. the introduction of information technologies in the field of healthcare;4. the collection, registration, processing, storage, analysis and provision of health information for the needs of the national healthcare system;5. the planning, organisation, guidance and supervision of medical expert activities within the territory of the respective region;6. the planning and organisation of healthcare activities in the event of natural calamities, accidents or disasters within the territory of the respective region;7. the verification of complaints and reports of citizens concerning medical services;8. the coordination of the activities for implementation of national and regional health programmes.(2) Regional healthcare centres, together with the professional organisations, shall examine the needs for physicians, doctors of dental medicine, pharmacists and other medical and non medical specialists with higher education in the region and propose to the Minister of Health the number of postgraduates in basic and profile specialties.(3) The RHC structure and activities shall be set out in regulations issued by the Minister of Health.Section IIIState Health ControlArticle 11With a view to protecting the health of citizens within the territory of the Republic of Bulgaria, state health control shall be exercised to check the observance and implementation of the statutory health requirements with regard to facilities for public use, products, goods and activities of importance for human health and the environmental factors.Article 12(1) The state health control authorities are the Chief State Health Inspector of the Republic of Bulgaria, Regional inspectorates for public health protection and control (RIPHPC) and the National Centre for Radiobiology and Radiation Protection (NCRRP).(2) (Amended, SG No. 59/2006) State health control shall be performed by state health inspectors at the Ministry of Health, RIPHPC and NCRRP. The state health inspectors at the Ministry of Health and RIPHPC shall be civil servants.(3) State health inspectors may not engage in any form of activity which is subject to state health control.Article 13(1) The Chief State Health Inspector shall be appointed by the Prime Minister at the proposal of the Minister of Health.(2) The powers of the Chief State Health Inspector in his/her absence from the country or during his/her legitimate leave shall be exercised by a deputy appointed in each individual case by the Minister of Health with an order in writing from among the employees in the administration of the Ministry of Health.(3) The activities of the Chief State Health Inspector shall be supported by the administration of the Ministry of Health.Article 14(1) The Chief State Health Inspector shall organise and guide:1. the state health control;2. the activities related to health promotion and the integrated disease prevention;3. the infectious diseases control;4. the measures to protect the population against the effect of ionising radiation;5. preventive and anti-epidemic activities in the event of natural calamities, accidents and disasters.(2) The Chief State Health Inspector shall provide methodological guidance and supervision of the institutional health control units at the Ministry of Defence and the Ministry of Interior.Article 15(1) The government policy for public health protection and the state health control within the territory of administrative regions shall be implemented by RIPHPC.(2) The state health control for the observance of the requirements to protect people against the effect of ionizing radiation shall be implemented by RIPHPC designated by the Minster of Health and by NCRRP.(3) Regional inspectorates for public health protection and control shall be budget-supported legal entities - secondary spending units at the Minister of Health seated in the community which is the administrative centre of the region.(4) Regional inspectorates for public health protection and control shall be opened, re-organised and closed by the Council of Ministers.Article 16(1) A regional inspectorate for public health protection and control shall be managed and represented by a director appointed on the basis of a competition announced by the Minister of Health.(2) A RIPHPC director may be a person holding a master's degree in medicine and recognised specialty and five years length of service in the respective specialty.(3) The RIPHPC director shall be subject to evaluation by a commission appointed by the Minister of Health once in three years. The evaluation procedure shall be laid down in the regulations under Article 17, Paragraph 2.(4) The Minister of Health may terminate the employment contract of a RIPHPC director who has received a negative evaluation with a notice pursuant to Article 328, Paragraph 1, Item 5 of the Labour Code. Article 17(1) Regional inspectorates for public health protection and control shall carry out activities related to:1. the control of the observance and implementation of the statutory health requirements with regard to facilities for public use, products, goods and activities of importance for human health and the environmental factors.2. the infectious diseases control;3. the control of the health condition of people in contact with contagious patients, infection carriers and those suspected of being contagious patients, the persons under Article 34, Paragraph 3, as well as other people for epidemic indications;4. the health promotion and the integrated disease prevention;5. the laboratory control of the environmental factors and the analysis and assessment of their impact on the health of citizens;6. the monitoring, assessment and control of noise in urban territories and public buildings, of pollutants in foods, and of potable water;7. the methodological, advisory and expert assistance in the field of the protection of public health;8. the development and implementation of regional programmes and projects in the field of the protection of public health;9. the implementation of national programmes and projects in the field of the protection of public health;10. the postgraduate training in the field of the protection of public health.(2) The RIPHPC structure and activities shall be set out in regulations issued by the Minister of Health.Article 18(1) The revenues of RIPHPC shall be generated from:1. central government budget transfers;2. other budget revenues from:(a) fees from the documents issued within the framework of the state health control;(b) paid services requested by individuals or legal entities defined in an ordinance of the Minister of Health.(2) The resources under Paragraph 1, Item 2(a) shall be credited to the budget of the respective RIPHPC and allocated for operational support.(3) The resources under Paragraph 1, Item 2(b) shall be credited to the Ministry of Health, included in the RIPHPC budgets, and allocated as follows:1. at least 60 percent - for financing of regional health programmes and acquisition of assets for the respective RIPHPC;2. up to 40 percent - for material incentives to the staff of the respective RIPHPC.Article 19(1) The state health control shall be performed systematically without any prior notice and especially on the occasion of reports from citizens, central and local government bodies and organisations, or where other information on the occurrence of accidents is available.(2) In the course of the implementation of the state health control, state health inspectors shall be entitled to:1. free access to the facilities, products, goods, activities and persons subject to control;2. demand information and documents and receive copies thereof on paper and/or electronic carrier;3. take samples for laboratory analysis in the quantities needed for the testing;4. commission examinations and tests for assess the health condition of the persons under Article 34, Paragraph 3;5. prescribe the removal from work of persons who are ill or carriers of an infection and constitute a threat to the health of the people around them;6. prescribe mandatory hygienic and anti-epidemic measures, specifying time limits for their implementation;7. place certification signs in the cases under Arts. 38 and 39;8. draw up statements of findings in the cases of administrative violations;9. propose coercive administrative measures as provided by law.(3) The coercive administrative measures shall be imposed at an order of the RIPHPC director.(4) The terms and conditions for exercising state health control shall be set out in an ordinance issued by the Minister of Health.Article 20(1) The proceeds from fines and penalties imposed with penalty orders by the state health control authorities shall be transferred to the budget of the Ministry of Health and used for financing of national programmes in the field of the protection of public health.(2) The voluntary payment of debt as a result of enforceable penalty orders issued by the state health control authorities may be effected also at the Ministry of Health and the respective RIPHPC.(3) The Minister of Health shall administer the proceeds from fines and penalties at penalty orders issued under this Act under terms and conditions set out in an ordinance issued by the Minister of Health and the Minister of Finance.Section IVHealthcare EstablishmentsArticle 21(1) Healthcare establishments shall be structures of the national healthcare system, where medical and non-medical specialists exercise activities for the protection and promotion of the health of citizens.(2) Within the meaning of this Act, healthcare establishments shall be:1. the national centres for public health affairs;2. the National Expert Medical Commission (NEMC);3. health offices under Article 26.4. (new, SG No. 81/2006) the opticians' shops referred to in Article 26a.(3) (Amended, SG No. 31/2007) Pharmacies shall be healthcare establishments with status and activities set out in the Medicinal Products in Human Medicine Act. Article 22(1) National centres for public health affairs shall be budget supported legal entities - secondary spending units at the Minister of Health, which shall be opened, re-organised and closed by the Council of Ministers at the proposal of the Minister of Health.(2) National centres for public health affairs shall be managed and represented by a director appointed on the basis of a competition announced by the Minister of Health.(3) The directors of the national centres for public health affairs shall be subject to evaluation by a commission appointed by the Minister of Health once in three years. The evaluation procedure shall be laid down in the regulations for the structure and activity of the respective national centre for public health affairs.(4) The Minister of Health may terminate the employment contract of a director of a national centre for public health affairs who has received a negative evaluation with a notice pursuant to Article 328, Paragraph 1, Item 5 of the Labour Code. Article 23(1) National centres for public health affairs shall carry out activities related to:1. the preparation of studies, assessments, expert opinions and reports, analyses and forecasts in the field of the protection of public health;2. the prevention, reduction and liquidation of epidemics of infectious diseases;3. the organisation, management and coordination of medical aid in the event of natural calamities, accidents and disasters within the territory of the Republic of Bulgaria;4. the assessment of the risk and adverse effect of environmental factors on the individual, family and public health;5. laboratory tests and expert reports;6. protection of people against the effects of ionizing radiation;7. the health promotion and the integrated disease prevention;8. the expert and advisory support to RIPHPC;9. the expert, advisory and methodological support to medical and healthcare establishments;10. the planning and conduct of basic and applied research;11. the state health control in the cases provided by law;12. educational activities.(2) The structure and activities of individual national centres for public health affairs shall be set out in regulations issued by the Minister of Health.Article 24(1) The revenues of national centres for public health affairs shall be generated from:1. central government budget transfers;2. gifts and inheritance;3. other budget revenues from:(a) paid services requested by individuals or legal entities defined in an ordinance of the Minister of Health;(b) research and expert activities;(c) postgraduate tuition fees.(2) The resources under Paragraph 1, Item 3 shall be credited to the Ministry of Health, included in the budgets of the national centres, and allocated as follows:1. at least 60 percent - for financing of regional health programmes and acquisition of assets for the respective national centre;2. up to 40 percent - for material incentives to the staff of the respective national centre.Article 25(1) The National Expert Medical Commission shall be a budget supported legal person - a secondary spending unit at the Minister of Health seated in Sofia.(2) The National Expert Medical Commission shall be managed and represented by a director appointed on the basis of a competition announced by the Minister of Health.(3) The National Expert Medical Commission shall perform expert, controlling, methodological and advisory activities in the expert assessment of the ability to work.Article 26(1) Health and dental medicine offices may be established at:1. kindergartens and schools;2. (repealed, SG No. 95/2007); 3. (supplemented, SG No. 95/2007) specialised social welfare institutions - homes for children, homes for aged people with disabilities, social welfare vocational schools, homes for aged people, orphanages and homes for temporary accommodation.(2) (Amended, SG No. 103/2005, SG No. 95/2007) The requirements to the structure and activities of health and dental medicine offices, the procedure for opening those, and the documentation which they shall keep, shall be set out in regulations issued by the Minister of Health in consultation with the Minister of Finance, the Minister of Labour and Social Policy and the chairman of the State Agency for Youth and Sport.(3) (Amended, SG No. 95/2007) The State Budget of the Republic of Bulgaria Act shall specify, on an annual basis, the financing by the central and local governments of the health activities for children and pupils, of the equipment and consumables for, and the performance of the activities for the respective year at the health and dental medicine offices opened under this act.(4) (New, SG No. 95/2007) The regulations under Paragraph (2) shall also specify the minimum number of children or pupils needed for the health and dental medicine offices under Paragraph (1) to be opened, as well as the requirements for the equipment and consumables therein.Article 26a(New, SG No. 81/2006)(1) Opticians' shops shall carry out activities on:1. health consultations on sight problems;2. undertaking measures for sight correction prescribed by a doctor;3. manufacture and sale of optical glasses and ophthalmic optics materials.(2) Opticians' shops shall be managed by persons who have acquired higher education with the educational qualification degree of "Master" in the occupational division of "Medicine" with acknowledged specialty in ophthalmic diseases, or by persons with the professional qualification in the occupations of "optical technician" or "optometrist (ophthalmic optician)" and with at least one year experience in this specialty.(3) The manufacture and sale of optical glasses and ophthalmic optics materials shall be carried out by persons with professional qualification in the occupations of "optical technician" or "optometrist (ophthalmic optician)".Article 26b(New, SG No. 81/2006)(1) Persons who open opticians' shops shall register with the respective RHC, submitting an application and presenting the following documents:1. data about the applicant and about the persons who shall manage the opticians' shop - name, passport data, standard public registry number, address and/or data about the registration in court, registered office and address of the place of management;2. documents attesting to the respective education and specialty or professional qualification of the persons who shall manage, respectively work at the opticians' shop;3. hygienic conclusion of the site prepared by the RIPHPC authorities.(2) In the case of deficiencies of the submitted documents referred to in Paragraph (1) the director of the RHC shall notify within 14 days in writing the relevant person of the deficiencies allowed and shall set a time limit for their eradication thereof.(3) Within 14 days following the submission of the documents referred to in Paragraph (1) or from eradication of the deficiencies referred to in Paragraph (2) the director of the RHC shall issue a certificate for the registration of the optician's shop.(4) The persons referred to in Paragraph (1) shall be obligated to notify RHC within seven days from the onset of the change of circumstances referred to in Paragraph (1).(5) The Regional Healthcare Centre shall keep a register of opticians' shops under the procedure provided by an ordinance of the Minister of Health.(6) The registration of an optician's shop shall be expunged:1. at the request of the person who has registered the optician's shop;2. upon the death of the natural person or at the termination of the activity of the legal person that has registered the optician's shop;3. in the case of activity in violation of the registration made.(7) The requirements about the organisation and activity of opticians' shops shall be determined by an ordinance of the Minister of Health.Section VHealth Information and DocumentationArticle 27(1) Health information shall include the personal data related to the health condition, the physical and mental development of individuals, as well as any other information contained in medical prescriptions, instructions, protocols, certificates and other medical documentation.(2) Medical and healthcare establishments, RHC, RIPHPC, medical doctors, doctors of dental medicine, pharmacists and other medical specialists, as well as non-medical specialists with higher non-medical education working in the national healthcare system shall collect, process, use and store health information.(3) The form and content and the terms and procedures for the processing, use and storage of medical documentation and for the exchange of medical statistical information shall be set out in regulationsArticle 28(1) Health information may be disclosed to this parties in any of the following cases:1. the treatment of the person continues at another medical establishment;2. there exists a threat to the health or life of other persons;3. it is necessary for identifying a human corpse of for establishing the reasons for the death;4. it is necessary for the needs of the state health control to prevent epidemics or the spread of infectious diseases;5. it is necessary for the needs of medical expert activities and the social security scheme;6. it is necessary for the needs of medical statistics or medical research, having deleted the data identifying the patient;7. it is necessary for the needs of the Ministry of Health, the National Health Information Centre, NHIF, RHC, RIPHPC, and the National Statistical Institute.(2) In the cases under Paragraph 1, Item 2, the information shall be disclosed upon notification of the person concerned.(3) The persons under Article 27, Paragraph 2 shall ensure the protection of the health information they keep against unauthorised access.Chapter TwoHEALTH PROTECTION ACTIVITIESSection IGeneral ProvisionsArticle 29Government bodies and institutions shall plan, develop and implement a policy aimed at protecting the citizens' health by ensuring a healthy environment, training for healthy life style and health prevention.Article 30(1) Medical establishments shall carry out preventive checks and dispensary registration for the purposes of protecting the citizens' health and ability to work.(2) Persons of higher health risk or diseases shall be subject t to dispensary registration.(3) The terms and conditions and the financing of preventive checks and the dispensary registration, as well as the list of diseases for which dispensary registration is required shall be set out in regulations issued by the Minister of Health.Section IIEnsuring a Healthy EnvironmentArticle 31(1) The central and local governments, legal entities and individuals shall carry out their activities by ensuring the protection of the environment against biological, chemical, physical and social factors which are harmful to the human health.(2) In the course of their activities, legal entities and individuals shall observe the existing health requirements.Article 32(1) The Minister of Health shall lead the national system for analysis, assessment and control of noise in urban areas and public buildings and of pollutants in foods and drinking water.(2) The Minister of Health shall analyze and assess the environment factors at the national level in the annual report under Article 5, Paragraph 2 and propose measures to limit their harmful impact on the health of citizens.(3) Regional inspectorates for public health protection and control shall monitor, analyse and assess the factors of the environment within the territory of the region and propose measures to limit their harmful impact on the health of citizens.(4) The government bodies performing analysis, assessment and control of the parameters of the environment shall provide the Ministry of Health with the data needed for the health risk assessment.Article 33(1) The Council of Ministers shall identify the areas with higher health risk in the country at the proposal of the Minister of Health and the Minister of the Environment and Water once in three years.(2) The Council of Ministers shall adopt programmes to organise control tests and examinations and activities related to the protection, strengthening and recovery of the health of citizens living in the areas with higher health risk.Article 34(1) The health requirements to the design and construction of facilities for public use shall be set out in regulations issued by the Minister of Health and the Minister of Regional Development and Public Works.(2) The health requirements to facilities for public use, products, goods and activities of importance to human health, as well as the maximum allowed levels of factors of the environment shall be set out in regulations issued by the Minister of Health, unless another law provides otherwise.(3) The health requirements to persons working at childcare establishments, specialised institutions for children and aged people, water supply facilities, enterprises producing or trading in foods, barbers' shops, hairdressers' shops and beauty salons shall be set out in regulations issued by the Minister of Health.Article 35The state health control authorities shall take part in the membership of the expert boards for physical planning and development, coordinate development schemes and plans, if necessary, participate in the assessment of the compliance of investment projects, where the latter is subject to approval by an expert board of the approving administration or requested by individuals or legal entities, and give opinion on the preparedness of construction works to be set into operation under the Spatial Development Act. Article 36(1) (Amended, SG No. 34/2006) Any person opening a facility for public use shall advise the respective RIPHPC at the location of the facility thereof within seven days of the start of its operation, specifying the address of the facility, the types of activities performed there, as well as the name and permanent address of the person performing the activities or, in case that person is a trader - shall submit a relevant attestation to entry into the Register of Commercial Corporations.(2) Within three months of the notice, the territorial bodies of the state health control shall check the observance of health requirement in the facility.(3) Regional inspectorates for public health protection and control shall establish and maintain a public register of facilities for public use under terms and conditions set out in an ordinance issued by the Minister of Health.(4) (Supplemented, SG No. 81/2006) Paragraph (1) shall not apply to medical establishments, enterprises for production of and wholesale trade in medicines, pharmacies, drugstores and opticians' shops, enterprises for production, storage and trade in foods and public catering outlets.Article 37(1) At the request of the parties concerned, the Chief State Health Inspector shall issue a health certificate for the export of products and goods of importance to human health to certify the observance of the statutory requirements to the manufacturing of the products and goods of importance to human health.(2) The Minister of Health shall issue regulations to set out the terms and conditions for the issuance of health certificates for the export of products and goods of importance to human health.(3) Where any doubts exist as to the safety of products and goods of importance to human health, the customs authorities shall be entitled not to let them into the territory of the Republic of Bulgaria. Such products and goods shall be imported upon receipt of a RIPHPC opinion on their safety.Article 38(1) (Amended, SG No. 59/2006) Where health requirements are not observed in facilities for public use, as regards products, goods or in the course of activities of importance to human health and of the maximum permissible levels of environmental factors, state health inspectors shall issue mandatory instructions and shall specify the deadline for the elimination of the violations.(2) In the event of failure to fulfil the mandatory instructions within the prescribed time limits, the RIPHPC director or the NCRRP director respectively shall issue an order to stop the operation of the facility or parts thereof or to discontinue the respective activity pending the elimination of the violations.(3) Where an immediate threat exists to human life or health or for the spread of infectious diseases or for the occurrence of poisoning, state health inspectors shall stop the operation of the facility or parts thereof or to discontinue the respective activity immediately, specify the remedies and advise the RIPHPC director forthwith.(4) Within 24 hours of the stop or discontinuation, the RIPHPC director or the NCRRP director respectively shall issue an order to confirm or revoke the instruction to stop the operation of the facility or to discontinue the respective activity.(5) Upon the fulfilment of the mandatory instructions and measures, the body which has issued the order shall allow the recovery of the activity or the operation of the facility by issuing an order.Article 39(1) Where any doubts exist as to the safety of products and goods of importance to human health, the State Health Inspector shall:1. issue instructions in writing to stop the sales of the goods of importance to human health and deliver them to the party concerned or its representative with a signed receipt;2. take samples for laboratory tests and for expert opinion and report in the presence of the party concerned or its representative and provide them to the RIPHPC laboratory.(2) The State Health Inspector shall advise the party concerned of the results of the laboratory tests and the expert opinion and report within three days of their reception.(3) Where the results of the laboratory tests and the expert opinion and report are contested, repeated tests shall be made at the request of the party concerned given in writing to the Chief State Health Inspector through the RIPHPC Director within three days of reception of the results from the initial tests.(4) In the cases under Paragraph 3, the repeated tests shall be conducted by another RIPHPC designated by the Chief State Health Inspector.(5) The results of the tests conducted under Paragraph 4 shall not be subject to contesting.Article 40Where the products and goods are obviously unfit for use and the party concerned submits no objections in writing to this conclusion to the state health inspector, no laboratory tests and expert opinions and reports shall be made.Article 41(1) Where the results of the laboratory tests and the expert opinion and report confirm the compliance of the products and goods with the health requirements, the state health inspector shall check them for any changes occurred during the stop and revoke in writing the instruction to stop the sale within three days of receipt of the results.(2) Where the results of the laboratory tests and the expert opinion and report show that the products and goods do not comply with the health requirements, the state health inspector shall propose the issuance of an order to process or to use in a processed or unprocessed form for other purposes or to destroy the products and goods of importance to human health.Article 42(1) The order to process or to use in a processed or unprocessed form for other purposes or to destroy the products and goods of importance to human health shall be issued by the RIPHPC or NCRRP director for products and goods worth up to BGN 100,000 and by the Chief State Health Inspector for products and goods worth more than BGN 100,000.(2) Within seven days of the effective date of the order under Paragraph 1, the products and goods shall be delivered for processing, use for other purposes or destruction always in the presence of a state health inspector for which a protocol shall be drawn up. The protocol shall be attached to the order under Paragraph 1.Article 43(1) The terms and conditions for taking samples and conducting the laboratory tests, analyses and expert opinions and reports needed for the purposes of the state health control shall be set out in regulations issued by the Minister of Health.(2) The costs of the laboratory tests for the needs of the state health control shall be borne by RIPHPC.Article 44Individuals and legal entities shall fulfil the mandatory instructions of state health inspectors and the order of the state health control authorities.Article 45(1) The enforceable administrative measures under this Section shall be subject to appeal pursuant to the Administrative Procedure Code. The enforceable administrative measures shall be executed immediately.(2) The enforceable administrative measures under this Section shall be subject to administrative appeal as follows:1. those issued by a state health inspector - before the RIPHPC director and the NCRRP director;2. those issued by the RIPHPC director and the NCRRP director - before the Chief State Health Inspector;3. those issued by the Chief State Health Inspector - before the Minister of Health.Article 46Fees established by the Council of Ministers shall be paid for the issuance of documents by the state health control authorities.Article 47The facts and circumstances which become known to the officials exercising state health control in the discharge of their duties shall constitute an official secret, except for the cases of an existing threat to the health and life of citizens.Article 48The bodies of the Ministry of Interior, the other central and local government authorities and the heads of institutions and organisations shall provide the necessary support and assistance to state health inspectors in the exercise of their powers.Section IIIHealth Requirements to Cosmetic ProductsArticle 49(1) Cosmetic products offered on the market shall not cause any damage to human health, when applied in accordance with their purpose, the instructions for use and destruction and all other instructions provided by the manufacturer or the importer.(2) The requirements to the production, packaging, labelling, promotion, launch and sale of cosmetic products on the market shall be set out in regulations issued by the Minister of Health in consultation with the Minister of the Economy.Article 50Manufacturers and importers shall be entitled, with the permission of the Chief State Health Inspector, not to specify one or more ingredients of a cosmetic product in the labelling for a five-year period with a view to protecting the commercial secret.Article 51(1) In order to receive permission, the parties concerned shall submit an application to the Chief State Health Inspector of the Republic of Bulgaria, enclosing evidence of the safety of the ingredient as prescribed in the regulations under Article 49, Paragraph 2.(2) The Chief State Health Inspector shall issue permission or refusal with reasons thereof within two months of the submission of the documents under Paragraph 1. The refusal shall be subject to appeal pursuant to the Administrative Procedure Code. (3) Where important reasons exist, the parties concerned may request renewal of the permission for up to three years in accordance with the provisions of Paragraphs (1) and (2).Article 52(1) The manufacturer or importer of the cosmetic product shall advise the Chief State Health Inspector in due course of any change in the circumstances under which the permission under Article 50 was issued.(2) Where the name of the cosmetic product with an undeclared ingredient is changed, the manufacturer or importer of the cosmetic product shall advise the Chief State Health Inspector not later than 15 days prior to the launch of the product on the market.(3) In the case of non-compliance with the safety requirements for the health of consumers or research or empirical reports on a health risk related to the undeclared ingredient, the Chief State Health Inspector shall evoke the permission.Section IVActivities to Impact Health Risk FactorsArticle 53(1) The Minister of Health and other competent government authorities, together with non-governmental organisations, shall create conditions to restrict smoking and the abuse of alcohol and to prevent the use of narcotic drugs by:1. carrying out promotional and preventive activities;2. ensuring access to medical assistance and social protection of the persons affected.(2) The activities under Paragraph 1 shall be carried out through national programmes to restrict smoking and the abuse of alcohol and to prevent the use of narcotic drugs.(3) One percent of the revenues to the central government budget from excise taxes on tobacco products and spirits shall be used to finance national programmes to restrict smoking and the abuse of alcohol and to prevent the use of narcotic drugs.(4) Local governments shall adopt and implement regional programmes to restrict smoking and the abuse of alcohol and to prevent the use of narcotic drugs.Article 54There shall be prohibited the sale of alcoholic beverages:1. to persons below the age of 18;2. to persons in a drunken state;3. within the territory of kindergartens, schools, pupil boarding houses and medical establishments;4. at sports events;5. at public events organised for children and pupils.Article 55(1) The direct advertising of spirits shall be prohibited.(2) The indirect advertising of spirits and the advertising of wine and beer may not:1. be targeted to persons below the age of 18 or broadcast in programmes or published in the press for them;2. use persons below the age of 18 as participants;3. relate the use of alcoholic beverages to sports and physical achievements or driving;4. contain untrue assertions as to health benefits and social or sexual wellbeing or present abstinence or moderation in negative light.(3) The indirect advertising of spirits may not be broadcast on the radio and television earlier than 10 o'clock p. m.Article 56(1) Smoking in indoor public places, including the public transport and indoor work premises, shall be prohibited.(2) The Council of Ministers shall issue regulations on the terms and conditions to allow smoking, by way of exception, in special areas at the places under Paragraph 1.Section VControl of Infectious DiseasesArticle 57(1) Border health control shall be exercised, if needed, to protect the country against the spread of particularly dangerous infectious diseases.(2) The terms and conditions for the border health control shall be set out in regulations issued by the Council of Ministers.Article 58(1) Mandatory immunization shall be performed to protect citizens against infectious diseases.(2) The Minister of Health shall issue regulations to specify the persons subject to immunization, as well as the terms and conditions for the performance of:1. mandatory planned immunization and re-immunization included in the immunization calendar of the Republic of Bulgaria;2. special immunization and re-immunization performed at specific indications;3. recommended immunization.(3) The regulations under Paragraph 2 shall set out also the specific requirements to and the application of individual serums, immunoglobulins and other bio products for preventive purposes.Article 59Where an emergency epidemic situation occurs or a tangible decline is observed in the immunization coverage, the Minister of Health may issue instructions in:1. mandatory immunization and re-immunization of certain groups of the population other than those included in the immunization calendar;2. mandatory immunization and re-immunization with substances other than those included in the immunization calendar;3. immunization and re-immunization in ways other than those included in the immunization calendar;4. the organisation of immunization campaigns, the opening of temporary immunization offices, the establishment of teams for on-site immunization and other emergency measures.Article 60(1) Patients with infectious diseases, persons in contact with them and infection carriers shall be subject to registration, mandatory notification and reporting.(2) The Minister of Health shall issue regulations to specify the diseases under Paragraph 1 and the terms and conditions for registration, notification and reporting.(3) The Minister of Health shall also specify in the regulations under Paragraph 2 the terms and conditions for supervision, early warning and undertaking of measures in the event of bioterrorism or emergence of new unknown infectious diseases.(4) The organisation of prevention and the control of internal hospital infections shall be s et out in regulations issued by the Minister of Health.(5) (Amended, SG No. 59/2006) The Minister of Health shall issue ordinances to specify the terms and conditions for diagnostics, prevention and control of certain infectious diseases.(6) The terms and conditions for testing, notification and reporting of infection with the virus of the acquired immune deficiency syndrome shall be set out in regulations issued by the Minister of Health.Article 61(1) Subject to mandatory isolation and hospital treatment shall be persons who are patients or infection carriers of cholera, plague, smallpox, yellow fever, viral hemorrhagic fever, diphtheria, typhoid fever, poliomyelitis, brucellosis, anthrax, malaria, severe acute respiratory syndrome and tuberculosis with bacilli spread.(2) Where a threat to the health of citizens exists, the Minister of Health may issue instructions on the mandatory isolation of infection carriers and patients of diseases other than those laid down in Paragraph 1.(3) The mandatory isolation and the treatment of the persons under Paragraphs (1) and (2) shall be carried out at an order issued by the head of the respective medical establishment at the proposal of the physician in charge of the treatment.(4) The isolation and treatment of patients of infectious diseases other than those under Paragraph 1 may be carried out at home upon the assessment of the existing epidemic risk by an epidemiologist and a specialist in infectious diseases.Article 62(1) Individuals and legal entities performing disinfection, disinfection and deratization shall advise the Ministry of Health thereof within 14 days of the beginning of their activities.(2) The terms and conditions for the activities under Paragraph 1 shall be set out in regulations issued by the Minister of Health.Article 63(1) Where an emergency epidemic situation occurs, the Minister of Health shall introduce anti-epidemic measures within the territory of the whole country or a specific region.(2) The measures under Paragraph 1 within the territory of a specific municipality may be introduced also by the mayor at the proposal of the director of the respective RIPHPC.(3) Central and local government authorities shall create the necessary conditions for the implementation of the measures under Paragraph 1, while the resources for their implementation shall be provided from the central government budget or the municipal budgets respectively.(4) In the event of a threat of occurrence and epidemic spread of infectious diseases, central and local government authorities, individuals and legal entities shall provide all the necessary assistance to the state health control authorities.Section VIProtection against the Impact of Ionizing RadiationArticle 64(1) The protection of persons against the impact of ionizing radiation shall be carried out, while observing the principles of radiation protection pursuant to this Act and the Safe Use of Nuclear Energy Act. (2) The protection under Paragraph 1 shall include:1. control of the factors of the working and living environment in order to identify and reduce the exposure of persons to sources of ionizing radiation;2. medical treatment of persons working with sources of ionizing radiation;3. dissymmetric control to establish the internal and external exposure of persons working with sources of ionizing radiation;4. assessment of the exposure and the radiation risk of the population as a whole or groups thereof;5. medical monitoring of persons exposed to sources of ionizing radiation in the course of medical tests or treatment;6. medical assistance to the community, individual groups thereof or persons working with sources of ionizing radiation in the event of radiation accident.Article 65(1) The Minister of Health shall issue regulations to specify:1. the terms and conditions for medical assistance and health norms to protect persons in the event of radiation accident;2. the terms and conditions for ensuring protection of persons in the case of medical radiation;3. the terms and conditions for the performance of individual dissymmetric control of persons working with sources of ionizing radiation;4. the health norms and requirements to work in an ionizing radiation environment;5. the requirements to the protection of persons exposed to recurrent radiation as a result of the production of, trade in or use of raw materials, objects and goods with increased radionuclide content.(2) Persons who fall ill as a result of radiation accident or radiation fallout in the environment shall be subject to monitoring and treatment under terms and conditions set out in regulations issued by the Minister of Health.Article 66(1) Medical ionizing radiation shall be allowed in any of the following cases:1. diagnostics or treatment of patients;2. health screening;3. implementation of medical research programmes with the participation of volunteers.(2) Medical ionizing radiation shall be allowed with regard to persons who consciously and voluntarily help other persons in the course of medical radiation without having any professional duty to do so.(3) The medical radiation under Paragraph 1 shall be prescribed and conducted by medical doctors or doctors of dental medicine.(4) The exposure of children to ionizing radiation within the framework of a health screening programme and the radiation involving high doses for the patient shall be conducted only by specialists who have undergone further specialised training.(5) In the cases under Paragraph 1, the persons to whom medical radiation is applied shall be entitled to refuse diagnostics and treatment related to ionizing radiation at any point of time.Article 67(1) Medical ionizing radiation shall be allowed in the implementation of forensic procedures for persons held criminally liable.(2) The instruction on the medical radiation under Paragraph 1 shall be issued by the competent government authority upon a medical conclusion that the person has no medical counter indications to apply it.(3) The terms and conditions for the medical radiation of persons under Paragraph 1 shall be set out in regulations issued by the Minister of Health, the Minister of Finance and the Minister of Justice.Article 68(1) No medical ionizing radiation shall be applied to pregnant women, unless there exists a serious threat to their life or health. In the case of medical ionizing radiation of a woman in fertile age, medical specialists shall ask her whether she is pregnant or not.(2) Where emergency aid is provided and the possibility for pregnancy cannot be ruled out, measures shall be taken to protect the health of the pregnant woman and the foetus.(3) Medical radiation of a breast-feeding woman for diagnostics and/or treatment with the methods of nuclear medicine shall be allowed only in case there exists a serious threat to her life or health.Article 69(1) Where the patient is at home after treatment or diagnostics with radioactive substances, the medical specialist in charge of the treatment of diagnostics shall provide the patient with instructions in writing on how to limit the exposure of the family members or the persons taking care of the patient directly.(2) The instructions shall be provided to the parent or the trustee of a patient who is a minor or put under full legal incapacity or to the parent or guardian of a patient who is under age or put under partial legal incapacity.Article 70(1) The state health control authorities may allow, by way of exception, the performance of activities by volunteers at higher levels of exposure in order to save human life or prevent greater exposure in the event of a radiation accident. The effective dose per person shall not exceed 50 millivert in any year or a total of 200 millivert for ten years.(2) The persons under Paragraph 1 shall be subject to immediate medical testing and monitoring.Article 71(1) The Ministry of Health shall establish and maintain a register of the persons working or having worked in an environment of ionizing radiation.(2) The terms and conditions for the registration, processing and storage of the data under Paragraph 1 shall be set out in regulations issued by the Minister of HealthArticle 72(1) Individuals and legal entities performing activities with sources of ionizing radiation shall:1. allow staff from external organisations to work upon the presentation of a medical conclusion on the fitness of the employee to work in an ionizing radiation environment;2. perform radiation monitoring and provide medical supervision of these persons during their work on the site;3. submit the results of the radiation monitoring to the employer of the external organisation.(2) The persons under Paragraph 1 shall advise the Ministry of Health of any deviations in the course of normal operation of the facilities, which may lead to exposure of citizens.(3) The government authorities which perform monitoring of the radiation parameters of the environment shall provide the Minister of Health, from time to time, with data needed for health risk assessment purposes.Section VIIProtection of the Health of Citizens in the Performance of Works with Asbestos and Asbestos-containing MaterialsArticle 73(1) (Amended, SG No. 59/2006, effective 21.07.2006) The works related to the demolition or removal of asbestos and/or asbestos-containing materials of buildings, structures, enterprises, installations or vessels shall be carried out upon reception of permission from the RIPHPC director on the territory of which they are carried out.(2) (Amended, SG No. 59/2006, effective 21.07.2006) For the purposes of obtaining permission, the party concerned shall submit an application to RIPHPC.1. application for issuance of permit;2. a work plan, featuring concrete measures for providing the health and safety of workers and employees at work;3. a list of workers and employees engaged;4. attestation of training of workers and employees.(3) (Amended, SG No. 59/2006, effective 21.07.2006) The work plan shall specify:1. the type and expected duration of activities;2. the location of activities;3. the methods applied at activities involving asbestos or asbestos-containing materials;4. the personal protection kits provided where necessary;5. the characteristics of the equipment used for protection of:(a) the workers and employees and for eradication of pollution with asbestos;(b) other persons on location of or in proximity to the work done;6. the planned activities for protection of the environment;7. the procedure and means of proving the lack of risk from exposure to asbestos at work after completion of the works on demolition or removal of asbestos or asbestos-containing materials.(4) (Amended, SG No. 59/2006, effective 21.07.2006) The work plan shall be developed in abidance by the requirement for removal of asbestos and/or asbestos-containing materials prior to the application of techniques for demolition, with the exception of the cases where works on said removal cause a greater risk for workers and employees than non-removal of the asbestos or asbestos-containing materials.(5) (New, SG No. 59/2006, effective 21.07.2006) The training of workers and employees shall be conducted under conditions and by a procedure established by the ordinance referred to in Item 2 of Article 36 of the Health and Safety at Work Act .(6) (Renumbered from Paragraph (5), SG No. 59/2006, effective 21.07.2006) No permission shall be required for emergency and rescue operations.Article 74(1) (Amended, SG No. 59/2006, effective 21.07.2006) Within ten days of the date of the application, the RIPHPC director shall send the documents under Article 73 (2) in an administrative procedure to the Regional Inspectorate for the Environment and Water on the territory of which the site for demolishing or removal of asbestos or asbestos-containing materials is located.(2) The Regional Inspectorate for the Environment and Water shall give its opinion within 14 days of the date of receipt of the documents. Where no opinion is received by RIPHPC within the prescribed time limits, the Regional Inspectorate for the Environment and Water shall be presumed to have given its consent with the documents without any reservations.(3) The RIPHPC director shall advise the applicant with regard to the recommendations of RIPHPC and/or the Regional Inspectorate for the Environment and Water to change the work plan. In accordance with the recommendations and within a month of the notification, the applicant shall submit the work plan adjusted in conformity with the recommendations.(4) (Amended, SG No. 59/2006, effective 21.07.2006) The permission for demolishing or removal of asbestos and/or asbestos-containing materials shall be issued by the RIPHPC director within five days of the date of receipt of a positive opinion of the Regional Inspectorate for the Environment and Water or the adjusted work plan.(5) In the event of failure to fulfil the recommendations, the RIPHPC director shall issue a refusal to give permissions with reasons thereof.Section VIIIResort Resources and ResortsArticle 75(1) Resort resources are mineral waters, curative pelloids, the beach strip and the areas with favourable bio-climatic conditions for preventive medicine, treatment and rehabilitation.(2) Curative pelloids are slime from firths and lagoons, slime from water sources, peat and bentonite clay.Article 76(1) Territories with categorized resort resources and opportunities for construction and operation of sites and facilities for preventive medicine, treatment, rehabilitation, recreation and tourism of the population shall be declared resorts.(2) The boundaries and conditions for the development of the resort shall be established at a decision of the Council of Ministers which is promulgated in The State Gazette.Article 77(Amended, SG No. 94/2005) The Minister of Health, jointly with the Minister of Regional Development and Public Works, the Minister of the Environment and Water and the Chairman of the State Tourism Agency, shall issue regulations specifying the conditions and procedure for:1. the use and protection of mineral waters, curative pelloids, the beach strip and the areas with favourable bio climatic conditions for preventive medicine, treatment and rehabilitation, as well as specifying the capacity of the beach strip and the areas with favourable bio-climatic conditions for preventive medicine, treatment and rehabilitation;2. the approval of protective zones and arrangements for the protection on of the deposits of curative pelloids, the beach strip and the areas with favourable bio-climatic conditions for preventive medicine, treatment and rehabilitation;3. the approval of the operational stock and use of curative mud deposits;4. the operation of beaches along the Black Sea coast.Article 78(1) Medical establishments shall use mineral waters and curative mud for their medical activities, including the cases in which these resort resources are subject to the provisions of the Concessions Act. (2) The quantities of mineral waters and curative mud under Paragraph 1 shall be established on an annual basis in a decision of the Council of Ministers at the proposal of the Minister of Health.Chapter ThreeMEDICAL SERVICESSection IAccessibility and Quality of Medical AidArticle 79Medical aid in the Republic of Bulgaria shall be provided by applying methods and technologies approved by medical science and practice.Article 80The quality of medical aid shall be based on medical standards approved pursuant to Article 6, Paragraph 1 of the Medical Treatment Facilities Act and the Rules of Good Medical Practice adopted and approved pursuant to Article 5, Item 4 of the Doctors' and Doctors of Dental Medicine Professional Organisations Act. Article 81(1) Each Bulgarian citizen shall be entitled to accessible medical aid under the terms and conditions of this Act and the Health Insurance Act. (2) The right to accessible medical aid shall be exercised, while applying the following principles:1. timeliness, sufficiency and quality of medical aid;2. equality in the provision of medical aid with priority given to children, pregnant women and mothers of children aged below one year;3. cooperation, consistency and coordination of the activities of medical establishments;4. respect for the patient's rights.(3) The terms and conditions for the exercise of the right of access to medical aid under Paragraph 1 shall be set out in regulations issued by the Council of Ministers.Article 82(1) Beyond the scope of the mandatory health insurance of Bulgarian citizens, medical services shall be provided in relation to:1. medical aid in emergency cases;2. (new, SG No. 59/2006) obstetric aid for all women without health insurance, regardless of the manner of birth, within the scope and by a procedure determined by an ordinance of the Minister of Health;3. (renumbered from Item 2, SG No. 59/2006) psychiatric hospital aid;4. (renumbered from Item 3, SG No. 59/2006) the provision of blood and blood products;5. (renumbered from Item 4, SG No. 59/2006) the transplantation of organs, tissues and cells;6. (renumbered from Item 5, SG No. 59/2006) the mandatory treatment and/or mandatory isolation;7. (renumbered from Item 6, SG No. 59/2006) expert opinions and reports on the degree of disability and long-term loss of the ability to work;8. (renumbered from Item 7, SG No. 59/2006) the payment for the treatment of diseases under terms and conditions set out by the Minister of Health;9. (renumbered from Item 8, SG No. 59/2006) medical transport under terms and conditions set out by the Minister of Health.(2) Each Bulgarian citizen shall use:1. vaccines for mandatory immunization and re-immunization, vaccines for specific indications and in emergency situations, specific serums, immunoglobulins and other bio products related to the prevention of infectious diseases, as well as the technical means for their application;2. the full range of anti-epidemic activities;3. access to healthcare activities within the framework of national, regional and municipal health programmes.(3) Children below the age of 16 shall be entitled to medical aid beyond the scope of the mandatory health insurance.(4) Children accommodated at medical establishments under Article 5, Paragraph 1 of the Medical Treatment Facilities Act shall be entitled to medical and social care free of charge.(5) The activities under Paragraphs (1), (2), (3), and (4) shall be financed from the central and local government budgets and used under terms and conditions set out in regulations issued by the Minister of Health.Article 83(Amended and supplemented, SG No. 18/2006, amended, SG No. 95/2006) (1) Foreigners allowed long-term stay in the Republic of Bulgaria shall use the medical aid under Articles 81 and 82 on equal terms with the Bulgarian citizens.(2) The procedures for access to medical aid of the persons under Paragraph (1) shall be set out by the regulations under Article 81 (3).(3) Foreign graduate students and PhD students, admitted for education in establishments of higher education and research in this country under the procedure of Decree of the Council of Ministers No.103/1993 regarding carrying out of education activities among Bulgarians abroad (promulgated, SG, No.48/1993; corrected, No.52/1993, amended, No. 54/1995, No. 20/1996, Nos. 38 and 73/1999, No. 101/2002, No. 89/2004) and Decree of the Council of Ministers, No. 228/1997 on admission of citizens of the Republic of Macedonia as graduate students in public higher educational establishments in the Republic of Bulgaria (promulgated, SG No. 42/1997, amended, No. 71/1999, No. 101/2002), shall enjoy access to medical assistance under Article 81 and 82 on equal terms with Bulgarian citizens.(4) Foreigners residing in the Republic of Bulgaria on a long or short- term basis or passing transit shall pay the value of the medical aid rendered to them at the prices set out by the medical establishment under the terms and conditions set out by the regulations of the Minister of Health, the Minister of Foreign Affairs and the Minister of Justice.(5) Foreigners residing in the Republic of Bulgaria on a short-term basis or passing transit shall have health insurance or policy covering the costs of treatment and hospitalization during their stay in the country, unless ruled otherwise in an international agreement to which the Republic of Bulgaria is a party.(6) Where the mandatory insurance under Paragraph (5) is made upon the entry into the country, the general terms and conditions, the minimum insurance amount, the minimum insurance premium and the procedure shall be set out in regulations issued by the Council of Ministers.(7) The regulations of Paragraphs (4) - (6) shall not apply to foreigners residing in the Republic of Bulgaria on a long or short term basis to whom shall apply the regulations for coordination of the social security systems within the meaning of 1, Item 1 of the Additional Provision of the Health Insurance Act. (8) The procedures for access to medical aid in the Republic of Bulgaria of the persons under Paragraph (7) shall be set out by the regulations under Article 81 (3).Section IIPatient's Rights and ObligationsArticle 84(1) Patient is any person who has sought or who is receiving medical aid.(2) Persons shall be registered as patients with their informed consent, except for the cases prescribed by law.Article 85The assessment of the health condition of the patient may not be based on race, gender, age, ethnic community, origin, religion, education, cultural level, convictions, political affiliation, sexual orientation, personal and social status or property.Article 86(1) In the capacity of a patient, every person shall be entitled to:1. respect for his/her civil, political, economic, social, cultural and religious rights;2. care from the community in which he/she lives;3. accessible and high-quality medical aid;4. more than one medical opinion on the diagnosis, treatment and prognosis of the disease;5. protection of the data related to his/her health condition;6. remuneration for the work he/she performs equal to the one he/she would receive if healthy;7. becoming aware of his/her rights and obligations in a language comprehensible to him/her;8. clear and accessible information on his/her health condition and the methods of the possible treatment.(2) In the case of hospitalisation, patients shall be entitled to:1. visits by the family doctor and the specialists who has issued the hospitalisation instruction;2. receive or refuse to receive visitors;3. the services of a psychotherapist, a lawyer and a priest;4. education and access to activities meeting their social, religious and cultural needs;5. information on the price of each medical service, manipulation, treatment and medicine in the primary and hospital aid.(3) The patient's rights shall be exercises, while observing the rules for the structure, activities and internal order of the medical establishment.Article 87(1) Medical activities shall be performed upon the informed consent expressed by the patient.(2) Where the patient is under age or put under partial legal incapacity, his/her informed consent shall be given together with the consent of a parent or a custodian.(3) Where the patient is a minor or put under full legal incapacity, the informed consent shall be given by a parent or a trustee, unless prescribed otherwise by law.(4) Where persons have mental disorders and are incapable of giving informed consent, the latter shall be expressed by the persons under Article 162, Paragraph 3.Article 88(1) In order to obtain the informed consent, the physician (doctor of dental medicine) in charge of the treatment shall inform the patient or the parent, custodian or trustee respectively, as well as the persons under Article 162, Paragraph 3 about:1. the diagnosis and nature of the disease;2. the description of the goals and the nature of the treatment, the reasonable alternatives, the expected outcome and the prognosis;3. the potential risks related to the proposed methods of diagnostics and treatment, including the side effects and undesired pharmaceutical reactions, pain and other discomfort;4. the likelihood of a favourable impact, and the health risk in the application of other methods of treatment or in the refusal to take treatment.(2) The medical information under Paragraph 1 shall be provided to the patient or the parent, custodian or trustee respectively, as well as the persons under Article 162, Paragraph 3 in a timely manner and in an appropriate amount and format to ensure the freedom of choice of a treatment.Article 89(1) In the event of surgical intervention, general anaesthetics, invasive and other diagnostic and therapeutic methods leading to higher risk the patient's life of health or temporary change of the mind, the information under Article 88 and the informed consent shall be given in writing.(2) The activities under Paragraph 1 may be performed to the benefit of the patient's health without any informed consent given in writing only if there is an immediate threat to the patient's life and:1. his/her physical or mental condition prevent him/her from expressing an informed consent;2. it is impossible to obtain the consent of the parent, custodian, trustee or the person under Article 162, Paragraph 3 in a timely manner, where such a consent is required by law.(3) With regard to persons have mental disorders and are incapable of giving informed consent, the activities under Paragraph 1 may be performed only with the permission of the commission for medical ethics and upon obtaining the consent of their legitimate representatives or the head of the medical establishment, where no such commission exists.Article 90(1) The patient or the parent, custodian or trustee respectively, as well as the persons under Article 162, Paragraph 3 may refuse the medical aid offered or continuation of medical activities that have started at any point of time.(2) The refusal under Paragraph 1 shall be certified in the medical documentation with signatures of the person.(3) Where the patient or the parent, custodian or trustee respectively, or the person under Article 162, Paragraph 3 in not in a position or refuses to certify the refusal under Paragraph 1 in writing, this fact shall be certified with the signature of the physician in charge of the treatment and a witness.(4) Where the parent, custodian or trustee has given the refusal under Paragraph 1 and the patient's life is threatened, the head of the medical establishment may decide to apply life saving treatment.Article 91Medical aid may be provided to the patient against his/her will only in cases prescribed by law.Article 92(1) The physician in charge of the treatment shall inform the patient about:1. his/her health condition and the need for treatment;2. the disease in connection with which the patient has sought medical aid, and its prognosis;3. the planned preventive, diagnostic, therapeutic and rehabilitation activities, as well as the related risks;4. the diagnostic and therapeutic alternatives;5. the name, position and specialty of the persons involved in the diagnostic and therapeutic process.(2) The patient's access to the health information under Paragraph 1, Items 2 and 3 may be restricted in the case of his/her refusal given in writing.(3) The decision under Paragraph 2 shall be reflected in writing in the patient's medical documentation.Article 93(1) The patient or the parent, trustee or custodian respectively or a person authorised by the patient may submit complaints and reports to RHC in the case of violation of the patient's rights under this Act or disputes related to medical services.(2) The Regional Healthcare Centre shall check the complaint or reports in an administrative procedure within seven days.(3) Where an administrative violation is observed, the inspecting officer of RHC shall draw up a statement of findings, while the RHC director shall issue a penalty order under the Administrative Violations and Sanctions Act.(4) Where the established violations are punishable under the Doctors' and Doctors of Dental Medicine Professional Organisations Act and the Health Insurance Act, RHC shall inform and send the complaint to the regional chapters of the Bulgarian Doctors' Union and the Union of Dentists in Bulgaria and the Regional Health Insurance Fund.(5) Within three days of the end of the check, RHC shall advise the patient of the results thereof and the action undertaken.Article 94The patient shall:1. take care of his/her own health;2. not harm the health of others;3. assist the providers of medical aid in the performance of the activities related to the improvement and recovery of his/her health;4. observe the order established at healthcare and medical establishments.Article 95(1) In the case of incurable diseases with unfavourable prognosis, the patient shall be entitled to palliative medical care.(2) The objective of palliative medical care shall be to maintain the quality of life through reduction or elimination of some immediate signs of the diseases, as well as the related adverse psychological and social effects.Article 96(1) Palliative medical care shall include:1. medical observation;2. healthcare aimed at providing care to the patient, removing pain and the psychological and emotional effects of the disease;3. moral support to the patient and his/her relatives.(2) Palliative medical care shall be provided by the family doctor, by medical establishments for outpatient and hospital care, by dispensaries and hospices.(3) The requirements to the provision of palliative medical care shall be set out in regulations issued by the Minister of Health.Article 97No euthanasia shall be applied within the territory of Bulgaria.Article 98(1) Persons who died at a medical establishment shall be subject to post-mortem upon notification of a parent, adult child, spouse or sibling.(2) Post-mortem of persons who dies outside a medical establishment may be performed at the request of the medical doctor who reported the death or at the explicit request of the relatives of the deceased person.(3) No post-mortem shall be performed where the corpse is subject to forensic medical expert opinion and report.(4) Post-mortem shall not be performed when the corpse is subject to forensic expertise.Section IIIMedical Aid in EmergencyArticle 99(1) The government shall organise and finance a system for emergency medical aid.(2) Emergency is an acute or sudden change of human health, which requires urgent medical aid.(3) Medical aid in emergency shall be aimed at preventing:1. death;2. severe or irreversible morphological and functional damage to vital organs and systems;3. complications in women at childbirth, which threaten the health and life of the mother or the foetus.Article 100(1) Each person on the site of the accident shall inform the nearest emergency medical aid centre, another medical establishment or police department.(2) Each medical establishment shall provide the possible volume of medical activities to a patent in emergency, regardless of his/her citizenship, address or health insurance status.(3) Where it is impossible to provide the necessary volume of activities, the patient shall be accommodated at the nearest medical establishment which has the requisite conditions, provided that the condition of the patient allows to do so.(4) In the case of relocation of a patient from one medical establishment to another, all medical documents on the diagnostic, consultative and therapeutic activities shall be attached in the summarized form of an epicrisis.(5) A patient shall not be transported if the transportation or the related circumstances lead to unjustified high risk for his/her health and life.Section IVMedical Expert ActivitiesArticle 101(1) Medical expert opinions and reports shall be given to establish the extent of loss of the ability to work and to confirm an occupational disease.(2) Medical expert activities shall be organised and guided by the Minister of Health and RHC.(3) The extent of the long-term loss of the ability to work and the extent of the reduced capability of social adaptation of children below the age of 16 shall be expressed in percentage of the capabilities of a healthy person.(4) The extent of the long-term loss of the ability to work of persons aged 65 or above shall be established for life. Re assessment of these persons may be performed at their request or at the request of the medical expert control authorities.(5) The principles and criteria for medical expert activities and the procedures for establishment of the extent of loss of the ability to work and for confirmation of an occupational disease shall be set out in regulations issued by the Council of Ministers.Article 102(1) The National Medical Expert Board shall be established at Council of Ministers with the following powers:1. to prepare and submit to the Council of Ministers opinions on the national health policy in connection with medical expert activities;2. to ensure the coordination of government authorities in connection with medical expert activities;3. to analyse the information on the performance, development and condition of medical expert activities in this country;4. to draft and submit for adoption to the Council of Ministers new and amending bills related to medical expert activities;5. to develop a methodology for financing and control of medical expert bodies, which shall be adopted by the Council of Ministers.(2) The National Medical Expert Board shall have the following membership: a Deputy Prime Minister who will serve as the chairperson of the Board, the Minister of Health, the Minister of Labour and Social Policy, the Minister of Finance, the head of the National Social Security Institute (NSSI), the NHIF director, and the NEMC director.(3) The structure and activities of the Board under Paragraph 1 shall be set out in regulations issued by the Council of Ministers.Article 103(1) The medical expert opinion and report on the ability to work shall include an opinion and report on the temporary loss of the ability to work and an opinion and report on the long term loss of the ability to work.(2) The medical expert opinions and reports on the temporary loss of the ability to work shall be given by the physician in charge of the treatment, physician consultative commissions (PCC), territorial physician expert commissions (TPEC) and NEMC.(3) The medical expert opinions and reports on the long-term loss of the ability to work and occupational diseases shall be given by TPEC and NEMC.(4) The medical expert opinions and reports on the reduced capability of social adaptation of children below the age of 16 shall be given by TPEC with the participation of paediatricians and social workers.Article 104(1) Physician consultative commissions shall be opened and closed down with an order of RHC directors at medical establishments for outpatient and hospital care at the proposal of the head of the respective medical establishment.(2) At the medical establishments under Article 5, Paragraph 1 of the Medical Treatment Facilities Act and at university hospitals, the PCC membership shall be set out in an order of the head of the respective medical establishment.(3) Physician consultative commissions shall be general and specialised. The PCC membership shall include at least two permanent members who are medical doctors with recognised specialty, including a chairperson.Article 105(1) Territorial physician expert commissions shall be opened and closed down with an order of RHC directors, in consultation with the Minister of Health, at state-owned and municipal medical establishments for hospital care and dispensaries.(2) Territorial physician expert commissions shall be structural units of the medical establishments at which they are opened.(3) The membership of each TPEC shall include: a medical doctor representing the respective territorial subdivision of NSSI designated at an order of the head of the respective territorial subdivision of NSSI, and a representative of the Regional Social Welfare Directorate designated at an order of the director of the respective Regional Social Welfare Directorate.Article 106(1) The membership of TPEC and NEMC shall include medical doctors with recognised specialty and at least 10 years of service in the respective profile.(2) The membership of specialised NEMC divisions shall include a medical doctor representing the NSSI designated at an order of the head of the NSSI.(3) TPEC and NEMC members may not engage in activities subject to their control or consultative activities related to medical expert opinions and reports on temporary or long-term loss of the ability to work.Article 107(1) The director of the medical establishment shall sign a funding agreement for the activities of TPEC with the Minister of Health.(2) Highly specialised and costly medical and diagnostic tests related to the process of medical expert opinions and reports on the ability to work, which are performed at the request of TPEC and NEMC, shall be financed by the NHIF within the framework of its annual budget.Article 108(1) The activities related to the registration, processing and storage of health information for persons assessed by TPEC and NEMC shall be carried out by regional medical expert record offices (RMERO).(2) The regional medical expert record offices shall be structural units of RHC.(3) The medical documentation of persons assessed by TPEC and NEMC with recognised percentage of long-term loss of the ability to work shall be stored for 40 years of the date of the latest TPEC (NEMC) decision, and that of all other persons shall be stored for five years.(4) Copies of the TPEC and NEMC decisions shall be sent to the National Health Information Centre.Article 109The structure and activities of the medical expert bodies under Article 103 and of RMERO shall be set out in regulations issued by the Council of MinistersArticle 110Medical expert activities shall be subject to control by the National Medical Expert Board, the Minister of Health, the Minister of Labour and Social Policy, NHIF, NSSI, the regional boards under Article 111 and RHC.Article 111(1) For the purposes of exercising control over the acts issued by medical expert bodies with regard to the temporary loss of the ability to work, a regional board shall be set up at an order of the respective RHC director, including representatives of RHC, the NSSI territorial subdivision and RHIF. The regional board shall perform also inspections ex officio of at least two percent of the decisions on the temporary loss of the ability to work made within the territory of the respective region, which shall be subject to random choice.(2) The regional board shall review and control medical expert activities with regard to the temporary loss of the ability to work, which are carried out by physicians in charge of the treatment, PCC and TPEC. The organisation of the activities of the board shall be set out in regulations issued by the Minister of Health together with the NSSI head.(3) Regional boards shall check the observance of the requirements for the issuance of decisions on the temporary loss of the ability to work by physicians in charge of the treatment and TPEC at the proposal of the parties and organisations concerned (assessed persons, insurers, NSSI and NHIF territorial subdivisions).(4) Where a violation is observed in the issuance of expert decisions on the temporary loss of the ability to work, the regional board shall advise in writing the higher-standing medical expert body and the parties and organisations concerned (assessed persons, insurers, NSSI and NHIF territorial subdivisions).Article 112(1) The appeals and objections on part of the parties and organisations concerned (assessed persons, insurers, NSSI, the Social Welfare Agency, the Rehabilitation and Social Integration Fund and the medical expert bodies assessing the ability to work) shall be served:1. against the decisions of the physician in charge of the treatment within 14 days of their reception before the physician consultative commission;2. against PCC decisions within 14 days of their reception before TPEC;3. against TPEC decisions within 14 days of their reception before NEMC;4. (amended, SG No. 30/2006) against NEMC decisions before the Sofia City Administrative Court pursuant to the Administrative Procedure Code. (2) The parties and organisations concerned (assessed persons, insurers, NSSI and NHIF territorial subdivisions) may appeal, within 14 days, against PCC decisions violating the requirements and procedure for the issuance of expert decisions on the temporary loss of the ability to work also before the regional board under Article 111.(3) The regional board shall rule on the appeals within ten days of the repeated medical expert opinion and report on the temporary loss of the ability to work, which shall be performed by a specialised PCC designated by the board, depending on the type of disease.(4) Where a violation is observed in the issuance of the appealed expert decision, the regional board shall revoke it and the ability to work shall be established in the repeated medical expert decision.(5) The decision of the regional board to revoke the medical expert decision and the decision to give a repeated medical expert opinion and report shall be sent to the parties concerned (assessed persons, insurers and NSSI) and RHIF.(6) An appeal against a PCC decision under Paragraph 2 shall be an obstacle to appealing against it under Paragraph 1, Item 2.(7) The decision of the regional board not to grant the appeal shall not prevent the appeal against the PCC decision before TPEC under Paragraph 1, Item 2. In these cases, time limits shall start on the date of receipt of the decision of the regional board.(8) The decision to give a repeated medical expert opinion and report shall be subject to appeal under Paragraph 1, Item 2.Article 113(1) Medical expert bodies may also act on their own initiative to revoke or alter wrong decisions of lower-standing bodies or refer their decisions back for removal of errors or incompleteness within three months of the date of these decisions.(2) The head of NEMC may give instructions to review wrong or contradictory decisions of NEMC divisions within three months of the date of these decisions.(3) The decisions of medical expert bodies, which have not been appealed against or all the remedies in connection with which have already been exhausted, shall be binding on all persons, bodies and organisations in this country.Section VMedical Care in Natural Calamities, Accidents and DisastersArticle 114(1) The management, organisation and provision of resources for medical care in natural calamities, accidents and disasters shall be performed by the Minister of Health, RHC directors, state health control authorities, medical and healthcare establishments.(2) (Amended, SG No. 102/2006) The authorities under Paragraph (1) shall carry out the medical care activities in natural calamities, accidents and disasters in close cooperation with the central and local government authorities, the Ministry of State Policy for Disasters and Accidents, non- governmental organisations and the Bulgarian Red Cross Society.Article 115(1) The Minister of Health shall develop plans for medical care in natural calamities, accidents and disasters, which shall be subject to approval by the Council of Ministers.(2) On the basis of the action plans in natural calamities, accidents and disasters as approved by the Council of Ministers, the authorities under Paragraph 1 shall:1. create the necessary conditions for medical sorting, primary processing, treatment, rehabilitation and medical expert activities for the victims;2. set up and train management bodies and medical teams;3. ensure the protection of hospitalised patients and medical staff against external factors;4. organise and carry out anti-epidemic and sanitary activities and control in the affected areas;5. establish resource stock for medical activities;6. organise the continuous training of medical specialists and the population in the field of medical care in natural calamities, accidents and disasters.(3) Healthcare in natural calamities, accidents and disasters shall be financed from the central government budget.Article 116(1) A board for medical care in natural calamities, accidents and disasters at the RHC director shall be set up to provide medical care in natural calamities, accidents and disasters.(2) The board under Paragraph 1 shall include the directors of RIPHPC, medical establishments for hospital care, the emergency medical aid centre and representatives of the regional administration and municipalities in the respective region.(3) The board under Paragraph 1 shall adopt the regional action plans and the training programmes for medical teams operating in natural calamities, accidents and disasters.Chapter FourHEALTH PROTECTION OF SPECIFIC GROUPS OF THE POPULATIONSection IHealth Protection of ChildrenArticle 117Central and local government authorities, individuals and legal entities shall create conditions to ensure a healthy environment and normal physical and mental development of children.Article 118(1) Creches and kitchens for children shall be set up to support families in raising children up to the age of three and to ensure their normal physical and mental development.(2) Creches shall be organisationally distinct structures, where medical and other specialists raise, educate and train children aged from three months to three years.(3) Kitchens for children shall be organisationally distinct structures, where medical and other specialists prepare, keep and provide food for children aged up to three years.(4) The requirements to the structure and activities of cr ches and kitchens for children, as well as the norms for healthy nutrition of children aged up to three years shall be set out in regulations issued by the Minister of Health.Article 119(1) Cr ches and kitchens for children may be set up by local governments, individuals and legal entities.(2) The support of children at municipal cr ches and the operation of municipal kitchens for children shall be supported from the respective municipal budget.(3) Parents and trustees shall pay fees for raising children at municipal cr ches and for receiving food from municipal kitchens for children in amounts specified by the Municipal Council pursuant to the Local Taxes and Fees Act. Article 120(Amended, SG No. 95/2007) (1) Health offices at kindergartens, schools and specialised institutions providing social services for children under Article 26, Paragraph (1), Item 3, shall carry out the following activities:1. medical services for the provision of first medical aid to the children and pupils and medical services until the arrival of a specialized urgent medical aid team;2. promotion and prevention with regard to the children's and pupils' health;3. organising and carrying out activities to prevent outbreaks and limit the spreading of infectious and parasitical diseases at the kindergartens, schools and specialised institutions providing social services for children;4. participation in the preparation, conducting and control of the various forms of recreation, tourism and sports activities for the children and pupils;5. organisation and implementation of health education programs for the children and pupils, of special healthy diet programs, of programs to prevent deviations in diet habits, to prevent the use of narcotic and psychotropic substances, to prevent the use of tobacco products and alcoholic drinks, and to cultivate a sexual culture;6. consultation on the weekly schedule of classes with the headmaster of the kindergarten, the school, and of the specialised institutions providing social services for children.(2) The activities under Paragraph (1) shall be carried out periodically and by university graduates of medicine with the vocational qualification of doctor and by other medical specialists with a bachelor's degree under Article 42, Paragraph (1), Item 1 of the Higher Education Act, in accordance with standards specified by the regulations under Article 26, Paragraph (2). The regulations shall also specify the powers, duties and responsibilities of the doctors and medical specialists working in the medical offices under Paragraph (1).(3) The doctors shall keep accounting and reporting records as per sample forms and systematise the information from the doctor of dental medicine on the process of prevention and treatment regarding the dental status of the children and pupils at the kindergartens, schools, and specialised institutions providing social services for children under Paragraph (1), in cases where no dental medicine offices have been opened therein.(4) The doctors and medical specialists under Paragraph (2) shall work under a contract with the mayor of the municipality on whose territory the kindergartens, schools, and specialised institutions providing social services for children are located, or with the person who has obtained a permit, or respectively a license, to open a private kindergarten, a private school, or a private specialised institution providing social services for children.(5) The activities of the medical offices opened in state-owned kindergartens, schools, and homes for children under Article 26, Paragraph (1), Item 3, shall be financed by the central government budget, while the activities of the medical offices opened in municipal kindergartens, schools, and homes for children shall be financed by the municipal budgets. The activities of the medical offices opened in private kindergartens, schools, and specialised institutions providing social services for children, shall be financed by their owners.(6) The activities performed by the medical offices shall be controlled by the respective RHC.Article 121In the event of a detected disease or deviation in the development of a child, the specialists at health offices shall inform the parents, trustees or custodians and the general practitioner of the child.Article 122(1) The approved curriculum shall provide pupils with training in:1. personal hygiene;2. healthy nutrition;3. healthy environment;4. healthy life style;5. prevention of infectious diseases;6. health risks related to smoking, use of alcohol and narcotic drugs;7. sexual behaviour, prevention of sexually transmitted diseases and AIDS and prevention of undesired pregnancy;8. first aid to victims.(2) The training of trainers in the issues under Paragraph 1 shall be organised by the Minister of Education and Science in accordance with training programmes consulted with the Minister of Health.(3) School boards of trustees shall organise events to inform parents on children health issues.Article 123(1) For the purposes of ensuring preventive medical and dental aid to children and pupils at cr ches, kindergartens, schools, orphanages and specialised child institutions, documents on examinations conducted shall be required or preventive medical and dental examinations shall be carried out.(2) The terms and conditions for carrying out the preventive examinations under Paragraph 1 shall be s et out in regulations issued by the Minister of Health.(3) The activities under Paragraph 1 shall be financed by NHIF.Article 124(1) The preventive medical aid to children at medical and social care homes for children shall be provided by the medical doctors working at the medical establishment.(2) The dental treatment beyond the scope of the National Framework Agreement of children at specialised child institutions opened by the Ministry of Health, the Ministry of Education and Science, the Ministry of Labour and Social Policy, the Ministry of Interior and the Ministry of Justice, as well as at specialised child institutions run by local governments shall be paid by the respective institutions.Article 125An agreement with a medical establishment for outpatient care may be signed to provide additional or specialised medical services to children at the institutions under Article 123, Paragraph 1.Section IIReproductive HealthArticle 126(1) The government shall provide health protection of the reproductive health of citizens by means of:1. promotion and consultations for protection of the reproductive health of children and persons in reproductive age;2. ensuring access to specialised consultative aid on issues of reproductive health and family planning;3. prevention and treatment of sterility;4. specialised information, consultations, prevention and treatment of sexually transmitted diseases and AIDS;5. prevention, treatment and dispensary monitoring of persons with malignant diseases of the reproductive system.(2) Every person shall be entitled to information and freedom of choice with regard to his/her reproductive health.Article 127(1) For the purposes of ensuring risk-free maternity, every woman shall have access to health activities aimed at ensuring optimal health condition of the woman and the foetus from the beginning of the pregnancy to the 42nd day of the child.(2) The health activities under Paragraph 1 shall include:1. promotion aimed at protecting the health of the woman and the foetus;2. prevention of the threat of abortion and premature childbirth;3. training in the feeding and care of infants;4. active medical monitoring of pregnancy on the basis of the dispensary principle at medical establishments for primary and specialised outpatient aid;5. pre-natal diagnostics and prevention of genetic and other diseases under terms and conditions set out in regulations issued by the Minister of Health;6. ensuring optimal living environment for mothers and infants;7. dispensary monitoring and healthcare for mothers and infants;8. free access of pregnant women or mothers of infants to medical establishments for specialised outpatient aid;9. free access of pregnant women to medical establishments for specialised outpatient and hospital care in conditions threatening the pregnancy;10. the freedom of choice of a medical establishment for hospital aid at childbirth by pregnant women.Article 128(1) The terms and conditions for performing artificial abortions and the foetus viability criteria shall be set out in regulations issued by the Minister of Health.(2) The regulations under Paragraph 1 shall specify also the obligations of medical specialists in the case of suspected abortions carried out beyond the terms and conditions set out in this Act.(3) The lasting removal of the ability to reproduce shall be carried out under terms and conditions set out in regulations issued by the Minister of Health. For more information visit www.solicitorbulgaria.com id: 311 Fri, 01 Aug 2008 04:26:57 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-health-act-part-1 http://web.solicitorbulgaria.com/index.php/bulgarian-health-act-part-1 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/HEALTH_ACT.JPG EUR http://web.solicitorbulgaria.com/index.php/bulgarian-health-act-part-1 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Section III(Renumbered from Section II, SG No. 107/2002)Health Insurance Companies and Licensing(Title amended, SG No. 107/2002)Article 91. (Amended, SG No. 113/1999, SG No. 107/2002) A health insurance company shall be a joint-stock company, licensed under this Act, which shall be incorporated, shall carry on business, and shall be dissolved according to the procedure established by the Commerce Act, save in so far as otherwise provided for by this Act.Article 92. (Amended, SG No. 107/2002) (1) The trade name of any health insurance company shall mandatorily include, whether separately or combined, the words "здравен" (health) and "осигуряване" (insurance) or any derivatives thereof.(2) Solely a company licensed for the performance of activity comprehended in health insurance may use any collocation of the words "здравен" (health) and "осигуряване" (insurance) or any derivatives thereof, with the exception of National Health Insurance Fund, in the business… For more information visit http://www.solicitorbulgaria.com id: 312 Section III(Renumbered from Section II, SG No. 107/2002)Health Insurance Companies and Licensing(Title amended, SG No. 107/2002)Article 91. (Amended, SG No. 113/1999, SG No. 107/2002) A health insurance company shall be a joint-stock company, licensed under this Act, which shall be incorporated, shall carry on business, and shall be dissolved according to the procedure established by the Commerce Act, save in so far as otherwise provided for by this Act.Article 92. (Amended, SG No. 107/2002) (1) The trade name of any health insurance company shall mandatorily include, whether separately or combined, the words "здравен" (health) and "осигуряване" (insurance) or any derivatives thereof.(2) Solely a company licensed for the performance of activity comprehended in health insurance may use any collocation of the words "здравен" (health) and "осигуряване" (insurance) or any derivatives thereof, with the exception of National Health Insurance Fund, in the business name thereof, in the description of the activities thereof or in advertising.Article 93. (Amended, SG No. 113/1999, SG No. 107/2002) (1) The minimum amount of capital that any health insurance company must hold upon submission of an application for a licence shall be BGN 500,000. Within three years after the grant of a licence, any such company must increase the capital thereof to not less than BGN 2,000,000.(2) Solely payments in cash may be effected in consideration of allotted shares in the capital of any health insurance company.(3) At the time of submission of an application for the grant of a licence for performance of activity comprehended in voluntary health insurance and at the time of recording of the increase of capital under Paragraph (1) in the Commercial Register, the capital of the company or the value of the new shares, as the case may be, must be fully paid up at a Bulgarian or a foreign commercial bank which has obtained an authorization for conduct of banking business from the Bulgarian National Bank.Article 94. (Amended, SG No. 65/1999, SG No. 107/2002) (1) Any resident or non-resident natural or legal person, who or which shall acquire, whether independently or through connected persons, 10 per cent or more than 10 per cent of the shares in any health insurance company, shall be obligated within 14 days following the acquisition of the shares to notify the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department through submission of a declaration completed in a standard form.(2) (Amended SG No. 103/2005) A person may not be a shareholder in a health insurance company, whether directly or through connected persons provided he or she has been reasonably found to make use of the voluntary health insurance activities for purposes contrary to the goals and principles enshrined in Article 82, para 3 of this law and in Article 11 of the Financial Supervision Commission Act. Article 95. (Amended, SG No. 107/2002, SG No. 8/2003) (1) The standard form of the declaration referred to in Article 94 (1) herein shall be endorsed by an order of the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department.(2) The following shall be attached to any declaration referred to in Paragraph (1):1. (amended, SG No. 39/2005, No. 34/2006) Applicant data - name, personal identity number, permanent address - for natural persons; certificate reflecting current status of entry in the Commercial Register;2. a declaration on the origin of the financial resources for acquisition of the shares, completed in a standard form endorsed by order of the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department;3. a declaration on non-existence of the circumstances referred to in Article 94 (2) herein, completed in a standard form endorsed by order of the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department;4. (amended, SG No. 105/2005) a certificate under article 87, paragraph 6 of the Tax and Social Insurance Procedure Code; 5. a certificate by the creditor to the effect that the said creditor consents that the financial resources borrowed be used for acquisition of the shares, where acquired on borrowed resources;6. (amended, SG No. 85/2004, SG No. 103/2005) a statement on connected persons within the meaning given by Item 12 of 1 of the Insurance Code. (3) In case the declarant under Paragraph (1) is a non-resident person, the particulars and documents covered under Paragraph (2) shall be submitted in a form and with contents relevant to the national legislation of the declarant.Article 96. (Amended, SG No. 107/2002, SG No. 8/2003) (1) In case of inaccuracy or deficiency of the particulars in the declaration referred to in Article 95 (1) herein and/or the documents covered under Article 95 (2) and (3) herein, the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department shall require removal of the deficiencies or inaccuracies within fourteen days.(2) In case of failure to submit the documents referred to in Paragraph (1) or to cure the non-conformities therein within the time limit referred to in Paragraph (1), the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department shall impose the sanctions under this Act.(3) In the cases referred to in Paragraph (2) and in case of reasonable doubt as to falsity of the circumstances as declared, the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department shall notify the competent state bodies and, possibly, the creditor referred to in Item 5 of Article 95 (2) herein.Article 97. (Amended, SG No. 107/2002) (1) The members of the managing or supervisory bodies of any health insurance company may be natural or legal persons.(2) Eligibility for membership of a Supervisory Board, a Management Board or a Board of Directors shall be limited to persons who:1. have graduated from a higher educational establishment;2. have not been sentenced to deprivation of liberty for a premeditated offence at public law;3. have not been members of a managing or supervisory body of, nor general partners in, any corporation or cooperative dissolved by reason of bankruptcy in case any creditor has been left unsatisfied or in case bankruptcy proceedings have been initiated there against;4. have not been members of a managing or supervisory body of any commercial bank which has been adjudicated bankrupt or where against bankruptcy proceedings have been initiated;5. are not disqualified from occupying a position of property accountability;6. are not spouses of any other members of a management or supervisory body of the same health insurance company, nor lineal or collateral relatives to any such person up to the third degree of consanguinity, or affines thereto up to the third degree of affinity;7. are not members of a managing or supervisory body of another company having the same objects;8. are not natural persons or members of a managing or supervisory body of any legal person included in the list under the Act on Information Regarding Non-Performing Loans; 9. (amended SG No. 103/2005) complies with the provisions of article 94, para 2;10. (amended SG No. 103/2005) have not been and are not partners or shareholders, nor members of a managing or supervisory body of a company falling within the scope of article 94, para 2;(3) Eligibility for the office of chairperson of a Supervisory Board, chairperson of a Management Board or chairperson of a Board of Director shall be limited to persons who have graduated from a higher educational establishment, who satisfy the requirements covered under Paragraph (2), and who have a permanent address or hold a durable residence permit for Bulgaria.(4) Eligibility for the office of executive director and of holder of authority to exercise powers under Article 235 of the Commerce Act shall be limited to persons who satisfy the requirements covered under Paragraph (3) and who possess professional experience in the sphere of insurance and social insurance.(5) (Repealed SG No. 103/2005). (6) Any members, which are legal persons, must satisfy the requirements referred to in Items 3, 4, 7, 8, 9 and 10 of Paragraph (2).(7) Any persons, who represent a legal person on the managing bodies of any health insurance company, must satisfy the eligibility conditions of Paragraph (2) or of Paragraph (3) or Paragraph (4), as the case may be.(8) Possession of the requisite professional experience in the sphere of insurance and social insurance shall be proved by documents certifying not less than two years' length of service in health-care management, in health insurance, insurance, retirement insurance, or in a managerial or expert position in the state governance and supervision of these activities.(9) (New, SG No. 8/2003) The persons covered under Paragraphs (2) to (7) shall be subject to approval by the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department. The said approval shall precede the recording in the Commercial Register or, respectively, the appointment to a position for which recording is not required. The Deputy Chairperson shall pronounce within one month after submission of the application.Article 97a. (New SG No. 103/2005) (1) Actuary services to a health insurance company shall be provided by a registered actuary. A registered actuary is a qualified individual organizing, directing and being in charge of actuary services provided to health insurance companies.(2) A registered actuary must not:1. have a criminal record of premeditated crime of a general nature;2. have sat on the management board or the supervisory board or have been an unlimited liability partner of a company, for which bankruptcy proceedings have been opened or the company has been proclaimed in liquidation on grounds of indebtedness to creditors over the last three years since insolvency was established by court;3. have been proclaimed insolvent or currently been in insolvency proceedings;4. have been barred from occupying a position involving material liability;5. hold a diploma of higher education not lower than Masters degree including a required number of higher Maths classes pursuant to the provisions of an Ordinance issued by the Financial Supervision Commission;6. have at least three years of experience as actuary in insurance, reinsurance, health insurance, a pension company, or authorities supervising such companies or as university professor in insurance and actuary science;7. have been recognized as having qualifications as actuary by the Financial Supervision Commission after having taken an exam thereof.(3) The terms and procedures of holding the exam and awarding the qualifications pursuant to para 2, item 7 as well as for licensing from another member-country shall be determined with an Ordinance of the Financial Supervision Commission. Under this Law the licence of a registered actuary shall be recognized pursuant to the provisions of the Insurance Code and the Social Insurance Code provided the exam also includes test of knowledge related to health insurance.(4) The Financial Supervision Commission may upon an order by the Deputy-Chairman in charge of the Insurance Supervision department revoke the licence of a registered actuary in the following cases:1. if he/she failed to meet the requirements under para 2, 1-4;2. if he/she while providing actuary services to a health insurance company made gross and repeated violations of this law or of the secondary legislation enforcing it;3. if he/she submitted false data or documents with false contents on the basis of which the licence had been awarded.4. (new, SG No. 97/2007) has not practised the activity for more than two successive years since recognition of the licensed competence or since vacation of office as responsible actuary, unless the holder has carried out activity as an actuary.(5) In the event of revocation of a licence pursuant to para 4 the person may apply for a recovery of the licence not earlier than three years after the entry into force of the revocation decision. The withdrawal of the licence based on para 4 shall also apply vis a vis the person's licence as a registered actuary under the Insurance Code and the Social Insurance Code. Article 97b. (New, SG No. 103/2006) (1) A registered actuary cannot be a spouse or direct or collateral relative to the fourth degree including in-law relation to the third degree of any other member of the management or control body of the health insurance company or member of the management or control body of any other health insurance company.(2) The registered actuary shall be elected by the general meeting of the health insurance company whereby he/she certifies in advance with a written statement the absence of circumstances pursuant to para 1. The health insurance company shall inform the Deputy Chairman of the decision for electing a registered actuary within seven days of the date of taking the decision by submitting a certified and stamped copy of the statement.(3) In the event of change of circumstances pursuant to para 1 or revocation of a licence of a registered actuary pursuant to para 97a, para 4 the general meeting of the health insurance company must relieve of duty the registered actuary and elect a new one within three months of becoming aware of the changed circumstances.Article 97c. (New, SG, No103/2005) (1) The registered actuary shall be responsible for elaborating sufficiently sizeable premiums and the accumulation of sufficient technical reserves, for the correct calculation of the solvency margin and the correct application of the actuary methods in the practice of the health insurance company.(2) In connection with the activities pursuant to para 1 the registered actuary shall:1. draft and certify the periodical actuary statements of the health insurance company;2. draft the annual actuary report by 31 March of the year following the year covered by the report.(3) When performing his/her duties a registered actuary shall have access to all necessary information, while the managing bodies and the employees of the health insurance company shall be obliged to offer him/her support and assistance.(4) The actuary shall immediately inform the commission of any circumstance known to him/her in the course of performing their function when this circumstance concerns the health insurance company and is a major violation of this Law or of the regulations for its enforcement or which could have an adverse effect on the activities of the health insurance company.(5) In the cases pursuant to para 4 the restrictions for disclosing information stipulated by a law, a regulation or a contract shall not apply. The registered actuary carries no responsibility for a bona fide disclosure of information pursuant to para 4 to the Financial Supervision Commission and its Deputy Chairman in charge of the Insurance Supervision department.(6) The format of the actuary certification and stamping and the form and contents of the actuary report and statements shall be determined with an Ordinance by the Financial Supervision Commission.Article 98. (Amended, SG No. 107/2002, SG No. 8/2003) A voluntary health insurance licence shall be issued by the Financial Supervision Commission.Article 99. (Amended, SG No. 107/2002) (1) (Amended, SG No. 8/2003) For the issuance of a licence, an application shall be submitted at the Financial Supervision Commission, stating the business name, the registered office and the mailing address of the applicant and enclosing therewith:1. articles of Association;2. (supplemented, SG No. 34/2006) a list of shareholders, stating name, Standard Public Registry Personal Number, permanent address, applicable to natural persons; business name, legal form of business organization, registered office, company case, address of the place of management and BULSTAT Code number, applicable to legal persons respectively standard identification code - for traders; amount of participating interest and declarations referred to in Article 94 (1) herein from the persons holding 10 per cent and more than 10 per cent of the capital of the company;3. a projection for the activity of the health insurance company during the first three years, including premium income, expenses on payment for health-care services and goods, operating expenses, amount of resources in special funds and provisions;4. a programme for investment of temporarily inactive resources during the first three years;5. (Supplemented, SG No. 8/2003) description of the health insurance packages offered by the company, the general conditions and the rates, as well as the technical basis for calculation of the premium rates and technical plans, of the said packages;6. specimens of the health insurance contracts;7. documents certifying conformity to the requirements covered under Article 97 herein in respect of the company officers and the actuary;8. written proof of deposit of the capital referred to in Article 93 herein.(2) (Amended, SG No. 8/2003) Should the document as submitted be found deficient, inaccurate or conflicting with the requirements of the law, within one month after receipt of the said documents the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department shall require that the health insurance company cure the non-conformities within one month. The Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department may approach the Minister of Health for an opinion on the contents and feasibility of the health insurance packages offered by the applicant for a licence.(3) (Amended, SG No. 8/2003) Within two months after submission of the application, the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department shall prepare a proposal for issuing or a refusal to issue a licence and shall lay the said proposal before the Financial Supervision Commission for consideration. The said time limit shall cease to run during the period referred to in Paragraph (2), commencing from the requirement to cure the non-conformities and concluding with the receipt of the additional documents.(4) (New, SG No. 8/2003) The Financial Supervision Commission shall pronounce on the application within one month after the proposal referred to in Paragraph (3) is laid before the Commission.Article 99a. (New, SG No. 107/2002) The grant of a licence may be refused if:1. the incorporation and any company officers do not satisfy the requirements of the law;2. the application for grant of a licence and the documents covered under Article 99 (1) herein make false or inaccurate statements or are deficient, and the non-conformities therein have not been cured within the time limit referred to in Article 99 (2) herein;3. the programme and the projection do not conform to the requirements of Article 90 herein;4. the general conditions of the contracts and the rates there under manifestly do not cover the health insurance risk, which has been actuarially proved by the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department;5. the health insurance packages offered are in conflict with and/or do not cover the minimum requirements of medical standards and/or the goods of good medical practice.Article 99b. (New, SG No. 107/2002) (1) Any licence granted to a health insurance company may be revoked where the said health insurance company:1. breaches any conditions on the basis of which the licence has been granted, or it is established that the documents on the basis of which the said licence has been granted make false statements;2. wrongfully refuses payment, makes part payment, or defaults on payment of any certain exigible liability under health insurance contracts;3. fails to carry on business in the course of one year after grant of the licence;4. engages in any other business unauthorized under this Act;5. does not observe the principle of voluntary contracting of health insurance;6. fails to submit the periodic annual statements as required under the law within the time limit established in this Act.7. (Amended, SG No. 85/2004) fails to submit a plan for attainment of the solvency margin or a short-term plan for additional raising of own funds, or should the plan as submitted be not implemented within the time limit as specified;8. finds itself in a state of insolvency within the meaning given by Article 608 or over indebtedness within the meaning given by Article 742 (1) of the Commerce Act; 9. is dissolved, and liquidation proceedings are initiated;10. fails to comply within three months with any prescriptions of the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department to eliminate other violations of the law;11. fails to comply with the requirements as to increase of capital under Article 93 (1) herein.(2) (New, SG No. 8/2003) The licence of the health insurance company shall be withdrawn by the Financial Supervision Commission.(3) (Renumbered from Paragraph (2), amended, SG No. 8/2003) Any act involving a refusal to grant a licence and a revocation of a licence, a refusal to approve health insurance packages, requirements to submit additional documentation and establishment of additional requirements, must be reasoned in detail by an official written opinion which shall set forth the grounds of the act.Article 99c. (New, SG No. 107/2002) (1) Upon revocation of the licence thereof, a health insurance company may not conclude any new health insurance contracts, extend the term of validity of any effective contracts, or modify the terms and conditions under any previously concluded contracts.(2) The revocation of the licence shall not exempt the health insurance company from the obligations assumed thereby under any concluded contracts.(3) (Amended and supplemented, SG No. 8/2003) Upon revocation of a licence, the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department shall appoint a conservator who shall exercise supervision over the activity of the health insurance company until appointment of a liquidator. The conservator shall be vested with the powers of the management and supervisory bodies of the health insurance company, and shall draw a remuneration for the account of the company, with the amount of the said remuneration being fixed by the Deputy Chairperson of the Financial Supervision Committee in charge of the Insurance Supervision Department.(4) Upon entry into effect of the decision to revoke the licence, the health insurance company shall be dissolved and liquidation proceedings shall be initiated on a motion by the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department by a judgment of the district court exercising jurisdiction over the place of registration of the health insurance company.Article 99d. (New, SG No. 107/2002, repealed, SG No. 8/2003).Article 99e. (New, SG No. 107/2002) (1) (Supplemented, SG No. 8/2003) Any new health insurance packages shall be offered after authorization by the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department, granted acting on a request by the health insurance company including a description of the packages, the general conditions and the rates, as well as the technical basis for calculation of the premium rates and the technical plans, of the said packages.(2) (Amended and supplemented, SG No. 8/2003) Any health insurance packages shall be modified after approval by the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department, granted acting on a request by the health insurance company including the modifications of the packages, the general conditions, the rates or the technical plans of the said packages.(3) (Amended, SG No. 8/2003) The Deputy Chairperson of the Financial Supervision Committee in charge of the Insurance Supervision Department shall issue an authorization under Paragraph (1) and an approval under Paragraph (2) within one month after receipt of the request from the health insurance company. The Deputy Chairperson may approach the Minister of Health for an opinion on the contents and feasibility of the proposed health insurance packages.(4) The Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department may refuse to grant authorization or approval where:1. the general conditions of the contracts and the rates thereunder manifestly do not cover the health insurance risk, which has been actuarially proved by the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department;2. the health insurance packages offered are in conflict with and/or do not cover the minimum requirements of medical standards and/or the rules of good medical practice;3. (New, SG No. 8/2003) the general conditions under the health insurance packages and contracts conflict with mandatory provisions of the Act or are not responsive to the requirements established by Article 88 (3) herein and the violations have not been eliminated within the time limit appointed by the Deputy Chairperson of the Commission.Section IV(New, SG No. 107/2002)Transformation, Dissolution, Liquidation and Bankruptcy of Health Insurance CompaniesArticle 99f. (New, SG No. 107/2002) The transformation, dissolution, liquidation and adjudication in bankruptcy of any health insurance company shall follow the procedure established by the Commerce Act, save in so far as otherwise provided for in this Act.Article 99g. (New, SG No. 107/2002) (1) (Previous Article 99g and amended, SG No. 8/2003, supplemented, SG No. 103/2005) Any corporate transformation of health insurance companies through merger, join by the formation of a new company, division by the formation of new companies and division by acquisition shall require an authorization from the Financial Supervision Commission.(2) (New, SG No. 8/2003, repealed, SG No. 103/2005). (3) (New, SG No. 8/2003, amended, SG No. 103/2005) Any corporate transformation of health insurance companies shall be performed under the terms and according to the procedure established by of Chapter Eleven of the Insurance Code and the Financial Supervision Commission Act. Article 99h. (New, SG No. 107/2002) (1) (Amended, SG No. 8/2003) Any health insurance company shall be dissolved solely by authorization of the Financial Supervision Commission, irrespective of the grounds for dissolution.(2) (Amended, SG No. 8/2003) Except in the general cases under the Commerce Act, dissolution of a health insurance company shall furthermore be proceeded with by a decision of the Financial Supervision Commission upon revocation of the licence for conduct of voluntary health insurance.(3) (Amended, SG No. 8/2003) In the cases referred to in Paragraph (1), within seven years after occurrence of the ground (for liquidation) the health insurance company shall notify the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department and shall submit for approval a plan for liquidation, which shall mandatorily provide for transfer of the effective health insurance contracts and shall nominate a liquidator. The Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department shall pronounce (upon the said plan and nomination) within thirty days after notification. Any ensuing alterations in the plan for liquidation, any change in the time limit for liquidation, as well as any nominations for new liquidator, shall be approved according to the same procedure.(4) (Amended, SG No. 103/2005) Upon dissolution of any health insurance company, liquidation proceedings shall follow the procedure established by Chapter Twelve, Section I of the Insurance Code. Article 99i. (New, SG No. 107/2002, supplemented, SG No. 8/2003, amended, SG No. 103/2003) Bankruptcy proceedings against a health insurance company shall be initiated solely on a petition by the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department upon insolvency of the health insurance company after the voluntary health insurance licence has been withdrawn. The provisions of Chapter Twelve, Section II of the Insurance Code shall apply, mutatis mutandis, to determine the cases of insolvency, as well as to any relations unregulated in this Act, associated with the bankruptcy of a health insurance company.Section V(New, SG No. 107/2002)State Supervision over Activity Comprehended inVoluntary Health Insurance(Title amended, SG No. 8/2003)Article 99j. (New, SG No. 107/2002) (1) (Amended, SG No. 8/2003) The Financial Supervision Commission shall exercise the state supervision over the activity comprehended in voluntary health insurance under the terms and according to the procedure established by this Act and by the Financial Supervision Commission Act. (2) (Amended, SG No. 8/2003) Upon exercise of the state supervision over the activity comprehended in voluntary health insurance, the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department shall:1. make proposals for the issuing, refusal to issue or withdrawal of a health insurance company licence, for issuing or refusal to issue an authorization for merger by the formation of a new company, division by the formation of new companies or division by acquisition of health insurance companies and for imposition of the coercive measures under Article 99m (3) herein;2. issue authorizations for new health insurance packages, general conditions and rates thereto and approve modifications in any such packages, conditions and rates which have been authorized;3. authorize the merger by acquisition of health insurance companies and the opening of a branch of a Bulgarian health insurance company abroad;4. authorize the transfer of an enterprise of a health insurance company or of health insurance contracts;5. approve the persons covered under Article 97 (2) to (7) herein;6. verify the validity of the declarations referred to in Article 95 herein and, if necessary, notify the authorities referred to in Article 96 (3) herein;7. approve other health insurance reserves within the meaning given by Item 4 of Article 90c (3) herein;8. approve the standard forms of declarations, statements, reports, information sheets and other documents as provided for under Chapter Three of this Act;9. petition the initiation of liquidation or bankruptcy proceedings against a health insurance company;10. control compliance with the voluntary nature of effecting voluntary health insurance;11. apply coercive administrative measures and impose sanctions in the cases and according to the procedure established by a law;12. make decisions on other matters related to the exercise of supervision over the activities of the health insurance companies, which are not placed within the competence of the Financial Supervision Commission.(3) (Amended, SG No. 8/2003, SG No. 85/2004) The documents required for the issuance of authorizations and approvals, as well as for exercise of the other supervisory powers of the authorities referred to in Paragraphs (1) and (2), shall be specified in an ordinance of the Financial Supervision Commission on authorizations and running supervision under this Act or by an order of the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department, with the exception of the documents under this Act.(4) (Repealed, SG No. 8/2003).(5) (Repealed, SG No. 8/2003).(6) (Amended, SG No. 8/2003) The individual administrative acts of the Financial Supervision Commission and of the Deputy Chairperson thereof in charge of the Insurance Supervision Department shall be appealable according to the procedure established by the Financial Supervision Commission Act. Article 99k. (New, SG No. 107/2002, amended, SG No. 8/2003) (1) The Financial Supervision Commission shall conduct inspections as to compliance with Chapter Three of this Act and of the statutory instruments of secondary legislation on the implementation thereof by the health insurance companies.(2) The Financial Supervision Commission shall issue an ordinance establishing the procedure for conduct of inspections.(3) (Amended, SG No. 103/2005) Health insurance company shall be under the obligation to inform in writing the Financial Supervision Commission about:1. all newly arisen facts and circumstance entitled to being entered in the Financial Supervision Commission's registers;2. changes in the entries in the commerce register.(4) (New, SG No. 103/2005) The obligation pursuant to para 3 shall be performed within seven day of the occurrence of the facts and circumstance whereby documents testifying the change shall be enclosed. Where an entry of a fact to circumstance must be made in the trade register the deadline for notification shall be seven days after the entry has been instituted.Article 99l. (New, SG No. 107/2002) (1) (Supplemented, SG No. 8/2003) Each health insurance company shall prepare the following annual and periodic reports and shall submit them to the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department:1. an Annual Financial Statement, prepared according to the requirements of the Accountancy Act: not later than the 31st day of March in the year next succeeding the accounting year;2. annual reference briefs, reports and attachments, completed in a standard form as endorsed by the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department: not later than the 30th day of April in the year next succeeding the accounting year;3. an annual actuarial report, completed in a standard form as endorsed by the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department: not later than the 30th day of April in the year next succeeding the accounting year;4. (New, SG No. 8/2003) quarterly statements, information sheets, reports and annexes completed in a standard form endorsed by the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department: not later than the end of the month next succeeding the relevant quarter;5. (New, SG No. 85/2004) monthly reference briefs completed in a standard form endorsed by the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department - by the end of the next succeeding month.(2) The annual actuarial report shall be prepared and signed by an actuary nominated by the health insurance company and approved by the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department.(3) (New, SG No. 85/2004) The Financial Supervision Commission shall issue an ordinance on the form and content of the annual financial statement of the health insurance companies.Article 99m. (New, SG No. 107/2002, amended, SG No. 8/2003) (1) The Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department shall apply the measures covered under Paragraph (2) where the said Deputy Chairperson ascertains that any health insurance company, any one of the persons covered under Article 97 (2) to (7) herein, or any shareholder owing 10 per cent or more of the shares have committed any of the following violations:1. violation of the provisions of this Act, of the statutory instruments of secondary legislation on the application thereof, of the Financial Supervision Commission Act, of acts of the Financial Supervision Commission and of the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department, as well as offering general conditions and clauses which have not been approved by the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department;2. jeopardizing the interests of the health insured persons;3. breach of the conditions whereunder the authorization or the licence has been issued;4. effecting transactions and performing actions which affect the organizational or financial stability of the health insurance company;5. obstruction of the exercise of the state supervision over the activity comprehended in voluntary health insurance.(2) In the cases under Paragraph (1), the Deputy-Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department shall apply the following coercive administrative measures:1. direct in writing that the violations committed be discontinued or eliminated, or that particular measures be taken;2. issue a prescription for attainment of a yield, security and liquidity of investments of the health insurance reserves and of the shareholders' equity;3. impose measures for rehabilitation of the financial position of the health insurance company;4. obligate in writing the health insurance company to increase the own funds thereof within an appointed time limit;5. determine the asset structure so as to guarantee payments under the health insurance contracts;6. suspend the payment of dividend;7. suspend a shareholder from exercising the voting power thereof;8. direct a shareholder in writing to transfer the shares held thereby within a fixed time limit.(3) In especially grave cases of violations covered under Paragraph (1), the Financial Supervision Commission, acting on a motion by the Deputy Chairperson thereof in charge of the Insurance Supervision Department, shall:1. order the health insurance company in writing to release one or more persons empowered to manage or represent the said company, or each one of the persons covered under Article 97 (2) to (7) herein, or2. appoint conservators vested with the powers referred to in Article 99c (3) herein for a specified period of time.Chapter FourSPECIALIZED MEDICAL SUPERVISION(Title amended, SG No. 107/2002)Article 100. (Amended, SG No. 107/2002) (1) The Minister of Health shall exercise specialized medical supervision over the quality of health-care activities and services as performed and the access to medical care in connection with the effecting of compulsory and voluntary health insurance.(2) The activity referred to in Paragraph (1) shall be ensured by a Specialized Medical Supervision Directorate at the Ministry of Health.Article 101. (Amended, SG No. 107/2002) The Specialized Medical Supervision Directorate shall perform the following functions:1. see to ensuring observance of medical standards and the rules of good medical practice in the contracts of the Regional Health Insurance Funds and the voluntary health insurance companies with medical care providers;2. see to ensuring the access of health insured persons to high-quality non-hospital and hospital medical and dental care;3. submit to the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department information obtained in the course of exercise of the powers vested in the Directorate under this Act regarding any natural or legal persons, medical-treatment and health-care facilities, who or which perform activities comprehended in voluntary health insurance without a licence;4. prepare an opinion of the Minister of Health on the contents and feasibility of the health insurance packages offered by the health insurance companies, within seven days after being requested to do so by the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department;5. prepare an annual report to the Minister of Health on the state and overall performance of health insurance.Article 102. (1) For the purpose of execution of the powers vested therein under this Act, the Specialized Medical Supervision Directorate shall have the right to require and inspect any contracts between:1. Regional Health Insurance Funds and medical care providers;2. health insurance companies and medical care providers;3. medical care providers and natural or legal persons for provision of medical care, other than the contracts referred to in Items 1 and 2.(2) The National Health Insurance Fund and the voluntary health insurance companies shall be obligated to submit a semi-annual reference brief to the Specialized Medical Supervision Directorate not later than at the end of the month next succeeding the lapse of the reporting semi-ennium. Any such reference brief shall be compiled in a standard form as endorsed by the Minister of Health and shall state particulars of the number of persons attended to, the type and amount of services provided under contracts with Regional Health Insurance Funds and voluntary health insurance companies.(3) Health insurance companies shall submit to the Specialized Medical Supervision Directorate a list of the medical care providers wherewith the said companies have concluded contracts, as well as information as shall be necessary for health statistics and monitoring of the health status of the population in a format and contents as shall be determined by an order of the Minister of Health.(4) Access to any personalized information referred to in Paragraphs (2) and (3) shall be restricted to the employees of the Directorate, and the said information may be used in this form solely by the said employees for performance of the controlling functions thereof under this Act. The said information shall be processed and used for the purposes of health statistics.(5) The employees of the Specialized Medical Supervision Directorate shall have the right to conduct on-site inspections at the National Health Insurance Fund, the Regional Health Insurance Funds, the health insurance companies and the medical care providers, as well as to require and obtain the requisite documents and information in connection with the performance of the powers vested therein under this Act.(6) The National Health Insurance Fund, the Regional Health Insurance Funds, the health insurance companies and the medical care providers shall be obligated to cooperate with the employees of the Specialized Medical Supervision Directorate and to submit thereto any documents, information, reference briefs and other mediums of information as the said employees may request in connection with the performance of the powers vested therein under this Act.(7) The employees of the Specialized Medical Supervision Directorate shall be bound by the obligation to respect the confidentiality of any information as shall come to the knowledge thereof in the course of exercise of the powers vested therein under this Act. Any such information may be disclosed solely with the consent of the persons who provided it, as well as in the cases expressly provided for by statute.Chapter FiveADMINISTRATIVE PENALTY PROVISIONSArticle 103. (1) Any employer's officer or any employer, who fails to submit any information as required under this Act or who discloses any false information regarding the insurance relationship thereof with the National Health Insurance Fund, shall be liable to a fine of BGN 500 or exceeding this amount but not exceeding BGN 1,000.(2) Any repeated and each subsequent violation shall be punishable by a fine of BGN 2,000.(3) Should the violation referred to in Paragraph (1) be committed by an insured person, the fine shall be BGN 30 or exceeding this amount but not exceeding BGN 50, and in the cases referred to in Paragraph (2), the said fine shall be BGN 150.Article 104. (1) (Amended, SG No. 110/1999, SG No. 107/2002) Any employer's officer or any employer, who fails to pay the (health) insurance contributions in respect of any persons which the said employer is under obligation to pay, shall be liable to a fine of BGN 1,000 or exceeding this amount but not exceeding BGN 2,000.(2) (Amended, SG No. 110/1999, SG No. 107/2002) Any repeated and each subsequent violation shall be punishable by a fine of BGN 2,000 or exceeding this amount but not exceeding BGN 4,000.(3) (New, SG No. 107/2002) Any self-insured person, who fails to pay the (health) insurance contribution due during a period exceeding three months, shall be liable to a fine of BGN 50 or exceeding this amount but not exceeding BGN 100, and any repeated violation shall be punishable by a fine of BGN 100 or exceeding this amount but not exceeding BGN 300.Article 105. (1) (Amended, SG No. 110/1999, SG No. 107/2002, SG No. 105/2005) Any violations covered under Article 103 and 104 herein shall be ascertained by written statements drawn up by the controlling authorities of the National Revenue Agency.(2) (Amended, SG No. 110/1999, SG No. 107/2002, SG No. 105/2005) The penalty decrees shall be issued by the executive director of the National Revenue Agency or an official thereby authorized.Article 106. (1) (New, SG No. 107/2002) Any Director of a Regional Health Insurance Fund, who wrongfully refuses to conclude a contract with any medical care provider, and should any such refusal be revoked according to the procedure established by Article 59 (6) and (7) herein, shall be liable to a fine of BGN 300 or exceeding this amount but not exceeding BGN 500, and any repeated violation shall be punishable by a fine of BGN 600 or exceeding this amount but not exceeding BGN 1,000.(2) (New, SG No. 107/2002) Any officer of a Regional Health Insurance Fund, who shall breach the provisions of Article 59 herein, will be liable to a fine of BGN 100 or exceeding this amount but not exceeding BGN 300, and any repeated violation shall be punishable by a fine of BGN 200 or exceeding this amount but not exceeding BGN 600.(3) (Renumbered from Paragraph (1), amended, SG No. 107/2002) Any violation of the provisions of this Act or of the statutory instruments for the application thereof, which is not covered under Paragraphs (1) and (2), Article 103 and 104 herein and Chapter Three herein, shall be punishable by a fine of BGN 100 or exceeding this amount but not exceeding BGN 500, and any repeated violation shall be punishable by a fine of BGN 200 or exceeding this amount but not exceeding BGN 1,000.(4) (Renumbered from Paragraph (2), amended and supplemented, SG No. 107/2002) Any violations covered under Paragraphs (1), (2) and (3) shall be ascertained by written statements drawn up by officers of the Specialized Medical Supervision Directorate, and the penalty decrees shall be issued by the Minister of Health.Article 106a. (New, SG No. 107/2002, repealed, SG No. 8/2003).Article 106b. (New, SG No. 107/2002) (1) Any member of a governing body of a medical-treatment facility, providing any medical services under contract which constitute voluntary health insurance within the meaning given by this Act, shall be liable to: a fine of BGN 100 or exceeding this amount but not exceeding BGN 200, applicable to any medical-treatment facilities referred to in Item 1 (a) and Item 2 (a) of Article 8 (1) of the Medical-Treatment Facilities Act; a fine of BGN 200 or exceeding this amount but not exceeding BGN 500, applicable to members of governing bodies of any medical-treatment facilities for non-hospital care; and a fine of BGN 500 or exceeding this amount but not exceeding BGN 1,500, applicable to members of governing bodies of any medical-treatment facilities for hospital care. Any repeated violation shall be punishable by a fine of BGN 200 or exceeding this amount but not exceeding BGN 400, a fine of BGN 500 or exceeding this amount but not exceeding BGN 1,000, or a fine of BGN 1,000 or exceeding this amount but not exceeding BGN 3,000, respectively.(2) Any member of a governing body or any natural person representing a legal person on the governing body of another legal person, other than in the cases covered under Paragraph (1), performing any activity which constitutes voluntary health insurance within the meaning given by this Act, shall be liable to a fine of BGN 5,000 or exceeding this amount but not exceeding BGN 10,000. Any repeated violation shall be punishable by a fine of BGN 10,000 or exceeding this amount but not exceeding BGN 20,000.(3) (Amended, SG No. 8/2003) Any officer of an employer or of a health insurance company, who discloses any particulars of a voluntary health insurance contract in violation of Article 88 (5) herein, shall be liable to a fine of BGN 500 or exceeding this amount but not exceeding BGN 1,000, and any repeated violation shall be punishable by a fine of BGN 1,000 or exceeding this amount but not exceeding BGN 2,000.(4) Any person, who is obligated to submit a declaration under Article 95 herein and who fails to submit any such declaration in due course or who submits any such a declaration making false statements, shall be liable to a fine of BGN 1,000 or exceeding this amount but not exceeding BGN 2,000, and any repeated violation shall be punishable by a fine of BGN 2,000 or exceeding this amount but not exceeding BGN 4,000.(5) Any health insurance company, which provides health insurance in violation of a licence granted under Article 98 herein or of an authorization under Article 99E (1) herein, or in violation of Article 82 (3) herein, shall be liable to a pecuniary penalty of BGN 5,000 or exceeding this amount but not exceeding BGN 10,000. Any repeated violation shall be punishable by a pecuniary penalty of BGN 10,000 or exceeding this amount but not exceeding BGN 15,000.(6) Any health insurance company, which breaches the provisions of Article 90c (1) or (4), Article 99e, Article 99f or Article 90g herein, shall be liable to a pecuniary penalty of BGN 2,500 or exceeding this amount but not exceeding BGN 10,000. Any repeated violation shall be punishable by a pecuniary sanction of BGN 5,000 or exceeding this amount but not exceeding BGN 15,000.(7) (Amended, SG No. 8/2003) Any health insurance company, which fails to notify the Financial Supervision Commission of the initiation of liquidation proceedings in the cases referred to in Article 99h (1) herein or which fails to fulfil the obligations thereof under Article 99h (3) herein, shall be liable to a pecuniary penalty of BGN 1,000 or exceeding this amount but not exceeding BGN 5,000.(8) (Amended, SG No. 8/2003) For any breach of the provisions of Chapter Three of this Act or of the statutory instruments for the application thereof, which is not covered in the cases under Paragraphs (1) to (7), the blameworthy person shall be liable to a fine of BGN 500 or exceeding this amount but not exceeding BGN 1,000, if a natural person, or to a pecuniary penalty of BGN 1,000 or exceeding this amount but not exceeding BGN 2,500, if a legal person. Any repeated violation shall be punishable by a fine of BGN 1,000 or exceeding this amount but not exceeding BGN 2,000 or by a pecuniary penalty of BGN 2,000 or exceeding this amount but not exceeding BGN 5,000.(9) (Amended, SG No. 8/2003) The violations under Paragraphs (1) to (8) shall be ascertained by written statements by officials of the administration of the Financial Supervision Commission, authorized to do so by the Deputy Chairperson of the said Commission in charge of the Insurance Supervision Department. The penalty decrees shall be issued by the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department.Article 107. (Amended, SG No. 110/1999) Imposition of any penalty under Articles 103 and 104 herein shall not excuse the offender from the obligation to pay the contributions due with period legal interest as applicable.Article 108. (1) The drawing up of written statements and the issuance, appeal against and execution of penalty decrees under this Act shall follow the procedure established by the Administrative Violations and Sanctions Act. (2) (Supplemented, SG No. 107/2002, SG No. 8/2003) The proceeds from any fines as imposed shall be credited in revenue to the National Health Insurance Fund or, if the fine is imposed on an employee of the National Health Insurance Fund or a Regional Health Insurance Fund, the proceeds shall be credited to Executive Budget revenue. The fines and the pecuniary penalties, imposed on health insurance companies for violations under Chapter Three of the Act, shall likewise be credited to Executive Budget revenue.(3) (New, SG No. 107/2002, amended, SG No. 105/2006) Up to 25 per cent of the amounts collected from fines, sanctions, the funds recovered from the providers of medical care according art. 45 and the interest due on them may be spend for material stimulation of the staff of the NHIF.Article 109. (Amended, SG No. 110/1999, SG No. 111/2004) (1) Any (health) insured persons, who are obligated to remit health insurance contributions for their own account, shall pay for the medical care as delivered thereto if they have failed to remit more than three monthly (health) insurance contributions due during a period of 15 months until the beginning of the month preceding the month of delivery of medical care. Any such persons shall be reinstated to the health insurance entitlement thereof as from the date of payment of the contributions due, and the sums paid for medical care as delivered shall be non-refundable.(2) Where the obligation to remit the health insurance contributions rests with the employer or with another person, the (health) insured person shall not forfeit the (health) insurance entitlement thereof through non-remittance of any such health insurance contributions.(3) Paragraph (1) shall not apply to any persons referred to in Article 40a herein.Article 110. (Amended, SG No. 110/1999) Any (health) insured, who shall fail to report for the preventive examinations as regulated in the National Framework Agreement, shall forfeit the insurance entitlement thereof for a period of one month.Article 111. (Amended, SG No. 107/2002) (1) The resources paid by the National Health Insurance Fund on treatment of any diseases caused by wilful injury to a person's own health, the health of other persons in a premeditated criminal offence, as well as for injury to the health of third parties committed in a state of alcoholic intoxication or use of narcotic or anaesthetic substances, shall be restored to the National Health Insurance Fund by the injurer with legal interest and with the expenses incurred on the recovery.(2) (Amended, SG No. 59/2007) In respect of the amount due under Paragraph (1), the Regional Health Insurance Fund shall have the option to move for the issuance of an immediate enforcement order according to the procedure established by Article 418 of the Code of Civil Procedure on the basis of an abstract of the books of account of the said Fund.SUPPLEMENTARY PROVISION 1. (Amended and supplemented, SG No. 110/1999, amended, SG No. 107/2002) Within the meaning given by this Act:1. "Highly specialized medical procedure" shall be a procedure which requires special medical skills and equipment required for handling of complicated diagnostic and treatment cases.2. "Basic package of health-care activities guaranteed by the budget of the National Health Insurance Fund" shall be activities specified in terms of type and scope, disaggregated by specialty, activities for treatment of specified diseases or of groups of diseases, which are accessible to all health insured persons in an amount, under terms, and according to a procedure determined in the National Framework Agreement.3. "Health-care activity" shall be any activity intended to protect, preserve and restore health.4. "Health insurance package" shall be a group of health-care services and goods regulated in terms of type and scope, which are fully or partly covered by health insurance companies under terms and according to a procedure regulated in health insurance contracts.5. "Health insurance contribution" shall be the sum which a natural or legal person shall remit for compulsory health insurance and which is calculated as a percentage of the contributory income as defined in this Act.6. "Health insurance premium" shall be the sum which a natural or legal person pays under a contract to a voluntary health insurance company.7. "Person in respect of whom a procedure for recognition of refugee status has been initiated" shall be a foreign citizen or a stateless person who has applied for a refugee status in the Republic of Bulgaria until conclusion of the procedure by an effective determination of the application thereof.8. "Personal professional code" shall be an alphanumeric means of identification regarding data on a medical care provider.9. "Medical care" shall represent a system of diagnostic, therapeutic, rehabilitative and preventive procedures provided by medical specialists.10. "Amount of medical care" shall be the quantity of medical procedures, services and goods accessible to the insured persons under specific terms regulated in the National Framework Agreement and in the voluntary health insurance contracts.11. "Scope of medical care" shall be the specific types of preventive, diagnostic, therapeutic, rehabilitative procedures and services performed by providers and the types of health-care goods provided, which are fully or partly covered by the National Health Insurance Fund or by the voluntary health insurance companies.12. "General conditions of health insurance packages and contracts" shall be standard terms regulating the rights and obligations of the parties, the terms, the procedure and time limits for payment of health insurance contributions and premiums, the terms and the procedure for use of health insurance services and delivery of health insurance goods, the terms, the procedure and time limits for cover of the expenses incurred thereon, as well as other conditions under the contracts.13. "Health insured person" shall be a natural person in respect of whom (health) insurance is paid according to the procedure established by this Act.14. "Health insurer" shall be the National Health Insurance Fund or a voluntary health insurance company.15. "Health insurance contributor" shall be a natural or legal person who or which pays the full amount or part of the health insurance contribution or premium in respect of a third party.16. "Repeated administrative violation" shall be any administrative violation which is committed within one year after the entry into force of a penalty decree whereby the offender was penalized for a violation of the same kind.17. "Enterprise" shall refer to any legal person, sole trader and unincorporated association which or who carries on commercial activities.18. "Self-insured person" shall be a natural person who pays the full amount of a health insurance contribution or premium in respect of himself or herself.19. "Rates of health insurance packages and under health insurance contracts" shall be the amounts of health insurance contributions and premiums for one or several health insurance packages, differentiated according to the number of packages, the number of insured persons under the contract, the age, the state of health of the insured persons and other factors.20. "Family member" shall be a spouse and any child who has not attained the age of 18 years or, if pursuing the studies thereof, who has not attained the age of 26 years or, if legally incapable or permanently disabled, irrespective of age.21. (New, SG No. 111/2004) "Dietetic foods for special medical purposes" shall be a group of special-purpose foods, which are produced or constituted for satisfaction of the specific nutritional requirements of patients and which are used under medical observation.22. (New, SG No. 95/2006) "Rules for coordination of social security schemes" shall be the rules introduced by Council Regulation (EEC) No. 1408/71 on the application of social security schemes to employed persons, to self-employed persons and to members of their families moving within the Community, who are not covered by compulsory health insurance on another ground, by Council Regulation EEC) No. 574/72 laying down the procedure for implementing Council Regulation (EEC) No 1408/71, and by all other regulations which supersede, supplement or amend the said regulations.TRANSITIONAL AND FINAL PROVISIONS 2. (1) Payment of health insurance contributions under Article 41 herein shall commence on the 1st day of July 1999.(2) The Minister of Health and the Minister of Finance may designate health-care facilities and medical offices where payment shall be effected in pursuance of contracts prior to the introduction of health insurance. 3. (1) (Amended, SG No. 62/1999, SG No. 113/1999) Performance of contracts between Regional Health Insurance Funds and non-hospital care providers shall commence on the 1st day of July 2000.(2) (Amended, SG No. 113/1999) Performance of contracts between Regional Health Insurance Funds and hospitals shall commence on the 1st day of July 2001.(3) (Amended, SG No. 113/1999) Until commencement of performance of contracts between Regional Health Insurance Funds and medical care providers covered under Paragraphs (1) and (2), state-owned and municipal-owned medical-treatment and health-care facilities shall be financed from the Executive Budget and the municipal budgets in a manner applied prior to the transformation of the said facilities.(4) (New, SG No. 41/2001) Any medical-treatment facilities for hospital treatment, which are commercial corporations wherein the State and/or a municipality holds an interest, shall be financed for the activity performed thereby from the Executive Budget or the municipal budgets according to Article 106 of the Medical-Treatment Facilities Act and by the National Health Insurance Fund by means of payment under contracts with the said facilities. Subsidization shall be provided proceeding from a one-year contract between the financing authority and the medical-treatment facility in accordance with the State Budget of the Republic of Bulgaria Act for the relevant year. Financing of the National Health Insurance Fund shall be effected proceeding from contacts in accordance with the budget of the National Health Insurance Fund. 4. The draft of a 2000 National Health Insurance Fund Budget Act shall be laid before the Council of Ministers in 1999 within the time limits provided for introduction of the draft of a (2000) State Budget of the Republic of Bulgaria Act. 5. Upon entry of this Act into force, the Minister of Health shall commence development of the structures and bodies therein provided. After constitution of the bodies of the National Health Insurance Fund, the said bodies themselves shall take over the development of structures and the performance of activities relating to compulsory health insurance. 6. The Council of Ministers, the regional meetings and the representative employer and trade union organizations shall designate the representatives thereof to the Meeting of Representatives of the National Health Insurance Fund within three months after the entry of this Act into force. 7. (1) The Meeting of Representatives of the National Health Insurance Fund shall hold its first sitting for election of a Governing Board and of a Review Board within five months after the entry of this Act into force.(2) Rules of Organization and Operation of the National Health Insurance Fund shall be adopted shall be adopted within one month after constitution of the Meeting of Representatives.(3) A competitive examination procedure for appointment of a Director of the National Health Insurance Fund shall be conducted within one month after constitution of the Governing Board. 8. (1) The Governing Board shall initiate a procedure for drafting and negotiation of a National Framework Agreement within one month after constitution of the bodies of the National Health Insurance Fund.(2) The rules specified in this Act shall be drafted and adopted within three months after constitution of the bodies of the National Health Insurance Fund. 9. (1) The Council of Ministers, the regional governors and the municipalities shall provide buildings and other logistical facilities for the Head Office of the National Health Insurance Fund and for the Regional Health Insurance Funds within six months after the entry of this Act into force.(2) Acting on motion by the Minister of Health, the Minister of Finance shall ensure financial resources for organization of the process of establishment of the National Health Insurance Fund and the Regional Health Insurance Funds. 10. The Bulgarian National Bank shall open capital accounts of the voluntary health insurance companies covered under Article 3 (2) herein, and interest equivalent to the period base interest rate as applicable shall accrue on the assets on any such accounts. 11. (Repealed, SG No. 111/2004, new, SG No. 11/2007) The following shall apply in respect of 2007, effective as from the 1st day of January:1. the rules of the 2006 National Framework Agreement under Items 3, 5, 7, 8, 9, 10 and 11 of Article 55 (2) herein;2. the conditions determined by the Governing Board of the National Health Insurance Fund which the medical care providers must satisfy, the procedure for conclusion of contracts therewith and other terms under Items 2, 4 and 6 of Article 55 (2) herein. 11a. (New, SG No. 113/2007) If the 2008 National Health Insurance Fund Budget Act has not been executed until 15 December 2007, as of 1 January 2008 the provisions of Article 55, paragraph 3, items 1 and 2 and paragraph 6 shall apply. 12. Within the time limits established under 4 herein, the administrative costs of the National Health Insurance Fund and the Regional Health Insurance Funds shall be borne by the Executive Budget. 13. In Paragraph (1) of Article 6 of the Transformation and Privatization of State-Owned and Municipal-Owned Enterprises Act (promulgated in the State Gazette No. 38 of 1992; amended and supplemented in No. 51 of 1994, Nos. 45, 57 and 109 of 1995, Nos. 42, 45, 68 and 85 of 1996; corrected in No. 86 of 1996; amended in Nos. 55, 61, 89, 98 and 122 of 1997, No. 39 of 1998; corrected in No. 41 of 1998), there shall be added the following item:"7. for the National Health Insurance Fund: from the proceeds under Item 5, but not less than 50 per cent thereof." 14. In the People's Health Act (promulgated in the State Gazette No. 88 of 1973; corrected in No. 92 of 1973; amended and supplemented in No. 63 of 1976, No. 28 of 1983, No. 66 of 1985, No. 27 of 1986, No. 89 of 1988, Nos. 87 and 99 of 1989, No. 15 of 1991; corrected in No. 24 of 1991; amended in No. 64 of 1993, No. 31 of 1994, No. 36 of 1995, Nos. 12, 87 and 124 of 1997, No. 21 of 1998) shall be amended and supplemented as follows:1. In Article 2, Paragraph (1) shall be amended to read as follows:"(1) Every Bulgarian citizen shall be entitled to affordable medical care and to health insurance regulated by statute."2. There shall be inserted a new article to read as follows:"Article 3a. The Executive Budget and the municipal budgets shall finance the health-care activities which citizens shall have the right to use at no charge and which are related to:1. emergency medical care;2. in-patient psychiatric care;3. blood transfusion;4. compulsory immunizations and compulsory treatment under the People's Health Act;5. epidemiologic and epidemic-control studies and procedures;6. health programmes and projects of national, regional and local importance;7. state sanitary control;8. investment expenditures;9. education, science and training;10. construction, overhaul, updating, improvements and remodelling of health-care facilities, as well as procurement of medical apparatus to a value exceeding BGN 10,000;11. health care administration;12. national centres and institutes which do not provide directly in therapeutic activities13. costly treatment beyond the scope of compulsory health insurance according to a procedure established by the Minister of Health;14. expenses incurred on public health care;15. expert certification of permanent disability and occupational disease."3. Article 3a shall be renumbered to become Article 3b.4. Article 4 shall be amended and supplemented as follows:(a) in Item 1 of Paragraph (2), after the words "medical services" there shall be added "in respect of the activities covered under Article 3a herein";(b) Paragraph (3) shall be repealed.5. In Article 4b (1) , after the words "the municipal budgets" there shall be added "proceeds from health insurance and cash payments";6. In Article 25i, there shall be added a new paragraph to read as follows:"(4) The rules referred to in Paragraph (3) shall be inapplicable to any services under contracts with the National Health Insurance Fund."7. Article 26 shall be amended and supplemented as follows:(a) Paragraph (1) shall be amended to read as follows:"(1) The persons covered under Article 2 (1) herein shall have the right to free choice and treatment by a physician and dentist for primary and specialist non-hospital care within the territory serviced by the relevant Regional Health Insurance Fund.";(b) Paragraphs (2), (3), (4) and (5) shall be repealed.8. In Article 53 (2), the words "the procedure established by Article 26 (5) herein" shall be replaced by "a procedure established by the Minister of Health".9. In Article 55 (4), the words "and medical treatments" shall be deleted. 15. In Paragraph (2) of Article 161 of the Commerce Act (promulgated in the State Gazette No. 48 of 1991; amended and supplemented in No. 25 of 1992, Nos. 61 and 103 of 1993, No. 63 of 1994, No. 63 of 1995, Nos. 42, 59, 83, 86 and 104 of 1996, Nos. 58, 100 and 124 of 1997, and No. 52 of 1998) the words "or insurance business" shall be replaced by "insurance business, or activity comprehended in voluntary health insurance". 16. In Littera (c) of Article 237 of the Code of Civil Procedure (promulgated in Transactions of the Presidium of the National Assembly No. 12 of 1952; amended and supplemented in No. 92 of 1952, No. 89 of 1953, No. 90 of 1955, No. 90 of 1956, No. 90 of 1958, Nos. 50 and 90 of 1961; corrected in No. 99 of 1961; amended and supplemented in the State Gazette No. 1 of 1963, No. 23 of 1968, No. 27 of 1973, No. 89 of 1976, No. 36 of 1979, No. 28 of 1983, No. 41 of 1985, No. 27 of 1986, No. 55 of 1987, No. 60 of 1988, Nos. 31 and 38 of 1989, No. 31 of 1990, No. 62 of 1991, No. 55 of 1992, Nos. 61 and 93 of 1993, No. 87 of 1995, and Nos. 12, 26, 37, 44 and 104 of 1996, Nos. 43, 55 and 124 of 1997), after the words "the banks" there shall be added "the Head Office of the National Health Insurance Fund and the Regional Health Insurance Funds". 17. The Republic of Bulgaria Defence and Armed Forces act (promulgated in the State Gazette No. 112 of 1995; amended and supplemented in No. 67 of 1996 and No. 122 of 1997) shall be amended as follows:1. In Article 242, Paragraphs (1) and (2) shall be repealed.2. In Article 243, Paragraphs (1), (2) and (3) shall be repealed. 18. In the Ministry of Interior Act (promulgated in the State Gazette No. 122 of 1997; modified by Constitutional Court Judgment No. 3 of 1998, promulgated in No. 29 of 1998), Article 224 shall be repealed. 19. (1) (Previous 19, SG No. 110/1999) The Council of Ministers, acting on motion by the Minister of Health, shall adopt the statutory instruments of secondary legislation related to the application of this Act within six months after the entry of the said Act into force.(2) (New, SG No. 110/1999, repealed, SG No. 105/2005). 19a. (New, SG No. 114/2003) (1) (Supplemented, SG No. 49/2004) Any persons owing more than three health insurance contributions for the period ending on the 31st day of December 2003 in respect of themselves and/or any members of the families thereof may submit a request in writing not later than the 30th day of September 2004 that the amounts due be rescheduled until the 31st day of December 2004.(2) The procedure established by Paragraph (1) shall apply to rescheduling of arrears of health insurance contribution to an amount of the principal exceeding BGN 50.(3) Such persons shall submit a request for rescheduling at the local division of the National Social Security Institute, specifying a time limit for payment of the arrears thereof.(4) The arrears shall be rescheduled as from the date of submission of the request by a decision of the head of the local division of the National Social Security Institute or of officials authorized thereby. Any such decision shall state the amount of the arrears, the time limit for payment of the arrears as rescheduled, and the total amount due until expiry of the said time limit. A copy of the said decision shall be served on the person.(5) Any persons whereof the arrears have been rescheduled shall retain the entitlement thereof as health insured persons.(6) Should the persons fulfil the conditions under Paragraphs (1) to (4), fines under Article 104 (3) herein shall not be imposed on the said person and the provision of Article 109 (1) herein shall not be applied.(7) A person shall lose the health insurance entitlement thereof if the said person:1. fails to redeem the arrears thereof under Paragraph (4) within the time limit of the rescheduling;2. fails to remit more than three health insurance contributions due for 2004; in such case, the effect of the rescheduling shall lapse as well.(8) Interest at the monthly rate of 1 per cent shall accrue on the amount due and the limitation applicable to the rescheduled arrears shall be tolled for the period of the rescheduled payment.(9) (Amended, SG No. 111/2004) Any persons working under an employment relationship or a civil-service relationship shall retain the health insurance entitlement thereof if the contributions have not been remitted by the employer.(10) No fines under Article 104 (1) and (2) herein shall be imposed on any employers who or which remit the health insurance contributions due for the period until the 31st day of December 2003 on or before the 31st day of December 2004. 19b. (New, SG No. 28/2004) The Council of Ministers shall adopt and promulgate in the State Gazette the ordinance referred to in Article 45 (4) herein not later than the 30th day of April 2004. 19c. (New, SG No. 45/2005) (1) Any Bulgarian citizens, who resided abroad for more than 183 days within a calendar year during the period commencing on the 1st day of January 2000 and ending on the 31st day of December 2004 and who are in arrears with health insurance contributions for their own account for the time of residence thereof abroad, may be exempt from the obligation to pay the said contributions if they have not made a free choice of a medical care provider who has concluded a contract with a Regional Health Insurance Fund under Article 4 (1) herein for the relevant calendar year.(2) (Amended, SG No. 105/2005) In the cases referred to in Paragraph (1), the persons, acting personally or through an authorized representative, may submit a statement application not later than the 31st day of December 2006, completed in a standard form endorsed by the executive director of the National Revenue Agency consulted with the Director of the National Health Insurance Fund.(3) The persons referred to in Paragraph (1) shall be reinstated to the health insurance entitlement thereof according to the procedure established by Article 40a herein. 19d. (New, SG No. 45/2005) (1) Any persons, who are in arrears with health insurance contributions for their own account until the 1st day of June 2005, may request that the amounts due be rescheduled until the 31st day of December 2006 if the said persons had an average monthly income per family member not exceeding BGN 200 for the period commencing on the 1st day of October 2004 and ending on the 31st day of March 2005.(2) The procedure established by Paragraph (1) shall apply to rescheduling of arrears of health insurance contributions to an amount of the principal exceeding BGN 50.(3) (Amended, SG No. 99/2005, SG No. 105/2005) For rescheduling of the amounts due, not later than the 31st day of December 2005 the persons referred to in Paragraph (1) shall submit a statement application to the territorial directorates of the National Revenue Agency, completed in a standard form endorsed by the executive director of the National Revenue Agency.(4) The arrears shall be rescheduled as from the date of submission of the request by a decision of the head of the local division of the National Social Insurance Institute or of persons authorized thereby. Any such decision shall state the amount due, the time limit for payment of the amount due as rescheduled, and the total amount due until expiry of the said time limit. One copy of the said decision shall be served on the person.(5) (Amended, SG No. 95/2006, effective 1.01.2007) Upon determination of the income referred to in Paragraph (1), account shall be taken of all gross income accruing to the family which is taxable under the Income Taxes on Natural Persons Act, as well as the pensions, benefits, allowances and study grants received, with the exception of the monthly social integration benefits paid under the Integration of Persons with Disabilities Act, the personal attendant benefit under Article 103 of the Social Insurance Code, the study grants of schoolchildren until completion of secondary education but not later than attainment of the age of 20 years, as well as the allowances received under the Social Assistance Act. (6) The persons referred to in Paragraph (1), who fail to pay more than three health insurance contributions for the period of rescheduling, shall pay the providers for the medical care provided thereto.(7) The limitation applicable to the rescheduled arrears shall be tolled for period of rescheduling.(8) Fines under Article 104 (3) herein shall not be imposed on the persons, the provision of Article 109 (1) herein shall not apply, and coercive measures for collection of the arrears shall not be taken if the conditions covered under Paragraphs (1) to (4) are fulfilled. 19e. (New, SG No. 45/2005) No interest shall accrue for the period commencing on the 1st day of June 2005 and ending on the 31st day of December 2006 on any arrears of health insurance contributions due from persons for their own account which arose until the 1st day of June 2005. 19f. (New, SG No. 102/2005) The Council of Ministers shall introduce of adoption by the National Assembly the drafts under Article 22(3), in case the 2006 National Framework Contract is not signed by 18 December 2005. 19g. (New, SG No. 103/2005) (1) The Ordinance pursuant to article 97a, para 2, item 5, article 3 and article 97c para 6 shall be adopted within a year after entry into force of the Insurance Code. The first test for acquiring actuary licence shall be held within 6 months of the entry into force of the Ordinance.(2) Within three years of the entry into force of the Insurance Code the health insurance companies must sign contracts for actuary services with licences registered actuaries.(3) Prior to expiry of the deadline pursuant to para 2 the persons that have been approved as actuaries of health insurance companies and are still in a procedure of approval under articles 97 or 99 can perform the duties of registered actuary for health insurance companies and can be elected as such. Prior to the expiry of the deadline pursuant to para 2 the position of registered actuary can be taken by persons who has been approved as actuaries of insurance or reinsurance companies or had been licensed as actuaries of pension companies and funds for supplementary pension schemes managed by these companies. 19h. (New, SG No. 100/2007) (1) Not later than the 30th day of September 2012, the Financial Supervision Commission shall adopt a report on the application of Article 88a (1) herein, which shall contain conclusions regarding the use of sex as an actuarial factor in the calculation of health insurance premiums, taking into account the latest actuarial data and statistical data, as well as the report of the European Commission on the application of Article 5 of Council Directive 2004/113/EC implementing the principle of equal treatment between men and women in the access to and supply of goods and services.(2) The report referred to in Paragraph (1) shall be provided to the Minister of Labour and Social Policy for the purposes of notifying the European Commission. 20. (Amended, SG No. 105/2005) The implementation of this Act shall be entrusted to the Minister of Health, to the bodies of the National Health Insurance Fund which represent the said Fund, and to the National Revenue Agency in the part relating to the collection of health insurance contributions.Lev Re-denomination Act Promulgated, State Gazette No. 20/1999, supplemented, SG No. 65/1999(effective 5.07.1999)......................................................................TRANSITIONAL AND FINAL PROVISIONS...................................................................... 4. (1) (Supplemented, SG No. 65/1999) Upon the entry of this Act into force, all figures expressed in old lev terms as indicated in the laws which will have entered into force prior to the 5th day of July 1999 shall be replaced by figures expressed in new lev terms, reduced by a factor of 1,000. The replacement of all figures expressed in old lev terms, reduced by a factor of 1,000, shall furthermore apply to all laws passed prior to the 5th day of July 1999 which have entered or will enter into force after the 5th day of July 1999.(2) The authorities, which have adopted or issued any statutory instruments of secondary legislation which will have entered into force prior to the 5th day of July 1999 and which contain figures expressed in lev terms, shall amend the said acts to bring them in conformity with this Act so that the amendments apply as from the date of entry of this Act into force...................................................................... 7. This Act shall enter into force on the 5th day of July 1999.Act to Amend and Supplement the Social Insurance CodePromulgated, State Gazette No. 1/2002 (effective 1.01.2002).....................................................................TRANSITIONAL AND FINAL PROVISIONS..................................................................... 92. The Health Insurance Act (promulgated in the State Gazette No. 70 of 1998; amended in Nos. 93 and 153 of 1998, Nos. 62, 65, 67, 69, 110 and 113 of 1999, No. 64 of 2000 and No. 41 of 2001) shall be amended and supplemented as follows:.....................................................................2. In Article 40:(a) in Item 8 of Paragraph (1), the words "Occupational Training and Unemployment Fund" shall be replaced by "Unemployment Fund";(b) throughout the item, the words "the double amount of the national minimum (monthly) wage" shall be replaced by "the minimum amount of the contributory income as fixed by the Public Social Insurance Budget Act", the words "the single amount of the national minimum (monthly) wage" shall be replaced by "one half of the minimum contributory income as fixed by the Public Social Insurance Budget Act", and the words "the ten-fold amount of the national minimum (monthly) wage" shall be replaced by "the maximum amount of the contributory income as fixed as fixed by the Public Social Insurance Budget Act."Act to Amend and Supplement the Health Insurance ActPromulgated, State Gazette No. 107/2002, supplemented, SG No. 119/2002(effective 27.12.2002), amended and supplemented, SG No. 8/2003(effective 1.03.2003).....................................................................TRANSITIONAL AND FINAL PROVISIONS 94. (1) The Council of Ministers, the representative trade union and employers organizations, the National Association of Municipalities and the representative organizations for protection of patient rights shall designate the representatives thereof to the Meeting of Representatives of the National Health Insurance Fund within fifteen days after the entry of this Act into force.(2) The first sitting of the Meeting of Representatives for election of a new Governing Board and Review Board shall be held within ten days after the expiry of the time limit established by Paragraph (1). The Meeting shall be convened by the Governing Board of the National Health Insurance Fund.(3) Within fifteen days after the conduct of the first sitting of the Meeting of Representatives, the said Meeting, acting on a motion by the Governing Board, shall adopt rules for conduct of a competitive examination procedure for Director of the National Health Insurance Fund, and the Governing Board shall announce the procedure.(4) Within one month after election of a Director of the National Health Insurance Fund, the Governing Board shall establish eligibility requirements, rules for conduct of competitive examination procedures, and shall announce competitive examination procedures for directors of Regional Health Insurance Funds.(5) The organizations covered under Paragraph (1), which have failed to designate the representatives thereof to the Meeting of Representatives in accordance with the requirements and according to the procedure established by this Act, shall become entitled to participate in the said Meeting after designation of the said representatives. The Meeting shall be legitimate even without the participation of any such representatives, provided that the requirements of Article 11 (of the Health Insurance Act) are complied with. 95. (Supplemented, SG No. 8/2003) The Council of Ministers or the Financial Supervision Commission, as the case may be, shall adopt and amend the statutory instruments of secondary legislation for the application of this Act within two months after the entry of the said Act into force. 96. The Minister of Health shall issue the ordinances referred to in Article 45 (2) and (3) (of the Health Insurance Act) and the other statutory instruments of secondary legislation and the amendments thereof, related to the application of this Act, within one month after the entry of the said Act into force. 97. The Ministry of Health and the State Social Insurance Supervision Agency shall deliver the registers and files of the companies referred to in 101 and 102, kept thereat, to the Insurance Supervision Agency within one month after the entry of this Act into force. 98. (Amended, SG No. 8/2003) The Financial Supervision Commission or, respectively, the Deputy Chairperson of the said Commission in charge of the Insurance Supervision Department, shall adopt and amend the internal instruments related to the application of this Act within three months after the entry of this Act into force. 99. The National Framework Agreement for 2003 shall be adopted in accordance with the provisions of this Act. 100. The National Health Insurance Fund shall bring the rules thereof and the other internal departmental instruments into conformity with the provisions of this Act not later than the 31st day of December 2002. 101. (1) (Amended, SG No. 8/2003) Any applications for licensing of voluntary health insurance companies, which were submitted prior to the entry of this Act into force and whereon no licence for provision of voluntary health insurance has been granted or refused to be granted by the State Social Insurance Supervision Agency, shall be considered by the Financial Supervision Commission under the terms and according to the procedure established by this Act.(2) To obtain a licence under this Act, any company referred to in Paragraph (1) shall be obligated to bring the organization and activity thereof into conformity with the requirements of the said Act. 102. (1) Any licences for provision of voluntary health insurance in respect of individual packages of activities, which were granted by the State Social Insurance Supervision Agency prior to the entry of this Act into force, shall remain in effect, with the companies holding any such licences being obligated to bring the organization and activity thereof into conformity with the requirements of this Act within nine months after the entry of the said Act into force.(2) (Amended, SG No. 8/2003) Within the time limit established by Paragraph (1), the licensed health insurance companies shall submit to the Financial Supervision Commission the documents and the information required for the grant of a licence under this Act. 103. (1) Any natural or legal person, who or which carries on activity comprehended in voluntary health insurance without having obtained an appropriate licence, irrespective of whether this business is expressly listed among the objects thereof, shall be obligated to bring the instruments of incorporation and organization thereof, as well as the business thereof, into conformity with this Act and to submit an application for licensing within six months after the entry of this Act into force.(2) Any person referred to in Paragraph (1), who or which shall fail to submit an application for licensing within the time limit established by Paragraph (1) or who or which shall be refused a licence, shall have no right to provide voluntary health insurance. 103a. (New, SG No. 8/2003) During the period commencing upon the receipt of a licence for activity comprehended in voluntary health insurance and ending upon the increase of capital to BGN 2 million, a health insurance company shall be obligated to invest part of its own funds to an amount equal to one third of the solvency limit, under the terms and according to the procedure established by Article 90e of the Health Insurance Act. 104. (1) Item 2 of 3 and Item 2 of 31 herein shall enter into force on the 1st day of January 2004. Until the entry into force of Item 2 of 31 herein, the National Health Insurance Fund may require that the source medical documents referred to in Article 68 (3) (of the Health Insurance Fund) cite, inter alia, the Standard Public Registry Personal Numbers of the physicians and dentists.(2) Item 3 of 26 herein in reference to Litterae (a), (b) and (c) of Item 2 of Article 55 (7) (of the Health Insurance Act) shall apply until the 1st day of January 2004.(3) (New, SG No. 119/2002) 21 shall enter into force on the 1st day of January 2003.2003 National Health Insurance Fund Budget ActPromulgated, SG No. 119/2002 (effective 1.01.2003)FINAL PROVISIONS..................................................................... 7. In the Act to Amend and Supplement the Health Insurance Act (State Gazette No. 107 of 2002), in 104 of the Transitional and Final Provisions, there shall be added the following new paragraph to read as follows:" (3) 21 shall enter into force on the 1st day of January 2003."..................................................................... 11. This Act shall enter into force on the 1st day of January 2003, with the exception of 7, which shall enter into force as from the date of promulgation of this Act in the State Gazette.Financial Supervision Commission Act Promulgated, State Gazette No. 8/2003 (effective 1.03.2003)TRANSITIONAL AND FINAL PROVISIONS..................................................................... 5. The statutory instruments of secondary legislation adopted on the application of the Public Offering of Securities Act, the Insurance Act, the Social Insurance Code, the Supplementary Voluntary Retirement Insurance Act, the Health Insurance Act and the Protection in Unemployment and Employment Promotion Act shall continue in effect insofar as they do not come into conflict with this Act...................................................................... 12. (1) The Health Insurance Act (promulgated in the State Gazette No. 70 of 1998; amended in Nos. 93 and 153 of 1998, Nos. 62, 65, 67, 69, 110 and 113 of 1999, Nos. 1, 31, and 64 of 2000, No. 41 of 2001, Nos. 1, 54, 74, 107 and 112 of 2202) shall be amended and supplemented as follows:.....................................................................25. Throughout the Health Insurance Act, the words "Insurance Supervision Agency" and "the Agency" shall be replaced by "the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department.".....................................................................Act to Amend and Supplement the Health Insurance ActPromulgated, State Gazette No. 49/2004 3. The words "the Compulsory Social Insurance Code" shall be replaced by "the Social Insurance Code" throughout this Act. 4. Any registered agricultural producer and tobacco grower producing unprocessed plant and/or animal produce shall not establish a final amount of contributory income in respect of such activity for 2004......................................................................Act to Amend and Supplement the Health Insurance ActPromulgated, State Gazette No. 111/2004 (effective 21.12.2004),amended, SG No. 46/2005 (effective 1.06.2005)TRANSITIONAL AND FINAL PROVISIONS 13. (1) Any persons, who are in arrears with more than three health insurance contributions upon the entry of this Act into force, shall be reinstated to the health insurance entitlement thereof if they pay, on or before the 31st day of January 2005, a lump sum to the amount of three health insurance contributions, at a rate set according to the procedure established by Article 29 (3) herein, on the minimum monthly amount of contributory income applicable to self-insured persons, as fixed by the Public Social Insurance Budget Act at the time of remittance of the contributions.(2) (Amended, SG No. 45/2005) The sums paid under Paragraph (1) shall be deducted from the amount of arrears in respect of health insurance contributions.(3) The sums referred to in Paragraph (1) shall be remitted according to the procedure established by Article 41 herein. 14. (1) In respect of any persons who have been reinstated to the health insurance entitlement thereof according to the procedure established by 13 herein, Article 109 (1) [of the Health Insurance Act] shall apply as from the 1st day of January 2006.(2) Any [health] insured persons referred to in Paragraph (1), who fail to pay more than three health insurance contributions for the period commencing on the 1st day of February 2005 and ending on the 1st day of January 2006, shall pay for the medical care delivered thereto to the providers. 15. Any persons referred to in Item 4 of Article 40 (2) [of the Health Insurance Act], who are in arrears with more than three health insurance contributions upon the entry of this Act into force, shall be reinstated to the health insurance entitlement thereof after the 1st day of January 2005 upon remittance of the first contribution for the account of the Executive Budget. 16. Any Bulgarian citizens, who are obligated to pay health insurance in respect of themselves and who reside abroad for more than 183 days within a calendar year, may be reinstated to the health insurance entitlement thereof under the terms and according to the procedure established by Article 40a [of the Health Insurance Act] without submitting an application to the National Social Security Institute...................................................................... 19. This Act shall enter into force as from the date of promulgation thereof in the State Gazette, with the exception of Item 1 (b) of 4 (regarding Item 3 of Article 40 (1) of the Health Insurance Act) and Item 2 (a) of 4 (regarding Item 4 [of Article 40 (2) of the Health Insurance Act), which shall enter into force as from the 1st day of January 2005.Act to Amend and Supplement the Health Insurance Act(SG No. 99/9.12.2005 - effective 1.11.2005)TRANSITIONAL AND FINAL PROVISIONS 2. (1) By 31 December 2005 the territorial units of the National Social Security Institute shall forward mandatory instructions to persons, who had not exercised their rights under 19d, paragraph 1 and their health insurance rights had not been re-established by 31 October 2005. These instructions shall show the amounts of liabilities and the time periods, to which they relate.(2) Forwarding the mandatory instructions shall suspend any prescription rights.(*) Act to Amend the Commercial Register Act(SG No. 80/2006, effective 3.10.2006) 1. In 56 of the Transitional and Final Provisions the words "1 October 2006" shall be replaced by "1 July 2007"........................................................................Act to Amend and Supplement the Health Insurance Act(Promulgated, SG No. 95/2006, effective 24.11.2006)TRANSITIONAL AND FINAL PROVISIONS 13. Not later than the 1st day of December 2006:1. the Minister of Health shall issue the ordinance referred to in Article 80a (3) herein;2. the Director of the National Health Insurance Fund shall endorse a standard form of a European health insurance card........................................................................ 15. This Act shall enter into force as from the day of promulgation thereof in the State Gazette, with the exception of 2, 3,.4, 5, 6, 7 and 10 herein, which shall enter into force as from the day of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union.Income Taxes on Natural Persons Act (Promulgated, SG No. 95/2006, effective 1.01.2007)TRANSITIONAL AND FINAL PROVISIONS 13. In the Health Insurance Act (promulgated in the State Gazette No. 70 of 1998; amended in Nos. 93 and 153 of 1998, Nos. 62, 65, 67, 69, 110 and 113 of 1999, Nos. 1, 31 and 64 of 2000, No. 41 of 2001, Nos. 1, 54, 74, 107, 112, 119 and 120 of 2002, Nos. 8, 50, 107 and 114 of 2003, Nos. 28, 38, 49, 70, 85 and 111 of 2004, Nos. 39, 45, 76, 99, 102, 103 and 105 of 2005, Nos. 17, 18, 30, 33, 34 and 59 of 2006), in Article 42 (1) and (3) and 19d (5) of the Transitional and Final Provisions, the words "the Personal Income Tax Act" shall be replaced by "the Income Taxes on Natural Persons Act"........................................................................ 21. This Act shall enter into force on the 1st day of January 2007, with the exception of 10, which shall enter into force on the day of promulgation of the Act in the State Gazette.Medicinal Products in Human Medicine Act TRANSITIONAL AND FINAL PROVISIONS(SG No. 31/2007)....................................................................... 18. (1) The Positive Drug List for 2008 shall be produced in pursuance hereof and it shall enter into force one year after the entry of this Act into force.(2) Until the entry into force of the Positive Drug List under para 1, medicinal products shall be negotiated in pursuance of Art. 45, paras 4 and 5 Health Insurance Act at least once a year, based on the effective Positive Drug List as of the moment of opening negotiations........................................................................ 37. This Act shall become effective on the day of its publication in the State Gazette with the exception of 22, which shall enter into force one year after the entry of this Act into force. Annex to Article 6 (2) (Amended and supplemented, SG No. 113/1999) Regional Health Insurance Funds 1. Blagoevgrad: municipalities of Bansko, Belitsa, Blagoevgrad, GotseDelchev, Gurmen, Hadjidimovo, Kresna, Petrich, Razlog, Sandanski, Satovcha,Simitli, Stroumyani, Yakorouda. 2. Bourgas: municipalities of Aytos, Bourgas, Kameno, Karnobat, MalkoTurnovo, Nessebur, Pomorie, Primorsko, Rouen, Soungourlare, Sozopol,Sredets, Tsarevo. 3. Varna: municipalities of Avren, Aksakovo, Beloslav, Byala, Devnya,Dolni Chiflik, Dulgopol, Provadia, Souvorovo, Varna, Vetrino, Vulchidol. 4. Veliko Turnovo: municipalities of Elena, Gorna Oryahovitsa,Lyaskovets, Pavlikeni, Polski Trumbesh, Souhindol, Strazhitsa, Svishtov,Veliko Turnovo, Zlataritsa. 5. Vidin: municipalities of Belogradchik, Boynitsa, Bregovo,Chouprene, Dimovo, Gramada, Koula, Makresh, Novo Selo, Rouzhintsi, Vidin. 6. Vratsa: municipalities of Borovan, Byala Slatina, Hairedin, Knezha,Kozlodoui, Krivodol, Mezdra, Mizia, Oryahovo, Roman, Vratsa. 7. Gabrovo: municipalities of Dryanovo, Gabrovo, Sevlievo, Tryavna. 8. Dobrich: municipalities of Balchik, Dobrich (Urban), Dobrich Rural,General Toshevo, Kavarna, Kroushari, Shabla, Tervel. 9. Kurdjali: municipalities of Ardino, Chernoochene, Djebel, Kirkovo,Kroumovgrad, Kurdjali, Momchilgrad. 10. Kyustendil: municipalities of Bobovdol, Boboshevo, Doupnitsa,Kocherinovo, Kyustendil, Nevestino, Rila, Sapareva Banya, Treklyano. 11. Lovech: municipalities of Apriltsi, Letnitsa, Loukovit, Lovech,Ougurchin, Teteven, Troyan, Yablanitsa. 12. Montana: municipalities of Berkovitsa, Boichinovtsi, Broussartsi,Chiprovtsi, Georgi Damyanovo, Lom, Medkovets, Montana, Vulchedrum, Vurshets,Yakimovo. 13. Pazardjik: municipalities of Batak, Belovo, Bratsigovo,Lessichovo, Panagyurishte, Pazardjik, Peshtera, Rakitovo, Septemvri,Strelcha, Velingrad. 14. Pernik: municipalities of Breznik, Kovachevtsi, Pernik, Radomir,Trun, Zemen. 15. Pleven: municipalities of Belene, Cherven Bryag, Dolna Mitropolia,Dolni Dubnik, Goulyantsi, Levski, Nikopol, Pelovo, Pleven, Pordim. 16. Plovdiv: municipalities of Asenovgrad, Brezovo, Hissarya,Kaloyanovo, Karlovo, Luki, Maritsa, Plovdiv, Purvomay, Rakovski, Rhodopi,Sadovo, Suedinenie. 17. Razgrad: municipalities of Isperih, Koubrat, Loznitsa, Razgrad,Samouil, Tsar Kaloyan, Zavet. 18. Rousse: municipalities of Borovo, Byala, Dve Mogili, Ivanovo,Rousse, Slivo Pole, Tsenovo, Vetovo. 19. Silistra: municipalities of Alfatar, Doulovo, Glavinitsa,Kaynardja, Silistra, Sitovo, Toutrakan. 20. Sliven: municipalities of Kotel, Nova Zagora, Sliven, Tvurditsa. 21. Smolyan: municipalities of Banite, Borino, Chepelare, Devin,Dospat, Madan, Nedelino, Roudozem, Smolyan, Zlatograd. 22. Sofia City: wards of Bankya, Ilinden, Iskur, Izgrev, KrasnaPolyana, Krasno Selo, Kremikovtsi, Lozenets, Lyulin, Mladost, Nadezhda, NoviIskur, Oborishte, Ovcha Koupel, Pancharevo, Podouyane, Serdika, Slatina,Sredets, Stoudentski, Triaditsa, Vitosha, Vrubnitsa, Vuzrazhdane. 23. Sofia Region: municipalities of Anton, Botevgrad, Bozhourishte,Chavdar, Chelopech, Dolna Banya, Dragoman, Elin Pelin, Etropole, Godech,Gorna Malina, Ihtiman, Koprivshtitsa, Kostenets, Kostinbrod, Mirkovo,Pirdop, Pravets, Samokov, Slivnitsa, Svoge, Zlatitsa. 24. Stara Zagora: municipalities of Bratya Daskalovi, Chirpan,Gourkovo, Gulubovo, Kazanluk, Muglizh, Opan, Pavel Banya, Radnevo, StaraZagora, Topolovgrad. 25. Turgovishte: municipalities of Antonovo, Omourtag, Opaka, Popovo,Turgovishte. 26. Haskovo: municipalities of Dimitrovgrad, Harmanli, Haskovo,Ivailovgrad, Lyubimets, Madjarovo, Mineralni Bani, Simeonovgrad, Stambolovo,Svilengrad. 27. Shoumen: municipalities of Hitrino, Kaolinovo, Kaspichan, NikolaKozlevo, Novi Pazar, Shoumen, Smyadovo, Veliki Preslav, Venets, Vurbitsa. 28. Yambol: municipalities of Bolyarovo, Elhovo, Straldja, Toundja,Yambol. For more information visit www.solicitorbulgaria.com id: 312 Fri, 01 Aug 2008 04:58:42 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-health-insurance-act-part-2 http://web.solicitorbulgaria.com/index.php/bulgarian-health-insurance-act-part-2 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/HEALTH_INSURANCE_ACT1.jpg EUR http://web.solicitorbulgaria.com/index.php/bulgarian-health-insurance-act-part-2 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Chapter OneGENERAL PROVISIONSArticle 1. This Act regulates health insurance in the Republic of Bulgaria and the social relationships therein involved.Article 2. (1) (New, SG No. 107/2002) Health insurance shall be an activity consisting of raising health insurance contributions and charging health insurance premiums, managing the resources raised, and spending the said resources on payment for health-care activities, services and goods as provided for in this Act, in the National Framework Agreement and in the voluntary health insurance contracts.(2) (Previous Article 2, SG No. 107/2002) There shall be compulsory and voluntary health insurance.Article 3. (1) (Amended, SG No. 107/2002, SG No. 105/2005) Compulsory health insurance shall be an activity comprehended in the raising of resources from compulsory social insurance contributions, fixed by statute, performed by the National Revenue Agency, the managing and the spending of the said resources on health-care activities, which shall… For more information visit http://www.solicitorbulgaria.com id: 313 Chapter OneGENERAL PROVISIONSArticle 1. This Act regulates health insurance in the Republic of Bulgaria and the social relationships therein involved.Article 2. (1) (New, SG No. 107/2002) Health insurance shall be an activity consisting of raising health insurance contributions and charging health insurance premiums, managing the resources raised, and spending the said resources on payment for health-care activities, services and goods as provided for in this Act, in the National Framework Agreement and in the voluntary health insurance contracts.(2) (Previous Article 2, SG No. 107/2002) There shall be compulsory and voluntary health insurance.Article 3. (1) (Amended, SG No. 107/2002, SG No. 105/2005) Compulsory health insurance shall be an activity comprehended in the raising of resources from compulsory social insurance contributions, fixed by statute, performed by the National Revenue Agency, the managing and the spending of the said resources on health-care activities, which shall be implemented by the National Health Insurance Fund and by the local divisions thereof, referred to as Regional Health Insurance Funds. Compulsory health insurance shall provide a basic package of health-care activities guaranteed by the budget of the National Health Insurance Fund.(2) Voluntary health insurance shall be supplementary and shall be implemented by joint-stock companies, registered under the Commerce Act and licensed under the terms and according to the procedure established by this Act. Chapter TwoCOMPULSORY HEALTH INSURANCESection IGeneral ProvisionsArticle 4. (1) (Previous Article 4, amended, SG No. 107/2002) Compulsory health insurance shall guarantee to the insured persons free access to medical care by means of a package of health-care activities of a specific type, scope and amount, as well as a free choice of a provider of such care, who or which has concluded a contract with a Regional Health Insurance Fund.(2) (New, SG No. 107/2002, effective 1.01.2004) The right of choice shall apply to the entire territory of Bulgaria and may not be restricted on geographic and/or administrative grounds.Article 5. Compulsory health insurance shall be implemented in accordance with the principles of:1. (Supplemented, SG No. 107/2002) compulsory participation in the raising of contributions;2. (Amended, SG No. 107/2002) participation of the State, the insurers and the employers in the management of the National Health Insurance Fund;3. solidarity of the insurers in benefiting from the resources raised;4. responsibility of the insureds for their own health;5. non-discrimination in use of medical care;6. (New, SG No. 107/2002) non-discrimination of medical care providers upon conclusion of contracts with the Regional Health Insurance Funds;7. (Renumbered from Item 6, SG No. 107/2002) self-management of the National Health Insurance Fund;8. (Renumbered from Item 7, SG No. 107/2002) contractual relationships between the National Health Insurance Fund and medical care providers;9. (New, SG No. 107/2002) a basic package of health-care activities, guaranteed by the budget of the National Health Insurance Fund;10. (New, SG No. 107/2002) free choice of medical care providers by the insureds;11. (Renumbered from Item 8 and supplemented, SG No. 107/2002) public openness of the operation of the National Health Insurance Fund and public control over the expenditures incurred thereby.Section IINational Health Insurance FundArticle 6. (1) There shall be established a National Health Insurance Fund as a legal person with a registered office in Sofia and for the purpose of implementing compulsory health insurance.(2) (Amended, SG No. 110/1999, SG No. 111/2004) The National Health Insurance Fund shall consist of a Head Office, of Regional Health Insurance Funds, and of divisions of the Regional Health Insurance Funds. The headquarters of the Regional Health Insurance Funds shall be determined according to a list adopted by the Council of Ministers, and the headquarters of the divisions thereof shall be determined by an order of the Director of the National Health Insurance Fund.(3) (Amended, SG No. 110/1999) The National Health Insurance Fund shall be governed by the following authorities:1. a Meeting of Representatives;2. a Governing Board;3. a Review Board;4. a Director.(5) The National Health Insurance Fund may not provide voluntary health insurance.Article 7. (Amended, SG No. 69/1999, SG No. 107/2002) (1) The Meeting of Representatives shall be composed of a total of thirty-seven representatives of the insureds, the employers, the municipalities and the State.(2) The quota of the insureds shall include six representatives of the representative trade union organizations and one representatives of the representative organizations for protection of patient rights, who shall be elected by the said organizations themselves.(3) There shall be six representatives of the employers in the Meeting, and they shall be elected by the representative employer organizations.(4) There shall be six representatives of the municipalities, and they shall be elected by the National Association of Municipalities in the Republic of Bulgaria.(5) (Supplemented, SG No. 112/2002) There shall be eighteen representatives of the State, and they shall be designated by the Council of Ministers, one of them mandatorily being the Executive Director of the National Revenue Agency.(6) The representative trade union and employer organizations shall be recognized according to Article 3 of the Labour Code. (7) The representative organizations for protection of patient rights shall be non-profit corporations satisfying the requirements established by Article 7a (1) herein.(8) The representatives of the trade union organizations, of the employer organizations and of the National Association of Municipalities in the Republic of Bulgaria shall be designated by the governing bodies of the said organizations at the national level, the representative of the organizations for protection of patient rights shall be designated by the General Meeting of representatives of the organizations referred to in Paragraph (7), and the representatives of the State shall be designated by the Council of Ministers within one month prior to the expiration of the term of office of any incumbent Meeting of Representatives.(9) The term of office of the Meeting of Representatives shall be four years.Article 7a. (New, SG No. 107/2002) (1) To qualify as a representative organization for protection of patient rights, an organization must:1. have as a purpose the protection of the rights and interests of all patients regardless of specific diseases, diagnoses and conditions;2. be registered as a non-profit association for pursuit of public benefit activities within the meaning given by the Non-profit Legal Persons Act; 3. be nationally representative, having regional chapters established within the entire territory of Bulgaria.(2) The governing bodies of any association referred to in Paragraph (1) may not include any officers of state bodies, bodies of local self-government and the local administration, employees of the National Health Insurance Fund, medical care providers, any members of managing and supervisory bodies of manufacturers, importers and traders in medicinal drugs, medicinal products and apparatus.(3) The Ministry of Health and the other state bodies, the bodies of local self-government and the local administration and the National Health Insurance Fund shall render assistance to the associations for protection of patient rights. The said associations shall have the right:1. to obtain information on drafts of statutory instruments concerning patient rights and interests;2. to report to the controlling authorities under this Act on any instances of violation of patient rights, to require information on the inspections conducted, on the results of the said inspections, and on the action taken.(4) The organizations referred to in Paragraph (1) may participate, through representatives thereof, in the work of advisory bodies, commissions and working groups with the authorities of the Ministry of Health and the National Health Insurance Fund.Article 8. The Meeting of Representatives shall perform the following functions:1. adopt, supplement and amend the Rules of Organization and Operation of the National Health Insurance Fund and cause the promulgation thereof in the State Gazette;2. elect and remove the members of the Governing Board and of the Review Board, fix the remuneration thereof, and adopt rules of procedure therefore;3. (Amended, SG No. 107/2002) adopt rules for conduct of a competitive examination procedure for a director of the National Health Insurance Fund;4. (Amended, SG No. 107/2002) approve the draft of an annual National Health Insurance Fund Budget Act;5. (Amended, SG No. 107/2002) approve the annual financial statement, the budget implementation report and the National Health Insurance Fund activity report;6. (Amended, SG No. 107/2002) discharge the Governing Board from liability for the reporting period.Article 9. (1) The Meeting of Representatives shall be called to an ordinary sitting at least once a year by the Governing Board with a written notice to the members of the Meeting. The said notice shall be published in the State Gazette and in two national daily newspapers. Any such notice must state the date of the meeting, which may not be earlier than 15 days after the date of publication in the State Gazette, the venue, the time, and the draft agenda. The materials on the draft agenda shall be dispatched by registered mail not later than ten days prior to the date of the meeting.(2) The Meeting shall elect a chairperson and a secretary, who shall draw up a list of those present and shall sign the minutes of proceedings at the sitting.Article 10. The Meeting of Representatives shall be called to an extraordinary sitting on the initiative of at least one third of the members thereof, of the chairpersons of the Governing Board or the Review Board, or on the requisition of at least one half plus one of the members of the said boards.Article 11. (1) For the valid transaction of business at any sitting of the Meeting of Representatives, not less than two thirds of the members thereof shall have to attend. Unless the required quorum is present, the sitting shall stand adjourned to a time within two hours thereafter and shall proceed provided at least one half of the members are present.(2) The Meeting of Representatives shall take action by a simple majority of those present, and the affirmative vote of not less than two thirds of those present shall be required for action on any matter covered under Items 1, 4 and 5 of Article 8 herein.Article 12. (1) (Amended and supplemented, SG No. 107/2002) Membership in the Meeting of Representatives shall cease prior to the expiration of a member's term of office by resignation, upon objective inability to perform the duties thereof for a period longer than one year, upon occurrence of the grounds covered under Articles 18 and 21 herein, or by decision of the authorities covered under Article 7 herein.(2) (Supplemented, SG No. 107/2002) Any seat in the Meeting as may fall vacant under Paragraph (1) or by a member's death shall be occupied by a replacement, elected according to the procedure established by Article 7 herein. Any such replacement shall remain in office until conclusion of the term of office of the Meeting of Representatives.Article 13. Both members and non-members of the Meeting of Representatives shall be eligible for election to the Governing Board.Article 14. (1) (Amended, SG No. 107/2002) The Governing Board shall be elected for a term of three years. The said Board shall have nine members. They shall elect from amongst their number a Chairperson of the Governing Board.(2) (New, SG No. 107/2002) Membership in the Governing Board shall cease prior to the expiration of a member's term of office by resignation, upon objective inability to perform the duties thereof for a period longer than one year, upon occurrence of the grounds covered under Articles 18 or 21 herein, or by resolution of the Meeting of Representatives.(3) (New, SG No. 107/2002) Any seat on the Governing Board as may be vacated by a pre-term cessation of membership or by a member's death shall be occupied by a replacement, elected to serve for the remainder of the term of office of the Board.(4) (Renumbered from Paragraph (2), SG No. 107/2002) The Governing Board shall hold ordinary meetings at least once every month.(5) (Renumbered from Paragraph (3), SG No. 107/2002) The Governing Board may be called to an extraordinary meeting by the Chairperson thereof, by one third of the members thereof, by the Director of the National Health Insurance Fund, or by the Chairperson of the Review Board.(6) (Renumbered from Paragraph (4), SG No. 107/2002) The Governing Board shall act in accordance with the law, the Rules of Organization and Operation of the National Health Insurance Fund, and the Rules of Procedure of the Governing Board.Article 15. (1) (Amended, SG No. 107/2002) The Governing Board shall perform the following functions:1. draft clauses amending and supplementing the Rules of Organization and Operation of the National Health Insurance Fund, lay any such clauses before the Meeting of Representatives, and the cause the promulgation of any such clauses in the State Gazette;2. draft, adopt and move for approval to the Meeting of Representatives Rules of Procedure of the Governing Board;3. adopt, amend and supplement the Rules of Organization and Operation of the National Health Insurance Fund on a motion by the Director of the National Health Insurance Fund;4. prepare a draft of an annual National Health Insurance Fund Budget and introduce lay the said draft before the Meeting of Representatives for approval;5. present to the Council of Ministers, care of the Minister of Health, the draft of an annual National Health Insurance Fund Budget as approved by the Meeting of Representatives;6. adopt the budget implementation report and the National Health Insurance Fund activity report, lay the said reports before the Meeting of Representatives for approval and, upon approval, lay the said reports before the Council of Ministers care of the Minister of Health;7. make decisions on conclusion of contracts for loan of money and on furnishing of security for any such contracts;8. draft rules for the conduct of a competitive examination procedure for a Director of the National Health Insurance Fund, move the said rules to the Meeting of Representatives for adoption, and conduct the said competitive examination procedure, with the Chairperson of the Board concluding a management contract with the winning applicant for a term of three years;9. establish eligibility requirements, rules for conduct of competitive examination procedures, and announce competitive examination procedures for directors of Regional Health Insurance Funds;10. appoint representatives who, together with the Director of the National Health Insurance Fund, shall participate in the negotiations on drafting and revising the National Framework Agreement;11. jointly with the Director of the National Health Insurance Fund, sign the National Framework Agreement and cause the promulgation thereof in the State Gazette;12. exercise control over the day-to-day activity of the Director on implementation of the budget, performance of the National Framework Agreement, and the operation of the National Health Insurance Fund;13. make decisions on disbursements from the reserve of the National Health Insurance Funds for additional health insurance payments;14. make decisions on internal re-allocation of resources for administrative costs and of resources for acquisition of fixed assets within the limits set by the National Health Insurance Fund budget as endorsed;15. make decisions on conclusion of transactions in excess of a value fixed by the Rules of Organization and Operation of the National Health Insurance Fund.(2) The Governing Board may take action if not less than two thirds of the members thereof are present and not fewer than five vote in favour.(3) The members of the Governing Board shall be solidarily liable for any detriment culpably inflicted on the National Health Insurance Fund.(4) The Director of the National Health Insurance Fund shall also attend the meetings of the Governing Board.Article 16. Only members of the Meeting of Representative shall be eligible to the Review Board.Article 17. (1) (Amended, SG No. 107/2002) The Review Board shall be elected for a term of three years. The said Board shall have five members. They shall elect from amongst their number a Chairperson of the Review Board.(2) The Review Board shall exercise overall supervision over the performance of the Governing Board, the Director of the National Health Insurance Fund, and the directors of the Regional Health Insurance Funds.(3) The Review Board shall act in accordance with the effective legislation and with the rules and regulations of the National Health Insurance Fund.(4) The Review Board shall meet at least once every three months and shall be convened by the Chairperson thereof or on the requisition of at least two of the members thereof. The said Board shall take action provided a quorum of four of the members thereof is present, by an open ballot and a simple majority of those present. Voting shall be obligatory.(5) The members of the Review Board shall be limited to two terms of office.Article 18. (1) The following persons shall be ineligible for membership in the Meeting of Representatives, the Governing Board, or the Review Board:1. any National Representative or government minister;2. any medical care provider under this Act;3. any member of the governing or auditing bodies of other organizations which effect social insurance or carry on any other insurance business;4. any Director of a Regional Health Insurance Fund, the spouse thereof, or any lineal or collateral relative thereof up to the fourth degree of consanguinity;5. any former member of the managing or supervisory body of a commercial corporation, or any former general partner in a corporation which has been dissolved by reason of bankruptcy leaving any creditor unsatisfied;6. any sole trader who has become bankrupt, leaving any creditor unsatisfied;7. any person disqualified from holding a position of property accountability;8. any person convicted of a premeditated offence at public law.(2) One and the same person may not be concurrently member of the Governing Board and of the Review Board.Article 19. (Amended, SG No. 107/2002) (1) Eligibility for the office of Director of the National Health Insurance Fund shall be limited to persons who:1. hold the educational qualification degree of Master, conferred thereon upon graduation from a higher educational establishment;2. hold a Master's degree, or have attained specialist qualifications or possess licensed professional qualifications in Health Management;3. possess at least three years of professional experience in the sphere of health-care management, banking, insurance, or social insurance.(2) The management contract with a person qualified under Paragraph (1) shall be terminated prior to the expiration of the term of validity of the said contract by decision of the Governing Board on any of the following grounds:1. death;2. submission of a three months' advance notice of resignation by the Director;3. entry into effect of a sentence for a premeditated offence at public law;4. mutual accord;5. ascertainment that the Director commits or suffers the commission of gross or systematic violations of the provisions regarding the principles of implementation of health insurance activity;6. objective inability to discharge the duties thereof as Director.(3) Upon pre-term termination of the term of office of a Director of the National Health Insurance Fund, the Governing Board shall designate a person possessing the qualifications required for the office of Director of the National Health Insurance Fund as acting holder of the said office until conduct of a competitive examination procedure. In such a case, the Chairperson of the Governing Board shall announce a competitive examination procedure within one month and shall conduct the said procedure within three months.(4) The Director of the National Health Insurance Fund shall perform the following functions:1. represent the National Health Insurance Fund inside Bulgaria and abroad;2. organize and direct the day-to-day operation of the National Health Insurance Fund in accordance with the law, the Rules of Organization and Operation of the National Health Insurance Fund, the resolutions of the Meeting of Representatives, the decisions of the Governing Board, and the management contract;3. (new, SG No. 95/2006) endorse standard forms and other documents related to the conduct of compulsory health insurance in connection with the activities assigned to the National Health Insurance Fund, which are mandatory for all natural and legal persons;4. (renumbered from Item 3, SG No. 95/2006) organize the conduct of competitive examination procedures for directors of Regional Health Insurance Funds, conclude, modify and terminate the contracts with the Deputy Directors of the National Health Insurance Fund, with the directors of Regional Health Insurance Funds, and with the employees at the Head Office of the National Health Insurance Fund;5. (renumbered from Item 4, SG No. 95/2006) submit to the Governing Board a draft of an annual National Health Insurance Budget Act;6. (renumbered from Item 5, SG No. 95/2006) conclude transactions up to a value fixed in the Rules of Organization and Operation of the National Health Insurance Fund;7. (renumbered from Item 6, SG No. 95/2006) move to the Governing Board a decision on any transactions in excess of the value referred to in Item 5 and a decision on use of resources from the reserve of the National Health Insurance Fund;8. (renumbered from Item 7, SG No. 95/2006) jointly with the Governing Board, prepare a draft of Rules of Organization and Operation of the National Health Insurance Fund and provisions amending and supplementing the said Rules;9. (renumbered from Item 8, SG No. 95/2006) submit to the Governing Board a draft of Rules of Organization and Operation of the Regional Health Insurance Funds;10. (renumbered from Item 9, SG No. 95/2006) prepare a budget implementation report and a National Health Insurance Fund activity report and present the said reports to the Governing Board.Article 19a. (New, SG No. 107/2002) (1) The National Health Insurance Fund shall have not fewer than three Deputy Directors, who shall assist the Director in the spheres of finance, medical activities and information technology activity, respectively.(2) Eligibility for the office of Deputy Director of the National Health Insurance Fund shall be limited to persons possessing the following qualifications:1. hold the educational qualification degree of Master, conferred thereon upon graduation from a higher educational establishment;2. possess at least three years of relevant previous experience.(3) The functions of the Deputy Directors shall be regulated in the Rules of Organization and Operation of the National Health Insurance Fund.Article 20. The Director of any Regional Health Insurance Fund shall perform the following functions:1. represent the National Health Insurance Fund at the local level within the powers thereto granted by the Governing Board of the National Health Insurance Fund;2. organize and direct the operation of the Regional Health Insurance Fund in accordance with the law, the Rules of Organization and Operation of the National Health Insurance Fund, the resolutions of the Meeting of Representatives, the decisions of the Governing Board and of the Director of the National Health Insurance Fund, and the Rules of Organization and Operation of the Regional Health Insurance Fund;3. conclude, modify and terminate the contracts with the employees of the respective Regional Health Insurance Fund;4. conclude, modify and terminate the contracts with medical care providers within the territory serviced by the Regional Health Insurance Fund in accordance with the law, the National Framework Agreement, and the Rules of Organization and Operation of the National Health Insurance Fund and the Regional Health Insurance Fund, respectively.Article 21. (Amended, SG No. 107/2002) (1) The following persons shall be ineligible for appointment to the office of Director and Deputy Director of the National Health Insurance Fund:1. any person not holding Bulgarian citizenship;2. any interdict;3. any person convicted of a premeditated offence at public law, or any person disqualified, according to the established procedure, from holding a position of property accountability;4. any member of the Governing Board and of the Meeting of Representatives;5. the spouse, or any lineal relative up to any degree of consanguinity, or any collateral relative up to the fourth degree of consanguinity, to any of the persons referred to in Item 4;6. any sole trader, general partner in a commercial corporation, liquidator, business attorney, commercial agent, or managerial agent;7. any member of a managing or supervisory body, or any shareholder of any commercial corporation whereof the objects are provision of voluntary health insurance;8. any National Representative, government minister or deputy minister;9. any municipality mayor;10. any holder of a leadership or auditing position in any political party;11. any person hired under an employment relationship, with the exception of tutors at a higher school.(2) The Directors and the employees of the Regional Health Insurance Funds and the National Health Insurance Fund may not engage in any competitive activity and may not be medical care providers under this Act.Section IIIFinancial Structure of the National Health Insurance FundArticle 22. (1) (Previous Article 22, SG No. 102/2005) The budget of the National Health Insurance Fund shall be a financial master plan for raising and disbursing of the cash resources of compulsory health insurance and shall be separated from the state budget.(2) (New, SG No. 102/2005, amended, SG No. 105/2006) The annual value of the expenditures for the types of medical care paid by the National Health Insurance Fund shall constitute an integral part of the National Health Insurance Fund for the respective year.(3) (New, SG No. 102/2005, repealed, SG No. 113/2007). Article 23. (1) The revenues of the National Health Insurance Fund shall be raised from:1. insurance contributions;2. (new, SG No. 113/2007) transfers from budget institutions, within the meaning of 1 of the supplementary provision of the Accountancy Act, for insurance instalments of the persons referred to in Article 40, paragraph 1, items 4 and 8 and paragraphs 2 and 3;3. (renumbered from Item 2, SG No. 113/2007) interest income and income from the management of the property of the National Health Insurance Fund;4. (renumbered from Item 3, SG No. 113/2007) income credited to health insurance by virtue of other statutes;5. (renumbered from Item 4, SG No. 113/2007) refunds of insurance expenses made in the instances prescribed in the relevant statutory instruments;6. (renumbered from Item 5, SG No. 113/2007) proceeds from fines and penalty interest;7. (renumbered from Item 6, SG No. 113/2007) fees fixed in a rate schedule by the Council of Ministers;8. (renumbered from Item 7, SG No. 113/2007) portions of the residual distribution of the assets of debtor commercial corporations which have been declared in liquidation;9. (new, SG No. 95/2006, effective as from the day of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union, renumbered from Item 8, SG No. 113/2007) action subsidies from the State budget for fulfilment of obligations which arise from the application of the rules for coordination of social security schemes;10. (renumbered from Item 8, SG No. 95/2006, effective as from the day of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union, renumbered from Item 9, SG No. 113/2007) donations, legacies and devises;11. (amended, SG No. 59/2006, renumbered from Item 9, SG No. 95/2006, effective as from the day of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union, renumbered from Item 10, SG No. 113/2007) other sources, including subsidies (transfers) from the executive budget, inter alia through the budget of the Ministry of Health under Item 2 of Article 82 (1) of the Health Act. (2) (Amended, SG No. 110/1999) In the event of a deficiency of resources, short-term interest-free loans may be contracted from the Executive Budget, or resources may be obtained on credit from other institutions.Article 24. The resources of the National Health Insurance Fund shall be disbursed on:1. payment for medical care as specified in Article 45 herein, as contracted by the National Framework Agreement and by the contracts with the providers;2. (amended, SG No. 113/2007) administrative costs of health insurance activities, as amounting to 3% of the expenditures for the respective year laid down by the National Health Insurance Fund Budget Act;3. (new, SG No. 113/2007) issuance of documents referred to in Article 80a, paragraph 1;4. (renumbered from Item 3, SG No. 113/2007) publishing activities, within the limits of the administrative costs of health insurance activities of the National Health Insurance Fund;5. (renumbered from Item 4, SG No. 113/2007) acquisition of movable and immovable property and other investment expenses for the needs of the National Health Insurance Fund;6. (new, SG No. 1/2002, amended, SG No. 105/2005, renumbered from Item 5, SG No. 113/2007) fees for servicing the collection of health insurance contribution by the National Revenue Agency;7. (new, SG No. 95/2006, effective as from the day of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union, renumbered from Item 6, SG No. 113/2007) medical care provided in accordance with the rules for coordination of social security schemes;8. (renumbered from Item 5, SG No. 1/2002, renumbered from Item 6, SG No. 95/2006, effective as from the day of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union, renumbered from Item 7, SG No. 113/2007) other expenses.Article 25. The National Health Insurance Fund shall mandatorily form a reserve.Article 26. (1) The reserve of the National Health Insurance Fund shall be raised from:1. (amended, SG No. 107/2002, SG No. 113/2007) 10% of the collected revenue from health insurance instalments and the transfers for health insurance instalments from other budgets;2. income from other sources.(2) The resources in the reserve shall be used to pay expenses incurred in the event of significant departures from the uniform disbursement of resources, or of a local imbalance in the demand for medical care.(3) (Repealed, SG No. 107/2002).Article 27. (1) (Repealed, SG No. 107/2003).(2) Any temporarily inactive resources and the resources in the reserve of the National Health Insurance Fund may be deposited on bank accounts or invested in government securities.(3) The banks entitled to handle the resources of the National Health Insurance Fund shall be designated jointly by the Bulgarian National Bank and the Ministry of Finance. Among such banks as designated by the Bulgarian National Bank and the Ministry of Finance, the Governing Board of the National Health Insurance Fund shall select such whereto it shall entrust the right to handle the resources of National Health Insurance Fund.Article 28. The Director of the National Health Insurance Fund shall be a first-level spending unit for the resources of the National Health Insurance Fund, and the directors of the regional health insurance funds shall be second-level spending units for the said resources.Article 29. (1) (Supplemented, SG No. 107/2002) Care of the Minister of Health, the Governing Board of the National Health Insurance Fund shall lay a draft of a National Health Insurance Budget Act before the Council of Ministers within the time limit provided for submission of the draft of a State Budget of the Republic of Bulgaria Act for the next succeeding calendar year.(2) (Amended, SG No. 110/1999) The draft of an annual National Health Insurance Fund Budget Act shall be debated by the National Assembly simultaneously with the drafts of a State Budget Act and of a Public Social Insurance Budget Act.(3) (Amended, SG No. 107/2002) The National Health Insurance Fund Budget Act shall furthermore mandatorily set forth the rate of the compulsory health insurance contribution, the revenues and expenditures according to the budget classification, as well as the expenses on health insurance payments disaggregated for:1. (Amended, SG No. 119/2002) primary non-hospital medical care;2. specialist non-hospital medical care;3. dental care;4. medical diagnostic imaging activities;5. (Amended and supplemented, SG No. 111/2004) medicinal drugs for treatment at home, medical goods and dietetic foods for special medical purposes;6. hospital medical care;7. other health insurance payments as provided for in the National Framework Agreement.8. (new, SG No. 95/2006, effective as from the day of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) medical care provided in accordance with the rules for coordination of social security schemes.(4) (New, SG No. 110/1999) Should the draft of a National Health Insurance Budget Act be not passed by the National Assembly until the commencement of the budget year, the insurance revenues shall be collected and the insurance expenses shall be made in conformity with the budget for the last preceding year as endorsed, and up to one-twelfth of the expenses, provided for in the budget for the last preceding year, shall be spent on the maintenance of the National Health Insurance Fund.Article 30. (1) (Amended, SG No. 107/2002) Care of the Council of Ministers, the annual budget implementation report and the National Health Insurance activity report shall be laid before the National Assembly by the Governing Board on or before the 30th day of June in the year next succeeding the report year.(2) (Supplemented, SG No. 107/2002) The National Assembly resolution to adopt the budget implementation report and the National Health Insurance Fund activity report shall be promulgated in the State Gazette.Article 31. The National Health Insurance Fund may not own any medical offices, laboratories, health-care facilities or pharmacies.Article 32. (Repealed, SG No. 153/1998, new, SG No. 59/2006) The National Health Insurance Fund shall implement the collection, processing and control of the reports of the medical-treatment facilities for hospital care in respect of the activities subject to the National Framework Agreement.Section IVInsured Persons. Rights and ObligationsArticle 33. (1) (Amended, SG No. 110/1999, redesignated from Article 33, SG No. 95/2006, effective as from the day of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The following shall be covered by compulsory insurance provided by the National Health Insurance Fund:1. all Bulgarian citizens who are not citizens of another State as well;2. all Bulgarian citizens who are citizens of another State as well and reside permanently within the territory of the Republic of Bulgaria;3. (amended, SG No. 18/2006) all foreign citizens or stateless persons who have been permitted long-term residence in the Republic of Bulgaria, save as otherwise provided by an international treaty whereto the Republic of Bulgaria is a party;4. (supplemented, SG No. 54/2002) all persons who have been recognized refugee status or humanitarian status or who has been afforded a right of asylum (in Bulgaria);5. (new, SG No. 18/2006) Foreign students and PhD fellows in Bulgarian universities and scientific institutes pursuant to Decree of the Council of Ministers No. 103 of 1993 concerning the organization of education among Bulgarians abroad (published in SG No. 48/1993, amended No. 52/1999, No. 54/1995, No. 20/1996, No. 38 and 73/1999, No. 101/2002, No. 89/2004) and Decree of the Council of Ministers No. 228/1997 for admitting citizens of the Republic of Macedonia to state universities in the Republic of Bulgaria (published SG No. 42/1997, amended No. 72/1999, No. 101/2002).6. (new, SG No. 95/2006, effective as from the day of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) persons other than such referred to in Items 1 to 5, in respect of whom the legislation of the Republic of Bulgaria is applied according to the rules for coordination of social security schemes.(2) (New, SG No. 95/2006, effective as from the day of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The persons who, according to the rules for coordination of social security schemes, are subject to health insurance in another Member State, shall not be covered by compulsory insurance provided by the National Health Insurance Fund.Article 34. (1) The health insurance obligation shall arise as follows:1. in respect of all Bulgarian citizens: as of the date of entry into force of this Act, and in respect of such citizens newly born thereafter: as of the date of birth;2. (amended, SG No. 107/2002, SG No. 95/2006, effective as from the day of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) in respect of all persons covered under Item 3 of Article 33 (1) herein: as of the date of receipt of a permanent residence permit;3. (amended, SG No. 54/2002, SG No. 95/2006, effective as from the day of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) in respect of all persons covered under Item 4 of Article 33 (1) herein: as of the date of initiation of a procedure for recognition of refugee status or for affording a right of asylum;4. (new, SG No. 18/2006, amended, SG No. 95/2006, effective as from the day of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) in respect of all persons covered under Item 5 of Article 33 (1) herein: since the date of enrolment at the relevant higher school or research organization;5. (new, SG No. 95/2006, effective as from the day of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) in respect of all persons covered under Item 6 of Article 33 (1) herein: as from the date of occurrence of the grounds for insurance.(2) (Supplemented, SG No. 95/2006, effective as from the day of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The rights of the insureds covered under Article 33 (1) herein shall arise as follows:1. in respect of the newly born: as of the date of birth;2. (new, SG No. 54/2002, amended, SG No. 95/2006, effective as from the day of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) in respect of the persons covered under Item 4 of Article 33 (1): as of the date of initiation of a procedure for recognition of refugee status or for affording a right of asylum;3. (new, SG No. 18/2006, amended, SG No. 95/2006, effective as from the day of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) in respect of all persons covered under Item 5 of Article 33 (1) herein: as of the date of enrolment in the relevant higher school or research organization.4. (renumbered from Item 2, SG No. 54/2002, renumbered from Item 3, SG No. 18/2006) in respect of all others: as of the date of payment of the health insurance contribution.(3) The rights of an insured shall be personal and may not be ceded (transferred).Article 35. Any person covered by compulsory (health) insurance shall be entitled:1. (amended, SG No. 107/2002) to receive medical care within the scope of the basic package of health-care activities guaranteed by the budget of the National Health Insurance;2. to choose a medical care provider who or which has concluded a contract with the regional health insurance fund;3. to receive emergency care wherever he or she may be;4. to obtain information from the Regional Health Insurance Fund about the contracts concluded by the said fund with the medical care providers;5. to participate in the management of the National Health Insurance Fund through own representatives thereof;6. to lodge complaints with the Director of the competent Regional Health Insurance Fund about any violation of the law or breach of contract.7. (new, SG No. 95/2006, effective as from the day of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) to obtain a document required for exercise of the health insurance entitlement thereof in accordance with the rules for coordination of social security schemes.Article 36. (1) Any person covered by compulsory (health) insurance shall have the right to receive partial or full reimbursement for any expenses incurred thereby on medical care abroad solely where advance permission therefore has been obtained from the National Health Insurance Fund.(2) Permission under Paragraph (1) shall be granted solely in respect of the types of medical care which are not provided in Bulgaria, according to the procedure established by Articles 78 and 79 herein.Article 37. (1) Any person covered under Article 33 herein shall pay the physician, dentist or health-care facility (providing medical care thereto) the following fees:1. for each visit to a dentist's or physician's office: 1 per cent of the national minimum (monthly) wage;2. (Amended, SG No. 107/2002) for each day of hospital treatment: 2 per cent of the national minimum (monthly) wage, but not more than ten days annually.(2) (New, SG No. 107/2002) The fees referred to in Paragraph (1) shall be for the medical care as delivered.(3) (Renumbered from Paragraph 2, supplemented, SG No. 107/2002, amended, SG No. 120/2002, supplemented, SG No. 17/2006, amended, SG No. 46/2007) Exemption from payment of the fees under Paragraph (1) shall be granted to any person suffering from a disease as designated in a list appended to the National Framework Agreement, as well as to any family member who has not attained the age of 14, or who has attained the age of 14 but has not attained the age of 18, or who is a dependant; to any person who has sustained an injury in the course of or in connection with national defence, to any war veteran and war-disabled; to any person remanded in custody or any person arrested under Article 63 of the Ministry of Interior Act or persons deprived of his or her liberty; to any indigent receiving income support under the Regulations for Application of the Social Assistance Act ; to any person without an income, who has been placed in a child-care home, in a preschool child-care home, or in a public-care institution; and to any medical specialist.(4) (Renumbered from Paragraph (3), SG No. 107/2002) Any physician, dentist or health-care facility (providing medical care) shall issue any person covered under Paragraph (1) a receipt for any fees paid.Article 38. Any insured shall be obligated to follow the directions of the medical care providers and to fulfil the requirements of disease prevention in accordance with the National Framework Agreement and the contracts concluded with the providers.Article 39. (Amended, SG No. 110/1999) (1) (Supplemented, SG No. 111/2004, amended, SG No. 105/2005, SG No. 95/2006) Any person which or who is under obligation to remit health insurance contributions under this Act, with the exception of any persons referred to in Article 40 (5) herein, shall be obligated to provide the National Revenue Agency territorial directorates with particulars regarding the insured persons each month as from the occurrence of the grounds for health insurance by means of submission of declarations completed in a standard form endorsed by the National Revenue Agency and the National Health Insurance Fund.(2) (Amended, SG No. 105/2005) Any persons, paying health insurance for members of the family thereof under this Act, shall provide particulars regarding any such members by means of submission of declarations completed in a standard form endorsed by the National Revenue Agency and the National Health Insurance Fund.(3) (Supplemented, SG No. 111/2004, amended, SG No. 105/2005) In the cases where the persons referred to in Paragraph (1) prepay contributions under this Act, the said persons shall complete a declaration covering the period of prepayment in a standard form endorsed by the National Revenue Agency and the National Health Insurance Fund.(4) Any foreigners staying for a short term in the Republic of Bulgaria, as well as any persons holding dual Bulgarian and foreign nationality, who are not covered by health insurance according to the procedure established by this Act, shall pay the value of the medical care delivered thereto unless an international treaty, whereto the Republic of Bulgaria is a party, applies to any such persons.Section VHealth Insurance ContributionsArticle 40. (Amended, SG No. 110/1999, supplemented, SG No. 64/2002, amended, SG No. 1/2002, supplemented, SG No. 74/2002, amended, SG No. 107/2002, SG No. 119/2002, effective 1.01.2003) (1) The health insurance contributions in respect of any insured person, due at a rate set according to the procedure established by Article 29 (3) herein, shall be charged on an income arrived at as follows and shall be remitted as follows:1. (supplemented, SG No. 111/2004, amended and supplemented, SG No. 105/2006) in respect of any person deriving income from employment relationships, civil-service relationships or legal relationships which have arisen in pursuance of special statutes, working under contracts for management and control of commercial corporations, any persons covered under Item 8 of Article 4 (1) of the Social Insurance Code, and any member of a cooperative receiving a remuneration from the said cooperation: the income whereon public social insurance contributions are remitted, arrived at according to the Social Insurance Code; payment of any such (health insurance) contribution shall be shared between the employer or the central-government department and by the insured in the following ratio:- in 2000 and 2001: 80 to 20;- in 2002 to 2004: 75 to 25;- in 2005: 70 to 30;- in 2006: 65 to 35;- in 2007: 65 to 35;- in 2008: 60 to 40;- in 2009: 55 to 45;- in 2010 and thereafter: 50 to 50:(a) the (health) insurance contributions shall be entirely for the account of the employer or the central-government department, where so provided for in a statute;(b) (amended, SG No. 49/2004, effective 1.01.2005) in respect of any persons on unpaid leave, who are not subject to health insurance on another ground, the (health insurance) contribution shall be charged on one half of the minimum amount of contributory income applicable to self-insured persons, as fixed by the Public Social Insurance Budget Act; the said contribution shall be paid entirely for the account of the insured person where the unpaid leave has been granted at the request of the said person, and for the account of the employer, where the unpaid leave is for child care or due to production necessity and idling; the said contribution shall be remitted care of the relevant enterprise or organization prior to the end of the month next succeeding the month wherefore the said contribution is due;(c) (amended, SG No. 105/2006) the insurance instalments for health insurance shall be deposited simultaneously with the security instalments for the state social security;(d) (new, SG No. 50/2003, repealed, SG No. 46/2007). 2. (amended, SG No. 49/2004, effective 1.01.2005, supplemented, SG No. 105/2006) any sole trader, any natural person who has formed a single-member limited liability company, any partner in a commercial corporation, and any person registered as practitioner of a liberal profession and/or a skilled craft, shall be charged health insurance contributions on a monthly income which may not be lower than the minimum amount of contributory income applicable to such self-insured persons as fixed by the Public Social Insurance Budget Act, and annually on the income accruing from the activity and the income covered under Item 3, according to the reference brief with the tax return according to the procedure established by Article 6 (8) of the Social Insurance Code; any registered agricultural producer and tobacco grower shall be charged health insurance contributions on a contributory income fixed by the Social Insurance Code; any registered agricultural producer and tobacco grower producing unprocessed plant and/or animal produce shall not establish a final amount of contributory income in respect of such activity. The instalments shall be deposited up to the 10th date of the month, following the month, to which they refer;3. (amended, SG No. 111/2004, effective 1.01.2005) in respect of any persons who work without entering into an employment relationship:(a) (amended, SG No. 113/2007) if the said persons are not charged health insurance contributions according to the procedure established by Items 1 and 2 and receive a remuneration equal to or exceeding the national minimum wage: on the taxable income, after debiting the said income with the expenses allowed for standard deduction; where the remuneration received does not exceed the national minimum wage, after debiting the said remuneration with the expenses allowed for standard deduction, health insurance contributions shall be charged according to the procedure established by Paragraph (5);(b) if the said persons are not charged health insurance contributions according to the procedure established by Item 1, the health insurance contributions shall be remitted on the taxable income, after debiting the said income with the expenses allowed for standard deduction, regardless of the amount of the remuneration received;(c) the health insurance contributions shall be remitted in the ratio under Item 1 by the client on or before the 10th day of the month next succeeding the month wherefore the said contributions are due;4. in respect of any pensioner: the amount of the pension or the sum total of the pensions less the supplements thereto; any such (health insurance) contributions shall be for the account of the Executive Budget and shall be remitted on or before the 10th day of the month next succeeding the month wherefore the said contributions are due;5. (amended, SG No. 105/2006) for the persons, temporarily unemployed because of illness, pregnancy or delivery and taking care of a small child - the minimal insurance income for the self insured persons, the instalments are at the expense of the employer and are equal to the part of the instalment due by him, and shall be deposited simultaneously with the payment of the monthly remuneration; the insurance instalments for the persons, who insure themselves at their expense, shall be in the same amount and shall be deposited up to the 10th date of the month to which they refer, on the minimal insurance income for the self insured, respectively for the registered agricultural producers and tobacco producers, determined by the State Social Security Budget Act for the relevant year.6. in respect of any person deriving income from various sources specified in Items 1, 2, 3, 4 and 5, the (health insurance) contributions shall be charged on the sum total of the contributory incomes and shall be remitted within the time limits provided therefore according to the procedure established by Article 6 (10) of the Social Insurance Code; 7. (amended, SG No. 111/2004) in respect of any minister of the Bulgarian Orthodox Church and any other religion recognized according to a statutorily established procedure, who do not receive remunerations for activity performed: the minimum contributory income applicable to self-insured persons, as fixed by the Public Social Insurance Budget Act; any such (health insurance) contributions shall be remitted by the central governing body of the respective religion on or before the 10th day of the month next succeeding the month wherefore the said contributions are due;8. in respect of any recipient of unemployment benefit: the amount of the benefit as paid; any such (health insurance) contributions shall be for the account of the Unemployment Fund and shall be remitted on or before the 10th day of the month next succeeding the month wherefore the said contributions are due.(2) (New, SG No. 95/2006) The following shall be insured for the account of the Executive Budget: the war veterans and the war-disabled; the persons who have been disabled in the course of, or in connection with, national defence, during performance of compulsory military service, in natural disasters or accidents; the officers of the Ministry of Interior who have sustained an injury in the line of duty and the civil servants.(3) (Renumbered from Paragraph (2), SG No. 95/2006) The following shall be insured for the account of the Executive Budget, unless insured according to the procedure established by Paragraph (1):1. (supplemented, SG No. 119/2002) any person who has not attained the age of 18 years, if attending school as a full-time pupil: until completion of secondary education;2. any full-time student enrolled in a higher school until attainment of the age of 26 years, and any full-time doctoral candidate enrolled within the state quota;3. (new, SG No. 18/2006) foreign students - below the age of 26 and the PhD fellows in universities and research institutes pursuant to Decree of the Council of Ministers No. 103 of 1993 concerning the organization of education among Bulgarians abroad and Decree of the Council of Ministers No 228/1997 for admitting citizens of the Republic of Macedonia to state universities in the Republic of Bulgaria;4. (renumbered from Item 3, SG No. 18/2006, repealed, SG No. 46/2007); 5. (supplemented, SG No. 119/2002, amended, SG No. 111/2004, renumbered from Item 4, SG No. 18/2006) any citizens who are responsive to the eligibility requirements for receipt of monthly social assistance benefits and of target benefits for heating according to the procedure established by the Social Assistance Act, unless insured on another ground, as well as those placed in specialized institutions for social services;6. (renumbered from Item 5, SG No. 18/2006) any person remanded in custody or any person deprived of his or her liberty;7. (renumbered from Item 6, SG No. 18/2006) any person in respect of whom a procedure for recognition of refugee status or for affording a right of asylum has been initiated;8. (renumbered from Item 7, SG No. 18/2006, repealed, SG No. 95/2006); 9. (renumbered from Item 8, SG No. 18/2006) any parents, adopters or spouses taking care of disabled persons who have lost more than 90 per cent of the working ability thereof and who require constant attendance;10. (new, SG No. 111/2004, renumbered from Item 9, SG No. 18/2006) the spouses of career service persons participating in international operations and missions: for the period of the mission and, applicable to persons receiving compensations under Article 233 of the Republic of Bulgaria Defence and Armed Forces Act, for the period of receipt of any such compensation.(4) (Amended, SG No. 111/2004, SG No. 18/2006, renumbered from Paragraph (3), SG No. 95/2006, amended, SG No. 113/2007) In respect of each of the persons covered under Item 1 of Paragraph (3), the (health) insurance contribution shall be at the rate of 3 per cent of the minimum contributory income applicable to self-insured persons. In respect of each of the persons covered under Items 2 to 10 of Paragraph (3), the (health) insurance contribution shall be remitted at the rate fixed by theNational Health Insurance Fund Budget Act on one half of the minimum contributory income applicable to self-insured persons.(5) (Supplemented, SG No. 49/2004, effective 1.01.2005, renumbered from Paragraph (4), SG No. 95/2006, amended, SG No. 113/2007) Any persons, who are not subject to health insurance under Paragraphs (1), (2) and (3), shall be charged health insurance contributions on a contributory income not lower than one half of the minimum amount of contributory income applicable to self-insured persons, as fixed by the Public Social Insurance Budget Act. Any such contributions shall be remitted on or before the 10th day of the month next succeeding the month wherefore the said contributions are due. Any such persons shall effect annual balancing of the contributory income according to the data stated in the tax return.(6) (Renumbered from Paragraph (5), SG No. 95/2006) The maximum amount of the monthly income whereon the health insurance contribution shall be computed shall be the maximum income fixed by the Public Social Insurance Budget Act.(7) (Renumbered from Paragraph (6), SG No. 95/2006) In respect of any person covered under Item 6 of Paragraph (1), the (health insurance) contributions shall be remitted on the sum total of contributory incomes according to the procedure provided for the relevant type of income but on not more than the maximum amount of the contributory income as fixed by the Public Social Insurance Budget Act.Article 40a. (New, SG No. 111/2004) (1) (Amended SG No. 105/2005) Any Bulgarian citizens, including such holding dual nationality, who are obligated to pay health insurance in respect of themselves and who reside abroad for more than 183 days within a calendar year, need not pay health insurance contributions until the end of the relevant calendar year, reckoned from the date of departure from Bulgaria, and for each succeeding calendar year after an application submitted in advance to the National Revenue Agency.(2) Any persons referred to in Paragraph (1) shall be reinstated to the health insurance entitlement thereof upon the lapse of six successive months after the return of any such persons to Bulgaria during which the person has been charged health insurance contributions according to the procedure established by Article 40 herein.(3) Outside the cases under Paragraph (2), any persons referred to in Paragraph (1) may be reinstated to the health insurance entitlement thereof after the return thereof to Bulgaria upon payment of a lump sum amounting to 12 health insurance contributions, at a rate set according to the procedure established by Article 29 (3) herein, charged on the minimum monthly amount of contributory income applicable to self-insured persons as fixed by the Public Social Insurance Budget Act at the time of remittance of the contributions.(4) The amounts referred to in Paragraph (3) shall be remitted according to the procedure established by Article 41 herein.(5) Until reinstatement to the entitlement, the persons referred to in Paragraph (1) shall pay the value of the medical care delivered thereto in Bulgaria to the providers.Article 41. (Amended and supplemented, SG No. 67/1999, amended, SG No. 110/1999) (1) (Amended, SG No. 105/2005) The insurance contributions under this Act shall be credited to the accounts whereon health insurance contributions are raised at the territorial directorates of the National Revenue Agency, wherefrom the said contributions shall be transferred daily to the account of the Head Office of the National Revenue Agency whereon health insurance contributions are raised.(2) (Amended, SG No. 105/2005) The amounts of health insurance contributions, collected at the National Revenue Agency, shall be transferred to the resource-raising account of the National Health Insurance Fund at the end of each working day.Article 42. (1) (Amended, SG No. 110/1999, SG No. 95/2006, effective 1.01.2007) The contributory income, whereupon the [health insurance] contribution shall be computed, shall be ascertained according to pay-rolls and other documents on remunerations paid, according to pension records, cashed-in medical certificates, paid unemployment benefits and according to the tax returns under the Income Taxes on Natural Persons Act. (2) The health insurance contribution shall be exempt from taxation.(3) (Amended, SG No. 110/1999, SG No. 107/2002, SG No. 95/2006, effective 1.01.2007) The annual return under the Income Taxes on Natural Persons Act shall show the health insurance contributions paid during the year and the amounts due upon annual balancing, if any such amounts are established.(4) (New, SG No. 110/1999, amended, SG No. 105/2005) The employers, the municipal authorities, the central-government departments, the contracting enterprises and organizations and the self-insured shall be obligated to submit the requisite information under Article 42 (1) and (3) herein to the National Revenue Agency and to the National Health Insurance Fund.Article 43. (Amended, SG No. 110/1999, SG No. 107/2002, SG No. 113/2007) Any (health) insureds, referred to in Item 2 and sentence three of Item 5 of Article 40 (1) and in Article 40 (5) herein, may prepay the health insurance contributions for a time period of their choice.Article 44. (Amended, SG No. 110/1999) The (health insurance) contributions shall be paid by any of the following modes:1. by bank transfer;2. by postal money order.Section VIScope of Medical Care Covered by Compulsory Health InsuranceArticle 45. (1) The National Health Insurance Fund shall pay for delivery of the following types of medical care:1. disease prevention procedures performed by physicians and dentists;2. procedures performed by physicians and dentists for the purpose of early disease detection;3. non-hospital and hospital medical care for the purpose of disease detection and treatment;4. rehabilitative care;5. urgent medical care;6. maternity care during pregnancy, childbirth and maternity;7. (new, SG No. 59/2006) medical care under Item 2 of Article 82 (1) of the Health Act; 8. (renumbered from Item 7, SG No. 59/2006) therapeutic abortion and abortion in case of pregnancy resulting from rape;9. (supplemented, SG No. 110/1999, renumbered from Item 8, SG No. 59/2006) dental and dental mechanic care;10. (renumbered from Item 9, SG No. 59/2006) nursing care at home;11. (amended, SG No. 107/2002, renumbered from Item 10, SG No. 59/2006) prescription and dispensation of medicinal drugs, licensed for use, provided for treatment at home;12. (new, SG No. 111/2004, renumbered from Item 11, SG No. 59/2006) prescription and dispensation of medical goods and dietetic foods for special medical purposes;13. (renumbered from Item 11, SG No. 111/2004, renumbered from Item 12, SG No. 59/2006) medical expert certification of working ability;14. (renumbered from Item 12, SG No. 111/2004, renumbered from Item 13, SG No. 59/2006) transportation services on medical indications.(2) (Amended, SG No. 107/2002) The medical care covered under Paragraph (1), with the exception of Item 10, shall be defined as a basic package guaranteed by the budget of the National Health Insurance Fund. The basic package shall be determined by an ordinance of the Minister of Health.(3) (New, SG No. 107/2002, amended, SG No. 111/2004) The Minister of Health shall issue an ordinance determining a list of diseases for whose treatment at home medicinal drugs, medical goods and dietetic foods for special medical purposes shall be fully or partly reimbursable by the National Health Insurance Fund.(4) (New, SG No. 107/2002, amended, SG No. 28/2004, repealed, SG No. 31/2007). (5) (New, SG No. 107/2002, amended, SG No. 28/2004, repealed, SG No. 31/2007). (6) (New, SG No. 28/2004, repealed, SG No. 31/2007). (7) (New, SG No. 111/2004, repealed, SG No. 31/2007). (8) (New, SG No. 111/2004, amended, SG No. 31/2007) The terms and conditions for the payment of medicinal products on the Positive Drug List under Art. 262 of the Medicinal Products in Human Medicine Act, of medical products and of dietary food for special medical purposes shall be regulated in an Ordinance of the Minister of Health.Article 46. (1) (Amended, SG No. 107/2002) The procedure for provision and the requirements to the providers of the separate types of medical care covered under Article 45 herein shall be specified in the National Framework Agreement and in the contracts between the Regional Health Insurance Funds and the providers.(2) (Amended and supplemented, SG No. 107/2002) The quality of medical care delivered, which is paid for by the National Health Insurance Fund, must satisfy the national medical standards and the rules of good medical practice.(3) The rules of good medical practice shall include requirements for prompt, sufficient and high-quality medical care.Article 47. Payment for any medical care delivered to any insured person shall be effected by the Regional Health Insurance Fund to the provider who or which delivered the said care.Article 48. The National Health Insurance Fund shall periodically inform the (health) insureds about any measures to protect and restore their health.Article 49. (Amended, SG No. 70/2004) Should medical controllers detect any conditions of work or other harmful environmental factors which pose a health hazard to the insureds, the said controllers shall immediately notify the employer, the occupational safety authorities, the state health control, the state veterinary control and the environmental protection authorities so as to take appropriate action.Article 50. When use of medical care, the (health) insureds shall be obligated to present their health insurance card or any other documentary proof of contributions paid.Article 51. No medical care beyond the scope of Article 45 herein or other than such contracted in the National Framework Contract shall be paid for by the National Health Insurance Fund.Article 52. Any persons uninsured under this Act shall pay for any medical care thereto delivered.Section VIINational Framework AgreementArticle 53. (1) (Previous text of Article 53 - SG No. 113/2007, effective 1.12.2007) A National Framework Agreement shall be signed for performance of the activities provided for in this Act.(2) (New, SG No. 113/2007, effective 1.12.2007) The National Framework Contract (NFC) referred to in paragraph 1 shall be executed not later than the date when the draft National Health Insurance Fund Budget Act for the respective year was submitted for consideration to the National Assembly.Article 54. (1) The National Framework Agreement shall be drafted and signed by ten representatives of the National Health Insurance Fund and ten representatives of the physicians and dentists professional organizations. The status of the physicians and dentists professional organizations and the procedure for designation of representatives therefore for the drafting and signing of the National Framework Agreement shall be regulated by separate statute.(2) The members of the Governing Board and the Director of the Head Office shall be the representatives of the National Health Insurance Fund who shall sign the National Framework Agreement.(3) To be concluded, the National Framework Agreement must be signed by not fewer than eight representatives of the National Health Insurance Fund and eight representatives of the physicians and dentists professional organizations. The said Agreement shall be countersigned by the Minister of Health.Article 55. (1) Annually, the representatives of the National Health Insurance Fund and the representatives of the physicians and dentists professional organizations shall draft a National Framework Agreement for the next succeeding year.(2) The National Framework Agreement shall specify:1. (Amended, SG No. 107/2002) the conditions which the medical care providers must satisfy, as well as the procedure for conclusion of contracts therewith;2. the separate types of medical care covered under Article 45 herein;3. the terms and a procedure for delivery of the care referred to in Item 2;4. the amount, prices and methods of payment for the care referred to in Item 2;5. the quality and affordability of the medical care agreed;6. the documentation and the document flow;7. (amended, SG No. 107/2002, SG No. 111/2004, SG No. 31/2007) the lists of medical products and dietary foods for special medical purposes and the prices up to which the NHIF shall provide full or partial payment; the conditions for prescription and obtainment of drugs, medical products and dietary foods for special medical purposes.8. the obligations of the parties to provide and exchange information;9. the terms and a procedure for verifying performance of contracts;10. any other matters relevant to health insurance;11. penalties for breach of the agreement.(3) (Repealed, SG No. 102/2005, new, SG No. 105/2006, Declared unconstitutional by Judgment No. 3/13.03.2007 of the Constitutional Court of the Republic of Bulgaria - SG No. 26/2007, new, SG No. 113/2007, effective 1.12.2007) If the NFC has not been executed in compliance with the terms and conditions and the time limit laid down in this Act, as of 1 January of the respective year, for which no NFC is executed, the following shall apply:1. the provisions stipulated by paragraph 2, items 3, 5, 8 - 11 of the NFC effective in the previous year;2. the conditions as per paragraph 2, items 1, 2, 4, 6 and 7 set by the Governing Board of the National Health Insurance Fund.(4) (New, SG No. 105/2006) The prices and amounts for payment of the care in the cases referred to in Paragraph (3) shall be determined according to the budget of the National Health Insurance Fund for the relevant year.(5) (Supplemented, SG No. 107/2002, renumbered from Paragraph (4), SG No. 105/2006) The National Framework Agreement may be modified according to the procedure established by Article 54 (1) herein on a motion by any of the negotiating parties, but not more than once in six months, as well as upon any revision of the ordinance referred to in Article 45 (2) herein.(6) (Renumbered from Paragraph (5), SG No. 105/2006, amended, SG No. 113/2007, effective 1.12.2007) The National Framework Contract and the decisions of the Governing Board of the National Health Insurance Fund under paragraph 3, item 2 shall be promulgated in the State Gazette and shall have an obligatory effect for the National Health Insurance Fund, the Regional Health Insurance Fund and the providers.(7) (Amended, SG No. 110/1999, renumbered from Paragraph (6), SG No. 105/2006) Inclusion of new diagnostic and treatment methods [in the National Framework Agreement] shall be admissible according to the procedure established by Article 32 of the Health Act. (8) (Amended, SG No. 107/2002, renumbered from Paragraph (7), SG No. 105/2006)The National Framework Agreement may not establish requirements as to:1. a minimum number of health insured persons to be registered by a primary non-hospital care provider;2. any terms impeding the free choice by the insured of medical care providers who have concluded a contract with a Regional Health Insurance Fund for:(a) (Effective until 1.01.2004) primary non-hospital care: within the boundaries of the municipality where the insured has a permanent or current address;(b) (Effective until 1.01.2004) specialist non-hospital and hospital care: within the boundaries of the respective administrative region;(c) (Effective until 1.01.2004) highly specialized hospital care: within the entire national territory;3. performance of highly specialized medical procedures beyond the basic package guaranteed by the budget of the National Health Insurance Fund by the specialist non-hospital care providers;4. additional requirements to pharmacies, wholesalers and manufacturers of medicinal drugs other than such provided for in the Human Medicinal Drugs and Pharmacies Act; 5. a maximum number of procedures performed and distribution of quotas in respect of the providers of such procedures in specialist non-hospital care and in hospital care;6. any limitation of the amount and distribution of the procedures performed among the medical-treatment facilities.Article 56. (1) (Previous Article 56 and amended, SG No. 107/2002, supplemented, SG No. 111/2004) Medical care providers may order the medicinal drugs, medical goods and dietetic foods for special medical purposes, as specified in the lists referred to in Item 7 of Article 55 (2) herein, fully or partly reimbursable by the National Health Insurance Fund, for any compulsorily insured persons.(2) (New, SG No. 107/2002) Prescription and delivery of any medicinal drugs, fully or partly reimbursable by the National Health Insurance Fund, other than such included in the lists referred to in Item 7 of Article 55 (2) herein by a medical care provider shall require advance written justification of the need. Payment for any such medicinal drugs shall be effected by permission of the Director of the competent Regional Health Insurance Fund.Article 57. (Repealed, SG No. 107/2002).Section VIIIContract between National Health Insurance Fund and Medical CareProviderArticle 58. (Amended, SG No. 62/1999, SG No. 70/2004) Within the meaning given by this Act, "medical care providers" shall be medical-treatment facilities under the Medical-Treatment Facilities Act national centres for public health under the Health Act. Article 59. (1) Any contract referred to in Item 4 of Article 20 herein for delivery of medical care under this Act and in accordance with the National Framework Agreement shall be concluded between the Director of a Regional Health Insurance Fund and a medical care provider.(2) No contract referred to in Paragraph (1) may be concluded on less favourable terms than the terms adopted by the National Framework Agreement.(3) Any contract referred to in Paragraph (1) shall be executed in writing for the term of validity of the National Framework Agreement, and shall endure until conclusion of a new National Framework Agreement or modification of the effective National Framework Agreement.(4) Any contract referred to in Paragraph (1) shall specify the requirements and conditions, as indicated in Items 2 to 11 of Article 55 (2) herein, for application within the respective territory. Any such contract shall particularize the relationships between medical care providers and between such providers and other parties for provision of the medical care as contracted.(5) (New, SG No. 107/2002) The Director of a Regional Health Insurance Fund may not refuse to conclude a contract with any provider satisfying the requirements of the law and of the National Framework Agreement, including upon filling out the National Health Map.(6) (Renumbered from Paragraph (5), SG No. 107/2002) Any refusal by the Director of a Regional Health Insurance Fund to conclude a contract with a provider shall be appealable by the provider within two weeks before the Governing Board of the National Health Insurance Fund care of the Director of the Regional Health Insurance Fund unless the latter elects to revoke the refusal.(7) (Renumbered from Paragraph (6) and supplemented, SG No. 107/2002, amended, SG No. 30/2006) The Governing Board shall pronounce on any such refusal within one month after receipt of the appeal. A rejection shall be appealable under the Administrative Procedure Code before the competent administrative court within two weeks. In case of revocation of a rejection by the court, the provider may bring an action for lost profit for the period of the unjustified refusal to conclude a contract.(8) (New, SG No. 107/2002) The National Health Insurance Fund, the Regional Health Insurance Funds and the employees thereof may not require presentation of documents from providers nor pose any conditions which are not contracted in the National Framework Agreement.(9) (New, SG No. 107/2002) The National Health Insurance Fund and the Regional Health Insurance Funds shall be obligated to inform providers of any changes arising from decisions of the governing bodies thereof or from modifications in the National Framework Agreement, as well as to give providers the directions as shall be necessary for application of any such changes. The terms, procedure and time limits for provision of information shall be regulated in the National Framework Agreement and in the contracts with providers.Article 60. (Previous Article 60, SG No. 30/2006) Scientific research and training of medical specialists, conducted by health-care facilities, shall not be subject to contracting and payment on the part of the National Health Insurance Fund.(2) (New, SG No. 30/2006) Therapeutic dentistry activities as part of the training of students, post-graduate students and PhD fellows shall not be contracted and reimbursed by the NHSF.Article 61. The Director of any Regional Health Insurance Fund may furthermore conclude a contract with any physician and dentist practising outside a hospital who has concluded a contract with any hospital located within the same territory. Any such contract shall regulate the terms and a procedure for payment for medical care delivered at the hospital.Article 62. The Director of any Regional Health Insurance Fund may conclude a contract for delivery of non-hospital care with any physician and dentist practising at a hospital, subject to the condition that there is no sufficient number of physicians of the same specialty who practise outside hospitals within the same territory and the operation of the hospital is not disrupted by such an arrangement.Section IXInformation Support of the Operation of the National Health Insurance FundArticle 63. The National Health Insurance Fund shall build an information system which shall comprehend:1. (amended, SG No. 110/1999, supplemented, SG No. 95/2006, effective as from the day of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) a register of the insured persons, stating: identity card particulars; a unique personal identification number; grounds for entitlement to [health] insurance under Article 33 herein; the contributions paid, the grounds for payment by the National Health Insurance Fund of the medical care delivered to the insured persons in another Member State in accordance with the rules for coordination of social security schemes;2. (new, SG No. 95/2006, effective as from the day of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) a register of the persons insured in another Member State, who are entitled to receive medical care in Bulgaria for the account of the National Health Insurance Fund in accordance with the rules for coordination of social security schemes;3. (amended, SG No. 110/1999, renumbered from Item 2, SG No. 95/2006, effective as from the day of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) a register of the medical care providers, stating identity card particulars and professional information about the provider, the contract concluded therewith;4. (amended, SG No. 110/1999, renumbered from Item 3, SG No. 95/2006, effective as from the day of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) register of manufacturers, importers and distributors of medicinal drugs and pharmacies which have concluded contracts with the National Health Insurance Fund;5. (renumbered from Item 4, SG No. 95/2006, effective as from the day of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) information about the activities performed by the controlling authorities;6. (renumbered from Item 5, SG No. 95/2006, effective as from the day of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) administrative information essential for the operation of the National Health Insurance Fund.Article 64. (1) (Amended, SG No. 110/1999, previous Article 64, SG No. 107/2002) Each (health) insured shall have the right to receive from the National Health Insurance Fund the available information regarding the medical care which the said insured has used during the last preceding five years and the price of the said care according to a procedure established by the Fund.(2) (New, SG No. 107/2002) Each (health) insured shall have the right to gain access, upon request, from the competent Regional Health Insurance Fund to the competent Regional Health Insurance Fun regarding the medical care providers and the pharmacies which have concluded contracts with the Regional Health Insurance Fund for the relevant region, stating the following particulars:1. in respect of non-hospital care: name, type of medical-treatment facility, address, governing bodies, physicians and dentists working thereat, specialist qualifications of the said medical professionals, office telephone numbers, highly specialized medical procedures performed under the National Framework Agreement;2. in respect of hospital care: name, type of hospital, address, governing bodies, telephone numbers, wards, accreditation rating, medical procedures performed under the National Framework Agreement;3. in respect of pharmacies: name, address, managing director, telephone number, opening hours, groups of medicinal drugs dispensed according to the individual contract with the National Health Insurance Fund.(3) (New, SG No. 107/2002) The information covered under Paragraph (2) shall be public and shall be maintained, disseminated and provided according to a procedure established in the Rules of Organization and Operation of the National Health Insurance Fund.Article 65. Any medical care provider shall be obligated to report the work thereby performed to the Regional Health Insurance Fund, according to reporting methods and up to an amount as adopted in the National Framework Agreement.Article 66. (1) (Previous Article 66, SG No. 107/2002) The information system of the compulsory health insurance system shall use the established national codes and nomenclatures for registration and reporting of health- care services activities.(2) (New, SG No. 107/2002, effective 1.01.2004) The National Health Insurance Fund shall provide medical care providers with the software as shall be necessary for the performance of the work thereof regarding the exchange of data and documentation required by the National Framework Agreement.(3) (New, SG No. 107/2002) The data and documentation referred to in Paragraph (2) may be submitted by the providers to the Regional Health Insurance Fund on (a paper-based data medium) and/or only on an electronic or magnetic data medium in a format coordinated with the National Health Insurance Fund.Article 67. The particulars regarding the insured persons shall be preserved at the National Health Insurance Fund for a period of ten years after termination of the health insurance entitlement thereof, and the particulars regarding the providers shall be preserved for a period of ten years after expiration of the last contract thereof with the National Health Insurance Fund.Article 68. (1) Any particulars relating to the person of the insured may be used solely for the purpose of:1. establishment of an insurance relationship with the National Health Insurance Fund;2. payment to a medical care provider;3. preparation of a health insurance card, a medical document or a financial document;4. identification of sums subject to collection from, or reimbursement to, the contributions payer or the medical care provider;5. ascertainment of any detriment inflicted on the insured during the delivery of medical care;6. exercise of financial control.(2) Any particulars relating to the medical care provider may be used solely for the purpose of:1. keeping a register of medical care providers;2. payment for the medical care delivered by the said provider;3. (Amended, SG No. 107/2002) exercise of control over performance of the contracts.(3) (New, SG No. 107/2002) The National Health Insurance Fund may not require that the source medical documents, which are accessible to insured persons and to third parties, contain any particulars regarding the physicians and dentists other than name, specialty, address, telephone number of the practice, personal professional code and registration number of the medical-treatment facility.(4) (Renumbered from Paragraph (3), SG No. 107/2002) Except in the instances covered under Paragraphs (1) and (2), the National Health Insurance Fund may provide particulars regarding the person of an insured or a provider to state bodies if so provided for by statute.(5) (Renumbered from Paragraph (4), SG No. 107/2002) The employees of the Head Office of the National Health Insurance Fund or of any Regional Health Insurance Fund shall have no right to disclose any particulars relating to the person of an insured person, a medical care provider or an employer except in the instances prescribed by statute.(6) (New, SG No. 107/2002) The governing bodies and the employees of the National Health Insurance Fund or of the Regional Health Insurance Funds shall have no right to give a professional evaluation and to comment on the work of medical care providers, nor to make direct or indirect recommendations and to direct patients to specific providers.(7) (New, SG No. 107/2002) The National Health Insurance Fund or of the Regional Health Insurance Funds shall be obligated to provide any information as shall be requested by the Ministry of Health.Article 69. (Amended, SG No. 93/1998, SG No. 110/1999, SG No. 105/2005) On a monthly basis, the National Revenue Agency shall be obligated to provide the National Health Insurance Fund with information regarding the [health] insured persons and the amount of the health insurance contributions collected there from.Section XControl, Expert Evaluations and DisputesArticle 70. (1) (Previous Article 70, SG No. 107/2002) Control over the implementation of the budget of the National Health Insurance Fund shall be exercised by the National Audit Office.(2) (New, SG No. 107/2002, amended, SG No. 33/2006) Comprehensive financial control of the National Health Insurance Fund shall be exercised according to the procedure established by the Public Financial Inspection Act. Article 71. Control over the performance of the Governing Board, the Director of the National Health Insurance Fund and the directors of the Regional Health Insurance Funds shall be exercised by the Review Board according to the provisions of this Act and the Rules of Organization and Operation of the National Health Insurance Fund.Article 72. (1) (Amended, SG No. 107/2002, supplemented, SG No. 38/2004) The Director of the National Health Insurance Fund shall exercise comprehensive control over the activities comprehended in compulsory health insurance. The Director of the National Health Insurance Fund shall mandatorily assign an inspection within fourteen days after receipt of a decision of the National Audit Office on enforcement of accountability, attaching thereto records of the audit or the audit report under Article 51 (1) of the National Audit Office Act. (2) Direct control shall be exercised by officers of the Regional Health Insurance Funds: financial inspectors and medical controllers.Article 73. (1) Financial inspectors shall exercise the following powers:1. (Repealed, SG No. 110/1999);2. (Supplemented, SG No. 107/2002) to examine the accounting documents of medical care providers, as regulated in the National Framework Agreement;3. (Amended, SG No. 107/2002) to exercise control as to the legal conformity of the financial activity of medical and dental care providers under the contracts thereof with the Regional Health Insurance Funds;4. (Supplemented, SG No. 107/2002) to conduct examinations proceeding from complaints lodged by insured persons and employers in connection with financial irregularities.(2) For the purpose of performing the activities covered under Paragraph (1), financial inspectors shall have the right to access to information from the employers, the insureds and the providers.(3) Financial inspectors shall have no right to disclose any information which has come to the knowledge thereof in the course of performing the activities covered under Paragraph (1) except in the instances prescribed by statute.(4) (New, SG No. 107/2002) The procedures established by Article 74 (2), (3) and (4), Articles 75 and 76 herein, applicable to medical controllers, shall apply, mutatis mutandis, in respect of the regulation of the activities performed by financial controllers, the ascertainment of violations, the contestation of ascertainments, the boards of arbitration and the imposition of sanctions.Article 73a. (New, SG No. 110/1999, amended, SG No. 105/2005) Financial control over the revenues of the National Health Insurance Fund from health insurance contributions and due interest shall be exercised by the controlling authorities of the National Revenue Agency according to the procedure established by the Tax and Social Insurance Procedure Code. Article 74. (1) Control related to the delivery of medical care shall be exercised by medical controllers who shall have power to verify:1. compliance with the rules of good medical practice;2. the type and amount of medical care delivered;3. the type and quantity of medicinal drugs prescribed;4. the correspondence between the medical care delivered and the sums paid.(2) Acting on complaints lodged and where expenditures on medical care are found to exceed the prescribed limit by 25 per cent or more during a six-month period, the medical controllers shall conduct surprise inspections of a random selection of 2 per cent of the medical care providers within the territory served by each Regional Health Insurance Fund.(3) Upon ascertainment of any violation covered under Items 1 to 4 of Paragraph (1), a medical controller shall draw up a memorandum, describing therein the facts as ascertained. The said memorandum shall be signed by the medical controller. A copy of the said memorandum shall be provided to the person inspected upon signed acknowledgement of service, and transcripts of the said memorandum shall be transmitted to the Director of the competent Regional Health Insurance Fund and to the respective regional chapter of the physicians or dentists professional organization.(4) The person subject to inspection shall have the right to submit written observations to the Director of the (competent) Regional Health Insurance Fund on the ascertainments arrived at by the medical controller within seven days after service of the memorandum referred to in Paragraph (3).Article 75. (1) Should the person (inspected) contest the ascertainments arrived at by the medical controller, the Director of the (competent) Regional Health Insurance Fund shall submit the contestation for settlement to a board of arbitration within seven days after receipt of the written observations referred to in Article 74 (4) herein.(2) The board of arbitration shall consist of six members: three representatives of the Regional Health Insurance Fund and three representing the regional chapter of the relevant physicians or dentists professional organization.(3) The board of arbitration shall rule within one month after receipt of the case file.Article 76. (1) Should the board of arbitration uphold the ascertainments arrived at by the medical controller, the sanctions provided for in the contract between the Regional Health Insurance Fund and the provider of medical aid shall be applied.(2) (Amended, SG No. 30/2006) The said sanctions shall be judicially appealable according to the procedure established by the Administrative Procedure Code. Article 77. (Supplemented, SG No. 110/1999, amended, SG No. 105/2005) Any natural and legal person shall be obligated to provide the controlling authorities of the National Health Insurance Fund and of the National Revenue Agency any documents, information, reference briefs, declarations, explanations and other data mediums relating to the implementation of health insurance as the said authorities may request, and to cooperate with the said authorities in the performance of the official duties thereof.Article 78. The National Health Insurance Fund may conduct expert evaluations should the need arise of:1. medical care whereof the value exceeds the national minimum (monthly) wage 200 times;2. expensive medicinal drugs in the instances provided for by the National Framework Agreement;3. medical treatment abroad.Article 79. Any expert evaluation covered under Article 78 herein shall be conducted by a commission at the Head Office according to a procedure established in the Rules of Organization and Operation of the National Health Insurance Fund.Article 80. Any dispute as may arise in connection with the performance of the contracts between the National Health Insurance Fund, the Regional Health Insurance funds and the medical care providers shall be submitted for settlement to the competent court of law unless determined by arbitration.Section XI(New, SG No. 95/2006)Issuance of Documents Required for Exercise of Health InsuranceEntitlement according to Rules for Coordination of Social SecuritySchemesArticle 80a. (New, SG No. 95/2006) (1) The National Health Insurance Fund shall issue documents required according to the rules for coordination of social security schemes for exercise of the health insurance entitlement of the persons, within thirty days after the date of submission of a request by the interested parties.(2) Any such request shall be submitted by the interested parties care of the Regional Health Insurance Funds.(3) Acting on a motion by the Director of the National Health Insurance Fund, the Minister of Health shall issue an ordinance establishing the procedure for the issuance of the certifying documents referred to in Paragraph (1).Article 80b. (New, SG No. 95/2006) (1) The Director of the National Health Insurance Fund or an official authorized thereby shall issue a European health insurance card with a validity period of one year.(2) In case the applicant has not attained the age of 18 years, the validity period of the European health insurance card shall be until attainment of the age of 18 years but in any case not less than one year and not more than five years.(3) Where the applicant is a recipient of a contributory-service and retirement-age pension, the validity period of the European health insurance card shall be ten years, and if the person receives an invalidity pension, the said validity period shall be for the period of the pension as granted but in any case not less than ten years.Article 80c. (New, SG No. 95/2006) A European health insurance card as issued shall be declared invalid by the Director of the National Health Insurance Fund or by an official authorized thereby where:1. the health insured person states that the card has been lost, stolen or destroyed;2. the health insured person has died;3. the person has lost the entitlement to payment by the National Health Insurance Code of the medical care delivered thereto under the terms established by Article 109 (1) herein, except if the said person is reinstated in the health insurance entitlement thereof, as well as in the cases referred to in Article 40a (1) herein.Article 80d. (New, SG No. 95/2006) A European health insurance card shall not be issued to any persons referred to in Article 40a (1) and Article 109 (1) herein.Chapter ThreeVOLUNTARY HEALTH INSURANCESection IGeneral Dispositions(Title amended, SG No. 107/2002)Article 81. (Amended, SG No. 107/2002) This Chapter regulates the relationships associated with:1. voluntary health insurance;2. the legal status of health insurance companies;3. the state supervision over the activities comprehended in voluntary health insurance;4. the guaranteeing of the interests of insured persons.Article 82. (Amended, SG No. 107/2002) (1) Voluntary health insurance shall be the activity of assuming risks associated with provision of financing for certain health-care services and goods, carried on by health insurance companies licensed under this Act in exchange for payment of health insurance premiums, on the basis of health insurance contracts.(2) Voluntary health insurance shall guarantee the provision of health-care services and goods beyond the scope of compulsory health insurance. Voluntary health insurance may furthermore guarantee health-care services and goods within the scope of comprehensive health insurance.(3) Voluntary health insurance shall be implemented in compliance with the principle of voluntary contracting.(4) The following shall not be treated as voluntary health insurance:1. (Amended, SG No. 85/2004, No. 103/2005) the business of insurers comprehended in cover of risks associated with the life, health or bodily integrity of the insured persons under the insurances listed in Annex 1 of the Insurance Code; 2. the work performed by non-hospital medical care providers under contracts with natural and legal persons for provision of medical services, where the said services are of a specified type, amount and prices.Article 83. (Amended, SG No. 107/2002) (1) An activity comprehended in voluntary health insurance may be carried on by an joint-stock company registered with objects limited to voluntary health insurance.(2) The activity comprehended in voluntary health insurance shall furthermore include management of the assets of the health insurance company.(3) Acting under contract with foreign insurance and social insurance companies, in exchange for payment and without assuming a financial risk of their own, health insurance companies may perform activities comprehended in medical services within the territory of the Republic of Bulgaria for foreign citizens insured by the said insurance and social insurance companies.(4) For the purpose of carrying on an activity comprehended in voluntary health insurance and for recording in the Commercial Register, a joint-stock company referred to in Paragraph (1) must obtain a licence under the terms and according to the procedure established by this Act.Article 84. (Amended, SG No. 107/2002) (1) Health insurance contracts shall be written contracts concluded between any health insurance companies, licensed under this Act, and any natural or legal person.(2) Any self-insured person, if paying a health insurance premium for his, her or its own account, shall be a party to the contract.(3) Any employers, family members and other (health) insurance payers, who or which remit for their own account the health insurance contributions in respect of natural persons, shall be a party to the contract. In such a case, the (health) insurance payers shall be obligated to explain to the (health) insured persons the rights and obligations thereof arising under the contract, the medical care providers, and the terms and procedure for delivery of health-care services and goods.(4) Any (health) insurance payers and (health) insured persons shall be a party to the contract where remitting jointly portions of the health insurance premium.(5) (Amended SG No. 103/2005) In respect of health insurance contracts, the provisions of the Commerce Act regarding commercial transactions and of the Insurance Code shall apply accordingly, in so far as otherwise provided for in this Act.Article 85. (Amended, SG No. 107/2002) (1) The activity comprehended in the provision of health-care services shall be performed by medical care providers.(2) The type, prices, terms and procedure for provision of the health-care services referred to in Paragraph (1) shall be established in contracts between the medical care providers and the health insurance companies.(3) Voluntary health insurance with expense reimbursement may be provided without conclusion of contracts referred to in Paragraph (2).Article 86. (Amended, SG No. 107/2002, SG No. 8/2003) The state supervision over the activity comprehended in voluntary health insurance shall be exercised by the Financial Supervision Commission and by the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department, according to the procedure established by this Act and by the Financial Supervision Commission Act. Section II(New, SG No. 107/2002)Activity Comprehended in Voluntary Health InsuranceArticle 87. (Amended, SG No. 107/2002) (1) Voluntary health insurance may be provided through expense reimbursement or through subscriber service.(2) Voluntary health insurance through expense reimbursement shall be a form in which the health insurance company partly or fully reimburses the expenses incurred for health-care services of the insured persons upon occurrence of the cases provided for in the health insurance contracts. Expenses shall be reimbursable both to the providers and to the insured persons in respect of the health-care services and goods as provided or paid.(3) Voluntary health insurance through subscriber service shall be a form in which, upon occurrence of the cases provided for in the health insurance contracts, the health insurance company arranges the provision of specific health-care services and goods to the insured persons by specific medical care providers wherewith the said health insurance company has concluded a contract.Article 88. (Amended, SG No. 107/2002) (1) The activity comprehended in voluntary health insurance shall be carried on through the offering, conclusion and performance of health insurance contracts.(2) Any health insurance contract shall state:1. (amended, SG No. 39/2005, No. 34/2006) certificate reflecting current status of entry in the Commercial Register; number and date of issue of health insurance company licence;2. the health insurance packages included in the contract, the type, scope and terms of provision of health-care services and goods;3. the amount, time limit and mode of payment of the health insurance premium;4. the general conditions of the health insurance packages included in the contract.(3) (New, SG No. 8/2003) The general conditions under the health insurance packages shall clearly and unambiguously state:1. the cover and the exceptions of it;2. the terms, the procedure and the time limits for payment of health insurance premiums, as well as the consequences of non-payment or mispayment;3. the terms and procedure for using the health services and for obtaining the health goods;4. the terms, procedure and time limits for reimbursement of expenses incurred;5. the terms, procedure and time limits for termination or modification of the health insurance legal relationship.(4) (Renumbered from Paragraph (3), SG No. 8/2003) Upon the offering and conclusion of health insurance contracts, health insurance companies shall be obligated to observe the principle of voluntary contracting and to explain in good faith the terms and conditions, the rights and obligations arising under the health insurance contract with a view to protection of the interests of insured persons.(5) (Renumbered from Paragraph (4) and supplemented, SG No. 8/2003) Health insurance companies shall be bound by the obligation to respect the confidentiality of the information relating to the health insurance contracts as concluded, as well as of the information relating to the personal data and the health status of the insured person before the Financial Supervision Commission and the authorities thereof. Any such information may be disclosed solely with the consent of the insured person, as well as in the cases expressly provided for by statute.Article 88a. (New, SG No. 100/2007) (1) The use of sex as an actuarial factor in determining the amount of the health insurance premium shall be permissible in case the health insurance company uses statistical data which are reliable, regularly updated and available to the public, and from which the determining relevance of sex as an actuarial factor in the assessment of the health insurance risk is evident. In such case, the health insurance company shall submit to the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department the rate thereof under the relevant health insurance package, accompanied by the relevant statistical justification.(2) The health insurance company may not reduce the amount due upon expense reimbursement or, respectively, upon provision of health-care services and goods, on the basis of the sex of the insured persons.(3) Costs related to pregnancy and maternity may not result in differences in calculation of premiums and benefits.Article 89. (Amended, SG No. 107/2002) Health insurance companies may own shares and interests in medical-treatment facilities.Article 90. (Amended, SG No. 107/2002) (1) The own funds of any health insurance company, less the intangible assets, must be greater than, or equal to, the solvency margin.(2) The guarantee capital shall represent one-third of the solvency margin but may not be lower than BGN 400,000.(3) The total amount of tangible and intangible fixed assets required for the conduct of the business of any health insurance company may not exceed 75 per cent of the owners' equity less the subscriber capital not paid.Article 90a. (New, SG No. 107/2002, amended, SG No. 8/2003) The Financial Supervision Commission shall issue an ordinance which shall establish:1. the elements included in calculating the amount of own funds;2. the solvency margin and the methods of calculating the said margin.Article 90b. (New, SG No. 107/2002) (1) Where the requirement referred to in Article 90 (1) herein is breached, the health insurance company, acting on the order of the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department, shall submit a plan for attainment of the solvency margin.(2) Should the own funds, less any intangible assets, fall below the fixed guarantee capital, the health insurance company shall submit a short-term plan for additional raising of own funds for approval to the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department.(3) In the instances referred to in Paragraph (2), the Agency shall establish a time limit for rising of own funds up to the established amount of guarantee capital.Article 90c. (New, SG No. 107/2002) (1) Any health insurance company shall be obligated to establish statutory reserves and health insurance reserves.(2) The statutory reserves shall consist of:1. a Reserve Fund under Article 246 of the Commerce Act; 2. other funds and reserves if so provided for in the Articles of Association of the health insurance company.(3) The health insurance reserves shall consist of:1. an equalization reserve;2. a claims reserve;3. an unearned premium reserve;4. other provisions as approved by the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department.(4) (Amended, SG No. 8/2003) The Financial Supervision Commission shall approve an ordinance establishing a procedure and a method for the formation of health insurance reserves. Each health insurance company shall maintain health insurance reserves according to the ordinance referred to in sentence one to an amount corresponding to the obligations under the health insurance contracts.Article 90d. (New, SG No. 107/2002) (1) Where any health insurance company has calculated the solvency margin, the own funds and/or the health insurance reserves in breach of the ordinances referred to in Article 90a herein or Article 90c (4) herein, for the purposes of insurance supervision the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department shall recalculate the amounts thereof according to the said ordinances.(2) Where the solvency margin and/or the amount of own funds, as recalculated according to the procedure established by Paragraph (1), do not conform to Article 90 (1) and (2) herein, the measures under Article 90b herein shall apply.(3) (Amended, SG No. 8/2003) Where the health insurance reserves shall be insufficient for performance of the obligations under the health insurance contracts, the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department shall prescribe adjustment of the said provisions. Upon failure to comply with the prescription, the coercive administrative measures under Article 99 herein shall be applied.Article 90e. (New, SG No. 107/2002) (1) Any health insurance company shall be obligated to invest the health insurance reserves in the following assets and in the following ratios:1. government securities issued and guaranteed by the Republic of Bulgaria: without restriction;2. unencumbered corporeal immovables: up to 10 per cent of the health insurance reserves;3. bonds issued and guaranteed by a municipality: up to 5 per cent of the health insurance provisions;4. shares and bonds issued by commercial corporations and admitted to trading on a stock exchange: up to 30 per cent of the health insurance provisions, but not more than 10 per cent of the shares and bonds of a single corporation;5. bank deposits: up to 50 per cent of the health insurance reserves, but not more than 25 per cent of the amount of the said reserves with a single bank;6. mortgage bonds: up to 25 percent of the health insurance reserves, but not more than 15 per cent of the mortgage banks issued by a single bank.(2) The assets covered under Paragraph (1) may not be pledged, mortgaged or otherwise encumbered.(3) The levels of investments covered under Paragraph (1) must provide security, yield and liquidity relevant to the health insurance contracts.Article 90f. (New, SG No. 107/2002) (1) Own funds may be invested in interests and shares in other commercial corporations. The health insurance company shall be obligated to notify the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department within seven days after the investment is made where the amount of investment in a single commercial corporation:1. exceeds 10 per cent of the capital of the corporation, or2. exceeds BGN 30,000.(2) Where a health insurance company invests the own funds thereof in interests and shares in another commercial corporation and the amount of the said investment exceeds 10 per cent of the amount of the own funds of the said company, the said company shall be obligated to request advance authorization from the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department.(3) A health insurance company may not participate, as a general partner, in any general partnership, limited partnership, or partnership limited by shares.Article 90g. (New, SG No. 107/2002, amended, SG No. 8/2003) A health insurance company may invest health insurance reserves and own funds abroad by permission of the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department four years after grant of the licence.Article 90h. (New, SG No. 107/2002) The health insurance reserves referred to in Article 90c (3) herein shall be included in the imputed costs of the insurer.Article 90i. (New, SG No. 107/2002) (1) The Annual Financial Statement of each health insurance company shall be certified by registered auditors.(2) Together with the report certifying the Annual Financial Statement of the health insurance company, the registered auditors shall submit an extended auditors' report to the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department not later than the 30th day of April in the next succeeding year.(3) The extended auditors' report shall be prepared in a standard form as endorsed by the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department.(4) The persons referred to in Paragraph (1) shall notify the Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Department forthwith of any circumstances as may jeopardize the activity of the health insurance company. For more information visit www.solicitorbulgaria.com id: 313 Fri, 01 Aug 2008 05:27:29 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-health-insurance-act-part-1 http://web.solicitorbulgaria.com/index.php/bulgarian-health-insurance-act-part-1 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/HEALTH_INSURANCE_ACT.jpg EUR http://web.solicitorbulgaria.com/index.php/bulgarian-health-insurance-act-part-1 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Chapter EightNATIONAL ENVIRONMENTAL MONITORING SYSTEMArticle 143The National Environmental Monitoring System shall cover the entire territory of Bulgaria.Article 144(1) The National Environmental Monitoring System shall comprehend:1. the national networks for:a) ambient air monitoring;b) precipitation and surface-water monitoring;c) ground-water monitoring;d) sea-water monitoring;e) geological environment monitoring;f) (amended, SG No. 89/2007) soil monitoring; g) forests and protected-areas monitoring;h) (amended, SG No. 77/2005) biological diversity monitoring;i) radiological monitoring;j) environmental noise pollution monitoring;k) monitoring of non-ionizing radiation;l) monitoring of waste landfills and of past pollution with waste;2. a system for information on, and control of, air emissions and the state of waste waters;3. the operation, communication and information support and laboratory services to the networks covered under Item 1.(2) The national environmental monitoring networks… For more information visit http://www.solicitorbulgaria.com id: 308 Chapter EightNATIONAL ENVIRONMENTAL MONITORING SYSTEMArticle 143The National Environmental Monitoring System shall cover the entire territory of Bulgaria.Article 144(1) The National Environmental Monitoring System shall comprehend:1. the national networks for:a) ambient air monitoring;b) precipitation and surface-water monitoring;c) ground-water monitoring;d) sea-water monitoring;e) geological environment monitoring;f) (amended, SG No. 89/2007) soil monitoring; g) forests and protected-areas monitoring;h) (amended, SG No. 77/2005) biological diversity monitoring;i) radiological monitoring;j) environmental noise pollution monitoring;k) monitoring of non-ionizing radiation;l) monitoring of waste landfills and of past pollution with waste;2. a system for information on, and control of, air emissions and the state of waste waters;3. the operation, communication and information support and laboratory services to the networks covered under Item 1.(2) The national environmental monitoring networks shall be designed and built in conformity with the national, European and international standards.(3) For the purposes of the information support of the National Environmental Monitoring System, a National Automated System for Environmental Monitoring shall be established.(4) The National Automated System for Environmental Monitoring shall be organized at national, basin, and regional level.(5) The measurements and laboratory tests shall be performed by accredited laboratories.(6) The Minister of Environment and Water shall issue an order endorsing the networks covered under Item 1 of Paragraph (1).Article 145The National Environmental Monitoring System shall perform the following tasks:1. observation of the national networks in order to determine the state of the environmental media;2. processing, analysis, visualization and storage of the information from the networks covered under Item 1 and from self-monitoring;3. provision of information required for current control;4. trends analysis, environmental risk assessment and development of proposals for improvement of the state of the environment;5. information support of the executive authorities and of the public;6. creation and maintenance of special inventory cards and registers for the environmental media and the factors impacting the said media;7. exchange of information on the state of the environment with the European Monitoring System.Article 146(1) (Supplemented, SG No. 74/2005, SG No. 89/2007) For the purpose of conduct of self-monitoring, the persons obliged under the Water Act, the Soils Act, the Clean Ambient Air Act, the Subsurface Resources Act, the Protection against Environmental Noise Act and the and the Waste Management Act, shall elaborate a plan in conformity with the conditions imposed by the permit or by the EIA decision.(2) The self-monitoring plan shall be approved by the authority which has obligated the person referred to in Paragraph (1).(3) Upon approval of the self-monitoring plan, the authority referred to in Paragraph (2) shall determine the information which the persons conducted self-monitoring shall be obliged to submit for inclusion in the National Automated System for Environmental Monitoring, as well as the procedure and manner for submission of the said information.Article 147(1) (Supplemented, SG No. 74/2005) The National Environmental Monitoring System, with the exception of the National Monitoring System for Noise in Urbanized Areas, shall be organized and directed by the Minister of Environment and Water.(2) (Supplemented, SG No. 74/2005) The creation, operation, logistical, information and software support of the National Automated System for Eco-monitoring, with the exception of the National Monitoring System for Noise in Urbanized Areas, shall be implemented by the Executive Environmental Agency.(3) (Repealed, SG No. 77/2005). (4) (Supplemented, SG No. 74/2005) Methodological guidance of the monitoring activity, with the exception of the monitoring activity on noise in urbanized areas, shall be provided by the Executive Environment Agency.(5) The state of the environment shall be assessed at regional and national level, respectively, by the RIEWs and the Executive Environment Agency.(6) The data on and assessments of the state of the environment shall be published in a quarterly and annual Bulletin on the State of the Environment.(7) The observation and assessment data obtained as a result of the activity of the National Environmental Monitoring System, as well as from self-monitoring, shall provide a basis for the exercise of control and for imposition of sanctions upon violation of the regulatory requirements.Chapter NineCONTROLSection IGeneral TermsArticle 148(1) The Ministry of Environment and Water shall exercise control over the environmental media and the factors impacting the said media.(2) The said control shall be preventive, current and follow-up.(3) At the national level, the said control shall be implemented by the Minister of Environment and Water or by officials authorized thereby, and at the regional level by the RIEW directors, the Basin Directorate directors, the National Park directors, the municipality mayors or by persons authorized thereby.Article 149(1) (Supplemented, SG No. 77/2005) The natural and legal persons shall be obligated to afford immediate access to all sites and areas and render assistance to the authorities covered under Article 148 (2) herein for the purpose of conduct of inspection, for measurement or taking of samples from existing or potential sources of environmental pollution and/or environmental damage.(2) Access to sites and areas of the Ministry of Interior or to the Ministry of Defence shall be granted by the competent chief of structural unit of the ministry.(3) The executive authorities and the administrations thereof, the organizations, the juristic and natural persons shall be obliged to render assistance to the authorities exercising control over performance of the functions thereof.Article 150The natural and juristic persons possessing and using treatment facilities and waste treatment facilities shall be obliged to ensure the operation of the said facilities according to the provisions of the legislative acts and conforming to the conditions set in the EIA decisions, the permits and the other relevant individual administrative acts.Article 151(Amended, SG No. 77/2005) (1) In respect of any administrative violations ascertained in the course of the control activity, the control authorities shall draw up written statements ascertaining the violations.(2) In the cases referred to in Paragraph (1), the control authorities may issue written prescriptions and orders imposing coercive administrative measures.Section IIPreventive ControlArticle 152(Amended, SG No. 77/2005)Preventive environmental protection control shall be implemented through environmental assessment upon approval of plans and programmes, through EIA as a condition in the development of the investment process, as well as by means of issuance of integrated and other permits provided for in the law.Article 153(1) The purpose of preventive control shall be to prevent pollution and/ or damage to the environment in excess of the permissible levels prior to implementation of the proposed and/or planned activity.(2) In the course of performance of the functions thereof and for the purpose of attaining the objective of preventive control, the authorities covered under Article 148 (3) shall issue warning statements to the natural persons, the management bodies of juristic persons and to sole traders subject to control.(3) The statements drawn in pursuance of Paragraph (2) shall present the facts or circumstances which may lead to environmental damage and/or pollution and shall give mandatory prescriptions for avoidance of the facts and/or circumstances as presented therein.(4) The prescriptions in the statement under Paragraph (3) shall be binding on the inspected person.Section IIICurrent and Follow-Up ControlArticle 154(1) Current control shall comprehend:1. control of the quality of the environmental media and of the factors impacting the said media;2. control over compliance with the conditions specified in the permits and environmental impact assessment decisions as issued by the Ministry of Environment and Water, the Basin Directorates and the Regional Inspectorates of Environment and Water and of the measures provided for in the programmes.(2) (Supplemented, SG No. 77/2005) Current control shall be implemented by means of conduct of inspections of documents and on-site inspections, observations and measurements.(3) (New, SG No. 77/2005) Where any documents certifying compliance with the established requirements are found missing upon an inspection of documents or an on-site inspection, the inspected person shall present the said documents within seven days after the inspection.(4) (Renumbered from Paragraph 3, SG No. 77/2005) Current control shall include access to:1. the data on the self-monitoring of the site, conducted by the operator;2. information relating to the production activity on the site;3. the corporeal immovables and facilities constituting state, municipal and private property.Article 155(1) In the course of exercise of current control, officials designated by the authorities covered under Article 148 (3) herein shall draw up memorandums of ascertainment.(2) The memorandums of ascertainment referred to in Paragraph (1) shall present the facts and circumstances as ascertained and shall give mandatory prescriptions, specifying deadlines and persons responsible for implementation of the said prescriptions.Article 156Follow-up control shall be implemented by following:1. the results of implementation of the measures provided for in the EIA decisions and the permits, as well as the results of execution of development projects;2. implementation of the prescriptions given to the persons controlled during preventive and current control.Article 157The drawing up of written statements on commission of administrative violations and the issuance of penalty decrees shall be part of current and follow-up control.Article 157a(New, SG No. 77/2005)(1) The Minister of Environment and Water shall control the fulfilment of the obligations of the operator where to a permit referred to in Article 104 (1) herein has been issued.(2) (Amended, SG No. 95/2005, SG No. 82/2006, SG No. 102/2006) Control under Paragraph (1) shall be exercised by means of joint inspections by commissions designated by an order of the Minister of Environment and Water and composed of representatives of the territorial and regional structures of the Ministry of Environment and Water, the Ministry of Health, the Ministry of State Policy for Disasters and Accidents, the Fire and Emergency Safety and Public Protection National Service, the State Agency for Metrological and Technical Surveillance, and authorized representatives of the regional governors and of the municipality mayors.(3) The commissions referred to in Paragraph (2) shall control:1. the fulfilment of the conditions of the permit referred to in Article 104 (1) and Article 116e (1) herein;2. the fulfilment of the obligations of the operator referred to in Item 1 of Article 115, Article 116a, Item 1 of Article 116c (1) and Item 1 of Article 116c (2), and Article 116h (2) herein.(4) The joint inspections shall be conducted:1. on the basis of an annual plan for control activity of the commissions;2. upon receipt of complaints and alerts.(5) The joint inspections shall be conducted at least once a year for establishments and/or installations with major hazard potential.(6) By the order referred to in Paragraph (2), the Minister of Environment and Water shall designate the members and the chairperson of the commission by name, as well as the sites subject to inspection and the scope of inspection.(7) The Minister of Environment and Water shall authorize the chairperson of the commission referred to in Paragraph (2) to draw up memorandums of ascertainment on the inspections as conducted, to issue mandatory prescriptions, and to draw up written statements on the administrative violations ascertained upon the inspection.(8) The Minister of Environment and Water shall issue an order endorsing the annual plan for control activity.(9) The organization of work of the commission referred to in Paragraph (2) and the form of the annual plan referred to in Item 1 of Paragraph (4) shall be determined by the ordinance referred to in Article 104 (6) herein.Article 157b(New, SG No. 77/2005)(1) During the conduct of a joint inspection, the chairperson of the commission referred to in Article 157a (2) herein shall draw up a memorandum of ascertainment, which shall be signed by all members of the said commission.(2) The memorandum referred to in Paragraph (1) shall record the facts and circumstances as ascertained and shall give mandatory prescriptions, specifying time limits and persons responsible for acting on the said prescriptions.(3) Upon ascertainment of violations, the chairperson of the commission referred to in Article 157a (2) herein shall draw up a written statement on administrative violation.(4) The Minister of Environment and Water shall issue a penalty decree, imposing thereby the relevant administrative sanction on the operator.Article 157c(New, SG No. 77/2005)(1) Upon conduct of an inspection, the members of the commission referred to in Article 157a (2) herein shall have the right to require the requisite data, information, reference briefs and explanations from the inspected persons and from third parties in connection with the performance of the controlled activity.(2) The operator of the establishment and/or installation shall be obligated to ensure to the representatives of the control commission referred to in Article 157a (2) herein the assistance necessary for execution of all inspections of the establishment and/or installation, the taking of samples and collection of the information necessary for discharge of the duties thereof under this Act.(3) The members of the commission referred to in Article 157a (2) herein shall be obligated to respect the confidentiality of any official, manufacturing and commercial secrets as have come to the knowledge thereof in the course of or in connection with the performance of the control activity.Chapter TenCOERCIVE ADMINISTRATIVE MEASURES AND ADMINISTRATIVEPENALTY LIABILITYArticle 158The Minister of Environment and Water or officials authorized thereby, the RIEW directors, the National Park directors and the Basin Directorate directors shall apply coercive administrative measures in the cases of:1. accidents caused by acts of omissions of owners or users of sites and areas;2. disaster situations;3. occurrence of an immediate danger of environmental pollution or damage or of damage to human health or property;4. prevention or termination of administrative violations related to environmental protection, as well as prevention and/or elimination of the harmful consequences of such violations.Article 159(1) Coercive administrative measures shall be preventive, terminative and remedial.(2) Upon application of coercive administrative measures, the Minister of Environment and Water or officials authorized thereby, the RIEW directors, the National Park directors and the Basin Directorate directors shall issue reasoned orders to terminate, with the assistance of the regional governors, the production activity of owners or users of areas, as well as to deny owners and users access to area, inter alia by means of affixation of lead seals and paper tapes.(3) The marking of the lead seal and the manner of affixation of lead seals and paper tapes referred to in Paragraph (2) shall be endorsed by an order of the Minister of Environment and Water.Article 160(1) A coercive administrative measure shall be applied by means of a reasoned order issued by an authority covered under Article 158 herein.(2) Any order referred to in Paragraph (1) shall specify the type of coercive administrative measure and the manner of application thereof.(3) Any order referred to in Paragraph (1) shall be served on the person concerned according to the procedure established by the Code of Civil Procedure. (4) (Amended, SG No. 30/2006) Any order referred to in Paragraph (1) shall be appealable by the persons concerned according to the procedure established by the Administrative Procedure Code, as the case may be.(5) An appeal against any order referred to in Paragraph (1) shall not stay the execution thereof.Article 161(1) (Supplemented, SG No. 77/2005) The Minister of Environment and Water or an official authorized thereby shall appeal against any acts of the administrative authorities which conflict the statutory instruments in the field of environmental protection.(2) Any appeal under Paragraph (1) shall stay the execution of the act appealed.Article 162(1) Any violation of this Act, which do not constitute a criminal offence, shall be punishable by a fine of BGN 100 or exceeding this amount but not exceeding BGN 6,000, in the case of natural persons, regional governors, municipality mayors, ward mayors, mayoralty mayors and officials, and by a pecuniary penalty of BGN 1,000 or exceeding this amount but not exceeding BGN 20,000, in the case of juristic persons and sole traders.(2) The fine or pecuniary penalty under Paragraph (1) shall be imposed in a double for a repeated violation.(3) Manifestly minor cases of violation committed by natural persons shall be punishable by a fine of BGN 100.Article 163(1) (Redesignated from Article 163, SG No. 77/2005) Any independent expert in environmental impact assessment, who violates Article 83 (3) herein, shall be liable to a fine of BGN 1,000 or exceeding this amount but not exceeding BGN 10,000, unless subject to a severe penalty.(2) (New, SG No. 77/2005) Anyone who uses the marking of the National Eco-label Award Scheme for products of his, her or its own and for technical or advertising materials connected therewith without having the right to do so shall be liable to a fine or a pecuniary penalty, as the case may be, of BGN 1,000 or exceeding this amount but not exceeding BGN 5,000.(3) (New, SG No. 77/2005) The fine or pecuniary penalty, as the case may be, shall be imposed in a double amount for a repeated violation.Article 164A pecuniary penalty of BGN 10,000 or exceeding this amount but not exceeding BGN 100,000 leva shall be imposed on any juristic-person or sole-trader operator of a site for any failure to comply with the requirements established by Article 125 herein.Article 164a(New, SG No. 77/2005)Any operator of an installation, which or who fails to fulfil the requirements under Article 131h (1) herein, shall be liable to a pecuniary penalty of BGN 200 for each tonne of carbon dioxide equivalent for which the said operator has not surrendered allowances.Article 165(1) Any official, who shall deny access to the site or area to a controlling authority conducting an on-site inspection, measurement or taking a sample, will be liable to a fine of BGN 2,000 or exceeding this amount but not exceeding BGN 20,000.(2) A pecuniary penalty of BGN 2,000 or exceeding this amount but not exceeding BGN 20,000 shall be imposed on any juristic person or sole trader in the cases where any factory or office worker employed thereby shall commit a violation under Paragraph (1), irrespective of whether the controlling authority is in a position to establish the identity of any such factory or office worker.Article 166The sanctions provided for under Article 165 herein shall furthermore be imposed on any person who:1. fails to submit the available self-monitoring data to the controlling authorities;2. fails to comply with the conditions set in the permits and in the EIA decisions;3. (amended, SG No. 77/2005) fails to implement the prescriptions given in the individual administrative acts and the memoranda of ascertainment under Article 155 herein as issued by the Minister of Environment and Water, the RIEWs directors, the basin directorate directors, the national park directors, or by officials authorized thereby.Article 166a(New, SG No. 77/2005)(1) Any natural or legal person, who or which carries out an activity without holding a permit referred to in Article 104 (1) herein or without a decision modifying the permit referred to in Item 2 of Article 116e (1) herein, in the cases where such permit or decision is required, shall be liable to a fine or a pecuniary penalty, as the case may be, of BGN 30,000 or exceeding this amount but not exceeding BGN 100,000, unless subject to a severe penalty.(2) Any natural or legal person, who or which fails to comply with the conditions provided for in a permit referred to in Article 104 (1) herein or in a decision referred to in Item 2 of Article 116e (1) herein, or who or which fails to fulfil the obligations referred to in Item 1 of Article 115 and Article 116h (1) herein, shall be liable to a fine, unless subject to a severe penalty, or to a pecuniary penalty, as the case may be, of BGN 10,000 or exceeding this amount but not exceeding BGN 20,000.(3) Any natural or legal person, who or which fails to fulfil the obligations referred to in Article 116a (1) and (2) herein, shall be liable to a fine, unless subject to a severe penalty, or to a pecuniary penalty, as the case may be, of BGN 5,000 or exceeding this amount but not exceeding BGN 10,000.(4) Any natural or legal person, who or which fails to comply with the time limits provided for in Article 108 (1), Article 116a (3) and (4), Item 1 of Article 116c (1) and Item 1 of Article 116c (2) herein, shall be liable to a fine or a pecuniary penalty, as the case may be, of BGN 2,000 or exceeding this amount but not exceeding BGN 5,000.Article 167(Supplemented, SG No. 77/2005) The written statements whereby administrative violations under this Act are ascertained shall be drawn up by officials designated by the Minister of Environment and Water or by officials or, respectively, by the RIEW directors, the basin directorate directors or the national park directors.Article 168(Supplemented, SG No. 77/2005) The penalty decrees under this Act shall be drawn up according to the procedure established by the Administrative Violations and Sanctions Act and shall be issued by the Minister of Environment and Water or by officials authorized thereby, by the RIEW directors, the basin directorate directors or the national park directors.Article 169(1) The written statements ascertaining administrative violations under this Act may furthermore be drawn up by representatives of any public and of non-governmental ecologist organizations designated by the Minister of Environment and Water.(2) The penalty decrees under Paragraph (1) shall be issued by the Minister of Environment and Water or by officials authorized thereby.Chapter ElevenCIVIL LIABILITYArticle 170(1) Any person, who shall culpably inflict environmental pollution or damage on another, will be obliged to indemnify the aggrieved party.(2) In cases where assets constituting state property has been damaged, the party empowered to bring an action under Paragraph (1) shall be:1. the Minister of Environment and Water, if the detriment extends over the territory of multiple administrative regions;2. the competent Regional Governor, if the detriment extends over the territory of multiple municipalities.(3) In cases where assets constituting municipal property has been damaged, the municipality mayor shall be empowered to bring the action under Paragraph (1).Article 171The aggrieved parties under Article 170 (1) and (2) herein may bring action against the offender for cessation of the violation and for elimination of the consequences of pollution occurred.Article 172The consequences caused by transboundary environmental pollution shall be eliminated in pursuance of an international treaty whereto the Republic of Bulgaria is a party.SUPPLEMENTARY PROVISIONS 1. Within the meaning of this Act:1. "Environment" shall be a complex of natural and anthropogenic factors and media in a state of mutual dependence, which affect the ecological balance and the quality of life, human health, and cultural and historical heritage.2. "Environmental protection" shall be a complex of activities intended to prevent degradation of the environment, the rehabilitation, conservation and improvement thereof.3. "Natural resources" shall be the elements of biotic and abiotic nature used or useable by man to satisfy the needs thereof.4. "Renewable resources" shall be the resources which naturally replenish themselves or which may be replenished in whole or in part by special activities and whose replenishability t rates comparable to the rates of the exploitation thereof is regarded as proven. All other resources shall be non renewable.5. "Environmental pollution" shall be the change in environmental quality as a result of the occurrence and introduction of physical, chemical or biological factors from a natural or anthropogenic source inside or outside Bulgaria, irrespective of whether the effective national limit values are exceeded.6. "Environmental damage" shall be any modification of one or several of the media comprising the environment which leads to deterioration of the quality of human life, reduction of biological diversity, or difficult restoration of natural ecosystems;7. "Available primary information" shall be the information presenting the results of measurements, tests, observations and other such activities not accompanied by analyses, forecasts and explanations, which is collected within the scope of the obligations of the competent administration, without being expressly requested by a person concerned.8. "Available pre-processed information" shall be the information which is processed, summarized and analyzed within the scope of the obligation of the competent administration, without being expressly requested by a person concerned.9. "Expressly processed information" shall be the information collected or processed, summarized and analyzed at the request of a person concerned.10. "Collection of information" shall be the actions of the competent administrations and of the obligated natural and juristic persons, whereby the facts constituting primary information are measured, ascertained and observed and whereby the information is processed.11. "Reporting of information" shall be the act of delivery of the information by the obligated person to the competent administration or to the competent authority.12. "Provision of information" shall be the act whereby the parties concerned are granted access to the available information.13. "Landscape" shall be an area whereof the specific aspect and elements have emerged as a result of actions and interactions between natural and/or human factors.14. "Soil" shall be the upper layer of the Earth's crust in so far as it is the exponent of soil functions, including liquid components (soil solution) and gaseous components (soil air), excluding ground water, river channels and bottoms of water basins;15. "Soil functions" shall be:a) basis for life and living space for human beings, animals, plants and soil organisms;b) an element of the natural balance, especially with the hydrological and nutrient cycles thereof.16. "Harmful soil modifications" shall be the disturbance of the soil functions causing significant harm and damage to the individual and to the community in general:a) chemical pollution in excess of the maximum permissible quantities with heavy metals and metalloids, resistant organic pollutants, pesticides and oils, including salinization and acidification;b) pollution with fresh fertilizer residues and concentrated mineral fertilizers, as well as with various types of waste;c) physical degradation, such as water and wind erosion with the anthropogenic aspects thereof, water logging and swamping, consequences of burning of stubble and plant residue.17. (Amended, SG No. 77/2005) "Development proposal" shall be:(a) the predesign (predevelopment) studies or the design terms of reference in connection with a request to authorize development-project designing for new construction, activity, technology or building of installations or schemes;(b) other interventions in the natural surroundings and landscape, including those involving the extraction of mineral resources.18. "Impact" shall be any direct effect on the environment that may be caused by the implementation of a development proposal for construction, activity or technology, including the effect on human health and safety, flora, fauna, soil, air, water, climate, landscape, historical monuments and other physical structures or the interaction among these factors.19. "Transboundary impact" shall be any impact, not exclusively of a global nature, within an area under the jurisdiction of a country, caused by a proposed activity the physical origin whereof is situated wholly or in part within an area under the jurisdiction of another country.20. (Amended, SG No. 77/2005) "Initiator of a development proposal" shall be a public authority, a natural or a legal person, who or which, according to the procedure of a special law, a statutory instrument or administrative act, has rights to initiate a development proposal or to apply for approval of a development proposal.21. (Amended, SG No. 77/2005) "Initiator of a plan or programme" shall be the person or the authority who or which is authorized to commission the preparation of the said plan or programme.22. "Plans and programmes" shall be plans, programmes, strategies and other similar documents, as well as the alterations thereof, which:a) are required by statutory, regulatory or administrative provisions;b) are subject to preparation and/or adoption by a public authority at national, regional or local level or are prepared by a competent authority for adoption according to a procedure approved by the Council of Ministers or the National Assembly.23. "States concerned in a transboundary context" shall be the Party of origin of an environmental impact and the other Parties to the Convention on Environmental Impact Assessment in a Transboundary Context affected by the said impact.24. "Public" shall be one or more natural or juristic persons and the associations, organizations or groups thereof, established in accordance with national legislation.25. (Supplemented, SG No. 77/2005) "The public concerned" shall be the public referred to in Item 24, which is affected or is likely to be affected by, or which has an interest in, the procedures for approval of plans, programmes, development proposals, and in the decision-making process on the issuance or updating of permits according to the procedure established by this Act, or in the conditions set in the permits, including the non-governmental organizations promoting environmental protection which are established in accordance with national legislation.26. "Zero alternative" shall be the possibility not to implement the activity provided for in the development proposal.27. "Non-technical summary" shall be a brief presentation of the information in the EIA statement in a language comprehensible to the general public of a length not less than 10 per cent of the length of the statement and containing the requisite visuals (maps, photographs, charts).28. (Amended, SG No. 77/2005) "Extension" shall be additional construction, activity, technology or building of installations or schemes within the area of a site which is in operation, under construction or in a process of clearance, which may lead to significant adverse effects on the environment.29. (Amended, SG No. 77/2005) "Installation" shall be a stationary technical unit within an establishment where dangerous substances and preparations are used, produced or stored. It shall include all the equipment: pipe work, machinery and tools serving the installation and necessary for the operation thereof.29a. (New, SG No. 77/2005) "Storage of dangerous substances" shall be the warehousing or depositing in safe custody of dangerous substances in the establishment and/or the installation.29b. (New, SG No. 77/2005) "Domino effect" shall be the increase of the likelihood and the possibility or the consequences of a major accident at an establishment and/or installation or at a group of establishments and/or installations because of the geographical proximity to another establishment and/or installation or to a group of establishments and/or installations or consequent to the dangerous substances which are produced, used and/or stored within the area of the said establishment and/or installation.29c. (New, SG No. 77/2005) "Establishments serving the public" shall be:(a) creches and kindergartens and specialized institutions providing social services to children and schoolchildren, schools and higher schools, pupil and student dormitories, music, language and sports schools, and centres for work with children;(b) medical-treatment and health-care facilities, medical offices, occupational medicine services;(c) sports grounds: stadiums and sports halls;(d) theatres, cinemas, concert halls;(e) railway stations, airports, ports, bus stations;(d) office buildings and public buildings.29d. (New, SG No. 77/2005) "Measures necessary to prevent major accidents" shall be the technical, organizational and managerial measures necessary for the safe operation of the establishment and/or installation.30. "Environmental impact assessment decision" shall be an individual administrative act of the competent authority covered under Article 94 herein whereby the admissibility of design of an development proposal underItem 17 is approved by means of assessment of the location (building site, road bed) of the sites and of the expected environmental impact on the basis of an EIA statement, taking into account the public opinion and the observations expressed by the public concerned.30a. (New, SG No. 77/2005) "Environmental nuisances" shall be the disturbance and inconvenience created by the environmental factors, determined according to studies in this field.31. "Enterprise" shall be the whole area and the sites therein under the control of an operator, where dangerous chemical substances or preparations are present in one or more facilities, including common or related infrastructures or activities.32. "Substance" shall be any chemical element or compound with the exception of the substances which are sources of ionizing radiation within the meaning of Item 15 of 1 of the Safe Use of Nuclear Energy Act. 33. "Industrial pollution" shall be any direct or indirect entry, resulting from human activities, into the air, water or soil of substances, vibrations, heat radiation or noise that may have a certain adverse impact on human health or on the environment, cause damage to physical structures, limit or prevent the possibilities for use of the useful qualities of the environment and of its other legitimate uses.34. "Installation" shall be:a) each individual installation according to Annex 4 hereto, including the separate technological facilities in direct technical connection therewith and which may have an effect on the pollution, emissions and waste resulting from the operation of the installation;b) any technological facility incorporating one or more installations according to Annex 4 hereto;c) another installation or facility whereof the operator has submitted an application for the issuance of an integrated permit for operation of the said installation in compliance with the provisions of Chapter Seven herein.The installations and facilities intended for research, development or exploration activities shall be excluded from this definition.35. "Existing installation" shall be any installation that is commissioned or has received a favourable EIA decision in compliance with the effective legislation prior to the effective date of this Act, provided that the said installation is commissioned not later than one calendar year after the date of the said decision.36. "Emission" shall be the direct or indirect release of substances, vibrations, heat or noise from individual or diffuse sources within a specific installation into the air, water or soil.37. "Emission limit value" shall be the mass, expressed in terms of certain specific parameters, concentration and/or level of an emission, which may not be exceeded during one or more pre-defined periods of time. Emission limit values may furthermore be established for certain groups, families or categories of substances.38. "Environmental quality standards" shall be the requirements as established in the legislative acts regulating the environment which must be complied with at a given time by the environment or particular part thereof, such as standards of noxious substance content in the ambient air, standards of water quality in the water bodies, standards of the quality of the other environmental media, and standards of permissible values of the factors polluting or damaging the environment.39. (Amended and supplemented, SG No. 77/2005) "Integrated permit" shall be an individual administrative act granting authorization to operate all or part of a specific facility, subject to certain conditions which guarantee that the said facility complies with the requirements of Chapter Seven herein. A permit may cover one or more facilities or parts of facilities on the same site, are operated by the same operator, and some of which may not fall within the scope of Annex 4 hereto.40. "Change in operation of the installation" shall be any reconstruction involving change of the nature of the operation of the installation, the functioning thereof or extension of the said installation that may have a certain impact on the environment.41. (Amended, SG No. 77/2005) "Substantial change" shall be a change in operation of the facility which, in the opinion of the competent authority, may have significant negative effects on human health or on the environment. Any change to or increase of capacity shall be deemed to be substantial if the change of increase of capacity in itself meets the thresholds set out in Annex 4 hereto.42. "Best available techniques" shall be the most effective and advanced stage in the development of activities and their methods of operation which indicate the practical suitability of particular techniques for providing in principle the basis for emission limit values designed to prevent and, where that is not practicable, generally to reduce emissions and the impact on the environment as a whole:a) "techniques" shall include both the technology used and the way in which the installation is designed, built, maintained, operated and decommissioned;b) "available" shall be techniques developed on a scale which allows implementation in the relevant industrial sector, under economically and technically viable conditions, taking into consideration the costs and advantages, whether or not the techniques are used or produced inside the relevant member state, as long as they are reasonably accessible to the operator;(c) (Amended, SG No. 77/2005) "best" techniques shall be the most effective techniques in achieving a high general level of protection of the environment as a whole.43. (Amended, SG No. 77/2005) "Operator" shall be any natural or legal person who or which owns an establishment, installation and/or facility or controls the operation thereof.44. "Organization" shall be a company, association, enterprise, government authority or institution, a part or a combination thereof, incurring limited liability or enjoying another status at public or private law, which has a function and administrative structure in its own right. In respect of organizations with multiple functional units, each unit may be defined as a single organization.45. "Environmental management system" shall be that part of the overall management system which includes the organizational structure, planning activities, responsibilities, practices, procedures, processes and resources for elaboration, implementation, attainment, review and maintenance of environmental policy.46. "Audit of the environmental management system" shall be systematic and documented process of inspection for objective obtaining and evaluation of evidence in order to determine whether the environmental management system of an organization complies with the auditing criteria as established by the said organization and to notify the management of the said organization of the results of this process.47. "Affixation of lead seals" shall be the placing of a lead seal by the controlling authority for the purpose of restricting the access of persons to properties and facilities.48. "Affixation of paper tapes" shall be the placing of a paper tape bearing the impression of an ink stamp by the controlling authority for the purpose of restricting the access of persons to properties and facilities.49. "Environmental damage resulting from past act or omission" shall be old pollution of sites or building structures on industrial sites with hazardous substances and waste generated by industrial, agricultural, commercial or transport activity posing a hazard to human health or to the environment.50. "Sustainable development" shall be development meeting the needs of the present without limiting or compromising the ability and capacity of future generations to meet their own needs. Sustainable development shall combine the two main aspirations of society:a) achievement of economic growth ensuring improving living standards;b) present and future protection and improvement of the environment.51. "Accident" shall be a sudden technological failure of machines, facilities and units involving stopping or serious disturbance of the technological process, explosions, occurrence of fire, excessive environmental pollution, destruction, casualties or hazard to human life and public health.52. "Environmental monitoring" shall be the collection, evaluation and summarizing of environmental information by means of continuous or periodic observation of certain qualitative and quantitative indicators characterizing the state of the environmental media and the changes therein resulting from the impact of natural and anthropogenic factors.53. "National Environmental Monitoring System" shall be a complex of measurement, analytical and information activities intended to provide timely and reliable information on the state of the environmental media and the factors impacting the said media, which is used for analyses, assessments and forecasts to justify activities to conserve and protect the environment and human health against harmful impacts.53a. (New, SG No. 77/2005) "Substantial change to an establishment and/or installation" shall be:(a) any changes or modifications in the operation of the establishment, planned by the operator, including the closure or modification of existing installations or the construction of new installations, which lead to new major-accident scenarios and necessitate changes in the documents submitted;(b) any increase by more than 5 per cent in the quantity of each of the dangerous substances present at the establishment, the introduction of new dangerous substances in quantities exceeding 10 per cent of the qualifying quantities indicated in Table 1 and Table 3 of Annex 3 hereto;(c) any changes in the statutory requirements for operational safety of the establishment and/or installation, requiring the use of other techniques;(d) changes in the statutory framework regulating the environment.54. (Amended, SG No. 77/2005) "Dangerous substance" shall be any substance, preparation or mixture specifically named in Table 1 of Annex 3 hereto, or classified in at least one of the danger categories indicated in Table 3 of Annex 3 hereto, and present as a raw material, product, by-product, residue or intermediate, including a substance which may be generated as a result of a side reaction or upon occurrence of a major accident.54a. (New, SG No. 77/2005) "Major accident" shall be any accident involving dangerous substances listed in Table 1 of Annex 3 hereto or dangerous substances classified in at least one of the danger categories indicated in Table 3 of Annex 3 hereto and leading to death or injury of persons inside or outside the establishment and/or installation, damage to or contamination of the environmental media or substantial damage to property and physical infrastructure in the area around the establishment and/or installation, in accordance with the criteria under Annex 5 hereto.54b. (New, SG No. 77/2005) "Major-accident hazard" shall be any act or omission involving a dangerous substance listed in Table 1 of Annex 3 hereto or a dangerous substance classified in at least one of the categories indicated in Table 3 of Annex 3 hereto, which may injure human health and/or the environment.55. "Integration of national environmental policy into sectoral policies" shall mean the reckoning with, and incorporation of, the environmental protection requirements into the process of development, application and enforcement of the sectoral policies as defined in Article 9 herein.56. "Good agricultural practice" shall be the agricultural practice which is based on the principles of sustainable development.57. "Areas placed under a special regime of protection" shall be areas where special protective measures are introduced for rare species of flora and fauna and for the habitats thereof.58. (New, SG No. 77/2005) "Allowance" shall be an allowance to emit one tonne of carbon dioxide equivalent during a specified period, which shall be valid only for the purposes of the scheme for greenhouse gas emission allowance trading.59. (New, SG No. 77/2005) "Greenhouse gases" shall be the six gases regulated by the Kyoto Protocol: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydro fluorocarbons (HCFs), per fluorocarbons (PFCs) and sulphur hexafluoride (SF6).60. (New, SG No. 77/2005) "Tonne of carbon dioxide equivalent" shall be one metric tonne of carbon dioxide (CO2) or an amount of any other greenhouse gas with an equivalent global-warming potential.61. (New, SG No. 77/2005) "Emission reduction unit" shall equal to one tonne of carbon dioxide equivalent, achieved as a result of a Joint Implementation project under Article 6 of the Kyoto Protocol .62. (New, SG No. 77/2005) "Certified emission reduction" shall equal one tonne of carbon dioxide equivalent, achieved as a result of a Clean Development Mechanism project under Article 12 of the Kyoto Protocol .63. (New, SG No. 77/2005) "Verification" shall be a process of independent audit and confirmation of the reliability, truthfulness and accuracy of the monitoring system and of the data and information reported in connection with greenhouse gas emissions.64. (New, SG No. 99/2006) A "project activity" shall be considered to be an activity under a project in accordance with Article 6 (Joint Implementation) and Article 12 (Clean Development Mechanism) of the Kyoto Protocol. 2. In cases where this Act requires notification or announcement and where no express rules or the application of expressly established procedure is provided for this, any such notification or announcement, as the case may be, shall follow the procedure established by the Code of Civil Procedure. TRANSITIONAL AND FINAL PROVISIONS 3. The Environmental Protection Act (promulgated in the State Gazette No. 86 of 1991, amended in No. 90 of 991; No. 100 of 1992; Nos. 31 and 63 of 1995; Nos. 13, 85 and 86 of 1997; No. 62 of 1998; Nos. 2 and 67 of 1999; Nos. 26, 27 and 28 of 2000; Nos. 1 and 26 of 2001) is hereby superseded. 4. The secondary legislative acts for the application of this Act shall be issued within six months after the entry of the said Act into force. 5. Until the issuance of the respective new secondary legislative acts, the secondary legislative acts issued in pursuance of the Environmental Protection Act as superseded shall apply in so far as they do not conflict this Act. 6. Until the adoption of legislative acts on the activities covered under Article 144 (1) herein, methodologies and instructions of the Minister of Environment and Water shall apply. 7. Within six months after the entry of this Act into force, the operators of installations falling within the scope of activities listed in Annex 4 hereto shall be obliged to give notification in writing of this fact to the Ministry of Environment and Water. 8. (Amended, SG No. 105/2005) Any delinquent fees, fines and sanctions under this Act, the Water Act, the Waste Management Act, the Medicinal Plants Act, the Protected Areas Act and the Clean Ambient Air Act shall be collected with interest on taxes, fees and other such state receivables according to the procedure established by the Tax and Social Insurance Procedure Code . 9. (1) Upon privatization, with the exception of any privatization contracts concluded on or before the 1st day of February 1999 by non-resident and resident natural and juristic persons, the liability for damage caused to the environment and resulting from past acts or omissions, shall be incurred by the State under terms and according to a procedures established in an act of the Council of Ministers.(2) The evaluation of the damage referred to in Paragraph (1) until the time of privatization shall be performed in accordance with methods endorsed by the Minister of Environment and Water. 10. (1) Within one year after the entry of this Act into force, the municipality mayors shall elaborate the programmes referred to in Article 79 (1) herein.(2) Item 1 of Article 81 (1), Article 81 (3), Article 82 (1) and (4), and Section II of Chapter Six herein shall enter into force on the 1st day of July 2004.(3) Until the entry into force of the provisions specified in Paragraph (2), EIA of the national, functional-regional and administrative-regional development plans and programmes, the spatial-development plans and the modifications thereof shall be conducted according to a procedure established by a regulation of the Minister of Environment and Water. 10a. (New, SG No. 77/2005) The classification of existing establishments and/or installations for safe disposal of liquid waste, tailings ponds or slime ponds containing dangerous substances, as well as the classification of existing establishments and/or installations whereof the activities are concerned with prospecting, exploration for, extraction and processing of subsurface resources by means of chemical or thermal treatment whereupon dangerous substances are used, shall be carried out not later than the 31st day of December 2006. 11. (1) The requirement for issuance of an integrated permit under Chapter Seven herein shall apply to:1. new and, in the event of change of production activities, existing installations and facilities: as from the 1st day of January 2003;2. existing installations and facilities: during the period commencing on the 1st day of January 2003 and concluding on the 30th day of October 2007.(2) (Amended, SG No. 77/2005) The deadline for compliance with the conditions set in the integrated permits as issued for existing installations shall be the 31st day of October 2007, with the exception of the cases in which another special law in the sphere of environmental protection or the Treaty concerning the Accession of the Republic of Bulgaria to the European Union provides otherwise.(3) (New, SG No. 77/2005) For separate units of a specific existing large combustion plant, the deadline for compliance with the conditions set in the integrated permits as issued may be extended until the 31st day of December 2014, where the said large combustion plant does not burn local lignite coal and, by a decision of the Minister of Economy and Energy or of an official authorized thereby, the said plant is obligated to compensate part or all of the production of the decommissioned nuclear capacities and where compliance with the deadline referred to in Paragraph (2) would lead to insurmountable difficulties for fulfilment of the production obligations of the said plant to maintain the national energy balance. 11a. (New, SG No. 77/2005) Until the issuance of an integrated permit for the operation thereof under Chapter Seven herein, the relevant existing facilities and installations shall be subject to the condition set by the environmental impact assessment decisions issued according to the procedure established by the Environmental Protection Act as superseded (promulgated in the State Gazette No. 86 of 1991, corrected in No. 90 of 1991; amended in No. 100 of 1992, Nos. 31 and 63 of 1995, Nos. 13, 85 and 86 of 1997, No. 62 of 1998, Nos. 12 and 67 of 1999, Nos. 26, 27 and 28 of 2000, Nos. 1 and 26 of 2001; repealed in No. 91 of 2002). 12. (Repealed, SG No. 86/2003, new, SG No. 99/2006) Article 131h, para. 8 and Article 131m, para 1 shall be applied until 31 December 2012. 13. The Protection against the Harmful Impact of Chemical Substances, Preparations and Products Act (promulgated in the State Gazette No. 10 of 2000) shall be amended as follows:1. Chapter Four shall be repealed.2. Article 31 shall be repealed. 14. (Effective 1. 01. 2003) The Clean Ambient Air Act (promulgated in the State Gazette No. 45 of 1996, amended in No. 49 of 1996; No. 85 of 1997; No. 27 of 2000; No. 102 of 2001) shall be amended as follows:1. In Article 27: a) in Paragraph (1), the words "the municipal authorities shall prepare and adopt" shall be replaced by "the municipality mayors shall elaborate, and the Municipal Councils shall adopt";b) Paragraph (2) shall be amended to read as follows:"(2) The programmes referred to in Paragraph (1) shall be an integral part of the municipal environmental programmes referred to in Article 79 of the Environmental Protection Act."2. In the title of Chapter Six, the words "National Environmental Protection Fund" shall be replaced by "Enterprise for Management of Environmental Protection Activities".3. In Paragraphs (1) and (3) of Article 31, the words "National Environmental Protection Fund" shall be replaced by "Enterprise for Management of Environmental Protection Activities".4. In Paragraphs (1) and (3) of Article 32, the words "National Environmental Protection Fund" shall be replaced by "Enterprise for Management of Environmental Protection Activities".5. In Paragraphs (1) and (2) of Article 33, the words "National Environmental Protection Fund" shall be replaced by "Enterprise for Management of Environmental Protection Activities".6. In Article 44, the words "National Environmental Protection Fund" shall be replaced by "Enterprise for Management of Environmental Protection Activities".7. Paragraph 4b shall be repealed. 15. (Effective 1.01.2003) The Protected Areas Act (promulgated in the State Gazette No. 133 of 1998, amended in No. 98 of 1999; Nos. 28, 48 and 78 of 2000; No. 23 of 2002) shall be amended as follows:1. In Article 74: a) in Paragraph (1), the words "National Environmental Protection Fund" shall be replaced by "Enterprise for Management of Environmental Protection Activities".b) Paragraph (4) shall be amended to read as follows:"(4) The resources covered under Paragraph (1) shall be expended according to the Rules of Operation of the Enterprise for Management of Environmental Protection Activities."2. In Article 86: a) in Item 1 of Paragraph (2), the words "National Environmental Protection Fund" shall be replaced by "Enterprise for Management of Environmental Protection Activities";b) in Paragraph (4), the words "National Environmental Protection Fund" shall be replaced by "Enterprise for Management of Environmental Protection Activities". 16. (Effective 1.01.2003) Paragraph (1) of Article 25 of the Medicinal Plants Act amended in No. 23 of 2002) shall be amended as follows:1. In Item 2, the words "National Environmental Protection Fund" shall be replaced by "Enterprise for Management of Environmental Protection Activities".2. In Item 3, the words "the respective Municipal Environmental Protection Fund" shall be replaced by "the respective municipal budget". 17. (Effective 1.01.2003) The Water Act (promulgated in the State Gazette No. 67 of 1999, amended in No. 81 of 2000; Nos. 34, 41 and 108 of 2001; No. 47 of 2002) shall be amended as follows:1. In Article 196: a) the words "shall be credited to a special analytical subaccount of the National Environmental Protection Fund" shall be replaced by "shall be credited to the Enterprise for Management of Environmental Protection Activities shall be";b) Item 6 shall be repealed.2. In Article 197: a) in Paragraph (1), the words "The resources on the analytical subaccount shall be disbursed on" shall be replaced by "The resources covered under Article 196 herein shall be expended on";b) Paragraph (2) shall be amended to read as follows:"(2) The resources covered under Article 196 herein shall be expended in accordance with the Rules of Operation of the Enterprise for Management of Environmental Protection Activities. "3. In Paragraph (4) of Article 199, the words "National Environmental Protection Fund" shall be replaced by "Enterprise for Management of Environmental Protection Activities". 18. (1) The provisions of Articles 60 to 64, Items 1 and 4 of 12, and 14 to 17 incl. herein shall enter into force on the 1st day of January 2003.(2) Until the entry into force of the provisions referred to in Paragraph (1), the activity of the National Environmental Protection Fund shall be carried out in accordance with the provisions of 9 and Annex 7 to 9 of the 2002 National Budget of the Republic of Bulgaria Act.Waste Management ActPromulgated, SG No. 86/2003TRANSITIONAL AND FINAL PROVISIONS 13. The Environmental Protection Act (promulgated in the State Gazette No. 91 of 2002; corrected in No. 98 of 2002) shall be amended as follows:1. The words "the Limitation of the Harmful Impact of Waste on the Environment Act" shall be replaced passim by "the Waste Management Act".This Act was passed by the 39th National Assembly on July 23, 2002 and September 19, 2002, and the Official Seal of the National Assembly has been affixed thereto.Act to Amend and Supplement the Environmental Protection Act(Promulgated, SG No. 77/2005) .............................................................................SUPPLEMENTARY PROVISION 103. Throughout the Act, the words "alteration" and "the alteration" shall be replaced, respectively, by "modification" and "the modification", and the words "project client" and "the project client" shall be replaced, respectively, by "initiator" and "the initiator".TRANSITIONAL AND FINAL PROVISIONS 104. The first National Allocation Plan for Greenhouse Gas Emission Allowance Trading, referred to in Article 77a (1) (of the Environmental Protection Act), shall be one-year and shall cover the period commencing on the 1st day of January 2007 and concluding on the 1st day of January 2008. 105. Emission reduction units and certified emission reductions shall be used in the scheme for greenhouse gas emission allowance trading as from the 1st day of January 2008. 106. (1) The Minister of Environment and Water shall be the competent authority on the part of the Republic of Bulgaria responsible for the implementation of the Environment 2007-2013 Operational Programme, co-financed by the Cohesion Fund and the Structural Funds of the EU.(2) The Minister of Environment and Water may assign fulfilment of specific tasks in connection with the responsibilities referred to in Paragraph (1) to intermediate units.(3) The intermediate units under the Environment 2007-2013 Operational Programme shall be established by a decision of the Council of Ministers on a motion by the Minister of Environment and Water. 107. The pecuniary penalty referred to in Article 164a (of the Environmental Protection Act) shall amount to BGN 80 for the period commencing on the 1st day of January 2007 and concluding on the 1st day of January 2008. 108. The Council of Ministers shall adopt the ordinances covered under Article 131k (of the Environmental Protection Act) within one year after the entry of this Act into force. 109. The fees, fines and penalties due at the time of entry of this Act into force under this Act, the Water Act, the Waste Management Act, the Medicinal Plants Act, the Protected Areas Act, the Clean Ambient Air Act and the Protection against the Harmful Impact of Chemical Substances, Preparations and Products Act shall be collected according to the procedure established by Article 72a (of the Environmental Protection Act). 110. As from the date of entry into force of this Act, temporary standards, within the meaning given by Articles 10 and 10a of the Clean Ambient Air Act, may not be endorsed for existing facilities and installations for which an integrated permit is required.Act to Amend and Supplement the Environmental Protection Act(Promulgated, SG No. 65/2006). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . For more information visit www.solicitorbulgaria.com id: 308 Fri, 01 Aug 2008 03:25:05 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-environmental-protection-act-part-2 http://web.solicitorbulgaria.com/index.php/bulgarian-environmental-protection-act-part-2 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/ENVIRONMENTAL_PROTECTION_ACT1.jpg EUR http://web.solicitorbulgaria.com/index.php/bulgarian-environmental-protection-act-part-2 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Chapter OneGENERAL DISPOSITIONSSection IApplicability and ScopeArticle 1This Act shall regulate the social relations with regard to:1. protection of the environment for the present and future generations and protection of human health;2. conservation of biological diversity in conformity with the natural bio geographic characteristics of Bulgaria;3. the conservation and use of environmental media;4. the control and management of factors damaging the environment;5. the exercise of control over the state of the environment and over the sources of pollution;6. the prevention and limitation of pollution;7. the establishment and management of the National Environmental Monitoring System;8. environmental strategies, programmes and plans;9. collection of, and access to, environmental information;10. the economic organization of environmental protection activities;11. the rights and the obligations of the State, the municipalities, the juristic and natural persons in respect of environmental protection.Article… For more information visit http://www.solicitorbulgaria.com id: 309 Chapter OneGENERAL DISPOSITIONSSection IApplicability and ScopeArticle 1This Act shall regulate the social relations with regard to:1. protection of the environment for the present and future generations and protection of human health;2. conservation of biological diversity in conformity with the natural bio geographic characteristics of Bulgaria;3. the conservation and use of environmental media;4. the control and management of factors damaging the environment;5. the exercise of control over the state of the environment and over the sources of pollution;6. the prevention and limitation of pollution;7. the establishment and management of the National Environmental Monitoring System;8. environmental strategies, programmes and plans;9. collection of, and access to, environmental information;10. the economic organization of environmental protection activities;11. the rights and the obligations of the State, the municipalities, the juristic and natural persons in respect of environmental protection.Article 2The purposes of this Act shall be achieved by means of:1. regulation of the regimes of conservation and use of environmental media;2. control over the status and use of environmental media and of the sources of pollution and damage;3. establishment of permissible emission levels and of environmental quality standards;4. management of the environmental media and of environmental factors;5. environmental impact assessment (EIA);6. issuance of integrated permits for pollution prevention, reduction and control;7. designation and management of areas placed under a special regime of protection;8. development of the monitoring system for environmental media;9. introduction of economic regulators and financial mechanisms for environmental governance;10. regulation of the rights and obligations of the State, the municipalities, the juristic and natural persons.Article 3Environmental protection shall be based on the following principles:1. sustainable development;2. prevention and reduction of risk to human health;3. priority of pollution prevention over subsequent elimination of pollution damage;4. public participation in and transparency of the decision making process regarding environmental protection;5. public awareness regarding the state of the environment;6. polluter pays for damage caused to the environment;7. conservation, development and protection of ecosystems and the biological diversity inherent therein;8. restoration and improvement of environmental quality in polluted and disturbed areas;9. prevention of pollution and damage and of other adverse impacts on clean areas;10. integration of environmental protection policy into the sectoral and regional economic and social development policies;11. access to justice in environmental matters.Article 4The environmental media shall comprehend: ambient air, atmosphere, water, soil, bowels of the earth, landscape, natural sites, mineral diversity, biological diversity and the components therein.Article 5The factors of environmental pollution or environmental damage can be: natural and anthropogenic substances and processes; different types of waste and the locations therein; hazardous energy sources: noise, vibrations, radiation, as well as certain genetically modified organisms.Article 6The environmental media and the factors affecting the said media shall be managed, conserved and controlled according to a procedure established by this Act and by the special laws regulating the environmental media and factors.Article 7The requirements contained agreements and treaties to which the Republic of Bulgaria is party shall apply to transboundary pollution.Section IINational Environmental Protection Policy and EnvironmentalManagement AuthoritiesArticle 8The national environmental protection policy shall be implemented by the Minister of Environment and Water.Article 9The national environmental protection policy shall be integrated into sectoral policies: transport, energy, construction, agriculture, tourism, industry, education etc., and shall be implemented by the competent executive authorities.Article 10(1) Within the meaning of this Act, competent authorities shall be:1. the Minister of Environment and Water;2. the Executive Director of the Executive Environment Agency;3. the Regional Inspectorate of Environment and Water (RIEW) directors;4. the Basin Directorate directors;5. the National Park Directorate directors;6. the municipality mayors and, in the cities subdivided into wards, the ward mayors as well;7. the regional governors.(2) The following shall be competent to undertake the actions and activities provided for in this Act:1. within the territory of any municipality: the RIEW Director or the Municipality Mayor and, in the cities subdivided into wards, the Ward Mayor;2. within the territory of any administrative region: the Regional Governor or the RIEW Director;3. within the territory of several municipalities covered by a single RIEW: the Director of the competent Inspectorate;4. within the territory of several municipalities covered by different RIEWs: the Minister of Environment and Water.Article 11(1) (Previous Article 11, SG No. 65/2006) The Minister of Environment and Water shall perform the following functions:1. together with the authorities referred to in Article 9 herein, develop the environmental protection policy and strategy in the Republic of Bulgaria;2. direct the National Environmental Monitoring System through the Executive Environment Agency;3. control the state of the environment in Bulgaria;4. coordinate the controlling powers of other executive authorities in respect of the environment;5. issue orders, permits, instructions and endorse methodologies;6. jointly with the executive authorities concerned:a) establish emission limit values by type of pollutant and issue standards of maximum permissible concentrations of noxious substances by element of the environment and by area;b) endorse EIA methods;c) issue standards on efficient utilization of renewable and non- renewable natural resources;d) ensure the collection and provision of information on the state of the environment;7. perform other activities associated with environmental protection and management in conformity with the special laws;8. prepare an Annual Report on the State of the Environment.9. (new, SG No. 65/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) prepare and submit to the European Commission reports on the implementation of statutory instruments of the Acquis Communautaire in the field of Environment.(2) (New, SG No. 65/2006) The procedure and requirements for reporting on statutory instruments implementation to the European Commission under paragraph 1, item 9 shall be regulated with an ordinance adopted by the Council of Ministers.Article 12(1) There shall be established with the Minister of Environment and Water:1. a Supreme Environmental Expert Council;2. advisory councils on the policy of management of environmental media.(2) (Supplemented, SG No. 77/2005) Environmental expert councils shall be established with the Regional Inspectorates of Environment and Water and the Executive Environment Agency.(3) The functions, the tasks and the complement of the councils referred in Paragraphs (1) and (2) shall be established by Rules issued by the Minister of Environment and Water.Article 13(1) The Executive Environment Agency with the Minister of Environment and Water shall direct the National Environmental Monitoring System.(2) The Executive Environment Agency shall be a juristic person.(3) The Executive Environment Agency shall be managed and represented by an Executive Director.(4) The operation, the structure, the organization of work and the staffing of the Executive Environment Agency shall be determined by Rules of Organization adopted by the Council of Ministers.Article 14(1) The Regional Inspectorates of Environment and Water, the National Park Directorates and the Basin Directorates shall ensure the conduct of the national environmental protection policy at the regional level.(2) The bodies referred to in Paragraph (1) shall be juristic persons with the Minister of Environment and Water and shall be represented by the relevant directors or persons authorized thereby.(3) The heads of the bodies referred to in Paragraph (1) shall be secondary grantees of budgetary obligation authority under the Minister of Environment and Water.(4) (Supplemented, SG No. 77/2005) The RIEW directors, the national park directors and the basin directorate directors shall draw up warning statements and memorandums of ascertainment, shall issue prescriptions, orders on application of coercive administrative measures and penalty decrees.(5) The number, the territorial scope of activity, the functions and the structure of the RIEWs, the powers of the directors therein, as well as the activity of the National Park Directorates and of the Basin Directorates shall be determined with Rules issued by the Minister of Environment and Water.Article 15(1) The Municipality Mayors shall perform the following functions:1. inform the community about the state of the environment according to the requirements of this Act;2. together with the other authorities, elaborate and control plans for elimination of the effects of accidents and burst pollution within the territory of the municipality;3. organize waste management within the territory of the municipality;4. oversee the construction, maintenance and proper operation of waste water treatment plants in the urbanized areas;5. organize and oversee the cleanness, maintenance, conservation and expansion of the settlement green structures within the nucleated settlements and in the country areas, as well as the conservation of biological diversity, of the landscape and of the natural and cultural heritage therein;6. designate and make public the persons responsible for maintenance of the cleanness of streets, sidewalks and other areas for public use within the nucleated settlements, and oversee the performance of the duties of the said persons;7. organize the operation of eco-inspectorates, including such functioning on a pro bono basis, established by resolution of the competent Municipal Council, which are empowered to draw up written statements ascertaining administrative violations;8. designate the officials empowered to draw up written statements ascertaining administrative violations under this Act;9. exercise the powers vested therein under the special laws regulating the environment;10. designate the persons in the municipal administration possessing the requisite occupational skills to carry out the activities comprehended in environmental management.(2) The municipality mayors may delegate the performance of the functions covered under Paragraph (1) to the ward mayors and the mayoralty mayors.Article 16The Regional Governors shall perform the following functions:1. ensure the conduct of the national environmental protection policy within the territory of the administrative region;2. coordinate the work of the executive authorities and the administrations therein within the territory of the administrative region in respect of the conduct of the national environmental protection policy;3. coordinate the activities comprehended in the conduct of the environmental protection policy among the different municipalities within the territory of the administrative region;4. issue penalty decrees acting on written statements drawn up according to the procedure established by Item 8 of Article 15 (1) herein.Chapter TwoINFORMATION RELATING TO THE ENVIRONMENTArticle 17Anyone shall have the right of access to available information relating to the environment without having to prove a specific interest.Article 18The information relating to the environment shall be:1. available primary information;2. available pre-processed information;3. expressly processed information.Article 19"Information relating to the environment" shall mean any information in written, visual, aural, electronic or other physical form regarding:1. the state of the environmental media covered under Article 4 herein and the interaction there between;2. (supplemented, SG No. 77/2005) the factors covered under Article 5 herein, as well as the activities and/or measures, including administrative measures, international agreements, policies, legislation, including reports on application of environmental legislation, plans and programmes affecting or capable of affecting the environmental media;3. the state of human health and safety, inasmuch as they are or may be affected by the state of the environmental media or, through the said media, by the factors, activities or measures referred to in Item 2;4. cultural and historical heritage sites, buildings and installations, inasmuch as they are or may be affected by the state of the environmental media or, through the said media, by the factors, activities or measures referred to in Item 2;5. costs-benefit analysis and other economic analyses and assumptions used within the framework of the measures and activities referred to in Item 2;6. emissions, discharges and other harmful impacts on the environment.Article 20(1) Access to information relating to the environment may be denied where the request is for:1. classified information constituting a state secret or an official secret;2. information constituting an industrial or commercial secret, designated as such by law;3. intellectual property;4. information constituting personal data, where the natural person concerned has not consented to the disclosure of the said information, and according to the requirements provided for in the Protection of Personal Data Act; 5. information which would adversely affect the interests of a third party which has supplied the information requested without that party being under or capable of being under a legal obligation to do so, and where that party does not consent to the release of the material;6. information that will adversely affect the environmental media.(2) Information relating to the environment shall be provided within fourteen days after the date on which the applicant was notified about the decision of the competent authority to provide access to the information requested.(3) The persons who or which report information relating to the environment to the competent authorities shall be obliged to mark the information subject to any of the restrictions on provision covered under Paragraph (1) .(4) Upon making a decision to refuse provision of any information covered under Paragraph (1), the competent authority shall take into account the public interest served by disclosure of any such information.(5) In the cases of restricted access, the available information relating to the environment shall be provided in the part therein as can possibly be separated out from the information covered under Paragraph (1).(6) The restriction of the right of access to information shall not apply to any information relating to emissions of noxious substances into the environment expressed as limit values established by legislative acts.Article 21(1) Competent authorities under this Chapter shall be the central and local executive authorities that collect and hold information relating to the environment.(2) Competent authorities within the meaning of Paragraph (1) shall furthermore be the other bodies and organizations that dispose of resources of the consolidated national budget and that collect and hold information relating to the environment, with the exception of the legislative and judicial authorities.(3) (New, SG No. 77/2005) Any natural or legal person, who or which provides public services relating to the environment and who or which carries out this activity under the control of the authorities and organizations covered under Paragraphs (1) and (2), shall likewise be obligated to provide information relating to the environment according to the procedure established by this Chapter.Article 22(1) (Amended, SG No. 77/2005) Annually, the Council of Ministers shall lay before the National Assembly a report on the state of the environment, proposed by the Minister of Environment and Water who, after adoption of the said report, shall publish the said report as a National Report on the State and Protection of the Environment.(2) The Report referred to in Paragraph (1) shall be laid before the National Assembly not later than three months after the National Statistical Institute provides the requisite information and data.(3) (New, SG No. 77/2005) Annually, not later than the 30th day of April, each Regional Inspectorate of Environment and Water shall prepare a regional report on the state of the environment within the territory covered by the said inspectorate during the last preceding year. The content and scope of the regional report shall be determined by directions of the Minister of Environment and Water.Article 23(1) (Amended, SG No. 102/2006) In the event of accidental or other pollution, where the limit values for pollutants discharge in the environment as established by a statutory instrument or an individual administrative act are exceeded, the polluters, as well as the persons responsible for observance of the limit values shall be obligated to notify immediately the competent regional governors, mayors of the municipalities concerned, the relevant RIEWs, the basin directorates, and the authorities of the Ministry of State Policy for Disasters and Accidents and, in case of change of the radiation level, the Nuclear Regulatory Agency as well.(2) The competent authorities covered under Paragraph (1) shall be obliged to notify immediately the Ministry of Health and the affected community about the occurrence of pollution in excess of the emission limit values, suggesting measures for protection of human health and of property.Article 24On an annual basis, each head of an administrative structure in the system of the executive branch of government shall publish data for the arrays and resources of processed environmental information referred to in Item 2 of Article 18 herein.Article 25(1) The Minister of Environment and Water shall issue an order determining the description of the information arrays and resources referred to in Item 3 of Article 15 (1) of the Access to Public Information Act, where the said arrays and resources contain any information covered under Article 19 herein.(2) The order referred to in Paragraph (1) shall be promulgated in the State Gazette.(3) The description of the information arrays referred to in Paragraph (1) and in Article 24 herein shall be published on the Internet site of the Ministry of Environment and Water.Article 25a(New, SG No. 77/2005)(1) The competent authorities and persons covered under Article 21 herein shall develop an Internet site and shall maintain there through an environmental information data base, which shall be accessible to the general public at no charge.(2) The data base referred to in Paragraph (1) shall contain, as a minimum, the following information:1. texts of international treaties, conventions or agreements and legislation relating to the environment;2. strategies, plans and programmes relating to the environment;3. reports on the progress or application of the instruments and documents covered under Items 1 and 2, should any such reports have been prepared or maintained in an electronic form;4. the National Report and the regional reports on the state of the environment, as well as other reports on the state of the environment provided for in the law or in a statutory instrument of secondary legislation;5. data or consolidated data derived from the monitoring of activities which have or are likely to have an environmental impact6. public registers according to the procedure established by this Act or by other special environmental laws.(3) The information covered under Paragraph (2) shall be updated periodically.Article 26(1) The procedure established by Chapter Three of the Access to Public Information Act ("Procedure for Granting Access to Public Information") shall apply to the provision of access to information relating to the environment.(2) Any decision to grant access to information under Article 34 (1) of the Access to Public Information Act shall specify whether expressly processed information or another type of information is provided.Article 27(Amended, SG No. 30/2006) Any refusal to provide information as a party shall need to prepare the case for the defence therein in any proceeding provided for in this Act or in another law shall be appealable according to the procedure established by the Administrative Procedure Code. Article 28A charge for supplying any information referred to in Items 1 and 2 of Article 18 herein shall be made under the terms and according to the procedure established by Articles 20 to 22 of the Access to Public Information Act. Article 29The charge made for provision of expressly processed information shall be negotiated in each particular case.Article 30(1) (Supplemented, SG No. 77/2005, previous Article 30, SG No. 65/2006) The competent authorities shall provide, at no charge, available primary and pre-processed information relating to the environment, to one another as well as to the municipalities where the recipients need any such information to make decisions within the competence thereof, and for preparation of the reports referred to in Article 22, and Article 11, paragraph 1, item 9 herein.(2) (New, SG No. 65/2006) Natural and legal persons shall provide the competent executive authorities with the information necessary to prepare and submit reports to the European Commission in compliance with a procedure stipulated in the ordinance under article 11, paragraph 2 unless a different procedure is stipulated in another statutory instrument.Article 31In the broadcasts therein, the national public-service radio and television operators shall:1. disseminate information relating to environmental protection and management;2. ensure protection of the right to information on the state of the environment;3. popularize knowledge and scientific and technological advances in the field of environmental protection by means of transmission of Bulgarian and foreign educational programmes.Chapter ThreeCONSERVATION AND USE OF ENVIRONMENTAL MEDIAAND WASTE MANAGEMENTSection IGeneral ConditionsArticle 32Not-for-profit use of environmental media to meet own requirements shall be gratuitous save in the cases specified in this Act and in the special laws regulating the environment.Article 33For-profit use of natural resources as regulated by law shall be onerous.Article 34Any persons carrying on activities referred to in Articles 32 and 33 herein shall be obliged to protect and rehabilitate the environment.Section IIConservation and Use of Water and Water BodiesArticle 35(1) The conservation and use of water and water bodies shall be based on a long-term national policy.(2) The long-term policy of conservation and use of water and water bodies shall be based on efficient water management at both national and basin level with the main purpose of achieving a good state of all ground and surface waters, and of ensuring the quantity and quality of water necessary for:1. the needs of drinking and household water supply of the present and future generations;2. a favourable conservation status and development of ecosystems and wetlands;3. economic and social activities.Article 36(1) (Amended, SG No. 65/2006) The use of water and water bodies shall comprehend water intake and use of water bodies.(2) The use of water and water bodies shall be carried out:1. without permit;2. by permit;3. by the award of a concession.(3) Where the right to use water and water bodies is granted under various regimes to the same holder, the stricter regime shall apply.(4) (Amended, SG No. 65/2006) Both water intake and use of water bodies shall mandatorily require ensuring the minimum allowable runoff in rivers.Article 37The conservation of water and water bodies shall ensure:1. the balance between abstraction and natural recharge of water;2. preservation and improvement of the quality of both surface and ground waters.Article 38(Amended, SG No. 77/2005) The conservation and use of water and water bodies shall follow the terms and the procedure established by this Act and by special laws.Section IIISoil Protection, Sustainable Use and Restoration(Title amended, SG No. 89/2007) Article 39(Amended, SG No. 77/2005)(1) Soil conservation, sustainable use and recovery shall guarantee effective protection of human health and of the soil functions, considering that soil is a scarce, irreplaceable and practically irrecoverable natural resource.(2) Soil conservation, sustainable use and recovery shall target:1. (amended, SG No. 89/2007 ) prevention of soil degradation;2. sustained preservation of the multi-functional capacity of soil;3. ensuring effective protection of human health;4. preservation of soil qualities as an environment for normal development of soil organisms, plants and animals;5. exercise of preventive control for prevention of adverse modifications of soil and application of good land-use practices;6. (amended, SG No. 89/2007) elimination and/or mitigation of harmful modifications of soil quality caused by soil-degrading processes, according to the requirements of the types of land use.Article 40(Amended, SG No. 77/2005) Any legal and natural persons, who or which own and/or use land properties, shall be obligated not to cause any harmful soil modifications in their own and in the neighbouring land properties.Article 40a(New, SG No. 77/2005)The limit values for the permissible content of noxious substances in the soil shall be determined by an ordinance of the Minister of Environment and Water, the Minister of Health and the Minister of Agriculture and Forestry.Article 41The owners and users of land properties shall be obliged to take measures for the prevention of any harmful modification endangering the soil.Article 42(1) (Amended, SG No. 77/2005) Any person, who or which causes any harmful soil modification, shall be obligated to restore, at their own expense, the soil to the state preceding the damage as detected.(2) The owners and users of underground and overhead physical infrastructure networks and installations shall be obliged to maintain the said networks and facilities in serviceable condition and not to suffer contamination or other harmful modification of the surrounding soil.Article 43(1) The humus layer of the soil shall be placed under special protection.(2) Prior to commencement of construction or prospecting, exploration and extraction of subsoil resources, the humus layer of the soil shall be removed, deposited and utilized as intended under terms and according to a procedure established by a regulation issued by the Minister of Agriculture and Forestry, the Minister of Environment and Water, and the Minister of Regional Development and Public Works.(3) The activities covered under Paragraph (2) shall be carried out without contamination of or damage to the soil in the neighbouring land properties.(4) After finishing the activities covered under Paragraph (2), the project initiator shall be obliged to reclaim the disturbed ground.Article 44The owners and operators of waste landfills, including tailings ponds, slime ponds etc., as well as of installations for storage of waste and/or dangerous chemical substances, preparations and products, shall organize and operate the said installations in a manner precluding contamination of, and damage to, the soil and other environmental media.Article 44a(New, SG No. 77/2005)The inventorying and study of areas with contaminated soil, the required rehabilitation measures, as well as the maintenance of the rehabilitation action taken, shall be implemented according to an ordinance adopted by the Council of Ministers.Article 44b(New, SG No. 77/2005)The conservation, sustainable use and recovery of soil functions shall follow the terms and the procedure established by this Act and by a special law.Section IVConservation and Use of the Bowels of the EarthArticle 45Conservation of the bowels of the Earth shall be an essential obligation of all who carry out activities comprehending the prospecting and use of the said environmental medium.Article 46Conservation of the bowels of the Earth shall be ensured by means of:1. protection and efficient utilization of subsoil resources and of ground water;2. environmentally sound waste management and waste recovery;3. (repealed, SG No. 77/2005); 4. restoration and/or reclamation of grounds disturbed upon exploration and exploitation;5. effective protection against natural disasters, accidents and other destructive processes caused by human activity.Article 47The bowels of the Earth shall be used for:1. prospecting, exploration and extraction of subsoil resources;2. exploration and extraction of ground water and geothermal energy;3. industrial engineering and public works, construction of sites related to national defence; storage of waste; economic, tourist activities, scientific research and other activities.Article 48(Amended, SG No. 77/2005) Conservation and use of the bowels of the Earth upon prospecting, exploration and extraction of subsurface resources shall follow a procedure established by this Act and by the Subsurface Resources Act. Article 49Conservation of the bowels of the Earth upon the exploration and use of ground water shall follow the procedure established by the Water Act. Article 50(Amended, SG No. 77/2005) Conservation of the bowels of the Earth upon use thereof for other purposes shall follow the terms and the procedure established by this Act and by special laws.Section VConservation and Use of Biological DiversityArticle 51(1) The species, the natural habitats of species with the biological diversity inherent therein shall be subject to conservation and protection.(2) Conservation of the diversity of natural habitats and of species of wild flora and fauna shall follow the terms and a procedure established by a special law.(3) (New, SG No. 77/2005) The natural landscape shall be conserved and used in a manner and by means precluding a harmful impact, irreversible modifications and/or damage of the elements thereof.Article 52Wild plant and animal species shall be used in a manner and by means guaranteeing the sustainable development of the populations therein in the natural surroundings therein.Article 53(1) Long-term and annual plans and programmes shall be elaborated for conservation and use of forests, game, fish, herbs, mushrooms and other renewable wildlife resources.(2) The plans and programmes referred to in Paragraph (1) shall be prepared under terms and according to a procedure established by the relevant special laws.Article 54Fees shall be charged for use of forests, game, fish, herbs, mushrooms and other renewable biological resources from of state owned and municipal-owned land tracts and aquatic areas according to the relevant special laws.Section VIAmbient Air Quality ProtectionArticle 55Ambient air quality protection shall ensure:1. protection of human health, of living organisms, of natural and cultural assets against harmful impacts and prevention of the occurrence of risks and damage to society from modified atmospheric air quality, ozone layer depletion and climate change resulting from various human activities;2. preservation of ambient air quality in areas where it is not degraded, and improvement of the said quality in the remaining areas.Article 56Ambient air quality protection shall be based on the principles of sustainable development and shall be pursued under the terms and according to the procedure established by Chapter Seven herein and by the Clean Ambient Air Act. Section VIIWaste ManagementArticle 57Waste management shall be implemented for the purpose of prevention, mitigation or limitation of the harmful impact of waste on human health and on the environment and shall be ensured by means of:1. prevention or mitigation of the generation of waste and the degree of the hazard therein and, particularly, by means of:a) development and implementation of technologies ensuring efficient utilization of natural resources;b) technical development and placing on the market of products designed in such a manner so as the manufacture, use and safe disposal therein have no, or have the least possible, contribution to an increase of the quantity or hazard of waste and the risks of pollution therewith;c) development of appropriate techniques for final safe disposal of dangerous substances contained in waste designed for recovery, recycling or treatment;2. waste recovery by means of recycling, reuse or regeneration or by another processes of retrieval of recyclable resources or of use of waste as an energy source;3. safe storage of waste irrecoverable at the present stage of development.Article 58The persons wherein the activities involve generation and/or treatment of waste shall be obliged to ensure the recycling and safe disposal of the said waste in a manner that does not present a hazard to human health and to employ methods and modern technologies which:1. do not lead to damage or risk to the environmental media;2. do not cause additional environmental load associated to noise, vibrations and odour.Article 59Waste management shall follow the terms and the procedure established by this Act and by the Waste Management Act. Section VIIIProtection of the Environment Against Asbestos Pollution(New, SG No. 70/2004)Article 59a(1) The Minister of the Environment and Water, in consultation with the Minister of Health, shall issue regulations to establish:1. the requirements and measures to prevent and reduce the asbestos pollution of air and water;2. the methods and procedures for defining asbestos in dust emissions;3. the methods and procedures for defining the concentration of undissolved substances in asbestos-containing waste waters;4. the ceases, where exceptions to the requirements and measures under subpara 1 may be allowed.(2) The Minister of the Environment and Water may authorise the use of methods and procedures other than those under para 1 provided that they yield equivalent data and results.Chapter FourECONOMIC ORGANIZATION OF ENVIRONMENTALPROTECTION ACTIVITIESArticle 60(Effective 1.01.2003)(1) There shall be established an Enterprise for Management of Environmental Protection Activities, hereinafter referred to as "the Enterprise", to enjoy the status of a state-owned enterprise within the meaning of Article 62 (3) of the Commerce Act. (2) The Enterprise shall be a juristic person with a registered office in Sofia.(3) The Enterprise shall not be a commercial corporation and shall not form and distribute any profit.Article 61(Effective 1.01.2003)(1) The core activity of the Enterprise shall be the implementation of environmental projects and activities in pursuance of environmental strategies and programmes at national and municipal level.(2) The Enterprise shall carry out other activities as well to ensure or complement the core activity.(3) For implementation of the activity of the Enterprise, assets constituting public and private state property may be allocated for use and management by a decision of the Council of Ministers.(4) The Enterprise shall have no right to conclude loan contracts with commercial banks or other financial institutions, unless the Council of Ministers has made an express decision to this effect.(5) The activities of the Enterprise in fulfilment of the tasks associated with the core activity shall be financed through:1. charges provided for in the special laws regulating the environment;2. action resources allocated from the national budget for environmental programmes, where the competent authorities have made a decision to this effect;3. donations by resident and non-resident natural and juristic persons;4. income accruing from interest on deposits;5. (supplemented, SG No. 77/2005, SG No. 89/2007) fines or pecuniary penalties for administrative violations under this Act, the Water Act, the Soils Act, the Waste Management Act, the Medicinal Plants Act , the Protected Areas Act , the Clean Ambient Air Act , the Subsurface Resources Act , the Biological Diversity Act and the Protection against the Harmful Impact of Chemical Substances, Preparations and Products Act , imposed by the Minister of Environment and Water or by officials authorized thereby;6. income accruing from portfolio investments of short-term government securities and bonds;7. income accruing from environmental protection services and activities;8. other proceeds determined by a legislative act.(6) The organization and the operation of the Enterprise shall be regulated by Rules adopted by the Council of Ministers.Article 62(Effective 1.01.2003)(1) Annually, on or before the 30th day of October, the Enterprise shall lay a plan for the activities thereof during the next succeeding calendar year before the Ministry of Environment and Water.(2) The plan referred to in Paragraph (1) shall include the activities covered under Article 61 herein and, at a minimum, shall contain the following elements:1. objectives and expected results;2. activities to be conducted for achievement of the results, including an investment plan of the Enterprise;3. plan for management of the resources referred to in Article 61 (5) herein, elaborated on the basis of expected operating expenses and income of the Enterprise.(3) On or before the 28th day of February 28th in any current year, the Enterprise shall lay an annual report on the activities during last preceding calendar year before the Ministry of Environment and Water.(4) The Minister of Environment and Water shall approve the plan for the activities of the Enterprise referred to in Paragraph (1) and the annual report referred to in Paragraph (3).(5) The resources for the administrative costs of the Enterprise shall be approved by the Minister of Environment and Water simultaneously with the plan referred to in Paragraph (1).(6) (New, SG No. 105/2005) The company shall keep accounts on cash and accruals basis in compliance with the procedures for budgetary organisations.(7) (New, SG No. 105/2005, amended, SG No. 105/2006) The reporting data concerning the assets, liabilities, income and expenditures of the company shall be consolidated in line with the procedures set out in Article 33, Paragraph (6) of the Accountancy Act .(8) (New, SG No. 105/2005) The cash of the company, including the amounts for VAT, shall be collected, kept in, spent from and accounted for under a separate bank accruals account in the Bulgarian National Bank in compliance with the procedures defined by the Minister of Finance and the Governor of the Bulgarian National Bank.Article 63(Effective 1.01.2003)(1) The Enterprise shall be managed by a Management Board.(2) The Enterprise shall be represented by an Executive Director.(3) The Management Board shall consist of seven members, including a Chairperson.(4) The following shall be the members of the Management Board:1. Chairperson: the Minister of Environment and Water;2. a representative of the Ministry of Environment and Water;3. the Executive Director of the Executive Environment Agency;4. a representative of the Ministry of Finance;5. a representative of the National Association of Municipalities in the Republic of Bulgaria;6. a representative of the business community, nominated by the not-for-profit legal entities designated for pursuit of public benefit activities whereof the charter or deed of incorporation includes activities associated with environmental protection.7. the Executive Director referred to in Paragraph (2).(5) The members of the Management Board and the Executive Director shall be appointed by the Minister of Environment and Water.Article 64(Effective 1.01.2003)(1) (corrected, SG No. 96/2002) The resources accruing from:1. twenty per cent of the sanctions referred to in Article 69 herein;2. fees charged by the Ministry of Environment and Water under Article 71 herein;3. charges for provision of environmental information by the Ministry of Environment and Water, shall be expended in accordance with the Uniform Budget Classification on maintenance and improvement of equipment and facilities, training, continuing education and incentives in the Ministry of Environment and Water under terms and according to a procedure established by a regulation of the Minister of Environment and Water.(2) The resources for payment of incentives referred to in Paragraph (1), exclusive of the social insurance contributions due, may not exceed 25 per cent of the annual amount of the total wage bill budgeted by the Ministry of Environment and Water for the respective year.Article 65(1) Eighty per cent of the proceeds from sanctions imposed for environmental pollution or damage exceeding the permissible levels, referred to in Article 69 herein, shall be credited in revenue to the budget of the municipality where the penalized establishment is located.(2) The proceeds from any fines and pecuniary penalties imposed under this Act by the municipality mayors shall be credited in revenue to the budget of the respective municipality.(3) The proceeds referred to in Paragraphs (1) and (2), as well as the proceeds from fines imposed for violation of the regulations adopted by the Municipal Councils in connection with environmental protection, shall be expended on environmental projects and activities according to priorities specified in the municipal environmental programmes.Article 66(1) The National Trust EcoFund (NTEF) shall be a juristic person with registered office in Sofia for management of financial resources accruing from "debt-for-environment" and "debt-for nature" swaps and provided by governments, international financial institutions and other donors for environmental protection in the Republic of Bulgaria.(2) The National Trust EcoFund shall have the following bodies:1. Management Board;2. Advisory Council;3. Executive Bureau.(3) The Management Board shall consist of seven members, including a Chairperson, two Deputy Chairperson and four members.(4) The Advisory Council shall consist of representatives of the governments and financial and other institutions which have provided financial resources or which render assistance to the National Trust EcoFund.(5) The Management Board and the Advisory Council shall adopt their own Rules of Procedure.(6) The Executive Bureau shall organize the operation of the National Trust EcoFund.Article 67The manner of management, the organization and the operation of the National Trust EcoFund, as well as the procedure and manner for the raising, expending and controlling of the resources in the National Trust EcoFund shall be determined by a regulation of the Council of Ministers after a consultation procedure with the donors.Article 68(1) The revenue of the National Trust EcoFund shall be sourced in:1. action resources allocated by the national budget, including resources in connection with "debt-for-environment" and "debt for-nature" swap agreements;2. grants from international financial institutions, governments, international funds and non-resident juristic persons, provided for environmental programmes and projects;3. donations from international foundations and foreign citizens to assist the national environmental policy;4. principal repayments and interest payment on loans extended through the Fund;5. interest on resources of the National Trust EcoFund deposited with the servicing bank;6. income accruing from portfolio investments of short-term government securities and bonds;7. other external revenues consistent with the nature of the activities of the National Trust EcoFund.(2) The resources accruing to the National Trust EcoFund shall be expended on environmental projects and activities in accordance with the terms set by the donors and with the priorities of the national environmental strategies and programmes.Article 69(Amended, SG No. 77/2005) (1) In the event of environmental damage or pollution in excess of the permissible levels and/or in case of non-compliance with the emission standards and emission limit values as set in the permits or in the integrated permits, sanctions shall be imposed on the offending sole traders and legal persons.(2) The sanctions referred to in Paragraph (1) shall be imposed by a penalty decree issued by the Minister of Environment and Water or by officials authorized thereby.(3) A penalty decree, referred to in Paragraph (2), shall determine the type and amount of the sanction.(4) Any penalty decree referred to in Paragraph (2) shall be appealable according to the procedure established by the Administrative Violations and Sanctions Act. (5) The sanctions referred to in Paragraph (1) shall be lump-sump or continuous.(6) The amount of a sanction referred to in Paragraph (1) shall be fixed according to the procedure established by the ordinance referred to in Paragraph (8).(7) A sanction referred to in Paragraph (1) shall be imposed as from the date of conduct of inspection by the control authorities of the Ministry of Environment and Water.(8) The type, amount and procedure for imposition of sanctions for environmental damage or pollution in excess of the permissible levels and/or in case of non-compliance with the emission standards and emission limit values as set in the permits or in the integrated permits shall be established by an ordinance of the Council of Ministers.Article 69a(New, SG No. 77/2005)(1) In the cases referred to in Article 69 (1) herein, the Minister of Environment and Water or an official authorized thereby shall impose a sanction, acting on:1. a memorandum on inspection by the controlling officials of the Ministry of Environment and Water;2. reports of laboratory tests/analyses for identification of the environmental pollution or damage and/or non-compliance with the emission standards and emission limit values as set in the permits or in the integrated permits, issued by the laboratories within the system of the Ministry of Environmental Protection and Water or by accredited laboratories, including accredited laboratories for own periodical or continuous measurements of the persons referred to in Article 69 (1) herein;3. a memorandum of ascertainment, drawn up on the basis of the memoranda referred to in Item 1 and/or the reports referred to in Item 2 by the controlling officials of the Ministry of Environment and Water;4. a proposal by the controlling officials of the Ministry of Environment and Water for imposition of a sanction, including the type, duration and causes of the environmental pollution or damage, as well as the type and amount of the sanction.(2) Where the environmental damage or pollution in excess of the permissible levels and/or in case of non-compliance with the emission standards and emission limit values as set in the permits or in the integrated permits is ascertained on the basis of own periodical or continuous measurements, the Minister of Environment and Water or an official authorized thereby shall impose a sanction without conducting the inspection referred to in Item 1 of Paragraph (1).(3) The Minister of Environment and Water shall issue an order endorsing standard forms of the memorandum on inspection, the memorandum of ascertainment, the proposal for imposition of a sanction and the penalty decree.Article 69b(New, SG No. 77/2005)(1) Any penalized person, who or which discontinues or abates the environmental damage or pollution and/or the non-compliance with the emission standards and emission limit values as set in the permits or in the integrated permits, may submit a reasoned request for revocation or relaxation of the sanction referred to in Article 69 (1) herein to the authority which has issued the penalty decree.(2) In the cases referred to in Paragraph (1), the control authorities of the Ministry of Environment and Water shall conduct an inspection within five working days after receipt of a request referred to in Paragraph (1).(3) Where the discontinuance or abatement of the environmental pollution or damage is ascertained by tests/analyses, the said tests/analyses shall be performed by the laboratories within the system of the Ministry of Environment and Water or by accredited laboratories, including accredited laboratories for own periodical or continuous measurements.(4) Where the discontinuance or abatement of the environmental damage or pollution in excess of the permissible levels and/or the non-compliance with the emission standards and emission limit values as set in the permits or in the integrated permits is ascertained on the basis of own periodical or continuous measurements, the authority which has issued the penalty decree shall revoke or relax the sanction imposed without conducting the inspection referred to in Item 1 of Article 69a (1) herein.(5) The authority which has issued the penalty decree shall issue an order revoking the sanction where, proceeding from the memorandum on inspection, the reports of the laboratory tests/analyses, the memorandum of ascertainment and the proposal by the controlling officials of the Ministry of Environment and Water for revocation of the sanction, it is ascertained that the environmental damage or pollution and/or the non-compliance with the emission standards and emission limit values as set in the permits or in the integrated permits has been discontinued.(6) The authority which has issued the penalty decree shall issue an order relaxing the sanction where, proceeding from the memorandum on inspection, the reports of the laboratory tests/analyses, the memorandum of ascertainment and the proposal by the controlling officials of the Ministry of Environment and Water for revocation of the sanction it is ascertained that the environmental damage or pollution and/or the non-compliance with the emission standards and emission limit values as set in the permits or in the integrated permits has been abated.(7) The sanction referred to in Article 69 (1) herein shall be revoked or relaxed as from the date of receipt by the competent authority of the request of the penalized person.(8) Where, proceeding from the memorandum on inspection, the reports of the laboratory tests/analyses, the memorandum of ascertainment and the proposal by the controlling officials of the Ministry of Environment and Water for imposition of a sanction, it is ascertained that the environmental damage or pollution or non-compliance with the emission standards and emission limit values as set in the permits or in the integrated permits has increased, the authority which has issued the penalty decree shall issue an order revoking the initially imposed sanction.(9) In the cases referred to in Paragraph (8), the Minister of Environment and Water or an official authorized thereby shall impose, by a penalty decree, a new sanction according to the procedure established by Article 69a herein.(10) The type, amount and procedure for revocation or relaxation of sanctions upon environmental damage or pollution in excess of the permissible levels and/or in case of non-compliance with the emission standards and emission limit values as set in the permits or in the integrated permits shall be established by the ordinance referred to in Article 69 (8) herein.Article 69c(New, SG No. 77/2005)(1) Upon suspension or abandonment of the activity which caused the environmental damage or pollution in excess of the permissible levels and/or the non-compliance with the emission standards and emission limit values as set in the permits or in the integrated permits, the person referred to in Article 69 (1) herein may submit a reasoned request for halting of the sanction as imposed to the authority which has issued the penalty decree or the order referred to in Article 69b (6) herein.(2) In the cases referred to in Paragraph (1), the control authorities of the Ministry of Environment and Water shall conduct an inspection within five working days after receipt of the request referred to in Paragraph (1) and shall draw up a memorandum of ascertainment, establishing the abandonment of the activity.(3) The Minister of Environment and Water or an official authorized thereby shall issue an order halting the sanction where, proceeding from the memorandum of ascertainment referred to in Paragraph (2), it is ascertained that the activity which caused the environmental damage or pollution in excess of the permissible levels and/or the non-compliance with the emission standards and emission limit values as set in the permits or in the integrated permits has been discontinued.(4) The sanction as imposed shall be halted as from the date of receipt by the competent authority of the request of the penalized person.(5) The penalized person shall be obligated to notify in writing the authority which issued the order referred to in Paragraph (3) not later than three days prior to the day of resumption of the activity referred to in Paragraph (1).(6) The Minister of Environment and Water or an official authorized thereby shall issue an order reactivating the sanction referred to in Article 69 (1) or in Article 69b (6) herein as from the date of resumption of the activity according to the notification referred to in Paragraph (5).(7) Should the penalized person fail to notify the authority which has issued the order referred to in Paragraph (3) of the resumption of the activity and, after an inspection by the control authorities of the Ministry of Environment and Water, should it is ascertained that the said activity has been resumed, the Minister of Environment and Water shall impose, by a penalty decree, a sanction for the period commencing upon the halting of the sanction under Paragraph (3) and concluding on the date of the inspection by the control authorities of the Ministry of Environment and Water.(8) The sanction referred to in Paragraph (7) shall be imposed in a treble amount of the initial sanction halted under Paragraph (3).(9) In the cases referred to in Paragraph (7), the authority which issued the order referred to in Paragraph (3) shall reactivate the sanction as from the date of the inspection by the control authorities of the Ministry of Environment and Water.(10) Upon resumption of the activity, the penalized person may submit a reasoned request for revocation or relaxation of the reactivatable sanction to the authority which has issued the order referred to in Paragraph (3).(11) The relaxation or revocation of the reactivatable sanction shall follow the procedure established by Article 69b herein.(12) The Minister of Environment and Water shall issue an order endorsing a standard form of the memorandum of ascertainment referred to in Paragraph (2).(13) The procedure for halting and reactivation of sanctions upon environmental damage or pollution in excess of the permissible levels and/or the non-compliance with the emission standards and emission limit values as set in the permits or in the integrated permits shall be regulated by the ordinance referred to in Article 69 (8) herein.Article 70(1) Should the persons penalized under Article 69 (1) herein take action to comply with the established emission limit values in accordance with investment programmes approved by the Minister of Environment and Water, the said persons shall pay 10 per cent of the sanctions due.(2) (Amended, SG No. 77/2005) The terms and a procedure for reduction of the sanctions due under Paragraph (1) shall be established by the ordinance referred to in Article 69 (8) herein.(3) Should the investment programmes referred to in Paragraph (1) be not implemented in due course, the Minister of Environment and Water shall decree payment of the monthly sanction due in a treble amount for the entire initial period.(4) It shall be inadmissible to extend the time limits for implementation of the investment programmes approved by the Minister of Environment and Water under Paragraph (1).Article 71The Ministry of Environment and Water shall charge fees for the issuance of environmental impact assessment decisions, permits, opinions, licences, and for registration.Article 72The procedure for fixing and collection of the fees referred to in Article 71 herein shall be established in a rate schedule approved by the Council of Ministers.Article 72a(New, SG No. 77/2005)(1) (Supplemented, SG N. 89/2007) Any delinquent fines and sanctions under this Act, under the Water Act, the Soils Act, the Waste Management Act, the Medicinal Plants Act , the Protected Areas Act , the Clean Ambient Air Act , the Subsurface Resources Act , the Biological Diversity Act and the Protection against the Harmful Impact of Chemical Substances, Preparations and Products Act shall be collected with interest on the sanctions and costs by the State Receivables Collection Agency according to the procedure established by the Tax Procedure Code. (2) The Minister of Environment and Water or an official authorized thereby shall issue a written statement on ascertainment of a public state receivable under Paragraph (1).Article 73On a motion by the Minister of Environment and Water, made in consultation with the Minister of Finance, financial resources in the executive budget shall be allocated annually for implementation of priority environmental projects and activities included in the national environmental strategies and programmes shall be allocated annually by the National Budget Act.Article 74On a motion by the competent municipality mayor, financial resources for implementation of priority environmental activities and projects included in the municipal environmental protection programmes shall be allocated annually with the adoption of the municipal budget.Chapter FiveENVIRONMENTAL STRATEGIES AND PROGRAMMESArticle 75(1) The National Environmental Strategy and the municipal environmental programmes shall be tools for achievement of the purposes of this Act and shall be elaborated in accordance with the principles of environmental protection covered under Article 3 herein.(2) (Amended, SG No. 88/2005) The Minister of Environment and Water shall, acting in consultation with the Minister of Health, the Minister of Regional Development and Public Works, the Minister of Transport, the Minister of Agriculture and Forestry and other ministers and heads of state agency concerned, elaborate the National Environmental Strategy and lay the said Strategy before the Council of Ministers for approval.(3) The process of elaboration and public discussion of the National Environmental Strategy shall furthermore involve representatives of the research community and of non governmental ecologist and branch organizations.(4) The Council of Ministers shall present the National Environmental Strategy to the National Assembly for adoption and, thereafter, shall publish the said Strategy.Article 76(1) The National Environmental Strategy shall be elaborated for a period of ten years and shall contain:1. an analysis of the state of the environment by environmental medium, an analysis of the factors impacting the environmental media and of the trends, causes and sources of environmental pollution and damage by sector of the national economy, as well as an analysis of the institutional framework, the administrative and economic policy implementation tools;2. assessment of the possibilities and limitations at national and international level;3. objectives and priorities;4. modalities for attainment of the objectives;5. options for implementation of the strategy with assessment of the possible favourable and adverse impacts and consequences on a national and international plane;6. a five-year action plan with specific institutional, organizational and investment measures, deadlines, responsible institutions, required resources and possible sources of financing;7. a scheme for organization, monitoring and reporting of the implementation of the action plan, for evaluation of results, and for remedial action where necessary;8. miscellaneous.(2) The following principal criteria shall be applied in identifying the priorities of the National Environmental Strategy:1. adherence to the principles of sustainable development;2. prevention and reduction of the risk to human health and the environment;3. prevention and reduction of the risk to biological diversity;4. mitigation of the harmful impact of natural processes and phenomena on the environmental media;5. optimum utilization of natural resources and energy.(3) Annually, the Minister of Environment and Water shall lay a report on the implementation of the action plan under Item 6 of Paragraph (1) before the Council of Ministers.(4) Any revisions amending, supplementing and updating the National Environmental Strategy and of five-year action plans shall have to be adopted by the National Assembly on a motion by the Council of Ministers.Article 77The national plans and programmes by environmental medium and by environmental impacting factors that impact them shall be elaborated on the basis of the principles, objectives and priorities of the National Environmental Strategy and in conformity with the requirements of the special laws regulating the environment.Article 77a(New, SG No. 77/2005)(1) The Minister of Environment and Water, acting jointly with the Minister of Finance, the Minister of Economy and Energy, the Minister of Regional Development and Public Works and other government ministers concerned, shall elaborate a National Allocation Plan for Greenhouse Gas Emission Allowance Trading.(2) The National Allocation Plan for Greenhouse Gas Emission Allowance Trading shall be adopted by the Council of Ministers for a period of five years.(3) The Plan referred to in Paragraph (1) shall furthermore specify:1. the total quantity of allowances as are to be allocated for the relevant period;2. the manner of allocation of the allowances among the operators of facilities;3. the list of facilities and the respective quantity of allowances assigned to each facility;4. the share of emission reduction units and certified emission reductions which may be used for fulfilment of the obligation of the operator under Article 131h herein.Article 78The plans and programmes for regional development, for development of the national economy or of individual branches thereof at national and regional level shall provide for integrated environmental protection in conformity with the principles and purposes of this Act and of the National Environmental Strategy.Article 79(1) The municipality mayors shall elaborate environmental protection programmes for the relevant municipality in compliance with instructions of the Minister of Environment and Water.(2) The programmes referred to in Paragraph (1) shall cover a minimum implementation period of three years.(3) The local units of the relevant ministries and state agencies, which collect and hold information relating to the environment, shall assist in the elaboration of the said programmes through participation of experts thereof and provision of information. Representatives of non-governmental organizations, of companies and of branch organizations shall also be involved in the elaboration, revision and updating of the said programmes.(4) The programmes shall be adopted by the Municipal Councils which shall oversee the implementation therein.(5) Annually, the municipality mayors shall lay a report on the implementation of the environmental programme before the Municipal Council and, where necessary, shall move revisions supplementing and updating the said programme.(6) The reports referred to in Paragraph (5) shall be submitted to the RIEW for information.Article 80Projects proposed by municipalities for financing from the national budget or from national funds may be financed solely where the said projects are justified as priority projects in the respective municipal environmental programme.Chapter SixENVIRONMENTAL ASSESSMENT AND ENVIRONMENTALIMPACT ASSESSMENTSection IGeneral ProvisionsArticle 81(1) Environmental assessment and environmental impact assessment shall be conducted for plans, programmes and development proposals for construction, activities and technologies or modifications thereof, whereof the implementation is likely to have significant effects on the environment as follows:1. (supplemented, SG No. 77/2005) environmental assessment shall be conducted of plans or programmes which are in a process of preparation and/or approval by central or local executive authorities, bodies of local self-government and the National Assembly;2. environmental impact assessment (EIA) shall be conducted for development proposals for execution of construction, activities and technologies listed in Annexes 1 and 2 hereto.(2) The objective of the environmental assessment and of the EIA is to integrate environmental considerations into the process of development as a whole with a view to introducing the principle of sustainable development in accordance with Articles 3 and 9 herein.(3) (Effective 1.07.2004) Environmental assessment of plans and programmes shall be conducted simultaneously with the preparation therein, taking into account the objectives and the geographical scope of the plans or programmes and the level of detail thereof, so that the likely effects on the environment of implementation of the development proposals included in the said plans or programmes are appropriately identified, described and evaluated.(4) (New, SG No. 77/2005) Any plans and programmes elaborated solely for the purposes of national defence or of civil protection, as well as any free-standing financial plans and budgets, shall not be subject to environmental assessment.(5) (Renumbered from Paragraph (4), SG No. 77/2005) The environmental impact assessment referred to in Item 2 of Paragraph (1) shall identify, describe and assess in an appropriate manner, in the light of each particular case, the direct and indirect effects of a development proposal for execution of construction, activities and technologies on: human beings; biological diversity and the elements thereof, including flora and fauna; soil, water, air, climate and the landscape; the bowels of the Earth, physical structures and the cultural and historical heritage, as well as the interaction among these factors.(6) (Renumbered from Paragraph (5) and amended, SG No. 77/2005) Conduct of EIA of development proposals for execution of construction, activities and technologies listed in Annexes 1 and 2 hereto, where the said proposals are for the purposes of national defence, shall be determined in each particular case. Determination shall be made by a decision of the Council of Ministers on a reasoned motion by the Minister of Defence and the Minister of Environment and Water. Any such determination shall take into consideration the expected adverse impact which the conduct of EIA would have on the purposes of national defence.(7) (Renumbered from Paragraph (6), SG No. 77/2005) An EIA procedure shall not be conducted for development proposals where, according to a procedure established by a special law, the said proposals are subject to approval in a procedure including a similar assessment and provided that public access to the relevant information is ensured.Article 82(1) (Effective 1.07.2004) The assessment referred to in Item 1 of article 81 (1) herein shall be fully compatible with the existing procedures for adoption of plans and programmes.(2) (Amended, SG No. 77/2005) The assessment referred to in Item 2 of Article 81 (1) herein may be fully integrated upon execution of the predesign (predevelopment) studies or the design terms of reference, being conducted prior to the act of earliest approval according to the procedure established by a special law, whereby the essence, site and capacity of the development proposal are determined.(3) (Supplemented, SG No. 77/2005) Where implementation of the development proposal requires pursuit of other subsidiary or supporting activities connected with the principal subject of assessment and also subject to mandatory EIA or determination of the need of EIA, the assessments of the individual proposals shall be integrated.(4) (Effective 1.07.2004) The environmental assessment of plans and programmes shall be completed when an opinion of the Minister of Environment and Water or of the competent RIEW Director is issued; the form and contents of the said opinion shall be determined in the regulation referred to in Article 90 herein. The authorities responsible for adoption and implementation of the plan or the programme shall reckon with the said opinion.(5) (Amended, SG No. 77/2005) The assessment of development proposals shall be completed when a decision of the competent authority referred to in Article 94 (1) herein is issued; this decision shall be binding on the initiator of the proposal. The said decision shall be a mandatory condition for further approval of the development proposal, granted according to the procedure established by a special law.Article 83(1) (Amended, SG No. 77/2005) The assessments referred to in Article 81 (1) herein shall be commissioned to a team of registered experts - Bulgarian and foreign natural persons, with a head, and the said experts must declare that they have no personal interest in the implementation of the development proposals.(2) (Amended, SG No. 77/2005) The assessment shall be commissioned to the experts by the initiator of the plan or the programme or by the initiator of the proposal referred to in Item 2 of Article 81 (1) herein.(3) The experts shall arrive at a conclusion, guided by the principles of reduction of the risks to human health and of ensuring sustainable development in conformity with the existing national standards of environmental quality.(4) The Ministry of Environment and Water shall keep a public register f the persons referred to in Paragraph (1), who must hold an educational qualification degree in specialist qualifications attained at a higher school and who must have performed one or more of the following activities related to environmental protection in the course of not less than five of the last ten years:1. design;2. practice in manufacturing enterprises;3. expert activities, including preparation of expert opinions, written advice, environmental impact assessment reports, environmental audits or environmental analyses;4. teaching at higher schools and/or scientific research;5. environmental control.(5) The register shall exclude any experts in respect of whom evidence exists that in their EIA practice they:1. have on three occasions been authors of chapters of environmental impact assessment reports which have been sent back for rewriting according to the content assessment procedures established by Article 96 (6) herein;2. have submitted a false declaration under Paragraph (1), and this has been proved according to the established procedure.(6) A certificate of entry in the register or a reasoned written refusal shall be issued within fourteen days by the Minister of Environment and Water.(7) The certificate referred to in Paragraph (6) shall be valid for five years.(8) (New, SG No. 77/2005) Exclusion from the register under Paragraph (5) shall be for a period of five years. Upon the lapse of the said period, the persons covered under Paragraph (5) may apply for a re-entry in the register according to the standard procedure established by the ordinance referred to in Paragraph (10).(9) (Renumbered from Paragraph (8), SG No. 77/2005) The refusal under Paragraph (6), as well as a tacit refusal, shall appealable before the Supreme Administrative Court within fourteen days after communication or after expiry of the time limit referred to in Paragraph (6), as the case may be.(10) (Renumbered from Paragraph (9), SG No. 77/2005) The procedure for establishment and keeping of the register and the procedure for application by persons for entry in the said register shall be established by a regulation of the Minister of Environment and Water.Section IIEnvironmental Assessment of Plans and Programmes(Effective 1.07.2004)Article 84(1) The Minister of Environment and Water or the competent RIEW Director shall be the authority competent to issue an opinion on environmental assessment of plans and programmes according to Article 82 (4) herein.(2) The opinion referred to in Paragraph (1) shall be based on an environmental assessment report prepared by registered experts.Article 85(1) (Amended, SG No. 77/2005, SG No. 41/2007) An environmental assessment shall be mandatory for any plans and programmes in the areas of agriculture, forestry, fisheries, transport, energy, waste management, water resources management, and industry, including extraction of subsurface resources, electronic communications, tourism, spatial planning and land use, where the said plans and programmes set the framework for future development of any development proposals listed in Annexes 1 and 2 hereto.(2) (Amended, SG No. 77/2005) Any plans and programmes referred to in Paragraph (1), which affect small areas at local level and involve modifications of plans and programmes referred to in Paragraph (1), shall require an environmental assessment solely where they are likely to have significant environmental effects.(3) (Repealed, SG No. 77/2005). (4) (Amended and supplemented, SG No. 77/2005) The Minister of Environment and Water or the competent RIEW Director shall determine by a decision the need of environmental assessment of a plan or programme proposed or modification of any such plan or programme according to the procedure established by the ordinance referred to in Article 90 herein, in conformity with the following criteria for determining the likely significance of the effects thereof:1. the characteristics of plans and programmes, having regard to:(a) the degree to which the plan or programme sets a framework for development proposals and other activities, either with regard to the location, nature, size and operating conditions or by allocating resources;(b) the relevance of the plan or programme for the promotion of the sustainable development and for achievement of the national and regional objectives;2. characteristics of the effects and of the area likely to be affected, having regard to: the essence, scope, reversibility and the cumulative nature of the eventual effects; the potential transboundary effects, the risks to human health or the environment, the magnitude and spatial extent of the effects, the value and vulnerability of the area likely to be affected; the effects on landscapes or on the components of the National Environmental Network;3. the degree to which the plan or programme influences other plans and programmes.(5) (Amended, SG No. 77/2005) A reasoned decision referred to in Paragraph (4) shall be issued within two months after submission of a request by the initiator of the plan or programme depending on the specificity and complexity of the said plan or programme and shall be announced to the general public.(6) (New, SG No. 77/2005) The plans and programmes, for which conduct of an environmental assessment is mandatory and for which the need of an environmental assessment is determined, shall be specified by the ordinance referred to in Article 90 herein.Article 86(1) (Amended, SG No. 77/2005) The environmental assessment shall be commissioned under the terms and according to the procedure established by Paragraphs (1) to (3) of Article 83 herein after announcement of the decision referred to in Article 85 (4) herein.(2) The environmental assessment report shall include information corresponding to the level of detail of the plan or programme and to the methods of assessment employed.(3) The environmental assessment report shall mandatorily contain:1. an outline of the main objectives of the plan or programme and relationship with other relevant plans and programmes;2. (supplemented, SG No. 77/2005) the current state of the environmental media and factors, referred to in Articles 4 and 5 herein, the cultural and historical heritage, and the likely evolution thereof without implementation of the plan or programme;3. the environmental characteristics of areas likely to be significantly affected;4. the existing environmental problems ascertained at different levels which are relevant to the plan or programme including, in particular, those relating to any areas of a particular environmental importance;5. the environmental protection objectives, established at national and international level, which are relevant to the plan or programme and the way those objectives and any environmental considerations have been taken into account during preparation of the said plan or programme;6. (supplemented, SG No. 77/2005) the likely significant environmental effects, including the environmental media and factors referred to in Articles 4 and 5 herein, the cultural and historical heritage, and the interrelationship between them;7. the measures envisaged to prevent, reduce and, as fully as possible, offset any significant adverse effects on the environment resulting from implementation of the plan or programme;8. an outline of the reasons for selecting the alternatives dealt with, and a description of how the assessment was undertaken, including any difficulties (such as technical deficiencies or lack of know-how) encountered in compiling the required information;9. a description of the measures envisaged in connection with monitoring during the implementation of the plan or programme;10. a non-technical summary of the environmental assessment.(4) (New, SG No. 77/2005) In compliance with Paragraphs (1), (2) and (3), an environmental assessment shall not be commissioned as a separate report where, according to the procedure established by a special law, such an assessment is required to be part of the plan or programme, as well as where the plan or programme is prepared and/or approved by the authorities referred to in Article 84 (1) herein.Article 87(1) The initiator of the plan or programme shall:1. ensure the necessary support to the registered experts for consultations with the bodies concerned and likely to be affected, in particular with those responsible for the preparation and implementation of the plan or programme subject to environmental assessment;2. organize consultations with the public and with persons concerned who are affected by the implementation of the plan or programme;3. send a copy of the plan or programme and of the report referred to in Article 86 (2) herein to each State likely to be affected by the implementation of the said plan or programme;4. organize consultations with the State likely to be affected.(2) The results of the consultations shall be reflected into the environmental assessment report and shall be taken into account in the opinion of the Minister of Environment and Water or the competent RIEW Director.Article 88(1) The opinion referred to in Article 82 (4) herein and the accompanying reasoning shall mandatorily include justification of the selection of a particular alternative from an environmental point of view, and the measures referred to in Article 89 herein which need to be undertaken.(2) (Supplemented, SG No. 77/2005) The opinion referred to in Paragraph (1) shall be made available to the general public, the parties affected and concerned, and to any State likely to be affected by the implementation of the plan or programme according to a procedure established by the ordinance referred to in Article 90 (1) herein.Article 89The measures related to monitoring and control of the plan or programme implementation shall be agreed in consultation between the Minister of Environment and Water or the competent RIEW Director and the authority responsible for the implementation of the plan or programme.Article 90(1) (Amended, SG No. 77/2005) The terms and procedure for conduct of environmental assessment shall be established by an ordinance of the Council of Ministers.(2) The regulation referred to in Paragraph (1) shall specify the requirements concerning:1. (amended, SG No. 77/2005) the determination of the need and scope of environmental assessment of the potential effects of implementation of the plan or programme, as well as concerning the manner of announcement to the general public of the decision referred to in Article 85 (4) herein;2. the obligations of the authorities which initiate or implement the plan or programme subject to environmental assessment;3. the scope, content and form of the environmental assessment report;4. the deadlines, terms and a procedure for holding consultations with the public and third parties likely to be affected by the plan or the programme;5. the form and content of the opinion of the Minister of Environment and water or of the competent RIEW Director;6. the conditions for inclusion of the results of the consultations referred to in Item 4 in the opinion of the Minister of Environment of Water or of the competent RIEW Director;7. the monitoring and control of compliance with the conditions set in the opinion of the Minister of Environment and Water or of the competent RIEW Director in the process of implementation of the plan or programme;8. the monitoring and control of the environmental effects upon implementation of the plan or programme with a view to undertaking measures for prevention or mitigation of the environmental damage likely to occur as a result of the said implementation.Article 91(1) The environmental assessment of plans or programmes shall be conducted independently of the EIA under Section III of this Chapter.(2) (New, SG No. 77/2005) Where a separate plan or programme under Article 85 (1) and (2) herein is required for any development proposal included in Annex 1 or 2 hereto, the competent environment authority, acting at the request of the initiator or at its own discretion, may admit the conduct of only one of the assessments covered under Chapter Six herein.(3) (Renumbered from Paragraph (2), SG No. 77/2005) The information collected and the analyses made during preparation of the environmental assessment of plans and programmes, as well as the opinion of the Minister or the RIEW Director, shall be used upon preparation of the EIA statements and making the EIA decisions for development proposals listed in Annexes 1 and 2 hereto.Section IIIEnvironmental Impact Assessment of Development ProposalsArticle 92Environmental Impact Assessment shall mandatorily be conducted of:1. any development proposals for execution of construction, activities and technologies listed in Annex 1 hereto;2. any development proposals for construction, activities and technologies likely to cause significant adverse transboundary impact according to Appendix I to Article 2 of the Convention on Environmental Impact Assessment in a Transboundary Context.Article 93(1) The need of environmental impact assessment shall be determined for:1. any development proposals for construction, activities and technologies listed in Annex 2 hereto;2. (amended, SG No. 77/2005) any development proposals for extension and/or change in the production activity according to Annex 2 hereto;3. (amended, SG No. 77/2005) any development proposals for extension and/or change in the manufacturing activity according to Annex 1 to this Act and Appendix I to Article 2 of the Convention on Environmental Impact Assessment in a Transboundary Context;4. any development proposal for new construction, activities and technologies according to the provisions of Annex 1 hereto, which are elaborated exclusively or mainly for development and testing of new methods or products and whose period of operation does not exceed two years;5. (amended, SG No. 77/2005) any development proposals for new construction, activities and technologies in protected areas according to the provisions of Annex 2 hereto, and any proposals for extension and/or change in the production activity within protected areas.(2) The need of conduct of EIA under Items 3, 4, and 5 of Paragraph (1) shall be determined by the Minister of Environment and Water in each particular case and conforming to the criteria established under Paragraph (4), and the said Minister shall deliver a reasoned decision on such a determination.(3) The need of conduct of EIA under Items 1 and 2 of Paragraph (1) shall be determined by the competent RIEW Director in each particular case and conforming to the criteria established under Paragraph (4), and the said Director shall deliver a reasoned decision on such a determination.(4) The need of conduct of EIA shall be determined on the basis of the following criteria:1. (amended, SG No. 77/2005) characteristics of the proposed construction, activities and technologies, such as: size, productivity, scope, inter-relation and integration with other proposals, use of natural resources, waste generation, environmental pollution and nuisances, as well as risk of accidents;2. locality, including sensitivity of the environment, existing land use, relative availability of appropriate areas, quality and regenerative capacity of the natural resources in the region;3. reproductive capacity of the ecosystem in the natural environment, especially in:a) areas and habitats protected by a law;b) mountain areas and woodlands;c) wetlands and coastal areas;d) (amended, SG No. 77/2005) areas where the environmental quality standards are breached;e) heavily urbanized areas;f) protected areas of stand-alone or cluster cultural assets, designated according to the procedure established by the Cultural Assets and Museums Act; g) areas and/or zones and sites enjoying a special sanitation status or subject to sanitary protection;4. characteristics of the potential impacts, such as territorial coverage, affected population, including transboundary impacts, nature, scope, complexity, probability, duration, frequency, and rehabilitation capacity;5. public interest in the proposed construction, activities and technologies.(5) The authorities referred to in Paragraphs (2) and (3) shall determine the need of conduct of EIA within one month after a request for determination is made by the initiator of the proposal referred to in Item 2 of Article 81 herein. The reasoning for the determination shall be declared to the general public.Article 94(1) The following authorities shall be competent to make decisions on EIA under Item 2 of Article 81 (1) herein:1. the Minister of Environment and Water - for any development proposals referred to in Item 1 of Article 92 herein in conformity with the criteria of competence established by Annex 1 hereto, for any proposals referred to in Item 2 of Article 92 herein and in the cases of determination of the need of conduct of EIA under Article 93 (2) herein;2. the RIEW directors - for any development proposals referred to in Item 1 of Article 92 herein in conformity with the criteria of competence established by Annex 1 hereto, and in the cases of determination of the need of conduct of EIA under Article 93 (3) herein.(2) (Supplemented, SG No. 77/2005) In cases where the development proposal affects a protected area or a territory covered by two or more RIEWs, the authority competent to determine the need of conduct of EIA and to make an EIA decision shall be the Minister of Environment and Water.Article 95(1) (Amended, SG No. 77/2005) At the earliest stage of the development-project initiative, the initiator of the development proposal shall inform the competent authority and the public concerned of the proposal, announcing the said proposal in writing.(2) (New, SG No. 77/2005) The initiator shall ensure elaboration of terms of reference for the scope and content of the EIA for any development proposals under Annex 1 hereto and for such proposals in respect of which conduct of EIA has been determined by a decision.(3) (Renumbered from Paragraph (2), SG No. 77/2005) The initiator shall undertake consultations with the competent authorities, other specialized institutions and the public concerned for the purpose of the making of an EIA decision. The consultations shall be undertaken with regard to:1. the specific characteristics of the proposed construction, activities or technologies, level of development of the design solution and its inter-relation with existing or other planned construction, activities or technologies;2. the characteristics of the existing environment and all environmental media thereof;3. the significance of the eventual impacts;4. the terms of reference for the scope and content of the EIA;5. the scope of study connected to the EIA;6. the alternative development proposals;7. the affected population's interests and opinions;8. the sources of information;9. the forecasting methods used to assess the effects on the environment;10. measures for mitigation of the eventual adverse impacts on the environment.Article 96(1) The initiator of the proposal under Item 2 of Article 81 (1) herein shall submit an EIA statement of the following content to the competent authority:1. a summary of the development proposal for construction, activities and technologies;2. (amended, SG No. 77/2005) alternatives of siting (including plats and bearings of typical points within the established national coordinate system) and/or alternatives to the technologies as studied by the initiator and reasoning of the choice of study made, considering the environmental impact, including a "zero alternative";3. a description and analysis of the environmental media and factors covered under Articles 4 and 5 herein and of the physical structures and the cultural heritage that will be significantly affected by the development proposal, as well as the interaction among these aspects;4. description, analysis and assessment of the potential significant effects on the population and the environment resulting from:a) implementation of the development proposal;b) use of natural resources;c) emissions of noxious substances in normal circumstances and in an emergency, generation of waste and inconvenience for the population;5. information on the forecasting methods used to assess the effects on the environment;6. a description of the measures envisaged to avoid, reduce and, if possible, remedy significant adverse effects on the environment, as well as a plan for implementation of the said measures;7. observations and opinions expressed by the public concerned, of the authorities competent to make an EIA decision and other specialized institutions and the States affected in a transboundary context, as a result of the consultations held;8. (amended, SG No. 77/2005) conclusion in conformity with the requirements of Article 83 (3) herein;9. a non-technical summary of the information;10. information on the difficulties (technical reasons, insufficiency or lack of data) encountered in the collection of information for preparation of the EIA statement;11. other information at the discretion of the competent authority.(2) The costs of EIA shall be borne by the initiator of the proposal under Item 2 of Article 81 (1) herein.(3) The initiator of the proposal under Item 2 of Article 81 (1) herein shall provide the information necessary for conduct of EIA, as well as any additional information related to the development proposal.(4) Other authorities, which hold information concerning the EIA, shall be obliged to provide this information in accordance with Chapter Two herein.(5) Should there be any state, official or other secret safeguarded by law, the information shall be provided in conformity with the confidentiality requirements of Article 20 herein.(6) (Amended, SG No. 77/2005) In order to make an EIA decision, the competent authority shall evaluate the content of the EIA statement conforming to the consultations under Article 95 (3) herein and the satisfaction of the requirements of the legislative framework regulating the environment within fourteen days after submission of the statement.Article 97(1) After receiving a favourable evaluation under Article 96 (6) herein, the initiator shall organize, jointly with the municipalities, wards, mayoralties and regions concerned as specified by the competent authority, public discussions on the EIA statement.(2) All natural and juristic persons concerned may participate in the discussions referred to in Paragraph (1), including representatives of the authority competent to make an EIA decision, the local executive administration, public organizations and citizens.(3) The initiator of the proposal under Item 2 of Article 81 (1) herein shall give the persons under Paragraph (2) notice through the media of mass communication or in another appropriate manner of the venue and date of the discussion not later than thirty calendar days before the public discussion meeting.(4) (Supplemented, SG No. 77/2005) The initiator of the proposal referred to in Item 2 of Article 81 (1) herein and the competent authorities referred to in Article 94 (1) herein shall ensure public access to the EIA documentation for a period of thirty calendar days prior to commencement of the discussions referred to in Paragraph (1).(5) Representatives of the public shall submit their opinions in writing at the public discussion meeting or shall send the said opinions to the authority competent to make an EIA decision not later than seven calendar days after the discussion.Article 98(1) In respect of any development proposals for construction, activities or technologies in the Republic of Bulgaria, which are likely to have a significant impact on the environment of another State or States, the Minister of Environment and Water shall:1. notify the affected countries at the earliest possible stage of the development proposal but not later than the date of notification of the Bulgarian population;2. upon agreement on participation in the EIA procedure, make available to the State concerned a description of the development proposal, information on the potential transboundary impact on the environment, and the relevant information on the decision expected to be made.(2) In cases of notification of a potential impact on the environment in the Republic of Bulgaria resulting from a proposed activity on the territory of another State, the Minister of Environment and Water shall ensure:1. public access to the EIA information as provided;2. timely dispatch of all statements on the information under Item 1 before any decision is made by the competent authority of the other State.Article 99(1) Within seven days after holding a discussion under Article 97 herein, the initiator shall submit to the competent authority the results of the said discussion, including the opinions and a minutes of proceedings.(2) The competent authority shall make an EIA decision within three months after the discussion, taking into account the results thereof.(3) The EIA decision shall contain:1. the name of the issuing authority;2. the name, place of residence/registered office of the initiator;3. the grounds of fact and law on which the decision is delivered;4. reasoning;5. operative part;6. conditions for implementation, including measures to prevent, reduce or offset significant adverse effects on the environment, as well as deadlines for compliance, where necessary;7. appellate authority and time limit for appeal;8. liability for non-compliance with the conditions set in the decision;9. date of issue and signature.(4) (Supplemented, SG No. 77/2005) Within seven days after delivery of the EIA decision, the competent authority shall:1. (supplemented, SG No. 77/2005) provide the EIA decision to the initiator of the proposal referred to in Item 2 of Article 81 (1) herein;2. (supplemented, SG No. 77/2005) announce the EIA decision through the national media of mass communication and/or in another appropriate manner.(5) (Supplemented, SG No. 77/2005) The competent authority under Paragraph (1) shall ensure access to the content of the EIA decision following the delivery thereof, including access to the annexes to the said decision.(6) (Supplemented, SG No. 77/2005, amended, SG No. 30/2006) The persons concerned may appeal against the EIA decision according to the procedure established by the Administrative Procedure Code within fourteen days after the announcement under Paragraph (4).(7) (Supplemented, SG No. 77/2005) In case of change of the initiator under Item 2 of Paragraph (3), the new initiator of the proposal referred to in Item 2 of Article 81 (1) herein shall mandatorily notify the competent authority which has issued the EIA decision.(8) (Amended, SG No. 77/2005) The legal effect of the EIA decision shall lapse if implementation of the development proposal has not commenced within five years after the date of delivery of the said decision, which shall be ascertained by an inspection by the environmental control authorities.(9) (New, SG No. 77/2005) In the cases where there are no modifications in the development proposal and there are no changes in the environmental conditions, an EIA decision whereof the legal effect has lapsed shall be re-certified at the request of the initiator within one year after the expiry of the time limit referred to in Paragraph (8).Article 100(Supplemented, SG No. 77/2005) The competent authorities covered under Article 94 herein or officials authorized thereby shall oversee the implementation of the measures referred to in Item 6 of Article 96 (1) herein and the compliance with the conditions set in the EIA decision.Article 101(1) The terms and a procedure for conduct of EIA shall be established by a regulation of the Council of Ministers.(2) The EIA regulation referred to in Paragraph (1) shall establish the requirements concerning:1. the determination of the need of EIA of the development proposals under Annex 2 hereto;2. the terms and a procedure for holding consultations with the authorities, the public and the persons likely to be affected by the implementation of the development proposal;3. the scope, content and form of the EIA statement;4. the criteria for quality evaluation of the EIA statement;5. the procedure and manner for arrangement of a public discussion of the EIA statement;6. the reasoning for making an EIA decision, including the manner in which the opinion of the general public has been taken into account;7. the procedure and manner for exercise of control over compliance with the conditions specified in the EIA decision.8. (new, SG No. 77/2005) the procedure under Article 99 (9) herein for re-certification of an EIA decision whereof the legal effect has lapsed.Article 102The Ministry of Environment and Water shall keep a public register containing data about the conduct of the EIA procedure, including the public discussions, the EIA decision as issued, and the control exercised over implementation of the EIA decisions.Chapter SevenPREVENTION AND REDUCTION OF INDUSTRIAL POLLUTIONSection IPrevention of Major Industrial AccidentsArticle 103(Amended, SG No. 77/2005) (1) For the purpose of prevention of major accidents involving dangerous substances and for limitation of the consequences of such accidents for human life and health and for the environment, each operator of a new or an existing establishment and/or installation where dangerous substances are used and/or stored shall be obligated to classify the said establishment and/or installation as an "establishment and/or installation with minor hazard potential" or as an "establishment and/or installation with major hazard potential," and shall notify the Minister of Environment and Water of the said classification.(2) The form and content of the notification referred to in Paragraph (1) shall be determined by the ordinance referred to in Article 104 (6) herein.(3) The classification referred to in Paragraph (1) shall be carried out according to the criteria under Annex 3 hereto.(4) Paragraph (1) shall not apply to:1. any military establishments, installations and storage facilities;2. any hazards created by ionizing radiation;3. the transport of dangerous substances or preparations and intermediate temporary storage during carriage by road, rail, inland waterways, sea or air, outside the establishments, as well as loading, unloading and transport to or from another means of transport at docks, wharves, or marshalling yards;4. the transport of dangerous substances or preparations in pipelines and pumping stations outside the establishments;5. the activities concerned with prospecting, exploration for, extraction and processing of subsurface resources in underground mines, quarries or by means of boreholes, with the exception of the activities including chemical or thermal treatment whereupon dangerous substances are used or stored;6. the prospecting, exploration for and extraction of subsurface resources, including petroleum and natural gas, in the continental shelf and the exclusive economic zone;7. waste landfill sites, with the exception of existing installations for safe disposal of liquid waste, tailings ponds and slime ponds containing dangerous substances.Article 104(1) (Amended, SG No. 77/2005) The construction and operation of a new and the operation of an existing establishment and/or installation classified as an "establishment and/or installation with minor hazard potential" or as an "establishment and/or installation with major hazard potential" shall be carried out after issuance of a permit under the terms and according to the procedure established by this Section.(2) (Amended, SG No. 77/2005) The permit referred to in Paragraph (1) shall be a mandatory condition for the issuance of a building permit.(3) (New, SG No. 77/2005) Any permit referred to in Paragraph (1) shall have an indefinite term of validity.(4) (Renumbered from Paragraph (3) and amended, SG No. 77/2005) Paragraph (1) shall not apply in the cases covered under Article 103 (4) herein.(5) (Renumbered from Paragraph (4), SG No. 77/2005) In the event of change of the operator, the new operator, whether a natural or legal person, shall assume the rights and obligations according to the permit.(6) (New, SG No. 77/2005) The Council of Ministers shall adopt an ordinance on the prevention of major accidents involving dangerous substances and on the limitation of the consequences of such accidents.Article 105(Repealed, SG No. 77/2005) Article 106(Amended, SG No. 77/2005) (1) The Minister of Environment and Water shall issue the permits referred to in Article 104 (1) herein.(2) In any permit referred to in Article 104 (1) herein, the Minister of Environment and Water may establish conditions related to the construction and operation of the establishment and/or installation.Article 107(Repealed, SG No. 77/2005) Article 108(Amended, SG No. 77/2005) (1) For the purpose of obtaining a permit referred to in Article 104 (1) herein, the operator shall submit an application to the Minister of Environment and Water not later than:1. four months after submission of the notification referred to in Article 103 (1) herein: applicable to an establishment and/or installation with minor hazard potential;2. seven months after submission of the notification referred to in Article 103 (1) herein: applicable to an establishment and/or installation with major hazard potential.(2) The form and content of the application referred to in Paragraph (1) shall be determined by the ordinance referred to in Article 104 (6) herein.Article 109(Repealed, SG No. 77/2005) Article 110(Amended, SG No. 77/2005) (1) The operator of any establishment and/or installation with minor hazard potential shall enclose with the application referred to in Article 108 (1) herein:1. a report on the major-accident prevention policy, designed to guarantee a high level of protection for man and the environment by appropriate means, structures and management systems;2. documentary proof of a fee paid under Article 71 herein.(2) The operator of any establishment and/or installation with major hazard potential shall enclose with the application referred to in Article 108 (1) herein:1. a safety report;2. an emergency plan for the establishment and/or installation;3. documentary proof of a fee paid under Article 71 herein.(3) The form and content of the documents covered under Paragraphs (1) and (2) shall be determined by the ordinance referred to in Article 104 (6) herein.(4) The operator may request from the Minister of Environment and Water that part of the information in the documents covered under Paragraphs (1) and (2) be declared confidential where the said information constitutes a manufacturing or commercial secret.(5) Where the information covered under Paragraphs (1) and (2) constitutes a state secret or an official secret or contains any personal data, the provisions of the Classified Information Protection Act or of the Personal Data Protection Act , as the case may be, shall apply.(6) Within five days after notification that the request referred to in Paragraph (4) has been granted in part or in whole, the operator shall submit to the Minister of Environment and Water a revised version of the documents omitting the information admitted as confidential.Article 110a(New, SG No. 77/2005)(1) Within fourteen days after receipt of the documents covered under Article 110 herein, the Minister of Environment and Water or an official authorized thereby shall notify the operator of any errors and deficiencies committed in the said documents and shall allow up to one month for the curing of the said errors and deficiencies.(2) (Amended, SG No. 95/2005, SG No. 82/2006, SG No. 102/2006) Within three days after expiry of the time limit referred to in Paragraph (1) for inspection of the documents or for curing of the errors and deficiencies as committed, the Minister of Environment and Water or an official authorized thereby shall transmit the documents covered under Article 110 herein for observations to the Minister of Health, the Minister of the State Policy for Disasters and Accidents, the Director of the Fire and Emergency Safety and Public Protection National Service, the President of the State Agency for Metrological and Technical Surveillance, the Regional Governor and the mayor of the municipality within whose territory the establishment and/or installation is located.(3) The Minister of Environment and Water, the authorities covered under Paragraph (2) or officials authorized thereby may conduct on-site inspections for the purpose of assessing the conformity of the documents covered under Article 110 herein with the measures envisaged by the operator to prevent major industrial accidents and to limit the consequences of such accidents.(4) The authorities covered under Paragraph (2) shall transmit the observations thereof to the Minister of Environment and Water within two months after receipt of the documents covered under Article 110 herein.(5) Should any of the authorities covered under Paragraph (2) fail to transmit observations within the statutory time limit, tacit consent shall be presumed.(6) Where on the basis of any observations referred to in Paragraph (2) it is ascertained that the operators did not envisage the requisite measures for the prevention of major accidents and for the limitation of the consequences of such accidents by the documents covered under Article 100 herein, within ten days after the expiry of the time limit referred to in Paragraph (4) the Minister of Environment and Water or an official authorized thereby shall allow the operator time to cure the non-conformities and deficiencies as ascertained.Article 111(Amended, SG No. 77/2005) (1) Within the time limit referred to in Article 110a (2) herein, the Minister of Environment and Water or an official authorized thereby shall post the documents covered under Article 110 herein on the Internet site of the Ministry of Environment and Water and shall afford public access to the said documents in the course of one month.(2) Within three days after receipt of the documents covered under Article 110a (2), the mayor of the relevant municipality shall inform the public by means of the local media of mass communication of this fact and shall afford access to the documents for a period of one month.(3) In the cases where a request to declare any information confidential has been granted, the Minister of Environment and Water shall make the documents referred to in Article 110 (6) herein available to the public.(4) Members of the public may submit reasoned observations in writing to the Minister of Environment and Water not later than the expiry of the one-month time limit referred to in Paragraph (1).Article 112(Amended, SG No. 77/2005) The Minister of Environment and Water shall issue the permit referred to in Article 104 (1) herein within one month after expiry of the time limit referred to in Article 110a (4) herein or after receipt of the rectified and complemented documents referred to in Article 110 (6) herein.Article 112a(New, SG No. 77/2005)Within seven days after the date of issuance of a permit, the Minister of Environment and Water or an official authorized thereby:1. shall notify in writing the operator and the authorities covered under Article 110a (2) herein, and2. shall announce the issuance of the permit through a national daily newspaper.Article 112b(New, SG No. 77/2005)(1) By a reasoned decision, the Minister of Environment and Water shall refuse to issue a permit within one month after expiry of the time limit referred to in Article 110a (4) herein or after receipt of the rectified and complemented documents referred to in Article 110a (6) herein where:1. the operator has not envisaged the requisite measures in the documents covered under Article 110 herein, or the measures envisaged are not sufficient for the prevention of major accidents, or for the limitation of the consequences of such accidents, and/or2. the operator has failed to submit the documents covered under Articles 108, 110 or Article 110a (6) herein within the appointed time limits.(2) Within the time limit referred to in Paragraph (1), by a reasoned decision, the Minister of Environment and Water may refuse to issue a permit for construction of a new establishment and/or installation upon receipt of a reasoned objection on grounds of legal conformity against the implementation of the project from any of the authorities covered under Article 110a (2) herein.(3) Within seven days after the date of issuance of the permit referred to in Paragraphs (1) or (2), the Minister of Environment and Water or an official authorized thereby:1. shall notify in writing the operator and the authorities referred to in Article 110a (2) herein, and2. shall announce the issuance of the decision through a national daily newspaper.Article 113(Amended, SG No. 77/2005, SG No. 30/2006) Any permit and any refusal to issue a permit shall be appealable according to the procedure established by the Administrative Procedure Code within fourteen days after announcement under Item 2 of Article 112 or under Item 2 of Article 112b (3) herein.Article 114(Amended, SG No. 77/2005) (1) The Minister of Environment and Water shall keep a public register of the permits issued under Article 112 herein and of the refusals referred to in Article 112b (1) and (2) herein.(2) The form and content of the register shall be determined by the ordinance referred to in Article 104 (6) herein.Article 115(Amended, SG No. 77/2005) The operator of an establishment and/or installation for which a permit under Article 104 (1) herein has been issued shall be obligated to:1. take all measures necessary to prevent major accidents involving dangerous substances and to limit the consequences of such accidents for human life and health and for the environment;2. immediately inform the Minister of Environment and Water of each planned substantial change to the establishment and/or the installation.Article 116(Amended, SG No. 77/2005) (1) Upon occurrence of a major accident, the operator of an establishment and/or installation for which a permit under Article 104 (1) herein has been issued shall immediately inform the Chairperson of the Regional Council on Security and Crisis Management.(2) Upon occurrence of a major accident, the operator shall promptly provide the authorities referred to in Paragraph (1) with information regarding:1. the circumstances of occurrence of the accident;2. the dangerous substances which have caused the occurrence of the accident or which aggravate the consequences thereof;3. the data available for assessing the effects of the accident on human life and health and on the environment;4. the emergency measures taken;5. the measures envisaged to prevent any recurrence of such an accident;6. the measures envisaged to limit the consequences of the accident.(3) The operator shall be obligated to update the information covered under Paragraph (2) and to provide the said information to the authority referred to in Paragraph (1) where justified by new facts related to the causes of occurrence of the accident and the consequences thereof.Article 116a(New, SG No. 77/2005)(1) The operator of any establishment and/or installation with major hazard potential shall supply the public concerned with:1. information on the safety measures planned and the requisite behaviour and action in the event of an accident;2. the safety report referred to in Item 1 of Article 110 (2) herein or the revised documents referred to in Article 110 (6) herein;3. a list of the dangerous substances referred to in Article 103 (1) herein, with the exception of such as have been declared confidential information under Article 110 (4) herein, and of the information referred to in Article 110 (5) herein;4. information regarding the possibility of a domino effect.(2) The operator shall furthermore supply the information referred to in Item 1 of Paragraph (1) to the establishments serving the public which are liable to be affected by a major accident.(3) The operator shall review and, where necessary, shall update the information referred to in Item 1 of Paragraph (1) every three years, as well as in the cases of substantial changes to the establishment and/or installation.(4) The information referred to in Item 1 of Paragraph (1) shall be updated every five years.(5) The minimum requirements to the content of the information referred to in Item 1 of Paragraph (1), as well as the methods of provision of the said information, shall be determined by the ordinance referred to in Article 104 (6) herein.Article 116b(New, SG No. 77/2005)(1) Where planning substantial changes to the establishment and/or installation, the operator shall review and update the report on the major-accident prevention policy or the safety report.(2) The operator shall transmit the updated report referred to in Paragraph (1) to the Minister of Environment and Water.(3) In the cases referred to in Paragraph (3), the operator shall submit an application for a review of the permit referred to in Article 104 (1) to the Minister of Environment and Water as soon as practicable but not later than four months prior to the date planned for implementation of the changes.(4) The operator shall enclose the updated documents referred to in Paragraph (1) to the application referred to in Paragraph (3).(5) The form and content of the application referred to in Paragraph (3) and the documents referred to in Paragraph (1) shall be determined by the ordinance referred to in Article 104 (6) herein.Article 116c(New, SG No. 77/2005)(1) The operator of any establishment and/or installation with major hazard potential shall review and, where necessary, shall update the safety report referred to in Item 1 of Article 110 (2) herein:1. every five years;2. at the initiative of the operator or at the request of the Minister of Environment and Water, where justified by new facts or to take account of new technical knowledge about the safe operation of the establishment and/or installation.(2) The operator referred to in Paragraph (1) shall be obligated to review and, where necessary, to update the emergency plan referred to in Item 2 of Article 110 (2) herein:1. every three years;2. at the initiative of the operator or at the request of the Minister of Environment and Water, where justified by new facts or to take account of new technical knowledge about the safe operation of the establishment and/or installation.(3) In the cases covered under Paragraph (1) and/or Paragraph (2), the operator shall notify the Minister of Environment and Water, submitting an application for a review of the permit referred to in Article 104 (1) herein and enclosing the documents updated under Paragraph (1) and/or Paragraph (2) or a written declaration to the effect that there is no need to update the said documents.(4) The form and content of the application referred to in Paragraph (3) and the documents covered under Paragraphs (1) and (2) shall be determined by the ordinance referred to in Article 104 (6) herein.Article 116d(New, SG No. 77/2005)In the cases referred to in Article 116b and Article 116c herein, the Minister of Environment and Water or an official authorized thereby shall review the permit as issued according to the procedure established by Article 110a and Article 111 herein.Article 116e(New, SG No. 77/2005)(1) Within one month after expiry of the time limit for receipt of observations from the authorities covered under Article 110a (2) herein or after receipt of the rectified and complemented document from the operator, the Minister of Environment and Water shall review the permit as issued with a view to:1. leaving the permit as issued in effect, or2. modifying the permit as issued.(2) In the cases referred to in Paragraph (1), the Minister of Environment and Water or an official authorized thereby shall make a decision leaving the permit issued in effect or modifying the said permit.(3) Within seven days after the date of issuance of the decision referred to in Paragraph (2), the Minister of Environment and Water or an official authorized thereby:1. shall notify in writing the operator and the authorities covered under Article 110a (2) herein, and2. shall announce the issuance of the decision through a national daily newspaper.Article 116f(New, SG No. 77/2005)(1) By a reasoned decision, the Minister of Environment and Water may refuse to permit the implementation of the change referred to in Article 116b herein within the time limit referred to in Article 116c (1) herein where:1. the operator has not envisaged the requisite measures in the documents covered under Article 116b and Article 116c herein, or the measures envisaged are not sufficient for the prevention of major accidents, or for the limitation of the consequences of such accidents, and/or2. any of the authorities covered under Article 110a (2) herein has lodged a reasoned objection on grounds of legal conformity against the implementation of the modification referred to in Article 116b herein.(2) Within seven days after the date of issuance of the decision referred to in Paragraph (1), the Minister of Environment and Water or an official authorized thereby:1. shall notify in writing the operator and the authorities covered under Article 110a (2) herein, and2. shall announce the issuance of the decision through a national daily newspaper.Article 116g(New, SG No. 77/2005, amended, SG No. 30/2006) Any decision referred to in Article 116e (2) and in Article 116f (1) shall be appealable according to the procedure established by the Administrative Procedure Code within fourteen days after announcement of the said decision under Item 2 of Article 116e (3) and Item 2 of Article 116f (2) herein.Article 116h(New, SG No. 77/2005)(1) Where, on the basis of the documents covered under Article 110 (2) herein, the Minister of Environment and Water identifies any establishments and/or installations or any group of establishments and/or installations posing a risk of a domino effect, the said Minister shall notify the operators of the said establishments and/or installations.(2) In the cases referred to in Paragraph (1), the operators shall be obligated:1. to exchange information enabling them to take account of the nature and extent of the hazard of a major accident in the establishments and/or installations;2. to update the documents covered under Article 110 (2) herein with the information referred to in Item 1.(3) In the cases referred to in Paragraph (1), the operators may cooperate in:1. supplying the information covered under Article 116a herein to the public;2. supplying information required for the preparation of an external emergency plan.Article 116i(New, SG No. 77/2005)The Minister of Environment and Water shall notify the potentially affected countries of the risk of a major accident with transboundary effects occurring in an establishment and/or installation with major hazard potential.Section IIIntegrated PermitsArticle 117(1) The construction and operation of new installations and facilities of industrial activities of the categories listed in Annex 4 hereto, and the operation of existing installations and facilities of the said categories shall be admitted after issuance of an integrated permit according to the provisions of this Chapter.(2) (Amended, SG No. 77/2005) The requirement referred to in Paragraph (1) shall furthermore apply to any substantial change to existing facilities and installations.(3) Acting on a written request by the relevant operators, integrated permits referred to in Paragraphs (1) and (2) may furthermore be issued for any installations and facilities outside the scope of Annex 4 hereto.(4) In the event of change of the operator, the new operator, whether a natural or juristic person, shall assume the rights and obligations according to the permit.(5) (Amended, SG No. 77/2005) The submission of an application for the issuance of an integrated permit or the existence of an integrated permit for construction and operation of new facilities and installations and/or for operation of existing facilities and installations shall waive the requirements for issuance and obtaining of the following authorizations, permits, licences, expert opinions and assessments:1. under Article 37 in reference to Article 12 of the Waste Management Act; 2. under Littera (e) of Item 1 of Article 46 (1) of the Water Act. (6) (New, SG No. 77/2005) The operators of any facilities and installations within the scope of Annex 4 hereto may submit documents for obtaining the permit referred to in Item 1 of Paragraph (5) or the permit referred to in Item 5 of Paragraph (5) until commencement of the time limit for submission of an application for the issuance of an integrated permit, as set by the ordinance referred to in Article 119 herein.(7) (Renumbered from Paragraph (6), SG No. 77/2005) No facilities or parts of facilities used for scientific research, development and testing of new products and processes shall be subject to the provisions of this Chapter.Article 118An integrated permit referred to in Article 117 herein shall be a mandatory condition for the issuance of a building permit.Article 119(1) The terms and a procedure for the issuance of an integrated permit referred to in Article 117 herein shall be established by a regulation of the Council of Ministers.(2) The regulation referred to in Paragraph (1) shall furthermore establish relevant requirements for:1. the content and the form of the applications for issuance of integrated permits;2. the procedure and manner for determination of the best available techniques (BAT);3. (amended, SG No. 77/2005) the procedure and manner for review, modification and updating any integrated permits as issued;4. the procedure and manner for reporting noxious substance emissions;5. the content of the monitoring referred to in Item 3 of Article 123 (1) herein, including the monitoring procedures and the obligation to provide relevant information to the authorities responsible for enforcement of compliance under Article 128 herein.Article 120(1) (Supplemented, SG No. 77/2005) The Minister of Environment and Water or a person authorized thereby shall be the authority competent to issue, review and modify and update any permits referred to in Article 117 (1) and (2) herein.(2) (Supplemented, SG No. 77/2005) The competent RIEW director shall be the authority competent to issue, review and modify and update any permits referred to in Article 117 (3) herein.(3) The competent authority referred to in Paragraph (1) shall coordinate the terms and procedures for the issuance of permits in cases where more than one competent authority is involved therein.(4) (Amended, SG No. 77/2005) The competent authority referred to in Paragraphs (1) and (2) shall ensure the use of any information received and conclusion reached in EIA upon the issuance of the integrated permits.(5) The Ministry of Environment and Water shall follow the development of the best available techniques and shall maintain an information system thereon.Article 121During the operation of the installations and facilities, the operator shall oversee:1. the implementation of all appropriate preventive measures against pollution, in particular through application of the best available techniques;2. the implementation of environmental management systems;3. the prevention of environmental pollution according to the emission limit values and the environmental quality standards;4. the avoidance of waste generation; where waste is produced, it shall be recovered; where such recovery is technically and economically impossible, the waste shall be disposed of while avoiding or reducing any impact thereof on the environment;5. the efficient use of energy;6. the implementation of all possible measures to prevent industrial accidents and limit the consequences thereof;7. the undertaking of necessary measures to avoid any possible pollution risks and to return the site of operation to a satisfactory state upon definitive cessation of activities.Article 122(1) For the purpose of obtaining an integrated permit, the operator of the facility and installation shall submit an application to the relevant competent authority.(2) The application referred to in Paragraph (1) shall include a description of:1. (supplemented, SG No. 77/2005) the facility and the various modes of operation thereof, including a description of the main alternatives, if any;2. the raw and prime materials used (including auxiliary materials);3. the utilized and/or generated energy;4. characteristics of the site on which the installation is located;5. (amended, SG No. 77/2005) the nature and quantities of foreseeable emissions from the facility into each medium covered under Article 4 herein and by factor covered under Article 5 herein, as well as identification of possible significant effects of the said emissions on the environment;6. the proposed technology and other techniques for preventing or, where this is not possible, reducing emissions from the installation;7. measures for the prevention, recovery and/or safe disposal of waste generated by the installation;8. further measures planned to comply with the general principles of the basic obligations of the operator as provided for in Article 121 herein;9. monitoring of noxious substance emissions into the environment.(3) Any application for the issuance of an integrated permit shall furthermore include a non-technical summary of the details covered under Paragraph (2).Article 123(1) Any integrated permit referred to in Article 117 herein shall contain:1. (amended, SG No. 77/2005) emission limit values and technical measures, including measures relating to conditions other than normal operating conditions;2. mandatory protection measures for air, water and soil;3. monitoring requirements;4. provisions on limitation of transboundary pollution;5. additional measures necessary to comply with the effective environmental quality standards.(2) (Amended, SG No. 77/2005) The standards and measures referred to in Item 1 of Paragraph (1) for any facilities and installations referred to in Article 117 (1) and (2) herein shall be based on the best available techniques, without prescribing the use of one specific technique or technology but taking into consideration the technical characteristics of the facility, the geographical location thereof and local environmental conditions.(3) The permit shall also contain the provisions necessary to guarantee the compliance of the installation with the requirements of the law.(4) No integrated permit shall be issued in cases where conformity with the provisions of Paragraph (3).(5) In cases where the relevant environmental quality standards require stricter conditions than the ones achievable by the use of the best available techniques, the competent authority may require application of the additional measures referred to in Item 5 of Paragraph (1) in the integrated permits referred to in Article 117 (1) and (2) herein, without prejudice to measures which might be undertaken to achieve compliance with other environmental quality standards.(6) (New, SG No. 77/2005) The integrated permit shall not include emission limit values for greenhouse gases, unless it is necessary to ensure that ambient air quality will not be impaired.Article 124(1) Any integrated permit referred to in Article 117 herein shall have an indefinite term of validity.(2) (Amended, SG No. 77/2005) The competent authority shall periodically review the conditions of any permit once every five years.(3) A review of the permit shall be undertaken at any time where:1. the installation has caused significant environmental pollution;2. (amended, SG No. 77/2005) the operator has planned any changes in the operation of the facility;3. substantial changes have occurred in the best available techniques, making it possible to reduce emissions into the environment significantly without imposing excessive costs on the operator;4. a change has occurred in the operational safety requirements, requiring other techniques to be used;5. changes have occurred in the legislative framework regulating the environment.(4) (New, SG No. 77/2005) Upon a review of any permit under Paragraphs (2) and (3), the competent authority shall evaluate the need of a modification of the permit conditions or of the updating of the said permit.Article 125The operators of installations shall be obliged to:1. inform the competent authority of any change planned in the operation of the installation;2. comply with the conditions of the integrated permit upon operation of the installation;3. regularly inform the competent authority about the monitoring results, and immediately of any incident or accident causing significant adverse impacts on the environment;4. provide conditions to the representatives of the authority responsible for the enforcement of all necessary on-site inspections, for the taking of samples and for collection of information needed for performance of the duties thereof under this Act;5. prepare and publish an annual report on implementation of the activities for which an integrated permit has been granted.Article 126The competent authority, jointly with the municipalities, shall announce and afford the persons concerned equal access, in the course of one month, to the applications for issuance of an integrated permit and to the draft integrated permits, including the persons concerned in the States affected by the operation of the installation in case of transboundary flux.Article 127(1) (Supplemented, SG No. 77/2005) After completion of the procedure for public access to the application for the issuance or modification of an integrated permit, the competent authority shall issue the permit:1. within five months, applicable to new installations and facilities;2. within eight months, applicable to existing installations and facilities.(2) (Supplemented, SG No. 77/2005) The decision to issue or modify a permit shall be announced through the media of mass communication within fourteen days after the date of issuance, and shall be simultaneously transmitted to the States affected by the operation of the facility in case of transboundary flux.(3) (Amended, SG No. 30/2006) The persons concerned may appeal against any such decision according to the procedure established by the Administrative Procedure Code and the within fourteen days after announcement of the said decision under Paragraph (2).Article 128(1) Control over compliance with the conditions specified in any permit referred to in Article 117 herein shall be exercised by the competent RIEW.(2) The Regional Inspectorates of Environment and Water shall be responsible for the periodic transmittal to the Executive Environment Agency of information on the monitoring as provided for in the integrated permits.Article 129(Amended, SG No. 77/2005) The Minister of Environment and Water shall keep a public register containing data on the issuance, review, modification and updating of integrated permits.Article 130(1) The Executive Environment Agency shall keep a public register of the results of emissions monitoring as provided for in the integrated permits.(2) The data of the register referred to in Paragraph (1) shall be transmitted to the European Register of Noxious Substance Emissions.Article 131Until obtaining an integrated permit, the requirements for the issuance and obtaining of permits, licences, expert opinions and assessments shall apply according to the effective legislation.Section IIINational Schemes for Improvement of Environmental Protection Results(Heading amended, SG No. 77/2005) Article 131a(New, SG No. 77/2005)(1) There shall be established a scheme for greenhouse gas emission allowance trading.(2) The scheme for greenhouse gas emission allowance trading shall be open for participation to Bulgarian natural and legal persons, as well as to natural and legal persons from the Member States of the European Union and to such persons from third countries in accordance with the international treaties and agreements whereto the Republic of Bulgaria is a party.Article 131b(New, SG No. 77/2005)Greenhouse gas emission allowances shall be allocated in accordance with the National Allocation Plan for Greenhouse Gas Emission Allowance Trading.Article 131c(New, SG No. 77/2005)(1) (Supplemented, SG No. 65/2006) The construction and operation of new installations and the operation of existing installations for the categories of industrial activities covered under Items 1.1, 1.2, 1.3, 2.1, 2.2, 3.1, 3.3, 3.5, Littera (a) of Item 6.1, and Littera (b) of Item 6.1 of Annex 4 hereto shall be allowed solely after the issuance of a greenhouse gas emissions permit, in compliance with a timetable stipulated by the ordinance under Article 131(l), item 1.(2) The construction and operation of new combustion installations and the operation of existing combustion installations with a rated thermal input exceeding 20 MW but not exceeding 50 MW shall be allowed after the issuance of a greenhouse gas emissions permit according to the provisions of this Chapter.(3) Where there is a change in the identity of the operator, the new operator, whether a legal or a natural person, shall accede to the rights and obligations according to the permit.Article 131d(New, SG No. 77/2005)The Minister of Environment and Water or an official authorized thereby shall be the authority competent to issue and review the permits referred to in Article 131c (1) and (2) herein.Article 131e(New, SG No. 77/2005)(1) For the purpose of obtaining a greenhouse gas emissions permit, the operator of the installation shall submit an application to the competent authority.(2) Any application referred to in Paragraph (1) shall include a description of:1. the installation and the various modes of operation thereof, including the technology used;2. the raw and auxiliary materials whereof the use is likely to lead to greenhouse gas emissions;3. the sources of greenhouse gas emissions from the installation;4. the measures planned to monitor and report emissions in accordance with the requirements established by the ordinance referred to in Item 1 of Article 131k herein.(3) Any application referred to in Item 1 shall also include a non-technical summary of the description covered under Paragraph (2).Article 131f(New, SG No. 77/2005)(1) Any greenhouse gas emissions permit shall contain:1. the name and address of the operator, if a natural person, or the business name, registered office and address of the place of management of the operator, if a legal person, as the case may be;2. a description of the installation, the principal parameters thereof and the greenhouse gas emissions which are released there from;3. monitoring requirements, specifying the monitoring methodology and frequency, in accordance with the ordinance referred to in Item 1 of Article 131k herein;4. reporting requirements in accordance with the ordinance referred to in Item 1 of Article 131k herein;5. an obligation to surrender allowances equal to the total quantity of emissions from the installation in each calendar year, as verified in accordance with the ordinance referred to in Item 1 of Article 131k herein, within four months following the end of that year.(2) The competent authority shall issue the permit referred to in Paragraph (1) within six months after the date of receipt of the application of the operator referred to in Article 131e herein.(3) The competent authority shall refuse to issue a permit referred to in Paragraph (1) where:1. the operator of the installation has submitted a deficient application under Article 131e herein and has failed to complement the said application within fourteen days according to the directions of the competent authority;2. judging from the content of the application as submitted, the operator is incapable of ensuring the required monitoring and reporting.Article 131g(New, SG No. 77/2005)(1) The competent authority shall review the permit in the event of a change in the operation of the installation.(2) After a review of the permit, the competent authority shall confirm or modify the permit.Article 131h(New, SG No. 77/2005)(1) The operators of installations holding a greenhouse gas emissions permit shall be obligated, by the 30th day of April, to surrender to the competent authority referred to in Article 131j herein a specific number of allowances equal to the total quantity of emissions released from the said installation during the preceding calendar year by means of submission of the verified report referred to in Article 131k herein.(2) Any operator, who or which has not met the obligations thereof to surrender allowances under Paragraph (1), shall be obligated to surrender to the competent authority the deficient allowances during the subsequent year.(3) Allowances shall be valid for emissions released during the period of validity of the relevant National Allocation Plan.(4) Any allowances issued by a competent authority of a Member State of the European union or of a third country, according to a treaty or an agreement whereto the Republic of Bulgaria is a party, shall be recognized for the purpose of meeting the obligation of the operator referred to in Paragraph (1).(5) (Supplemented, SG No. 99/2006) Emission reduction units and certified emission reduction units, issued according to the United Nations Framework Convention on Climate Change and the Kyoto Protocol , shall be recognized for the purpose of meeting the obligation of the operator referred to in Paragraph (1) with the exception of those generated as a result of:1. (new, SG No. 99/2006) the functioning of nuclear installations;2. (new, SG No. 99/2006) land use activities, change in land use and forestry.(6) Four months after the beginning of each five-year period, the allowances which are no longer valid and have not been surrendered or cancelled shall be cancelled by the competent authority referred to in Article 131j herein.(7) The competent authority referred to in Article 131j herein shall issue allowances to the operators of installations holding a greenhouse gas emissions permit for the current period to replace all allowances held by the said operators which are cancelled according to the procedure established by Paragraph (6).(8) (New, SG No. 99/2006, effective until 31.12.2012) project activities leading to the generation of emissions reduction units and certified emissions reduction units shall be implemented under in compliance with following conditions:1. in cases of direct reduction or restriction in the amount of emissions as a result of project activities in installations as in Article 131c, paras. 1 and 2, revoking the same number of permits from the total amount of permits of the installation;2. in cases of indirect reduction or restriction in the amount of emissions as a result of project activities As in Article 131c, paras. 1 and 2, revoking the same number of permits from the National Register;Article 131i(New, SG No. 77/2005)(1) The operators of installations referred to in Article 131c (1) and (2) herein shall be obligated to prepare an annual report on the emissions released from the installation during the preceding year and to submit the said report to the competent authority referred to in Article 131j herein immediately after verification of the said report.(2) The reports shall be verified in accordance with Item 2 of Article 131k herein.(3) An operator whose report has not been verified by the 31st day of March for emissions during the preceding year cannot make transfers of allowances until verification of the report of the said operator.(4) The operators shall be obligated to inform the competent authority of any change in the operation of the installation.Article 131j(New, SG No. 77/2005)(1) (Supplemented, SG No. 99/2006) The Minister of the Environment and Water or an official authorized thereby shall keep a National Register to keep account of the issuance, ownership, transfer and cancellation of greenhouse gas emission permits in compliance with the requirements set out in regulation No. EC 2216/2004 of the European Commission.(2) The data of the register referred to in Paragraph (1) shall be transmitted to the European Independent Transaction Log recording the issue, transfer and cancellation of allowances.(3) (New, SG No. 99/2006) Participants in the scheme as set out in Article 131a shall pay a register entry fee in accordance with para. 1 In accordance with the rates set out in Article 72.Article 131k(New, SG No. 77/2005)The Council of Ministers shall issue ordinances establishing:1. the procedure and manner for the issuance and review of greenhouse gas emissions permits and for monitoring by the operators of installations participating in the scheme for greenhouse emission allowance trading;2. the terms, procedure and manner for preparation of the reports and for verification of the reports of the operators of installations participating in the scheme for greenhouse emission allowance trading;3. the procedure and manner of functioning of the National Register for the accounting of the issuance, holding, transfer and cancellation of greenhouse emission allowances.Article 131l(New, SG No. 99/2006)(1) (Effective until 31.12.2012) The Minister of the Environment and Water shall approve activities under projects generating emissions reductions in accordance with the United Nations Framework Convention on Climate Change and the Kyoto Protocol, and shall account for the reduced greenhouse gas emissions generated by them in the National Register in accordance with Article 131k, para. 1.(2) The Minister of the Environment and Water shall issue instructions for the approval of projects generating emissions reduction units and certified emissions reductions units in accordance with the following:1. resolutions adopted in accordance with the United Nations Framework Convention on Climate Change and the Kyoto Protocol; 2. European Union law in the field of climate change;3. international criteria and instructions for hydro-electric power generation installations with a capacity exceeding 20 MW, in particular those contained in the report of the World Commission on Dams entitled "Dams and Development: A New Framework for Decision Making";4. non-admission of unfavourable environmental and social impacts in cases of project activities involving hydro-electric power generation installations with a capacity exceeding 500 MW.(3) The Minister of the Environment and Water shall account for greenhouse gas emissions reductions units generated by approved project activities in the National Register as in Article 131k, para. 1 in accordance with Regulation No. EC 2216/2004.Article 132(1) Organizations may assume voluntary commitments with regard to environmental protection in:1. implementation of the activities thereof;2. development, production, offering and use of products of the activities thereof.(2) To encourage organizations to assume voluntary commitments with regard to environmental protection, there shall be established:1. a National Eco-management and Audit scheme;2. a National Eco-label Award Scheme.(3) The purpose of the schemes referred to in Paragraph (2) shall be to certify, according to specified criteria, the organizations and/or the products thereof and to register or mark the said organizations and/or products in an appropriate manner.Article 133(1) By applying the National Eco-management and Audit Scheme, a sustained improvement in the performance of the various organizations is achieved in terms of both environmental protection and provision of relevant information to the public and other parties concerned.(2) A sustained improvement in the environmental protection performance of the organizations shall be implemented by means of:1. implementation and application of environmental management systems;2. systematic, objective and periodic evaluation of the efficiency of the systems referred to in Item 1;3. discussion with the public of the environmental performance of the organization;4. active involvement of the staff in the environmental management systems.Article 134The Ministry of Environment and Water shall keep a public register of the organizations which satisfy the requirements of the National Eco- management and Audit Scheme.Article 135(1) The inspection of the organizations for compliance with the registration requirements under the National Eco-management and Audit Scheme shall be carried out by independent verifiers accredited by the Bulgarian Accreditation Service Executive Agency.(2) The Executive Agency referred to in Paragraph (1) shall keep a public register of independent accredited verifiers.Article 136The management authorities, the competencies thereof, as well as the requirements to organizations and the procedure for registration under the National Eco-management and Audit Scheme, shall be determined by a regulation of the Council of Ministers.Article 137(1) The objective of the National Eco-label Award Scheme shall be to promote development, production, distribution and use of products which have the potential to reduce adverse environmental impacts in comparison to other products of the same product group.(2) The National Eco-label Award Scheme shall be implemented by means of:1. provision of accurate, non-misleading and scientifically based information to consumers on such products;2. identification of the environmental impacts resulting from the interactions of products with the environment, including the use of energy and natural resources, during the life cycle of the product.Article 138The introduction of the National Eco-label Award Scheme shall be harmonized with other existing labelling schemes or agreements on quality certification.Article 139(1) The scope of application of the National Eco-label Award Scheme, the terms and a procedure for Eco-label award, the type and manner of using the said label shall be established by a regulation of the Minister of Environment and Water.(2) (Amended, SG No. 77/2005) The eligibility criteria of products of a certain group for the award of Eco-label shall be established by orders of the Minister of Environment and Water which shall be promulgated in the State Gazette.Article 140(Amended, SG No. 31/2007) The National Eco-label Award Scheme shall not apply to any medicinal products within the meaning given by Medicinal Products in Human Medicine Act and medical goods which are solely intended for professional use or for administration by prescription or under the control of medical personnel, nor to any foodstuffs and beverages.Article 141The products which are awarded Eco-label must satisfy the requirements of the legislative acts for safety, protection of human health and environment protection.Article 142Participation of organizations in the National Eco-management and Audit Scheme and in the National Eco-label Award scheme shall be voluntary. For more information visit www.solicitorbulgaria.com id: 309 Fri, 01 Aug 2008 03:33:12 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-environmental-protection-act-part-1 http://web.solicitorbulgaria.com/index.php/bulgarian-environmental-protection-act-part-1 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/ENVIRONMENTAL_PROTECTION_ACT.jpg EUR http://web.solicitorbulgaria.com/index.php/bulgarian-environmental-protection-act-part-1 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) SubjectArticle 1This Act shall regulate:1. Transactions and payments between local and foreign persons;2. Transborder transfers and payments;3. Transactions with foreign currency;4. (Amended, SG No. 60/2003) transactions with precious metals and gemstones by occupation, the export, import and processing thereof;5. Export and import of Bulgarian levs and foreign currency in cash;6. (Amended, SG No. 60/2003) collection, maintenance and provision of statistical information on the country's balance of payments;7. The exercising of currency control.Freedom to Carry out Transactions, Actions and PaymentsArticle 2(1) All actions, transactions and payments under Art. 1, items 1 - 5 shall be conducted freely inasmuch as this Act does not provide otherwise.(2) The production of precious metals and gemstones from sites that are public state property shall be subject to the requirements of current law.Conducting Business as a Currency ExchangeCompany or Financial houseArticle 3(Amended, SG No. 60/2003)(1)… For more information visit http://www.solicitorbulgaria.com id: 307 SubjectArticle 1This Act shall regulate:1. Transactions and payments between local and foreign persons;2. Transborder transfers and payments;3. Transactions with foreign currency;4. (Amended, SG No. 60/2003) transactions with precious metals and gemstones by occupation, the export, import and processing thereof;5. Export and import of Bulgarian levs and foreign currency in cash;6. (Amended, SG No. 60/2003) collection, maintenance and provision of statistical information on the country's balance of payments;7. The exercising of currency control.Freedom to Carry out Transactions, Actions and PaymentsArticle 2(1) All actions, transactions and payments under Art. 1, items 1 - 5 shall be conducted freely inasmuch as this Act does not provide otherwise.(2) The production of precious metals and gemstones from sites that are public state property shall be subject to the requirements of current law.Conducting Business as a Currency ExchangeCompany or Financial houseArticle 3(Amended, SG No. 60/2003)(1) (Amended and supplemented, SG No. 43/2006) Currency deals in cash by occupation may be transacted by any person registered under the Commerce Act where such a person is registered in a public register of persons conducting business pursuant to the legislation of a member country of the European Union or another country which is party to the European economic zone agreement, and where the person is registered in the public register as a currency exchange bureau.(2) Natural persons who are merchants, and any members of managing or control bodies and unlimited liability partners in the legal persons referred to in paragraph 1 must not have been convicted for any intentional crime of a public nature or have been members of a managing or control body or unlimited liability partners in a company terminated due to bankruptcy, if there have been any unsatisfied creditors left.(3) A public register of Persons conducting business as currency exchange offices shall be kept and maintained with the Ministry of Finance. Registration in the register shall be made within 14 days of filing all the documents requisite under the regulation referred to in paragraph 5.(4) For registration in the register referred to in paragraph 3, fees shall be charged under a price tariff approved by the Council of Ministers.(5) The Minister of Finance shall issue a regulation establishing the terms and conditions and the procedure for registration in the register referred to in paragraph 3, and the requirements applicable to the business of currency exchange offices.(6) A permit in writing (license) from the Bulgarian National Bank (BNB) shall be required for conducting foreign currency deals in cash and electronically as a financial house.(7) A public register of persons conducting business as financial houses shall be kept and maintained with the BNB.(8) The BNB shall issue a regulation establishing the terms, conditions and procedure for granting and revoking permits (licenses) and the requirements that financial houses shall comply with in the conduct of their business.Registration with the Bulgarian National BankArticle 4(Repealed, SG No. 60/2003)Registration and Denial of RegistrationArticle 5(Repealed, SG No. 60/2003)Transfers and Payments OverseasArticle 6(1) (Amended, SG No. 60/2003) Commercial banks and the BNB shall make payments and transfers to recipients abroad after a deposition has been filed with them describing the grounds on which the transfer is made.(2) (Amended, SG No. 60/2003) Persons making transfers or currency payments to recipients abroad in a counter value exceeding 25,000 levs shall provide the bank with information and documentation as required by a regulation issued by the BNB.(3) (Repealed, SG No. 60/2003)Collection of Information for the Needs of the Balance of PaymentsStatisticsArticle 7(Amended, SG No. 60/2003)(1) To meet the needs of the statistics of the balance of payments, registers shall be maintained concerning any transaction or payment between a domestic and a foreign person, as well as of any transborder transfer or payment in an amount as determined by BNB in a regulation, but not less than 5 000 levs, as follows:1. by commercial banks and the BNB;2. by the ministries and state agencies;3. by the Central Depository -and issuers of registered capital market securities for which the effective legislation does not provide for registration with the Central Depository;4. by investment intermediaries, insurers and pension funds;5. (Amended, SG No. 36/2004) by notaries public, respectfully Recording offices.(2) Persons conducting the payment or transaction shall provide the persons referred to in paragraph 1, subparagraph 1 with a standard statistical form as approved by the BNB.(3) The persons referred to in paragraph 1, subparagraph 1 shall refuse to take actions involved in effecting the payment or transfer unless the statistics form referred to in paragraph 2 is provided to them.(4) When funds are being wired from abroad, local persons that are the recipients of such funds shall fill in the statistics forms referred to in paragraph 2 within 30 days following the transfer notification by the persons referred to in paragraph 1, subparagraph 1.(5) Any transaction in connection with the original making of a direct investment abroad by any local legal persons or sole proprietors as well as for the purposes of extending financial credit between any local legal persons or sole proprietors and any foreign persons shall be subject to reporting by deposition with the BNB for the needs of the balance of payment statistics within 15 days after the transaction is closed.(6) Where a local legal person or sole proprietor orders a local bank to wire funds in connection with a financial credit already provided by or to a foreign person, such local bank shall execute the transfer order after obtaining assurance that a deposition reporting the financial credit has been filed by the local legal person or sole proprietor following the procedure set out in paragraph 5.(7) The deposition referred to in paragraph 5 shall be filed once only, and upon any subsequent transfer it shall be certified before the servicing bank by presenting the deposition already certified by the BNB.(8) Information collected as per paragraphs 1 and 4 shall be provided to the BNB following a procedure established under the regulation referred to in paragraph 11.(9) The authorities and institutions referred to in paragraph 1 may not provide to any other person or institution the information they have collected, which constitutes commercial or bank secret, unless otherwise provided in another law.(10) The Bulgarian National Bank may publish or provide to other persons and institutions only aggregated data.(11) The Bulgarian National Bank shall issue a regulation on the application of this Article.Provision of Information to the Bulgarian National BankArticle 8(Amended, SG No. 60/2003)(1) The Bulgarian National Bank may require of any person any information relevant to the country's balance of payments.(2) Any person shall be obliged to provide BNB with information necessary for the balance of payments statistics while observing the requirements as to the contents of such information.Registers of Direct Investments and Investments in Real EstateArticle 9(Repealed, SG No. 60/2003)Reporting Claims and LiabilitiesArticle 10(Amended, SG No. 60/2003)(1) Local legal persons and sole proprietors shall be obliged to report, on a quarterly basis and using statistics forms, to BNB their claims on and liabilities to foreign persons, and their direct investment made abroad.(2) Local natural persons shall report, on an annual basis by 31 March and using statistics forms, to BNB their claims on and liabilities to foreign persons under financial credits if the sum total of such claims or liabilities exceeds the lev counter value of 50 000 levs as of 31 December of the previous calendar year.(3) The Bulgarian National Bank shall establish the procedure for applying this Article in the regulation referred to in Article 7, paragraph 11.Customs RegisterArticle 10a(New, SG No. 60/2003)(1) (Amended, SG No. 54/2006) Customs authorities shall keep registers of export and import trade credits and of financial leasing between local and foreign persons, and of export and import of Bulgarian levs, foreign currency in cash and bearer payment instruments that are subject to declaration under Article 11.(2) In cases of export and import trade credits and of financial leasing between local and foreign persons, a declaration shall be filed with the customs authorities in a format approved by the Minister of Finance.(3) (Amended, SG No. 54/2006) In cases of export and import of Bulgarian levs, foreign currency in cash and bearer payment instruments that are subject to declaration under Article 11, natural persons shall file a declaration with the customs authorities in a format approved by the Minister of Finance.(4) The Minister of Finance shall issue a regulation on the application of this Article.Export and Import of Levs and Foreign Currency in CashArticle 11(Amended, SG No. 60/2003)(1) (Amended, SG No. 54/2006) Local and foreign natural persons may import and export unlimited amounts of levs, foreign currency in cash and bearer payment instruments while observing the requirements established under this Act.(2) The amount of currency that is subject to declaration before the customs authorities in cases of import and export of amounts exceeding 5000 levs or the counter value thereof in foreign currency in cash shall be determined in the regulation referred to in paragraph 6.(3) (Amended, SG No. 105/2005, supplemented, SG No. 54/2006) In cases of export of amounts in excess of 25 000 levs or the counter value thereof in foreign currency in cash, local and foreign natural persons shall declare before the customs authorities the amount and origin of such cash, bearer payment instruments included, by presenting a certificate issued by the respective territorial directorate of the National Revenue Agency certifying that they do not have any outstanding or overdue liabilities.(4) (Supplemented, SG No. 54/2006) Outside cases referred to in paragraph 3 concerning amounts in excess of 25 000 levs or the counter value thereof in foreign currency in cash, foreign natural persons shall declare before the customs authorities only the amount and type of cash bearer payment instruments included, being exported when the value of such cash does not exceed the amount of currency imported and declared.(5) The export and import of levs and foreign currency cash by mail shall be forbidden except for mailings of declared value. This ban shall not apply to the BNB and commercial banks.(6) The Minister of Finance shall issue a regulation on the implementation of this Article in consultation with the BNB.Exchange Rates of Foreign Currencies in Respect to the LevArticle 12(1) The Bulgarian National Bank shall announce daily exchange rates in respect to the lev of certain foreign currencies chosen at its discretion that shall be used for accounting and statistical purposes.(2) The Bulgarian National Bank shall determine the exchange rates of currencies for the purpose of payment agreements upon the request of the Ministry of Finance.(3) (New, SG No. 60/2003) The counter value of foreign currencies to the lev for the purposes of declaring as referred to in Article 11 shall be determined in accordance with customs laws and regulations.Production, Processing and Trading in Precious Metals and Gemstones andIn Items Made with and from Them by OccupationArticle 13(Amended, SG No. 60/2003)(1) Persons that are professionally engaged in the production, processing and trade in precious metals and gemstones and items made with or from them by occupation shall register with the Ministry of Finance within 14 days of commencement of operation.(2) A public register of persons engaged in the production, processing and trade in precious metals and gemstones and items made with or from them by occupation shall be kept and maintained with the Ministry of Finance. For registration in such register, fees shall be charged under a price tariff approved by the Council of Ministers.(3) The Council of Ministers shall issue a regulation establishing the terms and conditions and the procedure for registration in the register referred to in paragraph 2, and the requirements applicable to the business of persons referred to in paragraph 1.(4) Golden and silver items produced domestically or imported from abroad for commercial purposes shall be subject to examination to establish the contents of pure gold and silver (titre) and marking under a procedure established under the regulation referred to in paragraph 3. Golden articles shall be traded only in sales outlets located in buildings or other stationary structures, with the exception of articles of the folk crafts being sold by their producers.Export and Import of Precious Metals and GemstonesAnd Items Made with and from Them(Amended, SG No. 60/2003)Article 14(1) (Amended, SG No. 60/2003) Domestic and foreign natural persons may export and import precious metals and gemstones and items made with and from them after declaring such valuables to customs in a manner established by the Minister of Finance(2) (Amended, SG No. 60/2003) The export and import of precious metals and gemstones and items made with and from them in the mail shall be prohibited, with the exception of postal packages of declared value.(3) (Amended, SG No. 60/2003) The ban under Para 2 shall not apply to the BNB and the commercial banks.Currency ControlArticle 15(1) The Minister of Finance, the Bulgarian National Bank and the post offices shall monitor the observance of this Act and any regulations issued on its application.(2) The Minister of Finance shall conduct inspections of the observance of this Act through the use of the Minister's specialized authorities.Powers of the Currency Control AuthoritiesArticle 16(1) (Amended, SG No. 60/2003) The Customs authorities shall monitor the observance of the Act in the export and import of levs and foreign currency in cash and of precious metals and gemstones and items made with and from them.(2) (Amended, SG No. 60/2003, SG No. 105/2005) The authorities of the National Revenue Agency shall audit the activities of currency exchange offices and the persons described in Art. 13, Para 1 which are not commercial banks and in carrying out audits shall be entitled to:1. Obtain unrestricted access to the offices of audited persons;2. require documents, references and explanations in writing;3. (amended, SG No. 60/2003) check available amounts in levs and foreign currency, as well as quantities and quality of precious metals and gemstones and items made with and from them;4. Carry out audits of clients of audited persons for the purposes of obtaining cross-reference;5. Use expert help;6. (New, SG No. 60/2003, amended, SG No. 105/2005) impose measures to secure evidence following the procedure of the Tax and Social Insurance Procedure Code. (3) (Amended, SG No. 60/2003) The authorities of the BNB shall:1. Monitor commercial banks regarding their observance of the provisions of this Act and all relevant regulations on its implementation;2. Monitor financial houses regarding their observance of the provisions of this Act and all relevant regulations on its implementation;3. Monitor the observance of the requirements contained in Art. 6, 7, 8 and 10 and their implementation legislation;4. (Amended, SG No. 60/2003) be able to verify information collected under Articles 7, 8 and 10.(4) Persons operating as financial houses shall submit to the BNB reports and statements that shall be prepared in the form, with the content and within the timeframes specified by the BNB.(5) (Amended, SG No. 60/2003, SG No. 59/2006) In carrying out on-site audits of persons operating as a financial house, the authorities of the BNB shall enjoy all powers under Article 80 of the Credit Institutions Act. (6) Persons, that, under certain circumstances, can be assumed to be carrying out transactions in foreign currency in violation of Article 3, paragraph 1, shall submit upon request to auditors from the Ministry of Finance and the BNB any requested written explanations and documents and shall facilitate the completion of such audits on-site. In carrying out audits, auditing authorities of the Ministry of Finance and the Bulgarian National Bank shall enjoy the powers under paras 2, 3 and 5.(7) (Repealed, SG No. 60/2003)(8) (Amended, SG No. 60/2003) Post offices shall monitor the implementation of requirements under Art. 11, Para 5, and Art. 14, Para 2 and notify the customs authorities of any violations established by them.(9) (Amended, SG No. 60/2003) State bodies and officials shall assist the authorities under Art. 15 and under this Article in the exercise of their powers.Coercive Administrative Measures(Amended, SG No. 60/2003)Article 17Whenever violations of this Act or of regulations on its implementations are observed:1. the Minister of Justice or a person duly authorized by him, May:a) (Amended, SG No. 60/2003) issue written instructions for eliminating such violations within a period of time specified by the Minister;b) (Amended, SG No. 60/2003) impose the administrative coercive measure of impounding the sales outlet of persons under Art. 3, Para 1 and persons referred to under Art. 13, Para 1 which are not commercial banks;c) (Amended, SG No. 60/2003) revoke a registration certificate issued to any person conducting business as a currency exchange office;2. The Bulgarian National Bank may:a) (Repealed, SG No. 60/2003)b) (Amended, SG No. 60/2003) issue written directions for eliminating such omissions in the registers under Art. 7, Para 1, in the declaration under Art. 7, Para 5, in the information under Art. 8 or in the statistics forms under Art. 10, paras 1 and 2, where the requirements referred to in Art. 7, 8 and 10 and of their implementation legislation have not been met;c) Revoke the license of persons operating as financial houses;d) (Repealed, SG No. 60/2003);3. (Repealed, SG No. 60/2003)4. (Repealed, SG No. 60/2003)Penal Administrative ProvisionsArticle 18(Amended, SG No. 60/2003)(1) Anyone who is found to have violated or permitted a violation under Art. 11, paras 1, 2, 3, 4 or 5, Art. 14, paras 1 and 2, and Art. 16, Para 6, as well as any regulations on their implementation, shall be fined from 1000 to 3 000 levs, unless the violation constitutes a criminal offence. If the offender is a legal person or a sole proprietor, a property sanction from 2 000 to 6 000 levs shall be imposed.(2) Any person found to effect currency exchange in violation of Art. 3, Para 1 shall be fined from 1 000 to 3 000 levs or penalized by a property sanction in the amount of 5 000 to 15 000 levs, if a legal person or a sole proprietor.(3) Any person registered in the register referred to in Art. 3, Para 3 found in violations in connection with his activity under this Act or the regulation referred to in Art. 3 Para 5 shall be penalized by a property sanction from 2 000 to 6 000 levs.(4) Any person referred to in Art. 13, Para 1 found in violation in connection with his activity under Art. 13 or an implementation regulation thereof shall be penalized by a fine from 1 000 to 3 000 levs, and where the offender is a legal person or a sole proprietor, property penalties shall be imposed in amounts from 2 000 to 6 000 levs.(5) In case of a repeated violation under paras 1 to 4, the offender shall be fined or imposed a property sanction double the amount of that originally imposed.(6) In case of a violation under paras 2, 3 or 4, notwithstanding any fine or property sanction imposed, as the case may be, the penalizing authority may deprive the offender from the right to exercise the respective activity for a period from one to six months, and in case of a repeated violation, for a period from two months to one year.(7) In case of imposing an administrative penalty under Para 6 under a penal ordinance, the coercive administrative measure of impounding the sales outlet shall also be applied.(8) The execution of the administrative penalty under Para 6 and of the coercive administrative measure under Para 7 shall be terminated by the authorities which has imposed them, at the request of the person against which the administrative penalty has been imposed and after such person has proved that the imposed property sanction or fine has been paid in full.(9) Deprivation of the right to exercise the respective activity under Para 6, as well as the coercive administrative measure under Para 7 shall be subject to pre-emptive execution, unless otherwise ruled by the court.(10) Findings reports of violations under paras 1 through 6 shall be drawn up by officials authorized by the Minister of Finance, whereas penal ordinances shall be issued by the Minister of Finance or by officials authorized by the Minister.Article 19(Amended, SG No. 60/2003)(1) Anyone who is found to have violated or permitted a violation under Art. 7, Art. 8 and Art. 10, Para 2 shall be fined from 200 to 1 000 levs, unless the violation constitutes a criminal offence.(2) For a violation under Art. 7, Art. 8 and Art. 10, Para 1, legal persons and sole proprietors shall be subject to property sanctions in amounts from 2 000 to 10 000 levs.(3) Any legal person or sole proprietor conducting business as a financial house without a permit (license) from the BNB shall be penalized by a property sanction in an amount from 10 000 to 50 000 levs.(4) Any person licensed under Art. 3, Para 6, which commits a violation of this Act or any regulation on its implementation shall be penalized by a property sanction in an amount from 5 000 to 25 000 levs.(5) A commercial bank found in violation of the provisions of this Act or any regulations on its implementation in their transactions or actions in foreign currency or precious metals shall be subject to property sanctions in amounts from 5 000 to 25 000 levs.(6) A commercial bank employee found in violation or to have permitted a violation of the requirements of this Act or any regulations on its implementation shall be fined from 500 to 2 500 levs, unless the violation constitutes a criminal offence.(7) In case of a repeated violation, the guilty person shall be penalized by a fine or a property sanction, as the case may be, in the following amounts:1. under Para 1, from 500 to 2 500 levs;2. under Para 2, from 4 000 to 20 000 levs;3. under Para 3, from 15 000 to 75 000 levs;4. under Para 4, from 10 000 to 50 000 levs;5. under Para 5, from 10 000 to 50 000 levs;6. under Para 6, from 1 000 to 5 000 levs.(8) Findings reports for violations under paras 1 through 7 shall be drawn up by officials authorized by the Governor of the BNB, whereas penal ordinances shall be issued by the Governor of the BNB or by officials duly authorized by the Governor.Article 20(New, SG No. 60/2003)The object of the violation shall be taken in favour of the state, including in cases where the offender cannot be identified.Article 21(New, SG No. 60/2003)Drawing up actions, the issuance, appeal and execution of penal ordinances shall be done following the procedure of the Administrative Violations and Penalties Act. SUPPLEMENTARY PROVISIONS 1. For the purposes of this Act:1. "Precious metals" shall be gold, silver and platinum in processed or unprocessed form;2. "Local persons" shall be:a) (Amended, SG No. 60/2003) natural persons residing permanently in the country;b) Corporate bodies with headquarters in the country;c) Corporate bodies with headquarters outside the country, for activity conducted inside the country through registered subsidiary;d) (Amended, SG No. 60/2003) Bulgarian diplomatic, consular, trade or other representative offices, the members of such representative offices, their staff and any Bulgarian citizens servicing them, who are staying abroad on assignment of the Bulgarian state, military personnel on a cadre military service and civilians from the Ministry of Defence posted abroad for an extended period of time to missions, staffs and authorities of international organizations, as well as the members of the families of such persons;e) (New, SG No. 60/2003) Bulgarian citizens staying abroad for educational purposes, regardless of the duration of their stay;f) (New, SG No. 60/2003) Bulgarian citizens staying abroad for the purposes of obtaining medical treatment, regardless of the duration of their stay.3. (Amended, SG No. 60/2003) "foreign persons" shall be any natural persons or corporate bodies that are not compliant with the criteria described in item 2, as well as foreign diplomatic, consular, commercial and other missions, international organizations, members of such missions and organizations, their staff and any foreign nationals employed by them, and members of the families of such persons, as well as those staying in the Republic of Bulgaria for the purposes of education or medical treatment, regardless of the duration of their stay;3a. (New, SG No. 60/2003) "permanent stay" shall refer to a stay in the Republic of Bulgaria with the right to an unlimited duration. Natural bodies referred to in items 2 and 3 shall establish the presence or lack of permanent stay in the country in the meaning of this Act by means of a declaration.4. "Foreign currency" shall be a monetary unit that is legal tender in every other state, as well as collective currencies;5. (Amended, SG No. 60/2003) "foreign currency in cash" shall be banknotes and coin that are legal tender in another state;6. (New, SG No. 54/2006) "Cash" shall be:a) Cash in the form of banknotes and coins that are legal tender;b) Bearer payment instruments.7. (New, SG No. 54/2006) "Bearer payment instruments" shall be:a) traveller's cheque, cheque, promissory note, bill of exchange or any other payment instrument - either bearer's or with a provision for endorsement in bank without limitations or one that has been issued in any other form that provides legally for a tender.b) cheque, promissory note, bill of exchange or any other payment instrument that has been signed but does not carry the name of the payee;8. (Amended, SG No. 60/2003, renumbered from Item 6, SG No. 54/2006) "trade credit" shall be any credit related to the sale of goods or provision of services that has been extended by the seller/buyer of a good or by the provider/recipient of the service under a specific transaction;9. (Amended, SG No. 60/2003, renumbered from Item 7, SG No. 54/2006) "financial credit" shall be the loaning of funds with a return obligation that is not a trade credit. The concept of financial credit shall include also financial leasing, borrowing and the transfer of claims under a financial credit.;10. (Amended, SG No. 60/2003, renumbered from Item 8, SG No. 54/2006) "direct investment abroad" shall be:a) acquisition in a commercial enterprise that is a foreign entity of rights of unlimited liability partner, or of a shareholding entitling owner to more than 10 per cent of the votes in the general meeting;b) The creation of a commercial enterprise abroad;c) The granting of a loan for direct investment purposes under items "a" and "b", or linked to an agreement for profit sharing;d) Any supplementary investment to the investment under items "a" and "b";e) Acquisition of real property.11. (Repealed, SG No. 60/2003, renumbered from Item 9, SG No. 54/2006)12. (Repealed, SG No. 60/2003, renumbered from Item 10, SG No. 54/2006)13. (Renumbered from Item 11, SG No. 54/2006) "transactions in foreign currency by occupation" shall be:a) The conduct over a period of one year of transactions with more than 10 persons, orb) the conduct over a period of one year of transactions with more than 20 persons who are not banks, financial houses or currency exchange offices, orc) (Amended, SG No. 60/2003) the dissemination of advertising statements, solicitations, including through boards, or proposals for transactions to an indeterminate circle of persons, including through the media;14. (Renumbered from Item 12, SG No. 54/2006) "currency exchange office" shall be a person that conducts professional deals in currency in cash;15. (Renumbered from Item 13, SG No. 54/2006) "financial house" shall refer to any person that conducts deals in foreign currency in cash and by bank and other transfer by occupation.16. (New, SG No. 60/2003, renumbered from Item 14, SG No. 54/2006) a "repeated" violation shall be any violation committed within one year after the entry into force of the penal ordinance under which that person was penalized for the same type of offence;17. (New, SG No. 60/2003, renumbered from Item 15, SG No. 54/2006) "an article of the folk crafts" shall refer to any item made by a person who is registered in the register of masters under the Handicrafts Act. TRANSITIONAL AND CONCLUDING PROVISIONS 2. Currency exchange offices whose licenses to conduct business in foreign currency have been revoked by the Bulgarian National Bank because of violations of banking or currency law committed after January 1, 1995, shall not be eligible to conduct such transactions for a period of five years after the entry into force of this Act. 3. All persons operating as currency exchange offices shall register with the Ministry of Finance within 45 days of the entry into force of this Act. Persons who fail to submit registration applications within the above period shall lose their licenses to operate as currency exchange offices. 4. All persons operating as financial houses shall file an application for license replacement with the Bulgarian National Bank within 45 days of the entry into force of this Act. Persons who fail to submit such applications within the above period shall lose their licenses to operate as financial houses. 5. This Act shall revoke the Transaction with Currency Valuables and Currency Control Act (promulgated, SG51/1966, amended SG 26/1968, 92/1969, 53 and 99/1989, 25/1991 and 10/1993; 40/1996: Ruling No. 6 of the Constitutional Court of 1996; SG 95/1996: Ruling No. 15 of the Constitutional Court of 1996). 6. In Art. 34, item 2 of the Administrative Procedure Act (promulgated, SG 90/1979, amended, 9/1983, 26/1988, 94/1990, 25 and 61/1991, 19/1992/ 65 and 70/1995, 122/1997, 15 and 89/1998) the words "under the Transaction with Currency Valuables and Currency Control Act" shall be replaced with "under the Foreign Exchange Act". 7. Art. 10, Para 1 of the Obligations and Contracts Act (promulgated, SG 275/1950, corrected Izvestia 2/1950, amended Izvestia 2/1950, 69/1951, 92/1952, SG 85/1963, 27/1973, 16/1977, 28/1982, 30/1990, 12 and 56/1993, 83 and 104/1996) shall be revoked. 8. The Council of Ministers, the Minister of Finance and the Bulgarian National Bank shall adopt regulations on the implementation of this Act within three months of its entry into force. 9. Implementation of this Act shall be the responsibility of the Minister of Finance and the Bulgarian National Bank. 10 This Act shall enter into force on January 1, 2000.ACT ON THE AMENDMENT AND SUPPLEMENTTO THE FOREIGN EXCHANGE ACTPromulgated State Gazette No. 60/4.07.2003TRANSITIONAL AND CONCLUDING PROVISIONS 21. (1) Within 6 months after the effective date of this Act, all local legal persons or sole proprietors which have extended to or obtained from foreign persons any financial credit in existence as at the effective date of this Act shall file depositions of declaration with the BNB following a procedure established by the latter.(2) The obligation referred to in Para 1 shall not apply to local legal persons or sole proprietors that have registered their financial credits with the BNB under the procedure set out in the repealed Art. 4, Para 2 of the Foreign Exchange Act.(3) Where a local legal person or sole proprietor orders a local bank to make a transfer of funds in connection with a financial credit extended by or to a foreign person prior to the entry into force of this Act, the local bank shall execute the transfer order upon verification that the financial credit has been registered with the BNB under the procedure set out in the repealed Art. 4, Para 2 of the Foreign Exchange Act, or declared under Para 1 of this clause. 22. Within 6 months after the effective date of this Act, all local legal persons or sole proprietors which have direct investments abroad as at the effective date of this Act shall file depositions of declaration with the BNB following a procedure established by the latter. 23. (1) By 1 October 2003, the Council of Ministers shall adopt, or the Minister of Finance and BNB shall issue, as the case may be, the implementation regulations for this Act.(2) By 1 October 2003, the Council of Ministers shall adopt a regulation on the terms and procedure for the business activity of persons providing loans against a pledge of chattels (pawn houses).CONCLUDING PROVISIONS 2 This Act shall enter into force on the date of entry into force of the Republic of Bulgaria EU Accession Treaty. For more information visit www.solicitorbulgaria.com id: 307 Fri, 01 Aug 2008 03:01:43 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-foreign-exchange-act http://web.solicitorbulgaria.com/index.php/bulgarian-foreign-exchange-act http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/Foreign_Exchange_Act.jpg EUR http://web.solicitorbulgaria.com/index.php/bulgarian-foreign-exchange-act legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Part OneCOPYRIGHTChapter OneGENERAL PROVISIONSSubject of the ActArticle 1. This Act regulates the relationships which are related to the creation and distribution of literary, artistic and scientific works.Inception of CopyrightArticle 2. The copyright over literary, artistic and scientific works shall arise for the author with the creation of the literary, artistic or scientific work.Chapter TwoOBJECTS OF COPYRIGHTProtected ObjectsArticle 3. (1) Any literary, artistic and scientific work resulting from a creative endeavour and expressed by any mode and in any objective form shall be the object of copyright such as:1. literary works, including works of scientific and technical literature, publicism and computer software;2. musical works;3. performing arts works: dramatic or dramatico-musical works, entertainments in dumb show, choreography, etc.;4. films and other audio-visual material;5. works of fine art, including works of applied art, design and crafts;6. architectural works;7. photographic… For more information visit http://www.solicitorbulgaria.com id: 305 Part OneCOPYRIGHTChapter OneGENERAL PROVISIONSSubject of the ActArticle 1. This Act regulates the relationships which are related to the creation and distribution of literary, artistic and scientific works.Inception of CopyrightArticle 2. The copyright over literary, artistic and scientific works shall arise for the author with the creation of the literary, artistic or scientific work.Chapter TwoOBJECTS OF COPYRIGHTProtected ObjectsArticle 3. (1) Any literary, artistic and scientific work resulting from a creative endeavour and expressed by any mode and in any objective form shall be the object of copyright such as:1. literary works, including works of scientific and technical literature, publicism and computer software;2. musical works;3. performing arts works: dramatic or dramatico-musical works, entertainments in dumb show, choreography, etc.;4. films and other audio-visual material;5. works of fine art, including works of applied art, design and crafts;6. architectural works;7. photographic works to which are assimilated works expressed by a process analogous to photography;8. blueprints, maps, sketches, plans and others related to architecture, urban planning, geography, topography, museum research and any other area of science and technology;9. graphic design of publications;10. (new, SG No. 29/2006) cadastral maps and state topographic maps.(2) The following shall also be considered objects of copyright:1. translations and adaptations of existing works and folklore;2. arrangements of musical works and folklore;3. periodicals, encyclopaedias, collected works, anthologies, bibliographies, data bases and other similar objects that include two or more works or products.(3) Parts of works under paragraphs 1 and 2, preliminary drawings, diagrams, etc., may also be objects of copyright.ExceptionsArticle 4. The following shall not be considered objects of copyright:1. normative and individual acts of government bodies and official translations thereof;2. ideas and concepts;3. works of folklore;4. news, facts, information and data.Chapter ThreeCOPYRIGHT PROPRIETORSAuthors and Other Copyright ProprietorsArticle 5. An author is a natural person whose creative endeavors have resulted in the creation of a literary, artistic or scientific work. Other natural or legal persons may be copyright proprietors only in the cases provided for under this Act.Presumption of AuthorshipArticle 6. (1) (Previous Article 6, amended and supplemented, SG No. 99/2005) Until proved otherwise, the person whose name or other identifying mark is inscribed in the customary manner on the original of a work, replicas or copies thereof and/or the packaging, shall be considered its author.(2) (New, SG No. 99/2005) Paragraph (1) shall also apply respectively to holders of copyright in the cases referred to in sentence one of Article 10, sentence one of Article 11 (1) and Article 14.Authorship of Pseudonymous or Anonymous WorksArticle 7. (1) Literary, artistic or scientific works may be made available to the public under a pseudonym or anonymously.(2) Until the identity of the author is disclosed his copyright shall be exercised by the natural or legal person who for the first time made the work available to the public with the author's consent.(3) The provision of paragraph 2 shall not apply if the pseudonym leaves no doubt as to the identity of the author.Joint AuthorshipArticle 8. (1) Copyright over works created by two or more persons shall belong to them jointly irrespective of whether the said works constitute one indivisible entity or consist of separate parts each having individual significance.(2) The consent of all authors shall be required for every instance of use or revision of the work. In the event that the authors fail to reach agreement among themselves the issue shall be resolved by the court.(3) If authorization has been granted to use a literary, artistic or scientific work in a given manner, or a court ruling has been rendered to that effect, none of the joint authors is entitled without reasonable grounds to object to that work's use in the said manner.(4) The compensation due to the authors for the use of their work, shall be distributed among them in shares by mutual agreement. In the event that no agreement exists, it shall be considered that all the joint authors' shares are equal. In case of disputes, individual shares shall be determined in court pursuant to the contribution of each of the authors.(5) Whenever a work created by joint authors consists of components each having individual significance, each of the joint authors may permit the individual use of his own component unless the authors have agreed otherwise and if this does not hinder the use of the work as a whole.Copyright over Translations and AdaptationsArticle 9. Copyright over translations and adaptations shall belong to the person that has made them and shall not prejudice the rights of the original author of the work. This shall not deprive other persons from the right to make their own translations or adaptations of the same work.Copyright over Periodicals and Encyclopaedias(Title supplemented, SG. No. 28/2000)Article 10. (Supplemented, SG. No. 28/2000) Copyright over periodicals and encyclopaedias shall belong to the natural or legal person responsible for the creation and publishing of the publication. Copyright over individual components included in such publications having the nature of literary, artistic or scientific works, shall belong to their individual authors.Copyright over Collections, Anthologies,Bibliographies and Data Bases(Title amended, SG. No. 28/2000)Article 11. (Amended, SG. No. 28/2000) (1) Copyright over collections, anthologies, bibliographies, data bases and other similar materials shall belong to the person who has collected or arranged the works and/or material contained therein, unless agreed upon otherwise in a contract. Copyright over the individual parts of which such a work may consist and which themselves constitute literary, artistic or scientific works, shall belong to their individual authors.(2) The permission of the authors shall be required, unless provided otherwise by a law, for the inclusion of works or parts thereof into collections.Copyright over Works of Fine Art and ArchitectureArticle 12. Copyright over works of fine art and architecture shall belong to the person who has created those works even in such cases when the said works are the property of another person.Copyright over PortraitsArticle 13. Copyright over works of fine art or photography constituting a portrait of a person different from the author shall belong to the author. The author may negotiate with the person who appears on the portrait the terms of the use of such works.Copyright over Computer Software and Data Bases Developed under anEmployment ContractArticle 14. Unless agreed upon otherwise, copyright over computer software and data bases developed under an employment contract shall belong to the employer.Chapter FourCONTENT OF COPYRIGHTSection INon-Economic RightsTypes of Non-Economic CopyrightArticle 15. (1) The author shall be entitled to:1. decide whether the work created by him may be made available to the public and to determine the time, place and manner in which this may be done, with the exceptions of the objects under Article 3, paragraph 1, items 4, 6 and 8, for which such rights shall be arranged by contract;2. claim the copyright over such works;3. decide whether such works shall be made available to the public anonymously or pseudonymously;4. require that his name, pseudonym or other identifying mark be identified in a suitable manner whenever his work is used;5. require that the entirety of his work is preserved and oppose any changes therein as well as any other actions that may violate his legitimate interests or personal dignity;6. make alterations in the work inasmuch as this does not prejudice rights acquired by other persons;7. have access to the original of the work when it is in the possession of another person and whenever such access is necessary for exercising non-economic or economic rights under this Act;8. halt the use of the work due to changes in his beliefs, with the exception of already implemented architectural works, providing compensation for the damages incurred by persons who have lawfully obtained the right to use the work.(2) The author of an architectural design shall not be entitled to oppose the wish of the owner of the already completed structure to destroy the latter, reconstruct it, add a superstructure or an annex thereto, as long as such actions are undertaken in conformity with existing regulations.Non-Transferability of Non-Economic RightsArticle 16. Non-economic rights under items 2 and 4 of paragraph 1 of the preceding article are non-transferable. Transfer of other non-economic rights may only be explicit and in writing.Exercising Non-Economic Rights after the Death of the AuthorArticle 17. After the death of the author and until the expiration of the term of copyright protection, the non-economic rights, with the exception of those under Article 15, paragraph 1, items 6 and 8, shall be exercised by the author's heirs.Section IIEconomic RightsTypes of Economic CopyrightArticle 18. (1) The author shall be entitled to the exclusive right to use the work created by him and to permit its use by other persons except in the cases when this Act provides otherwise.(2) Actions such as the ones listed below shall be considered as uses within the meaning of paragraph 1:1. reproduction of the work;2. distribution of the original of the work or copies thereof among an unlimited number of persons;3. public presentation or performance of the work;4. wireless transmission of the work;5. (amended, SG No. 99/2005) cable transmission and retransmission of the work;6. public display of a work of art or a work created by photographic or similar means;7. translation of the work into another language;8. (supplemented, SG. No. 28/2000) revision of the work. Revision shall be the adapting of the work and the introduction of any modifications thereto as well as the use of the work to create a new derivative work;9. implementation of an architectural design through the building or manufacture of the object described in it;10. (new, SG. No. 28/2000, amended, SG No. 99/2005) transmission by wireless or cable of access to the work or part thereof for an unlimited number of persons in a manner which permits that access to occur from a place and at a time individually chosen by each one of them.11. (new, SG. No. 77/2002) import or export of production specimens in commercial quantity regardless of whether manufactured legally or in violation of the privilege described in item 1.(3) Use under paragraph 2, items 3 through 8 shall be considered as having occurred whenever the actions described above have been performed in such a manner as would enable an unlimited number of people to perceive the work.(4) (Repealed, SG. No. 77/2002).Termination of Right of DistributionArticle 18a. (New, SG. No. 77/2002) (1) (Amended, SG No. 99/2005 - Effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The first sale or other transaction on the territory of the European Union member-states by virtue of which ownership of the work or copy thereof by the author of the copyright or with his consent shall result in termination of such distribution on the territory, with the exception of the right to permit further leasing thereof.(2) (Supplemented, SG No. 99/2005) The provision in Paragraph (1) shall not apply to the privilege referred to in Article 20 and Article 22a (2).(3) The provision in paragraph 1 shall not apply to the cases of providing originals of the work or copies thereof by digital means in respect of materialized copies of the work which had been made by the recipient with the consent of the holder of the copyright.Right to Compensation for All Types of UseArticle 19. The author shall be entitled to compensation for all types of use of his work and for each successive use of the same type.Right to Royalty at Resale of Works of ArtArticle 20. (Supplemented, SG No. 28/2000, amended, SG No. 99/2005) (1) Upon resale of an original work of art, when one of the parties to the transaction or the intermediary is an art dealer, including an art gallery or auction house, the author of the work shall be entitled to receive royalty on the sale price.(2) For the purposes of this Act, `original work of art' means works of graphic or plastic art such as pictures, collages, paintings, drawings, engravings, prints, lithographs, sculptures, tapestries, ceramics, glassware and photographs, provided they are made by the artist himself or are copies considered to be original works of art in pursuance to 4 of the Supplementary Provisions.(3) The right referred to in Paragraph (1) shall be inalienable, except in the case of inheritance.(4) Paragraph (1) shall not apply to resale at a price lower than the equivalent in BGN of EUR 300.(5) Paragraph (1) shall not apply to acts of resale where the seller has acquired the work directly from the author less than three years before that resale and where the resale price does not exceed the equivalent in BGN of EUR 10,000.(6) Any waiver of the right referred to in Paragraph (1) shall be invalid.(7) The right referred to in Paragraph (1) shall continue until the copyright of the work is protected.Payment of Royalties at Resale of Works of ArtArticle 20a. (New, SG No. 99/2005) (1) The royalty provided for in Article 20 (1) shall be set at the following rates:1. five per cent for the portion of the resale price between the BGN equivalent of EUR 300.01 and EUR 3,000, plus2. four per cent for the portion of the resale price between the BGN equivalent of EUR 3,000.01 up to EUR 50,000, plus3. three per cent for the portion of the resale price between the BGN equivalent of from EUR 50,000,01 to EUR 200,000, plus4. one per cent for the portion of the resale price between the BGN equivalent of from EUR 200,000,01 to EUR 350,000, plus;5. zero point five per cent for the portion of the resale price the BGN equivalent of from EUR 350,000,01 to EUR 500,000, plus6. zero point twenty-five per cent for the portion of the resale price exceeding the BGN equivalent of EUR 500,000.(2) In case prior to the payment of the royalty the seller and/or intermediary pays any tax whatsoever on the occasion of resale, the sum of the tax shall be deducted from the sale price upon application of Paragraph (1).(3) Royalty shall be calculated for each resold object individually.(4) The total amount of the royalty for one object may not exceed the BGN equivalent of EUR 12,500.(5) Royalty shall be owed solidarily by seller and intermediary, if any.(6) The seller or intermediary, if any, shall be obligated to notify the right holder referred to in Article 20 (1) of the resale within two months thereof and to pay said holder the royalty due within the same period by means of an organisation for collective rights management or directly.(7) Rightholders and their organisations for collective management of rights may, within a period of three years following resale, require from any dealer in works of art who has participated therein to provide any information they may need to ensure reception of the royalty referred to in Article 20 (1).(8) For the purposes of this article seller shall mean any natural or legal person in whose name the sale is made.Permitted Cable TransmissionsArticle 21. (1) (Supplemented, SG. No. 28/2000, previous Article 21, supplemented, SG No. 77/2002, amended, SG No. 99/2005) The permission for wireless broadcasting of a work shall include a permission to the same organization to broadcast the work by cable without paying additional compensation, provided that the transmission is conducted simultaneously with the broadcasting, in an unchanged form and does not extend beyond the territory for which the right to broadcast has been granted.(2) (New SG. No. 77/2002, amended, SG No. 99/2005) Outside of the cases described in paragraph 1, the permission to re-transfer works by means of cable simultaneously with the broadcasting or transfer in full and in an unmodified form by a different organization may be granted only through an organization for collective management of copyrights.(3) (New, SG No. 99/2005) Where an author has provided the right to cable retransmission of own work to a producer of sound recording or film, or of another audio-visual work, the cable operator who retransmits that work shall owe the author royalty other than any other. Any waiver of such payment on the part of an author shall be invalid. The right to collect said royalty may be extended by the author only to organisations for collective management of the respective category of copyrights.(4) (New, SG No. 99/2005) The royalties referred to in Paragraph (3) shall be collected only though organisations for collective management of the respective category of copyrights. The amount and manner of payment thereof shall be determined by an agreement between said organisations and the obligated cable operators.(5) (New, SG No. 99/2005) The provisions of Paragraphs (2), (3) and (4) shall not prevent the conclusion of agreements for permission to retransmit programme services between radio and television organisations effecting the initial broadcasting or transmission of own programme services and retransmitting cable operators. When the rights to retransmit works included in the programme services of radio and television organisations have been duly ceded, the permission given by the organisations shall also include these rights.Permitted Transmission by Telecommunications SatelliteArticle 22. (Amended SG. No. 28/2000) (1) (Amended, SG No. 99/2005) Permission to broadcast a work by wireless means shall also include the right to incorporate it in an uninterrupted communication chain leading to a satellite and from there back to Earth in a manner permitting its reception by the public. Reception of the signal by the public may also permissibly be effected through the intermediation of an organisation other than the broadcasting one, but only in case the author has ceded this intermediary organisation the right to broadcast the work by wireless means, transmit it by cable or perform it publicly in another manner. In these cases, the organisation broadcasting the signal to the satellite shall not owe royalty.(2) (Amended, SG. No. 28/2000) When the signal under paragraph 1 is encoded, the permission shall be considered granted only if the decoding device has been provided by the broadcasting organization or with its consent.Right to Royalty upon Rental or LendingArticle 22a. (New, SG No. 99/2005) (1) Where an author of a musical or audio-visual work has extended his right to rent audio- and video carriers containing his work to the producer of the respective sound recording or film, the person that rents such carriers shall owe the author fair remuneration separately from any other. Any refusal of such remuneration may be extended in advance by the author through organisations for collective management of rights or directly.(2) For lending works or copies of mediums containing said works authors shall be entitled to a remuneration owed by the person lending said works.(3) The provisions of Paragraph (1) and (2) shall not pertain to the works of architecture, applied arts and artistic folk crafts.(4) Paragraph (2) shall not apply in the case of lending to state and municipal cultural organisations operating as libraries, school, university and community centre libraries.(5) The remunerations referred to in Paragraph (2) shall only be collected through organisations for collective management of the respective categories of copyrights. The amount and manner of payment thereof shall be determined by an agreement between said organisations and the persons liable.Chapter FiveFREE USE OF WORKSAdmissibility of Free UseArticle 23. (Supplemented, SG No. 28/2000, amended, SG. No. 77/2002) The free broadcast of works shall be admissible only in such cases as are described in the law on condition that it does not hamper the normal use of the work and does not harm the legitimate interests of the holder of the copyright.Free Use Without Payment of CompensationArticle 24. (Amended, SG. No. 77/2002) (1) No permission from the author and no compensation shall be due in the case of:1. (supplemented, SG No. 99/2005) temporary use of works if it is transitional and incidental by nature, is of no independent economic significance, constitutes an inalienable and important part of the technical process, and is conducted for the sole purpose of allowing:a) transfer via network through an intermediary; orb) other allowed use of a work.2. the use of quotations from already announced works for critical appraisals or reviews by providing due indication of the source and name of the author, unless that is impossible to do; Quotations shall be made in the customary manner and their volume shall be justified by their purpose;3. the use of parts of published works or of a moderate number of small works in other works in a volume that is required for the purposes of preparing an analysis, commentary, or other scientific research; such use shall be admissible only if it is done for scientific or educational purposes and if reference is made to the source and name of the author, if this is not impossible;4. the use as current news in the press and other media of addresses, reports, sermons, and others or parts thereof delivered at public gatherings, as well as speeches delivered in the course of legal proceedings, if reference is made to the source and name of the author, if this is not impossible;5. (amended, SG No. 99/2005) use by the mass media of articles on current economic, political, and religious topics in all cases where such reproduction is not expressly forbidden if reference is made to the source and name of the author, if this is not impossible6. reproduction by photographic, cinematographic or similar manner, as well as audio or video recordings of works related to a current event for the use of such works by the media in a limited volume for the purpose of providing news coverage if reference is made to the source and name of the author, if this is not impossible;7. use of works that are on permanent display in streets, squares, and other public places without mechanical contact copying, as well as their broadcast by wireless technology or cable broadcast or by other technical means, if such broadcast is carried out for informational or other non-commercial purpose;8. the public presentation or performance of published works in educational institutions if this does not involve the collection of revenues from such performance and if the participants in the preparatory work and the actual public performance do not receive compensation;9. (amended, SG No. 99/2005) reproduction of already published works by generally accessible libraries, research and educational institutions, museums, and archives for educational purposes or to ensure the preservation of the work inasmuch as such action is not undertaken for profit;10. reproduction of works already made available to the public through Braille script or similar method if this is not done for profit;11. providing access to natural persons to works that belong to collections of organizations as described in item 9 if this is not done for commercial purposes and not for profit;12. temporary copying of works by radio and television organizations, to which the author has granted the right to use his work and broadcast it by their own technical means and for the purposes of their own broadcasts within the scope of the permission granted; copies that are of important documentary value may be kept in official archives;13. use of works for the purposes of national security, in judicial or administrative proceedings, and in parliamentary practice;14. use of works in religious ceremonies or official ceremonies organized by public authorities;15. use of buildings that are considered works of architecture or of plans thereof for the purpose of the reconstruction of such buildings.(2) The provisions of paragraph 1 shall not apply to computer applications. The provisions of articles 70 and 71 shall apply to them.Free Use With Payment of CompensationArticle 25. (Amended, SG. No. 77/2002) (1) (Supplemented, SG No. 99/2005) Without the consent of the holder of the copyright, but with payment of fair compensation it shall be considered admissible:1. to reproduce for non-commercial purposes printed works, with the exception of musical note material, on paper or other similar carrier through photocopying or other similar method that yields similar results;2. reproduction of works regardless of the carrier by natural persons for their personal use if such reproduction is not done for commercial purposes.(2) The provision in paragraph 1, item 2 shall not apply to computer software and architectural designs. The provisions contained in Articles 70 and 71 shall apply to computer software.Tying Free Use With Maintaining Means of Technical ProtectionArticle 25a. (New, SG. No. 77/2002) (1) (Previous Article 25a, SG No. 99/2005) The use of works under Article 24, paragraph 1 and Article 25, paragraph 1 shall not involve removal, damage, destruction, or distortion of technical means of protection without the consent of the holder of the copyright.(2) (New, SG No. 99/2005) Users who desire to apply the provisions of Article 24, Items 3, 9, 10, 12 and 13 of Paragraph (1) and of Article 25, Item 1 of Paragraph (1) but are deterred by technical means of protection, may request from the rightholder to provide them access to a degree permissible by the objective. This provision shall not apply in cases where works or other subjects of protection have become accessible by contractual means to an unlimited number of persons in a manner allowing that access from a location and at a time individually chosen thereby.Compensation for Free Use[1](Title amended, SG. No. 77/2002)Article 26. (1) (Amended and supplemented, SG. No. 28/2000, effective 1.01.2001) The authors of works recorded on sound or video media, as well as the performers whose performances have been recorded, the phonogram producers and the producers of the initial recording of recorded films shall be entitled to compensation whenever their recordings are recorded for personal use. Such compensation shall also be due to the authors and publishers of all types of printed works when these works have been reproduced reprographically for personal use.(2) (Amended SG. No. 28/2000, effective 1.01.2001) The compensation under paragraph 1, sentence one, shall be due from the persons who manufacture or import blank audio or video media and recording machines, while the compensation under paragraph 1, sentence two, shall be due from the persons who manufacture or import machines designed for reprographic reproduction. The compensation shall amount to five per cent of the manufacturer's price of the media produced in the country, and to two per cent of the manufacturer's price of the machines produced on the country, or of the customs dutiable value of imported media and machines.(3) (Amended SG. No. 28/2000, effective 1.01.2001, SG. No. 77/2002, SG No. 99/2005, effective 10.06.2006) Compensations in pursuance to sentence one of Paragraph (1) and to sentence two of Paragraph (1) shall be paid to different for the two separate categories of rights organisations, established under the procedure of Article 40 by associations representing the different categories of rightholders under this Act. Prior to any such distribution, 20 per cent of all sums collected shall be set aside and credited to the account of the "Culture" National Fund.(4) (Amended SG No. 28/2000) The distribution of the sums thus collected among the various categories of right-holders shall be made as follows:1. of compensations under paragraph 1, sentence 1:a). one third for the authors;b). one third for the performing artists;c). one third for the producers;2. of compensations under paragraph 1, sentence 2:a) fifty per cent for the authors;b) fifty per cent for the publishers.(5) (New, SG No. 28/2000, effective 1.01.2001, amended, SG No. 77/2002) The sums collected under paragraph 1 shall be refunded by the collecting organizations within six months of the date on which reason to do so has arisen:1. whenever the levied blank audio or video media:a) have subsequently become an object of an export transaction, without any recordings on them;b) have subsequently been fixed with recordings made within the country by a person who has legitimately acquired the right to make such recordings and has settled all copyright and neighbouring rights matters related to the recording;c) have been purchased by radio or TV organizations holding legal licenses and have been fixed with recordings and kept by these organizations for the needs of their own broadcasts;d) have been purchased by film-makers or creators of other types of audio-visual works and have been fixed with recordings and used by them for their own production or advertising needs;e) (new, SG. No. 77/2002) have already been supplied or are due to be supplied subsequently with technical means for protecting rights;2. (amended, SG. No. 77/2002) whenever the levied machines are designed for recording or reprographic reproduction:a) have subsequently become the object of an export transaction, and if this transaction has been conducted prior to the machines being used in the country;b) have been purchased from generally accessible libraries, educational institutions, museums, and archives;c) have been purchased by the National Assembly, the National Intelligence Service, the National Protection Service, the Ministry of Defense, and the courts.(6) (New, SG No. 28/2000, effective 1.01.2001) Machines designed for recording under this Article shall be all the machines designed for the recording of works on sound or video media from phonograms or video-recordings, or from radio or TV broadcasts, while machines designed for reprographic reproduction shall be all the machines designed for the copying of printed materials by photo-copying or any other manner producing a similar result.(7) (New SG. No. 28/2000, effective 1.01.2001, repealed, SG. No. 77/2002)(8) (New, SG No. 99/2005) Persons obligated to pay compensations in pursuance to Paragraph (2) shall be obligated to notify, within one month following the expiry of each half-year, the respective organisations referred to in Paragraph (3) as regards the quantity and types of produced and/or imported over the six-month period thereby media and machines referred to in Paragraph (2), as well as regarding their production, respectively customs taxable value. Persons who receive such information may not use said information for anything but collection and distribution of compensations.Chapter SixDURATION OF COPYRIGHTGeneral RuleArticle 27. (1) (Amended SG. No. 28/2000) Copyright shall be protected for the life of the author and seventy years after his death.(2) For works having two or more authors the term specified in paragraph 1 shall commence from the death of the last surviving author.Pseudonymous or Anonymous WorksArticle 28. (Amended and supplemented, SG No. 28/2000) Copyright over anonymous or pseudonymous works shall be protected for seventy years after the works have been first made available to the public. In the event that within the said term the author's identity is disclosed, or if the pseudonym throws no doubt upon the author's personality, the provisions of the preceding article shall apply.Computer Programs and Data BasesArticle 28a. (New, SG No. 28/2000) The copyright over a computer program or a data base under Article 14 shall be protected for seventy years after making the work available to the public. If the author's identity has been established within this term, the provisions of Article 27 shall apply.FilmsArticle 29. (Amended, SG No. 28/2000) The copyright over a film or some other audio-visual work shall be protected for seventy years after the death of the last survivor among the director, the author of the screenplay, the director of photography, the author of the dialogue, or the composer, if the music had been specially made for the film.Collected WorksArticle 30. (1) (Previous Article 30, amended, SG No. 28/2000) Copyrights over encyclopaedias, periodicals and other works under Article 3, paragraph 2, item 3 shall be protected for seventy years after their publication.(2) (New SG. No. 28/2000) With respect to works which are published in volumes, parts, issues, or episodes, the term under paragraph 1 shall be calculated for each one individually.Commencement of TermsArticle 31. The terms mentioned in the preceding articles of this chapter shall commence as of January 1 of the year following the year of the author's death, or, respectively, the year when the work under Articles 27 through 30 was made, or made available to the public or published.Inheriting CopyrightsArticle 32. (1) Upon the death of the author copyrights shall be passed on to his heirs by last will or by operation of law under the Succession Act. (2) Copyrights may be inherited until the term of their protection expires.Exercising Rights in the Absence of HeirsArticle 33. (Amended, SG. No. 77/2002, SG No. 28/2005) In the event that an author does not have hairs, or any such heirs die prior to the expiration of the term of protection, copyrights shall be passed on to the state which shall exercise such rights until they expire through the Ministry of Culture. In the event that the deceased author or his heir had been member of an organization conducting collective management of rights under this Act, that organization shall at its own expense exercise such rights until they expire.Use of Works after Copyrights Have ExpiredArticle 34. After the term of copyright protection has expired literary, artistic and scientific works may be used freely inasmuch as that does not violate rights under Article 15, items 4 and 5, which are of unlimited duration. The bodies under Article 33 shall monitor the observance of such rights and may, as an exception, permit changes to be made in such works.Protection of Unpublished WorksArticle 34a. (New SG. No. 28/2000) Every person who makes a work available to the public after the term of copyright protection has expired shall enjoy the rights under Article 18, if the work had not been published by then. This right shall be protected for twenty five years as of January 1 of the year, following the year in which the work has been made available to the public.Chapter SevenUSE OF WORKSSection IGeneral ProvisionsAuthor's Consent for the Use of His WorkArticle 35. A literary, artistic or scientific work may be used with the consent of the author unless otherwise provided for by this Act.Contracts on UseArticle 36. (1) By concluding a contract on the use of his work, the author shall grant the user exclusive or non-exclusive rights to use the said work on specific terms and for compensation.(2) Whenever an author grants a user exclusive rights to use a work he himself may not use it in the manner, for the term and in the territory agreed upon in the contract, nor shall he grant such rights to third parties.(3) Whenever an author grants a user non-exclusive rights to use a work, he may continue using it himself, as well as grant non-exclusive rights for its use to third parties.(4) The granting of exclusive rights under paragraph 2 shall be explicit and in writing. Whenever no such provision exists, it shall be considered that non-exclusive rights have been granted.(5) If no term has been specified in the contract, it shall be assumed that the right to use a work has been granted for a period of three years, or five years for architectural designs.(6) If the contract does not specify a territory on which a user may use a work, the country of which the user is a national or the country of his seat, if he is a legal person, shall be considered as such territory.Effect and Duration of ContractsArticle 37. (1) A contract under which an author has granted use of all works which he may create for the rest of his life shall be considered null and void.(2) A contract on the use of a work may not be concluded for a term exceeding ten years. Whenever such a contract has been concluded with a longer term of validity, it shall remain in force for ten years only. This limitation shall not apply to contracts for architectural designs.Amount of CompensationArticle 38. (1) The compensation of the author may be defined as a portion of the revenues resulting from the use of his work, as a fixed one-time amount or in other forms.(2) Whenever the one-time compensation proves obviously incommensurate with the revenues resulting from the use of his work, the author may claim an increase of the said compensation. If no agreement can be reached between the parties, the issue shall be resolved through the courts ex aque et bono.Avoiding a Contract when the Performance has not CommencedArticle 39. (1) In the event that a contract granting exclusive rights does not specify a deadline by which the user should commence the use of the work, the author may avoid the contract if use of his work has not started within two years of the conclusion of the contract, or of the date of handing over the work, whenever such date is subsequent to the one on which the contract was concluded.(2) Paragraph 1 shall not apply to architectural designs.Collective Management OrganizationsArticle 40. (1) Authors may, at their own free will, establish organizations for the collective management of copyrights and grant to such organizations the right to conclude contracts on the use of their works in one or more ways and to collect moneys due.(2) A publisher who has been granted by the author rights other than the right to publish may transfer management of these rights to an organization described in the preceding paragraph.(3) The organizations carrying out collective management of copyrights may only be associations of authors and other proprietors of such rights. These organizations shall not operate for profit and shall distribute all moneys received from users among their members after making the deductions necessary for their own operation. The establishment and functioning of such organizations shall be carried out under the procedures established for non-profit associations.(4) (Amended, SG No. 28/2005) All organizations under paragraph 1 shall submit to the Ministry of Culture a copy of the court ruling of incorporation and of any subsequent changes thereof within one month. The Ministry of Culture shall keep a register of such organizations.(5) An organization under paragraph 1 shall not refuse membership to any person who is proprietor of such rights as that organization manages.(6) The regulations on the distribution of the compensations collected by the organizations described in paragraph 1 among the eligible members shall be proposed by the elected governing body of the organization and adopted by the general meeting of its members.(7) (Amended, SG No. 28/2000, SG No. 99/2005) The organizations under paragraph 1 may represent their own members, the kindred organizations abroad with which they have concluded mutual representation contracts, and the members thereof, before all juridical or administrative bodies whenever the rights they manage are to be protected. For the protection of these rights, the organizations under paragraph 1 may take on their behalf any legal action, including filing claims under Articles 94, 94a and 95, or demand the imposition of measures under Article 95c, 95d, 96a, 96b and 96d.(8) (New, SG No. 28/2000) In cases where this Act stipulates that the author's consent shall be granted only through a collective copyright management organization, the organization managing the respective rights shall also act on behalf of non-member authors and shall settle its relations with these authors in the manner it does with its members.Works Created Under an Employment RelationshipArticle 41. (1) Copyright over works created under an employment relationship shall belong to the author unless provided for otherwise in this Act.(2) (Amended, SG No. 28/2000) The employer shall have the exclusive right, without permission from the author and without paying compensation, to the extent the contract of employment does not provide otherwise, to use such a work for his own purposes. The employer may exercise this right in a manner and to a degree corresponding to his customary activity.(3) Whenever the compensation for the author for the work under paragraph 1 proves incommensurate with the revenues under Article 38, paragraph 2 collected as a result of the use of the work, the author may demand additional compensation. If no agreement can be reached between the parties, the issue shall be resolved through the courts ex aque et bono.Works Created by Special OrderArticle 42. (1) Copyright over works created by special order shall belong to the authors unless otherwise provided for in the contract.(2) Unless agreed upon otherwise, the ordering party may use the work without the permission of the author for the purposes for which it was ordered.Section IIPublishing ContractDefinitionArticle 43. With a publishing contract the author grants the publisher the right to reproduce and distribute his work, and the publisher is obliged to perform these acts and to pay the compensation due to the author.TypesArticle 44. A publishing contract may grant the right to reproduce and distribute a work which has already been written, or one which the author has undertaken to write.Expanding the Field of ApplicationArticle 45. (1) Whenever by means of a publishing contract an author has granted a publisher the right to use the work for purposes other than publishing as well, the publisher may grant the use of the work for the said purposes to third parties if this is explicitly agreed upon.(2) Whenever rights are transferred under paragraph 1 above, the publisher shall inform the author in writing.FormArticle 46. A publishing contract shall be concluded in writing.Special Non-Mandatory RulesArticle 47. Unless provided for otherwise in the publishing contract, it shall be assumed that:1. the publisher has been granted rights for one printing only;2. (amended, SG No. 28/2000) the publisher has been granted the right to publish the work in a circulation not exceeding ten thousand copies;3. compensation to the amount of fifteen per cent of the retail price of each sold copy of the work shall be due to the author;4. the number of copies which the publisher may provide to the author free of charge may not be less than five for each printing;5. the publisher shall publish the work in the language in which he has received it;6. the publisher may distribute the work only in the territory of his country of nationality or the one in which his seat is situated if he is a legal person.AmendmentsArticle 48. Prior to undertaking a second printing, the publisher shall enable the author to make any amendments and additions to the work deemed necessary.Returning Originals Offered for PublicationArticle 49. The publisher shall return the originals of works of fine art, original documents, illustrations and other originals offered for publication unless agreed upon otherwise in writing.Destroyed CopiesArticle 50. In the event that reproduced but not yet offered for sale copies of the work are fully or partially destroyed, but not through the publisher's fault, the latter may restore the destroyed copies within one year without providing compensation to the author.Termination of ContractArticle 51. Unless agreed upon otherwise, a publishing contract shall be terminated on the date of its expiration or when the run is sold out, or when the last run is sold out if more than one printings have been agreed upon.Cancellation Prior to Expiration of the Contractual TermArticle 52. (1) Unless agreed upon otherwise, the author may cancel the publishing contract unilaterally by written notice whenever that contract was concluded for more than one printing and the run of the last printing was sold out and no subsequent reproduction and distribution of the work was undertaken by the publisher within one year, provided that the author had requested the publisher to do so within the same term. A print run shall be assumed sold-out whenever the number of unsold copies amount to no more than five per cent of the total circulation.(2) In the cases under paragraph 1 above, the author shall not be liable to refund the compensation already received.Publishing at the Expense of the AuthorArticle 53. (1) The author may at his own expense place an order with a publisher for the reproduction and distribution of a given number of copies of his work.(2) An author may conclude an agreement with a publisher to reproduce and distribute copies of a work by assuming part of the expenses and participating in the distribution of the revenues.Contracts on Reproduction and Distribution of PhonogramsArticle 54. (1) (Amended, SG No. 28/2000) Unless provided for otherwise in the contract on reproduction and distribution of the work in the form of phonogram and the author has not granted the management of these rights to a collective management organization, it shall be considered that:1. the user shall make the recording within six months of the date when the author handed over the work in a form permitting its recording, and for reproduction and distribution, within six months after the recording was made;2. the user has been granted the right to reproduce the work in a circulation not exceeding five thousand copies;3. the author shall be entitled to compensation equal to the respective part of 10 per cent of the wholesale price of each piece of the sound medium sold, proportional to the duration of his work versus the total duration of the sound medium;4. the user shall provide to the author five copies of each manufactured version of the sound media free of charge.(2) (Repealed, SG No. 28/2000).(3) (Amended, SG No. 99/2005) The right granted by the author for the recording, reproduction and distribution of his work in the form of phonograms shall not include the right to use the recorded work for public performances, or broadcasting by wireless, or retransmission by cable. The inclusion of such rights shall be agreed upon explicitly by the parties.Section IIIContract on Public Presentation or PerformanceDefinitionArticle 55. With a contract on public presentation the author of a performing arts work shall grant a user the right to present the work, and the user shall present the work and pay compensation to the author.Non-Mandatory RulesArticle 56. Unless provided for otherwise in a contract, it shall be assumed that:1. the author may grant the right to public presentation to other users outside the city in which the user has headquarters;2. the contract shall remain in force for three years;3. the user shall present the work to the public within one year of receiving it;4. (amended, SG No. 28/2000) the author's compensation shall amount to fifteen per cent of the gross revenues of each presentation of the work;5. the user shall report to the author twice a year on the number of public performances and the amount of revenues raised;6. the author may cancel the contract whenever the user has halted the public presentations of the work for a period longer than one year.Contracts on the Use through Wireless, Cableor Other Technical MeansArticle 57. (Amended, SG No. 99/2005) The provisions of items 1, 2, and 3 of Article 56 shall also apply to contracts on broadcasting by wireless or retransmission by cable of performing arts works, as well as of musical or literary works that have not been made available to the public. Unless agreed upon otherwise in the contract it shall be assumed that the author has granted the user the right to a single broadcast of the work.Contract on Public PerformanceArticle 58. (1) (Previous Article 58q supplemented, SG No. 28/2000, amended, SG No. 99/2005) Consent on the public performance, live or recorded, on broadcasting by wireless, or retransmission by cable of musical and literary works which have already been made available to the public, shall be provided in writing by the author or by a duly authorized organization carrying out collective management of copyrights which shall negotiate, collect and pay the compensations due. When the consent is given by a collective management organization, the user shall render to the latter a precise account of the works used and of the authors thereof.(2) (New SG No. 28/2000; Repealed, SG. No. 77/2002)Section IVContract on Publishing in a PeriodicalRight to Use a Work Written Under ContractArticle 59. (1) An author who has written an ordered work may not, without the consent of the publisher, offer that work or parts thereof to other periodicals, for publishing as an individual publication, or for wireless broadcasting prior to its being published by the publisher.(2) Unless agreed upon otherwise, the restrictions under the preceding paragraph shall not apply whenever fifteen days, for newspapers, and three months, for magazines, have elapsed since the turning in of the manuscript and the publisher has failed to publish or to inform the author within those periods of time that he will publish and to point out the number of the publication in which that will be done.Right to Second UseArticle 60. The author may use a work already published in a periodical after the date of publication unless agreed upon otherwise in writing.Return of Materials Offered for PublicationArticle 61. The publishers of periodicals shall return the originals of works of fine art, original documents and illustrations offered for publication, unless agreed upon otherwise in writing.Section VMaking and Using Films and Other Audio-Visual MaterialProprietors of RightsArticle 62. (1) (Supplemented, SG. No. 77/2002) Copyright over films and other audio-visual works shall belong to the director, the author of the screenplay, and the director of photography. In animated films artists shall also enjoy copyrights.(2) The authors of the music, dialogue, the already existing literary work upon which the audio-visual work was made, the costumes, the scenographers, and the authors of all other materials contained in it shall retain copyrights over their individual works.(3) A producer within the meaning of this section shall be the natural or legal person who shall organize the production of the work and provide it's financing.Contracts on Production and UseArticle 63. (1) (Amended and supplemented, SG No. 99/2005) The authors under Article 62 shall conclude with producers written contracts that, unless agreed upon otherwise or provided for otherwise in this Act, shall be deemed to grant producers the exclusive right to reproduce, show publicly, broadcast by wireless, or retransmitted by cable, reproduce and distribute on video media, offer by wireless media or by cable access to an unlimited number of persons thereto or to a part thereof in a manner allowing that access to be achieved from a location and at a time individually chosen thereby, as well as the right to authorize translation, dubbing and subtitling of the work within the country and abroad.(2) The producer shall pay the authors under the preceding article compensation for the rights granted. In this case the provisions of Article 41, paragraph 2 and Article 42, paragraph 2 shall not apply.(3) Whenever any of the authors under Article 62 refuses to complete his part of the film or other audio-visual work, or fails to do so through no fault of his, he shall not prevent the use of the work already completed by him for the completion of the whole project. That shall not prevent him from retaining copyright over the portion of the work he has completed with all ensuing consequences.(4) An audio-visual work shall be considered completed whenever by agreement between the director and producer a final version has been established.(5) Any changes in the final version through addition, elimination or change of elements may only be made with the consent of the persons under paragraph 4.(6) (Amended, SG No. 63/1994) Should a producer become bankrupt, authors under Article 62 shall be entitled to the right to purchase the starting materials of the work at the highest offered price if he wishes so in writing within three days of closing of tender.(7) (Amended, SG. No. 77/2002) In the event that the producer is unable to complete the work or decides to destroy the initial materials with the initial recording or the initial material for the final version, he must offer these materials free of charge to the authors under Article 62, paragraph 1.(8) (New, SG No. 28/2000) Within five years of the date on which the work has been made available to the public, the producer or the persons who have become owners of the initial materials for the final version of the work shall lodge these materials with the National Film Library. This shall apply only to films whose producer is a Bulgarian natural or legal person.Secondary UseArticle 64. (Amended, SG No. 99/2005) The producer may grant to third parties, as long as they assume the obligations under Article 65, the right to broadcast the work by wireless and retransmit by cable, to reproduce it on video media for distribution and public showing. He shall however inform the authors under Article 62, paragraph 1 in writing within one month, unless provided for otherwise by this Act.CompensationArticle 65. (1) (Amended, SG No. 28/2000, supplemented, SG No. 77/2002, SG No. 99/2005) The director, the author of the screenplay, the director of photography and the composer, or artist with animated films, shall be entitled to fair compensation other than the compensation under Article 63 (2) and for each type of use of the film or audio-visual work, while the other authors named in Article 62, shall be eligible for such compensation if that has been specifically agreed upon. Compensations for the different types of use of the work granted by the authors to the producer referred to in Article 63 (1), as well as the manner in which an author desires to receive them in pursuance to Paragraph (2) shall be determined individually for each type of use.(2) Compensations for different types of use of a work shall be provided by the respective users and may, upon the authors' request, be received through the producer or through an organization carrying out collective management of copyrights. In the latter case, the producer shall include such a provision in the contracts concluded on the use of the work.(3) Whenever an already announced work is shown to the public for an admission fee, the compensation shall be proportional to the revenues of the producer.(4) (Supplemented, SG. No. 77/2002, amended, SG No. 99/2005) Irrespective of the compensation under Paragraph (2), the authors under paragraph 1 shall be entitled to a percentage of all revenues of the producer resulting from use of the work.(5) (New, SG No. 99/2005) In case the use of the work takes the form of renting or lending said work.(6) (New, SG No. 99/2005) In case the use of the work takes the form of retransmission of work by cable the provisions of Article 21 (3), (4) and (5) shall apply.Reporting to AuthorsArticle 66. At the request of the persons under Article 62, the producer shall provide to them at least once a year a statement on the revenues collected from each type of use of the work.Use of Parts of FilmsArticle 67. The producer may use parts of the work or individual frames in such volume as is necessary for advertising the film without seeking the consent of the authors and without providing compensation to them. He may use such parts or frames for other purposes only with the consent of the authors under Article 62, paragraph 1 and shall pay them compensation. Other persons may use parts or frames only with the consent of the authors under Article 62, paragraph 1 and shall pay them compensation.Section VIUse of Works of Fine Art, Architecture and PhotographyAssumption of Granted Rights to Public DisplayArticle 68. (1) (Previous article 68, amended, SG No. 28/2000) The transfer of ownership over works of fine art and photographic works or works expressed by a process analogous to photography shall include, unless agreed upon otherwise in writing, transfer of the right to publicly display the said works.(2) (New, SG No. 28/2000) The transfer of the right to use an architectural design shall include, unless agreed upon otherwise in writing, transfer of the right to publicly display the design.Subsequent Use of Architectural DesignsArticle 69. The written consent of the author shall be required for every subsequent use of the architectural design of an already completed building or other facility.Section VIIUse of Computer SoftwareNon-Mandatory RulesArticle 70. Unless agreed upon otherwise it shall be deemed that the person who has lawfully acquired the right to use a computer program may use that program, display it on screen, execute it, transmit it, store it in the memory of his computer, translate it, revise it and effect other changes in it as long as such actions are necessary for attaining the objective for which the right to use that program was acquired, as well as for the elimination of errors.Mandatory RulesArticle 71. The person who has lawfully acquired the right to use a computer program shall not seek the consent of the author and shall not pay additional compensation in order to:1. prepare a back-up copy of the program whenever one is necessary for the respective use for which the program had been acquired;2. observe, study and test the action of the program in order to determine the ideas and principles which may be embodied in any of its elements as long as this is done in the process of loading the software, its display on a screen, its execution, transmission or storage in the computer memory and only if that person is entitled to carry out such actions pursuant to Article 70;3. (supplemented, SG No. 28/2000) translate the programming code from one form into another only if that is absolutely necessary for achieving compatibility of an existing program with other programs and on the condition that the necessary information on how to do that is not provided and that such actions are undertaken only in respect to such parts of the program as are necessary for achieving compatibility. The information thus obtained shall not be used for the creation and distribution of programs, differing insignificantly from the program, with translated programming code, nor for any other actions that may violate copyrights over the software.Management and Control of Software Assets of StateAuthorities and Local GovernmentsArticle 71a. (New, SG. No. 77/2002, repealed, SG No. 99/2005) Part TwoNEIGHBOURING RIGHTS AND OTHER EXTRAORDINARY RIGHTS(Amended, SG. No. 77/2002)Chapter EightGENERAL PROVISIONSProprietors and Objects of Neighbouring RightsArticle 72. (Amended, SG No. 28/2000) The following shall have rights, neighbouring to the copyright, over their works:1. performing artists over their performances;2. producers of phonograms over their recordings;3. producers of the initial recording of a film or another audio-visual work over the original copy, as well as over the copies produced as a result of this recording;4. radio and television organizations over their programs.Collision with CopyrightArticle 72a. (New, SG. No. 28/2000) The neighbouring rights may not be exercised in a manner which might result in infringing upon or restricting copyrights.Assumption of Holding Neighbouring RightsArticle 72b. (New, SG No. 99/2005) Until proven otherwise, the bearer of the right referred to in Article 72 shall be the person whose name, business name or other identification mark is indicated or mentioned in the customary manner thereof on the respective recording, copies or samples thereof and/or their packaging, or else in the course of commencement of the programme.Exercising Neighbouring Rights through Collective ManagementOrganizationsArticle 73. (Supplemented, SG. No. 28/2000) The economic rights of performing artists, of producers of phonograms, of film producers, and of radio and television organizations may be exercised by duly empowered organizations conducting collective management of rights pursuant to the provisions of Article 40.Chapter NineRIGHTS OF PERFORMING ARTISTSProprietors of Rights(Title amended, SG No. 28/2000)Article 74. (Amended and supplemented, SG. No. 28/2000) A performing artist is a person who presents, sings, plays, dances, recites, acts, directs, conducts, comments upon, dubs into another language, or performs in another manner a work, circus or variety show number, one in a puppet show or a folkloric work.Non-Economic RightsArticle 75. (1) The performing artist shall enjoy the following rights:1. to demand that his name, pseudonym or stage name are referred to or announced in the customary manner during every live performance or use of a recording of that performance in any manner whatsoever;2. to demand the preservation of the entirety and integrity of a recorded performance at the time of its reproduction or use in any other manner.(2) The right under item 1 of the preceding paragraph shall be inalienable. Waiving the requirement under item 2 may only be explicit and in writing.Economic RightsArticle 76. (1) A performing artist shall have the exclusive right to permit for compensation:1. (amended, SG No. 99/2005) the broadcasting of a performance of his by wireless, transmission or retransmission by cable, as well as a sound or video recording of the performance, the reproduction of the recording on audio or video media and their distribution;2. (amended, SG No. 99/2005) public performance, broadcasting by wireless, transmission or retransmission by cable of such recordings.3. (new, SG. No. 28/2000, amended, SG No. 99/2005) offering by wireless or by cable of access for an unlimited number of persons to his recorded performance or part thereof in a manner permitting the access to occur from any place and at any time individually chosen by each one of these persons.4. (new, SG. No. 77/2002) imports and exports of copies of the performance in commercial quantities, regardless of whether the copies had been produced legally or in violation of rights under item 1.(2) Performing artists shall grant the rights under the preceding paragraph by means of a written contract. Compensation may be negotiated as a percentage of the revenues, one-time payment or in another manner.(3) Unless agreed upon otherwise in the contract between the performing artist and the producer of sound recordings, the former shall be entitled to permit other persons to record and distribute his performances as well. Any agreement limiting the performing artist's right to grant such permission shall be valid for a maximum of five years.(4) (Repealed, SG. No. 28/2000).Secondary UseArticle 77. (Amended, SG No. 99/2005) The amount of compensation of the performing artists and producers of sound recordings for broadcasting by wireless, transmission and retransmission by cable or for public performance through audio or other equipment for works which have already been made available to the public, shall be determined pursuant to 5 of the Additional Provisions, and half of the amount shall be paid to the performing artists, and the other half to the producers.Participation in FilmingArticle 78. (1) (Supplemented, SG. No. 28/2000, amended, SG No. 99/2005) Unless agreed upon otherwise in the performance contract, it shall be deemed that the performing artist who has participated in the making of a film or other audio-visual work has thereby granted the producer of the work the right to public showing of that recorded work, as well as the right to broadcast it by wireless, transmission and retransmission by cable, and to reproduce and distribute it on video media.(2) A role played by a performing artist in a film or another audio-visual product may carry the voice of another person only with the consent of the performing artist who has played the particle(3) (New, SG. No. 28/2000) The contracts under paragraph 1 concluded with artists playing the leading parts provide for an additional compensation as a percentage of every gross income of the producer resulting from the use of the work. Such compensations shall be paid to the artists, as agreed, either by the producer or by the respective users. Whenever the compensations are paid by the respective users, the producer shall make the relevant provisions in the contracts he concludes for using the work. If no compensations have been negotiated, they shall be determined on the basis of an agreement between the artists' associations, on one hand, and the producers or their associations, on the other.(4) (New, SG. No. 28/2000) The artists playing the leading parts under paragraph 3 shall be, until proof provided to the contrary, the persons whose names appear in the titles of the film in a manner which indicates unambiguously that they are believed to be so. Whenever such indications are missing, possible explicit stipulations may be included in the contract between the producer and the performing-artist; if there are no such stipulations or the contract has not been presented, the explicit opinion of the author of the screenplay shall be taken into account, which shall be presented in writing at any time.(5) (New, SG. No. 77/2002) In the event that the TV organization is also the producer of a film or audio-visual work, the persons under paragraph 3 shall be entitled to additional compensation every time the work is used by this organization, while the amount of such compensation shall be determined under sentences two and four of paragraph 3.(6) (New, SG. No. 77/2002) Individuals who perform roles in audio-visual works that are designed for advertising purposes shall be entitled, for the period during which this work is broadcast, to supplementary compensation in the form of a percentage of the profit of the advertiser from the advertised activity, product, or service in this country. Such compensation shall be negotiated in the contract between the producer and the advertiser. If there is no direct contractual relationship between the producer and the advertiser, the producer shall provide for such compensation in his contract with the person who ordered the work.(7) (New, SG No. 99/2005) Where the use referred to in Paragraph (3) takes the form of renting or lending copies the provisions of Article 22a shall apply.Permission from Collective PerformersArticle 79. The participants in collective performances, such as choirs, orchestras, ensembles and other artistic groups, shall empower in writing one person to grant the permissions under this chapter regarding the use of their performances. The soloists and conductor, as well as the director of the staged performance shall provide permissions individually.Announcing Names with Collective PerformancesArticle 80. For collective performances the name of the ensemble or group as a whole shall be indicated or announced in the customary manner; the names of the soloists, conductor and director of the staged performance shall be announced individually, unless it is agreed upon otherwise with the said persons.Performance under an Employment RelationshipArticle 81. The permission under Article 76, paragraph 1 to use a performance done under an employment relationship shall be granted by the employer unless agreed upon otherwise with the performing artist.DurationArticle 82. The rights of the performing artists shall remain in force for fifty years. This term shall commence on January 1 of the year following the year in which the recording of the performance was published, or whenever the recording has not been published or the performance has not been recorded, on January 1 of the year following the year in which the first performance was held.Protection of Names of Artistic GroupsArticle 83. (1) (Amended and supplemented, SG No. 28/2000, SG. No. 28/2005) The names of artistic groups shall be registered by the Ministry of Culture in a manner established by the Council of Ministers. Charges for lodging registration applications, for register inquiry services, and for issuing documents with information recorded in the register shall be collected at a rate established by a tariff adopted by the Council of Ministers.(2) (New, SG. No. 28/2000) The names of artistic groups shall be registered in the Cyrillic alphabet alone. If requested by the applicant, the registration may also contain the same name in another alphabet.(3) (Renumbered from Paragraph 2, SG No 28/2000) The name registered under paragraph 1 shall not be used by other groups.(4) (Renumbered from Paragraph 3, SG No 28/2000) In the event that another group has used the same or a similar name prior to the registration, it may seek the voiding of that registration.(5) (Renumbered from Paragraph 4, SG No 28/2000) Disputes over similarities of names, or over which group was the first to use a name, shall be settled by the courts.(6) (Renumbered from Paragraph 5, SG No 28/2000) The right to a name under paragraph 1 shall be protected for ten years after the artistic group has discontinued its operation. This term shall commence from January 1 of the year following the one in which operation was discontinued.Application by AnalogyArticle 84. (Amended and supplemented, SG. No. 28/2000, amended, SG. No. 77/2002, SG No. 99/2005) The provisions of Article 18 (3), Articles 18a, 19, 21, 22, 22a, 23, Article 24, Items 1, 6, 8, 12 and 14 of Paragraph (1), Article 25, Item 2 of Paragraph (1), Articles 25a, 26, 32, 33, 34, 36, 37 and Article 58 (1) shall be applied respectively and regarding the rights of the performing artists, whereas the provisions of Article 66 shall apply to the rights of the persons described in Article 78 (3).Chapter TenRIGHTS OF PRODUCERS OF PHONOGRAMSProprietors of RightsArticle 85. The producer of a phonogram shall be the natural or legal person who has organized the first recording and has provided its financing.Economic RightsArticle 86. (1) The producer shall have the exclusive right to grant permission against compensation for:1. the reproduction and distribution of the phonogram;2. (supplemented, SG. No. 77/2002) the import and export of copies of the phonogram in commercial quantity, irrespective of whether they have been manufactured legally or in violation of the rights under item 1;3. (amended and supplemented, SG No. 99/2005) public performance and broadcasting by wireless and transmission and retransmission of the recording thereof by cable.4. (new, SG. No. 28/2000) offering by wireless, cable or other technical means of access for an unlimited number of persons to the recording or part thereof in a manner permitting the access to occur from any place and at any time individually chosen by each one of these persons.(2) The producer may grant under a contract some of his rights under paragraph 1 to other persons, including the author and the performers of the recorded work.Non-Economic RightsArticle 87. (1) The producer may require that his name is featured in the customary manner on the sound media and their jackets whenever recordings made by him are reproduced and distributed.(2) (Repealed, SG No. 99/2005). Secondary UseArticle 88. (Amended, SG No. 99/2005) The compensation to producers of phonograms, which have already been made available to the public for broadcasting by wireless, transmission or retransmission by cable, or public broadcasting by sound equipment or by other means, shall be determined and paid in the manner described in Article 77.DurationArticle 89. (Amended, SG. No. 77/2002) The rights of producers under this chapter shall be in force for fifty years. This term shall commence on January 1 of the year following the year in which the phonogram was made. If the phonogram was published legally during this period, the term shall commence on January 1 of the year following the year of publication. If the phonogram has not been published legally, but has been announced legally by other means during this period, the term shall commence on January 1 of the year following the one in which this announcement was made.Application by AnalogyArticle 90. (Amended and supplemented, SG. No. 28/2000, amended, SG. No. 77/2002, SG No. 99/2005) The provisions of Article 8, Article 18 (3), Articles 18a, 19, 21, 22, 22a, 23, Article 24, Items 1, 3, 6, 8, 11, 12, 13 and 14 of Paragraph (1), Article 25, Item 2 of Paragraph (1), Articles 25a, 26, 32, 33, 34 and 36 shall apply respectively also regarding producers of phonograms.Chapter Ten A(New, SG. No. 28/2000)RIGHTS OF FILM PRODUCERSContent of the RightsArticle 90a. (1) The producer of the initial recording of a film or another audio-visual work shall have, with respect to the original copy of the film and the copies thereof produced as a result of this recording, the exclusive right to grant permission against compensation for:1. their duplication;2. their screening before the public;3. their broadcasting by wireless;4. (amended, SG No. 99/2005) their transmission or retransmission by cable;5. their reproduction;6. their distribution;7. their translation, dubbing into another language or sub-titling;8. (amended, SG No. 99/2005) offering by wireless or by cable of access for an unlimited number of persons to the film or part thereof in a manner permitting the access to occur from any place and at any time individually chosen by each one of these persons.9. (new, SG. No. 77/2002) imports and exports of the film in commercial quantities, regardless of whether these were manufactured legally or in violation of the right under item 1 or item 5.(2) The producer shall be entitled to require that the name or the title of the film be indicated in the usual manner every time the film has been used.DurationArticle 90b. The rights of producers under this Chapter shall be protected for fifty years. This term shall begin as of January 1 of the year, following the year in which the film has been made available to the public; whenever the film has not been made available to the public, the term shall begin as of January 1 of the year, following the year in which the film has been made.Application by AnalogyArticle 90c. (Amended, SG. No. 77/2002, SG No. 99/2005) The provisions of Article 8, Article 18 (3), Article 18a, 19, 21, 22, 22a, 23, Article 24, Items 1, 2, 3, 6, 8, 11, 12, 13 and 14 of Paragraph (1). Article 25, Item 2 of Paragraph (1), Articles 25a, 26, 32, 33, 34 and 36 shall apply to film producers as well.Chapter ElevenRIGHTS OF RADIO AND TELEVISION ORGANIZATIONSContent of RightsArticle 91. (1) (Amended, SG. No. 28/2000, SG. No. 77/2002) The radio or television organization which has carried out the initial broadcast or transmission of its own program shall have the exclusive right to grant permission against compensation for:1. (amended, SG No. 99/2005) rebroadcasting of the program by wireless or re-transmitting it by cable;2. recording, reproduction and distribution of the recordings of the program;3. (amended, SG No. 99/2005) offering by wireless or by cable of access for an unlimited number of persons to the program or part thereof in a manner permitting the access to occur from any place and at any time individually chosen by each one of these persons.(2) The provision of the preceding paragraph shall also apply whenever a program sent by a radio or television organization via signal to a communications satellite, is rebroadcast, re-transmitted, recorded, reproduced or distributed by other persons.(3) (New, SG No. 28/2000) Whenever the radio or television organization under paragraph 1 or a duly authorized person thereby restrict the number of persons receiving the program by encoding the signal which contains it, the consent shall be considered given only if the decoding device has been provided by the broadcasting organization, or with its consent.(4) (New, SG No. 28/2000) At the time of every use of the program under paragraph 1 the user-organization shall announce in a suitable manner the name of the organization which has first broadcast or transmitted the program.(5) (New, SG. No. 77/2002, amended, SG No. 99/2005) In case a radio or TV organization permits the simultaneous in its entirety and unchanged form transmission of its programme through the cabel network of another organisation, the permission given by the radio or television organisation shall expressly include the rights for broadcasting and transmission of the works included in the programme in case these rights have been duly ceded thereto.DurationArticle 92. The rights of radio and television organizations under this chapter shall remain in force for fifty years. This term shall commence as of January 1 of the year following the year in which the program was broadcast or transmitted for the first time.Application by AnalogyArticle 93. (Amended, SG. No. 77/2002, SG No. 99/2005) The provisions of Article 8, Article 18 (3), Article 19, Article 21 (1), Articles 22 and 23, Article 24, Items 1, 2, 3, 8, 12, 13 and 14 of Paragraph (1),Articles 25a and 36 shall also apply to radio and television organizations.Ascertainment of Production and Distribution RightArticle 93a. (Repealed SG. No. 28/2000).Chapter Eleven A(New, SG. No. 77/2002)RIGHTS OF PRODUCERS OF DATABASESRight HolderArticle 93b. (1) The producer of the database shall be the holder of the right.(2) The producer of a database shall be a natural or legal person who has initiated and borne the risk of investing in the collection, verification, and use of the content of a database, if such an investment is substantial in terms of quality or quantity.Content of RightArticle 93c. (1) The producer of a database may ban:1. deriving through permanent or temporary transfer of the content of the database or any of its parts that may be considered substantial in terms of quantity or quality on some other carrier in any manner and form whatsoever;2. second use of the content of a database or part thereof that is considered substantial in terms of quality or quantity by disclosure of any kind, including by the distribution of copies, renting, or transferring by digital means.(2) Borrowing shall not be regarded as deriving or second use under paragraph 1.(3) The right under paragraph 1 may be expropriated or transferred to other persons.(4) The producer of a database may ban any actions under paragraph 1 regarding also unsubstantial parts of the content where such actions are undertaken for a second time and in systematical manner that contradicts normal use or may violate the legitimate interests of the producer.Termination of RightArticle 93d. (1) (Amended and supplemented, SG No. 99/2005, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The first sale on the territory of the European Union member-states of a material copy of a database by the holder of the right under Article 93c or with his consent shall result in termination of his right to control subsequent sales of copies of that database on that territory.(2) When a database is transferred in digital form, including via a communication network, the right under Article 93c shall not be terminated with regard to material copies of the database made by the recipient with the consent of the holder of this right.Conflict With Other RightsArticle 93e. (1) The right under Article 93c arises irrespective of whether the database or parts of its content enjoy copyright protection or similar rights.(2) The right under Article 93a shall not be exercised in a manner that could result in violation or restriction of copyright or other similar rights on the content of the database.Rights and Obligations of Legal UsersArticle 93f. (1) (New, SG No. 99/2005) The person that has legally acquired the right to use a database or a copy thereof may freely engage with it in the actions referred to in Article 18, Items 1, 2, 3, 4, 5, 7 and 8 of Paragraph (1), as well as in actions related to the results possibly received from the translation, revision, processing or any other changes thereto whatsoever that person has made when this is necessary for access to the database content and its normal usage. Where that person has the right to use only part of the database this provision shall apply to that part alone.(2) (Renumbered from Paragraph 1, SG No. 99/2005) When a database has been disclosed in any manner whatsoever, its producer shall not be entitled to preventing the deriving or second use of unsubstantial portions of its content for any purposes whatsoever by a person who had obtained access to the database by legal means. If the legal user enjoys the right to derive and use a second time only part of the database, this provision shall apply only to that particle(3) (Renumbered from Paragraph 2, SG No. 99/2005) The legal user of a database that had been disclosed in any manner whatsoever may not undertake any action that would prevent normal use of the database or harm the legitimate interests of its producer.(4) (Renumbered from Paragraph 3, SG No. 99/2005) The legal user of a database that had been disclosed in any manner whatsoever may not harm the rights of the copyright holder or any similar right over the works or objects contained in such works.(5) (New, SG No. 99/2005) Any agreement in contradiction to the provisions of Paragraphs (1), (2), (3) and (4) shall be null and void.ExceptionsArticle 93g. The legal user of a database that had been disclosed in any manner whatsoever may derive and use for a second time under Article 93c a substantial portion or the content of this database without the permission of its producer in the following cases:1. deriving content of a database for personal use when the database is not in electronic format;2. deriving content for non-commercial purposes for illustrating training or research in a volume that is justified by the purpose and if reference is made to the source;3. deriving and second use for the purposes of national security or in administrative and legal proceedings.DurationArticle 93h. (1) The rights under Article 93c shall be in effect for 15 years. This term shall commence on January 1 of the year that follows the year in which the database had been completed.(2) Is the database had been disclosed in any manner whatsoever prior to the expiration of the term under paragraph 1, the term shall commence on January 1 of the year that follows the year of the disclosure.(3) Every new substantial investment in the database that leads to a significant change in its content shall mark the start of a new independent term of protection regarding the part that had been the result of this investment.Part ThreePROTECTION OF COPYRIGHT AND NEIGHBOURING RIGHTSChapter TwelvePROTECTION BY CIVIL LAWAction for CompensationArticle 94. (Amended and supplemented, SG No. 28/2000, amended, SG No. 72/2002, SG No. 99/2005) (1) Whoever infringes a copyright or a neighbouring right, or another right under the present Act, shall owe compensation for the damages incurred to the holder of the right or the person to whom that holder has given exclusive user rights.(2) Compensation shall be due for all damages directly and immediately resulting from the infringement.(3) At determining the amount of the compensation the court shall also take into consideration all circumstances related to the infringement, loss of earning and non-pecuniary damages, as well as the profits made by the infringer as a result of the infringement.(4) The court shall determine a fair compensation that shall have a deterrent and cautionary effect on the infringer and the public at large.Particular Cases of Compensation ClaimsArticle 94a. (New, SG No. 99/2005) (1) Where the claim has been established on grounds but there is insufficient data regarding its extent the claimant may claim as compensation:1. from BGN 500 to BGN 100,000, the concrete amount being determined at the discretion of the court under the conditions referred to in Article 94 (3) and (4), or2. the equivalent of the object of the infringement at retail prices of legally reproduced copies.(2) The revenue received as a result of the infringement shall also be taken into consideration at determining the compensation referred to in Paragraph (1).Other ActionsArticle 95. (Amended and supplemented, SG. No. 28/2000, amended, SG No. 77/2002) (1) (Previous Article 95, SG No. 99/2005) Whenever a work or the objects under Article 72 databases under Chapter Eleven-a are used in violation of the provisions of this Act, the proprietor of the copyright or the person to whom the user right has been exclusively granted may bring an action before the court for:1. (new, SG No. 99/2005) establishing the fact of the infringement;2. (amended, SG. No. 77/2002, renumbered from Item 1, SG No. 99/2005) stopping the illegitimate use or ban on the activity that constitutes illegal use;3. (supplemented, SG. No. 77/2002, renumbered from Item 2, SG No. 99/2005) seizing and destroying illegitimately produced copies of the work, objects under Article 72 and databases under Chapter Eleven-a, including negatives, master copies, printing forms and others used for the purposes of copying;4. (supplemented, SG. No. 28/2000, renumbered from Item 3, SG No. 99/2005) seizing and putting out of operation the copying, decoding and reproducing equipment used exclusively for committing violations;5. (amended, SG. No. 77/2002, renumbered from Item 4 and amended, SG No. 99/2005) receiving the objects under Item 3.6. (new, SG No. 99/2005) publication at the cost of the infringer of the judgement of the court in two dailies and at a time determined by the court of a television organisation with national coverage.(2) (New, SG No. 99/2005) Seizure in the sense referred to in Items 3 and 4 of Paragraph (1) may be requested both as regards object located at a certain location and as regards objects in the retail network as a whole.Particular ClaimantsArticle 95a. (New, SG No. 99/2005) (1) In addition to the holders of the respective right and the persons to whom they have granted exclusive rights of use thereof, the following shall also be entitled to a claim as referred to in Articles 94, 94a and 95:1. the organizations for collective management of rights referred to in Article 40 (7), and2. the professional defence organizations of holders of rights.(2) (Amended, SG No. 59/2007) The organizations referred to in Paragraph (1) may file claims and request measures only on the occasion of rights given to them for management, respectively - defence. In these cases the provision of Article 26 (4) of the Code of Civil Procedure shall not apply.LiabilityArticle 95b. (New, SG No. 99/2005) Legal persons and sole traders shall bear civil liability for the violation of rights under this Act culpably perpetrated by the persons representing them, respectively by their employees or persons appointed thereby. In these cases the parties shall be considered guilty until otherwise proven.Provision of evidence on claims and secured claim proceduresArticle 95c. (New, SG No. 99/2005) (1) Where a claimant has presented evidence in support of claims thereof but has not quoted other evidence of significance for the resolution of the case, which is under the control of the defendant, the court may, at the request of the claimant, obligate the defendant to present this evidence.(2) Under the conditions of Paragraph (1) the court may, at the request of the claimant, obligate the defendant to provide opportunity for acquaintance with bank, financial and commercial documents under the control of said defendant.(3) The claimant shall be obligated not to publicise the information contained in the documents referred to in Paragraph (2).(4) Presentation of evidence of single or one-time unauthorized use of a subject protected under this Act shall be accepted as sufficient grounds for applying the provisions of Paragraphs (1) and (2).(5) The existence of circumstances related to a violation claimed may also be established with the presentation of evidence of single or one-time unauthorized use of a subject protected under this Act.Request of Information Concerning Origin and Distribution Networks onOccasion of InfringementArticle 95d. (New, SG No. 99/2005) (1) The court may obligate the defendant or a third party to present information regarding the circumstances, which have a significance for the resolution of the case.(2) In the sense referred to in Paragraph (1), a third party shall be any person that:1. holds goods - subject of infringement, or2. provides services leading to infringement, or3. resorts to services constituting an infringement, or4. has been quoted by a person under Items 1- 3 as a participant in the production or distribution of these goods or services.(3) The information referred to in Paragraph (2) may include:1. the names and addresses of the producers, distributors, suppliers and other persons who were previously holders of the goods or services, as well as of the presumed wholesale or retail distributors;2. information about the produced, manufactured, supplied, received or ordered quantities, as well as the funds received for the goods and services in question.(4) Paragraph (1) shall not apply when enforcement thereof may lead to infringement of a provision of another law.(5) The provisions of Paragraphs (1) - (3) shall apply only to action perpetrated for direct or indirect economic or commercial benefit.Competent CourtsArticle 96. Disputes arising out of the application of this Act shall be settled by the district courts.Safeguard Measures(New SG. No. 28/2000)Article 96a. (1) (Amended, SG. No. 77/2002, SG No. 99/2005) When a copyright or a neighbouring right or right under Article 93c has been violated or when there are sufficient evidence to believe that such violation will be committed or some evidence will be lost, destroyed or concealed, the court, upon request by the right-holder or by the person to whom the exclusive user right has been granted, may, without informing the party, against which the secured claim is requested, permit some of the following measures:1. (amended, SG. No. 77/2002) interdict the performance of activity which is claimed to constitute or to be going to constitute an illegal use of a work or an object under Article 72 or database under Chapter Eleven-a;2. (amended, SG. No. 77/2002, amended and supplemented, SG No. 99/2005) seize the copies of the work or the objects under Article 72 or database under Chapter Eleven-a, which are claimed to have been illegally reproduced, negatives, master forms, stereotype plates and others designed for reproduction of the copies, as well as other evidence of significance for proving the infringement;3. seize out of use or interdict the use of machines which are claimed to have been used or will be used to commit violations;4. seal the premises in which it is claimed that violations are being committed or will be committed;(2) (Amended, SG No. 99/2005, SG No. 59/2007) The permission, imposition and revocation of safeguard measures shall be done according to the procedures stipulated in Articles 389 through 403 of the Code of Procedure Code , with the exception of Article 398, paragraph 2 , sentence one, and unless this Act provides otherwise.(3) The safeguard measure "interdiction of performance of the activity" shall be imposed on the grounds of a law-court notification.(4) (Amended, SG No. 43/2005, SG No. 99/2005) The secured claims referred to in Items 2, 3 and 4 of Paragraph (1) shall be imposed by a state or private law enforcement agent who shall effect the actions simultaneously with serving the notice of admission of claim to the respondent within three days of the submission of claimant appeal to the law enforcement agent. The secured claim admitted to prevent a forthcoming infringement shall be imposed for a term in consideration with its objective. The confiscated property shall be submitted by list for safeguarding to claiman who may only use it as evidence.(5) The plaintiff or a representative thereof may be present and co-operate when the safeguard measures are being imposed.(6) (Repealed, SG No. 43/2005).(7) If it is established that an imposed safeguard measure has been requested without any ground, the aggrieved party may demand from the person who has requested the measure to pay for the damages inflicted thereby.(8) (New, SG No. 99/2005) The secured claim referred to in Item 1 of Paragraph (1) may also be imposed as regards third persons for which there is sufficient evidence that they are instrumental for the effecting of the activity, which is claimed to constitute or that will constitute unauthorised use.(9) (New, SG No. 99/2005) The holder of the respective right or the person to whom said holder has given exclusive right of use shall be obligated not to publicise information that has become known to him at or on the occasion of the measures under Paragraph (1).Chapter Twelve A(New, SG. No. 28/2000)FRONTIER MEASURESRationale and Field of ApplicationArticle 96b. (1) (Amended, SG. No. 77/2002) A copyright-holder or proprietor of a neighbouring right or right under Article 93c, as well as a person to whom the exclusive user right has been granted may demand from the customs authorities to impound any goods transported across the state border of the Republic of Bulgaria, for which there are grounds to believe that they violate the rights protected by this Act. To cover impounding expenses, charges shall be due at a rate established by a tariff adopted by the Council of Ministers.(2) When the place of residence or the registered office of the claimant are outside this country, he shall specify a judicial address within the territory of the Republic of Bulgaria.(3) The provisions of this Chapter shall also apply to temporary imports and exports.(4) (Amended, SG No. 99/2005) Goods of non-commercial character, transported as part of the luggage of passengers, shall not be impounded providing these are in a quantity set down for duty-free import or export.Impounding ProcedureArticle 96c. (New SG No. 28/2000) (1) Impounding shall be effected on the basis of a claim in writing lodged by a person under Article 96b, paragraph 1, which claim shall contain proof of the rights of the claimant, as well as grounds to believe that these rights have been violated.(2) (Amended, SG No. 99/2005) After establishing the existence of the circumstances under Article 96b (1), the customs authorities shall impound the goods.(3) The customs authorities shall notify without delay the claimant, the consignor and the consignee about impounding of the goods. The same persons are entitled to inspect the impounded goods and to receive information about them.(4) (Amended, SG No. 99/2005) If within ten working days of the date of being notified under paragraph 3 about the impounding of goods, the claimant does not present any proof that legal proceedings have been initiated by the relevant court for resolving the dispute in substance or that a safeguard measure has been permitted, the customs authorities shall release the impounded goods, provided that all requirements for standard import or export have been satisfied.(5) (Amended, SG No. 99/2005) The competent authorities before whom the legal procedure under paragraph 4 has been initiated shall decide upon appeal by the interested party whether the impounding measure should be confirmed, modified, or repealed.(6) (New, SG No. 99/2005, amended, SG No. 30/2006) Refusal of the customs authorities to comply with the appeal for impounding of the goods shall be liable to appeal in pursuance to the Administrative Procedure Code. (7) (Renumbered from Paragraph (6), SG No. 99/2005) Whenever after the request for impounding no procedure under paragraph 4 is initiated or it turns out that the request has been groundless, the aggrieved party shall be entitled to indemnification.Customs Authorities Actions ex officioArticle 96d. (New SG No. 28/2000) (1) The customs authorities may on their own initiative or upon request by another government agency impound goods about which they have grounds to believe that they violate the rights protected by this Act.(2) In such cases the customs authorities shall inform without delay the persons under Article 96b, paragraph 1, the consignor and the consignee and shall provide them with the opportunity to inspect the impounded goods. The customs authorities may demand from the right-holder or the proprietor of neighbouring rights any information that may needed for an expertise.(3) (Amended, SG No. 30/2006) The decision under paragraph 1 may be appealed according to the procedure established by the Administrative Procedure Code. (4) If within 10 working days of the day on which the goods have been impounded no procedure has been initiated by the relevant court for resolving the dispute in substance or no ruling has been entered by the court on permitting a safeguard measure, the customs authorities shall release the impounded goods, provided that all requirements for standard import and export have been satisfied.(5) The customs authorities shall bear no responsibility for the actions they have undertaken in good faith to impound the goods.Additional RegulationArticle 96e. (New SG No. 28/2000) (1) The Council of Ministers shall adopt a regulation on the implementation of this Chapter.Chapter ThirteenPENAL ADMINISTRATIVE PROVISIONSPenaltiesArticle 97. (1) (Amended, SG. No. 10/1998, supplemented, SG No. 28/2000) Whoever commits the following in violation of this Act:1. (amended SG. No. 28/2000, amended and supplemented, SG No. 99/2005) reproduces or distributes video media with reproductions thereon of films or other audio-visual works, performances, recordings of films or other audio-visual works;2. (amended SG. No. 28/2000, amended and supplemented, SG No. 99/2005) reproduces or distributes audio media with reproductions thereon of works, performances or audio recordings;3. organizes in any manner whatsoever public showings of films or other audio-visual works;4. (amended SG. No. 28/2000) offers sound or video recording services to third parties consisting of the preparation of single copies of works or other objects protected by this Act;5. organizes live or recorded public performance or presentation of a work;6. (amended, SG No. 99/2005) broadcasts by wireless, transmits or retransmits by cable works, performances, audio recordings, recordings of films or other audio-visual works or radio or television programmes;7. (amended SG. No. 28/2000, supplemented, SG No. 99/2005) publishes, reproduces or distributes already published works;8. (amended SG. No. 28/2000) owns a computer program knowing or having grounds to suppose that this is illegal;9. (new SG. No. 28/2000, amended, SG No. 99/2005) reproduces, stores in computer memory, distributes or uses in another manner a computer program;10. (new SG. No. 28/2000) reproduces or distributes works of applied arts, design and crafts, photographic works or works which have been made in a manner similar to that of photography;11. (new SG. No. 28/2000, amended, SG. No. 77/2002) uses illegally a work under Article 3, paragraph 1, items 6 and 8;12. (new, SG No. 99/2005) saves in digital form on an electronic medium films or other audio-visual works, musical works, performances, audio recordings, recordings of films or other audio-visual works;13. (new, SG No. 99/2005) offers to an unlimited number of persons by wireless means or by cable access to work, the subject referred to in Article 72 or a part thereof, allowing that access to be effected from a location and at a time individually chosen by each person;14. (new SG. No. 28/2000, renumbered from Item 12, SG No. 99/2005) hinders the imposition of a safeguard measure under Article 96a;15. (new, SG. No. 77/2002, renumbered from Item 13 and amended, SG No. 99/2005) fails to meet obligations under Article 20a (6), Article 26 (2) and (8), Article 95c (3) or under Article 96a (9);16. (new, SG. No. 77/2002, renumbered from Item 14, SG No. 99/2005) violates a ban under Article 93c;(supplemented, SG No. 77/2002, amended, SG No. 99/2005) shall be liable to a fine or a pecuniary sanction from BGN three hundred to BGN three thousand, unless the violation is punishable by a more severe penalty and the object of the violation, regardless of whose property it may be, shall be seized in favour of the State and shall be delivered to be destroyed by the bodies of the Ministry of the Interior.(2) (Amended, SG. No. 10/1998, supplemented, SG. Nos. 28/2000, 77/2002) A second and subsequent violation under paragraph 1 committed within one year of the imposition of the previous penalty, shall be punished by a fine or a pecuniary sanction from BGN one thousand to BGN five thousand and the object of the violation, regardless of whose property it may be, shall be seized in favour of the state and shall be delivered to be destroyed by the bodies of the Ministry of the Interior.(3) In the event of systematic violations the facility where these violations have been committed, such as a store, studio, establishment, cinema, theatre, company principal office, etc. shall be closed for three to six months.(4) (Amended, SG. No. 10/1998, SG No. 99/2005) Organizations conducting collective management of rights under this Act which act in violation of Article 40, paragraph 4 shall be fined by BGN five hundred.(5) (New SG. No. 28/2000) The sanctions under paragraph 1 or 2 shall be imposed on any person who produces, distributes, advertises or imports, as well as possesses for commercial purposes a decoding device which may provide access to an encoded signal for persons who are outside the audiences specified by the broadcasting organization.(6) (New SG. No. 28/2000, amended and supplemented, SG. No. 77/2002, supplemented, SG No. 99/2005) The sanctions under paragraph 1 or 2 shall be imposed on any person who intentionally removes, damages, destroys or puts out of order, or in any other way circumnavigates, without being entitled to do so, any technical means for protection used by right-holders whose rights are protected by this Act and is aware or is reasonably expected to be aware that these means are expressly designed for this purpose.(7) (New, SG No. 77/2002, amended, SG No. 99/2005) The sanctions referred to in Paragraph (1) or (2) shall also be imposed on a person involved in the manufacture, importation, distribution, sale, rental, offer for sale, advertisement with a view to sale or rental, or that holds for commercial ends devices, products or components, or that provides services which:1. are offered or advertised as means of circumnavigation of technical means of protection2. have only limited commercial purpose or application different from that to circumnavigate technical means of protection, or3. are principally intended, manufactured, adapted or used to make possible or to facilitate circumnavigation of technical means of protection.(8) (New SG. No. 28/2000) The sanctions under paragraph 1 or 2 shall also be imposed on any person who, without being entitled to do so and being aware or having the grounds to suppose that this act is going to cause permit, facilitate or conceal the violation of a right protected by this Act:1. removes or modifies information presented in an electronic form about the regime of rights over an object of copyright or a neighbouring right.2. (amended, SG No. 99/2005) distributes, including imports for the purposes of distribution, performs publicly, broadcasts by wireless, transmits or retransmits by cable an object of copyright or a neighbouring right, offers access to an unlimited number of persons to such an object in a manner permitting the access to occur form a place and at a time individually chosen by each one of these persons, knowing that the information presented in an electronic form about the regime of rights over this object has been removed or modified without any right to do so.(9) (New, SG No. 28/2000, renumbered from Paragraph 8, SG No 77/2002, amended, SG No. 99/2005) Information about the regime of rights under paragraph 8 shall be the information which makes it possible to identify the object of a copyright or a neighbouring right, the right-holder, as well as the information about the conditions for using such an object, including any number or code leading to such information provided that any of these elements of information is present on the copies of the object or is shown when the objects is made available to the public.Establishment of Infringements and Authorisation of OfficialsArticle 98 (Amended and supplemented, SG No. 28/2000, amended, SG No. 28/2005, SG No. 99/2005) (1) The infringements referred to in Article 97 shall be established by a memorandum compiled by officials determined by an order of the Minister responsible for culture following an investigation with the cooperation of the Interior Ministry authorities.(2) The official referred to in Paragraph (1) shall be entitled to:1. require access to the sites liable to control and to conduct investigations;2. require the necessary documents in relation to the investigations conducted;3. undertake measures for the provision of evidence by impounding permanent material media containing object protected by the law and related to establishment of the infringement.(3) The officials referred to in Paragraph (1) shall be obligated to:1. record precisely the facts upon the investigation effected in the memorandum ascertaining the infringement;2. keep official and commercial secrets that may come to their knowledge in relation to the investigations conducted;3. not publicise data from the investigations;4. use the information from the investigations only for the ends of the procedure on the infringement.Memorandum on ImpoundmentArticle 98a. (New, SG No. 99/2005) (1) Permanent material media containing objects protected by the law and related to the infringement shall be impounded with a memorandum by the officials referred to in Article 98 (1).(2) The memorandum referred to in Paragraph (1) shall state: the date and location of action; the time when action commenced and ended; the persons who participated; the ascertained facts and circumstances; the requests, notes and objections made, if any; the evidence collected - number, type of media, as well as other data.(3) The memorandum shall be signed by the persons who has effected these actions, by the person under investigation and by at least one witness.(4) In the cases where an investigated person refuses to sign the memorandum or is absent that memorandum shall be signed by at least one more witness.Obligation for CooperationArticle 98b. (New, SG No. 99/2005) The persons at whom the investigation referred to in Article 98 (1) takes place shall be obligated to;1. ensure unrestricted access to the investigated premises;2. cooperate with the officials on the occasion of the conducted investigation;3. provide the documents and evidence required by the relevant official.Imposition and Execution of Administrative SanctionsArticle 98c. (New, SG No. 99/2005) (1) The penalty decrees shall be issued by the Minister responsible for culture or by an official authorized thereby.(2) The penalty fine or pecuniary sanction shall be executed voluntarily within seven days following the enforcement of the penalty decree or the judgement of the court that has imposed them. Fifty per cent of the sums shall be transferred to the account of the Culture National Fund and the rest - to the budget of the Ministry of Culture.(3) (Amended, SG No. 105/2005) Upon expiry of the term referred to in Paragraph (2) a copy of the penalty decree shall be sent to the State Receivables Collection Agency for compulsory execution of the fine or pecuniary sanction imposed under the procedure of the Tax and Social Insurance Procedure Code .(4) Following the enforcement of the penalty decree or the judgement of the court the durable material media impounded in favour of the state shall be submitted for destruction to the authorities of the Ministry of Interior.Application of the Administrative Violations and Sanctions ActArticle 98d. (New, SG No. 99/2005) Inasmuch as this Chapter does not provide otherwise, the establishment of infringements, the issue, appeal and execution of penalty decrees shall follow the procedure of the Administrative Violations and Sanctions Act. Part FourAPPLICABLE LAWApplicable Law for Literary, Artistic and Architectural WorksArticle 99. (1) This Act shall apply to:1. (amended, SG. No. 77/2002) works whose authors are citizens of the Republic of Bulgaria or have permanent addresses therein regardless of where the said works have been published for the first time;2. (new, SG No. 99/2005 - effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) works whose authors are citizens of an European Union member-state or persons with permanent residence address in such a state, regardless of where the works have been published for the first time.3. (amended, SG. No. 77/2002, renumbered from Item 2, SG No. 99/2005 - effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) works whose authors are nationals of a state with which the Republic of Bulgaria is bound by a copyright treaty, or persons who have permanent addresses in such a country regardless of where the said works have been published for the first time;4. (renumbered from Item 3, SG No. 99/2005 - effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) works published for the first time or implemented as architectural designs in the territory of the Republic of Bulgaria or in the territory of a state which has a copyright treaty with the Republic of Bulgaria, irrespective of the nationality of the authors;5. (renumbered from Item 4, SG No. 99/2005 - effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) works which have been published for the first time in the territory of a state with which the Republic of Bulgaria is not bound by a copyright treaty, when such works have been published simultaneously or within thirty days in the territory of the Republic of Bulgaria, or in the territory of a state with which the Republic of Bulgaria has such an agreement.(2) Whenever this Act is applied to works created by nationals of other states or to works which have been published abroad first, the proprietor of the copyright shall be determined under the respective foreign law.(3) (New SG. No. 28/2000) With respect to works created by citizens of foreign states, or to works which were first published abroad, the duration of copyright shall be specified by the relevant foreign law, if it provides for protection terms shorter than the ones specified in this Act.Applicable Law at Royalty Rights Pursuant to Article 20Article 99a. (New, SG No. 99/2005) (1) The provisions of Article 20 shall apply in the case of resale of works of authors who are citizens of the Republic of Bulgaria or persons with a permanent address therein when the location of resale is on the territory of this country.(2) (Effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) Article 20 shall also apply to all authors and their heirs who are citizens of or have a permanent address in a European Union member-state.(3) As regards authors who are citizens of another state and do not have a permanent address in the Republic of Bulgaria the provisions of Article 20 shall apply only providing that the respective foreign state allows analogous right for Bulgarian citizens.Applicable Law at Broadcasting by SatelliteArticle 99b. (New, SG No. 99/2005 - effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) (1) This law shall apply in the case of the broadcasting of a work by satellite when the signal is sent to the satellite:1. from the territory of the Republic of Bulgaria;2. from the territory of a state not participating in the European Union which does not provide a level of defence of this right, corresponding to this law, providing that:a) the programme-carrying signals are transmitted to the satellite from an uplink situation situated in the Republic of Bulgaria, orb) the uplink connection with the satellite does not begin at a station located on the territory of a European Union Member State but the broadcast is effected by commission of an organization with registered office on the territory of the Republic of Bulgaria.(2) The responsibility for the broadcast shall be born: in the cases referred to in Item 1 of Paragraph (1) - by the broadcasting organization; in the cases referred to in Item 2, Littera "a" of Paragraph (1) - by the operator of the station; in the cases referred to in Item 2, Littera "b" of Paragraph (1) - by the organization at whose commission the broadcast was made.(3) The provisions of Paragraph (1) and (2) shall also apply respectively to the rights referred to in Article 72.Applicable Law for PerformancesArticle 100. (1) (Amended, SG. No. 77/2002) This Act shall apply to the performances of performing artists who are citizens of the Republic of Bulgaria or have permanent addresses therein irrespective of where such performances have been made.(2) This Act shall apply to the performances of foreign performing artists in the territory of the Republic of Bulgaria.(3) (New, SG No. 99/2005 - effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) This Act shall also apply to the performances of foreign actors - performers, citizens of a European Union Member State or having a permanent address in such a state, regardless of where the performances have been made.Applicable Law for Recordings, Programs and Films(Title amended, SG No. 28/2000)Article 101. (Amended, SG. No. 28/2000, SG. No. 77/2002, supplemented, SG No. 99/2005 - effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) This Act shall apply to the objects under Article 72, items 2, 3 and 4, made by natural persons who are citizens of the Republic of Bulgaria or have permanent addresses therein, by citizens of European Union Member States or such having a permanent address in any one of these, or by legal persons whose seat is in the territory of the country or the territory of such a state, irrespective of where such recordings may have been made, as well as to recordings made or simultaneously published for the first time by foreign persons on the territory of the Republic of Bulgaria or a European Union Member State.Applicable Law for Producers of DatabasesArticle 101a. (New, SG. No. 77/2002) (1) (Supplemented, SG No. 99/2005 - effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) This Act shall apply to producers of databases if they are citizens of the Republic of Bulgaria or have permanent addresses therein or are citizens of European Union Member States or such having a permanent address in any one of these.(2) (Supplemented, SG No. 99/2005 - Effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The provision in paragraph 1 shall apply to legal persons who are registered under the law of the Republic of Bulgaria and who have headquarters, registered address, or major corporate operations on its territory, as well as to legal persons established in accordance with the legislation of a European Union Member State whose registered office, address of the place of management or main activity are on the territory thereof. If a legal person only has offices in the Republic of Bulgaria or the European Union Member State, its operations shall be required to be tied in real terms to its economy.Application of TreatiesArticle 102. (Amended and supplemented, SG. No. 28/2000, previous Article 102, SG. No. 77/2002) (1) The rights of foreign performing artists, producers of phonograms, radio and television organizations and film producers other than those referred to in Article 100, paragraph 1 and Article 101, shall be protected under the treaties covering neighbouring to copyright rights to which the Republic of Bulgaria is party.(2) (New, SG. No. 77/2002, supplemented, SG No. 99/2005 - effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) Foreign producers of databases except those referred to in Article 101a shall enjoy protection as provided for by the international instruments to which the Republic of Bulgaria is a party.ADDITIONAL PROVISIONS 1. (1) The copyright proprietor as well as a person who has been granted the exclusive right to use a work protected by this Act, may place the Latin letter "C" surrounded by a circle at a suitable place on the copies of the work in front of their names or titles, or the year of making available to the public.(2) The producer of a phonogram as well as a person who has been granted the exclusive right to reproduce a phonogram protected by this Act, may place the Latin letter "C" surrounded by a circle at a suitable place on the copies of the work in front of their names or titles, or the year of the first publication.(3) (New, SG No. 99/2005) Confiscation in favour of the state of the object of infringement referred to in Article 97, Items 8 and 9 of Paragraph (1) and its erasure from the electronic medium on which it was reproduced. 1a. (New SG. No. 28/2000) (1) It is not permitted to acquire, appropriate, or keep for commercial purposes durable material media containing copyright-protected objects which have been reproduced in violation of the law.(2) The durable material media under paragraph (1) shall be seized in favour of the state on the basis of an act issued by the relevant penal administrative body, or by the court, and shall be delivered to be destroyed by the bodies of the Ministry of the Interior. 2. For the purposes of this Act:1. "making available to the public of a work" means the bringing of the publication with the consent of its author to the attention of an unlimited number of persons for the first time, irrespective of the form or manner in which this may be done;2. "publishing a work" means the bringing of a work to the attention of an unlimited number of persons through reproduction and distribution of its copies, including in the form of audio or video recordings, the number of which shall be adequate depending on the nature of the work;3. (amended SG. No. 28/2000, 77/2002) "reproduction of a work" shall mean duplicating directly or indirectly the work or part thereof in one more copies, in any manner and in any form, permanent or temporary, including saving the work in a digital form on an electronic medium;4. (amended, SG. No. 77/2002, SG No. 99/2005) "distribution of a work" means the sale, exchange, donation, renting, as well as storage in commercial quantities, and the offer to sell or rent originals or copies of the work;5. (amended, SG. No. 28/2000, SG No. 99/2005) "broadcasting of a work by wireless means" shall mean its broadcasting on radio and television by ground, as well as its incorporation in an incessant communication chain leading to a satellite and from there back to Earth through signals bearing programmes, under the control and at the responsibility of the broadcasting organisation with a view to its reception, either directly or individually by the public, or through the mediation of organization different from the broadcasting authority;6. (amended, SG. No. 28/2000, supplemented, SG. No. 77/2002, SG No. 99/2005) "users of a work" shall be natural or legal persons such as publishers, theatres, concert organizers, radio or television organizations, cable operators, public catering and entertainment establishments, producers of phonograms, film producers, Internet content providers, and others who bring the work to the attention of readers, viewers and listeners directly or through the services of distributors;7. "an audio recording" shall mean the fixing on a lasting material medium of a sequence of sounds in such a manner as would permit their listening, reproduction, re-recording and broadcasting by wireless, cable or other technical means;8. "a phonogram" shall be the product of audio recording;9. "architectural works" shall mean buildings and other equipment and their elements, durable objects of the synthesis of architecture with other arts, as well as durable interior decorations which meet the general terms under Article 3, paragraph 1.10. (new, SG No. 10/1998, amended SG. No. 28/2000) "a means of decoding" shall stand for any device, appliance, mechanism or decoding card which has been made or specially adapted to provide by itself, or in combination with others, access to an encoded signal in the form before the encoding has taken place.11. (new SG. No. 28/2000) "an encoded signal" shall mean any radio or TV signal which is broadcast, transmitted, re-broadcast or retransmitted through any technical means whose characteristics have been deliberately modified to restrict access to the signal for a specified audience alone;12. (new SG. No. 28/2000, repealed SG No. 99/2005). 13. (new, SG. No. 77/2002) A "database" is a combination of individual works, data, or other material arranged systematically or methodically and individually assessable by electronic or other means; the computer software used for the creation or functioning of databases, the recordings of individual audio-visual, literary, or musical works, as well as the compilation of audio recordings of music works on compact discs shall not be considered databases under this Act.14. (new, SG. No. 77/2002) "technical means of protection" shall be any technology, device, or component which could, in the course of normal usage, present or restrict actions not authorized by the holder of a right that is protected under this Act in respect of works or other objects protected under this Act if the use of such means enables control over the work by the right-holder by means of an access code, blurying, or other modification of the object or the mechanism for control over the copy.15. (new, SG No. 99/2005) "rental of protected objects" means giving for use for a certain period of time for direct or indirect economic benefit;16. (new, SG No. 99/2005) "lending of protected objects" means giving for use for a certain period of time not for direct or indirect economic benefit when this is effected by publicly accessible establishments, does not mean lending in the sense of this Act.a) provision of works or other objects of rights under this law, without these leaving the premises of the lessee establishment or between separate publicly accessible establishments;b) provision of phonographs or film copies for the ends of their legal use, public performance, broadcasting by wireless or transmission by cable;c) provision of works of graphic and plastic art, as well as photographs for public demonstration;17. (new, SG No. 99/2005) "professional defence organizations" means non-governmental organisations whose membership consists, entirely or principally, of holder of copyright or neighbouring rights and which are, in pursuance to their statutes, authorised by their members to defend their rights against infringement, as well as the legal persons that represent an international organization of such character in the country. 3. (Amended SG. No. 28/2000, supplemented, SG No. 99/2005) The definitions contained in items 1, 2, 3, 4, and 5 of the preceding paragraph shall also apply to the objects under Article 72 and under Chapter Eleven "a". 4. (1) Each copy of a work of fine art signed personally by its author shall be considered an original. The number of originals shall be established by the author and shall be announced in a suitable manner at the first announcement of the work, and cannot be the subject of subsequent change. Each copy shall carry a successive number.(2) (Repealed, SG No. 99/2005). 5. (1) The amount of compensation due to the proprietors of copyright and neighbouring rights on the use of works, performances, phonograms, radio and television programs shall be negotiated in a contract between the proprietors of the rights and the users.(2) Whenever use is negotiated by an organization conducting collective management of rights, the amount of compensation shall be set out in a contract between that organization and the users or their associations. 5a. (New, SG. No. 77/2002, repealed, SG No. 74/2005). 5b. (New, SG No. 99/2005 - effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union ) The provisions of this Act pertaining to the European Union Member States shall also apply to other countries from the European economic space. 5c. (New, SG No. 99/2005) (1) (Supplemented, SG No. 73/2006) The Ministry of Culture, in conjunction with the Ministry of the Interior, the Ministry of Justice, the Customs Agency and the Patent Office of the Republic of Bulgaria and other institutions, determined by the Council of Ministers shall develop and maintain a National System for exchange of information in the field of copyright and neighbouring rights, as well as intellectual property, which ensures interaction and exchange of data related to the protection of rights of works subject to Article 72 and subjects of industrial property.(2) The management, control and utilisation of the system referred to in Paragraph (1) shall follow a procedure determined by the Council of Ministers.(3) The funds for introduction, maintenance, exploitation and development of the system shall be provided by the budgets of the institutions referred to in Paragraph (1).TRANSITIONAL AND CONCLUDING PROVISIONS 6. (1) (Amended, SG. No. 28/2000) This Act shall also apply to works, performances, phonograms, radio and television programs made or performed prior to the entry into force of this Act unless the respective protection periods have expired.(2) Copyright acquired prior to the entry into force of this Act shall remain in force. 7. The authors of literary texts which have been used without their consent in musical works pursuant to Article 7 "b" of the Copyright Act of 1951, may not prevent the further use of the musical work together with the text if it has already been made available to the public together with it. 8. (1) The Copyright Agency is hereby dissolved.(2) The property of the Copyright Agency shall be transferred to the Ministry of culture.(3) The Council of Ministers shall determine the terms and procedures for the distribution of the property of the Agency among the organizations under Article 40 of this Act. 9. This Act hereby revokes:1. The Copyright Act (promulgated, Izvestia, No. 92/1951, corrected, No. 10/1952, amended, No. 55/1956, amended, State Gazette, No. 35/1972 and No. 30/1990).2. Article 270 through 278 of the Obligations and Contracts Act (promulgated, State Gazette, no. 275 of 1950, corrected, no. 2 of 1951, amended, no. 69 of 1951, no. 92 of 1952, no. 85 of 1963, no. 27 of 1973, no. 16 of 1977, no. 28 of 1988, no. 30 of 1990 and no. 12 of 1993). 10. This Act shall enter into force on August 1, 1993. 11. The implementation of this Act is assigned to the Council of Ministers.This Act was adopted by the 36th National Assembly on June 16, 1993 and was sealed with the State Seal.CONCLUDING PROVISION to the Act on Amending and Supplementing the Copyrightand Neighbouring Rights Act(SG No. 10/1998) 4. (Repealed, SG No. 28/2000).TRANSITIONAL AND CONCLUDING PROVISIONSto the Lev Redenomination Act (SG, No. 20/1999, supplemented No. 65/1999, effective 5.07.1999)........................................................................ 4. (1) (Amended, SG No. 65/1999) Upon the entry of this Act into force, all figures expressed in old lev terms as indicated in the laws which will have entered into force prior to the 5th day of July 1999 shall be replaced by figures expressed in new lev terms, reduced by a factor of 1,000. The replacement of all figures expressed in old lev terms, reduced by a factor of 1,000, shall furthermore apply to all laws passed prior to the 5th day of July 1999 which have entered or will enter into force after the 5th day of July 1999.(2) The authorities, which have adopted or issued any acts of subordinate legislation which will have entered into force prior to the 5th day of July 1999 and which contain figures expressed in lev terms, shall amend the said acts to bring them in conformity with this Act so that the amendments apply as from the date of entry of this Act into force......................................................................... 7. This Act shall enter into force on the 5th day of July 1999.ACT ON THE AMENDMENTS AND SUPPLEMENTSTO THE COPYRIGHT AND NEIGHBOURING RIGHTS ACTPromulgated SG No. 28/4.04.2000Amended SG No. 107/28.12.2000TRANSITIONAL AND CONCLUDING PROVISIONS 51. (1) This Act shall also apply to the works and objects under Article 72, made or performed prior to the entry into force of this Act, unless the protection periods stipulated therein have expired.(2) The right-holders may not have any claims on their works being used at a time when the protection period for these works had expired under the then effective legislation.(3) (New SG No. 107/2000) The persons described in Article 62, paragraph 1 shall be holders of copyrights over film and other audiovisual works that have been created prior to the entry into effect of this Act.(4) (New SG No. 107/2000) The persons who hold rights over films under Article 16, paragraph 1 of the repealed Copyright Act of 1951 may only enjoy the rights under Chapter Ten "a."(5) (New SG No. 107/2000, supplemented, SG No. 99/2005) The producer rights under Chapter Ten "a" of persons under paragraph 4 above over films produced by the Bulgarian Cinematography State Enterprise (Chief Directorate, State Concern, Creative - Economic Association), the Boyana Feature Film Studios, the Sofia Cartoon Studios, and the Vreme Science and Documentary Film Studios shall be transferred to the National Film Centre.(6) (New SG No. 107/2000) The persons who are holders of producer rights pursuant to paragraph 4 and 5 above may use such films without contract with the copyright holders until July 1, 2001 by paying compensation for each such use in an amount and on terms of payment that shall be negotiated with the respective organization for collective management of copyright. 52. This Act hereby revokes 4 of the concluding provision of the Act on the Amendments and Supplements to the Copyright and Neighbouring Rights Act (SG No. 10/1998). 53. Throughout this Act, the words "the Ministry responsible for culture" shall be replaced by "the Ministry of Culture". 54. (1) This Act shall enter into force one month after being promulgated in the "State Gazette", with the exception of 8 which shall become effective as of January 1, 2001.(2) The Council of Ministers shall enact a Regulation on 8 within six months from the date of entry into force of this Act, which shall apply as of January 1, 2001.ACT ON AMENDING AND SUPPLEMENTINGTHE COPYRIGHT AND NEIGHBOURING RIGHTS ACTPromulgated SG No. 77/09.08.2002 (effective 1.01.2003)TRANSITIONAL AND CONCLUDING PROVISIONS 38. (1). The provisions in Article 93c shall apply also in respect of the databases or parts thereof which were created prior to the entry into force of this Act if the terms under Article 93c have not expired.(2) The holders of rights under Article 93c may not make claims regarding actions that have been carried out prior to the entry into effect of this Act. 39. The Council of Ministers shall adopt the regulations under 14 and 37, item 2 before 1 January 2003. 40. This Act shall enter into effect on 1 January 2003 with the exception of 39, which shall enter into effect on the day of this Act's promulgation in the State Gazette.ACT ON AMENDING AND SUPPLEMENTINGTHE COPYRIGHT AND NEIGHBOURING RIGHTS ACTPromulgated SG No. 99/9.12.2005 (effective 10.01.2006) ............................................................................. 56. Everywhere in the act the words "Ministry of Culture and Tourism", shall be replaced by "Ministry of Culture".TRANSITIONAL AND CONCLUDING PROVISIONS 57. (1) The provisions of 1 concerning Article 6 and of 21 concerning Article 72b shall also apply to the works and objects referred to in Article 72, created or effected before the enforcement of this Act.(2) The provisions of 4 concerning Article 20 and of 5 concerning Article 20a shall apply for resales effected after the enforcement of this Act. 58. (1) A sale or another deal effected on the territory of a European Union Member State outside the Republic of Bulgaria before the enforcement of Item 1 of 3 shall not lead to termination of the right of distribution referred to in Article 18a (1).(2) Claims based on the provisions of 37 concerning Article 94a and of 38 concerning Article 95 may be filed in case the verbal competitions at first instance have not ended by the enforcement of this Act.(3) The provisions pertaining to the evidence and conditions for their acceptance referred to in Article 95c and Article 95d shall also apply as regards facts that have originated before the enforcement of this Act. 59. Administrative and administrative penal procedures opened prior to the enforcement of this Act shall be concluded by the previously existing procedure. For more information visit www.solicitorbulgaria.com id: 305 Fri, 01 Aug 2008 02:34:50 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-copyright-and-neighbouring-rights-act http://web.solicitorbulgaria.com/index.php/bulgarian-copyright-and-neighbouring-rights-act http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/Copyright_and_Neighbouring_Rights_Act.JPG EUR http://web.solicitorbulgaria.com/index.php/bulgarian-copyright-and-neighbouring-rights-act legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Chapter OneGENERAL PROVISIONSSubject MatterArticle 1. This Act establishes the terms and procedure for registration of marks and geographical indications, the rights arising therefrom, and the protection of the said rights.Scope of ApplicationArticle 2. (1) This Act shall apply to Bulgarian natural and legal persons and to foreign natural and legal persons of States parties to the international treaties whereto the Republic of Bulgaria is a party.(2) This Act shall apply to foreign natural and legal persons of other States on conditions of reciprocity to be determined at the discretion of the Patent Office.RepresentationArticle 3. (1) Any person entitled under this Act to act before the Patent Office may do so either in person or through a local industrial property agent.(2) (Amended, SG No. 43/2005) Any persons referred to in Paragraph (1), who or which have no permanent address or registered office in the Republic of Bulgaria, shall be required to act before the Patent Office through… For more information visit http://www.solicitorbulgaria.com id: 306 Chapter OneGENERAL PROVISIONSSubject MatterArticle 1. This Act establishes the terms and procedure for registration of marks and geographical indications, the rights arising therefrom, and the protection of the said rights.Scope of ApplicationArticle 2. (1) This Act shall apply to Bulgarian natural and legal persons and to foreign natural and legal persons of States parties to the international treaties whereto the Republic of Bulgaria is a party.(2) This Act shall apply to foreign natural and legal persons of other States on conditions of reciprocity to be determined at the discretion of the Patent Office.RepresentationArticle 3. (1) Any person entitled under this Act to act before the Patent Office may do so either in person or through a local industrial property agent.(2) (Amended, SG No. 43/2005) Any persons referred to in Paragraph (1), who or which have no permanent address or registered office in the Republic of Bulgaria, shall be required to act before the Patent Office through a local professional industrial property representative.FeesArticle 4. (Supplemented, SG No. 43/2005, amended, SG No. 73/2006) The Patent Office shall charge fees for filing of applications, priority, registration, issuing of certificates, acceleration of expertise in essence, renewal of registration, recording, correction of errors, appeals against refusals, revocation and cancellation, extension of time limits, publication of the application, the registration and the entries, filing of applications for international registrations, forwarding an application for Community trade mark, requests for determination that marks are well-known or have a reputation, publication for defining a mark as well-known or having a reputation, information on a mark or geographical indication applied for, enquiries and extracts from State registers at rates fixed in a rate schedule approved by the Council of Ministers.State Register of MarksArticle 5. The State Register of Marks shall be kept by the Patent Office and shall contain data on all registered marks and on all subsequent recordings in relation to such marks.State Register of Well-Known Marks and Marks Having a ReputationArticle 5a. (New, SG No. 73/2006) The Patent Office shall keep a Register in which data concerning all marks defined as well-known or having a reputation on the territory of the Republic of Bulgaria shall be entered.State Register of Geographical IndicationsArticle 6. The State Register of Geographical Indications shall be kept by the Patent Office and shall contain data on all registered geographical indications, scheduled users and all subsequent changes in relation to such indications and users.Access to the State RegistersArticle 7. (Supplemented, SG No. 73/2006) The State Registers referred to in Articles 5, 5a and 6 herein shall be open to public inspection. Any person may request information or an extract from the contents of the said registers.FileArticle 8. (1) The Patent Office shall keep a file on each mark or geographical indication which shall consist of all registration documents and subsequent recordings.(2) The Patent Office shall provide information on a mark or geographical indication filed for registration to third parties on an instruction by the President of the Office.(3) The information referred to in Paragraph (2) shall include only such data as is published upon registration of the mark or geographical indication.Chapter TwoMARKSSection IRegistrationDefinitionArticle 9. (1) A mark is a sign that is capable of distinguishing the goods or services of one person from those of other persons and can be represented graphically. Such signs may be words, including the names of persons, or letters, numerals, drawings, figures, the shape of the article or the packaging thereof, a combination of colours, sound signals, or any combination of such elements.(2) A mark may be a trademark, a service mark, a collective mark, or a certification mark.Acquisition of Rights to a MarkArticle 10. (1) The right to a mark shall be acquired by registration, reckoned from the filing date of the application.(2) The first to file shall have the right to register.(3) The right to a mark shall be an exclusive right.Absolute Grounds for Refusal of Registration(Title amended, SG No. 73/2006) Article 11. (1) The following shall be ineligible for registration:1. any sign that is not a mark within the meaning given by Article 9 (1) herein;2. (amended, SG No. 43/2005) any mark which is devoid of any distinctive character;3. (supplemented, SG No. 43/2005) any mark consisting exclusively of signs or indications that have become customary in the current language or the established practices of the trade of the Republic of Bulgaria in respect of the goods or services applied for;4. (amended and supplemented, SG No. 43/2005) any mark which consists exclusively of signs or indications which designate the kind, quality, quantity, intended purpose, value, place of origin, time of production of the goods or the manner of provision of the services, or other characteristics of the goods or services;5. any sign that consists exclusively of:(a) the shape of the goods dictated by their nature;(b) the shape of the goods necessary for a technical result to be obtained;(c) the shape of the goods that considerably increases their value;6. any mark that is contrary to public order or morality;7. any marks that may mislead users as to the nature, quality or place of origin of the goods or services;8. (amended, SG No. 43/2005) any mark which consists of or includes armorial bearings, flags or other emblems, as well as imitations thereof, of any States which are parties to the Paris Convention, as well as any armorial bearings, flags or other emblems, abbreviations or names of international intergovernmental organizations;9. (supplemented, SG No. 43/2005) any mark which consists of or includes official signs and hallmarks indicating control and warranty, where such signs and hallmarks are used for identical or similar goods;10. (repealed, SG No. 43/2005); 11. (amended, SG No. 28/2005, SG No. 94/2005) any mark which consists of or includes the name or a depiction of historical or cultural monuments of the Republic of Bulgaria, as designated by the Ministry of Culture;12. (repealed, SG No. 43/2005). (2) The provisions of Items 2, 3 and 4 of Paragraph (1) shall not apply where the mark, through use, has become distinctive in relation to the goods or services for which registration is sought.(3) (Amended, SG No. 43/2005) The provisions of Items 8, 9 and 11 of Paragraph (1) shall not apply where the consent of the relevant competent authority has been obtained.Relative Grounds for Refusal(Title amended, SG No. 73/2006) Article 12. (1) The following marks shall be ineligible for registration:1. any mark that is identical to an earlier mark, where the goods or services of the mark filed for registration and those of the earlier mark are identical;2. any mark that is identical or similar to an earlier mark, and because of the identity or similarity of the goods or services of the two marks, users are liable to be confused, notably by the likelihood of association with the earlier mark;3. any mark that consists of a geographical designation or a derivative thereof.(2) An "earlier mark" within the meaning given by Item 2 shall be:1. a registered mark with an earlier filing date or an earlier priority date, as the case may be;2. a mark filed for registration with an earlier filing date or earlier priority date, if registered;3. a mark that is well-known within the territory of the Republic of Bulgaria upon the filing date or priority date, as the case may be.(3) (Amended, SG No. 43/2005) A mark shall not be registered if it is identical with or similar to an earlier mark and is intended for goods or services that are not identical with or similar to those of the earlier mark, where that earlier mark has a reputation within the territory of the Republic of Bulgaria and where the use without due cause of the mark applied for would take unfair advantage of, or be detrimental to, the distinctive character or the repute of the earlier mark.(4) The provisions of Item 2 of Paragraph (1) and Paragraph (3) shall not apply where the consent of the proprietor of the prior mark has been obtained.Section IILegal Effects of RegistrationContent of Exclusive Rights on Mark(Title amended, SG No. 73/2006) Article 13. (1) The right to a mark includes a right of the proprietor of the mark to use and dispose of the said mark, and to prohibit other parties from unauthorized use in the course of trade of any sign which:1. is identical to the mark of any goods or services that are identical to those for which the mark is registered;2. (supplemented, SG No. 43/2005) because of its identity with or similarity to the mark, and because of the identity or similarity of the goods or services covered by the mark with or to the sign, there exists a likelihood of confusion on the part of users, including the likelihood of association of the sign with the mark;3. (amended, SG No. 43/2005) is identical with or similar to the mark of goods or services that are not identical with or similar to those for which the mark is registered, where the earlier mark has a reputation within the territory of the Republic of Bulgaria and where the use of the sign without due cause would take unfair advantage of, or be detrimental to, the distinctive character or the repute of the earlier mark.(2) (Amended, SG No. 43/2005, No. 73/2006) The use in the course of trade referred to in Paragraph (1) shall include:1. affixation of the sign to goods or to the packaging thereof;2. offering the goods bearing the sign for sale, placing such goods on the market or storing such goods for those purposes, and offering or rendering services under the sign;3. importing or exporting goods bearing the sign;4. using the sign in business papers and in advertisements.(3) (Amended, SG No. 73/2006) The exclusive right shall be effective with respect to third parties as from the date of publication of the registration.Limitation of Right to MarkArticle 14. The proprietor of a mark may not prohibit a third party from using the following in the course of trade, provided that the use is not contrary to fair trading practice:1. his own name or address;2. directions as to the kind, quality, quantity, intended purpose, value, place of origin, or time of production of the goods or provision of the services, or other characteristics of the goods or services;3. the mark itself, where it is necessary to specify the intended purpose of the goods or services, in particular when they are used as accessories or spare parts.Exhaustion of Right to MarkArticle 15. (1) (Amended, SG No. 73/2006, effective on the day of entry into force of the EU Treaty of Accession of the Republic of Bulgaria) The proprietor of a mark may not prohibit other parties from using the said mark for goods or services that are placed on the market on the territory of the European Union member-states, respectively the European economic space, under the said mark either by the proprietor or with the consent thereof.(2) Paragraph (1) shall not apply where the proprietor has good reason to oppose further sales of the goods, especially where the condition of the said goods has changed or deteriorated since their placing on the market.Jointly Held MarkArticle 16. (1) The right to a mark may be held by two or more person.(2) Each joint proprietor may use the mark without the consent of the other joint proprietors and without accounting to them for any such use, unless otherwise agreed therebetween in writing.Indication of RegistrationArticle 17. When using the mark, the proprietor thereof may indicate the registration of the said mark by placing the Roman letter R in a circle in a suitable location near the mark.Reproduction of Mark in Works of ReferenceArticle 18. Where reproduction of a mark in dictionaries, encyclopaedias or other works of reference creates the impression that the mark is the generic name of the goods or services for which the mark is registered, the proprietor of the said mark may oblige the publisher to state, not later than in its next edition of the relevant work, that this is a registered mark.Obligation to Use MarkArticle 19. (1) If, within five years after registration, the proprietor of a mark has not commenced actual use of the said mark within the territory of the Republic of Bulgaria in connection with the goods or services for which the mark is registered, or if such use has been suspended for an uninterrupted period of five years, the registration may be revoked, unless there is a convincing reason for the non-use.(2) In addition to the covered under Article 13 (2) herein, the following shall also be considered actual use within the meaning given by Paragraph (1):1. use of the mark by the proprietor thereof in a form not materially different from the form in which the mark was registered;2. affixation of the mark to goods or to the packaging thereof in the Republic of Bulgaria, regardless of whether the said goods are intended for export only.(3) Use of the mark with the consent of the proprietor thereof shall be considered to be use by the proprietor himself.Duration of RegistrationArticle 20. (1) The duration of registration shall be ten years, reckoned from the filing date of the application.(2) A registration may be renewed for an unlimited number of further ten-year periods according to the procedure established by Article 39 herein.Section IIIDisposition of Right to MarkTransfer of Right to MarkArticle 21. (1) The right to a mark may be transferred, independently of the transfer of the commercial enterprise, in respect of all or some of the goods or services for which the mark is registered.(2) In respect of jointly held marks, the right to a mark shall be transferred with the written consent of all joint proprietors, unless otherwise agreed therebetween.(3) Any transfer shall be recorded in the State Register at the request of one of the parties, the request being accompanied by a transfer document. The new proprietor shall be issued a certificate.(4) (Amended, SG No. 43/2005) Where it is evident from the transfer document that, owing to the transfer of the mark, users are liable to be misled as to the nature, quality or place of origin of the goods or services, the transfer shall not be recorded, unless the goods or services are limited to such as are not likely to be misleading.(5) The transfer shall be effective with respect to third parties as from the date of recording or the said transfer in the State Register.(6) All documents of which the proprietor must be informed shall be transmitted to the person last recorded as proprietor in the State Register.(7) The provision of Paragraphs (1), (2) and (4) shall furthermore apply to the transfer of applications for registration.Licence AgreementArticle 22. (1) The proprietor of a mark may permit the use of the said mark in respect of all or some of the goods or services for which the mark is registered within all or part of the territory of the Republic of Bulgaria by means of a written licence agreement.(2) The use of a jointly held mark shall be permitted with the written consent of all proprietors, unless otherwise agreed therebetween.(3) A licence may be exclusive or non-exclusive. Unless otherwise agreed, the licence shall be presumed non-exclusive.(4) The licensor of an exclusive licence shall have no right to grant licences for the same subject matter to other persons. Any such licensor shall have the right to use the mark only where so expressly agreed.(5) (Amended, SG No. 43/2005) A licence agreement shall be recorded in the State Register at the request of one of the parties, the said request being accompanied by an extract from the licence agreement stating particulars identifying the licensee and the licensor, the mark and the registration number of the mark, and the term of validity of the licence agreement, with the signatures and seals of both parties being affixed thereto. The Patent Office shall issue a certificate of the recording.(6) The licence agreement shall be effective with respect to third parties as from the date of recording of the said agreement in the State Register.Right to Mark as Subject of Collateral SecurityArticle 22a. (New, SG No. 43/2005) (1) The right to a mark may serve as collateral security under a pending or future claim. Acting at the request of the claimant, the court may furthermore admit some of the following injunctions without notifying the respondent:1. a prohibition of use of the rights to the mark by the proprietor or the licensee;2. a prohibition of disposition of the rights to the mark by the proprietor.(2) Any such collateral security shall be recorded in the State Register of Marks at the request of one of the parties to the claim.(3) Any such request must state particulars identifying the proprietor of the mark and the person in whose favour the collateral security is provided, and particulars of the mark and of the type of injunction. A document whereby the collateral security is provided shall accompany the request.(4) The collateral security shall have effect vis-a-vis third parties as from the time of recording in the State Register of Marks at the Patent Office.Right to Mark as Subject of Registered PledgeArticle 22b. (New, SG No. 43/2005) (1) The right to a mark may serve as a registered pledge.(2) The provisions of Articles 26 through 31 incl. of the Registered Pledges Act shall apply to the recording of the registered pledge in the State Register of Marks. The pledgor shall be issued a certificate.(3) The pledge shall have effect vis-a-vis third parties as from the time of recording in the State Register of Marks at the Patent Office.Inclusion of Right to Mark in Bankruptcy EstateArticle 22c. (New, SG No. 43/2005) (1) The right to a mark shall be included in the bankruptcy estate when bankruptcy proceedings are instituted against the proprietor of the said mark.(2) Where a mark has been included in the bankruptcy estate, this fact shall be recorded in the State Register of Marks at the request of one of the parties to the case and shall be published in the Official Bulletin of the Patent Office.Section IVLapse of Registration, Revocation and Expungementof RegistrationLapse of RegistrationArticle 23. (1) The validity of a registration shall lapse upon:1. expiry of the duration referred to in Article 20 herein;2. surrender by the proprietor;3. dissolution of the proprietor if a legal person without legal succession.(2) (Amended, SG No. 43/2005) A lapse under Item 3 of Paragraph (1) shall take place at the request of a person who can establish a legitimate interest.(3) The right to the mark shall be extinguished upon lapse of the registration.Lapse of Registration of Marks Containing RegisteredGeographical IndicationArticle 23a. (New, SG No. 43/2005) The registration of any marks which contain a registered geographical indication shall lapse upon:1. expiry of the legal protection of the geographical indication;2. cancellation of the registration of the geographical indication; or3. revocation of the registration of the proprietor of the mark as scheduled user of the geographical indication.Surrender of RightArticle 24. (1) The proprietor of a mark may surrender the right thereof to the said mark in respect of all or some of the goods or services for which the mark is registered by means of a written declaration filed with the Patent Office.(2) The surrender shall be effective as from the date of recording of the said surrender in the State Register.(3) Where a licence agreement has been recorded, surrender of a right shall be recorded if the proprietor furnishes evidence of having informed the licensee of his intention to surrender the right to the mark. Recording shall be effected upon the lapse of two months after submission of the evidence.(4) Surrender of the right to a mark by one or several of the joint proprietors shall not lead to lapse of the registration with respect to the remaining joint proprietors.Revocation of RegistrationArticle 25. (1) (Amended, SG No. 43/2005) A registration of a mark shall be revoked at the request of any person where:1. the mark has not been used according to Article 19 herein;2. as a result of an act or omission by the proprietor, the mark has become a common name for the product or service for which the mark is registered;3. the mark is used by the proprietor or by another person with the proprietor's consent in respect of the goods or services for which the marks registered in a manner misleading users as to the nature, quality or place of origin of the goods or services.(2) The provision of Item 1 of Paragraph (1) shall not apply if the proprietor has initiated or resumed actual use of the mark thereof within the period between the expiry of the five-year term and the filing date of the revocation request. The commencement or resumption of the use within three months before the filing date of the revocation request shall be ignored if the preparations for such use or resumption were made after the proprietor learned of the likelihood of the filing of such a request.(3) Where the revocation request concerns part of the goods or services, the registration shall be revoked only in respect of the said goods or services.Expungement of RegistrationArticle 26. (1) (Amended, SG No. 43/2005) A registration of a mark shall be cancelled at the request of any person, where the said registration has been effected in conflict with the requirements established by Articles 11 and 12 herein.(2) Where a mark has been registered in conflict with Items 2, 3 or 4 of Article 11 (1) herein, the registration shall not be expunged if the proprietor proves that, as a result of the use, the mark has acquired distinctive character in relation to the goods or services for which the mark is registered.(3) (Amended, SG No. 43/2005) The registration of a mark shall be cancelled at the request of any a person who can establish a legitimate interest where:1. the mark is registered in conflict with Article 12 herein;2. (repealed, SG No. 43/2005); 3. the mark is registered in the name of an agent or representative of the proprietor without the consent of the proprietor;4. the applicant has acted in bad faith when filing the application, which has been established by an effective judgment of court;5. the use of a mark is liable to be prohibited by virtue of an earlier right vesting in a third party, that earlier right enjoying protection under another law, and more specifically:(a) the right to one's name and likeness;(b) copyright;(c) the right of a breeder to the name of a variety of plant or an animal breed;(d) an industrial property right.6. (new, SG No. 43/2005) the mark consists of or contains the business name of another party whereof the business name has been registered and used in the Republic of Bulgaria prior to the registration filing date in connection with identical or similar goods or services.(4) A registration of a mark may furthermore be expunged proprio motu by the Patent Office, where the said mark has been registered in conflict with Articles 11 and 12 herein.(5) In the cases under Item 1 of paragraph (3), a registration shall not be expunged if the earlier mark has not been used according to Article 19 herein.(6) (Amended, SG No. 43/2005) In the cases referred to in Item 3 of Paragraph (3), the registration shall not be cancelled and the mark shall be transferred to the person who can establish a legitimate interest at the request of the said person.(7) (Amended, SG No. 43/2005) In the cases referred to in Items 1 and 5 of Paragraph (3), the registration shall not be cancelled if the consent of the proprietor of the earlier mark or the holder of the earlier right, as the case may be, is presented during the cancellation proceedings.(8) Where the grounds for expungement affect only part of the goods or services, the registration shall be expunged solely in respect of the said goods or services.Restriction Due to AcquiescenceArticle 27. (1) Where the proprietor of an earlier mark within the meaning given by Article 12 (2) herein has acquiesced for a period of five successive years in the use of a later mark despite being aware of that use, the said proprietor shall not be entitled to invoke his earlier mark as grounds to request expungement of the later mark or oppose the use of the said mark in respect of the goods or services for which the mark has been used unless registration of the later mark was applied for in bad faith.(2) Paragraph (1) shall furthermore apply to proprietors of earlier marks according to Article 12 (3) herein or to holders of earlier rights according to Item 5 of Article 26 (3) herein.(3) In the cases under Paragraphs (1) and (2), the holder of the right to the later mark shall not be entitled to oppose the use of the earlier mark, while the proprietor of the earlier mark may not invoke the rights thereof as grounds to request expungement of the later mark.Legal Effects of Revocation and ExpungementArticle 28. (1) Revocation of a registration of a mark under Item 1 of Article 25 (1) herein shall be effective as from the commencement of the five-year period of non-use.(2) Revocation of a registration of a mark under Item 2 or 3 of Article 25 (1) herein shall be effective as from the filing date of the revocation request.(3) Expungement of a registration of a mark shall be effective as from the filing date of the application.(4) Revocation and expungement of a registration shall not affect:1. any effective judgments of court on actions for infringement, to the extent to which they have been executed prior to the revocation or expungement;2. any licence agreements, to the extent to which they have been performed prior to the revocation or expungement, unless otherwise agreed.Section VCollective and Certification MarksCollective MarksArticle 29. (1) (Supplemented, SG No. 43/2005) A collective mark is a mark held by an association of producers, traders or service providers, the said association being a legal person. A collective mark serves to distinguish the goods or services of the association members from the goods or services of other persons.(2) The association shall mandatorily adopt rules for the use of the collective mark stating: particulars of the persons entitled to use the mark; eligibility criteria for membership of the association; conditions governing use of the mark and grounds on which a member of the association may be prohibited from using the mark.(3) The right to a collective mark shall be non transferable. Any persons who are not members of the association may not obtain permission to use the collective mark.Certification MarksArticle 30. (1) (Amended, SG No. 43/2005) A certification mark attests the material, manner of manufacture, quality or other characteristics of the goods or services produced or offered by persons with the consent and under the supervision of the proprietor of the mark.(2) (Amended, SG No. 43/2005) The proprietor of the mark shall mandatorily adopt rules for the use of the certification mark, stating: directions as to the quality, material or other characteristics of the goods or services; the control measures taken by the proprietor of the certification mark, and the sanctions imposed thereby.(3) The proprietor of a certification mark may not use the said mark to designate the goods produced or the services provided thereby.(4) The registration of a certification mark may be revoked, where the proprietor thereof has used it to designate any goods produced or services provided thereby.Special Provisions(Heading amended, SG No. 43/2005) Article 31. (1) The proprietor of a collective or certification mark shall submit to the Patent Office the rules for use and all changes in the said rules. Any such changes shall be effective as from the date of submission of the said changes to the Patent Office.(2) A registration of a collective or certification mark may be revoked on the grounds covered under Article 25 herein, as well as also where the proprietor of the said mark has permitted or tolerated any use which comes into conflict with the rules for use.(3) A collective or certification mark whereof the registration is revoked or has lapsed shall be an obstacle to the registration of an identical or similar mark for identical or similar goods or services in the name of another person within three years after the publication of the revocation or lapse.(4) (New, SG No. 43/2005) The Patent Office shall provide access to the rules for use of collective and certification marks.Section VIProceedings before Patent OfficeApplicationArticle 32. (1) An application for registration of a mark shall be filed with the Patent Office.(2) An application must relate to a single mark intended for goods and/or services in one or more classes of the International Classification.(3) An application must contain:1. the request for registration;2. the name and address of the applicant;3. a depiction of the mark; and4. a list of the goods and/or services for which the registration is requested.(4) Where the application relates to a collective or a certification mark, the rules for use of the said mark shall be attached (to the application) together with the other documents covered under Paragraph (3).(5) The application must satisfy any other requirements as may be established by an ordinance adopted by the Council of Ministers.(6) The application shall be accompanied by documentary proof of payment offers.(7) The application documents and data must be submitted in the Bulgarian language.Filing DateArticle 33. (1) The filing date of an application shall be the date on which the documents with the particulars covered under Article 32 (3) and (4) herein are received at the Patent Office.(2) Where the documents are submitted in a language other than Bulgarian, the filing date shall be maintained if the said documents are submitted in the Bulgarian language to the Patent Office within three months after that date.Right of PriorityArticle 34. (1) An application shall enjoy a right of priority over subsequent applications for identical or similar marks in respect of identical or similar goods or services as from the date of filing of the application with the Patent Office according to Article 33 (1) herein.(2) The applicant shall enjoy a right of priority as from the date of a preceding application, provided that:1. the preceding application was filed in due form in a State party to the Paris Convention or a Member State of the World Trade Organization;2. the preceding application is a first application within the meaning given by Article 4 of the Paris Convention and is for the same mark and for the same goods or services;3. the application is filed with the Patent Office within six months after the filing date of the preceding application;4. priority is claimed within two months after the filing date of the application with a mention of the date and State of the preceding application;5. within three months after the filing date of the application, the applicant pays a priority fee and submits a priority document issued by the competent authority of the State of filing of the preceding application.(3) A duly filed application, as referred to in Item 1 of Paragraph (2), shall be any application having an assigned filing date, regardless of the subsequent fate of the said application.(4) The rights of exhibition priority shall be granted as from the date of display of the goods or services bearing the mark applied for at an official or officially recognized exhibition, provided that:1. the application is filed within six months after the date of the first display of the goods or services;2. the application is for the same mark and for the same goods or services displayed;3. priority is claimed within two months after the filing date of the application with a mention of the date of display and the State in which the exhibition was held, and4. within three months after the filing date of the application, the applicant pays a priority fee and submits a document issued by the exhibition officials certifying the date of display of the goods or services bearing the mark applied for.Claim of ColourArticle 35. A claim of a colour or of a combination of colours shall be granted if filed together with the application.Examination as to FormArticle 36. (1) Each application shall be subjected to an examination as to compliance with the requirements established by Article 33 herein for assignment of a filing date. In the event of non-compliance with the said requirements, the documents received shall be returned to the applicant.(2) (Amended, SG No. 43/2005) Each application with an assigned filing date shall be examined as to accompaniment of documentary proof of payment of fees referred to in Article 32 (6) herein. Should no such proof accompany the application, the applicant shall be allowed a period of three months to cure this defect. If the fees are not paid within the said time limit, the application shall be deemed withdrawn.(3) (New, SG No. 43/2005) Within two months after presentation of the documentary proof of payment of fees, the application shall be examined as to compliance with the requirements established by Article 32 (2), (5) and (7) herein. Where the application refers to a collective or certification mark, the said application shall be examined as to compliance of the rules for use with the requirements established by Article 29 (2) or by Article 30 (2) herein, as the case may be. Should any defects be detected, the applicant shall be allowed three months to cure the said defects.(4) (Renumbered from Paragraph (3) and amended, SG No. 43/2005) Where the application does not satisfy the requirements established by Article 32 (2) herein and the applicant divides the application within the time limit provided for in sentence three of Paragraph (3), the resulting divided applications shall retain the filing date or the priority date, respectively, of the original application.(5) (Renumbered from Paragraph (4) and amended, SG No. 43/2005) If the applicant fails to cure the defects within the time limit provided for in sentence three of Paragraph (3), the proceedings shall be terminated.Publication of ApplicationArticle 36a. (1) (New, SG No. 43/2005, previous Article 36a, SG No. 73/2006) Each application, which satisfies the requirements as to proper form, shall be published in the Official Bulletin of the Patent Office. Any such publication shall be performed within one month after completion of the examination under Article 36 herein and shall state the incoming reference number, the filing date and the priority, where such has been claimed, identifying particulars of the applicant, the type of the mark, the depiction of the mark, the claim of a colour or colours, the classes and the list of goods and services in respect of which the mark is applied for.(2) (New, SG No. 73/2006) The application shall not be published when:1. it is withdrawn pursuant to Article 36 (2) herein;2. it is considered withdrawn pursuant to Article 36 (5) herein;3. the procedure thereon has been terminated pursuant to Article 36 (5) herein;4. an application for international registration of the same mark with a view to enjoyment of convention priority has been filed before completion of the preparation for publication, but not later than four months from the date of filing.Opposition to Registration of MarkArticle 36b. (New, SG No. 43/2005) (1) Within two months after the date of publication of the application, any person may give notice of opposition to the registration of the mark in pursuance of Articles 11 and 12 herein.(2) Any such opposition must be expressed in writing and must state grounds and reasoning.(3) The opposing party shall not participate in the application proceedings but shall have the right to receive, on request, information on the opinion on the opposition.Examination on the MeritsArticle 37. (1) (Amended, SG No. 43/2005) Each application shall be subjected to an examination on the merits within one year after expiry of the time limit referred to in Article 36b (1) herein, regardless of whether any notice of opposition has been given.(2) Where there are grounds for refusal of registration in respect of all or some of the goods or services, the applicant shall be notified, specifying all grounds for the refusal and allowing the applicant three months for lodgment of objections.(3) (Amended, SG No. 43/2005) Where the mark contains an element which in itself is ineligible for registration as a mark under Items 2, 3, 4, 5, 8, 9 or 11 of Article 11 (1) herein, the applicant may be requested, as a condition for registration of the mark, to renounce the exclusive right to any such element.(4) Where, within the time limit provided for in Paragraph (2), the applicant fails to lodge reasoned objections and/or to restrict the list of goods or services, or fails to comply with the requirements established by Paragraph (3), a decision to refuse the registration shall be made.(5) Where a mark is found to comply with the requirements established by this Act, a decision on registration shall be made. Any such mark shall be recorded in the State Register of Marks and the applicant shall be issued a certificate of registration within one month.Suspension of ProceedingsArticle 37a. (New, SG No. 43/2005) (1) The application proceedings shall be suspended at the request of the applicant where a petition for revocation, cancellation or lapse of the earlier mark on which the opposition is based has been submitted under Item 3 of Article 23 (1) herein.(2) The application proceedings shall be suspended proprio motu where the refusal is based on a mark applied for with an earlier filing date or with an earlier priority, as the case may be, or on a mark for which the time limit for submission of a request for renewal of registration according to Article 39 (3) herein, where a notice of opposition has been given claiming that the mark is well-known, or where the decision on the application is contingent on the advance determination of an issue within the competence of another authority.(3) Any proceedings referred to in Paragraph (1) shall be resumed at the request of the applicant after entry into effect of the decision on the relevant petition or after recording of the lapse in the State Register of Marks.(4) Any proceedings referred to in Paragraph (2) shall be resumed proprio motu after entry into effect of the decision on the earlier mark on which the opposition is based, after expiry of the time limit referred to in Article 39 (3) herein, after pronouncement on the claim that the mark is well-known, or after the decision of the relevant competent authority.Withdrawal, Restriction, and Modification of ApplicationArticle 38. (1) Until a decision is made on an application, the applicant may withdraw the said application or restrict the list of goods or services in respect of which the mark is applied for.(2) An application may not be modified, except in the case of changes in the name or address of the applicant, mistakes in the name or address of the applicant or apparent errors, subject to the condition that any such corrections do not affect the sign or extend the list of goods or services.(3) Corrections under Paragraph (2) shall be made at the request of the applicant.Renewal of RegistrationArticle 39. (1) A registration shall be renewed at the request of the proprietor, any such request being accompanied by documentary proof of payment of a fee.(2) The request must state the registration number of the mark and the particulars identifying the proprietor.(3) The request may be submitted during the last year of the time limit provided for in Article 20 (1) herein, or within six months after the expiry of the said time limit subject to payment of an additional fee.(4) Where the proprietor requests a renewal of the registration for only part of the goods or services for which the said mark is registered, the said proprietor shall specify the goods or services for which renewal is sought in the request.(5) (Amended, SG No. 43/2005) In the event of failure to comply with the requirements established by Paragraphs (1), (2) and (3), registration of the mark shall not be renewed.(6) Renewal shall be effective as from the day next succeeding the expiry date of the preceding registration.Changes in Name and Address of ProprietorArticle 40. (1) The holder of a right to a mark shall be required to notify the Patent Office of any change in the name or address thereof within three months after occurrence of any such change.(2) Any such change shall be recorded in the State Register at the request of the holder.(3) All documents of which the holder must be informed shall be sent to the address as last recorded in the State Register.Changes in MarkArticle 41. (1) No changes may be introduced in a mark during the term of validity of the registration or upon the renewal thereof.(2) Where a mark includes the name and address of the proprietor, any change in the said name or address may be made at the request of the holder, provided that such changes do not materially affect the mark as registered.Opposition ProceedingsArticle 42. (1) The Appeals Department shall consider:1. any appeals against decisions to refuse registration under Article 37 (4) herein;2. (amended, SG No. 43/2005) any appeals against decisions on termination of proceedings under Article 36 (5) herein;3. any petitions for revocation of the registration under Article 25 herein;4. any petitions for expungement of the registration under Article 26 herein.(2) (Supplemented, SG No. 43/2005, amended, SG No. 73/2006) Appeals shall be considered by panels composed of two State examiners and one legal expert, while petitions shall be considered by panels composed of three State examiners and two legal experts. Any such panels shall be appointed by the President of the Patent Office.(3) (Amended, SG No. 43/2005) The panels referred to in Paragraph (2) shall prepare opinions on making the decisions referred to in Articles 45 and 46 herein.Time LimitsArticle 43. (1) Appeals may be lodged within three months after the date of notification of the decision.(2) Petitions may be submitted throughout the duration of the registration.(3) (Repealed, SG No. 43/2005). Contents of Appeals and PetitionsArticle 44. (1) An appeal must be reasoned and state particulars of the appellant and data of the application.(2) (Amended, SG No. 43/2005) A petition shall be submitted in duplicate and must state identifying particulars of the petitioner, data of the legitimate interest of the petitioner, where so required, reasoning of the cancellation, as well as evidence, where appropriate.(3) (Amended, SG No. 43/2005) A documentary proof of payment of a fee shall accompany the appeals and petitions.Examination as to Admissibility and Proper Form of Appeals and PetitionsArticle 44a. (New, SG No. 43/2005) (1) Each appeal shall be examined as to compliance with the time limit referred to in Article 43 (1) herein and as to presentation of documentary proof of payment of a fee referred to in Article 44 (3) herein.(2) Each petition shall be examined as to presentation of documentary proof of payment of a fee referred to in Article 44 (3) herein and as to establishment of a legitimate interest, where so required.(3) Where the appeal or petition is not accompanied by documentary proof of payment of a fee or where the legitimate interest is not established in the petition, the appellant or the petitioner, as the case may be, shall be allowed one month to cure the defects.(4) Any appeals which are not lodged within the time limit referred to in Article 43 (1) herein and/or on which no fee has been paid, as well as any petitions on which no fee has been paid and/or no legitimate interest has been established, shall be inadmissible, and no proceedings shall be initiated on them.(5) Each admissible appeal and petition shall be examined as to compliance with the rest of the requirements covered under Article 44 herein. Where any defects are detected, the appellant or the petitioner, as the case may be, shall be notified and shall be allowed one month to cure the said effects. The proceedings on any appeals and petitions whereof the defects are not cured within the said time limit shall be terminated.Ruling on AppealsArticle 45. (1) (Amended, SG No. 43/2005) Where an appeal is unfounded, the President of the Patent Office shall render a decision upholding the decision on refusal of registration or the decision on termination of proceedings.(2) (Amended, SG No. 43/2005) Where an appeal is well-founded, the President of the Patent Office shall render a decision revoking the decision and shall render a decision on referral of the application for reconsideration, on registration of the mark, or on resumption of proceedings.(3) Where a decision on refusal of registration is revoked upon reconsideration of the application, a decision on the merits shall be made by the President of the Patent Office.(4) (New, SG No. 43/2005) The decisions referred to in Paragraphs (1) and (2) shall be rendered within three months after lodgement of the appeal or after curing of the defects detected therein.Proceedings on PetitionsArticle 46. (1) (Amended, SG No. 43/2005) One copy of the petition shall be transmitted to the holder of the right to the mark, who shall be allowed three months for lodgement of an objection and, where the petition is under Item 1 of Article 25 (1) herein, also for presentation of evidence of use of the mark within the Republic of Bulgaria.(2) (New, SG No. 43/2005) The objection or the evidence of use of the mark shall be transmitted to the petitioner, who shall be allowed one month for an opinion.(3) (New, SG No. 43/2005) The panel referred to in Article 42 (2) herein may require from the parties additional evidence and materials, where appropriate. The said evidence and materials shall be provided to the opposing party for a written opinion within one month.(4) (Renumbered from Paragraph (2), SG No. 43/2005) Where the petition is unfounded, the President of the Patent Office shall make a decision on rejection of the said petition.(5) (Renumbered from Paragraph (3), SG No. 43/2005) Where the petition is well-founded, the President of the Patent Office shall make a decision on complete or partial revocation or on cancellation of the registration.(6) (Renumbered from Paragraph (4), SG No. 43/2005) In cases of partial revocation or partial cancellation of the registration, the certificate of registration as issued shall be replaced by a new certificate.(7) (New, SG No. 43/2005) The decisions on the petitions for revocation or for cancellation shall be rendered within three months after completion of the collection of evidence and materials referred to in Paragraph (3).Suspension of ProceedingsArticle 46a. (New, SG No. 43/2005) (1) The proceedings on an appeal shall be suspended where a petition for cancellation or revocation of the registration of the earlier mark has been submitted in connection with the said appeal.(2) The proceedings on a petition for cancellation shall be suspended where a counter-petition for revocation of the registration of the earlier mark has been submitted.(3) The proceedings referred to in Paragraphs (1) and (2) shall be resumed after entry into effect of the decision on the relevant petition.Extension of Time LimitsArticle 47. (Amended, SG No. 43/2005) The time limits referred to in Article 36 (3), Article 37 (2) and Article 46 (1) herein may be extended, at the request of the applicant or the proprietor, by three months on a single occasion. No such request shall be granted unless accompanied by documentary proof of payment of a fee.Renewal of Time LimitsArticle 48. Any time limits exceeded due to specific unforeseen circumstances may be renewed at the request of the applicant or the proprietor. Any such request may be filed within three months after the reason for exceeding the time limit has ceased to exist, but no later than one year after expiry of the time limit exceeded. A decision on renewal of a time limit shall be made by the President of the Patent Office.Publication in Official Bulletin of Patent OfficeArticle 49. (Amended and supplemented, SG No. 73/2006) The Patent Office shall publish each registered mark, well-known mark or mark having a reputation and any subsequent recording relating thereto in the Official Bulletin of the Office within three months after recording in the State Register of Marks.Judicial ReviewArticle 50. (1) (Amended, SG No. 30/2006, effective 1.03.2007) Any decisions under Article 45 (1) herein and Article 46 herein shall be appealable before the Administrative Court - Sofia City within three months after notification.(2) Any refusals to record in the State registers, and any refusal to renewal registration shall be appealable according to the procedure established by the Administrative Procedure Code. Section VII(New, SG No. 73/2006)Well-Known Mark and Mark Having a ReputationDefinition of Mark as Well-Known or Having a ReputationArticle 50a. (New, SG No. 73/2006) (1) The following circumstances shall be taken into account in defining a mark as being well-known or having a reputation:1. degree of being well-known or of mark being acknowledged by the respective part of the public which encompasses actual or potential consumers of the product or service, the persons engaged in the respective distribution network and the business circles engaged with the given goods or services;2. duration, degree and geographical region wherein the mark is used;3. duration, degree and geographical region of presentation of the mark, including advertisement, publication or exhibition of the products and/or services for which the mark is applied at fairs and/or exhibitions;4. data concerning the successful invocation of the rights on the said mark, providing that mark is registered;5. mark value;6. other circumstances.(2) Definition of a mark as being well-known or having a reputation shall be effected by:1. Sofia City Court under the general application procedure;2. the Patent Office under the procedure pursuant to Article 50b.Procedure for Definition of Well-Known Mark andMark Having a Reputation on the Territory of the Republic ofBulgaria at the Patent Office.Article 50b. (New, SG No. 73/2006) (1) Definition of a well-known mark or a mark having a reputation shall be effected upon the request of the proprietor of that mark subject of payment of the relevant fee and submission of written evidence.(2) The President of the Patent Office shall make a decision on the request on the basis of an expert opinion of a commission appointed thereby.(3) A mark that has been defined as well-known or having a reputation pursuant to Paragraph (2) shall be published in the Official Bulletin of the Patent Office and shall be entered in the Register referred to in Article 5a.(4) A mark that has been defined as well-known or having a reputation pursuant to Item 1 of Article 50a (2) shall not be published in the Official Bulletin of the Patent Office, nor entered in the Register referred to in Article 5a and may not be invoked against a third party.(5) The decision for definition of a mark as well-known or having a reputation may be appealed before Sofia City Court under the procedure of the Administrative Procedure Code by any third party within one month following the publication.(6) The refusal to define a mark as well-known or having a reputation may be appealed before Sofia City Court under the procedure of the Administrative Procedure Code.(7) The procedure and method whereby a mark shall be defined at the patent Office as well-known or having a reputation on the territory of the Republic of Bulgaria shall be established by an Ordinance passed by the Council of Ministers.Chapter ThreeGEOGRAPHICAL INDICATIONSSection IRegistrationDefinitionArticle 51. (1) Geographical indication means an appellation of origin or an indication of source.(2) An appellation of origin is the name of a country, or of a region or a specific locality within that country, serving to designate goods that originate therein and whose quality or characteristics are due essentially or exclusively to the geographical environment, including natural and human factors.(3) An indication of source is the name of a country, or of a region or a specific locality within that country, serving to designate goods that originate therein and whose quality, reputation or another characteristic is attributable to that place of origin.(4) (New, SG No. 43/2005) Traditional names, which conform to the requirements referred to in Paragraphs (2) and (3), shall likewise be deemed geographical indications.Grounds for Refusal of RegistrationArticle 52. A name shall not be registered as a geographical indication if:1. it has become a generic name of goods of a certain kind within the territory of the Republic of Bulgaria without being associated with the place of production of the said goods;2. it is identical to the name of a variety of plant or an animal breed protected earlier, where users are likely to be misled as to the true origin of the goods;3. it is identical to a geographical indication or a mark registered earlier for identical goods;4. it is identical or similar to a geographical indication or a mark registered earlier for identical or similar goods, where users are liable to be misled.Legal ProtectionArticle 53. (1) A geographical indication shall be granted legal protection through registration with the Patent Office.(2) Legal protection shall comprehend a prohibition of:1. any commercial use of the geographical indication for goods that are similar to those for which the said indication is registered, in so far as the renown of the registered indication is exploited;2. improper use or imitation of the geographical indication, even where the genuine origin of the goods is specified, or use of the indication in translation or in combination with expressions such as "sort", "kind", "type", "imitation", and the like;3. use of any other false or misleading indication of the source, origin, nature or essential properties of the goods designated on the packaging thereof, in advertising material or documents related to the goods, such indication being likely to mislead as to the genuine origin of the goods;4. any other action that may mislead users as to the true origin of the goods.(3) Registered geographical indications may not be turned into generic names as long as they enjoy protection under this Act.Right to File ApplicationArticle 54. (1) The right to file an application shall vest in any person who carries on the production activity in the specified geographical locality, provided that the goods the said persons produces conform to the established properties or peculiarities.(2) The borders of the geographical locality and the properties or peculiarities of the goods, as well as the relationship between the said properties or peculiarities and the geographical environment or place of origin, shall be defined or established by the relevant central government department by order of the head thereof.Right of UseArticle 55. (1) A registered geographical indication may be used only by the person registered as the user thereof.(2) The scheduled user may use the geographical indication only in respect of the goods for which it is registered. The said user may affix any such indication to the goods or to the packaging thereof, or use it in advertising material, on business papers concerning the goods, or on other documents.Termination of Legal ProtectionArticle 56. The legal protection of a registered geographical indication shall terminate where the relationship between the properties or peculiarities of the goods and the geographical environment ceases to exist.Expungement of RegistrationArticle 57. (1) (Amended, SG No. 43/2005) A registration of a geographical indication shall be cancelled at the request of any person who can establish a legitimate interest where:1. the said registration has been effected in violation of Article 51 (2) or (3) or Item 1 of Article 52 herein, and the said violation has been established by an effective judgment of court;2. the said registration has been effected in violation of Items 2, 3 and 4 of Article 52 herein.(2) The registration of a foreign geographical indication shall be expunged where the said indication has been expunged in the country of origin.Ex officio DeletionArticle 57a. (New, SG No. 96/2006) (1) The registration of a geographical indication of agricultural product of foodstuffs shall be deleted ex officio where the geographical indication of the agricultural products or foodstuff concerned has been entered into the European Register of Protected Designations of Origin and Protected Geographical Indications.(2) The Ministry of Agriculture and Forestry shall notify the Patent Office of the entry of the geographical indication of agricultural product or foodstuff into the European Register of Protected Designations of Origin and Protected Geographical Indications. Deletion shall be effected within one month of such notification.Cancellation of User RecordArticle 58. The recording of a user may be cancelled at the request of any scheduled user where it is established in an action procedure that the said user is using the geographical indication for designation of other goods, or that the goods produced thereby do not possess the established properties or peculiarities.Legal Effects or Expungement and CancellationArticle 59. (1) The expungement of a registration shall be effective as from the filing date of the application.(2) The cancellation of a user record shall be effective as from the date of the cancellation request.(3) Expungement or cancellation shall not affect any effective judgments of court on actions for infringement in so far as they are executed prior to the expungement or cancellation.Section IIProceedings before Patent OfficeFiling of ApplicationArticle 60. (1) An application for registration of a geographical indications shall be filed with the Patent Office.(2) An application must relate to a single geographical indication.(3) An application must contain:1. the request for registration;2. the name and address of the applicant;3. the appellation of origin or the indication of source;4. designation of the goods;5. a description of the borders of the geographical locality, and5. a description of the established properties or peculiarities of the goods and the relationship of the said properties or peculiarities with the geographical environment or place of origin.(4) The application shall be accompanied by a transcript of the order referred to in Article 54 (2) herein and a certificate issued by the relevant municipality, to the effect that the applicant carries on the production activity thereof within the geographical locality as specified.(5) Where the applicant is a non-resident, the application shall be accompanied by a document certifying registration of the geographical indication in the country of origin.(6) The application must satisfy any other requirements as may be established by an ordinance adopted by the Council of Ministers.(7) The application shall be accompanied by documentary proof of payment offees.Examination as to FormArticle 61. (1) Each application shall be subjected to an examination as to compliance with the requirements established by Article 60 herein. Should any defects be detected, the applicant shall be allowed three months to cure the said defects.(2) If the applicant fails to cure the defects within the time limit referred to in Paragraph (1), a decision to terminate the proceedings shall be made.Examination on the MeritsArticle 62. (1) Each application which satisfies the requirements as to proper form shall be subjected to an examination on the merits within 18 months.(2) Where there are grounds for refusal of registration of a geographical indication, the applicant shall be notified, stating all grounds for the refusal and allowing the applicant three months for lodgement of objections.(3) Where, within the time limit provided for in Paragraph (2), the applicant fails to lodge reasoned objections, a decision to refuse the registration shall be made.(4) Where a geographical indication is found to comply with the requirements established by this Act, a decision on registration shall be made. Any such geographical indication shall be recorded in the State Register of Geographical Indications. The applicant shall be recorded as user and shall be issued a certificate of use of the geographical indication within one month.Recording of User of Registered Geographical IndicationArticle 63. (1) Any person wherein a right to file an application vests may file an application for recording as a user of a registered geographical indication.(2) Any such application must contain:1. the request for recording as user;2. the name and address of the applicant, and3. the geographical indication and the registration number thereof.(3) Any application shall be accompanied by a certificate issued by the relevant municipality, to the effect that the applicant carries on the production activity thereof within the specified geographical locality, and a certificate issued by the relevant central-government department, to the effect that the goods produced by the applicant possess the properties or peculiarities established for the geographical indication.(4) The application shall be accompanied by documentary proof of payment offers.(5) Each application shall be examined as to compliance with the requirements established by Paragraphs (1), (2), (3) and (4). Should any defects be detected, the applicant shall be allowed three months to cure the said defects.(6) If the applicant fails to cure the defects within the time limit referred to in Paragraph (5), a decision to terminate the proceedings shall be made.(7) Where the application for recording satisfies the requirements established by Paragraphs (1), (2), (3) and (4), the applicant shall be recorded as user in the State Register of Geographical Indications, and shall be issued a certificate of use of the geographical indication.Proceedings before Appeals DepartmentArticle 64. (1) The Appeals Department shall consider:1. any appeals against decisions to refuse registration under Article 62 (3) herein;2. any appeals against decisions to terminate the proceedings under Article61 (1) and under Article 63 (6) herein.3. (new, SG No. 43/2005) any petitions for cancellation under Items 2, 3 and 4 of Article 52 herein.(2) (Amended, SG No. 43/2005) Any appeals shall be lodged and considered according to the procedure established by Articles 42, 43, 44 and 44a herein.(3) (New, SG No. 43/2005) Any petitions shall be submitted and considered according to the procedure established by Articles 42, 43, 44, 44a and 46 herein.(2) Any appeals shall be considered according to the procedure established by Article 42 (2), Articles 43 and 44 herein.Ruling on Appeals and on Petitions(Title amended, SG No. 43/2005) Article 65. (1) (Amended, SG No. 43/2005) Where an appeal is unfounded, the President of the Patent Office shall render a decision upholding the decision on refusal of registration.(2) (Amended, SG No. 43/2005) Where an appeal is well-founded, the President of the Patent Office shall revoke the decision and shall render a decision on referral of the application for reconsideration or on registration.(3) Where a decision on refusal is revoked, a decision on the merits shall be made by the President of the Patent Office upon reconsideration of the application.(4) (New, SG No. 43/2005) Where a petition is unfounded, the President of the Patent Office shall render a decision on the rejection of the said petition.(5) (New, SG No. 43/2005) Where a petition is well-founded, the President of the Patent Office shall render a decision on cancellation of registration.Extension and Renewal of Time LimitsArticle 66. (1) (Amended, SG No. 43/2005) The time limits under Article 61 (2), Article 62 (2) and Article 63 (5) herein may be extended by three months, on a single occasion, at the request of the applicant filed prior to the expiry of the said time limit. Any such request shall be ignored if not accompanied by documentary proof of payment of a fee.(2) Time limits which have been exceeded due to specific unforeseen circumstances may be renewed at the request of the applicant or user. Any such request may be filed within three months after the reason for exceeding the time limit has ceased to exist, but not later than one year after the expiry of the time limit exceeded. A decision on renewal of a time limit shall be made by the President of the Patent Office.Publication in Official BulletinArticle 67. The Patent Office shall publish all registered geographical indications and any subsequent changes relating thereto in the Official Bulletin of the Office.Judicial ReviewArticle 68. (Supplemented, SG No. 43/2005, amended, SG No. 30/2006, effective 1.03.2007) Any decisions under Article 65 (1), (4) and (5) and Article 46 herein shall be appealable before the Administrative Court - Sofia City within three months after notification.Chapter FourINTERNATIONAL REGISTRATIONInternational Registration of MarksArticle 69. (1) (Amended and supplemented, SG No. 43/2005) "International registration of marks" means a registration effected by the International Bureau of the World Intellectual Property Organization, hereinafter referred to as "the International Bureau," according to the procedure established by the Madrid Agreement and the Protocol.(2) The international registration of a mark wherein the Republic of Bulgaria is mentioned shall have the same effect as if the said mark was directly applied for and registered in the Republic of Bulgaria. Any such registration shall be effective as from the date of the international registration or from the date of registration of the territorial extension.(3) (Amended and supplemented, SG No. 43/2005) An international mark may be refused protection in the Republic of Bulgaria within the periods provided for in the Madrid Agreement and the Protocol.(4) The holder of an international registration effective within the territory of the Republic of Bulgaria, who holds an earlier, national registration of the same mark, may file a request with the Patent Office, such a request being accompanied by documentary proof of payment of a fee, for the said international registration to be considered substituted for the national registration, all rights acquired there under being preserved.International Registration of National MarksArticle 70. (1) (Amended, SG No. 43/2005) Any natural or legal person of the Republic of Bulgaria, or any person with a permanent address or an actual commercial activity in the Republic of Bulgaria, who holds a mark registered under this Act, may file an application for an international registration of the said mark.(2) Any such application shall be filed with the International Bureau care of the Patent Office.(3) International registration fees shall be paid by the applicant to the International Bureau.International Registration of Appellations of OriginArticle 71. (1) International registration of appellations of origin is a registration effected by the International Bureau according to the procedure established by the Lisbon Agreement.(2) The international registration of an appellation of origin wherein the Republic of Bulgaria is mentioned shall have the same effect as if the said appellation was directly applied for and registered in the Republic of Bulgaria. Such an appellation may not become a generic name so long as it enjoys protection in the country of origin.(3) An international appellation of origin may be refused protection in the Republic of Bulgaria within the period provided for in the Lisbon Agreement.International Registration of BulgarianAppellations of OriginArticle 72. (1) The scheduled user of a registered appellation of origin may file an application for international registration.(2) Any such application shall be filed with the International Bureau care of the Patent Office.(3) International registration fees shall be paid by the applicant to the International Bureau.Chapter Four "A"(New, SG No. 73/2006, effective on the day of entryinto force of the EU Treaty of Accession of the Republic of Bulgaria)COMMUNITY TRADE MARKCommunity Trade Mark Registration and EffectArticle 72a. (New, SG No. 73/2006) (1) A Community trade mark shall be a trade mark for goods or services which is registered in the Office for Harmonization in the Internal Market (trade marks and designs) under the conditions and by the procedure established by Council Regulation (EC) No. 40/94 on the Community trade mark, hereinafter referred to as "Regulation",(2) The Community trade mark shall have effect on the territory of the Republic of Bulgaria and the proprietor thereof shall enjoy the rights pursuant to this Act.(3) The Community trade mark shall be considered an earlier mark in the sense referred to in Article 12 (2).(4) The Patent Office of the Republic of Bulgaria shall be the central industrial property office in the sense referred to in the Regulation.(5) The President of the Patent Office shall issue a certificate of entry of representatives on industrial property before the Office for Harmonization in the Internal Market (trade marks and designs) and shall undertake the actions necessary to that end in pursuance to the requirements of the Regulation.Application for a Community Trade MarkArticle 72b. (New, SG No. 73/2006) (1) The application for a Community trade mark shall comply with the requirements of Article 26 of the Regulation.(2) The application for a Community trade mark shall be filed directly with the Office for Harmonization in the Internal Market (trade marks and designs) or through the patent Office.(3) Where the application has been filed through the Patent Office it shall be accompanied with a document attesting to a paid fee for the forwarding thereof.(4) The Patent Office shall affix a date of reception and shall forward the application to the Office for Harmonization in the Internal Market (trade marks and designs) within two weeks following the reception thereof.Conversion of Community Trade Mark into National ApplicationArticle 72c. (New, SG No. 73/2006) (1) The applicant for or proprietor of a Community trade mark may request the conversion of his Community trade mark application or Community trade mark into a national trade mark application in the Republic of Bulgaria under the conditions of Articles 108 - 110 of the Regulation.(2) Where the request referred to in Paragraph (1) is permitted by the Office for Harmonization in the Internal Market (trade marks and designs) and has been forwarded to the Patent Office, the Patent Office shall consider it pursuant to this Act, providing that the applicant submits the following within two months following receipt of notification that the transformation has been allowed:1. a translation of the documents in Bulgarian;2. a representation of the trade mark;3. a document attesting to paid fees for application and expert examination.(3) The date of filing or the priority date of application for a Community trade mark shall be considered the date of filing of the application pursuant to Paragraph (10.Protection of Community Trade MarksArticle 72d. (New, SG No. 73/2006) (1) Civil law protection in cases of infringement of rights to a Community trade mark shall follow the procedure provided in the Regulation.(2) In case pursuant to the Regulation claims and actions related to the protection of a Community trade mark are filed and requested in the Republic of Bulgaria, Bulgarian legislation shall be applicable inasmuch as the Regulation does not otherwise provide.(3) The claims referred to in Paragraph (2) shall fall within the jurisdiction of Sofia City Court and the Sofia Court of Appeal as a second instance, which shall be Community trade mark courts in the sense referred to by the Regulation.Subsidiary Application of DecisionsArticle 72e. (New, SG No. 73/2006) The provisions of the Regulation shall apply for any issues not provided under this Chapter.Chapter FivePROTECTION OF RIGHTS TO MARKS AND GEOGRAPHICAL INDICATIONSSection IInfringementsInfringement of Right to Registered MarkArticle 73. (1) Any use in the course of trade within the meaning given in Article 13 herein of a sign without the consent of the proprietor thereof shall constitute an infringement.(2) The following shall likewise constitute an infringement:1. the affixation of the mark to a material intended to be used for labelling or packaging, for business papers or for advertising of goods or services if the person who performs such acts knows or has reasonable ground to know that the said mark has been affixed without the consent of the proprietor thereof;2. the manufacture of a means expressly intended or adapted for reproduction of the mark, or for the possession or for the stocking of such means, if the person who performs such acts knows or has reasonable ground to know that the said means serves or will serve for manufacture of goods or of a material referred to in Item 1 without the consent of the proprietor of the mark.Infringement of Registered Geographical IndicationArticle 74. (1) Any use of a registered geographical indication according to Article 53 (2) herein shall constitute an infringement.(2) Any use of a registered geographical indication by a person not recorded as a user thereof shall likewise constitute an infringement.Section IICivil Law ProtectionRight of ActionArticle 75. (1) (Amended, SG No. 73/2006) The proprietor of a mark and the exclusive licensee shall have independent right of action for infringement.(2) (Repealed, SG No. 73/2006) .(3) A non-exclusive licensee may bring an action solely with the consent of the holder, unless otherwise provided for in the agreement.(4) The right of action shall furthermore vest in any scheduled user of a registered geographical indication.Actions for InfringementArticle 76. (1) The following actions may be brought for infringement of rights under this Act:1. a declaratory action for establishment of the fact of the infringement;2. an action for cessation of the infringement;3. an action for damages.4. (new, SG No. 73/2006) an action for seizure and destruction of the goods subject to the infringement, as well as the means for the perpetration thereof.(2) (Amended, SG No. 73/2006) Concurrently with an action under Paragraph (1), the claimant may also claim by judicial procedure:1. (amended, SG No. 73/2006) submission thereto of the goods subject to infringement;2. (new, SG No. 73/2006) reimbursement of the costs incurred thereby related to the storage and destruction of the goods subject to infringement;3. (renumbered from Item 2, amended, SG No. 73/2006) publication of the disposition of the court judgment in two daily newspapers and a viewing time of a television organization with national coverage determined by the court at the expense of the offender.Determination of CompensationArticle 76a. (New, SG No. 43/2005, amended, SG No. 73/2006) (1) A compensation shall be due for all pecuniary and non-pecuniary damages sustained and all missed benefits that are direct and immediate consequence of the infringement(2) In determining the amount of the compensation the court shall also take into consideration all circumstances related to the infringement, as well as the revenue received by the perpetrator as a result of the infringement.(3) The court shall adjudge a fair compensation that shall have preventive and warning action on the perpetrator and on the other members of the public.Special Cases of IndemnityArticle 76b. (New, SG No. 73/2006) (1) Where the claim is established upon reason but there are no sufficient data concerning the extent thereof the claimant may request in compensation:1. from BGN 500 or exceeding that amount but not exceeding BGN 100,000, the concrete amount being at the discretion of the court under the conditions of Article 76a (2) and (3), or2. the equivalent in retail prices of legally produced goods, identical or similar to the goods subject to the infringement.(2) The revenue received as a result of the infringement shall also be taken into consideration at determining the compensation referred to in Paragraph (1).Seizure of Goods Subject to InfringementArticle 76c. (New, SG No. 73/2006) Seizure of the goods referred to in Item 4 of Article 76 (1) subject to an infringement may be requested both in regard to goods found in a certain location and in regard to goods found in the retail networkLiabilityArticle 76d. (New, SG No. 73/2006) Legal persons and sole traders shall bear civil liability for the infringement of rights under this Act culpably perpetrated by the persons that represent them, employees thereof or persons recruited thereby. In this case the guilt shall be assumed until otherwise proven.Provision of Evidence on Claims and Injunction ProceduresArticle 76e. (New, SG No. 73/2006) (1) Where a claimant has submitted evidence in support of his claims but has also quoted other evidence of significance for the resolution of the case, which is under the control of the defendant, the court may, upon request of the claimant, obligate the defendant to submit this evidence.(2) The court may, under the conditions of Paragraph (1) at the request of the claimant, obligate the defendant to provide an opportunity for acquaintance with bank, financial and commercial documents under the control thereof.(3) The claimant shall be obligated not to broadcast the information in the documents referred to in Paragraph (2).(4) The presentation of evidence for single or one-time use of a mark or geographical indication protected under this Act shall be accepted as sufficient grounds for application of the provisions of Paragraphs (1) and (2).(5) The existence of the circumstances related to a claimed infringement may also be established by presentation of evidence for single or one-time unauthorised use of a mark or geographical indication protected under this Act.Request for Information about Origin and DistributionNetworks in Case of InfringementArticle 76f. (New, SG No. 73/2006) (1) The court may, at the request of the claimant, obligate the defendant or a third person to provide information concerning circumstances that are of relevance for the resolution of the case.(2) A third person as referred to in Paragraph (1) shall be any person that:1. holds goods subject to an infringement, or2. provides services leading to an infringement, or3. uses services that constitute an infringement, or4. has been quoted by a person referred to in Items 1 to 3 as a participant in the making, manufacture or distribution of these goods or services.(3) The data referred to in Paragraph (1) may include:1. the names and addresses of the producers, distributors, suppliers and other persons who were previously holders of the goods or services, as well as of the assumed wholesale and retail distributors;2. data about the produced, supplied, received or ordered quantities, as well as about the revenue received from the said goods or services.(4) The provision of Paragraph (1) shall not apply when the implementation thereof may lead to infringement of the provision of another act.(5) The provisions of Paragraphs (1) and (3) shall be applied only to actions perpetrated for direct or indirect economic or commercial benefit.Interim Measures(Title amended, SG No. 59/2007) Article 76g. (New, SG No. 73/2006) (1) (Amended, SG No. 59/2007) Upon infringement of the right to a mark or infringement of a registered geographical indication, or where there is sufficient information to believe that any such infringement will be committed or some evidence will be lost, destroyed or concealed, the court, acting at the request of the holder of the right or of the exclusive licensee, may furthermore admit one of the following injunctions without notifying the respondent party:1. prohibition of performance of any acts which allegedly constitute or will constitute wrongful use of a mark or a geographical indication;2. seizure of the goods which allegedly wrongfully bear a mark or geographical indication, as well as of other evidence of significance for establishment of the infringement;3. recall of the material or means referred to in Article 73 (2) herein;4. sealing of the premise wherein the infringement is allegedly committed or will be committed.(2) (Amended, SG No. 59/2007) The admission, imposition and lifting of interim measures shall follow the procedure established by Article 389 through 403 of the Code of Civil Procedure, with the exception of Article 398 (2), sentence one, and inasmuch as this Act does not provide otherwise.(3) (Amended, SG No. 59/2007) The interim measure consisting of a prohibition of performance of acts shall be imposed by means of communication of the said injunction by the court.(4) (Amended, SG No. 59/2007) The interim measures referred to in Items 2, 3 and 4 of Paragraph (1) shall be imposed by enforcement agents who shall perform the act simultaneously with the service of a notice of imposition of the measure within three days after receipts of the request from the claimant application to the law enforcement agent. The interim measure admitted for prevention of a forthcoming infringement shall be imposed within a time limit conforming to the purpose of the said interim measure. Seized property shall be handed over for safekeeping by list to the claimant who may only use it as evidence.(5) (Amended, SG No. 59/2007) The claimant or a representative thereof shall have the right to be present and to assist in the imposition of interim measures.(6) (Amended, SG No. 59/2007) The interim measure referred to in Item 1 of Paragraph (1) may also be imposed in relation to third persons for whom there is sufficient evidence that they are conducive to the activity for which it is claimed that it constitutes or will constitute unlawful use.(7) The proprietor of the respective right or the exclusive licensee shall be obligated not to broadcast the information that has come to his knowledge by or on the occasion of the measures referred to in Paragraph (1).CognizanceArticle 77. (Amended, SG No. 30/2006, effective 1.03.2007, SG No. 73/2006, effective 13.07.2006) Any actions under this Act shall be cognizable in the Sofia City Court.Section IIIBorder ControlsGrounds and Field of ApplicationArticle 78. (1) (Amended, SG No. 43/2005, No. 73/2006) A proprietor of a mark, as well as an exclusive licensee may request the customs authorities to detain goods transported through the state border of the Republic of Bulgaria which can be reasonably suspected to violate a right protected by this Act.(2) (Amended, SG No. 43/2005) The measures referred to in Paragraph (1) shall not be applied in respect of any goods which:1. (repealed, SG No. 73/2006) ;2. (repealed, SG No. 73/2006) ;3. (amended, SG No. 73/2006) are carried for a non-commercial purpose as part of the luggage of passengers, providing they are in quantities determined for duty free import or export;4. are perishable.(3) (Amended, SG No. 43/2005) The customs authorities shall not detain any goods which do not bear a trademark which is identical with or similar to the trademark of the petitioner.(4) (Repealed, SG No. 43/2005). (5) (Amended, SG No. 43/2005) The provisions of Paragraphs (1) and (2) shall furthermore apply to the detention of any goods that unlawfully bear a registered geographical indication or an imitation thereof. Any scheduled user may submit a request for detention.(6) (New, SG No. 73/2006) The provisions of this Section shall apply in relation to all goods presented before the customs authorities, regardless whether a customs regime has been put into action in relation to them.Conditions for Application of Border ControlsArticle 79. (Amended, SG No. 43/2005) (1) Border controls shall be applied acting on a request in writing by the holder of the right to a trademark or by the scheduled user of the geographical indication, as well as on the initiative of the customs authorities. Where the holder of the right to the trademark or the user of the geographical indication has residence or registered office outside Bulgaria, the said holder or user must state an address for service within the territory of the Republic of Bulgaria.(2) The request referred to in Paragraph (1) must contain a detailed description of the goods. Any such request shall be accompanied by a copy of the certificate of registration of the mark or the geographical indication and a certificate attesting that the registration is effective, both documents having been issued by the Patent Office.(3) The customs authorities shall collect fees at amounts fixed by the Council of Ministers for consideration of the request and for application of border controls.(4) (Amended, SG No. 73/2006) Where they establish existence of the circumstances referred to in Article 78 (1) the customs authorities shall detain the goods. The goods shall be detained by a customs document issued by the competent customs authorities. These shall immediately advise the claimant, the sender and the recipient of the goods about the detention. The same persons shall be entitled to review the detained goods and to receive information thereabout.(5) (Amended, SG No. 73/2006) In case within ten work days after having been notified pursuant to Paragraph (4) the claimant fails to present evidence of the initiation of a procedure before the respective court for resolution of the dispute in essence or that an injunction has been admitted, the customs authorities shall release the detained goods, providing that all requirements for the customs assignment have been met. The time limit may be extended by another ten work days upon the reasoned request of the applicant.(6) (New, SG No. 73/2006) The competent authorities before whom the procedure referred to in Paragraph (5) has been launched shall adjudge on an appeal of the interested party whether the measures on detention should be confirmed, amended or revoked.(7) (New, SG No. 73/2006) The refusal of the customs authorities to fulfil the request shall be liable to appeal before Sofia City Court under the procedure of the Administrative Procedure Code.(8) (New, SG No. 73/2006) The customs authorities shall not be liable where, upon the control exercised thereby, they have been unable to identify the goods whose detention is requested, or for any actions taken thereby in good faith for detention of the said goods.Actions at the Initiative of Customs AuthoritiesArticle 79a. (New, SG No. 73/2006) (1) Customs may, at their own initiative or upon the request of another state authority, detain goods for which there is reason to believe that they infringe upon a right protected under this Act.(2) In the cases referred to in Paragraph (1) the customs authorities shall immediately notify the persons pursuant to Article 79 (1), the sender and the recipient of the goods and shall give them the opportunity to inspect the detained goods. The customs authorities may request from the proprietors of rights any information for an expert examination.(3) The decision referred to in Paragraph (1) shall be liable to appeal before Sofia City Court under the procedure of the Administrative Procedure Code.(4) In case within ten work days after the goods have been detained a procedure before the respective court for resolution of the dispute in essence has not been initiated or there is no judgment of the court for admission of an injunction, the customs authorities shall release the detained goods, providing that all requirements for the customs assignment have been met.(5) The customs authorities shall not be liable for the actions on the detention of the goods undertaken thereby in good faith.Additional RegulationArticle 80. The procedure and manner for application of this Section shall be established by an ordinance of the Council of Ministers.Implementing Council Regulation (EC) No. 1383/2003Article 80a. (New, SG No. 73/2006, effective from the date of accession of the Republic of Bulgaria to the European Union) The provisions of this Section shall apply only in case and inasmuch as they do not contradict the provisions of Council Regulation (EC) No. 1383/2003 concerning customs action against goods found to have infringed rights protected under this Act.Section IVAdministrative Penalty ProvisionsAdministrative Violations and SanctionsArticle 81. (Corrected, SG No. 82/1999, amended, SG No. 43/2005, No. 73/2006) (1) Any person, who uses in the trade referred to in Article 13 any goods or services bearing a sign that is identical with or similar to a registered mark without the consent of the proprietor of the said mark, shall be liable to a fine of BGN 500 or exceeding this amount but not exceeding BGN 1,500, and any such sole trader or legal person shall be liable to a pecuniary penalty of BGN 1,000 or exceeding this amount but not exceeding BGN 3,000.(2) A repeated violation under Paragraph (1) shall be punishable by a fine of BGN 1,500 or exceeding this amount but not exceeding BGN 3,000 or, applicable to sole traders and legal persons, by a pecuniary penalty of BGN 3,000 or exceeding this amount but not exceeding BGN 5,000.(3) "Repeated violation" means any violation which is committed within one year after the entry into effect of a penalty decree whereby the offender has been penalized for a violation of the same type.(4) (Repealed, SG No. 73/2006).(5) The goods referred to in Paragraph (1) shall be confiscated, regardless of the ownership thereof, and shall be delivered for destruction, and the proprietor of the mark or a person authorized thereby may be present at the destruction.(6) (Repealed, SG No. 73/2006).Ascertainment of ViolationsArticle 82. (New, SG No. 43/2005) (1) The violation shall be ascertained by a written statement which shall be drawn up by an official designated by an order of the President of the Patent Office, after conduct of an inspection with the cooperation of the authorities of the Ministry of Interior.(2) An inspection shall not be conducted and administrative penalty proceedings shall not be instituted if proceedings under Article 25 or 26 herein are in progress.Official's PowersArticle 83. (New, SG No. 43/2005) (1) The official referred to in Article 82 (1) herein shall have the right to:1. require access to the facilities subject to control;2. require the documents needed in connection with the inspections as implemented and take samples for expert evaluation.(2) The official shall be obligated:1. to record accurately and comprehensively the facts upon the inspection as conducted in the written statement of violation;2. to safeguard any official, manufacturing and commercial secret as has come to the knowledge thereof in connection with the inspections conducted;3. not to disclose any data obtained in the course of inspections;4. to use the information obtained in the course of inspections solely for the purposes of the proceedings on the violation.Duty to CooperateArticle 84. (New, SG No. 43/2005) The persons whereat an inspection referred to in Article 82 herein is conducted shall be obligated:1. to afford unobstructed access to the distributive trade establishments, warehouses and manufacturing facilities and premises inspected;2. to provide the documents and evidence required by the official;3. to preserve the goods left for safe-keeping;4. to render cooperation to the officials in connection with the inspection as conducted.Imposition of Administrative SanctionsArticle 85. (New, SG No. 43/2005) The penalty decrees shall be issued by the President of the Patent Office or by an official authorized thereby.Implementation of Administrative SanctionsArticle 86. (New, SG No. 43/2005) (1) The sanctions of fine or pecuniary penalty shall be complied with voluntarily within seven days after entry into effect of the penalty decree whereby the said sanctions have been imposed, and the amount due shall be paid at the Cash Department or shall be credited to an account of the Patent Office.(2) (Amended, SG No. 105/2005) Upon expiry of the time limit referred to in Paragraph (1), a copy of the penalty decree shall be transmitted to the State Receivables Collection Agency for coercive enforcement of the fine of pecuniary penalty as imposed according to the procedure established by the Tax and Social Insurance Procedure Code .(3) Upon entry into effect of the penalty decree or the judgment of court, the goods confiscated shall be delivered for destruction to the authorities of the Ministry of Interior.Administrative Penal Liability for Infringements ofGeographical IndicationArticle 87. (New, SG No. 43/2005) The provisions of this Section shall furthermore apply in the cases of unlawful use of a registered geographical indication or an imitation thereof.Application of Administrative Violations and Sanctions Act Article 88. (New, SG No. 43/2005) Save insofar as otherwise provided for in this Section, the ascertainment of violations, the issuing, appeal against and execution of penalty decrees shall follow the procedure established by the Administrative Violations and Sanctions Act. SUPPLEMENTARY PROVISIONS(Title amended, SG No. 73/2006) 1. Within the meaning given by this Act:(1) "Person" shall be a natural or a legal person.(2) "Local industrial property agent" shall be any person who is an agent within the meaning given by Article 3 of the Patents Act. (3) (Amended, SG No. 43/2005, No. 73/2006) "Well-known mark" shall be a mark within the meaning given by Article 6 bis of the Paris Convention.(4) "Paris Convention" shall be the Paris Convention for the Protection of Industrial Property, signed in Paris on 20 March 1883, as revised and amended.(5) "Official or officially recognized exhibition" shall be an official or officially recognized exhibition within the meaning given by the Convention of 22 November 1928 relating to international exhibitions organized in States party to the Paris Convention.(6) "International Classification" shall be the International Classification of Goods and Services for the Purposes of the Registration of Marks, established by the Nice Agreement of 15 June 1957, as revised and amended;(7) (Amended, SG No. 43/2005) "Madrid Agreement" shall be the Madrid Agreement Concerning the International Registration of Marks, signed in Madrid on 14 April 1891, as revised and amended, ratified by Decree No. 4312 dated 3 December 1984.(7a) (New, SG No. 43/2005) "Protocol" shall be the Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks, signed in Madrid on 27 June 1989, ratified by an Act of the Thirty-eighth National Assembly on 28 March 2001.(8) "Lisbon Agreement" shall be the Lisbon Agreement for the Protection of Appellations of Origin and their International Registration of 31 October 1958, as revised and amended, ratified by Decree No. 523 dated 11 March 1975.(9) "Imitation of a mark" shall be a sign that does not differ materially from a registered mark.(10) "Imitation of a geographical indication" shall be an indication that does not differ materially from a registered indication.(11) "Improper use of a geographical indication" shall be unlawful use.(12) (New, SG No. 73/2006) "Import or export of goods" shall be the actual transfer through the border of the Republic of Bulgaria of goods bearing a sign identical or similar to a registered mark or registered geographical indication, or the imitation thereof, regardless of whether a customs regime has been initiated in relation to these goods. 1a. (New, SG No. 73/2006) The provisions of this Act applicable to the European Union member-states shall also be applicable to the other states in the European economic space.TRANSITIONAL AND FINAL PROVISIONS 2. (1) This Act shall furthermore also to any applications for registration of marks and appellations of origin whereon no decision on registration, refusal or expungement has been made at the time of entry of this Act into force.(2) Any pending applications under Article 17 of the Trademarks and Industrial Designs Act shall be considered according to the hitherto effective procedure.(3) Any rights under Article 9 of the Trademarks and Industrial Designs Act may be applied for within one year after the entry of this Act into force at the request of the interested parties. 3. Any appellations of origin, registered under the Trademarks and Industrial Designs Act, shall be re registered under this Act within two years after the entry of this Act into force. 4. This Act shall supersede Sections I, III, IV and V of the Trademarks and Industrial Designs Act (promulgated in the State Gazette No. 95 of 1967; amended and supplemented in No. 55 of 1975, No. 56 of 1986 and No. 27of 1993). 5. The following amendments shall be made in the Commerce Act (promulgated in the State Gazette No. 48 of 1991; amended and supplemented in No. 25 of 1992, Nos. 61 and 103 of 1993, No. 63 of 1994, No. 63 of 1995,Nos. 42, 59, 83, 86 and 104 of 1996, Nos. 58, 100 and 124 of 1997, Nos. 52 and 70 of 1998, Nos. 33, 42 and 64 of 1999):(1) In Article 587 (1), the word "trademark" shall be replaced by "mark", and "topology of an integrated circuit" shall be inserted after "mark";(2) Article 588 shall be repealed;(3) In the heading and in Article 594 (1) and (2), the word "trademark" shall be replaced by "mark". 6. In the Penal Code (promulgated in the State Gazette No. 26 of 1968; corrected, No. 29 of 1968; amended and supplemented in No. 92 of 1969, Nos.26 and 27 of 1973, No. 89 of 1974, No. 95 of 1975, No. 3 of 1977, No. 54 of1978, No. 89 of 1979, No. 28 of 1982; corrected in No. 31 of 1982; amended and supplemented in No. 44 of 1984, Nos. 41 and 79 of 1985; corrected in No. 80 of 1985; amended and supplemented in No. 89 of 1986; corrected in No. 90 of 1986; amended in Nos. 37, 91 and 99 of 1989, Nos. 10, 31 and 81 of 1990, Nos. 1 and 86 of 1991; corrected in No. 90 of 1991; amended and supplemented in No. 105 of 1991, No. 54 of 1992, No. 10 of 1993, No. 50 of 1995; (modified by) Constitutional Court Judgment No. 19 of 1995, (promulgated in the State Gazette) No. 97 of 1995; amended and supplemented in No. 102 of 1995, No. 107 of 1996, No. 62 of 1997, No. 85 of 1997; (modified by) Constitutional Court Judgment No. 19 of 1997, (promulgated in the State Gazette) No. 120 of 1998; amended and supplemented in Nos. 83, 85, 132, 133 and 153 of 1998, Nos. 7 and 51 of 1999), Article 227 shall be amended to read as follows:"Article 227. Any person, who uses a mark, an industrial design or a topology of integrated circuits in the course of trade without the consent of the holder, shall be punished by deprivation of liberty of a maximum term of three years or by a fine of a maximum amount of BGN 5,000." 7. In Article 12 (3) of the Protection of New Plant Varieties and Animal Breeds Act (promulgated in the State Gazette No. 84 of 1996; amended in No.27 of 1998), the terms "trademark, appellation of origin" shall be replaced by "mark, geographical indication". 8. In Article 33 (2) of the Protection of Competition Act (promulgated in the State Gazette No. 52 of 1998; (modified by) Constitutional Court Judgment No. 22 of 1998, (promulgated in) No. 112 of 1998, the word "trademark" shall be replaced by "marks." 9. In Item 12 (a) of 1 of the (Supplementary Provision of the) Radio and Television Act (promulgated in the State Gazette No. 138 of 1998; (modified by Constitutional Court Judgment No. 10 of 1999, (promulgated in) No. 60 of 1999), "the trademark" is replaced by "marks." 10. In Item 2 of Article 19 (2) of the Accountancy Act (Promulgated in State Gazette No. 4/1991; amend. in No. 26/1992, No. 55/1993, Nos. 21, 33, 59/1996, No. 52/1997, No. 21/1998, No. 57/1999), the words "company and trade marks" shall be replaced by "marks". 11. In Item 18 of 1 of the Physical Education and Sports Act (promulgated in the State Gazette No. 58 of 1996; (modified by) Constitutional Court Judgment No. 8 of 1997, (promulgated in) No. 53 of 1997; amended in No. 124 of 1998, No. 51/1999), the word "trademark" shall be replaced by "mark". 12. Littera (k) of Article 4 of the Stamp Duty Act (promulgated in the Transactions of the Presidium of the National Assembly No. 104 of 1951; amended and supplemented in No. 89 of 1959, No. 21 of 1960; State Gazette No. 53 of 1973, No. 87 of 1974, No. 21 of 1975, No. 21 of 1990, No. 55 of 1991, No. 100 of 1992, Nos. 69 and 87 of 1995, Nos. 37, 100 and 104 of 1996, No. 82 and 86 of 1997, No. 133 of 1998) shall be amended to read as follows:"(k) for the grant of patents for inventions and utility models, for the issuance of certificates for new plant varieties and animal breeds, for registration, renewal, transfer and other such of marks and industrial designs, for registration and other such of geographical indications and topographies of integrated circuits." 13. In Item 8 of 1 of the (Supplementary Provisions) of the Corporate Income Tax Act (promulgated in the State Gazette No. 115 of 1997; corrected in No. 19 of 1998; amended and supplemented in Nos. 21 and 153 of 1998, Nos. 12, 50 and 51 of 1999), the word "trademark" shall be replaced by "mark". 14. In Article 31 (1) of the Cooperatives Act (promulgated in the State Gazette No. 63 of 1991; amended and supplemented in Nos. 34 and 55 of 1992,No. 63 of 1994, Nos. 59 and 103 of 1996, No. 52 of 1997, No. 52 of 1998) , the words "trademarks" shall be replaced by "marks". 15. The Council of Ministers shall adopt ordinances on the filing, drafting and examination of applications for registration of marks and geographical indications, as well as establishing a procedures and manner for application of border controls and the rate schedule for the fees covered under Article 4 herein. 16. This Act shall enter into force three months after the promulgation thereof in the State Gazette. 17. The implementation of this Act shall be entrusted to the President of the Patent Office.Act to Amend and Supplement the Marks and Geographical Indications Act(Promulgated, SG No. 43/2005, effective 21.08.2005, amendedSG No. 96/2006, effective 1.01.2007)TRANSITIONAL AND FINAL PROVISIONS 43. Any application for registration of a mark, which is not be examined as to form prior to the entry of this Act into force, shall be published in accordance with Article 36a [of the Marks and Geographical Indications Act]. 44. Any petitions for revocation of registration, which are submitted prior to the entry of this Act into force, shall be considered in accordance with this Act. 45. (Repealed, SG No. 96/2006) . 46. This Act shall enter into force three months after the promulgation thereof in the State Gazette.TRANSITIONAL AND FINAL PROVISIONSof the Administrative Procedure Code(SG, No. 30/2006, effective 12.07.2006). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76. The Marks and Geographical Indications Act (Promulgated, State Gazette No. 81/1999, corrected, SG No. 82/1999, amended SG No. 28/2005, amended and supplemented, SG No. 43/2005, amended, SG No. 94/2005, SG No. 105/2005) shall be amended as follows:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4. Everywhere in the act the words "the Administrative Procedure Act" shall be replaced by "the Administrative Procedure Code".TRANSITIONAL AND FINAL PROVISIONSto the Act to Amend and Supplement theMarks and Geographical Indications Act(SG No. 73/2006, effective 6.10.2006) 26. (Effective from the date of accession of the Republic of Bulgaria to the European Union) (1) Community trade marks that are valid by the date of accession of the Republic of Bulgaria to the European Union, as well as the applications for Community trade marks filed by the said date, shall be valid on the territory of the Republic of Bulgaria as of this date.(2) A registration of a Community trade mark that has been declared prior to the date of accession may not be refused on the basis of any absolute grounds in the sense referred to in Article 7 (1) of the Regulation, providing that the application of these grounds is solely due to the fact of accession.(3) Notice of opposition to the application for registration of a Community trade mark, submitted within a period of six months prior to the date of accession, may be given pursuant to Article 42 of the Regulation in case the earlier mark or the earlier right in the sense referred to in Article 8 of the Regulation have existed in the Republic of Bulgaria prior to the date of accession and providing these have been acquired in good faith.(4) A Community trade mark may not be expunged in case:1. the grounds thereof in the sense referred to in Article 51 of the Regulation are due solely to the fact of accession of the Republic of Bulgaria, or2. the earlier national right in the sense referred to in Article 52 (1) and (2) of the Regulation has been registered, applied for or acquired in the Republic of Bulgaria prior to the date of accession thereof.(5) Use of a Community trade mark under the conditions provided by Articles 106 and 107 of the Regulation may be prohibited by a claim filed before the court referred to in Article 72d (3) in case the earlier mark has been registered or applied for prior to the date of accession, or the earlier right has been acquired therein prior to this date.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28. This Act shall enter into force one month after its promulgation in the State Gazette with the exception of 7, 12, 21 and 26, which shall enter into force on the date of accession of the Republic of Bulgaria to the European Union, as well as of 17, which shall enter into force on July 13, 2006. For more information visit www.solicitorbulgaria.com id: 306 Fri, 01 Aug 2008 02:50:19 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-marks-and-geographical-indications-act http://web.solicitorbulgaria.com/index.php/bulgarian-marks-and-geographical-indications-act http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/MARKS_AND_GEOGRAPHICAL_INDICATIONS_ACT.JPG EUR http://web.solicitorbulgaria.com/index.php/bulgarian-marks-and-geographical-indications-act legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) 1. (Repealed, SG No. 12/1993).GENERAL PARTI. PRINCIPAL RULES2. (Repealed, SG No. 27/1973).3. (Repealed, SG No. 12/1993).4. (Repealed, SG No. 12/1993).II. SOURCES OF OBLIGATIONS1. Acts for national economy planning and regulation5. (Repealed, SG No. 12/1993).6. (Repealed, SG No. 12/1993).7. (Repealed, SG No. 12/1993).2. Contractsa) Conclusion of contracts8. (Amended, SG No. 12/1993) A contract is an agreement between two or more persons to create, regulate or terminate a legal relationship between them.Persons shall use of their rights to satisfy their interests. They shall not exercise such rights against the interests of society.9. (Amended, SG No. 12/1993) The parties may determine the content of the contract insofar as it does not contravene the mandatory provisions of the law and good morals.10. (Repealed, SG No. 83/1999).Interest rates may be negotiated up to an amount determined by the Council of Ministers. If higher rates are negotiated, they shall be reduced by operation of law… For more information visit http://www.solicitorbulgaria.com id: 304 1. (Repealed, SG No. 12/1993).GENERAL PARTI. PRINCIPAL RULES2. (Repealed, SG No. 27/1973).3. (Repealed, SG No. 12/1993).4. (Repealed, SG No. 12/1993).II. SOURCES OF OBLIGATIONS1. Acts for national economy planning and regulation5. (Repealed, SG No. 12/1993).6. (Repealed, SG No. 12/1993).7. (Repealed, SG No. 12/1993).2. Contractsa) Conclusion of contracts8. (Amended, SG No. 12/1993) A contract is an agreement between two or more persons to create, regulate or terminate a legal relationship between them.Persons shall use of their rights to satisfy their interests. They shall not exercise such rights against the interests of society.9. (Amended, SG No. 12/1993) The parties may determine the content of the contract insofar as it does not contravene the mandatory provisions of the law and good morals.10. (Repealed, SG No. 83/1999).Interest rates may be negotiated up to an amount determined by the Council of Ministers. If higher rates are negotiated, they shall be reduced by operation of law to the above amount.Interest charged on overdue interest payments shall be determined in accordance with Bulgarian National Bank regulations.11. (Repealed, SG No. 12/1993).12. The parties shall act in good faith in conducting negotiations and concluding contracts. Otherwise they shall owe damages.13. The offerer shall be bound by the offer until the expiration of the time period which is specified therein or is usually required according to the circumstances for the acceptance to reach the offerer.If an offer is withdrawn, it shall have no effect if the withdrawal reaches the offeree before or at the same time as the offer.In case of there is no time period for acceptance, an offer made to a person present shall lose its force if it is not accepted immediately, whereas an offer made to a non-present person shall lose its force after the expiration of such a period of time as may be normally necessary, according to the circumstances, for the acceptance to reach the offerer.An acceptance shall have no effect if the withdrawal reaches the offerer before or at the same time as the acceptance.If it is evident that a delayed acceptance was sent on time, the contract shall be deemed concluded unless the offerer notifies immediately the offeree that he considers such acceptance overdue.14. A contract shall be deemed concluded from the moment the acceptance reaches the offerer.If after the acceptance has been sent any of the parties dies or falls into a state which constitutes grounds for placement under judicial disability, the contract shall be deemed concluded.A contract shall be considered concluded at the place where the offer was made.15. (Repealed, SG No. 12/1993).16. (Amended, SG No. 12/1993) Where a proposal contains general terms, the acceptance shall be effective provided it confirms the general terms in writing.In case of a discrepancy between registered provisions and provisions contained in the general terms, the former shall prevail even though the latter may not have been deleted.In cases of contracts involving prolonged performance, any amendment or replacement of the general terms shall be binding upon the other party under an existing contract only if this other party has been notified of such amendment or replacement and it has not rejected them within a sufficient period of time granted it in writing.17. If the parties conceal an agreement reached between them with a simulated agreement, the rules concerning the concealed agreement shall apply, provided it meets the validity requirements.Rights which have been acquired in good faith by third parties from the transferee under a simulated agreement shall be preserved unless such rights are rights on immovable property acquired after registration of the action for establishing the simulation.This provision shall also apply to the creditors of the transferee under a simulated agreement who have placed an attachment on the object which it concerns.18. Contracts for the transfer of ownership or the creation of other real rights on immovable property must be executed with notarial deeds.19. A preliminary contract preceding the conclusion of a final contract for which a notarial deed or notarial certification is required shall be concluded in writing.A preliminary contract shall contain provisions concerning the material terms of the final contract.Either party to a preliminary contract may bring an action for conclusion of the final contract. In this case the contract shall be deemed concluded as of the moment of entry into force of the ruling of the court.20. In interpreting contracts, the real common will of the parties shall be sought. Individual provisions shall be interpreted in their interconnection and each one of them shall be understood in the context of the overall contract by taking into account the purpose of the contract, usage and good faith.b) Effects of Contracts20a. (New, SG No. 12/1993) Contracts shall have the force of a law for the parties which have concluded them.Contracts may be amended, terminated, avoided or revoked only by mutual consent of the parties or on grounds provided for in the law.21. Contracts shall have effects between the parties, and with respect to third parties they shall have effects only in the cases envisaged by law.Third parties impeding in bad faith the performance of contracts shall owe compensation.22. Arrangements having a third party as beneficiary may be reached. A third party beneficiary arrangement may not be revoked after the third party has stated to the promisor or to the promisee that it wishes to make use of the said arrangement. The promisee may reserve the right to revoke such an arrangement or to replace the third party.The promisor may plead against the third party his defences which arise from the contract, but not defences arising from other relationships with the promisee.If the contract from which the third party derives his right is repealed pursuant to an action by the promisee's creditors, the third party is obliged to give back only what the promisee gave under the contract.23. A person who has promised an obligation or an act of a third party is obliged to compensate the other party if the third party refuses to honour the obligation or to perform the promised act.24. In case of contracts for the transfer of ownership and for creating or transferring another real right over a specific chattel, the transfer or the creation shall occur on the strength of the contract itself and shall not require the chattel to be delivered.In case of contracts for the transfer of ownership of fungibles, ownership shall be transferred when the fungibles are specified by agreement of the parties and, in the absence of such agreement, when they are delivered.25. The effects or the termination of a contract may be made dependent on a future uncertain event. A condition shall be deemed to be fulfilled if the party that is interested in its nonfulfillment has acted in bad faith to prevent its occurrence.The fulfilment of the condition shall be retroactive.c) Invalidity of contracts26. (Amended, SG No. 12/1993) A contract which contravenes or circumvents the law, as well as a contract which infringes upon good morals, including a contract on an as yet nonexistent inheritance, shall be null and void.Null and void shall also be contracts with an impossible subject, contracts which lack consent, the form prescribed by law, a consideration, as well as simulated contracts. The consideration shall be presumed to exist until proven otherwise.(Paragraph 3, repealed, SG No. 30/1990).(Paragraph 4, amended, SG No. 12/1993) The nullity of parts of a contract shall not entail nullity of the entire contract, provided the null provisions are replaced by operation of law with mandatory rules of the law, or when it can be assumed that the transaction would have been concluded even without its null parts.27. Contracts concluded by persons lacking capacity, or by their agents without observing the requirements established for such agents, as well as contracts concluded under mistake, fraud, threat or financial duress shall be invalidatable.28. A mistake as to the subject shall represent grounds for invalidation of the contract provided the mistake concerns material properties of the subject. A mistake as to the person shall represent grounds for invalidation provided the contract was concluded with respect to the person.A mistake which is limited to the calculations shall not represent grounds for invalidation and shall be subject to correction.The party claiming invalidation must compensate the other party for the damages suffered by it as a result of the conclusion of the invalidated contract, unless the former party proves that it had no fault for the mistake or that the other party knew about the mistake.29. Fraud shall represent grounds for invalidating a contract provided one of the parties was misled into concluding it through intentional misrepresentation.Where the fraud originates from a third party the deceived party may claim invalidation of the contract only if upon conclusion of the contract the other party knew or could not have not known of it.30. (Amended, SG No. 12/1993) Threat shall serve as grounds for contract invalidation provided one of the parties was forced by the other party or by a third party to enter into the contract through provoking a well-founded fear.31. A contract entered into by a person possessing capacity shall be subject to invalidation provided that upon conclusion of the contract that person could not understand or could not guide his acts.The invalidation of such a contract may not be claimed after the death of such a person unless his judicial disability was requested prior to his death or unless the lack of capacity is evident from the contract itself.32. Invalidation may be claimed only by a party in whose interest the law allows such invalidation.The right to claim invalidation shall be limited to three years. The limitation period shall commence on the date when the person came of age, the judicial disability was lifted, the mistake or fraud was discovered or the threat ceased, and for all other cases - from the date of conclusion of the contract.A defendant to an action for enforcing performance of a contract subject to invalidation may claim the invalidation by means of a defence even after the limitation period has expired.33. A contract entered into because of financial duress under clearly unfavourable terms shall be subject to invalidation. The court may invalidate such a contract fully or only for the future. The invalidation shall not be admissible if the other party proposes to repair the damage.The right to claim invalidation shall be limited to one year from the date of conclusion of the contract.Invalidation on grounds of financial duress shall not affect the rights acquired by third parties prior to the registration of the petition.34. (Amended, SG No. 12/1993) Where a contract is recognized as null an void or is invalidated each party must give back to the other party everything it has received from it.35. A contract subject to invalidation may be ratified by the party entitled to request its invalidation, by an instrument in writing which should indicate the grounds for invalidation.A contract shall also be ratified in the event the party entitled to request its invalidation voluntarily performs it, entirely or partially, while being aware of the grounds for invalidation.A contract which is invalidatable on grounds of financial duress may not be ratified.d) Agency36. A person may represent another by operation of law or by the will of the principal.The effects of the legal acts performed by the agent shall arise directly for the principal.37. (Amended, SG No. 59/2007) Authorization for the conclusion of contracts for which the law requires a specific form shall be made in that particular form; however, if the contract is to be concluded in a notarial form the authorization may be made in writing with notarial certification of the signature and the contents, performed simultaneously.38. The agent may not negotiate on behalf of the principal either with himself or with another person also represented by the agent, unless the principal has agreed to this.The principal may at any time withdraw his authorization, and the agent may at any time renounce it. Renunciation by the principal or the agent of their respective rights envisaged in the previous sentence shall be null and void.39. The scope of the agent's authority with respect to third parties shall be determined in accordance with what the principal has expressed.Where several persons are authorized to perform a certain act each one of them may perform it alone, unless it follows otherwise from the authorization.40. If the agent and the person with whom he is negotiating reach an agreement to the detriment of the principal, the contract shall not have effects on the latter.41. An authorization shall be terminated when it is withdrawn or renounced, upon the death of the principal or the agent or upon declaration of their judicial disability, and where the principal or the agent are legal persons, upon their dissolution.A termination of the authorization may not defeat the claims of third parties who have negotiated in good faith with the agent, unless the termination was subject to registration and such registration was made.42. A person who has acted as an agent without possessing authorization shall owe damages to the other party if that party acted in good faith.A person on whose behalf a contract was concluded without authorization may ratify it. The ratification requires the same form as the one provided for granting the authorization for conclusion of the contract.43. The agent may authorize another person, if he is authorized to do so or if such authorization is necessary to protect the interests of the principal.The authorization by the agent may be withdrawn by either the principal or the agent.The agent must notify immediately the principal of the authorization given by him and provide the necessary information on the agent authorized by him. If the agent fails to perform this obligation he shall bear responsibility for the actions of that person as if they were his own.3. Unilateral Expression of Will44. The provisions set forth for contracts shall apply mutatis mutandis to unilateral expressions of will in those cases in which the law permits them to create, alter or terminate rights and obligations.4. Tort45. Every person must redress the damage he has guiltily caused to another person.In all cases of tort guilt is presumed until proven otherwise.46. No liability for damages shall be borne in the event of inevitable self-defence.(Rectified Izvestiya, No. 2 of 1950) In cases of financial duress there is an obligation to remedy the damages caused.47. A person lacking the capacity to understand or control his actions shall not be liable for the damage he has caused while in such a state, unless he himself guiltily caused his lack of capacity.Liability for the damage caused by an incapacitated person shall be borne by the person having the obligation to supervise him, unless the latter was not in a position to prevent its occurrence.48. Natural and adoptive parents who exercise parental rights shall be liable for the damage caused by their children if the latter are not of age and live with them.A guardian shall be liable for the damage caused by a minor who is under his guardianship and is living with him.The said persons shall not bear liability if they were not in a position to prevent the occurrence of the damages.49. A person who has commissioned another to perform certain work shall be liable for the damage caused by the latter in, or in connection with, the performance of such work.50. The owner of a chattel and the person under whose supervision the said chattel is shall be liable jointly and severally for the damage caused by the chattel. If the damage is caused by an animal, the above persons shall also be liable when the animal has run away or has been lost.51. Compensation shall be due for all damage which is a direct and immediate consequence of the tort. It may payable as a lump sum or in regular instalments.If the person suffering the damage has contributed to its occurrence, the compensation may be reduced.Where compensation for impaired ability to work has been awarded, it may be reduced or increased if the injured person's ability to work in connection with the damage changes.52. Compensation for a personal tort shall be determined ex aequo et bono by the court.53. If the damage is caused by several persons, they shall be liable jointly and severally.54. A person liable for a damage caused guiltily by another shall have an action against the latter for what was paid.5. Unmerited gain55. Any person who has received something without cause or for an unfulfilled or lapsed cause must return it. A person who has conscientiously fulfilled his moral duty cannot claim restitution.56. A person who has mistakenly fulfilled another's obligation may claim restitution from the creditor, unless the latter has given up in good faith the document or the security on the debt. In that case the person who has fulfilled the obligation shall assume the creditor's rights.57. If the restitution of a particular chattel is owed, the recipient shall owe the fruits from the moment the invitation was made.Should the chattel subject to restitution perish after the invitation or should the recipient alienate or consume it after finding out that he is holding it without cause, he shall owe its actual value or the price he received for it, whichever is higher. However, if the chattel has perished or has been alienated or consumed by the recipient prior to the invitation, he shall owe only what he has profited, excluding fruits.58. Where restitution is owed by a person lacking capacity only that which went to his benefit may be claimed from him.59. Apart from the above cases, whoever has increased his estate without cause at the expense of another shall owe the return of that by which the estate was increased, up to the amount by which the other's estate was reduced.This right shall arise whenever there is no other action by which the person whose estate has been reduced may protect himself.6. Negotiorum gestio60. A person who intervenes in the management of affairs of which he knows that they belong to another, without having been asked to do so, must take care of such affairs until the interested person may take over.He must take care of the affairs as if he is authorized.His responsibility may be reduced to take account of the specific circumstances under which he undertook the other's affairs.61. If the intervention in the affairs was appropriate and they were well managed in the other's interest, the interested party must fulfil the obligations assumed on his behalf, compensate the negotiorum gestor for the personal obligations the latter assumed and reimburse him for the necessary and useful expenses plus interest from the date the expense was made.If the affairs were managed in the negotiorum gestor's personal interest as well, the interested party shall be liable only up to the extent of the increase of his estate.If a person has intervened in another's affairs against the will of the interested party the latter shall be liable in accordance with the provisions for unmerited gain.62. The rules for authorization shall apply if the interested party has approved the carrying on of the affairs.III. EFFECT OF OBLIGATIONS1. Performance63. (Amended, SG No. 12/1993) Each of the parties to the contract must fulfil its obligations arising from it accurately and in good faith, in accordance with the provisions of the law, and must not obstruct the other party from fulfilling its obligations in the same manner.Obligations must be fulfilled with due diligence, except when the law provides for some other degree of diligence.64. Where a fungible is owed the debtor must provide goods of at least average quality.65. The creditor may not be forced into accepting something different from what is owed.If the creditor agrees to receive ownership of something different from what is owed, the rules for sales shall apply mutatis mutandis in case of an injunction or hidden defects of the received object.Where a claim is transferred to the creditor in lieu of an obligation, the obligation shall be extinguished after the collection on the claim, unless otherwise agreed.66. The creditor cannot be forced into accepting payments in instalments, even though the obligation may be divisible.67. (Repealed, SG No. 12/1993).68. If the place of performance is not defined by the law, the contract or the nature of the obligation, the performance shall be carried out:a) For monetary obligations - at the creditor's domicile at the time of the performance of the obligation;b) For obligations to give a particular chattel - at the place where that chattel is at the time of the arising of the obligation, andc) In all other cases - at the debtor's domicile at the time of the arising of the obligation.69. If the obligation has no fixed time period the creditor may demand its immediate performance.If the performance is left at the discretion of the debtor's will or capabilities, the creditor may ask the court of first instance to order the debtor to perform within a sufficient time period.70. The time period shall be deemed agreed upon in favour of the debtor, unless it follows otherwise from the will of the parties or the nature of the obligation.The debtor may fulfil his obligation before the set delivery date, unless the time period has been agreed upon in the creditor's favour as well.In the event of an interest-bearing monetary obligation the debtor may pay before the deadline and deduct the interest for the remainder of the time period.71. The creditor may claim performance of an obligation with a fixed period of time before the expiration of the said period if the debtor has become insolvent or through his actions has reduced the security provided to the creditor, or has failed to provide the promised security.72. A time period which is measured in months shall expire on the respective date of the final month; if that month lacks the respective date, the time period shall expire on its last day. A time period measured in weeks shall expire on the respective day of the final week. Where a time period is measured in days, the day of the event or of the moment from which the period of time begins to run shall not be counted. The time period shall expire at the close of the final day.If the final day is an official holiday or a non-business day, the time period shall expire on the first business day which follows.If the time period expires a certain number of days before a certain day, the latter, as well as the day on which the term expires, shall not be counted.Statements and notices in writing of any nature shall be deemed made within the time period if they have been sent by mail, telegraph or radiogram before the expiration of the twenty fourth hour of the time period's final day.The beginning of the month shall mean the first day of the month, the middle of the month shall mean the fifteenth day of the month, and the end of the month shall mean the last day of the month.73. An obligation may be performed by a third party even against the creditor's will, unless the creditor is interested that it be performed personally by the debtor.(Paragraph 2, repealed, SG No. 12/1993).74. A person who has performed another's obligation when having legal interest to do so shall assume the rights of the creditor.75. The performance of the obligation must be made to the creditor or to a person authorized by him, by the court or by operation of law. Otherwise it shall be valid only if the creditor has ratified it or has benefited form it.A debtor shall be discharged from an obligation if he has performed in good faith to a person who on the basis of unambiguous circumstances appears authorized to receive the performance. The real creditor has an action against the person who has received the performance. Performance to a creditor lacking capacity shall free the debtor if the performance has gone in favour of the creditor.(Paragraph 3, new, SG No. 83/1996)* Where the payment is carried out by debiting and crediting bank accounts, the obligation shall be deemed retired by the crediting of the creditor's account.76. A person who has several obligations of the same type to another may, provided the performance is insufficient to extinguish all of them, state which of them he is extinguishing. If no statement to that effect is made, he shall repay the obligation which is most onerous for him. Should there be several equally onerous obligations, the earliest of them shall be repaid, and if all of them have occurred simultaneously, they shall be repaid proportionately.Where the performance is insufficient to cover the interest, costs and principal, the costs shall be repaid first, followed by the interest and finally by the principal.77. The debtor may ask the creditor for a receipt upon performance.If a specific document has been issued by the debtor for the debt, he may ask for its return.If the document concerns other rights of the creditor as well, or if the debtor has met his obligation only in part, the creditor shall note the received performance on the document and issue a receipt to the debtor.If the document has been lost, the creditor shall be obliged to indicate that circumstance in the receipt issued by him.78. The performance costs shall be borne by the debtor, and in the event of a change in the place of performance, cost increases due to such change shall be borne by the party that has caused them.2. Non-performance79. If a debtor fails to perform his obligation accurately the creditor shall be entitled to claim performance plus damages for the delay, or to claim damages for non-performance.When damages are claimed instead of performance, the debtor may propose to perform the original obligation plus damages for the delay, provided the creditor is still interested in the performance.80. When the obligation is for performing an act which can be performed by another person, the creditor shall be entitled to request permission to perform that act at the debtor's expense.When the obligation is for non-performance of an act, the creditor may request permission to remove at the debtor's expense the things that were done in violation of the obligation.81. A debtor shall not be liable if the impossibility to perform an obligation is due to a reason for which he cannot be found to be at fault.The circumstance that the debtor lacks cash for performance of the obligation shall not exempt him from liability.82. The damages shall cover the losses suffered and the loss of profit as far as they are a direct and immediate consequence of the non-performance and could have been foreseen upon the arising of the obligation. However, if the debtor has acted in bad faith, he shall be liable for all direct and immediate damages.83. If the non-performance is due to circumstances for which the creditor is responsible, the court may reduce the damages or exempt the debtor from liability.The debtor shall not owe damages for losses which the creditor could have avoided with due diligence.84. Where the date for performance of the obligation is fixed, the debtor shall be in default upon its expiration. However, if that date expires after the debtor's death, his heirs shall be in default upon the expiration of a seven days period after the invitation.Where no date for performance is fixed, the debtor shall be in default after being invited by the creditor.Where an obligation arises from a tort, the debtor shall be deemed in default even without an invitation.85. Where a debtor is in default, he shall owe damages even if the performance is rendered impossible by a reason for which he would otherwise not have been liable, unless he proves that the creditor would have suffered the damages even in the event of a timely performance.86. In case of non-performance of a monetary obligation, the debtor shall owe damages to the amount of the interest determined by operation of law from the date of default. For actually incurred greater losses a creditor may claim damages in accordance with the general rules.The Council of Ministers shall determine the rate of interest to be applied by operation of law.87. Where a debtor under a bilateral contract does not perform his obligation due to a reason for which he is liable the creditor may avoid the contract by providing the debtor with an appropriate time period for performance with a warning that he shall deem the contract avoided upon the expiration of that time period.Where a contract has been concluded in writing the warning must also be made in writing.A creditor may inform the debtor that he is avoiding the contract without providing such a time period, if the performance has become fully or partially impossible, if due to the debtor's default it has been rendered useless, or if the obligation had to necessarily be fulfilled within the agreed time.The avoiding of a contract for the transfer, creation, recognition or termination of real rights on immovable property shall be done through the court. Should the defendant offer performance in the course of the proceedings, the court may grant a time period for that purpose depending on the circumstances.The avoiding of a contract shall not be admissible if the part not performed is immaterial with regard to the creditor's interest.The right to avoid a contract shall expire by limitation after five years.88. The avoidance shall be retroactive except for contracts requiring continuous or periodic performance. The creditor shall be entitled to compensation for damages arising from the non-performance.The avoidance of contracts subject to registration shall not prejudice the rights acquired by third parties prior to the registration of the petition.89. In case of a bilateral contract, if the obligation of one of the parties is extinguished due to impossibility of performance, the contract shall be cancelled by operation of law. Where the said impossibility is only partial, the other party may claim a respective reduction of its obligation or cancellation of the contract through the court, if it does not have sufficient interest in seeking partial performance.90. A debtor who has a claim against his creditor arising from the same legal relationship as his own obligation, may refuse performance of that obligation until the creditor performs his obligation. In that case the court shall rule that the defendant perform simultaneously with the plaintiff.Where it is evident from the circumstances that there is a threat that one of the parties may not perform, the other party may refuse to perform unless it is given adequate security.91. A person who has an executable claim in connection with the preservation, maintenance, repair or improvement of the movable chattel of another, or for damages caused by such a chattel, shall be entitled to retain the said chattel until satisfied, unless he has acted in bad faith.Where the subject of retention are goods the creditor may keep such quantity of them as is required to cover his claim.(Paragraph 3, repealed, SG No. 12/1993).No retention shall be permitted if proper security is provided.A creditor exercising retention shall be entitled to preferential satisfaction from the value of the retained chattel.(Paragraph 6, repealed, SG No. 12/1993).92. Liquidated damages shall secure the performance of the obligation and shall serve as compensation for damages caused by non-performance, which need not be proven. The creditor may claim compensation for greater losses as well.(Paragraph 2, repealed, SG No. 12/93, new, No. 83/1996)* Where the liquidated damages are excessive as compared with the damage sustained or the obligation had been performed improperly or only in part, the court may decree to reduce the amount of such damages.(Paragraph 3 and 4, repealed, SG No. 12/1993).93. An earnest shall serve as proof that the contract is concluded and shall secure its performance.If the party which has given the earnest does not perform its obligation, the other party may withdraw from the contract and keep the earnest. If the party which has received the earnest fails to perform its obligation, the other party may claim the double the amount of the earnest in case of withdrawal from the contract.(Corrected, Izvestiya No. 2/1950) If the party not at fault prefers to seek performance of the contract, the damages shall be determined in accordance with the general rules.94. Arrangements which a priori rule out or reduce the debtor's liability for deliberate actions or gross negligence shall be null and void.(Paragraph 2, repealed, SG No. 12/1993).3. Creditor's Default95. A creditor shall be in default when he refuses without justification to accept the performance offered by the debtor or fails to provide the necessary assistance without which the debtor is unable to perform his obligation.96. When a creditor is in default the risk shall pass onto him; if the debtor was also in default he shall be discharged from its consequences.The necessary expenses incurred due to the creditor's default shall be borne by the latter.97. If the obligation is to deliver something and the creditor is in default, the debtor may discharge himself by depositing the due item for safe-keeping at an appropriate place determined by the court of first instance at the place of performance. Money, securities and valuables may be deposited for-safe keeping in a bank at the place of performance even without a court order.Where the due item is perishable or its safe-keeping involves significant cost or inconvenience, as well as when its nature prevents it from being deposited, the debtor may, after notifying the creditor, request the court of first instance for permission to sell that item and deposit the amount received in a bank in the creditor's name.The depositing for safekeeping shall not have effects if the debtor withdraws the item prior to its acceptance by the creditor.98. If the obligation does not have as its subject the handing over of something and the creditor refuses to accept the performance or provide the required assistance, the debtor may withdraw from the contract and seek compensation for the necessary expenses incurred as a result of the creditor's default.IV. TRANSFER OF CLAIMS AND OBLIGATIONS99. A creditor may transfer his claim unless the law, the contract or the nature of the claim do not permit this.A transferred claim shall pass on to the new creditor with its privileges, securities and other attributes, including interest arrears, unless otherwise agreed upon.The former creditor must notify the debtor of the transfer and hand over to the new creditor any documents he may hold which verify the claim, as well as a confirmation in writing that the transfer has taken place.A transfer shall be binding upon third parties and the debtor from the date when the latter is notified by the former creditor.100. If a transfer is for consideration, the creditor shall be liable for the existence of the claim at the time of the transfer.He shall not be liable for the debtor's solvency, unless he has assumed such an obligation and then only up to the amount received for the transferred claim.101. A third party may step in as a co-debtor in a certain obligation by agreement with the creditor or with the debtor. If the creditor has approved the agreement for the stepping in of the co-debtor, this agreement may not be repealed or amended without his consent.The original debtor and the co-debtor shall be liable jointly and severally before the creditor.102. A third party may substitute the debtor only with the creditor's explicit consent. The substituted debtor shall be discharged of liability to the creditor.Security provided by third parties shall be cancelled provided such third parties do not consent that such security serve the new debtor. Pledges and mortgages provided by the original debtor shall remain in force.The new debtor may plead against the creditor any defences of the former debtor arising from the transferred legal relationship.V. EXTINGUISHING OBLIGATIONS1. Set-offs, Novations and Remissions103. Where two persons owe each other reciprocally money or fungibles, each one of them may set off his claim against his obligation, provided that the claim is executable and liquid.A set-off is admissible even if the claim has been extinguished by limitation, provided it could have been performed before the expiration of the limitation period.If the debtor has agreed to the transfer of the claim, he may not set off the obligation against his claim towards a former creditor.104. A set-off shall be effected via a statement made by one party to the other. It may not be done subject to a time period or condition other than the condition that the court action for the claim be upheld.The two opposite claims shall be deemed extinguished to the amount of the smaller one as of the date on which a set-off could have been performed.105. Claims which are not subject to forcible execution, claims resulting from deliberate illegal acts and claims for taxes cannot be set-off without the creditor's consent.106. (Repealed, SG No. 12/1993).107. An obligation shall be novated when it is substituted by another one by agreement with the creditor. In that case the security for the previous obligation shall remain for the new one, if the persons who have provided it agree to this.(Paragraph 2, repealed, SG No. 12/1993).108. An obligation shall be remitted if the creditor renounces the claim through a contract with the debtor.109. An obligation shall be deemed extinguished if the private document for it is in the possession of the debtor, unless proven that it was not returned voluntarily.2. Limitation110. (Amended, SG No. 12/1993) All claims for which the law does not provide for another time period shall be extinguished upon the expiration of a five year limitation period.111. The following obligations shall be extinguished upon the expiration of a three year limitation period:a) Labour remuneration claims for which no other limitation period is provided;b) Claims arising from damages and liquidated damages from non performed contracts;c) Claims for rent, interest and other periodic payments.112. (Repealed, SG No. 12/1993).113. An agreement for abridging or extending established limitation periods, as well as renunciation of the limitation before it expires shall be invalid.114. The limitation shall begin to run from the date on which the claim is executable.Should there be an arrangement that the claim becomes executable following an invitation, the limitation shall begin to run from the date on which the obligation arose.For claims arising from torts the limitation shall begin to run upon the discovery of the offender.(New paragraph 4, SG No. 12/1993). In the event of an action for liquidated damages for default the limitation period shall begin to run from the final date for which the liquidated damages are assessed.115. A limitation period shall not run:a) Between children and parents as long as the latter exercise parental rights;b) Between persons under guardianship or custody and their guardians or custodians as long as the guardianship or custody lasts;c) Between spouses;d) For claims of persons whose property is placed under trusteeship by operation of law or a by court ruling, against the trustee as long as the trusteeship lasts;e) For claims for damages of legal entities against their managers as long as the latter are in office;f) For claims of minors and persons under judicial disability for the period of time during which they have no appointed legitimate representative or custodian and six months after such a person is appointed or after the incapacity ends;g) For the duration of the judicial proceedings on the claim.If the limitation period expires when the creditor or the debtor are mobilized by the military, the action may be brought within six months after their demobilization.116. The running of the limitation period shall be interrupted:a) Upon an admission of the claim by the debtor;b) Upon bringing an action or defence, or of an application for a conciliation proceeding to commence; If the action or the defence, or the application for a conciliation procedure, is not upheld, the limitation shall be deemed to have not been interrupted;c) Upon the undertaking of acts for forcible execution.117. (Amended, SG No. 12/1993) A new limitation period shall start to run from the moment of interruption of the limitation period.(Paragraph 2, amended, SG No. 12/1993) If the claim has been established by a court ruling, the new limitation period shall always be five years.118. Should a debtor perform his obligation after the expiration of the limitation, he shall not be entitled to claim back what was paid, even though he may have not known at the time of payment that the limitation had expired.119. The extinguishing of the principal claim shall entail the extinguishing of additional claims arising from it, even though the limitation period for them may not have expired.120. (Amended, SG Nos. 30/1990 and 16/1997) (Paragraph 1, amended, SG No. 30/1990) Limitation shall not be applied on the court's own motion.(Paragraph 2, 3 and 4, repealed, SG No. 30/1990).VI. PARTICULAR TYPES OF OBLIGATIONS1. Obligations jointly and severally121. Apart from the cases specified by law, joint and several liability between two or more debtors shall arise only when agreed upon.(Paragraph 2, repealed, SG No. 12/1993).122. A creditor may claim performance of the entire obligation by any one of the debtors.The bringing of the action against one joint and several debtor shall not prejudice the creditor's rights with respect to the other co-debtors.A joint and several debtor may not plead against the creditor the personal defences of his co-debtors.123. Performance by one joint and several debtor shall discharge all co-debtors. The receipt of something in lieu of performance by a joint and several debtor, a set-off with a joint debtor, as well as default of the creditor with regard to one joint and several debtor shall also have effects with respect to all joint debtors.A joint and several debtor may not set off his obligation with claims of his co-debtors towards the creditor.124. The novation of an obligation of a joint and several debtor shall discharge the other co-debtors, unless the creditor has retained his rights against them.A remission in favour of one joint and several debtor shall discharge the other co-debtors as well, unless the creditor has retained his rights against them. In the latter case the obligation shall be reduced with the portion of the remitted co debtor.The consolidation into one person of the figures of creditor and joint and several debtor shall extinguish the obligation of the remaining joint and several debtors for the portion of that co-debtor.125. The termination or interruption of the limitation period against one joint and several debtor may not be enforced against the other co- debtors, but if the debtor with regard to whom the limitation period has expired has performed the obligation, that debtor may bring an action against the others who have been discharged as a result of the limitation.A renunciation of the limitation by one joint and several debtor may not be enforced against the other co-debtors; a person who has renounced the limitation shall not be entitled to an action against those who have been discharged as a result of the limitation.126. Should performance become impossible and should only one of the debtors be responsible for that, the creditor may claim from the latter full damages. The other debtors shall be liable jointly and severally only for the value of the original debt.Default by one joint and several debtor shall not be enforceable against the other co-debtors.127. What has been paid to the creditor must be borne equally by all joint and several debtors, unless their relationship provides for another arrangement.Each joint and several debtor who has performed more that his share may bring an action against the other co-debtors for the balance. Should any of the latter prove to be insolvent, the loss shall be distributed pro rata among the other co-debtors, including the one who has performed.If a joint and several debtor who has performed has not raised a general defence against the creditor or has not informed his co-debtors of the performance, he shall be liable before them for the damages incurred.2. Indivisible Obligations128. An obligation shall be indivisible either when that which is owed is indivisible by its nature or by to the intention of the parties.In both cases the obligation shall remain indivisible with regard to the debtor's heirs as well.129. The subject of an indivisible obligation must be transferred to all creditors jointly. However, each creditor may demand that the subject owed is deposited for safe-keeping pursuant to Article 97.For everything else concerning indivisible obligations the rules for joint and several obligations shall apply.3. Obligations with a right of choice130. If for an obligation with a right of choice it is not specified whom the choice is left to, it shall belong to the debtor.The choice shall become irrevocable when it is communicated to the other party, and if it is left to a third party - when it is communicated to both parties. In case the party to which the choice has to be communicated to consists of several persons, the choice shall become irrevocable when it is communicated to one of them.131. If the right of choice belongs to the debtor and he fails to exercise it within the specified time period, or should there be no such time period - by the date when the obligation has to be performed, the right of choice shall pass to the creditor.If the right of choice belongs to the creditor and he fails to exercise it within the specified time period, or should there be no such time period - prior to the deadline set by the debtor, the right of choice shall pass to the debtor.If the choice is awarded to a third party and it fails to make it within the specified time period, the choice shall be made by the court.132. If performance with one of the subjects of the obligation is rendered impossible for a reason which is not the fault of the party without the right of choice, the obligation shall remain in force only with respect to the other subjects.If the party without the right of choice is responsible for the impossibility, the other party may choose: the creditor may either choose settlement with one of the possible subjects of the obligation or damages in lieu of the impossible subject, whereas the debtor may choose either some of the possible subjects of the obligation and claim damages for the impossible subject or be discharged of the obligation by forfeiting the damages.VII. SECURITY ON CLAIMS1. General Provisions133. The entire property of the debtor shall serve as general security for his creditors who shall have equal right to be satisfied by it provided there are no legal grounds for privileges.134. A creditor may exercise a debtor's property rights when the latter's inaction threatens the satisfaction of the creditor, except such rights the exercise of which depends on the debtor's purely personal discretion.Where a creditor brings an action pursuant to the preceding paragraph, the debtor shall be summoned as a party to the proceedings as well.If the exercise of the right does not consist in bringing an action the creditor, in order to carry out the act, must be authorized by the court under the procedure for securing claims.135. The creditor may ask that with respect to himself certain acts of the debtor which have harmed him be declared invalid, if the debtor was aware of the harm at the time of performance of those acts. Where an act is for consideration it shall be assumed that the person with whom the debtor negotiated was also aware of the harm. Invalidity shall not prejudice the rights acquired in good faith by third parties for consideration prior to the registration of the petition for invalidation.Knowledge shall be presumed until proven otherwise, if the third party is a spouse, a descendant or ascendant, or a sibling of the debtor.Where the act was performed prior to the arising of the claim it shall be invalid only if it was intended by the debtor and the person with whom he negotiated to harm the creditor.Creditors in whose favour the invalidity is declared shall be satisfied out of the amount received from a public auction before the third party, when the latter participates in the distribution with a claim arising from the declaration of invalidity.2. Privileges136. (Amended, SG No. 12/1993) The following claims shall be satisfied preferentially in the order in which they are listed:1. claims on costs for securing and forcible execution, as well as for actions pursuant to Articles 134 and 135 - out of the value of the property for which they were made, for the creditors in favour of whom these costs were made;2. (amended, SG No. 103/1999, supplemented, No. 36/2006) claims of the state on taxes on a certain property or on a motor vehicle - out of the value of that property or vehicle, as well as claims on concession payments, interests and defaults on concession contracts.3. claims secured by a pledge or mortgage - out of the value of the pledged or mortgaged properties;4. claims for which the right of retention is exercised - out of the value of the retained property; should this claim arise from costs for maintenance or improvement of the retained property, it shall be satisfied before the claims under item 3;5. employee claims arising from employment relationships and maintenance claims;6. claims of the state other than fines;(Items 7 and 8, repealed, SG No. 12/1993).(Paragraph 2, amended, SG No. 12/1993) Claims under items 5 and 6 shall be satisfied preferentially from the entire property of the debtor.Claims of the same order shall be satisfied proportionately.In addition to accrued interest the right to preferential satisfaction shall cover the outstanding interest from the moment the forcible execution commenced, as well as interest for the year preceding it.137. (Amended, SG No. 12/1993) When the law does not specify the order for satisfying a claim for which it provides preferential satisfaction, that claim shall be paid after the claims under item 6 of the preceding article.Where particular laws provide for some claims to be paid before all others they shall be paid after the claim under item 1 of Article 136, and in the event they compete with each other they shall be paid proportionately.3. Guarantee138. Under a guarantee contract the guarantor undertakes an obligation before another's creditor to be liable for the performance of the other's obligation. This contract must be in writing.A guarantee may exist only for an actual obligation. It may be undertaken for future or conditional obligation as well.139. (Corrected, Izv. No. 2/1950) A guarantee may also be undertaken for a part of the debtor's obligations or under easier terms. If the guarantor has undertaken an obligation exceeding that which the debtor owes or under more onerous terms, his obligation shall be reduced to fall within the framework of the principal obligation.140. A guarantee shall cover all consequences of the non performance of the principal obligation, including costs for collection of the claim.141. A guarantor shall be liable jointly and severally with the principal debtor.If a debtor has several guarantors for one and the same obligation, each one of them shall be liable for the overall obligation unless there is an arrangement for dividing it.142. A guarantor may plead against the creditor all defences of the debtor, as well as set off a claim of the debtor against the creditor. He shall not lose those rights even if the debtor has renounced them or has admitted his obligation.143. A guarantor who has performed an obligation may claim from the debtor the principal, the interest, and the expenses he has made after notifying the debtor of the action which was brought against him. He shall also be entitled to the interest by operation of law on the amounts paid from the date of payment.A debtor shall not be liable towards the guarantor if he has performed the obligation prior to being notified of the guarantor's payment. If the guarantor has performed the obligation without notifying the debtor, the latter may plead against the guarantor the same defences which he could have raised against the creditor upon performance. In both cases the guarantor may claim back what the creditor unduly received.144. A debtor who has performed his obligation shall be obliged to notify the guarantor immediately.145. Where a debtor has several guarantors for one and the same obligation, a guarantor who has performed the obligation may claim from the other guarantors their due parts.146. A guarantor who has performed an obligation shall assume the rights which the creditor has against the debtor, even when the debtor may have been unaware of the guarantee.A guarantor shall also assume the rights of the creditor against third parties who have provided a pledge or mortgage for the obligation, but only to the amount to which he would have had an action against them if they had been guarantors.The guarantee shall expire when due to the creditor's acts the guarantor cannot assume the creditor's rights.147. A guarantor shall remain under obligation even after the maturity of the principal obligation if the creditor has brought an action against the debtor within six months. This provision shall also apply in those case where the guarantor has explicitly limited his guarantee to the time period of the principal obligation.An extension of the time period granted by the creditor to the debtor shall have no effects with regard to the guarantor if the latter has not agreed to this.148. The interruption of the limitation with respect to the debtor or his renunciation of the expired limitation may not be enforced against the guarantor; the interruption of the limitation with respect to the guarantor or his renunciation of the expired limitation may not be enforced against the debtor.4. Pledge and Mortgagea) General Provisions149. A claim may be secured by a pledge on movable property or on a claim and a mortgage on immovable property.A pledge and mortgage may be established both for one's own or for another's obligation.150. The pledge and mortgage shall follow the secured claim when it is transferred and shall be extinguished if the claim is extinguished.Should the obligation be divided among the debtor's heirs, the pledge and mortgage shall continue to encumber the whole obligation on the entire chattel or on all chattels even if they are divided among the heirs.151. Should the pledge or mortgage secure someone else's obligation, the owner of the pledged chattel or the mortgaged property may plead against the creditor all defences of the debtor, as well as claim set-offs with the debtor's claims against the creditor.152. An agreement which stipulates in advance that if the obligation is not performed the creditor shall become owner of the property, as well as any other agreement which stipulates in advance a manner for satisfying the creditor other than the one provided for by the law shall be invalid.153. In the event there are several pledges or mortgages on one property the creditors shall be satisfied preferentially in the order in which the pledges and mortgages were created, even though the secured claim may not have existed at the time of their creation.154. (Amended, SG No. 12/1993) If the pledged or mortgaged property perishes or is damaged, or is expropriated for state or municipal needs, the pledgee and mortgagee shall be entitled to preferential satisfaction from the insurance amount or the compensation due in accordance with the order of privileges which their original claims had. However, a payment made to the owner shall be valid if the pledgee or mortgagee were notified of it by the insurer or the person owing the compensation and did not object within a three month period.155. If the debtor transfers the pledged or mortgaged property to a third party and the transferee pays or is subjected to forcible execution, he shall assume the rights of the satisfied creditor against the debtor, against the guarantors and against the persons who have later than him acquired from the debtor the ownership of other pledged or mortgaged properties for the same obligation.The same rights shall also be enjoyed by an owner who has pledged or mortgaged his property for another's obligation. However, in this case, he shall assume the creditor's rights against the guarantors up to the amount which he could claim against them, were he a guarantor.b) Pledge on chattels156. A contract for pledge shall be valid only if the pledged chattel is handed over to the creditor or to another person designated by him and the pledgor.(Paragraph 2, amended, SG No. 12/1993) Where a secured claim exceeds 5,000 levs, the pledge cannot be enforced against third parties if there is no document in writing bearing a relevant date indicating the chattels and the claim.157. A creditor shall be entitled to retain the pledged chattel until the secured claim is fully extinguished.He shall not have the right to use it unless agreed otherwise.Should the creditor be deprived of possession of the chattel, he may, on grounds of his pledge, claim it back from the person holding it.158. If the pledged chattel is in danger of spoiling, both the creditor and the pledgor may request permission from the court of first instance to sell it and to deposit the amount received in a bank as security to the creditor.159. A creditor shall be entitled to preferential satisfaction from the pledged chattel's price through forcible execution only if he has not returned it to the debtor. The chattel shall be deemed returned if it is in the debtor's possession.160. (Amended, SG No. 12/1993, SG No. 59/2007) Where a secured claim is monetary or liquidated damages in cash have been agreed for it, if the pledge is created by a contract in writing or is provided by operation of law for securing claims which arise from a contract in writing, the creditor shall have the option to move for the issuance of an immediate enforcement order according to the procedure established by Article 418 of the Code of Civil Procedure. 161. The provisions of this chapter shall not repeal the special provisions of other laws on creation and effects of pledges.c) Pledge on Claims162. (Amended, SG No. 12/1993) Transferable claims may be pledged. A contract for pledging a claim may not be pleaded against third parties if the debtor was not informed of the pledge; where a secured claim exceeds 5,000 levs the provision of Article 152, paragraph 2 shall also apply.163. A pledgor must hand over to the pledgee the documents which prove the pledged claim, if such exist.164. A creditor who has a pledge on a claim must carry out all acts required to preserve it.He shall be obliged to collect the interest on the pledged claim, as well as the principal should it become due.Anything collected by the creditor pursuant to the preceding paragraph shall be kept by him as a pledge. If it is in cash, the amount shall be deposited in a bank as security for the creditor.165. (Amended, SG No. 59/2007) A creditor who has a pledge on a claim shall have the option to move for the issuance of an immediate enforcement order according to the procedure established by Article 418 of the Code of Civil Procedure under the terms and according to the procedure established by Article 160 herein and shall be satisfied preferentially according to the procedure for reversal of the enforcement of a claim.d) Mortgage166. (Paragraph 1, supplemented, SG No. 34/2000) A mortgage shall be created through registration in property register by a contract or by operation of law.(Paragraph 2, amended, SG No. 12/1993) It may be established only with respect to singularly specified properties and for a specific sum of money.167. A mortgage contract shall be concluded with a title deed.It shall indicate: the full names, domicile and occupation of the creditor and the debtor, as well as of the owner of the property if the mortgage is created for another's obligation, and if any of the above parties is a legal person - its trade name; the property on which the mortgage is created; the secured claim, its maturity and the interest rate if interest is agreed, as well as the amount for which the mortgage is created if the claim is non-monetary.A mortgage may be created only on property which belongs to the mortgagor at the time when the contract is concluded.168. A mortgage by operation of law shall be created:1. in favour of an alienator of immovable property - on the alienated property as security for his claim under the contract, and2. in favour of the co-partitioner to whom a supplementing of the share is due - on immovable property left in the share of a co-partitioner who owes the supplementing of the share.The mortgage by operation of law shall be registered upon the creditor's application, attached to which shall be the deed for alienation or partition. The application shall contain all the data set forth in Article 167, paragraph 2.169. (Paragraph 1, repealed, SG No. 34/2000).A mortgage shall receive its rank upon its registration.170. The creation of a mortgage shall be invalid if either in the mortgage contract, in the application for creation of a mortgage by operation of law, or in the deed pursuant to which it is filed there is uncertainty as to the identity of the creditor, the owner or the debtor, the identity of the property and the secured claim, or the amount of the sum for which the mortgage is created.171. (Amended SG. No. 34/2000) In order to have effects, the transfer and pledging of a claim secured by mortgage, the assumption of such a claim and the imposition of an attachment on it, as well as its novation and substitution in obligation, must be in writing with the signatures certified by a Notary Public and must be incorporated in the property register.172. The registration shall be valid for 10 years from the date on which it was made. It may be extended, if the registration is renewed, before the expiration of the above period.Should the time period expire and no renewal is made the mortgage may be registered anew. In that case it shall be ranked as from the new registration.The registration shall be renewed upon an application to which a copy of the contract or a copy of the application for creating the mortgage must be attached.173. A creditor whose claim is secured by a mortgage shall be entitled to be satisfied preferentially from the mortgaged property's price, irrespective of whose ownership it is.The right to a preferential satisfaction shall also cover the income from the property from the date on which the owner must account under forcible execution such income pursuant to the Code of Civil Procedure. (Paragraph 3, amended, SG No. 59/2007) If a claim is for a specific amount of money, or if liquidated damages in cash have been agreed for it, the creditor shall have the option to move, on the basis of the act on recording of the mortgage, for the issuance of an immediate enforcement order according to the procedure established by Article 418 of the Code of Civil Procedure. 174. The mortgage shall secure the claim irrespective of any changes that may have occurred in the latter, but only to the amount covered by the registration. However, if it is noted that the claim is interest-bearing, the mortgage shall also secure the interest for the two years preceding the year of serving a writ of summons for voluntary performance on the owner, for the current year and for all the following years until the date of sale of the property. In addition, the mortgage shall secure the creditor's claims for expenses incurred for its creation and renewal, and court and execution expenses.175. Upon public sale of the property all mortgages on it, as well as all real rights created after the first mortgage, shall be extinguished. Mortgagees shall be entitled to a preferential satisfaction from the price in the order of their mortgages.(Supplemented, SG No. 34/2000, amended, SG No. 43/2005) A mortgage may be preserved upon the public sale of a property if, with the mortgagees consent, the buyer assumes the secured obligation. In that case the protocol with which the state or private executive magistrate certifies that consent shall be noted down in the registration in the property register.176. Should a third party bearing no personal obligation on the secured claim acquire the mortgaged property and afterwards that property is sold at a public auction, the real rights which he had over the said property before acquiring its ownership shall be restored ex lege with the exception of mortgages. For the latter he shall participate in the price distribution according to their order.177. If the owner of a sold mortgaged property bears no personal obligation, he shall be entitled to receive from the property's price before the mortgagees compensation for any necessary expenses he has incurred for the said property, as well as for any increase in its value due to his useful expenses.He shall be liable before the mortgagees for any damage caused to the property because of his gross negligence.178. A person who purchases a mortgaged property from the debtor under the secured claim without assuming the obligation may pay the mortgagee up to the amount of the price he owes. In that case, with respect to the creditors whose mortgages have been created before he purchased the property, he shall be deemed to have assumed the rights of the satisfied creditor.179. The registration of a mortgage shall be deleted on the basis of the creditor's consent, which must be certified by a notary public, or on the basis of an effective court ruling.(Paragraph 2, amended, SG No. 34/2000) The deletion shall be made upon an application to which the deed of consent or a copy of the effective court ruling is attached. It shall be made by indicating in the record of the mortgaged property.The deletion shall extinguish the mortgage. But if the deed on the basis of which the deletion was performed is declared null and void, the mortgage may be registered anew. In that case, it shall be ranked from the date of the new registration.5. Security before a court180. Where the law provides for providing security before a court, the said security may be a deposit in cash or government securities, or a mortgage.The value of the securities and immovable property shall be estimated at 20 per cent below their market value.181. A pledge shall be created by depositing cash or securities in a bank.A mortgage shall be created by registering the certified by a notary public consent of the owner of the immovable property.The pledged cash and securities shall be returned to the pledgor and the mortgage shall be extinguished by order of the court before which the security was provided.182. The rules set out in Articles 180 and 181 shall also apply where the law stipulates that security be provided before another state institution; in that case the court's acts shall be performed by the state institution before which the security was provided.S P E C I A L P A R TI. SALE1. General Rules183. Under the contract of sale the seller assumes the obligation to transfer to the buyer the ownership of a chattel or another right for a price which the buyer assumes the obligation to pay to the seller.(Paragraph 2, repealed, SG No. 12/1993).184. If upon conclusion the chattel had perished, the contract shall be deemed null and void.If only part of the chattel had perished, the buyer is entitled either to renounce the contract or to claim the surviving part at a respectively reduced price.185. The following may not be buyers, even at public auctions, either directly or through a dummy:a) persons who by operation of law or upon designation by the authorities manage or guard the property of another, of such a property, as well as officials to whom the sale of a property is assigned in their official capacity, of such a property; andb) (amended, SG Nos. 12/1993, 104/1996, 43/2005) judges, prosecuting attorneys, state and private executive magistrates, recordation judges, and lawyers, of the rights which are disputed before the court to which they belong or in whose jurisdiction they act, except if the buyer is a co-owner of the disputed right.186. The costs for the contract and other expenses related to the transfer of ownership shall be borne by the buyer, except for the sale of immovable property where the costs shall be shared equally by the parties.The costs of delivery, including the sizing and weighting, shall be borne by the seller and the costs of accepting delivery shall be borne by the buyer.186a (New, SG No. 12/1993) The risk of chance loss or damaging of fungibles shall pass on to the buyer from the moment the goods are specified by agreement of the parties or are delivered to the buyer, and in case of delivery to a buyer in another community, from the moment the goods are handed over to shipping agent or carrier, except if otherwise agreed. In case of transit deliveries in the same cases the risk shall pass on to the final consignee.2. Obligations of the seller187. The seller must deliver the sold chattel to the buyer. The chattel shall be delivered in the same state as it was at the time of the sale, together with all fruits since that time.188. The seller shall be liable if third parties possess the right of ownership or other rights over the chattel which may defeat the buyer's claim, except if the latter was aware of the existence of such a right.189. If the sold chattel belongs entirely to a third party, the buyer may declare the sale avoided pursuant to Article 87. In such a case the seller must return the price paid to the buyer and cover the costs incurred by him for the contract, as well as the necessary and useful costs for the chattel. The seller shall be liable for other damages in accordance with the general rules for non-performance of an obligation.The seller shall owe the return of the full price even if the chattel has been depreciated or damaged, but if the buyer has benefited from the damage caused by him the amount of such benefit shall be deducted from the sum owed by the seller.190. Should only a part of the sold chattel belong to a third party or should the chattel be encumbered with rights of a third party the buyer may, in those cases where under the circumstances it must be presumed that he would not have concluded the contract had he known of this, bring an action for avoidance of the sale and ask for damages pursuant to the preceding article.In case of a failure to do so the buyer may ask for a reduction of the price and damages.191. If an injunction is issued against the buyer, he may also claim from the seller the value of the fruits which the court has ordered him to give back to the third party, as well as the court expenses.The seller shall not be liable for the injunction if he was not made a party to the proceeding and if he proves that he is in possession of sufficient grounds to defeat the claim.When the buyer has defeated the injunction or has cleared the chattel from the rights which third parties had over it by paying a sum of money, the seller may discharge himself by paying the buyer this sum, the accrued interest from the date of payment and the costs.192. If at the time of the sale the buyer knew of the rights of the third parties, in case of an injunction he may claim only the price. This shall also apply when the seller has reached agreement that he will not be liable for the injunction.The agreement by which the seller is discharged shall not be valid if he kept silent about third party rights of which he had knowledge.193. The seller shall be liable if the sold chattel has defects which significantly reduce its price or its ability for such use as is usual or is prescribed in the contract.The seller is not liable for defects which were known to the buyer at the time of sale.The seller shall also be liable when he was unaware of the defect. An agreement discharging him shall be invalid.194. Having accepted the chattel, the buyer has to examine it within the period usually required for such purposes and to immediately notify the seller of any noticed defects. Failure to do so shall mean that the chattel is approved, unless other defects, which cannot be seen under ordinary examination, are discovered later. In the latter case the buyer's rights shall be preserved if he immediately notifies the seller of the discovered defect.No notification of the seller is necessary if he knew of the defect.195. Where the seller is liable pursuant to Article 193 the buyer may give back the chattel and claim the price paid together with the expenses for the sale, keep the chattel and claim a reduction of the price or have the defects repaired at the seller's expense.He may also claim damages in accordance with the general rules concerning non-performance of obligations.In the sale of fungibles the buyer may either exercise the rights provided in the first paragraph or claim delivery, as well as damages in both cases196. The seller shall have the rights set forth in the previous article even when the chattel has perished or has been damaged, if this has occurred because of its defects or because of a chance event.If the damage or perishing have occurred through a fault of the buyer or of the parties to whom the chattel has been transferred by him, he may claim only a reduction of the price and damages pursuant to the provisions of the preceding article. The rights of the buyer shall be limited in the same manner when the chattel has been processed.197. The buyer's actions pursuant to article 195 shall expire by limitation after one year in the case of a sale of immovable property, and after six months in the case of a sale of movable property. If the seller knowingly kept silent about the defect, the limitation period shall be three years. The limitation period may be extended or abridged by agreement of the parties.The limitation period shall begin to run from the moment of delivery.198. When the buyer raises an objection for defects in the sold chattel which was delivered at another place he must keep it at the disposal of the seller and take care in the meantime for its preservation.If the chattel is exposed to deterioration and any delay entails a threat, or if the preservation involves considerable cost or inconvenience, the buyer, having informed the seller, may ask the court of first instance for permission to sell it the chattel.199. The rules concerning liability for defects do not apply to public auctions.3. Obligations of the buyer200. The buyer must pay the price and take delivery of the chattel.The payment shall be made simultaneously with the delivery of the chattel and at the place where this is done.If the sold chattel bears fruits or other income, the buyer shall owe interest on the price from the date of delivery of the chattel even though the price may not yet be demandable.4. Special rules for some sales201. When selling a movable chattel the seller may avoid the contract without observing the provisions of Article 87:a) if the buyer does not pay the price upon expiration of the time period, when the contract provides for delivery of the chattel simultaneously with the payment or after the payment;b) if the buyer with respect to whom the time period for payment of the price has not yet expired does not appear to take delivery, or does not take delivery upon expiration of the time period of the chattel offered him in accordance with the contract.In both cases he must notify the buyer within 7 days of expiration of the time period of the avoidance of the contract.202. Where no time period for the payment of the price is provided and the buyer takes delivery of the chattel without payment, the seller may ask for a return of the chattel within 15 days after delivery if the chattel is still in the possession of the buyer and is in the same state as when delivered.This right may not be exercised to the detriment of the buyer's creditors who have placed an attachment on the chattel or have received it as a pledge without knowing that the price was not paid.203. If the sales contract was concluded on the basis of a sample and the buyer does not provide it, the chattel shall be deemed to possess the qualities of the sample.204. A sale with a test or examination provision shall be deemed concluded under the deferment clause that the buyer shall approve the chattel.The seller shall cease to be bound by the contract if the chattel is in his possession and the buyer does not approve it prior to the expiration of the agreed upon time period or, in the absence of such a period, immediately after being invited by the seller to do so.The chattel shall be deemed approved if it is delivered to the buyer and the buyer makes no statement either way prior to the expiration of the agreed upon time period or, in the absence of such a period, immediately after being invited by the seller to do so.205. In the sale of chattels under an instalment contract the seller may retain the ownership of the sold chattel until he receives the last instalment, but in this case the risk passes to the buyer from the moment of delivery.This term may be pleaded as a defense against the buyer's creditors if it is agreed upon in writing and the document bears a verifiable date.206. Regardless of any agreement to the contrary, failure to pay instalments which do not exceed 1/5 of the chattel's price does not provide grounds for avoiding the contract.If the contract is avoided on grounds of the buyer's non performance, the seller may claim compensation for the use of the chattel regardless of any rights to damages.An agreement providing that any instalments already paid be kept by the seller as compensation shall be invalid.207. (Repealed, SG No. 83/1996).208. Under the contracts for periodical delivery the price shall be paid proportionately upon each individual delivery.The time period specified for the individual deliveries shall be deemed agreed upon in the interest of both parties.209. A sale with a buy-back clause shall be invalid.210. In selling an immovable property where the total area and the price per unit area are specified, if the real area turns out to be larger or smaller than what was specified in the contract, the price of the property shall be increased or decreased respectively. However, the buyer may withdraw from the contract if the area is larger or smaller by 1/10 from what is specified in the contract.When the price is defined as a total for the whole property, if the area of the property is specified in the contract and it turns to be smaller by more than 1/10 than the real area, the buyer has the right to avoid the contract or claim a reduction of the price; but if it turns to be larger by more than 1/10 the seller has the right to claim an increase of the price, but in the latter case the buyer may withdraw from the contract.These rules do not apply to public auctions.211. Actions to exercise the rights stipulated in the preceding article must be brought within one year of the delivery of the property.The cancellation of the contract shall not affect the rights of third parties acquired before the registration of the petition.212. A person who is selling a decedent's estate as a whole without mentioning its individual items must secure only his capacity of heir.The sale of a decedent's estate shall be executed in writing with notarised signatures.A contract for the sale of a decedent's estate which contains immovable property may defeat the claim of a third party only if it is registered.213. If prior to the sale of an estate the seller has collected some payments or has alienated some objects, he must return the buyer that which he has received.The buyer must restore to the seller what the latter has paid for the debts and burdens of the estate.214 - 221. (Repealed, SG No. 85/1963).II. EXCHANGE222. With a contract for exchange the parties shall transfer reciprocally the ownership of chattels or other rights.223. The rules of sale shall apply mutatis mutandis to exchanges, and each of the parties shall be deemed seller of what he is giving and buyer of what he is receiving.224. (Repealed, SG No. 12/1993).III. DONATION225. Under the contract of donation the donor shall transfer immediately and gratuitously something to the donee who shall accept it.The donation of movable property shall be effected in writing with notarised signatures, or by handing over, and of securities - as prescribed by the due procedure for their transfer.226. A promise to make a donation shall have no effects.A donation, as far as it concerns future property, is null and void.(Paragraph 3, amended, SG No. 12/1993) A donation is also null and void when it, or the single motive for which it was made, contravene the law or good morals, and also when the conditions or burdens are impossible.227. A donation may be repealed when the donee:a) Has intentionally murdered or attempted to murder the donor, his wife or his child, or is an accomplice in such a crime, except if the act was committed under circumstances that exclude culpability;b) Has slanderously accused the donor of committing a criminal act which is punishable with at least three years imprisonment, except if the slanderous accusation has to be prosecuted upon a complaint of the victim and no such complaint has been lodged, andc) Has refused to provide the donor with the support which the latter needs.These provisions shall not apply to customary or rewarding donations.The action may be brought within one year from the moment the donor has obtained knowledge of the grounds for repeal of the donation. Prior to the expiration of the above period the donor's heirs may bring the same action if the donor has died before that.A renunciation of the right to such action shall be null and void.The repeal of the donation shall not prejudice the rights which third parties have acquired over the donated properties before the registration of the petition, but the donee shall owe the donor compensation for all benefits he has gained.IV. LEASE OF PROPERTY228. Under the contract of lease the lessor is bound to provide a property to the lessee for temporary use, and the lessee - to pay him a certain price.229. (Paragraph 1 - supplemented, SG No. 92/2007) A contract of lease may not be signed for a period longer than 10 years, unless such contracts are commercial transactions.Persons who are capable only of activities of simple management may not conclude contracts of lease for a period longer than three years.If the contract is signed for a longer period it has a validity only for ten, respectively three years.230. If not agreed upon otherwise, the lessor is bound to hand over the property in a state which is appropriate to the use it has been leased for.If the property was not delivered in the proper state, the lessee may claim its repair or a proportional reduction in the lease price, or may avoid the contract of lease, as well claim damages in all cases.The lessor shall not be liable for the defects of the leased property which were known to the lessee or which he could easily detect if he had been normally attentive upon conclusion of the contract, except if the defects are hazardous to his health or the health of the members of his household.231. Small repairs related to damages which are caused by conventional use, such as dirty walls in the rooms, corrosion of faucets, door locks, blockage of chimneys etc., shall be at the expense of the lessee.The repair of all other damages, if they are not caused through the lessee's fault, shall be at the expense of the lessor. If the lessor fails to make these repairs, the lessee shall have the rights set forth in paragraph 2 of the preceding article, but he may claim damages only when the repair is due to reasons the lessor is liable for. If the lessee makes the repair himself with due diligence he may deduct the cost of the repair from the rent.When the property perishes completely or partially Article 89 shall apply.232. The lessee must use the property as specified in the contract, and when the use is not specified, in accordance with its function.He shall pay the lease and the expenses related to the use of the property.233. The lessee shall owe the return of the property. He shall owe compensation for the damage caused during the use of the property, except if he proves that it is due to reasons he is not liable for. He shall also owe compensation for the damage caused by members of his household or by his sub- lessees. It shall be presumed until proven otherwise that the property was accepted in a good state.The lessee must inform the lessor without delay of the damages and infringements committed against the leased property.234. If not agreed upon otherwise, the lessee may sublease parts of the leased property without the consent of the lessor. But even in this case he is not discharged from his obligations under the contract of lease.The sublessee shall not have more rights than the lessee as to the use of the property.The sublessee shall be liable to the lessor only for payment of the lease which he himself owes upon the bringing of the action, without being entitled to plead the payments he made in advance.235. A lessee of premises in a condominium must obey the internal rules of the condominium. Otherwise he may be evicted from the leased premises upon the motion of the management as well.236. If after the expiration of the term of the lease the use of the property continues with the knowledge and without the objection of the lessor, the contract shall be deemed extended for an indefinite term.If the lessee continues to use the property despite the objection of the lessor he shall owe compensation and must fulfil all obligations arising from the terminated contract of lease.237. (Paragraph 1, supplemented, SG No. 34/2000) In case of a transfer of immovable property the contract of lease shall remain valid with respect to the transferee if it was registered in the property register.A contract of lease concluded before the transfer of the property which has a verifiable date shall be binding upon the transferee for the term stated in it, but not for longer than one year from the date of transfer. If it does not have a verifiable date and the lessee is in possession of the property, the contract shall be binding upon the transferee as a contract of lease with an indefinite term.The lessor shall owe compensation to the lessee if the latter is deprived of the use of the leased property before the expiration of the term of the lease due to the transfer of the property.238. If the contract of lease has an indefinite term, each of the parties may renounce it by means of a one month's notice to the other party. But if the lease is daily a one day's notice shall be sufficient.239. Where the lease is created by an act of an authorized state body the relationships between the parties shall be regulated pursuant to the rules set above unless a special law decrees otherwise.V. LOAN240. Under a contract of loan the lender transfers into ownership of the borrower money or other fungibles and the borrower assumes the obligation to return the loaned sum or fungibles of the same type, quantity and quality.The borrower shall owe interest only if it is agreed upon in writing. This provision shall not apply to banks.Article 247 shall apply to loans.If not agreed upon otherwise, the borrower shall return the loaned money or chattels within one month from the invitation.241. A person who has committed himself to provide a loan may refuse to perform this obligation if the other contracting party had become insolvent.242. (Repealed, SG No. 12/1993).VI. LOAN FOR USE243. Under the contract of loan for use the lender shall provide gratuitously to the borrower one chattel in specie for temporary use and the borrower assumes the obligation to return it.244. The borrower must take due care of the chattel, giving higher priority to its preservation than to the preservation of his own belongings.He may use the loaned chattel only in accordance with the contract, and where the use has not been negotiated, in accordance with its function; he may not provide the use of the chattel to another.In case of non-performance of these obligations the borrower shall owe damages caused by reasons for which he is not liable, except where he may prove that they would have affected the chattel even if he had performed accurately.If the chattel has been loaned to several persons, they shall be liable jointly and severally.245. The borrower shall bear the habitual costs for maintenance, preservation and use of the chattel. He shall be entitled to claim from the lender the extraordinary expenses if they were necessary and urgent.246. Where the loaned chattel bears fruits the borrower must return them, unless agreed otherwise.247. The lender shall owe compensation for the damages caused to the borrower by the hidden defects of the loaned chattel if he deliberately or because of negligence has failed to report them to the borrower.248. Article 233 shall apply mutatis mutandis to the loan for use.249. Upon the expiration of the agreed upon term or after the termination of the use the borrower must return the chattel. But the lender may claim the return of the chattel even before that if he himself urgently needs it because of unforeseen developments or if the borrower dies or does not perform his obligations under Article 244.If the time or the purpose of the use are not specified in the contract, the lender may at any time claim the return of the chattel.VII. DEPOSIT250. Under the contract of deposit the depositor delivers a chattel to the depositary, who receives it with the obligation to keep it and return it.The depositary shall not be entitled to compensation unless it is agreed upon.251. The restrictions on proof by witness testimony shall not apply when the deposit is forced by some calamity such as fire, flood or other extraordinary event, as well as in cases where the chattel is delivered to an employee at a theatre, club, restaurant or other similar places.252. The depositor may at any time claim the return of the deposited chattel and the fruits received from it, even if it has been agreed upon that the deposit will last for a certain time period. In this case the depositor shall owe compensation only for the period within which the chattel was kept, but he must pay the depositary the expenses made by him based on the agreed upon term of the deposit.The deposited chattel shall be returned to the depositor at the depository.253. The depositary may not use the chattel without the consent of the depositor. Otherwise he shall owe compensation for the use and shall be liable pursuant to Article 244, paragraph 3.The depositary shall keep the chattels entrusted to him with due diligence.254. The depositor shall cover the extra expenses for the preservation of the chattel if they were necessary and urgent, and where the deposit was gratuitous - the usual expenses as well.He shall be liable for the damages and special expenses caused by hidden defects of the deposited chattel if the depositary was unaware of them.255. If no term was agreed upon for keeping the chattel, the depositary may discharge himself from the deposit obligation by notifying the depositor and providing him with a sufficient time period to receive the chattel.If upon the expiration of the term specified in the contract or in the notice the depositor has not received the chattel, the depositary shall be liable after the expiration of the said term only in case of deliberate action or gross negligence, and may petition the court of first instance to be permitted to sell the deposited chattel at a public auction. The claims of the depositary shall be paid out of the obtained sum, and the balance shall be deposited in a bank in the name of the depositor.256. (Repealed, SG No. 12/1993).257. Even when the deposited chattels are fungibles the depositary has no right to dispose of them, except with the permission of the depositor.In the latter case the rules for loans shall apply.The provision of paragraph 1 shall not apply to banks and the Savings Bank.VIII. A CONTRACT OF MANUFACTURE258. Under the contract of manufacture the contractor shall be liable at his own risk to manufacture something in accordance with the other party's order, and the latter - to pay a compensation.259. Unless otherwise agreed the contractor shall manufacture what is ordered with means of his own.260. The contractor must immediately inform the other party if the provided designs or supplied materials are unfit for the correct performance of the work, and ask for the necessary changes in the designs or for the supply of appropriate materials. If the other party fails to do so the contractor may renounce the contract.If the contractor fails to provide the above warning, he shall be liable before the other party for the damages caused.261. The contractor must perform the work in such a manner that it becomes fit for the usual or stipulated in the contract purpose.The contractor who is performing the work with his own materials is responsible for good quality.Where several persons have assumed the obligation to perform together certain work, they shall be liable jointly and severally, unless otherwise agreed.262. The person ordering the work may check the performance of the contract at any time, provided he does not disturb the contractor.(Paragraph 2 , amended, SG No. 12/1993) If it becomes evident that the contractor will not be able to perform the work on time or that he will not perform it in the way agreed upon or as due, the person ordering the work may avoid the contract and claim damages under the general rules.263. The risk of chance loss or damage of the materials shall be borne by the party providing them, if the other party is not in default.264. The person ordering the work must accept delivery of the work done in accordance with the contract.Upon accepting delivery he shall examine the work and shall state all the objections for improper performance, except for such defects which cannot be revealed through the usual manner of acceptance of delivery or for such which are revealed only later. The person ordering the work shall inform the contractor of such defects immediately after they are discovered. This shall not be necessary when the contractor was aware of them.If no such objections are raised, the work shall be deemed accepted.265. (Paragraph 1, corrected, Izv. No. 2/1950) If during the performance of the work the contractor has deviated from the order or if the work done has deficiencies, the person ordering the work may claim:repair of the work within a stipulated by him period without payment;covering of the expenses needed for the repair or a respective reduction of the compensation.If the deviation from the order or the deficiencies are so material that the work is deemed unfit for its contractual or ordinary purpose the person ordering the work may avoid the contract.These rights shall be extinguished by limitation within six months, and in case of construction work - within five years.266. The person ordering the work shall pay compensation for the accepted work. If the compensation is agreed upon on a unit price basis, its amount shall be determined upon acceptance of the work.If in the course of the performance of the contract the duly determined prices of materials or labour change, the compensation shall be adjusted accordingly, even where it was agreed upon as a total sum.(Paragraph 3, repealed, SG No. 12/1993).267. If the performance of the work becomes impossible due to a reason neither party is liable for, the contractor has no right to compensation. If one part of the work was done and may be of use to the person ordering the work, the contractor is entitled to a respective part of the agreed compensation.The contractor shall be entitled to compensation if the performance of the work has become entirely or partially impossible due to the unfitness of the materials or designs provided by the person ordering the work, and the contractor has duly notified him.268. If there are reasonable grounds the person ordering the work may renounce the contract, regardless of the fact that the performance has begun, by paying the contractor for the costs incurred, the work done and the profit which he would have obtained from the performance of the work.(Paragraph 2, repealed, SG No. 12/1993).269. If the contractor dies or becomes unable to proceed with the work the contract shall be terminated, unless it was concluded with regard to the person of the contractor and his heirs agree to proceed with the work.Upon the termination of the contract the person ordering the work shall pay for the work done and for the usefully invested materials in accordance with the contracted compensation.IX. PUBLISHING CONTRACT, CONTRACT OF PUBLICPERFORMANCE AND SCENARIO CONTRACT270. - 278. (Repealed, SG No 56/1993).279. (Repealed, SG No 12/1993).X. MANDATE280. Under the contract of mandate the mandatory assumes the obligation to perform on behalf of the mandator the acts for which he is commissioned by the mandator.281. The mandatary shall perform the mandate in good faith and protect the property received in connection with the mandate.282. The mandatary may deviate from the mandate, if this has become necessary for the protection of the mandator's interests and when it is impossible to obtain the mandator's consent.283. The mandatary must perform the mandate personally.He may authorize another if he is authorized by the mandator or when this has become necessary for the protection of the mandator's interests, and if failure to do so would have resulted in damage for the mandator.The mandatary must immediately notify the mandator of this authorization.A mandatary who lacked a mandate to authorize another person shall be liable for the acts of this person as if they were his own, and a mandatary who had a mandate to authorize another person shall be liable for any damage caused by his poor choice.284. The mandatary shall notify the mandator of the performance of the mandate.The mandatary must provide an account for his acts to the mandator and deliver to him everything received in the performance of the mandate.285. The mandator must upon request deliver to the mandatary the means necessary for performance of the mandate and recover the expenses made by the latter, plus interests and damages suffered in the course of performance of the mandate.286. (Amended, SG No. 12/1993) The mandator shall pay compensation to the mandatary only if negotiated.287. The contract of mandate shall be terminated upon, in addition to other reasons set forth in the law, the withdrawal of the mandate by the mandator, upon the mandatary's renunciation thereof, and upon the death or placing under juridical disability of the mandatary or mandator, as well as with the dissolution of the legal person if it had been either mandator or mandatary.288. The withdrawal of the mandate shall not deprive the mandatary of the right to demand payment of expenses or of the agreed upon compensation.If the performance of the mandate becomes impossible, the mandator must reimburse the mandatary for his expenses and pay him compensation for the work performed.289. A mandatary who renounces the mandate without good reason and fails to notify promptly the mandator of this shall owe compensation for the damages caused by his renunciation.290. The acts undertaken by the mandatary in performance of the mandate without knowing and not being able to learn of its termination shall obligate the mandator.291. Upon termination of the mandate due to death, placing under juridical disability or dissolution of the legal person, the heirs, guardian, trustee or the liquidator shall immediately notify the other party and shall undertake the necessary steps to protect its interests.292. If the mandatary acts on behalf of the mandator as a direct agent, the rights and obligations from transactions effected with third parties shall arise directly for the mandator.If the mandatary acts in his own name, the rights and obligations from transactions effected with third parties shall arise directly for him. But in the internal relationship between mandatary and mandator, as well as with respect to third mala fide parties, these rights shall be deemed rights of the mandator. These rights shall also be deemed rights of the mandator with respect to the bona fide creditors of the mandatary if the contract of mandate has a verifiable date preceding the attachment. This rule shall apply to the mala fide creditors of the mandatary even without a verifiable date on the contract.When the mandate is for acquiring real rights on immovable property in the name of the mandator, the contract shall be made in writing with notarised signatures.XI. COMMISSION MERCHANT CONTRACT293. - 303 (Repealed, SG No. 83/1996).XII. FORWARDING CONTRACT304. - 308. (Repealed, SG No. 83/1996).XIII. CONTRACT OF CARRIAGE309. - 322. (Repealed, SG No. 83/1996).XIV. INSURANCE CONTRACT323. - 356. (Repealed, SG No. 83/1996).XV. PARTNERSHIP357. Under the contract of partnership two or more persons agree to unite their activities for achieving a common objective.(Paragraph 2 repealed, SG No 12/1993).358. For the achieving of the common objective the partners may also agree to contributions in cash or other property.The contributed cash, fungibles and perishable goods shall be owned jointly by the partners. All other goods shall be deemed contributed for joint use, unless otherwise agreed.Concerning the liability of the partner for deficiencies in the contributed goods and for an injunction, where the contributed goods are for use the provisions of the contract of lease shall apply, and where the goods are contributed into ownership the provisions of the contract of sale shall apply.359. Everything acquired by the partnership shall be the common property of the partners.Unless otherwise agreed the shares of the partners shall be equal.A partner may claim his share of the common property only when withdrawing from the partnership or upon its dissolution.360. The decisions concerning the partnership's affairs shall be passed with the consent of all partners, except if the memorandum of association provides for a majority vote. Each partner shall be entitled to one vote.Unless provided otherwise each partner shall have the right to management. However, in such a case each of the remaining partners may object to an act of the partner before it has been performed. Disagreements shall be settled by a majority vote.361. Unless otherwise provided the profits and losses shall be distributed among the partners pro rata to their shares.Agreements for excluding some partners from participation in the losses or profits shall be invalid.362. A partner may not assign his right of participation in the partnership without the consent of the other partners.363. The partnership shall be dissolved:a) with the achieving of the partnership's objective or if the achievement of this objective has become impossible;b) with the expiration of the time period for which the partnership was set up;c) with the death or placing under judicial interdiction of one of partners, unless otherwise agreed;d) by notice from one of the partners made in good faith and in good time if the partnership was established for an unspecified term, if it was not agreed that the partnership would continue with the remaining partners, ande) upon a court ruling if there exist grounds for that, when the partnership was set up for a specified term.364. A partner shall be entitled to claim reimbursement for the expenses incurred by him, together with the interest, as well as the damages suffered by him in connection with the partnership's affairs.XVI. SETTLEMENT365. Under a settlement the contracting parties shall terminate an existing dispute or avoid a potential dispute with mutual concessions.Legal relationships which have not been a subject of the dispute may also be created, modified or extinguished with mutual concessions. In such cases the assigning of these rights shall be executed in the form specified by law.366. A settlement on an illegal contract shall be null and void even if the parties have agreed on its nullity.367. A settlement reached on the basis of documents recognized subsequently as simulated shall be invalidatable.XVII. PUBLIC PLEDGE OF AWARD368. A public pledge of award for the performance of a specified work made in writing or announced in the press or otherwise obligates the pledgor to pay the award.Where the work is performed by two or more persons, the award shall be divided between them in accordance with their participation in the work, and provided this is impossible to determine, it shall be divided equally between them.Where no consent can be reached between the persons on this issue, the award shall be paid out after the settlement of the dispute in court.Where the work is done by two or more persons independently from each other, the award shall be paid to the person who first presents the work, and when the work is presented simultaneously, the award shall be divided equally.369. (Paragraph 1, amended, SG No. 12/1993) The public pledge of award for best done work (contest) obligates the pledgor to pay the person whose work wins the contest.The decision whether the presented works meet the terms of the contest and the comparative evaluation of the works shall be made in a manner specified in the announcement.Where it is recognized that the persons participating in the work equally merit the award, the award shall be divided equally between them.XVIII. PROMISSORY NOTE, BILL OF EXCHANGE AND CHEQUE370. - 435. (Repealed, SG No. 83/1996).436. (Repealed, SG No. 28/1982).PART THREE(New, SG No. 19/2003)LAW APPLICABLE TO PRIVATE INTERNATIONAL CONTRACTS1. Choice of Applicable Law437. (Repealed, SG No. 42/2005). 2. Applicable Law in the Absence of Choice438. (Repealed, SG No. 42/2005). 3. Special Imperative Provisions439. (Repealed, SG No. 42/2005). 4. Validity of Contracts440. (Repealed, SG No. 42/2005). 441. (Repealed, SG No. 42/2005). 5. Form of Contracts442. (Repealed, SG No. 42/2005) 6. Subrogation, Transfer of Receivables443. (Repealed, SG No. 42/2005). 444. (Repealed, SG No. 42/2005). 7. Proof445. (Repealed, SG No. 42/2005). 8. Scope of Applicable Law446. (Repealed, SG No. 42/2005). 447. (Repealed, SG No. 42/2005). 9. Excluding Further Referencing448. (Repealed, SG No. 42/2005). 10. Public Order449. (Repealed, SG No. 42/2005). AMENDMENTS IN OTHER ACTSI. In the Civil Legal Proceedings Act 1.*2 Following Article 638 a new Article 638bis. shall be created:Where an action pursuant to Article 19, paragraph 3, of the Obligation and Contracts Act is brought, if according to the preliminary contract the plaintiff must fulfil a reciprocal obligation upon conclusion of the final contract, the court ruling shall replace such contract against performance of the plaintiff's obligation. In such a case the plaintiff must perform within two weeks of the entry into force of the ruling.If the plaintiff does not perform within the time period, the court of first instance shall invalidate the ruling upon a petition of the defendant.With its ruling the court shall mandate the plaintiff to pay to the State the expenses due for the transfer of the property and shall order that an attachment be created on the property for these expenses. 2.*3 Following Article 1001, a new Chapter shall be added:"C h a p t e r X - aCancellation of Securities Payable to OrderArticle 1001a.Whoever against his will has been deprived of possession of a security payable to order, may apply to the court of first instance of the place of payment to cancel it.The precise content of the security must be described and the applicant must indicate how he was deprived of the security. The latter must confirm the veracity of his statement by an explicit declaration in the application.Article 1001b.After receiving the application, the court shall order the person which must pay the security on maturity not to pay the amount and shall give the bearer 45 days to claim his rights on it. The payer shall be notified of the order and it shall be promulgated in the State Gazette.This time period shall run from the date of the promulgation of the order, and if that occurs before maturity - from maturity.Article 1001c.If within the said time period no one claims his rights on the security in court, the court shall decree its cancellation. If such rights are claimed and the security is presented, the court shall terminate the proceedings and shall repeal its order, and the interested parties may seek their rights through the general procedure.Article 1001d.After the cancellation of a security the applicant shall exercise the rights on it on the basis of the cancellation order, but he shall be liable to its owner for damages and losses.II. In the Privileges and the Mortgages Act 3. Following Article 5, a new Article 5bis shall be created:"Petitions for rulings for concluding final contracts (Art. 19, paragraph 3 of the Obligations and Contracts Act), with which a real right on immovable is created shall be registered.The acquired real rights and attachments after the registration cannot be set up against the petitioner. But the State, for its claims against the transferor which have become executable prior to the date of transfer or creation of the real right, may direct its claim at the property, regardless in whose hands it is.The ruling which has entered into force with which the action is upheld shall be registered upon a copy issued by the court, after the petitioner proves that he has performed the obligations on which the transfer of the property is dependent."TRANSITIONAL RULES 4. This Act shall enter into force on January 1, 1951 and shall repeal:1. The Obligation and Contracts Act.2. The Commerce Act, with the exception of Articles 14-26, 66 238, 277 and 278, which remain in force.3. Articles 5 to 7 of the Interest Taking Act4. The Privileges and Mortgages Act, with the exception of: Articles 1-5 (including the new Article 5bis), 118 and 119, as well as the Notary Tariff Schedule, and 17 of the Amendment Act of the same Act from 15.12.1948.5. The Protective Concordat Act.6. Articles 10, 17, 24-28, 36-38 and 40-50 of the Limitation Act; the other Articles of that Act shall stay valid only with respect to prescription.7. Articles 81-88 of the Inheritance Act. 5. The pending proceedings in the Courts on declared insolvency and on provided preventive concordat shall be finished under the existing procedures. 6. The references in different Acts to the texts of the Acts repealed under 4, shall be valid as references to the corresponding text of this Act. 7. The provisions for the duration of the limitation and prescription and the other time periods provided by this Act cannot be applied to the limitation and prescriptions and the terms which have started running under the previous Act, unless for their termination under the previous legislation a longer term than that provided under this Act is provided.--------------*This amendment shall not be applicable to any transactions concluded but not effected by 1 November 1996.(1) Private international law qualifies as characteristic any contractual obligation different to payment - remark of translator*2 See Art. 297 and 298 in Code of civil procedure*3 See Art 456 - 464 in Code of civil procedureDECISIONof the National Assembly on the interpretation of article 7 of the Procedure for Transferring Real Rights on Certain Immoveable Properties Act in relation to article 19, paragraph 3 of the Obligations and Contracts Act(Izvestyia, No. 9/1962)Preliminary contracts for acquisition or alienation of real rights on immoveable properties on the territory of City of Sofia People's Council concluded from 30 July 1957 until 15 November 1958 while the Decree on the Procedure for Transferring the Right to Ownership on private not built-up lands on the territory of the City of Sofia People's Council may be declared final under the procedure of article 19, paragraph 3 of the Obligations and Contracts Act if the Executive Committee of the City of Sofia People's Council has given permission for their execution on the grounds of the Decree.DECISIONof the National Assembly on the interpretation of article 92, paragraph 3of the Obligations and Contracts Act(Izvestyia, No. 9/1962)The court and the arbitration court cannot reduce the amount of the indemnity under article, 92, paragraph 3 of the Obligations and Contracts Act in the cases when this amount has been determined by a statutory instrument.ACT on Amending and Supplementing the Obligations and Contracts Act(SG, No. 12/1993) 38. Everywhere in the text of Chapter XIV "Insurance Contract) the words "State Insurance Institute" and "SII" shall be replaced with "the insurer" and "insurer" respectively.TRANSITIONAL AND FINAL PROVISIONSto the Act to Amend and Supplement the Commerce Act(SG, No. 83/1996, effective 1.11.1996). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11. The amendments and supplements to the Obligations and Contracts Act shall not apply to transactions which have been concluded but have not been imoplemented before its entry into force.Lev Re-denomination Act Promulgated, State Gazette No. 20/5.03.1999,amended, SG No. 65/20.07.1999 (effective 5.07.1999).TRANSITIONAL AND FINAL PROVISIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. (1) (Amended, SG No. 65/1999) Upon the entry of this Act into force, all figures expressed in old lev terms as indicated in the laws which will have entered into force prior to the 5th day of July 1999 shall be replaced by figures expressed in new lev terms, reduced by a factor of 1,000. The replacement of all figures expressed in old lev terms, reduced by a factor of 1,000, shall furthermore apply to all laws passed prior to the 5th day of July 1999 which have entered or will enter into force after the 5th day of July 1999.(2) The authorities, which have adopted or issued any acts of subordinate legislation which will have entered into force prior to the 5th day of July 1999 and which contain figures expressed in lev terms, shall amend the said acts to bring them in conformity with this Act so that the amendments apply as from the date of entry of this Act into force.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. This Act shall enter into force on the 5th day of July 1999. For more information visit www.solicitorbulgaria.com id: 304 Fri, 01 Aug 2008 02:05:11 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-obligations-and-contracts-act http://web.solicitorbulgaria.com/index.php/bulgarian-obligations-and-contracts-act http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/OBLIGATIONS_AND_CONTRACTS_ACT.JPG EUR http://web.solicitorbulgaria.com/index.php/bulgarian-obligations-and-contracts-act legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Section IIIRemoval of Unusable or Unsafe Construction WorksArticle 195. (Amended, SG No. 28/2005, SG No. 94/2005, SG No. 61/2007) (1) The owners of construction works shall be obligated to maintain the said works in a technical condition conforming to the essential requirements covered under Article 169 (1) to (3) herein, not to perform and not to tolerate the performance of any alterations in the said works that lead or may lead to a deterioration of the design elevations in accordance with the requirements for the entire construction work or for particular characteristics thereof.(2) The owners of any corporeal immovables which are monuments of culture shall be obligated to exercise due care for the protection, conservation and maintenance in good condition of the said monuments in conformity with the provisions of the Monuments of Culture and Museums Act and of this Act.(3) Upon any accidents or other circumstances exposing any work referred to in Paragraph (1) or (2) to a risk of damage… For more information visit http://www.solicitorbulgaria.com id: 301 Section IIIRemoval of Unusable or Unsafe Construction WorksArticle 195. (Amended, SG No. 28/2005, SG No. 94/2005, SG No. 61/2007) (1) The owners of construction works shall be obligated to maintain the said works in a technical condition conforming to the essential requirements covered under Article 169 (1) to (3) herein, not to perform and not to tolerate the performance of any alterations in the said works that lead or may lead to a deterioration of the design elevations in accordance with the requirements for the entire construction work or for particular characteristics thereof.(2) The owners of any corporeal immovables which are monuments of culture shall be obligated to exercise due care for the protection, conservation and maintenance in good condition of the said monuments in conformity with the provisions of the Monuments of Culture and Museums Act and of this Act.(3) Upon any accidents or other circumstances exposing any work referred to in Paragraph (1) or (2) to a risk of damage or destruction, the owner of the work shall be obligated to undertake immediate action for the prevention of the said circumstances or for elimination of the damage caused and restoration of the work, and to notify the municipality. In respect of the works referred to in Paragraph (2), the owner shall notify the National Institute of Monuments of Culture as well.(4) In case any work referred to in Paragraph (1) or (2) is not maintained in good condition, as well as upon occurrence of the circumstances referred to in Paragraph (3), the competent municipality mayor shall issue an order thereby obligating the owner to perform, within a specified time limit, the repair and restoration activities required for repair or reinforcement.(5) The competent municipality mayor may issue an order obligating the owners of any works referred to in Paragraph (1) or (2) to remove, transform or repair any fences, parking garages, subordinate, farm and temporary structures, cesspools, sewer facilities and plantation of an inappropriate location, siting, type or materials, as well as to perform the works as shall be necessary in the interest of security, traffic safety, health care, hygiene, aesthetic appropriateness, sanitation, and the peace, quiet, comfort and repose of persons.(6) The competent municipality mayor shall issue an order on the removal of any construction works which, owing to natural wear or other circumstances, pose a health and life hazard to citizens, are unusable, present a risk of spontaneous collapse, create conditions for the occurrence of a fire or are harmful in terms of sanitation and hygiene and cannot be repaired or reinforced.(7) The owners of any works covered under Paragraph (1) or (2) shall incur pecuniary liability for any detriment inflicted and lost profit sustained through culpable acts or omissions thereof, as a result of which an accident has occurred at the construction work which has led to damage to property or injury to third parties and properties.Article 196. (Amended, SG No. 61/2007) (1) The condition of construction works and the requisite repair and restoration activities, as well as the circumstances covered under Article 195 (6) herein, shall be ascertained by a memorandum by a commission appointed by the competent municipality mayor. In respect of any corporeal immovables which are monuments of culture, the said commission shall mandatorily include representatives of the National Institute of Monuments of Culture.(2) The commission shall act proprio motu or at the request of the interested parties, gathering all information as shall be necessary about the type and condition of the construction work and hearing the interested parties. On the basis of the findings recorded in the memorandum, the commission shall propose to the [competent] municipality mayor that the construction work be repaired, reinforced or removed.(3) Construction works shall be repaired, reinforced or removed by the owners for their own account within a time limit set in the order of the municipality mayor referred to in Article 195 (4), (5) or (6) herein. Where the construction work poses an immediate hazard to human health or life, the municipality mayor shall authorize anticipatory execution of the order.(4) The order referred to in Paragraph (3) shall be communicated to the interested parties and shall be appealable according to the procedure established by Article 215 herein.(5) Where the order referred to in Paragraph (3) authorizes anticipatory execution or where the said order has not been complied with within the time limit set, the construction work shall be repaired, reinforced or removed by the municipality according to a procedure established by a Municipal Council ordinance. A mortgage on the corporeal immovable shall be recorded in favour of the municipality in such case.(6) On the basis of the effective order referred to in Paragraph (3) and a memorandum of expenditures incurred, a writ of execution in favour of the municipality shall be issued for recovery of the claim according to the procedure established by Littera (j) of Article 237 of the Code of Civil Procedure. (7) The owners of construction works shall be obligated to afford access for performance of the activities defined in the order of the municipality mayor. If the owners refuse to afford such access, the access shall be ensured coercively with the cooperation of the police.Article 197. (1) (Amended, SG No. 28/2005, SG No. 94/2005, SG No. 61/2007) In cases other than such covered under this Section, an owner may remove a legal construction work thereof after notifying the municipal administration (or borough administration) and the Geodesy, Cartography, and Cadastre Agency and, where the construction work constitutes a cultural and historical heritage site, after clearance with the National Institute of Monuments of Culture under the terms and according to the procedure established by Article 125 (5) herein.(2) Depending on the type of construction work, the complexity and nature of the removal, the Chief Architect of the municipality (or ward) may give mandatory technical prescriptions.Chapter FourteenBAN ON CONSTRUCTIONArticle 198. (1) A ban on construction may be imposed by an order of the municipality mayor for the duration of the time as shall be necessary for:1. creation of master plans and detailed plans;2. conduct of investigation for physical-infrastructure underground networks and facilities and for construction of such networks and facilities.(2) A ban on construction may be imposed on a single occasion for a period not exceeding two years. Any such ban on construction may be re- imposed by an order of the Minister of Regional Development and Public Works for a period not exceeding one year.(3) The Minister of Regional Development and Public Works may impose a ban on construction for the purpose of identifying the overall stability of the ground in landslide-hazard areas for a period not exceeding two years, and, in connection with the performance of work to remove and eliminate geologichazards, until implementation of the said work.(4) A ban on construction shall suspend action for the application of the effective master plans and detailed plans in respect of the spatial-development areas concerned.Chapter FifteenSTATE AND MUNICIPAL RIGHT OF FIRST REFUSALArticle 199. (1) The State and the municipality shall have the right of first refusal to purchase a corporeal immovable where, according to a detailed plan, the said property is projected for construction of a work constituting public state or public municipal property before the said corporeal immovable is sold to any third parties who or which are not co-owners.(2) An owner may sell a corporeal immovable referred to in Paragraph (1) or any parts thereof to a third party solely after offering the said property for purchase first to the State or to the municipality, depending on the projections of the detailed plan, and submitting a written refusal to a notary. Any such refusal shall specify the terms and conditions whereupon the purchase was offered. The terms and procedure established by Article 33 of the Ownership Act shall apply in such a case.Chapter SixteenTECHNICAL REQUIREMENTS AS TO ACQUISITION AND PARTITION OFCORPOREAL IMMOVABLESArticle 200. (1) Physically defined parts of lots situate within nucleated-settlement or dispersed-settlement limits may be acquired through legal transactions or through acquisitive prescription solely where the requirements as to the minimum size established by Article 19 herein have been complied with.(2) The rule of Paragraph (1) shall not apply where the part of the lot is incorporated into an adjoining property under the terms established by Article 17 herein and the remainder satisfies the requirements of Article 19 herein or is incorporated into another adjoining property.(3) (Repealed, SG No. 36/2004).Article 201. (Amended, SG No. 65/2003) (1) In a judicial partition of a regulated lot for the purpose of formation of new regulated lots, the court shall approach the municipal administration (or ward administration) for an opinion as to the divisibility of the property.(2) A regulated lot shall be indivisible where it shall be impossible to prepare a design for the division of the said lot into two or more parts without creating a legally impermissible siting of existing buildings or of authorized construction works and without creating regulated lots whereof the frontage and surface area are less than the minimum requirements established by statute for the building-development character and manner determined by the building-development plan of the lot to be partitioned.(3) (Amended, SG No. 28/2005, SG No. 94/2005, SG No. 61/2007) Where the regulated lot is divisible, the Chief Architect of the municipality (or borough) shall order, by a reasoned prescription addressed to the parties, the preparation of a draft modification of the effective regulation plan. Any order modifying the regulation plan shall enter into effect according to the procedure established by Article 15 (6) herein and shall be applied after the entry into effect of the judgment of court on partition. Advance clearance with the National Institute of Monuments of Culture under the terms and according to the procedure established by Article 125 (5) herein shall be required in respect of any regulated lots which enjoy the status of cultural and historical heritage sites.(4) Should the regulated lot be indivisible, the Chief Architect shall transmit an opinion thereof to the court within fourteen days after receipt at the municipality of the request of the court under Paragraph (1).(5) The court shall consider the opinion of the Chief Architect referred to in Paragraph (4). Should the court determine that the said opinion is unfounded and that the impediments to division of the regulated lot, covered under Paragraph (2), do not exist, the court shall issue a ruling giving mandatory directions for modification of the regulation plan according to the procedure established by Paragraph (3).Article 202. A voluntary partition of a co-owned building, dwelling unit or another work, as well as any legal transactions for the transfer of physically defined parts of such properties, may be performed solely where the defined interests or parts conform to expressly approved development-project designs, with the exception of the works referred to in Item 1 of Article 147 (1) herein. This conformity shall be attested by the municipal administration (or ward administration).Article 203. (1) A judicial partition of a co-owned building, dwelling unit or another work shall be performed solely where the respective parts may become self-contained works without significant remodelling and without causing inconvenience greater than the customary one, in compliance with building rules and standard specifications. The Chief Architect of the municipality (or ward), acting on a motion by the court and within a time limit established by the court, shall approve a development-project design or shall issue a reasoned refusal. Where technically feasible as proven by a development-project design, multiple alternate options of a partition shall furthermore be approved.(2) Any approval of the designs or any denial referred to in Paragraph (1) shall be appealable as to legal conformity before the court which is hearing the case of partition in the same proceeding.Article 204. Copies of the effective detailed plans referred to in Articles 200 and 201 herein and of the approved development project designs referred to in Articles 202 and 203 herein shall be transmitted to the Geodesy, Cartography, and Cadastre Agency under terms and according to a procedure established according to the Cadastre and Property Register Act. Chapter SeventeenINDEMNIFICATION UPON CONDEMNATION OF CORPOREAL IMMOVABLES FORCONSTRUCTION OF PROJECTS CONSTITUTING PUBLIC STATE AND PUBLICMUNICIPAL PROPERTYSection IConditions for Condemnation and IndemnificationArticle 205. On the basis of effective detailed plans, corporeal immovables owned by legal and natural persons may be condemned according to the procedure established by the State Property Act and the Municipal Property Act for works constituting state and municipal property, as follows:1. (supplemented, SG No. 65/2003) for construction and redevelopment of the transport physical infrastructure, remodelling of transport and communication networks and facilities: roads, streets, squares, above-ground and underground routes of railroad and tramway lines and facilities thereto appertaining;2. (amended, SG No. 65/2003, SG No. 41/2007) for construction and redevelopment of other physical-infrastructure networks and facilities: water supply, sanitary sewerage, treatment of drinking and waste water, electricity supply, central heating and hot-water supply, gas supply system installation, electronic communications networks and other such;3. for implementation of environmental and natural resources protection activities, action to remove and eliminate geologic hazards, stream-bank and shoreline stabilization, as well as for spatial renewal: greenspaces for general public use, aquatic surfaces and streams, landscaped cemeteries, and household-waste treatment;4. for construction of public health-care facilities, social assistance facilities, and educational establishments.Article 206. (1) For construction of any projects covered under Article 205herein, there shall be condemned corporeal immovables or parts thereof which are immediately affected by the planned construction or become unfit for building development or use in conformity with the rules and standard specifications of planning, sanitation, hygiene and fire protection, as well as in conformity with the requirements of security and safety.(2) Parts of lots shall be condemned solely were a regulated lot may be formed out of the remainder of the property in accordance with the requirements of Article 19 herein.(3) It shall be permissible for parts of lots out of which no regulated lots can be formed to be consolidated into co-owned regulated lots under the terms established by Articles 17 and 19 herein, without being condemned.(4) In cases where the principal development is preserved and the remainder of the lot may be used as intended prior to the condemnation, an undersize regulated lot may be formed with the consent of the owner.(5) Where the owners refuse their consent in the cases of Paragraphs (3) and (4), the entire lot shall be condemned.Article 207. (Supplemented, SG No. 65/2003) Upon construction of projects and facilities covered under Article 205 herein, the land shall not be condemned if the owner thereof creates a building right, with the exception of the transport physical infrastructure elements constituting public state or municipal property.Article 208. (Supplemented, SG No. 65/2003, SG No. 61/2007) Condemnation procedures under the State Property Act and the Municipal Property Act in respect of corporeal immovables designated under the detailed plans for construction of works constituting public state or municipal property must be initiated within five years after the effective date of the said plans and within ten years after the effective date of the detailed plans for construction of physical-infrastructure elements covered under Article 64 herein which constitute public state or municipal property and, applicable to any properties projected for greenspaces under Article 61 (4) herein, within fifteen years after the effective date of the plans. Upon expiry of the said time limit, the owners of any such corporeal immovables shall enjoy the rights under Item 1 of Article 134 (2) herein.Article 209. (1) (Amended, SG No. 65/2003) The terms and procedure for condemnation under the State Property Act and under the Municipal Property Act shall not apply where parts of lots are condemned for widening of the transport-infrastructure elements: highways and roads of the national road network, railroads and railroad stations, airports, ports, streets, boulevards and squares, whereby the properties can be used as intended prior to the condemnation. In such a case, the owners shall receive pecuniary compensation.(2) (Supplemented, SG No. 65/2003) The Regional Governor or the municipality mayor, as the case may be, shall issue an order regarding the condemnation whereby, on the basis of an appraisal made by licensed professionals, the said governor or mayor shall determine:1. the amount of pecuniary compensation at market prices;2. the date whereat the condemned part shall be taken.(3) Any order referred to in Paragraph (2) shall be appealable according to the procedure established by Article 215 (1) herein.(4) The part of the lot shall be deemed to be condemned as from the day of payment of the pecuniary compensation.Section IIIndemnification in Other CasesArticle 210. (1) The preparation of appraisals and the determination of the amount and payment of compensation in cases expressly specified in the law shall be made at market prices set by a commission appointed by the municipality mayor.(2) Acting proprio motu or on a request by the interested parties, the mayor shall order the commission to determine compensations or make an appraisal.(3) (Amended, SG No. 61/2007) The decision of the commission shall be communicated to the parties according to the procedure established by the Administrative Procedure Code. The said decision shall be appealable by the said parties according to the procedure of Article 215 (1) herein.(4) The amount of compensation according to an effective appraisal shall be credited to an account with a commercial bank and shall be paid to title holders on a mandate from the municipality mayor or an official authorized thereby.(5) (Amended, SG No. 61/2007) A person who wishes to benefit from an appraisal prior to the entry into effect of the decision of the commission must deposit with the bank an amount equivalent to the compensation as determined to the order of the title holder. Payment of the said amount shall have effect in respect of the title holder as from the day of communication effected by the municipality according to the procedure established by the Administrative Procedure Code. The amount credited shall be paid to the title holder on a mandate from the municipality mayor. Title holders must be fully compensated for the balance within one month after the entry of the appraisal into effect.(6) (Amended, SG No. 61/2007) Upon refusal or delay in payment of the amount under an effective decision referred to in Paragraph (3), the interested party may obtain from the court a writ of execution under Litterae (c) and (j) of Article 237 and Article 242 et seq. of the Code of Civil Procedure and request the National Construction Control Directorate to suspend operations and instruments until payment of the amount.(7) Legal interest shall accrue on the amount of unpaid compensation as from the due day.Article 211. (1) The pecuniary compensation due under Article 210 (4) herein shall be credited to an account with a commercial bank to the order of the title holders where:1. the right to compensation has not yet been established by the appropriate documents;2. (amended, SG No. 61/2007) the title holder has not reported to present the requisite documents within fourteen days after receipt of the communication according to the procedure established by the Administrative Procedure Code; 3. there is a controversy between several parties regarding the right to the amount due; in such a case, the bank shall pay the amount to the party who establishes the rights thereof through a judicial proceeding;4. the whereabouts of the title holders is unknown;5. (new, SG No. 65/2003) the lots are located within unregulated spatial-development areas left after restitution of the title of owners and are stewarded and managed by the municipality under the terms and according to the procedure established by the Agricultural Land Ownership and Use Act. (2) (Amended, SG No. 61/2007) Payment of the amount shall have effect in respect of the title holders as from the day of communication according to the procedure established by the Administrative Procedure Code. Chapter EighteenPUBLIC FACILITIES MUNICIPAL FUND(Repealed, SG No. 111/2001)Article 212. (Repealed, SG No. 111/2001).PART FIVESPATIAL DEVELOPMENT CONTROLChapter NineteenJUDICIAL REVIEW OF INDIVIDUAL ADMINISTRATIVE ACTS REGARDINGSPATIAL DEVELOPMENTArticle 213. (Amended, SG No. 65/2003, amended SG No. 30/2006) The administrative acts regarding spatial development shall be appealable before the courts of law as to legal conformity under the terms and according to the procedure established by this Act and, in matters which are not regulated thereby, under the Administrative Procedure Code. Article 214. Within the meaning given by this Act, individual administrative acts shall comprehend:1. the spatial development acts covered under Article 1 herein, the refusals to issue such acts, and the administrative acts reversing or affirming acts issued according to an administrative procedure whereby rights or duties are created or rights or legitimate interests of individual natural or legal persons are affected, regardless of whether such persons or entities are expressly identified as subjects;2. the acts referred to in Item 1, which have been issued by the National Construction Control Directorate, by the ward mayors and mayoralty mayors, by the Chief Architects and other empowered officials in the regional, municipal and ward administrations;3. the acts to suspend, ban the use, and remove illegal construction works.Article 215. (1) (Supplemented, SG No. 65/2003, amended, SG No. 30/2006, effective 1.03.2007, SG No. 61/2007) The individual administrative acts under this Act, the refusals to issue any such acts and the administrative acts reversing or affirming any such acts, with the exception of such covered under Article 216 (1) herein, shall be appealable before the relevant administrative court.(2) The decisions of the commission referred to in Article 210 (3) herein shall furthermore be appealable according to the procedure established in Paragraph (1), and the municipality and the interested parties shall be called in the case.(3) A public prosecutor may file for a judicial review of any appealable acts as to legal conformity.(4) Any appeals and review filings shall be lodged care of the authority whose act is appealed or reviewed, within fourteen days after communication of the said act. The legal person on behalf of which the act has been issued shall likewise be called as a party to the cases and shall participate in the proceedings.Article 216. (Amended, SG No. 65/2003) (1) The following administrative acts of the Chief Architects of municipalities (or wards) shall not be subject to direct appeal through a judicial proceeding:1. the refusals to clear and approve any development-project designs, where not constituting an integral part of the integrated development- initiative design;2. the building permits together with the cleared and approved development-project designs, where such are required, and the refusals to issue any such permits, where not constituting an integral part of the integrated development-initiative design.(2) The administrative acts covered under Paragraph (1) shall be appealable as to legal conformity before the chiefs of the Regional Offices of the National Construction Control Directorate and, in respect of the special-purpose installations related to national defence and security, before the Minister of Defence or before the Minister of Interior, as the case may be.(3) (Amended, SG No. 30/2006) Appeals shall be lodged by the interested parties care of the authority which has issued the act according to the procedure established by the Administrative Procedure Code. (4) An appeal or review filing against an act covered under Paragraph (1) shall stay the execution of any such act.(5) The Chief of the Regional Office of the National Construction Control Directorate shall rule by a reasoned order as to whether the appeal as lodged is well founded, after evaluation of the admissibility of the said appeal, within fifteen days after receipt of the said appeal. By the order thereof, the Chief of the Regional Office of the National Construction Control Directorate may revoke the act appealed in whole or in part or may reject the appeal, leaving the act appealed in effect.(6) The orders of the chief of the Regional Office of the National Construction Control Directorate shall be appealable according to the procedure established by Article 215 herein.Article 217. (1) Any appeal or review filing before a court of law shall not stay the execution of the following administrative acts:1. (repealed, SG No. 65/2003);2. (amended, SG No. 103/2005) any orders suspending and barring access to construction works referred to in Article 224 (1);3. any orders barring the access to, and banning the use of, construction works;4. (repealed, SG No. 65/2003);5. (repealed, SG No. 65/2003);6. (repealed, SG No. 65/2003);7. (new, SG No. 65/2003) on commissioning of construction works;8. (renumbered from Item 7, SG No. 65/2003) any orders referred to in Article 194 (1) herein to afford unimpeded access to construction works and refusals to issue such orders;9. (renumbered from Item 8 and amended, SG No. 65/2003, supplemented, SG No. 106/2006, amended, SG No. 61/2007) any orders referred to in Articles 195 and 196 herein;10. (renumbered from Item 9 and amended, SG No. 65/2003) any orders referred to in Article 209 (2) herein.11. (new, SG No. 103/2005) orders referred to in Article 57a (3).(2) (Amended and supplemented, SG No. 65/2003) The court may suspend the execution of any administrative act covered under Paragraph (1) with the exception of such referred to in Item 2.Article 218. An integrated development-initiative design shall be appealable before the court within fourteen days after communication of the issuance of a building permit.Article 219. (1) (Amended, SG No. 61/2007) The provisions of Title Three of the Administrative Procedure Code shall apply to any appeals lodged and judicial proceedings instituted under this Chapter.(2) (Repealed, SG No. 61/2007). (3) (New, SG No. 65/2003, amended, SG No. 30/2006) The Administrative Procedure Code shall apply accordingly to any matters unregulated in this Chapter.Chapter TwentyADMINISTRATIVE CONTROL OF SPATIAL DEVELOPMENT AND CONSTRUCTIONArticle 220. (1) (Amended, SG No. 65/2003) The Minister of Regional Development and Public Works shall exercise control over compliance with the provisions of this Act and of the statutory instruments on the application thereof in designing and construction, including the use of standard-quality construction materials and manufactures with a view to ensuring the security, safety, accessibility and other statutory requirements to construction works.(2) (Amended, SG No. 65/2003) The Minister of Regional Development and Public Works shall exercise control over the operation of the National Construction Control Directorate.(3) (Amended, SG No. 65/2003) The Minister of Regional Development and Public Works or officials authorized thereby shall exercise control as to compliance with fire safety requirements.(4) (Repealed, SG No. 65/2003).Article 221. (1) (Supplemented, SG No. 65/2003) The National Construction Control Directorate shall be a public-financed legal person with a headquarters in Sofia. The said Directorate shall consist of a head office and of regional offices in the centres of the administrative regions. Should a need arise, the National Construction Control Directorate may create provisional area offices by order of the Chief of the said Directorate, without an increase of the approved budget and payroll of the Directorate. The National Construction Control Directorate shall mandatorily contract accident insurance and life insurance for the officials thereof for the account of the budget of the said Directorate.(2) In the discharge of the official duties thereof, the officials of the National Construction Control Directorate shall be entitled to issue clothing and distinctive insignia, shall use special technical means and, on a licence granted by the Minister of Interior, may possess side arms for protection.(3) The authorities of the Ministry of Interior, as well as the other state and public bodies, shall be obligated to cooperate with the National Construction Control Directorate and with the officials thereof in the discharge of their functions.(4) Any orders, prescriptions and mandates of the authorities of the National Construction Control Directorate, issued acting within the competence vested therein, shall be mandatory in respect of the persons concerned thereby.(5) In connection with the performance of the functions thereof under this Act, the authorities of the National Construction Control Directorate shall be entitled to:1. (supplemented, SG No. 65/2003) gain free access to the construction works, as well as to the buildings and facilities for the duration of their use according to the procedure established by Article 194 (1) and (3) herein;2. (amended, SG No. 65/2003) require all documents, data, identification, written reference briefs and written statements as may be necessary for the inspections from the office holders at the state and municipal administrations, from the participants in construction, from the persons present in the construction work and on the construction site, from the central and local administrations concerned, from the specialized control authorities, and the utility companies;3. use data from the National System of Civil Registration and Administrative Services under terms and according to a procedure established by statute.(6) (New, SG No. 103/2005) The funds from allowances to the amount of 50 per cent of the revenue for the budget collected pursuant to this law by the National Construction Control Directorate, representing fees, fines and pecuniary penalties, shall be spent only for removal of illegal construction works, development of equipment, raising qualification and motivation of the Directorate staff under conditions and by a procedure determined by an ordinance of the Minister of Regional Development and Public Works.Article 222. (1) (Amended, SG No. 65/2003) The Chief of the National Construction Control Directorate or an official authorized thereby shall perform the following functions, acting within the competence vested therein:1. suspend illegal construction works;2. suspend construction works, parts thereof, or individual building and erection works performed in deviation from the construction file as approved, and permit resumption after rectification of violations and payment of the fines and pecuniary penalties due;3. bar access to construction works referred to in Items 1 and 2 and direct the placing of signs restricting the access of people and machinery and barring them from any such construction works;4. ban the supply of electricity and heat, running water and gas to construction works referred to in Items 1 and 2;5. (supplemented, SG No. 76/2006) ban the use of construction products which have not been assessed for conformity with the essential requirements to construction works, and perform inspections at the construction product manufacturing sites;6. ban the use of any construction works or of parts thereof which have not been commissioned according to the established procedure or which are used for a purpose other than intended according to the construction file as issued and the conditions for commissioning;7. bar the access to any construction works or parts thereof which have not been commissioned according to the established procedure or which are used for a purpose other than intended according to the construction file as issued and the conditions for commissioning, ban the supply of electricity and heat, running water and gas to any such construction works, and direct the placing of signs restricting the access of people and others and barring them from any such construction works;8. issue use permits for construction works or refuse to issue such permits;9. (amended, SG No. 61/2007) propose the withdrawal of licences of consultants for performance of conformity assessment of development-project designs and/or for exercise of construction supervision;10. issue orders on removal of illegal construction works;11. (amended, SG No.30/2006) issue orders reversing or revising the orders of the chiefs of the Regional Offices of the National Construction Control Directorate, in respect whereof no provisions are made for direct judicial review, under the terms and according to the procedures established by the Administrative Procedure Code; 12. prescribe execution of consolidation and recovery measures for the prevention of accidents, losses and others at construction works and parts thereof whereof the construction or the effect of the construction file has been suspended or the use has been banned;13. direct the evacuation of people, mechanical equipment, manufactures, products, materials, supplies endangering the general public and other such from the construction work and from the construction site;14. impose the penalties provided for in this Act.(2) (Amended, SG No. 65/2003) Acting within the competence vested therein, the authorities of the National Construction Control Directorate shall perform the following functions:1. ascertain illegal construction;2. ascertain violations in the use of construction works or of parts thereof;3. ascertain violations in the issuance of construction files;4. execute orders to suspend, to ban the use of, to bar the access to construction works and construction sites, and to remove illegal construction works;5. investigate accidents in construction;6. control the implementation of action for rehabilitation of special spatial-development protection areas;7. ascertain other violations of this Act and of the statutory instruments on the application thereof;8. establish and maintain a register of the penalty decrees as issued;9. certify order record books in the cases provided for by the law.(3) (Amended, SG No. 65/2003) Upon execution of orders to suspend, to ban the use, to bar the access, and to compel removal of illegal construction works, the authorities of the National Construction Control Directorate shall be entitled to use the following special technical means within the perimeter of the construction site:1. devices immobilizing automobiles and mechanical equipment for construction or removing such machinery from the construction site perimeter;2. devices to open partitions and premises;3. light and sound signalling devices;4. building machines and mechanical equipment for construction, technical means and methods.(4) The technical means covered under Paragraph (3) may be used solely by duly qualified officials.(5) Upon resistance or refusal to obey a direction to afford access or to vacate a construction site, or in other cases as specified by the law, compliance with the direction shall be compelled with the assistance of the authorities of the Ministry of Interior.Article 222a (New, SG No. 103/2005) The municipality mayor shall:1. suspend construction works, parts thereof, as well as individual building and erection works under the conditions and procedure provided by Article 224 herein, and shall give permission for their continuation upon removal of violations and payment of fines and pecuniary penalties due;2. bar access to the sites referred to in Item 1 and shall order the instalment of distinctive insignia for restriction and prevention of access of people and equipment to construction sites;3. forbid electricity, heating, water and gas supply to construction sites referred to in Item 1;4. order execution of consolidation, restoration and other works for prevention of accidents and damages of sites or parts thereof for which construction works have been suspended;5. impose the fines and pecuniary penalties provided by the law.Article 223. (1) The municipal administrations shall exercise control over the application of spatial-development plans, approved development- project designs, building permits, marked building lines and elevations, as well as over compliance with the effective statutory instruments on spatial development.(2) (Amended, SG No. 65/2003) One or several construction control officers shall be appointed in the administrations of each municipality and shall implement the control referred to in Paragraph (1), shall prevent, preclude and ascertain violations in construction.(3) (Amended, SG Nos. 65/2003, 103/2005) Within three days after ascertainment of a construction work referred to in Article 224 (1) or of legally non-conforming use of a construction work, the officers referred to in Paragraph (2) shall be obligated to draft a statement of ascertainment under Article 224 (2) or under Article 178 (5) herein and to serve the said statement on the offender. Within three days after expiration of the time limit for objections, any such statement of ascertainment referred to in Article 178 (5) shall be transmitted to the National Construction Control Directorate.(4) (New, SG No. 103/2005) Upon execution of their functions under this law the municipal administration officials shall enjoy the right to:1. free access to the construction sites, as well as to the buildings and facilities in the process of being used under the procedure provided by Article 194, Paragraphs (1) and (3) herein;2. require all documents, data, identification, written attestations and explanations necessary for the inspections from the participants in construction works, the persons on the building and construction site, the administrations involved, the specialized control authorities and operating companies;3. use data from the Standard Public Registry and Administrative Service System under conditions and by a procedure provided by a law.Chapter Twenty-OnePREVENTION AND REMOVAL OF ILLEGAL CONSTRUCTION(Heading amended, SG No. 65/2003)Article 224. (Amended, SG No. 65/2003) (1) (Amended, SG No. 103/2005) The mayor of the municipality shall suspend, by a reasoned order, the execution of and shall bar access to any construction work or part thereof which is performed:1. (amended, SG No. 103/2005) without approved development-project designs and/or without a building permit that has come into force;2. involving material deviations within the meaning given by Article 154 (2) herein;3. employing construction products which do not satisfy the essential requirements to construction works or in breach of the rules for execution of building and erection works;4. without construction supervision arranged by the contracting authority, in the cases where such supervision is mandatory;5. (amended, SG No. 103/2005) without a memorandum on a building line and elevation having been drafted, and/or without the order record book having been certified.6. (new, SG No. 61/2007) without clearance with the National Institute of Monuments of Culture under the terms and according to the procedure established by Article 125 (5) herein: applicable to immovable cultural property and to construction works within the boundaries and the protection zones thereof.(2) (Amended, SG No. 103/2005) Any circumstances referred to in Paragraph (1) shall be issued on the basis of a statement of ascertainment drafted by officials referred to in Article 223 (2). The statement of ascertainment shall be served on the interested parties who or which can lodge objections within seven days. The order referred in Paragraph (1) shall be issued within three days after the expiry of the deadline in sentence two. In case the perpetrator is knot known, copies of the statement of ascertainment and of the order referred to in Paragraph shall be placed on the site and the locations set aside therefore at the building of the municipality, region or mayoralty. Copies of the statement of ascertainment and the order referred to in Paragraph (1) shall be posted to the head of the National Construction Control Directorate and the head of the Regional Construction Control Directorate.(3) (Amended, SG No. 103/2005) Where the circumstances covered under Paragraph (1) have been ascertained by statement of ascertainment drawn up by the National Construction Control authorities, the order referred to in Paragraph 1 shall be issued by head of the National Construction Control Directorate or persons authorised thereby. Copies of the statement of ascertainment and the order shall be sent to the mayor of the relevant municipality.(4) Any order referred to in Paragraph (1) shall give mandatory directions for elimination of the reasons that have prompted suspension of construction and time limits for implementation. Where necessary, evacuation of people and mechanical equipment from the construction work and from the construction site shall be directed, as well as disconnection of the supply of electricity and heat, running water and gas. Any such order shall be mandatory for the service providers and shall be complied with forthwith.(5) (Supplemented, SG No. 103/2005) The construction suspended by the order referred to in Paragraph (1) may resume by permission of the suspending authority after elimination of the reasons which have promoted the said suspension. In the cases pursuant to Article 154, Items (5) through (8) of Paragraph (2) the permission for resumption of construction shall be permitted following presentation survey and other data, calculations and documents pursuant to the instructions referred to in Paragraph (4), which are attached as an integral part of the approved investment project and prove that the material deviations have been rectified and the completed part of construction is in abidance with the law.(6) (New, SG No. 103/2005) Within three days of ascertainment of illegal construction pursuant to Article 225 (2) by the officials referred to in Article 223 (2), the mayor of the municipality shall send the case file to the head of the National Construction Control Directorate for the initiation of a proceeding under Article 225 herein.(7) (Renumbered from Paragraph (6), SG No. 103/2005) Upon ascertainment of an illegal construction work within the meaning given by Article 225 (2) herein, the national construction control authorities shall suspend construction, shall bar access to the construction work, and shall transmit the case file to the Chief of the National Construction Control Directorate for initiation of a proceeding under Article 225 herein.Article 225. (Amended, SG No. 65/2003) (1) The Chief of the National Construction Control Directorate or an official authorized thereby shall issue an order on the removal of any illegal construction works or parts thereof.(2) A construction work or a part thereof shall be illegal where performed:1. (amended, SG Nos. 65/2004, 103/2005) in non-conformity with the projections of the effective detailed plan;2. (amended, SG No. 103/2005) without approved development-project designs and/or without a building permit;3. (amended, SG No. 103/2005) deviating materially from the approved development-project design under Items 1, 2, 3 and 4 of Article 154 (2) herein;4. employing construction products which do not satisfy the essential requirements to construction works, or in breach of the rules for execution of building and erection works, if this affects the structural security and the safety in use of the construction work, and it is impossible to bring the construction work into conformity with the requirements of this Act.5. (new, SG No. 61/2007) without clearance with the National Institute of Monuments of Culture under the terms and according to the procedure established by Article 125 (5) herein: applicable to immovable cultural property and to construction works within the boundaries and the protection zones thereof.(3) (Amended, SG No. 103/2005) Any order referred to in Paragraph (1) shall be issued on the basis of a statement of ascertainment drafted by officials of the National Construction Control Directorate. Any such statement shall be served on the interested parties who or which can lodge objections within seven days.(4) Should an order to remove a construction work be not executed voluntarily within the time limit set therein, execution shall be compelled by the authorities of the National Construction Control Directorate, either unaided or jointly with the persons entrusted to enforce such an order by the Chief of the Directorate or by an official authorized thereby, according to a procedure established by an ordinance of the Minister of Regional Development and Public Works.(5) (Amended, SG No. 61/2007) On the basis of an effective order for removal of the construction work and the memorandum on the expenditures incurred on the removal, a writ of execution shall be issued for recovery of the claim from the liable persons according to the procedure established by Littera (j) of Article 237 of the Code of Civil Procedure. (6) Coercive removal shall be for the account of the person performing the work and of:1. the person who has exercised construction supervision;2. the developer: in case construction has proceeded after the issuance of an order suspending the construction work by the National Construction Control Directorate or an order by the person exercising construction supervision, entered into the order record book of the construction work;3. the developer: in the cases referred to in Items 2, 3 and 4 of Paragraph (2);4. the designer and the person who has assessed the conformity of the development-project designs: in case of non-conformity of the approved development-project design according to which the construction work is executed with the safety requirements referred to in Items 1, 2, 3 and 4 of Article 169 (1) herein and/or with the intended purpose of the land.(7) The persons covered under Paragraph (6) shall incur solidary liability.Article 226. (Repealed, SG No. 65/2003).Article 227. (Repealed, SG No. 65/2003).Article 228. (Amended, SG No. 30/2006) The provisions of the Administrative Procedure Code shall apply to any matters which are not regulated in this Chapter and in Chapter Twenty herein.Chapter Twenty-TwoLICENSED TECHNICAL QUALIFICATIONSArticle 229. (1) Natural persons may perform investigation, design, control and supervision activities provided they possess licensed technical qualifications in conformity with the specialist qualifications as attained thereby and the educational qualification degree as conferred thereon.(2) Legal persons may perform any activities covered under Paragraph (1) should the members thereof include natural persons possessing the requisite licensed technical qualifications.Article 230. (1) (Amended, SG No. 20/2003, supplemented, SG No. 65/2003) Spatial-development schemes and plans and development project designs shall be prepared solely by natural-person designers who, in addition to the licensed technical qualifications referred to in Article 229 (1) herein, possess furthermore full licensed designer qualifications. The terms and procedure for recognition of full licensed designer qualifications shall be established by statute.(2) (Amended, SG No. 20/2003 and SG No. 65/2003) The statute referred to in Paragraph (1) shall regulate the permissible activities that may be performed by persons who possess limited licensed qualifications.(3) (Amended, SG No. 43/2002, SG No. 20/2003, SG No. 79/2006) Designers with full designer qualifications, who work as officials under labour or official employment at the administrations of territorial authorities of the executive. shall have the right to prepare draft spatial-development schemes and plans, as well as to exercise technical control, only for the territorial administrative units in which they are not authorities or where they do not participate in authorities vested with powers of expert opinion, clearance, approval, authorization, control or other powers according to the procedure established by this Act.(4) (New, SG No. 79/2006) Officials at municipal administrations with full or limited designer qualification shall have the right to prepare ex officio draft spatial development plans for state or municipal lots on the territory of the municipality, or development project designs for the construction of sites that are municipal property, in accordance with the designer qualification acquired.(5) (Amended, SG No. 37/2006, renumbered from Paragraph (4), SG No. 79/2006) Non-resident natural and legal persons, holding recognised licensed designer qualifications under their national law, may survey and design works in Bulgaria independently, only upon winning a competitive procedure and subsequently being named designated contractors under the terms and procedure of the Public Procurement Act. Article 231. (Amended, SG No. 108/2006) Requirements to natural and legal persons performing construction work shall be regulated by an act of law.Chapter Twenty-ThreeADMINISTRATIVE PENALTY LIABILITYArticle 232. (1) (Amended, SG No. 106/2006, SG No. 61/2007) A fine of BGN 1,000 or exceeding this amount but not exceeding BGN 5,000 shall be imposed, unless another statute provides for a severer sanction, on any official who:1. derelict, misperform or default on any duty enjoined thereon under this Act, the instruments on the application thereof and the other rules and standard specifications in designing and construction, as well as on any decisions and prescriptions proceeding therefrom;2. clear, approve or issue a construction file in violation of this Act, of the instruments on the application thereof and the other rules and standard specifications in designing and construction, as well as the effective spatial-development plans;3. fail to take prompt action for prevention of illegal construction, for suspension or removal of illegally performed building and erection works, or for elimination of other consequences of violations;4. require, as conditions for clearance and approval of a development-project design or authorization of a construction work, any documents which are not required by this Act or by another statutory instrument;5. (amended and supplemented, SG No. 65/2003) fail to rule, within a time limit as established by a statutory instrument, on a request for clearance, approval, compilation or issuance of construction files, plats, design permits and other such; fail to perform inspections or other technical services; do not respond to an appeal lodged; do not forward a request or an appeal, as the case may be, to the competent authority;6. permit, suffer the connection, or connect physical infrastructure off-site networks and facilities with an illegal construction work or with a construction work for which no use permit has been issued, save in the case where provisional connection is permitted by a statutory instrument.7. (new, SG No. 61/2007) has failed to fulfil the obligations thereof under Article 63 (1) herein.(2) (Amended, SG No. 65/2003, SG No. 61/2007) A fine of BGN 1,000 or exceeding this amount but not exceeding BGN 10,000 shall be imposed, unless another statute provides for a severer sanction, on any participant in construction who orders or suffers the performance of an illegal construction work.(3) (Amended, SG No. 61/2007) A fine of BGN 3,000 or exceeding this amount but not exceeding BGN 15,000 shall be imposed, unless another statute provides for a severer sanction, on any person who, while unqualified, engages in any practice comprehended within the competence vested in persons exercising construction supervision.(4) (Amended, SG No. 65/2003, SG No. 61/2007) A fine of BGN 3,000 or exceeding this amount but not exceeding BGN 15,000 shall be imposed, unless another statute provides for a severer sanction, on any person who:1. (amended, SG No. 65/2003) without possessing the relevant licensed qualifications, shall perform investigation and design works, shall participate in the performance of conformity assessment of development-project designs, in exercise of construction supervision, or shall direct building works;2. in a designer capacity, shall prepare designs non-conforming to this Act, the instruments on the application thereof and the other rules and standard specifications in designing and construction, or fail to exercise designer supervision in conformity with a contract as concluded;3. (repealed, SG No. 65/2003);4. (repealed, SG No. 65/2003).(5) (Amended, SG No. 61/2007) A fine of BGN 1,000 or exceeding this amount but not exceeding BGN 5,000 shall be imposed, unless another statute provides for a severer sanction, on any person who:1. (supplemented, SG No. 65/2003) fail to execute a written mandate from a control authority issued acting within the competence vested within the said authority or from the person exercising construction supervision, to suspend, to remove, to restore, or to repair any construction works or any parts of construction works;2. cut or uproot order or suffer the cutting or uprooting of a perennial ornamental tree or a tree of historic significance without prior written permission by the competent authorities;3. (new, SG No. 65/2003) fail to afford access, fail to provide the required documents, data, identification and written reference briefs to the control authorities;4. (renumbered from Item 3, SG No. 65/2003) work on a construction work and fail to vacate the said work after receiving a written warning from the control authorities that construction is performed illegally;5. (renumbered from Item 4, SG No. 65/2003) fail to execute directions of the competent control authorities issued in connection with action and work as shall be necessary to remove and eliminate geologic hazards;6. (renumbered from Item 5, SG No. 65/2003) fail to perform recovery works and to eliminate, for the own account thereof, any damage inflicted on another's corporeal immovable in connection with a construction work implemented therein within a time limit as established by the municipality or by the authorities of the National Construction Control Directorate.(6) (New, SG No. 61/2007) A fine of BGN 300 or exceeding this amount but not exceeding BGN 1,500 shall be imposed, unless another statute provides for a severer sanction, on any owner of a construction work or a lot who has failed to comply with an order under Article 195 (5) herein and has posed an immediate hazard to human health and life.Article 233. (Amended, SG No. 65/2003) Any other violations of this Act, of the instruments on the application thereof and of the other rules and standard specifications in designing and construction, as well as of the decisions and prescriptions proceeding therefrom, shall be punishable by a fine of BGN 100 or exceeding this amount but not exceeding BGN 500, unless another statute provides for a severer penalty.Article 234. (1) (Amended and supplemented, SG No. 103/2005) Should any violation covered under Article 232 and Article 233 herein be continued after being ascertained by a written statement, or should another violation be committed by the same person within the time limit for issuance of a penalty decree, the penalty shall be a fine of BGN 300 or exceeding this amount but not exceeding BGN 5,000 notwithstanding the penalty for the first violation.(2) (Amended, SG No. 65/2003) Should a new violation of the same provision be committed within three years after the effective date of the penalty decree, the penalty shall be a fine of BGN 2,000 or exceeding this amount but not exceeding BGN 30,000. In minor cases, the fine shall be BGN 100 or exceeding this amount but not exceeding BGN 500.Article 235. (1) In the cases under Article 232 (2) herein, the offenders may be removed from the construction work on the basis of a reasoned order of the Chief of the National Construction Control Directorate or an official authorized thereby.(2) Upon refusal to execute the order voluntarily, the offenders shall be compelled to leave the construction work, if necessary with the assistance of the authorities of the Ministry of Interior.(3) An appeal against any order referred to in Paragraph (1) shall not stay the execution thereof.Article 236. Upon systematic violations under Article 232 (1) herein, committed by a Chief Architect of a municipality (or ward), as ascertained by the National Construction Control Directorate, the Minister of Regional Development and Public Works may disqualify the offender from holding the position of Chief Architect of a municipality (or ward) for a period not exceeding two years.Article 237. (1) The Chief of the National Construction Control Directorate or an official authorized thereby shall impose the following pecuniary penalties on legal persons or sole traders:1. (amended, SG No. 65/2003, No. 103/2005) on any contractor, contracting authority or developer of a construction work which is illegal within the meaning given by Article 225 (2) herein: to the amount of BGN 5,000 or exceeding this amount but not exceeding BGN 50,000;2. (new, SG No. 103/2005) on any contractor, contracting authority or person exercising construction supervision of construction works referred to in Article 224 (1) herein: to the amount of BGN 1,000 or exceeding this amount but not exceeding BGN 10,000;3. (amended, SG No. 65/2003, renumbered from Item 2, SG No.103/2005) on any contracting authority or developer of a construction work which or who has proceeded with the execution of building and erection works at a construction work suspended by an order under Article 224 (1) or under Article 159 (4) herein, or at a construction work with a construction file whereof the effect has been suspended: to the amount of BGN 10,000 or exceeding this amount but not exceeding BGN 100,000;4. (new, SG No. 65/2003, renumbered from Item 3, SG No. 103/2005) on any person which or who uses a construction work without this being permitted according to the established legal procedure: to the amount of BGN 1,000 or exceeding this amount but not exceeding BGN 10,000;5. (renumbered from Item 3 and amended, SG No. 65/2003, renumbered from Item 4, SG No. 103/2005) on any person which or who, without being qualified, engages in any practice comprehended within the competence vested in the consultant and the technical control over the structural part: to the amount of BGN 3,000 or exceeding this amount but not exceeding BGN 30,000;6. (renumbered from Item 4 and amended, SG No. 65/2003, renumbered from Item 5, amended, SG No. 103/2005) on any person that has performed assessment as to conformity of development project design in violation of the requirements of Article 142 (5) and/or who, in exercising construction supervision, has suffered execution of an illegal construction work within the meaning given by Article 225 (2) herein: to the amount of BGN 30,000 or exceeding this amount but not exceeding BGN 150,000;7. (renumbered from Item 5 and amended, SG No. 65/2003, renumbered from Item 6, SG No. 103/2005) on any provider of electricity, heat, running water or gas, which has failed to fulfil a mandate under Article 224 (4) or under Article 178 (5) herein: to the amount of BGN 5,000 or exceeding this amount but not exceeding BGN 50,000.8. (new, SG No. 108/2006, effective 3.01.2008) on a builder for carrying out construction works on projects of Category 1 without being entered in the Central Register of Professional Builders and without possessing a certificate for such buildings: from BGN 50,000 to 100,000;9. (new, SG No. 108/2006, effective 3.01.2008) on a builder for carrying out construction works on projects of Category 2 without being entered in the Central Register of Professional Builders and without possessing a certificate for such buildings: from BGN 30,000 to 50,000;10. (new, SG No. 108/2006, effective 3.01.2008) on a builder for carrying out construction works on projects of Category 3, 411. (new, SG No. 108/2006, effective 3.01.2008) on a builder for carrying out construction and assembly works without being entered in the Central Register of Professional Builders and without possessing a certificate for such structures: from BGN 2,000 to 5,000;(2) (New, SG No. 103/2005) The mayor of the relevant municipality shall impose the following pecuniary penalties on legal persons or sole traders:1. on any contractor, contracting authority, developer of a construction work or person exercising construction supervision on construction suspended with his order pursuant to Article 224 (1) herein: to the amount of BGN 1,000 or exceeding this amount but not exceeding BGN 10,000;2. on any contractor, contracting authority or developer of a construction work which or who has proceeded with the execution of building and erection works at a construction work referred in Item 1: to the amount referred to in Paragraph 1 (3);3. on any provider of electricity, heat, running water or gas, which has failed to fulfil a mandate under Article 57a or under Item 3 of Article 222a herein: to the amount of BGN 50000 or exceeding this amount but not exceeding BGN 50,000.4. (new, SG No. 61/2007) on any owner of a construction work or a lot who has failed to comply with an order under Article 195 (5) herein and has posed an immediate hazard to human health and life: to the amount of BGN 1,000 or exceeding this amount but not exceeding BGN 10,000.(3) (Renumbered from Paragraph (2) and supplemented, SG No. 103/2005) The sanctions covered under Paragraphs (1) and (2) shall be imposed according to the procedure established by Articles 238 and 239 of this Act.Article 238. (1) The ascertainment of violations under this Act, the issuance, appeal against, and execution of penalty decrees shall follow the procedure established by the Administrative Infarctions and Penalties Act, safe in so far as otherwise provided by this Act.(2) (Amended, SG No. 65/2003) The written statements ascertaining violations under this Act shall be drafted by:1. officials of the municipal administrations (or ward administrations);2. officials of the National Construction Control Directorate;3. (amended, SG No. 82/2006) officials designated by the Minister of Interior: in respect of any violations of fire safety rules and standards;4. (amended, SG No. 95/2005) officials designated by the President of the State Agency for Metrological and Technical Surveillance: in respect of any violations of the safety standards for high-risk systems and equipment;5. officials designated by the Minister of Environment and Water: in respect of violations of environmental and water protection standards.Article 239. (1) The penalty decrees shall be issued:1. by the Minister of Regional Development and Public Works or officials authorized thereby: in respect of any violations of the provisions regarding spatial development;2. (supplemented, SG No. 103/2005) by the Chief of the National Construction Control Directorate or officials authorized thereby: in respect of any violations of the provisions regarding spatial development (designing, construction and quality of construction materials, and other such), prevention and removal of illegal construction;3. (new, SG No. 65/2003, amended, SG No. 82/2006) by the Minister of Interior or by officials designated thereby: in respect of any violations of the rules and standards regarding fire safety;4. (renumbered from Item 3, SG No. 65/2003) by the Minister of Environment and Water or officials authorized thereby: in respect of any violations of the provisions regarding environmental protection;5. (renumbered from Item 4, SG No. 65/2003, amended, SG No. 95/2005) by the President of the State Agency for Metrological and Technical Surveillance or by officials authorized thereby: in respect of any violations of the provisions regarding high-risk systems and equipment.6. (new, SG No. 103/2005, supplemented, SG No. 61/2007) by the municipality mayor: in the cases referred to in Items 1, 2, 3, 4 and 6 of Article 232 (5), Article 232 (6) and in Article 233 herein: where the instruments ascertaining violations have been drawn up by the officials referred to in Item 1 of Article 238 (2) herein, as well as in the cases referred to in Article 237 (2) herein.(2) The one-year time limit, established by the Administrative Violations and Sanctions Act for initiation of administrative liability proceedings for violations under this Act, the instruments on the application thereof and the other rules and standard specifications in designing and construction, shall begin to run as from the day of issuance of a use permit for the construction work or, where no use permit is required, as from the day of commission of the violation.(3) A penalty decree whereby a fine of BGN 100 or less has been imposed shall be unappealable.(4) A penalty decree whereby a pecuniary penalty of BGN 5,000 or less has been imposed on a legal person or a sole trader shall be unappealable.(5) (Repealed, SG No. 65/2003).(2) (Amended, SG No. 61/2007) The rules of sentence two of Paragraph (1) et seq. shall not apply in the cases where this Act and the instruments on the application thereof expressly provide for service of notice according to the procedure established by the Administrative Procedure Code. SUPPLEMENTARY PROVISIONS 1. (1) The Minister of Regional Development and Public Works may delegate functions thereof under this Act to the Deputy Ministers of Regional Development and Public Works or to other officials within the system of the Ministry of Regional Development and Public Works.(2) (New, SG No. 65/2003) The Regional Governor may delegate functions thereof under this Act to the Regional Vice Governors or to other persons of the regional administration.(3) (Renumbered from Paragraph (2), SG No. 65/2003, amended, SG No. 61/2007) The municipality mayor may delegate functions thereof under this Act to the deputy municipality mayors, to the Chief Architect of the municipality and to other officials of the municipal administration (or borough administration).(4) (Renumbered from Paragraph (3) and amended, SG No. 65/2003, amended, SG No. 61/2007) The Chief Architect of any municipality may delegate functions thereof under this Act to the Chief Architects of other officials of the municipal administration. 1a. (New, SG No. 65/2003) The Minister of Defence or the Minister of Interior, each acting within the competence vested therein, or officials authorized thereby, shall approve development-project designs, shall issue a building permit, shall commission and shall exercise control over construction works related to national defence and security. 2. (Repealed, SG No. 61/2007). 3. Fees shall be charged under the Local Taxes and Fees Act and the Stamp Duty Act for clearance and approval of a development project design, for issuance of a building permit, a memorandum on marking of a building line and elevation, a certificate of legalization, a use permit for a construction work and for other administrative and technical services under this Act. 4. (1) (Amended, SG No. 61/2007) Unless otherwise specified, the notices by the competent authorities to the interested parties under this Act and the instruments on the application thereof shall be served according to the procedure established by the Administrative Procedure Code. Absent persons shall be notified by means of posting of the notice on the dwelling unit thereof or on the corporeal immovable whereto the spatial-development plan, development-project design, appraisal, request, reply, objection, order of other documents apply. Any such notice shall be posted in a prominent place in the building of the municipality, borough or mayoralty The communication so effected shall be attested by a certificate bearing the signatures of two officials. The said certificate shall be attached to the relevant file.(2) (Amended, SG No. 61/2007) The rules of sentence two of Paragraph (1) et seq. shall not apply in the cases where this Act and the instruments on the application thereof expressly provide for service of notice according to the procedure established by the Administrative Procedure Code. (3) In the cases covered under Paragraph (1), notices regarding buildings having a condominium project status shall be served on the chairpersons of the managing boards (or the managers). 5. Within the meaning given by this Act:1. (Supplemented, SG No. 65/2003) The words "National Expert Board", "administrative-regional expert board" and "municipal (or ward) expert board" shall refer, respectively, to "National Expert Board on Spatial Development and Regional Policy, " "administrative regional expert board on spatial development" and "municipal (or ward) expert board on spatial development, " the word "Directorate" shall refer to "National Construction Control Directorate, " and the words "conformity assessment" and "conformity assessment of designs" shall refer to "assessment of the conformity of designs with the essential requirements to construction works."2. "Lot" shall be a part of the spatial-development area, including such as shall be durably submerged, within boundaries as established in conformity with the right of ownership.3. "Unregulated spatial-development area" shall be a spatial development area wherein the lots are not regulated by a detailed plan.4. "Special spatial-development protection areas" shall comprehend the protected nature-conservation areas under the Protected Areas Act, the protected areas for conservation of the cultural and historical heritage under the Monuments of Culture and Museums Act, other areas of distinctive character whereof the planning and control mode is regulated by separate statutes (the mountain and frontier areas, the coastal areas, the urban area of the capital city and other such), the areas susceptible to land sliding, the sanitary protected areas of water sources and the facilities for drinking and household water supply and around mineral water sources constituting public state property according to the Water Act. 5. "Preventive spatial-development protection areas" shall be spatial-development areas designated by spatial-development schemes and plans as possessing a high scenic, environmental and cultural value but not designated as protected by an express statute.6. "Nucleated-settlement area" shall be the spatial-development area of a nucleated settlement enclosed within the limits (development limits) thereof as defined by a spatial-development plan, excluding the land-use area.7. "Small nucleated settlements, " as referred to in Article 58 herein, shall be the villages, as well as the towns of a population not exceeding 30,000 residents.8. "Spatial-development area" or "planning zone, " as referred to in Article11 herein, shall constitute an assemblage of adjoining lots with similar characteristics and prevailing intended purpose.9. "Permissible pressure on areas intended for building development" shall be determined by the building-development intensity and the permissible purposes in conformity with the specific intended purposes of the lots.10. "Block" shall be a regulated spatial-development area bounded by streets or by streets and boundaries of an urbanized area, which consists of one or several lots.11. "Regulated lot" or "regulated property" shall be a lot in respect of which a detailed plan has established boundaries, access from a street, road or driveway, a specific intended purpose and planning mode.12. "Individualization of a newly created regulated lot, " as referred to in Article 16 (5) herein, shall be a recording of a description of the boundaries and designation of an identifier of the property.13. "Predominantly level ground, " as referred to in Item 4 of Article 19 (1) herein, shall be a ground not exceeding a slope of 10 per cent, and "predominantly steep ground, " as referred to in Item 5 of Article 19 (1) herein, shall be a ground exceeding a slope of 10 per cent.14. "Narrow regulated lot" shall be a property of a frontage of a size to which the allowance referred to in Article 19 (3) herein has been applied.15. (Amended, SG No. 41/2001) "Floor area" shall be the surface area delimited by the exterior contours of the surrounding walls of the first storey above ground level or of the semi-subterranean storey, including the surface area of the ventilation shafts and the passageways within the said contours. The floor area at ground level shall exclude any terraces, exterior stairways and stairway landings, loading platforms, parking garages and other elements of a height not exceeding 1. 2 metres from the average elevation of the adjoining ground.16. "Unoccupied yard space" shall be the difference between the surface area of the regulated lot and the floor area. The open usable terraces above the basement, as well as the greenspaces, shall likewise be treated as such a space.17. "Building-development density" shall be the ratio of the sum total of the floor areas of the principal and accessory development to the surface area of the regulated lot, expressed in percentage terms. Building-development density may furthermore be calculated for an entire block, spatial-development area or planning zone, as well as for any parts thereof.18. "Gross floor area" shall be the sum total of the floor areas of all stories of the principal and accessory development at and above ground level. The gross floor area shall furthermore incorporate the floor areas entirely within the roof space of buildings, where projected for dwelling units, studios and studies. The floor area of the stories above ground level shall incorporate the entire surface area of balconies, loggias and terraces.19. "Building-development intensity" of a regulated lot shall be the ratio of the gross floor area to the surface area of the regulated lot, expressed as an absolute number. Building development intensity may furthermore be calculated for an entire block, spatial-development area or planning zone, as well as for any parts thereof.20. "Building-development manner" shall be the siting of the principal- and accessory-development buildings and structures within the regulated lots.21. "Detached development" shall be a building development whereby the buildings in the regulated lots are arranged at a distance from the property lines (record lines) of the adjoining regulated lots, as well as along the northern side record line in the case of narrow regulated lots situated at the intersection of a north-south, northeast-southwest or northwest-southeast street with a street having an angle of intersection of not more than 45 degrees.22. "Attached development" shall be a building development whereby the buildings in two or more adjoining regulated lots are arranged touching one another along the property lines (record lines). Attached development in adjoining regulated lots shall constitute touching of the principal-development buildings or of the accessory-development structures.23. "Cluster development" shall be a building development on large regulated lots of clusters of buildings which are arranged free-standing or touching one another.24. "Restructuring of residential complexes, of industrial, resort, vacation and other dispersed settlements" shall constitute an alteration of the structure and building development of the said complexes or settlements, inter alia through formation of regulated lots for existing or for new buildings, for amenity planting of public spaces, as well as for another intended purpose, on the basis of a detailed plan.25. "Outer building-development line" shall be the building development line abutting on a street. The said line may be coincident with the street line or be set back therefrom on the regulated lot.26. "Inner building-development line" shall be the building development line abutting on adjoining regulated lots or on adjoining buildings. The inner building-development lines shall likewise be side lines in respect of the rear lot line.27. "Depth of the principal development of buildings" shall be the distance between the outer building-development line and the opposite inner building-development line.28. "Orientation of a residential building affording more beneficial solar access" shall be an orientation of a building in respect of the distances to adjoining buildings which corresponds to the following grading of compass points: south, southeast and southwest; east; west; northeast and northwest; north. Should the actual orientation be in departure or latitude from any such point of direction, the nearer point shall apply.29. "Residential building" shall be a building intended for permanent human occupancy and consisting of one or more dwelling units which occupy at least 60 per cent of the gross floor area of the said building.30. "Dwelling unit" shall be a set of premises, roofed and/or open spaces, constituting a single functional and spatial whole and designed for the satisfaction of housing needs.31. (Supplemented, SG No. 107/2003, amended, SG No. 41/2007) "Physical infrastructure" shall be a system of buildings, facilities and utility lines networks of transport, water supply and sewerage, electricity supply, heat supply, gas supply, electronic communications, irrigation and land-reclamation, waste treatment, and action to remove and eliminate geologic hazards.32. (Amended, SG No. 103/2005) "Physical-infrastructure public networks and facilities" shall be the networks and facilities up to the shared monitoring and metering devices in the corporeal immovables, including the distribution devices.33. "Servitude strip" shall be part of a lot around physical infrastructure networks and facilities in respect of which restrictions are introduced by a statutory instrument in the building-development and use mode of the lot.34. "Reserve strip" shall be a pavement reserved for passage of workers engaged in the maintenance and repair of streets, street facilities and the physical infrastructure.35. "Waste treatment" shall be the collection, storage and safe disposal of waste and all intermediate operations, as well as the reuse, recycling and reclamation of waste or production of energy or extraction of materials from waste in compliance with the Limitation of Harmful Impact of Waste on the Environment Act.36. "Construction file" shall be all approved development project designs required for performance or legalization of a construction work, the building permit or the certificate of legalization, as well as the memoranda on the marking of a building line and elevation.37. (Amended, SG No. 76/2005) "Construction site" shall be the ground required for performance of a construction work and determined by a development-project design or by the boundaries of the lot whereon the construction is performed.38. (Amended, SG No. 65/2003, supplemented, SG No. 61/2007) "Construction works" shall be any above-ground, semi-subterranean, subterranean and underwater buildings, structures, extending and heightening additions, consolidation, recovery, conservation and restoration works on immovable cultural property, fences, physical-infrastructure networks and facilities, spatial renewal and sports facilities, as well as the overhauls, redevelopments and remodellings thereof, with or without alteration of the assigned use.39. (Amended, SG No. 65/2003) "Project" shall be a self contained construction work or a divisible interest in a construction work of a designated name, location, independent functional intended purpose and identifier under the Cadastre and Property Register Act. 40. (Supplemented, SG No. 65/2003) "Building and erection works" shall be the works whereby construction works are constructed, repaired, redeveloped, remodelled, maintained or rehabilitated.41. (New, SG No. 65/2003, amended, SG No. 103/2005) "Alteration of the intended purpose" of a project or of part thereof shall constitute a change in the manner of use of any such work or part in conformity with corresponding codes, constituting fundamental cadastral data and determined pursuant to the Cadastre and Property Register Act and the statutory legislation on its application.42. (New, SG No. 65/2003) "Overhaul" of a construction work shall be partial restoration and/or partial replacement of structural elements, essential parts, facilities or utility service systems of a construction work, as well as building and erection works whereupon originally used by worn out materials, structures and structural elements are replaced by other types or new types of works are performed, whereby the serviceability thereof is restored, the operation thereof is enhanced, or the service life thereof is extended.43. (Repealed, new item New, SG No. 65/2003) "Routine repair" of a construction work shall be the improvement and maintenance of buildings, structures, facilities and utility-service systems in serviceable condition, as well as interior remodellings whereupon:(a) the structure of the building is not affected;(b) existing walls are not removed, relocated or breached, where any such or other action shall affect the structure of the building;(c) the intended purpose of the premises and the loads therein are not altered.44. (New, SG No. 65/2003) "Redevelopment" of a construction work shall be restoration, replacement of structural elements, essential parts, facilities or utility-service systems and execution of new such elements, parts, facilities or systems, whereby the bearing capacity, the stability and the durability of the construction works are enhanced.45. (Renumbered from Item 41, SG No. 65/2003) "Stage" shall be part of a construction work having an independent functional intended purpose, in respect of which a separate building permit and a use permit may be issued.46. (Renumbered from Item 42, SG No. 65/2003) "Rough construction work" shall be a building or a structure whereof the surrounding walls and the roof have been executed, and the finishing works have not been executed at all or have been partly executed.47. (Renumbered from Item 44, SG No. 65/2003) "Storey" shall be a part of a building or structure included between two successive floor structures.48. (Renumbered from Item 45, SG No. 65/2003) "Subterranean storey" shall be a storey whereof the ceiling is situated below the level mark of the average elevation of the adjoining pavement (of the adjoining ground fronting on the street) or within 0.3 metres above the said level mark.49. (Renumbered from Item 46, SG No. 65/2003) "Semi subterranean storey" shall be a storey whereof the floor is situated below the level mark of the average elevation of the adjoining pavement (of the adjoining ground fronting on the street) and whereof the ceiling is situated at more than 0.3 metres above the said level mark and within 1.5 metres above the said mark.50. (Renumbered from Item 47, SG No. 65/2003) "Storey above ground level" shall be a storey whereof the floor is situated at or above the level mark of the average elevation of the adjoining pavement (of the adjoining ground fronting on the street).51. (Renumbered from Item 48, SG No. 65/2003) "Attic" shall be a storey situated within the roof space and enclosed, in part or in whole, by the roof planes.52. (Renumbered from Item 49, SG No. 65/2003) "Average elevation of the adjoining ground" shall be the elevation of the ground measured in the middle of the relevant surrounding wall of the building.53. (Renumbered from Item 50, SG No. 65/2003) "Base course elevation" shall be the elevation of the floor of the first storey above ground level.54. (Renumbered from Item 51, SG No. 65/2003) "Ridge course elevation" shall be the highest horizontal part of the roof of a building.55. (Renumbered from Item 52, SG No. 65/2003) "Facade" shall be the outer surrounding wall of a building or structure which rests on the ground.56. (Renumbered from Item 53, SG No. 65/2003) "Blank wall" shall be the outer wall of a building or structure without a coping or eaves and unbreached by door and window openings, arranged along the inner lot line.57. (Renumbered from Item 54, SG No. 65/2003) "Balcony" shall be an open usable space upon a bracket-type structure, projecting from the facade of a building.58. (Renumbered from Item 55, SG No. 65/2003) "Loggia" shall be a usable space, open on the external side and incorporated into the total bulk of the building.59. (Renumbered from Item 56, SG No. 65/2003) "Terrace" shall be an open usable space situated above premises, supported by columns or resting on the ground.60. (Renumbered from Item 57, SG No. 65/2003) "Benchmark" within the meaning given by Article 157 (4) herein shall be a survey monument used as a reference point in measurements, levelling and in plotting points and lines from a site map.61. (Renumbered from Item 58, SG No. 65/2003) "Abrasion" shall be the water erosion of the margins of aquatic surfaces and rivers.62. (New, SG No. 65/2003) "Project of national importance" shall be a project designated as such by an act of the Council of Ministers.63. (New, SG No. 65/2003) "Special-purpose installations related to national defence and security" shall be lots and the construction works therein constituting state property, whereon the information constitutes a state secret within the meaning given by Article 25 of the Classified information Protection Act. 64. (New, SG No. 76/2006) "Technical Passport of Construction Works" shall be a document, containing all technical features of the construction works components, related to the conformity with the material requirements under Article 169, Paragraph 1 - 3, operation, service, inspection, maintenance, and repair instructions, and shall reflect all construction and assembly works performed after the construction works are commissioned.65. (New, SG No. 76/2006) "Economically Feasible Term of Operation" shall be the term, during which the construction works shall be maintained at the level required to meet all material requirements under Article 169, Paragraph 1, taking into account all design, construction, and operation costs, all emergency risks and consequences during operation, and all insurance coverage thereof, all inspection, ongoing maintenance, service, and repair costs, as well as taking into account the location and the environmental impact on the construction works.66. (New, SG No. 76/2006) "General Renovation" of construction works shall be a complex of construction and assembly operations, related to the conformity with the material requirements under Article 169, Paragraph 1 - 3, performed during operation and affecting the structural components of the construction works, including all surrounding structures and building components, technical infrastructure facilities and components - heating, ventilation, air-conditioning, electric, water, sewage, and other installations.67. (New, SG No. 61/2007) "Social housing" shall be housing assigned for persons of ascertained housing needs, whereof the construction is financed or is implemented with the help of the State or the municipality.68. (New, SG No. 61/2007) "Outdoor facilities" shall be:(a) for sporting activities: fields (grounds) and equipment used for mass physical exercises and sport in the open air: association football grounds, volleyball courts, basketball courts, handball courts, baseball parks, rugby grounds, mini golf courses and other team sports grounds, athletic tracks, tennis and badminton courts, velodromes, cycleways, horseback-riding areas, horseback-riding paths, tennis and badminton courts, kart circuits, gymnastics grounds, outdoor swimming pools, outdoor ice skating rinks, skateboard and roller-skating rinks and other such, also including the requisite auxiliary structures and facilities associated with the functioning thereof: sanitary units, spectator stands, movable seasonal covers etc.;(b) for cultural activities: fields (grounds) and equipment for concert stages, outdoor amphitheatres, exhibition space, circus performances and other such, also including the requisite auxiliary structures and facilities associated with the functioning thereof: sanitary units, changing rooms, spectator stands, movable seasonal covers etc.69. (New, SG No. 61/2007) "Memorial places and sites" shall be the places and sites associated with historic events and/or personalities, works of monumental art and/or landscape monuments.70. (New, SG No. 61/2007) "Playground" shall be a publicly accessible outdoor or indoor area assigned for individual or team games, appropriately planned, floored and equipped for play depending on the designated age group of the users.71. (New, SG No. 61/2007) "Amusement facilities" shall be publicly accessible outdoor or indoor areas for amusement facilities with appropriately planned and sited amusement equipment, the predominant part whereof are powered by an external energy source: electricity, fuels, photovoltaic cells etc.TRANSITIONAL PROVISIONS 6. (1) Any regional-development plan, master and detailedurban-development plan effective at the date of entry of this Act into force shall continue in effect. Any such plan shall be amended under the terms and according to the procedure established by this Act.(2) Any yard regulation plan effective at the date of entry of this Act into force may be applied according to the previously effective procedure within six months after the date of entry of this Act into force. The municipal administration shall arrange the conduct of the requisite appraisals within one month after submission of a request.(3) (Amended, SG No. 41/2001) Any drafts of regional development plans, master and detailed urban-development plans and the cadastral plans thereto, which have been submitted for approval on or before the 31st day of May 2001, shall be communicated, cleared, approved, appealed against and enter into effect according to the previously effective procedure. In such cases, the certificates of approval shall be issued on or before the 31st day of December 2001.(4) As from the effective date of any yard regulation plans referred to in Paragraph (3), the said plans may be applied according to the previously effective procedure within six months after the effective date thereof. The municipal administration shall arrange the conduct of the requisite appraisals within one month after submission of a request.(5) After expiration of the time limits established by Paragraphs (2) and (4), it shall no longer be possible to effect transactions for disposition of a regulated yard parcel in respect of which the compensations due for settlement of accounts on regulation have not been paid, where such compensations are provided for.(6) (Repealed, SG No. 36/2004).(7) (Amended, SG No. 65/2003) The existing cadastral maps, land distribution plans and other plans related to restitution of the right of ownership of agricultural land and forests and forest stock land tracts shall be used for preparation of spatial development schemes until the preparation and entry into effect of a cadastral map for the relevant territory. 7. (Repealed, SG No. 61/2007). 8. (Amended, SG No. 61/2007) (1) Upon expiry of the time limits established under 6 (2) and (4) herein, the condemnation effect of any effective but unapplied yard regulation plans for equalization of parts in formed co-owned regulated yard parcels and for taking of adjoining lots or parts of lots shall be terminated.(2) The owners of any lots referred to in Paragraph (1) may:1. apply the effective unapplied yard regulation plans by a notarized contract for transfer of ownership;2. request modification of the yard regulation plans under the terms and according to the procedure established by this Act;3. request that the inner record lines of the properties thereof be brought into conformity with the existing lot boundaries.(3) The contracts with the State or with the municipality under Item 1 of Paragraph (2) shall be concluded in the form, under the terms and according to the procedure established by Article 15 (4) and (5) and Article 17 (4) and (5) herein.(4) The modification of the yard regulation plans under Item 3 of Paragraph (2) shall be approved by an order of the [competent] municipality mayor. The municipality mayor shall issue an order refusing the requested modification of the plan where the time limits referred to in 6 (2) or (4) herein have not expired, the hypotheticals of Paragraph (6) or (7) exist or if the modification envisages formation of regulated lots without a frontage under Article 14 (4) herein. The orders referred to in sentence one and two shall be announced solely to the owners of the immediately affected properties, and any appeals against the said orders shall not stay the execution thereof.(5) Construction in any regulated lots referred to in Paragraph (1) shall not be permitted until implementation of one of the possibilities covered under Paragraph (2). Construction in any regulated lots referred to in Paragraph (1) shall not be permitted, either, where, as a result of a modification of the yard regulation plan under Item 3 of Paragraph (2), the building-development plan for the relevant regulated lots has conflicted with the effective spatial-development rules and standard specifications.(6) Any instituted proceedings for application of yard regulation plans shall be concluded according to the hitherto effective procedure. The proceeding shall be deemed to have been instituted as from the date of submission of a request for appraisal to the municipal administration within the time limit established by 6 (2) and (4) herein.(7) Paragraphs (1) and (2) shall not apply in respect of any effective regulation plans for works constituting public property. 9. (1) The repealed provisions of the Regional and Urban Planning Act and the repealed Article 102 of the Ownership Act shall apply to any condemnation proceedings instituted under the effect of the repealed (in the State Gazette No. 124 of 1998) provisions of Section I of Chapter Five of the Regional and Urban Planning Act, in respect of which a condemnation order has been issued and the corporeal immovable was taken on or before the 30th day of October 1998.(2) In the cases where the corporeal immovable was not taken on or before the 30th day of October 1998, the condemnation order and the compensation order shall be revoked and the proceeding shall be terminated by an order of the municipality mayor.(3) Annually, funds shall be allocated in the national budget and the municipal budgets to ensure indemnification of any owners referred to in Paragraph (1). 10. The right to indemnification with a corporeal immovable or with another real right for a condemned and taken corporeal immovable shall be inextinguishable through limitation. 11. The five-year period of limitation established by Article 67 of the Ownership Act shall not run and shall not be applied in the cases where the building right has accrued in compensation for a condemned corporeal immovable. 12. (1) Any proceedings for approval of development-project designs and issuance of building permits instituted prior to the entry of this Act into force shall be concluded according to the previously effective procedure.(2) A proceeding for approval of a development-project design shall be deemed to have been instituted as from the day of submission of a development-project design for approval by the competent authority. Any such proceeding shall furthermore be deemed to have been instituted if a conceptual development-project design, cleared with the competent authority, is available. 13. (1) (Amended, SG No. 20/2003) The natural persons, who prior to the entry of this Act into force possessed licensed technical qualifications inconformity with the specialist qualifications as attained thereby and the educational qualification degree as conferred thereon, documented by a certificate of educational attainment, shall likewise possess full licensed designer qualifications within the meaning given by Article 230 (1) herein.(2) Any contracts for construction supervision in designing and construction, as well as for technical control in designing and construction, which have been concluded prior to the entry of this Act into force, shall continue in effect unless the parties thereto alter the said contracts or terminate them by mutual consent.(3) (Repealed, SG No. 20/2003).(4) Until the entry into force of the statute referred to in Article 230 (1) herein, the natural persons exercising technical control over the structural part of development-project designs shall be entered into a register with the National Construction Control Directorate under terms and according to a procedure established by the Minister of Regional Development and Public Works. 14. (Repealed, SG No. 65/2003). 15. The time limits for all proceedings, which have begun to run prior to the entry of this Act into force, shall expire according to the previously effective provisions. 16. (1) (Supplemented, SG No. 65/2003) Any construction works constructed prior to the 7th day of April 1987, in respect of which a construction file is lacking but which were permissible under the effective detailed urban-development plans and under the rules and standard specifications effective during the time of performance thereof or according to this Act, shall be tolerable construction works and shall not be subject to removal and to ban on use. Any such work may be subject to a transfer transaction upon presentation of a certificate issued by the authorities which are empowered to approve the relevant development-project designs, to the effect that the said construction work is tolerable.(2) Any illegal construction works, commenced during the period from the 8th day of April 1987 until the 30th day of June 1998 but not legalized prior to the entry of this Act into force, shall not be removed if the said works were tolerable under the effective detailed urban-development plans and under the rules and standard specifications effective during the time of performance thereof or according to this Act, and if declared by the owners thereof to the approving authorities on or before the 31st day of December 1998.(3) (Effective January 2, 2001) Any illegal construction works, commenced after the 30th day of June 1998 but not legalized prior to the promulgation of this Act, shall not be removed if the said works were tolerable under the effective detailed urban development plans and under the rules and standard specifications effective during the said period and according to this Act, and if declared by the owners thereof to the approving authorities within six months after the promulgation of this Act.(4) Upon condemnation of any construction works referred to in Paragraph (1) and of any legalized construction works referred to in Paragraphs (2) and (3), the said works shall be appraised and a compensation shall be due therefor to the owners according to the standard procedure. 17. (Effective 2.01.2001) (1) (Supplemented, SG No. 65/2003, amended and supplemented, SG No. 61/2007) By decision of the Regional Governor or by resolution of the Municipal Council, any construction works enjoying a provisional planning status, constructed according to the procedure established by Paragraph (4) of Article 120 of the Regulations for Application of the Regional and Urban Planning Act as repealed (in the State Gazette No. 6 of 1998) on land constituting state or municipal property in cases other than such referred to in Articles 195 and 196 herein, may be preserved until implementation of the construction works projected by an effective detailed plan. Upon emergence of a development-project initiative for implementation of the projections of the detailed plan, the provisional construction works shall be removed without payment thereof on the basis of an order of the municipality mayor issued according to the procedure established by Articles 195 and 196 herein.(2) (Amended, SG No. 41/2001) By decision of the Regional Governor or by resolution of the Municipal Council, made or passed within six months after the entry of this Act into force, it shall be permissible to institute a procedure for modification of an effective detailed plan for the purpose of conferring a durable planning status on any provisional construction works referred to in Paragraph (1) within the existing size and type. Upon establishment of a durable planning status, a building right shall be created in favour of the owners of the existing construction works under the terms and according to the procedure established by the State Property Act and the Municipal Property Act. (3) (Amended, SG No. 65/2003) In the cases under Paragraph (2), where a durable building-development status is established with planning parameters, dimensions and functions which differ materially from the existing provisional construction work, the work affected shall be removed according to the procedure established by Paragraph (1), and the contracting authority of the new construction work shall be designated according to the standard procedure.FINAL PROVISIONS 18. (1) The Minister of Regional Development and Public Works shall approve building and technical rules and standard specifications, shall issue ordinances and instructions, and shall approve standard forms of documents on the application of this Act.(2) (Repealed, SG No. 65/2003).(3) (Repealed, SG No. 65/2003).(4) The Minister of Regional Development and Public Works and the Minister of Interior shall approve building and technical rules and standard specifications for traffic safety.(5) (Repealed, SG No. 65/2003).(6) The Minister of Regional Development and Public Works, the Minister of Health, the Minister of Environment and Water, and the Minister of Interior shall approve the construction and technical rules and minimum standards concerning obtrusive noise attenuation and elimination in nucleated settlements, in buildings, in individual dwelling units, works and on premises, and in the places for recreation, tourism, and senatorial and resort treatment.(7) The Minister of Regional Development and Public Works, jointly with the heads of the central and local administrations concerned, shall approve the technical rules and standard specifications for the designing, construction and use of physical infrastructure facilities and networks. 19. The tasks and functions of the National Construction Control Directorate shall be regulated by regulations adopted by the Council of Ministers on motion by the Minister of Regional Development and Public Works. 20 (1) This Act shall supersede the Regional and Urban Planning Act (promulgated in the State Gazette No. 29 of 1973; corrected in No. 32 of 1973; amended and supplemented in No. 87 of 1974, Nos. 3 and 102 of 1977, No. 36 of 1979, No. 3 of 1980, No. 45 of 1984, No. 19 of 1985, No. 36 of 1986, No. 14 of 1988, No. 31 of 1990; corrected in No. 32 of 1990; amended in No. 15 of 1991; amended and supplemented in No. 63 of 1995, No. 104 of 1996, Nos. 41 and 79 of 1998; corrected in No. 89 of 1998; amended in Nos. 124 and 133 of 1998, Nos. 26 and 86 of 1999, Nos. 14 and 34 of 2000).(2) The statutory instruments of secondary legislation, issued in pursuance of the Regional and Urban Planning Act, shall be applied until the issuance of the respective new statutory instruments of secondary legislation, save in so far as conflicting with this Act. 20a. (New, SG No. 65/2003) The terms and procedure for designing, execution and completion of any construction works related to national defence and security shall be established by an ordinance of the Minister of Regional Development and Public Works, the Minister of Defence and the Minister of Interior. 21. Where, in connection with spatial development, account is taken of pre-existing construction works, the reference shall be to legal construction works. 22. The detailed plan shall be deemed to be applied:1. in respect of regulation: upon payment of the amounts due on contracts referred to in Article 17 (3) herein, where such amounts are provided for, plotting of the property in the cadastre, and entry in the property register;2. in respect of building development: upon the laying of the foundations of construction works in conformity with a construction file as issued. 23. (1) In the case of conflict of provisions of other laws with the provisions of this Act on matters concerning spatial development, as regulated therein, the provisions of the Spatial Development Act shall prevail.(2) The provisions of other laws, which refer to the Regional and Urban Planning Act as superseded and to the Regulations for the Application thereof, shall refer to the relevant provisions of this Act.(3) The provisions of other laws, related to the designations of the regional-development plans, master and detailed urban development plans, shall apply accordingly to the relevant spatial development schemes and plans under this Act. 24. (Amended and supplemented, SG No. 65/2004, amended, SG No. 61/2007) (1) Upon conclusion of the contracts between the participants in the investment process, the conditions of contract of the International Federation of Consulting Engineers (FIDIC) may be applied in respect of any projects financed in full or in part by international financial institutions and by funds of the European Union.(2) In the cases referred to in Paragraph (1), the functions, rights, obligations and responsibilities of the consultant under this Act shall be implemented by the engineer designated under the conditions of the financing institution and shall be regulated in detail in the special conditions of the contract concluded between the said engineer and the contracting authority.(3) To perform the activity comprehended in conformity assessment of development-project designs and to exercise construction supervision, the engineer under the contract must be licensed under the terms and according to the procedure established by Article 167 or must assign the performance of these activities to a sub-contractor licensed under this Act.(4) Construction works under Paragraph (1) shall be commissioned under the terms and according to the procedure established by this Act. 25. The Environmental Protection Act (promulgated in the State Gazette No. 86 of 1991; corrected in No. 90 of 1991; amended in No. 100 of 1992, Nos. 31 and 63 of 1995, Nos. 13, 85 and 86 of 1997, No. 62 of 1998, Nos. 12 and 67 of 1999, Nos. 26, 27 and 28 of 2000) shall be amended and supplemented as follows:1. In Article 20 (1), Item 2 shall be amended to read as follows:"2. the plans and programmes for national, local and regional development; ".2. There shall be inserted the following new item:"3. the spatial-development plans and the modifications thereof, providing for activities listed in the annex referred to in Item 1; ".3. Item 3 shall be renumbered to become Item 4. 26. The Local Self-Government and Local Administration Act (promulgated in the State Gazette No. 77 of 1991; amended in Nos. 24, 49 and 65 of 1995,No. 90 of 1996, No. 122 of 1997, Nos. 33, 130 and 154 of 1998, Nos. 67 and 69 of 1999, Nos. 26 and 85 of 2000) shall be amended as follows:1. In Article 21 (1), Item 11 shall be amended to read as follows:"11. pass resolutions on the creation and approval of spatial development plans and modifications thereof for the entire territory of the municipality or for any portion thereof under the terms and according to the procedure established by the Spatial Development Act"2. In Article 44 (1), Item 12 shall be amended to read as follows:"12. commission or authorize the elaboration of spatial development plans and modifications thereof for the entire territory of the municipality or for any portion thereof, and approve specified spatial-development plans under terms and according to the procedure established by the Spatial Development Act, as well as organize the realization of the said plans." 27. In the State Property Act (promulgated in the State Gazette No. 44 of 1996; amended in No. 104 of 1996, Nos. 55, 61 and 117 of 1997, Nos. 93 and 124 of 1998, No. 67 of 1999, Nos. 9, 12, 26 and 57 of 2000), in Article 33 (2) the words "within nucleated settlement limits" shall be deleted. 28. In the Sofia Urban Development Master Plan Approval and Application Act (promulgated in Transactions of the Presidium of the National Assembly No. 89 of 1961; amended in the State Gazette No. 29 of 1973, No. 41 of 1998), Section II "Application of the Urban Development Master Plan and Regulations for Ownership of Corporeal Immovables", Articles 8, 9 and 10 are hereby repealed. 29. The Transitional and Final Provisions of the Act to Amend and Supplement the Sofia Urban Development Master Plan Approval and Application Act (promulgated in the State Gazette No. 41 of 1998) shall be amended as follows:1. In 10, 12 (1) and (4) and 13, the words "urban development master plan" shall be replaced by "master plan."2. 17 shall be amended to read as follows:" 17. The Urban Development Fund with Sofia Municipality is hereby transformed into a Public Facilities Fund." 30. The implementation of this Act shall be entrusted to the Minister of Regional Development and Public Works. 31. This Act shall enter into force on the 31st day of March 2001, with the exception of 16 (3) and 17, which shall enter into force on the date of promulgation of the said Act in the State Gazette.Act to Amend and Supplement the Spatial Development ActPromulgated, State Gazette No. 65/22.07.2003TRANSITIONAL AND FINAL PROVISIONS 182. Any construction works, projects and facilities referred to inArticles 54, 55, Article 56 (1) and Article 57 (1) (of the Spatial Development Act) shall not constitute corporeal immovables under Article 110 of the Ownership Act, shall not be plotted on the cadastral map, shall not be entered into the cadastral registers, and no acts recordable in the property register shall be issued to certify the right or ownership or other rights to any such works, projects or facilities. 183. (1) Any proceedings for approval of development-project designs and for issuance of building permits, which have been initiated prior to the entry of this Act into force, shall be concluded according to the previously effective procedure or, if the contracting authority so wishes, according to the procedure established by this Act.(2) A proceeding shall be deemed to have been instituted as from the day of submission of a development-project design for approval by the competent authority. Any such proceeding shall furthermore be deemed to have been instituted if a conceptual development-project design, cleared with the competent authority, is available.(3) Any proceedings exploring the possibility of legalization, which have been initiated prior to the entry of this Act into force, shall be concluded according to the previously effective procedure. Any such proceeding shall be deemed to have been instituted as from the day of submission of a written request for legalization to the competent authority. 184. (1) Any construction works, which have been performed illegally prior to the entry of this Act into force, may be legalized at the request of the owner if permissible under the provisions which were effective at the time the said works were performed or under the currently effective provisions.(2) A proceeding for legalization of any construction works referred to in Paragraph (1) shall be initiated acting on an application by the owner to the authority which has issued or should have issued the building permit, submitted within six months after the entry of this Act into force.(3) Within one month after receipt of any such application, the officials of the municipal administration shall draft a statement of ascertainment of the illegal construction, on the basis of which the authority referred to in Paragraph (2) shall require the requisite documents covered under Article 144 (of the Spatial Development Act) and shall establish a time limit for submission of the said documents.(4) Upon failure to submit the requisite documents, or should the authority referred to in Paragraph (2) determine that the conditions for legalization are not fulfilled, the said authority shall issue a reasoned refusal, shall communicate the said refusal to the interested parties, and shall notify the National Construction Control Directorate for application of the measures under Article 225 (of the Spatial Development Act).(5) Construction works shall be legalized to the name of the owner of the land, to the name of the person in favour of whom a building right has been created, or to the name of the person enjoying a right to build in another's property by virtue of a special statute. If the construction work has been constructed by a non-owner, the relations between the developer and the owner shall be settled according to the requirements of Articles 72 to 74 of the Ownership Act. (6) In respect of any illegally performed construction works in co-owned corporeal immovables and in a condominium project, where permissible for legalization and where fit for self-contained use, the certificate of legalization may be issued to the name of all co-owners or condominium owners, as the case may be, provided the said co-owners or condominium owners have not objected to the illegal construction work while performance of the said work was in progress. In such case, disputes regarding the rights to the legalized construction work shall be actionable according to the standard procedure.(7) Legalization shall consist in clearance of a survey development- project design for legalization, bringing the construction work into conformity with the design as cleared, payment of the fines and fees due, and issuance of a certificate of legalization. The survey design for legalization shall be executed within a scope determined by the ordinance referred to in Article 139 (5) (of the Spatial Development Act).(8) The time of performance of the illegal construction work shall be established by all instruments of proof admissible under the Code of Civil Procedure, including declarations. The declarants shall incur criminal liability for making false statements in any such declarations.(9) The requirements of Chapter Eight (of the Spatial Development Act) shall apply to the time limits for clearance of survey development-project designs for legalization and for issuance of certificates of legalization, for communication of certificates of legalization as issued or of refusals to issue any such certificates, for appeal of any such certificates as to legal conformity, and for notification of the competent Regional Offices.(10) Any certificates of legalization together with the survey development-project designs for legalization, as well as any refusals referred to in Paragraph (4), shall be appealable according to the procedure established by Article 216 (of the Spatial Development Act).(11) In respect of any parts of the construction work in progress, a development-project design shall be cleared and a certificate of legalization shall be issued according to the standard procedure.(12) Any construction works referred to in Paragraph (1), which have not been declared for legalization within the time limit established by Paragraph (2) or in respect of which the legalization proceeding has been concluded by an effective refusal to issue a certificate of legalization, shall be removed according to the procedure established by Article 225 (of the Spatial Development Act). 185. Any persons empowered by the Minister of Regional Development and Public Works to exercise independent construction supervision in designing, independent construction supervision in designing and construction, and independent construction supervision in construction, whereof the period of empowerment has not expired, may exercise construction supervision over Category One, Two, Three and Four construction works, as well as perform conformity assessment of development-project designs for Category One, Two and Three Category construction works. After expiration of the said period, to be qualified to perform the activities referred to in Item 1 of Article 166 (1) (of the Spatial Development Act), any such persons must hold a licence issued by the Minister of Regional Development and Public Works under terms and according to a procedure established in Article 167 (1) and (2) (of the Spatial Development Act). 186. Any persons exercising construction supervision and licensed to do so by the Chief of the National Construction Control Directorate may continue to exercise construction supervision over Category One, Two, Three and Four construction works until expiration of the term of validity of the licence. Upon expiration of the said term, to be qualified to perform the activities referred to in Item 1 of Article 166 (1) (of the Spatial Development Act), any such persons must hold a licence issued by the Minister of Regional Development and Public Works under terms and according to a procedure established in Article 167 (1) and (2) (of the Spatial Development Act). 187. (1) Within six months after the entry of this Act into force, the Municipal Councils can confirm the orders of the Chief Architect of the municipality (or ward) issued in pursuance of Item 6 of Article 6 of the Regional and Urban Planning Act (promulgated in the State Gazette No. 29 of 1973; corrected in No. 32 of 1973; amended and supplemented in No. 87 of 1974, Nos. 3 and 102 of 1977, No. 36 of 1979, No. 3 of 1980, No. 45 of 1984, No. 19 of 1985, No. 36 of 1986, No. 14 of 1988, No. 31 of 1990; corrected in No. 32 of 1990; amended in No. 15 of 1991; amended and supplemented in No. 63 of 1995, No. 104 of 1996, Nos. 41 and 79 of 1998; corrected in No. 89 of 1998; amended in Nos. 124 and 133 of 1998, Nos. 26 and 86 of 1999, Nos. 14 and 34 of 2000; superseded in No. 1 of 2001) as superseded, as well as the orders of the ward mayors issued in pursuance of Items 6 and 7 of Article 6 of the said Act during the period commencing on the 11th day of September 1991 and ending on the 31st day of December 2001, with the exception of any such orders which have been revoked as legally non-conforming.(2) Any Municipal Council resolutions under Paragraph (1) shall be promulgated in the State Gazette.Act to Amend and Supplement the Cadastre and Property Register ActPromulgated, State Gazette No. 36/30.04.2004.TRANSITIONAL AND FINAL PROVISIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62. Within three months after the promulgation of this Act in the State Gazette, recordation according to the personal system shall be effected by the recording office with the Recordation Agency (sic, must be Cadastre Agency).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Act to Amend and Supplement the Spatial Development ActPromulgated, State Gazette No. 65/27.07.2004TRANSITIONAL PROVISION 24. Any designs for construction of projects of national importance, financed in whole or in part through financing contracts and agreements specified in 24 (1) of the Final Provisions (of the Spatial Development Act), whereof the designing or construction has commenced prior to the entry of this Act into force, shall be completed according to the previously effective procedure or, if the contracting authority so wishes, according to the procedure established by this Act.TRANSITIONAL AND FINAL PROVISIONSto the Geodesy and Cartography Act (SG, No. 29/2006). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11. Everywhere in the Spatial Development Act (Promulgated, State Gazette No. 1/2001, amended, SG No. 41/2001, SG No. 111/2001, SG No. 43/2002, amended and supplemented, SG No. 20/2003, SG No. 65/2003, SG No. 107/2003, amended, SG No. 36/2004, amended and supplemented, SG No. 65/2004, amended, SG No. 28/2005, amended and supplemented, SG No. 76/2005, SG No. 77/2005, amended SG No. 88/2005, No. 94/2005, No. 95/2005, amended and supplemented, SG No. 103/2005, amended, SG No. 105/2005) the words "Cadastre Agency" shall be replaced by "Geodesy, Cartography, and Cadastre Agency".TRANSITIONAL AND FINAL PROVISIONSto the Spatial Development Act Amendment Act(SG, No. 76/2006, effective 1.01.2007). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. Technical passports of existing commissioned construction works - state and municipal property, except cases under Article 176a, Paragraph 1, shall be prepared by 31 December 2011. The terms for preparation of technical passports for different construction works categories shall be defined by the ordinance under Article 176a, Paragraph 6. 9. All ordinances under this Act shall be issued or adopted by 31 December 2006.(*) Act to Amend the Commercial Register Act(SG No. 80/2006, effective 3.10.2006) 1. In 56 of the Transitional and Final Provisions the words "1 October 2006" shall be replaced by "1 July 2007"Chamber of Developers Act(SG No. 108/2006)TRANSITIONAL AND FINAL PROVISIONS....................................................................... 4. The provisions of Items 1 and 4 of 3 herein shall enter into force one year after the entry into force of this Act.(*) Act to Amend the Commercial Register Act(SG No. 53/2007, effective 30.06.2007) 1. In 56 of the Transitional and Final Provisions of the Commercial Register Act, the words "the 1st day of July 2007" shall be replaced by "the 1st day of January 2008".........................................................................Act to Amend and Supplement the Spatial Development Act(SG No. 61/2007, effective 27.07.2007)TRANSITIONAL AND FINAL PROVISIONS 69. The Municipal Councils shall adopt the ordinances referred to in Article 62 (10) and Article 196 (5) [of the Spatial Development Act] within three months after the entry of this Act into force. 70. The time limits referred to in Article 208 [of the Spatial Development Act] for initiation of condemnation procedures in respect of corporeal immovables, designated for construction of works constituting public state or municipal property under the detailed plans effective at the date of entry into force of this Act, shall begin to run as from the 31st day of March 2001. 71. Within one month after the entry into force of this Act, the Council of Ministers shall adopt the amendments to the statutory instruments of secondary legislation related to the status of the chief architect, arising from this Act, which shall apply as from the day of entry into force of the said Act. 72. (1) Any pre-existing works referred to in 24 (1) of the Final Provisions [of the Spatial Development Act], whereof the construction has commenced prior to the entry into force of this Act, shall be completed according to the hitherto effective procedure and, if the contracting authority so wishes, according to the procedure established by this Act.(2) Not later than the 31st day of December 2008, the Minister of Regional Development and Public Works shall arrange the official translation into the Bulgarian language of the documents published by the International Federation of Consulting Engineers (FIDIC): Conditions of Contract for Works of Civil Engineering Construction (CONS), Conditions of Contract for Engineering, Procurement and Construction/Turnkey Projects (EPCT), Short Form of Contract, Client-Consultant Agreement (White Book) Guide, and FIDIC Contracts Guide.(3) The documents covered under Paragraph (2) shall be posted on the Internet site of the Ministry of Regional Development and Public Works. 73. This Act shall enter into force as from the day of promulgation thereof in the State Gazette. For more information visit www.solicitorbulgaria.com id: 301 Fri, 01 Aug 2008 01:40:55 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-spatial-development-act-part-3 http://web.solicitorbulgaria.com/index.php/bulgarian-spatial-development-act-part-3 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/SPATIAL_DEVELOPMENT_ACT2.JPG EUR http://web.solicitorbulgaria.com/index.php/bulgarian-spatial-development-act-part-3 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) PART ONEFUNDAMENTAL PRINCIPLES OF SPATIAL DEVELOPMENTChapter OneGENERAL PROVISIONSArticle 1. (Amended, SG No. 65/2003) (1) The territory of the Republic of Bulgaria is a national asset. Spatial development shall guarantee sustainable development and favourable living, working and recreation conditions to the community.(2) This Act regulates the social relations associated with spatial development, development-project designing and construction in the Republic of Bulgaria and determines the restrictions on ownership for spatial-development purposes.Article 2. The Council of Ministers shall determine the principal guidelines and fundamental principles of spatial development policy and shall adopt decisions concerning the financing of spatial-development activities.Article 3. (1) (Amended, SG No. 65/2003) The Minister of Regional Development and Public Works shall direct the implementation of the national spatial-development policy and shall coordinate the activities of the central and the… For more information visit http://www.solicitorbulgaria.com id: 303 PART ONEFUNDAMENTAL PRINCIPLES OF SPATIAL DEVELOPMENTChapter OneGENERAL PROVISIONSArticle 1. (Amended, SG No. 65/2003) (1) The territory of the Republic of Bulgaria is a national asset. Spatial development shall guarantee sustainable development and favourable living, working and recreation conditions to the community.(2) This Act regulates the social relations associated with spatial development, development-project designing and construction in the Republic of Bulgaria and determines the restrictions on ownership for spatial-development purposes.Article 2. The Council of Ministers shall determine the principal guidelines and fundamental principles of spatial development policy and shall adopt decisions concerning the financing of spatial-development activities.Article 3. (1) (Amended, SG No. 65/2003) The Minister of Regional Development and Public Works shall direct the implementation of the national spatial-development policy and shall coordinate the activities of the central and the local executive authorities, the activities of the bodies of local self government and of the local administration, and shall provide methodological guidance and exercise control over the overall spatial-development practice.(2) The Minister of Regional Development and Public Works shall appoint a National Expert Board on Spatial Development and Regional Policy, and shall organize the operation thereof.(3) (New, SG No. 65/2003) Acting on a motion by the Minister of Defence and the Minister of Interior, the Minister of Regional Development and Public Works shall appoint specialized expert boards on spatial development which shall consider development project designs for special-purpose installations related to national defence and security. The Minister of Defence and the Minister of Interior shall organize the work of the said boards.Article 4. (1) Regional Governors shall implement the national spatial-development policy within the territory of the administrative regions whereof they are in charge.(2) Depending on the spatial-development objectives and tasks of administrative-regional and inter-municipality importance, the (competent) Regional Governor may appoint an administrative regional expert board on spatial development and shall organize the operation thereof for performance of the functions vested therein by this Act. The composition of such expert board shall be determined according to the character of the work under consideration.(3) (New, SG No. 65/2003) The Regional Governor shall organize the keeping of records of the acts issued thereby according to the powers vested therein under this Act.Article 5. (1) (Supplemented, SG No. 65/2003) Acting within the competence vested therein, the Municipal Council and the municipality mayor shall determine the spatial-development policy and shall implement spatial-development activities within the territory of the relevant municipality.(2) (Amended, SG No. 61/2007) Chief architects shall be appointed under an employment or civil-service relationship in the municipalities and in the boroughs of Sofia Municipality and of the cities subdivided into boroughs on the basis of a competitive selection procedure. To be eligible for appointment as chief architect, a person must possess full licensed designer competence or have the length of service required for attainment of such competence.(3) (Amended, SG No. 65/2003, SG No. 61/2007) The Chief Architect shall direct, coordinate and control the activities comprehended in spatial planning, design and construction within the relevant spatial-development area, shall coordinate and control the operation of the units referred to in Paragraph (6), and shall issue the administrative acts conforming to the powers conferred thereon under this Act. The Chief Architect of a municipality shall coordinate and control the activities of the chief architects of boroughs.(4) The municipality mayor (or ward mayor) shall appoint a municipal (or ward) expert board on spatial development.(5) (New, SG No. 65/2003) The municipality mayor shall organize the keeping of records of the spatial-development plans as approved and the modifications thereof, records of the construction files as issued, a register of all resolutions on preparation of detailed plans and of any modifications thereof, a register of the building permits as issued, and a register of commissioned construction works.(6) (New, SG No. 65/2003, amended, SG No. 61/2007) Units for performance of the functions and tasks under this Act shall be established within the structure of the municipal administration and of the borough administration.(7) (New, SG No. 65/2003) The Minister of Regional Development and Public Works and the regional governors shall transmit copies of the effective acts issued thereby within the scope of the powers vested therein under this Act regarding works within the territory of the relevant municipality to the municipal records for custody. The Minister of Interior and the Minister of Defence shall provide information to the municipalities regarding the special-purpose installations related to national defence and security according to the procedure established by the Classified Information Protection Act. Article 6. (1) The National Expert Board on Spatial Development and Regional Policy, the regional and the municipal (or ward) expert boards on spatial development shall perform consulting and expert examination activities.(2) The expert boards referred to in Paragraph (1) may furthermore include experts other than employees of the administration wherewith the said boards have been established.(3) Financial resources may be allocated under the appropriate budgets for the operation of the expert boards referred to in Paragraph (1).(4) (Amended, SG No. 65/2003) The expert board shall furthermore include representatives of the specialized control and clearance authorities where the opinion, decision or authorization thereof are required by statute.(5) (Repealed, SG No. 65/2003).(6) (Amended, SG No. 65/2003) The specialized expert boards on spatial development related to national defence and security shall perform the following functions:1. conduct an expert examination of development-project designs;2. accept development-project designs;3. perform other activities as shall be assigned thereto by the Minister of Defence or by the Minister of Interior.(7) (Amended, SG No. 65/2003) The terms and procedure for the work of the expert boards shall be regulated by an order of the appointing authority.Chapter TwoINTENDED PURPOSE OF SPATIAL-DEVELOPMENT AREAS AND LOTSArticle 7. According to the basic intended purpose thereof as determined by the (relevant) spatial-development schemes and plans, there shall be the following types of spatial-development areas in Bulgaria: urbanized areas (nucleated settlements and dispersed settlements), agricultural areas, forest areas, protected areas, and disturbed areas for rehabilitation.Article 8. The specific intended purpose of lots shall be determined by the relevant detailed plan and may be one of the following:1. (amended, SG No. 65/2003, amended and supplemented, SG No. 65/2004) within urbanized areas or in detached lots outside the boundaries of such areas: for residential, public-services, manufacturing, storage, resort, country-house, sporting or recreational functions, for green spaces and landscaped links between green spaces and nature-conservation areas, for decorative water features (cascades, navigable canals and other such), for public access and transport, including bicycle paths and movement of persons with disabilities, for physical infrastructure, for special-purpose installations etc.;2. within agricultural areas: for cropland (fields, orchards or vegetable gardens, vineyards, meadows etc.) or for uncropped land (pastures, slopes, ravines, gullies etc.);3. within forest areas: for forests (merchantable forests, protection forests, recreation forests etc.) or for woodland (glades, heaths, rocks etc.);4. (amended, SG No. 88/2005) within protected areas: for nature conservation (nature reserves, national parks, natural monuments, managed reserves, natural parks, protected sites, coastal beaches, sand dunes, water sources with the sanitary protected areas thereof, aquatic areas, wetlands, protected water margins) or for protection of cultural and historical heritage sites (archaeological reserves, specific blocks or lots within nucleated settlements of cultural, historic, ethnographic or architectural significance);5. within disturbed areas: for rehabilitation and reclamation of quarries, ore mines, waste banks, tailings ponds, sanitary landfills, cave-ins etc.Article 9. (Supplemented, SG No. 65/2003, amended, SG No. 65/2004, SG No. 61/2007) (1) In spatial-development areas without spatial-development plans, until the entry into effect of the plans, the assigned use of the lots shall be determined by the actual use of the said lots, insofar as the said use does not conflict with a statute.(2) The assigned use of any spatial-development areas and lots shall be altered for the purpose of building development on the basis of an effective detailed plan under the terms and according to the procedure established by this Act.(3) The assigned use of any spatial-development areas and lots which are cultural and historical heritage sites shall be altered after clearance with the National Institute of Monuments of Culture under the terms and according to the procedure established by Article 125 (5) herein.Chapter ThreeSPATIAL DEVELOPMENT OF SPATIAL-DEVELOPMENT AREAS AND LOTSSection IGeneral Requirements to Spatial DevelopmentArticle 10. (1) The requirements to spatial development shall be established by spatial-development schemes and plans in accordance with the effective statutory framework.(2) Special planning-protection areas, including areas of distinctive character designated according to the procedure established by separate statutes, may acquire a special planning and control mode. The scope and the planning mode of such areas shall be determined by spatial-development schemes and plans.(3) A preventive planning-protection mode may be conferred on spatial-development areas and parts thereof, designated according to the procedure established by this Act, whereby the actual use of the said areas and parts is preserved without degradation of the qualities thereof.Article 11. (Supplemented, SG No. 65/2003) In order to ensure appropriate spatial development, lots may be grouped together into spatial- development areas and planning zones which shall be designated by the master plans and detailed plans and in accordance with the ordinance referred to in Article 13 (1) herein.Article 12. (1) Within the meaning given by this Act, "building development" shall be the arrangement and construction of buildings, structures, networks and facilities in lots.(2) Building development shall be permissible solely where projected by an effective detailed plan and after alteration of the intended purpose of the land, where so required according to the procedure established by a special statute.(3) (Amended, SG No. 65/2003) Building development of works whereof the functions are compatible with the intended purpose of the lots shall be permissible in any lots referred to in Items 2, 3 and 4 of Article 8 herein without alteration of the intended purpose, in compliance with the effective statutory framework and on the basis of a detailed plan or a design permit issued by the Chief Architect of the municipality.Article 13. (1) The Minister of Regional Development and Public Works shall issue an ordinance establishing the rules and standard specifications applicable to the planning of the particular types of spatial-development area and planning zone.(2) (Amended, SG No. 65/2003, SG No. 61/2007) Special rules and standard specifications, admitting deviations from the rules and standard specifications referred to in Paragraph (1), may be established attached to the relevant master plans and detailed plans or parts thereof in respect of:1. any special planning protection areas or parts thereof and any preventive planning protection mode areas or parts thereof referred to in Article 10 (2) and (3) herein;2. any spatial-development areas or parts thereof assigned for low-rise residential development in nucleated settlements of complicated ground and geologic conditions and/or for low-rise residential development with social housing;3. any spatial-development areas or parts thereof for special-purpose installations related to national defence and security.(3) (Amended and supplemented, SG No. 61/2007) The special rules and standard specifications referred to in Paragraph (2) shall be adopted by the National Expert Board on a proposal by the competent Municipal Council (or municipal councils) prior to the approval of the relevant spatial-development plans. The Minister of Regional Development and Public Works shall approve or shall refuse to approve the decision of the National Expert Board by an order which shall be promulgated in the State Gazette. The said order shall be unappealable and shall be binding on the municipal authorities concerned.(4) (New, SG No. 65/2003) The special rules and standard specifications related to national defence and security shall be determined by an ordinance of the Minister of Regional Development and Public Works, the Minister of Defence, and the Minister of Interior.(5) (Renumbered from Paragraph (4), SG No. 65/2003) With a view to maintaining the natural balance and the permissible pressure on spatial-development areas, the building development thereof shall be implemented in accordance with standard specifications as to the land required according to the ordinance referred to in Paragraph (1).(6) (New, SG No. 65/2004) In respect of any cultural and historical conservation areas, establishment of special rules and standard specifications referred to in Paragraph (2) shall be mandatory. The said rules and specifications shall be adopted by the National Expert Board, referred to in Paragraph (3), which shall mandatorily include representatives of the National Institute of Monuments of Culture.Section IIRegulation and Building Development of Spatial-DevelopmentAreas and LotsArticle 14. (1) The detailed plans shall regulate streets, as well as blocks and lots for building development and for purposes other than building development.(2) Streets and blocks shall be regulated by means of record street lines.(3) Lots shall be regulated by means of:1. record street lines, delimiting the lot boundary with the adjoining street (frontage of the lot);2. inner record lines, delimiting the lot boundaries with the adjoining lots (side and rear), under the terms established by Articles 16 and 17 herein.(4) Regulated lots shall mandatorily have a frontage (egress) to a street, to a road or, as an exception, to a park walk.(5) The record lines covered under Paragraph (3) shall become lot boundaries in lots regulated by a detailed plan.Article 15. (1) A detailed plan referred to in Article 16 or in Article 17 herein shall regulate solely such lots as have not been regulated by a preceding detailed plan. Any lots once regulated shall not be subject to any succeeding regulation except in the cases provided for in this Act.(2) Any succeeding detailed plan may regulate solely streets or blocks without altering the boundaries between the lots.(3) (Amended, SG No. 65/2003) The boundaries of regulated lots may be altered solely by means of a regulation plan with the consent of the owners of the said lots, and such consent must be expressed in a statement and tentative agreement on transfer of title bearing notarized signatures.(4) (New, SG No. 65/2003) Where the boundaries of any regulated lots constituting state property are altered by means of a regulation plan, the agreement referred to in Paragraph (3) shall be concluded at market prices by the Regional Governor in writing.(5) (New, SG No. 65/2003) Where the boundaries of any regulated lots constituting municipal property are altered by means of a regulation plan, the agreement referred to in Paragraph (3) shall be concluded at market prices by the municipality mayor in writing.(6) (New, SG No. 65/2003) Any order approving a regulation plan whereby the boundaries between regulated lots are altered according to the procedure established by Paragraph (3) shall enter into effect as from the issuance thereof and shall be communicated to the applicants.(7) (New, SG No. 65/2003) Construction within any regulated lots whereof the boundaries are altered by the regulation plan according to the procedure established by Paragraph (3) herein shall be authorized after presentation of a conclusive contract under Paragraph (3), (4) or (5).(8) (New, SG No. 65/2003) Construction within any regulated lots whereof the boundaries are altered by the regulation plan according to the procedure established by Paragraph (3) herein shall be denied authorization where, as a result of the modification of the regulation plan, the building-development plan of the regulated lots concerned conflicts with the effective spatial-development rules and standard specifications.(9) (New, SG No. 65/2003) A modification of the regulation plan according to the procedure established by Paragraph (3) shall be refused by an order of the municipality mayor where the draft modification provides for creation of a legally impermissible siting of any existing buildings or of authorized construction works.(10) (New, SG No. 65/2003) A modification of the regulation plan according to the procedure established by Paragraph (3) shall be refused by an order of the municipality mayor where the draft modification provides for creation of regulated lots whereof the frontage and surface area are less than the minimum requirements established by statute for the building-development character and manner determined by the building-development plan of the said lots.(11) (New, SG No. 65/2003) Copies of the effective modifications of the detailed spatial-development plans referred to in Paragraph (3) shall be transmitted through official channels by the municipality to the Geodesy, Cartography, and Cadastre Agency upon presentation of a conclusive contract under Paragraph (3), (4) or (5).Article 16. (1) (Supplemented, SG No. 61/2007) A detailed plan in respect of previously unregulated spatial-development areas, as well as in respect of spatial-development areas whereto the first regulation under a preceding spatial-development plan has not been applied, shall determine the surface areas as shall be necessary for construction of the social infrastructure projects constituting public property, of the green spaces consolidated into a green structure, and of the physical-infrastructure public networks and facilities. For the purpose of implementation of the said projections, upon entry of any such plan into effect, the owners of lots (affected) shall transfer to the municipality a percentage share of the surface area of the corporeal immovables thereof as determined by the plan which may not exceed 25 per cent.(2) A detailed plan referred to in Paragraph (1) shall be prepared on the basis of a cadastral map as approved according to the procedure established by the Cadastre and Property Register Act. (3) The frontage and the surface area of any newly formed regulatedlots, the specific intended purpose thereof, and the building-development character and manner thereof shall be determined by the detailed plan proper.(4) In the cases covered under Paragraph (1), the municipality shall allot to each owner of a lot affected an equivalent regulated lot or lots, reckoning with the location of the lots in the site but without regard to the exact cadastral boundaries of the said lots. Where a property extends over different planning zones, the newly formed regulated lot shall be provided in the zone where the lot (transferred) was predominantly located. The market value of the regulated lots may not be less than the market value of the properties prior to the regulation thereof, which shall be evidenced by a decision of the commission under Article 210 herein.(5) Title to the regulated lots newly formed by the plan shall pass to the owners of lots referred to in Paragraph (4), and title to the shares ceded thereto under Paragraph (1) shall pass to the municipality on the effective date of the (relevant detailed) plan. For the purpose of acquisition of title to each particular regulated lot, the municipality mayor or a person thereby authorized shall issue an order setting forth the precise individualization of the lot concerned. Within seven days after the effective date of such order, a copy thereof shall be transmitted to the Recording Office, and a copy of the approved plan referred to in Paragraph (1) shall be transmitted to the Geodesy, Cartography, and Cadastre Agency for entry in the property register and plotting in the cadastre proprio motu.(6) Mortgages raised on lots prior to the regulation thereof shall pass entirely onto the newly created regulated lots. The municipality shall acquire the shares in the lots thereto ceded unencumbered by any charge.(7) In respect of any spatial-development areas with unregulated lots, as well as of any spatial-development areas whereto the first regulation under a preceding spatial-development plan has not been applied, a regulation plan for streets and lots for projects constituting public property, referred to in Item 2 of Article 110 (1) herein, may be created by resolution of the (competent) Municipal Council in lieu of a plan referred to in Paragraph (1).Article 17. (1) In any cases other than such covered under Article 16 herein, a detailed plan in respect of a nucleated settlement or a part thereof shall regulate theretofore unregulated lots, whereupon the inner record lines of the said lots shall become coincident with the (existing) property lines.(2) In compliance with the rules and standard specifications established in this Act, the plan referred to in Paragraph (1) may regulate:1. existing unregulated lots for the purpose of formation of a larger number of self-contained regulated lots;2. lots whereof the size does not satisfy the requirements established by Article 19 herein, for the purpose of establishing full-size lots by means of incorporation of parts of adjoining lots;3. adjoining unregulated lots, for the purpose of creation of co-owned regulated lots.(3) (Supplemented, SG No. 65/2003) In the cases covered under Paragraph (2), the owners concerned shall submit an application to the (appropriate) municipality, and in the cases referred to in Items 2 and 3 of Paragraph (2), any such application shall enclose a tentative agreement on transfer of title bearing notarized signatures. The undivided interests held by the co-owners in the co-owned regulated lots as formed shall be determined by the agreement proper.(4) (New, SG No. 65/2003) Where any regulation plan referred to in Items 2 and 3 of Paragraph (2) affects any lots constituting state property, the agreement referred to in Paragraph (3) shall be concluded at market prices by the Regional Governor in writing.(5) (New, SG No. 65/2003) Where any regulation plan referred to in Items 2 and 3 of Paragraph (2) affects any lots constituting municipal property, the agreement referred to in Paragraph (3) shall be concluded at market prices by the municipal mayor in writing.(6) (New, SG No. 65/2003) In the cases referred to in Items 2 and 3 of Paragraph (2), construction may be authorized upon presentation of a conclusive contract under Paragraph (3), (4) or (5).(7) (Renumbered from Paragraph (4) and supplemented, SG No. 65/2003) Copies of the effective detailed plans shall be transmitted by the municipality to the Geodesy, Cartography, and Cadastre Agency through official channels. In the cases referred to in Items 2 and 3 of Paragraph (2), copies of the effective detailed plans shall be transmitted by the municipality to the Cadastre Agency through official channels upon presentation of a conclusive contract under Paragraph (3), (4) or (5).Article 18. (1) In respect of lots regulated for building development, a detailed plan shall determine:1. the specific intended purpose, permissible activities and permissible building development;2. the maximum building-development density;3. the maximum building-development intensity;4. the minimum open yard space;5. the mandatory minimum yard green space;6. the building-development manner and character;7. the building-development lines.(2) Particular types of a detailed plan may contain only part of the specifications covered under Paragraph (1).Article 19. (1) Upon regulation of lots for low-rise residential development, whether detached or attached across the boundary between two lots, the lot sizes shall comply with the following requirements:1. in urban settlements: a minimum of 14 metres in frontage and 300 square metres in surface area;2. (amended, SG No. 65/2003) in resort nucleated settlements and dispersed settlements and in resort zones with nucleated settlements: a minimum of 16metres in frontage and 500 square metres in surface area;3. in country-house zones: a minimum of 18 metres in frontage and 600 square metres in surface area;4. in rural settlements or parts thereof located on predominantly level ground: a minimum of 16 metres in frontage and 500 square metres in surface area; and where specific ground or economic conditions apply, as well as along major streets: a minimum of 14 metres in frontage and 300 square metres in surface area;5. in rural settlements or parts thereof located on predominantly steep ground: a minimum of 12 metres in frontage and 250 square metres in surface area.(2) The rural settlements and the parts thereof located on predominantly level or steep ground shall be designated by the (competent) Municipal Council by resolution on the basis of an opinion of the municipal expert board.(3) (Amended, SG No. 65/2003) The minimum frontage and floor area sizes of lots regulated for low-rise development, as determined in Paragraph (1), may be reduced by not more than one fifth depending on the economic, technical or ground conditions, or to allow for the position of pre-existing solid buildings, where such allowance shall not result in deterioration of the conditions for appropriate building development, on the basis of an opinion of the municipal expert board.(4) Upon partition of any lot covered under Paragraph (1), the sizes of the resulting physical divisions may not be smaller than the minimum established in Paragraph (1) or reduced by more than one-fifth of the said sizes.(5) (Amended, SG No. 61/2007) Upon regulation of lots in blocks for medium-high-rise and high-rise development, for low-rise development attached across the boundary between two lots, for development with social housing or for other development of specific character extending over more than two lots, the sizes of the lots concerned shall be determined by the relevant detailed plan proper without compliance with the minimum standards covered under Paragraph (1).(6) (Amended, SG No. 65/2003) Upon regulation of lots for non residential development or for purposes other than building development within nucleated-settlement limits, the sizes of the lots concerned shall be determined by a detailed plan, in conformity with the requirements of sanitation, hygiene and fire protection and the relevant spatial-development rules and standard specifications.(7) (Supplemented, SG No. 65/2003) The apparent outlines of streets, squares and regulated lots and the sizes thereof, as well as the building development of lots within nucleated settlements or parts thereof of historic, archaeological, ethnographic or architectural significance shall be established by the (relevant) detailed plan proper, so as to preserve the historical and architectural landmarks, the surroundings, the distinctive spatial design and architectural and aesthetic character, and the valuable tree vegetation.Section IIITypes of Building Development, Building-Development ParametersArticle 20. (1) Building development in regulated lots can be either principal or accessory.(2) The principal development shall conform with the specific intended purpose of the lots according to Article 8 herein, as determined by the (relevant) detailed plan.(3) Development with auxiliary, farm or subordinate structures shall be accessory to the principal development in regulated lots.Article 21. (1) The building-development manner in adjoining regulated lots can be either detached or attached.(2) (Supplemented, SG No. 61/2007) Principal-development buildings may be developed in an attached manner solely across side property lines, with completely overlapping blank walls. Non-overlapping of a blank wall may be admitted under terms and according to a procedure established by the rules and standard specifications referred to in Article 13 herein, where the overlapping of the blank wall leads to a breach of other standard specifications for height and separations and when other existing specific features have to be complied with.(3) (New, SG No. 61/2007) The provisions of Paragraph (2) shall not apply to any protected cultural and historical heritage areas.(4) (Renumbered from Paragraph (3), SG No. 61/2007) Accessory-development structures may be developed in an attached manner across inner property lines.(5) (Renumbered from Paragraph (4), SG No. 61/2007) Attached low-rise development shall be permissible subject to the consent of the owners of the adjoining lots wherein the attached development shall be established.Article 22. (1) In blocks or in large regulated lots, cluster development may be applied, with arrangement in clusters of buildings of different intended purposes, whether free-standing or attached.(2) The open spaces between buildings in cluster development shall be spatially developed predominantly as parks and gardens.(3) In residential or resort complexes, cluster development may combine with building development within separate regulated lots.(4) (New, SG No. 106/2006) New construction in the existing residential complexes shall be projected on the basis of a detailed plan referred to in Article 110 (4) herein: a plan for regulation and building-development mode of the residential complex of a scope extending at least to the spatial- development area of one block in cluster-development mode. The draft regulation plan and the draft building-development mode for redevelopment of the residential complex shall be subject to a public debate according to the procedure established by Article 121 (1) herein prior to being laid before the expert boards on spatial development.(5) (New, SG No. 106/2006) The drafts referred to in Paragraph (4) may not exceed the parameters of the plan according to which the residential complexes were established.(6) (Supplemented, SG No. 65/2003, amended, SG No. 65/2004, renumbered from Paragraph (4), SG No. 106/2006, amended and supplemented, SG No. 61/2007) Upon regulation of lots within the existing blocks with cluster development, the separations between the newly projected buildings and the existing buildings shall be determined according to the clustered development rules. The building development density and intensity in any such lots may not exceed the parameters fixed by the plan for the relevant planned development zone, while concurrently reckoning with the parameters for the separate blocks within the said zone. The assigned use of any grounds situated within the same block may not be altered for the purpose of increasing the building development density if the standard specifications for green spaces, established in the ordinance referred to in Article 13 (1) herein, have not been achieved.(7) (New, SG No. 65/2004, renumbered from Paragraph (5) and amended, SG No. 106/2006, SG No. 61/2007) Upon restructuring of blocks with cluster development, there shall be designated spaces adjoining the existing buildings according to the rules and standard specifications established in the ordinance referred to in Article 13 (1) herein, which shall be regulated as lots. The remaining undeveloped part of the blocks, including the lots for which building development cannot be projected according to the rules referred to in Paragraph (6), shall be regulated as green spaces for general public use and shall be entered in the public register referred to in Article 63 (1) herein.Article 23. (1) The building-development character shall be determined depending on the height of the principal-development buildings as follows:1. low-rise: of a height not exceeding 10 metres;2. medium-rise: of a height not exceeding 15 metres;3. high-rise: of a height exceeding 15 metres.(2) (Supplemented, SG No. 65/2003) Solely low-rise development, of a height not exceeding 7 metres, shall be permissible in country-house zones.Article 24. (1) (Supplemented, SG No. 65/2003 and SG No. 65/2004) The height of a building, where facing the building development line, shall be measured in absolute units from the level mark of the average elevation of the ground adjoining the relevant surrounding wall to: the level mark of the intersecting line of the facade plane with the roof plane, applicable to buildings with roof eaves; to the level mark of the upper surface of the cornice, applicable to buildings with cornices; to the level mark of the highest point of the surrounding walls, applicable to buildings without cornices and without eaves.(2) (Amended and supplemented, SG No. 65/2003) The height of a building shall exclude the height of the roof space, provided that such space shall remain behind a geometrical plane enclosed between an angle of 45 degrees with the horizon and the line of intersection of the facade plane with the upper plane of the cornice or eaves or, applicable to buildings without cornices and without eaves, with the highest point of the surrounding walls. Where the height of the roof space is not included in the height of the building, the level mark of the ridge may not exceed the level mark of the cornice or, respectively, the eaves or the highest point of the surrounding walls, by more than 4. 5 metres.(3) (New, SG No. 65/2004) The height of a building shall be presumed equal to the permissible height if the building is located within a space bounded by a vertical plane along the building-development line of a height equal to the permissible height and a geometrical plane enclosed between an angle of 45 degrees with the horizon and the said height. In such a case, the level mark of the ridge may not exceed the height of the building, measured under the terms established by Paragraph (1), by more than 4. 5 metres.Article 25. Building development in regulated lots shall be delimited by outer and inner building-development lines beyond which the buildings may not be arranged at ground level or along which the buildings must be arranged at ground level, according to the projection of the (relevant) detailed plan.Article 26. (1) (Amended, SG No. 65/2003) The outer building development line shall be set back from the record street line of the primary street network as follows:1. along first-class streets (urban freeways): a minimum of 15 metres;2. along second-class streets (urban highways): a minimum of 5 metres;3. along third-class streets (arterial streets): a minimum of 3 metres.(2) Where a street referred to in Items 2 or 3 of Paragraph (2) has a frontage road, the outer building-development line may be coincident with the record street line.(3) The setbacks covered under Paragraph (1) may be reduced in cases where the pre-existing buildings are preserved and incorporated into the system of building development under the detailed plan, with the building-development line of any new buildings being determined respecting the building-development line of the existing buildings where the said pre-existing buildings shall predominate.Article 27. (1) The building-development lines in a regulated lot having frontage upon two streets shall be delimited according to the rules applicable to each street.(2) In a regulated corner lot, where the building-development lines are coincident with the record street lines along both streets, the building-development line in the intersection zone shall be set back at least 2 metres from the point of intersection of the record street lines of the regulated lot.(3) (Supplemented, SG No. 61/2007) Building-development density and intensity shall not be restricted in regulated corner lots with attached principal development along the two side record lines.(4) (New, SG No. 61/2007) The provision of Paragraph (3) shall not apply where the regulated lot has a frontage to two streets of which one is cul-de-sac.Article 28. A detailed plan may prescribe different depths of development for the first storey above ground level (of such height as the said plan shall determine) and, separately, for the principal development above the first storey above ground level, complying with the standard specifications regarding building development density and intensity and regarding separations between buildings.Article 29. The depth of development of residential buildings shall not be restricted where the maximum permissible standard specifications for building-development density and intensity, for green space and for separations from regulated-lot boundaries and between buildings are complied with under the terms established by Articles 31 to 35 inclusive herein, in any of the following cases:1. upon detached development;2. upon attached development, solely across the boundary between two regulated lots.Article 30. (1) (Amended, SG No. 41/2001) In residential zones with attached development, the depth of principal-development residential buildings above the first storey above ground level shall be a maximum of 16 metres.(2) Exceptions to the rule established by Paragraph (1) shall be permissible solely where the regulated lot has a depth exceeding 30 metres and a frontage of at least 20 metres.(3) The depth of development of non-residential buildings shall not be restricted if the requirements of sanitation, hygiene and fire protection and the requirements established by Article 35 (1) herein are complied with.Section IVRules and Standard Specifications Regarding Arrangement ofPrincipal-Development BuildingsArticle 31. (1) (Amended, SG No. 65/2003) In respect of low rise residential development, the standard specifications regarding the separations between principal-development buildings shall be:1. from the side regulated-lot line: a minimum of 3 metres;2. from the rear regulated-lot line: a minimum of 5 metres.(2) (Amended, SG No. 65/2003) In respect of medium or high-rise residential development, the standard specifications regarding the separations between principal-development buildings shall be:1. from the side regulated-lot line: a minimum of one-third of the height of the building;2. from the rear regulated-lot line: a minimum of 6 metres.(3) (New, SG No. 65/2003) The standard specifications regarding the separations covered under Paragraph (2) shall be optional where the inner regulated-lot lines abut a river. In such cases, the building-development lines facing the river shall be determined in compliance with the requirements of hygiene, fire protection and protection against geologic hazards, as well as with the other spatial-development rules and standard specifications.(4) (Renumbered from Paragraph (3), SG No. 65/2003) The separations between two residential buildings across the side boundary of adjoining regulated lots shall be equal to the sum total of the required separations from each of the buildings to the boundary between the lots.(5) (Renumbered from Paragraph (4), SG No. 65/2003) The standard specifications regarding separations from the side regulated-lot lines, established under Paragraphs (1) and (2), shall apply to buildings of a depth not exceeding 14 metres. In respect of buildings of a larger depth, the separations shall be increased by 30 per cent for the excess of depth over 14 metres.Article 32. (1) (Amended, SG No. 65/2003, SG No. 61/2007) The separation between principal-development residential buildings across a street shall be greater than, or equal to, the combined height of the said residential buildings.(2) (Amended, SG No. 65/2003, SG No. 61/2007) The separation between principal-development residential buildings across the rear of the regulated lot shall be, at a minimum, one and a half times the height of the building oriented in a manner affording more beneficial solar access. On sloping ground, depending on the direction of the slope in respect of the orientation affording more beneficial solar access, the separation shall be increased or decreased by the difference of the average elevations of the ground adjoining the two buildings.(3) (Amended, SG No. 61/2007) Upon determination of the separation between the buildings under Paragraphs (1) and (2), the height of the building on the side affording more beneficial solar access shall be reduced by the height of the first and succeeding non-residential stories of the building affording less beneficial solar access.Article 33. (Supplemented, SG No. 65/2003) In a lot regulated for residential development with multiple buildings, as well as upon cluster development in residential or resort complexes, the separations between principal-development buildings shall be prescribed by the ordinance referred to in Article 13 (1) herein.Article 34. In country-house zones, buildings shall be separated at a minimum of 4 metres from the side lines and at a minimum of 6 metres from the rear of the regulated lot. The minimum separation between buildings across a street or across the rear of a lot shall be determined according to the procedure established by Article 32 herein.Article 35. (1) (Amended, SG No. 65/2003) The separations between residential and non-residential buildings in any two adjoining regulated lots shall be determined in conformity with the standard specifications regarding separations between residential buildings. In this case, the depth of development of the non-residential building shall be determined according to the procedure established by Article 31 (5) herein.(2) The separation from a non-residential building to the inner regulated-lot lines upon detached development may not be less than 3 metres, and the separation between any such buildings within a regulated lot shall conform to the (relevant) detailed plan and shall comply with the requirements of sanitation, hygiene, fire protection and engineering.Section VDeviations from Building-Development Rules and StandardSpecificationsArticle 36. (1) With a view to preserving pre-existing fit buildings, it shall be permissible for the actual siting of the pre-existing buildings in the working spatial-development plans to deviate from the required separations, provided that such buildings are solid and have a residual useful life of not less than 25 years, or are cultural or historical heritage sites within the meaning given by the Monuments of Culture and Museums Act. In such cases, the required separation between the pre-existing buildings and any buildings projected by the plan within adjoining regulated lots may be reduced by not more than one-third, with the building-development lines being determined respecting the siting of the pre-existing building.(2) On the basis of a working spatial-development plan, any pre existing solid buildings may be heightened together with the extension as shall be necessary for any such heightening, complying with the minimum required separations between the buildings in the adjoining regulated lots but without having to comply as well with the minimum required separation between the buildings and the relevant property lines. In such a case, it shall be permissible for the separation between the buildings, including such separation across a street, to be reduced by not more than one-third depending on the position of the pre-existing solid buildings and the possibilities for building development.(3) Upon urban development of blocks with attached development, where the height of a (new) building must conform to the height of pre-existing buildings, it shall be permissible, on the basis of a working spatial-development plan, for the separation between adjoining buildings at the rear of the regulated lot, as well as for the separation between the building-development lines on the two sides of the street, to be reduced by not more than one-third.(4) Where so proposed by the (competent) Municipal Council and authorized by the Minister of Regional Development and Public Works, deviations larger than such established in Paragraphs (1), (2) and (3) shall be permissible in respect of blocks and streets of predominantly developed (50 per cent and more) regulated lots in the central parts of urban settlements.(5) (New, SG No. 65/2003) Any authorization referred to in Paragraph (4) shall be issued within two months after receipt of a request.Section VIPrincipal-Development Buildings. Requirements to ResidentialBuildings and Dwelling UnitsArticle 37. (1) Principal-development buildings shall be constructed in conformity with the intended purpose of the regulated lots as determined in a detailed plan.(2) Principal-development buildings can be either residential, or manufacturing, or resort, or country-house, or public-services or other, as well as mixed-purpose buildings.(3) In mixed-purpose buildings, the premises and establishments for non-residential needs involving mass access of non-residents shall be arranged below the residential units.Article 38. (1) In addition to dwelling units, studios and studies for individual creative pursuits may be constructed on stories of residential buildings above ground level, and parking garages, transformer stations as an exception, as well as other physical-infrastructure projects and facilities may be constructed on the first storey (above ground level), on the semi-subterranean storey or in the basement, observing the requirements of sanitation, hygiene, fire protection and the other technical requirements and safety standards.(2) Business and service establishments in any residential building under construction may be projected in the basement, on the semi-subterranean storey, or on the first storey (above ground level), provided that any such establishment shall have a separate entrance and shall conform to the requirements of sanitation, hygiene, fire protection and other technical requirements.(3) (Supplemented, SG No. 65/2003) It shall be permissible to remodel and alter the intended purpose of any residential premise or of any self-contained dwelling unit within an existing residential building having a condominium project mode through conversion into a medical consulting room, an office or a studio for individual creative pursuits, requiring the access of non residents to the building, provided that such establishments shall be located on the first storey (above ground level) or on the semi subterranean storey and the remodelling thereof shall conform to the requirements of sanitation, hygiene, fire protection and other technical requirements, and on the basis of an express notarized consent in writing given by all owners of dwelling units adjoining the establishments. As an exception, arrangement of such establishments shall be permissible on other stories above ground level as well, solely on the basis of a resolution of the general meeting of owners passed according to the established procedure, and provided that an express notarized consent in writing has been obtained from all owners of property adjoining the said establishments.(4) (Supplemented, SG No. 65/2003) Any existing residential premise or self-contained dwelling unit on the first storey (above ground level) of a residential building may be remodelled with an alteration of the intended purpose thereof through conversion into a retail shop or for any service activities other than such covered under Paragraph (3), complying with the requirements of sanitation, hygiene, fire protection and if provided with a separate entrance other than the entrance and the common premises on the residential stories. Such conversion shall require a resolution of the general meeting of owners of dwelling units passed according to the established procedure, and an express notarized consent in writing given by all owners of property adjoining the relevant establishment.(5) (Amended, SG No. 65/2003, supplemented, SG No. 61/2007) Any premises and establishments constructed for non-residential uses within a pre-existing residential building may be remodelled and have their assigned use altered according to the standard procedure, provided that this does not lead to noise pollution and other pollution above the limit values.(6) (New, SG No. 65/2003) The consent of the owners in a condominium project shall not be required upon restoration of the residential intended purpose of any self-contained premises and projects converted to non-residential needs, constructed in a pre existing residential building.(7) (Renumbered from Paragraph (6) and amended, SG No. 65/2003) A reasoned opinion of a structural engineer possessing full licensed designer qualifications, proving that loads are not increased, that structural elements are not affected, and that the bearing capacity, the stability and the durability of the building are not impaired, shall mandatorily be presented attached to the designs for any conversion under Paragraphs (3) to (5) inclusive and, where the building structure has to be modified or loads have to be increased, a structural design part shall furthermore be presented attached to any such design.Article 39. (1) In a country-house building, parking garages may be constructed on the first storey (above ground level) or below ground level, as well as studios and studies for individual creative pursuits on the stories and within the roof space.(2) Upon alteration of the intended purpose of any building or part thereof in residential, resort or country-house zones, where such alteration shall involve mass access of non-residents or noise pollution or other pollution above the limit values applicable to the zone, in addition to compliance with the requirements established by Article 38 herein, it shall furthermore be necessary to obtain an express notarized consent in writing given by all owners and holders of limited real rights in adjoining lots.(3) (New, SG No. 65/2003) In the cases under Paragraph (2), the modification of the detailed plan shall be recorded proprio motu, on the basis of an order of the municipality mayor, without conducting a procedure for modification of the detailed plan.(4) (New, SG No. 65/2003) The consent of the owners concerned shall not be required, and a procedure for modification of the detailed plan shall not be conducted, in case a non-residential building in a residential, resort or country-house zone is converted into a residential building, and any such alteration shall be recorded according to the procedure established by Paragraph (3).Article 40. (1) Every dwelling unit must have a separate entrance, at least one residential premise, a kitchen or a kitchenette and a bathroom, as well as a cellar which may be located inside or outside the dwelling unit. It shall be permissible for the premises to be spatially linked, with the exception of lavatories and bathrooms.(2) A sanitary unit may not be located above a residential premise, above a kitchen or a food cellar except in a dwelling unit which the said sanitary unit serves.Section VIIAccessory Development, Fences(Heading amended, SG No. 65/2003)Article 41. (Amended, SG No. 65/2003) (1) The accessory development in regulated lots shall consist of auxiliary, service, farm and subordinate structures to the principal-development buildings and shall be permitted in conformity with the projections of the detailed plan.(2) Where accessory development is not projected by the effective detailed plan, such structures may be permitted by the Chief Architect of the municipality by means of an investigation and design permit referred to in Article 140 herein, if the structures are developed in a detached manner or touching to principal-development buildings in the regulated lot or attached to accessory-development structures solely between two regulated lots. Such development as permitted shall be recorded in the effective detailed plan proprio motu.(3) Any building development, whereby the planning indicators set by the detailed plan for the relevant regulated lot are exceeded, shall be impermissible according to the procedure established by Paragraph (2).Article 42. (1) (New, SG No. 65/2003) Accessory-development structures shall be arranged either in a detached manner or touching the principal development in the regulated lot, or attached to the accessory development in an adjoining lot.(2) (Renumbered from Paragraph (1), amended and supplemented, SG No. 65/2003) No accessory-development structures other than parking garages, workshops and distributive-trade and service establishments may be arranged at the record street line or between the record street line and the principal-development buildings. Accessory-development structures may be constructed along the inner regulated-lot line provided that the blank walls of the said structures overlap with the blank walls of pre existing or newly projected structures in the adjoining regulated lot or solid fences.(3) (Renumbered from Paragraph (2) and amended, SG No. 65/2003) In a free-standing arrangement, any accessory-development structures shall be of a height not exceeding 3. 6 metres and shall be separated from the inner regulated-lot lines at a minimum of 3 metres or, where up to 2. 5 metres in height, any such structures shall be separated from the southern, south-western and south eastern boundary with the adjoining regulated lot at a minimum of 1. 5 metres up to 45 degrees off due south.(4) (Renumbered from Paragraph (3) and amended, SG No. 65/2003) Any free-standing semi-subterranean structures, rising up to 1. 2 metres above the adjoining ground, shall be separated from the inner regulated-lot line at a minimum of 1. 5 metres.Article 43. (1) The required number of indoor and/or outdoor parking spaces for new buildings shall mandatorily be provided within the regulated- lot boundaries.(2) (Amended and supplemented, SG No. 65/2003) Exceptions to the provision under Paragraph (1) may be permitted by the authority competent to issue the building permit where it is impossible to provide the standard required number of indoor and/or outdoor parking spaces within the regulated- lot boundaries due to technical or statutory constraints such as: regulated- lot size and/or gradient, groundwater conditions, sanitary protected areas and other such under terms established by the ordinance referred to in Article 13 (1) herein.(3) (Amended, SG No. 65/2003) Parking garages may be constructed as accessory development in country-house and residential zones of high-rise, medium high-rise and low-rise development.Article 44. (1) (Amended, SG No. 65/2003) Accessory-development structures intended for agricultural purposes of any kind may be constructed in rural settlements.(2) (Amended, SG No. 65/2003) Accessory-development structures for keeping domestic animals may be constructed in urban settlements and country- house zones as an exception, solely in conformity with a uniform use and building-development mode for the zone as conferred by the competent Municipal Council.(3) (Amended, SG No. 65/2003) Accessory-development structures for keeping domestic animals shall be constructed having a maximum height of 5. 5 metres above the adjoining ground and 8. 5 metres measured to the highest roof point. Construction of a loft at a separate second level shall be permissible within these heights.Article 45. (Amended, SG No. 41/2001 and SG No. 65/2003) Accessory-development farm structures may not be arranged touching a blank wall of a residential building within an adjoining regulated lot.Article 46. (1) (Supplemented, SG No. 65/2003) Accessory development subordinate structures (such as summer kitchens or heating-fuel and tools sheds, wells, drinking fountains, cesspools and latrines) may be constructed in lots regulated for low-rise residential or country-house development.(2) (Supplemented, SG No. 65/2003) Accessory-development subordinate structures shall have a maximum height of 2. 5 metres above the adjoining ground and 3 metres to the highest roof point. Where such structures are arranged along the inner regulated-lot line, the highest part of the roof at the blank wall may have a maximum height of 3. 6 metres.Article 47. (1) Summer kitchens may be arranged in a detached or attached manner, without complying with the requirements regarding separations from principal-development buildings.(2) Swimming pools, wells, drinking fountains, cesspools and latrines shall be constructed in a regulated lot in conformity with the applicable technical requirements and requirements of sanitation and hygiene at a minimum separation of 3 metres from the property line.Article 48. (1) Regulated lots may be fenced off from a street and from the surrounding regulated lots.(2) (Amended and supplemented, SG No. 65/2003) Acting on a motion by the (competent) municipal expert board, the municipality mayor shall determine the general requirements regarding fences (type, shape, height, material, etc.) in conformity with the type of planning zones or spatial-development areas, the urban development of the primary street network and the other public spaces, the specific ground conditions, the intended purpose of the lots, and in accordance with the rules and standard specifications with the effective detailed plans.(3) (Supplemented, SG No. 65/2003) Fences separating adjoining regulated lots shall be arranged in equal portions within each of the lots. Where the fence is solid and of a height exceeding 0.6 metres, it shall be permitted subject to an express consent in writing given by the owners of the properties affected and provided that the separation between the said fence and a dwelling unit on the first storey (above ground level) of a building in the adjoining regulated lot is greater than, or equal to, the height of the solid part of the said fence. It shall furthermore be permissible to arrange any such fence entirely within the lot of the contracting authority.(4) (New, SG No. 103/2005) In case of absence of consent of an owner of property affected the construction of a solid fence with a height of the solid portion exceeding 0.6 metres shall be permitted in abidance with the requirements of Paragraph (3), sentence two, the fence being arranged entirely within the lot of the contracting authority.(5) (Renumbered from Paragraph (4), SG No. 103/2005) The maximum permissible height for fences shall be 2.2 metres above the adjoining ground. Should there be a difference between the ground elevations of two adjoining regulated lots, the height of the solid part of the fence between the said lots shall be measured from the level mark of the lower adjoining ground.(6) (New, SG No. 103/2005) In the case of a difference between the ground elevations of adjoining regulated lots exceeding 1.5 metres, the height of the solid portion of the fence shall be up to 0.6 metres measured from the level mark of the higher adjoining ground.(7) (Renumbered from Paragraph (5), SG No. 103/2005) The solid part of a street fence may not be higher than 0.6 metres.(8) (New, SG No. 65/2003, renumbered from Paragraph (7), SG No. 103/2005) Outside urbanized-area boundaries and within the unregulated parts of nucleated settlements, it shall be permissible to fence off lots solely by light fences conforming to the requirements under Paragraph (2).(9) (Supplemented, SG No. 65/2003, renumbered from Paragraph (6) and amended, SG No. 103/2005, amended, SG No. 61/2007) Construction of fences in the cases under Paragraphs (3) and (4), as well as in deviation from the requirements of Paragraphs (2), (5) and (7), shall be permitted for cultural and historical heritage sites, and in the rest of the cases such construction shall be permitted conforming to the assigned use of the regulated lot and with a view to ensuring stylistic unity, by the Chief Architect of the municipality on the basis of an individual architectural design.Section VIIIProvisional Construction WorksArticle 49. (1) (Amended and supplemented, SG No. 65/2003) The owners of lots projected by the (relevant) detailed plans for construction of works constituting public state or municipal property shall have the right to construct provisional construction works, if the State or the municipality concerned:1. refuses to alter the detailed plan for lack of the grounds covered under Article 134 (2) herein;2. (amended, SG No. 65/2003) refuses to purchase the corporeal immovable under the terms established by Article 199 (2) herein or fails to respond to an offer of such purchase within three months.(2) (Amended, SG No. 65/2003) In cases other than such covered under Paragraph (1), provisional construction works may be permitted according to the procedure established by this Section in such lots in respect whereof a new building-development manner or character has been established, or a ban on construction has been imposed, with the exception of landslide-hazard areas.(3) (Amended and supplemented, SG No. 65/2003) A construction work referred to in Paragraph (1) shall be permitted subject to the condition that the new construction or the other action is not projected to commence within the next succeeding one year. The condemnation of any provisional construction works shall be executed under the terms and according to the procedure established by the State Property Act or the Municipal Property Act, as the case may be.Article 50. In the cases covered under Article 49 herein, the interested parties may construct the following provisional construction works:1. (amended, SG No. 65/2003) within a developed lot:(a) a single-storied extension to a legally constructed building of a floor area not exceeding 40 square metres; in the case of a two-storied extension, the maximum floor area thereof shall be 30 square metres per storey;(b) (amended, SG No. 41/2001) a remodelling of an attic room in lieu of an extending referred to in Littera (a), with construction of a buttress not exceeding 1. 5 metres in height, and addition of skylights, regardless of the number of existing stories;(c) (amended and supplemented, SG No. 65/2003) a studio or a service establishment, complying with the limitations established by Littera (a) in respect of floor area and height;(d) (amended, SG No. 65/2003) accessory-development structures under the terms established by Article 46 herein;(e) (amended, SG No. 65/2003) a parking garage;(f) (supplemented, SG No. 65/2003, amended, SG No. 61/2007) a fence complying with the requirements under Article 48 (2) herein;2. (amended, SG No. 65/2003) within an undeveloped lot:(a) (supplemented, SG No. 65/2003) a residential building of a floor area not exceeding 60 square metres on two stories, or a single-storied residential building (of a floor area) not exceeding 80 square metre;(b) (repealed, SG No. 65/2003);(c) any of the construction works referred to in Litterae (c), (d), (e) or (f) of Item 1.Article 51. (Amended, SG No. 65/2003) (1) Provisional construction works covered under Article 50 herein shall be permitted on a single occasion per lot on the basis of a design permit specifying the building-development manner and issued by the Chief Architect of the municipality, and a construction file issued according to the standard procedure. A reduction of the established standard required separations from the property lines shall be permissible in the cases referred to in Item 1 of Article 50 herein with the consent of the interested parties expressed in a statement addressed to the municipality mayor, bearing notarized signatures.(2) In the case of a co-owned property, structures referred to in Article 50 herein may be permitted to each of the co-owners in compliance with the requirements of Article 183 herein. The aggregate floor area of the structures permitted under Article 50 herein may not exceed 30 per cent of the surface area of the lot.(3) (New, SG No. 61/2007) Any undeveloped lots falling within spatial- development areas, in respect of which the assigned use referred to in Article 61 (2) herein or another specific assigned use referred to in Article 61 (3) herein is projected but is not implemented, may be used until implementation of the projections of the plan solely for construction or placing of outdoor facilities for sporting activities and playgrounds according to the procedure established by Article 55 herein.Article 52. (1) The terms and conditions where under such structures are permitted shall be recorded in the approved development-project design and in the building permit.(2) Provisional construction works shall be connected to the existing physical-infrastructure networks and facilities by means of provisional connections.Article 53. (Amended, SG No. 65/2003) In compliance with the requirements established by this Act, any existing buildings in a lot referred to in Article 49 herein may undergo interior remodelling, or the intended purpose thereof may be altered, or any such buildings may be repaired without modification of the exterior contour thereof whether horizontally or vertically and without adding new bearing structures or substantially reinforcing the existing bearing structures.Article 53a. (New, SG No. 65/2003) Any existing construction works, which are not included in the building-development mode, shall be removed by the contracting authority not later than before completion of the permitted construction work. If the contracting authority fails to remove and such projects, the construction work shall not be commissioned, and the pre-existing construction work shall be removed for the account of the contracting authority on the basis of an order of the Chief of the National Construction Control Directorate or an official authorized thereby according to the procedure established by the ordinance referred to in Article 225 (4) herein.Article 54. (1) (Amended, SG No. 65/2003) Provisional construction works may furthermore be constructed for the needs of organization and mechanization of construction, by permission of the authority issuing the building permit. Any such provisional construction works shall be removed upon completion of the construction. If the contracting authority fails to remove any such works, the construction work shall not be commissioned and the provisional works shall be removed for the account of the said contracting authority on the basis of an order of the Chief of the National Construction Control Directorate or an official authorized thereby according to the procedure established by the ordinance referred to in Article 225 (4) herein.(2) (Amended, SG No. 65/2003) If construction fails to commence within the term of validity of the building permit, the provisional construction works shall be removed according to the procedure established by Paragraph (1).(3) (Repealed, SG No. 65/2003).(4) (New, SG No. 65/2003) Provisional construction works shall furthermore be permitted by the authority issuing the building permit for needs related to action for rehabilitation and reclamation of disturbed areas.(5) (New, SG No. 65/2003) If the action for rehabilitation and reclamation of disturbed areas fails to commence within one year after authorization of the provisional construction works referred to in Paragraph (2), the building permit issued in respect of any such projects shall be invalidated by default, and any constructed structures and facilities shall be removed according to the procedure established by Paragraph (1).(6) (New, SG No. 106/2006) Provisional construction works shall furthermore be authorized in the cases where, by virtue of a special law, a licence for prospecting and exploration has been granted or a concession for extraction of subsurface resources has been awarded, solely if related to the implementation of these activities. The building-development parameters shall be determined by a specific detailed plan. After expiry of the term of validity of the licence for prospecting or exploration or of the concession for extraction, the provisional construction works shall be removed according to the procedure established by Paragraph (1).Article 55. (Supplemented, SG No. 65/2003, amended, SG No. 61/2007) Until implementation of the detailed plan, any undeveloped regulated lots may be used for temporary outdoor parking areas, stall market-places, outdoor facilities for sporting activities and playgrounds and other such outdoor facilities on the basis of a building permit or a placing permit, as the case may be, under terms and according to a procedure established by a Municipal Council ordinance.Section IXMovable Amenities and Street FurnishingsArticle 56. (1) (Amended, SG No. 103/2005, supplemented, SG No. 61/2007) Movable amusement facilities and movable amenities for retail trade and other service activities, such as kiosks, booths, stalls, as well as other street furnishings (urban public transport stops, benches, lighting fixtures, waste receptacles, drinking fountains, water fountains, clocks and other such), may be placed in lots.(2) In respect of any amenity covered under Paragraph (1), a placing permit shall be issued according to a procedure established by a Municipal Council ordinance and, where the lot is state-owned or municipal-owned, placing of any such amenities shall require a scheme approved by the Chief Architect of the municipality. In respect of state-owned lots, any such scheme shall be approved upon consultation with the competent central administration stewarding the property, and in the rest of the cases upon consultation with the (competent) Regional Governor.(3) (New, SG No. 65/2003, repealed SG No. 103/2005). (4) (New, SG No. 65/2003, supplemented, SG No. 61/2007) A permit for placing any amenities covered under Paragraph (1) in immovable cultural property shall be issued pursuant to a plat after clearance with the National Institute of Monuments of Culture under the terms and according to the procedure established by Article 125 (5) herein.(5) (New, SG No. 65/2003) A permit for placing any amenities covered under Paragraph (1) in another's lot shall be issued on the basis of an express written consent of the owner of the lot or a written lease agreement on the surface area occupied by the movable amenity.(6) (New, SG No. 61/2007) The terms and procedure for the planning, safety and technical requirements to the equipment placed in amusement facilities shall be established by an ordinance of the Minister of Regional Development and Public Works, the Minister of Interior and the Chairperson of the State Agency for Youth and Sports.Article 57. (1) (Previous Article 57, SG No. 65/2003) Outdoor advertising displays, public-information signs or monumental and decorative fixtures may be placed on lots on the basis of a placing permit issued according to the procedure established by a Municipal Council ordinance referred to in Article 56 (2) herein.(2) (New, SG No. 65/2003, repealed, SG No. 103/2005). (3) (New, SG No. 65/2003) A permit for placing any amenities covered under Paragraph (1) in another's lot or building shall be issued on the basis of an express written consent of the owner of the lot or building, or on the basis of a written lease agreement on the surface area occupied by the amenity covered under Paragraph (1).(4) (New, SG No. 65/2003) A permit for placing any amenities covered under Paragraph (1) on any condominium-project building shall be issued on the basis of an express written consent of the condominium owners or a written lease agreement with the condominium owners on the surface area occupied by the amenity covered under Paragraph (1). Any such consent and lease agreement shall be executed according to the procedure established by the rules referred to in Article 49 (1) of the Ownership Act.(5) (New, SG No. 65/2004, amended, SG No. 61/2007) A permit for placing any amenities covered under Paragraph (1) in immovable cultural property within the boundaries and the protection zones thereof shall be issued after clearance with the National Institute of Monuments of Culture under the terms and according to the procedure established by Article 125 (5) herein.Article 57a. (New, SG No. 103/2005) (1) The amenities pursuant to Article 56 (1) and Article 57 (1) shall be lifted when they:1. have been placed without permission or in contradiction to the issued permit;2. have been placed in another's property without legal grounds or the legal grounds for the issuance of a permit for placement have become invalid;3. do not conform to the rules and provisions for spatial development;4. (amended, SG No. 76/2006) do not conform to the requirements of Article 169, Items (1), (2), (3), (4), (5) of Paragraph (1) and Item (1) of Paragraph (3);5. constitute advertisement forbidden by a law;6. the term of permit for placement has expired;7. do not conform to other requirements established with the Ordinance under Article 56 (2).(2) The circumstances under Paragraph (1) shall be established by a memorandum of ascertainment, compiled by the officials under Article 223 (7) within seven days of ascertainment of violation. The memorandum of ascertainment shall be handed to owners of amenities under Paragraph (1) who may make objections within three days following notification.(3) The mayor of the relevant municipality shall issue an order for removal of amenity within seven days of notification by memorandum of ascertainment.(4) When the owner of an amenity under Paragraph (1) placed in another's property is not known the memorandum of ascertainment shall be handed to the owner of said property. In this case the mayor of the municipality shall obligate the owner to remove it at his expense with the order pursuant to Paragraph (3).(5) When the owner of an amenity under Paragraph (1) placed in municipal property is not known, the memorandum of ascertainment and the order for removal shall be posted on a prominent location on amenity in the presence of two witnesses, as well as on the locations appointed to that end in the building of the municipality, ward or mayoralty.(6) In the order under Paragraph (3) the mayor of the municipality shall determine a deadline for removal of amenity and shall order the companies supplying water and power to terminate supplies to the amenity designed for removal.(7) (Amended, SG No. 61/2007) In case the deadline for removal in the order under Paragraph (3) is not kept, the amenity shall be removed coercively according to a procedure established by the ordinance referred to in Article 56 (2) herein.(8) If the need arises the compelling execution of the order under Paragraph (3) shall be effected with the cooperation of the police.Section XBuilding Development in Unregulated Spatial-Development AreasArticle 58. (Amended, SG No. 65/2003) Within unregulated small nucleated settlements and within parts of such settlements, building development shall be permissible on the basis of a plat copied from a cadastral map (cadastral plan) or a ground plat drafted by the designer which must contain data on the existing buildings and facilities in the adjoining properties, as well as the required elevations. Construction shall be permitted according to the established procedure in compliance with the standards of the ordinance referred to in Article 13 (1) herein. Fences shall be built following the existing property lines without marking a building line therefor.Article 59. (1) (Amended and supplemented, SG No. 65/2003) Outside urbanized-area boundaries, building development shall be permissible in compliance with the projections of an effective master plan for the territory of the municipality or a part thereof, if such plan has been elaborated, or on the basis of an effective building-development plan for a lot or group of lots, or a parcelling plan for the physical-infrastructure elements after alteration of the intended purpose of the land where so required according to the procedure established by special statute.(2) (Amended, SG No. 41/2001) Without alteration of the intended purpose of the land, building development within lots under Paragraph (1) shall be permissible under the terms established by Article 12 (3) herein.Article 60. (1) The sitting of construction works in the cases referred to in Articles 58 and 59 herein shall be determined with a view to future regulation and, to this end, no building development shall be permitted in proximity to angles or strips projecting onto roads or streets or adjoining lots, and space shall be left open for new streets or for widening of existing streets. Any construction works along aquatic areas (rivers, canals, lakes and other such) shall be arranged with a view to a possible future water margin correction.(2) Building development shall be permitted after water supply and electricity supply have been arranged for the project, as well as vehicular traffic accessibility thereto.Section XIArrangement of Green spaces and Forested SpacesArticle 61. (1) Greenspaces aggregated into a green structure shall be spatially developed within the territories of the municipalities as a means to improve the micro-climate and hygienic conditions and to provide for public recreation.(2) (Amended, SG No. 65/2004, SG No. 61/2007) At the core of the green structure, there shall be the greenspaces for general public use, assigned for durable satisfaction of public requirements of national or public importance, such as parks, gardens, paved urban spaces with plants.(3) (Supplemented, SG No. 61/2007) The green structure shall be complemented by greenspaces for restricted public use located in lots regulated for residential, country-house, public, manufacturing, resort and sporting buildings and complexes, as well as greenspaces of any other specific assigned use, such as landscaped cemeteries, botanical gardens, arboretums, zoos and securing stands.(4) (New, SG No. 65/2004) Any greenspaces referred to in Paragraph (2) and any greenspaces of specific intended purpose referred to in Paragraph (3), which are owned by the State or by a municipality, shall constitute public property.Article 62. (1) (Supplemented, SG No. 65/2003, amended and supplemented, SG No. 61/2007) Green structures and greenspaces shall be spatially developed in accordance with the approved master plans and detailed plans for urbanized areas and, applicable to parks and gardens, in accordance with detailed plans, complying with the rules and standard specifications established by the ordinance referred to in Article 13 (1) herein.(2) No greenspaces constituting public property may be sold, ceded or encumbered by any charges, nor can any such spaces be used for any other purposes.(3) Any existing greenspaces constituting public property shall be spatially developed and conserved as protected areas within the meaning given by Item 4 of Article 8 herein.(4) Any parks or gardens of historic significance or of distinctive composition and aesthetic appeal shall be designated landscape monuments and shall be spatially developed and conserved in compliance with the standard specifications established by the Monuments of Culture and Museums Act. (5) (New, SG No. 65/2004) Where any lots constituting private property fall within grounds designated for greenspaces constituting public property, the said lots shall be condemned according to the procedure provided for by the law.(6) (New, SG No. 65/2004, amended, SG No. 61/2007) Lots referred to in Paragraph (5) shall not be condemned where the detailed plans for parks and gardens project any construction of siting of works covered under Items 3 to 6 of Paragraph (7).(7) (New, SG No. 65/2004, supplemented, SG No. 61/2007) The detailed plans for parks and gardens in greenspaces constituting public property and in lots constituting private property, without alteration of the assigned use thereof, may project building development solely where necessary for:1. (supplemented, SG No. 61/2007) physical-infrastructure networks and facilities servicing the greenspaces;2. maintenance of the green structure;3. (amended, SG No. 61/2007) outdoor facilities for sporting or cultural activities;4. (new, SG No. 61/2007) playgrounds;5. (new, SG No. 61/2007) movable amenities covered under Article 56 herein, which may not occupy more than 10 per cent of the surface area of the property;6. (new, SG No. 61/2007) monumental and decorative fixtures, public- information signs and outdoor advertising displays referred to in Article 57 (1) herein;7. (new, SG No. 61/2007) memorial places and sites.(8) (New, SG No. 65/2004, amended, SG No. 61/2007) The requirements of the Monuments of Culture and Museums Act shall be complied with in respect of stand-alone or cluster cultural monuments and of the construction works within the boundaries and protection zones thereof.(9) (New, SG No. 65/2004) The detailed plans for parks and gardens shall be adopted by a Municipal Council resolution regardless of the territorial scope of the said plans. A diagrammatic layout for placing of movable amenities and advertising facilities, which shall be approved according to the procedure, provided for approval of the detailed plan for the park or garden.(10) (New, SG No. 61/2007) The Municipal Council shall adopt an ordinance on the construction and conservation of the green structure within the territory of the municipality.(11) (New, SG No. 61/2007) The terms and procedure for the planning and safety of playgrounds shall be established by an ordinance of the Minister of Regional Development and Public Works, the Minister of Interior and the Chairperson of the State Agency for Child Protection.Article 62a. (New, SG No. 61/2007) (1) The assigned use of existing greenspaces or of parts thereof within urbanized areas may not be altered where implemented according to the projections of the spatial-development plans.(2) The assigned use of spatial-development areas and lots, projected for greenspaces in the master plans or detailed plans of urbanized areas, may not be altered even where unimplemented, with the exception of parts of such areas and lots for construction of physical-infrastructure facilities or of special-purpose installations related to national defence and security.(3) Any alteration of the assigned use of spatial-development areas and lots under Paragraph (2) shall be authorized after a public debate conducted according to the procedure established by Article 121 (1) herein:1. by the Council of Ministers: in respect of state-owned properties;2. by the Municipal Council, in pursuance of a resolution passed by a majority of two-thirds of the total number of councillors: in the remaining cases.(4) Paragraphs (2) and (3) shall not apply upon alteration of the assigned use of any properties and parts thereof, projected for greenspaces in the detailed plans, which are not implemented in nucleated settlements of a population not exceeding 10,000 residents. In such cases, alteration of the assigned use shall follow the procedure established in Section IV of Chapter Seven herein.(5) Except in the cases under Paragraph (2), the assigned use of spatial-development areas and lost projected for greenspaces in the detailed plans of the urbanized areas, which are not implemented, may be altered by a new master plan or detailed plan of the entire nucleated settlement or dispersed settlement, if compliance with the standard specifications for greenspaces is proved by the schemes or diagram plans of the green structure.Article 63. (1) (Amended, SG No. 65/2004) The (competent) municipality mayor shall organize the compilation and updating of a public register of the greenspaces, of the perennial ornamental trees and of the trees of historic significance within the municipality. The information entered in the said register shall be accessible under the terms and according to the procedure established by the Access to Public Information Act. (2) Perennial ornamental trees and trees of historic significance may be felled or uprooted solely as an exception, acting on a written permission given by the municipality mayor on the basis of an expert sanitary examination of the condition of the tree concerned.(3) (Amended, SG No. 61/2007) Centuries-old or remarkable trees shall be designated as protected and shall be recorded in the register referred to in Article 113 (1) of the Biological Diversity Act. The trees designated as protected shall be recorded in the register referred to in Paragraph (1).(4) (New, SG No. 65/2003, amended, SG No. 61/2007) The draft detailed plans shall mandatorily be accompanied by a data sheet on the registered vegetation and a geodetic survey, certified by the municipal amenity-planting authorities.(5) (New, SG No. 61/2007) Within five years after the completion and acceptance of construction, the municipal amenity-planting authorities shall verify the compliance of the owners (contracting authorities) with the obligations related to amenity planting and substitute afforestation.Chapter FourPHYSICAL-INFRASTRUCTURE NETWORKS AND FACILITIESSection IGeneral Requirements to Physical-Infrastructure ElementsArticle 64. (Amended, SG No. 65/2003) (1) There shall be the following physical-infrastructure elements:1. transport physical infrastructure and the facilities thereto appertaining (bridges, tunnels, overpasses, underpasses etc.);2. transmission (disposal and delivery) lines (networks) and the facilities thereto appertaining in an unregulated spatial development area;3. transmission (removal and delivery) lines (networks) and the facilities thereto appertaining in a regulated spatial-development area;4. distribution lines and distribution devices and the facilities thereto appertaining (transformer stations, drinking water and waste-water treatment plant, electricity-supply substations, step-down and distribution stations etc.), including the connecting lines to building wiring and plumbing systems and the shared metering devices.(2) The physical-infrastructure elements shall be projected by spatial-development schemes and plans. Specific schemes, containing information on the type, size and technical parameters of the physical-infrastructure elements, shall be an integral part of the spatial-development plans.(3) Physical-infrastructure lines and facilities shall be constructed, maintained and repaired by, and for the account of, the State, the municipalities, or the utility companies concerned, save as otherwise provided by special statute.(4) Physical-infrastructure projects shall be designed and constructed according to the standard procedure established by this Act.Article 65. (Repealed, SG No. 65/2003).Article 66. (Amended, SG No. 65/2003) Corporeal immovables shall mandatorily be connected to the existing physical infrastructure networks and facilities on the basis of the construction file as issued. The utility company may not refuse a connection citing non-compliance with any requirements as have not been specified thereby upon conclusion of the coupling contract.Article 67. (1) (Amended and supplemented, SG No. 65/2003) Physical-infrastructure networks and facilities, whether underground or overhead, shall be designed and constructed on municipal-owned or state-owned lots. Where this is impracticable, the physical-infrastructure networks and facilities shall be constructed on lots owned by natural and legal persons according to the procedure established by Article 199 or Article 205 herein.(2) (Supplemented, SG No. 65/2003) On lots located over or in proximity to underground communication lines or other physical infrastructure networks and facilities, the building development shall be projected in such a manner as the said development shall not affect adversely the design of the physical infrastructure nor intrude into the servitude strips for operation and maintenance of the said infrastructure. Should it be impossible to achieve appropriate building development or where the servitude strips occupy more than one-third of the surface area of a regulated lot, the detailed plan shall project the said lot for the network concerned, with the condemnation executed for the account of the owner of the network or facility concerned in compliance with the requirements of Article 206 herein.Article 68. (1) (Amended, SG No. 65/2003) The development project designs for physical-infrastructure buildings and facilities shall furthermore project the action as shall be necessary for spatial renewal of the regulated lot whereon the said buildings and establishments are located.(2) (Amended, SG No. 65/2003) Development-project designs shall be denied clearance and approval unless the said designs project the required:1. action for spatial renewal and amenity planting of regulated lots for physical-infrastructure buildings and facilities;2. action for spatial renewal (rehabilitation of the adjoining ground for physical-infrastructure networks) in regulated spatial development areas, including amenity planting, which is to be disturbed by the projected construction;3. designs for rehabilitation of the adjoining ground for physical-infrastructure networks in unregulated spatial development areas;4. designs for roadside amenity planting, attached to the designs for transport infrastructure and national roads, including outside the boundaries of the regulated spatial-development area.Article 69. (Amended, SG No. 65/2003) Upon construction and restructuring of industrial and resort zones and dispersed settlements, the spatial-renewal action, including amenity planting, shall mandatorily be performed by the owners for the account thereof within the regulated lot. The physical infrastructure lines and facilities may be constructed for the account of the owners under terms and according to a procedure established by a Municipal Council ordinance.Section IIPhysical-Infrastructure Street Networks and FacilitiesArticle 70. (1) (New, SG No. 65/2003) The physical infrastructure lines and the transport-infrastructure facilities associated with vehicular and pedestrian traffic shall be projected and constructed as street networks and facilities.(2) (Previous Article 70, SG No. 65/2003) The location of the physical-infrastructure underground and overhead street networks and facilities shall be determined by the (relevant) master plans and detailed plans in compliance with the applicable technical rules and standard specifications.(3) (New, SG No. 65/2003) Should there be any existing lines or facilities constituting public state or public municipal property which are impossible to relocate for technical reasons, it shall be permissible to keep any such lines or facilities through appropriate allocation by a detailed plan.(4) (New, SG No. 65/2003, amended, SG No. 41/2007) The Minister of Regional Development and Public Works shall issue an ordinance establishing the rules and standards for arrangement of physical-infrastructure lines and facilities (including the lines and facilities for electronic communications networks).Article 71. (Amended, SG No. 65/2003) The municipality mayor or an official authorized thereby shall ensure the necessary coordination upon the laying and construction of the individual underground street networks and facilities, and shall coordinate underground street construction with above-ground street construction.Article 72. (1) (Amended, SG No. 65/2003) Any work involving the breaking of street or pavement surfacing or the digging up of interior courtyard spaces shall be performed on the basis of a building permit. The contracting authority shall notify the competent municipal administration of the commencement of any such work after clearance with the traffic safety authorities.(2) (Amended, SG No. 65/2003) In the event of any malfunction of the physical-infrastructure underground networks or facilities requiring emergency repair, the contracting authority or utility company concerned may commence the works forthwith, notifying the competent municipal administration of this.Article 73. (1) (Previous Article 73, amended and supplemented, SG No. 65/2003; amended, SG No. 107/2003) Where, in connection with construction, it shall be necessary to relocate or restructure any constructed underground or overhead street networks or facilities, the relevant works shall be performed by the contracting authority of the new construction for the account thereof upon approval of the requisite designs, cleared with the utility companies whereof the networks or facilities are affected, and upon the issuance of a building permit. Should the detailed plans and the specific schemes thereto project relocation of any lines and facilities, the costs of the new construction shall be for the account of the contracting authority.(2) (New, SG No. 65/2003) Should street regulation be not applied, where necessary, construction of new or redevelopment of existing lines for the spatial-development area concerned, with the exception of transmission lines, shall be permissible as temporary supply according to the status quo of the ground by a notarized declaration of the contracting authority (or of the utility company concerned) pledging voluntary relocation for the account thereof upon future realization of the detailed plan. The provisions of Article 192 herein shall apply in such cases.Article 74. (1) (Amended, SG No. 65/2003) The developer of physical-infrastructure street networks or facilities shall be under an obligation:1. prior to the commencement of construction, to take all measures as shall be necessary to ensure safety, by placing barricades and crossings, warning signs, traffic detour directions and other such;2. to take all measures as shall be necessary to prevent any damage to, or displacement of, pre-existing underground or overhead networks or facilities, survey monuments, greenspaces, ornamental trees and other such;3. (supplemented, SG No. 65/2003) to notify the municipal administration of any overhead or underground networks or facilities, unindicated on the relevant selective maps and registers, as have been uncovered during the course of execution of the work; such networks or facilities shall be covered by backfill only after being surveyed according to the established procedure;4. (amended, SG No. 65/2003) to give immediate notice to the municipal administration and the nearest museum of history upon uncovering any archaeological finds;5. (amended, SG No. 65/2003, SG No. 82/2006) to notify immediately the fire safety and protection of population authorities and the road traffic authorities regarding the commencement and the time limit for construction along the relevant streets obstructed by earth work;6. (amended, SG No.82/2006) to give immediate notice to the competent services and utility companies of any possible damage to networks or facilities resulting from the work and, where water mains, heating mains or gas mains have been damaged, to also give immediate notice to the hygiene and epidemiological authorities and to the fire and emergency safety authorities;7. (supplemented, SG No. 65/2003) to give at least three days' advance notice to the (competent) municipal administration, as well as to the services and utility companies stewarding and operating the networks and facilities, of a forthcoming backfilling of any newly constructed or remodelled underground networks or facilities. Any such backfilling shall be permitted according to Paragraph (2);8. to perform, for the account thereof, the recovery works as shall be necessary within such time limits as shall be set by the (competent) municipal administration;9. to eliminate any damage caused, as ascertained by the municipal administration and as recorded in a memorandum of ascertainment, within such time limits as shall be set by the (competent) municipal administration.(2) The municipal administration shall permit the backfilling of any networks or facilities after satisfying itself that the building-development line as marked and the other conditions and requirements as to the execution of construction have been complied with, and that the networks or facilities have been surveyed and plotted on the appropriate selective maps and registers referred to in Article 115 (4) herein. A memorandum shall be drawn up on the results of any such verification.(3) (Amended, SG No. 65/2003) Upon completion of the construction work, executive documents shall be prepared and certified according to the procedure established by Article 175 herein. The contracting authority shall forthwith transmit a copy of the said documents to the municipality and a copy to each of the utility companies concerned.Section IIIRoads, Streets and Transport Networks and FacilitiesArticle 75. (1) (Amended, SG No. 65/2003) The transport physical-infrastructure elements shall be constructed on the basis of the projections of the specific spatial-development schemes, master plans and detailed plans, and contingent on the spatial structure.(2) (New, SG No. 65/2003) The projects referred to in Paragraph (1) shall be constructed according to the standard procedure established by this Act.(3) (Renumbered from Paragraph (2) and amended, SG No. 65/2003) The transport physical infrastructure shall ensure the best possible conditions for convenient, safe and cost-efficient carriage of passengers and goods, and for accessibility to persons with disabilities, with due consideration for environmental protection.(4) (New, SG No. 65/2003, amended, SG No. 88/2005) The Minister of Regional Development and Public Works shall issue ordinances establishing standards for planning and designing of the transport physical-infrastructure elements. The standards for planning and designing of the railroad infrastructure shall be established by an ordinance of the Minister of Regional Development and Public Works and the Minister of Transport.Article 76. (1) (Amended, SG No. 65/2003) Highways and first and second-class roads of the national road network may not be designed and constructed to pass through nucleated-settlement areas save as an exception where the following conditions shall simultaneously be fulfilled:1. exceedingly heavy ground and other specific conditions;2. proven feasibility;3. compatibility with the spatial-development plans of the nucleated settlement concerned;4. favourable environmental impact assessment decision.(2) (Amended, SG No. 65/2003) Where roads of the national road network are designed and constructed to pass through nucleated settlement areas, the said roads shall be dimensioned as elements of the primary street network, observing the requirements for protection of the urban environment against harmful impacts.Article 77. (1) (Previous Article 77, SG No. 65/2003) The street network in nucleated and dispersed settlements shall be classified in conformity with the functional intended purpose thereof as follows:1. primary street network: first-class, urban freeways; second class, urban highways; third-class, arterial streets; fourth class, major streets.2. secondary street network: fifth-class, collector streets; sixth- class, access streets.(2) (New, SG No. 65/2003) The primary street network shall be determined by a master plan or, should there be no such plan, by a detailed plan. The class of the primary and secondary street network shall be determined by the detailed plan.Article 78. Railroad stations, maritime and river ports and airports shall be constructed in conformity with the projections of the relevant spatial-development plans and shall mandatorily be connected to the primary street network, to the mass transit lines and, accordingly, to the railroad and road network.Article 79. The spatial-development plans must provide for public parking areas, conditions for pedestrian traffic by means of construction of pavements, pedestrian paths, arcades, streets and precincts, as well as for bicycle traffic by means of bicycle paths, laid out whether self-contained or as part of the cross section of the street.Article 80. (1) (New, SG No. 65/2003) The width of access streets in nucleated settlements shall be determined by the detailed plan depending on the need to construct infrastructure guaranteeing the normal functioning of the spatial-development area.(2) (Renumbered from Paragraph (1) and supplemented, SG No. 65/2003) In respect of small nucleated settlements and country house zones, the width of access streets between record lines, where projected without pavements, shall be a minimum of 6 metres in nucleated settlements and resorts, and a minimum of 5 meters in country-house zones. In such cases, the minimum width of the roadway shall be 4. 5 metres and 4 metres, respectively.(3) (New, SG No. 65/2003) Streets without pavements shall be impermissible in nucleated settlements of population exceeding 30,000 residents.(4) (Renumbered from Paragraph (2), SG No. 65/2003) The width of pedestrian walks in nucleated settlements, resorts and country house zones shall be a minimum of 2. 25 metres.(5) (Renumbered from Paragraph (3), SG No. 65/2003) The width of pavements in nucleated settlements, resorts and country-house zones shall be:1. a minimum of 1.5 metres, applicable to pavements proper;2. a minimum of 0.75 metres, applicable to reserve strips.(6) (Renumbered from Paragraph (4) and amended, SG No. 65/2003, amended and supplemented, SG No. 61/2007) The provisions of Paragraphs (2), (3), (4) and (5) shall not apply in any nucleated settlements or parts thereof of historic, archaeological, ethnographic or architectural significance, or in any nucleated settlements or parts thereof constructed on exceedingly heavy ground or in other specific conditions or assigned for development with social housing.Article 81. (1) Cul-de-sac streets providing access to a limited number of regulated lots must have a minimum width of 3. 5 metres, and where a cul-de-sac street provides access to more than four regulated lots in an urban settlement, the minimum width must be 6 metres. Cul-de-sac streets longer than 100 metres shall have a turnaround at the end thereof.(2) (Supplemented, SG No. 61/2007) The provisions of Paragraph (1) shall not apply to any streets in nucleated settlements or parts thereof of historic, archaeological, ethnographic or architectural significance, or to any streets in nucleated settlements or parts thereof constructed on exceedingly heavy ground or in other specific conditions or assigned for development with social housing.(3) Any regulated lot with an egress to a cul-de-sac street may have a frontage upon the said street of a size not smaller than the width of the said street.(4) (Repealed, SG No. 65/2003).Article 82. (1) (Supplemented, SG No. 65/2003) Tunnels and multi-level transport facilities shall be designed and constructed in nucleated settlements in conformity with the communication and transport requirements according to the detailed plan.(2) (Amended, SG No. 65/2003) Rail transport lines, tunnels and other facilities below the surface of streets, squares and block spaces in nucleated settlements shall be designed in a manner ensuring to the greatest extent the preservation of pre-existing buildings and facilities, as well as the existing underground networks and facilities.(3) (Amended, SG No. 65/2003) Where existing underground networks or facilities have to be disturbed upon the building of lines or tunnels, the said networks or facilities shall be redeveloped according to approved designs for the relocation thereof by the contracting authority for the account thereof.(4) (Repealed, SG No. 65/2003).Section IVWater-Supply and Sewer Networks and FacilitiesArticle 83. (1) (Supplemented, SG No. 65/2003) Water-conduit and sewer networks and facilities shall be constructed on the basis of approved designs in accordance with the (relevant) master plans and detailed plans and the relevant specific schemes thereto attached and with the grading plans.(2) (New, SG No. 65/2003) Water-conduit and sewer networks in nucleated settlements shall be designed as street networks and in compliance with the provisions of Section II of Chapter Four herein.(3) (Renumbered from Paragraph (2), SG No. 65/2003) As an exception, in nucleated and dispersed settlements without grading plans, it shall be permissible to construct water mains and partial sewerage in conformity with the pre-existing terrain configuration of the streets and squares and observing the requirements for future levelling.Article 84. (1) (Previous Article 84, SG No. 65/2003) The owner of any public water-supply and sewer networks and facilities shall be under an obligation to connect thereto the water-supply and waste-water plumbing systems of all corporeal immovables within the territorial scope of the said networks and facilities.(2) (New, SG No. 65/2003) Corporeal immovables and water consumers shall be connected to the water-conduit and sewer networks in compliance with the provisions of this Act and upon conclusion of a written coupling contract between the consumer and the utility company.(3) (New, SG No. 65/2003) The terms and conditions, the technical requirements and the procedure for connecting corporeal immovables and consumers to water-supply and sewer networks and facilities and for conclusion of the coupling contracts shall be established by an ordinance of the Minister of Regional Development and Public Works.Article 85. (Amended, SG No. 65/2006) The water resources within the territory of a municipality may be used for satisfaction of drinking and household needs of other municipalities as well, provided that the quantities of drinking and household water as shall be necessary for the needs of the municipality are available and the environment preservation goals, as established by the Water Act, are not compromised.Article 86. (1) To ensure protection from pollution and other harmful impacts of water intended for drinking and household water supply and of mineral water used for therapeutic, prophylactic, drinking and hygienic purposes, spatial-development plans shall project sanitary protected areas around water sources and facilities as designated according to the procedure established by the Water Act. The planning mode of such sanitary protected areas and the activities prohibited therein shall be regulated by an ordinance of the Minster of Regional Development and Public Works and the Minister of Environment and Water.(2) No use permit shall be granted for a constructed water supply project unless the sanitary protected areas thereof have been approved and marked out on site.Article 87. (1) (Supplemented, SG No. 65/2003, amended, SG No. 65/2006) In nucleated and dispersed settlements with low-rise development or parts thereof without sewerage, household waste water shall be discharged into self-contained water disposal and treatment facilities (water-proof scrape pits) satisfying the applicable technical requirements and requirements of sanitation and hygiene.(2) Where sewerage is lacking, or where owing to the gradient the existing sewerage is incapable of draining surface water, the owners shall be under an obligation to ensure the free flow of such water through the lots up to the relevant street facilities (surface inlet drains, gutters etc.).(3) Absent a technically feasible alternative, provided that such absence is evidenced inter alia by a grading design, it shall be permissible for the waste-water plumbing of buildings in regulated lots to be discharged into the street sewerage passing through adjoining lots without impeding the possibility to perform permissible building development in the said lots. In such cases, the section of such sewer passing through such lots from the building up to the street sewerage shall be treated as yard network (building branch).(4) (Amended, SG No. 65/2003) For any damage resulting from construction and use of networks referred to in Paragraph (3), the title holders shall be paid compensation by the contracting authority according to the procedure established by Article 210 herein.Article 88. Pumping stations for drinking water or waste water, as well as customer's water systems for residential or public buildings, may be installed in buildings complying with the permissible limit values for noise and vibration.Section VPower-Supply Networks and FacilitiesArticle 89. (Amended, SG No. 65/2003) (1) Power-supply networks and facilities shall be off-site (street and yard) and on-site (building).(2) Construction of off-site power-supply networks shall be performed according to Article 74 herein and under an approved construction file.Article 90. (Amended, SG No. 65/2003) (1) Public heat-supply and gas- supply networks and facilities and the branches thereof shall be constructed outside of buildings according to the standard procedure established by this Act.(2) Within developed blocks it shall be permissible, as an exception, for branches from the public heat-supply networks to pass through basement rooms of buildings, absent a technically feasible alternative. The compensation for this shall be determined according to the procedure established by Article 210 herein.(3) On-site heating systems shall be connected to off-site heating mains by means of subscriber substations. The equipment of subscriber substations shall be part of the public networks and facilities, and shall be installed, maintained and repaired according to the procedure established by Article 64 herein.(4) Depending on the capacity and siting thereof, the subscriber substation in a building may serve other buildings as well according to the procedure established by the Energy and Energy Efficiency Act.(5) Subscriber substations shall be installed inside or outside the buildings on premises suited for the purpose, with effective noise and vibration control according to the established standards.Article 91. (1) Transformer stations shall be constructed in open spaces or in buildings which are not intended for human occupancy. In urban settlements, such stations may furthermore be constructed in the undeveloped part of a regulated lot owned by natural or legal persons, with the consent of the said persons and complying with the requirements regarding accessory development.(2) (Supplemented, SG No. 65/2003) In developed blocks, absent a technically feasible alternative, transformer stations may furthermore be constructed in residential buildings with the consent of the owners bearing notarized signatures and with effective noise and vibration control and protection against electric and magnetic fields according to the established standards.(3) Depending on the capacity and siting thereof, a transformer station may serve multiple buildings.Article 92. (1) Outside artificial lighting of streets, squares, parks, gardens and other corporeal immovables constituting public municipal property shall mandatorily be provided by the municipality for the purpose of creating conditions for safe night-time traffic as well as of an appropriate night ambience of the nucleated settlements.(2) The outside artificial lighting of individual corporeal immovables other than such referred to in Paragraph (1) shall be implemented by, and for the account of, the property owners and shall require authorization by the Chief Architect of the municipality.(3) It shall be prohibited to place transformer devices for outside artificial lighting on residential buildings.Section VIElectronic Communications Networks and Facilities(Heading amended, SG No. 41/2001, SG No. 41/2007) Article 93. (1) (Previous Article 93 and supplemented, SG No. 65/2003, amended SG No. 41/2007) Underground electronic communications networks and facilities shall be constructed and placed in regulated spatial-development areas simultaneously with the other networks and facilities (water mains, sewerage, electricity, heat supply, gas-supply networks and other such) prior to the placing of curbs, pavements, and street surfacing.(2) (New, SG No. 65/2003, amended SG No. 41/2007) Electronic communications networks shall be constructed in unregulated spatial-development areas on the basis of a plan referred to in Item 5 of Article 110 (1) herein.(3) (New, SG No. 65/2003, amended SG No. 41/2007) If there is a detailed plan for a spatial-development area wherein no street work is laid, the electronic communications network shall be constructed in accordance with the street regulation projections and with the provisions of Article 210 herein for the account of the owner of the said network.Article 94. (Amended, SG No. 41/2007) The designs of buildings shall project electronic communications systems and facilities which shall be constructed simultaneously with the building and the other on-site wiring and plumbing systems.Section VIIMonitoring and Geohazards Protection of Landslide-Hazard Areas(Amended, SG No. 65/2003)Article 95. (1) The activities of registration and monitoring of landslide-hazard areas within the territory of the Republic of Bulgaria as action taken to prevent accidents and damage shall be implemented by the Ministry of Regional Development and Public Works.(2) The Ministry of Regional Development and Public Works shall keep a public register of landslide-hazard areas.(3) The monitoring of landslide-hazard areas shall be performed through observation, analysis and evaluation of the results of detailed groundwater and hydrological investigation to determine the essential geotechnical characteristics of landslides and through geodetic survey and observations of constructed survey monument grids for landslide movements in space and time.(4) The circumstances and particulars recordable in the register referred to in Paragraph (2), as well as the terms, procedure and manner of performing the activities referred to in Paragraph (3), shall be established by an ordinance of the Minister of Regional Development and Public Works.Article 96. (1) The measures for containment of landslides, erosion and abrasion processes and for prevention of accidents and damage shall be implemented by the Ministry of Regional Development and Public Works.(2) For the purpose of landslide containment, including consolidation of the River Danube stream-banks and the Black Sea shoreline, there shall be implemented the requisite geohazards control operations and geohazards protection projects on the basis of specific schemes, master plans and detailed plans, and approved development-project designs under the terms and according to the procedure established by this Act.(3) The technical requirements to the designing of geotechnical construction works, buildings and facilities in landslide-hazard areas shall be established by an ordinance of the Minister of Regional Development and Public Works.(4) The coordination between the individual government departments in connection with the geohazards protection of nucleated settlements, resort complexes, the River Danube stream banks and the Black Sea shoreline, as well as the engineering supervision of work to remove and eliminate geologic hazards, shall be implemented by the Ministry of Regional Development and Public Works.(5) Performance of building works of any kind in landslide hazard areas shall require advance permission by the Minister of Regional Development and Public Works, issued within two months after receipt of a request.Section VIIIWaste-Treatment Installations and FacilitiesArticle 97. (1) The location of sites for construction of waste treatment installations and facilities shall be determined by master plans and detailed plans.(2) The distances from the sites for arrangement of waste treatment installations and facilities to nucleated settlements shall be determined depending on the (treatment) technology adopted and the established sanitary protected areas.(3) The sites referred to in Paragraph (1) shall be selected, constructed and operated on the basis of designs approved according to the standard procedure and according to requirements established by ordinances of the Minister of Regional Development and Public Works, the Minister of Environment and Water, and the Minister of Health.Article 98. (1) The ground for, and construction of, household waste and construction and demolition-waste treatment installations and facilities shall be provided by the municipality concerned.(2) Two and more municipalities may construct shared household waste and construction and demolition-waste treatment installations and facilities.(3) The provision of ground, the construction of installations and facilities, and the treatment of industrial waste, including hazardous waste, shall be performed under the terms and according to the procedure established by the Mitigation of the Harmful Environmental Impact of Waste Act.Section IXGas Supply(New, SG No. 65/2003)Article 98a. Gas supply of urbanized areas shall be implemented through construction of a gas-distribution network according to designs approved according to the standard procedures in accordance with the projections of the master plans and detailed plans and the specific diagrammatic layouts attached thereto. If there are no master plans and detailed plans for small nucleated settlements and dispersed settlements, the gas-supply system installation designs shall be prepared on the basis of a specific diagrammatic layout approved according to the procedure established by Article 128 herein.Article 98b. (1) The street gas-distribution networks, the elements thereof and the adjoining facilities shall be constructed by and for the account of the legal person which has obtained authorization for construction of such energy facilities according to the procedure established by the Energy and Energy Efficiency Act.(2) Gas-distribution networks and the elements thereof shall beoperated, maintained and repaired by and for the account of the gas- distribution enterprises (companies) in the nucleated settlements.(3) The gas-supply piping and fittings in buildings shall be constructed, maintained and repaired for the account of the owners of the buildings.PART TWOSPATIAL-DEVELOPMENT PLANNING. DEVELOPMENT-PROJECT DESIGNING ANDCONSTRUCTION AUTHORIZATIONChapter FiveSPATIAL-DEVELOPMENT SCHEMESArticle 99. (1) Spatial-development schemes shall provide for planning of spatial-development areas consistent with the socio economic development, with guaranteed environmental protection.(2) Spatial-development schemes may be elaborated for the territory of the entire country, of one or several administrative regions, or of a group of adjoining municipalities.(3) According to the contents thereof, there can be integrated spatial-development schemes, where solving general planning problems of the area and the interdependence of the said problems, and specific spatial-development schemes, where solving specific spatial-development problems of the area or the spacing of economic and other socially significant projects and infrastructures of national, functional-regional, administrative regional, and inter-municipality importance.Article 100. Planning of the national territory shall be implemented on the basis of a National Integrated Spatial Development Scheme. The said Scheme shall specify the means to attain the objectives and tasks of spatial development on a national level, contingent on an overall sustainable socio economic development.Article 101. (1) (New, SG No. 65/2003) Functional-region spatial-development schemes shall conform to the projections of the National Spatial-Development Scheme.(2) (Previous Article 101, SG No. 65/2003) Functional region spatial-development schemes shall determine:1. (amended, SG No. 65/2003) the requirements as to spatial development in accordance with the National Spatial-Development Scheme and the regional development strategies;2. the general spatial structure of the functional region, the general intended purpose of the spatial-development areas referred to in Article 7 herein, and the general requirements as to the use, protection and planning of the said areas;3. the sitting and future development of the physical infrastructure projects, networks and facilities of national and regional importance;4. the development of the network of nucleated settlements in the functional region and the centres of national and functional regional importance;5. the measures to protect and ameliorate the environment, to prevent or mitigate harmful environmental and public-health impacts.(3) (New, SG No. 65/2003) Depending on the specific tasks of the functional-region spatial-development scheme, as set in the design terms of reference, specific functional-region spatial development schemes can be prepared under Items 3, 4 and 5 of Paragraph (2).Article 102. (1) Spatial-development schemes shall have no direct development-project applicability.(2) The projections of the approved spatial-development schemes regarding the spatial structure, the physical infrastructure of national and regional importance, environmental protection and protection of cultural and historical heritage sites, as well as regarding the use of water and forest resources, shall be mandatory in respect of succeeding spatial-development plans.(3) The projections of the approved spatial-development schemes shall be grounds for the regional and municipal administration to apply for budget grants for spatial-development activities.Chapter SixSPATIAL-DEVELOPMENT PLANSSection IGeneral ProvisionsArticle 103. (1) Spatial-development plans shall be of the following types:1. master plans;2. detailed plans.(2) A master plan shall determine the prevailing intended purpose and manner of planning of the separate structural parts of the areas comprehended into the plan.(3) A detailed plan shall determine the specific intended purpose and manner of planning of the separate lots comprehended into the plan.(4) Each spatial-development plan shall conform to the projections of the superior spatial-development schemes and plans, if any, and shall represent a more complete, more detailed and specific elaboration in respect thereof.(5) (New, SG No. 65/2003) A detailed plan of a nucleated settlement and of the land-use area thereof may be created even where there is no master plan of the said settlement. In the cases where the regulation and building-development mode plans comprehend the entire nucleated settlement, the said plans shall concurrently perform the role of a master plan of the said settlement.(6) (New, SG No. 65/2003) Subsurface and hydrological investigation shall be conducted upon preparation of master plans and detailed plans in respect of the overall stability of the spatial-development area and the buildability thereof.Section IIMaster PlansArticle 104. (1) (Amended, SG No. 65/2003) Master plans shall provide a basis for the overall planning of the spatial development areas of municipalities, of parts thereof or of individual nucleated settlements with the land-use areas thereof. The projections of the master plans, determining the general structure and prevailing intended purpose of the spatial development area, the type and intended purpose of the physical infrastructure and the protection of the environment and the cultural and historical heritage sites, shall be mandatory in preparation of the detailed plans.(2) (Supplemented, SG No. 65/2003) The rules and standard specifications for application of any master plan, which shall be prepared in accordance with the ordinance referred to in Article 13 (1) herein and shall be approved simultaneously with the plan, shall constitute an integral part of the said plan.(3) A master plan shall have no direct applicability to construction authorization.Article 105. Master plans shall be elaborated for the spatial development areas of:1. a particular municipality, comprehending all nucleated settlements in the said municipality and the land-use areas of the said settlements;2. a particular part of a municipality, comprehending a group of adjoining land-use areas with the nucleated settlements thereof;3. an urban nucleated settlement, together with the land-use area thereof; the spatial-development area which is subject to the master plan need not be coincident with the land-use area of the urban settlement;4. a dispersed settlement of national importance according to the Territorial Administration of the Republic of Bulgaria Act. Article 106. The master plan of a municipality or of a part thereof shall determine:1. (supplemented, SG No. 65/2004) the general spatial structure of the spatial-development area subject to the plan, and the prevailing intended purpose of the constituent and structural parts of the said area: location and boundaries of the nucleated settlement and dispersed-settlement areas; the agricultural areas; the forest areas; the nature-conservation areas; the cultural and historical conservation areas, the disturbed areas for rehabilitation, and the areas of special, other, or mixed intended purpose;2. the general planning mode of each of the spatial-development areas covered under Item 1, with the requisite rules and standard specifications;3. the sitting of the physical-infrastructure networks and facilities within the territory of the municipality, and the connections of the said networks and facilities to the spatial development areas of the surrounding municipalities and to the infrastructure networks, facilities and projects of national importance;4. the spatial-development areas constituting public state and public municipal property, and the planning mode thereof;5. the spatial-development areas susceptible to predictable natural hazards and the requisite precautions and a manner of planning and protection;6. the spatial-development areas for active application of landscaping and aesthetically effective arrangement.Article 107. The master plan of an urban settlement with the land-use area thereof or of a dispersed settlement of national importance shall determine:1. the general spatial structure of the spatial-development area subject to the plan: residential areas; manufacturing and storage areas; park and garden areas; sports and entertainment areas; public-services areas; areas containing cultural and historical heritage sites; areas for construction of resort and tourist facilities and country houses; areas for physical infrastructure networks and facilities; agricultural areas; forest areas; nature-conservation areas; disturbed areas for rehabilitation; areas of special, other or mixed intended purpose.2. the general planning mode of each of the spatial-development areas covered under Item 1, with the requisite rules and standard specifications;3. the spatial-development areas constituting public state and public municipal property, and the planning mode thereof;4. the requirements as to the aesthetic composition of the area;5. (new, SG No. 65/2003, amended, SG No. 61/2007) the requirements as to planning of an environment accessible to the entire community, including persons with disabilities.Section IIIDetailed PlansArticle 108. (1) Detailed plans shall particularize the planning and building development of nucleated-settlement areas and of the land-use areas of nucleated settlements, as well as of the dispersed settlements. The projections of detailed plans shall be mandatory in development-project designing.(2) (Supplemented, SG No. 65/2003, amended, SG No. 41/2007, SG No. 61/2007) A detailed plan shall be accompanied by grading plans, diagram maps of the communication and transport network, of water supply, sewerage, electrification, by landscaping and spatial renewal plans, subsurface investigation, central-heating and hot-water supply, telecommunications and other such, which shall be approved simultaneously with the detailed plan as an integral part thereof. Regulation plans shall determine the cross sections of the streets with projected amenity planting and the servitude strips for physical-infrastructure networks and facilities, if beyond the scope of street regulation plans. Diagrammatic layouts of physical-infrastructure networks and facilities shall determine the type and the technical dimensions of the said networks and facilities within a scope sufficient for the issuance of a design permit under Article 140 herein.(3) Where detailed plans are created for a single block or a group of blocks, the said plans shall enclose a grading design. Should any such design project alterations of the street network, the said design shall enclose a layout of the street network, cross sections of the streets, as well as layouts of the physical infrastructure networks and facilities, if the new projections affect existing physical-infrastructure underground networks and facilities of the nucleated settlement or parts of the said networks and facilities.(4) (Amended and supplemented, SG No. 65/2003) The rules and standard specifications for application of the detailed plans, which shall be prepared in accordance with the ordinance referred to in Article 13 (1) herein and shall be approved simultaneously with the detailed plans, shall constitute an integral part of any such plan with the exception of a integrated development initiative design referred to in Article 150 herein.(5) The projections of the plan must be cost-effectively feasible and provide an opportunity for appropriate planning of the regulated lots and of the blocks.(6) Lot owners shall be indemnified for any detriment caused by the application of the grading plan. Article 210 herein shall apply in such a case.Article 109. (1) Detailed plans may be elaborated for the areas of:1. a nucleated settlement with the land-use area thereof, as well as a structural part of a nucleated settlement with the immediately adjoining part of the land-use area;2. a nucleated or dispersed settlement or a part thereof comprehending part of a block, one or several blocks;3. a land-use area or a part of a land-use area.(2) A detailed plan may furthermore be elaborated for a single lot or for a group of lots.Article 110. (1) Detailed plans may be of the following types:1. regulation and building-development plan, abbreviated to RBDP (plan for regulation of streets and lots and for building development mode);2. regulation plan, abbreviated to RP (plan for regulation of streets and lots without building-development mode); one subtype of a regulation plan shall be the street-regulation plan, abbreviated to SRP (plan limited to regulation of streets and of lots for public-property projects);3. (amended, SG No. 65/2003) building-development plan, abbreviated to BDP;4. working spatial-development plan, abbreviated to WSDP (plan for building development and skyline arrangement);5. (new, SG No. 65/2003) parcelling plans for the physical infrastructure elements outside urbanized-area boundaries.(2) (Amended, SG No. 65/2003) One of the plans covered under Paragraph (1) may be prepared and applied according to the spatial development objectives and tasks and depending on the specific need upon planning of a specific spatial-development area.(3) The detailed plans referred to in Item 2 of Paragraph (1) may furthermore designate planning zones and planning-mode areas, and building-development lines.(4) A plan for regulation and building-development mode shall be prepared and applied for redevelopment of residential complexes, of industrial, resort, vacation and other dispersed settlements.Article 111. Specific detailed plans may be elaborated for agricultural, forest and protected areas, for disturbed areas for rehabilitation, and for areas of special and other intended purposes, with the said plans solving specific spatial-development problems and comprehending structural parts of the municipality territory.Article 112. (1) A detailed plan referred to in Item 1 of Article 110 (1) herein shall determine: the spatial structure, the planning zones and planning-mode areas, and the specific intended purpose of each lot.(2) A detailed plan referred to in Item 1 of Article 110 (1) herein shall regulate:1. the lots intended for works constituting public property;2. the lots for building development and the lots without building development, with the mode thereof;3. the blocks and lots for predominantly residential development of maximum permissible building-development density and intensity, height and building-development manner, building development lines;4. the blocks and lots for manufacturing and storage, for agricultural production and animal husbandry, the planning mode thereof and the sanitary protected areas thereof;5. the blocks and lots for landscaping intended for a recreational, protective and land-reclamation purpose;6. the blocks and lots for sporting activities and entertainment activities and the planning mode thereof;7. the blocks and lots with public-services buildings;8. the blocks and lots of cultural and historic significance and the planning and protection mode thereof;9. (amended, SG No. 65/2003) the street network, and the driveways.10. the physical-infrastructure networks and facilities with the servitude strips thereof, as well as the projects involved in environmental protection;11. the blocks and lots of mixed, special, or other intended purpose.(3) (Repealed, SG No. 65/2003).(4) (Supplemented, SG No. 65/2003) The detailed plans shall furthermore create conditions for spatial development of the environment and the physical infrastructure with a view to accessibility to, and use by, persons with disabilities, confirming to the requirements of the ordinance referred to in Item 5 of Article 107 herein.Article 113. (1) A working spatial-development plan shall be drafted for a limited part of the spatial-development area (a separate regulated lot or a group of regulated lots) and shall be prepared on the basis of a detailed plan referred to in Items 1, 2 and 3 of Article 110 (1) herein or simultaneously therewith. The building-development character and manner as projected by the effective detailed plan may not be altered by a working spatial development plan.(2) (Amended, SG No. 65/2003) A working spatial-development plan shall be drafted at the request of the contracting authority for particularization of the effective detailed plan solely under the terms established by Article 36 of this Art or in the case of attached development of more than two regulated lots.(3) A working spatial-development plan may admit, inter alia, alterations of the regulated-lot boundaries in compliance with the terms established by Article 17 herein.(4) A working spatial-development plan shall determine precisely:1. the siting and apparent outline of the buildings, as well as the minimum separation between the buildings and between the buildings and the lot boundaries, in conformity with the building development density and intensity permissible for the relevant planned development zone;2. the requisite skylines, specifying: the maximum heights of buildings and the ridges thereof in absolute level marks; the number of stories; the shape and pitch of the roofs, and the architectural link between the buildings for the purposes of proper space arrangement.(5) (New, SG No. 65/2003) At the request of the contracting authority, a draft modification of a detailed plan may be prepared, communicated, approved and take effect simultaneously with the draft working spatial-development plan.Article 114. (1) (Previous Article 114, SG No. 65/2003) The specific siting of buildings and the building development manner of lots regulated by the plans covered under this Section shall be determined:1. by a working spatial-development plan, where preparation of such a plan shall be mandatory;2. (amended, SG No. 65/2003) by a design permit referred to in Article 140 herein, in the case of detached development and attached development on two adjoining regulated lots.(2) (New, SG No. 65/2003) The siting of physical-infrastructure networks and facilities shall be determined by the development project design. For more information visit www.solicitorbulgaria.com id: 303 Fri, 01 Aug 2008 01:53:49 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-spatial-development-act-part-1 http://web.solicitorbulgaria.com/index.php/bulgarian-spatial-development-act-part-1 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/SPATIAL_DEVELOPMENT_ACT1.JPG EUR http://web.solicitorbulgaria.com/index.php/bulgarian-spatial-development-act-part-1 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Chapter SevenCREATION, APPROVAL AND MODIFICATION OF SPATIAL-DEVELOPMENTSCHEMES AND PLANSSection IInformation and Technical Basis of Spatial-DevelopmentSchemes and PlansArticle 115. (1) Spatial-development schemes and plans shall be drafted using data derived from the topographic maps, the cadastre, the levelling plans, the selective maps and others, whether digital or graphic, as well as other data retrieved from the specialized information systems of central and local administrations and of corporations.(2) The data regarding the location, boundaries, sizes, durable intended purpose and manner of durable use of lots and buildings, the data regarding the international borders, the boundaries of the political units and territorial units and the boundaries of spatial-development areas comprehending properties of identical durable intended purpose, as well as the data regarding ownership and limited real rights, shall be retrieved from the cadastre and the property register.(3) The data regarding… For more information visit http://www.solicitorbulgaria.com id: 302 Chapter SevenCREATION, APPROVAL AND MODIFICATION OF SPATIAL-DEVELOPMENTSCHEMES AND PLANSSection IInformation and Technical Basis of Spatial-DevelopmentSchemes and PlansArticle 115. (1) Spatial-development schemes and plans shall be drafted using data derived from the topographic maps, the cadastre, the levelling plans, the selective maps and others, whether digital or graphic, as well as other data retrieved from the specialized information systems of central and local administrations and of corporations.(2) The data regarding the location, boundaries, sizes, durable intended purpose and manner of durable use of lots and buildings, the data regarding the international borders, the boundaries of the political units and territorial units and the boundaries of spatial-development areas comprehending properties of identical durable intended purpose, as well as the data regarding ownership and limited real rights, shall be retrieved from the cadastre and the property register.(3) The data regarding the overhead networks and facilities of the physical infrastructure, regarding the transport facilities (railroads, roads, bridges, fords, maritime and river ports and other such), regarding the hydrography, regarding the cover crop and the soil mantle and regarding the terrain shall be retrieved from the topographic and selective maps.(4) The data regarding the subterranean buildings, regarding the physical-infrastructure underground networks and facilities, regarding the protected natural sites, regarding the cultural and historical heritage sites, as well as other specific data regarding the spatial-development areas shall be handled using the selective maps, registers and information systems of central and local administrations and of corporations.(5) (Amended, SG No. 65/2003) At the request of the municipality mayor, of other government departments or of the interested parties, selective maps, registers and information systems with additional cadastral data referred to in Article 32 (1) of the Cadastre and Property Register Act may be created simultaneously with the creation of the cadastral map and the cadastral registers.(6) (New, SG No. 65/2003) The information covered under Paragraphs (1) to (5) shall mandatorily be provided to the competent state or municipal administration, charging solely the actual expenditures incurred for duplication of documents. Upon request, any such information shall be provided within seven days. Upon refusal or delay, administrative penalty liability shall be incurred according to this Act.Article 116. (1) The legal or natural persons, which or who implement building works affecting the contents of the cadastral plans, shall be obligated, upon completion of any such works, to provide forthwith the municipal administration with comprehensive and accurate data regarding the new construction or remodelling performed in the form of diagrams, plats, plans, drawings and documentary proofs of title. In the cases where the contents affected are of a cadastral plan which has been transmitted to the Geodesy, Cartography, and Cadastre Agency or of an approved cadastral map, the said data shall be provided to the Geodesy, Cartography, and Cadastre Agency.(2) (Amended, SG No. 65/2006) In connection with the preparation of selective maps of physical-infrastructure underground networks and facilities and of other subterranean construction works, the municipalities and the corporations which steward and use the said networks, facilities and projects shall be obligated to cooperate with the relevant makers of the selective maps, providing the said makers, when requested to do so, with comprehensive and accurate diagrams, plats, drawings and, where necessary, documentary proofs of title, as well as indicating and marking on the ground the exact location of the existing underground networks, facilities and construction works, including the ground-water extraction facilities.(3) A basic plan, containing the requisite data under this Section regarding the relevant spatial-development area, may be drafted as a technical basis of the spatial-development schemes and plans.Article 117. The Minister of Regional Development and Public Works, acting in consultation with the Minister of Environment and Water and with the Minister of Health, shall issue an ordinance establishing the scope and contents of spatial-development schemes and plans.Section IICreation, Approval and Modification of Spatial-Development SchemesArticle 118. (1) Preparation of spatial-development schemes shall be commissioned by the authorities competent to approve the spatial-development schemes, and preparation of the National Spatial-Development Scheme shall be commissioned by the Minister of Regional Development and Public Works with the assistance and participation of the central and local administrations.(2) Spatial-development schemes shall be prepared on national budget resources and on municipal resources.(3) (Amended, SG No. 65/2003, No. 37/2006) The investigation and designing of spatial-development schemes shall be commissioned according to a procedure established by the Public Procurement Act. Article 119. (1) Draft spatial-development schemes shall be prepared on the basis of terms of reference compiled by the contracting authority, specifying a rationale for the need to create the scheme, the territorial scope, the time limits and stages of preparation, as well as the basic requirements to the said scheme. Requisite information regarding the existing situation and development prospects of the relevant area shall be attached to the said terms of reference.(2) (Supplemented, SG No. 65/2003) The central and local administrations possessing any information as shall be necessary for preparation of the terms of reference shall be obligated to provide the said information in the required volume gratuitously to the contracting authority upon request within one month.(3) (New, SG No. 65/2003, amended, SG No. 61/2007) The terms of reference referred to in Paragraph (1) regarding protected cultural and historical heritage areas shall be cleared with the National Institute of Monuments of Culture under the terms and according to the procedure established by Article 125 (5) herein.(4) (New, SG No. 65/2003) Should any elements of the National Environmental Network be affected, the terms of reference referred to in Paragraph (1) shall be approved after clearance with the Ministry of Environment and Water, which shall present a written opinion within one month after the date of receipt.Article 120. Spatial-development schemes shall be prepared by technically qualified licensed persons according to Articles 229 and 230 herein.Article 121. (1) (Amended, SG No. 65/2004) Draft spatial development schemes shall be subject to public debate prior to the submission thereof to the expert boards on spatial development. The contracting authority of a spatial-development scheme shall announce the venue, date and time of any such debate in one national daily newspaper and it at least one local medium. The proceedings at any such debate shall be recorded in writing, and the said record shall be filed with the documentation for the Expert Board. In the cities subdivided into wards, public debates shall mandatorily be organized in all wards.(2) (Amended and supplemented, SG No. 65/2003, amended, SG No. 61/2007) Clearance of draft spatial-development schemes with the central and local administrations concerned and, where necessary, with the specialized control authorities and the utility companies, shall be effected by the contracting authority and shall take the form of written opinions of the said administrations and authorities presented within one month after receipt of a request for clearance and thorough participation of designated representatives thereof in the meeting of the expert board on spatial development. Refusals of clearance must be reasoned. If no written opinion has been presented and a representative of the central or local administration concerned is absent from the meeting of the expert board, or if the minutes of proceedings at the meeting of the board are not signed within fourteen days after the meeting, clearance of the draft shall be presumed.(3) (Supplemented, SG No. 65/2003) The draft functional-region spatial-development schemes shall be cleared within one month with the municipal councils of the municipalities whereof the territories are affected by the said schemes.(4) (Amended, SG No. 65/2003) The draft functional-region spatial-development schemes comprehending the territory of a single administrative region, which have not been cleared by a municipal council, shall be submitted for consideration to the National Expert Board.(5) (Amended and supplemented, SG No. 65/2003) The draft spatial-development schemes comprehending the territory of a single administrative region shall be considered by the administrative-regional expert board, and all other schemes shall be considered by the National Expert Board within two months after submission to the relevant expert board.Article 122. (1) The Council of Ministers, acting on motion by the Minister of Regional Development and Public Works, shall approve the National Integrated Spatial-Development Scheme by a decision.(2) The Minister of Regional Development and Public Works shall approve by an order the specific spatial-development schemes and the functional- region spatial-development schemes which affect the territory of more than one administrative region, as well as the functional-region spatial-development schemes referred to in Article 121 (4) herein.(3) The Regional Governor may approve by an order the spatial development schemes which affect the territory of a single administrative region.(4) The acts covered under Paragraph (1) to (3) shall be promulgated in the State Gazette. The said acts shall be final and unappealable.Article 123. Any modifications and additions to approved spatial-development schemes shall be introduced under the terms and according to the procedure for the preparation and approval of the said schemes.Section IIICreation, Announcement and Approval of Spatial-Development PlansArticle 124. (1) (Supplemented, SG No. 65/2003) Preparation of master plans shall be commissioned by the municipality mayor in pursuance of a Municipal Council resolution, where the said plans are financed with municipal budget resources, or by the Minister of Regional Development and Public Works, in the cases of financing from the national budget.(2) (Supplemented, SG No. 65/2003) Preparation of detailed plans shall be commissioned by the municipality mayor, by the Regional Governor, or by the Minister of Regional Development and Public Works. Detailed plans may furthermore be commissioned by interested parties with the consent of the municipality mayor.(3) Preparation of detailed plans for part of a nucleated or dispersed settlement of a scope not extending beyond three blocks, as well as for lots outside nucleated-settlement and dispersed settlement limits, may furthermore be commissioned by interested parties after obtaining a permission from the municipality mayor.(4) (New, SG No. 65/2003, supplemented, SG No. 103/2005) Preparation of spatial-development plans which comprehend spatial-development areas extending beyond a single municipality or which project construction of projects of functional-regional importance shall be commissioned or authorized by the Regional Governor, and preparation of spatial-development plans which comprehend spatial-development areas extending beyond a single administrative region or which project construction of projects of national importance, as well as of settlement formations of national importance, shall be commissioned or authorized by the Minister of Regional Development and Public Works in consultation with the authorities covered under Paragraphs (1) to (3).(5) (New, SG No. 65/2003) Issuance of a permission by the authorities covered under Paragraphs (2) to (4) shall not be required for preparation of a working spatial-development plan for application of a detailed plan in any cases other than such referred to in Article 113 (3) herein.Article 125. (1) Draft spatial-development plans shall be prepared on the basis of terms of reference including, where necessary, a basic plan, as well as from additional information relating to the spatial development of the relevant spatial development area, provided by the municipalities, the Geodesy, Cartography, and Cadastre Agency, the central and local administrations and corporations which shall prepare selective maps, registers and information systems.(2) The terms of reference, compiled by the contracting authority, shall specify a rationale for the need to create the plan and shall contain requirements as to the territorial scope of the said plan, the time limits and stages of preparation. Requisite information regarding the existing situation and the spatial-development schemes and plans effective for the relevant spatial-development area shall be attached to the said terms of reference.(3) The basic plan, which shall constitute an integral part of the terms of reference, shall be prepared on the scale of the relevant spatial-development plan and shall contain essential cadastral and specialized data regarding the spatial-development area.(4) (Amended, SG No. 65/2003) A draft detailed plan shall cover the authorized construction works under a preceding detailed plan whereof the building permits have not lost legal effect. An alteration of projected building development, in respect whereof there was an effective building permit, shall be permissible solely with the consent of the contracting authority of the construction work.(5) (New, SG No. 65/2003, supplemented, SG No. 61/2007) The terms of reference referred to in Paragraph (1) regarding protected cultural and historical heritage areas shall be cleared with the National Institute of Monuments of Culture within one month after submission of the said terms of reference, and in the cases where stand-alone or cluster monuments of culture of world or national importance, the boundaries or protection zones thereof, within two months. Should no pronouncement be issued within the said time limit, clearance without objections shall be presumed.(6) (New, SG No. 65/2003, amended SG No. 77/2005) The terms of reference referred to in Paragraph (1) shall be submitted to the Ministry of Environment and Water or the respective regional environment an waters inspectorate for clearance and determination of the need of an environmental impact assessment according to the procedure established by the ordinance pursuant to Article 90 of the Environment Protection Act. The environment impact assessment shall be part of the detailed plan.Article 126. (1) (Amended, SG No. 43/2002 and SG No. 65/2003, No. 37/2006) The investigation and designing of spatial-development plans, as well as the selection of a spatial-development concept shall be awarded according to the procedure established by the Public Procurement Act. (2) (Repealed, SG No. 43/2002, new, SG No. 65/2003, repealed, SG No. 37/2006). (3) (Repealed, SG No. 65/2003).(4) Investigation and design works for drafting of spatial development plans shall proceed in the following phases:1. preliminary design;2. final design.(5) The contracting authority shall have discretion to award separately the preparation of terms of reference with a basic plan, as well as to merge the phases covered under Paragraph (4).(6) (New, SG No. 65/2003) Investigation and design works for physical-infrastructure elements outside urbanized-area boundaries shall proceed in the following phases:1. preliminary design, in which alternatives of the route shall be prepared;2. final design: a parcelling plan where under condemnation shall be effected.Article 127. (1) Master plans shall be subject to public debate according to the procedure established by Article 121 (1) herein prior to the submission thereof to the expert boards on spatial development.(2) Clearance of draft spatial-development schemes with the central and local administrations concerned and, where necessary, with the specialized control authorities and the utility companies, shall be effected according to the procedure established by Article 121 (2) herein.(3) Draft master plans shall be adopted by the municipal expert board.(4) (Repealed, SG No. 61/2007). (5) By resolution of the Municipal Council, draft master plans of the spatial-development areas referred to in Article 10 (2) herein and other draft master plans may furthermore be submitted for adoption by the administrative-regional expert board or by the National Expert Board.(6) The master plan shall be approved by the Municipal Council on a report by the municipality mayor. The resolution to approve the plan shall be promulgated in the State Gazette. Any such resolution shall be final and unappealable.(7) (Amended, SG No. 106/2006) The special rules and standard specifications for the planning and building development of the spatial- development area of the Sofia Municipality shall be established by a separate law.(8) (New, SG No. 106/2006) A new master plan of the Sofia Municipality, as well as modifications of the effective master plan, shall be adopted by the Council of Ministers according to the procedure established by this Act in conformity with the rules and standard specifications for planning and building development as determined by the Sofia Municipality Planning and Building Development Act. (9) (Renumbered from Paragraph (8), SG No. 106/2006) The municipality mayor shall submit for approval by the Municipal Council an annual report on the implementation of the master plan of the municipality or of the nucleated or dispersed settlement, as the case may be, and shall move for modification of the said plan, if any such modification shall be necessary.(10) (New, SG No. 65/2003, supplemented, SG No. 103/2005, renumbered from Paragraph (9), SG No. 106/2006) A master plan for dispersed settlements of national importance shall be approved by an order of the Minister of Regional Development and Public Works after consultation with the Municipal Council, and any such order shall be promulgated in the State Gazette. Any such order shall be final and unappealable.Article 128. (1) Any decision by the municipality mayor on preparation of a detailed plan of a scope extending beyond three blocks shall be announced by means of posting in a prominent location on the premises of the municipality and insertion in at least one local newspaper.(2) (Supplemented, SG No. 65/2003) Any prepared draft detailed plan shall be communicated by the municipality to interested parties by means of a notice promulgated in the State Gazette. The said notice shall be announced according to the procedure established by Paragraph (1). The same procedure shall be followed in communication of the draft detailed plans for physical infrastructure projects outside nucleated-settlement and dispersed settlement limits. At the discretion of the Chief Architect of the municipality, the draft detailed plan may be considered by the Municipal Council prior to the communication thereof with a view to bringing the said draft into conformity with regulatory requirements.(3) Where the draft detailed plan is for a part of a nucleated or dispersed settlement of a scope not extending beyond three blocks, as well as for lots outside nucleated-settlement and dispersed-settlement limits, the notice referred to in Paragraph (2) shall not be promulgated in the State Gazette but shall be communicated to the interested parties.(4) The procedures under Paragraphs (2) and (3) shall not be followed in respect of any working spatial-development plan which corresponds to an effective detailed plan.(5) Within one month after the notice referred to in Paragraph (2) and within fourteen days after the announcement referred to in Paragraph (3), the interested parties may lodge written objections, suggestions and requests regarding the draft detailed plan with the municipal administration.(6) Clearance of draft detailed plans with the central and local administrations concerned and, where necessary, with the specialized control authorities and the utility companies, shall be effected according to the procedure established by Article 121 (2) herein.(7) Within one month after expiration of the time limits established by Paragraph (5), the drafts together with any objections, suggestions and requests as may have been received shall be adopted by the municipal expert board.(8) (Repealed, SG No. 61/2007). (9) By resolution of the Municipal Council, draft detailed plans for the spatial-development areas referred to in Article 10 (2) herein and other draft detailed plans may furthermore be presented for adoption by the administrative-regional expert board or by the National Expert Board.(10) Where a draft detailed plan is returned for redrafting in whole or in part, the procedures provided for by statute shall be followed again in respect of the redrafted portion of the plan.(11) The natural and legal persons shall be entitled to receive information from the municipal administration on any rejected objections, suggestions and requests regarding the plan.(12) (New, SG No. 65/2003) Any draft detailed plan of a scope extending beyond a single municipality shall be considered by the administrative-regional expert board, and any draft detailed plan of a scope extending beyond a single administrative region and for dispersed settlements of national importance shall be considered by the National Expert Board, with communication being performed by the municipal administrations.(13) (New, SG No. 61/2007) Where interested parties, within the meaning given by Article 131 herein, are only the parties on whose initiative a detailed plan is created or modified, the draft of the plan or of the modification thereof shall be approved by the competent authority without being communicated according to the procedure established by Paragraphs (2) and (3).Article 129. (1) Any detailed plan, with the exception of a plan referred to in Article 128 (5) herein, shall be approved by Municipal Council resolution on a report by the municipality mayor within one month after adoption of the draft detailed plan by an expert board. Any such resolution shall be transmitted within seven days for promulgation in the State Gazette.(2) Any detailed plan referred to in Article 128 (3) herein shall be approved by an order of the municipality mayor within fourteen days after adoption of the draft detailed plan by the municipal expert board.(3) (New, SG No. 65/2003, supplemented, SG No. 103/2005) Any detailed plan of a scope extending beyond a single municipality shall be approved by an order of the Regional Governor, and any detailed plan of a scope extending beyond a single administrative region and for dispersed settlements of national importance, as well as any detailed plan providing the construction of a site of national importance, shall be approved by an order of the Minister of Regional Development and Public Works after consultation with the Municipal Council. Any such orders shall be transmitted within fourteen days for promulgation in the State Gazette.(4) (New, SG No. 65/2003) In respect of transport physical infrastructure projects, the parcelling plan shall be approved by an order of the Minister of Regional Development and Public Works within one month after adoption of the draft by the National Expert Board on Spatial Development.Article 130. (Amended, SG No. 61/2007) Any order to approve a detailed plan referred to in Article 128 (3) herein shall be communicated to the interested parties under the terms and according to the procedure established by the Administrative Procedure Code. Article 131. (Amended, SG No. 65/2003) (1) Interested parties for the purpose of clearance and approval of spatial-development schemes and plans and of the modification thereof shall be the owners and the holders of limited real rights according to the particulars of the property register, whose corporeal immovables are immediately affected by the projections of the detailed plan.(2) The following corporeal immovables shall be immediately affected by the projections of the detailed plan:1. properties subject to the plan itself;2. adjoining properties, where incorporated into an attached development;3. adjoining properties, including such fronting the opposite street line, where reduced separations are permissible;4. adjoining properties, where the intended purpose of the property subject to the plan is altered;5. properties falling within any hygiene protection areas designated by a statutory instrument, as required for the building development projected by the plan.Article 132. (1) (Previous Article 132, SG No. 65/2003) The resolutions, decisions and orders approving spatial development plans under this Act shall enter into effect:1. as from the date of approval, where unappealable;2. after expiration of the time limit for appeal, unless appealed;3. as from the date of affirmation by the competent court of law whereof the judgment is final.(2) (New, SG No. 65/2003) Where the resolution, decision or order approving a detailed plan has been appealed, the said resolution, decision or order shall enter into effect in respect of the part of the plan which is beyond the subject of the appeals.Article 133. (1) (Supplemented, SG No. 65/2003) In the process of preparation of detailed plans, development-project designing of new construction works on lots may be authorized on the basis of a detailed plan which shall be an excerpt from the draft detailed plan in preparation. Preparation of a plan excerpt shall be authorized by the municipality mayor, by the Regional Governor, or by the Minister of Regional Development and Public Works. The plan excerpt shall be cleared with the designer of the detailed plan.(2) Preparation of a plan excerpt referred to in Paragraph (1) shall be admitted after adoption of the preliminary design for a detailed plan by the competent expert board.(3) As an exception and with the consent of the authority appointing the expert board on spatial development which is competent to adopt the draft detailed plan, preparation of a plan excerpt may be admitted even before the adoption of the preliminary design referred to in Paragraph (2), where street regulation is not subject to material alterations and there is existing building development within the scope of the plan excerpt which predetermines the building-development manner designed.(4) Where a plan excerpt modifies an effective detailed plan, the said excerpt shall be prepared as a draft modification of the effective plan.(5) (Amended, SG No. 65/2003) Should a working spatial development plan be necessary, it shall be prepared and proceeded with together with the plan excerpt referred to in Paragraph (1).(6) (Amended, SG No. 65/2003) No plan excerpt shall be prepared for parts of the spatial-development area in respect of which the draft detailed plan in preparation does not alter the projections of an effective detailed plan. In such cases, a design permit shall mandatorily be issued in consultation with the designer of the new detailed plan.(7) (New, SG No. 106/2006) In the process of preparation of a new master plan or of a modification of an effective master plan, after consideration of the draft by the municipal expert board on spatial development, creation of new and modification of effective detailed plans may be admitted in the cases where:1. the draft of the new detailed plan conforms to the projections of the draft modification of or of the draft new master plan;2. the draft modification of the effective detailed plan conforms to the projections of the draft modification of or of the draft new master plan.(8) (New, SG No. 106/2006) In the cases referred to in Paragraph (7), preparation of a draft new detailed plan or of a draft modification of the detailed plan shall be admitted by an order of the municipality mayor.Section IVTerms and Procedure for Modification of Spatial-Development PlansArticle 134. (1) Any effective master plan may be modified where:1. material changes occur in the socio-economic and spatial development conditions where under the plan was drafted;2. (amended, SG No. 65/2003) new state or municipal needs arise of projects owned by the State, the municipalities, or the utility companies.3. (new, SG No. 106/2006) development-project initiatives emerge, which will be implemented on resources provided under international treaties or by the State budget, as well as by investors certified according to the procedure established by the Investment Promotion Act; 4. (new, SG No. 106/2006) the necessity to construct buildings, networks and facilities for specific needs of national defence and security lapses;5. (new, SG No. 106/2006) an apparent error of fact is ascertained, which is relevant to the projections of the plan;6. (new, SG No. 106/2006, repealed, SG No. 61/2007); 7. (new, SG No. 106/2006, repealed, SG No. 61/2007); 8. (new, SG No. 106/2006, repealed, SG No. 61/2007); (2) Any effective detailed plan may be modified on any of the grounds covered under Paragraph (1) as well as where:1. (amended, SG No. 65/2003, SG No. 61/2007) no condemnation procedure has been initiated within the time limit referred to in Article 208 herein;2. the cadastral plan or the cadastral map contains material deficiencies or errors which necessitate a modification of the effective detailed plan; in such a case, modification of the detailed plan shall be admitted after the cadastral plan is supplemented or corrected, as the case may be, by an order of the municipality mayor or after the cadastral map is supplemented or corrected, as the case may be, according to the procedure established by the Cadastre and Property Register Act; 3. the plan does not provide an opportunity for appropriate building development according to the effective spatial development rules and standard specifications as a result of established subsurface and groundwater conditions and for the purpose of conservation of valuable archaeological, historical and cultural finds;4. the plan contains an apparent error of fact, which affects the projections thereof;5. the plan has been approved despite material breaches of law; plans in respect of which there is an effective judgment of court or plans which have been applied may not be modified on this ground;6. all directly interested owners assent;7. there is a proposal of the court on cases of partition of regulated lots;8. (new, SG No. 65/2003, repealed, SG No. 61/2007). (3) (New, SG No. 65/2003) Where the modification of the detailed plan necessitates a modification of an effective master plan as well, simultaneous preparation, communication and approval of the two spatial-development plans shall be permissible.(4) (Renumbered from Paragraph (3) and amended, SG No. 65/2003, amended, SG No. 61/2007) Effective detailed plans may not be modified for the purpose of:1. legalization of illegally constructed construction works;2. alteration of the assigned use of grounds designated for greenspaces by the detailed plans, except in the cases referred to in Item 1 of Paragraph (2) and in Article 62a (2) to (5) herein.(5) (Renumbered from Paragraph (4), SG No. 65/2003) The detailed plans adopted by the National Expert Board may not be modified for a period of five years after the entry thereof into effect. Exceptions shall be permissible on the basis of a conclusion of the expert board of the municipality and with the consent of the Minister of Regional Development and Public Works.(6) (Renumbered from Paragraph (5) and amended, SG No. 65/2003) Where, upon application of effective detailed plans, solely the siting and configuration of projected buildings is altered, inter alia through extension and heightening of existing buildings, without alteration of the building-development manner and character and the rules and standard specifications for the relevant planning zone, the said detailed plans need not be modified. In such cases, the specific building development shall be determined by a design permit referred to in Article 140 herein.Article 135. (1) (Amended, SG No. 61/2007) The parties referred to in Article 131 herein may approach the competent municipality mayor with requests for modification of spatial-development plans by means of a written application, and in the cases referred to in Article 124 (4) herein, any such requests shall be addressed to the competent Regional Governor or to the Minister of Regional Development and Public Works, as the case may be.(2) (Amended, SG No. 61/2007) Where the request is for modification of a detailed plan, a sketch showing the proposed modification of the said plan shall be attached to the application.(3) (Amended, SG No. 61/2007) Within fourteen days after receipt of any such application, the competent authority referred to in Paragraph (1) shall admit or refuse to admit, by a reasoned prescription, the preparation of a draft modification of the plan.(4) (New, SG No. 65/2003, amended, SG No. 61/2007) The orders under Paragraph (3) shall be issued on the basis of an opinion of:1. the Chief Architect of the municipality: where the act is issued by the municipality mayor;2. the municipality mayor: where the act is issued by the Regional Governor;3. the municipality mayor and the Regional Governor: where the act is issued by the Minister of Regional Development and Public Works.(5) (Renumbered from Paragraph (4) and amended, SG No. 65/2003, SG No. 61/2007) Should any of the grounds covered under Article 134 (1) and (2) herein exist, the control authority referred to in Paragraph (1) may order, proprio motu, by a reasoned prescription, the preparation of a draft modification of an effective spatial-development plan.(6) (Renumbered from Paragraph (5) and amended, SG No. 65/2003, SG No. 61/2007) The reasoned prescriptions referred to in Paragraphs (3) and (5), whereby preparation of a draft modification of the plan, shall suspend the application of the effective spatial-development plans within the parts whereto the said prescriptions apply.Article 136. (1) (Amended and supplemented, SG No. 65/2003) The draft modifications of spatial-development plans under on the grounds referred to in Article 134 (1) and (2) herein shall be prepared, cleared, announced and enter into effect according to the procedure established by Section III of Chapter Seven herein.(2) (New, SG No. 65/2003, supplemented, SG No. 65/2004) The clearance requirements under Article 121 (2) herein shall not apply to draft modifications of spatial-development plans on the grounds referred to in Article 134 (2) herein of a scope not extending beyond three blocks, with the exception of the cases referred to in Items 5 and 6 of Article 134 (2) herein, where immovable cultural property is affected.(3) (Renumbered from Paragraph (2), SG No. 65/2003) The effect of the relevant preceding spatial-development plan shall be terminated as from the effective date of the new or modified spatial-development plan.(4) (Renumbered from Paragraph (3), SG No. 65/2003) Copies of any effective modifications of detailed plans, whereby lot boundaries are altered, shall be transmitted to the Geodesy, Cartography, and Cadastre Agency.Chapter EightDEVELOPMENT-PROJECT DESIGNING AND CONSTRUCTION AUTHORIZATIONSection IDevelopment-Project Investigation and DesigningArticle 137. (Amended, SG No. 43/2002 and SG No. 65/2003) (1) Depending on the characteristics, significance, complexity and operating risk, construction works shall be categorized as follows:1. Category One:(a) highways and first-class and second-class roads of the national road network, railroads, public-transport maritime or river ports and airports, subways and the facilities thereto appertaining;(b) (amended, SG No. 41/2007) physical-infrastructure transmission lines and the facilities thereto appertaining in the sphere of water supply, electricity supply, heat supply, gas supply, electronic communications and other operations;(c) construction works required for prevention and protection of the community against, and recovery of functional regions from, disasters and accidents;(d) construction works capable of causing a hazard of explosion, of a significant harmful environmental impact, or of the spread of toxic or noxious substances;(e) hydraulic engineering projects posing a risk of flooding, including dams of a capacity exceeding 50 million cubic metres or of a dam wall height exceeding 80 metres;(f) construction works whereat the working process is uninterruptible;(g) geohazards-control facilities and stream-bank- and shoreline-stabilization facilities;(h) electric power plants and heat power plants of a generating capacity exceeding 100 megawatts;(i) productive enterprises of a capacity exceeding 500 job positions and facilities thereto appertaining;(j) metal-industry and chemical-industry enterprises, coal mines, ore mines, quarries, including the liquidation thereof, as well as projects related to elimination of environmental damage on the site of impact;(k) other construction works of national importance, designated by an act of the Council of Ministers;(l) (new, SG No. 65/2004) immovable cultural property assigned "world importance" and "national importance" category;(m) (renumbered from Letter (l), SG No. 65/2004) redevelopments, remodellings, overhauls and alteration of the intended purpose of the construction works of this category;2. Category Two:(a) third-class roads of the national road network, first-class and second-class primary street network and the facilities thereto appertaining;(b) (amended, SG No. 41/2007) distribution lines, facilities and devices thereto appertaining in the sphere of water supply, electricity supply, heat supply, gas supply, electronic communications and other operations;(c) hydraulic engineering projects, including dams of a capacity exceeding 30 million cubic metres but not exceeding 50 million cubic metres or of a dam wall height exceeding 50 metres but not exceeding 80 metres;(d) waste-treatment installations and facilities;(e) public services buildings and facilities of a capacity exceeding 1,000 visitor places;(f) manufacturing buildings of a capacity exceeding 200 job positions but not exceeding 500 job positions and the facilities thereto appertaining;(g) electric power plants and heat power plants of a generating capacity exceeding 25 megawatts but not exceeding 100 megawatts;(h) (new, SG No. 65/2004) immovable cultural property assigned "local importance" category;(i) (renumbered from Letter (h), SG No. 65/2004) redevelopments, remodellings, overhauls and alteration of the intended purpose of the construction works of this category;3. Category Three:(a) municipal roads, third-class and fourth-class streets of the primary street network and the facilities thereto appertaining;(b) (amended, SG No. 41/2007) physical-infrastructure elements, hydraulic-engineering, irrigation and land-reclamation and other networks, facilities and systems not categorized above;(c) residential and mixed-purpose buildings of a high-rise development; public services buildings and facilities of a gross floor area exceeding 5,000 square metres or of a capacity exceeding 200 visitor places but not exceeding 1,000 visitor places;(d) manufacturing buildings of a capacity exceeding 100 job positions but not exceeding 200 job positions and the facilities thereto appertaining;(e) electric power plants and heat power plants of a generating capacity not exceeding 25 megawatts;(f) parks and gardens of a surface area exceeding 1 hectare;(g) redevelopments, remodellings, overhauls and alteration of the intended purpose of the construction works of this category;(h) (new, SG No. 41/2007) electronic communications networks and facilities, constructed of a trunk type at a national level;4. Category Four:(a) private roads, fifth-class and sixth-class streets of the secondary street network and the facilities thereto appertaining;(b) residential and mixed-purpose buildings of a medium high rise development; public services buildings and facilities of a gross floor area exceeding 1,000 square metres but not exceeding 5,000 square metres or of a capacity exceeding 100 visitor places but not exceeding 200 visitor places;(c) manufacturing buildings of a capacity exceeding 50 job positions but not exceeding 100 job positions and the facilities thereto appertaining;(d) parks, gardens and greenspaces of a surface area not exceeding 1 hectare;(e) redevelopments, remodellings, overhauls and alteration of the intended purpose of the construction works of this category;(f) interior remodelings of Category One to Four buildings whereby the structure thereof is not affected;(g) (new, SG No. 41/2007) electronic communications networks and facilities, constructed in urbanized areas with high-rise and medium-rise development;5. Category Five:(a) residential and mixed-purpose buildings of a low-rise development, country-house buildings, public services buildings and facilities of a gross floor area not exceeding 1,000 square metres or a capacity not exceeding 100 visitor places;(b) manufacturing buildings of a capacity not exceeding 50 job positions and the facilities thereto appertaining;(c) accessory-development construction works other than such covered under Category Six;(d) redevelopments, remodellings, overhauls and alteration of the intended purpose of the construction works of this category;(e) (new, SG No. 41/2007) electronic communications networks and facilities, constructed in urbanized areas with low-rise development.6. Category Six: the construction works covered under Article 54 (1) and (4) and Article 147 herein.(2) The nomenclature of the types of construction works by individual category shall be established by an ordinance of the Minister of Regional Development and Public Works.(3) Where preparation of development-project designs constitutes a public procurement within the meaning given by the Public Procurement Act, the said preparation shall be awarded according to the procedure established by the said Act.(4) (Amended, SG No. 37/2006) Preparation of development-project designs shall be assigned according to the procedure established by the Public Procurement Act. (5) (Repealed, SG No. 37/2006). Article 138. (Amended, SG No. 65/2003) The contracting authority may commission pre-design (pre-development) investigations and development of dimensions, areas and volumes for determination of the sitting of the project, proving regulatory permissibility, the appropriateness of the development-project concept, as well as compilation of terms of reference for preparation of a development-project design.Article 139. (1) Development-project designs may be prepared in the following phases:1. conceptual design;2. schematic design;3. working design (working drawings and details).(2) (Amended, SG No. 65/2003) The producing entity shall have discretion as to which phases or parts of development-project designs the said entity shall contract in accordance with the specifics of the projects for successful implementation of the development-project intention.(3) (Amended, SG No. 65/2003) All parts of the development project designs (graphical and textual) shall be signed by the designer, by the person who performed the conformity assessment, by the contracting authority and by a design engineer possessing full licensed designer qualifications in respect of the structural part, where the conformity assessment has not been performed by a consultant.(4) (Supplemented, SG No. 20/2003, repealed, SG No. 65/2003).(5) The Minister of Regional Development and Public Works shall issue an ordinance on the scope and contents of development project designs.Article 140. (Amended, SG No. 65/2003) (1) The contracting authority or a person authorized thereby may request a design permit. A design permit shall be issued by the Chief Architect of the municipality within fourteen days after receipt of the application.(2) A design permit shall be a copy (excerpt) of an effective detailed plan of a scope extending to the lot and the adjoining lots, indicating the existing buildings and structures within the said lot and within the adjoining lots, and with building development lines and permissible heights, building-development density and intensity and other requirements, if any, as well as the permissible deviations under Article 36 herein, plotted thereon.(3) (Supplemented, SG No. 65/2004, amended and supplemented, SG No. 61/2007) Issuance of a design permit shall be mandatory for any construction works referred to in Article 12 (3), Article 41 (2), Articles 50, 51, 58, 59, Article 133 (6) and Article 134 (6) herein, as well as for any works which are immovable cultural property.(4) In nucleated settlements and parts thereof with an effective regulation plan, designated for low-rise residential development, development- project designing may commence on the basis of a design permit indicating the requirements for building development in conformity with the effective standard specifications, provided that the building-development character is not altered and solely upon detached and attached development between two properties. Approval of a building-development plan shall not be required for authorization of construction.(5) A design permit shall not be issued for physical infrastructure projects.(6) The design permit for special-purpose installations related to national defence and security shall be issued by the Minister of Defence or by the Minister of Interior within seven days after receipt of the application.Section IIClearance and Approval of Development-Project DesignsArticle 141. (1) (Amended, SG No. 65/2003) A conceptual development- project design shall be subject to clearance with the Chief Architect of the municipality.(2) (Amended, SG No. 65/2003) Any conceptual development project design for construction works financed in whole or in part with executive budget resources shall be considered by the administrative-regional expert board or by the National Expert Board. The decisions of the expert board shall be mandatory for the participants in construction.(3) (Amended, SG No. 65/2003) Clearance of a conceptual development- project design may be refused solely on grounds of legal non-conformity.(4) (Amended, SG No. 65/2003) Conceptual development-project designs for special-purpose installations related to national defence and security shall be subject to expert examination by the specialized expert board referred to in Article 3 (3) herein.(5) (New, SG No. 65/2003) Conceptual development-project designs for special-purpose installations related to national defence and security shall be cleared with the Minister of Defence or with the Minister of Interior, as the case may be, after consideration of the design by the specialized expert board referred to in Article 3 (3) herein.(6) (Renumbered from Paragraph (5), SG No. 65/2003) Any conceptual development-project design for physical-infrastructure projects of a scope and importance extending beyond a single municipality shall be cleared with the Regional Governor after the said design is adopted by the administrative-regional expert board, and any such designs for projects of a scope and importance extending beyond a single administrative region and for projects of national importance shall be cleared with the Minister of Regional Development and Public Works after adoption of the design by the National Expert Board.(7) (New, SG No. 61/2007) Any conceptual development-project design for immovable cultural property and for construction works within the boundaries and protection zones of such property shall be cleared with the National Institute of Monuments of Culture under the terms and according to the procedure established by Article 125 (5) herein.(8) (Renumbered from Paragraph (6), SG No. 65/2003, supplemented, SG No. 65/2004, renumbered from Paragraph (7), SG No. 61/2007) Clearance of a conceptual design shall be effected within one month after receipt of a written request, and in the cases referred to in Article 142 (2) herein, within seven days.(9) (Renumbered from Paragraph (7), SG No. 65/2003, renumbered from Paragraph (8), SG No. 61/2007) Clearance of a conceptual design shall be grounds to proceed with the designing in the succeeding phases.Article 142. (Amended, SG No. 65/2003) (1) Development-project designs shall be subject to clearance approval and shall be grounds for issuance of a building permit.(2) A development-project design may be grounds for issuance of a building permit if an advance assessment has been performed in respect of the said design as to conformity with the projections of the detailed plan, with the spatial-development rules and standard specifications, with the requirements to construction works according to the statutory instruments as to functionality, vehicular traffic accessibility, environmental protection and health protection, as well as to the harmony between the separate parts of the design, and has been approved by the authority under Article 145 herein. In such cases, the approved conceptual design shall furthermore serve for the award of a construction work under the Public Procurement Act. The succeeding design phases shall be approved while construction is in progress prior to performance of the relevant building and erection works and shall be subject to assessment according to the requirements covered under Paragraph (5).(3) Regarding elements of transport technical infrastructure it shall be permitted that the technical or development-project design be considered by the expert board simultaneously with the acceptance of the parcelling plan, the building permit being issued after the plan comes into force.(4) All parts of investment-project designs that are grounds for the issue of a building permit shall be assessed regarding their accordance with the essential requirements to construction.(5) Any such assessment shall comprehend examination for conformity with:1. the projections of the detailed plan;2. the spatial-development rules and standard specifications;3. the requirements under Article 169 (1) herein;4. the harmony between the parts of the design;5. the completeness and the structural conformity of the engineering calculations;6. the requirements as to the mechanism, safe operation and technical surveillance of high-risk facilities, if the project contains any such facilities;7. the specific requirements to particular types of construction works according to a statutory instrument, if the project contains any such construction works.(6) Conformity shall be assessed:1. through adoption by an expert board of the approving administration;2. as an integrated report compiled by a licensed consulting firm not connected with the designer, which shall be mandatory in respect of Category One and Two projects and optional, at the discretion of the contracting authority, in respect of any lower category projects;3. (repealed, SG No. 65/2004);4. (repealed, SG No. 65/2004).(7) Apart from issuance of a building permit, an approved schematic design may furthermore serve for the award of a construction work under the Public Procurement Act. (8) Conformity assessment of the structural part of development project designs in the phases of schematic and working design shall be performed under a separate contract with the contracting authority by natural persons exercising technical control over the structural part, included in a list prepared and updated annually by the Chamber of Development-Project Design Engineers, which shall be promulgated in the State Gazette.Article 143. (Amended, SG No. 65/2003) (1) Development-project designs shall be cleared and approved on the basis of a submission of:1. assessment of the conformity of the design plans and specifications with the essential requirements to the construction work;2. (amended, SG No. 82/2006) a favourable opinion by the fire safety and protection of population authorities, applicable to Category One and Two construction works;3. tentative agreements with the utility companies for coupling with the physical-infrastructure networks.4. (new, SG No. 77/2005) opinion of the Minister of Environment and Water for the construction of sites, the building of which requires a permit pursuant to Article 104 (1) of the Environment Protection Act. 5. (new, SG No. 61/2007) clearance with the National Institute of Monuments of Culture under the terms and according to the procedure established by Article 125 (5) herein, applicable to immovable cultural property and to construction works within the boundaries and protection zones thereof.(2) Fees for clearance and approval of development-project designs shall be paid under the Stamp Duty Act and the Local Taxes and Fees Act. (3) (Repealed, SG No. 65/2004).Article 144. (Amended, SG No. 65/2003) (1) Any development project designs, which serve as grounds for the issuance of a building permit, shall be approved acting on a written application by the contracting authority and after submission of:1. documentary proofs of title and, applicable to buildings of housing development cooperatives, an effective resolution of the general meeting on adoption of the design;2. (supplemented, SG No. 61/2007) a design permit, in the cases referred to in Article 12 (3), Article 41 (2), Articles 50, 51, 58, 59, Article 133 (6) and Article 134 (6) herein;3. three copies of the development-project design of a scope and contents specified in the ordinance referred to in Article 139 (5) herein;4. (amended, SG No. 77/2005) the administrative acts which, depending on the type and scope of construction, are required as a prerequisite for permission of construction pursuant to the Environment Protection Act or a special law;5. (amended, SG No. 65/2004) a conformity assessment prepared according to the procedure established by Article 142 (6) herein.6. (new, SG No. 65/2006) a permit to build a groundwater extraction facility and/or to extract groundwater, and/or to discharge waste water, issued according to the procedure and the in the cases, for which respective provisions are made in the Water Act. (2) The conditions for use of water for drinking, manufacturing and fire-protection purposes, for release of waste water, for use of electric power, for communication links, for heat supply and for gas supply shall be ensured by the organizations providing public services, under the terms and according to the procedure established by special statutes.(3) Development-project designs shall be approved or approval shall be refused by the authority under Article 145 herein:1. (amended, SG No. 65/2004) where conformity has been assessed under Item 2 of Article 142 (6) herein: within seven days after submission of any such designs;2. (amended, SG No. 65/2004) where conformity has been assessed under Item 1 of Article 142 (6) herein: within one month after submission of any such designs.Article 145. (1) (Amended, SG No. 65/2003) Schematic or working development-project designs shall be cleared with and approved by the Chief Architect of the municipality (or ward). Clearance of development-project designs shall consist in examination of the conformity of the said designs with the projections of the detailed plan and with the building-development rules and standard specifications.(2) (Supplemented, SG No. 65/2003) Schematic and working development-project designs for physical-infrastructure projects of a scope and importance extending beyond a single municipality shall be approved by the Regional Governor, and such designs for projects of a scope and importance extending beyond a single administrative region and for projects of national importance shall be approved by the Minister of Regional Development and Public Works. Schematic and working development-project designs for special-purpose installations related to national defence and security shall be cleared with and approved by the Minister of Defence or the Minister of Interior, as the case may be.(3) (Supplemented, SG No. 65/2003) All parts of the approved development-project designs shall be stamped with the seal of the municipal administration, the administrative-regional administration, or the Ministry of Regional Development and Public Works, and in respect of special-purpose installations related to national defence and security, with the seal of the Ministry of Defence or of the Ministry of Interior, as the case may be.(4) (Amended, SG No. 65/2003) Should the contracting authority fail to request the grant of a building permit within one year after approval of the development-project designs, the design shall lose legal effect.(5) (Supplemented, SG No. 65/2003) Where the approved development- project designs where from the construction work has been executed have been lost, the said designs shall be restored by the owner through a survey development-project design of the performed construction work and submission of documents referred to in Items 1, 2, 3 and 5 of Article 144 (1) and in Article 144 (2) herein. Any such survey design shall be approved by the authority competent to approve the development-project design for the construction work, upon submission of the building permit or of other documents comprehended in the construction file as issued.Article 146. (Amended and supplemented, SG No. 65/2003, amended, SG No. 61/2007) Approval of a development-project design may be denied solely on grounds of legal non-conformity, citing a specific reasoning. The contracting authority shall be notified in writing according to the procedure established by the Administrative Procedure Code of a refusal to approve a development- project design. Any such refusal shall be appealable before the authority referred to in Article 216 (2) herein within fourteen days after communication of the issuance of the said refusal.Article 147. (1) (Supplemented, SG No. 65/2003) Approval of development-design project shall not be required for the issuance of a building permit for:1. (amended, SG No. 65/2003) farm structures intended for agricultural purpose and the accessory-development construction works covered under Article 44 and under Article 46 (1) herein, save as otherwise provided by a Municipal Council resolution;2. (amended and supplemented, SG No. 65/2003) installation of utility-service systems, facilities and fixtures, with the exception of high-risk equipment subject to technical surveillance by the Directorate General of State Technical Supervision Inspectorate;3. greenhouses of a floor space not exceeding 200 square metres;4. pools of a cubic content not exceeding 100 cubic metres in fenced lots;5. retaining walls of a height not exceeding 2 metres above the level of the ground adjoining the base thereof, where not a component of transport projects;6. (amended, SG No. 65/2003) repair of physical-infrastructure elements;7. fences, garden and park furnishings of a height not exceeding 2. 20 metres above the adjoining ground;8. excavations and embankments of a depth or height not exceeding 1 metre and of an area not exceeding 30 square metres;9. pneumatic (air-supported) warehouses or covers of a floor space not exceeding 100 square metres;10. (amended, SG No. 65/2003) the construction works covered under Article 55 herein;11. (amended, SG No. 65/2003, supplemented, SG No. 65/2004, repealed, SG No. 61/2007); 12. glazing of balconies and loggias, with the exception of such facing the primary street network;13. (repealed, SG No. 65/2003).(2) (Amended, SG No. 65/2003, SG No. 61/2007) An opinion of a structural engineer with directions for execution shall be presented in respect of any construction work referred to in Items 1, 3, 5, 7 and 12 of Paragraph (1).(3) (New, SG No. 61/2007) The provisions of Paragraph (1) shall not apply to immovable cultural property and to any works within the boundaries and protection zones thereof.Section IIIConstruction AuthorizationArticle 148. (1) Construction works may be performed solely if authorized according to this Act.(2) A building permit shall be issued by the Chief Architect of the municipality, and in the cities subdivided into wards, subject to a Municipal Council resolution, by the Chief Architect of the ward.(3) (Supplemented, SG No. 65/2003) A building permit for physical-infrastructure projects of a scope and importance extending beyond a single municipality shall be issued by the Regional Governor, and such a permit for projects of a scope and importance extending beyond a single administrative region and for projects of national importance shall be issued by the Minister of Regional Development and Public Works. A building permit for special-purpose installations related to national defence and security shall be issued by the Minister of Defence or by the Minister of Interior, as the case may be.(4) (Amended, SG No. 65/2003, supplemented, SG No. 61/2007) A building permit shall be issued to the contracting authority on the basis of an approved schematic or working development-project design, where such shall be required. It shall be permissible to issue a building permit on the basis of an approved conceptual design referred to in Article 142 (2) herein. Any such building permit shall be issued simultaneously with the approval of the development-project design, where so requested in the application. A building permit for works within protected cultural and historical heritage areas shall be issued after clearance with the National Institute of Monuments of Culture under the terms and according to the procedure established by Article 125 (5) herein. A building permit shall be issued within seven days after receipt of a written application, where there is an approved development- project design.(5) A building permit for a co-owned property shall be issued in compliance with the terms and the procedure established by Article 183 herein.(6) In an emergency, building permits for geohazards protection projects may be issued, as an exception, on the basis of partial working designs.(7) A building permit for a new construction work within a corporeal immovable wherein an illegal construction work exists shall not be issued to the person who or which has performed the illegal construction work until the said project is removed or legalized.(8) The approved development-project design, where such shall be required, shall constitute an integral part of the building permit.(9) A building permit shall record all grounds of fact and law for the issuance thereof, the terms and conditions for execution of the construction work, including utilization of the humus layer of earth and removal of buildings without building-development mode or preservation of such buildings within a specified period of time until completion of the construction work.(10) In cases where water supply of the projects from an own water source is projected, a building permit shall be issued in compliance with the provisions of the Water Act. (11) (New, SG No. 65/2006) The building permit shall be issued according to the bans under Article 118a, Paragraph 1, Item 4, and Article 125a of the Water Act, and the requirements under Article 125 of the same act. (12) (New, SG No. 61/2007) The municipal amenity-planting authorities shall prepare written statements ascertaining the tree vegetation prior to commencement and after completion of the construction. The building permit shall be issued after the issuance of a permit to remove the tree vegetation affected by the construction under terms and according to a procedure established by Article 62 (10) herein.Article 149. (Amended, SG No. 65/2003) (1) (Amended, SG No. 61/2007) Any building permit, issued by the Chief Architect of the municipality (or borough), or any refusal to issue such a permit shall be communicated to the interested parties under the terms and according to the procedure established by the Administrative Procedure Code. Issuance may be denied solely on grounds of legal non-conformity, citing a specific reasoning.(2) Interested parties for the purposes of Paragraph (1) shall be:1. in the cases of a new construction work, extending or heightening of a pre-existing construction work: the contracting authority, the owners and the holders of limited real rights to the lot, the person enjoying a right to build in another's property by virtue of a special statute;2. in the cases of remodelling and alteration of the intended purpose of a pre-existing project: the persons referred to in Article 38 (3) and (4) and Article 39 (2) herein;3. in the cases referred to in Article 185 (1) and (2) herein: the owners and the holders of limited real rights in the building, or the owners in the condominium project, as the case may be.(3) A building permit, together with the approved development project design, or a refusal to issue such a permit shall be appealable by the interested parties as to legal conformity before the Chief of the Regional Office of the National Construction Control Directorate within fourteen days after communication of the issuance of the respective act.(4) Any building permit issued together with the development project designs approved by the Minister of Regional Development and Public Works or by a Regional Governor, or any refusal to issue such a design (sic, must be permit) shall be communicated to interested parties by means of a notice promulgated in the State Gazette. Any such building permit or any refusal to issue such a permit, as the case may be, shall be appealable before the Supreme Administrative Court within fourteen days after the promulgation thereof.(5) The authorities issuing building permits shall notify in writing the competent Regional Offices of the National Construction Control Directorate of any building permits issued thereby and shall transmit copies of any such permits within seven days after issuance.Article 150. (1) (Amended, SG No. 65/2003) Acting on a reasoned request by the contracting authority, the municipality mayor, the Regional Governor or the Minister of Regional Development and Public Works, as the case may be, each acting within the competence vested therein, may authorize the preparation of an integrated development-initiative design.(2) An integrated development-initiative design shall consist of the following self-contained constituent parts:1. a draft detailed plan, including a working spatial development plan, where such shall be necessary;2. (amended, SG No. 65/2003) a development-project design.(3) (Amended, SG No. 65/2003) The parts of an integrated development-initiative design shall be approved simultaneously with the issuance of a building permit and shall be communicated according to the procedure established by Article 130 herein.(4) (Amended, SG No. 65/2003) A 30 per cent surcharge fee shall be due separately for approval of the parts of an integrated development-initiative design referred to in Paragraph (3) and for issuance of a building permit.(5) The term of validity of an integrated development initiative design shall be two years reckoned from the date of issuance of the last building permit act, unless the effect of the said design be suspended by the court or for another compelling reason.Article 151. (1) (Amended, SG No. 65/2003, Previous Article 151, SG No. 61/2007) No building permit shall be required for:1. exterior and interior painting of buildings and structures;2. replacement of roof covering materials;3. interior remodellings whereby:(a) the structure of the building is not affected;(b) existing walls are not removed, relocated or breached, where any such action shall affect the structure of the building;(c) the intended purpose of the premises and the loads therein are not altered;4. routine repair of buildings, structures, facilities and utility- service systems;5. routine repair of the physical-infrastructure elements covered under Article 64 (1) herein, whereby the route and the technical parameters are not altered;6. routine repair of roads, whereby the structure of the roadway is not altered;7. monuments, tomb stones and crosses of a height not exceeding 3 metres;8. (supplemented, SG No. 65/2004, repealed, SG No. 61/2007). (2) (New, SG No. 61/2007) In works which are monuments of culture, the activities covered under Paragraph (1) shall be performed after clearance with the National Institute of Monuments of Culture under the terms and according to the procedure established by Article 125 (5) herein.Article 152. (1) A building permit shall be issued for the entire construction work.(2) A building permit may furthermore be issued for separate stages (parts)of construction works which may be executed and used independently and, in respect of residential buildings, for separate stories of a building, subject to the condition that space arrangement and facade arrangement be completed at each construction phase.Article 153. (1) (Amended, SG No. 65/2003) In the cases where approval of a development-project design is not required, a building permit shall be issued solely on the basis of the request for a permit and a documentary proof of title, of a created building right, or of a right to build in another's property by virtue of a special statute. Any such building permit shall state the types of building and erection works to be executed. In respect of structures and facilities covered under Article 147 (1) herein, a ground plat indicating building-development lines, separations and heights shall be attached to the building permit.(2) A building permit shall lose legal effect unless construction has commenced within three years after the issuance of the said permit or unless the rough construction work, including the roof of the building, has been completed within five years after the issuance of the said permit. Any such failure shall be ascertained in writing by the authority issuing the building permit.(3) Construction works in respect of which the building permit has lost legal effect within the meaning given by Paragraph (2) may be implemented after re-certification of the building permit. Unless the building permit is re-certified within one year, the approved design shall lose legal effect.(4) Upon re-certification of a building permit in the cases under Paragraphs (2) and (3), 50 per cent of the fee provided for according to the standard procedure shall be charged.Article 154. (Amended, SG No. 65/2003) (1) Upon change of the development-project intention after the issuance of a building permit, solely immaterial deviations from the approved development project design shall be permissible.(2) Material deviations from the approved development-project design shall be any deviations which:1. conflict with the projections of the effective detailed plan;2. conflict with the requirements for construction in special planning-protection areas or in preventive planning-protection mode areas;3. are incompatible with the intended purpose of the spatial development area;4. conflict with the construction rules and standard specifications, the technical, technological, sanitation, hygiene and fire-protection requirements;5. alter the building structure and the type of the structural elements and/or loads;6. conflict with the projections of the design, altering the intended purpose of works, removing or altering materially common parts of the construction work;7. alter the type and location of shared wiring and plumbing systems and fixtures in buildings and structures;8. alter the type, elevation, location and route of transmission and delivery lines and facilities to urbanized territories and of physical-infrastructure public networks and facilities and of the waste-treatment installations and facilities.(3) Immaterial deviations from the approved development-project design shall be any deviations other than those covered under Paragraph (2).(4) After issuance of a building permit, any modifications of the approved development-project design within the scope of the material deviations referred to in Items 1, 2, 3 and 4 of Paragraph (2) shall be impermissible.(5) After issuance of a building permit, any modifications of the approved development-project design within the scope of the material deviations referred to in Items 5, 6, 7 and 8 of Paragraph (2) shall be admitted at a request of the contracting authority accompanied by a notarized consent of the interested parties covered under Article 149 (2) herein on the basis of an approved development-project design attached to the building permit as issued. Any such modifications shall be recorded in the building permit as issued by means of a note and shall be admitted prior to the implementation thereof.Article 155. (1) The original of the building permit shall be submitted into the indefinite custody of the records of the municipal administration (or ward administration).(2) In respect of any physical-infrastructure project referred to in Article 148 (3) herein, the original of the building permit shall be submitted into the custody of the issuing authority, and copies of the said building permit shall be transmitted for observance and custody to the competent municipal administration (or ward administration).(3) A certified copy of the approved development-project (executive) design shall be attached to the building permit.Article 156. (1) (Amended, SG No. 65/2003) Building permits as issued, together with the approved development-project designs, as well as building partners in the cases where approval of development-project designs is not required, may be revoked solely on grounds of legal non-conformity, acting on an appeal lodged by the interested party within the time limit referred to in Article 149 (3) herein or upon self-initiated examination by the authorities of the National Construction Control Directorate within seven days after notification of the said authorities according to the procedure established by Article 149 (5) herein. Any effective building permits shall be irrevocable.(2) (Repealed, SG No. 65/2003).(3) (Repealed, SG No. 65/2003).PART THREECONSTRUCTIONChapter NineCOMMENCEMENT OF CONSTRUCTION AND RELATIONSHIPS IN CONSTRUCTIONPROCESSSection IConstruction Site Opening and Building Line and Elevation MarkingArticle 157. (1) (Supplemented, SG No. 65/2003) Construction shall be deemed commenced conforming to the building permit as issued as from the day of drawing up of a memorandum on the opening of a construction site and on marking of a building line and elevation or, where no such memorandum is required, as from the date of certification of the order record book.(2) (Amended, SG No. 65/2003, supplemented, SG No. 103/2005, SG No. 108/2006, effective 3.01.2008) The opening of a construction site and the marking of a building line and elevation shall be performed if there is an effective building permit and in the presence of officials under Article 223 (2) herein by the person exercising construction supervision in respect of the work or by the site manager in respect of Category Five construction works, and, in respect of special-purpose installations related to national defence and security, by the Minister of Defence or by the Minister of Interior, as the case may be, or by persons authorized thereby. Opening of a building site, definition of the building frontal line and level and legalization of the order book shall be carried out after the Assigning Party has presented a contract for the construction of the project by a builder entered in the Central Register of Professional Builders, unless the project is of a category for which entry of the builder in the register is not required.(3) (Repealed, SG No. 65/2003).(4) A memorandum shall be drawn up on the opening of the construction site and on the marking of the building line and elevation, indicating the regulation benchmarks and the datum levels. Any such memorandum shall record the measures to ensure occupational health and safety, traffic safety, and preservation of adjacent buildings, pre-existing buildings, networks and facilities in the property, which shall be preserved in the course of construction and thereafter, as well as the large-sized tree vegetation which is not subject to removal.(5) (Supplemented, SG No. 65/2003, amended and supplemented, SG No. 76/2005) Absent a technically feasible alternative, parts of pavements, public open spaces, as well as parts of roadways may be used temporarily as construction sites under terms and according to a procedure established by a Municipal Council ordinance and by the development-project design. Construction sites shall be fenced off by means of temporary fences at the direction of the municipal administration (or ward administration), and signs stating the authorized construction work with data about the developer, the person exercising construction supervision and other relevant information shall be placed.Article 158. (1) (Amended, SG No. 65/2003) The memorandum on the opening of a construction site and on marking of a building line and elevation shall be submitted into the indefinite custody of the records of the administration which has issued the building permit. A transcript of the said memorandum shall remain in the custody of the contracting authority or of the person exercising construction supervision.(2) (Amended, SG No. 65/2003, SG No. 103/2005) Within three days after the drafting of the memorandum referred to in Paragraph (1) or, where no such memorandum is required, prior to commencement of the construction, the person exercising construction supervision, or the site manager for fifth category construction sites, shall submit the order record book of the construction work to the authority which has issued the building permit for certification and shall notify in writing within seven days following certification the municipality, the specialised control authorities and the Regional Construction Control Directorate. In the cases where the building permit has been issued by the Regional Governor or by the Minister of Regional Development and Public Works, the order record book shall be certified by the National Construction Control Directorate. In respect of special-purpose installations related to national defence and security, the order record book shall be certified by officials designated by the Minister of Defence or by the Minister of Interior, as the case may be.Article 159. (Amended, SG No. 65/2003) (1) Upon reaching the design elevations of footing course, base course, coping (eaves) course and ridge course in respect of buildings (respectively, at footing course elevation, prior to covering any newly constructed or remodelled underground lines and facilities with backfill and for survey in the selective maps and registers, design levelling with restored or executed surfacing), the person exercising construction supervision, or the site manager of Category Five construction works, shall be obligated, prior to authorizing execution of the succeeding building and erection works, to conduct an examination and to ascertain the conformity of the construction work with the development-project designs as approved, the building permit and the memorandum on the marking of a building line and elevation, with the geological engineer who performed the subsurface investigation and the designer of the structural part being mandatorily present at footing course elevation.(2) The person exercising construction supervision, or the site manager of Category Five construction works, shall record the result of the examination conduction upon reaching the elevations controlled in the memorandum on the marking of a building line and elevation, noting inter alia that the underground lines and facilities were recorded in the selective maps and registers before being covered with backfill, and shall transmit a certified copy of the said memorandum to the municipality (or ward) within three days.(3) Within three days after completion of the building and erection works on the foundations of the construction work, an official of the municipal administration (or ward administration), acting at the request of the person exercising construction supervision, or of the site manager of Category Five construction works, shall conduct an examination to ascertain the conformity of the construction work with the construction file as issued and as to whether the detailed plan has been applied in respect of the building development.(4) Should the examination of the design elevations reached ascertain any material deviations from the construction file, the person exercising construction supervision shall suspend the construction by an order which the said person shall enter into the record order book of the construction work and shall draft a memorandum on the deviations ascertained which the said person and shall transmit to the Regional Office of the National Construction Control Directorate within three days.(5) In respect of special-purpose installations related to national defence and security, the actions covered under Paragraph (1) to (4) shall be performed by persons designated by the Minister of Defence or by the Minister of Interior, as the case may be.Section IIParticipants in Construction and Relationships between ThemArticle 160. (Amended, SG No. 43/2002 and SG No. 65/2003) (1) "Participants in the construction process" shall be the contracting authority, the developer, the designer, the consultant, the natural person exercising construction supervision over the structural part, the site manager and the supplier of machinery, plant and process equipment.(2) The relationships of the participants in construction shall be regulated by written contracts.(3) To ensure the normal functioning and use of completed construction projects and to remedy latent defects after acceptance and commissioning (commencement of use) of any such projects, minimum warranty periods for executed building and erection works, facilities and construction projects shall be fixed by an ordinance of the Minister of Regional Development and Public Works.(4) The warranty periods for executed building and erection works, facilities and construction projects shall be fixed by the contract between the contracting authority and the contractor for the relevant construction project. Any such periods may not be shorter than the minimum periods fixed by the ordinance referred to in Paragraph (3).(5) The warranty periods shall begin to run as from the day of commissioning of the construction project.Article 161. (1) (Amended, SG No. 65/2003) "Contracting authority" shall be the owner of the property, the person in favour whereof a right to build in another's property has been created, or the person enjoying a right to build in another's property by virtue of a special statute. The contracting authority or a person thereby authorized shall ensure everything necessary for the commencement of construction.(2) (Repealed, SG No. 65/2003).Article 162. (Amended, SG No. 65/2003) (1) "Designer" shall be a natural or a legal person whereof the members include natural persons possessing the requisite licensed designer qualifications.(2) The terms and a procedure for exercise of designer supervision in the course of construction shall be established by a contract between the contracting authority and the designer. Designer supervision over the structural part shall be mandatory for all construction works of Category One to Category Five inclusive.(3) The prescriptions of the designer, related to the copyright thereof, as to strict compliance with the development-project design as thereby prepared, shall be entered into the order record book and shall be mandatory for the remaining participants in construction.(4) (Repealed, SG No. 103/2005). Article 163. (Amended, SG No. 65/2003) (1) "Developer" shall be a natural person a legal person whereof the members include natural persons possessing the requisite licensed technical qualifications.(2) The developer shall be responsible for:1. execution of the construction work in accordance with the construction file as issued and with the requirements of Article 169 (1) herein, as well as with the rules for execution of building and erection works and of the measures for protection of human life and health on the construction site;2. execution of the building and erection works employing materials, manufactures, products and other such conforming to the essential requirements to construction works;3. custody of the executive documents and the preparation thereof, where this is assigned by the contracting authority, as well as custody of the other technical documents on execution of the construction work;4. custody and submission, upon request, to a control authority of the construction file and the order record book of the construction work referred to in Article 170 (3) herein.(3) The developer shall incur pecuniary liability for any detriment inflicted and lost profit sustained through a culpable act or omission thereof.(4) The developer may subcontract the performance of particular types of building and erection works or of parts (stages) of the construction work.Article 163a. (New, SG No. 65/2003) (1) (New, SG No. 108/2006) The builder shall be obliged to appoint technically qualified persons under labour contracts to carry out the technical supervision of the construction works.(2) (New, SG No. 108/2006) Technically qualified persons shall be considered to be those who hold a diploma issued by an accredited higher education establishment with the qualification "construction engineer", "engineer" or "architect", as well as persons who have completed high school education with a four-year training course and professional qualifications acquired in the fields of "architecture and construction" and "engineering technology".(3) (New, SG No. 108/2006) Apart from the cases stipulated in para. 2, technical qualifications may be recognized of a foreign person under conditions of mutuality established for each particular case when he or she holds a diploma legalized in accordance with the relevant procedures and when he or she meets the requirements set out in this act.(4) (Renumbered from Paragraph 1 and supplemented, SG No. 108/2006) "Site manager" shall be a civil engineer or a civil engineering assistant who shall direct the building works. Other technically qualified persons under para. 2 may perform specialized technical supervision of specific construction and assembly works in accordance with their specialization and level of education and qualifications.(5) (Renumbered from Paragraph 2, SG No. 108/2006) Where the construction work is executed by the contracting authority, the said contracting authority shall be obligated to make arrangements for a site manager. In such a case, the site manager shall incur liability for compliance with the requirements covered under Article 163 (2) herein.Article 164. (Repealed, SG No. 65/2003).Article 165. (Amended, SG No. 65/2003) The contracting authority may commission the supply and installation of the process equipment and utility-service system equipment of the construction work to a supplier. Any such supplier shall be responsible for the quality and prompt execution of the said supply and installation, as well as for the related acceptance trials.(Section III Construction Supervision)(Heading repealed, SG No. 65/2003)Article 166. (Amended, SG No. 20/2003 and SG No. 65/2003) (1) On the basis of a written contract with the contracting authority, the consultant:1. shall perform conformity assessment of the development project designs and/or shall exercise construction supervision;2. may conduct pre-development studies, preparation of the design process and coordination of the construction process until commissioning of the construction work.(2) The Minister of Regional Development and Public Works shall issue a licence for practice of the activity referred to in Item 1 of Paragraph (1) under terms and according to a procedure established by a Council of Ministers ordinance.(3) The consultant may not conclude a construction supervision contract for any construction works in respect of which the said consultant or any natural persons hired thereby under an employment relationship are developers and/or suppliers of machinery, plant and process equipment, as well as persons connected therewith within the meaning given by the Commerce Act. (4) The consultant may not conclude a contract for conformity assessment of the design for any construction works in respect of which the said consultant or any natural persons hired thereby under an employment relationship are designers and/or developers, and/or suppliers of machinery, plant and process equipment, as well as persons connected therewith within the meaning given by the Commercial Code.(5) A fee shall be paid for the issuance of a licence referred to in Paragraph (1) according to a rate schedule adopted by the Council of Ministers.(6) In respect of any special-purpose installations of the Ministry of Defence and the Ministry of Interior, whereon the information constitutes a state secret within the meaning given by the Classified Information Protection Act, the conformity assessment shall be performed by experts appointed by an order of the competent minister.Article 167. (Amended, SG No. 20/2003 and SG No. 65/2003) (1) Eligibility for the issuance of a licence for practice of the activities referred to in Item 1 of Article 166 (1) herein shall be limited to persons who or which are merchants within the meaning given by the Commerce Act and who or which satisfy the following requirements:1. no bankruptcy adjudication proceedings must be pending against them;2. the members of the management bodies of the legal persons and the sole traders, as well as the natural persons hired thereby under a contract of employment or another contract, must be qualified experts holding the educational qualification degree of Master, conferred thereon upon graduation from a higher educational establishment, have at least five years' length of service in a relevant position, and during the last preceding three years have not committed and/or have not suffered another to commit any systematic violations under this Act and the statutory instruments on the application thereof, and must not have been sentenced to deprivation of liberty for an offence at public law, unless rehabilitated;3. they have not committed and/or suffered another to commit any systematic violations under this Act and the statutory instruments on the application thereof.(2) A licence shall be issued for a term of validity of five years and shall be entered in a public register with the Ministry of Regional Development and Public Works. To obtain a licence, the (eligible) legal person or sole trader shall submit an application completed in a standard form as approved by the Minister of Regional Development and Public Works, attaching thereto:1. (amended, SG No. 34/2006) certificate reflecting current status of commercial registration;2. (amended, SG No. 105/2005) certificate under Article 87, (6) of the Tax and Social Insurance Procedure Code; 3. a list of the technically qualified natural persons where through the activities of conformity assessment of the designs and/or construction supervision are practised, with proof of the professional experience of the said persons and of the five years' length of service, as well as other individual documents certifying the technical competences and abilities to practise the activities referred to in Item 1 of Article 166 (1) herein;4. proof of professional experience and of five years' length of service of the members of the management bodies of the legal person or the sole trader;5. certificates issued by the Regional Offices of the National Construction Control Directorate, showing that the members of the management bodies of the legal person or the sole trader, as well as the natural persons where through the activities referred to in Item 1 of Article 166 (1) herein are to be practised, have not suffered another to commit, nor have committed themselves, any systematic violations under this Act and the statutory instruments on the application thereof;6. a conviction status certificate: applicable to natural persons.(3) A licence shall be issued or refused within three months after submission of an application.(4) A licence may be revoked prior to the expiration of the term of validity thereof at the request of the licence holder upon presentation of evidence that there are no unconsummated contracts for any licensed activities, as well as upon dissolution of the legal person or of the enterprise of the sole trader, or where:1. the authorities of the National Construction Control Directorate revoke as legally non-conforming more than three directions, recommendations or orders issued by the person exercising construction supervision in respect of each particular project;2. more than three instances of omission have been ascertained in the performance of the construction supervision duties in respect of each particular project;3. a pecuniary penalty has been imposed by an effective penalty decree on the legal person or sole trader for systematic violations under this Act or the statutory instruments on the application thereof;4. a fine has been imposed by an effective penalty decree on more than three occasions within a single year on the natural persons who practise the activities thereof on (behalf) and for the account of the licensed legal person or sole trader;5. any of the grounds which have served for issuance of the licence is eliminated.(5) Any licence or refusal to issue a licence, as well as any withdrawal of a licence, shall be appealable before the Supreme Administrative Court within fourteen days after communication.Article 168. (1) (Amended, SG No. 65/2003) The person exercising construction supervision shall be responsible for:1. legally conforming commencement of the construction work;2. completeness and correct drafting of the statements and memoranda in the course of construction;3. execution of the construction works in conformity with the development-project designs as approved and the requirements under Article 169 (1) and (2) herein;4. (amended, SG No. 65/2003, No. 76/2005) compliance with the conditions for occupational safety in construction;5. preclusion of damage to third parties and properties as a consequence of the construction;6. (amended, SG No. 65/2003) commissionability of the construction work;7. (new, SG No. 65/2003) accessibility of the construction work to persons with disabilities;8. (new, SG No. 65/2003) energy efficiency evaluation.(2) (new, SG No. 65/2003) Construction supervision shall be exercised by a consultant in respect of Category One to Four construction works.(3) (Renumbered from Paragraph (2), SG No. 65/2003) The person exercising construction supervision shall sign all certificates and memoranda in the course of construction as shall be necessary for assessment of the construction works in respect of requirements as to safety and legally conforming execution, according to an ordinance of the Minister of Regional Development and Public Works regarding the statements and memoranda drawn up in the course of construction.(4) (Renumbered from Paragraph (3), amended and supplemented, SG No. 65/2003) The prescriptions and orders of the person exercising construction supervision, as entered in the order record book, shall be mandatory for the developer, building contractor and site manager of the construction work. Any objections to the prescriptions of the person exercising construction supervision may be lodged within three days before the authorities of the National Construction Control Directorate, and construction shall be suspended until pronouncement by the said authorities. After examination, the authorities of the National Construction Control Directorate shall issue mandatory directions.(5) (Renumbered from Paragraph (4) and amended, SG No. 65/2003) Upon violation of the technical rules and standard specifications, the person exercising construction supervision shall be obligated to notify the Regional Office of the National Construction Control Directorate within three days after ascertainment of any such violation.(6) (Repealed, renumbered from Paragraph (5) and amended, SG No. 65/2003) Upon completion of building and erection works, the person exercising construction supervision shall prepare a final report to the contracting authority.(7) (Amended, SG No. 65/2003) The persons exercising construction supervision shall incur liability for any detriment inflicted thereby on the contracting authority and the other participants in construction, and solidary liability with the developer for any detriment inflicted through non-observance of technical rules and standard specifications and of the designs as approved. The period of liability under the construction supervision contract shall be at least as long as the warranty periods in construction.Section III(Renumbered from Section IV, SG No. 65/2003)Requirements to Construction worksArticle 169. (Amended and supplemented, SG No. 65/2003, amended SG No. 76/2006) (1) Construction works shall be designed, executed and maintained in accordance with the requirements of the statutory instruments and technical specifications as to provide within an economically feasible term of operation all material requirements for:1. bearing capacity - mechanical resistance, stability and durability of building structures and of the foundation bed under service and earthquake loads;2. fire safety;3. hygiene, protection of human health and life;4. operational safety;5. noise protection and protection of the environment;6. energy efficiency - energy savings and heat preservation;(2) (Amended, SG No. 61/2007) Construction works shall be designed, executed, and maintained in conformity with the requirements for environment accessible to the general public, including persons with disabilities, established by an ordinance of the Minister of Regional Development and Public Works. The heads of the central executive authorities and the municipality mayors shall elaborate annually programmes of measures to bring the urbanized area and the existing buildings and facilities therein into conformity with the requirements for accessible environment and shall project resources for the implementation of the said measures.(3) Construction works shall be designed, executed, and maintained in conformity with the statutory requirements for:1. preservation of all protected areas, protected territories, and other protected sites and immovable monuments of culture;2. engineering and technical rules on disaster and emergency safety;3. physical protection of the construction works.(4) The Minister of Regional Development and Public Works, jointly with the competent ministers, shall issue ordinances to define any requirements under Paragraphs (1) and (2), and Items (1) and (3) of Paragraph (3), related to construction works design, execution, control, and commissioning, construction durability, land base stability, as well as any other safety requirements, taking into account any impact from geographic, climatic, and seismic factors.(5) The Council of Ministers shall adopt an ordinance for construction works disaster and emergency safety engineering and technical rules after proposal by the Minister of Disaster Management Policy.(6) (New, SG No. 61/2007) Annually, the Council of Ministers and the municipal councils shall adopt the programmes referred to in Paragraph (2) and shall exercise control over the implementation thereof.Article 169a. (New, SG No. 76/2006) (1) Construction works shall use only construction products, compliant with all material requirements towards construction works, and meeting the technical specifications, defined by the Technical Requirements Towards Products Act. (2) The Council of Ministers shall adopt an ordinance to define the procedure for issuance of permits for evaluation of construction product compliance with the technical specifications under Paragraph (1) and a permit to issue Bulgarian technical approvals after proposal by the Minister of Regional Development and Public Works.(3) The ordinance under Paragraph (2) shall define the compliance evaluation and Bulgarian technical approval issuance procedure, as well as the procedure to use construction products, compliant with the technical specifications under Paragraph (1), in construction works.(4) A fee for the issuance of permits under Paragraph (2) shall be charged, based on a schedule adopted by the Council of Ministers.(5) All persons, holding permits to perform activities under Paragraph (2), shall:1. submit to the Minister of Regional Development and Public Works an annual report, containing information on all product compliance evaluations performed, for all Bulgarian technical approvals issued, for all claims submitted, and for all actions taken to resolve them.2. inform the Minister of Regional Development and Public Works within 7 days of any change in legal status, structure, personnel, scope of activity, subcontractor change, if any subcontractors are being used, as well as of all changes of conditions under Article 10, Paragraph 1, Item 6 of the Technical Requirements Towards Products Act. (6) The Minister of Regional Development and Public Works or officials authorised thereby, shall exercise control over the activity of the persons, holding permit to evaluate construction product compliance or to issue European or Bulgarian technical approvals.Article 169b. (New, SG No. 76/2006) All control of construction products under Article (169a), Paragraph (1) shall be exercised by the consultant when performing investment project evaluation, and exercising construction supervision.(2) All administrative control over construction products under Article 169a, Paragraph 1 in the design and construction phases shall be exercised by the authorities under Articles 220 - 223.Article 170. (1) (Amended, SG No. 65/2003) All circumstances related to a construction work, including but not limited to delivery and acceptance of the construction site, building and erection works subject to closure, and intermediate and conclusive statements of acceptance and delivery of building and erection works, shall be documented by the representatives of the parties to the contracts as concluded.(2) (Supplemented, SG No. 65/2003) Upon refusal or failure (of a party) to report for the drafting of a joint statement, the interested party shall extend an invitation in writing to the other party or parties to a drafting of the statement. Should a representative of the party invited fail to report within twenty four hours after the time limit established in the invitation, the said party shall be substituted by the authority which has issued the building permit or by an official authorized thereby.(3) (Amended and supplemented, SG No. 65/2003) All prescriptions related to the execution of a construction work, as issued by the duly empowered persons and the specialized control authorities, shall be entered in the order record book of the construction work which shall be kept at the construction work.Chapter TenINSURANCE IN DESIGN AND CONSTRUCTIONArticle 171. (Amended, SG No. 65/2003) (1) (Supplemented, SG No. 103/2005) The designer, the person commissioned with technical control on "Constructive" part, the consultant, the builder and the person exercising construction supervision shall be insured against professional liability for any detriment inflicted on the other participants in construction and/or third parties as a result of wrongful acts or omissions in the course of, or in connection with, the performance of their duties.(2) The terms and a procedure for compulsory insurance of the persons covered under Paragraph (2), including the insurance cover, the risks excluded, the minimum amounts of insurance, and the insurance premiums, shall be established by an act of the Council of Ministers.Article 172. (Amended, SG No. 65/2003) (1) The insurances referred to in Article 171 herein shall be contracted for a period of one year and shall cover the liability of the insured on written claims presented within the term of validity of the contract of insurance for:1. any wrongful acts or omissions of the insured in the course of, or in connection with, the performance of the duties thereof, performed within the term of validity of the contract;2. any wrongful acts or omissions of the insured in the course of, or in connection with, the performance of the duties thereof, performed within a period commencing on the retroactive date and ending upon conclusion of the contract; in such a case, the insurer shall not be liable for any loss as have occurred prior to the conclusion of the contract of insurance.(2) "Retroactive date" within the meaning given by Paragraph (1) shall be the date of commencement of practice of a person covered under Article 171 herein. In respect of the persons who have practised for a period exceeding five years, the retroactive date shall be five years prior to conclusion of the contract of insurance.(3) The contract of insurance shall be concluded by the persons covered under Article 171 herein within fifteen days after commencement of the professional practice thereof.(4) The insurance shall be renewed annually without interruption until the person practises the respective activity.(5) Upon discontinuance of an activity subject to compulsory insurance, the person covered under Article 171 herein shall be obligated to contract an additional insurance covering a period of five years succeeding the discontinuance of the activity, in case the loss-inflicting act was performed after the retroactive date referred to in Paragraph (2).Article 173. (Amended, SG No. 65/2003) (1) A separate insurance may be agreed between the participants in construction covering the liabilities thereof for a specific work.(2) The contracting authority may require that the contractor contract an additional insurance covering damage to property sustained by the construction work, the materials, the mechanical equipment for construction and the furnishings of the construction site which has arisen in the course of construction, if paid by the contracting authority or owned thereby.Article 174. (Amended, SG No. 65/2003) (1) The state bodies and the contracting authority may require from the persons covered under Article 171 herein proof of the existence and validity of a contract of insurance (copies of insurance policies and documentary proof of insurance premiums paid). Any such documents shall be submitted within seven days after being requested in writing.(2) Should the contracting authority ascertain non-fulfilment of the obligation to contract and maintain an insurance by the persons covered under Article 171 herein, the said contracting authority may suspend all payments due thereby to the said persons.Chapter ElevenCOMPLETION OF CONSTRUCTION. USE PERMITArticle 175. (Amended, SG No. 65/2003) (1) Upon actual completion of a construction work, executive documents shall be prepared by the contractor or by a person designated by the contracting authority, showing the immaterial deviations from the cleared designs.(2) The executive documents shall contain a complete set of drawings on the actually performed building and erection works. The said documents shall be certified by the contracting authority, the developer, the person who has exercised designer supervision, by the natural person exercising technical control over the structural part, and by the person who has effected the construction supervision. Delivery shall be certified by a seal affixed by the relevant administration to all graphics and textual materials. The executive documents shall constitute an integral part of the construction file as issued.(3) Upon ascertainment of material deviations from the construction file as issued, the authority who has approved the designs shall be obligated:1. to take the actions referred to in Article 223 (3) herein: in the cases referred to in Items 5 to 8 of Article 154 (2) herein;2. to direct the drafting of a statement of ascertainment and to notify the authorities of the National Construction Control Directorate: in the cases referred to in Items 1 to 4 of Article 154 (2) herein.(4) Where the construction work has been executed in conformity with the development-project designs as approved, no executive documents shall be delivered.(5) The complete set of executive documents shall be submitted into the indefinite custody of the authority which has issued the building permit and, and, a specified portion of the said documentation as required, to the Geodesy, Cartography, and Cadastre Agency as well.Article 176. (1) (Amended, SG No. 65/2003) Upon completion of a construction work, the contracting authority, the designer, the developer and the person exercising construction supervision shall draft a statement of ascertainment certifying that the construction work has been executed in conformity with the development-project designs as approved, the executive documents as certified, the requirements to construction works covered under Article 169 (1) herein, and the terms and conditions of the contract as concluded. Memoranda on successfully conducted single trial runs of machinery and plant shall furthermore be attached to any such statement. Delivery of the construction work by the developer to the contracting authority shall furthermore be performed by the said statement.(2) In respect of construction works intended for manufacture and other specific purposes, depending on the stipulations in the contract, completion of construction shall be proved additionally through conduct of successful acceptance trials.(3) Where construction is performed by multiple developers, each one of them shall be obligated to conduct the trials of the portion of the construction work thereof upon completion of the construction of the said portion.(4) (Amended, SG No. 65/2003) In the cases where the trials fail, construction shall not be deemed to be completed and the contracting authority shall enjoy the rights covered under Article 265 of the Obligations and Contracts Act. (5) Should individual parts of a construction work be used separately, the building contract may provide that the trials of any such parts be conducted prior to the final completion of the entire project.Article 176a. (New, SG No. 76/2006) (1) (Supplemented, SG No. 79/2006) A technical passport for the construction works shall be prepared after the completion of any new construction, as well as after reconstruction, general renovation, major repairs, or existing construction remodelling. Technical passports shall not be issued for the construction works referred to in Chapter Three, Sections VII and VIII.(2) The technical passport of the construction works shall define all terms to perform any major or current repairs to the construction works, and shall contain data on all certificates issued for the construction works, required by other statutory instruments.(3) The technical passport of the construction works shall list all performed reconstructions, major repairs and remodelling, the construction works features compliance with the requirements of all effective statutory instruments and documents, as well as all measures necessary for their improvement.(4) The technical passport of the construction works shall be issued in two original copies - one for the contracting authority and one for the building permit issuing authority, and when the building permit has been issued by an authority under Article 5, Paragraph 7, a copy of the technical passport of the construction works shall be also submitted to the authority under Article 5, Paragraph 5. The contracting authority shall submit a notarized copy of the technical passport of the construction works to the Geodesy, Cartography, and Cadastre Agency.(5) Authorities under Article 5, Paragraphs 5 and 7 shall maintain an archive of all technical passports issued, and shall maintain a registry thereof.(6) The Minister of Regional Development and Public Works shall issue an ordinance, defining the scope and content of technical passports, as well as the procedure for the preparation, submission, registration, and storage thereof.Article 176b (New, SG No. 76/2006) (1) The technical passport of new construction works shall be prepared by the person exercising construction supervision, or by the technical manager - for all Category 5 construction works, before commissioning it by the competent authority.(2) The technical passport of existing construction works shall be prepared after inspection of the construction works to identify its features, related to the requirements under Article 169, Paragraphs 1 - 3, by the persons performing the inspection.Article 176c. (New, SG No. 76/2006) (1) Inspection of construction works shall be performed by a consultant, holding a licence issued by the Minister of Regional Development and Public Works, according to the procedure under Article 166, Paragraph 2, or by designers in various fields with full licensed designer qualifications.(2) When the inspection is performed by a consultant, it shall include natural persons, exercising technical control on the "Structural" part and included in a list prepared by the Chamber of Engineers in Investment Design, promulgated in State Gazette.(3) When the inspection is performed by designers, they shall include natural persons, exercising technical control on the "Structural" part, as well as designers in various fields with full licensed designer qualifications to evaluate the other construction works features under Article 169, Paragraphs 1 - 3.(4) The energy efficiency inspection shall be part of the general inspection of the construction works and shall be performed by natural or legal persons, meeting the requirements, defined in the Energy Efficiency Act. (5) The procedure to perform the construction works inspection shall be defined by the ordinance under Article 176a, Paragraph 6.Article 177. (Amended, SG No. 65/2003) (1) Upon completion of a construction work and finalization of the acceptance trials, where any such shall be necessary, the contracting authority shall register the commissioning of the work with the authority which has issued the building permit, submitting the final report referred to in Article 168 (6) herein, the contracts with the utility companies for coupling with the physical-infrastructure networks, and a document issued by the Geodesy, Cartography, and Cadastre Agency, to the effect that the requirement established under Article 175 (5) herein has been complied with.(2) Category One, Two and Three construction works shall be commissioned on the basis of a use permit issued by the authorities of the National Construction Control Directorate under terms and according to a procedure established by an ordinance of the Minister of Regional Development and Public Works.(3) Within seven days after receipt of a request, the authority which has issued the building permit, having satisfied itself that the documents have been submitted in a complete set, shall register the commissioning of the construction work and shall issue a commissioning certificate.(4) Where a technological period of time is required for verification of attainment of the design parameters under service conditions, the contracting authority may register the bringing of the construction work into preliminary operation.(5) The on-site plumbing and wiring systems and fixtures of a construction work shall be connected to the physical infrastructure public networks and facilities on the basis of a contract with the competent utility companies.(6) In respect of special-purpose installations related to national defence and security, the use permit for the construction work shall be issued by the Minister of Defence or by the Minister of Interior, as the case may be.Article 178. (Amended, SG No. 65/2003) (1) It shall be prohibited to use any construction work or part thereof prior to the commissioning of the said project or part by the competent authority referred to in Article 177 herein.(2) Category Six construction works shall not be subject to commissioning.(3) Construction works shall not be commissioned where:1. (supplemented, SG No. 61/2007) the actions projected in the vertical levelling part have not been performed and amenity planting has not been implemented under the design as approved;2. any existing buildings and structures, which are not included in the building-development mode, have not been removed even though projected for removal in the design permit as issued;3. the facades of the buildings and structures have not been completed conforming to the development-project design as approved.4. (new, SG No. 103/2005) the spatial-renewal action on the construction of streets, roads or lanes pursuant to Article 69 has not been effected in resorts, holiday villages, golf courses, aqua parks and other territories for recreational activity, linking the site with the street or road network and providing access to respective lot.(4) It shall be prohibited to use a construction work or any parts thereof for a purpose other than intended or in breach of the conditions for commissioning.(5) Upon any violation under Paragraphs (1) and (4), the Chief of the National Construction Control Directorate or an official authorized thereby, acting on the basis of a drafted statement of ascertainment, shall prohibit, by a reasoned order, the use of the construction works affected and shall direct the vacation thereof, a disconnection of the supply of the said projects with electricity, heat, running water, telephone communications etc. Any such direction shall be mandatory for the service providers and shall be complied with forthwith.(6) Upon any violation under Paragraphs (1) and (4) at special purpose installations related to national defence and security, the Minister of Defence or the Minister of Interior, as the case may be, shall prohibit, by a reasoned order, the habitation or use, as the case may be, of the construction works and shall direct the performance of the actions as shall be necessary for bringing the said construction works into conformity with the use permit as issued and the rest of the construction file.(7) After elimination of the reasons which have prompted the prohibition and after payment of the fines and fees due, the commissioning of the construction works shall be permitted or certified by the authorities referred to in Article 177 herein.Article 179. (Amended, SG No. 65/2003, repealed, SG No. 61/2007). Article 179a. (New, SG No. 106/2006, repealed, SG No. 61/2007). PART FOURREGIME AND LIMITATION OF REAL RIGHTS. CONDEMNATION ANDINDEMNIFICATIONChapter TwelveCREATION AND TRANSFER OF BUILDING RIGHTSArticle 180. (Amended, SG No. 65/2003) A right to build on a lot shall be created in accordance with an effective spatial development plan or design permit as issued by the Chief Architect of the municipality (or ward) where so provided for by the law.Article 181. (1) The right to construct a building or a part thereof may not be subject to a transfer transaction as from the time of creation of the said right and until completion of the rough construction work on the building.(2) (Amended, SG No. 65/2003) Upon completion of the rough construction work on any building, as ascertained by a memorandum of the municipal administration (or ward administration), the building as constructed or any self-contained parts thereof may be subject to a transfer transaction.Article 182. (1) (Previous Article 182, SG No. 65/2003) The right to perform construction works on another's regulated lot, as well as construction works beneath the surface of the ground, shall vest in any persons in favour of whom a building right or a right to heighten or extend a pre-existing building has been created.(2) (New, SG No. 65/2003, supplemented, SG No. 107/2003) The right to perform a construction work on another's lot and a construction work beneath the surface of the ground shall furthermore vest in any persons in favour of whom an order has been issued under Article 193 (3) and (4) herein or a servitude has been established under Article 64 and 26 of the Transitional and Final Provisions of the Energy Act. Any such persons shall be issued a building permit under Article 148 herein.Article 183. (Amended, SG No. 65/2003) (1) A mew construction work, or heightening or extending on a co-owned regulated lot may be performed by one or several co-owners on the basis of a notarized contract with the rest of the co-owners.(2) Heightening or extending of a condominium-project building shall be permitted on the basis of a notarized contract with the owner of the regulated lot for creation of a heightening or extending right and a declaration of consent bearing the notarized signatures of all condominium owners.(3) Where the State or a municipality is co-owner of a regulated lot, the contracts referred to in Paragraphs (1) and (2) shall be concluded in writing. Where the State or a municipality is owner of a property in a condominium-project building, the consent referred to in Paragraph (2) shall be in writing. The terms and a procedure for conclusion of contracts by the State and the municipalities under Paragraphs (1) and (2), as well as for granting consent under Paragraph (2), shall be established by the Regulations for Application of the State Property Act and by the ordinance referred to in Article 8 (2) of the Municipal Property Act, respectively.Article 184. (Repealed, SG No. 65/2003).Article 185. (1) No consent from the rest of the condominium owners shall be required upon redevelopment of own works, premises or parts thereof where:1. the intended purpose thereof is not altered;2. common premises and surface areas or parts thereof are not taken, and the intended purpose of any such premises and areas is not altered;3. the common parts of the building are not altered significantly;4. on-site wiring and plumbing systems are connected to public networks running through or next to the partition wall or through utility premises along a single vertical axis;5. a new wiring and/or plumbing system is laid through a common part which does not affect premises of individual owners;6. (new, SG No. 65/2004) the intended purpose of projects situated in non-residential buildings.7. (new, SG No. 103/2005) the redevelopment is effected under the conditions of Article 38, Paragraphs (5) and (6).(2) In cases other than such covered under Paragraph (1), there shall be required a resolution by the general meeting of owners, passed according to the established procedure, and an express written consent of all owners whereof the properties adjoin the work and, where common parts are taken, the consent of all owners expressed by means of notarized signatures.(3) (New, SG No. 65/2003) Where the remodelling design projects the incorporation of a common part in a condominium-project building into a self-contained work within the condominium project or the creation of a self-contained work out of a common part of a condominium-project building, a notarized contract for transfer of ownership shall be concluded with the rest of the condominium owners. A building permit shall be issued on the basis of the design as approved and of the said contract.(4) (New, SG No. 65/2003) The State and the municipalities shall conclude contracts under Paragraph (3) under terms and according to a procedure established by the Regulations for Application of the State Property Act and by the ordinance referred to in Article 8 (2) of the Municipal Property Act, respectively.(5) (Renumbered from Paragraph (3), SG No. 65/2003) A remodelling under Paragraphs (1) and (2) shall be permissible solely if no other technical solution is feasible and if the said remodelling conforms to the architectural, building, engineering, sanitation, hygiene and fire-protection rules and standard specifications and is executed in a manner most favourable for the property affected.(6) (Renumbered from Paragraph (4), SG No. 65/2003) In the cases under Paragraphs (1) and (2), the owner of the remodelled premises shall be obligated to repair all damages caused in connection with the building works, and Article 210 herein shall apply.(7) (New, SG No. 65/2003) Any remodelling referred to in Paragraph (3) shall be recorded in the cadastre, and the contracts referred to in Paragraphs (3) and (4) shall be entered in the property register.Article 186. (Amended, SG No. 65/2003) (1) Any alteration of existing shared wiring and plumbing systems or laying of new wiring and plumbing systems in co-owned buildings or in condominium-project buildings shall require the express written consent of all co-owners or all condominium owners, as the case may be.(2) Installation of a central-heating or gas-supply system in a co-owned building or in a condominium-project building shall require the express written consent of not fewer than two-thirds of all owners.Article 187. (Repealed, SG No. 65/2003, new, SG No. 61/2007) (1) Extensions and links to the pavement of the adjoining street, such as pedestrian passageways, colonnades and arcades facilitating pedestrian access in the depth of the block or along the length of the street, may be projected at the ground level of buildings in a medium high-rise or high-rise attached building-development mode by detailed plans in parts of regulated lots sited along the outer record lines.(2) The works referred to in Paragraph (1) may not exceed 30 per cent of the floor area of the buildings.(3) The owners of regulated lots and buildings may not impede or restrict the mass pedestrian access to the works referred to in Paragraph (1).(4) Works referred to in Paragraph (1) may alternatively be projected through modification of the effective detailed plans according to the procedure established by Article 135 (5) herein.(5) The owners of regulated lots and buildings referred to in Paragraph (1) shall be paid a lump-sum compensation by the municipality according to the procedure established by Article 210 herein.Article 188. (Repealed, SG No. 65/2003, new, SG No. 61/2007) (1) Building development under and over streets and other open spaces may be projected by detailed plans.(2) The owners of construction works under or over streets and other open spaces shall be obligated to afford a possibility for unimpeded operation and maintenance of the works referred to in Paragraph (1) and of the appertaining physical infrastructure. The construction works may not result in deterioration of the conditions for use or building development of the works referred to in Paragraph (1).(3) Construction works under a street and other open spaces shall be linked to one or more of the blocks bounded by the street by means of passageways in regulated lots, buildings or in the adjoining pavement area, which are part of the street regulation plan. The construction works shall be plotted in the cadastre with an identifier and shall be entered in the property register on a separate property record.(4) Construction works under a street and other open spaces may be linked to opposite non-residential buildings.(5) Construction works under a street or other open spaces which are owned by the municipality or by the State shall be performed on the basis of a building right created according to the procedure established by the Municipal Property Act or by the State Property Act. Article 189. (Repealed, SG No. 65/2003, new, SG No. 61/2007) (1) Specific detailed plans may project subterranean construction of transport physical infrastructure and the appertaining elements constituting property of the State or of the municipalities, which are not linked to the lots located on the surface and any semi-subterranean and above-ground construction works.(2) Interested parties under the said plans shall be the owners and the holders of limited rights in rem to lots and semi-subterranean and above- ground construction works sited immediately above the subterranean construction works referred to in Paragraph (1).(3) The subterranean construction works referred to in Paragraph (1) may not result in deterioration of the conditions for use or building development of the lots on the surface.(4) The owners and holders of limited rights in rem to any lots and semi-subterranean and above-ground construction works sited immediately above the subterranean construction works referred to in Paragraph (1) shall be paid a lump-sum compensation by the owner of the subterranean construction work according to the procedure established by Article 210 herein prior to commencement of construction.Chapter ThirteenSERVICE ROADS. PASSAGE THROUGH OTHER PERSONS' LOTS AND AFFORDINGACCESS. REMOVAL OF CONSTRUCTION WORKSSection IService RoadsArticle 190. (1) Where, according to a detailed plan, certain regulated lots front solely on newly designed streets, the municipality may build service roads prior to the opening of the said streets providing access to the relevant properties.(2) Where necessary, service roads may be built in regulated parts of nucleated and dispersed settlements in respect whereof a new detailed plan will be created, as well as in yet unregulated parts incorporated into a master plan.(3) Service roads must, as far as possible, follow the layout of the new streets according to the detailed plan or, respectively, of the streets according to the draft plan or according to investigation as conducted. The service roads shall be built in such a manner as shall not affect pre-existing buildings and structures, or perennial ornamental trees.(4) Ownership of the parts of lots occupied by service roads shall subsist. Service roads shall be used until the opening of the new streets according to the detailed plan.(5) Absent a technically feasible alternative, service roads shall furthermore be built to provide access to legally authorized construction works outside urbanized-area boundaries until grant of a use permit for the said projects, together with the permanent roads therefor provided.(6) (Supplemented, SG No. 103/2005) Service roads shall be built on the basis of a written agreement between interested owners of lots with notarized signatures and, in the case of absence of agreement - on the basis of an order of the municipality mayor.(7) Emergency access routes shall be built on the basis of an order issued by the competent authorities as designated by an express statute.Article 191. (1) Compensation of title holders for the detriment caused by the building of service roads shall be for the account of the owners of the lots which shall be accessed thereby.(2) Compensation for the parts of lots used for service roads shall be determined for the relevant year and shall be paid in equal monthly instalments. instalments Compensation for any improvements destroyed in connection with service roads shall be paid in cash prior to the taking of the lots.(3) Compensation for emergency access routes shall follow the procedure established by an express statute.(4) (Amended, SG No. 65/2003) The amount of compensation shall be determined according to the procedure established by Article 210 herein.Section IIRight of Passage through Other Persons' Lots. Laying of Networkand Facility Branches through Other Persons' Corporeal ImmovablesArticle 192. (Amended, SG No. 65/2003) (1) A right of passage through another's lot shall be created by a written contract bearing notarized signatures.(2) Where no agreement has been reached among the owners of the lots and another economically feasible technical solution is apparently unavailable, the right of passage through another's lot shall be created by an order of the municipality mayor.(3) The right of passage through state-owned or municipal-owned lots shall be created where another economically feasible technical solution is apparently unavailable, by an order of the Regional Governor or by order of the municipality mayor, as the case may be.(4) The right of passage may not result in deterioration of the conditions for building development of the lots, in hindrance of the established manner of durable use of the lots, or in affecting authorized construction works or existing buildings, save as where so expressly agreed between the owners in the contract referred to in Paragraph (1).(5) Deterioration of the conditions for building development and use of state-owned or municipal-owned lots upon creation of a right of passage to other properties shall be permissible as an exception, absent a technically feasible alternative or where another economically feasible technical solution is apparently unavailable, by permission of the Minister of Regional Development and Public Works in respect of state-owned lots or by permission of the Municipal Council in respect of municipal-owned lots.(6) The price of the right of passage referred to in Paragraphs (2) and (3)shall be fixed according to the procedure established by Article 210 herein and shall be paid prior to the issuance of the orders referred to in Paragraphs (2) and (3).(7) Any contract referred to in Paragraph (1) and any order referred to in Paragraph (2) shall be entered into the property register on the record of the lot constituting the dominant estate and on the record of the lot constituting the servient estate in respect of the right of passage as created.(8) Any order referred to in Paragraph (3) shall be entered into the property register on the record of the lot constituting the dominant estate, on the record of the state-owned or municipal owned lot constituting the servient estate in respect of the right of passage as created, and on the state or municipal property registration certificate.Article 193. (Amended, SG No. 65/2003) (1) A right to lay branches from physical-infrastructure public networks and facilities through other persons' lots shall be created by a written contract bearing notarized signatures.(2) Any contract referred to in Paragraph (1) shall confer on one contracting party a right to construct and acquire ownership of the branch from the physical-infrastructure public network in the lot owned by the other contracting party.(3) Where no agreement has been reached among the owners of the lots and another economically feasible technical solution is apparently unavailable, the right of laying shall be created by an order of the municipality mayor.(4) The right to lay branches from physical-infrastructure public networks and facilities through state-owned or municipal owned lots shall be created where another economically feasible technical solution is apparently unavailable, by an order of the Regional Governor or by order of the municipality mayor, as the case may be.(5) The right to lay branches from physical-infrastructure public networks and facilities may not result in deterioration of the conditions for building development of the lots, in hindrance of the established manner of durable use of the lots, or in affecting authorized construction works or existing buildings, save as where so expressly agreed between the owners in the contract referred to in Paragraph (1).(6) Deterioration of the conditions for building development and use of state-owned or municipal-owned lots by reason of laying of branches from physical-infrastructure public networks and facilities to other lots shall be permissible as an exception, absent a technically feasible alternative or where another economically feasible technical solution is apparently unavailable, by permission of the Minister of Regional Development and Public Works in respect of state-owned lots or by permission of the Municipal Council in respect of municipal-owned lots.(7) A building permit for the branches from physical infrastructure public networks and facilities shall be issued by the holder of the right created under Paragraphs (1), (3) and (4).(8) The price of the right created under Paragraphs (3) and (4) shall be fixed according to the procedure established by Article 210 herein and shall be paid prior to the issuance of the orders referred to in Paragraphs (3) and (4).(9) Any contract referred to in Paragraph (1) and any order referred to in Paragraph (3) shall be entered into the property register on the record of the lot constituting the dominant estate and on the record of the lot constituting the servient estate in respect of the right to lay branches from the physical infrastructure public networks and facilities as created.(10) Any order referred to in Paragraph (4) shall be entered into the property register on the record of the lot constituting the dominant estate, on the record of the state-owned or municipal owned lot constituting the servient estate in respect of the right to lay branches from the physical-infrastructure public networks and facilities as created, and on the state or municipal property registration certificate.(11) In case of disaster, accident or catastrophe, branches from physical-infrastructure public networks and facilities to specified projects through other persons' corporeal immovables may be laid temporarily, until mitigation of the effects of the disaster, accident or catastrophe, on the basis of an order issued by competent authorities as designated by a special statute A building permit shall not be issued in any such case.(12) The owners of the properties affected shall be compensated for any detriment sustained under Paragraph (11) immediately after the disaster, accident or catastrophe is brought under control under the terms and according to the procedure established by a special statute.Article 194. (1) The owners and occupants of any corporeal immovables shall be obligated to afford unimpeded access thereto for the conduct of licensed or prescribed investigation, design, building, erection, control and other works in connection with spatial development, on the basis of an order by the municipality mayor and, where so prescribed by the law, from an order of the Chief of the National Construction Control Directorate.(2) The owners of corporeal immovables shall be obligated to afford unimpeded access thereto for conduct of disaster, accident and catastrophe response and recovery operations and implementation of projects for comprehensive protection against geologic hazards (landslide containment, stream-bank and seashore stabilization, and other drainage and consolidation works). Operations and projects will be executed in a manner unaffecting the principal-development works. Access shall be afforded by an order of the authorities referred to in Paragraph (1), except as otherwise provided in a special statute.(3) Upon failure to fulfil the obligations under Paragraph (1) and (2), the owners shall be compelled to afford access to the relevant corporeal immovables according to an administrative procedure and, where necessary, with police assistance.(4) Upon completion of the works covered under Paragraph (1) and (2), the person whereto access has been afforded shall be obligated to repair forthwith all damages caused to the corporeal immovable in connection with the execution of the works. Should any such damages be irreparable, the title holders shall be indemnified for the detriment sustained.(5) The amount of compensation shall be determined according to the procedure established by Article 210 herein and shall be paid within one month after the effective date of the appraisal. For more information visit www.solicitorbulgaria.com id: 302 Fri, 01 Aug 2008 01:48:42 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-spatial-development-act-part-2 http://web.solicitorbulgaria.com/index.php/bulgarian-spatial-development-act-part-2 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/SPATIAL_DEVELOPMENT_ACT.JPG EUR http://web.solicitorbulgaria.com/index.php/bulgarian-spatial-development-act-part-2 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Fri, 01 Aug 2008 00:56:29 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-chamber-of-builders-act http://web.solicitorbulgaria.com/index.php/bulgarian-chamber-of-builders-act http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/Chamber_of_Builders_Act.JPG EUR http://web.solicitorbulgaria.com/index.php/bulgarian-chamber-of-builders-act legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Chapter OneGENERAL PROVISIONSSubject of regulationArticle 1. (1) This act regulates public relations, which are related to the realization of the electronic commerce.(2) For the purposes of this act, electronic commerce shall mean providing services for the information society.(3) Services for the information society are such services, which are usually onerous and are provided from a distance by electronic means upon an explicit declaration of the recipient of the service.(4) The provisions of this act shall not apply in the case of regulating relations in providing services for the information society, connected with:1. assessment and collection of the public receivables;2. (amended, SG No. 41/2007) personal data protection, including in the field of electronic communications;3. agreements, decisions and coordinated practices within the meaning of Article 9 of the Protection of Competition Act; 4. notarial practice and other professional activities, related to the exercising of official… For more information visit http://www.solicitorbulgaria.com id: 288 Chapter OneGENERAL PROVISIONSSubject of regulationArticle 1. (1) This act regulates public relations, which are related to the realization of the electronic commerce.(2) For the purposes of this act, electronic commerce shall mean providing services for the information society.(3) Services for the information society are such services, which are usually onerous and are provided from a distance by electronic means upon an explicit declaration of the recipient of the service.(4) The provisions of this act shall not apply in the case of regulating relations in providing services for the information society, connected with:1. assessment and collection of the public receivables;2. (amended, SG No. 41/2007) personal data protection, including in the field of electronic communications;3. agreements, decisions and coordinated practices within the meaning of Article 9 of the Protection of Competition Act; 4. notarial practice and other professional activities, related to the exercising of official authority;5. representation before the court;6. games of chance.Freedom of providing services for the information societyArticle 2. The services for the information society shall be provided freely, unless otherwise is provided by law.Provider and recipient of services for the information societyArticle 3. (1) Service provider shall be any natural or legal person that provides services for the information society.(2) Service recipient shall be any natural or legal person that uses information society services with a professional or any other purpose, including for the purposes of seeking information or granting access to it.Chapter TwoOBLIGATIONS FOR GRANTING ACCESS TO INFORMATIONGeneral informationArticle 4. (1) The provider of information society services shall be under the obligation to grant the service recipients and the competent authorities unobstructed, direct and permanent access to following information:1. its name or title;2. its permanent address or its seat and registered office;3. the address where it operates if it differs from the address under item 2;4. contact information, including telephone number and e-mail address for the purposes of establishing direct and timely contact with it;5. data for registration in a commercial or any other public register;6. information for the body, which exercises control over its activities, if these activities are subject to notification, registration or licensing regime;7. when it exercises a regulated profession - information for the chamber, the professional union or the organization of which the provider is a member or with which it is registered, the professional title and the country in which it has been granted, as well as a reference to the applicable provisions regarding the right to exercise the craft or the profession and an explanation of the means to access them;8. respective indication if it has been registered under the Value Added Tax Act; 9. any other information, provided for in a statutory instrument.(2) Where the information society services refer to prices, these are to be indicated in a clear and unambiguous manner. The service provider shall be under the obligation to indicate whether or not the prices are inclusive of taxes, fees and expenditures, which form the final price.Commercial communicationArticle 5. (1) Commercial communication within the meaning of this Act is advertising or any other communication, designed to promote, directly or indirectly, the goods, services or reputation of the person, performing a commercial or craft activity or exercising a regulated profession.(2) The independent usage of the following does not constitute commercial communication within the meaning of Article 1:1. information, assuring direct access to the person's activities, like the name of its domain or e-mail address;2. messages for the goods, services or for the reputation of the person, the information for which has been collected in an independent manner with no payment made for this.(3) The commercial communication that is a part of or constitutes an information society service must meet the following requirements:1. to be easily identifiable as commercial ones;2. to enable clear identification of the natural or legal persons on whose behalf it has been made;3. to define clearly and unambiguously the conditions for participation in promotional offers such as discounts, premiums and gifts, if such are included;4. to assure easy access to clear and unambiguous conditions for participation in competitions and games with declared prizes, if they contain such information;5. to contain any other information, stipulated in other statutory instruments.Unwanted commercial communicationArticle 6. (1) A service provider who sends unwanted commercial communication via e-mail without addressee's preliminary consent shall be under the obligation to provide clear and unambiguous identification of the commercial communication as an unwanted one yet on the entrance with the receiver.(2) (Amended, SG No. 105/2006, effective 24.12.2006) Commission for Consumer Protection shall keep an electronic register of the e-mail addresses of the legal persons that do not wish to receive unwanted commercial communication, following a procedure established in a regulation adopted by the Council of Ministers.(3) Sending unwanted commercial communication to e-mail addresses, entered into the register under paragraph (2), shall be forbidden.(4) Sending unwanted commercial communication to consumers without their preliminary consent shall be forbidden.Commercial communication for persons with regulated professionsArticle 7. (1) Persons, exercising regulated professions, may use commercial communication as part of or as an information society service.(2) The Commercial communication under paragraph (1) shall not contradict the professional rules and the Ethic codes for behaviour of the persons, exercising regulated professions, in particular the rules for independence, dignity and honour of the profession, professional secret and loyal behaviour to the clients and to the other members of the profession.Chapter ThreePROVIDER'S OBLIGATIONS UPON CONCLUSION OF CONTRACTS THROUGHELECTRONIC MEANSObligations for granting access to informationArticle 8. (1) Upon an offer for concluding a contract through electronic means, the service provider shall inform in advance the service recipient by clear, comprehensible and unambiguous manner about:1. the technical steps of the conclusion of the contract and their legal consequences;2. whether or not the contract will be kept by the service provider and what shall be the way to access it;3. the technical means for identifying and correcting input errors, before the statement for conclusion of the contract has been made;4. languages, offered for the conclusion of the contract.(2) The service provider shall be under the obligation to indicate the way for electronic access to the Ethic code for behaviour that he observes.Access to the general terms and the content of the contractArticle 9. The service provider shall be under the obligation to place at recipient's disposal the general terms and the content of the contract in a way that allows him to store and reproduce them.Obligations upon the statement for conclusion of the contractArticle 10. (1) The service provider shall make appropriate, efficient and accessible technical means available to the recipient of the service to enable him to identify and correct input errors, before the statement for conclusion of the contract is made by the service recipient.(2) The service provider shall acknowledge the receipt of the recipient's statement for conclusion of the contract by electronic means without any unjustified delay.Receipt of the statementArticle 11. The statement for conclusion of the contract and the acknowledgement of receipt are deemed to be received when the parties to whom they are addressed are able to access them.ExclusionsArticle 12. (1) The provisions of Articles 8 and 10 shall be applied mandatory in the cases where the service recipient is a consumer.(2) The provisions of Articles 8 and 10 shall not apply to contracts that parties enter into exclusively by electronic mail or other similar instruments for exchange of individual communication.Chapter fourLIABILITY INCURRED BY THE PROVIDERS OF THE SERVICE FORTHE INFORMATION SOCIETYLiability upon providing services for access and transmissionArticle 13. (1) (Amended, SG No. 41/2007) Upon providing access to or transmission trough electronic communication network the service provider shall not be liable for the content of the information transmitted and for the activities of the recipient of the service, if the provider:1. does not initiate the transmission of the information;2. does not select the receiver of the information transmitted, and3. does not select or modify the transmitted information.(2) (Amended, SG No. 41/2007) Providing access to or transmission through electronic communication network referred to in paragraph (1) also covers an automatic, intermediate and transient storage of the transmitted information, as this shall take place for the sole purpose of carrying out the transmission trough the electronic communication network and the information shall not be stored for any period longer than the one that is reasonably necessary for the transmission.Liability upon providing services for automatedsearch of informationArticle 14. (1) A service provider who provides automated search of information shall not be liable for the content of the derived information if the provider:1. does not initiate the transmission of the derived information;2. does not select the receiver of the derived information, and3. does not select or modify the derived information.(2) Paragraph (1) shall not apply if the information resource from which the information is derived belongs to the provider or related to him person.Liability upon intermediate storage (caching)Article 15. (Amended, SG No. 41/2007) A service provider who transmits information entered by a recipient of the service into a electronic communication network shall not be liable for the automatic, intermediate and temporary storage of such information or for the content of such information, needed for the sole purpose of making more efficient the information's onward transmission to other recipients of the service upon their request, if the service provider:1. does not modify the information;2. complies with conditions for access to the information;3. complies with rules regarding the update of the information, specified in a manner widely recognized;4. does not interfere with the lawful use of widely recognized technology to obtain data for the use of the information;5. acts expeditiously to remove or to disable access to information he has stored upon obtaining an actual knowledge of the fact that:a) the information has been removed from the network of the primary source, or access to it has been disabled, orb) there is an act of a competent state authority that has ordered such removal of the information or disablement of the access to it, when this has been set forth in a law.Liability for storage of somebody else's information (hosting) and for electronic references to somebodyelse's information (linking)Article 16. (1) A provider of a service, that constitutes storage of information, when such storage takes place at the request of a recipient of the service who has supplied the information, shall not be liable either for the content of the information stored or for the activities of the recipient of the service, if the service provider:1. does not have an actual knowledge of the unlawful character of the activities or the information, or2. is not aware of the facts or circumstances from which the unlawfulness of the activities or information is apparent.(2) Paragraph (1) shall not apply if:1. the recipient of the service is related to the service provider person;2. the provider has learned or has been informed about the unlawful character of the information or has been informed by a competent state authority about the unlawful character of the activities of the recipient and has not undertook immediate actions to remove or to disable the access to the information; this does not exempt the provider from the derived from a law obligation to save the information.(3) Upon a request of any competent state authority in the cases, established by the law, the provider shall be under the obligation to provide any information concerning the recipient of the service and his activities.(4) Paragraphs (1) - (3) shall apply, mutatis mutandis, in the cases where the service provider leaves access to somebody else's information through electronic link.Absence of a general obligation to monitor the informationArticle 17. The service provider is not obligated either to monitor the information that he stores, transmits or makes accessible when providing services for the information society or to be in search of facts and circumstances that indicate unlawful activities.Services provided free of chargeArticle 18. The provisions of Articles 13 - 17 shall apply also to providers of information society services that are provided free of charge.Chapter fiveAPPLICABLE LAWApplicable law in providing information society servicesArticle 19. (Effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union)(1) The requirements for commencement and fulfilment of the activity for providing information society services shall be regulated by the law of the country where the place of business of the service provider is, if it is within the territory of a state - member of the European Union.(2) A place of business is the place where the service provider carries out an economic activity for unlimited period of time. The presence or the use of technical means and technologies, which are necessary the service to be provided are not enough in themselves to determine the place of business of the service provider.(3) Paragraphs (1) and (2) shall not apply in respect to:1. the requirements concerning characteristics of the goods and their delivery or concerning the services that are not provided by electronic means;2. copyright and neighbouring rights, industrial property rights, databases rights and the rights of the topologies of integrated circuits;3. emissions of electronic money, issued by issuers of instruments for electronic money, which are exempted from the common requirements for licensing;4. the legal regulations, concerning the advertisement of the securities, issued by investment companies and common funds for collective investment, of the country where this securities are being traded;5. the insurance contracts;6. the freedom of the parties to choose the applicable to the contract law;7. the contractual obligations on the consumer contracts;8. the requirements for the form for validity of the contracts, which institute or transfer rights in rem, which are regulated by the law of the country where the estate is located;9. the permissibility of the unwanted commercial communication, which are being sent via e-mail.Chapter sixCONTROL AND INTERACTIONControlArticle 20. (1) (Previous text of Article 20, amended, SG No. 105/2006) The Commission for Consumer Protection shall exercise comprehensive control over the observance of this act and the regulation referred to in Article 6, paragraph (2).(2) (New - SG No. 105/2006) While performing their office duties, the officials of the Commission for Consumer Protection shall be entitled to:1. access to all the documents directly or indirectly relevant to a breach of this Act or of the legislation of the EU Member States transposing the requirements of Directive 2000/31/EC of the European Parliament and of the Council on Electronic Commerce, regardless of the form of the document;2. order any person to provide information on a breach as per Item 1, that he knows of;3. carry out on-site inspections.(3) (New - SG No. 105/2006) When performing their office duties the officials under Paragraph 2 shall be under the obligation to keep the office, bank, insurance, professional or trade secret and not to disclose data from the inspections prior to their closure, as well as not to use the information from the inspection for purposes different than the originally intended ones.(4) (New - SG No. 105/2006) The Chairperson of the Commission for Consumer Protection shall have the right to:1. order the offender in writing to discontinue the breach as per Item 1 of Paragraph 2;2. require from the offender to make a statement that he will discontinue the breach as per Item 1 of Paragraph 2 and, if necessary, oblige him to disclose the statement in the public domain;3. order the termination or prohibition of any breach as per Item 1 of Paragraph 1 and, if necessary, disclose the order for termination or prohibition of the breach in the public domain.Interaction and co-operationArticle 21. (1) (Amended, SG No. 105/2006) The Chairperson of the State Agency for Information Technology and Communications shall interact and co- operate with the competent authorities of the states - members of the European Union and with the European Commission on issues related to the information society services.(2) (Amended, SG No. 105/2006) The Chairperson of the Commission for Consumer Protection shall arrange for and maintain information for the purposes of this Act, which shall be uploaded on the official web site of the Commission for Consumer Protection and shall contain:1. general information on the rights and obligations of the suppliers and receivers of information society services and the procedure of resolving disputes between them;2. information on the authorities and persons that can provide additional information or render practical assistance.(3) (Amended, SG No. 105/2006) The State Agency for Information Technology and Communications and the Commission for Consumer Protection shall make it possible that they be contacted on the issues as per Paragraphs 1 and 2, on which they are competent, at least via electronic means.Chapter sevenDISPUTESClaims for protection of the consumersArticle 22. Consumer's protection commission and the associations for protection of the consumers shall bring actions for discontinuance or prohibition of acts and commercial practices under this act, which infringe on the collective interests of consumers, and actions for compensation in accordance with the terms and procedures established by Chapter nine, Section III of the Consumer Protection act. Chapter eightADMINISTRATIVE PENAL PROVISIONSArticle 23. (1) Service provider who have violated or allowed a violation of Article 4, Article 5, paragraph (3), Article 8, paragraph (1), Article 9 and Article 10 shall be imposed a fine in amount from BGN 200 to 1,000, unless the act constitutes a criminal offence.(2) In the cases referred to in paragraph (1) if the offender is a legal person or a sole proprietor, a property sanction amounting from BGN 500 to 2,500 shall be imposed.(3) In case of repeated violation the fine under paragraph (1) shall be amounting from BGN 500 to 1,500 and the property sanction under paragraph (2) - from BGN 1,000 to 4,000.Article 24. (1) Service provider who have violated or allowed a violation of Article 6, paragraphs (1), (3) or (4) shall be imposed a fine in amount from BGN 250 to 1,500, unless the act constitutes a criminal offence.(2) In the cases referred to in paragraph (1) if the offender is a legal person or a sole proprietor, a property sanction amounting from BGN 500 to 2,000 shall be imposed.(3) In case of repeated violation the fine under paragraph (1) shall be amounting from BGN 500 to 2,500 and the property sanction under paragraph (2) - from BGN 1,000 to 4,000.Article 24a. (New, SG No. 105/2006) (1) In case of a failure to execute an order as per Article 20, Paragraph 2, Item 2 and Paragraph 4, the culpable persons shall be sanctioned to pay a fine in the amount of BGN 250 to 1,000, while sole traders and legal persons shall be sanctioned to make a penalty payment in the amount of BGN 500 to 2,000.(2) In case of a repeat offence under Paragraph 1, the culpable persons shall be sanctioned to pay a fine, while sole traders and legal persons shall be sanctioned to make a penalty payment in a double amount.Article 25. (1) (Amended, SG No. 105/2006, effective 24.12.2006) The penalty determination acts shall be drawn up by officials specified by the chairman of the Commission for Consumer Protection.(2) (Amended, SG No. 105/2006, effective 24.12.2006) The penal ordinances shall be issued either by the chairman of the Commission for Consumer Protection or by authorized by him person - member of the commission.(3) Determining the violations, issuance, appeal and implementation of the penal ordinances shall be performed following the procedure of the Administrative Violations and Sanctions Act. SUPPLEMENTARY PROVISION 1. Within the meaning given by this Act:1. "Providing services from a distance" is providing services when the parties are not at the same time in the same place.2. "Providing services by electronic means" is providing services while each of the parties uses devices for electronic processing, including digital compression and storage of information and the service is realized entirely by using a wire, radio-waves, optical or other electromagnetic means.3. " By explicit declaration of the recipient of the service" means that the service shall be provided only when an explicit statement that declares the request for use of the service has been made by the receiver.4. "Consumer" is a consumer within the meaning of 13, item 1 of the supplementary provisions of the Consumer Protection Act. 5. "Related to the service provider person" is a related person within the meaning of 1 of the supplementary provisions of the Commerce Act. 6. "Name of domain" is a letter or letter-figure designation of an electronic address which allows the identification of a resource, computer or a group of computers within the internet by means of standardized internet protocol for data transmission.7. "Regulated profession" is a regulated profession within the meaning of 4c of the supplementary provisions of the Higher Education Act. 8. "E-mail" is an electronic instrument for storage and transfer of electronic communication via the internet through standardized protocols.9. "Electronic link" means a connection, which is indicated on a certain web site, that allows automated reference to other web site, information resource or object trough standardized protocols.10. (New, SG No. 105/2006) "Repeat" offence shall be the one committed within a period of one year after the effectiveness date of the penalty decree imposing a penalty for a violation of the same kind.FINAL PROVISIONS 2. In the Civil Procedure Code (Promulgated in the Transactions of the Presidium of the National Assembly No. 12 of 1952; amended in No. 92 of 1952, No. 89 of 1953, No. 90 of 1955, No. 90 of 1956, No. 90 of 1958, Nos. 50 and 90 of 1961; corrected in No. 99 of 1961; amended in the State Gazette No. 1 of 1963, No. 23 of 1968, No. 27 of 1973, No. 89 of 1976, No. 36 of 1979, No. 28 of 1983, No. 41 of 1985, No. 27 of 1986, No. 55 of 1987, No. 60 of 1988, Nos. 31 and 38 of 1989, No. 31 of 1990, No. 62 of 1991, No. 55 of 1992, Nos. 61 and 93 of 1993, No. 87 of 1995, Nos. 12, 26, 37, 44 and 104 of 1996, Nos. 43, 55 and 124 of 1997, Nos. 21, 59, 70 and 73 of 1998, Nos. 64 and 103 of 1999, Nos. 36, 85 and 92 of 2000, No. 25 of 2001, Nos. 105 and 113 of 2002, Nos. 58 and 84 of 2003, Nos. 28 and 36 of 2004, Nos. 38, 42, 43, 79, 86, 99 and 105 of 2005, Nos. 17, 33, 34, 36 and 37 of 2006), in Article 126a, paragraph 3 on the end shall be added "as well as the climes resulting from providing services for the information society under the Electronic Commerce Act". 3. In the Consumer Protection Act (Promulgated, State Gazette No. 99 of 2005, amended, SG No. 30 of 2006) in Article 186, paragraph 2 the following amendments and supplements shall be made:1. A new item 5 shall be created:"5. Electronic Commerce Act;".2. Former item 5 shall be renumbered into item 6. 4. In the Telecommunications Act (Promulgated State Gazette No. 88 of 2003, amended SG No. 19, 77, 88, 95, 99 and 105 of 2005, SG No. 17, 29 and 34 of 2006) in Article 19 a new paragraph 5 shall be created:"(5) The commission shall control the activities upon providing information society services and shall keep a register of the legal persons, which do not wish to receive unwanted commercial communication, following the procedure established in the Electronic Commerce Act." 5. The Council of Ministers shall adopt the regulation referred to in Article 6, paragraph (2) within six months after the promulgation of this Act in the State Gazette. 6. This Act shall enter into force 6 months after the promulgation thereof in the State Gazette, except for Article 19, which shall take effect as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union.This Act was adopted by the National Assembly on 9 June 2006 the official seal thereof was affixed hereunder. For more information visit www.solicitorbulgaria.com id: 288 Wed, 30 Jul 2008 07:43:20 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-electronic-commerce-act http://web.solicitorbulgaria.com/index.php/bulgarian-electronic-commerce-act http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/ELECTRONIC_COMMERCE_ACT.jpg EUR http://web.solicitorbulgaria.com/index.php/bulgarian-electronic-commerce-act legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Chapter OneGENERAL PROVISIONSubjectArticle 1. This Act shall provide for the commercial registration, the keeping, storage and access to the commercial register, as well as the validity of entries, striking off and disclosures therein.DefinitionArticle 2. (1) The Commercial Register shall be a standard centralized electronic database containing the entered circumstances referred to in Article 4 and the disclosures referred to in Article 5, which shall be operated by an information system.(2) A separate file in electronic form shall be kept for each trader and branch of foreign trader.Keeping and Storage of Commercial RegisterArticle 3. (1) The Commercial Register shall be kept by the Registry Agency with the Minister of Justice, hereinafter referred to as the "Agency"(2) The Commercial Register shall be stored by the Agency in a manner guaranteeing the security of the information contained therein.(3) The Agency shall provide automated submission of information as regards entered traders,… For more information visit http://www.solicitorbulgaria.com id: 289 Chapter OneGENERAL PROVISIONSubjectArticle 1. This Act shall provide for the commercial registration, the keeping, storage and access to the commercial register, as well as the validity of entries, striking off and disclosures therein.DefinitionArticle 2. (1) The Commercial Register shall be a standard centralized electronic database containing the entered circumstances referred to in Article 4 and the disclosures referred to in Article 5, which shall be operated by an information system.(2) A separate file in electronic form shall be kept for each trader and branch of foreign trader.Keeping and Storage of Commercial RegisterArticle 3. (1) The Commercial Register shall be kept by the Registry Agency with the Minister of Justice, hereinafter referred to as the "Agency"(2) The Commercial Register shall be stored by the Agency in a manner guaranteeing the security of the information contained therein.(3) The Agency shall provide automated submission of information as regards entered traders, branches of foreign traders and the circumstances related thereto and the acts announced in the Commercial Register, to the National Revenue Agency, as well as to other subjects established by a law.Circumstances Liable to EntryArticle 4. Traders, branches of foreign traders and circumstances related thereto, for which there are provisions of a law that they are liable to be entered, shall be entered in the Commercial Register.Acts Liable to NotificationArticle 5. Acts pertaining to the traders and branches of foreign traders for which it is provided by a law that they are liable to notification shall be disclosed in the Commercial Register.Obligation for Declaration and PresentationArticle 6. (1) Each trader shall be obligated to request entry into the Commercial Register, declaring circumstances liable to entry and presenting the acts liable to notification.(2) Any person obligated to apply for entry of circumstance or to present acts at the Commercial Register shall do so within seven days of the onset of said circumstance, respectively the adoption of the act, except if another time limit has not been defined by a law.(3) (Amended, SG No. 105/2006) The acts under Article 40, paragraphs 1 - 3 of the Accountancy Act shall be declared and submitted for disclosure to the Commercial Register in compliance with the procedure and terms under the Accountancy Act. Entry ActionArticle 7. (1) The entered circumstance shall be considered known to the third parties in good faith from the moment of entry. Prior to the expiry of 15 days from entry it may not be relied on as against third parties who prove that it was impossible for them to have knowledge thereof.(2) The third parties may refer to a circumstance liable to entry, although that entry has not yet been made, except if a law does not explicitly provide for it to cause action following entry.Action of ExpungementArticle 8. Expungement of entry shall terminate future action of entry.Action of DisclosureArticle 9. (1) Disclosure shall give publicity of the act disclosed.(2) The acts presented under Article 5 shall be considered to have become known to third parties from the moment of notification.Confidence in Commercial RegisterArticle 10. (1) Third parties in good faith may refer to the entry, as well as the notification even if the entered circumstance, respectively the act announced, does not exist.(2) Non-entered circumstances shall be considered non-existent for the third parties in good faith.PublicityArticle 11. The Commercial Register shall be public. Any person shall have the right to free access thereto and to the documents on the basis of which the entries, expungements and disclosures have been made.FeesArticle 12. (1) A state fee by a tariff approved by the Council of Ministers shall be charged for entry into the Commercial Register, issuance of certificate, preservation of business name, as well as provision of access to the database.(2) The Agency shall provide specialized services for automated access to the Commercial Register in return for a fee according to the tariff referred to in Paragraph (1).(3) Access to the Commercial Register by official means of state authorities, organs of local self-government and local administration and the persons who have been commissioned to perform a public function shall be free of charge. The procedure and manner of affecting thereof shall be provided by an act of the Council of Ministers.Chapter TwoREGISTER PROCEDUREApplicationArticle 13. (1) Entry, expungement and disclosure shall be made on the basis of an application by form.(2) The application shall contain:1. data about applicant;2. data about the trader or the branch of a foreign trader on whose case an entry, expungement or notification is requested;3. circumstance liable to entry, the entry whose expungement is requested or the act liable to disclosure and4. signature of applicant.(3) The documents, respectively the act liable to disclosure according to the requirements of the law shall be attached to the application.(4) The applications and the acts of court on paper means shall be submitted at any territorial unit of Agency according to the seat of district courts..(5) The applicant shall sign a declaration concerning the veracity of circumstances declared thereby or concerning the adoption of the acts submitted.(6) The personal identity of applicant shall be checked at acceptance of application.Acts of CourtArticle 14. Entry, expungement and disclosure shall be effected immediately and on the basis of acts of court in the cases provided by a law. The court shall send the court act to the Agency officially.ApplicantArticle 15. (1) Entry, expungement and disclosure shall be applied for by the trader in person or in his name through a person or persons who represent him by law, and in the cases provided by a law - in the name of another person.(2) In the case of change in the organs or authorized representation the application shall be effected by the newly-elected organ or representative.Paper FormArticle 16. (1) The applications, acts of court and appeals filed in paper form shall be entered into the information system following conversion into electronic form thereof and the documents attached thereto. The identity of the documents submitted in paper form with those in electronic form shall be certified as "true copies" by an official of the Agency on each page.(2) Unless proven otherwise an electronic document created in the manner referred to in Paragraph (1) shall be considered a true copy of the document submitted on paper.(3) The documents referred to in Paragraph (1) submitted by the applicant shall be stored by the Agency at the territorial division according to the initial registration of the trader.(4) Quotations shall not be made and certificates shall not be issued on the documents referred to in Paragraph (1), except in the cases of dispute in court.Electronic FormArticle 17. The Agency shall provide the opportunity for acceptance of applications, acts of court, appeals of refusals and sending documents in electronic form, conveyed by electronic means, under the conditions and by the procedure of the Electronic Document and Electronic Signature Act. LanguageArticle 18. (1) The application and the attachments thereto shall be submitted in Bulgarian.(2) The documents referred to in Paragraph (1) may also be presented in any of the official languages of the European Union. In this case the documents shall be presented together with an attested translation in Bulgarian.(3) In the case of discrepancy between the text of the document and the translation in Bulgarian the translation in Bulgarian shall have advantage. Third persons may refer to the presented text except if the trader does not prove that they had knowledge of the translation in Bulgarian.Consideration of ApplicationsArticle 19. (1) Application for entry, expungement and disclosure shall be considered by an official on registration in the order of their filing.(2) The official on the registration shall come out with a pronouncement on the application for entry or expungement until the end of the first work day following acceptance at the latest, except if another time limit for pronouncement is not provided by a law..(3) The official on the registration shall make a pronouncement on the application for disclosure immediately.Official on RegistrationArticle 20. (1) A person holding a university diploma in law, who is licensed to practice law and has practiced law no less than 3 years shall be appointed as official on registration.(2) The official on registration shall be a civil servant.(3) The Executive Director of the Registry Agency shall be a person holding a university diploma in law and who has practiced law no less than 5 years.Scope of CheckArticle 21. The official on registration shall check whether:1. an application for the requested entry, expungement or disclosure has been submitted;2. the circumstance declared is liable to entry or the act presented is liable to disclosure;3. the application originated from an authorised person;4. all documents according to the requirements of a law, respectively the act liable to disclosure, are attached to the application;5. the existence of the circumstance declared for entry shall be established from the documents submitted under Item 4;6. a declaration pursuant to Article 13 (5) has been presented;7. another person does not have rights on the business name and it corresponds to the requirements of Article 7 (2) of the Commerce Act at initial entry or change of business name;8. the due state fee has been paid.Entry, Erasure and DisclosureArticle 22. (1) The official on registration shall make an entry or expungement of entry, respectively disclosure of act presented, within the respective time-limit referred to in Article 19 and in case the requirements provided under Article 21 have been met.(2) Entries and expungements shall be effected by consecutive entry of information concerning the respective circumstance in the Commercial Register.(3) Disclosure shall be effected by transfer of the content of the act presented to the Commercial Register in a format liable to automated processing.Standard Identification CodeArticle 23. (1) The Agency shall determine a standard identification code, hereinafter referred to as "SIC", mandatory for the persons entered in the Commercial Register.(2) The standard identification code shall be determined at initial entry of traders and the branches of foreign traders in the Commercial Register and shall remain unchanged until their expungement.(3) The manner of forming SIC shall be determined by the Ordinance pursuant to Article 31.(4) In case a SIC is quoted, the state authorities, the organs of local self-government and local administration and the persons commissioned with engaging in public function shall not have the right to require proof of the circumstances entered in the Commercial Register or the presentation of acts disclosed in the Commercial Register.RefusalArticle 24. (1) The official on registration shall decree a motivated refusal in case any of the requirements provided under Article 21 is lacking the refusal shall be presented to the applicant immediately upon its decreeing by the procedure of the Code of Civil Procedure. (2) Where an applicant has stated in the application desire to be notified by electronic means the refusal shall be sent to the electronic address given thereby. In this case confirmation of reception of the refusal shall not be required.AppealArticle 25. (1) A refusal shall be liable to appeal before the district court according to the registered office of the trader or the branch of a foreign trader within seven days of its being served.(2) The appeal shall be filed through the Agency. The Agency shall immediately send the filed appeal to the court, together with the attachments thereto, the decreed refusal, the application and the attachments thereto.(3) In case of lack of technological opportunity for the court to receive the documents referred to in Paragraph (2) by electronic means, these shall be reproduced on paper and shall be sent to the court certified by an Agency official.(4) (Amended, SG No. 59/2007) The court shall consider the appeal in a panel of one judge at a hearing behind closed doors under the procedure of Chapter Twenty One "Appeal of Rulings" of the Code of Civil Procedure. The judgement of the court shall be liable to appeal within seven days of its communication before the respective court of appeal, the decision of which shall be final.(5) In case of revoked refusal the court shall come out with a judgement whereby it shall give the Agency binding instructions to effect the entry, expungement or disclosure requested.New ApplicationArticle 26. In the case of refusal or non-performance of the entry, expungement or disclosure requested within the respective time limit referred to in Article 19, the applicant may file another application for entry, respectively expungement, of the same circumstance or for disclosure of the same act. The new application shall be considered by the order of its filing.Mistakes and Incomplete EntriesArticle 27. Mistakes and incomplete entries made upon entry of circumstances, expungement of entries or disclosure of acts, including in case of discrepancy between the data recorded in the application and the data in the attachments thereto, shall be rectified by a new entry, respectively disclosure.Responsibility for Mistakes and Incomplete EntriesArticle 28. The Agency shall be responsible for the damages caused by mistakes and incomplete entries made in the course of transfer of information from the application or act of court to the Commercial Register. Such mistakes and incomplete entries shall be rectified officially.Defence against EntryArticle 29. (1) Any person with legal interest, as well as a prosecution officer, may file a statement of action for establishment of entry nullity or inadmissibility, as well as for the non-existence of an entered circumstance.(2) The statement of action shall be filed with the district court according to the registered office of the trader, respectively the branch of the foreign trader, concerning whom the entry has been made.Erasure of EntryArticle 30. (1) In case the statement of action referred to in Article 29 is approved, expungement of the entry shall be effected by the Agency under the procedure of Article 14 upon the request of the interested party or the prosecution officer.(2) In case of repeal of a decision of an organ of the trader on the basis of which an entry has been made that entry shall be erased by the procedure referred to in Paragraph (1).OrdinanceArticle 31. (1) The Minister of Justice shall issue an ordinance on keeping, storage and access to the Commercial Register.(2) The ordinance shall determine the forms of applications, quote comprehensively the attachments thereto for each type of entry, expungement or disclosure according to the requirements of the law, as well as the format of the electronic documents.Chapter Two "A"(New, SG No. 104/2007)REGISTER PROCEDURE FOR ISSUANCE OF CERTIFICATES FOR EUROPEAN COMPANIES,EUROPEAN ECONOMIC INTEREST GROUPING, EUROPEAN COOPERATIVE SOCIETIES ANDIN THE EVENT OF TRANSFORMATION WITH THE PARTICIPATION OF COMPANIES FROMEU MEMBER STATES OR FROM OTHER STATES THAT ARE PARTIES TO THE EUROPEANECONOMIC AREA TREATYEntry and disclosureArticle 31a. (New, SG No. 104/2007) (1) The following shall be entered into the Commercial Register:1. European companies within the meaning of Council Regulation (EC) No. 2157/2001 on the Statute for a European company (SE), hereinafter referred to as "Regulation (EC) No. 2157/2001", having their registered offices in the Republic of Bulgaria, as well as their subsidiaries;2. European Cooperative Societies within the meaning of Council Regulation (EC) No. 1435/2003 on the Statute for a European Cooperative Society (SCE), hereinafter referred to as "Regulation (EC) No. 1435/2003", having their registered offices in the Republic of Bulgaria, as well as their subsidiaries;3. European Economic Interest Grouping within the meaning of Council Regulation (EEC) No. 2137/85 of 25 July 1985 on the European Economic Interest Grouping (EEIG), hereinafter referred to as "Regulation (EEC) No. 2137/85", having their registered offices in the Republic of Bulgaria, and the divisions located in the Republic of Bulgaria of divisions of European Economic Interest Grouping, having their registered offices in another state.(2) Subject to entry in the Commercial Register shall be the circumstances liable to registration in the event of transformation with the participation of companies from EU Member States or from other states that are parties to the European Economic Area Treaty. The circumstances and any changes thereto concerning the persons referred to in Paragraph 1 and their subsidiaries and divisions shall be entered as well.(3) Subject to disclosure in the Commercial Register shall be the acts concerning the persons referred to in Paragraph 1 and their subsidiaries and divisions.Check when incorporating a European company and a European CooperativeSociety, having their registered offices in the Republic of BulgariaArticle 31b. (New, SG No. 104/2007) (1) When a European company, having its registered office in the Republic of Bulgaria, is incorporated by a merger or fusion, the registry official shall enter the European company after having verified that:1. the requirements of Regulation (EC) No. 2157/2001 pertaining to its incorporation have been complied with;2. the companies being transformed and having their registered offices in the Republic of Bulgaria have met the requirements of this Regulation, and3. the applicable provisions of the Bulgarian legislation regarding the joint stock company have been complied with.(2) When entering the incorporation circumstances of a European Cooperative Society, having its registered office in the Republic of Bulgaria, the registry official shall check whether the merging cooperations, having their registered offices in the Republic of Bulgaria, have observed the requirements of Regulation (EC) No. 1435/2003.Certificates of Legality regarding a European company and EuropeanCooperative SocietyArticle 31c. (New, SG No. 104/2007) (1) When a European company, having its registered office in another Member State, is incorporated by a merger or fusion, the registry official shall issue a Certificate under Article 25, Paragraph 2 of Regulation (EC) No. 2157/2001, concerning the legality of the merger or fusion pertaining to the company being transformed and having its registered office in the Republic of Bulgaria and shall disclose it ex officio.(2) When a European company, having its registered office in the Republic of Bulgaria, relocates to another Member State, the registry official shall issue a Certificate under Article 8, Paragraph 8 of Regulation (EC) No. 2157/2001 concerning the legality of the actions related to the relocation of the registered office and shall disclose it ex officio.(3) When a European Cooperative Society is incorporated by a merger or fusion, the registry official shall issue a Certificate under Article 29, Paragraph 2 of Regulation (EC) No. 1435/2003, concerning the legality of the merger pertaining to the cooperation being merged and having its registered office in the Republic of Bulgaria and shall disclose it ex officio.(4) When a European Cooperative Society, having its registered office in the Republic of Bulgaria, relocates to another Member State, the registry official shall issue a Certificate under Article 7, Paragraph 8 of Regulation (EC) No. 1435/2003 concerning the legality of the actions related to the relocation of the registered office and shall disclose it ex officio.(5) When a Certificate is issued under Paragraphs 1 - 4, the registry official shall check ex officio whether the company or cooperation, having their registered offices in the Republic of Bulgaria, owns land.Certificate of Legality in the event of company transformationArticle 31d. (New, SG No. 104/2007) (1) When the provisions of Chapter 16, Section V of the Commerce Act, as well as all legal provisions with respect to making a decision to transform a company have been complied with, the registry official shall issue the requested Certificate not earlier than 14 days after the respective request was filed and shall disclose it ex officio. The registry official shall check ex officio whether the company being transformed, having its registered office in the Republic of Bulgaria, owns land.(2) Lodging a claim for cash settlement by a partner or shareholder under Article 263q of the Commerce Act or submitting a participation termination notice under Article 263r of the Commerce Act shall not be considered an obstacle preventing the issuance of a Certificate referred to in Paragraph 1, but the registry official shall note in the Certificate the respective circumstances thereto.Refusal to issue a certificateArticle 31e. (New, SG No. 104/2007) In the event of refusal to issue a certificate under Art. 31c or 31d, Art. 25 shall apply. The refusal having entered into force shall be disclosed.NotificationArticle 31f. (New, SG No. 104/2007) (1) Within one month upon entering a European company or a European Economic Interest Grouping, the Registry Agency shall, ex officio, send a notification to be published in the Official Journal of the European Union containing data about the name, number, date and place of registration, the registered office and subject of operation of the European company and the European Economic Interest Grouping respectively. Such a notification shall be sent when a European company or a European Economic Interest Grouping are to be expunged from the Commercial Register.(2) Immediately upon entering a transformation under Article 265m of the Commerce Act, the Registry Agency shall notify the registry offices where the companies being transformed, with registered offices in another Member State, have been entered.Chapter ThreePUBLICITYQuotationsArticle 32. (1) Anyone shall be entitled to request a quotation as regards the existence or lack of an entered circumstance or disclosed act in the Commercial Register.(2) References in the Commercial Register may be made by:1. the name, respectively business name, or SIC of the trader or branch of a foreign trader;2. the name, respectively business name, or SIC of the partner or sole owner of capital;3. the name, respectively business name, or SIC of a member of the organs of the legal person - trader.(3) References on any circumstance entered or disclosed act may be made in the file of the separate trader, respectively branch of foreign trader, and of the authorizing parties and legal successors thereof.Content of References and CertificatesArticle 33. (1) References and certificates may contain a quotation from the Commercial Register or copies of the documents on the basis of which the entries, expungements or disclosures have been made.(2) Certificates shall also be issued regarding the fact that a certain circumstance for a certain trader or branch of foreign trader has not been entered.(3) References shall be verbal and written.(4) The certificates shall be official documents.References and Issuance of CertificatesArticle 34. (1) References shall be made and certificates shall be issued immediately at any territorial division of the Agency.(2) The Agency shall provide the opportunity for making references through distant access, as well as the issuance of written references and certificates in electronic form, as well as their transmission by electronic means.Chapter FourBUSINESS NAME RESERVATIONBusiness Name ReservationArticle 35. (1) Any person may reserve a business name before filing an application for entry.(2) The reservation shall be made on the basis of an application by form from the interested party by immediate entry into the Commercial Register by the order of filing of the application.(3) On each application a check shall be made whether another person does not have rights on the business name and whether the state fee due has been paid.ValidityArticle 36. The reservation shall be valid for two months and shall be an obstacle for another trader to be entered in the Commercial Register under the same business name.Prohibition of TransferArticle 37. The business name reserved shall be inalienable and untransferable.Chapter FiveFINANCING OF COMMERCIAL REGISTERPrinciple of Self-FinancingArticle 38. (1) The financing of the activities on keeping, storage and development of the Commercial Register shall be provided from the fees under this Act, as well as by funds from national, regional and international programmes and projects, as well as international agreements.(2) The revenue from fees pursuant to this Act shall be used solely to finance the keeping, storage and development of the Commercial Register.(3) Where the funds referred to in Paragraph (1) are insufficient to finance the activities on keeping and storage of the Commercial Register the requisite funds shall be supplied through a subsidy from the budget of the Ministry of Justice.(4) Where revenue from fees pursuant to this Act exceeds the costs on financing the activities on keeping and storage of the Commercial Register this shall serve as grounds for reducing the amount of the fees for the next financial year.Register DevelopmentArticle 39. (1) Twenty-five per cent of the fees collected pursuant to this Act, as well as 25 per cent of the of the collected fines and pecuniary sanctions imposed for violations pursuant to this Act, shall be spent for development of the material base, raising the qualification of staff and incentives for the Agency employees under conditions and by a procedure established by an ordinance of the Minister of Justice.(2) The funds for incentives to staff may not exceed 25 per cent of the annual amount of the funds for salaries.Chapter SixADMINISTRATIVE PENAL PROVISIONSOffences and FinesArticle 40. (1) A person that is obligated but does not declare entry of a circumstance pursuant to Article 4 or does not submit an act pursuant to Article 5 within the time limit provided by the law shall be sanctioned with a fine of BGN 500 to BGN 1,000.(2) (Amended, SG No. 105/2006) A person who fails to fulfil its obligation under Article 6, paragraph 3 shall be sanctioned by fine of BGN 1,500 to BGN 3,000.(3) In case after being sanctioned with a fine the obligated person does not apply for entry or does not submit the acts within the time limit set that person shall be sanctioned with the fines referred to in Paragraphs (1) and (2) every month until the actions are effected.(4) The fines referred to in Paragraphs (1) and (3) shall also be imposed on an Agency official who, being obligated, fails to effect the necessary entry, expungement or disclosure in the Commercial Register, or else does not decree a refusal.(5) For violations of Article 23 (4) the offending officials shall be sanctioned with a fine from BGN 100 to BGN 500.Establishment of Infractions and Imposition of FinesArticle 41. (1) The infractions shall be established by memoranda of ascertainment compiled by officials appointed by the Executive Director of the Agency and the penalty decrees shall be issued by the Executive Director of the Agency or by officials authorised thereby.(2) Establishment of infractions, the issuance, appeal and execution of penalty decrees shall follow the procedure of the Administrative Violations and Sanctions Act. SUPPLEMENTARY PROVISION 1. For the purposes of this Act "electronic means" shall mean the transmission of data in digital form by means of electronic equipment for the processing, including digital compression, and storage of data, the transmission being effected by wire, by radio, by optical means or by other electromagnetic means.TRANSITIONAL AND FINAL PROVISIONS 2. (Effective 25.04.2006) (1) By July 1, 2006, at latest the Council of Ministers and the regional governors shall provide the Agency with buildings or premises for the needs of the registers it keeps.(2) Prior to the provision of the buildings referred to in Paragraph (1) the Supreme Judicial Council shall place at the disposal of the Agency the premises at district courts intended for the registers they keep. 3. (Effective 25.04.2006) (1) Within one month following the promulgation of this Act shall provide gratuitously to the Agency structured data in electronic form about the traders and branches of traders, as well as the data about reserved business names, entered in the registers of commercial corporations and registers of cooperatives.(2) Within the time limit referred to in Paragraph (1) the Supreme Judicial Council and the Minister of Finance shall organize the gratuitous provision by the district courts to the Agency of constant and unlimited access for exchange of information by electronic means to the information systems hitherto used by the courts about the traders and branches of traders, as well as the data about reserved business names, entered in the registers of commercial corporations and registers of cooperatives.(3) The manner of effecting the exchange of information referred to in Paragraph (2) shall be resolved by a joint act of the Minister of Justice and the Minister of Finance, issued within the time limit referred to in Paragraph (1).(4) Within the time limit referred to in Paragraph (1) the Supreme Judicial Council, by a motion of the district courts, shall provide the Agency with a list of court officials holding the post of "district court clerk" who have to transfer to the Agency. Employment relations between these officials and the Agency shall be established under the procedure of Article 123 of the Labour Code as of the enforcement of this Act. 4. (1) Traders and branches of foreign traders entered in the register of commercial corporations and the register of companies with district courts shall be obligated to re-register under this Act within three years of the enforcement thereof. State fee for re-registrations shall not be charged.(2) The re-registration referred to in Paragraph (1) shall be effected by entry into the Commercial Register of the trader or the branch of the foreign trader, as well as the respective circumstances thereof, on the basis of an application by the trader, respectively the manager of the branch of foreign trader, as well as a certificate reflecting the current status resulting from all changes on the record previously, wherein the court shall quote the trader, respectively branch of foreign trader, BULSTAT code. Companies and cooperatives shall also present an instrument of constitution or statutes as amended to date and certified by their organ of management.(3) The court on registration shall issue the certificates referred to in Paragraph (2) within three days after these have been requested. A state fee for the certificates shall not be charged.(4) After submission of the certificate referred to in Paragraph (2) to the trader, respectively the branch of the foreign trader, the court shall immediately provide the Agency access for conversion into electronic form of the entire company case on record. The conversion to electronic form shall be effected jointly by an official of the court and a representative of the Agency. After the processing and entry by the Agency of an electronic copy of the company case in the Commercial Register the court shall archive the company case.(5) Within the time limit referred to in Paragraph (1) quotations and certificates from the documents on the basis of which the entries, expungements or disclosures have been made of re-registered traders, respectively branches of foreign traders, prior to the re-registration shall be issued by the Agency within 14 days following request.(6) In the case of coincidence of the business names of two or more traders, established at application for re-registration, the agency shall send notification thereof to all traders whose business names coincide, providing the trader who has applied for re-registration with two months to declare change of business name. in case of non-declaration of change of business name the Agency shall re-register the trader according to the certificate referred to in Paragraph (2), mandatorily adding to the business name the nucleated settlement of the district court by registration. Prior to the expiry of the time limit referred to in Paragraph (1) coincidence of business names and addresses of the place of management of traders shall be established from the data pursuant to 3.(7) An application for entry of new circumstance, expungement or disclosure may be filed simultaneously with the application for re-registration.(8) (Amended, SG No. 105/2006) Upon presentation for disclosure in the Commercial Register of the acts referred to in Articles 6, paragraph 3, traders shall also present the respective acts for the years 2004 and 2005.(9) Upon re-registration traders and branches of foreign traders shall be excluded from the BULSTAT register and the BULSTAT code shall become SIC of the trader. 5. (1) With the expiry of the time limit pursuant to 4 (1) the court shall issue an official certificate pursuant to 4 (2) to sole traders and branches of foreign traders who have not re-registered and shall send them to the Agency under the procedure of Article 14. The Agency shall make ex officio entry into the Commercial Register of the sole traders and branches of foreign traders who have not re-registered and shall expunge, respectively close, these immediately.(2) With the expiry of the time limit pursuant to 4 (1) the court shall issue an official certificate pursuant to 4 (2) to the commercial corporations and the cooperatives that have not re-registered, shall send them to the Agency under the procedure of Article 14 and shall provide the Agency access for conversion into electronic form of the company cases pursuant to 4 (4). Following the conversion and the entry by the Agency of an electronic copy of the company case in the Commercial Register the court shall archive the company case. The Agency shall enter ex officio the trader and the dissolution thereof, shall appoint a liquidator, determine the remuneration thereof and the term of liquidation.(3) A partner of unlimited liability in the case of personal companies or a member of the management organ in the case of capital companies or cooperatives shall be appointed as liquidators of traders dissolved pursuant to Paragraph (2). If such persons cannot be found within six months following the dissolution of the trader, the Agency shall appoint ex officio a liquidator from a list of liquidators with it.(4) The costs for the procedure on liquidation shall be at the expense of the trader. The members of management organs shall be held solidarily and unlimitedly liable for the obligations of the trader related to the procedure on liquidation.(5) Where a liquidator is appointed under the procedure of Paragraph (3), sentence two, and the property of the trader is insufficient to cover to costs on liquidation, these shall be covered by the Agency on account of the fees collected pursuant to Article 12. Ex officio appointed liquidators shall wind up the procedure within six months of their appointment. 6. Register procedures begun prior to the enforcement of this Act shall be completed by the court by the previously existent procedure. 7. The following amendments shall be made to the Cooperatives Act (promulgated, SG No. 113/1999; amended, No. 92/2000, No. 98/2001, No. 13/2003, Nos. 102 and 105/2005):1. In Article 3: a) In Paragraph (1) the text before Item 1 shall be amended as follows:"(1) The cooperative shall be entered into the Commercial Register upon application of the management board, to which the following shall be attached";b) In Paragraph (3) the words "the court shall enter the cooperative or the changes referred to in Article 37 (1) after it is presented with" shall be substituted for "the new cooperative or the changes referred to in Article 37 (1) shall be entered into the Commercial Register following presentation".2. Article 4 shall be amended as follows:"FormationArticle 4. The cooperative shall be formed from the day of entry into the Commercial Register."3. Article 41 (2) shall be amended as follows:"(2) In the cases of Article 40, Item 2 of Paragraph (1) the Registry Agency shall appoint a liquidator, determine the term of liquidation and the remuneration of the liquidator."4. In Article 42: a) in Paragraph (1) the words "the court register and shall be promulgated in the State Gazette" shall be substituted for "the Commercial Register";b) in Paragraph (2) the word "day" shall be substituted for "moment".5. In Article 44 (1) the word "promulgation" shall be substituted for "entry into the Commercial Register".6. In Article 47: a) Paragraph (2) shall be repealed;b) Paragraph (3) shall be amended as follows:"(3) The liquidators shall be obligated within seven days following the passage of the decision referred to in Paragraph (1) to request entry thereof into the Commercial Register."7. In sentence three of Article 49 the words "court register" shall be substituted for "Commercial Register". 8. The following amendments and supplements shall be made to the BULSTAT Register Act (promulgated, SG No. 39/2005; amended, No. 105/2005):1. In Article 3 (1):a) "that are not traders" shall be added at the end of Item 1;b) Item 2 shall be repealed;c) "that are not traders" shall be added at the end of Item 3;d) Item 8 shall be amended as follows:"8. the branches and divisions of the persons under items 1, 5 and 7, as well as the branches of traders entered into the Commercial Register;".2. In Article 6 (2) the words "or the sole trader" shall be erased.3. In Article 13 the words "besides their registration as sole traders" shall be erased.4. In Article 19, Item 2 of Paragraph (2) the words "or the sole trader" shall be erased.5. In Article 27 (1) the words "sole traders, commercial companies and other legal persons" shall be substituted for "the legal persons other than traders".6. In Article 44, Article 45 (1), Articles 46, 47 and 48 the words "and sole traders" shall be erased.. 9. The following amendments and supplements shall be made to the Code of Civil Procedure (promulgated, Transactions of the Presidium of the National Assembly [TPNA], No. 12/1952; amended, TPNA No. 92/1952, No. 89/1953, No. 90/1955, No. 90/1956, No. 90/1958, Nos. 50 and 90/1961; corrected, No. 99/1961; amended, SG, No. 1/1963, No. 23/1968, No. 27/1973, No. 89/1976, No. 36/1979, No. 28/1983, No. 41/1985, No. 27/1986, No. 55/1987, No. 60/1988, Nos. 31 and 38/1989, No. 31/1990, No. 62/1991, No. 55/1992, Nos. 61 and 93/1993, No. 87/1995, Nos. 12, 26, 37, 44 and 104/1996, Nos. 43, 55 and 124/1997, Nos. 21, 59, 70 and 73/1998, Nos. 64 and 103/1999, Nos. 36, 85 and 92/2000, No. 25/2001, 105 and 113/2002, Nos. 58 and 84/2003, Nos. 28 and 36/2004, Nos. 38, 42, 43, 79, 86, 99 and 105/2005):1. In Art. 398b: a) in Paragraph (1), sentence one, the words "to the District Court at company registration" shall be substituted for "for entry into the Commercial Register" and in sentence three the words "The court of registration" shall be substituted for "The Registry Agency";b) in Paragraph (2):aa) in sentence four the words "record this of its own motion in the commercial register and then will appoint a liquidator who shall wind up the same company" shall be substituted for "send the decision of the Registry Agency for entry into the Commercial Register";bb) sentence five shall be created: "Liquidation by a liquidator appointed by the official on registration with the Registry Agency shall follow entry.";c) in Paragraph (3):aa) in sentence four the words "record this of its own motion in the commercial register and then will appoint a liquidator who shall wind up the same company" shall be substituted for "send the decision of the Registry Agency for entry into the Commercial Register";bb) sentence five shall be created: "Liquidation by a liquidator appointed by the official on registration with the Registry Agency shall follow entry."2. In the title of Chapter Fifty-Two the words "and sole traders" shall be erased.3. In Article 489 (1) the words "the restoration of cooperatives, as well as the registration and deletion of sole traders" shall be substituted for "that are not traders".4. In Article 490 (1):a) in Littera "a" the words " or a sole trader's firm" shall be erased;b) in Littera "b" the words " or a sole trader's firm" shall be erased.5. In Article 491 the words "or a sole trader's firm" shall be erased;.6. In Article 491a: a) in Paragraph (1) throughout the word "commercial" shall be substituted for "respective" and the word "trader" shall be substituted for "legal person";b) in Paragraph (2) throughout the word "commercial" shall be substituted for "respective" and the word "company" shall be substituted for "legal person".7. In Article 494 Littera "c" shall be revoked.8. In Article 495: a) in Littera "b" of Paragraph (1) the words " or the sole trader's firm" shall be erased;b) in Paragraph (2) the words " or the sole trader's firm" shall be erased;c) in Paragraph (3) the words "or sole trader" shall be erased and the words "who do not have" shall be substituted for "that does not have". 10. The following amendments and supplements shall be made to the Tax and Social Insurance Procedure Code (SG, No. 105/2005):1. In Article 28 (1):a) Item 1 shall be amended as follows:"1. The permanent residence address - for natural persons, if no other address has been specified in writing, for persons entered in the BULSTAT register - the address for correspondence entered in the BULSTAT register, and for sole traders - the address of the place of management;";b) "respectively if another address of the place of management is not entered in the commercial registered" shall be added at the end of Item 2.2. Paragraph (1) in Article 77 shall be amended as follows:"(1) In cases of expungement of a sole trader from the commercial register, or of termination of a legal person that is a trader, as well as of transfer of an enterprise under Article 15 of the Commercial Act or of transformation in pursuance to Chapter 16 of the Commerce Act, the territorial directorate of the National Revenue Agency according to the registered office of trader shall be notified no later than seven days before the request for entering the relevant circumstance is submitted to court. The territorial directorate of the National Revenue Agency shall issue the trader a certificate of the notification and shall send ex officio to the Registry Agency a notice of the existence or non-existence of dues on taxes and mandatory insurance contributions under the conditions and by the procedure of Article 87 (6). The certificate and the notification shall not include obligations that are secured under the procedure of this Act. The certificate pursuant to sentence two shall be attached to the application for entry."3. Article 81, Item 3 of Paragraph (1) shall be amended as follows:"3. The standard identification code determined by the Registry Agency, or the standard identification code under BULSTAT, respectively the personal identity number, or the personal number of a foreign natural person;".4. Paragraphs (2), (3) and (4) of Article 82 shall be amended as follows:"(2) Data about local and foreign natural persons, with the exception of persons under Article 80 (2), as well as persons entered into the Commercial Register and the persons subject to registration in the BULSTAT Register, shall be entered in the register at the relevant territorial directorate on the basis of the first return filed in relation to taxation or mandatory social insurance contributions.(3) The data under Art. 81 (1) for the persons entered in the Commercial Register and for the persons entered in the BULSTAT Register shall be recorded ex officio by the relevant competent territorial directorate on the basis of the information in the Commercial Register, respectively the BULSTAT register.(4) Apart from the data subject to entry in the Commercial Register, respectively the BULSTAT Register, ex officio entry of data in the register shall be effected by a record of proceedings pursuant to Article 50 on the basis of entries in other official (public) registers, or on the basis of findings of a revenue authority following a check. In this case, if the person does not have a personal identity number or a personal number of a foreign natural person, said person shall be allocated an official number."5. Paragraphs (1) and (2) of Article 84 shall be amended as follows:"(1) The identification of registered persons shall be carried out on the basis of data under Article 81, Items 2 through 4 of Paragraph (1) where for persons entered in the BULSTAT register it shall be carried out on the basis of their BULSTAT standard identification code, while sole traders shall be identified through a standard identification code issued by the Registry Agency, respectively the personal number of a foreign person, as well as through their BULSTAT standard identification code.(2) The identification of natural persons who are not entered in the Commercial Register, respectively in the BULSTAT register, shall be carried out on the basis of their personal identity number or personal number of a foreign person."6. In Article 248 (9) sentence one shall be amended as follows: "The auction number and price of the item, price and the number of the participant proposing the highest price, for natural persons - name and personal identity number and for traders -name and standard identification code issued by the Registry Agency, and for the persons entered in BULSTAT register - plus standard identification code under BULSTAT shall be noted in the minutes, along with the information about the authorised representative, as the case may be."7. Article 251, Item 1 of Paragraph (3) shall be amended as follows:"1. information about the bidder: name, personal identity number (business name, standard identification code determined by the Registry Agency, standard identification code under BULSTAT), and address;".8. 2a shall be created in the SUPPLEMENTARY PROVISIONS:" 2a. The branches of commercial corporations and divisions may continue to report as insuring parties separately from the company and from its other branches and divisions, identifying themselves with their standard identification code under BULSTAT in pursuance to Article 6 (2) of the BULSTAT Register Act." 11. The following amendments shall be made to the Social Insurance Code (promulgated, SG, No. 110/1999, No. 55/2000 - Constitutional Court Judgement No. 5/2000; amended, No. 64/2000, Nos. 1, 35 and 41/2001, Nos. 1, 10, 45, 74, 112, 119 and 120/2002, Nos. 8, 42, 67, 95, 112 and 114/2003, Nos. 12, 38, 52, 53, 69, 70, 112 and 115/2004, Nos. 38, 39, 76, 102, 103, 104 and 105/2005, No. 17/2006):1. In Article 7 (6) the words "by BULSTAT register" shall be erased.2. In Article 110 (4) the word "court" shall be substituted for "commercial".3. In Article 112 the words "the identification code under BULSTAT" shall be substituted for "the standard identification code" and the words "in the BULSTAT register" shall be erased.4. In Article 122a, Item 8 of Paragraph (1) the word "Bulstat" shall be substituted for "standard identification code".5. In Article 122d: a) in Paragraph (1) the words "The district court by registered office of the pension insurance company" shall be substituted for "The Registry Agency";b) in Paragraph (2) the words "the judgement of the court" shall be substituted for "the certificate".6. In Article 122h the words "the court that has effected the court registration" shall be substituted for "the Registry Agency".7. In Article 145, Item 9 of Paragraph (1) the words "certificate reflecting the current court record status" shall be substituted for "certificate reflecting current status of entry in the commercial register".8. In Article 150, Item 4 of Paragraph (1) the words "certificate reflecting the current court record status" shall be substituted for "certificate reflecting current status of entry in the commercial register".9. In Article 169a (2) the word "court" shall be substituted for "commercial" and the words "the code under BULSTAT" shall be substituted for "the standard identification code".10. In Article 218, Item 9 of Paragraph (1) the words "certificate reflecting the current court record status" shall be substituted for "certificate reflecting current status of entry in the commercial register"..11. In Article 221, Item 3 of Paragraph (3) the words "certificate reflecting the current court record status" shall be substituted for "certificate reflecting current status of entry in the commercial register"..12. In Article 237, Item 1 after the words "pension licence and" the word "court" shall be substituted for "commercial" and after the words "pension insurance" the words "code under BULSTAT" shall be substituted for "standard identification code".13. Article 269, Item 8 of Paragraph (1) shall be amended as follows:"8. certificate reflecting the current status of entry of insurance company in the Commercial Register."14. In Article 272, Item 3 of Paragraph (3) the words "certificate reflective current status in court register" shall be substituted for "certificate reflecting current status of entry in the Commercial Register".15. In Item 1 of Article 305 after the words "the licence and" the word "court" shall be substituted for "commercial" and after the words "qualification and" the words "code under BULSTAT" shall be substituted for "standard identification code". 12. The following amendments shall be made to the Human Medicinal Drugs and Pharmacies Act (promulgated, SG No 36/1995, modified by Constitutional Court Judgement No. 10/1996 - SG No. 61/1996; amended, No. 38/1998, No. 30/1999, No. 10/2000, No. 37/2000 - modified by Constitutional Court Judgement No. 3/ 2000; amended, No. 59/2000, No. 78/2000 - modified by Constitutional Court Judgement No. 7/2000; amended, No. 41/2001, Nos. 107 and 120/2002; corrected, No. 2/2003; amended, Nos. 56, 71 and 112/2003, Nos. 70 and 111/2004, Nos. 37, 76, 85, 87, 99 and 105/2005):1. Article 11, Item 2 of Paragraph (3) shall be amended as follows:"2. "certificate reflecting current status of entry in the Commercial Register;".2. In Item 3 of Article 56 the words "copy of court judgement or certificate attesting to registration in court register" shall be substituted for "certificate reflecting current status of entry in the Commercial Register ".3. In Article 74: a) Item 7 of Paragraph (1) shall be amended as follows:"7. "certificate reflecting current status of entry in the Commercial Register, in case of trader.";b) in Paragraph (6):aa) in Item 3 the word "court" shall be erased;bb) Item 4 shall be repealed.4. Article 81d, Item 1 of Paragraph (2) shall be amended as follows:"1. "certificate reflecting current status of entry in the Commercial Register;". 13. The following amendments shall be made to the Agricultural Producers Support Act (promulgated, SG, No. 58/1998; amended, Nos. 79 and 153/1998, Nos. 12, 26, 86 and 113/1999, No. 24/2000, Nos. 34 and 41/2001, Nos. 46 and 96/2002, No. 18/2004, Nos. 14 and 105/2005, No. 18/2006):1. In Article 7g (3):a) Item 1 shall be amended as follows:"1. certificate reflecting current status of entry of applicant in the Commercial Register, issued within one month prior to filing the application;";b) Item 3 shall be repealed.2. Article 10c, Item 1 of Paragraph (2) shall be amended as follows:"1. "certificate reflecting current status of entry in the Commercial Register;". 14. The following amendments shall be made to the Corporate Income Tax Act (promulgated, SG, No. 115/1997; corrected, No. 19/1998; amended, Nos. 21 and 153/1998, Nos. 12, 50, 51, 64, 81, 103, 110 and 111/1999, Nos. 105 and 108/2000, Nos. 34 and 110/2001, Nos. 45, 61, 62 and 119/2002, Nos. 42 and 109/2003, Nos. 18, 53 and 107/2004, Nos. 39, 88, 91, 102, 103 and 105/2005) in Article 41 (1) the word "court" shall be substituted for "Commercial Register". 15. The following amendments shall be made to the Act on Factory and Office Workers' Claims Guaranteed in the Event of Their Employer's Bankruptcy (promulgated, SG, No. 37/2004; amended, Nos. 104 and 105/2005):1. In Article 4, Item 1 of Paragraph (1) the word "promulgated" shall be substituted for "entry".2. In Article 6 the words "promulgated in the State Gazette" shall be substituted for "entry in the Commercial Register".3. In Article 23 (4) the word "promulgated" shall be substituted for "entry".4. In Article 25 the word "promulgated" shall be substituted for "entry". 16. The following amendments shall be made to Article 20 (1) of the Film Industry Act (promulgated, SG, No. 105/2003; amended, Nos. 28, 94 and 105/2005):1. Item 1 shall be amended as follows:"1. "certificate reflecting current status of entry in the Commercial Register;".2. Items 2 and 3 shall be repealed. 17. The following amendments shall be made to the Tourism Act (promulgated, SG, No. 56/2002; amended, Nos. 119 and 120/2002, No. 39/2004, Nos. 28, 39, 94, 99 and 105/2005):1. In Paragraph 1 of Article 18: a) in the text before Item 1 the words "code under BULSTAT" shall be substituted for ""standard identification code";b) In Item 1 the words "certificate reflective current status in court register" shall be substituted for "certificate reflecting current status of entry in the Commercial Register".2. Article 21, Item 5 of Paragraph (1) shall be amended as follows:"5. standard identification code;".3. In Article 50, Item 1 of Paragraph (3) the words "certificate reflective current status in court register" shall be substituted for "certificate reflecting current status of entry in the Commercial Register".4. In Article 50b, Item 1 of Paragraph (1) the words "certificate reflective current status in court register" shall be substituted for "certificate reflecting current status of entry in the Commercial Register".5. In Article 50c, Item 1 of Paragraph (1) the words "certificate reflective current status in court register" shall be substituted for "certificate reflecting current status of entry in the Commercial Register".6. In Article 50d, Item 1 of Paragraph (1) the words "certificate reflective current status in court register" shall be substituted for "certificate reflecting current status of entry in the Commercial Register".7. In Article 61 (1):a) Littera "e" in Item 1 shall be amended as follows:"e) standard identification code;";b) in Littera "h" and Littera "i" in Item 2 the words "code under BULSTAT" shall be substituted for "standard identification code";c) In Littera "f" of Item 3 the words "code under BULSTAT" shall be substituted for "standard identification code". 18. The following amendments and supplements shall be made to the Agricultural and Forestry Machines and Equipment Registration and Control Act (promulgated, SG, No. 79/1998; amended, No. 22/2003, Nos. 74 and 88/2005:1. Article 9, Item 1 of Paragraph (3) shall be amended as follows:"1. certificate reflecting current status of entry in the Commercial Register;".2. In Article 11: a) "respectively commercial" shall be added in Paragraph (1) after the word "court";b) In Paragraph (4):aa) in Item 6 the words "or the sole trader " shall be substituted for "when said person is not trader, respectively certificate reflecting current status of entry in the Commercial Register - for traders ";bb) Item 7 shall be repealed;c) "respectively commercial" shall be added in Item 1 of Paragraph (5) after the word "court". 19. The following amendments shall be made to the Radio and Television Act (promulgated, SG, No. 138/1998, corrected by Constitutional Court Judgement No. 10/1999 in No. 60/1999; amended, No. 81/1999, No. 79/2000, No. 96/2001, Nos. 77 and 120/2002, Nos. 99 and 114/2003, Nos. 99 and 115/2004, Nos. 88, 93 and 105/2005, No. 21/2006) in Article 111 (2) the word "court" shall be substituted for "commercial". 20. The following amendments shall be made to Article 6, Item 1 of Paragraph (3) of the Act on Protection of Public Order upon Conduct of Sports Events (promulgated, SG, No. 96/2004; amended, Nos. 103 and 105/2005):"1. registered office and address of the place of management, standard identification code for traders, respectively identification code under BULSTAT;". 21. The following amendments and supplement shall be made to Article 11 of the Financial Support for Culture Act (SG, No. 103/2005):1. In Paragraph (4) the words "certified copies of the documents referred to in Items 1, 2, 4 and 5 of Paragraph (3)" shall be substituted for "certificate reflecting current status of commercial registration and certificate of tax registration ".2. In Paragraph (5):a) In Item 1 "for the persons referred to in Article 9 (2)" shall be added after "court registration" and "for the persons referred to in Article 9 (2) and standard identification code for traders" shall be added after "under BULSTAT register";b) in Item 2 "respectively under commercial" shall be added after the word "court". 22. The following amendments shall be made to the Medical Treatment Facilities Act (promulgated, SG, No. 62/1999; amended, Nos. 88 and 113/1999; corrected, No. 114/1999; amended, Nos. 36, 65 and 108/2000, corrected by Constitutional Court Judgement No. 11/2001 in No. 51/2001; amended, Nos. 28 and 62/2002, Nos. 83, 102 and 114/2003, No. 70/2004, Nos. 46, 76, 85, 88 and 105/2005):1. In Article 36 (4) the word "Court" and be substituted for "Commercial".2. In Article 36a (3) the word "Court" and be substituted for "Commercial".3. In Article 37 (6) the word "court" and be substituted for "commercial".4. Article 40, Item 1 of Paragraph (1) shall be amended as follows:"1. certificate reflecting current status of commercial registration;".5. In Article 41, Item 3 of Paragraph (1) the words "number and year of court registration, number of company case" shall be erased.6. Item 1 in Article 47 shall be amended as follows:"1. certificate reflecting current status of commercial registration;".7. Article 49, Item 2 of Paragraph (1) shall be amended as follows:"2. data about medical establishment - name, registered office, capital, standard identification code;".8. Article 51a, Item 1 of Paragraph (2) shall be amended as follows:"1. certificate reflecting current status of commercial registration;". 23. The following amendments shall be made to the Telecommunications Act (promulgated, SG, No. 88/2003; amended, Nos. 19, 77, 88, 95, 99 and 105/2005, No. 17/2006):1. In Article 88 (1) the words "certificate reflecting current status of court registration, copy of certificate of registration under BULSTAT" shall be substituted for "certificate reflecting current status of commercial registration".2. In Item 1 of Article 148 the words "court registration" shall be substituted for "registration in the Commercial Register". 24. The following amendments shall be made to the Physical Education and Sports Act (promulgated, SG, No. 58/1996, corrected by Constitutional Court Judgement No. 8/1997 in No. 53/1997; amended, No. 124/1998, Nos. 51 and 81/1999, No. 53/2000; corrected, No. 55/2000; amended, No. 64/2000, No. 75/2002, corrected by Constitutional Court Judgement No. 6/2002 in No. 95/2002; amended, No. 120/2002, No. 96/2004, Nos. 88 and 103/2005) in Article 51a (5) "respectively commercial" shall be added after the word "court". 25. The following amendments shall be made to Article 167, Item 1 of Paragraph (2) in the Spatial Development Act (promulgated, SG, No. 1/2001; amended, Nos. 41 and 111/2001, No. 43/2002, Nos. 20, 65 and 107/2003, Nos. 36 and 65/2004, Nos. 28, 76, 77, 88, 94, 95, 103 and 105/2005):"1. certificate reflecting current status of commercial registration;". 26. The following amendments shall be made to the Tobacco and Tobacco Products Act (promulgated, SG, No. 101/1993; amended, No. 19/1994, No. 110/1996, No. 153/1998, No. 113/1999, Nos. 33 and 102/2000, No. 110/2001, No. 20/2003, Nos. 57 and 70/2004, Nos. 91, 95, 99 and 105/2005, No. 18/2006):1. Article 37, Item 1 of Paragraph (1) shall be amended as follows:"1. certificate reflecting current status of commercial registration;".2. In Attachment No. 1 to Article 6 and in Attachment No. 3 to Article 37 (1) throughout the word "BULSTAT" shall be substituted for "standard identification code". 27. The following amendments shall be made to the Grain Storage and Grain Trade Act (promulgated, SG, No. 93/1998; amended, No. 101/2000, Nos. 9 and 58/2003, Nos. 69 and 105/2005):1. In Article 11a (2):a) Item 1 shall be amended as follows:"1. certificate reflecting current status of commercial registration;";b) Item 2 shall be repealed.2. In Article 24 (4):a) Item 1 shall be amended as follows:"1. certificate reflecting current status of commercial registration;";b) Item 2 shall be repealed. 28. The following amendments shall be made to the Postal Services Act (promulgated, SG, No. 64/2000; amended, No. 112/2001, Nos. 45 and 76/2002, No. 26/2003, Nos. 19, 88, 99 and 105/2005, No. 17/2006):1. In Article 43 (2):a) Item 1 shall be amended as follows:"1. certificate reflecting current status of commercial registration;";b) Items 2 and 3 shall be repealed.2. In Article 59: a) in Item 1 of Paragraph (1) the words "registration under BULSTAT" shall be substituted for "the standard identification code";b) in Paragraph (2):aa) Item 1 shall be amended as follows:"1. certificate reflecting current status of commercial registration;";bb) Item 2 shall be repealed. 29. The following amendments shall be made to the Small and Medium-Sized Enterprises Act (promulgated, SG, No. 84/1999; amended, Nos. 80 and 92/2000, No. 42/2001, No. 28/2002, No. 64/2004) in Item 5 of 1 of the Supplementary Provision the words "respective district court" shall be substituted for "Registry Agency". 30. The following amendments shall be made to Article 7 in the Investments Promotion Act (promulgated, SG, No. 97/1997; corrected, No. 99/1997; amended, Nos. 29 and 153/1998, No. 110/1999, No. 28/2002, No. 37/2004; corrected, No. 40/2004): the words "the court in whose district of jurisdiction the registered office thereof is located" shall be substituted for "the Registry Agency". 31. The following amendments and supplements shall be made to the Commodity Exchanges and Wholesale Markets Act (promulgated, SG, No. 93/1996; amended, Nos. 41 and 153/1998, No. 18/1999, No. 20/2000, No. 41/2001):1. Article 14, Item 1 of Paragraph (3) shall be amended as follows:"1. certificate reflecting current status of respective trader entry in the Commercial Register;".2. Article 18 shall be amended as follows:"Article 18. (1) The Registry Agency shall enter in the Commercial Register the activity effected as commodity exchange after it has been provided with the permit issued by the commission.(2) The Registry Agency shall enter in the Commercial Register the activity effected as wholesale market after it has been provided with the permit issued by the commission."3. In Article 21: a) in Paragraph (1) the words "district court" shall be substituted for "Registry Agency" and a new sentence two shall be created: "In these cases the Commission shall appoint a liquidator and shall determine the time limit for effecting liquidation and remuneration of liquidator.";b) in Paragraph (2) the words "district court" shall be substituted for "Registry Agency". 32. The following amendments shall be made to Article 15 (2) of the Private Security Business Act (promulgated, SG, No. 15/2004; amended, No. 105/2005):1. Item 1 shall be amended as follows:"1. certificate reflecting current status of commercial registration;".2. Item 2 shall be repealed. 33. The following amendments shall be made to the Excise Duties and Tax Warehouses Act (promulgated, SG, No. 91/2005; amended, No. 105/2005):1. Article 48, Item 1 of Paragraph (2) shall be amended as follows:"1. certificate reflecting current status of commercial registration;".2. In Article 51, Item 5 of Paragraph (1) the word "BULSTAT" shall be substituted for "standard identification code".3. In Article 54, Item 2 of Paragraph (3) the word "BULSTAT" shall be substituted for "standard identification code".4. In Article 56, Item 2 of Paragraph (2) the word "BULSTAT" shall be substituted for "standard identification code".5. In Article 57 (3):a) Item 1 shall be amended as follows:"1. certificate reflecting current status of entry in the Commercial Register - original or notarized copy thereof;";b) Item 5 shall be amended as follows:"5. copy of tax registration certificate attested by the person;". 34. The following amendments and supplements shall be made to the Road Traffic Act (promulgated, SG, No. 20/1999; amended, No. 1/2000, Nos. 43, 45 and 76/2002, Nos. 16 and 22/2003, Nos. 6, 70, 85 and 115/2004, Nos. 79, 92, 99, 102, 103 and 105/2005):1. In Article 148 (3):a) Item 1 shall be amended as follows:"1. a copy of the court judgement for registration under the procedure of the Non-for-Profit Legal Entities Act, respectively certificate reflecting the current status of entry in the Commercial Register;";b) "for not-for-profit legal entities" shall be added at the end of Item 2.2. In Article 152 (3):a) Item 1 shall be repealed;b) Item 2 shall be amended as follows:"2. certificate reflecting current status of commercial registration;". 35. The following amendments shall be made to the Waste Management Act (promulgated, SG, No. 86/2003; amended, No. 70/2004, Nos. 77, 87, 88, 95 and 105/2005):1. In Article 30: a) in Paragraph (3) the words "court registration of the persons referred to in the Commercial Act: shall be substituted for "the registered office of the persons under the Commercial Register ";b) in Paragraph (3) the words "court registration pursuant to the Commercial Act: shall be substituted for "the registered office under the Commercial Register ";2. In Article 39, Item 3 of Paragraph (1) the words "current court status" shall be substituted for "entry into the Commercial Register".3. In Article 51 (1):a) in Item 1 the words "current court status" shall be substituted for "entry into the Commercial Register";b) Item 2 shall be repealed.4. In Article 54: a) in Article 4:aa) in Item 1 the words "current court status" shall be substituted for "entry into the Commercial Register";bb) Item 5 shall be repealed;b) In Paragraph (5) the words "and 5" shall be erased;c) In Paragraph (6) the figure "5" shall be erased.5. In Article 57 (2) the words "number of company case, number of volume and on the dockets for the year, identification code under BULSTAT register" shall be substituted for "standard identification code".6. In Article 62 (4):a) in Item 1 the words "current court status" shall be substituted for "entry into the Commercial Register";b) Item 2 shall be repealed.7. In Article 67, Item 2 of Paragraph (1) the words "court status" shall be substituted for "status according to Commercial Register".8. In Article 80 (1):a) in Item 1 the words "certificate reflecting current status of court registration" shall be substituted for "certificate reflecting current status of commercial registration";b) in Item 3 the words "certificate reflecting current status of court registration" shall be substituted for "certificate reflecting current status of commercial registration".9. In Article 84, Item 3 the words "certificate reflecting current status of court registration" shall be substituted for "certificate reflecting current status of commercial registration".10. In Article 87, Item 2 of Paragraph (2) the word "BULSTAT" shall be substituted for "standard identification code". 36. The following amendments and supplements shall be made to the Foodstuffs Act (promulgated, SG, No. 90/1999; amended, No. 102/2003, No. 70/2004, Nos. 87, 99 and 105/2005):1. Article 12, Item 1 of Paragraph (3) shall be amended as follows:"1. a certificate reflecting current status of entry in the Commercial Register in case applicant is a trader;".2. In Article 19 (2) the words "code under BULSTAT" shall be substituted for "standard identification code".3. In Article 22b (1) "in case said person is not trader, and standard identification code in case said person is trader" shall be added in the text before Item 1 and after the words "legal person".4. Article 25a, Item 1 of Paragraph (3) shall be amended as follows:"1. certificate reflecting current status of entry in the Commercial Register of the Bulgarian importing company;". 37. The following amendments and supplements shall be made to the Act on Administrative Regulation of the Manufacture and Trade in Optical Disks Stampers and other Storage Media Loaded with Subject Matter of Copyright and Neighbouring Rights (promulgated, SG, No. 74/2005; amended, No. 105/2005):1. In Article 8: a) in Item 1 of Paragraph (1) the words "identification code under BULSTAT" shall be substituted for "standard identification code" and the word "court" shall be substituted for "commercial";b) In Paragraph (2):aa) Item 1 shall be amended as follows:"1. certificate reflecting current status of entry in the Commercial Register;";bb) Items 2 and 4 shall be repealed.2. In Article 9 (9):a) in Item 2 the word "court" shall be substituted for "commercial";b) Item 4 shall be amended as follows:"4. standard identification code;".3. in Item 5 of Article 12 the word "court" shall be substituted for "commercial".4. in Article 14, Item 5 of Paragraph (1) the word "court" shall be substituted for "commercial".5. in Article 15, Item 1 of Paragraph (1) the words "identification code under BULSTAT register" shall be substituted for "standard identification code" and the words "court registration" shall be substituted for "registration in the Commercial Register".6. In Article 17 (1):a) in Item 2 the word "court" shall be substituted for "commercial";b) Item 3 shall be amended as follows:"3. standard identification code;".7. In Article 20: a) "respectively standard identification number for traders" shall be added after the word "BULSTAT" in Item 1 of Paragraph (1) and "respectively commercial" shall be added after the word "court";b) Item 2 of Paragraph (2) shall be amended as follows:"2. certificate of current status of entry in the Commercial Register, in case the applicant is a trader;".8. "respectively standard identification number for traders" shall be added after the word "BULSTAT" in Article 22, Item 2 of Paragraph (1) and "respectively commercial" shall be added after the word "court".9. "respectively standard identification number for traders" shall be added after the word "BULSTAT" in Article 24, Item 1 of Paragraph (1) and "respectively commercial" shall be added after the word "court".10. "respectively standard identification number for traders" shall be added after the word "BULSTAT" in Article 25, Item 1 of Paragraph (1) and "respectively commercial" shall be added after the word "court"11. "respectively standard identification number for traders" shall be added after the word "BULSTAT" in Article 27, Item 2 of Paragraph (1) and "respectively commercial" shall be added after the word "court".12. "respectively standard identification number for traders" shall be added after the word "BULSTAT" in Article 28, Item 2 of Paragraph (1) and "respectively commercial" shall be added after the word "court".13. In Article 30 (4):a) Item 1 shall be amended as follows:"1. certificate of current status of entry in the Commercial Register issued within two months prior to the filing of the application;";b) Item 3 shall be repealed;c) in Item 4 the word "court" shall be substituted for "commercial".14. In Article 34 (1):a) in Item 2 the words "number of company case" shall be erased;b) in Item 3 the word "court" shall be substituted for "commercial";c) Item 4 shall be amended as follows:"4. standard identification code;".15. in Item 5 of Article 36 the word "court" shall be substituted for "commercial".16. "respectively standard identification number for traders" shall be added after the word "BULSTAT" in Article 41, Item 1 of Paragraph (1) and "respectively commercial" shall be added after the word "court".17. "respectively standard identification number for traders" shall be added after the word "BULSTAT" in Article 42, Item 1 of Paragraph (1) and "respectively commercial" shall be added after the word "court".18. In Article 48 (1) the word "respectively commercial" shall be added after the word "court".19. In Article 51 (1) the word "respectively commercial" shall be added after the word "court". 38. The following amendments shall be made to the Wine and Spirits Act (promulgated, SG, No. 86/1999; amended, No. 56/2002, Nos. 16, 108 and 113/2004, Nos. 99 and 105/2005, No. 18/2006):1. In Article 23a, Item 3 of Paragraph (3) the words "copy of identification card under BULSTAT register and" shall be erased.2. In Article 40 (4):a) Item 1 shall be amended as follows:"1. certificate of current status of entry in the Commercial Register;";b) Item 7 shall be amended as follows:"7. attested by trader copy of certificate of registration under the Taxation and Social Insurance Procedure Code;". 39. The following amendments and supplements shall be made to the Animal Husbandry Act (promulgated, SG, No. 65/2000; amended, No. 18/2004, Nos. 87 and 105/2005):1. In Article 14b: a) in Paragraph (1) "respectively standard identification code for traders" shall be added after the words "under BULSTAT";b) in Item 1 of Paragraph (2) "certificate reflecting current status of entry in the Commercial Register for traders, respectively" shall be added before the words "judgement for court".2. In Paragraph 4 of Article 15: a) Item 1 shall be amended as follows:"1. certificate reflecting current status of entry in the Commercial Register;";b) Items 2 and 3 shall be repealed. 40. The following amendments and supplements shall be made to the Skilled Crafts Act (promulgated, SG, No. 42/2001; amended, No. 112/2001, No. 56/2002, Nos. 99 and 105/2005, No. 10/2006):1. In Article 23, Item 1 of Paragraph (1) the words "registration and BULSTAT" shall be substituted for "commercial registration and the standard identification code ".2. In Article 24: a) in Item 1 of Paragraph (2) "and the standard identification code for traders, respectively the identification code under BULSTAT for the remaining persons" shall be added at the end;b) Item 1 of Paragraph (2) shall be amended as follows:"2. for the persons registered under the Commercial Act and the Cooperatives Act - certificate reflecting current status of entry in the Commercial Register;". 41. The following amendments and supplements shall be made to the Biological Diversity Act (promulgated, SG, No. 77/2002; amended, Nos. 88 and 105/2005):1. Article 43a, Item 3 of Paragraph (5) shall be amended as follows:"3. certificate reflecting current status of entry in the Commercial Register."2. Article 81, Item 2 of Paragraph (2) shall be amended as follows:"2. certificate reflecting current status of entry in the Commercial Register;".3. Article 82, Item 4 of Paragraph (2) shall be amended as follows:"4. certificate reflecting current status of entry in the Commercial Register;".4. In Article 92, Item 1 of Paragraph (1) "or standard identification code for traders" shall be added at the end.5. In Article 97: a) in Paragraph 1 "or commercial" shall be added after the word "court";b) in Item 1 of Paragraph (2) "or standard identification code for traders" shall be added at the end. 42. The following supplements shall be made to the Forestry Act (promulgated, SG, No. 125/1997; amended, Nos. 79 and 133/1998, No. 26/1999, Nos. 29 and 78/2000, Nos. 77, 79 and 99/2002, Nos. 16 and 107/2003, Nos. 72 and 105/2005):1. In Article 14c, Item 1 of Paragraph (1) certificate reflecting current status of entry in the Commercial Register" shall be added after the word "identity".2. In Article 16a, Item 1 of Paragraph (2) certificate reflecting current status of entry in the Commercial Register" shall be added after the word "identity".3. In Article 68a, Item 4 of Paragraph (2) "certificate reflecting current status of entry in the Commercial Register, respectively" shall be added in the beginning before the word "certificate".4. In Article 68b, Item 5 of Paragraph (2) "certificate reflecting current status of entry in the Commercial Register, respectively" shall be added in the beginning before the word "certificate".5. In 123, Item 1 of Paragraph (2) "certificate reflecting current status of entry in the Commercial Register" shall be added after the word "identity". 43. In Article 15 of the Privatization Funds Act (promulgated, SG, No. 1/1996; amended, Nos. 68 and 85/1996, Nos. 39 and 52/1998, No. 114/1999) the words "The district court shall make an entry of the privatization fund" shall be substituted for "The privatization fund shall be entered". 44. The following amendments shall be made to the Special Purpose Investment Companies Act (promulgated, SG, No. 46/2003; amended, No. 109/2003, No. 107/2004):1. In Article 5 (4) the words "reception of court judgement" shall be substituted for "entry".2. In Article 14: a) in Paragraph (1) the words "the court on registration of special purpose investment companies" shall be substituted for "the Registry Agency";b) in Paragraph (2) the word "court" shall be substituted for "Registry Agency";c) in Paragraph (3) the word "the court by registration amends ex officio" shall be substituted for "the Registry Agency enters ex officio amendment to".3. Article 15 (3) shall be amended as follows:"(3) The amendment to the statutes shall be entered in the Commercial Register following presentation of the approval referred to in Paragraph (1)." 45. The following amendments shall be made to the Electronic Document and Electronic Signature Act (promulgated, SG, No. 34/2001; amended, SG No. 112/2001):1. In Article 24 (1):a) in Item 1 the word "BULSTAT" shall be substituted for "standard identification code";b) in Item 2 the words "court registration" shall be substituted for "the registration".2. Article 36, Item 1 of Paragraph (1) shall be amended as follows:"1. certificate reflecting current status of entry in the Commercial Register;". 46. The following amendments shall be made to the Protection against the Harmful Impact of Chemical Substances and Preparations Act (promulgated, SG, No. 10/2000; amended, No. 91/2002, Nos. 86 and 114/2003, Nos. 100 and 101/2005):1. Article 14d, Item 1 of Paragraph (2) shall be amended as follows:"1. certificate reflecting current status of entry in the Commercial Register;".2. In Article 18 (1):a) Littera "a" in Item 1 shall be amended as follows:"a) certificate reflecting current status of entry in the Commercial Register;"b) Littera "a" in Item 2 shall be amended as follows:"a) certificate reflecting current status of entry in the Commercial Register".3. In Item 2 of Article 19f the word "court" shall be substituted for "commercial".4. Article 19h, Item 1 of Paragraph (1) shall be amended as follows:"1. certificate reflecting current status of entry in the Commercial Register;".5. Item 1 of Article 19r shall be amended as follows:"1. certificate reflecting current status of entry in the Commercial Register;".6. Article 19u, Item 2 of Paragraph (1) shall be amended as follows:"2. certificate reflecting current status of entry in the Commercial Register;".7. In Article 22a, Item 1 of Paragraph (2) the words "certificate reflecting current status of court registration" shall be substituted for "certificate reflecting current status of entry in the Commercial Register".8. In Article 22e, Item 2 of Paragraph (1) the words "certificate reflecting current status of court registration" shall be substituted for "certificate reflecting current status of entry in the Commercial Register". 47. In the Health Act (promulgated, SG, No. 70/2004; amended, No. 46/2005, Nos. 76, 85, 88, 94 and 103/2005, No. 18/2006), Article 36 (1) the words "and for traders - data from court registration" shall be substituted for "and in the case of a trader - to present certificate reflecting current status of entry in the Commercial Register". 48. The following amendments and supplements shall be made to the Health Insurance Act (promulgated, SG, No. 70/1998; amended, Nos. 93 and 153/1998, Nos. 62, 65, 67, 69, 110 and 113/1999, Nos. 1, 31 and 64/2000, No. 41/2001, Nos. 1, 54, 74, 107, 112, 119 and 120/2002, Nos. 8, 50, 107 and 114/2003, Nos. 28, 38, 49, 70, 85 and 111/2004, Nos. 39, 45, 76, 99, 102, 103 and 105/2005, Nos. 17 and 18/2006):1. Article 88, Item 1 of Paragraph (2) shall be amended as follows:"1. certificate reflecting current status of entry in the Commercial Register; number and date of issue of health insurance company licence;".2. Article 95, Item 1 of Paragraph (2) shall be amended as follows:"1. Applicant data - name, personal identity number, permanent address - for natural persons; certificate reflecting current status of entry in the Commercial Register;".3. In Article 99, Item 2 of Paragraph (1) "respectively standard identification code - for traders" shall be added after the words "legal persons". 49. The following amendments shall be made to the Registered Pledges Act (promulgated, SG, No. 100/1996; amended, No. 86/1997, No. 42/1999, Nos. 19 and 58/2003, Nos. 34 and 43/2005):1. In Article 21: a) in Paragraph (2) the word "lot" shall be substituted for "case";b) Paragraph (6) shall be amended as follows:"(6) Simultaneously with the entry of transformation the Registry Agency shall enter into the company case of each of the transforming companies, as well as of the sole trader in the case of transfer of property to sole proprietor, and the transfer of the pledge of commercial corporation to the respective successor."2. In Article 50 the words "by the court according to registration" shall be substituted for "by a judgement of the court ".3. In Article 51 the words "court according to registration" shall be substituted for "Registry Agency". 50. The following amendments and supplements shall be made to the Insurance Code (promulgated, SG, No. 103/2005; amended, No. 105/2005):1. In Article 35: a) In Paragraph (1) the words "The court shall enter into the Register of Commercial Corporations" shall be substituted for "Entries in the Commercial Register ";b) in Paragraph (2) the words "copy of court judgement" shall be substituted for "the certificate" and "in the Commercial Register" shall be added at the end".2. In Article 44: a) in Paragraph (1) the words "The court shall enter the branch in the Register of Commercial Corporations" shall be substituted for "A branch shall be entered in the Commercial Register";b) in Paragraph (2) the words "court judgement" shall be substituted for "the certificate" and "in the Commercial Register" shall be added at the end.3. In Article 120, Item 1 of Paragraph (1) the words "by the court" shall be erased.4. In Article 122: a) the title shall be amended as follows "Entry of Dissolution";b) in Paragraph (1) the word "court" shall be substituted for "Registry Agency";c) Paragraph (2) shall be amended as follows:"(2) The insurer shall be obligated to present before the commission a certificate of entry referred to in Paragraph (1) within three work days following the recordation."5. In Article 123: a) Paragraph (1) shall be amended as follows:"(1) In the cases referred to in Item 2 of Article 199 a procedure on liquidation shall be launched by a decision of the commission. The decision shall include the grounds for withdrawal of licence and shall appoint a liquidator, the remuneration thereof and the time limit for effecting the liquidation. The decision shall be sent to the Registry Agency for entry into the Commercial Register."b) Paragraph (2) shall be amended as follows:"(2) The Registry Agency shall enter the dissolution of the insurer and the name of the liquidator."6. Article 124 (3) shall be amended as follows:"(3) In the cases referred to in Paragraph (2) the Commission may discharge the liquidator, whereupon it shall send its decision thereof to the Registry Agency for entry."7. In Article 125 the words "court and" shall be erased.8. In Article 139: a) in Paragraph (1)the words "The judgement of the court on opening procedure on liquidation or bankruptcy" shall be substituted for "The entry of the opening of a procedure on liquidation, as well as the judgement of the court to open a procedure on bankruptcy" and the word "has" shall be substituted for "have";b) Paragraph (2) shall be amended as follows:"(2) Simultaneously with entry in the Commercial Register of the opening of the procedure on liquidation and the disclosure in the Commercial Register of the judgement of the court for opening procedure on bankruptcy, the Registry Agency shall send the court judgment for publication in the Official Journal of the European Union, as well as information about the applicable law, the competent court and the entered liquidator, respectively trustee into bankruptcy.";c) in Paragraph (3) the word "the decision for opening a procedure on liquidation or" shall be substituted for "the entry of opening a procedure on liquidation or the decision for opening the procedure ".9. Article 302 (8) shall be amended as follows:"(8) At the request of the Deputy Chairperson, respectively of the commission, the circumstances, respectively the acts referred to in Items 3, 7, 9, 10 and 11 of Paragraph (2) shall be entered in the Commercial Register."10. Article 310, Item 3 of Paragraph (1) shall be amended as follows:"3. The licence of insurer is withdrawn until the appointment of trustee into bankruptcy or entry of liquidator into the Commercial Register." 51. The following amendments shall be made to the Banking Act (promulgated, SG, No. 52/1997; supplemented, No. 15/1998; amended, Nos. 21, 52, 70 and 89/1998, Nos. 54, 103 and 114/1999, Nos. 24, 63, 84 and 92/2000, No. 1/2001, Nos. 45, 91 and 92/2002, No. 31/2003, Nos. 19, 31, 39 and 105/2005):1. Article 22 shall be amended as follows:"Article 22. (1) Following the passage of a decision for withdrawal of licence of a bank the Central Bank shall:1. in the cases of Article 21 (1) appoint a liquidator and determine the time limit in which the liquidation should be effected; the decision shall be sent for entry into the Commercial Register; or2. in the case of Article 21 (2) shall address a request to the respective district court for opening a procedure on bankruptcy.(2) The decision referred to in Item 2 of Paragraph (1) shall be promulgated in the State Gazette."2. Article 65 (5) shall be amended as follows:"(5) At the request of the Central Bank the circumstances shall be entered, respectively the acts referred to in Paragraph (2) shall be disclosed." 52. The following amendments shall be made to the Bank Bankruptcy Act (promulgated, SG, No. 92/2002; amended, No. 67/2003, No. 36/2004, Nos. 31 and 105/2005):1. Article 15 shall be amended as follows:"Recordation of Court JudgementsArticle 15. The court judgement referred to in Article 13 (1) shall be entered in the Commercial Register."2. Article 16 (5) shall be amended as follows:"(5) The decision whereby a judgement under Article 13 (1) or Article 14 is repealed, shall be entered in the Commercial Register."3. In Article 19 (2) the words "be promulgated in the State Gazette shall be substituted for "entry into the Commercial Register".4. In Article 24 (2) the words "promulgation in the State Gazette shall be substituted for "entered into the Commercial Register".5. In Article 26: a) in Paragraph (5) the words "respective court register and shall be promulgated in the State Gazette" promulgated in the State Gazette shall be substituted for "Commercial Register".b) in Paragraph (6), second sentence the words "court register and promulgation in the State Gazette" promulgated in the State Gazette shall be substituted for "Commercial Register" and sentence three shall be erased;c) Paragraph 7 shall be repealed.6. In Article 29: a) in Paragraph (3) the words "respective court register and shall be promulgated in the State Gazette" shall be substituted for "Commercial Register";b) in Paragraph (4), sentence one, "as well as to the Registry Agency" shall be added at the end, and sentences two and three shall be erased;c) Paragraph (5) shall be repealed.7. In Article 56 (1) the word "promulgation" shall be substituted for "entry".8. In Article 59 (4) the word "promulgation" shall be substituted for "entry".9. In Article 63 (1) the word "promulgation" shall be substituted for "entry".10. In Article 64 (2) the words "notice in State Gazette" shall be substituted for "declare for disclosure in the Commercial Register", and the words "promulgation of notification" shall be substituted for "notification".11. In Article 105: a) in Paragraph (4) the words "respective court register and shall be promulgated in the State Gazette" shall be substituted for "Commercial Register";b) in Paragraph (5) the words "promulgation thereof in the State Gazette" shall be substituted for "entry thereof in the Commercial Register".12. In Article 109 (2) the word "promulgation" shall be substituted for "entry". 53. The following amendments and supplements shall be made to the Public Offering of Securities Act (promulgated, SG, No. 114/1999; amended, Nos. 63 and 92/2000, Nos. 28, 61, 93 and 101/2002, Nos. 8, 31, 67 and 71/2003, No. 37/2004, Nos. 19, 31, 39, 103 and 105/2005):1. Article 31 shall be amended as follows:"Article 31. The Registry Agency shall enter the stock exchange in the Commercial Register after it is presented with the licence issued by the commission."2. In Article 36 the words "the court by registration" shall be substituted for "the Registry Agency" and sentence two shall be created: "In these cases the commission shall appoint a liquidator, determine the time limit for effecting the liquidation and the remuneration of the liquidator."3. Article 49 shall be amended as follows:"Article 49. The Registry Agency shall enter in the Commercial Register object of activity organisation of unofficial market of securities pursuant to Article 44 (2) after it is presented with the licence issued by the commission."4. Article 67 shall be amended as follows:"Article 67. The Registry Agency shall enter in the Commercial Register the company, respectively the right to provide services and engage in activities pursuant to Article 54 (2) and (3) in its object of activity, after it is presented with the licence issued by the commission."5. Article 74a (6) shall be amended as follows:"(6) The Registry Agency shall enter in the Commercial Register the changes referred to in Items 1 and 2 of Paragraph (1) after it is presented with an approval issued by the commission, respectively the deputy Chairperson."6. In Article 89 (2) the words "to the court" shall be erased.7. Article 92 (4) shall be amended as follows:"(4) Except in the cases of Article 79, Items 3, 4, 5, 6 and 8 of Paragraph (1) entries in the Commercial Register shall include the raising of capital under the conditions of Article 5 following presentation of the confirmation issued by the commission."8. In Article 112c, sentence two the words "before the court" shall be erased.9. Article 115 (2) shall be amended as follows:"(2) The company shall be obligated to disclose the notice referred to in Article 223 (4) of the Commerce Act in the Commercial Register and to publish it in a central daily at least 30 days prior to its opening."10. In Article 122 (2) the words "in court" shall be erased.11. In Article 183: a) Paragraph (1) shall be amended as follows:"(1) The Registry Agency shall enter the investment company into the Commercial Register after it is presented with the respective licence issued by the commission.";b) in Paragraph (2) the words "copy of court judgement" shall be substituted for "certificate of entry".12. In Article 192 (5) the word "The court" shall be substituted for "The Registry Agency".13. Article 207 shall be amended as follows:"Article 207. The Registry Agency shall enter in the Commercial Register the company, respectively the right to engage in activities pursuant to Article 202 in its object of activity, after it is presented with the licence issued by the commission."14. Article 212 (7) shall be amended as follows:"(7) Upon request of the commission, respectively the deputy chairperson, the Registry Agency shall enter the circumstances, respectively disclose the acts pursuant to Paragraph (1), into the Commercial Register." 54. The Council of Ministers shall, by October 1, 2006, file with the National Assembly bills on the amendment and supplementation of the laws whose provisions have to be brought in alignment with this Act. 55. The subordinate legislation on the application of this Act shall be passed within the term of enforcement thereof. 56. (Amended, SG No. 80/2006, SG No. 53/2007) This Act shall become effective as of 1 January 2008, with the exception of 2 and 3, which shall become effective on the day the Act is promulgated in the State Gazette. 57. The implementation of this Act is hereby commissioned to the Council of Ministers and the Supreme Judicial Council.This Act was passed by the 40th National Assembly on March 24, 2006 and on April 20, 2006, and is stamped with the official seal of the National Assembly. For more information visit www.solicitorbulgaria.com id: 289 Wed, 30 Jul 2008 08:02:29 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-commercial-register-act http://web.solicitorbulgaria.com/index.php/bulgarian-commercial-register-act http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/COMMERCIAL_REGISTER_ACT.JPG EUR http://web.solicitorbulgaria.com/index.php/bulgarian-commercial-register-act legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Section IIITransformation by Change of the Legal FormChange of the Legal FormArticle 264(Amended, SG No. 58/2003)(1) A company (transforming company) may transform by change of the legal form, thus converting into a company of another type (newly established company). The newly established company shall become the legal successor of the transforming company, which shall be terminated without liquidation.(2) Simultaneously with the change of the legal form, no new partners or shareholders may be accepted.Transformation PlanArticle 264a(New, SG No. 58/2003)(1) In case of a change of the legal form, the governing body or the partners with management rights in a personal company shall draw up a transformation plan in writing with notarization of the signatures.(2) The transformation plan must include at least the following:1. (supplemented, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) the legal form, the trade name, the standard identification… For more information visit http://www.solicitorbulgaria.com id: 292 Section IIITransformation by Change of the Legal FormChange of the Legal FormArticle 264(Amended, SG No. 58/2003)(1) A company (transforming company) may transform by change of the legal form, thus converting into a company of another type (newly established company). The newly established company shall become the legal successor of the transforming company, which shall be terminated without liquidation.(2) Simultaneously with the change of the legal form, no new partners or shareholders may be accepted.Transformation PlanArticle 264a(New, SG No. 58/2003)(1) In case of a change of the legal form, the governing body or the partners with management rights in a personal company shall draw up a transformation plan in writing with notarization of the signatures.(2) The transformation plan must include at least the following:1. (supplemented, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) the legal form, the trade name, the standard identification code and the registered address of the newly established company;2. the exchange ratio of the shares or interest stakes as determined as of a specific date;3. the amount of cash payments, if any are provided for according to Article 261b, paragraph 2, and a time limit for paying them in;4. a description of the interest stakes, the shares or membership which each partner or shareholder acquires in the newly established company, and data concerning any existing pledges and attachments5. the conditions concerning the distribution and hand-over of the shares in the newly established company;6. the rights which shareholders with special rights and holders of securities which are not shares obtain.(3) The transformation plan shall enclose also a draft for a new membership agreement or articles of incorporation of the newly established company.Provision of InformationArticle 264b(New, SG No. 58/2003)(1) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The transformation plan shall be submitted for recordation in the Commercial register. If the transforming company is an equity one, the submitted plan shall be recorded not later than 30 days prior to the date of the general meeting on taking the decision to transform.(2) The following shall be made available to the partners and the shareholders:1. The transformation plan together with the draft for a new membership agreement or articles of incorporation of the newly established company;2. the balance sheet as of the last of the month preceding the date of the transformation plan, unless the most recent annual financial statements refer to a financial year ended less than 6 months prior to that date;3. data concerning the appointed examiner and the authorized depository under Article 262x.(3) The papers referred to in paragraph 2 shall be made available at the seat and address of equity companies within 30 days prior to the date of the general meeting. On request, a copy of the papers or summaries of these shall be made available to each partner or shareholder free of charge.(4) The time period referred to in paragraph 3 does not need to be observed if all partners or shareholders have voted for the transformation.Examination of the TransformationArticle 264c(New, SG No. 58/2003)(1) Where the newly established company is an equity one, the transformation plan shall be reviewed by an examiner specially appointed by the governing body or by the partners with management rights.(2) The examiner shall produce a report from the examination to the partners or the shareholders. The report must include an assessment of whether the exchange ratio envisaged in the plan is adequate and reasonable and must indicate the data referred to in Article 262m, paragraph 2.(3) With respect to the examiner, the rules of Article 262l, paragraphs 3 and 4 and Article 262m, paragraph 3 shall apply, respectively.(4) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) Except for cases under paragraph 1, An examination of the transformation shall be done also upon the request of a partner or shareholder or under a decision of a governing or control authority of the company. Where the examination has been requested by a partner, a shareholder or a control authority, the examiner shall be appointed by the registrar with the Recordation Agency.Decision to TransformArticle 264d(New, SG No. 58/2003)(1) The change in the legal form of the company shall be made under a decision to transform according to Article 262p.(2) Where in case of a change of the legal form, a partner in a limited liability company or a shareholder becomes an unlimited liability partner, Article 262q shall apply.(3) Under the decision to transform, the transformation plan shall be approved or amended. Under this decision, the membership agreement and/or articles of incorporation of the newly established company shall be adopted and the bodies elected, and thus the requirements as to the form of the membership agreement or articles of incorporation shall be considered met.Capital of the Newly Established CompanyArticle 264e(New, SG No. 58/2003)(1) Where the newly established company is an equity one, the amount of its capital may not be larger than the net worth of the property of the transforming company. In this case, the examiner shall conduct an examination as to compliance with this requirement.(2) The rules of Article 262u, paragraphs 2 and 3 shall apply, respectively.Additional Rules in Case of a Joint-Stock Company anda Company Limited by SharesArticle 264f(New, SG No. 58/2003)(1) With respect to holders of bearer's shares and of special rights which are not shares in the transforming company, Article 262y and Article 262w shall apply, respectively.(2) With respect to the handing over of shares in the newly established company, Article 262x shall apply, respectively.RegistrationArticle 264g(New, SG No. 58/2003)(1) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The change of the legal form shall be subject to recordation in the Commercial Register not earlier than 14 days from the date of the filing.(2) The application for registration shall be filed by the governing body or by a partner with management rights in the newly established company, and the following shall be attached to it:1. the decision to transform;2. the expressions of consent referred to in Article 264d, paragraph 2;3. the adopted membership agreement and/or articles of incorporation of the newly established company and the documents necessary for the registration of the bodies elected;4. the examiner's report, if an examination has been made;5. the list of the persons acquiring shares, interest stakes or membership in the newly established company, and the type of membership;6. the depository's certification stating that it has been handed over the temporary certificates or the shares, or the proof that the circumstances referred to in Article 262x, paragraph 5 have been declared before the Central Depository, as the case may be.(3) (Repealed, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) .Registration EffectArticle 264h(New, SG No. 58/2003)(1) A change of the legal form shall take effect as from the registration in the commercial register.(2) With the registration of the change of the legal form, the transforming company shall be terminated and the newly established one shall arise. The rights and the obligations of the transforming company shall be transferred in their entirety onto the newly established company.(3) The partners and the shareholders in the transforming company shall become partners or shareholders in the newly established one.(4) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) Where the property of a transforming company includes a property right of a real property or a movable asset transactions with which are subject to registration, the certificate of recordation of the change of the legal form shall be submitted for recordation in the respective register.(5) Any permits, licenses or concessions held by the transforming company shall transfer onto the newly established company to the extent that a law or the action of award does not provide otherwise.(6) As of the date of registration, a closing and an opening balance sheet shall be drawn up according to Article 263h, paragraphs 1 and 2.Protection of CreditorsArticle 264i(New, SG No. 58/2003)(1) Unlimited liability partners in the transforming company shall remain liable before the creditors for obligations that have arisen prior to the date of the change of the legal form. Where a person becomes an unlimited liability partner in the newly established company, such person shall not be liable for the obligations that have arisen prior to the date of the change of the legal form.(2) Partners or shareholders in the transforming company shall not be held free of the obligation concerning contributions which have not been paid in full.(3) Where the transforming company is an equity one, and the newly established company is a personal one or a company with a smaller amount of the capital, creditors holding claims that have arisen prior to the change of the legal form may request securitization up to the amount of the difference in the capital.Contending the TransformationArticle 264k(New, SG No. 58/2003)(1) Any partner or shareholder in the transforming company may lodge a claim with the regional court in the jurisdiction of which its seat is located in order to establish that in the change of the legal form any of the following violations have occurred:1. a transformation plan is lacking or the plan is null and void;2. failure to meet the requirements of Article 264а, paragraph 1 and paragraph 2, subparagraphs 1, 2 and 6, Articles 264b - 264e and Article 262w, paragraph 1;3. the decision to transform contradicts prescriptive provisions of the law or the founding agreement, or the articles of incorporation of the company, as the case may be.(2) A non-equivalent exchange ratio is not grounds for filing a claim pursuant to paragraph 1.(3) The claim referred to in paragraph 1 shall be lodged against the transforming company not later than before the registration of the change of the legal form. Any partner or shareholder may step into the proceedings and sustain the claim, even if the claimant should give it up or withdraw it.(4) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The filing of the claim as per paragraph (1) shall result in suspension of the recordation of transformation. Recordation of the transformation shall be denied by force of the effective court decision sustaining the claim.(5) (Amended, SG No. 59/2007) The claim under paragraph 1 shall be considered according to the rules set out in chapter Thirty-Two Proceedings on Commercial Disputes of the Code of Civil Procedure. (6) The decision to transform may not be attacked by lodging a claim under Article 74.Nullity of the Newly Established CompanyArticle 264l(New, SG No. 58/2003, amended - SG No. 66/2005) After the change of the legal form has been registered, a partner or a shareholder may request that it be declared null and void. Article 263p shall apply, respectively.Protection of a Partner or a ShareholderArticle 264m(New, SG No. 58/2003)(1) Any partner or shareholder may, within three months following the date of the registration of the change of the legal form, lodge a claim for cash settlement with the regional court, if the exchange ratio adopted under the transformation plan is not equivalent.(2) A partner in a limited liability company or a shareholder whose legal status is changing after the change of the legal form and which has voted against the decision to transform may leave the newly established company. Article 263r shall apply, accordingly.Change of the Legal Form of a Sole-Owner CompanyArticle 264n(New, SG No. 58/2003)(1) Where a change of the legal form of a sole-owner company is being effected, no transformation plan needs to be drawn up and there is no obligation to provide information. The appointed examiner shall conduct only an examination of the capital as referred to in Article 264e.(2) The sole owner of the capital shall not have the rights referred to in Articles 264k, 264l and 264m.Section IVTransformation by Transfer of Property onto the Sole OwnerTransfer of Property onto the Sole OwnerArticle 265(1) (Amended, SG No. 58/2003) The entire property of a sole-owner company (transforming company) may transfer onto the sole owner if he is a natural person and has been registered as a sole proprietor. The transforming company shall be terminated without liquidation.(2) No transformation under paragraph 1 may be effected if the interest stakes or shares in the transforming company have been pledged or placed under an attachment.(3) The decision to transform shall be taken by the sole owner in writing with notarization of the signature.RegistrationArticle 265a(New, SG, No. 58/2003)(1) (Amended, SG, No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The transfer of property to the single proprietor shall be recorded in the Commercial Register both in that single proprietor's file and in the file of the transforming company which is deleted.(2) (Repealed, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) .(3) (Repealed, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) .(4) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) From the moment of recordation the creditors shall be deemed to have been notified of their rights under Art. 265b.EffectArticle 265b(New, SG, No. 58/2003)(1) (Amended, SG, No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The transfer of property to the single proprietor shall take effect from the moment of recordation thereof in the Commercial Register, in the file of the transforming company.(2) With the registration, all rights and obligations of the transforming company shall transfer onto the sole proprietor.(3) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) Where the property of a transforming company includes a property right of a real property or a movable asset transactions with which are subject to registration, the certificate of recordation of the transfer of property to the single proprietor shall be submitted for recordation in the respective register.(4) Any permits, licenses or concessions held by the transforming company shall transfer onto the sole proprietor, to the extent that a law or the action of award does not provide otherwise.Protection of CreditorsArticle 265c(New, SG, No. 58/2003)(1) (Amended and supplemented, SG, No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The single proprietor shall manage separately the property of the transforming company transferred to said proprietor's name for a period of 6 months from the moment of recordation of the transformation(2) Within the time limit referred to in paragraph 1, any creditor of the transforming company and of the sole proprietor whose claim has not been secured and has arisen prior to the registration may request execution or securitization, in accordance with its rights. If the request is not satisfied, the creditor shall be entitled to privileged satisfaction from the rights which used to belong to its debtor.(3) While the time period for separate management is running, the sole proprietor may not request to be removed from the commercial register. - Section V (New, SG No. 104/2007)Transformation Involving Companies from Member States of European Union or from Another Contracting Party to Agreement on the European Economic AreaApplicabilityArticle 265d(New, SG No. 104/2007)(1) Transformation according to the procedure established by this Section shall be effected only through merger by acquisition and merger by the formation of a new corporation, where at least one of the companies involved in the transformation has its registered office in another Member State of the European Union or in a Contracting Party to the Agreement on the European Economic Area, and is of a type specified in Article 1 of the First Council Directive (68/151/EEC) on coordination of safeguards which, for the protection of the interests of members and others, are required by Member States of companies within the meaning of the second paragraph of Article 58 of the Treaty, with a view to making such safeguards equivalent throughout the Community, and the corporations having their registered offices in the Republic of Bulgaria, which are involved in the transformation, are equity corporations, with the exception of the open-end type.(2) Transformation under Paragraph (1) may not be effected where any of the companies involved in the transformation has its registered office outside the European Union or the law of the Member State governing any of the companies involved in the transformation does not admit such transformation.(3) Transformation under Paragraph (1) may not be effected where a transforming corporation, which has its registered office in the Republic of Bulgaria, owns land, and the newly formed or acquiring company has its registered office outside the Republic of Bulgaria. This prohibition shall apply conforming to the conditions ensuing from the accession of the Republic of Bulgaria to the European Union.(4) The rules of this Section shall apply in respect of a corporation involved in the transformation which has its registered office in the Republic of Bulgaria, and where the acquiring or the newly formed corporation has its registered office in the Republic of Bulgaria, the said rules shall furthermore apply regarding the applying for recordation, the recordation and the effect of the recordation. Article 261b shall apply as well.Common Transformation PlanArticle 265e(New, SG No. 104/2007)(1) Before adoption of a resolution on transformation, the acquiring and/or transforming corporations involved therein shall draw up a common transformation plan.(2) The common transformation plan shall be drawn up in writing and shall be signed for the corporations involved in the transformation, which have their registered offices in the Republic of Bulgaria, by the persons representing the corporation.(3) The common transformation plan shall regulate the manner in which the transformation is to be effected. The said plan must include, as a minimum:1. the legal form, the business name and the registered office of each of the transforming corporations, of the acquiring corporation upon merger by acquisition, as well as of the newly formed corporation upon merger by the formation of a new corporation;2. the exchange ratio of the shares or participating interests as determined at a specific date;3. the amount of cash payments, if any have been provided for according to Article 261b (2), as well as the time limit for effecting such payments;4. a description of the participating interests or shares which each partner or shareholder is to acquire in the newly formed or acquiring corporation, including the envisaged increase of capital of the acquiring corporation, if any such increase is required in order to effect the transformation, as well as the conditions regarding the allotment and delivery of shares in the newly formed or in the acquiring corporation;5. the moment from which the participation in the newly formed or acquiring corporation will entitle the holders to share in the profit, as well as any special conditions affecting this entitlement;6. the moment from which any steps of the transforming corporations will be treated for accounting purposes as being performed for the account of the newly formed or acquiring corporation;7. the rights which the newly formed or acquiring corporation confers on shareholders enjoying special rights and on holders of negotiable securities other than shares;8. any special advantage granted to the examiners referred to in Article 265h or to the members of the management and controlling bodies of the corporations involved in the transformation;9. the impact of the transformation on employment;10. the procedure by which arrangements for involvement of factory and office workers in the management of the newly formed or acquiring corporation are determined, if such involvement is possible;11. information on the evaluation of the property passing to the newly formed or acquiring corporation.(4) The following shall constitute an integral part of the common transformation plan:1. the draft of a Memorandum or Articles of Association of the newly formed corporation upon merger by the formation of a new corporation or, respectively, the clauses amending and supplementing the Memorandum or Articles of Association of the acquiring corporation upon merger by acquisition;2. the annual financial statements and the activity report and/or the balance sheet of the transforming corporations and of the acquiring corporation, on the basis of which the transformation plan has been drawn up.Management Body's ReportArticle 265f(New, SG No. 104/2007)The management body of each of the transforming corporations and of the acquiring corporation shall draw up a written report on the transformation. The said report shall explain in detail and shall justify the legal and economic aspects of the common transformation agreement, and particularly concerning the exchange ratio, as well as concerning the implications of the transformation for the position of partners and shareholders, creditors, and factory and office workers.Submission of Plan and Report to Commercial RegisterArticle 265g(New, SG No. 104/2007)(1) The common transformation plan and the report of the management body of each transforming and/or acquiring corporation which has its registered office in the Republic of Bulgaria shall be submitted to the Commercial Register. Publication shall be effected simultaneously on the files of each transforming corporation and/or of the acquiring corporation not less than a month before the date of the General Meeting for adoption of the resolution on transformation.(2) Together with the acts referred to in Paragraph (1), a list containing the business name, the registered office, the address and the register in which each transforming and/or acquiring corporation is recorded shall be published in the Commercial Register. The said list shall furthermore contain an indication, for each of the corporations, regarding the rules applicable to protection of its creditors and minority shareholders, as well as the address at which complete information on those arrangements may be obtained.(3) Within the time limit referred to in Paragraph (1), the report of the management body shall be made available to the factory and office workers' representatives under Article 7a of the Labour Code, and where there are no such representatives, to the factory and office workers themselves. Any opinions received from the factory and office workers' representatives shall be enclosed with the report.Examination of TransformationArticle 265h(New, SG No. 104/2007)(1) The common transformation plan shall be examined by an examiner for each transforming or acquiring corporation which has its registered office in the Republic of Bulgaria, who shall be expressly appointed by the management body of the relevant corporation.(2) At the joint request of all transforming and acquiring corporations, the registrar with the Registry Agency may appoint a single examiner for all transforming and acquiring corporations, including those which have their registered offices in another Member State.(3) Article 262k (3) shall apply to the examiner appointed under Paragraphs (1) and (2).(4) The examiner, appointed under Paragraph (1) and (2) or appointed in accordance with the law of another Member State in which a transforming or an acquiring company has its registered office, shall enjoy the rights under Article 262k (4) and shall incur liability under Article 262l (3).(5) An examination of the transformation shall not be conducted if all partners or shareholders in the transforming corporations and in the acquiring corporation have so agreed in writing.Examiner's ReportArticle 265i(New, SG No. 104/2007)(1) Article 262l (1) and (2) shall apply to the report of the examiner appointed under Article 265h (1) and (2).(2) Where the newly formed corporation upon merger by the formation of a new corporation has its registered office in the Republic of Bulgaria or where the capital of the acquiring corporation, which has its registered office in the Republic of Bulgaria, is increased upon merger by acquisition, the examiner shall furthermore prepare a report regarding the examination of the capital. Article 262t (1) and (2) shall apply, mutatis mutandis.(3) The report of the examiner, as well as the report of the management body, shall be made available at the registered office and at the address of the relevant transforming and/or acquiring corporation which has its registered office in the Republic of Bulgaria not later than one month prior to the date of the General Meeting. On request, a copy of the materials or abstracts thereof shall be made available to each partner or shareholder free of charge.Resolution on TransformationArticle 265j(New, SG No. 104/2007)(1) After familiarizing itself with the reports referred to in Articles 265f and 265I, the General Meeting of each transforming and acquiring corporation separately shall adopt a resolution on transformation, whereby the common transformation plan shall be approved.(2) The resolution on transformation of a transforming or acquiring corporation which has its registered office in the Republic of Bulgaria shall be adopted according to Article 262o (2), (3) and (4).(3) Where a member of a limited liability company or a shareholder in a corporation which has its registered office in the Republic of Bulgaria becomes a general partner in the acquiring or newly formed corporation, Article 262p shall apply as well.Certification of Legal Conformity of TransformationArticle 265k(New, SG No. 104/2007)Where the acquiring or the newly formed company has its registered office in another Member State, the management body of each transforming corporation which has its registered office in the Republic of Bulgaria shall request from the Commercial Register the issuing of a certificate of the legal conformity of the transformation in respect of that company. The resolution on transformation, the expressions of consent under Article 265j (3), the report of the examiner and evidence that the resolution has been adopted in conformity with all requirements of the law, as well as a declaration that the company does not own land according to the prohibition under Article 265d (3), shall be enclosed with the request.Recordation of TransformationArticle 265l(New, SG No. 104/2007)(1) The management body of the newly formed or acquiring corporation which has its registered office in the Republic of Bulgaria shall apply for recordation of the merger by acquisition or merger by the formation of a new corporation in the Commercial Register. The common transformation plan and the resolutions of all corporations involved in the transformation, as well as the certificates referred to in Article 10 of Directive 2005/56/EC of the European Parliament and of the Council on cross-border mergers of limited liability companies, in respect of the transforming companies which have their registered offices in another Member State, shall be enclosed with the application for recordation. Article 263 (2) shall apply, mutatis mutandis.(2) The recordation of a merger by acquisition or a merger by the formation of a new company shall be effected on the file of the acquiring or, respectively, newly formed corporation which has its registered office in the Republic of Bulgaria, as well as on the files of the transforming corporations which have their registered offices in the Republic of Bulgaria, not earlier than fourteen days after the applying if:1. the transforming companies which have their registered offices in other Member States have submitted certificates according to Article 10 of Directive 2005/56/EC;2. the corporations involved in the transformation, which have their registered offices in the Republic of Bulgaria, have complied with the requirements of this Section and with the requirements of the law regarding the adoption of the resolution on transformation;3. the transforming corporation and the acquiring corporation have approved a common transformation plan; and4. the requirements of the Bulgarian law regarding the acquiring or the newly formed corporation have been complied with.(3) Any revisions of the Memorandum or Articles of Association, any alteration of the capital or a change in the persons who manage and represent the acquiring corporation, if any such changes have been made upon the transformation, shall be recorded simultaneously with the merger by acquisition.Expungement of Transforming CorporationsArticle 265m(New, SG No. 104/2007)Where the newly formed or the acquiring company has its registered office in another Member States, the transforming corporations which have their registered offices in the Republic of Bulgaria shall be expunged in the Commercial Register on the basis of a notification from the register of the Member State in which the acquiring or newly formed company is recorded, to the effect that the transformation has been recorded.Effect of TransformationArticle 265n(New, SG No. 104/2007)(1) The transformation referred to in Article 265l shall have effect as from the moment of recordation in the Commercial Register, and the transformation upon which the acquiring or the newly formed company has its registered office in another Member State shall have effect according to the law of that other State.(2) Upon recordation, the newly formed corporation shall be formed and the transforming corporations shall be dissolved, with the rights and obligations of the transforming corporations passing to the acquiring or newly formed corporation. The partners and the shareholders in the transforming corporations shall become partners or shareholders in the acquiring or in the newly formed corporation.(3) Where the property of a transforming corporation which has its registered office in the Republic of Bulgaria includes a right in rem to a corporeal immovable, a movable thing or another right the transactions in which are subject to recordation in a special register, the certificate of recordation in the Commercial Register and, respectively, the notification of recordation under Article 265m from the register of the Member State, shall be submitted for recordation in the relevant register.(4) Any permits, licences or concessions held by the transforming corporation shall pass to the acquiring or newly formed corporation, to the extent that a law or the act of conferment does not provide otherwise.Contest of Transformation and Protection of CreditorsArticle 265o(New, SG No. 104/2007)(1) An action under Article 74 may not be brought against the resolution on transformation of a corporation which has its registered office in the Republic of Bulgaria. Declaration of nullity under Article 263o may not be moved for the corporation newly formed upon merger by the formation of a new corporation which has its registered office in the Republic of Bulgaria.(2) Transformation under this Section may not be declared null. Transformation may be contested by the persons and according to the procedure established by Article 263n, where the requirements of this Section have not been complied with. A non-equivalent exchange ratio shall be no cause for bringing an action.(3) Where the acquiring or newly formed company has its registered office in another Member State, the action shall be brought at the latest until the issuing of a certificate under Article 265k. The bringing of the action shall stay the issuing of a certificate. On the basis of an effective judgment granting the action, issuing of a certificate shall be refused.(4) Where the acquiring or newly formed corporation has its registered office in the Republic of Bulgaria, the action shall be brought at the latest until recordation of the transformation. The bringing of the action shall stay the recordation of the transformation. On the basis of an effective judgment granting the action, recordation of the transformation shall be refused.Special RulesArticle 265p(New, SG No. 104/2007)Where the acquiring corporation is a sole owner of the capital of all transforming corporations, the transformation shall take place on the basis of a decision of the sole owner. Items 2 to 5 of Article 265e (3), Article 265h and Article 265I and sentence two of Article 265n (2) shall not apply.Participation of Factory and Office WorkersArticle 265q(New, SG No. 104/2007)(1) Where one of the transforming corporations, the acquiring or the newly formed corporation has its registered office in the Republic of Bulgaria, Articles 12 to 15, Article 16 (1) and (2), Items 4 and 5 of Article 16 (3) (in such case, the minimum number covered shall be one-third instead of 25 per cent of the total number of factory and office workers), Articles 17, 18, 19, 29 and 30 of the Act on Information and Consultation of Factory and Office Workers in Community-Scale Undertakings, Groups of Undertakings and European Companies shall apply, mutatis mutandis, to the participation of the factory and office workers in the transformation, with the acquiring or newly created corporation under this Section being treated as a European Company.(2) Where the acquiring or newly formed corporation has its registered office in the Republic of Bulgaria, the management bodies of the transforming corporations and of the acquiring corporation may choose, without any prior negotiation, to be directly subject to the standard rules under Articles 16 and 17 of the Act on Information and Consultation of Factory and Office Workers in Community-Scale Undertakings, Groups of Undertakings and European Companies. Where the acquiring or newly formed company has its registered office in another Member State, the said bodies may choose to be directly subject to the standard rules adopted in the legislation of the said Member State in accordance with Council Directive 2001/86/EC supplementing the Statute for a European company with regard to the involvement of employees.(3) Where the acquiring or the newly formed corporation has its registered office in the Republic of Bulgaria and one of the transforming corporations has applied rules for participation of the factory and office workers within the meaning given by Item 20 of 1 of the Supplementary Provisions of the Act on Information and Consultation of Factory and Office Workers in Community-Scale Undertakings, Groups of Undertakings and European Companies, the acquiring or newly formed corporation shall be obligated to ensure the exercise of the rights arising from the said rules. This rule shall furthermore apply upon a subsequent transformation according to the procedure established by this Chapter or by Council Regulation (EC) No 2157/2001 on the Statute for a European Company (SE), but for not more than three years after the date referred to in Article 265n (1).CHAPTER SEVENTEENLIQUIDATIONCommencement of LiquidationArticle 266(1) Liquidation shall be carried out after the dissolution of a company.(2) (New, SG No. 83/1996, amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The term for completion of the liquidation shall be determined by the General Meeting of the limited liability company and the joint-stock company, and for other companies, by unanimous decision of the partners with unlimited liability. Such a term shall also be determined by the registrar of the Recordation Agency, where the latter appoints liquidators. Where necessary, the term determined as above may be extended.(3) (Previous paragraph 2, SG, No. 83/1996; amended SG, No. 84/2000; supplemented SG, No. 66/2005; amended SG, No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The liquidators shall be registered in the commercial register with notarized consents with their specimen signatures.(4) (Renumbered from Paragraph 3, amended, SG No 83/1996; amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The court in the jurisdiction of which the affected company is located may, where important reasons exist, appoint or dismiss liquidators on application by the partners, or, respectively, by the shareholders which own at least one twentieth of the stock.(5) (New, SG No. 83/1996) The remuneration of the liquidators shall be fixed by:1. the General Meeting of the limited liability company or the joint-stock company;2. the partners with unlimited liability in a company, unanimously;3. the court, where the liquidators have been appointed by it.4. (new, SG, No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) the registrar with the Recordation Agency, where the liquidators are appointed by him/her.(6) (New, SG No. 83/1996) The liquidators shall be liable for their activities related to the liquidation in the same way as the managers and the other executive bodies of companies.Notice to CreditorsArticle 267(Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation tobecoming effective, SG No. 80/2006) Upon declaring the dissolution of the company the liquidators must invite its creditors to make their claims. The notice shall be forwarded in writing to known creditors, and shall also be posted in the Commercial Register.Duties of LiquidatorsArticle 268(1) A liquidator shall be obliged to consummate pending transactions, to collect payments due, to convert the company's assets into cash and satisfy its creditors. A liquidator may not enter into new transactions unless so warranted for the purposes of liquidation.(2) A liquidator may, subject to the consent of the partners or, respectively, the shareholders, and the consent of the creditors, transfer to them particular items of the assets under liquidation, provided that this does not prejudice the rights of the remaining partners and creditors.(3) (New, SG No. 61/1993, amended, SG No. 105/2005) The liquidators must inform the National Revenue Agency of the liquidation which has commenced.RepresentationArticle 269(1) The liquidators shall represent the company and shall have the rights and obligations of its executive organ.(2) The liquidators may represent a company only jointly. A single liquidator may accept legal statements addressed to the company.Opening Balance Sheet and ReportArticle 270(1) (Amended, SG No. 105/2006) The liquidators shall draw up a balance sheet as of the moment of dissolution of the company, and explanatory notes thereto. At the end of each year the liquidators shall close accounts and present an annual financial statement and annual activity report to the governing body.(2) The governing body shall resolve on approval of the opening balance sheet, the annual closing of accounts, and on holding the liquidators harmless.Merger of a company in liquidationArticle 270a(New SG No 83/1996, repealed, SG No. 58/2003)Distribution of AssetsArticle 271Upon satisfaction of the creditors, the remaining assets shall be distributed among the partners, or among the shareholders as the case may be.Protection of CreditorsArticle 272(1) (Amended, SG, No. 83/1996; amended and supplemented, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The company's assets shall not be distributed before six months have passed from the date that the notice to the creditors was posted in the commercial Register.(2) Should a creditor duly notified not assert its claim, the sum owed to it shall be deposited in a bank account in its name.(3) Where a liability is disputed, assets shall not be distributed until the creditor concerned has been secured.(4) (New, SG No. 83/1996) The managing body of the company may, upon satisfaction of the creditors, write off any bad amounts receivable of the company. Such decision shall be taken by simple majority.Suspension and Termination of Liquidation Proceedingswith Instituting Bankruptcy ProceedingsArticle 272a(New, SG, No. 84/2000)(1) (Supplemented, SG, No. 38/2006) The liquidation proceedings against a company in liquidation shall be suspended from the date of the ruling on instituting bankruptcy proceedings. The liquidation proceedings shall be terminated on the date of entry into force of the ruling referred to in article 630. With the ruling on instituting bankruptcy proceedings, the court shall declare the debtor-company in bankruptcy according to article 632, paragraph 1.(2) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) In cases as per paragraph (1), the court of jurisdiction over bankruptcy shall be obligated to forward a transcript of the judgment on institution of bankruptcy proceedings for recordation in the Commercial Register.Liquidator's Report and Balance Sheet upon Terminationof the Liquidator's ActivityArticle 272b(New, SG, No. 84/2000)(1) In the cases when bankruptcy proceedings have been instituted for a company in liquidation, the liquidator shall prepare and submit to the court of jurisdiction over the bankruptcy a balance sheet as of the date of the ruling on instituting bankruptcy proceedings and a report on his activity according to article 270 within seven days of the suspension of the liquidation proceedings.(2) The appointed trustee in bankruptcy, the debtor or a creditor may raise objections to the balance sheet and the report within seven days of their submission to the court.(3) Within fourteen days The court shall issue a ruling on the objections, which will be final and not subject to appeal.(4) Should no objection be raised in the period referred to in paragraph 2, the liquidator's report and balance sheet will be considered accepted.(5) While the liquidation proceedings are suspended, the liquidator shall not carry out the actions provided in Chapter Seventeen.Closing of Liquidation ProceedingsArticle 273(1) (Supplemented, SG, No. 84/2000, amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) When all liabilities have been settled and the remaining assets distributed, the liquidator shall apply for deletion of the company from the Commercial Register.(2) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) Should at some later time the need arise for further liquidation proceedings, the court shall, on application by the person concerned, appoint liquidators, either the previous or new ones.Continuation of a Company after DissolutionArticle 274(1) (Supplemented, SG No. 58/2003) When a company is dissolved due to expiration of the specified time period or upon a resolution of the competent company organs, they may decide to continue its activities, unless the distribution of assets has commenced. This provision shall apply also in case of a termination of a limited liability company pursuant to Article 155, item (3), and of a joint-stock company pursuant to Article 252, paragraph (1) subparagraph (6).(2) A resolution pursuant to para 1 shall be passed:1. in case of a joint-stock company, by a majority of at least three quarters of the shares represented;2. in case of another company, unanimously.(3) The liquidators shall file the resolution to continue the company for registration in the Commercial Register.CHAPTER EIGHTEEN(Heading amended, SG No. 104/2007) COMBINATIONSSection IConsortiumDefinitionArticle 275A consortium is a contractual grouping of merchants for carrying out specified activities.Applicable ProvisionsArticle 276The respective rules either for partnerships under civil law or for the company in the form of which a consortium has been organized shall apply to consortia.Section IIHolding CompanyDefinitionArticle 277(1) A holding company shall be a joint-stock company, a partnership limited by shares or a limited liability company the purpose of which is to participate under any form in other companies or in their management, regardless of whether it carries on manufacturing or commercial activities of its own.(2) At least 25 percent of the capital stock of a holding company must be invested directly in subsidiary companies.(3) A subsidiary company is a company in which a holding company owns or controls, directly or indirectly, at least 25 per cent of the stocks or shares and is in a position to appoint, directly or indirectly, a majority of the directors.PurposesArticle 278(1) The purposes for which a holding company is set up may be:1. acquisition, management, valuation and sale of interest in Bulgarian or foreign companies;2. acquisition, management and sale of debentures;3. acquisition, valuation and sale of patents, assigning licences for the use of patents of companies in which the holding company owns an interest;4. financing of companies in which the holding company owns an interest.(2) A holding company may not:1. participate in a partnership which is not a legal person;2. acquire licences which are not intended for use by the companies controlled by it;3. acquire real property which is not required by its needs. The acquisition of stock in real estate companies is permitted.Taxation of Holding ActivitiesArticle 279(Repealed, SG No. 59/1996)Credits Given by Holding CompaniesArticle 280(1) A holding company may extend loans only to companies in which it participates directly or which it controls.(2) The amount of the extended loans may not exceed ten times the capital stock of the holding company.(3) The amount of the deposits of subsidiary companies and enterprises in a holding company may not exceed three times the amount of the capital stock.Section III(New, SG No. 104/2007)European Economic Interest GroupingLegal StatusArticle 280a(New, SG No. 104/2007)(1) A European Economic Interest Grouping, within the meaning given by Council Regulation (EEC) No 2137/85 on the European Economic Interest Grouping (EEIG), hereinafter referred to as "Regulation (EEC) No 2137/85", which has its registered office in the Republic of Bulgaria, shall be a legal person and shall be formed as from the day of its recordation in the Commercial Register. The members in the Republic of Bulgaria of European Economic Interest Groupings, which have a registered office in another State, shall also be recorded in the Commercial Register.(2) Article 70 shall apply, mutatis mutandis, to a European Economic Interest Grouping recorded in the Republic of Bulgaria.(3) The members of the Grouping recorded in the Republic of Bulgaria shall be liable for the obligations of the Grouping according to the rules applicable to a general partnership, unless otherwise provided for in Regulation (EEC) No 2137/85.(4) The registered office of the Grouping may not be transferred to another State where the Grouping owns land in the Republic of Bulgaria. This prohibition shall apply conforming to the conditions ensuing from the accession of the Republic of Bulgaria to the European Union.DissolutionArticle 280b(New, SG No. 104/2007)(1) A European Economic Interest Grouping may be dissolved on the grounds provided for in Article 32 of Regulation (EEC) No 2137/85 by the district court exercising jurisdiction over its registered office. The Grouping may alternatively be dissolved by the court and on an action brought by a public prosecutor, where the said Grouping acts in violation of public order in the Republic of Bulgaria.(2) Bankruptcy proceedings according to Part Four may be instituted in respect of a European Economic Interest Grouping, but Article 610 shall not apply to the members of any such Grouping.(3) Where a member of a Grouping which has its registered office in the Republic of Bulgaria has gone into liquidation or is declared bankrupt, the participation of the said member in the Grouping shall be dissolved by the liquidator or, respectively, by the trustee in bankruptcy.CHAPTER NINETEEN(New, SG No. 104/2007)EUROPEAN COMPANYIncorporationArticle 281(Repealed, SG No. 42/2005, new, SG No. 104/2007) (1) A European Company, within the meaning given by Council Regulation (EC) No 2157/2001 on the Statute for a European company (SE), hereinafter referred to as "Regulation (EC) No 2157/2001", which has its registered office in the Republic of Bulgaria, shall be incorporated through merger by the formation of a new corporation or transformation of a joint-stock company, which has its registered office in the Republic of Bulgaria, into a European Company and shall be recorded in the Commercial Register.(2) The registered office of a European Company referred to in Paragraph (1) shall be the nucleated settlement where the management of the activity thereof is located.(3) A European Company, which has its registered office in another Member State, may not be incorporated through merger by the formation of a new corporation where a transforming corporation, which has its registered office in the Republic of Bulgaria, owns land. A European Company, which has its registered office in the Republic of Bulgaria and which owns land, may not transfer its registered office to another Member State. This prohibition shall apply conforming to the conditions ensuing from the accession of the Republic of Bulgaria to the European Union.Independent ExpertArticle 282(Repealed, SG No. 42/2005, new, SG No. 104/2007) (1) Where one corporation which has its registered office in the Republic of Bulgaria participates in the incorporation of a European Company through merger by the formation of a new corporation, the registrar with the Registry Agency shall appoint an independent expert under Article 22, paragraph 1 and Article 32, paragraph 4 of Regulation (EC) No 2157/2001.(2) Upon transformation of a joint-stock company, which has its registered office in the Republic of Bulgaria, into a European Company or of a European Company, which has its registered office in the Republic of Bulgaria, into a joint-stock company, the registrar with the Registry Agency shall appoint an independent expert under Article 37, paragraph 6 and Article 66, paragraph 5 of Regulation (EC) No 2157/2001.(3) Article 262k (3) shall apply as well in the cases referred to in Paragraphs (1) and (2).DissolutionArticle 283(Repealed, SG No. 19/2003, new, SG No. 104/2007)A European Company shall be dissolved by a judgment of the court exercising jurisdiction over the registered office thereof on a motion by the public prosecutor if the Company no longer complies with the requirements of Article 7 of Regulation (EC) No 2157/2001. The Company shall be dissolved solely if the position is not regularized within a specified period, which the court shall lay down, by a ruling.CHAPTER TWENTYADMINISTRATIVE PENAL PROVISIONSViolations and FinesArticle 284(1) (Amended, SG No. 103/1993, supplemented, SG No. 84/2000, repealed, No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) .(2) (Repealed, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) .(3) (Repealed, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) .(4) (New, SG No. 84/2000; supplemented, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006, supplemented, SG No. 104/2007) A fine of BGN 100 to BGN 500 shall be imposed upon any person who fails to indicate the particulars covered under Article 13 in his business correspondence and Internet site, if available, if he is under an obligation to do so pursuant to this Act. The same sanction shall also be imposed on any person who fails to indicate the particulars covered under Article 25 of Regulation (EEC) No 2137/85.(5) (Renumbered from Paragraph 4, SG No 84/2000) Fines shall be imposed by the district court. The court's resolution may be appealed with a separate appeal.Article 285(1) (New, SG, No. 103/1993) For non-performance of the obligation under Article 7, para 3 a fine or, respectively, a financial sanction, equal to BGN 50 shall be imposed on the merchant.(2) The statements for establishing the violations shall be drawn up by the mayors of communities, and the penal orders shall be issued by the mayors of municipalities or persons designated by them.(3) The establishment of the violations, the issuing, appeal and enforcement of the penal orders shall be done pursuant to the Administrative Violations and Sanctions Act. PART THREECOMMERCIAL TRANSACTIONS(New, SG No. 83/1996)CHAPTER TWENTY-ONEGENERALSection IGeneral ProvisionsDefinition of Commercial TransactionArticle 286(1) A Commercial transaction shall be any transaction concluded by a merchant, related to the occupation exercised by him.(2) Commercial transactions shall also be the transactions under Article 1, para 1, regardless of the capacity of the persons effecting them.(3) In case of doubt it shall be considered that transactions concluded by a merchant are related to his occupation.Applicability of provisions on commercial transactionsArticle 287The provisions on commercial transactions shall apply to both parties if the transaction is considered commercial for one of the parties and this Act does not provided otherwise.SourcesArticle 288The provisions of civil legislation shall apply to matters of commercial transactions not regulated by this Act, and where it is inadequate, the commercial customs shall apply. Where commercial customs vary, the customs of the place of performance shall apply.Abuse of rightArticle 289The exercising of a right arising from a commercial transaction shall be inadmissible if it is exercised with the sole intention of causing injury to the other party.Section IIConclusion of commercial transactionPublic invitationArticle 290(1) Catalogues, price-lists, tariffs and the like, as well as announcements though the mass media or otherwise addressed to an indefinite number of persons, shall be deemed to be an invitation to make an offer in accordance with them.(2) If the offer under para 1 is not accepted without just cause the author of the invitation shall be held liable for the damages incurred by the offerer.Public offerArticle 291An offer for entering into a transaction may also be addressed to an indefinite number of persons, including through the mass media. It should contain both the total quantity offered and the time limit for accepting the offer. In this case the offerer shall be bound until the quantity is exhausted within the specified time limit.Silence equal to acceptanceArticle 292(1) An offer to a merchant with whom the offerer has lasting commercial relations shall be considered accepted if not immediately rejected.(2) In the event of rejection of the offer under para 1, the merchant shall be bound to safeguard whatever has been sent to him at the expense of the offerer, unless he has been secured for the costs or the safeguarding does not cause him unusual inconvenience.FormArticle 293(1) To be valid a commercial transactions shall require a written or other form only in the cases provided for by a law.(2) A statement on execution, performance or termination of a commercial transaction shall be null and void unless made in the form established by a law or by the parties.(3) A party may not refer to nullity should its behaviour imply that it has not contested the validity of the statement.(4) The written form shall be deemed met if the statement has been technically recorded in a way that permits it to be reproduced.(5) In the event of statements made by telefax or telex, the written form shall be deemed met if the books and documents documenting the operation of these apparatuses rule out incorrect reproduction of the statement.(6) Where a specific form has been provided for the conclusion of a commercial transaction, this form shall also be required for any amendments to the transaction.InterestArticle 294(1) Interest shall be due between merchants unless otherwise agreed.(2) Interest on interest shall be due only if so agreed.Permission or approval by a state authorityArticle 295(1) Where the validity of a commercial transaction requires permission or approval by a state authority, the transaction becomes valid when permission is granted.(2) The party who has undertaken to request permission or approval must make immediately the necessary reasonable efforts and bear the costs related with that, and must inform the other party of the result.Confirmation by third partyArticle 296(1) In the event a transaction has been concluded subject to confirmation by a third party, it shall become valid upon confirmation.(2) The party who is responsible for obtaining the confirmation must inform immediately the other party of the result.(3) Where within three months following the conclusion of a transaction the other party has not been informed of the result, it may decline to proceed with the transaction, unless another time period has been agreed upon.Financial duressArticle 297A commercial transaction concluded between merchants may not be voided on grounds of financial duress or due to manifestly unfavourable terms.Commercial transactions under general termsArticle 298(1) A merchant may specify in advance general terms for transactions concluded by him. They shall become binding upon the other party should it:1. declare in writing their acceptance;2. be a merchant and has known or been obliged to know them and has failed to object to them immediately.(2) If a written form has been provided for the validity of a transaction, the general terms established by the merchant shall be binding upon the other party only if submitted to it upon execution of the transaction.(3) In the event of conflict between what was agreed upon by the parties and the general terms, the terms agreed upon shall govern.Determination of provisions by third partiesArticle 299(1) Where the parties have agreed that a third party shall determine particular provisions, such provisions shall become binding upon the parties only if the third party has determined them in accordance with the objective of the contract, the remainder of its contents and commercial custom.(2) Should the third party fail to make the determination or makes it in a manner inconsistent with para 1, either party may petition the court to make the determination.Supplementing of the contract by the courtArticle 300Where the parties agree to supplement the contract upon the occurrence of certain circumstances, and should they fail to reach agreement in the event of such occurrence, either party may petition the court to do so. When rendering its decision the court shall take in consideration the objective of the contract, the remainder of its contents and commercial custom.Actions without authority for representationArticle 301Where a person acts on behalf of a merchant without authority for representation, it shall be deemed that the merchant confirms such actions provided he has not objected immediately after learning of them.Section IIIExecutionDue Care RequirementArticle 302A debtor in a transaction which is commercial with respect to him, shall exercise the care of a good husband.TermArticle 303Where a contract does not specify a term for performance of an obligation, provided the nature of the transaction or the commercial custom do not require otherwise, the performance may be requested and may be made at any time during working hours at the place of performance.Joint and several obligationsArticle 304Persons who undertake a joint obligation upon conclusion of a commercial transaction shall be considered joint and several debtors, unless it follows otherwise from the transaction.Non-cash paymentArticle 305(Amended, SG No. 31/2005) Where payment is effected through debiting and/or crediting bank accounts, any such payment shall be deemed to be perfected at the moment of crediting the obligee's account or by means of payment of the amount of the obligation to the creditor in cash available.Section IVNon-performanceForce majeureArticle 306(1) A debtor in a commercial transaction shall not be liable for failure to perform due to force majeure. Where the debtor was already in default, he may not invoke force majeure.(2) A force majeure shall be an unforeseen or unavoidable event of an extraordinary nature which has occurred after the conclusion of the contract.(3) A debtor who cannot perform due to force majeure shall notify the other party in writing within a reasonable time about the nature of the force majeure, and its potential consequences for the contract. In case of failure to notify, compensation shall be due for the damages resulting from such failure.(4) The performance of obligations and the related counter-obligations shall be suspended for the duration of the force majeure.(5) Should the duration of the force majeure be such that the creditor loses its interest in the performance, he shall be entitled to terminate the contract. The debtor shall also have the same right.Business frustrationArticle 307A court may, upon request by one of the parties, modify or terminate the contract entirely or in part, in the event of the occurrence of such circumstances which the parties could not and were not obliged to foresee, and should the preservation of the contract be contrary to fairness and good faith.Earnest moneyArticle 308(1) Where upon the conclusion of a contract one of the parties has given or promised something in case it backs out, it may renounce the contract if its performance has not commenced. The party which backs out shall be bound to pay earnest money, and if it has given such earnest money upon conclusion of the contract, the party shall forfeit it.(2) When the contract is performed, the earnest money shall be paid back or set off. It shall also be paid back in the event of termination of the contract by mutual agreement.Liquidated damagesArticle 309The liquidated damages due under a commercial transaction concluded between merchants may not be reduced on grounds of excessive amounts.Section VCommercial securityCommercial pledgeArticle 310(1) A contract for commercial pledge which secures rights ensuing from a commercial transaction shall be considered concluded in the event of:1. pledge of movable items and bearer securities - upon their delivery to the creditor or to another person on his account;2. pledge of securities to order - by endorsement for security and delivery to the creditor.(2) Entitled to a pledge by operation of law shall be creditors in the cases provided for in this Act.(3) In the event of transfer of a secured claim the pledge shall be considered transferred upon delivery of the pledged object, unless the transferor has agreed to hold it as another person within the meaning of para 1, Item 1.Satisfaction of the mortgage creditorArticle 311(1) Where the pledge contract has been concluded in writing with a valid date and the parties have agreed that, should the debtor be in delay, the satisfaction from the pledge may be effected without court intervention, the creditor shall be entitled to sell on his own the pledged item or securities, if they have a market or stock exchange price. The creditor shall be bound to immediately notify the pledgor of the sale and to pay him the remainder of the price obtained.(2) Creditors under Article 310, para 2, shall also be entitled to the rights under para 1.Pledge without surrender of possessionArticle 312The pledgor may keep the pledged item in his possession in the cases and in compliance with the procedure specified by a law.Pledge over perishablesArticle 313If the pledged item is perishable, the creditor may sell it, provided the item has a market or commodity exchange price, and deposit the amount with a bank as his security. The creditor must notify the pledgor immediately of the sale.Set-off of yield from pledged itemArticle 314Where the pledged item produces yield, the pledge contract may provide for the right of the creditor to collect such yield on account of the debt.Commercial lienArticle 315(1) A merchant shall be entitled to a lien for his due claim from another merchant, under a transaction concluded between them, on the movables and securities of the debtor received by that merchant in a lawful manner. Such right shall exist as long as the merchant has in his possession the movables and the securities.(2) The lien shall also exist where:1. the ownership of the items has passed to the creditor, but he must transfer it back;2. the ownership of the items has been transferred to a third party with regard to the debtor to the creditor, but he should transfer it back to the debtor.(3) The lien shall also have effect against the third parties to the extent objections the creditor may have against the claim of the debtor for delivery of the item may be raised against them.(4) The lien shall cease to exist if the debtor has ordered otherwise prior to the delivery of the item, or if the creditor has undertaken to act in respect of the item in a specific manner.(5) The lien may also be exercised for sums receivable which have not become due:1. if the debtor has entered bankruptcy proceedings;2. if a compulsory execution undertaken against the debtor has failed.(6) The lien shall be retained, if the debtor has ordered otherwise prior to the delivery of the item or if the creditor has undertaken to act in respect of the item in a specified manner, provided the circumstances under para 5 have come to the knowledge of the creditor after the delivery of the item.Section VITransfer of rightsTransfer of order negotiable instrumentsArticle 316(1) An instruction issued to order and addressed to a merchant for payment of money, delivery of securities or other fungible goods, and which does not set the performance as subject to counter performance, may be transferred by endorsement. This shall also apply to documents for obligations issued to order by a merchant for items as above, if the performance thereof is not conditioned upon counter performance.(2) Transferred by endorsement may also be bills of lading, consignment notes, warehouse warrants, notes for marine loans and transport insurance policies, provided they have been issued to order.Effect of the endorsementArticle 317(1) All rights embodied in the endorsed negotiable instruments are assigned through endorsement.(2) The debtor shall be bound to perform only against presentation of the negotiable instrument, with mark thereon indicating that the obligation for which it has been issued has been paid.(3) The provisions for bills of exchange shall apply mutatis mutandis to the form of the endorsement, the identification of the possessor and the verification of identification, as well as to the obligation of the possessor to deliver the negotiable instrument.CHAPTER TWENTY-TWOCOMMERCIAL SALESection IGeneral ProvisionsDefinitionArticle 318(1) A commercial sale shall be a sale which constitutes a commercial transaction pursuant to the provisions of this Act.(2) A sale the subject of which is an item for personal consumption and where the buyer is a natural person, shall not be a commercial sale.Term for deliveryArticle 319Where no term has been agreed for delivery of the goods, the buyer may demand delivery within a reasonable term.Obligation for notificationArticle 320Where it has been agreed that the goods will be accepted at the warehouse of the seller, the parties shall determine within what time limits and in what manner the seller must notify the buyer that the goods are ready for delivery. Where that has not been determined, the notification shall be at least three days prior to the date of delivery, and should the parties be situated in different localities - at least five days before that date.Documents pertaining to the goodsArticle 321Upon request of the buyer the seller shall be obliged to issue an invoice, and also other documents as agreed between the parties.ServiceArticle 322The seller shall be obliged to provide the necessary service according to the commercial practice, unless otherwise agreed.IndemnityArticle 323Should the sale be avoided and within an appropriate period of time after the avoidance the buyer has purchased replacement goods, or the seller has re-sold the goods, the party seeking compensation may receive the difference between the sale price and the price of the replacement transaction, as well as compensation.Inspection of the goodsArticle 324The buyer shall inspect the goods in the course of time as necessary in view of the circumstances, and where the goods fail to meet the requirements, he shall immediately notify the seller. If the buyer fails to do so, the goods shall be considered approved as complying to the requirements, except for hidden defects.Obligation for keepingArticle 325(1) In the event of refusal to accept goods forwarded from another place, the buyer shall be obliged to keep them with the care of good merchant for the time period usually needed by the buyer to give his instructions. Should the seller be in delay, the buyer may deliver the goods for keeping to a third party, notifying the seller thereof.(2) Should the goods be perishable, or where their keeping is related to considerable costs and inconveniences, the buyer may sell them on account of the seller.(3) Where no instructions have been given pursuant to para 1, the buyer shall be liable only for intentional acts or gross negligence.Determination of priceArticle 326(1) The price shall be determined by the parties upon conclusion of the contract.(2) Where the price has not been determined and there is no agreement as to how to determine it, it shall be considered that the parties have agreed to the price usually paid upon conclusion of sale of the same type of goods under similar circumstances.(3) Where the price is calculated on the basis of weight of the goods, the tare shall be deducted. This rule shall also apply where substances other than the goods are used for the purpose of preservation of goods.Time of paymentArticle 327(1) The buyer shall be obliged to pay the price upon delivery of the goods or of the documents entitling him to receive the goods, unless otherwise agreed.(2) If the seller has undertaken to forward the goods, he shall be entitled to demand that this happens only against payment of the price or presentation of evidence for payment thereof.Delay of receiptArticle 328(1) Where the buyer is in delay of receipt of goods, the seller may:1. deliver the goods for safekeeping;2. sell the goods at market prices or at a public auction, after notification to the buyer thereof, informing him of the time and place of the sale or auction;3. in the case of perishable goods to sell them without prior notice.(2) The delivery for safekeeping and the sales under para 1 shall be on the account and risk of buyer.Section IISpecial rules for some salesTransit saleArticle 329(1) The parties may agree that the seller deliver the goods to a third party indicated by the buyer.(2) The seller shall be obliged to notify the buyer of the forwarding of the goods to the third party, sending him also copies of the documents accompanying the goods.(3) The price may be paid by the third party.Distribution of costs pertaining to delivery of goodsArticle 330(1) Where the goods have to be forwarded to a place other than the place of delivery, the costs pertaining to forwarding and transportation shall be on account of the buyer.(2) It shall be assumed that the seller has undertaken the costs of loading and transportation, if delivery has been agreed franco a specific point other than the point of delivery.(3) The costs pertaining to forwarding and transportation, as well as the distribution of other costs related to the performance of the contract, may be determined by reference to general terms elaborated by international and other institutions.Sale with additional specificationArticle 331The parties may agree on a term during which the buyer shall specify the object of sale. In case of delay of the buyer, the seller may either do so or avoid the contract.Sale with periodic performanceArticle 332In the case of a sale with periodic performance where the parties have agreed that seller may perform in advance, what has been given in excess during the preceding period shall be deducted from what is due.Sale with buy-back clauseArticle 333A sale with a buy-back clause must be in writing and with a fixed term for exercising the right of buy-back. The right of buy-back shall lapse upon expiration of the term.Sale with advance payment of the priceArticle 334The agreement for advance payment of the price must be in writing. If the seller fails to deliver the goods, he shall owe interest from the date of receipt of the price. In such a case the price paid shall be considered earnest money.Instalment saleArticle 335(1) An instalment sale shall be valid if executed in writing.(2) The failure to pay instalments not exceeding one-fifth of the price of the goods, shall not be a reason for cancellation of the contract.(3) If the sale is avoided due to the buyer's failure to perform, the seller may also claim compensation.Sale by assignment of negotiable instrumentsArticle 336In the case of sale of goods by assignment of a negotiable instrument the seller shall be relieved from the obligation to deliver the goods, by assigning the negotiable instrument to the buyer. The buyer shall be bound to pay the price immediately and at the point of delivery of the documents, unless otherwise agreed.Section IIISale at public auction with open biddingPublicityArticle 337The seller shall provide publicity of the auction terms by announcement in at least one daily.Binding force of proposalArticle 338A participant in the auction shall be bound by his proposal in compliance with the terms of the auction.Assignment of the goodsArticle 339The person who conducts the bidding shall assign the goods to the bidder who has offered the highest price. The sale shall be considered concluded by assignment of the goods.PaymentArticle 340The buyer shall be bound to pay the price immediately, unless otherwise provided by the terms of the auction. The seller may cancel the contract if the buyer fails to fulfil this obligation.Nullification of saleArticle 341An auction sale concluded as a result of acts contrary to the law or good morals may de declared null and void upon the request of any interested party, within ten days following the assignment. In the case of an action for payment of the price, the buyer may demand nullification of the sale by means of an objection.CHAPTER TWENTY-THREELEASING CONTRACTDefinitionArticle 342(1) Under a leasing contract the lessor undertakes to provide an item for use against payment.(2) Under a financial leasing contract the lessor undertakes to obtain an item from a third party under terms specified by the lessee, and to provide that item to the lessee for use against payment.(3) The lessee may acquire the item during the term of the contract or after the expiration thereof.RiskArticle 343In the case of a financial lease the risk of accidental destruction or damages to the article shall be on the account of the lessee.Obligations of lessorArticle 344(1) The lessor shall undertake the obligations of lessor pursuant to Article 230 of the Obligations and Contracts Act. (2) The lessor under a financial lease shall be bound to transfer its rights in respect of the third party concurrently with the transfer of title of the item.Obligations of the lesseeArticle 345(1) The lessee shall undertake the obligations of lessee pursuant to Articles 232 and 233, para 2, of the Obligations and Contracts Act , as well as the obligation to return the item upon expiration of the term of the contract.(2) The costs pertaining to maintenance of the item shall be on the account of the lessee.Sub-leasingArticle 346The lessee may give the item to be used by another party with the consent of the lessor.ReferenceArticle 347(1) The rules of this Chapter shall also apply mutatis mutandis to leasing of an enterprise.(2) (Amended, SG No. 92/2007) The rules relevant to lease contracts shall apply mutatis mutandis to leasing contracts with the exception of Article 229, Paragraph 3, Article 231 , paras 1 and 2, Article 233, para 1, Article 235, Article 236, para 1, Articles 237, 238 and 239 of the Obligations and Contracts Act.CHAPTER TWENTY-FOURCOMMISSION MERCHANT CONTRACTDefinitionArticle 348(1) Under a commission merchant contract the commission merchant shall undertake, for a commission, to perform on his own behalf and on the account of the principal one or more transactions.(2) The provisions on the contract of mandate shall apply mutatis mutandis to the relationship between the principal and the commission merchant, unless otherwise provided in this Chapter.EffectArticle 349(1) Under a transaction concluded with a third party for performance of the mandate, rights and obligations shall also arise for the commission merchant in the case where he has informed the third party of the principal's name.(2) The rights acquired by the commission merchant or granted thereto by the principal, shall be deemed, with respect to the commission merchant's creditors, rights of the principal even before their transfer to the principal.(3) The commission merchant shall be bound to meet the obligations and to exercise the rights ensuing from the transaction with the third party.(4) The principal may exercise the rights and may be compelled to meet the obligations towards a third party only after the transfer thereof by the commission merchant.Obligations of the commission merchantArticle 350(1) The commission merchant must perform the mandate with the care of good husband.(2) Where the commission merchant has performed the mandate under conditions more favourable than those set by the principal, the benefit shall belong to the principal.(3) In the case of receipt of goods from another location, the commission merchant must inspect them immediately after receipt, and should he ascertain any defects or losses he must notify forthwith the principal thereof and provide the necessary evidence.(4) Should any changes occur in the goods which would depreciate them, and where there is no sufficient time available to wait for the instructions of the principal or the principal is in delay, the commission merchant may sell the goods at prices lower than the specified by the principal, provided in this way he protects the principal from greater damages.(5) The commission merchant shall be bound to insure the goods received from the principal or from the third party under the executive transaction, provided the principal has given instructions to that effect.Deviation from the mandateArticle 351(1) Should the commission merchant deviate from the mandate, the principal shall not be obliged to recognize the transaction executed on his account, and may claim damages. This rule shall not apply where such deviation has been made in the interest of the principal and the commission merchant was not able to request in advance new instructions, or did not receive a timely response to his inquiry.(2) A commission merchant who sells at a lower price or buys at a higher price than the one set by the principal, must notify the latter immediately thereof. If the principal does not immediately refuse to accept the transaction it shall be deemed that he has approved it.(3) Where the commission merchant states that he shall bear the difference in prices, the principal may not refuse to accept the transaction.(4) The principal may not refuse to accept a transaction, even though the commission merchant has not expressed readiness to bear the difference in prices, provided the commission merchant has ascertained that it was not possible to perform the transaction at the price set by the principal, and that by performing the transaction he has protected the principal from greater damages.Notification to the principalArticle 352(1) Where the third party is in default of its obligations, and also if damages are inflicted by anyone to the property acquired or held by the commission merchant on account of the principal, the commission merchant shall be bound to notify immediately the principal and to provide the necessary evidence.(2) Upon receipt of notification that the third party is in default of its obligations under the executive transaction, the principal shall be entitled to request from the commission merchant to transfer immediately to him the rights in respect of such party.Transaction on creditArticle 353A commission merchant authorized to conclude a transaction on credit shall be liable before the principal for the performance of the obligations by the third party, provided he has been or should have been of knowledge that the third party is unable to pay.Commission contract del credereArticle354Where the commission merchant has guaranteed to the principal for the obligation of the third party, he shall be liable jointly and severally with the third party and shall be entitled to separate compensation.AccountingArticle 355The commission merchant shall be bound to account before the principal and to transfer to him the results of the transaction executed.Obligations of the principalArticle 356(1) The principal shall be obliged to accept from the commission merchant the results of the transaction executed, to inspect the goods acquired for him and to notify immediately the commission merchant of any defects or losses, as well as to undertake the obligations undertaken by the commission merchant towards the third party.(2) The principal shall be bound to pay the commission merchant the expenses made in relation to the execution of the mandate, and the remuneration agreed upon. Where no remuneration has been agreed, the customary sum shall be due.Pledge right of the commission merchantArticle 357The commission merchant shall be entitled to a pledge on the items acquired by him on account of the principal, or which the principal has delivered to him.Entering into executive transactionArticle 358(1) Where subject of the mandate is the purchase or sale of goods or securities which have market or stock exchange prices, the commission merchant may state that he himself sells to the principal or buys from him the goods or securities at such prices. In such case the amount of the remuneration shall be reduced in half.(2) The commission merchant shall be assumed a party to the sale provided he has notified the principal of the carrying out of the mandate without indicating a third party.Refusal by the commission merchantArticle 359(1) Unless otherwise provided in the contract, the commission merchant may not refuse to carry out an undertaken mandate, except in the case of termination of the contract due to default of the principle. The termination shall be effected in writing, whereas the commission contract shall remain in force for two weeks as from the date on which the principal has received notification from the commission merchant of the refusal.(2) If the commission merchant refuses to carry out an undertaken mandate because of a breach of the commission contract by the principal, the commission merchant shall be entitled to a commission and to compensation for any expenses made.(3) A principal who has been notified of the refusal of the commission merchant to carry out an undertaken mandate shall be bound, within one month following the date of notification for refusal, to dispose of his property which is in the possession of the commission merchant.(4) Where the principal fails within the above term to dispose of the property which is in the possession of the commission merchant, the commission merchant shall be entitled to deliver such property for safekeeping on account of the principal or, in order to cover his claims towards the principal, to sell such property at the best prices for the principal.Withdrawal of mandateArticle 360Should the principal withdraw his mandate entirely or in part, before the commission merchant has concluded the respective transactions with third parties, he shall be bound to pay the commission merchant the remuneration and the costs incurred for transactions concluded by him before the withdrawal. In such case the principal shall have the obligation pursuant to Article 359, para 3.CHAPTER TWENTY-FIVEFORWARDING CONTRACTDefinitionArticle 361(1) Under a forwarding contract a forwarding agent shall undertake, for compensation, to conclude a contract for transportation of cargo in his own name and on account of the principal.(2) The provisions for commission merchant contract shall apply mutatis mutandis to all matters not covered by this Chapter.Forwarding agent - carrierArticle 362The forwarding agent may carry out the transportation himself, entirely or partially. In such case he shall have the rights and obligations of a carrier as well.Several forwarding agentsArticle 363The forwarding agent may assign to subsequent forwarding agents the carrying out of the activities under Article 361, even without authorisation therefore from the principal.Obligation for notificationArticle 364(1) The principal shall be bound to notify the forwarding agent about any special characteristics of the cargo.(2) Should the packing of the cargo be inappropriate for transportation, the forwarding agent shall be bound to notify the principal thereof.Compliance with principal's instructionsArticle 365(1) The forwarding agent shall be bound to comply to the instructions of the principal pertaining to the route, direction and manner of transportation, as well as to the selection of carriers and subsequent forwarding agents.(2) Should the forwarding agent deviate from the instructions of the principal, he shall be liable for damages, unless he proves that such could also have occurred even if he had complied to the instructions.Limitation of actionsArticle 366An action for damages under a forwarding contract may be brought within one year.CHAPTER TWENTY-SIXCONTRACT OF CARRIAGEDefinitionArticle 367Under a contract of carriage a carrier shall undertake to carry out for compensation the transportation of a person, luggage or cargo to a certain place.Obligations of the carrierArticle 368(1) A carrier shall be bound to carry out the transportation within the specified term, to keep the cargo as from its acceptance to the delivery, to notify the consignee about the arrival of the cargo and to deliver the cargo at the point of destination.(2) Where no consignment note has been issued, the carrier shall follow the instructions of the consignor about return of the cargo or delivery of the cargo to another person, if he has not delivered the cargo or the bill of lading.Obligations of the carrier for transportation of passengersArticle 369A carrier shall be bound to ensure to passengers appropriate conveniences and safety according to the type of transport vehicle and the distance of transportation.Obligations of the consignorArticle 370(1) A consignor shall be bound to deliver the cargo to the carrier in a state allowing it to undergo transportation, according to its type and special requirements for various types of cargo.(2) The consignor shall deliver to the carrier together with the cargo also the documents needed in order to deliver the cargo to the consignee.(3) Where the packing is obviously inappropriate, the carrier may accept the cargo, provided the consignor declares in writing that any damages that may occur shall be on his own account.Consignment noteArticle 371(1) The consignor may request the carrier to issue him a consignment note for the delivered cargo, which may also be issued to order.(2) Where a consignment note has been issued, the cargo shall be delivered to the bearer of the note who has established himself as such.FreightageArticle 372(1) The consignor shall pay the freightage upon the conclusion of the contract, unless otherwise agreed.(2) Where freightage has not been paid by the consignor, it shall be paid by the consignee upon acceptance of the cargo.Liability for losses and damagesArticle 373(1) The carrier shall be liable for losses, destruction or damages to the cargo, except where the damages are due to force majeure, to the characteristics of the cargo, or to obviously inappropriate packing, if the consignor has declared his consent pursuant to Article 370, para 3.(2) Pursuant to the provisions of para 1 the carrier shall be liable for damages due to delay in performing the transportation.(3) An arrangement to relieve from liability under paras 1 and 2 shall be invalid.(4) If some lost cargo, for which the consignee has been compensated, is later on found, the carrier shall notify thereof the consignee after taking the necessary measures to preserve it. Should the consignee accept the cargo, he shall owe reimbursement of the compensation received. In the case of rejection, the carrier may sell the cargo himself.(5) After delivery of the cargo the carrier shall be liable only if he has been notified about damages not later than one month following the delivery.Liability in the case of subsequent carriersArticle 374(1) Where a carrier performs the transportation entirely or in part with the participation of other carriers, he shall be liable for their actions to the time of delivery of the cargo.(2) Each subsequent carrier shall enter into the contract and must exercise the rights of the preceding carriers, as stipulated in the contract of carriage. All carriers shall be liable jointly and severally.Right to pledgeArticle 375A carrier shall be entitled to a pledge on the cargo for his dues under the contract. This right shall be exercised by the last carrier and shall exist until the rights of all carriers are satisfied.Obligation for keeping the cargoArticle 376Where it is not possible to find the consignee at the address indicated, or if he refuses to accept the cargo, the carrier shall be obliged to keep it or to deliver it for keeping to another party, notifying the consignor thereof in due time. In the case of perishable cargo, the rules for sale of items in the case of delay of a creditor, shall apply.Transportation of luggageArticle 377The respective rules for transportation of cargo shall apply to transportation of luggage.Limitation of actionsArticle 378An action for damages under a contract of carriage may be brought within one year, commencing:1. for cargo - from the date of delivery to the consignee, and where the cargo has not been delivered - from the date on which it should have been delivered;2. for passengers, in the case of death or bodily injury - from the date of occurrence thereof or the date of coming of knowledge thereof, but not later than three years.Special rulesArticle 379The special rules for individual types of transportation shall be governed by separate Acts.CHAPTER TWENTY-SEVENINSURANCE CONTRACT(Repealed, SG No. 103/2005)Section IGeneral ProvisionsDefinitionArticle 380(Repealed, SG No. 103/2005) FormArticle 381(Repealed, SG No. 103/2005) Pre-contract informationArticle 381a(New SG No 96/2002, repealed, SG No. 103/2005) Payment of first premiumArticle 382(Repealed, SG No. 103/2005) Obligation for declarationArticle 383(Repealed, SG No. 103/2005) Intentional incorrect declaration or holding backArticle 384(Repealed, SG No. 103/2005) Unintentional incorrect declarationArticle 385(Repealed, SG No. 103/2005) Declaration of newly occurred circumstancesArticle 386(Repealed, SG No. 103/2005) Insurance premiumArticle 387(Repealed, SG No. 103/2005) Prevention of damagesArticle 388(Repealed, SG No. 103/2005) Obligation for notificationArticle 389(Repealed, SG No. 103/2005) Insurance paymentArticle 390(Repealed, SG No. 103/2005) Insurance interestArticle 391(Repealed, SG No. 103/2005) LimitationArticle 392(Repealed, SG No. 103/2005) Compulsory executionArticle 393(Repealed, SG No. 103/2005) Section IIProperty insuranceSubject of contractArticle 394(Repealed, SG No. 103/2005) Conclusion of contract without authorizationArticle 395(Repealed, SG No. 103/2005) Sum insuredArticle 396(Repealed, SG No. 103/2005) Over insuranceArticle 397(Repealed, SG No. 103/2005) Under insuranceArticle 398(Repealed, SG No. 103/2005) Insurance indemnityArticle 399(Repealed, SG No. 103/2005) Partial destructionArticle 400(Repealed, SG No. 103/2005) Transfer of insured propertyArticle 401(Repealed, SG No. 103/2005) Subrogation into the rights of the assuredArticle 402(Repealed, SG No. 103/2005) Insurance against transportation risksArticle 403(Repealed, SG No. 103/2005) Subscription insuranceArticle 404(Repealed, SG No. 103/2005) Section III"Liability" insuranceDefinitionArticle 405(Repealed, SG No. 103/2005) NotificationArticle 406(Repealed, SG No. 103/2005) Direct claimArticle 407(Repealed, SG No. 103/2005) SettlementArticle 408(Repealed, SG No. 103/2005) Right of the assuredArticle 409(Repealed, SG No. 103/2005) Section IV"Life" and "accident" insurancesSubject of contractArticle 410(Repealed, SG No. 103/2005) Sum insuredArticle 411(Repealed, SG No. 103/2005) Insurance on the life of a third partyArticle 412(Repealed, SG No. 103/2005) Mutual insurancesArticle 413(Repealed, SG No. 103/2005) "Life" and "accident" insurance in favour of a third partyArticle 414(Repealed, SG No. 103/2005) Right of the third party beneficiaryArticle 415(Repealed, SG No. 103/2005) Risks excludedArticle 416(Repealed, SG No. 103/2005) Payment of premiumArticle 417(Repealed, SG No. 103/2005) Right to buy offArticle 418(Repealed, SG No. 103/2005) CHAPTER TWENTY-EIGHTCONTRACT FOR CURRENT ACCOUNTContentsArticle 419(1) Under a contract for current account two persons, where at least one of them is a merchant, may agree the amounts receivable and payable ensuing from their mutual relations to be kept under one account, which shall be periodically settled. The party to the benefit of which a balance exists at the time of settlement, may demand it together with interest from the date of settlement of the account even though interest may have already been included therein.(2) The settlement of the account shall be effected at the end of the calendar year, unless otherwise agreed, and shall be confirmed by the parties in writing. Should a declaration of any of the parties be invalid, the action may be brought within one year thereafter.(3) A contract for current account may be terminated by a one-month advance notice in writing even before settlement of the account, unless otherwise agreed, whereas the party with a balance to his benefit may demand its payment.CHAPTER TWENTY-NINEBANKING TRANSACTIONSSection IContract of bank depositOrdinary depositArticle 420(1) Under a contract of bank deposit a bank shall undertake to keep for consideration the submitted thereto bank notes, securities or other movable items.(2) The depositor may at any time demand the return of a deposited item, even where it has been agreed that the deposit shall continue for a certain period of time. In such a case the depositor shall owe payment only for the duration of time of keeping the article, but he should pay the bank the expenses incurred thereby in view of the agreed duration of the deposit.Monetary depositArticle 421(1) In the case of a monetary deposit the bank shall owe the sum of money to the depositor in the same currency and to the same amount, as well as the agreed interest.(2) In the case of early withdrawal of sums from a time cash deposit, interest shall be due as for demand deposit, unless otherwise agreed.Documents for depositArticle 422(1) In the case of a monetary deposit the bank shall issue to the depositor documents for all contributions to and payments from the deposit.(2) In the case of a difference between the data under the bank batch and the document issued by the bank to the depositor, the data in the issued document shall be assumed to be true, until proven to the contrary.(3) If the deposit document issued is lost, destroyed or stolen, the depositor shall be obliged to notify forthwith the bank in writing. The bank shall not be liable if before the receipt of such notification it has paid in good faith a sum to a person, who appeared authorized to receive such sum on the grounds of indisputable circumstances.AuthorizationArticle 423A proxy may draw sums from a monetary deposit, provided the power of attorney bears a signature certified by the notary public.Management of securitiesArticle 424A bank may undertake to manage deposited securities by exercising the rights thereon, unless otherwise agreed.Conditioned deposit and deposit in favour of a third partyArticle 425In the case of a conditioned deposit or in favour of a third party, if the condition does not occur or the third party dies, the deposited monies, securities or other movable articles shall be returned to the depositor.Section IICurrent account contractDefinition and formArticle 426(1) Under a current account contract a bank shall open an account of a person through which it shall, in return for payment, accept and effect on his instructions payments within the limits of the amounts available.(2) A current account contract shall be concluded in writing.Fees, expenses and interestArticle 427(1) The holder of the account shall owe to the bank a fee and the expenses made pertaining to operations effected.(2) The bank shall owe to the holder the interest agreed.NotificationArticle 428The bank shall notify the holder of an account about operations effected, by a procedure and manner agreed between them, and unless otherwise agreed, monthly in writing. Provided the holder does contest the operation in writing within two weeks following the receipt of the notification, it shall be considered that he has approved it.Application of other provisionsArticle 429The provisions of the contract of mandate shall apply mutatis mutandis to the current account contract unless the circumstances indicate otherwise.Section IIIContract for bank creditDefinition and formArticle 430(1) Under a contract for bank credit a bank shall be obliged to provide to a borrower a sum of money for a certain purpose and under agreed conditions and term, and the borrower undertakes to use the sum as agreed and to return it upon expiration of the term.(2) The borrower shall pay interest on the credit, as agreed with the bank.(3) The contract for bank credit shall be concluded in writing.Necessary informationArticle 431The borrower shall be obliged to provide the bank with the necessary information relevant to the conclusion and performance of the contract.Early claimArticle 432(1) Further to the cases provided for in the contract, the bank may request early return of the sum under the credit, where:1. the credit is not used for the purpose for which it has been received;2. the borrower provides untrue information;3. the security becomes insufficient and is not supplemented within a term set by request therefore;4. the borrower fails to return other loans to the bank due to serious aggravation of his financial status.(2) In the case under para 1, Item 4, the bank shall provide a sufficient time period before exercising its right for early return of the sum.Section IVLetter of credit(Repealed, SG No. 59/2006) DefinitionArticle 433(Repealed, SG No. 59/2006) Rights and obligationsArticle 434(Repealed, SG No. 59/2006) Section VDocumentary letter of creditDefinition and formArticle 435(1) A documentary letter of credit shall be a unilateral declaration in writing by a bank, by which it undertakes to pay to the person indicated in the documentary letter of credit the sum of the documentary letter of credit, provided he submits to the bank within the term specified in the documentary letter of credit the documents listed therein, and fulfils its other conditions. A documentary letter of credit shall come into force after notification of the person.(2) A bank may assign to another bank the receipt of documents, their verification, the compliance with other conditions under the documentary letter of credit and the payment of the amount.(3) The verification of the documents shall be prima facie.(4) Only the conditions specified in the documentary letter of credit shall be of importance for payment of the sum under the documentary letter of credit.(5) The obligations under the documentary letter of credit shall cease upon expiration of the term.Irrevocability of the documentary letter of creditArticle 436Unless anything else ensues from the documentary letter of credit, it shall be considered irrevocable and may be revoked or modified only with the consent of the third party.Revocable documentary letter of creditArticle 437A revocable documentary letter of credit may be revoked unilaterally by the bank, as long as it is not carried out.Divisibility and non-transferability of a documentary letter of creditArticle 438A documentary letter of credit shall be divisible and non-transferable, unless otherwise ensues there from.Confirmed documentary letter of creditArticle 439Where an irrevocable documentary letter of credit is confirmed by another bank, it shall undertake to pay on its own and directly the sum under the letter of credit.Mandate and documentary letter of creditArticle 440The provisions for contract of mandate shall apply to the relations between the principal and the bank which has opened the documentary letter of credit, as well as between the banks under the documentary letter of credit.RemunerationArticle 441The principal shall owe a fee to the bank.Section VIBank guaranteeDefinition and formArticle 442Under a bank guarantee a bank undertakes in writing to pay to the person specified in the guarantee a certain sum of money in compliance with the conditions provided therein.Section VIIBank collection. Bank documentary collectionDefinition of bank collectionArticle 443Under a contract for bank collection a bank undertakes, for a fee, to collect by mandate from the principal his cash receivable or to effect another action for collection.Definition of bank documentary collectionArticle 444Under a contract for bank documentary collection the bank by mandate from the principal undertakes to deliver, in return for remuneration, to another person documents entitling him to dispose with goods, or other documents against payment of an amount which the bank undertakes to collect, or against effect of other actions for collection.Rights and obligationsArticle 445(1) The principal should pay to the bank the agreed expenses.(2) Upon performance of bank collection and of bank documentary collection the bank shall be liable only for incorrect performance of the instructions provided. It shall not be obliged to verify the form and compliance of documents.(3) A bank which uses the services of another bank in view of performing the orders of the principal, shall do so on his account.Subsidiary applicable provisionsArticle 466Unless the circumstances indicate otherwise the provisions for contract of mandate shall apply mutatis mutandis to the bank collection and the bank documentary collection.Special provisionArticle 447Contracts for bank collection and for bank documentary collection shall not be terminated upon the death of the principal.Section VIIIBank transferDefinitionArticle 448Under a contract for bank transfer the principal shall extend to the bank a certain monetary sum with orders to be paid to a person specified thereby.ExecutionArticle 449(1) The principal may cancel or modify an order for transfer prior to its performance.(2) Where prior to the performance of the transfer the bank has notified the payee of the order, it may not be cancelled or modified.Obligation for fees and expensesArticle 450The principal shall owe to the bank fees and the expenses made by the latter related to the transfer.Section IXContract for bank safe deposit box(Repealed, SG No. 59/2006) DefinitionArticle 451(Repealed, SG No. 59/2006) Prohibited itemsArticle 452(Repealed, SG No. 59/2006) Rights of the bank on default of paymentArticle 453(Repealed, SG No. 59/2006) Liability in the case of force majeureArticle 454(Repealed, SG No. 59/2006) For more information visit www.solicitorbulgaria.com id: 292 Thu, 31 Jul 2008 04:34:40 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-commerce-act-part-3 http://web.solicitorbulgaria.com/index.php/bulgarian-commerce-act-part-3 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/COMMERCE_ACT4.jpg EUR http://web.solicitorbulgaria.com/index.php/bulgarian-commerce-act-part-3 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) CHAPTER FORTY-ONECOMPLEMENTING OF BANKRUPTCY ESTATE.SAFEGUARDING MEASURES(Previous Chapter 37, SG No. 83/1996)Section IComplementing of bankruptcy estateCollection of Capital not Paid InArticle 643Shares or contributions not paid in or not deposited by limited liability partners, shall be collected by the trustee in bankruptcy to complement the bankruptcy estate.Termination of ContractArticle 644(1) The trustee in bankruptcy may terminate any contract to which the debtor is a party, provided it has not been performed wholly or in part.(2) The trustee in bankruptcy shall send a 15 days advance notice for termination of contract.(3) Upon request of the other party the trustee in bankruptcy shall respond within 15 days whether he shall keep the contract in effect or terminate it. Should there be no response, the contract shall be considered terminated.(4) Upon termination of contract the other party shall be entitled to compensation for damages incurred.(5) Keeping a contract under which… For more information visit http://www.solicitorbulgaria.com id: 290 CHAPTER FORTY-ONECOMPLEMENTING OF BANKRUPTCY ESTATE.SAFEGUARDING MEASURES(Previous Chapter 37, SG No. 83/1996)Section IComplementing of bankruptcy estateCollection of Capital not Paid InArticle 643Shares or contributions not paid in or not deposited by limited liability partners, shall be collected by the trustee in bankruptcy to complement the bankruptcy estate.Termination of ContractArticle 644(1) The trustee in bankruptcy may terminate any contract to which the debtor is a party, provided it has not been performed wholly or in part.(2) The trustee in bankruptcy shall send a 15 days advance notice for termination of contract.(3) Upon request of the other party the trustee in bankruptcy shall respond within 15 days whether he shall keep the contract in effect or terminate it. Should there be no response, the contract shall be considered terminated.(4) Upon termination of contract the other party shall be entitled to compensation for damages incurred.(5) Keeping a contract under which the debtor is to effect regular payments shall not bind the trustee in bankruptcy to effect payments that have been overdue prior to the date of ruling on institution of bankruptcy proceedings.Set-offArticle 645(1) Creditors may set off their obligations to debtors, provided prior to the date of the ruling on institution of bankruptcy proceedings both obligations existed and were reversibly directed to each other and of the same type and the receivable was due. Where the receivable has become due in the course of bankruptcy proceedings or as result of a ruling to declare bankruptcy, and also where both obligations have become of same type as a result of such ruling, creditors may set off only after the receivable becomes due or the receivables become of the same type.(2) The statement of a set-off shall be sent to the trustee in bankruptcy.(3) (Amended and supplemented, SG No. 70/1998) The set-off may be declared invalid with respect to the bankruptcy creditors, provided the creditor has acquired the receivable and the obligation to the debtor prior to the date of the ruling on institution of bankruptcy proceedings, but he knew as of the time of acquiring the receivable or obligation that insolvency or over-indebtedness, as the case may be, has occurred or that an application to institute bankruptcy proceedings has been filed.(4) (Amended and supplemented, SG No. 70/1998) A set-off effected by the debtor after the initial date of insolvency or over-indebtedness, as the case may be, shall be invalid with respect to the bankruptcy creditors, except for the part that the creditor may have acquired from distribution of assets converted into money, regardless of the time of occurrence of both reversibly directed obligations.Nullity of Actions and TransactionsArticle 646(1) (Amended, SG No. 70/1998) The following shall be considered null and void with respect to the bankruptcy creditors, if effected after the date of the ruling on institution of bankruptcy proceedings and not in compliance with the procedure established thereby:1. performance of an obligation that has occurred prior to the date of the ruling on institution of bankruptcy proceedings;2. pledging or mortgaging rights or chattels included in the bankruptcy estate;3. transactions with rights or chattels included in the bankruptcy estate.(2) (Amended, SG No. 70/1998) Performance of the following actions and transactions made by the debtor after the initial date of insolvency or over-indebtedness, as the case may be, shall be null and void with respect to the bankruptcy creditors:1. performance of a monetary obligation regardless of the manner of performance;2. gratuitous transactions involving a property right from the bankruptcy estate;3. setting up a pledge, mortgage or other surety on a property right from the bankruptcy estate;4. transactions against payment involving a property right from the bankruptcy estate, in which what is given significantly exceeds what is received.(3) (New, SG No. 103/1999) The preceding paragraphs shall not apply in cases of execution, by the debtor, of public collection claims or of private state claims where the foreclosure is enforceable in the procedure applicable to public claims.Actions to RepealArticle 647(Amended, SG No. 70/1998)In addition to the cases provided by law, the following acts and transactions effected by the debtor may be declared invalid with respect to the bankruptcy creditors:1. (amended, SG No. 38/2006) gratuitous transactions, with the exception of an ordinary donation, to the benefit of a party related to the debtor, effected within 3 years prior to the institution of bankruptcy proceedings;2. gratuitous transactions in favour of third parties, effected within 2 years prior to the institution of bankruptcy proceedings;3. (amended, SG No. 84/2000) transactions against payment, where the items given exceed considerably in value the items received, effected within 2 years prior to the institution of bankruptcy proceedings;4. repayment of money obligation by transfer of property, effected within 3 months prior to the initial date of insolvency, where the return of the property could result in increase of the amount to be received by creditors;5. (amended, SG No. 84/2000) mortgaging, pledging or providing another security in favour of a claim not secured till that time, effected within 1 year prior to the institution of bankruptcy proceedings;6. (amended, SG No. 84/2000) mortgaging, pledging or providing another security in favour of a claim of a partner or shareholder not secured till that time, effected within 2 years prior to the institution of bankruptcy proceedings;7. (amended, SG No. 84/2000, No. 38/2006) a transaction effected within two years prior to the institution of bankruptcy proceedings which jeopardized the creditors, with a party related to the debtor being a party thereto;Return of Items Given to Third PartiesArticle 648Where the provisions of Articles 646 or 647 have been applied to transactions, the items given to third parties shall be returned, and where the items given are not found in the bankruptcy estate or moneys are owed, the third party shall become creditor.Bringing Actions to RepealArticle 649(1) Actions pursuant to Article 645, para 3, and Article 647 may be brought by the trustee in bankruptcy, and should he fail to do so - by any bankruptcy creditor within one year following the institution of proceedings.(2) (New, SG No. 70/1998, amended, SG No. 84/2000) In the event of action brought under a claim by the trustee in bankruptcy, no preliminary state fee shall be collected. Should the claim be honoured, the state fee due shall be collected from the sentenced party, and should the claim be rejected, the state fee shall be collected from the bankruptcy estate.(3) (Renumbered from Paragraph 2, SG No. 70/1998) Actions pursuant to Articles 645, 646 and 647 of this Act, as well as actions pursuant to Article 135 of the Obligations and Contracts Act , related to the bankruptcy proceedings, shall be brought before the bankruptcy court.Section IISealingOrder for SealingArticle 650(1) Should there exist danger of dissipation, destruction or concealment of property, the court of jurisdiction over bankruptcy may order the sealing of premises, equipment, transport vehicles, etc., where chattels of the debtor are stored.(2) Inhabitable housing facilities and premises needed to continue the activities of the debtor or to store perishable goods, shall not be sealed.Execution of SealingArticle 651(Amended, SG No. 43/2005) Seals shall be fixed by a bailiff. A protocol of the acts performed shall be forwarded to the court.Section IIIInventory of PropertyRemoval of SealsArticle 652Within 3 days following his entry into office, the trustee in bankruptcy must request removal of seals and preparing of inventory of real properties and chattels, moneys, valuables, securities, contracts, etc., of debtor's claims and chattels in possession of third parties.Preparation of InventoryArticle 653(Amended, SG No. 43/2005) (1) The inventory shall be prepared by the trustee in bankruptcy.(2) The trustee in bankruptcy shall inform the debtor of the acts under para 1.(3) Should other properties be found after preparation of the inventory, supplementary inventory shall be prepared.Liability for Inventory PropertyArticle 654The trustee in bankruptcy shall be liable for the property included in the inventory as from the time of preparation of the inventory, provided it has not been delivered to the debtor or to third parties for safe-keeping.CHAPTER FORTY-TWOAUTHORITIES AND MANAGEMENT OF THE BANKRUPTCY ESTATE(Previous Chapter 38, SG No. 83/1996)Section ITrusteeQualificationsArticle 655(1) (Amended, SG No. 70/1998) Natural persons may become trustees.(2) (Amended, SG No. 70/1998) Trustees shall conform with the following requirements:1. not to have been convicted as a citizen of lawful age for general offence, except for the cases of exoneration;2. not to be spouse of the debtor or creditor and not to be in kinship relations with any of them in direct descent and lateral branch to the sixth degree, and in-law lineage up to the third degree;3. not to be a creditor in the bankruptcy procedure;4. not to be a bankrupt debtor whose rights have not been reinstated;5. not to be in any relations with the debtor or creditor, which may generate substantiated doubts as to his impartiality;6. (new, SG No. 70/1998) have completed his university education in economics or law, and have no less than 3 years experience in the respective profession;7. (new, SG No. 70/1998; amended, SG No. 58/2003) have successfully passed a qualification examination following a procedure established under the regulation referred to in Article 655a, paragraph 1, and be included in the list of persons eligible for the position of trustee in bankruptcy approved by the Minister of Justice and promulgated in the State Gazette.8. (new, SG No. 84/2000; amended SG, No. 38/2006, supplemented, SG No. 59/2006) if the trustee in bankruptcy has not been dismissed as such on grounds as per Art. 657 (2) of this Act or Art. 29 (1) subparagraphs 6 or 7 of the Bank Bankruptcy Act ;9. (new, SG No. 84/2000, amended SG. No. 38/2006, SG No. 59/2006) the measure under Article 65 (2) subparagraph 11 of the Banking Act or under Article 103 (2) subparagraph 14 of the Credit Institutions Act shall not have been applied to him.(3) (Amended, SG No. 70/1998, supplemented, SG No. 84/2000, amended, SG No. 38/2006) The Minister of Justice and Legal European Integration shall exclude from the list under para 2 any persons who have been found in violation with regard to their activities as trustees in bankruptcy, regardless of whether this circumstance is established by the court of jurisdiction over bankruptcy. These changes shall be promulgated in the State Gazette.(4) (Supplemented, SG No. 84/2000) The powers of the trustee in bankruptcy may be exercised by several persons. In such cases, decisions shall be made unanimously and actions shall be undertaken jointly, unless the meeting of creditors or the court in case of a disagreement between the persons exercising the powers of the trustee in bankruptcy decides otherwise.(5) When The powers of the trustee in bankruptcy are exercised by several persons, making decisions unanimously and acting jointly, they shall be liable jointly and severally under Article 663, paras 2 and 3.Contribution for Professional TrainingArticle 655a(New, SG, No. 58/2003)(1) The trustee in bankruptcy shall make an obligatory annual contribution for professional training, in an amount as determined in a regulation concerning the procedure for selection, training and control over trustees in bankruptcy, which shall be issued jointly by the Minister of Justice, the Minister of Economy and the Minister of Finance.(2) Failure to make the contributions referred to in paragraph (1) in a timely manner shall serve as grounds for the exclusion of the person from the list referred to in Article 655, paragraph (2), subparagraph (7).(3) The Minister of Justice, in cooperation with the Minister of Economy, shall be obliged to organize training course for trustees in bankruptcy on an annual basis.Appointment of Trustees in BankruptcyArticle 656(Amended, SG, No. 84/2000)(1) The bankruptcy court shall appoint the trustee in bankruptcy elected by the first meeting of creditors, provided he complies with the requirements under Article 655 and has preliminarily given his consent in writing with a notarized signature. In the same resolution the court of jurisdiction over bankruptcy shall determine the date on which the trustee in bankruptcy shall come into office.(2) At his appointment, the trustee in bankruptcy shall declare in writing and with a notarized signature the existence of prerequisites and the lack of obstacles pursuant to this Act, the participation in companies as a partner, shareholder, the execution of duties as a liquidator, trustee in bankruptcy and other paid functions.(3) Should a change occur in any of the circumstances under paragraph 2, the trustee in bankruptcy shall immediately notify the court of jurisdiction over bankruptcy in writing.(4) The trustee in bankruptcy shall come into office on the date determined by the court. If the trustee in bankruptcy fails to fulfil this obligation, the court of jurisdiction over bankruptcy shall, within 7 days, replace the appointed trustee in bankruptcy with another person among those specified by the first meeting of creditors. If there are no such persons, the trustee in bankruptcy shall be replaced with another person from the respective list and a new meeting of creditors shall be convened.Discharge of Trustees in BankruptcyArticle 657(1) The court shall discharge a trustee in bankruptcy in the following cases:1. his request in writing sent to the court;2. legal disability;3. (new, SG No. 70/1998) if the appointed trustee in bankruptcy no longer meets the requirements under Article 655, para 2;4. (renumbered from Item 3, SG No. 70/1998, amended No. 58/2003) request by the creditors entitled to more than half of the claims;5. (new, SG No. 84/2000) decision of the meeting of creditors;6. (renumbered from Item 4, SG No. 70/1998, renumbered from Item 5, SG No. 84/2000) actual inability to exercise his powers;7. (renumbered from Item 5, SG No 70/1998, renumbered from Item 6, SG No. 84/2000) death.(2) The court may discharge the trustee in bankruptcy at any time, in the course of the fulfilment of its judicial obligations or at the proposal of the debtor, the committee of creditors or a creditor, when such trustee in bankruptcy fails to fulfil his obligations or his actions jeopardise the interests of the creditor or the debtor.(3) (Amended, SG Nos. 70/1998, 80/2000, 58/2003) A trustee in bankruptcy discharged under para 1, Item 1, shall continue to perform his duties until a new trustee in bankruptcy is appointed.(4) (New, SG No. 84/2000) Subject to appeal before the appellate court shall be:1. a resolution of the court of jurisdiction over bankruptcy rejecting a request under paragraph 1, Items 1 - 6 and paragraph 2;2. a resolution of the court of jurisdiction over bankruptcy honouring a request paragraph 2;(5) (New, SG No. 84/2000) The resolution on discharge of the trustee in bankruptcy shall be executed immediately. An appeal submitted against the resolution on the discharge of the trustee in bankruptcy, shall not suspend its execution. The repeal of the resolution on the discharge of the trustee in bankruptcy shall not restore the person as a trustee in bankruptcy in the same bankruptcy proceedings. When a resolution of the court on the discharge of the trustee in bankruptcy is appealed pursuant to paragraph 4, Item 2, the appeal may be made only by the trustee in bankruptcy.(6) (New, SG No. 84/2000; supplemented , SG No. 58/2003) In the cases under paragraph 1, Items 1, 2, 3, 5, 6, 7, and paragraph 2 the court shall convene a meeting of creditors for the election of a new trustee in bankruptcy.(7) (New, SG No. 84/2000) In the cases under paragraph 1, Items 2, 3, 5 and 6 and under paragraph 2, the court shall appoint ex officio a trustee in bankruptcy to fulfil the trustee in bankruptcy functions until the election of a new trustee in bankruptcy.(8) (New, SG No. 58/2003) In the cases referred to in paragraph 1, subparagraph 4, creditors shall be obliged to indicate a trustee in bankruptcy in their request.Powers of Trustees in BankruptcyArticle 658(1) The trustee in bankruptcy shall:1. represent the enterprise;2. manage its current affairs;3. (new, SG No. 84/2000) supervise the debtor's activity in the cases under article 635, paragraph 1;4. (renumbered from Item 3, SG No. 84/2000) receive the inventory, keep and maintain the books and business correspondence of the enterprise;5. (renumbered from Item 4, SG No. 84/2000) identify and establish the debtor's property;6. (renumbered from Item 5, SG No 84/2000) file requests for terminating or avoiding agreements to which the debtor is a party under the terms and conditions set forth by law;7. (renumbered from Item 6, SG No. 84/2000) participate in the court proceedings of the debtor's enterprise and bring lawsuits on his behalf;8. (renumbered from Item 7, SG No. 84/2000) collect the cash receivables of the debtor and deposit them in a special bank account;9. (renumbered from Item 8, SG No. 84/2000) dispose of the funds in the debtor's bank accounts with the permission of the court when this becomes necessary in connection with the management of the property and its preservation;10. (renumbered from Item 9, SG No. 84/2000) identify and establish the debtor's creditors;11. (renumbered from Item 10, SG No. 84/2000) convene and organise the meetings of creditors in conformity with a court ruling;12. (renumbered from Item 11, SG No. 84/2000) offer a plan under Article 696;13. (renumbered from Item 12, SG No. 84/2000) undertake actions to terminate the debtor's participation in companies;14. (renumbered from Item 13, SG No. 84/2000) cash in the property from the bankruptcy estate;15. (renumbered from Item 14, SG No 84/2000) undertake other actions prescribed by law or assigned by court.(2) The trustee in bankruptcy shall exercise his powers in conformity with the development of the insolvency proceedings and the court rulings.(3) (New, SG No. 38/2006) Any and all government bodies and organizations shall be obligated to provide assistance to the trustee in the discharge of his/her duties.AccountabilityArticle 659(1) (Amended, SG No. 84/2000) The trustee in bankruptcy shall enter each action on his part relative to the management of and the disposal with objects and rights of the debtor's property or the bankruptcy estate in a specially bound by him journal with numbered pages and certified by the court.(2) (Supplemented, SG No. 58/2003) The trustee in bankruptcy shall submit performance reports to the court and the committee of creditors on a monthly basis or immediately, at request.(3) (New, SG No. 84/2000) At the request of a creditor, the trustee in bankruptcy shall present the journal referred to in paragraph 1, the report referred to in paragraph 2, as well as a report on the specifically raised issues if they are not dealt with in the report under paragraph 2 for the respective period.Due Care RequirementArticle 660(1) (Amended, SG No. 70/1998) The trustee in bankruptcy shall exercise his powers with due care.(2) Trustees in bankruptcy may not delegate their powers to other persons, except in case of an explicit permission by court.RemunerationArticle 661(Amended, SG No. 84/2000)(1) Trustees in bankruptcy shall get a remuneration for their work - current and final, in an amount determined by the meeting of creditors. The way of determining the final remuneration of the trustee in bankruptcy may be taken prior to the conclusion of the work of the trustee in bankruptcy.(2) The court shall determine a current remuneration for the temporary trustee in bankruptcy, as well as for the trustee in bankruptcy in the cases under article 657, paragraph 6, at his appointment.(3) The current remuneration shall be paid on a monthly basis.(4) (Amended, SG No. 58/2003) The final remuneration of the trustee in bankruptcy may be determined also during the adoption of a reorganisation plan, or when an out-of-court settlement is achieved between the debtor and its creditors, as the case may be, and it shall depend on the following circumstances:1. compliance with the proceedings terms;2. whether the list of the claims allowed by the trustee in bankruptcy is approved by the court without making changes to it;3. the actions taken and the honoured claims for replenishing the bankruptcy estate;4. termination of the bankruptcy proceedings due to approval of a reorganisation plan;5. the conversion of assets into cash upon declaration of bankruptcy;6. other circumstances relevant to the term of the proceedings and the bankruptcy estate.(5) The final remuneration may be determined as a percentage of the property with which the bankruptcy estate has been replenished, an/or as percentage of the value of the assets converted into cash.(6) Where the meeting of creditors has not been able to decide on the election of a trustee in bankruptcy or on determining the remuneration of the trustee in bankruptcy, it shall be determined by the court.RestrictionsArticle 662(1) (Amended, SG No. 84/2000) The trustee in bankruptcy may not negotiate on behalf of the debtor either with himself or with a person related to him.(2) Trustees in bankruptcy may not acquire in any way, directly or through another person, any chattel or right from the bankruptcy estate. This restriction applies also to the their spouses, relatives in direct descent and lateral branch to the sixth degree and in-law lineage up to the third degree.(3) Trustees in bankruptcy shall not disclose any information, data or facts which have become known to them in the course of exercising of their powers.(4) (Repealed, SG No. 70/1998).LiabilityArticle 663(1) Where the trustee in bankruptcy fails to perform his duties or performs them poorly, the court may impose a fine which, for each individual case, may not exceed the amount of his monthly remuneration.(2) The trustee in bankruptcy is liable to pay a compensation equal to the interest determined by operation of law for any delay on his part to deposit the funds received in the bank.(3) The trustee in bankruptcy is liable to compensate the debtor and creditors for the damage inflicted by him to them in the course of the exercising of his powers.InsuranceArticle 663a(New, SG, No. 58/2003)(1) The trustee in bankruptcy shall obtain insurance for the time for which he is appointed to serve as trustee in bankruptcy in those particular proceedings, for damages that might occur as a result of guilty non-performance of his duties. The minimum amount of the insurance amount shall be determined in the regulation referred to in Article 655a, paragraph (1).(2) The obligation referred to in paragraph (1) shall be fulfilled within three days of the election and prior to assuming the office.Final Report of the Trustee in BankruptcyArticle 664(1) Trustees in bankruptcy shall submit a report in writing upon the termination of their work within a term prescribed by the court.(2) The newly appointed trustee in bankruptcy, the debtor, the creditors' committee or a creditor may raise objections to the report within seven days after its submission.(3) (Supplemented, SG No. 84/2000) Within fourteen days of receiving the objections, the court shall issue a ruling on the objections, which will be final and not subject to appeal.(4) Should no objection be raised within seven days, the report will be considered accepted.Submission of Books and PropertyArticle 665(Amended, SG No. 84/2000)Upon termination of his activities, the trustee in bankruptcy shall immediately submit with an inventory the books, the journal and the reports under Article 659, as well as the property at his disposal to the newly appointed trustee in bankruptcy or a person designated by the court or to the debtor in the cases set forth in Article 707, para 1.Section IITemporary Trustee in BankruptcyAppointment of Temporary Trustee in BankruptcyArticle 666(Supplemented, SG No. 84/2000)The court shall appoint the temporary trustee in bankruptcy with the ruling to start bankruptcy proceedings or in the cases under article 657, provided he meets the requirements under Article 655 and has given his consent.Discharge of Temporary Trustee in BankruptcyArticle 667(Amended, SG No. 84/2000)The temporary trustee in bankruptcy shall be discharged under the terms and conditions set forth in Article 657 and upon the appointment of the trustee in bankruptcy elected by the meeting of creditors.Powers of the Temporary Trustee in BankruptcyArticle 668Temporary trustee in bankruptcy shall enjoy the powers under Article 658. In addition, within 14 days after the date of the ruling on bankruptcy proceedings, the temporary trustee in bankruptcy shall prepare:1. (supplemented, SG No. 84/2000) a list of creditors on the basis of the debtor's books, indicating also the amounts of their claims;2. (new, SG No. 84/2000) an excerpt of the books, certified by him;3. (renumbered from Item 2, SG No 84/2000) a report in writing on the reasons for the insolvency, the condition of the property and the measures taken to protect it as well as the possibilities for reorganisation of the enterprise.Section IIIFirst Meeting of CreditorsHolding the First Meeting of CreditorsArticle 669(1) (Supplemented, SG No. 70/1998, previous Article 669, amended, SG No. 84/2000) The first meeting of creditors shall be convened on the date scheduled by the court with the ruling to institute bankruptcy proceedings, and shall be chaired by the judge considering the petition for instituting bankruptcy proceedings.(2) (New, SG No. 84/2000) In the first meeting of creditors shall take part the creditors included in the list referred to in article 668, Item 1 and in the excerpts of the debtor's books, which the temporary trustee in bankruptcy shall submit to the first meeting.Decision-Making at the First Meeting of CreditorsArticle 670(Amended, SG No. 84/2000, No. 38/2006) (1) A creditor shall be allowed to participate in the first general meeting either in person or by proxy, subject to an explicit authorization in writing. Where the creditor is a natural person, such authorization shall bear the creditor's notarised signature.(2) Decisions of shall be adopted by a simple majority vote in terms of the amounts of the claims listed as per Article 668, Item 1.(3) The decisions of the first meeting of creditors can be annulled in accordance with the procedure as per Art. 679.Participation of the Temporary Trustee in Bankruptcy and the DebtorArticle 671The participation of the temporary trustee in bankruptcy at the first meeting of creditors is mandatory, whereas the debtor may attend it if he deems it necessary.Powers of the First Meeting of CreditorsArticle 672(1) (Previous Article 672, SG No. 84/2000) The first meeting of creditors shall:1. listen to the report of the temporary trustee in bankruptcy under Article 668, Item 2;2. (amended, SG No. 84/2000) nominate a permanent trustee in bankruptcy and submit the nomination to the court for approval;3. elect a creditors' committee.(2) (New, SG No. 84/2000) At the meeting the creditors may nominate and rank according to their preference several persons for trustees in bankruptcy, of which the court shall appoint a trustee in bankruptcy should the approved trustee in bankruptcy does not come into office within the specified term, in case of discharging him until the meeting referred to in article 673 is held, or when he does not meet any of the requirements under article 655, paragraph 2.Section IVMeeting of CreditorsHolding the Meeting of Creditors and Voting RightsArticle 673(1) The meeting of creditors shall be convened after the approval of the list under Article 692 by the court.(2) After claims are allowed, voting rights at the meeting of creditors shall be granted only to creditors holding claims allowed.(3) (Amended and supplemented, SG No. 70/1998, amended, SG No. 58/2003) The court may grant voting rights also to a creditor under Article 637, para 3, provided his claim is supported by the presentation of convincing evidence in writing, and to a creditor with an unacknowledged claim which has filed a claim as stipulated in Article 694, and to creditor whose claim has been acknowledged against whom a claim under Article 694 has been filed requesting the establishment of the non-existence of such creditor's claim.(4) No voting rights under para 3 shall be granted to a creditor under Article 616, para 2.Convening of the Meeting of CreditorsArticle 674(Amended, SG, No. 84/2000)(1) The court shall convene the meeting of creditors at the request of the debtor, trustee in bankruptcy, creditors' committee or creditors holding one-fifth of the amount of claims allowed within maximum 7 days after the submission of the request.(2) (Amended, SG, No. 38/2006) The meeting of creditors shall be convened immediately after approval by the court of the list of claims allowed pursuant to article 692, paragraph 4, or when no objections have been made - pursuant to article 692, paragraph 2, with an agenda pursuant to article 677, Item 8.Invitation for the Meeting of CreditorsArticle 675(1) (Supplemented, SG No. 84/2000, No. 38/2006) The invitation for the meeting of creditors shall contain the debtor's trade name, standard identification code and seat, the agenda, date, hour and venue of the meeting.(2) (Amended, SG, No. 38/2006) The invitation shall be posted in the Commercial Register, such posting being considered due notification of all creditors.Decision-MakingArticle 676(1) (Amended, SG No. 84/2000) The meeting of creditors shall be held, regardless of the number of persons present and its chairman shall be the judge hearing the case.(2) During the decision-making process, each creditor shall be entitled to a number of votes representing the proportional share of his claim in the total amount of claims allowed and the claims with voting rights under Article 673, para 3.(3) Decisions shall be made by simple majority vote, unless the law prescribes otherwise.(4) (New, SG No. 84/2000) The participation of the creditors in the meeting of creditors shall be in accordance with the procedure of article 670, paragraph 1.Powers of the Meeting of CreditorsArticle 677(1) The meeting of creditors shall:1. listen to the report of the trustee in bankruptcy on his activities;2. hear the report of the creditors' committee;3. (amended, SG No. 84/2000) nominate a trustee in bankruptcy, if none has been nominated; in this case article 672, paragraph 2 shall be applied;4. (amended, SG No. 84/2000) decides on the discharge of the trustee in bankruptcy and his replacement;5. (amended, SG No. 58/2003) determine the amount of the current-basis remuneration of the trustee in bankruptcy, any alteration thereof, and the amount of the final remuneration;6. appoint the creditors' committee, if none has been appointed, or change its membership;7. propose to the court the amount of the subsistence for the debtor and his family.8. (new, SG No. 84/2000; amended, SG No. 58/2003) determine the procedure and the method of cashing the debtor's property, the method and terms and conditions for property evaluation, the choice of evaluators and the determination of their remuneration.(2) If the meeting of creditors fails to make a decision under para 1, Item 3, the trustee in bankruptcy shall be appointed by the court. The court ruling shall not be subject to appeal.(3) Minutes shall be taken at the meeting of creditors and signed by the chairing person and the secretary of the meeting.(4) (New, SG No. 84/2000) If the meeting of creditors fails to make a decision under paragraph 1, Item 8, the decision shall be made by the trustee in bankruptcy.Effect of the Decisions Made by the Meeting of CreditorsArticle 678The decisions made by the meeting of creditors shall be binding on all creditors, including those absent.Repeal of a Decision of the Meeting of Creditors by the CourtArticle 679(1) The bankruptcy court may repeal a decision of the meeting of creditors, at the request of the debtor or a creditor, where such decision is unlawful or causes substantial damage to a part of the creditors.(2) (Amended, SG No. 84/2000; supplemented, SG, No. 38/2006) The request shall be filed within seven days after the meeting is held and it shall be examined by an alternative panel of judges of the court of jurisdiction over bankruptcy with the debtor and creditors being summoned to the court session. The court session on considering the request shall be held not later than 14 days after its submission.(3) Creditors under para 2 shall be summoned through advertisement in the State Gazette.(4) (Amended, SG No. 84/2000) The court shall issue a resolution.Section VCreditors' CommitteeOptionsArticle 680(1) The meeting of creditors may appoint a creditors' committee consisting of not less than three and not more than nine members.(2) The creditors' committee shall include persons representing both secured and unsecured creditors, except for those under Article 616, para 2.PowersArticle 681(1) (Amended and supplemented, SG No. 84/2000) The creditors' committee shall assist and check the activities of the trustee in bankruptcy with respect to the property management, inspect the books and cash availabilities, and notify the court in the cases under article 657.(2) Cash availabilities shall be inspected at least once a month and the findings shall be communicated to the court of jurisdiction over bankruptcy.(3) (New, SG No. 58/2003) The committee of creditors may, at its own initiative or at the request of the court, provide an opinion concerning the extension of the operation of the debtor's enterprise, the remuneration of the temporary and ex officio trustee in bankruptcy, actions related to cashing, the responsibility of the trustee in bankruptcy under Article 663, paragraph (1), and on other matters.RemunerationArticle 682(1) The members of the creditors' committee shall be entitled to remuneration which is determined at the time of their appointment at the expense of creditors.(2) The unpaid remuneration shall be deducted, at the request of the creditors' committee, when the property converted into cash is distributed according to the size of receivables on a pro rata basis.Property Acquisition BanArticle 683Members of the creditors' committee shall not acquire in any way either directly or through another person chattels or rights from the Bankruptcy Estate. This restriction applies also to the their spouses, relatives of direct lineage, relatives of collateral lineage up to six times removed and in-laws up to three times removed.Subsidiary Application of the Obligations and Contracts Act Article 684As far as the relations between the creditors' committee and creditors are not settled with the provisions of this Part or with an agreement, the provisions of Arts. 280-292 of the Obligations and Contracts Act shall apply. CHAPTER FORTY-THREECLAIMING RECEIVABLES(Previous Chapter thirty nine, SG No. 83/1996)Deadline for ClaimsArticle 685(1) (Amended, SG No. 84/2000, No. 38/2006) Creditors shall claim their receivables in writing before the bankruptcy court within one month following the posting in the commercial Register of the announcement on the start of bankruptcy proceedings.(2) (Amended, SG No. 84/2000) Each creditor shall indicate the grounds and amount of the receivables, privileges and security, the legal address and submit evidence in writing.Statute of Limitation on Claims in Bankruptcy ProceedingsArticle 685a(New, SG, No. 38/2006)(1) The act of making a claim in bankruptcy proceedings shall be deemed to constitute an interruption of the statute of limitation. The statute of limitation shall be suspended for the duration of the bankruptcy proceedings.(2) Where a presented claim is not accepted into the bankruptcy proceedings and a supporting claim to establish the facts is required by the court in support thereof, the statute of limitation shall be interrupted. If the claim is overruled, the statute of limitation shall not be deemed to have been interrupted.(3) Where a presented claim is not accepted, and the creditor has failed to present a supporting claim to establish the facts within the time limit as per Art. 694, the statute of limitation shall not be deemed to have been interrupted.(4) With the termination of bankruptcy proceedings in accordance with Art. 632 par. (5), the statute of limitation as per Art. 110 of the Obligations and Contracts Act shall be resumed, whereas in cases as per Art. 740 par. (2) the provisions as per 707b shall apply. In case where a resumption of bankruptcy proceedings is requested, the statute of limitation shall be suspended for the accepted claims for the duration of the resumed proceedings.List of Presented ClaimsArticle 686(Amended, SG, No. 84/2000, No. 58/2003)(1) Within 7 days after the expiration of the term under Article 685, para 1, the trustee in bankruptcy shall compile:1. a list of the acknowledged claims that have been presented, by order of their presentation, indicating the creditor, the amount and the grounds of the claim, the privileges and security, the date of presenting the claim;2. a list of the claims pursuant to article 687;3. (amended, SG, No. 38/2006) a list of claims presented but not acknowledged; annual financial statements for the preceding calendar year and for the last month before the date of the institution of bankruptcy proceedings.(2) The documents under paragraph 1 shall be made available to the creditors and the debtor at the court chancery.Proprio Motu EntryArticle 687(1) (Previous Article 687, SG No. 84/2000, amended SG No. 38/2006) The claims of a worker or employee arising from a labour relationship with the debtor shall be entered proprio motu by the trustee in bankruptcy in the list of accepted claims.(2) (New, SG No. 84/2000) The trustee in bankruptcy shall enter proprio motu in the list of presented claims any government claim established by an act which has come into effect.Additional ClaimsArticle 688(1) (Supplemented, SG No. 84/2000, amended, No. 58/2003, No. 38/2006) Any claim made after the expiration of the term under Article 685, para 1, but not later than two months there from, shall be entered on the list of presented claims and acknowledged in accordance with the terms and procedures set forth by law. After the expiration of this period, no claims which have occurred prior to the date of institution of bankruptcy proceedings may be presented.(2) A creditor with claims under para 1 may not challenge claims already acknowledged or a distribution which has been made and he shall be satisfied with the balance if the property cashed in has been distributed. The additional expenses for the acceptance of his claim shall be borne by him.(3) (New, SG No. 84/2000; amended, SG, No. 38/2006) Claims not paid on the maturity date and occurred after the date of the institution of bankruptcy proceedings and until the approval of a reorganisation plan, respectively the date of declaring the debtor in bankruptcy, shall be presented according to the procedure of this Chapter. The trustee in bankruptcy shall make a separate list of such claims.(4) (New, SG No. 84/2000, repealed, SG No. 38/2006) .List of the Claims Acknowledged by the Trustee in BankruptcyArticle 689(Amended, SG Nos. 84/2000, 58/2003, No. 38/2006) The trustee in bankruptcy shall submit for posting in the Commercial Register the lists and financial statements immediately after they have been compiled, and shall make them available for creditors and the debtor at the court chancery.Challenge of the ListArticle 690(Amended and supplemented, SG, No. 84/2000;amended, SG No. 58/2003)(1) (Amended, SG, No. 38/2006) The debtor or any creditor may challenge a claim, whether allowed or not by the trustee in bankruptcy, by filing an objection in writing within 7 days from the posting as per Art. 689.(2) The trustee in bankruptcy shall be obliged to present to the court an opinion on each objection within three days of its receipt but not later than the date of holding the court hearing of objections.Unchallengeable ClaimArticle 691Claims which have been established by a court ruling which has entered into force and was issued after the date of the decision to start bankruptcy proceedings, where the trustee in bankruptcy was a party, cannot be challenged.Approval by the Trustee in Bankruptcy of the Listof the Claims AllowedArticle 692(Supplemented, SG, No. 70/1998; amended, SG No. 84/2000)(1) (Amended, SG No. 58/2003, No. 38/2006) Where no objections have been filed in respect of the lists as per Art. 686 par (1), the court shall approve in a closed session the list of allowed claims that have been entered proprio motu immediately after expiry of the term as per Art. 690 par. (1). The court shall rule in a determination.(2) (New, SG No. 38/2006) In case of objections filed against the lists as per Art. 686 par. (1) in accordance with Art. 690 par. (1), the court shall rule on such lists after the objections have been heard.(3) (Amended, SG No. 58/2003; renumbered from par. 2, SG No. 38/2006) The court shall examine any objections made in a public session summoning the trustee in bankruptcy, the debtor, the creditor the inclusion or non-inclusion of whose claim in the list is being challenged, and the creditor which has challenged it. Where possible, all objections shall be considered in one court session.(4) (Renumbered from par. 3, SG No. 38/2006) Upon finding the objections reasonable, the court shall approve the list with the due amendment made. Otherwise, the court shall reject the objections. The court shall make a determination within 14 days of the session referred to in paragraph 2.(5) (Renumbered from par. 4; amended, SG No. 38/2006) The court ruling on approval of the list shall be posted in the Commercial Register.(6) (New, SG No. 58/2003; renumbered from par. 5, amended, SG No. 38/2006) The determinations as per pars. 1 ?Claim AllowedArticle 693(Amended, SG, No. 70/1998, No. 84/2000)An allowed claim in the bankruptcy proceedings shall be a receivable included in the list of allowed claims approved by the court under Article 692 except for claims under article 694, paragraph 1.Submission of a claim to establish a right(Title new, SG No. 38/2006)Article 694(Repealed, SG, No. 70/1998; new, SG, No. 84/2000; amended,SG, No. 58/2003)(1) (Amended and supplemented, SG, No. 38/2006) A creditor or the debtor who has made an objection under article 690, paragraph 1, may submit a claim for establishing the existence of a claim allowed or the non-existence of an allowed claim within 7 days of the date of posting in the Commercial Register of the court determination concerning the approval of the list under article 692, paragraph 4. The claim shall be submitted to the court of jurisdiction over bankruptcy and shall be hear by other court members.(2) Upon submission of a claim to establish a right, no state fee shall be charged in advance. If the claim is rejected, the costs shall be at the expense of the claimant.(3) (New, SG, No. 38/2006) The rights as per pars. (1) ?(4) (New, SG No. 38/2006) The effective court decision under par. (1) shall be legally binding in establishing the relations among the debtor, the trustee in bankruptcy and all creditors in the bankruptcy proceedings.(5) (New, SG No. 38/2006) In the rehabilitation plan, resp. in the distribution of cashed property, provisions shall mandatorily be made for disallowed claims that are subject to a claim for establishing rights as per par. (1).Expansion of the ListArticle 695The list approved by the court shall be expanded with claims presented and approved subsequently under terms and procedures set forth by law.CHAPTER FORTY-FOURREORGANISATION OF THE ENTERPRISE(Previous Chapter 40, SG No. 83/1996)Reorganisation PlanArticle 696(Amended, SG No. 84/2000)A reorganisation plan may provide for a deferment or rescheduling of payments, a remission of the debts in full or in part, a reorganisation of the enterprise, or undertaking other acts or making other transactions.Proposal of a PlanArticle 697(1) The right to propose a plan shall belong to:1. The debtor;2. The trustee in bankruptcy;3. The creditors holding at least one-third of the secured claims;4. The creditors holding at least one-third of the unsecured claims;5. The partners, the shareholders respectively, who hold at least one-third of the capital of the debtor company;6 An unlimited liability partner;7. Twenty per cent of the total number of the debtor's employees.(2) The creditors with the claims specified under Article 616, para 2, are not entitled to propose a plan.(3) (New, SG No. 84/2000) A reorganisation plan may not be proposed in the cases under article 630, paragraph 2.Deadline for Proposing a PlanArticle 698(1) (Amended, SG No. 70/1998, No. 84/2000, No. 38/2006) A plan may be proposed not later than one month following the date of the announcement in the Commercial Register of the court ruling on approval of the list of claims allowed under Article 692.(2) More than one plan may be proposed in the bankruptcy proceedings.Costs on the Preparation of the PlanArticle 699The costs on the preparation of a plan proposed by the debtor or by the trustee in bankruptcy shall be at the expense of the bankruptcy estate, and in the rest of the cases they shall be at the expense of the proposer.Content of the PlanArticle 700(1) The plan shall contain:1. (amended, SG No. 84/2000) The extent of satisfying the claims, the manner and periods for paying the creditors within each class, as well as guarantees for executing challenged not allowed claims which are subject to pending legal actions as of the date of proposing the plan;2. The terms and conditions under which the partners in a general or limited partnership are relieved from their commitments in full or in part;3. The extent of satisfaction received by each class of creditors as compared with what it would have received in the event of distributing the assets under the terms and procedures provided by law;4. The guarantees provided to each class of creditors in relation to the implementation of the plan;5. The managerial, organisational, legal, financial, technical, and other actions for the implementation of the plan;6. The influence of the plan on the employment of the debtor's employees.(2) (Amended, SG No. 84/2000) The plan may envisage the sale of the entire enterprise or an autonomous part of it, the manner and the terms of the sale, the buyer, a debt equity swap, novation, or taking other actions or making other transactions.(3) (New, SG No. 84/2000; amended, SG No. 38/2006) In the cases as per par. (2), enclosed with the rehabilitation plan shall be a market evaluation of the property subject to the transaction.(4) (New, SG No. 84/2000) If the reorganisation plan envisages the sale of the entire enterprise or a separate part of it, a draft agreement signed by the buyer shall be attached to the plan.(5) (New, SG No. 58/2003) The reorganization plan may envisage the appointment of a supervisory body to exercise control over the debtor's activity for the period when the reorganization plan is in effect, or for a shorter time period.(6) (New, SG No. 58/2003) Where the reorganization plan envisages the conversion of claims into equity, the plan shall enclose a list of names of creditors which have stated their agreement to subscribe interest stakes or shares of the equity, as the case may be, a full description of in-kind contributions - claims, their cash evaluation under Article 72 paragraph 2, the grounds of the proposor's rights and the number, type and nominal value of stakes or shares, as the case may be, which are being acquired. In these cases, Article 72 paragraph 2 shall not apply. Where the company's property is not sufficient to cover its money obligations, the conversion of the claim into equity shall be made at the nominal value of stakes or shares, as the case may be. Where the company's property is sufficient to cover its money obligations, the conversion of the claim into equity shall be made at the balance sheet value of stakes or shares, as the case may be. Where the reorganization plan envisages the conversion of a claim into equity, the decision to endorse the reorganization plan shall have the force of a decision of the general meeting of shareholders, or partners, as the case may be, to increase capital by in-kind contributions.Supervisory BodyArticle 700a(New, SG No. 58/2003)(1) The supervisory body referred to in Article 700, paragraph (5) may be a single member or a collegiate one.(2) A collegiate supervisory body shall consist of 3 to 7 people, including a chairman and a deputy chairman.(3) The chairman shall convene meetings of the supervisory body at his initiative as well as at the request of the members of the supervisory body or at the debtor's request.(4) The convocation procedure for the collegiate supervisory body, its quorum and method of decision-making shall be regulated in the reorganization plan.(5) The debtor shall present a report on its activity and on measures undertaken to implement the reorganization plan at least once every three months to the supervisory body.(6) The debtor shall notify the supervisory body immediately of the occurrence of any circumstances which are of material significance for the implementation of the reorganization plan.(7) The supervisory body is entitled at any time to require that the debtor present a summary information statement or a report on any matter concerning the activity of the debtor and the implementation of the reorganization plan.(8) The bodies of the debtor may make decisions only upon the agreement of the supervisory body on the following:1. transformation of the debtor;2. winding down or transfer of enterprises or of considerable parts thereof;3. property transactions beyond the customary actions or transactions related to the normal business operations of the debtor;4. any material change in the business activity of the debtor;5. any material organizational change;6. long-term cooperation of material significance for the implementation of the reorganization plan or the termination of such a cooperation;7. setting up or closing down a branch.(9) The circumstances referred to in paragraph (8) shall be recorded in the commercial register.(10) Any objections that such actions have been performed in violation of paragraph (9) shall not be opposable to third parties.Admittance of the PlanArticle 701(1) (Amended, SG No. 84/2000) By a ruling, given in camera within 7 days after expiration of the period under article 698, the court shall admit the plan to be considered by the creditors' meeting, provided the plan meets the requirements under Article 700, para 1. The court shall specify the date of holding the meeting, not later than 45 days after the date of the ruling.(2) (Supplemented, SG No. 84/2000) In the event that the plan proposed does not meet the requirements under Article 700, para 1, the court shall send a notice to the proposer to remove the instances of non-compliance within 7 days. This provision shall not apply if the ruling of the court of jurisdiction over bankruptcy on approval of the reorganisation plan is repealed and the case is returned by the court of second instance for continuation of the proceedings.(3) The ruling on non-admittance of the plan is subject to appeal within 7 days.Announcement of the Plan and Convention of the Creditors' MeetingArticle 702(1) (Amended, SG No. 84/2000, No. 38/2006) The court shall submit for entry in the Commercial Register an announcement of the date of holding the creditors' meeting for adoption of the plan admitted for consideration.(2) (Amended and supplemented, SG No. 38/2006) The debtor and the trustee in bankruptcy shall be summoned to the meeting, and the creditors shall be deemed to be summoned by the posting of the announcement in the Commercial Register.Adoption of the PlanArticle 703(1) The right to vote on the plan shall belong only to a creditor whose claim has been allowed or whose right to vote under Article 673, para 1 has been recognised.(2) The creditors shall vote separately in the following classes:1. Creditors with secured claims and creditors with a foreclosure right;2. Creditors under Article 722, para 1, Item 4;3. (amended, SG No. 70/1998) Creditors under Article 722, para 1, Item 6;4. Creditors with unsecured claims;5. Creditors under Article 616, para 2,(3) A creditor may also vote in absentia, by a letter with a signature authenticated by the notary public.(4) (Amended, SG No. 84/2000) The plan shall be accepted by each class by a simple majority of the size of the claims of such class.(5) (Supplemented, SG No. 38/2006) An objection to the approved plan may be filed with the bankruptcy court within 7 days after the date of the voting. An objection can also be filed by a creditor with a disallowed claim in respect of which said creditor has filed a claim under Art. 694.(6) (New, SG No. 84/2000) A plan voted against by creditors with more than half of the claims allowed regardless of the classes in which they are distributed, shall not be considered adopted.(7) (New, SG No. 58/2003) The meeting of creditors may take a decision to appoint a supervisory body under Article 700a also in cases where this is not envisaged in the reorganization plan for the enterprise.(8) (New, SG No. 38/2006) An announcement of the acceptance of the plan shall be posted in the Commercial Register.Approval of the Plan by the CourtArticle 704(1) The bankruptcy court shall approve the approved plan if the requirements of the law have been observed.(2) (Amended, SG No. 84/2000) In the event that several plans have been accepted, the plan for which creditors holding more than half of the total size of the allowed claims voted shall be approved. If this plan can not be approved, approved shall be that plan which has been accepted by the creditor classes whose interests have been most injured.(3) (Supplemented, SG No. 84/2000) The plan is approved in camera. In case objections have been entered to the plan accepted by the creditors' meeting, the court shall consider the objections in camera, summoning the debtor, the trustee in bankruptcy and the party which has entered the objection. All objections shall be considered in one session, if possible, and shall make a ruling on the objections within a period 14 days after the session.Terms and Conditions for the Approval of the PlanArticle 705(1) (Previous Article 705, SG No. 70/1998) The court approves the plan, provided:1. The requirements of the law for the acceptance of the plan by the different creditor classes have been observed;2. (amended, SG No. 84/2000, No. 38/2006) The plan has been approved by a majority of creditors holding more than half of the claims allowed included in the lists under article 692, paragraph 1 and article 692, paragraph 4, approved by the court; in the event that the plan envisages partial payment, at least one of the creditor classes which have approved it, shall receive partial payment;3. All creditors of the class are put on an equal footing, unless the injured creditors give their consent in writing;4. The plan ensures that a dissenting creditor and a dissenting debtor receive the same payment which they would have received if the assets were allocated under the terms and procedures provided by law;5. No creditor receives more than is due under this creditor's allowed claim;6. No income is envisaged to be received by a partner or shareholder until the final payment of the obligations to the class of creditors whose interests are affected by the plan;7. No support of a sole proprietor, unlimited liability partner or their families, greater than the support ruled by the court is envisaged up to the final fulfilment of the obligations to the class of creditors whose interests are affected by the plan.(2) (New, SG No. 70/1998) The court shall rule a decision on endorsing the plan for reorganising the enterprise or on rejecting it.Effect of the Plan ApprovedArticle 706(1) The plan approved by the court is mandatory for the debtor and the creditors whose claims have occurred before the date of the ruling to institute bankruptcy proceedings.(2) (New, SG No. 70/1998) Guarantors and persons who have established a pledge or a mortgage to secure an obligation of the debtor, and any persons liable jointly and severally with the debtor except for persons under Article 610 may not avail of any privileges envisaged in the plan.(3) (Renumbered from Paragraph 2, SG No. 70/1998) The claims of the creditors under para 1 shall be transformed in accordance with what is envisaged in the plan.(4) (Renumbered from Paragraph 3, SG No. 70/1998) The debtor is obliged immediately to carry out the structural changes envisaged by the plan.(5) (New, SG No. 70/1998) In the event of a sale of the whole enterprise or a part thereof, any disposal actions performed by the buyer prior to the final payment of the price shall be null and void with respect to creditors in bankruptcy.Term for Concluding an AgreementArticle 706a(New, SG No. 84/2000)(1) The agreement for sale of the whole enterprise or an autonomous part of it, according to the approved reorganisation plan, shall be concluded within one month of the entry into force of the decision on approving the plan.(2) If no agreement for sale is concluded within the term referred to in paragraph 1 in accordance with the draft attached to the approved reorganisation plan, each of the parties, within one month after the expiration of the term referred to in paragraph 1, may request the court of jurisdiction over bankruptcy to declare the agreement concluded according to the draft under article 700, paragraph 4, adopted at the meeting of creditors.(3) If, within the period under paragraph 2, none of the parties requests the agreement to be declared concluded, and if there is a request submitted by a creditor, the court of jurisdiction over bankruptcy shall resume the proceedings and shall declare the debtor bankrupt.Termination of Bankruptcy ProceedingsArticle 707(1) (Supplemented, SG No. 58/2003) By the ruling to approve the plan, the court terminates the bankruptcy proceedings and appoints the supervisory body under Article 700a, in cases where this is not envisaged in the reorganization plan for the enterprise.(2) (Repealed, SG No. 84/2000).(3) (New, SG No. 58/2003) At the request of a creditor, the supervisory body or the debtor, or at a later stage for the purposes of retaining the property and to ensure the implementation of the plan, the court may:1. define the property with which the debtor may dispose only upon the permission of the supervisory body, and if the latter does not exist, with that of the court;2. replace one or more members of the supervisory body by other persons.AppealArticle 707a(1) (New, SG No. 70/1998, previous Article 707a, amended, SG No. 84/2000, No. 38/2006) The decision under Article 707 and the decision rejecting the endorsement of a reorganisation plan for the enterprise which has been approved by the creditors' meeting may be appealed within 7 days following its entry in the Commercial Register.(2) (New, SG No. 84/2000) After repeal of the court decision, no reorganisation proceedings shall be performed.Statute of limitation in conditions of an approved reorganization planArticle 707b(New, SG No. 38/2006)(1) For claims as per Article 706, par. (1), a new statute of limitation in accordance with Art. 110 of the Obligations and Contracts Act shall commence from the date of entry into force of the decision on the approval of the reorganization plan, where such claims are subject to immediate satisfaction, and in cases where the plan provides for deferment or rescheduling of satisfaction of such claims, from the date when such claims will become due.(2) In case where a resumption of bankruptcy proceedings is requested, the statue of limitations shall not apply to allowed claims for the duration of the resumed proceedings.Collection of Transformed ClaimArticle 708(Amended, SG No. 59/2007) On the basis of the plan as endorsed by the court, the creditor shall have the option to move for the issuance of an order under Article 410 (1) of the Code of Civil Procedure for enforcement of the transformed claim regardless of the amount of the said claim.Resumption of the Bankruptcy ProceedingsArticle 709(1) (Supplemented, SG No. 70/1998, amended, SG Nos. 84/2000, 58/2003) In the event that the debtor does not fulfil his obligations under the plan or under Article 700a, paragraphs (5), (6), (7) and (8), the creditors whose claims have been transformed under the plan and account for at least 15 per cent of the total size of the claims, or the supervisory body under the terms and conditions of Article 700a, may request a resumption of the bankruptcy proceedings, without new insolvency or over-indebtedness, as the case may be, having to be proved.(2) In the cases under para 1, the transforming effect of the plan with regard to the creditors' rights and the security remains.(3) (New, SG No. 70/1998) In the renewed bankruptcy proceedings, no reorganisation proceedings shall be performed.(4) (New, SG No. 84/2000; supplemented, SG No. 38/2006) The request under paragraph 1 shall be considered by the bankruptcy court within 14 days of its submission, in an open session to which the creditor who has submitted the request and the debtor have been summoned.CHAPTER FORTY-FIVEDECLARATION OF BANKRUPTCY(Previous Chapter 40, SG No. 83/1996)Ruling on Declaration of BankruptcyArticle 710The court declares the debtor to be bankrupt, in the event that a plan under Article 696 has not been proposed within the period provided by law or the plan proposed has not been accepted and approved, as well as in the cases under Article 630, para 2, Article 632, para 1, and Article 709, para 1.Contents of the Ruling on Declaration of BankruptcyArticle 711(1) By the ruling on declaration of bankruptcy, the court:1. (supplemented, SG No. 70/1998) Declares the debtor to be bankrupt and rules termination of the activity of the enterprise;2. Decrees a general attachment on the debtor's assets;3. Terminates the powers of the debtor's organs when he is a legal person;4. Deprives the debtor of the right to manage and dispose of the assets, the bankruptcy estate included;5. Institutes the start of the conversion of the bankruptcy estate assets into cash, and of the distribution of the cash.(2) (Repealed, SG No. 70/1998).Effect of the ruling(Title amended, SG 38/2006) Article 712(1) The ruling on declaration of bankruptcy shall be effective towards all persons.(2) (Amended, SG No. 38/2006) The decision to declare bankruptcy shall be entered in the Commercial Register.Appeal against the Ruling on Declaration of BankruptcyArticle 713(1) (Previous Article 713, SG No. 70/1998; amended, SG No. 38/2006) The ruling on declaration of bankruptcy is subject to an appeal within 7 days from the date of entry into the Commercial Register.(2) (New, SG No. 70/1998; amended, SG No. 38/2006) The decision repealing, partially or in full, or overruling the decision ruled by the district court for declaring bankruptcy shall be entered into the Commercial Register.Immediate ExecutionArticle 714The ruling on declaration of bankruptcy is subject to immediate execution.Decreeing a general Attachment and Entering ItArticle 715(1) (Amended, SG, No. 38/2006) As from the day of entry into the Commercial Register of the ruling on declaration of bankruptcy, the real estate, the chattels and the debtor's claims from third bona fide persons shall be deemed attached.(2) (Amended, SG No. 38/2006) The attachment on the debtor's real estate and ships shall be entered in the notary public's registers, in the ships' registers respectively, on the basis of the announcement of the debtor's being declared insolvent as posted in the Commercial Register.CHAPTER FORTY-SIXCONVERTING THE ASSETS INTO CASH(Previous Chapter 42, SG No. 83/1996)ScopeArticle 716(1) (Previous Article 716, SG No. 58/2003) The real estate and the chattels as a whole or parts of them, the chattel and the other property rights within the bankruptcy estate shall be converted into money, insofar as it is required for the payment of the debtor's obligations.(2) (New, SG No. 58/2003) The sale of property rights from the bankruptcy estate shall be done by the trustee in bankruptcy following the court's permission.Sale of Chattels and Property RightsArticle 717(1) (Supplemented, SG No. 70/1998, amended and supplemented, No. 84/2000, amended No. 58/2003) The chattels and property rights out of the bankruptcy estate shall be sold by the trustee in bankruptcy under the terms and procedures set out in this Chapter and according to the decision of the meeting of creditors under Article 667, paragraph (1), subparagraph (8), except for cases referred to in Article 677, paragraph (4).(2) (New, SG No. 70/1998, Supplemented, SG No. 84/2000) Upon a proposal by the trustee in bankruptcy, and according to the decision of the meeting of creditors, the bankruptcy court shall allow the sale of chattels and property as a whole, of autonomous parts thereof, or of individual property rights. The court must rule on the proposal of the trustee in bankruptcy on the date of its receipt by the court, or on the following business day at the latest.Announcement of SaleArticle 717a(New, SG No. 58/2003)(1) (Amended, SG No. 38/2006) The trustee in bankruptcy shall prepare an announcement for the sale, indicating the debtor's identifying data, a description of the property, the procedure and method of sale, the place and the day on which the sale shall take place, the deadline for accepting proposals within that day, and the evaluation of the property which is to be sold.(2) (Amended, SG, No. 38/2006) The trustee in bankruptcy shall post the announcement referred to in paragraph 1 in a visible place in the building of the municipality in which the seat of the debtor is located and in the building in which the debtor's management address is, no less than 14 days prior to the day specified in the announcement, and shall draw up a memorandum certifying this fact. The trustee in bankruptcy shall submit the announcement for the sale for publication in a specialized bulletin issued by the Ministry of Economy 14 days prior to the day for the sale as specified in the announcement.Place of Holding the SaleArticle 717b(New, SG, No. 58/2003)The sale shall take place at the office of the trustee in bankruptcy or at the debtor's management address on the day specified in the announcement.Procedure for Holding the SaleArticle 717c(New, SG, No. 58/2003)(1) The papers for the sale shall be kept at the office of the trustee in bankruptcy or at the debtor's management address and shall be available to any interested party.(2) To participate in the bidding, a payment of earnest money in the amount of 10 per cent of the evaluation amount shall be deposited.(3) Each bidder shall indicate the price proposed by him in figures and in words and shall submit his bid together with the receipt for the earnest money deposit in a sealed envelop. Bids shall be submitted on the day of the sale before the end of the time period referred to in Article 717а, paragraph 1 to the trustee in bankruptcy, who shall record them in the order of their submission in a register of incoming documents.(4) Immediately after the expiry of the time period under paragraph 3, the trustee in bankruptcy shall announce the proposed bids that have been submitted, in the presence of the bidders who have chosen to attend, and a memorandum shall be drawn up to that effect. The memorandum shall indicate the bidders and the proposed bids in the order of opening the envelops. The bidder which has proposed the highest price shall be considered to be the buyer of the property right. If the highest price has been proposed by more than one bidder, the buyer shall be determined by the trustee in bankruptcy through an immediate auction by open bidding in the presence of bidders who have chosen to attend. The announcement of the buyer shall be done by the trustee in bankruptcy in the memorandum, which shall be signed by him and by the bidders who have chosen to attend.(5) (Amended, SG, No. 38/2006) Proposed bids of persons which do not have the right to bid, and bids, if any, proposing a price less than the evaluation shall be invalid.Limitation on Participation in the SaleArticle 717d(New, SG No. 58/2003)(1) The debtor, his representative, the trustee in bankruptcy, and the persons indicated in Article 185 of the Obligations and Contracts Act shall not have the right to participate in the bidding.(2) Where the property right has been bought by a person, which did not have the right to bid, the sale shall be invalid.(3) In the case under paragraph 2, money deposited by the buyer shall be seized for the purpose of satisfying creditor claims.Payment of the PriceArticle 717e(New, SG, No. 58/2003)The buyer must, within 5 days following the completion of the sale, pay in the price proposed by him, deducting the earnest money deposit.Subsequent BuyersArticle 717f(New, SG, No. 58/2003)If, within the time period specified in Article 717e, the price has not been paid in:1. the earnest money deposited by the bidder shall serve to satisfy the creditors;2. (amended, SG, No. 38/2006) the trustee in bankruptcy shall invite the bidder which has offered the next highest price, if he has not withdrawn the earnest money deposit; if that bidder agrees, he shall be announced to be the buyer; if he does not agree or if he should fail to pay in the price within 5 days of having been announced as the buyer, the earnest money deposited by him shall be seized to satisfy the creditors, and the trustee in bankruptcy shall offer the property to the next bidder in the order of prices proposed and shall proceed in this manner, if need be, until there are no more bidders left which have proposed a price not lower than the evaluation; a bidder which has agreed to buy the property and fails to make due payment of the proposed price shall be held liable according to subparagraph 1.Holding a New AuctionArticle 717g(New, SG No. 58/2003, amended, SG No. 38/2006) (1) If no bidders have appeared or no valid bids have been proposed, or if the buyer has not paid in the price, a new sale by open bidding shall be held with a starting price of 80 per cent of the evaluation, after a new announcement is made following the procedure set out in Article 717а, paragraph 2.(2) The bidding for the sale as per par. (1) shall be carried out by entry into a bidding sheet. The bidding increment shall be determined by the trustee in bankruptcy and shall be stated in the announcement as per Art. 717a.Making the AwardArticle 717h(New, SG, No. 58/2003)(1) (Amended SG, No. 38/2006) The court shall award the item or the right to the entity declared as the buyer, provided that said entity has paid in full the amount due, on the day following the date of payment thereof.(2) As from the date of issue of the ruling on the award, the buyer shall acquire all rights which the debtor has had on the property right. Any rights which third parties may have acquired on the property right cannot be opposed to the buyer, provided these rights cannot be opposed to the debtor.(3) (Amended, SG, No. 38/2006) The ruling on the award issued by the court can be challenged before the appellate court by participants in the tender and by the debtor.(4) If the award is not challenged the validity of the sale may be attacked through the claims procedure only in case of a violation of Article 717d and in case of non-payment of the price. In the latter case, the buyer may decline to honour the claim, provided that he pays the amount due together with any interest accrued from the day he was announced as the buyer.Cancellation of the AwardArticle 717i(New, SG. No. 58/2003)If the ruling on the award should be rescinded or if the sale should be proclaimed invalid according to Article 717d, the new sale shall be made after a new announcement.Acquisition and Challenging of OwnershipArticle 717k(New, SG, No. 58/2003)(1) The buyer of chattels shall become their owner, regardless of whether those have belonged to the debtor.(2) The previous owner has the right to receive the price, if it has not been paid, and if it has been paid, he has the right to claim from the creditors and from the debtor what they have received according to the distribution.Entry into Possession and Transfer of RiskArticle 717l(New, SG, No. 58/2003)(1) The buyer shall be introduced into possession of the property right by the trustee in bankruptcy based on the award ruling that has come into force and on the basis of a document certifying that payment has been made of fees for the transfer of the property and that the said ruling has been registered.(2) The risk of perishing of the property right shall be for the account of the buyer, and any costs associated with its protection until the entry into possession of the buyer shall be for the account of the bankruptcy estate.(3) Entry into possession shall be performed against any person which is in possession of the property right. Such a person may seek remedy only by means of a claim of ownership.(4) (New - SG No. 38/2006) A sale effected in accordance with the procedure as per this Chapter shall have the consequences of a sale in enforcement action, under the Code of Civil Procedure. Sale in the Case of Co-ownershipArticle 717m(New, SG No. 58/2003)(1) When the execution is aimed at a property right which is co-owned, for a debt of any of the co-owners, the property right shall be inventories in its entirety but only the indivisible interest of the debtor shall be put on sale.(2) The property may also be sold as a whole if the remaining co-owners should agree to this in writing.Sale of a Mortgaged PropertyArticle 717n(New, SG No. 58/2003)In case of a sale of a mortgaged property which is being performed not in response to the claim of the mortgage creditor, the trustee in bankruptcy shall send the latter a notice of the scheduled sale.Sale in Special CasesArticle 718(1) (Supplemented, SG No. 70/1998; amended, SG No. 38/2006) Upon the proposal of the trustee in bankruptcy, the bankruptcy court may permit the sale to be made through direct negotiations or through an intermediary, in case the chattels and the property rights as a whole, the autonomous part, or an individual piece of chattel or the property right were offered under the terms and procedures of Article 717 and foll., but the sale was not realised because the buyer did not appeared or desisted. In such cases the sale price can be lower than the initial price as per Art. 717g and shall be determined in accordance with the Code of Civil Procedure. The court must rule on the proposal of the trustee in bankruptcy on the date of its receipt by the court, or on the following business day at the latest.(2) Interests in other companies owned by the debtor shall be sold after being offered to be purchased by the remaining partners and the offer is not accepted within one month.(3) (New, SG No. 70/1998) In the case of a sale under para 1 of the chattels and property rights as a whole, or of an autonomous part thereof, creditors cannot be put in a less favourable position than in the case of a sale of individual chattels and property rights.(4) (Renumbered from Paragraph 3, amended SG No. 70/1998)In the case of a sale under para 1 of the chattels and property rights as a whole, or of an autonomous part thereof, any disposal actions performed by the buyer prior to the final payment of the price shall be null and void with respect to creditors in bankruptcy.(5) (New, SG No. 84/2000) The trustee in bankruptcy shall appear as the seller in an agreement pursuant to paragraph 1.Sale by the trustee in bankruptcy of housing units rented byworkers and employeesArticle 718a(New, SG No. 38/2006)(1) In case where, towards the date of the decision of the creditors' meeting as per Art. 677 par. (1), item 8, housing units owned by the debtor had been rented out to persons who, towards said date, were in the debtor's employment, or to persons with claims under Art. 687, par. 1, the trustee in bankruptcy shall be obligated to offer said housing units to its tenants for sale. In such cases, the provisions of Art. 33 of the Ownership Act shall apply.(2) The trustee in bankruptcy shall address an invitation in writing to each of the parties as per par. (1), stating the specific housing unit, its evaluation as given by an appraiser selected by the creditors' meeting or appointed in accordance with Art. 677 par. (4); the time limit for payment, which cannot be shorter than 30 or longer than 60 days; and the bank account to which payment shall be remitted.(3) The persons as per par. (1) shall have the right, within 14 days from receipt of the invitation, to state in writing to the trustee in bankruptcy their willingness to purchase the housing unit at a price corresponding to the evaluation, within the time limit set by the trustee in bankruptcy. In paying the said price, the workers and employees shall have the right to deduct from it any debts of the debtor arising from unpaid employment compensations.(4) The sale agreement shall be executed in notarised form, with the trustee in bankruptcy signing as the seller. Any legal expenses pertinent to the transaction shall be covered by the seller.(5) The provisions of pars. (1) through (4) shall not apply in case of a legal dispute involving the housing unit subject to the lease agreement.Sale of a Pledged ChattelArticle 719(Supplemented SG No. 70/1998)A pledged chattel held by a creditor or by a third person shall be demanded by the trustee in bankruptcy and sold under the terms and procedures of this chapter, unless a law provides for its sale by the creditor without court interference.CHAPTER FORTY-SEVENDISTRIBUTION OF THE ASSETS CONVERTED INTO CASHAND COMPLETION OF THE BANKRUPTCY PROCEEDINGS(Previous Chapter 43, SG No. 83/1996)Section IDistribution of the Assets Converted into CashCondition for the DistributionArticle 720The distribution shall be carried out when sufficient cash funds accumulate in the bankruptcy estate.Distribution AccountArticle 721(1) (Amended, SG No. 84/2000) The trustee in bankruptcy shall prepare an account for the distribution of the available amounts among the creditors with claims pursuant to article 722, paragraph 1, in conformity with the order, the privileges, and the pledges.(2) The distribution account is partial up to the point when the obligations have been repaid in full or the entire bankruptcy estate, with the exception of the unsellable chattels, has been converted into cash.(3) ( New, SG No. 84/2000) The inclusion into the account for distribution of a claim under article 722, paragraph 1, Item 7, may not be refused, if the obligation has been taken with the consent of the trustee in bankruptcy or has been recognised him.Order of the ClaimsArticle 722(1) When the cashed in property is allocated, the claims shall be redeemed in the following order:1. (amended, SG No. 70/1998, SG No. 105/2005) Claims secured by a pledge or mortgage or distraint or prohibition registered in pursuance of the procedure under the Registered Pledges Act ;2. Claims with regards to which the right to foreclose is exercised - out of the value of the foreclosed property;3. Bankruptcy costs;4. (amended, SG No. 58/2003) Claims deriving from employment contractual relations, which have emerged before the date of the ruling to institute bankruptcy proceedings;5. Support owed by the debtor to third persons by operation of law;6. (amended, SG No. 70/1998, No. 84/2000) Public law claims of the state and the municipalities such as taxes, customs duties, fees, obligatory social security contributions, as well as others, which have emerged prior to the date of the ruling to institute bankruptcy proceedings;7. Claims which have emerged after the date of the ruling to institute bankruptcy proceedings and have not been paid when due, deriving from the continuing operations of the debtor;8. (renumbered from Paragraph 9, amended SG No. 70/1998) Any remaining unsecured claims that may have occurred prior to the date of the ruling to institute bankruptcy proceedings;9. (new, SG No. 70/1998) claims under Article 616, para 2, Item 1;10. (new, SG No. 70/1998) claims under Article 616, para 2, Item 2;11. (new, SG No. 70/1998) claims under Article 616, para 2, Item 3;12. (new, SG No. 38/2006) claims under Article 616, para 2, Item 4.(2) (Amended, SG No. 70/1998, No. 38/2006) In case the cash funds are insufficient to fully satisfy the claims under para 1, Items 3-12, they shall be allocated among the creditors under the commensurability order.(3) (New, SG No. 38/2006) Where several claims by the state of the same sequence have been presented and allowed, the amount due shall be disbursed for the entire sequence in totality from the distribution account, and after receipt shall be distributed by the Government Claims Agency in accordance with the procedure as per the Tax and Social Insurance Procedure Code . The Government Claims Agency shall notify the trustee in bankruptcy without delay of the distribution of funds carried out.Costs on the BankruptcyArticle 723Bankruptcy costs are:1. (amended, SG, No. 38/2006) the stamp duty pertinent to the bankruptcy proceedings and all remaining expenses accrued until the moment of entry into force of the decision on the institution of bankruptcy proceedings;2. the remuneration of the trustee in bankruptcy;3. the payables to the employees, in case the debtor's enterprise has not wound up its operations;4. the expenses on replenishing, managing, assessing, and distributing the bankruptcy estate;5. the specified support of the debtor and his family.Satisfaction of a Secured Creditor and of a Creditorwith a Right to ForecloseArticle 724(1) In the event that the selling price of a pledged or mortgaged chattel does not cover the claim with the interest accumulated in full, the creditor shall participate for the balance in the distribution along with the creditors with unsecured receivables.(2) In case the selling price of a pledged or mortgaged chattel exceeds the secured claim with the interest accumulated, the balance shall be included in the bankruptcy estate.(3) (Amended, SG No. 70/1998) In any case of the bankruptcy proceedings, the debtor may sign a contract with all creditors with accepted receivables for settling payment of cash liabilities. In such a case, the trustee in bankruptcy shall not represent the debtor as party.(4) Paras 1, 2, and 3 shall also apply to satisfying the claim of a creditor with a lien.Participation of Claims under Postponing or Peremptory ConditionsArticle 725(1) A claim under a postponing condition is included in the initial distribution as a disputed receivable. An adequate distribution amount is set aside for it. In the final distribution, this receivable shall be excluded, in case the condition has not been realised.(2) A claim under a peremptory condition shall be included in the distribution as unconditional.Setting Aside Amounts for a Disputed ClaimsArticle 726(1) For a claim disputed under judicial proceedings, the adequate amount shall be set aside in the distribution account.(2) In case only the security or the privilege has been disputed, the claim shall be included as unsecured up to the settlement of the dispute, the amount which the creditors would have received for a secured receivable being set aside in the distribution account.Publicity of the Distribution AccountArticle 727(Supplemented, SG No. 38/2006) The distribution account shall be displayed visibly at a specifically designated place in the courthouse, for 14 days. An announcement of the compilation of the distribution account shall be posted by the trustee in bankruptcy in the Commercial Register.Objections to the AccountArticle 728The debtor, the creditors' committee, and each creditor may put object before the court in writing to the distribution account, within the period under Article 727.Approval of the Distribution AccountArticle 729(1) The court of jurisdiction over bankruptcy shall approve by an order the distribution account, having made the relevant change in case it has established proprio motu or following an objection non-conformity with the law.(2) (New, SG No. 104/2007) The ruling approving the distribution account and any appeals against the said ruling received shall be published in the Commercial Register, whereby the creditors and the debtor shall be presumed notified.(3) (Amended, SG No. 38/2006, renumbered from Paragraph (2), SG No. 104/2007) The ruling under Paragraph (1) shall be appealable by the debtor, by the creditors' committee, or by an individual creditor.(4) (Renumbered from Paragraph (3) - SG No. 104/2007) The distribution account approved shall be executed by the trustee in bankruptcy.Additional Inclusion of a Creditor in the DistributionArticle 730A creditor who has filed his claim after a distribution has been made, shall be included in the subsequent distributions without the right for equalisation with what has already been paid.Additional Inclusion of AmountsArticle 731The bankruptcy estate shall include additionally the newly-collected amounts from claims of the debtor and from converting assets into cash, as well as the amounts from receivables which the creditors have waived.Return of the Bankruptcy Estate BalanceArticle 732After the full payment of the obligations, the bankruptcy estate balance shall be returned to the debtor.Section IICompletion of the Bankruptcy ProceedingsReport of the Trustee in BankruptcyArticle 733(Amended, SG No. 38/2006) Within one month after the depletion of the bankruptcy estate, with the exception of the unsellable chattels, the trustee in bankruptcy shall submit to the bankruptcy court:1. a report on his/her activities;2. an account on the distribution of payments raised as a result of cashing the property, and on the remaining outstanding claims.Conclusive Creditors' MeetingArticle 734(1) The court shall convene a conclusive creditors' meeting within 14 days after receiving the report of trustee in bankruptcy.(2) (Amended, SG, No. 38/2006) The meeting shall hear the account on the distribution of payments raised as a result of cashing the property, and on the remaining outstanding claims. The meeting shall adopt a decision regarding the unsellable chattel from the bankruptcy estate.(3) (New, SG No. 38/2006) The creditors; meeting may adopt a decision to leave to the debtor chattel of negligible value or claims the collection of which could be rendered onerous.Completion of the Bankruptcy ProceedingsArticle 735(1) The bankruptcy proceedings shall be terminated by a court ruling, when:1. The obligations have been paid;2. The bankruptcy estate has been depleted.(2) By the ruling under para 1, the court shall enact a deletion of the merchant, unless all creditors have been satisfied and assets have remained.(3) (Amended, SG, No. 38/2006) The decision as per par. (1) may be appealed within 7 days as from the date of recordation thereof in the Commercial Register.Termination of the Powers of the Trustee In BankruptcyArticle 736(1) The powers of the trustee in bankruptcy shall be terminated with the termination of the bankruptcy proceedings.(2) The trustee in bankruptcy shall hand over the commercial books and the assets balance to the debtor or to the debtor's managerial body.Depositing the Uncollected AmountsArticle 737Upon the injunction of the court, the trustee in bankruptcy shall deposit with a bank the amounts which have been set aside in the final distribution for the uncollected or disputed claims.Termination of the Effect of the AttachmentArticle 738(1) The effect of the attachment shall be terminated by the termination of the bankruptcy proceedings.(2) (amended, SG No. 38/2006) The attachment shall be deleted proprio motu as from the moment of recordation of the decision of the termination of the bankruptcy proceedings in the Commercial Register;ExtinguishmentArticle 739(1) The claims which have not been filed in the bankruptcy proceedings and the rights which have not been exercised shall be extinguished.(2) The claims which have not been satisfied in the bankruptcy proceedings shall be extinguished, with the exception of the cases under Article 744, para 1.CHAPTER FORTY-EIGHTOUT OF COURT SETTLEMENT(Previous Chapter 44, SG No. 33/1996)AgreementArticle 740(1) (Amended, SG No. 70/1998)At any point in the bankruptcy proceedings it shall be possible to conclude an agreement for settlement of cash obligations between the debtor and all the creditors holding claims allowed.(2) (Amended, SG, No. 38/2006) Provided that the concluded agreement satisfies the requirements of the law, the court shall, by a ruling, terminate the bankruptcy proceedings, subject to the condition that there are no claims filed under Art. 694 par. (1), regarding ascertainment of the non-existence of an allowed claim. Such ruling shall be subject to appeal within 7 days from the date of entry thereof into the Commercial Register.(3) The agreement shall be concluded in writing.Applicability of Civil LawArticle 741Civil law shall apply unless provided otherwise in the agreement or this Act.Renewal of Bankruptcy ProceedingsArticle 741a(New, SG, No. 70/1998)Should the debtor fail to perform its obligations under the contract, creditors whose claims constitute not less than 15 per cent of the total amount of claims may request a renewal of the bankruptcy proceedings without having to prove new insolvency or over-indebtedness, as the case may be. In the renewed bankruptcy proceedings, no reorganisation proceedings shall be carried out.CHAPTER FORTY-NINESPECIFIC RULES FOR COMPANIES(Previous Chapter 45, SG No. 83/1996)Over-indebtednessArticle 742(1) A commercial company shall be deemed over-indebted provided its assets are insufficient to cover its liabilities.(2) (Supplemented SG No. 70/1998) Bankruptcy proceedings on grounds of over-indebtedness can also be initiated by a member of the commercial company's managing body and by the liquidator.Separation of PropertyArticle 743(1) The assets of a general partnership, limited partnership or partnership limited by shares with respect of which bankruptcy proceedings have been initiated, as well as the assets of an unlimited partner shall be kept separately.(2) Creditors with personal claims on debts of an unlimited partner shall not participate in the distribution of the company's assets.(3) The creditors of a company can participate in the distribution of the personal property of an unlimited partner only with a claim which has not been satisfied in the course of the company's bankruptcy proceedings.CHAPTER FIFTYRESUMPTION OF BANKRUPTCY PROCEEDINGS(Previous Chapter 46, SG No. 83/1996)Conditions for ResumptionArticle 744(1) Discontinued bankruptcy proceedings shall be resumed by court ruling provided within a year after such discontinuation:1. amounts allocated for contested claims are released;2. assets the existence of which was ignored during the bankruptcy proceedings are discovered.(2) Where the released allocated amounts and the newly-discovered assets are insufficient to cover the cost of proceedings, the court may refuse to resume the proceedings unless an interested party pays the necessary amount in advance.Petition for Resumption of ProceedingsArticle 745Bankruptcy proceedings shall be resumed following a written application by the debtor or a creditor whose claim has been recognised or established by court.Effect of ResumptionArticle 746(1) The ruling to resume proceedings shall re-establish the rights of the trustee in bankruptcy and the Committee of Creditors.(2) Resumed proceedings shall recommence from the final distribution account, which is considered as partial.CHAPTER FIFTY-ONERESTORATION OF DEBTOR RIGHTS(Previous Chapter 47, SG No. 83/1996)(Title amended, SG 38/2006) Effect of RestorationArticle 747(1) (Previous Art. 747, SG No. 38/2006) Restoration of the rights of a sole proprietor debtor and an unlimited partner shall delete ex tunc the implications which the law relates to the declaration of bankruptcy.(2) (New, SG No. 38/2006) This Chapter shall apply, respectively, for natural persons who have participated in the management of the commercial company declared bankrupt.Prerequisites for RestorationArticle 748(1) Rights shall be restored to a debtor who pays in full claims allowed in the bankruptcy proceedings and the related interest and expenditures.(2) The rights of a debtor shall be restored also in case of non-full payment of debts if the bankruptcy is due to adverse changes in the economic environment.(3) The rights of an unlimited partner shall be restored pursuant to paras 1 and 2. If he pays the debts of an insolvent company, and such payment shall not be considered an amount not owed.InadmissibilityArticle 749The rights of a debtor convicted for bankruptcy shall not be restored.Petition for RestorationArticle 750(1) Debtors shall file an application for restoration of rights in writing with the bankruptcy court.(2) The application shall be accompanied with evidence that the claims allowed in the bankruptcy proceedings have been paid.Restoration of Rights of Deceased DebtorsArticle 751Petition for restoration of rights of a deceased debtor shall be filed by one heir at least.Announcement of Petition for RestorationArticle 752(Amended, SG No. 38/2006) The petition for restoration shall be entered in the Commercial Register under the case file of the merchant declared bankrupt.Objection to PetitionArticle 753(Amended, SG, No. 38/2006) Within a month from the date of entry of the petition for restoration into the Commercial Register, any creditor with a claim recognised or established by court order can object in writing against the application for restoration.Consideration of PetitionArticle 754An application for restoration and the related objections shall be considered in open session to which the petitioner and the objecting creditor have been summoned.AppealArticle 755(1) A court ruling in favour of the application shall not be subject to appeal.(2) A court ruling against the application for restoration of rights shall be subject to appeal by the debtor within a seven-day period.(3) (Amended, SG No. 38/2006) The effective court decision shall be entered in the Commercial Register under the case file of the merchant declared bankrupt.New Petition for RestorationArticle 756A new application for restoration of rights can be filed not earlier than one year after the ruling to reject an application has come into effect.CHAPTER FIFTY-TWOAPPLICABLE LAW(Previous Chapter 48, SG No. 83/1996)Acceptance of Foreign Court Ruling on BankruptcyArticle 757On conditions of reciprocity the Republic of Bulgaria shall honour foreign court ruling of bankruptcy, provided it is taken by an authority of the state where the debtor's registered main office is located.Powers of a Trustee in Bankruptcy Appointedby Foreign Court of LawArticle 758A trustee in bankruptcy appointed by a foreign court ruling shall have the powers envisaged in the state where the bankruptcy proceedings are initiated, provided they do not contradict public order rules of the Republic of Bulgaria.Supplementary Bankruptcy ProceedingsArticle 759(1) At the request of a debtor, trustee in bankruptcy appointed by foreign court of law or a creditor, a Bulgarian court can institute supplementary bankruptcy proceedings concerning a merchant who has been ruled bankrupt by a foreign court, provided he has substantial property within the territory of the Republic of Bulgaria.(2) The decision pursuant to para 1 shall be effective only in respect of debtor property within the territory of the Republic of Bulgaria.Effect of Supplementary ProceedingsArticle 760(1) A claim for repeal lodged by the trustee in bankruptcy with respect of the main or supplementary bankruptcy proceedings shall be deemed to apply to both.(2) A creditor who has received partial payment under the main proceedings shall participate in the distribution of assets under the supplementary proceedings provided the portion he would get is bigger than the respective portion to be received by the other creditors under the supplementary proceedings.(3) A plan referred to in Article 696 can be approved in the supplementary bankruptcy proceedings only with the consent of the trustee in bankruptcy in the main bankruptcy proceedings.(4) When distribution under supplementary proceedings is completed, the remaining property shall be transferred to the property under the main proceedings.SUPPLEMENTARY PROVISIONS(New, SG No. 63/1994) 1. (1) "Related persons" within the meaning of this Act shall be:1. Spouses, relatives on direct line of descent - without any restrictions, relatives on collateral line of descent - up to and including the fourth degree, and in-law lineage - up to and including the third degree;2. Employers and employees;3. Persons one of which is involved in the management of the other one's company;4. Partners;5. A company and a person who owns more than 5 percent of the company's voting shares and stock;6. Persons whose activities are under the direct or indirect control of a third party;7. Persons who exercise joint direct or indirect control over a third party;8. Persons one of whom is a commercial agent of the other;9. Persons one of whom has made a donation in favour of the other.(2) "Related persons" shall be also persons who either directly or indirectly participate in the management, control or capital of another person or persons, which may enable them to agree on terms and conditions which differ from the standard practice. 1a. (New, SG No. 70/1998) "Autonomous part" within the meaning of this Act shall be an organisational structure which can perform business activity independently (such as a shop, studio, ship, workshop, restaurant, hotel, etc.) 1b. (New, SG No. 38/2006) "Web page" within the meaning of this Act shall mean a designated resource within the World-Wide Web (the Internet) containing programs, text, sound, graphics, images or other material accessible through standardized access protocol and content presentation. 1c. (New, SG No. 104/2007) (1) "Control", within the meaning of this Act, shall be in place where one natural or legal person (controlling party):1. holds more than one-half of the votes in the General Meeting of another legal person, or2. has the right to appoint more than one-half of the members of the management or supervisory body of another legal person and, at the same time, is a shareholder or a partner in the said legal person, or3. has the right to exercise a dominant influence over another legal person by virtue of a contract concluded therewith or by virtue of its Memorandum or Articles of Association, or4. is a shareholder or a partner in another legal person and by virtue of a contract with other shareholders or partners controls, on his own, more than one-half of the votes in the General Meeting of that legal person.(2) In the cases referred to in Items 1, 2 and 4 of Paragraph (1), the votes of the persons controlled by the controlling party, as well as the votes of persons who act on their own behalf but for the account of the controlling party or for the account of another person controlled thereby, shall be added to the votes of the controlling party.(3) In the cases referred to in Items 1, 2 and 4 of Paragraph (1), the votes attached to shares or participating interests held by the controlling party for the account of another person who is not controlled thereby, as well as the votes attached to shares or participating interests which the controlling party holds as security shall not be treated as votes of the controlling party if the rights attached to the said shares or interests are exercised by order or in the interest of the person who furnished the security.(4) In the cases referred to in Items 1 and 4 of Paragraph (1), the total number of votes in the General Meeting of a controlled party shall be reduced by the votes attached to shares or participating interests held by the said party, by a person controlled by the said party, or by a person who acts on his own behalf but for the account of the said party. 2. Debts in foreign currency shall be converted in Bulgarian leva at the exchange rate of the Bulgarian National Bank as of the date on which the ruling to institute bankruptcy proceedings was taken. 3. The provisions set forth in Part Four of this Act concerning commercial companies shall apply also to cooperatives - merchants. 3a. (New, SG No. 38/2006) The Minister of Justice shall organize the keeping and storage in electronic format of the book as per Art. 634b, paragraph 1. 4. (Amended, SG No. 28/2002) The Privatization and Post-privatization Control Act shall not apply to cases referred to in Article 700, para 2 of this Act. 5. (1) (Amended, SG Nos. 70/1998, 28/2002, SG No. 31/2003, No. 38/2006) A decision determining a method for the sale of shares or interests in any commercial corporation wherein the State or a municipality holds an interest in the capital exceeding 50 per cent, which is subject to instituted bankruptcy proceedings, may be adopted prior to the date as defined by the bankruptcy court approving the list of claims as allowed under Article 692 para 4 herein.(2) Bankruptcy proceedings shall be discontinued upon approval by the court of the list of allowed claims under Article 692.(3) Unless a Privatisation transaction is concluded within 4 months after the discontinuation of bankruptcy proceedings, the latter shall be resumed.(4) (Amended, SG No. 28/2002) The money proceeds from the privatization of any commercial corporation subject to instituted bankruptcy proceedings shall be distributed according to the procedure established by Section I of Chapter Forty-Seven of this Code. The sum remaining after satisfaction of the creditors shall be distributed according to the procedure established by Articles 8 and 10 of the Privatization and Post-privatization Control Act . 5a. (New, SG No. 104/2007) This Act transposes the provisions of the First Council Directive (68/151/EEC) on coordination of safeguards which, for the protection of the interests of members and others, are required by Member States of companies within the meaning of the second paragraph of Article 58 of the Treaty, with a view to making such safeguards equivalent throughout the Community, the Second Council Directive (77/91/EEC) on coordination of safeguards which, for the protection of the interests of members and others, are required by Member States of companies within the meaning of the second paragraph of Article 58 of the Treaty, in respect of the formation of public limited liability companies and the maintenance and alteration of their capital, [with a view to making such safeguards equivalent], the Third Council Directive (78/855/EEC) based on Article 54 (3) (g) of the Treaty concerning mergers of public limited-liability companies, the Sixth Council Directive (82/891/EEC) based on Article 54 (3) (g) of the Treaty, concerning the division of public limited liability companies, the Eleventh Council Directive (89/666/EEC) concerning disclosure requirements in respect of branches opened in a Member State by certain types of company governed by the law of another State, the Twelfth Council Company Law Directive (86/667/EEC) on single-member private limited-liability companies, and Council Directive 86/653/EEC on the coordination of the laws of the Member States relating to self-employed commercial agents.TRANSITIONAL AND CONCLUDING PROVISIONS 6. (Renumbered from 1, SG No 63/1994) This Act shall enter into force on 1 July 1991 and shall repeal Chapters One and Two and Article 65, para 4 of Decree 56 on Economic Activity (promulgated in State Gazette No. 4/1989; amended SG No. 16/1989; amended Nos. 38, 39 and 62/1989, Nos. 21, 31 and 101/1990, Nos. 15 and 23/1991; amended SG No. 25/1991) 7. (Renumbered from 2, SG No 63/1994) State-owned and municipal firms registered pursuant to Decree 56 on Economic Activity shall continue their activities under the existing provisions until they are transformed into companies pursuant to Articles 61 and 62 of this Act. 8. (Renumbered from 3, SG No 63/1994) (1) The registration of companies pursuant to Decree 56 on Economic Activity shall remain valid, and the following changes shall be made ex lege:1. sole proprietor firms shall be deemed sole proprietors. The name as provided for in Article 59 shall be added if missing;2. collective or partnership firms of individuals shall be deemed general partnerships. The necessary extension pursuant to article 77 shall be added;3. limited liability firms shall be deemed limited liability companies. The extension "firma s ogranichena otgovornost" or "OOF" shall be replaced with "druzhestvo s ogranichena otgovornost" or "OOD". The firm's head shall become ex lege the company's manager;4. joint-stock firms shall be deemed joint-stock companies. The extension "aktsionerna firma" or "AF" shall be replaced with "aktsionerno druzhestvo" or "AD". The functions of the firm's manager shall be assumed by the company's managing board;5. unlimited liability firms which have not issued stock shall be deemed limited partnerships. The extension "firma s neogranichena otgovornost" or "NOF" shall be replaced with "komanditno druzhestvo" or "KD";6. unlimited liability firms which have issued stock shall be deemed partnerships limited by shares. The extension "firma s neogranichena otgovornost" or "NOF" shall be replaced with "komanditno druzhestvo s aktsii" or "KDA".(2) The previous paragraph shall apply mutatis mutandis to foreign and joint firms in the country incorporated pursuant to chapter five of Decree 56 on Economic Activity. 9. (Renumbered from 4, SG No 63/1994) (1) Persons who are carrying on economic activities pursuant to Council of Ministers Decree No. 35/1987 (State Gazette No. 48/1987) and pursuant to issued on the basis of this decree regulations, and who are merchants within the meaning of this Act, must register within 6 months of the entry into force of this Act.(2) The deadline under the previous paragraph shall be deemed observed if the respective application is made prior to its expiration. 10. (Renumbered from 5, SG No 63/1994) (1) Clauses in articles of incorporation or partnership and in Articles of Association of firms which have been registered prior to the entry into force of this Act and which are inconsistent with its mandatory provisions shall be replaced ex lege with the respective provisions of this Act.(2) On pending applications for registration the court shall provide, if necessary, a deadline to the interested parties to bring their articles or, respectively, Articles of Association, in conformity with the provisions of this Act.TRANSITIONAL AND CONCLUDING PROVISIONSTo the Act amending and supplementing the Commerce Act(Promulgated State Gazette No. 63/1994) 7. This Act shall supersede Title III of Decree No.56 on Economic Activity (publ. in SG No.4 of 1989, amended, No.16/1989, amended in No. 28, 39 and 62/1989, No. 21, 31 and 101 of 1990, amended in No.5/1991; No. 15 and 23/1991, amended; in No.25/1991; amended in No.47, 48 and 62/1991, No. 60/1992, No.84 and 93/1993). 8. (1) Any settlement procedures under Article 66 of Decree No.56 on Economic Activity, pending at the time of entry of this Act into force, shall be terminated.(2) Existing pending actions for declaration of bankruptcy shall continue under the procedure of this Act with the appointed liquidator exercising the functions of a trustee; in the event of bankruptcy of a single-person trader, a trustee shall be appointed.(3) If distribution of assets has not started in an existing procedure under paragraph (2), a plan may be proposed under Article 696 of this Act within 2 months of the entry into force of this Act. This plan shall be reviewed under the procedure of Chapter Forty of this Act.TRANSITIONAL AND CONCLUDING PROVISIONSTo the Securities, Stock Exchanges And Investment Companies Act (Promulgated State Gazette No. 63/1995). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11. The ration between voting and non-voting shares in the nominal value of the capital under Article 182(3) of the Commerce Act must be achieved within one year of the entry of this Act into force.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .TRANSITIONAL AND CONCLUDING PROVISIONSto the law on Amendment and Supplement of the Commerce Act(SG, No. 83/1996, effective 1.11.96) 9. Amendments to Articles 203 and 266 as well as to Article 270a shall apply also to such cases of liquidation that have not been completed to the entry of this Act into force.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .TRANSITIONAL AND CONCLUDING PROVISIONSto the law on Amendment and Supplement of the Commerce ActPromulgated State Gazette No. 100/1997, amended in No. 39/1998) 5. In respect of pending applications for registration the court shall, where necessary, fix a period of time for the parties concerned to bring their Articles of Incorporation, Articles of Association respectively, in compliance with the provisions of this Act. 6. (1) Where a company has been incorporated for the exclusive purpose to participate in a privatisation transaction concluded by persons under Article 25, para (3) and Article 31, para (1) of the Transformation and Privatisation of State-owned and Municipal Enterprises Act , the required minimum capital shall be as follows:1. for a limited liability company - BGL 500,000, where the shares may not be less than BGL 1,000 each;2. for a joint-stock company and partnership limited by shares, where formed by subscription - BGL 10,000,000, where formed without subscription - BGL 5,000,000.(2) A company under para (1) above may not conclude transactions other than such necessary for participation in the privatisation.(3) After completion of the privatisation transaction a company under para (1) should forthwith bring its capital in compliance with the requirements of Article 117, para (4), and Article 161, para (2) respectively.(4) Where the company under para (1) fails to conclude the privatisation transaction, it shall be dissolved within three months following the completion of the privatisation procedure. 7. (1) The existing limited liability companies, joint-stock companies and partnerships limited by shares shall be bound to bring their capital in compliance with the minimum required by law and to request registration of such circumstances in the commercial register within one year following the coming of this Act into force.(2) In the cases under para (1), for the purposes of entering in the commercial register a decision about increase of joint-stock company capital, it shall be required not less than 25 percent of the capital amount after the increase to be paid in. 8. Where a company fails to meet its obligations under 7, the provisions of Article 155, subpara 2, and Article 252, subpara 5, respectively, shall apply.TRANSITIONAL AND CONCLUDING PROVISIONSto the law on Amendment and Supplement of the Commerce Act(Promulgated State Gazette No. 70/1998) 58. (1) Within two month of the effective date of this Act, the Minister of Justice and European Integration shall endorse a list of persons who can be appointed to the position of receivers by the court, and promulgate it in the State Gazette.(2) The list under para 1 can be added to at any time.(3) The Minister of Justice and European Integration must send to all district courts the list under para 1, indicating the address and specialization area of approved receivers.(4) A person appointed as a receiver or interim receiver under bankruptcy proceedings grandfathered by this Act shall be released by the court within a time period not to exceed one month following the promulgation of the list in the State Gazette, in case he is not included in the list under para 1. Within the same time period, the court shall be obliged to appoint a person from those listed in the list under para 1 to the vacancy opened by the released receiver or the interim receiver. 59. Under court action in process grandfathered by this Act on which a decision has been ruled to declare the debtor bankrupt, it shall be presumed that the court has ruled termination of the activity of the enterprise as per Article 711, para 1, subpara 1 as of the date of the decision declaring bankruptcy.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .TRANSITIONAL AND CONCLUDING PROVISIONSto the Lev Re-denomination Act (SG No. 20/1999, supplemented, SG No. 65/1999, effective 5.07.1999). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. (1) (Supplemented, SG No. 65/1999) With the entry into force of this Act, any and all amounts in old Bulgarian leva as may appear in laws effective prior to July 5th, 1999, shall be replaced by figures in new Bulgarian leva reduced 1,000 times. The replacement of all figures in old Bulgarian leva with ones in 1,000 times reduced figures in new Bulgarian leva shall also apply to any and all laws enacted prior to July 5th, 1999, which have become, or are to become effective, following that date.(2) The bodies which have adopted or issued secondary legislation or regulatory acts effective prior to July 5th, 1999, which contain figures in Bulgarian leva, shall effect the relevant amendments arising out of this Act in such a way as to make such amendments backdated to, and effective from, the date of entry into force of this Act.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. Effective as of July 5th, 1999.TRANSITIONAL AND CONCLUDING PROVISIONSto the law on Amendment and Supplement of the Civil Procedure Code(Promulgated State Gazette No. 64/1999). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63. Legal proceedings pertinent to appeal against court decisions and rulings on bankruptcy cases under Art. 613a of the Commerce Act, pending at the time of entry of this Act into force, shall be conducted in accordance with the current procedure .TRANSITIONAL AND CONCLUDING PROVISIONSTo the Tax Procedure Code (SG, No. 103/1999, effective 1.01.2000). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20. (1) Court proceedings in taxation cases, initiated before court and still pending, shall be reviewed under the hitherto procedure.(2) Pending cases under the repealed Article 83(2) of the Collection of State Receivables Collection Act shall be reviewed under the procedure of Chapter Twelve "a" of the Code of Civil Procedure. (3) Pending the adoption of the rules of organization of the tax administration, the number and the territorial scope of the tax directorates shall be determined by order of the Minister of Finance, which shall be published in State Gazette. 21. In regard to any cases, mot regulated by this code, the provisions of the Code of Civil Procedure shall respectively apply.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .TRANSITIONAL AND CONCLUDING PROVISIONSto the law on Amendment and Supplement of the Commerce Act(Promulgated State Gazette No. 84/2000) 139. Legal actions pursuant to article 70 of the Commerce Act, brought prior to the entry into force of this Act, shall be concluded under the procedure existing so far. 140. Joint-stock companies shall bring their Articles of Association into compliance with article 162 within a period of one year after this Act's entry into force. A monetary sanction of up to BGN 2000 shall be imposed in case of non-performance of this obligation. 141. Where a supervisory board may have been authorized by the Articles of Association prior to this Act's entry into force to increase the capital of a joint-stock company, this authority shall be continue to exist until the expiration of its term or until a subsequent amendment to the Articles of Association. 142. Should a prospectus for raising capital for the incorporation of a joint-stock company has been approved by the State Committee on Securities prior to this Act's entry into force, the incorporation shall be governed by the procedure existing so far. 143. The claims for establishing right, submitted under the procedure of article 694 prior to the date of entry into force of the Act on the Amendment and Supplement to the Commerce Act (SG No. 70/1998) shall be considered under the procedure which was effective as of that date. The state fee paid shall be exempted and returned to the payer. 144. Appeals made against decision of the court of jurisdiction over bankruptcy under article 692 prior to this Act's entry into force shall be considered under the procedure which has been effective so far. 145. For pending bankruptcy proceedings, the term referred to in article 688, paragraph 1, shall be considered starting on the date of this Act's entry into force.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .TRANSITIONAL AND CONCLUDING PROVISIONSTo the Act amending and supplementing the Commerce Act(Promulgated State Gazette No. 58/2003, supplemented, SG No. 66/2005) 94. Any change in the seat of a merchant and opening up of a branch that have been declared for registration prior to the coming into force of this act shall be registered following the procedure then in effect. 95. Any transfer of a enterprise performed prior to the coming into force of this act shall be registered following the procedure then in effect. 96. For grandfathered companies, the time period referred to in Article 70, paragraph (2) shall commence as from the coming into force of this act. 97. Claims pursuant to Articles 70 and 74 against decisions to effect transformation that have been filed prior to the coming into force of this act shall be completed following the procedure then in effect. 98. Transformations of companies declared for registration prior to the coming into force of this act shall be registered following the procedure then in effect and shall have effect in accordance with the provisions then in effect. 99. The rights of creditors in relation to transformations registered prior to the coming into force of this act shall be retained. 100.(1) Within three months after the coming into force of this act, the Minister of Justice in cooperation with the Minister of Economy shall issue the regulation referred to in Article 655a, paragraph (1).(2) Until the regulation referred to in Article 655a, paragraph (1) has been issued and until the examination referred to in Article 655a, paragraph (2), subparagraph (7) has been held, receivers shall be appointed under the procedure that has been in effect so far.(3) (Supplemented - SG, No. 66/2005) Within one month following the expiration of the time period specified in paragraph (1), an examination shall be held for the acquisition of receivership qualifications following the procedure specified in the regulation referred to in Article 655a, paragraph (1). The order of the Minister of Justice, whereby the examination is announced, shall be published in State Gazette.(4) Persons who have successfully taken the examination for the acquisition of receivership qualifications shall be named in a list which shall be promulgated in the State Gazette.(5) A person who has been appointed receiver or temporary receiver in grandfathered bankruptcy proceedings shall be discharged forthwith by the court if he is not included in the list of persons who may be appointed to receiver positions as promulgated in the State Gazette. 101.(1) Grandfathered pending bankruptcy proceedings shall be completed following the procedure set out in this act.(2) Any petitions of appeal against the actions referred to in Article 613a, paragraph (1), shall be dealt with under the procedure that has been in effect so far.(3) In relation to the time periods referred to in Article 686, Article 688, paragraph (1), Article 690 and Article 694, paragraph (1) which have commenced prior to the coming into force of this act, the provisions which had been in force previously shall apply, unless they expire after the time periods set under this act.(4) Public sales for which announcements have been made when this act takes force shall be completed in the procedure that has been in effect so far, upon which the provision of Article 717g shall apply.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ADDITIONAL PROVISIONto the Law on the Amendment and Supplement to the Commerce Act(SG No. 66/2005) 31. Throughout the text of this act, the phrases "accounting statement" and "accounting statements" shall be replaced by "financial statement" and "financial statements" respectively.TRANSITIONAL AND CONCLUDING PROVISIONSto the law on Amendment and Supplement of the Commerce Act(Promulgated State Gazette No. 38/2006) 163. The imperative provisions of this Act shall also apply to contract for trade representation valid at the time of its entry into force. 164. (Amended, SG No. 80/2006, effective 3.10.2006) Until the date of entry into force of the Commercial Register Act, any announcement of acts of court, the identifying data of the trustee in bankruptcy and the supervisory body, as well as any invitations, announcements and summonses shall be promulgated, as heretofore, in State Gazette. 165.(1) Grandfathered pending bankruptcy proceedings shall be completed following the procedure set out in this act.(2) Regarding time limits as per Art. 626 par. (1) and Art 698 par. (1) which have commenced prior to the coming into force of this Act, the provisions which had been in force heretofore shall apply.(3) Regarding public sales for which announcements had been issued prior to the effective date of this Act, the time limits for dissemination of such announcements that had been in force towards the date of issuance of the announcements shall apply.(4) The provision of par. (1) shall also apply in relation to Art. 718a regarding housing units, unless a sale agreement in respect thereof had been concluded towards the effective date of this Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167. The provisions of 1 through 7, 15, items 3 through 5, 16 through 77, 78, item 2, 79 ?(*) Act to Amend the Commercial Register Act(SG No. 80/2006, effective 3.10.2006) 1. In 56 of the Transitional and Final Provisions the words "1 October 2006" shall be replaced by "1 July 2007"........................................................................Act to Amend and Supplement the Commerce Act(SG No. 104/2007)........................................................................SUPPLEMENTARY PROVISION 11. This Act transposes the provisions of Council Directive 92/101/EEC amending Directive 77/91/EEC on the formation of public limited-liability companies and the maintenance and alteration of their capital, Directive 2006/68/EC of the European Parliament and of the Council amending Council Directive 77/91/EEC as regards the formation of public limited liability companies and the maintenance and alteration of their capital, and Directive 2005/56/EC of the European Parliament and of the Council on cross-border mergers of limited liability companies.TRANSITIONAL AND FINAL PROVISIONS........................................................................ 15. (1) 2 shall have effect as from the day of entry into force of the Commerce Act.(2) 14 shall enter into force as from the day of entry into force of the Commercial Register Act. (3) Until the entry into force of the Commercial Register Act, the recordation of the circumstances and the issuing of the certificates provided for in 14 shall be effected by the competent district court according to the rules of Chapter Fifty-Two of the Code of Civil Procedure, and the publication of the acts shall be effected through promulgation in the State Gazette. For more information visit www.solicitorbulgaria.com id: 290 Thu, 31 Jul 2008 03:34:55 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-commerce-act-part-5 http://web.solicitorbulgaria.com/index.php/bulgarian-commerce-act-part-5 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/COMMERCE_ACT3.jpg EUR http://web.solicitorbulgaria.com/index.php/bulgarian-commerce-act-part-5 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) CHAPTER THIRTYBILL OF EXCHANGESection IGeneral ProvisionsContentsArticle 455A bill of exchange shall contain:1. the title "bill of exchange" in the text of the document in the language in which the document has been written;2. unconditional order to pay a certain sum of money;3. name of the person who must pay (drawee);4. maturity;5. place of payment;6. name of the person to whom or to whose order the sum must be paid (payee);7. date and place of issue;8. signature of the drawer.Incomplete contentsArticle 456(1) A document which does not contain any of the requisites listed in Article 455, shall not be a bill of exchange, except for the cases specified in the paragraphs below.(2) A bill of exchange in which no maturity has been specified, shall be deemed payable on demand.(3) A bill of exchange in which no place of payment has been specified, shall be deemed payable at the place indicated next to the name of the drawee, which shall be assumed to be the place of residence of the drawee.(4)… For more information visit http://www.solicitorbulgaria.com id: 291 CHAPTER THIRTYBILL OF EXCHANGESection IGeneral ProvisionsContentsArticle 455A bill of exchange shall contain:1. the title "bill of exchange" in the text of the document in the language in which the document has been written;2. unconditional order to pay a certain sum of money;3. name of the person who must pay (drawee);4. maturity;5. place of payment;6. name of the person to whom or to whose order the sum must be paid (payee);7. date and place of issue;8. signature of the drawer.Incomplete contentsArticle 456(1) A document which does not contain any of the requisites listed in Article 455, shall not be a bill of exchange, except for the cases specified in the paragraphs below.(2) A bill of exchange in which no maturity has been specified, shall be deemed payable on demand.(3) A bill of exchange in which no place of payment has been specified, shall be deemed payable at the place indicated next to the name of the drawee, which shall be assumed to be the place of residence of the drawee.(4) A bill of exchange in which no place of issue has been indicated, shall be considered to be issued at the place indicated next to the name of the drawer.Bill of exchange to the order of the drawer and against the drawerArticle 457A bill of exchange may be issued to the order of the drawer himself, as well as against the drawer.Place of paymentArticle 458(1) A bill of exchange may be payable at the place of residence of a third party, at the place of residence of the drawee, or at another place.(2) Where the drawer has specified in the bill of exchange a place of payment other than the place of residence of the drawee, without indicating a third party with whom the payment is to be effected, the drawee may determine this third party upon acceptance. It shall be assumed, unless otherwise agreed, that the drawee has undertaken to pay personally at the place of payment specified in the bill of exchange.(3) Where a bill of exchange is payable at the place of residence of the drawee, he may indicate upon acceptance an address within the same locality where the payment is to be effected.Obligation for interestArticle 459(1) In a bill of exchange payable on demand or within a certain term after presentation, the drawer may undertake an obligation for interest on the amount. In the case of any other bill of exchange such an obligation shall be considered null and void.(2) The amount of the interest must be indicated in the bill of exchange.(3) Interest shall be charged as from the date of issue of the bill of exchange, unless another date has been specified.Differences in the sumArticle 460(1) Where the sum has been written in the bill of exchange in figures and in words, in the case of difference the sum written in words shall be valid.(2) Where the sum has been written in the bill of exchange several times in words or in figures, in the case of difference the smallest sum shall be valid.Validity of signaturesArticle 461Should a bill of exchange bear signatures of persons who may not undertake obligations under a bill of exchange, false signatures, signatures of non-existent persons or signatures which, for some other reason, may not bind the persons who have signed or on behalf of whom the bill of exchange has been signed, the obligations of the other persons who have signed shall be valid.Signature without authorizationArticle 462A person who signs a bill of exchange as an agent without having such authority, or who exceeds his authority by doing so, shall be personally liable under the bill of exchange, and should he pay, he shall have the same rights as would have the represented person.Liability of the drawerArticle 463(1) The drawer shall be liable for the acceptance and payment of a bill of exchange.(2) The drawer may be relieved of liability for acceptance, but he may not be relieved from liability for payment.Blank bill of exchangeArticle 464If a bill of exchange, which has not been filled in at issue, is filled in not as agreed, the default on the agreed may not be counterposed against the bearer unless he has acquired the bill of exchange through abuse of authority or gross negligence.Objections of debtorsArticle 465Debtors under a bill of exchange may not use against the bearer objections based on their personal relationship with the drawer or with some of the former bearers, unless the bearer did not act in good faith in acquiring the bill of exchange.Section IIEndorsementTransfer of a bill of exchangeArticle 466(1) Any bill of exchange, even where not explicitly issued to order, may be transferred by endorsement.(2) Where the drawer has written in the bill of exchange the words "not to order" or another phrase of equivalent meaning, the bill of exchange shall be transferred under the procedure for transfer of receivables.(3) A bill of exchange may be endorsed to the drawee, the drawer or any other person who has undertaken obligations under the bill of exchange. Such persons may again endorse the bill of exchange.QualificationsArticle 467(1) An endorsement may not be conditional.(2) A partial endorsement shall be null and void.(3) An endorsement to the bearer shall have the same effect as a blank endorsement.FormArticle 468(1) The endorsement must be written on the bill of exchange or on a sheet of paper attached thereto (allonge). Is must be signed by the endorser.(2) The endorsement need not specify the person in whose favour it was made, or it may contain only the signature of the endorser (blank endorsement). In order to be valid, a blank endorsement must be written on the back of the bill of exchange or the allonge.EffectArticle 469(1) An endorsement shall transfer all the rights under a bill of exchange.(2) In the case of a blank endorsement, the bearer may:1. fill in the blank space with his own name or the name of another person;2. make a blank endorsement on the bill of exchange;3. deliver the bill of exchange to another person, without filling in the blank space and without endorsing it.Liability of the endorserArticle 470(1) The endorser shall be liable for the acceptance and payment of the bill of exchange, unless otherwise agreed.(2) An endorser may prohibit further endorsement. In such case he shall not be liable before the persons to whom the bill of exchange has been endorsed subsequently.BearerArticle 471(1) The holder of a bill of exchange shall be deemed the legitimate bearer, provided his right ensues from the continuous order of endorsements, even where the last endorsement has been a blank endorsement. Crossed out endorsements shall be considered non-existent. Where a blank endorsement is followed by another endorsement, it shall be deemed that the signatory has acquired the bill of exchange by the blank endorsement.(2) Where a person has been deprived of possession of the bill of exchange in any way, the bearer, who shall ascertain his right pursuant to para 1, shall not be obliged to deliver it, unless where it was acquired in bad faith or by gross negligence.Endorsement by authorizationArticle 472(1) In the case of endorsement with provision "to be received", "for collection", "by authorization" or another phrase to the meaning of authorization, the bearer may exercise all the rights on the bill of exchange, but he may transfer it only with endorsement by authorization. In such case the persons liable may use against the bearer only the objections they could counterpose against the endorser.(2) The authorization contained in an endorsement by authorization shall not be terminated upon the death or the legal disability of the authorizing person.Endorsement for securityArticle 473(1) In the case of endorsement with provision "for guarantee", "for pledge" or another phrase with the meaning of security, the bearer may exercise all the rights on the bill of exchange, but he may transfer it only with endorsement by authorization.(2) Debtors may not put against the bearer objections based on their personal relationship with the endorser, unless the bearer has acted in bad faith in acquiring the bill of exchange.Endorsement after maturity or protestArticle 474(1) An endorsement made after maturity shall have the same effect as an endorsement made before that. An endorsement made after the protest, due to default of payment or after expiration of the term for protest, shall have the effect of the transfer of a receivable.(2) It shall be assumed, until proven to the contrary, that an endorsement without a date has been made before expiration of the term for protest.Section IIIAcceptancePresentation for acceptanceArticle 475A bill of exchange may be presented to the drawee for acceptance at his place of residence by the bearer or the holder before maturity.Instruction or prohibition for presentationArticle 476(1) The drawer may prescribe in the bill of exchange that it should be presented for acceptance, and also to specify a term for that. He may prescribe that the bill of exchange should not be presented for acceptance before a specified term.(2) The drawer may prohibit in the bill of exchange its presentation for acceptance, unless it is payable by a third party or at a place other than the place of residence of the drawee, or if it is payable within a specified term after the presentation.(3) Each endorser may prescribe that the bill of exchange be presented for acceptance, as well as to specify a term therefore, unless the drawer has prohibited presentation for acceptance.Deadline for ClaimsArticle 477(1) A bill of exchange payable within a certain period after presentation must be presented for acceptance within one year of its issue. The drawer may reduce or extend that term.(2) The terms under para 1 may be reduced by the endorsers.Secondary presentationArticle 478(1) Upon presentation, the drawee may request that the bill of exchange be presented to him again on the next day. The interested parties may not object that such a request has not been satisfied, unless it has been indicated in the protest.(2) The bearer shall not be obliged to deliver to the drawee the bill of exchange which was presented for acceptance.Form of acceptanceArticle 479(1) The acceptance shall be written on the bill of exchange with the word "accepted", or with another word of equivalent meaning, and shall be signed by the drawee. The signature of the drawee on the face of the bill of exchange shall be considered acceptance.(2) Where the bill of exchange is payable within a certain term following the presentation, or if it should be presented for acceptance within a specified term by virtue of a special provision, the acceptance must indicate the date on which this was done, unless the bearer requires the date of presentation to be indicated. If there is no date indicated, in order to preserve his recourse actions against the endorsers and the drawer, the bearer must ascertain the lack of date by protest.Unconditional acceptanceArticle 480(1) Acceptance may not be effected under condition.(2) The drawee may limit the acceptance to part of the sum.(3) Any other modification of the contents of the bill of exchange upon its acceptance shall be considered rejection of acceptance, but the drawee shall be liable in compliance with the conditions of his acceptance.Effect of acceptanceArticle 481(1) Upon acceptance the drawee undertakes to pay the bill on maturity.(2) In case of default of payment the bearer, even where he is the drawer, shall have an action against the drawee pursuant to Articles 505 and 506.Repeal of acceptanceArticle 482(1) If the drawee who has accepted the bill of exchange has crossed out the acceptance before return of the bill, the acceptance shall be considered repealed. It shall be assumed, until proven to the contrary, that the crossing out has been effected before the return of the bill of exchange.(2) Where the drawee has notified in writing the bearer or some of the persons who have signed the bill of exchange of the acceptance, he shall be liable before them in accordance with the conditions of acceptance.Section IVBill of exchange guaranteeDefinitionArticle 483The payment of a bill of exchange may be secured entirely or in part through a guarantee. The guarantee may be given by a third party or by a person whose signature has already been put on the bill of exchange.FormArticle 484(1) The guarantee shall be put on the bill of exchange or on the allonge. It shall be expressed by the words "as guarantee" or another phrase of equivalent meaning, and must be signed by the guarantor.(2) The signature on the face of the bill of exchange shall be considered a guarantee, unless it is the signature of the drawee or the drawer.(3) Where the guarantor has not indicated for whom he guarantees, it shall be considered that the guarantee is for the drawer.Liability of the guarantorArticle 485(1) The guarantor shall be liable in the same way as the person for whom he has guaranteed.(2) The obligation of the guarantor shall be valid also where the obligation for which it has been undertaken is not valid for any reason whatsoever, except for defect in the form.(3) The guarantor who has paid the bill of exchange shall assume the rights under it against the person for whom he has provided the guarantee, and against all persons liable to that person under the bill of exchange.Section VMaturityManner of determinationArticle 486(1) The maturity of a bill of exchange may be:1. upon presentation;2. after a certain term after the presentation;3. after a certain term after the issue;4. on a certain date.(2) A bill of exchange issued with maturity specified in some other way or by subsequent maturity, shall be null and void.Sight bill of exchangeArticle 487(1) A sight bill of exchange shall be payable upon presentation. It must be presented for payment within one year following its issue. The drawer may specify a shorter or a longer term. The endorsers may reduce the terms for presentation.(2) If the drawer notes down that the sight bill of exchange should not be presented for payment before a specified date, the term for presentation shall commence as from that date.Usance bill of exchangeArticle 488(1) Maturity of a usance bill of exchange shall be determined as from the date of acceptance or as from the date of protest.(2) Where no protest exists, it shall be considered that the acceptance without indication of date has been made by the drawee on the last date of the term for presentation for acceptance.Interpretation of termsArticle 489(1) Maturity of a bill of exchange payable one or several months after its issue or presentation, shall be on the respective day of the month for effect of the payment. If there is no such day of that month, maturity shall fall on the last day of the month.(2) Where maturity has been set in the beginning, in the middle or at the end of the month, these phrases shall be understood to mean the first, the fifteenth or the last day of the month.(3) The phrase "half month" shall be understood to mean a term of fifteen days.Applicable calendarArticle 490(1) Where the bill of exchange is payable on a specific date at a place where the calendar is different from that at the place of issue, maturity shall be determined in accordance with the calendar at the place of payment.(2) Where a bill of exchange, issued and payable at places with different calendars, is payable within a set term after the issue, the date of issue and maturity shall be determined by the calendar at the place of payment.(3) The terms for presentation of the bill of exchange shall be calculated pursuant to the rules of paras 1 and 2.(4) Paras 1, 2 and 3 shall not apply if something else follows from a provision in the bill of exchange or from its contents.Section VIPaymentTerm for presentation for paymentArticle 491A bill of exchange payable on a certain day or within a specified term after its issue or presentation, must be presented for payment on maturity or on one the next two working days.Indication of paymentArticle 492(1) Upon payment the drawee may request the bearer to surrender to him the bill of exchange and to indicate thereon that it has been paid.(2) The bearer may not reject partial payment.(3) In the case of partial payment the drawee may request the payment to be indicated on the bill of exchange and receipt to that effect to be issued to him.Payment before and on maturity dateArticle 493(1) The bearer shall not be obliged to accept payment of the bill of exchange before maturity date.(2) A drawee who pays before maturity date shall pay on his own risk.(3) A person who pays on maturity date shall be relieved from his obligation, unless he has acted with gross negligence. He shall be obliged to verify the correct order of endorsements, but not the signatures of the endorsers.Currency of paymentArticle 494(1) Where the sum of the bill of exchange has been quoted in currency which has no exchange rate at the place of payment, the amount may be paid in local currency according to its value as on maturity. Where the debtor is in delay, the bearer may by his own choice request the sum under the bill of exchange to be paid in local currency at the exchange rate on maturity or as of the date of payment.(2) The exchange rate of the foreign currency shall be determined in accordance with commercial custom at the place of payment. However, the drawer may set in the bill of exchange the rate at which the amount should be calculated.(3) Paras 1 and 2 shall not apply if the drawer has stipulated that payment should be effected in a specified currency.(4) Where a bill of exchange is payable in a currency which has the same name but different values in the country of issue and the country of payment, the bill of exchange shall be assumed to be paid in the currency of the country of payment.Deposit of the amountArticle 495Where the bill of exchange is not presented for payment within the term under Article 491, the debtor may deposit the amount with a bank, at the risk and the expenses of the bearer.Section VIIProtestTypes of protestArticle 496A refusal of acceptance or payment must be ascertained by protest due to default on acceptance or default on payment.Protest to default on acceptanceArticle 497(1) A protest due to default on acceptance must be made within the terms specified for presentation for acceptance. If in the case stipulated under Article 478, para 1, the first presentation has been effected on the last date of the term, the protest may be effected on the next date.(2) The protest on default of acceptance shall relieve the bearer from presentation of the bill of exchange for payment, and also from protest due to default on payment.Protest to default on paymentArticle 498A protest to default on payment of a bill of exchange payable on a certain date or within a certain term after the issue or after the presentation, must be made on one of the two business days after the date specified for payment. If the bill of exchange is payable upon presentation, the protest must be made within the terms under Article 497, para (1).Notification for default on acceptance or default on paymentArticle 499(1) The bearer should notify his immediate endorser and the drawer for the default on acceptance and the default on payment within four business days following the date of protest, and in the case of provision "sans frais" - after the date of presentation. Each endorser shall be obliged within two business days following the date of receipt of notification to notify his immediate endorser thereof, indicating the names and addresses of those who have made the preceding notifications, up to the drawer. Time periods shall run from the date of receipt of the preceding notification.(2) Where pursuant to para 1 notification was made to a person who signed the bill of exchange, it must be made within the same term also to his guarantor.(3) Where an endorser has not indicated his address or has done so illegibly, the notification must be made to the endorser preceding him.(4) A notification may also be effected by return of the bill of exchange. The person obliged to make notification must prove that he has done so within the specified term.(5) A person who fails to make the notification within the time periods specified in paras 1 - 4, shall be liable for damages to the amount of the sum under the bill of exchange.Relief from protestArticle 500(1) The drawer, as well as any endorser or guarantor through a provision "sans frais", "sans protest" or a phrase of equivalent meaning signed on the bill of exchange, may relieve the bearer from making a protest to default on acceptance or default on payment, in order to lodge his recourse actions.(2) The provision of para 1 shall not relieve the bearer from the obligation to present the bill of exchange in due time and to make the relevant notifications. The burden of proof that the above time periods have not been observed shall be on the person referring to such a circumstance.(3) The provision stipulated by the drawer shall have effect in respect of all persons who have signed the bill of exchange. A provision written by an endorser or a guarantor shall have effect only in respect of himself. Where despite the provision written by the drawer the bearer lodges a protest, the expenses shall be on his account, and where the provision has been written by an endorser or a guarantor, all persons who have signed shall be liable for the expenses.Making a protestArticle 501A protest shall be made upon a request in writing from the bearer by the notary public at the place of payment or acceptance.Contents of the protestArticle 502(1) A protest shall contain:1. a full transcript of the document with all endorsements and notes;2. the names of the persons in favour of whom and against whom the protest is being made;3. the inquiry to the person against whom the protest is made, the response given or a note that the person has not responded or could not be found;4. in the case of acceptance or payment through an intermediary - indication of by whom, for whom and how it has been given;5. place and date of the protest;6. signature and stamp of the notary public.(2) The making of the protest shall be indicated on the document.Protest against several personsArticle 503Where acceptance or payment of a bill of exchange, a promissory note or a cheque are to be requested from several persons, one protest against all persons may be made.Entry of protestArticle 504(1) The notary public must enter in the register the contents of the protest thus made and issue transcripts to the interested parties.(2) The original of the protest shall be delivered to the bearer.Section VIIIRecourse actionsGroundsArticle 505(1) Where a bill of exchange has not been paid on maturity, the bearer may bring recourse actions against the endorsers, the drawer and the other liable persons.(2) additionally recourse actions may be brought before maturity, provided:1. the drawee rejects acceptance of the bill of exchange, entirely or in part;2. bankruptcy proceedings have been instigated against the drawee, notwithstanding whether he has accepted the bill of exchange or not;3. the drawee has discontinued his payments or the compulsory execution on his property has provided no result;4. bankruptcy proceedings have been instigated against the drawer of the bill of exchange whose acceptance was refused.Subject of the recourse actionArticle 506(1) The bearer shall be entitled to claim from the persons against whom he has brought the recourse action:1. the sum under the bill of exchange which has not been accepted or has not been paid, together with interest if so agreed;2. interest due by operation of law as from maturity date;3. expenses related to the protest, the notifications made and other expenses;4. commission which, unless otherwise agreed, shall amount to one third of one percent of the sum under the bill of exchange, and which may not exceed that amount.(2) Where the recourse action has been brought before maturity, the interest from the date of bringing the recourse action to maturity to the amount of the official discount rate of the central bank at the place of residence of the bearer shall be deducted from the sum of the bill of exchange.Action of the debtor who has paidArticle 507A person who has paid the bill of exchange may claim from the persons obliged before him:1. the amount he has paid;2. interest due by operation of law on the amount paid as from the date of payment;3. the costs incurred;4. commission pursuant to Article 506, para 1, Item 4.Delivery of the bill of exchange against paymentArticle 508(1) Each of the persons liable under the bill of exchange, against whom a recourse action has been brought or may be brought, shall be entitled to request that upon payment the bill of exchange be delivered to him together with the protest, and that a receipt be issued.(2) Each endorser who has paid the bill of exchange may cross out his endorsement and the endorsements of the subsequent endorsers.Recourse action after partial acceptanceArticle 509If a recourse action has been brought after partial acceptance, the person who has paid the amount for which the bill of exchange has not been accepted, may request the payment made to be noted on the bill and a receipt to be issued to him. The bearer must also deliver to him a certified transcript of the bill of exchange and the protest, so that the person who has paid may bring subsequent recourse actions.Recourse action upon discontinuance of paymentsArticle 510If a drawee has discontinued his payments, notwithstanding whether he has accepted the bill of exchange, as well as if a compulsory execution against him proves without result, the bearer shall be entitled to bring a recourse action after presentation of the bill of exchange for payment to the drawer and after making a protest.Recourse action in the case of bankruptcyArticle 511(1) If bankruptcy proceedings have been instigated against the drawee, notwithstanding whether he has accepted the bill of exchange, as well as in cases of instigated bankruptcy proceedings against the drawer of a bill of exchange which is not subject to acceptance, the decision for instigating bankruptcy proceedings shall be sufficient grounds for the bearer to bring his recourse action.(2) If bankruptcy proceedings have been instigated against a drawee, notwithstanding whether he has accepted the bill of exchange, or against the drawer of the bill of exchange whose acceptance has been refused, a court decision shall be required additionally.Recourse bill of exchangeArticle 512(1) Whoever is entitled to a recourse action may exercise it by issuing against some of the persons liable before him a new bill of exchange (recourse bill of exchange), which shall be a sight bill of exchange and shall be payable at the place of residence of that person, unless otherwise agreed.(2) The recourse bill of exchange shall cover further to the amounts under Articles 506 and 507 also other expenses.(3) Where the recourse bill of exchange has been issued to bearer, the amount shall be determined according to the rate of the sight bill of exchange issued at the place of payment of the initial bill of exchange, and payable at the place of residence of the preceding endorser.(4) If the recourse bill of exchange has been issued by an endorser, its sum shall be determined according to the rate of the sight bill of exchange, issued at the place of residence of the drawer of the recourse bill of exchange, and payable at the place of residence of the preceding endorser.Joint and several liabilityArticle 513(1) The persons who have issued, accepted and endorsed the bill of exchange, or who have provided a guarantee, shall be liable jointly and severally before the bearer.(2) The bearer may bring his actions against all persons liable under the bill of exchange, jointly or severally, without taking in consideration the order in which they have become liable. Entitled to the same right shall be any liable person who has paid the bill of exchange, in respect of persons who have become liable before him.(3) The bearer who has brought an action against one of the debtors under the bill of exchange, shall not forfeit his rights against the other debtors, including those who have signed after the one against whom he has brought the action.Omission of termsArticle 514(1) The bearer shall forfeit his rights against the endorsers, the drawer and the other liable persons, with the exception of the drawee, if he misses the terms:1. for presentation of the sight bill of exchange or the usance bill of exchange;2. for making a protest due to default on acceptance or on payment;3. for presentation for payment under a "sans frais" provision.(2) If the bearer misses the term specified by the drawer for presentation of the bill of exchange for acceptance, he shall forfeit his right to recourse for default on acceptance and on payment, unless it ensues from the contents of the bill of exchange that the drawer wanted to exclude only the liability for acceptance.(3) Where the provision with a term for presentation is included in an endorsement, only the endorser may refer to it.Force majeureArticle 515(1) Where the presentation of the bill of exchange or the lodging of a protest within the specified time periods are prevented by force majeure, the time periods shall be extended, respectively.(2) The bearer shall be obliged to notify forthwith his immediate endorser of the force majeure, and to note that notification on the bill of exchange or the allonge, indicating the place, date and signing there under, as well as to meet his obligations pursuant to Article 499.(3) After termination of the force majeure, the bearer must immediately present the bill of exchange for acceptance or payment, and lodge a protest, if necessary.(4) If the force majeure continues for more than thirty days after maturity, a recourse action may be brought without need for presentation or protest.(5) For a sight bill of exchange or a usance bill of exchange, the thirty day period shall commence from the date on which the bearer has informed his immediate endorser. This notification may be effected before expiration of the period for presentation. In the case of a usance bill of exchange, the thirty day time period shall be extended by the time period specified in the bill of exchange after presentation.(6) Circumstances relevant to the person of the bearer, or to the person to whom he has assigned the presentation of the bill of exchange or the effecting of the protest, shall not be deemed force majeure.Section IXBrokerageBrokerArticle 516(1) The drawer, the endorser or the guarantor may appoint one person - a broker - who where necessary may accept the bill of exchange or pay.(2) A broker may be any third party and any person liable under the bill of exchange, except the drawee who has already accepted it.(3) The broker shall be obliged to notify within two business days the person for whom he has been operating. If the broker fails to meet this term he shall be held liable for damages to the amount of the sum of the bill of exchange.(4) In the cases under paras 2 and 3 the bill of exchange may be accepted or paid for honour by a broker acting for some of the debtors under the bill of exchange against whom a recourse action could be brought.AcceptanceArticle 517(1) Acceptance through a broker shall be allowed in all cases where before maturity the bearer may bring his recourse action, except where the presentation of the bill of exchange for acceptance has been prohibited.(2) Where a person has been indicated in the bill of exchange for the purpose of acceptance or payment in case of necessity, the bearer may bring his recourse action before maturity against the person who has added the address, as well as against the persons who have signed after him, only if he has presented the bill of exchange to the person indicated at that address, and has ascertained the rejection by that person by means of a protest.(3) Except for the cases under para 2 the bearer may refuse acceptance through a broker. If he accepts the brokerage, he shall forfeit the recourse he had before maturity against the person for whom acceptance has been effected, and against those who have signed after him.FormArticle 518The acceptance through a broker shall be noted on the bill of exchange and shall be signed by the broker. If the broker does not indicate for whom the acceptance was made, it shall be assumed to be for the drawer.Liability of the brokerArticle 519(1) A broker who has accepted the bill of exchange shall be liable in respect of the bearer and the persons who have signed after the person for whom the brokerage has been effected, in the same way as him.(2) Notwithstanding the acceptance through a broker, the person for whom it has been effected, and the persons liable before him, may request from the bearer, against payment of the amount under Article 506, delivery of the bill of exchange, the protest and the receipt.PaymentArticle 520(1) Payment through broker shall be allowed where the bearer may lodge his recourse on maturity date or before maturity.(2) The payment should be for the whole sum owed by the person for whom the brokerage has been effected, and should be done not later than on the date after expiration of the term for protest due to default on payment.Presentation and protestArticle 521(1) If the bill of exchange has been accepted for honour by a person with a place of residence at the place of payment, or if a person with a place of residence at the same place has been specified for payment in case of necessity, the bearer should present the bill of exchange to those persons not later than on the date following the date of expiration of the term for protest due to default on payment, and if necessary - to make such protest.(2) If the protest has not been made in due time, the person who has specified the address for payment in case of necessity, or for whom the bill of exchange has been accepted for honour, as well as those who have signed after him, shall be relieved of their obligation.Consequences from refusal of the bearerArticle 522A bearer who refuses to accept payment through a broker shall forfeit his recourse action against those who would be relieved from their obligation due to the brokerage.Ascertainment of paymentArticle 523(1) Payment through a broker shall be ascertained by a receipt on the bill of exchange, indicating for whom it has been paid, and if there is no such indication it shall be assumed that payment has been effected for the drawer.(2) The bill of exchange and the protest shall be delivered to the broker who has paid.Rights of the brokerArticle 524(1) The broker who has paid shall acquire the rights under the bill of exchange against the person for whom he has paid, and against the persons liable to him under the bill of exchange. He may not endorse the bill of exchange.(2) The persons who have signed the bill of exchange after the person for whom it has been paid, shall be relieved of their obligation.(3) Where several persons have offered payment through a broker, priority should be given to the broker whose payment would relieve the highest number of debtors under the bill of exchange. The person who has paid contrary to the preceding sentence, being of knowledge of the circumstances, shall forfeit his recourse action against the persons who would have been relieved.Section XSet of copies and transcriptsIssue of equivalent copiesArticle 525(1) The bill of exchange may be issued in several equivalent copies. They should be numbered in the text, and where this has not been done each copy shall be considered a separate bill of exchange.(2) Where it has not been stated in the bill of exchange that it has been issued in one copy, each bearer may request the issue of more copies on his own account, up to the drawer. The endorsers must reproduce their endorsements on the new copies.Payment under one of the copiesArticle 526(1) The payment under one of the copies shall relieve all liable persons even without special provision therefore. However, the drawee shall be liable under all accepted copies which have not been returned to him.(2) An endorser who has transferred the copies to different persons, as well as the subsequent endorsers, shall be liable under all copies signed by them, if they have not been returned to them.Forwarding of a copy for acceptanceArticle 527(1) A person who has forwarded one of the copies for acceptance must indicate in the remaining copies the name of the person who holds the forwarded copy. This person shall be obliged to deliver it to the bearer of another copy who has established himself as such.(2) Should delivery be rejected, the bearer may bring his recourse action, ascertaining by protest that:1. the copy forwarded for acceptance has not been delivered to him upon request;2. the acceptance or payment could not have been effected on the basis of another copy.TranscriptsArticle 528(1) All bearers of a bill of exchange shall be entitled to make transcripts.(2) A transcript should reproduce exactly the original with the endorsements and all other notes thereon, and to indicate the end of the transcript.(3) A guarantee may be given on a transcript and it may be endorsed. A transcript shall have effect against persons who have put their signatures on the bill of exchange before the transcript, only if presented together with the original.Original and transcriptsArticle 529(1) A transcript shall indicate the holder of the original, who shall be obliged to deliver it to the bearer of the transcript who has established himself as such.(2) Should the holder refuse to deliver the original, the bearer may exercise his recourse rights against the endorsers and the guarantors under the transcript, after ascertaining by protest that the original has not been delivered to him.(3) If the original contains the provision "valid hereafter shall be only endorsements on the transcript" after the last endorsement before making of the transcript, or a phrase of equivalent meaning, any endorsement written thereafter on the original shall be invalid.Section XIAmendmentsEffect of amendmentsArticle 530In case of amendments to the text of the bill of exchange, the persons who have signed after the amendments shall be liable under the provisions of the text amended, and those who have signed before the amendments shall be liable pursuant to the initial text.Section XIILimitationLimitation periodsArticle 531(1) Actions against the drawee under the bill of exchange shall expire by limitation after three years following maturity.(2) Actions of the bearer against the endorsers and against the drawer shall expire by limitation after one year from the date of the duly made protest or from maturity, provided the bill of exchange contains the provision "sans frais".(3) Actions of the endorsers Among themselves and against the drawer shall expire by limitation after six months from the date on which the endorser has paid the bill of exchange, or from the date on which an action was brought against him.Interruption of limitationArticle 532The limitation shall be interrupted only with respect of the person against whom an act has been carried out.Prohibition for extension of time periodsArticle 533The time periods established under this Act for obligations under bills of exchange may not be extended.Section XIIIUnmerited gainAction on grounds of unmerited gainArticle 534(1) Where the bearer of a bill of exchange, a promissory note or a cheque forfeits the right to an action under them due to expiration by limitation or non-performance of the necessary acts for retaining the rights there under, he may claim from the drawer or the drawee the sum which they have gained to his detriment.(2) The action under para 1 shall expire by limitation after three years. This term shall commence from the date of forfeiture of the actions under the bill of exchange, the promissory note or the cheque.CHAPTER THIRTY-ONEPROMISSORY NOTEContentsArticle 535A promissory note shall contain:1. the title "promissory note" in the text of the document in the language in which the document has been written;2. unconditional promise for payment of a certain sum of money;3. maturity;4. place of payment;5. name of the person to whom or to whose order the sum must be paid;6. date and place of issue;7. signature of the drawer.Incomplete contentsArticle 536(1) A document which does not contain some of the requisites listed under Article 535, shall not be promissory note, except for the cases specified under paras 2, 3 and 4.(2) A promissory note in which no maturity date has been indicated shall be considered payable upon presentation.(3) The place of issue shall be assumed to be the place of payment and place of residence of the drawer, unless otherwise agreed.(4) A promissory note in which no place of issue has been indicated, shall be assumed issued at the place indicated next to the name of the drawer.Reference to the provisions on the bill of exchangeArticle 537The provisions on the bill of exchange shall apply mutatis mutandis, inasmuch as compatible to its nature, to the promissory note.Obligations of the drawerArticle 538(1) The drawer of a promissory note shall be liable in the same way as the drawee of the bill of exchange.(2) A promissory note payable within a certain time period following the presentation, must be presented to the drawer pursuant to the terms under Article 477. The drawer shall certify on the document its presentation, write the date and put his signature. The time period after the presentation shall commence from the date certified by the drawer on the note. The refusal of the drawer to certify the presentation or to write the date shall be ascertained by protest pursuant to Article 496, the date of which shall be considered the beginning of the time period after presentation.CHAPTER THIRTY-TWOCHEQUESection IIssue and formContentsArticle 539A cheque shall contain:1. the title "cheque" in the text of the document in the language in which the document has been written;2. unconditional order for payment of a certain sum of money;3. name of the person, who should pay (drawee);4. date and place of issue;5. place of payment;6. signature of the drawer.Incomplete contentsArticle 540(1) A document which does not contain some of the requisites indicated under Article 539, shall not be a cheque, except in the cases, specified in paras 2, 3 and 4.(2) A cheque in which no place of payment has been indicated, shall be considered payable at the place indicated next to the name of the drawee. Where there are several places indicated, the cheque shall be payable only at the first place indicated.(3) If no other place has been indicated, a cheque shall be paid at the place of domicile of the drawee.(4) A cheque in which the place of issue has not been indicated, shall be considered issued at the place indicated next to the name of the drawer.IssueArticle 541(1) A cheque payable in the Republic of Bulgaria may be issued only against a bank.(2) The drawer of the cheque must have coverage with the drawee.(3) The drawee shall be obliged to pay the cheque to the amount of coverage, if he has explicit or tacit agreement with the drawer.(4) A cheque shall be valid even where the provisions of paras 2 and 3 have not been complied to.Invalidity of acceptanceArticle 542A cheque shall not be subject to acceptance. A note of acceptance on the cheque shall be invalid.Types of chequesArticle 543(1) A cheque may be issued:1. to a certain person with or without explicit provision "to order";2. to a certain person with provision "not to order" or another equivalent provision;3. to bearer.(2) A cheque in favour of a certain person with provision "or to bearer" or another phrase of equivalent meaning, shall have the same effect as a cheque to bearer.(3) A cheque in which the name of the person in whose favour it has been issued is not indicated, shall be deemed a cheque to bearer.Cheque to the order of the drawer or against the drawerArticle 544(1) A cheque may be issued to the drawer or to his order.(2) A cheque may not be drawn on the drawer, except where issued between different branches of a merchant.Inapplicability of interestArticle 545A provision for interest included in a cheque shall be invalid.Cheque payable with a third partyArticle 546A cheque may be payable with a third party at the domicile of the drawee or at another place only if the third party is a bank.Liability of the drawerArticle 547The drawer shall be liable for payment of the cheque. Any provision relieving him from liability shall be invalid.Section IIEndorsementRequirements to the endorsementArticle 548The provisions on endorsement of bills of exchange shall apply to the cheque, with the following exceptions:1. the endorsement of the drawee shall be invalid;2. the endorsement in favour of the drawee shall only have the effect of a receipt, except where the endorsement has been made between different branches of a merchant.Endorsement on a cheque to bearerArticle 549The endorsement on a cheque to bearer shall make the endorser liable pursuant to the rules for recourse. Such an endorsement shall not transform the cheque into a cheque to order.Prohibition for guarantee by the draweeArticle 550The drawee may not be guarantor on a cheque.Section IIIPaymentPayment on demandArticle 551(1) A cheque shall be payable always on demand. Any provision to the contrary shall be invalid.(2) A cheque presented for payment before the date indicated as date of issue, shall be payable on the date of presentation.Deadline for ClaimsArticle 552A cheque must be presented for payment within eight days following the date of its issue.WithdrawalArticle 553(1) A cheque may be withdrawn by the drawer after expiration of the term for presentation.(2) Where a cheque has not been withdrawn, the drawee may pay it after the expiration of the term for presentation as well.Death or legal disability of the drawerArticle 554The death or legal disability of the drawer occurring after the issue, shall not affect the effect of the cheque.Section IVCrossed cheque and cheque directed to accountCrossed chequeArticle 555(1) The drawer and the bearer of a cheque may cross it with the effect described in Article 556.(2) The crossing shall be done with two parallel lines on the face.(3) The crossing may be general or special. The crossing shall be general where it does not contain any provision between the two lines, or contains the provision "bank" or another phrase of equivalent meaning. The crossing shall be special if the name of a bank is written between the two lines.(4) A general crossing may be transformed into special, but a special crossing may not be transformed into general.Effect of a crossed chequeArticle 556(1) A cheque with general crossing may be paid only to a bank or to a customer of the drawee.(2) A cheque with special crossing may be paid only to the bank indicated or should that bank be the drawee to its customer. The bank indicated may assign the receiving of the sum under the cheque to another bank.(3) A cheque may have only one special crossing. Two special crossing are allowed only where one of them is for payment through a clearing house. A cheque which is not in compliance with this provision, may not be paid.(4) A drawee who violates the requirements of paras 1, 2 and 3 shall be liable for damages to the amount of the sum under the cheque.Cheque directed to an accountArticle 557(1) The drawer and the bearer of a cheque may prohibit its payment in cash by writing on the face of the cheque the provision "account payee" or another phrase of equivalent meaning.(2) In the case under para (1) the payment can be effected only to an account. In the case where the account has been indicated as well, the drawee may transfer the sum only to the indicated account. The indication of the account may be done by the drawer and by any holder of the cheque who has established his identity as such.(3) The crossing out of the provision "account payee" shall be null and void.(4) A drawee who has paid in violation of paras 1, 2 and 3 shall be liable for damages to the amount of the sum under the cheque.Section VRecourse due to default on paymentGroundsArticle 558The bearer may bring his recourse actions against the endorsers, the drawer and the other liable persons, where the refusal to pay has been ascertained by:1. protest;2. declaration of the drawee written on the cheque with indication of the date of presentation;3. dated declaration of the clearing house that the cheque has been presented in due time and has not been paid.Term for protestArticle 559(1) The protest must be made before expiration of the term for presentation.(2) If presentation is made on the last date of the term, the protest must be done on the next business day.Section VISet of copiesIssue of equivalent copiesArticle 560In addition to the cheques to bearer, each cheque issued in one country and payable in another may be issued in several equivalent copies. Where a cheque has been issued in several copies, they should be numbered in the text itself, and where this has not been done each copy shall be considered a separate cheque.Section VIILimitationLimitation periodsArticle 561(1) Recourse actions of the bearer against the endorsers, the drawer and the guarantors on the cheque shall expire by limitation after six months from the date of presentation or from the date of expiration of the term for presentation.(2) Recourse actions of the endorser against all persons liable before him shall expire by limitation after six months from the date on which he has paid the cheque, or from the date where a claim has been lodged against him.Section VIIISpecial provisionReferenceArticle 562The provisions on the bill of exchange shall apply, inasmuch as compatible to its nature, to the cheque.CHAPTER THIRTY-THREEAPPLICABLE LAW ON BILL OF EXCHANGE, PROMISSORY NOTE AND CHEQUECapacityArticle 563(1) The capacity of a person to undertake obligations under a bill of exchange, a promissory note or a cheque, shall be determined by its national law. Where this law declares the law of another country to be applicable law, the law of that country shall apply.(2) A person who does not possess the capacity referred to in para 1, shall be considered liable if his signature has been put in a country the law of which recognizes him as capable person.Form and contentsArticle 564(1) The form and contents of a bill of exchange, a promissory note and a cheque shall be determined pursuant to the law of the place of their signature. For a cheque the observance of the form and contents pursuant to the law of the place of payment shall be sufficient.(2) Where a bill of exchange, a promissory note or a cheque are not valid, but are in compliance with the law of the country where a subsequent obligation has been undertaken, they shall be valid.ObligationArticle 565(1) The obligation of the drawee under a bill of exchange and of the drawer of a promissory note shall be determined by the law of the place of payment.(2) The obligation of the other persons who have signed shall be determined by the law of the place where the signatures have been put.Time periods for bringing recourse actionsArticle 566The time periods for recourse for persons who have signed shall be determined by the law of the place of issue of the document.Acquisition of receivable by the bearerArticle 567The law of the place of issue of a bill of exchange or a promissory note shall determine whether the bearer acquires the receivable in view of which they have been issued.Partial acceptanceArticle 568The right of the drawee to effect partial acceptance of a bill of exchange or a promissory note and the obligation of the bearer to accept partial payment shall be determined by the law of the place of payment.ProtestArticle 569The form and terms for protest, as well as of other acts necessary for the exercise or retaining of rights under a bill of exchange, a promissory note and a cheque, shall be determined by the law of the place where the respective acts must be undertaken.Loss and theftArticle 570The acts that must be undertaken in the case of loss or theft of a bill of exchange, a promissory note or a cheque, shall be determined by the law of the place of payment.Payer of a chequeArticle 571Persons on whom a cheque may be drawn shall be determined by the law of the place of payment. Where pursuant to that law a cheque is not valid in view of the capacity of the person on whom it has been drawn, the obligations ensuing from signatures put in other countries, the laws of which contain such provisions, shall be valid.Application of the law of the place of paymentArticle 572Determined pursuant to the law of the place of payment of a cheque shall be:1. whether it should be issued to presentation, or it could also be within a certain term after presentation, as well as what shall be the consequences of presentation on a later date;2. time limit for presentation;3. the possibility a cheque to be accepted, confirmed or advised, as well as the effect of such notes;4. the possibility a cheque to be crossed or with provision "account payee" or another phrase of equivalent meaning, and the consequences thereof;5. the right of the drawer to cancel a cheque or to object to its payment.CHAPTER THIRTY-FOURDEPOSIT IN PUBLIC WAREHOUSEDefinitionArticle 573Under a contract for deposit in a public warehouse the depositary accepts goods, in return for consideration, with an obligation to keep and return them to the depositor or the person authorized to receive them.FormArticle 574(1) A contract for deposit in a public warehouse shall be concluded in writing and shall be entered in warehouse register.(2) The depositary shall keep a warehouse register where he shall enter the contract. An entry shall be made pursuant to a procedure specified in Regulation to be approved by the Minister of Justice.Obligations of the depositaryArticle 575(1) A depositary shall be obliged to provide access of the depositor to the goods during the working hours of the warehouse, in order to inspect them, to take samples from them and, with the permission of the depositary, to undertake acts for the maintenance, packing, sorting, separating of the goods and other similar acts.(2) The depositary may combine fungibles deposited in the warehouse with other of the same type and quality, unless otherwise agreed.(3) Where obvious transformations have occurred in the goods, which give grounds for fears that the goods may be damaged, the depositary must immediately notify the person authorized to receive them, and where no such person is known, the depositor.(4) The depositary shall be obliged to insure the deposited goods on behalf of and on the account of the depositor for the value declared thereby, against fire, flood and earthquake, unless they have already been insured or the depositor objects to the insurance. Upon request from the depositor the depositary shall be obliged to insure the deposited goods against other risks as well.Obligations of the depositorArticle 576(1) Upon conclusion of the contract the depositor shall be obliged to provide the information required for the safekeeping of the goods.(2) The consideration shall be paid at the end of each calendar quarter or upon return of the goods, unless otherwise agreed.Warehouse warrantArticle 577(1) The depositary shall issue a warehouse warrant upon request from the depositor.(2) The warehouse warrant shall be issued on the basis of the warehouse register and shall comprise a goods note and a pledge note. The two parts of the warehouse warrant shall contain:1. indication of the public warehouse and the sequence number under the warehouse register;2. name and address of the depositor;3. type and quantity of goods and whether they may be mixed with other goods;4. time period for keeping the goods;5. statement by the depositary that he shall deliver the goods as agreed;6. acts to be undertaken by the depositary for preservation of the goods;7. information whether the goods are insured, with whom, for what sum insured, against what risks and for what premium;8. amount of remuneration due and unpaid expenses prior to the issue of the warrant;9. amount of ullage, except where the goods have been accepted by numbers;10. place and date of issue of the warrant;11. signatures of the depositor and the depositary.(3) The depositor, as well as any legitimate holder of the warehouse warrant, ascertained by a continuous sequence of the endorsements, shall be entitled to request the issuing of warehouse warrants for separate parts of the goods in return for the warehouse warrant for the total. Such warehouse warrants shall have the date of the initial warehouse warrant.(4) The depositary may refuse to issue warehouse warrant on the grounds of good reasons or if the depositor is in default on payment of due remunerations and expenses.Transfer of warehouse warrantArticle 578(1) The warehouse warrant may be transferred by dated endorsement on the back of the goods note and the pledge note.(2) The rules of Articles 466 - 470 and of Article 474 shall also apply to the warehouse warrant.(3) An endorsement on the pledge note only shall constitute a right of pledge on the goods deposited in favour of the endorsee. The first endorsement should contain the amount of the loan secured, the interest and maturity, as well as the name and address of the creditor. The pledge may be counterposed against the endorsers of the goods note and shall be entered in the warehouse register. The first endorsee shall be obliged to request those data to be entered in the goods note and in the warehouse register.(4) The transfer of only the goods note or only the pledge note shall be effected by dated endorsement on the respective part of the warehouse warrant.(5) The legitimate holder only of the goods note, ascertained by the continuous sequence of endorsements, shall be entitled to receive the deposited goods even before maturity of the loan secured by pledge of the goods. In such case he shall be obliged to pay to the depositary the amount of the loan with interest as of the date of payment, to an amount specified in the warehouse register. Where the interest has been prepaid, it shall be deducted for the period from the date of payment to maturity.Presentation of the pledge noteArticle 579The holder of the pledge note who is established through the continuous sequence of endorsements shall present it upon maturity to the debtor for payment, or where the debtor is not known, to the depositor. The note shall be presented for payment at the public warehouse. In such cases the provisions of Articles 505 and 507 shall apply.Protest, compulsory execution and indemnificationArticle 580(1) The default on payment of the amount under the note shall be ascertained by protest against the debtor under the pledge note, and where he is not known, against the depositor. In such case Articles 496 and 498 shall apply mutatis mutandis.(2) If his claim is not satisfied from the sale of the goods, the creditor under the pledge note may direct the execution against the debtor, the endorsers and the persons who have endorsed the goods note after establishment of the pledge, who shall be liable jointly and severally.(3) (Amended, SG No. 70/1998) Where the creditor under the pledge note fails to make the protest within the specified time period, or if he fails to sell the goods within twenty days from the date of protest, he shall forfeit the recourse action against the endorsers under the pledge note, but shall retain his action against the debtor and the endorsers of the goods note.(4) The endorser of the goods note who has paid under the pledge note shall be entitled to an action for the sum paid, the interest and the expenses, against the debtor and the preceding endorsers under the goods note, who shall be liable jointly and severally. The action against the endorsers shall expire by limitation after six months from the date of payment of the debt, and that against the debtor, after three years.Invalidation of destroyed or lost warehouse warrantArticle 581(1) (Amended, SG No. 59/2007) A destroyed or lost warehouse warrant shall be invalidated pursuant to Article 560 et seq. of the Code of Civil Procedure .(2) Following the institution of proceedings for invalidation, the owner of the destroyed or lost warehouse warrant may request from the depositary the issue of a duplicate copy, by providing sufficient guarantee. Where the depositary does not agree with the amount of the guarantee, it shall be determined by the court of first instance.(3) Should the destroyed or lost warrant be invalidated, the guarantee deposited pursuant to para 2 shall be returned.Return of deposited goodsArticle 582(1) The goods deposited shall be returned to the depositor, or where a warehouse warrant has been issued, to the holder of the warrant who is established through the continuous sequence of endorsements, against submission of the warrant. The return of the goods shall be effected at the warehouse where they have been deposited, and shall be noted down on the warehouse warrant. The warrant shall be signed by the person receiving.(2) Where several persons have been authorized to receive the goods and it has not been ascertained what part of the goods should be received by whom, or where the goods are indivisible, in the case of disagreement between the above the depositary shall be entitled, upon expiration of the term, to sell the goods and to deposit the amount received in a bank in their name.(3) Where fungibles have been deposited, the holder of a goods note may receive part of them by paying to the creditor or depositing to his account the respective part of the amount receivable for which the pledge note was issued, together with interest and expenses.(4) Ullage of the goods shall be deducted to the amount agreed or provided by operation of law.Right to pledgeArticle 583The depositary shall be entitled to a pledge for the goods deposited in order to secure his claims.TerminationArticle 584The depositary may request the depositor to take part of the goods after the expiration of the agreed term, or where no term has been agreed, three months following the deposit of the goods.Early terminationArticle 585(1) Where the goods deposited are threatened by damage or where they may damage other goods, as well as where there are other good reasons for termination of the contract, the depositary may terminate the contract and demand that the goods are received immediately by the last endorsee, and where he is not known - by the depositor.(2) If the goods are not received, the depositary shall be entitled to sell them under the procedure set forth under Article 328, para 1, Item 2, after written notification to the legitimate holder to receive them, or where he is not known, to the depositor, and satisfy himself from the sale price for his claim under the contract for deposit. The depositary shall deposit the difference to the account of the creditor under the pledge note.(3) If the goods are perishable, the provision of Article 328, para 1, Item 3, shall apply.LimitationArticle 586(1) An action for damages against the depositary shall expire by a one-year limitation. The limitation period shall commence from the date of return of the deposited item. Where the deposited item has not been returned, the limitation period shall commence from the date on which it should have been returned, and if the item has been destroyed - from the date of coming of knowledge thereof.(2) Where the loss, damage, destruction or delayed return of the item have been caused intentionally by the depositary, the limitation period shall be three years.CHAPTER THIRTY-FIVELICENCE CONTRACTDefinition and formArticle 587(1) (Amended and supplemented, SG No. 81/1999) Under a licence contract the owner of a right over an invention, utility model, industrial design, mark, topology of integrate circuits or know-how, who shall be termed licensor, shall grant for compensation, entirely or in part, the use thereof to the licensee.(2) The licence contract shall be made out in writing.Ceding of right to applicationArticle 588(Repealed, SG No. 81/1999)Territorial coverage of licenceArticle 589It shall be assumed, unless otherwise agreed under the licence contract, that the licence has been granted for use on the territory of the Republic of Bulgaria.Registration of the contractArticle 590The licence contract shall be entered in a register of the Patent Office. It shall be effective vis-а-vis third parties after the registration.Providing useArticle 591The licensor shall be bound to ensure to the licensee peaceful and undisturbed use of the rights granted, as well as protection against claims by third parties.Information and assistanceArticle 592The licensor shall be bound to provide the licensee with the information as agreed and to render assistance for use of the subject of the licence.Obligation for confidentialityArticle 593The licensee shall be bound to keep in secret the information about an unpatented invention, utility model or know-how, which he has been granted the right to use.License of a mark(Title amended, SG 81/1999)Article 594(1) (Amended, SG No. 81/1999) In the case of licence of a mark the licensee shall be bound to ensure the quality of goods in compliance with the trade mark which has become known to users before conclusion of the contract.(2) (Amended, SG No. 81/1999) The licensee shall be bound to put the mark on the goods for which the licence has been granted thereto.RemunerationArticle 595(1) Where the compensation has been agreed to be in accordance with the magnitude of use of the subject of a licence, the licensee shall be bound to inform the licensor about that magnitude of use within the agreed time periods.(2) Compensation shall be due for the expired calendar year, unless otherwise agreed.Contract for sub-licenceArticle 596(1) Under a contract for sub-licence the licensee of an exclusive licence may grant to another person the right to use the subject of the licence.(2) The right for granting pursuant to para 1 may be excluded by the licence contract, or a provision requiring the consent of the licensor may be stipulated. The consent may be refused only on the grounds of good reasons.Rights of the licensor in respect of a of sub-licenceArticle 597The licensor may demand from the sub-licencee the compensation which at the time of demand he owes to his licensor.Termination with advance noticeArticle 598(1) A licence contract concluded for an unlimited term may be terminated by one of the parties with advance notice.(2) Where the term for advance notice has not been specified in the contract, it shall be deemed to be six months, but the licensor may not terminate the contract before the expiration of the first year of its validity.Extension of the contract by tacit agreementArticle 599Where after the expiration of the contract term the licensee continues to use the subject of licence with the knowledge of the licensor and without objections there from, the contract shall be deemed extended to the term provided by law for its protection.CHAPTER THIRTY-SIXCONTRACT FOR COMMODITY CONTROLDefinitionArticle 600Under a contract for commodity control the controller shall undertake, for compensation and by use of special knowledge, to make unbiased comparison between the required and the actual state, or to establish only the state of a commodity or service. The controller shall issue a certificate for his findings.Obligations of the controllerArticle 601(1) The control should be effected of a magnitude and manner provided by a law or in the contract, and where nothing has been specified of the ordinary magnitude and manner at the location of the subject of control.(2) Where the contract provides for keeping a sample, the controller shall be obliged to keep it at his seat for not less than six months after receipt thereof.Invalid provisionArticle 602Invalid shall be a provision for obligations of the controller which could affect his impartiality.Obligations of the principalArticle 603(1) The principal shall be obliged to provide the controller with access to the subject of control and to render him assistance in carrying out his duties.(2) Where the amount of compensation has not been specified, the principal shall owe the ordinary compensation.LimitationArticle 604The right to an action for claims under a contract for commodity control shall expire by limitation after one year.CHAPTER THIRTY-SEVENCONTRACT FOR RENT OF SAFE DEPOSIT BOX(New, SG No. 59/2006)DefinitionArticle 605(Repealed, SG No. 19/2003, new, SG No. 59/2006)(1) By the contract of rent of safe deposit box the lessor grants to the lessee for a fixed term against a fee the use of a safe deposit box in secured premises. The safe deposit box shall be used for safeguarding of valuables and securities, other items and documents. Only the lessee shall have access to the safe deposit box.(2) The contract for rent of safe deposit box may be with declared or undeclared content of the deposited items before the lessor.(3) The lessor shall not have the right to possess a copy of the key of the safe deposit box delivered to the lessee.Forbidden itemsArticle 606(Repealed, SG No. 19/2003, new, SG No. 59/2006)(1) No items threatening the security of the safe deposit box and the lessor as well as items the acceptance of which is prohibited by law may be put in the safe deposit box.(2) The lessor shall control in appropriate manner compliance with the requirements of paragraph 1 without detecting the content of the deposited items where it is not declared.(3) On failure to fulfil the obligation under paragraph 1 the lessor may break the contract immediately.Rights of the lessor upon non-paymentArticle 606a(Repealed, SG No. 19/2003, new, SG No. 59/2006)(1) Upon breaking of a contract due to non-payment of the agreed fee, the lessor may demand opening and ascertainment of the content of the safe deposit box in the presence of a notary public. Items found in the safe shall remain with the lessor for safeguarding and compensation for the expenses and a fee shall be due to the latter.(2) For its receivables under the contract the lessor shall have the right to retain the deposited items in the safe deposit box.Special provisionArticle 606b(Repealed, SG No. 19/2003)Validity of contractArticle 606c(Repealed, SG No. 19/2003)Form of contractArticle 606d(Repealed, SG No. 19/2003)Mandatory provisions of Bulgarian lawArticle 606e(Repealed, SG No. 19/2003)Subsidiary provisionArticle 606f(Repealed, SG No. 19/2003)PART FOURBANKRUPTCY(New, SG No. 63/1994)CHAPTER THIRTY-EIGHTGENERAL(Previous Chapter 34, SG No. 83/1996)Section IGeneral ProvisionsObjective of ProceedingsArticle 607(1) Bankruptcy proceedings shall be aimed at providing fair satisfaction of creditors and opportunities for reorganisation of debtor's enterprise.(2) Bankruptcy proceedings shall take into consideration the interests of the creditors, the debtor and his employees.Grounds for Initiating Bankruptcy ProceedingsArticle 607a(New, SG, No. 70/1998)(1) Bankruptcy proceedings shall be instituted for merchants who are insolvent.(2) In addition to cases of insolvency, bankruptcy proceedings shall be instituted also in the case of an over-indebtedness of a limited liability company, a joint-stock company, or a public partnership limited by shares.InsolvencyArticle 608(Amended and supplemented, SG, No. 70/1998; amended, SGNo. 84/2000, No. 58/2003, No. 38/2006) (1) Insolvent shall be deemed a merchant which is unable to meet a money obligation due under a commercial transaction, or a public law obligation to the state or municipalities related to its commercial activity.(2) Insolvency shall be presumed where the debtor has failed to perform.(3) Insolvency may also be in evidence in cases where the debtor has paid up or is in a position to pay up, wholly or in part, only the claims of certain creditors.Concealed PartnershipArticle 609Bankruptcy proceedings shall be instituted also for persons who conceal commercial activity through insolvent debtors.Instituting Bankruptcy Proceedings for Partner with Unlimited LiabilityArticle 610(Amended, SG No. 70/1998)Concurrently with instituting bankruptcy proceedings for a commercial company, bankruptcy proceedings shall be considered instituted also for any unlimited liability partners therein.Instituting Bankruptcy Proceedings Upon Death or Deletion of SoleProprietor or for a Company in Liquidation(Title amended, SG 70/1998)Article 611(1) (Amended, SG 70/1998) Bankruptcy proceedings shall also be instituted for deceased sole proprietors or sole proprietors deleted from the Commercial Register provided prior to the death or the deletion thereof, respectively, they have been insolvent.(2) (New, SG No. 70/1998) Bankruptcy proceedings shall also be instituted for deceased partners with unlimited liability, or for unlimited liability partners deleted from the Commercial Register.(3) (Renumbered from Paragraph 2, SG No 70/1998) Bankruptcy proceedings shall also be instituted for insolvent companies in liquidation.(4) (Renumbered from Paragraph 3, SG No 70/1998) For cases such as under paras 1 and 2 the request to institute bankruptcy proceedings may be submitted within one year following the death, or the deletion from the Commercial Register, respectively.Inapplicability of BankruptcyArticle 612(1) (Previous Article 612, amended, SG No 42/1996, amended, SG Nos. 70/1998, 84/2000) No bankruptcy proceedings shall be instituted for public enterprise merchants exercising a state monopoly or established by a special law.(2) (New, SG No. 42/1996, amended and supplemented, SG No. 70/1998) The bankruptcy proceedings for banks and insurers shall be performed under terms and procedures settled by a separate act. The provisions of this section shall apply to the extent that the separate act does not provide otherwise.(3) (New, SG No. 70/1998) Relations pertaining to the insolvency of a public enterprise merchant exercising a state monopoly or established under a separate act shall be regulated by a separate act.Court of JurisdictionArticle 613(Amended, SG, No. 38/2006) The court of jurisdiction over bankruptcy shall be the district courts where the seat of the merchant was located towards the time of filing the motion of institution of bankruptcy proceedings.Appealing Regional Court Decisions and DeterminationsArticle 613a(New, SG, No. 70/1998; amended SG, No. 64 1999, No. 84/2000,No. 58/2003)(1) (Amended, SG, No. 38/2006, amended, SG No. 59/2007) Decisions ruled by regional courts and determinations pursuant to Article 630, paragraphs (1) and (2), Articles 631, 632 and 701, Article 705, paragraph (2), Article 709, paragraph (1), Articles 710, 735, 744 and Article 755, paragraph (2) shall be subject to appeal according to the standard procedure established by of the Code of Civil Procedure. (2) (Amended, SG, No. 38/2006) Decisions as per Art. 630 and art. 632 can be appealed against by third parties who have claims arising from an effective court judgment or an effective ruling establishing a public law obligation.(3) (New, SG, No. 38/2006, amended, SG No. 59/2007) Outside the cases referred to in paragraph (1), rulings of regional courts in bankruptcy proceedings shall be subject to appeal only before the competent appellate court following the rules set out in Chapter Twenty "Intermediate Appellate Review" of the Code of Civil Procedure. (4) (Renumbered from paragraph 3, SG, No. 38/2006) The court shall institute the case on the date of serving the petition or not later than the following working day and rule within 14 days from the date of the session at which hearings on the case are completed.Cassation AppealArticle 613b(New, SG No. 84/2000; Repealed, SG No. 58/2003)Bankruptcy EstateArticle 614(1) The bankruptcy estate shall comprise:1. property rights of the debtor as of the date of the ruling to institute bankruptcy proceedings;2. property rights of the debtor acquired after the date of ruling to institute bankruptcy proceedings.(2) (Amended, SG No. 70/1998, SG No. 58/2003) The property of the sole proprietor debtor shall also include one half of the rights on chattels and money deposits that are joint matrimonial property.(3) (New, SG No. 70/1998) The property of the partner with unlimited liability shall also include one half of the chattels, rights on chattels and money deposits that are joint matrimonial property.(4) (Renumbered from Paragraph 3, supplemented, SG No. 70/1998) Properties of the debtor and the unlimited liability partner not subject to forfeit shall not be included in the bankruptcy estate.Nullity of Termination of Joint Matrimonial PropertyArticle 615(Amended, SG, No. 70/1998)Termination or division of joint matrimonial property, as well as settlement for a larger share, shall be null and void in respect to the bankruptcy estate, should they have been effected within six months prior to the initial date of the insolvency, till the termination of bankruptcy proceedings.Bankruptcy CreditorsArticle 616(1) (Amended, SG, No. 38/2006) The bankruptcy estate shall be used to satisfy all creditors of the debtor for commercial and non-commercial receivables.(2) Satisfied only after the full satisfaction of the other creditors shall be clams ensuing from:1. interest determined by operation of law or by the contract on unsecured claims, due after the date of ruling to institute bankruptcy proceedings;2. (supplemented, SG, No. 38/2006) credits extended to the debtor by partners or shareholders;3. gratuitous transaction.4. (new, SG, No. 38/2006) expenses accrued by creditors in pertinence to their participation in bankruptcy proceedings, except for expenses under Art. 629b.(3) Foreign creditors shall have equal rights with domestic creditors in bankruptcy proceedings.Due ObligationsArticle 617(1) All obligations of the debtor in cash or in kind shall be considered due as from the date of ruling for declaration of bankruptcy.(2) (Amended, SG No. 84/2000) Obligations in kind shall be transformed into obligations in cash at the respective market value as of the date of ruling for institution of bankruptcy proceedings.Retention of SecuritiesArticle 618(1) In the course of bankruptcy proceedings creditors shall retain their rights on securities provided.(2) (Repealed, SG No. 70/1998).Summons and notices in bankruptcy proceedings(Heading amended, SG, No. 38/2006) Article 619(1) (Amended, SG No. 84/2000) During the bankruptcy proceedings, the debtor shall be summoned at its management address, and the creditors - party to the proceedings, at registered addresses in the country. Where they have changed address without informing thereof the court of jurisdiction over the bankruptcy, all summonses and papers shall be attached to the case file and considered duly delivered.(2) (Amended, SG, No. 38/2006) Creditors with registered address abroad and without address in Bulgaria shall supply a legal address within this country. If no such has been supplied, the summons shall be submitted for posting in the Commercial register.(3) (New, SG No. 84/2000; amended, SG, No. 38/2006) After instituting bankruptcy proceedings, in the case of acts which are not subject to promulgation in the State Gazette pursuant to this Act or announcement according to the Code of Civil Procedure and which are not subject to appeal, the creditors shall be considered informed thereof with the entering of an announcement of the respective act in the book referred to in article 634c, paragraph 1.(4) (New, SG No. 58/2003; amended, SG, No. 38/2006) In cases where this Act provides for summoning through the Commercial Register, the invitation, announcement or summons must be posted therein not later than 7 days prior to the meeting or session, as the case may be.Fees and ExpensesArticle 620(1) (Amended and supplemented, SG No. 70/1998) No preliminary state fees shall be collected upon filing the application to institute bankruptcy proceedings by the debtor. Such fees shall be collected from the bankruptcy estate prior to distribution of the assets.(2) (New, SG No. 70/1998; supplemented, SG No. 84/2000) Where the application to institute bankruptcy proceedings has been filed by a creditor and in adding a creditor, the state fee shall be collected from the creditor, respectively the added creditor.(3) (New, SG No. 70/1998) Upon the institution of bankruptcy proceedings, any expenses shall be collected from the bankruptcy estate. For this purpose, the court may allow the trustee in bankruptcy to perform a disposal under Article 658, para 1, Item 8.(4) (New, SG No. 70/1998) Unless the reorganisation plan approved by the court under Article 705 provides otherwise, with its decision under Article 707 the court shall sentence the debtor to pay the state fee due and any expenses incurred.(5) (Renumbered from Paragraph 2, SG No. 70/1998, amended, No. 84/2000) For court actions instituted to complement the bankruptcy estate and actions to repeal, state fees shall not be collected in advance.(6) (Renumbered from Paragraph 3, supplemented, SG No. 70/1998; amended, SG, No. 38/2006) No stamp duties shall be collected for entry in the Commercial Register of circumstances related to bankruptcy, as well as for entry and deletion of an attachment under Article 630, para 1, Item 4 and of a general attachment.Subsidiary ApplicationArticle 621Inasmuch as this Part contains no special provisions, the respective provisions of the Code of Civil Procedure shall apply.Special rules governing bankruptcy proceedingsArticle 621a(New, SG, No. 38/2006)(1) In addition to the rules set forth in this section, the following special procedural rules shall also apply in bankruptcy proceedings:1. The jurisdiction as defined by law for bankruptcy proceedings cannot be amended through an agreement between the participating parties;2. The court cannot, of its own accord, establish facts or gather evidence as may be of significance for its judgments or rulings.(2) In addition to the claims defined as per this section, the following shall also be subject to the jurisdiction of the bankruptcy court, without the possibility for its jurisdiction to be amended through an agreement between the participating parties:1. claims against the trustee in bankruptcy as per Art. 663, paragraphs (2) ?2. claims defined as per Art. 646 or Art. 647.(3) The provisions of the Code of Civil Procedure regarding the following shall not apply to bankruptcy proceedings:1. suspension of proceedings by mutual consent of the parties;2. withdrawal or cancellation of a creditor's motion for initiation of bankruptcy proceedings after a judgment is passed as per art. 630, paragraph (1) or (2), or Art. 632;3. withdrawal or cancellation of a claim filed by a trustee in bankruptcy or creditor in accordance with Art. 645, paragraph (3), Art. 646 or Art. 647.Section IIRecordation and announcement(Title amended, SG 38/2006) Recordation of court judgmentsArticle 622(Supplemented, SG. No. 70/1998, No. 84/2000;amended, SG, No. 38/2006) Court rulings pursuant to Article 272a, para 1, Articles 630, 632, 641, Article 705 para 2, Article 707, Article 709, para 1, Article 710, Article 713, para 2, Article 735 and Article 744, para 1, shall be recorded in the Commercial Register.Recordation of data about the trustee in bankruptcy and thesupervisory bodyArticle 623(1) (Supplemented, SG No. 70/1998, previous Article 623, amended, SG No. 58/2003; amended, SG, No. 38/2006) The name, telephone number, the address and the e-mail address of the nominated trustee in bankruptcy or the temporary trustee in bankruptcy, and, in cases under Article 707, para 1, of the appointed members of the supervisory body, shall be recorded in the Commercial Register.(2) Also subject to recordation in the Commercial Register shall be any changes in circumstances as per paragraph (1).Submission of court rulings for recordationArticle 624(Amended, SG, No. 70/1998, No. 38/2006) The court shall be obliged to submit for recordation in the Commercial Register transcripts of the court acts pursuant to Articles 622 and 623 on the day of the ruling thereof, or on the following business day at the latest.CHAPTER THIRTY-NINEINSTITUTING BANKRUPTCY PROCEEDINGS(Previous Chapter 35, SG No. 83/1996)Section IStart of ProceedingsInstituting ProceedingsArticle 625(Supplemented, SG, No. 70/1998; amended, SG, No. 84/2000; amended andsupplemented, SG, No. 38/2006) Bankruptcy proceedings shall be instituted pursuant to an application in writing submitted to the court by the debtor, respectively by the liquidator or the debtor's creditors under a commercial transaction, and by the Government Claims Agency, for a public obligation to the state or municipalities related to the commercial activity of the debtor.Obligation for DeclarationArticle 626(1) (Supplemented, SG No. 84/2000; amended, SG, No. 38/2006) Any debtor who becomes insolvent or excessively indebted shall be obliged to request within 30 days institution of bankruptcy proceedings.(2) (Supplemented, SG No. 84/2000; amended, SG, No. 38/2006) The application pursuant to para 1 shall be submitted by the debtor, his heir, the managing body, respectively liquidator, of a company or a partner with unlimited liability.(3) Procurators shall be obliged to inform merchants in writing within 7 days about the insolvency.(4) Should the application be submitted by an agent, explicit power of attorney shall be required.LiabilityArticle 627Should persons fail observe their obligation for declaration pursuant to Article 626, para 2, they shall be liable jointly and severally before creditors for damages caused by such delay.Attachments to the PetitionArticle 628(1) (Supplemented, SG No. 84/2000) Debtors, respectively liquidators, shall attach to the application:1. a transcript of the last certified by certified public accountant annual financial report and balance sheet as of the date of submission of application, provided the merchant is obliged by law to prepare such documents;2. inventory and evaluation of assets and liabilities as of the date of submission of application;3. list of creditors, indicating the addresses, types, amounts and securities for claims thereof;4. inventory of personal properties and properties that are joint matrimonial property - for sole proprietors and partners with unlimited liability.(2) Creditors shall present with their application the evidence in writing and indicate any other evidence for the debtor's insolvency.(3) (New, SG No. 103/1999, amended, SG No. 105/2005) With their applications, debtors or creditors must attach evidence under Art. 78, para 2 of the Tax and Social Insurance Procedure Code .(4) (Renumbered from Paragraph 3, SG No. 103/1999, supplemented, No. 84/2000) With their applications, debtors or creditors may also propose a plan pursuant to Article 696, or specify a person meeting the requirements under article 655, para2, which the court shall appoint as an temporary trustee in bankruptcy in the case of institution of bankruptcy proceedings.Limitation in the submission of the applicationArticle 628a(New, SG, No. 38/2006)(1) The filing by a creditor of an application (motion) for instituting bankruptcy proceedings constitutes an interruption of the statues of limitation of the claim in respect of which the applicant filed the application as per Art. 625. Such limitation shall not expire for the duration of the bankruptcy proceedings.(2) For added creditors in accordance with Art. 629, the rules as per paragraph (1) shall apply from the moment of submission of the application for adding a creditor.(3) If an application for instituting bankruptcy proceedings is rejected by an effective court ruling, the statute of limitation shall not be deemed to be interrupted. The validity of the suspension of limitation shall remain.Consideration of PetitionArticle 629(1) (Amended, SG No. 84/2000) Petitions to institute bankruptcy proceedings, submitted by debtors, respectively liquidators, shall be considered immediately by the court in camera.(2) (Supplemented, SG No. 70/1998) Petitions to institute bankruptcy proceedings, submitted by creditors, shall be considered by the court in camera summoning the debtor and the petitioner, within 14 days at the latest.(3) (New, SG No. 70/1998, repealed, new, No. 84/2000) By the end of the first session on a court case initiated by a creditor, other creditors may be added in the proceedings, objections may be raised and written evidence may be submitted.(4) (New, SG No. 103/1999) The court shall be obliged to apply the rules set out in the preceding paragraphs provided the petition to institute bankruptcy proceedings meets all requirements set out in Article 628.(5) (New, SG No. 84/2000) The court shall institute the action on the day the petition is filed and rule on the action no later than 3 months following the institution of the action.Preliminary Security MeasuresArticle 629a(New, SG, No. 70/1998)(1) (Supplemented, SG, No. 38/2006) Prior to the ruling on the application to institute bankruptcy proceedings, if so required for the purposes of protecting the debtor property, upon a creditor's request, or ex officio, the bankruptcy court may:1. appoint a temporary trustee in bankruptcy having the authorities under Article 635, para 1;2. allow the measures under Article 630, para 1, Item 4;3. rule suspension of executionary court actions against the property of the debtor, except for executionary court actions instituted under the State Claims Collection Act;4. allow the measures under Article 642;5. impose the measures stipulated in Article 650.(2) Where the request to impose the measures under para 1 is filed by a creditor, the court shall impose those if:1. the creditor's request is supported by convincing written evidence; or2. a surety, in the amount established by the court, is provided to compensate the debtor for any damages incurred, in case it is not found to be insolvent, or over-indebted, respectively.(3) The court may obligate the creditor to provide surety also in the cases under para 2 Item 1.(4) Security measures imposed shall benefit all creditors in the bankruptcy.(5) The court may rescind the security measures imposed if the continuance thereof is not required for the purposes of achieving the goals of the surety.(6) The determination as to ruling the measures under para 1 shall be announced to the person with respect to which the measures are imposed, and to the person that has requested the imposition thereof. The determination may be appealed within 7 days following receipt of the notification.(7) The determination regarding an adjudication of measures under para 1 shall be subject to immediate execution. Its appeal shall not suspend its execution.(8) Security measures shall be presumed rescinded when, under a decision which has become effective, the application to institute bankruptcy proceedings is rejected.(9) Security measures imposed shall be effective until the date of the decision to institute bankruptcy proceedings. As of that date, their effect shall be replaced by the effect of the decision to institute bankruptcy proceedings, and by the effect of the measures ruled pursuant to Article 630, para 1, subpara 4, The court may rule new security measures and continue the effectiveness of measures imposed pursuant to this Article.Institution of bankruptcy proceedings in the absence of propertyas may be used for covering the initial expensesArticle 629b(New, SG, No. 38/2006)(1) When the available property of the debtor does not suffice to cover the initial expenses, the court may determine the amount that shall be prepaid within a time limit set by the court by the persons as per Art. 625 or by another creditor, for the purpose of instituting the bankruptcy procedure. The court ruling shall not be subject to appeal or enforcement, but it shall define the consequences as per Art. 632, par. (1), in case where the amount is not prepaid within the set time limit.(2) The initial expenses shall be determined by the court depending on the current compensation of the temporary trustee in bankruptcy, and the estimated expenses pertinent to the bankruptcy proceedings.(3) Where the debtor is a personal company, the court shall rule on the prepayment as per par. (1), after taking into consideration also the property of the partners of unlimited liability.Section IIIssue of a RulingRuling on Institution of Bankruptcy ProceedingsArticle 630(1) (Supplemented, SG No. 70/1998) Where the court has established insolvency or over-indebtedness, as the case may be, by its ruling it shall:1. (supplemented, SG No. 70/1998) declare the insolvency or over-indebtedness, as the case may be, and determine the initial date thereof;2. institute bankruptcy proceedings;3. appoint a temporary trustee in bankruptcy;4. allow for provision of security by means of imposing attachment or other security measures.5. fix a date for the first meeting of creditors, not later than one month following the issue of the ruling.(2) (Amended, SG Nos. 70/1998, 84/2000, supplemented, SG No. 58/2003) Where it is obvious that further continuance of the activity could damage the bankruptcy estate, the court may, upon request by the debtor, respectively the liquidator, the trustee in bankruptcy, the Government Claims Agency or creditor, declare the debtor bankrupt and terminate his activity concurrently with the ruling to institute bankruptcy proceedings or later but before the time period for proposing a plan as referred to in Article 696 has expired.(3) The ruling on instituting bankruptcy proceedings shall be effective in respect of all.Ruling to Reject the ApplicationArticle 631The court shall reject the application, should it establish that the debtor's distress is temporary and that he disposes of sufficient assets to cover the obligations, safeguarding the creditors' interests.IndemnityArticle 631a(New, SG, No. 58/2003)(1) Where, under a decision that has come into force, a creditor's petition to institute bankruptcy proceedings has been rejected, the debtor, be they a natural or a legal person, shall be entitled to indemnification if the creditor has acted with intent or grave negligence.(2) Indemnity shall be due for all property and non-property damages which are the direct and immediate consequence of the harm. It can be payable as a one-time payment or in periodic instalments.(3) If the debtor has contributed for the occurrence of damages, the indemnity can be reduced.(4) Indemnity for non-property damages shall be determined by the court by an equity judgment.(5) If the petition to institute bankruptcy proceedings has been filed by several creditors, they shall be held liable jointly and severally.Ruling to Terminate ProceedingsArticle 632(Amended, SG, No. 38/2006) (1) Where the available property is not sufficient for covering the initial expenses and/or such expenses are not prepaid in accordance with the procedure as per Art. 629b, the court shall declare the insolvency, resp. the over-indebtedness; shall set its initial date, shall institute bankruptcy proceedings, shall allow securing of the debt through the imposition of distraint or prohibition or other security measures; shall decree the termination of activities of the enterprise, shall declare the debtor bankrupt and shall close proceedings. In such a case, the court shall not decree the deletion of the merchant from the Commercial Register.(2) Suspended bankruptcy proceedings can be resumed within one year from the recordation of the court ruling as per par. (1), upon the request of the debtor or a creditor. Resumption of proceedings shall be allowed if the requesting party can prove that sufficient property is available or if said party would deposit the required amount for prepayment of the initial expenses as per Art. 629b.(3) In case of a resumption of proceedings, the period for presentation of claims shall commence as from the moment of recordation of the ruling as per par. (2).(4) If within the time limit as per par. (2) no resumption of proceedings is requested, the court shall terminate the bankruptcy proceedings and shall order the deletion of the debtor from the Commercial Register.(5) The provisions of pars. (1) through (4) shall also apply in cases where it is established, in the course of bankruptcy proceedings, that the available property of the debtor does not suffice to cover all expenses pertinent to the bankruptcy proceedings.Refunding of prepaid sumsArticle 632a(New, SG, No. 38/2006)The prepaid amounts as per Art. 629b and 632 shall be refunded to the respective payer provided that the bankruptcy estate has increased sufficiently.Appeal of RulingsArticle 633(Amended, SG, No. 38/2006) (1) Rulings as per Articles 630 and 632 may be appealed within 7 days as from the date of recordation thereof in the Commercial Register.(2) The decision whereby the request as per art. 625 is rejected shall be subject to appeal within 7 days from the date of the announcement in accordance with the Code of Civil Procedure. Immediate ExecutionArticle 634Rulings pursuant to Article 630 shall be implemented immediately.CHAPTER FORTYEFFECT OF RULING ON INSTITUTIONOF BANKRUPTCY PROCEEDINGS(Previous Chapter 36, SG No. 83/1996)Date of Institution of Bankruptcy ProceedingsArticle 634a(New, SG, No. 70/1998)Bankruptcy proceedings shall be deemed instituted as of the date of the decision under Article 630. In case actions under Article 635, Article 636, para 1, Articles 637, 638 and 646 have been performed prior to this date, they shall be presumed as effected upon the institution of the bankruptcy proceedings.Court Rulings on Petitions in Bankruptcy ProceedingsArticle 634b(1) (New, SG, No. 84/2000) (1) The court shall make its ruling within 3 days upon the application of a party in the proceedings, unless another period is provided for in this part. Should the act of the court's ruling be subject to appeal, the appellate court shall make a ruling within 7 days of receiving the appeal and shall give obligatory instructions.(2) In case of absence of the judge hearing the case, the president of the court of jurisdiction over bankruptcy shall nominate another judge to hear the case during the absence.(3) The judge hearing the case shall immediately rule on a request for challenge. A resolution rejecting the challenge shall be subject to appeal before the president of the appellate court, who shall make a ruling within 3 days of receiving the appeal.Announcement of the Court ActsArticle 634c(New, SG, No. 84/2000)(1) (Supplemented, SG, No. 38/2006) The actions of the debtor, the creditors, the committee of creditors, the meeting of creditors, the trustee in bankruptcy and the court acts on bankruptcy shall be entered in a separate book which shall be public and available in the chancery of the court of jurisdiction over bankruptcy. The rulings and resolutions of the first instance court of appeal and the cassation court on appeals against the acts of the court of jurisdiction over bankruptcy shall also be entered in the same book. The book may be kept and stored in electronic format.(2) (Amended, SG No. 104/2007) Communications of the appealable court judgments, with the exception of the ruling referred to in Article 729 (1), shall be transmitted to the interested parties according to the procedure established by the Code of Civil Procedure. (3) (New, SG No 31/2005) If the debtor is an operator or participant in a payment system recorded in a register of the Bulgarian National Bank, simultaneously with the rendition of the judgment on institution of bankruptcy proceedings under Article 630 herein, the court shall notify the Bulgarian National Bank of the institution of bankruptcy proceedings by means of transmitting the judgment to the Bulgarian National Bank.(3) (New, SG No 31/2005) If the debtor is an operator or participant in a securities settlement system, the court shall notify the Central Depository of the institution of bankruptcy proceedings by means of transmitting the judgment to the Central Depository of securities.Notice of the Bankruptcy Proceedings to the CompanyCase of the DebtorArticle 634d(New, SG No. 84/2000; supplemented, SG, No. 58/2003; repealed,SG No. 38/2006) Restriction of Rights of Insolvent DebtorArticle 635(1) (Supplemented, SG No. 84/2000) Upon institution of bankruptcy proceedings, or in the cases under article 629a, the debtor shall continue his activities under the supervision of the trustee in bankruptcy. He may conclude new transactions with preliminary approval of the trustee in bankruptcy only, and in compliance with the measures, determined by the ruling on institution of bankruptcy proceedings or by the determination pursuant to article 629a.(2) The court may deprive the debtor of the right to manage and dispose of his assets and to grant this right to the trustee in bankruptcy, should it establish that by his actions the debtor jeopardises the interests of creditors.(3) (New, SG, No. 38/2006) In bankruptcy proceedings, as well as in proceedings as per Art. 621a, par. (2), Arts. 649 ?Performance of Money ObligationsArticle 636(1) (Amended, SG, No. 38/2006) The performance of obligations to the debtor shall be taken over by the trustee in bankruptcy as from the date of recordation of the ruling on institution of bankruptcy proceedings.(2) (Amended, SG No. 70/1998, No. 38/2006) The performance made to the debtor after the initial date of institution of the bankruptcy proceedings but prior to the recordation shall be deemed valid, if the performer was unaware of the initiation of proceedings, or even where the performer was aware thereof, provided the given has been included into the bankruptcy estate. Bona fide action shall be presumed unless proven otherwise.Suspension of Court ProceedingsArticle 637(1) (Supplemented, SG Nos. 84/2000, 58/2003) Upon institution of bankruptcy proceedings, court and arbitration proceedings under civil and commercial cases against the debtor, with the exception of labour disputes on money claims shall be suspended. This provision shall not apply if as of the date of institution of bankruptcy proceedings on another case, where the debtor is a defendant, the court has accepted for joint consideration a counterclaim or an objection for offset submitted by the debtor.(2) (Amended, SG No. 70/1998, No. 38/2006) Suspended proceedings shall be terminated, provided the claim is allowed, under the terms of Article 693.(3) (New, SG No. 70/1998) Proceedings suspended pursuant to para 1 shall be resumed and continue with the participation of1. the trustee in bankruptcy and the creditor, should the claim be not included in the list of dues received by the trustee in bankruptcy, or in the list approved by the court under Article 692;2. (amended, SG, No. 38/2006) the trustee in bankruptcy, the creditor and the person having filed a protestation, should the claim be included in the list of dues received by the trustee in bankruptcy but a protestation against it has been made under the terms of Article 692, para 3.(4) (New, SG No. 70/1998) The decision ruled under para 3 be legally binding in establishing the relations among the debtor, the trustee in bankruptcy and all creditors in the bankruptcy.(5) (New, SG No. 58/2003, amended, SG, No. 38/2006) After bankruptcy proceedings have been instituted, it shall not be allowable to institute new court or arbitration proceedings on property claims in civil or commercial cases against the debtor, except in respect of claims for:1. protection of the rights of third parties who/which are owners of items included in the bankruptcy estate;2. employment disputes.Suspension of Execution ProceedingsArticle 638(1) (Supplemented SG No. 103/1999, amended, SG No. 105/2005) Upon institution of bankruptcy proceedings any execution proceedings against assets included in the bankruptcy estate shall be suspended, with the exception of properties under Art. 193 of the Tax and Social Security Procedure Code. (2) (Amended, SG, No. 38/2006) Where within the period as from the suspension pursuant to para 1 through the date of recordation of the ruling on institution of bankruptcy proceedings payments have been effected to claimants, the moneys paid shall be returned to the bankruptcy estate.(3) (Amended and supplemented, SG No. 70/1998) Where actions have been undertaken in favour of secured creditors for implementing the surety, the court may allow the proceedings to continue, should there exist a danger of jeopardising the creditor's interests. Any surplus amount received over and above the amount of the surety shall be added to the bankruptcy estate.(4) (New, SG No. 58/2003, amended, SG No. 105/2005) Suspended proceedings shall be terminated if the claim has been filed and allowed under the terms of Article 693. Any imposed attachments and garnishments shall not be opposable to creditors in the bankruptcy. It shall not be allowable to impose security measures following the procedure of the Code of Civil Procedure or the Tax and Social Insurance Procedure Code with respect to the debtor's property after bankruptcy proceedings have been instituted.Claims having emerged following on institutionof Bankruptcy Proceedings(Title amended, SG 38/2006) Article 639(1) (Amended, SG No. 38/2006) Creditors of claims that have occurred after the date of the ruling on institution of bankruptcy proceedings shall receive payment on maturity, and where they have not received payment on maturity, shall be satisfied pursuant to the procedure under Article 722, para 1.(2) (Repealed, SG No. 38/2006) .Special Cases of SaleArticle 639a(New SG No 70/1998, repealed, SG No. 84/2000)Sale of perishable goods(Title new, SG No. 38/2006)Article 639b(1) (Previously Art. 639b, SG, No. 38/2006) The court may allow the trustee in bankruptcy to sell, prior to any cashing determination, any perishable movables and any other property from the bankruptcy estate if so necessary for covering the cost of the bankruptcy proceedings.(2) (New, SG No. 38/2006) The sale as per par. (1) above shall be effected by the trustee in bankruptcy through direct negotiations.Cooperation of DebtorsArticle 640(1) (Previous Article 640, SG No. 84/2000) Within 14 days of institution of bankruptcy proceedings, debtors shall be obliged to provide to the court and the trustee in bankruptcy:1. Adequate information related to the activities of their enterprises and their properties;2. (amended, SG No. 90/1999, No. 38/2006) list of payments in cash or by means of bank transfer that exceed BGN 1,200 and that have been effected within six months prior to the initial date of insolvency;3. list of payments effected by the debtor to persons related thereto, for a period of one year prior to the initial date of insolvency;4. (new, SG No. 38/2006) a list of creditors in accordance with the debtor's books, indicating also the amounts of their claims;(2) (New, SG No. 58/2003) The debtor shall provide the court or the trustee in bankruptcy information concerning the condition of its property and its commercial activity as of the date of the request, and all documents of relevance to that. Such information and documents shall be provided within 7 days following the written request.(3) (New, SG No. 84/2000; renumbered from Paragraph 2, supplemented, SG No. 58/2003) Should the debtor fail to fulfil its obligation under paragraph 1, the court shall impose a fine of at least BGN 500 but not exceeding BGN 1000 on the guilty person, while under paragraph 2 the court shall impose a fine ranging from BGN 1000 to 5000 on the guilty person.Effect of Repeal of Ruling on Institution of Bankruptcy ProceedingsArticle 641(Amended, SG Nos. 84/2000, 58/2003, No. 38/2006) In case of repeal of the ruling on institution of bankruptcy proceedings, imposed attachments shall be considered removed, the authority of the debtor restored, and the authority of the trustee in bankruptcy, terminated from the time of entering the ruling of the Supreme Court of Appeal in the commercial register.Security MeasuresArticle 642(Supplemented, SG No. 38/2006)Upon request of the trustee in bankruptcy, the debtor or any creditor, the bankruptcy court may allow measures provided by law, securing the available assets of the debtor. For more information visit www.solicitorbulgaria.com id: 291 Thu, 31 Jul 2008 03:46:10 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-commerce-act-part-4 http://web.solicitorbulgaria.com/index.php/bulgarian-commerce-act-part-4 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/COMMERCE_ACT2.jpg EUR http://web.solicitorbulgaria.com/index.php/bulgarian-commerce-act-part-4 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Section IVContributionsObligation to Make a ContributionArticle 188(1) (Supplemented, SG No. 84/2000) The shareholders shall be obligated to make contributions for the shares subscribed, which shall cover the fixed by the Articles of Association portion of the value of the shares. The remainder shall be paid in within a period stipulated in the Articles of Association, but not later than two years of the company's registration, or increase of capital respectively.(2) Partial contributions may vary for individual shareholders, if the Articles of Association provide so expressly.Consequences of Delaying ContributionsArticle 189(1) The shareholders which have not made their contributions within the specified time periods shall owe interest, unless the Articles of Association do not provide for liquidated damages. In case of a delayed non-monetary contribution, compensation for actual damage suffered may be claimed.(2) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to… For more information visit http://www.solicitorbulgaria.com id: 293 Section IVContributionsObligation to Make a ContributionArticle 188(1) (Supplemented, SG No. 84/2000) The shareholders shall be obligated to make contributions for the shares subscribed, which shall cover the fixed by the Articles of Association portion of the value of the shares. The remainder shall be paid in within a period stipulated in the Articles of Association, but not later than two years of the company's registration, or increase of capital respectively.(2) Partial contributions may vary for individual shareholders, if the Articles of Association provide so expressly.Consequences of Delaying ContributionsArticle 189(1) The shareholders which have not made their contributions within the specified time periods shall owe interest, unless the Articles of Association do not provide for liquidated damages. In case of a delayed non-monetary contribution, compensation for actual damage suffered may be claimed.(2) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) Shareholders whose contributions are overdue, if they do not make the due contributions within one month of written notice to do so, shall be deemed expelled. The notice must be made public in the commercial register unless the transfer of the shares is subject to the consent of the company.(3) A shareholder so expelled shall lose its shares and any contributions made. The shares of a shareholder so expelled shall be cancelled and destroyed. The company shall offer for sale new shares substituting the cancelled ones. The contributions made by the expelled shareholder shall be appropriated to the company's reserve fund.InterestArticle 190(1) The shareholders shall not be paid interest on contributions made, except in cases provided for in the Articles of Association.(2) (Amended, SG No. 84/2000) Where the shareholders have made partial contributions in different proportions, interest shall be due on the difference, unless the Articles of Association provide otherwise. Such interest shall be paid from the profit prior to the dividends in accordance with article 247a, regardless of the decision of the General Meeting of the Shareholders concerning the distribution of profit.(3) The fruits derived from contributions made prior to incorporation shall be in the company's favour, unless the Articles of Association provide otherwise.SecurityArticle 191The Articles of Association may provide that the shareholders shall provide security for the portion not contributed.Section VIncrease of CapitalPrerequisitesArticle 192(1) The capital stock may be increased by issuing new shares, by increasing the nominal value of shares already issued, or by converting debentures into shares pursuant to Article 215.(2) The general meeting of shareholders resolution to increase the capital stock shall be adopted by a two thirds majority of the votes of the shares represented at the meeting. The Articles of Association may provide for a larger majority, as well as for additional conditions.(3) (Amended, SG No. 84/2000) Where shares of various classes exist, the resolution shall be adopted by each class.(4) Where the new shares are to be sold at a price exceeding their nominal value, the minimum sale price shall be specified in the general meeting resolution.(5) An increase of the capital stock is admissible only after the specified by the Articles of Association amount has been fully paid up.(6) (New, SG No. 84/2000, supplemented, SG No. 66/2005) In the case of increase of capital in violation of article 161, paragraph 4, the members of the managing board, respectively the board of directors, shall be jointly liable for the contributions for subscribed own shares. If any person subscribes shares on its behalf and at the account of the company, they shall be deemed purchased entirely at the account of that person.(7) ( New, SG No. 63/1995, renumbered from Paragraph 6, supplemented, SG No. 84/2000) In the case of increase of capital Chapter Fourteen, Sub-section II shall apply, respectively, while an increase of capital through subscription shall be effected under terms and procedure established by law.(8) (New, SG No. 114/1999, renumbered from Paragraph 7, SG No. 84/2000) For the purposes of recording an increase in capital through subscription, it shall be necessary to present a confirmation of a prospectus unless no prospectus is required by the law.Requirements for Registration of the Increase of CapitalArticle 192a(New, SG No. 84/2000)(1) To enter the increase of capital in the commercial register, it is required that:1. the new shares are subscribed;2. at least 25 percent of the subscribed new shares are paid in;3. the difference between the nominal value and the issue price of the new shares is paid up.(2) Should the new shares not be fully subscribed, the capital shall be increased only by the amount of the subscribed shares, if the general meeting resolution on the increase provides for such a possibility.(3) A list of the persons who have subscribed the new shares, certified by the managing board, respectively the board of directors, shall be provided to the commercial register.Increase of the Capital Stock by Non-Monetary ContributionsArticle 193(1) (Previous Article 193, SG No. 66/2005) Where the capital stock is increased by non-monetary contributions, the general meeting resolution shall specify the subject of each contribution, the contributor, and the nominal value of shares given for such contribution.(2) (New, SG No. 66/2005, amended and supplemented, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The experts' conclusion under Article 72(2) is a part of the materials under Article 224 and shall be submitted to the Commercial Register for publication together with the decision to increase the capital.Preferential Right of Shareholders in Emissions of New Shares(Title amended, SG No. 66/2005) Article 194(1) (Amended, SG No. 84/2000) Each shareholder is entitled to acquire a part of the new shares in proportion to its share in the capital stock prior to the increase.(2) (Amended, SG No. 84/2000) For shares of different classes, the right referred to in paragraph 1 shall apply to the shareholders of the respective class. The rest of the shareholders shall exercise their right after the shareholders of the class in which the new shares are issued.(3)(New, SG No. 84/2000, amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The right of the shareholders under paragraphs 1 and 2 shall lapse after the expiration of a period of time specified by the general meeting, which shall not be earlier than one month from the date that the invitation to subscribe shares has been made public in the Commercial Register. The invitation to subscribe new shares shall be made public together with the decision for increase of capital in the Commercial Register.(4) (New, SG No. 84/2000, supplemented, SG No. 66/2005, amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The shareholders' right under Paragraph (1) and (2) may be restricted or forfeited only pursuant to a general meeting resolution passed with two thirds of the votes of the shares represented. The managing board, respectively the board of directors, shall submit a report on the reasons for the restriction or forfeiture of the rights and shall justify the issue price of the new shares. The general meeting resolution shall be submitted to the commercial register for publication.Conditional Increase of the CapitalArticle 195The increase of the capital stock may be conditional upon the buying of the shares by certain persons at a certain price, or against debentures issued by the company.Increase of the Capital Stock by the Managing Board(Board of Directors)(Heading amended, SG No. 84/2000)Article 196(1) (Previous Article 196, amended and supplemented, SG 84/2000) The Articles of Association may empower the managing board, or the board of directors as the case may be, to increases the capital stock up to a certain nominal amount in the course of five years from the date of incorporation, by issuing new shares. A resolution to the same effect may also be passed by amending the Articles of Association in accordance with the provision of article 192, paragraph 3, for a period not exceeding five years from the date of registration of the amendment.(2) (New, SG No. 84/2000) In the case of increase of capital pursuant to paragraph 1, article 194, paragraphs 1 and 2 shall apply.(3) (New, SG No. 84/2000, amended, No. 66/2005) The managing board, respectively the board of directors, may preclude or restrict the shareholders' right referred to in article 194, paragraph 1, only if it is empowered to do so by a general meeting resolution adopted by a majority of two thirds of the votes of the represented shares. The power may not be given for a period longer than the period referred to in paragraph 1. In such a case, the increase of capital may also be effected under the procedure of articles 193 and 195.Increase of the Capital Stock from Company FundsArticle 197(1) The general meeting may resolve to increase the capital stock by partial capitalisation of profits. The resolution shall be adopted within three months from the date that the financial statement for the previous year is approved, with a majority of the votes of three quarters of the shares represented at the meeting.(2) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The company's balance sheet shall be presented and the fact that the increase is from the company's own funds shall be explicitly stated upon filing the resolution to increase the capital.(3) (Supplemented, SG No. 84/2000) The new shares shall be allocated among shareholders, including the company if it possesses its own shares, on a pro rata basis. Any general meeting resolution in contravention of the latter provision shall be null and void.Receipt of SharesArticle 198(1) Upon registering the increase of the capital stock pursuant to the preceding article, the supervisory board, or the board of directors as the case may be, shall, without delay, invite the shareholders to receive their shares.(2) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) New bearer shares, which have not been claimed within one year of the date on which the increase of the capital stock is entered in the Commercial Register, shall be sold on the stock exchange. The shareholders' rights shall lapse, and moneys from the sale shall be appropriated to the company's reserve fund.Section VIReduction of CapitalOrdinary ReductionArticle 199(1) A reduction of the capital stock shall be implemented by a general meeting resolution.(2) (Amended, SG No. 84/2000) If there are several classes of shares, resolutions of each class of shareholders shall be necessary to reduce the capital stock.(3) The resolution shall set forth the purpose of the reduction and the method by which it is to be effected.Methods of ReductionArticle 200(1) The capital stock may be reduced:1. by reduction of the nominal value of shares;2. by cancellation of shares.Reduction of Capital Stock by Cancellation of SharesArticle 201(1) Shares may be cancelled forcibly or after their acquisition by the company.(2) (Supplemented, SG No. 84/2000) Forcible cancellation of shares shall be allowed if provided for in the Articles of Association and if the shares were subscribed under that condition.(3) The prerequisites for, and the method of, forcible cancellation shall be set forth in the Articles of Association.Protection of CreditorsArticle 202(Amended, SG No. 84/2002)(1) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) To creditors whose claims have arisen prior to notification in the Commercial Register of the resolution on the reduction of capital, the provisions of Articles 150 through 153 shall apply.(2) The provision of paragraph 1 shall not apply when the reduction of capital is made for the purpose of covering losses. In this case the shareholders shall not be released from the obligation to make contributions.(3) The provision of paragraph 1 shall not apply when the reduction of capital is made with own shares fully paid-in and acquired for free or with funds under 247a, paragraphs 1 - 3. In such a case, article 187c, paragraph 4 shall apply respectively.Simultaneous Reduction and Increase of the Capital(Title new, SG No. 83/1996, amended, SG No. 84/2000)Article 203(Amended, SG No. 83/1996, No. 84/2000)(1) The capital of a company may be simultaneously reduced and increased in such a way that the reduction takes effect only if the envisaged increase of capital is made.(2) In the cases under paragraph 1, the capital may be reduced to a level below the minimum established by law, if at least this minimum is achieved with the increase of capital.(3) The provision of article 202, paragraph 1 shall not apply, if, as a result of the increase, the amount of capital before its change is achieved or exceeded.Section VIIDebenturesProcedure for Issuing DebenturesArticle 204(1) (Amended, SG No. 114/1999, SG No. 58/2003) Debentures may only be issued by a joint-stock company. The issuance of debentures by public offering may be done at least two years after the company's recordation in the commercial register at the earliest, and provided it has two annual financial statements that have been approved by the general meeting.(2) (Amended, SG No. 114/1999) The requirements under para 1 shall not apply to debentures issued or secured by a bank or by the State.(3) (Amended and supplemented, SG No. 61/2002) Resolutions to issue debentures may be adopted by the general meeting of shareholders, which may duly authorise the board of directors, or the managing board, respectively, following the procedure set out in Article 196.(4) Debentures of same issue and same nominal value shall rank pari passu.(5) (New - SG No. 63/1995, supplemented, SG No. 61/2002) Debentures may be in the form of debenture stock and debenture certificates. The rules for shares stipulated in this Act, with the exception of Article 176, para 2, and Article 184, para 2, shall apply to the issue, transfer and pledge of debenture stock and debenture certificates.Requirements and Procedure for OfferingArticle 205(Amended, SG No. 63/1995; No. 61/2002)(1) Issuance of debentures through subscription and through other forms of public offering shall be done in accordance with terms, conditions and procedures as prescribed by law.(2) In issuing debentures in cases other than those referred to in para 1, the company shall prepare a proposal for subscribing debentures that shall contain, at the minimum:1. The resolution referred to under Article 204, para 3;2. (repealed, SG No. 58/2003);3. The total nominal value and the issue price of the debenture loan;4. Number, type, nominal value and issue price of the debenture offered, and any restrictions envisaged as to their transfer;5. For interest-bearing debentures, time to maturity of the debentures, the redemption schedule of the loan, including grace period, if any, interest payments, the method of their accrual and the period of payment;6. For debentures with other forms of yield, the method of generating the yield and payment maturities;7. Type and size of collateral, if any;8. Method and term of payment of interest and principal;9. Start and end date, and a place and procedure for subscribing the debentures;10. Terms for subscribing the debentures;11. Minimum and maximum size of cash contributions raised, under which the loan shall be considered contracted.(3) Debentures shall be issued only upon full payment of the issue price.(4) In the resolution referred to in Article 204, para 3, on issuing a non-public issue of debentures, a provision may be made that the legal provisions regarding the trustee of debenture-holders and realization of a public issue of debentures, respectively, shall apply.Holding of Offering(Title amended, SG 61/2002)Article 206(1) (Amended, SG No. 61/2002) The raising of moneys and the delivery of the debentures shall be performed by a bank or an investment intermediary.(2) (Amended, SG No. 61/2002) Subscribers shall pay the relevant moneys into a third-party transaction account with a bank specified by the company. The sums in the said account may not be used prior to the announcement referred to in para 6.(3) (Amended, SG No. 61/2002) Under the resolution referred to in Article 204, para 3, the conditions under which the loan is to be considered contracted shall be specified. An obligatory condition shall be that the issue price of all subscribed debentures must be paid in full.(4) (Amended, SG No. 61/2002). Within 14 days of the close of subscription, the company shall enter into a contract with a bank, establishing the terms and procedure of servicing payments under the debenture loan.(5) (Amended, SG No. 61/2002) Should the term referred to in Article 205, para 2, Item 9, expire short of compliance with the terms provided for the contracting of the loan, moneys paid up shall be reimbursed to the subscribers together with such interest as accrued by the bank.(6) (New, SG No. 61/2002, amended, No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) Within one month following the end date for subscribing the debentures as referred to in Article 205, Item 9 of Paragraph (2), the managing body of the company shall present at the Commercial Register for publication an announcement of the contracted debenture loans, stating:1. the loan size;2. the date as of which the term to maturity begins;3. the maturity date, for interest and principal payments;4. the bank as per para 4 servicing payments under the debenture loan;5. the place, date, time and agenda of the first general meeting of debenture-holders.(7) (New, SG No. 61/2002, amended, No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The date for holding the first general meeting of debenture-holders may not be later than 30 days following the publication referred to in Paragraph (6). The place for holding the meeting may not differ from the company's domicile.(8) (New, SG No. 61/2002) The company shall immediately inform representatives of the debenture-holders as referred to in Article 209 and the bank servicing payments under the debenture loan of any changes in its business activity that are relevant to its obligations under the debentures issued.Nullity of a Resolution to Issue DebenturesArticle 207Any decision of the company relating to the following shall be null and void:1. A change in the terms under which debentures have been subscribed;2. Issuing new debentures under preferential terms of redemption, unless there is agreement by the general meetings of debenture-holders of preceding unredeemed issues.First general meeting of debenture-holders(Title new, SG No. 103/1993)Article 208(Amended, SG No. 61/2002)The first meeting of debenture-holders shall be deemed legitimate provided one half of the subscribed loan is represented.Representation of Debenture-HoldersArticle 209(1) The holders of debentures of the same issue shall form a group for the protection of their interests before the company.(2) The group shall be represented by trustees elected by the general meeting of debenture-holders. These trustees may not be more than three.Limitations on RepresentationArticle 210(1) The following may not be trustees as per the preceding article:1. the debtor company;2. (amended, SG No. 61/2002) persons related to the debtor company;3. companies which have guaranteed, in part or in total, the liabilities assumed;4. members of the supervisory board, the managing board or the board of directors of the company, or descendants, ascendants and spouses thereof;5. persons who are prohibited by law from serving on company governing bodies;(2) Trustees may be recalled by a general meeting resolution of debenture-holders.Powers of the TrusteeArticle 211Trustees may perform acts to protect the debenture-holders' interests pursuant to resolutions of the general meeting of debenture-holders.Participation of Trustees in the General Meeting of ShareholdersArticle 212(1) The trustees of debenture-holders may participate in the general meeting of shareholders without the right to vote. They may obtain information under the same terms as shareholders.(2) Where decisions are adopted concerning the performance of obligations under the terms of the debenture loan, the general meeting of shareholders shall hear the opinion of the debenture-holders' trustees.Remuneration of TrusteesArticle 213(1) The remuneration of the debenture-holders' trustees shall be fixed by the company and shall be paid on its account. Should the company fail to fix such remuneration, the general meeting of debenture-holders shall do so.(2) Should the company object to the amount so fixed, the remuneration shall be fixed by an order of the district court upon application by the trustees.General Meeting of Debenture-HoldersArticle 214(1) (Supplemented, SG No. 61/2002, amended, No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The general meeting of debenture-holders shall be convened by the trustees of the debenture-holders through an invitation posted in the Commercial Register at least 10 days prior to the meeting date.(2) (Amended, SG No. 61/2002) The general meeting may also be called upon the request of the holders of not less than one-tenth of the respective debenture issue, or, if liquidation proceedings have commenced, upon the request of the liquidators of the company.(3) The trustees of the debenture-holders shall be bound in duty to call the general meeting of debenture-holders upon receipt of notice from the governing bodies of the joint-stock company as to:1. a proposed amendment of the company's purposes or type, or for transformation of the company;2. (amended, SG No. 61/2002) a proposal to issue a new issue of preferred debentures.(4) Each issue of debentures shall constitute a separate general meeting.(5) The provisions for the general meeting of shareholders shall apply mutatis mutandis to the general meeting of debenture-holders.(6) The general meeting of shareholders shall be bound in duty to review a general meeting of debenture-holders resolution.Section VIIIConversion of Debentures into SharesResolution on Conversion of Debentures into SharesArticle 215(1) The general meeting may resolve on the issuing of convertible debentures. This type of debentures may not be issued by companies in which the State owns more than 50 per cent of the capital stock. The shareholders may subscribe preferentially such debentures under the terms which apply to a subscription for a new issue of shares.(2) The procedure for the conversion of debentures into shares shall be specified in the general meeting resolution on the issuing.(3) The general meeting of shareholders may lay down the terms under which holders of debentures which are not redeemable by conversion into shares may so convert them.(4) The issue price of the converted debentures may not be lower than the nominal value of the shares which the debenture-holders would acquire by conversion.(5) In case of reduction of the capital stock because of losses through a reduction of the number of shares or of the nominal value thereof, the rights of debenture-holders shall be reduced proportionally.Terms of Validity of Resolution to Issue of New DebenturesArticle 216A resolution to issue new debentures convertible into shares shall be valid subject to approval by the general meeting of debenture-holders which have acquired the right to convert debentures into shares.Conversion upon Increase of Capital StockArticle 217Upon adoption of a resolution to increase the capital stock, the managing board, or the board of directors as the case may be, shall determine the period within which debentures may be converted into shares. This period may not exceed three months.Registration of the Altered Capital StockArticle 218(Amended, SG No. 61/2002)The managing board, or the board of directors, as the case may be, shall apply for registration of the increase in the capital stock occurring as a result of conversion of debentures into shares.Section IXJoint-Stock Company OrgansTypes of OrgansArticle 219(1) (Previous Article 219, SG No. 84/2000) The joint-stock company organs shall be:1. the general meeting of shareholders;2. the board of directors (one-tier system), or the supervisory board and the managing board (two-tier system).(2) (New, SG No. 84/2000) In a single person joint-stock company, the single owner of the stock shall decide on issues within the competence of the general meeting.Subsection IGeneral Meeting of ShareholdersComposition of the General MeetingArticle 220(1) (Supplemented, SG No. 58/2003) The general meeting comprises the voting shareholders. A voting shareholder may participate in a general meeting either in person or by proxy. No member of the board of directors or of the supervisory or managing board, as the case may be, may be proxy for any shareholder.(2) (Amended, SG No. 58/2003) Shareholders holding privileged non-voting shares and the members of the board of directors, or of the supervisory board and managing board as the case may be, where such members are not shareholders, shall participate in general meeting proceedings without the right to vote.(3) (New, SG No. 58/2003) Where a company has more than 50 employees, they shall be represented in the general meeting by one person with a consultative vote. Their proxy shall have the rights referred to in Article 224.CompetenceArticle 221The general meeting shall:1. amend the Articles of Association;2. resolve on increase or reduction of the capital stock;3. resolve on transformation and dissolution of the company;4. (amended, SG No. 58/2003) elect and recall the members of the board of directors, or of the supervisory board as the case may be;5. (new, SG No. 58/2003) determine the remuneration of the members of the supervisory board, or of the board of directors as the case may be, who will not be assigned the company's management, including their right to receive a part of the company's profits, and to acquire shares in and debentures of the company;6. (renumbered from Item 5, SG No. 58/2003) appoint and dismiss CPA auditors;7. (renumbered from Item 6, supplemented, SG No 58/2003) approve the annual financial statement as certified by the appointed certified auditor, make decisions concerning profit allocation, replenishment of the Reserve Fund and paying out dividends;8. (renumbered from Item 7, SG No 58/2003) resolve on issuing of debentures;9. (renumbered from Item 8, SG No 58/2003) appoint liquidators upon dissolution of the company, except in the event of bankruptcy;10. (renumbered from Item 9, SG No 58/2003) relieve of responsibility the members of the supervisory board and managing board, or of the board of directors as the case may be;11. (renumbered from Item 10, SG No 58/2003) resolve on other matters which by virtue of the law or the Articles of Association are in its competence.Holding of General MeetingArticle 222(1) (Amended and supplemented, SG No. 58/2003) A general meeting of shareholders shall be held at least once a year at the seat of the company, unless its articles of incorporation stipulate another location on the territory of the Republic of Bulgaria.(2) (New, SG No. 58/2003) The first general meeting shall be held within 18 months of incorporation and subsequent regular meetings shall be held not later than 6 months after the end of the reporting year.(3) (New, SG No. 84/2000, renumbered from Paragraph 2, SG No 58/2003) Should losses exceed one half of the capital, a general meeting shall be held not later than three months of establishing the losses.(4) (Renumbered from Paragraph 2, SG No 84/2000, renumbered from Paragraph 3, SG No 58/2003) The general meeting shall elect a chairman and a secretary of the meeting, unless the Articles of Association provide otherwise.Convening the General MeetingArticle 223(1) (Amended, SG No. 58/2003) The general meeting shall be convened by the board of directors, or by the managing board as the case may be. A general meeting may also be convened by the supervisory board, as well as on the request of the owners which have held, for more than 3 months, shares representing at least 5 per cent of the stock.(2) (Amended, SG No. 33/1999, amended and supplemented, SG No. 58/2003) Where within one month following the request of shareholders - holders of at least 5 per cent of the capital, pursuant to paragraph (1), such request has not been granted, or if a General Meeting has not been held within 3 months after submission of such request, the District Court shall call a General Meeting or shall authorize the shareholders who requested the Meeting, or a representative thereof, to call a Meeting. The fact that the stock has been held for more than 3 months shall be established before the court under a notarized statement of certification.(3) (Amended, SG Nos. 100/1997, 84/2000, No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The general meeting shall be convened by notice posted in the Commercial Register. If no bearer shares are issued, the Statutes may provide that the general meeting is convened only by invitations in writing.(4) As a minimum the notice shall state:1. the trade name and seat of the company;2. the place, date and hour of the meeting;3. the type of general meeting;4. the formalities, if provided for in the Articles of Association, to be satisfied for attendance and exercise of the right to vote;5. (amended, SG No. 61/2002) the agenda and business to be transacted, and specific proposals for resolutions.(5) (Amended, SG No. 100/1997, No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The time period from the posting in the Commercial Register until the opening of the meeting shall be no less than 30 days.Including Items in the AgendaArticle 223a(New, SG No. 58/2003)(1) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) Shareholders who for more than three months have owned shares representing at least 5 percent of the Company capital stock can, following the posting a notice in the Commercial Register or the sending out of invitations, also include other subjects on the General Meeting agenda.(2) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) Not later than 15 days prior to the opening of the General Assembly the persons as per par. (1) shall file with the Commercial Register a list of the items to be included in the agenda, together with any motions for decisions. By virtue of being posted in the Commercial Register, said issues shall be considered as listed on the proposed agenda.(3) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The fact that the stock has been held for more than 3 months shall attested to by a declaration.(4) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) Not later than on the next business day following the posting the shareholders shall submit the list of the items, any motions for decisions and the written materials related to those at the registered seat and management address of the company. Article 224 shall also apply accordingly.Right to InformationArticle 224(1) (Previous Article 224, amended SG No. 58/2003, No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) All papers relative to the agenda of a general meeting must be placed at the disposal of the shareholders not later than the date of posting the announcement or mailing of the notice thereof.(2) (New, SG No. 58/2003) Where the agenda includes the election of members of the board of directors, or of the supervisory board as the case may be, the papers referred to in paragraph (1) shall also include data concerning the names, permanent addresses and professional qualifications of persons nominated for board membership. This rule shall apply also when the item has been included in the agenda following the procedure set out in Article 223a(3) (New, SG No. 58/2003) Such papers shall be available free of charge to any shareholder on demand.List of ParticipantsArticle 225A list shall be drawn up of the shareholders or proxies present at the meeting, and the respective number of shares owned or represented. The shareholders or proxies shall certify their presence at the meeting by signature. The list shall be authenticated by the chairman and the secretary of the meeting.ProxyArticle 226A shareholder shall have the right to attend a general meeting by proxy executed in writing.Quorum of ShareholdersArticle 227(1) (Previous Article 227, amended, SG No. 58/2003) The Articles of Association may provide for a quorum of the shareholders.(2) (New, SG No. 58/2003) Decisions referred to in Article 221, items 1 through 3 may be taken only if at least half of the equity is represented at the general meeting. Articles of incorporation may stipulate a larger quorum requirement as well.(3) (New, SG No. 58/2003) In the absence of such quorum in the cases referred to in paragraphs (1) and (2) a new meeting date may be set which shall not be sooner than in 14 days, and the general meeting at such latter date shall be valid regardless of the equity represented. The date of such second meeting may be stated in the original notice as well.VotingArticle 228(1) Voting rights shall originate upon payment of the contribution, unless otherwise provided in the Articles of Association.(2) (Amended, SG No. 58/2003) Where a proposed resolution affects the rights of a class of shareholders, the votes shall be taken class by class, whereby quorum and majority requirements shall apply separately for each class.Conflict of InterestArticle 229A shareholder may not, either in person or by proxy, vote on:1. actions brought by the company against it;2. proceedings to realize the liability of such shareholder to the company.MajorityArticle 230(1) General meeting resolutions shall be passed by majority vote of the shares represented, unless the law or the Articles of Association provide otherwise.(2) (Amended, SG No. 58/2003) Resolutions under 221, Items1, 2 and 3 (for termination only), shall require a majority of at least two thirds of the shares represented. The Articles of Association may provide for another, larger majority for these cases.(3) (New, SG No. 58/2003) Where the law or articles of incorporation stipulate that voting should occur class by class, quorum and majority rules shall apply separately for each class.MinorityArticle 230a(New, SG No. 84/2000; Repealed, SG No. 58/2003)ResolutionsArticle 231(1) (Amended, SG No. 58/2003, No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The general meeting may not pass resolutions on matters have not been announced pursuant to Articles 223 and 223a, unless all shareholders are present or are represented at the meeting and no one objects to the submission of such matters to debate.(2) General meeting resolutions shall take effect immediately, unless such effect is deferred.(3) (Amended, SG Nos. 100/1997, 84/2000, 58/2003) Resolutions to amend or supplement the Articles of Association, or dissolve the company shall take effect after registration in the commercial register.(4) (New, SG No. 58/2003) Increase or reduction of capital, transformation of the company, election or dismissal of members of the boards, as well as appointment of liquidators shall come into effect after their entry in the Commercial Register.MinutesArticle 232(1) The minutes of a general meeting shall be kept in a special book and shall comprise:1. the place, date and hour of the meeting;2. the names of the chairman and the secretary, and of the vote tellers;3. the attendance of the managing and the supervisory board, and of other persons which are not shareholders;4. the motions made on the substance of the debate;5. the votes taken and the results thereof;6. the objections made.(2) The minutes of the meeting shall be signed by the chairman and the secretary, and by the vote tellers.(3) Attached to the minutes shall be:1. the list of participants;2. the documents relative to the convening of the meeting.(4) (New, SG No. 58/2003, amended, SG No. 59/2007) Upon the request of a shareholder or a board member, the general meeting session may be attended by a notary public who shall be tasked with preparing the fact-finding memorandum referred to in Article 593 of the Code of Civil Procedure . A transcript of the fact-finding memorandum shall be attached to the minutes of the general meeting.(5) (Renumbered from Paragraph 4, SG No 58/2003) The minutes and the documents attached thereto shall be kept on file for not less than five years. Any shareholder shall have the right to inspect the file on demand.Resolutions of a Single OwnerArticle 232a(New, SG No. 84/2000)A written record shall be drawn up of the resolutions of the single owner of the stock.Subsection IIGeneral Provisions for the Two Systems of AdministrationTerms of OfficeArticle 233(1) The members of the board of directors, the supervisory board and managing board shall be elected for not more than a five-year term of office, unless a shorter term is provided for in the Articles of Association.(2) The members of the first board of directors, or of the first supervisory board as the case may be, shall be elected for not more than a three-year term of office.(3) Directors may be re-elected for any number of terms.(4) (New, SG No. 84/2000, supplemented, SG No. 58/2003) The members of the board of directors and of the supervisory board may be also dismissed before the end of the term for which they have been elected.(5) (New, SG No. 58/2003, amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) A member of the Board may request his/her own removal from the commercial register under a written notice addressed to the company. Within one month of receiving such notice, the company must apply for registration of his discharge in the commercial register. If the company fails to do so, said Board member may declare for registration this circumstance himself and that entry shall be made regardless of whether another person has been elected to replace him.DirectorsArticle 234(1) A director may be any natural person possessing capacity. Where the Articles of Association so provide, a director may be a legal person. In this case the legal person shall designate a representative for performance of its duties on the board. The legal person shall bear unlimited liability and shall be liable jointly and severally with the other directors for the liabilities arising from acts of its representative.(2) A person may not be a director, if it:1. (amended, SG No.84/2000) has been a member of a managing or controlling body of a company dissolved on grounds of bankruptcy in the last two years preceding the date of the decision for declaring bankruptcy and there remain unsatisfied creditors;2. (repealed, SG No. 84/2000);3. does not meet other requirements provided for in the Articles of Association.(3) (New, SG No. 58/2003) Board members shall be registered in the commercial register, where they shall present a notarized consent and a statement certifying that no obstacles as referred to in paragraph (2) exist.Representative PowersArticle 235(1) The members of the Board of Directors, or of the Managing Board as the case may be, shall represent the company collectively, unless otherwise provided by the Statutes.(2) The board of directors, or, as the case may be, the managing board subject to approval by the supervisory board, may delegate authority to one or several of its members to represent the company. The authority so delegated may at any time be revoked.(3) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The names of the authorized representatives of the Company shall be listed in the Commercial Register. For registration they shall present notarized signatures.(4) (Amended, SG No. 84/2000) Restrictions on the mandate of the board of directors, the managing board or the persons authorized by them pursuant to the paragraph 2 shall not be binding upon third parties.(5) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The authorization and the revocation thereof shall be binding upon bona fide third parties after registration and publication.Contracts of the Single OwnerArticle 235a(New, SG No. 84/2000)Agreements between the single owner and the company, when it is represented by the single owner, shall be concluded in a written form.Special Rules on Transacting DealsArticle 236(Amended and supplemented, SG No. 103/1993, amended SG No. 58/2003)(1) A company's articles of incorporation may provide for certain deals to be transacted upon obtaining the permission of the supervisory board in advance, or upon the unanimous decision of the board of directors, as the case may be. Such restrictions may be imposed also by the supervisory board, or the board of directors, as the case may be.(2) The following deals may be transacted only upon a decision of the general meeting of shareholders:1. transfer or provision of the use of the entire commercial enterprise;2. disposal with assets the total value of which exceeds, in the current year, half of the value of assets of the company as per its most recent audited annual financial statements;3. assumption of liabilities or provision of collateral to one person or to related parties, the amount of which exceeds, in the current year, half of the value of assets of the company as per its most recent audited annual financial statements.(3) A company's articles of incorporation may expressly provide that deals referred to in paragraph (2) may be transacted upon a decision of the board of directors, or the managing board, as the case may be. In such a case, its shall be necessary to obtain the unanimous decision of the board of directors, or the permission of the supervisory board in advance, as the case may be.(4) Any transaction concluded in violation of paragraphs (1) through (3) shall be valid, and the person which has concluded it shall be liable before the company for any damages.Rights and obligationsArticle 237(Supplemented, SG No. 84/2000, amended SG No. 58/2003)(1) Board members shall have equal rights and obligations, regardless of any internal division of functions among them and the provision of management and representation rights to any of them.(2) Board members must perform their functions with the care of a good merchant and in the interest of the company and of all shareholders.(3) A person nominated for member of a board must, prior to his election, notify the general meeting of shareholders, or the supervisory board, as the case may be, of his participation in any companies as an unlimited liability partner, of holding over 25 per cent of the equity in any other company, and of his participation in the management of other companies or cooperatives as a procurator, manager or board member. When these circumstances should arise after such person has been elected to the board, he must issue a written notice forthwith.(4) Members of the board of directors and the managing board shall not have the right, on their own behalf or on behalf of another, to execute business transactions, participate in companies as procurators, managers or board members of other companies or cooperatives when thus engaging in a competitive activity vis-а-vis the company. This restriction shall not apply if the articles of association allow it expressly, or where the body which elects the board member has given its express consent.(5) Board members shall not disclose any information they have become aware of in that capacity, if that could affect the activity and development of the company, including after they are no longer board members. This obligation shall not apply to information which, pursuant to a law, is accessible to third parties or has already been disclosed by the company.(6) Paragraphs (1) through (5) shall apply also to natural persons who represent legal persons that are board members, in accordance with Article 234, paragraph (1).Quorum and MajorityArticle 238(1) The boards may pass resolutions if at least half the directors are present, whether in person or represented by another director. No director present may represent more than one absent director.(2) Resolutions shall be passed by a simple majority, unless otherwise provided by the Articles of Association.(3) The Articles of Association may provide that the board may pass resolutions in absentia if all directors have stated in writing their approval for the resolution.(4) (New, SG No. 58/2003) Not later than the beginning of a session, a board member shall be obliged to notify in writing its chairman that he, or a party related to him, has an interest in an item raised for discussion and shall not participate in decision-making on that issue.MinutesArticle 239(Supplemented, SG No. 58/2003)Minutes shall be kept of all resolutions of the managing board, the supervisory board and the board of directors which shall be signed by all present members of the respective board, whereas the way in which each of them has voted on the issues under discussion shall be noted.LiabilityArticle 240(1) The directors shall deposit a guarantee for their management of the affairs of the company in an amount determined by the general meeting, but not less than their three month gross income. The guarantee may be in the form of shares or debentures deposited with the company.(2) The directors shall be liable jointly and severally before the company for any damages caused through a fault of theirs.(3) Any director may be held harmless if it is established that it has no fault for the damage suffered by the companyLiability upon the Request of ShareholdersArticle 240a(New, SG No. 58/2003)Shareholders holding at least 10 per cent of the company's equity may file a claim demanding that members of the board of directors, or the supervisory board or managing board, as the case may be, be held liable for damages caused to the company.Contracts with Board Members and Parties Related to ThemArticle 240b(New, SG No. 58/2003)(1) Board members shall be obliged to notify in writing the board of directors, or the managing board, as the case may be, when they, or parties related to them, are entering into a contract with the company that goes beyond its usual business or materially deviate from market terms.(2) Contracts referred to in paragraph (1) shall be executed on the basis of a decision of the board of directors, or the managing board, as the case may be.(3) Any transaction concluded in violation of paragraph (2) shall be valid, and the person which has concluded it having known or been able to learn that such a decision is not in place, shall be liable before the company for any damages.Subsection IIITwo Tier SystemManaging BoardArticle 241(1) The joint-stock company shall be managed by a managing board which shall act under the control of a supervisory board.(2) The members of the managing board shall be appointed by the supervisory board, which shall determine their remuneration and shall have the right to recall them at any moment.(3) No person may simultaneously serve on both the managing board and the supervisory board of one company.(4) (Amended, SG No. 58/2003) The number of members of the managing board shall range between 3 and 9 people and shall be determined by the Articles of Association.(5) The rules of procedure of the managing board shall be approved by the supervisory board.(6) (New, SG No. 58/2003) Relations between the company and a member of the managing board shall be dealt with in a management contract. The contract shall be executed in writing on behalf of the company through the chairman of the supervisory board or a member authorized by him.Supervisory BoardArticle 242(1) The supervisory board may not take part in the management of the company. The supervisory board shall represent the company only in its relationship with the managing board.(2) (Amended, SG No. 84/2000) The members of the supervisory board shall be appointed by the general meeting of shareholders. Their number may be from three to seven.(3) The supervisory board shall adopt its own rules of procedure and shall appoint a chairman and vice chairman from among its members.(4) (New, SG No. 58/2003) The supervisory board shall meet for regular sessions at least once every three months.(5) (Renumbered from Paragraph 4, SG No 58/2003) The chairman shall call meetings of the supervisory board on his own initiative, as well as upon request by the members of the supervisory board or the members of the managing board.(6) (New, SG No. 58/2003) Relations between the company and a member of the supervisory board shall be dealt with in a contract. The contract shall be executed on behalf of the company through a person authorized by the general meeting of shareholders or by the sole owner.Reporting and SupervisionArticle 243(1) (Supplemented, SG No. 58/2003) The managing board shall report on its activity to the supervisory board at least once every three months. The report shall also contain the relevant data as specified in Article 247, paragraphs (2) and (3).(2) The managing board shall immediately inform the chairman of the supervisory board of all circumstances which have arisen which are material to the company.(3) The supervisory board may at any time require that the managing board provide information or a report on any matter concerning the company.(4) (Supplemented, SG No. 58/2003) The supervisory board may carry out any necessary investigations in performance of its duties, whereas its members shall have access to all the necessary information and documents. For purposes of such investigation it may employ the services of experts.Subsection IVOne Tier SystemBoard of DirectorsArticle 244(1) (Amended, SG No. 84/2000) The company shall be managed and represented by a board of directors. The board of directors shall consist of minimum three and maximum nine directors.(2) The board of directors shall adopt its own rules of procedure and shall elect a chairman and vice chairman from among its members.(3) The board of directors shall meet regularly not less than once every three months to discuss the company's state of affairs and prospects for development.(4) (Amended, SG No. 58/2003) The board of directors shall assign the management of the company to one or several executive members elected from among its members, and shall determine their remuneration. Executive members shall be fewer than the remaining members of the board.(5) Each of the officers must immediately inform the chairman of the board of all circumstances which have arisen which are material to the company.(6) Each director may request that the chairman call a meeting to discuss particular matters.(7) (New, SG No. 58/2003) Relations between the company and an executive member of the board shall be dealt with in a management contract which shall be executed in writing on behalf of the company through the chairman of the board of directors. Relations with the remaining members of the board shall be dealt with in a contract which shall be executed on behalf of the company through a person authorized by the general meeting of shareholders or by the sole owner.Section XAnnual Closing of Accounts and Distribution of ProfitsDocumentsArticle 245(Amended, SG No. 105/2006) Each year not later than March 31 the board of directors, or the managing board as the case may be, shall draw up the annual activity report and the financial statement for the previous calendar year, and shall submit these to the certified public accountants appointed by the general meeting.Reserve FundArticle 246(1) The company shall set up a reserve fund.(2) The sources of financing the reserve fund shall be:1. At least one tenth of profit which shall be set aside until the fund's assets reach one tenth or more of the company's capital stock or such other larger proportion as the Articles of Association may provide;2. the proceeds obtained in excess of the nominal value of shares and debentures upon their issuing;3. the total of the additional payments made by the shareholders for preferences given them with shares;4. other sources provided for by the Articles of Association or by a general meeting resolution.(3) Disbursements from the reserve fund may be made only for:1. covering losses for the current year;2. covering losses for the previous year.(4) When the assets of the reserve fund exceed one tenth of the company's capital stock, or any other larger proportion thereof as may be provided for in the Articles of Association, the excess amount may be used for increase of the capital stock.Contents of Annual ReportArticle 247(1) (Previous Article 247, SG 58/2003, SG No. 105/2006) The annual activity report shall comprise a review of the company's activity over the year and its current state of affairs, and the accounting notes to the annual financial statement.(2) (New, SG No. 58/2003) It shall be obligatory to indicate the following in the activity report:1. the sum total of remunerations paid out to members of the boards during the year;2. company shares and debentures acquired, held and transferred by members of the boards during the year;3. rights of members of the boards to acquire shares and debentures in the company;4. participation of members of the boards in any companies as unlimited liability partners, holdings of over 25 per cent of the equity in any other company, and their participation in the management of other companies or cooperatives as procurators, managers or board members;5. contracts referred to in Article 240b executed during the year.(3) (New, SG No. 58/2003) The report shall also state the business policy planned for the following year, including anticipated investments and personnel development, anticipated return from investments and development of the company, and any forthcoming transactions of material significance for the company's operations.Pay-out of Dividends and InterestArticle 247a(New, SG No. 84/2000)(1) (Amended, SG No. 58/2003) Dividends and interest pursuant to article 190. Paragraph 2 shall be paid out only if the respective annual financial statement, audited and adopted according to Section XI, shows that the net worth of the property reduced by the amount of dividends and interest to be paid-out is not less than the amount of the company's capital, "Reserve" fund and the other funds the company may be obliged to form by the Articles of Association or by law.(2) (Amended, SG No. 58/2003) Within the meaning of paragraph 1, the net worth of the property is the difference between the company's assets and liabilities according to its balance sheet.(3) The payments under paragraph 1 shall be made up to the amount of the profit for the current year, the undistributed profits from previous years, the part of the "Reserve" fund and the other funds of the company in excess of the minimum set by law or the Articles of Association, reduced by the uncovered losses from previous years and the allowances for the `Reserve" fund and the other funds the company is obliged to form by law or the Articles of Association.(4) If payments have been made without the prerequisites under paragraphs 1-3, the shareholders are not obliged to return the received amounts unless the company proves that the shareholders have know or could have known about the lack of prerequisites.(5) (New, SG No. 58/2003) The company shall be obliged to pay out the dividend to its shareholders as voted by the general meeting within three months of holding such meeting unless a longer period is stipulated in its articles of incorporation.Section XIAnnual AuditObject and Scope of AuditArticle 248(1) The annual financial statement shall be audited by the certified public accountants appointed by the general meeting.(2) The audit shall have as its object to ascertain whether the provisions of the Accountancy Act and the Articles of Association on annual closing have been observed.Appointment and Responsibility of Certified Public AccountantsArticle 249(1) Where the general meeting has failed by the end of the calendar year to appoint Certified Public Accountants, the Court shall, upon request of the board of directors, or of the managing or the supervisory board as the case may be, or of an individual shareholder appoint Certified Public Accountants.(2) The Certified Public Accountants shall assume responsibility for the bona fide and unbiased performance of audit, and nondisclosure of secrets.Report of Certified Public AccountantsArticle 250(Amended, SG No. 105/2006) Upon receipt of the report of the Certified Public Accountants, the managing board shall submit it to the supervisory board, together with the annual financial statement and annual activity report. The managing board shall also submit the draft resolution on distribution of profit to be discussed by the general meeting.Approval of Annual Closing of AccountsArticle 251(1) The supervisory board shall verify the annual financial statement, the annual report and the draft on distribution of profit, and shall, upon approval thereof, resolve to call a regular general meeting of shareholders.(2) In the one-tier system the draft on distribution of profit shall be prepared by the board of directors, which shall then convene the general meeting.(3) (Supplemented, SG No. 58/2003) The annual financial statements may not be approved by the general meeting without an audit by certified public accountants. The certified public accountants shall participate in the session of the supervisory board, or the board of directors, as the case may be, as stipulated in paragraphs (1) and (2).(4) (Amended, SG No. 84/2000, amended and supplemented, SG 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The verified and adopted annual financial statement shall be submitted for posting at the Commercial Register.Examination at the Request of ShareholdersArticle 251a(New, SG No. 58/2003)(1) Shareholders holding at least 10 per cent of the company's equity may request the general meeting to appoint an examiner tasked to examine the annual financial statements.(2) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) Should the general meeting fail to adopt a decision to appoint a examiner, the shareholders referred to in paragraph (1) may request the appointment of one from the regional court in the region of which the company's seat is located.(3) The appointed examiner shall prepare a report of his findings which shall be presented at the next general meeting.(4) The cost of the examination shall be at the expense of the company.Section XIITerminationGrounds for DissolutionArticle 252(1) (Previous Article 252, SG No. 58/2003) A joint-stock company shall be dissolved:1. by resolution of the general meeting of shareholders;2. upon the expiration of the time period for which it was formed. The general meeting may pass a resolution to dissolve the company prior to the expiration of the said period;3. upon a declaration of bankruptcy;4. (amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) by a ruling of the court with which the company is registered upon an action brought by the public attorney where the company pursues objectives prohibited by law;5. (amended, SG No. 58/2003) when the net worth of the company referred to in Article 247a, paragraph (2) drops below the amount of the registered capital; if within a period of one year the general meeting fails to pass a resolution to reduce capital, to transform or terminate the company, the termination shall be effected pursuant to Item 4;6. (new, SG No. 58/2003) if for a period of 6 months the number of members of a board of the company has been less than the minimum number specified in the law, it may be terminated following the procedure set out in Item 4;7. (renumbered from Item 6, SG No 58/2003) upon the occurring of the grounds provided for in the Articles of Association.(2) (New, SG No. 58/2003) A sole-owner joint-stock company shall not terminate upon the death or termination of the sole owner of its equity.CHAPTER FIFTEENPARTNERSHIP LIMITED BY SHARESDefinitionArticle 253(1) A partnership limited by shares shall be formed by articles of incorporation, whereby limited partners are issued with shares against their contributions to the capital. The limited partners shall be not less than three.(2) The provisions for the joint-stock company shall apply mutatis mutandis to the partnership limited by shares, unless this chapter provides otherwise.(3) The trade name of a partnership limited by shares shall include the extension, "Komanditno druzhestvo s aktsii" [Partnership limited by shares], or the abbreviation "KDA".FoundersArticle 254(1) The partnership limited by shares shall be formed by the general partners. They shall have the right to select shareholders among subscribers.(2) The general partners shall draw up the Articles of Association and shall convene the constituent meeting.ContributionsArticle 255(1) The amount of the partners' contributions shall be specified by the Articles of Association.(2) (Repealed, SG No. 103/1993).Partnership OrgansArticle 256The organs of the partnership limited by shares shall be those set forth by this Act for a one-tier system joint-stock company.General MeetingArticle 257(1) Only limited partners shall have the right to vote in the general meeting. General partners, even when they own shares, shall take part in the meeting in a consultative capacity.(2) The powers of the general meeting shall be set forth in the Articles of Association.(3) The general meeting shall submit to consideration and resolve on the requests of limited partners for auditing the activities of the partnership.Board of DirectorsArticle 258The board of directors shall consist of the general partners.Adoption and Amendment of the Articles of AssociationArticle 259(1) The Articles of Association shall be adopted and amended, and the partnership shall be dissolved, subject to the consent of the general partners.(2) The partnership shall not be dissolved with the death or bankruptcy of a limited partner, unless the Articles of Association provide otherwise.Liquidation ProceedsArticle 260The liquidation proceeds of each partner shall be proportionate to its contributions in the partnership.CHAPTER SIXTEEN(Amended and supplemented, SG No. 58/2003 - effective 01.01.2004)TRANSFORMATION OF COMPANIESSection IGeneral ProvisionsForms of TransformationArticle 261(Amended and supplemented SG No. 103/1993, amended, SG No. 84/2000,No 58/2003)(1) Companies may be transformed by take-over, merger, splitting, spinning off and spinning off of a sole-owner company, and by changing their legal form.(2) In all forms of transformation, the transforming, receiving and newly established companies (the companies involved in the transformation) may differ in their type, unless otherwise provided for in a law.(3) A sole-owner company may transform also by transferring its entire property to the sole owner if that owner is a natural person.Transforming a Company in Liquidation and in BankruptcyArticle 261a(New, SG No. 58/2003)(1) A company in liquidation may transform under the procedure set out in this chapter if it satisfies the conditions specified in Article 274, paragraph (1).(2) A company for which bankruptcy proceedings have been initiated may transform if the reorganisation plan envisages that it continue its operations. The rules of this chapter shall apply to such transformation.Exchange RatioArticle 261b(New, SG No. 58/2003)(1) In a transformation, partners or shareholders in transforming companies shall become partners or shareholders in one or more of the newly established and/or receiving companies. Interest stakes or shares acquired after the transformation must be equivalent to the fair price of interest stakes or shares held prior to the transformation in the transforming company.(2) To attain an equivalent exchange ratio, cash payments may be made to partners or shareholders in an amount not to exceed 10 per cent of the aggregate nominal value of the interest stakes or shares acquired.(3) (New, SG No. 66/2005) No shares or stakes in a receiving or a newly formed company may be acquired in exchange of shares or stakes in the transforming company, owned by the receiving company, nor against own shares of the transforming company. This prohibition shall also be valid in regard to persons operating in their own name, but on the account of the company.Liability of Members of Managing BodiesArticle 261c(New, SG No. 58/2003)Members of managing bodies of the transforming and receiving companies shall be liable to the partners and shareholders in the company for any damages resulting from a failure to fulfil their duties in preparing and effecting the transformation.Retaining Third Party RightsArticle 261d(1) (New, SG No. 58/2003) In a transformation, any existing pledges and attachments on interest stakes and shares in the transforming companies shall transfer onto the interest stakes and shares in the receiving and/or newly established companies acquired in exchange.(2) The pledges and attachments being transferred shall be registered ex officio or on the request of creditors in the commercial register or in the book of shareholders maintained by the company or by the Central Depositary.Section IITransformation by Take-Over, Merger, Splitting, Spinning OffTake-OverArticle 262(Amended, SG No. 58/2003)(1) In case of a take-over, the entire property of one or more companies (transforming companies) is transferred over to one existing company (receiving company), which then becomes their legal successor. Transforming companies shall be terminated without liquidation.(2) In the case referred to in paragraph (1), it shall not be possible to effect a simultaneous change in the legal form of the receiving company.MergerArticle 262a(New, SG No. 52/1998, amended, SG No. 58/2003)In case of a merger, the entire property of two or more companies (transforming companies) is transferred over to one newly established company, which then becomes their legal successor. Transforming companies shall be terminated without liquidation.SplittingArticle 262b(New, SG No. 58/2003)(1) In case of a splitting, the entire property of one company (transforming company) is transferred over to two or more companies, which then become its legal successors for the respective part. The transforming company shall be terminated without liquidation.(2) Companies onto which the property of the transforming company is transferred may be existing companies (receiving companies) in the case of splitting through acquisition, newly established companies in the case of splitting through establishment, and both existing and newly established companies at the same time.(3) It shall not be possible to effect a change in the legal form of the receiving company simultaneously with the splitting.Spinning OffArticle 262c(New, SG No. 58/2003)(1) In case of a spin-off, part of property of one company (transforming company) is transferred over to one or more companies, which then become its legal successor for that part of the property. The transforming company shall not be terminated.(2) Companies onto which the part of the property of the transforming company is transferred may be existing companies (receiving companies) in the case of spinning off through acquisition, newly established companies in the case of spinning off through establishment, and both existing and newly established companies at the same time.(3) It shall not be possible to effect a change in the legal form of the receiving company or of the receiving company simultaneously with the spinning off.Spinning Off a Sole-Owner CompanyArticle 262d(New, SG No. 58/2003)(1) In case of a spin-off of a sole-owner company, part of property of one company (transforming company) is transferred over to one or more sole-owner limited liability companies or sole-owner joint-stock companies (newly-established companies), whereby the transforming company then become the sole owner of their capital. This transformation may be effected simultaneously with a spin-off as referred to in Art. 262c.(2) To cases of spinning off a sole-owner company, the rules for spinning off by establishment shall apply, to the extent that this Act does not provide otherwise.Transformation Agreement and Transformation PlanArticle 262e(New, SG No. 58/2003)(1) Prior to taking a decision to transform, the receiving and/or transforming companies involved in such transformation shall enter into a transformation agreement.(2) The transformation agreement may be concluded also after the decision has been taken. In such a case the transforming and receiving companies shall prepare a draft agreement to which all rules concerning the transformation agreement shall apply. In the meaning of this section, the date of the draft agreement shall be considered to be a date of the transformation agreement.(3) In case of splitting by establishment, spinning off by establishment and spinning off of a sole-owner company, no agreement needs to be concluded. In this case, the transforming company shall prepare a transformation plan.Form of the Transformation Agreement and PlanArticle 262f(New, SG No. 58/2003)(1) The transformation agreement shall be executed by the persons representing the company, in writing, with notarized signatures.(2) Where a draft agreement is prepared, it must be drawn up in writing with notarized signatures of the persons representing each of the transforming and receiving companies.(3) The transformation plan shall be drawn up in writing with notarized signatures of the persons from the governing body of the company or of the partners with management rights in a personal company.Contents of the Transformation Agreement and PlanArticle 262g(New, SG No. 58/2003)(1) The transformation agreement deals with the method in which transformation is to be effected.(2) The transformation agreement shall contain, as a minimum, the following:1. (supplemented, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) the legal form or, respectively, the trade name, the standard identification code, as well as the address of each of the transforming and receiving companies ;2. the exchange ratio of the shares or interest stakes as determined as of a specific date;3. the amount of cash payments, if any have been envisaged pursuant to Article 261b, paragraph (2), and the time period within which payment must be made;4. a description of the interest stakes, shares or membership which each partner or shareholder acquires in the newly established and/or receiving companies;5. conditions regarding the distribution and transfer of shares in the newly established and/or receiving companies;6. the point in time as of which participation in the newly established and/or receiving company entitles to a share in the profits, and any specific terms related to such entitlement;7. the point in time as of which any action of the transforming companies shall be deemed effected for the account of the newly established or receiving companies for accounting purposes;8. the rights which the newly established or receiving companies grant to shareholders with special rights and to holders of securities other than shares;9. any privilege granted to the examiners referred to in Article 262m or to members of the governing and control bodies of companies involved in the transformation.(3) In addition to the dates referred to in paragraph (2), the transformation plan shall contain also:1. a precise description and allocation of rights and liabilities from the property of the transforming company which are transferred onto each newly established company;2. distribution of interest stakes, shares and membership in the newly established and/or transforming companies among partners or shareholders in the transforming companies and the criterion for such distribution.(4) The exchange ratio shall be determined as of a date which cannot precede by more than 6 months the date of the transformation agreement or plan, nor be later than the date of the transformation agreement or plan.Effect of the Transformation AgreementArticle 262h(New, SG No. 58/2003)(1) The transformation agreement shall take effect as from the time of its execution for each of the transforming and receiving companies. Where the agreement is not approved under the decision to transform any one of the participating companies, it shall be terminated. No liability for damages can be claimed in such a case.(2) Prior to the decision to transform, the agreement can be terminated by the governing body of the company. After the decision has been taken and prior to the registration of the transformation, the agreement can be terminated only by a decision taken by the respective majority vote as referred to in Article 262q.Report of the Governing BodyArticle 262i(New, SG No. 58/2003)(1) The governing body of each of the transforming and receiving companies shall prepare a written report on the transformation. For personal companies, the report shall be drawn up by the partners with management rights.(2) (Suplemented, SG No. 66/2005) The report referred to in paragraph (1) shall contain a detailed legal and economic rationale for the transformation agreement or plan, and particularly concerning the exchange ratio, and in the case of splitting of spinning off, concerning the criterion for distributing interest stakes and shares. The report must state data about the appointed examiner and the authorized depositary as referred to in Article 262x, and the difficulties that have emerged in the evaluation, if any. Where the newly established company is a capital company or an increase of the capital of the receiving company is to be performed, the report shall also contain data on the property, passing to this company, based on which the amount of the capital shall be established in compliance with Article 262r(3) and Article 262t(1).Presentation of the Agreement, Plan and Report in the CommercialRegister(Heading amended, SG No. 38/2006, effective 1.07.2007 - amended,in relation to becoming effective, SG No. 80/2006) Article 262k(New, SG No. 58/2003)(1) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The transformation agreement or plan and the report of the governing body shall be submitted for recordation in the Commercial Register; recordation thereof shall be carried out simultaneously for the merchant files of each transforming or receiving company.(2) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) Presentation of the documents referred to in paragraph (1) for the participating equity companies shall be recorded in the Commercial Register not later than 30 days prior to the date of the general meeting convened to take a decision on the transformation.Examination of the TransformationArticle 262l(New, SG No. 58/2003)(1) The transformation agreement or plan and the report of the governing body shall be reviewed by an examiner assigned for the purpose, for each transforming or receiving company.(2) (Amended, SG No. 58/2003, No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The examiner shall be appointed by the governing body or by the managing partners for each transforming or receiving company. Upon the joint request of the managing bodies, the registrar of the Recordation Agency may appoint a joint examiner for all transforming and receiving companies.(3) The examiner must be a registered auditor. The examiner may not be a person which ahs, over the past two years, been an auditor of the company which is appointing it or which has produced an evaluation of a in-kind contribution. The appointed examiner may not be elected auditor of any of the companies participating in the transformation for two years following the date of the transformation.(4) The examiner shall be provided with access to any information and written materials referring to any of the transforming and receiving companies which are relevant to the examiner's task.Examiner's ReportArticle 262m(New, SG No. 58/2003)(1) The appointed examiner shall draw up a report from the examination to the partners or the shareholders of the respective company. Where a joint examiner has been appointed, he shall prepare a joint report for all the companies.(2) The examiner' s report must include an assessment of whether the exchange ratio envisaged in the transformation agreement or plan is adequate and reasonable and indicate:1. methods used in determining the exchange ratio;2. the extent to which the use of these methods is appropriate and proper in that particular case;3. the values obtained when using each method, and the relative significance of each method in determining the value of the shares or interest stakes;4. particular difficulties in the evaluation, if any.(3) The examiner shall be liable to all companies participating in the transformation and to their partners and shareholders for any damages due to a non-performance of his obligations.Obligation to Provide InformationArticle 262n(New, SG No. 58/2003)(1) Prior to making the decision concerning the transformation, the following shall be made available to the partners and the shareholders:1. the transformation agreement or plan;2. the report of the governing body;3. the examiner's report;4. the annual financial statements and the activity reports of all transforming and receiving companies for the past three financial years, if any;5. the balance sheet as of the last of the month preceding the date of the transformation agreement or plan, unless the most recent annual financial statements refer to a financial year ended less than 6 months prior to that date;6. drafts of a new membership agreement or articles of incorporation of each of the newly established companies, or draft amendments to the articles of incorporation or membership agreement of each of the transforming and receiving companies, respectively.(2) The papers referred to in paragraph 1 shall be made available at the seat and address of equity companies within 30 days prior to the date of the general meeting. On request, a copy of the papers or summaries of these shall be made available to each partner or shareholder free of charge.(3) The time period referred to in paragraph 2 does not need to be observed if all partners or shareholders have voted for the transformation.(4) The governing bodies of each of the transforming or receiving companies shall be obliged to inform the general meeting of the partners or shareholders of any change in the property rights and obligations that has occurred between the drawing up of the transformation agreement or plan and the day of the general meeting. The governing bodies of the other transforming or receiving companies shall also be informed of such change, which shall be obliged to inform the general meetings of their companies.Decision to TransformArticle 262o(New, SG No. 58/2003)(1) The decision to transform shall be taken separately for each transforming or receiving company.(2) Under the decision to transform, the transformation agreement or plan shall also be approved.(3) If the general meeting has approved a draft transformation agreement, the governing body of the company shall be obliged to execute it only if this is expressly stipulated in the decision.(4) Under the decision to transform, the decisions envisaged in this section concerning all changes related to the transformation shall also be adopted.Majority Requirement in Taking the Decision to TransformArticle 262p(New, SG No. 58/2003)(1) A transformation of a general partnership or a limited partnership company shall be done upon the agreement of all partners given in writing with notarization of the signatures.(2) The decision to transform a limited liability company shall be taken by the general meeting of the partners by a majority vote of the capital.(3) The decision to transform a joint-stock company shall be taken by the general meeting of the shareholders by a majority vote of the represented shares with voting power. In case of shares from different classes, the decision shall be taken by the shareholders from each class.(4) To transform a partnership limited by shares, it is necessary to have a decision of the unlimited liability partners taken unanimously in writing with notarization of the signatures, and a decision of the general meeting of the shareholders taken by a majority vote of the represented shares with voting power.Consent to TransformArticle 262q(New, SG No. 58/2003)(1) Where as a result of a transformation a partner in a limited liability company or a shareholder becomes an unlimited liability partner, it is necessary to obtain his express consent.(2) The consent shall be considered to be given if the partner or shareholder has voted for the decision to transform. In this case the general meeting shall be attended by a notary public who shall draw up a memorandum establishing facts as referred to in Article 488a of the Code of Civil Procedure , a transcript of which shall be attached to the minutes from the general meeting.(3) If a partner or shareholder has not taken part in the taking of the decision, his consent may be given in writing with a notarization of the signature.Newly Established CompanyArticle 262r(New, SG No. 58/2003)(1) If in a transformation a new company is being established, under the decision of each of the transforming companies the membership agreement and/or articles of incorporation of each of the newly established companies shall be adopted and bodies shall be elected.(2) With the adoption of the decision referred to in paragraph 1, the requirements concerning the form of the membership agreement or articles of incorporation shall be considered met.(3) The size of the capital of a newly established company may not be larger than the net worth of the property being transferred onto the company in the transformation. Article 262t, paragraph 3 shall also apply, accordingly.(4) For the newly established company the rules for that specific type of company shall respectively apply.Amendment to the Membership Agreement or Articles of IncorporationArticle 262s(New, SG No. 58/2003)(1) Amendments to the membership agreement and/or articles of incorporation of a receiving company which are being made in the course of the transformation shall be adopted under the decision of each of the transforming companies and under the decision of that receiving company.(2) Amendments to the membership agreement and/or articles of incorporation of a transforming company shall be adopted under the decision to transform it.(3) With the adoption of the decision referred to in paragraphs 1 and 2, the requirements concerning the form of the membership agreement or articles of incorporation shall be considered met.Increase of CapitalArticle 262t(New, SG No. 58/2003)(1) The capital of a receiving company shall be increased for the purposes of effecting the transformation to the extent that is necessary in order to set up new interest stakes or shares for the partners and the shareholders of the transforming companies. The amount of the increase may not be larger than the net worth of the property that is being transferred onto that company in the transformation.(2) No increase of capital of a receiving company may be effected when:1. it holds its own shares, or2. a transforming company holds shares in the receiving company and they have been fully paid in.(3) No increase of capital of a receiving company may be effected when:1. it holds shares in a transforming company;2. a transforming company holds its own shares, or3. a transforming company holds shares in the receiving company and they have not been fully paid in.Examination of CapitalArticle 262u(New, SG No. 58/2003)(1) Where in a transformation an equity company is being established or an increase of capital of a receiving company is being effected, the examiners of all companies shall prepare, in addition to the report referred to in Article 262m, a joint report in which they shall check whether the conditions specified in Article 262r, paragraph 3 and Article 262t, paragraph 1 have been met.(2) The net worth of the property shall be established as the difference between the fair price of the rights and the obligations which, in the transformation, are transferred onto the newly established or receiving company.(3) In cases referred to in paragraph 2, the rules on equity contributions shall not apply.Reduction of CapitalArticle 262v(New, SG No. 58/2003)(1) If in a spinning off a reduction of the capital of the transforming company is effected, no payments to the partners and the shareholders may be made. The rules on protection of creditors shall not apply.(2) Paragraph 1 shall apply also where a receiving company reduces its capital for the purposes of effecting the transformation.Holders of Special RightsArticle 262w(New, SG No. 58/2003)(1) Holders of securities which are other than shares and give special rights must be provided with equivalent rights in the receiving or newly established companies after the transformation.(2) To the submission of securities referred to in paragraph 1, Article 262x shall apply.(3) Paragraph 1 shall not apply in case that the meeting of the holders of these securities, if one is provided for by the law, has agreed to the change of the rights attached to them or each holder has separately given his consent to change his right or may present his security holdings for redemption.Submission of the SharesArticle 262x(New, SG No. 58/2003)(1) After a decision to transform has been taken by all participating companies, the governing body of a receiving or newly established joint-stock company or partnership limited by shares shall submit to a depositary the temporary certificates or the shares which must be received by the partners or the shareholders of the transforming companies.(2) The depositary shall be a natural or a legal person authorized by the governing body of a separate transforming company. To relations between the depositary and the partners or the shareholders of the transforming company, the rules of an order contract shall apply. The depositary shall not exercise the rights attached to the shares submitted to him.(3) (Amended, SG No. 58/2003, No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) Following registration as per Article 263c, paragraph 1 and Article 263d, paragraph 1, the depositary shall be obliged to submit, within two months, the temporary certificates or the shares to the shareholders.(4) Any temporary certificates or shares not received within the time period set in paragraph 3 shall be returned to the managing body or the receiving or newly established company. Any bearer's shares not claimed within a period of one year shall be sold by the managing body whereas the rights of those which had been their holders shall be extinguished and proceeds shall be posted to the Reserve Fund. The one-year time period shall commence as from the expiry of the time period referred to in paragraph 3.(5) Where the partners or the shareholders of the transforming companies have to receive dematerialised shares, the governing body of a receiving or newly established company shall state before the Central Depositary the registration of the issue of shares, including the opening of accounts or the transfer of shares already issued. After the registration referred to in Article 263c, paragraph 1 and Article 263d, paragraph 1, the Central Depositary shall register the issue and distribute the shares among the accounts or register the transfer of the shares.Exchange of Bearer's SharesArticle 262y(New, SG No. 58/2003)(1) Holders of bearer's shares in a transforming company shall be named in the list of persons acquiring interest stakes, shares or membership in a newly established or receiving company, in the book of the shareholders kept by the company or by the Central Depositary, or in the commercial register, with an indication of the class and the numbers of shares held by them.(2) Where a holder of bearer's shares, prior to the declaration of the transformation for registration purposes, should deposit his shares with the company, he shall be indicated by name in the documents referred to in paragraph 1.(3) After the date of the transformation, any person may request in writing to be indicated by name in the book of the shareholders or in the commercial register by presenting the bearer' s shares held by him. Prior to such time, such person may not exercise the rights attached to the interest stakes, the shares or membership acquired in exchange of the respective bearer's shares, and they shall not be taken into the calculation when determining the necessary quorum and majority.Filing for the Purposes of Registering a Take-Over or a MergerArticle 263(Amended, SG No. 58/2003)(1) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The governing body of each of the transforming companies shall file, for the purposes of recordation in the Commercial Register, a statement of the take-over or merger. Enclosed with the application for recordation shall be the agreement on transformation and the decisions of all companies participating in the transformation.(2) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) In addition to the documents as per paragraph (1), the following shall be enclosed with the application for recordation:1. (repealed, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) .2. (repealed, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) .3. a transcript of the membership agreement and/or articles of incorporation of the receiving company, which includes all modifications and amendments, certified by the body which represents the company, if any such modifications and amendments have been made in the transformation;4. the adopted membership agreement and/or articles of incorporation of the newly established company and the documents necessary for the registration of the bodies elected;5. (repealed, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) .6. the examiners' reports;7. the expressions of consent under Article 262q;8. the list of persons acquiring shares, interest stakes or membership in a newly established or receiving company, the type of membership, and data concerning any existing pledges and attachments;9. the declaration of the depositories stating that they have been handed over the temporary certificates or the shares, or proof, respectively, that the circumstances referred to in Article 262x, paragraph 5 have been stated before the Central Depository.(3) (Repealed, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) .(4) The filing for registration for personal companies shall be made by each of the partners with management rights.Filing for the Purposes of Registering a Splitting or Spinning-OffArticle 263a(New, SG No. 58/2003)(1) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The governing body of the transforming company shall file for recordation of the splitting or spinning off in the Commercial Register. The following shall be enclosed with the application for recordation:1. the transformation agreement or plan and the decisions of all companies participating in the transformation;2. a transcript of the membership agreement and/or articles of incorporation of the receiving company, which includes all modifications and amendments, certified by the body which represents the company, if any such modifications and amendments have been made in the transformation;3. the adopted membership agreement and/or articles of incorporation of the newly established company and the documents necessary to register its bodies.(2) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) In addition to the documents as per paragraph (1), the following shall be enclosed with the application for recordation:1. (repealed, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) ;2. (repealed, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) ;3. a transcript of the membership agreement and/or articles of incorporation of the transforming company, which includes all modifications and amendments, certified by the body which represents the company, if any such modifications and amendments have been made in the transformation;4. (repealed, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) .5. the examiners' reports;6. the expressions of consent under Article 262q;7. the list of persons acquiring shares, interest stakes or membership in a newly established or receiving company, the type of membership, and data concerning any existing pledges and attachments;8. the declaration of the depositories stating that they have been handed over the temporary certificates or the shares, or proof, respectively, that the circumstances referred to in Article 262x, paragraph 5 have been stated before the Central Depository.(3) (Repealed, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) .(4) Filing for registration of a personal company shall be made by one or by all partners with management rights.Time Limit for Filing for RegistrationArticle 263b(New, SG No. 58/2003)(1) The filing referred to in Article 263, paragraph 2 and Article 263а, paragraph 2 may not be made later than 8 months after the date as of which the exchange ratio is established under the transformation agreement or plan. This time period may not be extended or renewed.(2) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) In cases where a law prescribes that permission for the transformation be obtained, in advance, from a government authority, the filing shall be made within the time period referred to in paragraph 1, and such permission shall be presented to the Commercial Register after it has been issued.Registration of a Take-Over or a MergerArticle 263c(New, SG No. 58/2003)(1) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The registration of a take-over or merger shall be made by the registrar in charge of the company file of the transforming, receiving or, resp., the newly established company, not earlier than 14 days after the date of filing. Subject to recordation shall also be any changes in the articles of association or the statutes, any change in the capital and changes in the persons managing and representing the receiving company, if any have been made in the transformation.(2) (Repealed, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) .(3) (Repealed, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) .Registration of Splitting and Spinning-OffArticle 263d(New, SG No. 58/2003)(1) (Amended and supplemented, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The registration of a splitting or spinning off shall be made by the registrar in charge of the company file of the transforming, receiving or, resp., the newly established company, not earlier than 14 days after the date of filing. Subject to recordation shall also be any changes in the articles of association or the statutes, any change in the capital and changes in the persons managing and representing the transforming or receiving company, if any have been made in the transformation. In the event of splitting, the transforming company shall be deleted.(2) (Repealed, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) .(3) (Repealed, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) .Refusal to Register the TransformationArticle 263e(New, SG No. 58/2003, repealed, No. 38/2006, effective 1.07.2007 -amended, in relation to becoming effective, SG No. 80/2006) .Notification of creditorsArticle 263f(New, SG No. 58/2003, amended SG No. 38/2006, effective 1.07.2007 -amended, in relation to becoming effective, SG No. 80/2006) From the moment of recordation, the creditors shall be deemed to have been notified as to their rights in pertinence to the transformation.Date of the TransformationArticle 263g(New, SG No. 58/2003)(1) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The transformation shall take effect as of the moment or recordation in the Commercial register.(2) The transformation agreement or plan may provide for an earlier date as from which the actions of the transforming companies are deemed as done for the account of the newly established or receiving companies for the purposes of accounting. This date may not precede by more than 6 months the date of the transformation agreement or plan.Closing and Opening Balance SheetsArticle 263h(New, SG No. 58/2003)(1) Each transforming company which is being terminated shall draw up a closing balance sheet as of the date of the transformation. A copy of the closing balance sheet shall be handed over to each of the receiving or the newly established companies.(2) Each newly established company shall draw up an opening balance sheet as of the date of the transformation on the basis of the balance sheet values of the assets and liabilities received through the transformation or on the basis of their fair value.(3) Where the transformation agreement or plan provides for an earlier date, according to Article 263g, paragraph 2, closing and opening balance sheets shall be drawn up as of such date.Transformation EffectsArticle 263i(New, SG No. 58/2003)(1) With the registration of the transformation under Article 263c, paragraph 1, or under Article 263d, paragraph 1, as the case may be, the newly established companies shall arise and the transforming companies be terminated, except for a transforming company in the case of splitting.(2) With the registration of a take-over or merger, the rights and the obligations of the transforming companies shall transfer onto the receiving or newly established company. The partners and the shareholders in the transforming companies shall become partners or shareholders in the receiving or in the newly established company.(3) With the registration of a splitting, the rights and the obligations of the transforming company shall transfer onto each receiving and/or newly established company in accordance with the distribution envisaged in the transformation agreement or plan. If a right has not been distributed it shall transfer onto all legal successors in proportion to such part of the net worth of the property that they are entitled to according to the transformation agreement or plan. The partners and the shareholders in the transforming company shall become partners or shareholders in one or more of the receiving or the newly established companies in accordance with the provisions in the transformation agreement or plan.(4) With the registration of a spinning-off, the rights and the obligations of the transforming company shall transfer onto each receiving and/or newly established company in accordance with the distribution envisaged in the transformation agreement or plan. The partners and the shareholders in the transforming company shall become partners or shareholders in one or more of the receiving or the newly established companies and/or retain their membership in the transforming company in accordance with the provisions in the transformation agreement or plan.(5) With the registration of a spinning off of a sole-owner company, the part of the rights and the obligations of the transforming company as envisaged in the transformation plan shall transfer onto the newly established company. The transforming company shall become the sole owner of the capital of the newly established company.(6) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) Where the property of a transforming company includes a property right of a real property or a movable asset transactions with which are subject to registration, the certificate of recordation as per Article 263c, paragraph 1 and Article 263d, paragraph 1 shall be submitted for recordation in the respective register. In case of a splitting or spinning off, the court decision shall enclose also the transformation agreement or plan.(7) In case of a splitting or spinning off, any grandfathered pending proceedings on cases shall continue in the legal successor of the litigant in accordance with the provisions made in the transformation agreement or plan. Where the transforming company is the respondent, the court shall ex officio summon as litigant all companies which are liable jointly and severally, according to Article 263l, paragraphs 1 and 2.(8) Any permits, licenses or concessions held by the transforming company, when it is terminated, shall transfer onto the receiving or the newly established company in the case of take-over or merger, and in the case of splitting they shall transfer onto the company identified under the transformation agreement or plan, to the extent that a law or the action of award does not provide otherwise.Protection of Creditors in a Take-Over or MergerArticle 263k(New, SG No. 58/2003)(1) (Amended and supplemented, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The receiving or the newly established company shall manage separately the property of each of the transforming companies transferred onto them for a period of 6 months from the moment of recordation of the transformation.(2) Within the time period under paragraph 1 each creditor of a company participating in the transformation whose claim has not been secured and has arisen prior to the date of the transformation may request execution or securitization according to its rights. If the request is not satisfied, the creditor shall be entitled to privileged satisfaction from the rights that used to belong to its debtor.(3) The members of the governing body of the receiving or the newly established company shall be liable jointly and severally before creditors for the separate management.Protection of Creditors in Splitting and Spinning-OffArticle 263l(New, SG No. 58/2003)(1) Concerning obligations which have arisen prior to the date of the transformation, joint and several liability shall be borne by all companies participating in the transformation except for those terminated. The liability of each company shall be up to the amount of rights received by such company except for the company to which the obligation is allocated under the transformation agreement or plan.(2) If, in the case of splitting, an obligation has not been distributed, joint and several and unlimited liability for that shall be borne by all receiving and/or newly established companies. Any payment to the creditor shall be borne by them in a proportion to the net worth of the property that they are entitled to according to the transformation agreement or plan.(3) In cases of splitting and spinning off, when a part of the property transfers onto one or more existing companies, the rules for separate management as referred to in Article 263k shall also apply for each of the receiving companies, respectively.(4) Where, in case of splitting by establishment, and of spinning off by establishment the amount of the capital of the transforming company has been larger than the total amount of the capital of all newly established companies, creditors with claims that have arisen prior to the date of the transformation may request securitization up to the amount of the difference in the capital. This shall apply also where any or all newly established companies are personal.Unlimited Liability in the Case of TransformationArticle 263m(New, SG No. 58/2003)(1) Unlimited liability partners in the transforming companies shall remain liable before the creditors for obligations that have arisen prior to the date of the transformation.(2) Where, in case of a transformation, a person becomes an unlimited liability partner in a receiving company, such person shall not be liable for the obligations of that company that have arisen prior to the date of the transformation.Prohibition on Discharging from an Obligationconcerning ContributionsArticle 263n(New, SG No. 58/2003)(1) Partners or shareholders in a transforming or receiving company shall not be discharged from the obligation concerning contributions which have nor been paid in full.(2) After the date of the transformation, contributions shall be due to the receiving or the newly established company in case of a take-over or merger, and in case of splitting or spinning off they shall be due according to the provisions in the transformation agreement or plan.Contending the TransformationArticle 263o(New, SG No. 58/2003)(1) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) Any partner or shareholder in a company participating in the transformation, as well as any company participating in the transformation, may, in the event of splitting or spinning off, file a claim with the court in the jurisdiction of which the seat of the transforming company is located, in order to ascertain that none of the following violations have been committed as a result of the transformation, no matter by which of the companies participating in the transformation:1. lack of a transformation agreement, draft of an agreement, plan or they are null and void;2. failure to meet the requirements of Article 262f, Article 262g, paragraph 2, subparagraphs 1, 2 and 8 and paragraph 3, Article 262i, Article 262k, Article 262l, paragraphs 2 and 3, Articles 262m - 262u and Article 262w, paragraph 1;3. the decision to transform contradicts prescriptive provisions of the law or the founding agreement, or the articles of incorporation of the company, as the case may be.(2) A non-equivalent exchange ratio is not grounds for filing a claim pursuant to paragraph 1.(3) The claim under paragraph 1 shall be lodged not later than the date of the transformation against all companies participating in the transformation except for the newly established. Any partner or shareholder may step into the proceedings and sustain the claim, even if the claimant should give it up or withdraw it.(4) (Amended and supplemented, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The filing of the claim as per paragraph (1) shall result in suspension of the transformation. The persons as per paragraph (1) shall notify the Recordation Agency of the filing of the claim. Recordation of the transformation shall be denied by force of the effective court decision sustaining the claim.(5) (Amended, SG No. 59/2007) The claim under paragraph 1 shall be considered according to the rules set out in chapter Thirty-Two "Proceedings on Commercial Disputes" of the Code of Civil Procedure. (6) The decision to transform may not be attacked by lodging a claim under Article 74.Nullity of a Newly Established CompanyArticle 263p(New, SG No. 58/2003)(1) (Amended, SG No. 66/2005) After the date of the transformation, one may request the pronunciation of nullity of the company newly established in the transformation by applying Article 70. Such a request may be lodged only by a partner or by a shareholder.(2) A partner or shareholder may request a pronunciation of nullity also where the general meeting which took the decision to transform has not been duly convened following the procedure established by law or envisaged in the membership agreement or articles of incorporation and he did not attend it.(3) The claim under paragraph 1 may not be lodged by a partner or shareholder which has take part in proceedings on a claim contesting the transformation and the claim has been rejected.Claim for Cash SettlementArticle 263q(New, SG No. 58/2003)(1) Any partner or shareholder may, within three months following the date of the transformation, lodge a claim for cash settlement with the regional court, if the exchange ratio adopted under the transformation agreement or plan is not equivalent.(2) The claim under paragraph 1 shall be lodged against the receiving or the newly established company in case of a takeover or merger. In case of splitting or spinning off, the claim shall be lodged against the company or companies in which the partner or shareholder participate after the transformation.Right to LeaveArticle 263r(New, SG No. 58/2003)(1) A partner in a limited liability company or a shareholder whose legal status is changing after the transformation and which has voted against the decision to transform may leave the company in which it has received interest stakes or shares. Termination of participation shall be effected under a notarized notice to the company within a period of three months after the date of the transformation.(2) The partner which has left shall have the right to receive the countervalue of its membership share or shares held prior to the transformation, according to the exchange ratio provided for in the transformation agreement or plan. The partner which has left may lodge a claim for cash settlement within a period of three months after the notice referred to in paragraph 1.(3) The interest stakes of the partner which ahs left shall be taken over by the remaining partners, offered to a third party or the capital shall be reduced by their amount. The shares of a shareholder which has left shall be taken over by the company and concerning them the rules for the acquisition of own shares shall apply, except for Article 187а, paragraph 4.Special rulesArticle 263s(New, SG No. 58/2003, amended, SG No. 66/2005) (1) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) Where all companies participating in the transformation are personal, Articles 262i - 262n shall not apply. Upon a request by a managing partner in one of the participating companies, the relevant registrar with the Recordation Agency shall appoint an examiner, which shall conduct an examination for all companies participating in the transformation. In this case, Articles 262l and 262m shall apply, respectively.(2) Where all transforming and receiving companies are sole proprietorships and the sole proprietor of the capital is one and the same person, the transformation shall take place based on the decision of the sole proprietor. Articles 262f and 262g shall respectively apply in regard to such decision. Articles 262h-262q and Articles 263o-263r shall not apply.(3) In the process of transformation by spinning-off of a single-person commercial company, no exchange ratio shall be determined and checked. Articles 261b, 262l and 262m shall not apply. This shall also be the case when merging a single-person commercial company into the sole proprietor of its capital. For more information visit www.solicitorbulgaria.com id: 293 Thu, 31 Jul 2008 04:45:09 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-commerce-act-part-2 http://web.solicitorbulgaria.com/index.php/bulgarian-commerce-act-part-2 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/COMMERCE_ACT1.jpg EUR http://web.solicitorbulgaria.com/index.php/bulgarian-commerce-act-part-2 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) PART ONEGENERAL PARTCHAPTER ONEGENERALMerchantArticle 1(1) (Amended, SG No. 83/1996) For the purposes of this Act a merchant shall mean any natural or legal person engaged by occupation in any of the following transactions:1. purchasing goods or other chattels for the purpose of reselling them in their original, processed or finished form;2. (amended, SG No. 83/1996) sale of one's own manufactured goods;3. (amended, SG No. 83/1996) purchasing securities for the purpose of reselling them;4. (amended, SG No. 83/1996) commercial agency and brokerage;5. (amended, SG No. 83/1996) commission, forwarding and transportation transactions;6. (amended, SG No. 83/1996) insurance transactions;7. (amended, SG No. 83/1996) banking and foreign-exchange transactions;8. (amended, SG No. 83/1996) bills of exchange, promissory notes and cheques;9. (amended, SG No. 83/1996) warehousing transactions;10. (amended, SG No. 83/1996) licence transactions;11. (amended, SG No. 83/1996) supervision of goods;12. (amended,… For more information visit http://www.solicitorbulgaria.com id: 294 PART ONEGENERAL PARTCHAPTER ONEGENERALMerchantArticle 1(1) (Amended, SG No. 83/1996) For the purposes of this Act a merchant shall mean any natural or legal person engaged by occupation in any of the following transactions:1. purchasing goods or other chattels for the purpose of reselling them in their original, processed or finished form;2. (amended, SG No. 83/1996) sale of one's own manufactured goods;3. (amended, SG No. 83/1996) purchasing securities for the purpose of reselling them;4. (amended, SG No. 83/1996) commercial agency and brokerage;5. (amended, SG No. 83/1996) commission, forwarding and transportation transactions;6. (amended, SG No. 83/1996) insurance transactions;7. (amended, SG No. 83/1996) banking and foreign-exchange transactions;8. (amended, SG No. 83/1996) bills of exchange, promissory notes and cheques;9. (amended, SG No. 83/1996) warehousing transactions;10. (amended, SG No. 83/1996) licence transactions;11. (amended, SG No. 83/1996) supervision of goods;12. (amended, SG No. 83/1996) transactions in intellectual property;13. (amended, SG No. 83/1996) hotel operation, tourist, advertising, information, entertainment, impresario and other services;14. (amended, SG No. 83/1996) purchase, construction or furnishing of real property for the purpose of sale;15. (amended, SG No. 83/1996) leasing.(2) Merchants are:1. companies;2. the cooperatives, except housing cooperatives.(3) Any person which has established a business, which in accordance with its purposes and volume requires that its activities be conducted on a commercial basis even if not listed under para 1, shall also be deemed a merchant.Persons Who Are Not MerchantsArticle 2The following shall not be deemed merchants:1. natural persons engaged in farming;2. artisans, persons providing services through their own labour or members of the professions, except where their activity may be defined as a business within the meaning of Article 1, para 3;3. persons providing hotel services by letting rooms in their own home.CHAPTER TWO(Repealed, SG No. 38/2006, effective 1.07.2007 - (*) amended, inrelation to becoming effective, SG No. 80/2006)COMMERCIAL REGISTERKeeping a Commercial RegisterArticle 3(Supplemented, SG No. 66/2005, repealed, No. 38/2006, effective1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) Obligation to RegisterArticle 4(Amended, SG No. 66/2005, repealed, No. 38/2006, effective 1.07.2007 -amended, in relation to becoming effective, SG No. 80/2006) Registration EffectArticle 4a(New, SG No. 84/2000, repealed, No. 38/2006, effective 1.07.2007 -amended, in relation to becoming effective, SG No. 80/2006) Public Nature of the Commercial RegisterArticle 5(Repealed, SG No. 38/2006, effective 1.07.2007 - amended, inrelation to becoming effective, SG No. 80/2006) Publishing of RegistrationArticle 6(Amended, SG No. 103/1993, supplemented, SG No. 66/2005, repealed,No. 38/2006, effective 1.07.2007 - amended, in relation to becomingeffective, SG No. 80/2006) CHAPTER THREETRADE NAME AND SEATDefinitionArticle 7(1) A trade name shall be the name under which a merchant shall carry on its business and under which it shall sign.(2) (Amended, SG No. 103/1993) In addition to the necessary content established by law, a trade name may also denote the purposes of a business, the names of the partners, and a freely chosen extension. A trade name must correspond to the truth, must not deceive, and must not be offensive to public order and morals.(3) (New, SG No. 103/1993) The merchant shall mandatorily inscribe its trade name in Bulgarian. It may additionally inscribe it in a foreign language.Trade Name of a BranchArticle 8The trade name of a branch shall incorporate the trade name of the merchant and the extension "branch".Trade Name During LiquidationArticle 9(Supplemented, SG No. 63/1994)The trade name of a merchant which has been declared in liquidation shall carry the extension "in liquidation", and upon declaration of bankruptcy - "in bankruptcy".Change of Trade NameArticle 10(1) A trade name may be changed upon an application by the merchant which has registered it.(2) Should a trade name contain the name of a retiring partner, it may be preserved only with that partner's consent.Exclusive RightArticle 11(1) A trade name may be used only by the merchant which has registered it.(2) In case of use of another's trade name the interested parties shall be free to seek an injunction, as well as damages for such use.Seat and Registered OfficeArticle 12(1) A merchant's seat shall be the community where its registered office is located.(2) A merchant's address shall be the address of its registered office.Obligation to Provide DataArticle 13(1) (Previous Article 13, SG No. 84/2000, supplemented, No. 66/2005, amended and supplemented, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) A merchant shall provide the following data on all its commercial correspondence and its web site if available: trade name; seat and registered office; standard identification code and bank account. A merchant may also provide a forwarding address. Where a commercial company shows the amount of its capital, it must also indicate what portion of it has been paid in.(2) (New, SG No. 84/2000, amended, SG No 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The company data shall be shown on the business correspondence of the branch.Change of SeatArticle 14(1) (Amended, SG No. 58/2003) (1) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) Any relocation of a merchant's registered office to another community shall be declared for entry into the commercial register.(2) (Repealed, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) .(3) (Repealed, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) .(4) (Repealed, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) .CHAPTER FOURENTERPRISES AND TRANSACTIONS WITH THEMTransactions With an EnterpriseArticle 15(1) An enterprise as a set of rights, obligations and factual relations shall be transferable by a transaction in writing with the signatures attested by a notary public. The transferor shall advise all creditors and debtors of the effected transfer.(2) (New, SG No. 58/2003) Where the entire enterprise of a company is transferred, such transfer shall require a decision taken in accordance with Article 262p.(3) (Renumbered from Paragraph 2, supplemented, SG No 58/2003) Absent another agreement with the creditors, upon the transfer of an enterprise the transferor shall be liable jointly and severally with the transferee. Creditors of recoverable liabilities shall first address the transferor up to the amount of rights obtained.RegistrationArticle 16(1) (Amended, SG No. 58/2003, No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The transfer of an enterprise shall be registered in the commercial register simultaneously in the files of both the transferor and the transferee.(2) (New, SG No. 58/2003, repealed, No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) .(3) (New, SG No. 58/2003, repealed, No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) .(4) (Amended SG 104/1996, renumbered from Paragraph 2, SG No. 58/2003) Should the contract transfer real property or another interest therein, the contract shall be registered with the recordation office as well.Provision of security for creditorsArticle 16a(New, SG No. 42/1999, amended, SG No. 58/2003)(1) (Amended and supplemented, No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The transferee shall manage separately the enterprise transferred onto it for a period of 6 months as from the registry entry of the transfer.(2) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) Within the lime limit referred to in paragraph (1), any creditor of the transferor or of the transferee holding a claim that has not been secured and has arisen prior to the date of registration of the transfer may request execution or securing, in compliance with their rights. If the request is not satisfied the creditor shall enjoy the right of privileged satisfaction from the rights that used to be held by its debtor.(3) Members of the governing body of the transferee shall be liable jointly and severally before creditors for the separate management.CHAPTER FIVEBRANCHESBranchArticle 17(1) A merchant may open a branch outside the community where its seat is located.(2) (Amended, SG No. 58/2003, No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) A branch shall be registered in the commercial register on the basis of a written application indicating:1. the seat and purposes of the branch;2. data concerning the person who manages the branch, and concerning the scope of his representation powers.(3) (Amended, SG No. 58/2003) The application referred to in paragraph (2) which shall enclose the notarized consent, with a signature specimen, of the person who manages the branch.(4) (Amended, SG No. 58/2003, supplemented, SG No. 66/2005, repealed, No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) .(5) (Amended, SG No. 58/2003, repealed, No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) .(6) (New, SG No. 58/2003, repealed, No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) .(7) (New, SG No. 58/2003, repealed, SG No. 66/2005) .Branch of a foreign personArticle 17a(New, SG No. 66/2005)(1) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) A branch of a foreign person registered with the right to engage in commercial activity in accordance with its national law shall be registered in the commercial register.(2) In addition to the data under Article 17(2), the application for registration shall also contain data on:1. The legal form and company or the name of the foreign person, as well as the branch name, if different from the one of the foreign person;2. the register and number, under which the foreign person was recorded, if provided for by applicable law;3. the law of the state, applicable to the foreign person, if different from the law of an EU Member State;4. persons, which represent the foreign person according to the register, where it was recorded, where such a register exists, the manner of representation, as well as the liquidators and receivers and their powers.(3) The following data shall also be recorded in the register:1. those under paragraph 2, as well as any change thereto, including of winding down of the branch;2. of dissolution of the foreign person, initiation of liquidation, continuation of activity, termination and conclusion of liquidation;3. regarding all acts of the bankruptcy court, which are recorded in the register, where on the foreign person was entered, as well as the resolutions under Article 759(1) and Article 760(3), if any;4. regarding striking out of the foreign person.(4) A transcript of the following shall be submitted to the register:1. the founding act, articles or statute of the foreign person, to contain all amendments and supplements, including after the registration of the branch;2. each annual financial statement of the foreign person, after it has been registered or delivered in accordance with the legislation of the country, where it was registered.Relocation of a BranchArticle 18The rules pertaining to a merchant shall apply mutatis mutandis to the seat and registered office of a branch and its relocation.Account Books of a BranchArticle 19A branch shall keep its account books as an independent merchant, without preparing a separate balance sheet. The branch of a legal person which is not a merchant within the meaning of this Act and the branch of a foreign person shall further prepare a balance sheet.JurisdictionArticle 20Actions based on disputes arising from a direct relationship with a branch may be brought against the merchant at the seat of the branch as well.CHAPTER SIXAGENCYSection IDirect AgencyProcurator (Manager)Article 21(1) (Amended, SG No. 70/1998) A procurator shall be a natural person commissioned and authorized by a merchant to manage its enterprise for compensation. Such authority may be given to more than one person for either a separate or joint exercising of the procuration. The signatures on the procurator's mandate (procuration) shall be notarized and it shall be submitted by the merchant for registration in the commercial register together with a specimen signature of the procurator.(2) A procurator shall sign by adding his own name to the merchant's trade name and an extension indicating the procuration.Procurator's PowersArticle 22(1) A procurator shall be entitled to perform or effect any acts or transactions related to the carrying on of the business activities, to represent the merchant, and to authorize third parties to perform specific acts. He may not authorize third parties with those of his powers which are derived by operation of law.(2) A procurator may not alienate or encumber any real property of the merchant except when expressly authorized to do so. The authorization may be restricted to the business of a single branch. No other restrictions shall be binding upon third parties.Relationship Between Merchant and ProcuratorArticle 23The relationship between a merchant and a procurator shall be governed by an agreement.Binding Effect of Authorization upon Third PartiesArticle 24An authorization shall be binding upon third parties only after being registered in the commercial register.Termination of AuthorizationArticle 25(1) An authorization shall be terminated upon withdrawal by the merchant, and the registration of such withdrawal in the commercial register.(2) An authorization shall not be terminated by virtue of a merchant's death or placing under judicial disability.AgentArticle 26(1) An agent shall be a person authorized by a merchant to perform, for compensation, the acts set forth in the mandate. Absent any other instructions, an agent shall be deemed authorized to perform all acts related to the merchant's usual business. The authorization shall be made in writing and the signature shall be notarized.(2) An agent shall need express authorization to alienate or encumber real property, to accept bills of exchange, to obtain a loan, or to engage in litigation. Any other restrictions on its mandate shall be binding upon a third party only if that party new or ought to have known of such restrictions.(3) An agent may not transfer its powers to a third party without the merchant's consent.(4) An agent shall sign by adding its own name to the trade name and an extension indicating the agency.Relationship Between Merchant and AgentArticle 27The relationship between a merchant and an agent shall be governed by an agreement.Termination of the MandateArticle 28The authorization of an agent shall be terminated in accordance with the provisions of civil law.Restrictions and LiabilityArticle 29(1) A procurator or agent may not, without the merchant's consent, effect commercial transactions either on their own behalf or on the behalf of a third party within the framework of their authorization. Consent shall be deemed given if at the time of authorization the merchant knew of the carrying on of such activities and their termination was not agreed upon expressly.(2) In case of a breach of the obligations set forth in the preceding para the merchant shall be entitled to seek damages or to state that the transactions effected by the authorized persons have been effected on its behalf. The statement shall be made in writing not later than one month of its becoming aware of the transaction, but not later than one year of the effecting of the transaction, and shall be addressed to the procurator or agent and to the third party.(3) Actions pursuant to para 2 shall expire by limitation after five years from the date the transaction was effected.Shop AssistantArticle 30(1) The relationship between a merchant and its assistant shall be governed by a contract.(2) A shop assistant may not effect transactions on the merchant's behalf. When working in a generally accessible sales area, a shop assistant shall be deemed authorized to effect the transactions which are usually effected in such an area.RestrictionsArticle 31A shop assistant may not engage in any commercial activity independently or on the behalf of third parties in competition with his employer, except with the latter's express consent.Section IISales RepresentativeDefinitionArticle 32(1) A sales representative shall be a person engaged independently and by occupation in assisting the business of another merchant. A sales representative may be authorized to effect transactions in the name of the merchant, or in its own name but on the behalf of the merchant.(2) (Supplemented, SG No. 38/2006) The contract between the merchant and the sales representative shall be executed in writing. The merchant may not refer against a sales representative to agreements in deviation of the provisions of Articles 33, 34, Article 36, Paragraph (4) and (5) and Article 40 that stand to the detriment of said representative.Sales Representative's ObligationsArticle 33(1) (Amended, SG No. 83/1996, previous Article 33, SG No. 38/2006) A sales representative shall cooperate or effect transactions with due care, taking into consideration the merchant's interests. It shall forthwith notify the merchant of any transaction effected by it.(2) (New, SG No. 38/2006) The sales representative shall be obligated to follow the instructions of the merchant, providing said merchant with the entire information at his/her disposal in relation to the activity thereof.Merchant's ObligationsArticle 34(1) (Amended and supplemented, SG No. 38/2006) The merchant shall be obligated to provide the trade representative the necessary information and documents for conclusion and execution of the commissioned deals.(2) (Supplemented, SG No. 38/2006) The merchant shall be obligated to promptly notify the trade representative whether said merchant accepts the deal concluded without authority of representation, as well as whether he has concluded a deal prepared thereby.(3) (New, SG No. 38/2006) The merchant shall be obligated to provide the trade representative with the information necessary for the implementation of the activity thereof, including of possible considerable reduction of volume of concluded deals as compared to the expected.Commission Under Del Credere ContractsArticle 35A sales representative which undertakes to be personally liable for the performance of obligations under effected transactions shall be entitled to an additional commission which shall be agreed upon in writing. The parties may not agree in advance that no such commission shall be owed.Right to CommissionArticle 36(1) (Amended and supplemented, SG No. 38/2006) A sales representative shall be entitled to a commission for all transactions effected by it or through its assistance during the term of its contract with the merchant. A commission shall also be paid for transactions prepared but not concluded, except in the cases where this is due to a reason for which the merchant may not be faulted.(2) Where a sales representative is entrusted with a specified territory or circle of clients, it shall also be entitled to a commission for all transactions concluded without its assistance, but with persons from the same territory or with the same clientele.(3) A sales representative shall be entitled to a commission for any of the merchant's claims which it has collected.(4) (New, SG No. 38/2006) The merchant shall be obligated to provide the sales representative the information necessary for calculation of the commission due no later than the time limit referred to in Article 38.(5) (Renumbered from Paragraph (4), supplemented, SG No. 38/2006) Either party shall be entitled to request from the other abstracts from the account books concerning the transactions concluded on the basis of the agency agreement, including those that are necessary to check the commission determined.Commission RateArticle 37(Supplemented, SG No. 38/2006) Where the commission has not been agreed upon, it shall be deemed to amount to the customary rate paid for the specific activities. If the customary rate cannot be established, the commission shall be determined by the court according to merit.Commission Payment TermArticle 38(Amended and supplemented, SG No. 38/2006) A sales representative's commission shall be paid on a monthly basis. The contract may specify another term for the payment of the commission, but not longer than the end of the month following the quarter during which the relevant transaction was concluded or has to be concluded.Reimbursement for Customary ExpensesArticle 39A sales representative shall be entitled to reimbursement for the customary expenses related to its activities, unless the agreement provides otherwise.Compensation and Commission upon DissolutionArticle 40(Amended, SG No. 103/1993, SG No. 38/2006) (1) A sales representative, respectively the heirs thereof in the case of his/her death, shall be entitled to a compensation upon termination of agreement when the merchant continues to enjoy benefits from the clientele established by the sales representative or the latter has considerably increased the volume of transactions concluded therewith. The right to such compensation shall be judged in view of all circumstances, including the existence or absence of restrictive commercial clauses.(2) Such compensation shall be equal to the annual commission of the sales representative, calculated on the basis the sales representative's average annual commission for the entire duration of its agreement, but for not more than the last five preceding years.(3) The compensation referred to in Paragraph (2) may not be claimed when:1. more than one year has expired following the termination of the contract without the sales representative having informed the merchant in writing of claiming the compensation due.2. the contract is rescinded at the fault of the trade representative or has been terminated unilaterally by the trade representative pursuant to Article 47 (1) or (2), except where this has occurred as a result of the permanent incapacitation or age thereof.3. the trade representative has transferred the legal relationship to another person, including with the agreement of merchant.(4) Upon termination of contract the sales representative may claim compensation for already concluded or prepared for conclusion deals.(5) The sales representative shall not be entitled to a commission under Article 36 where pursuant to Paragraph (4) it is due to a previous trade representative, except in the cases where according to circumstances the commission should be divided between the two.Restrictions Following Termination of ContractArticle 41(1) Any restrictions on the activities of a sales representative subsequent to the termination of the agreement shall be agreed upon in writing.(2) Restrictions must encompass the same territory and type of goods or services as the agency agreement. They may not be for more than two years following the termination of the contract. The merchant shall owe a respective compensation for the period of restriction.(3) Should a sales representative declare the agreement avoided through a fault of the merchant, the sales representative shall be free to discharge itself from the said restrictions not later than one month from the date of the avoidance.Effect of RestrictionArticle 42Even when not authorized to conclude contracts a sales representative may accept acts performed by third parties to protect their rights against imperfect performance by the merchant. A sales representative may act to secure evidence in name of the merchant. Any restriction on these rights shall be binding upon third parties only if they knew or ought to have known of the said restriction.Ratification of ContractArticle 43Should a sales representative conclude contracts without authorization, and the third party did not know of that fact, the contract shall be deemed ratified by the merchant if the merchant fails to reject it upon being notified of it by the sales representative or the third party and inform them correspondingly.Prohibition on Representation of CompetitorsArticle 44A sales representative may represent several merchants as long as they are not in competition among themselves. It may reach agreement with a merchant to be its exclusive sales representative.Scope of AgencyArticle 45The subject and territory of a sales representative shall be determined by the agency agreement.Relationship Between Merchant and Sales RepresentativeArticle 46(1) The internal relationship between the sales representative and the merchant shall be governed by the agreement between them. Absent any other provision, a sales representative shall arrange for its own premises. If the compensation is not indicated in the agreement, the customary compensation for the type of representation shall be due.(2) Representation under the preceding paragraph may not be delegated to another party in the same territory.(3) A sales representative shall indicate in the documents issued by it and on its commercial correspondence the information required under Article 13.Termination of RepresentationArticle 47(1) (New, SG No. 103/1993, amended, SG No. 38/2006) Where the sales representation agreement has been concluded for an indefinite term, during the first year any of the parties thereto may terminate it with a month's prior notice, within the second year - with a two month's prior notice, and within the third year - with a three months' prior notice, the parties thereto being unable to negotiate shorter terms. Where a longer period of prior notice has been agreed, that period should be identical for both parties. If not otherwise agreed, the termination of the agreement shall be effective from the end of the calendar month in which the term of prior notice has expired.(2) (New, SG No. 103/1993) An agreement which has been concluded for a definite period may be terminated before its expiration if the party wishing to terminate it compensates the other party for the damages caused.(3) (New, SG No. 103/1993) The rights of the sales representative under Article 40 may not be prejudiced by the termination pursuant to paras 1 and 2.(4) (New, SG No. 38/2006) In case following the expiry of contract for trade representation both parties continue to fulfil their obligations there under, said contract shall be considered extended for an indefinite term. In this case, when determining the term of prior notice referred to under Paragraph (1) the duration of the contract prior to the expiry of its term shall also be taken into consideration.(5) (Renumbered from Paragraph (1), SG No. 103/1993; renumbered from Paragraph (4), amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) A sales representative that has ceased activity shall apply, within the time limit set forth in Article 4, for expungement of entry into the commercial register.(6) (Repealed, renumbered from Paragraph (5), amended, SG No. 38/2006, effective 1.07.2007 - amended in relation to becoming effective, SG No. 80/2006) Should a representation be terminated by reasons of death or placing under disability of the sales representative, the heirs or, respectively, the guardian, and in case of bankruptcy the respective court, shall be obligated to request expungement from commercial register.ApplicabilityArticle 48The provisions of Articles 32 to 47 shall not apply to persons engaged as representatives or brokers in stock exchange transactions, or as representatives of persons engaged in auction operations.Section IIIBrokerDefinitionArticle 49(1) A broker shall be a merchant which by occupation acts as an intermediary so that transactions may be entered into.(2) (Amended, SG No. 86/1996) As far as brokerage for contracts for the carriage of goods by sea and for stock exchange transactions are concerned, the provisions for the said activities shall apply even when the brokerage is performed by a mercantile broker.Broker's JournalArticle 50(1) A broker shall keep a journal in which it shall record on a daily basis all executed contracts. At the end of each day the broker shall date and undersign all entries for that day.(2) Contracts shall be recorded consecutively in the order of their execution; an entry shall include the names of the contracting parties, the time of execution of the contract and the essential arrangements.(3) A broker must, upon request, provide the parties with an abstract from its journal containing the full entry concerning their contract.BrokerageArticle 51A broker shall be entitled to a commission from one or both parties in accordance with the arrangement reached. Absent such an arrangement, the customary brokerage for the type of transaction in the specific circumstances shall be owed by both parties.Section IVTrade Secrets(Title new, SG No. 103/1993)Obligation to Protect Trade Secrets(Title amended, SG 103/1993)Article 52In carrying on their activities a procurator, an agent, a shop assistant, a sales representative and a broker must protect the trade secrets of the persons which have commissioned them to perform certain acts, as well as their good name as merchants.CHAPTER SEVENACCOUNT BOOKSObligation to Keep AccountsArticle 53(1) A merchant shall keep accounts in which it shall record the movements of its enterprise's property. Such movements shall be recorded in chronological order.(2) A merchant shall, through inventory performed within the time periods prescribed by the Accountancy Act , establish the availability and value of the items of the assets and liabilities of its enterprise's property.(3) (Supplemented, SG No. 66/2005) A merchant shall sum up the results of its commercial activities on the basis of the entries in its books and inventory, and prepare an annual financial statement and, where necessary, the relevant accounting notes. In the instances, provided for by law, the annual financial statement shall be verified by a certified public accountant.Continuity Of Opening and Closing Balance SheetArticle 54The opening balance sheet for each year shall correspond to the closing balance sheet for the preceding year. A balance sheet shall also be prepared when a merchant winds up its activities.Admissibility as EvidenceArticle 55(1) Regularly kept account books and entries therein shall be admissible as evidence between merchants for establishing commercial transactions.(2) Account books kept in violation of the provisions of this Act or the Accountancy Act shall be inadmissible as evidence in favour of the party whose duty it is to keep them.PART TWOTYPES OF MERCHANTSDIVISION ONESOLE PROPRIETORCHAPTER EIGHTNATURAL PERSON MERCHANTDefinitionArticle 56Any natural person possessing capacity whose domicile is in the country may register as a sole proprietor.RestrictionsArticle 57Ineligible to be a sole proprietor shall be a person:1. who is bankrupt and his rights have not been restored;2. (amended, SG No. 63/1994) who has intentionally gone bankrupt and has left unsatisfied creditors.3. (new, SG No 63/1994) who has been convicted for bankruptcy.RegistrationArticle 58(1) A sole proprietor shall be registered on the basis of an application which shall state:1. the name, domicile, address and Unified Civil Code (EGN);2. the trade name under which the activities shall be carried on;3. the seat and the address of the registered office;4. the purposes of the business.(2) A specimen of the merchant's signature and an affidavit stating that the person has not been deprived of the right to carry on commercial activities shall be attached to the application.(3) (New, SG No. 124/1997) Entered in the register shall be all data specified under para 1.(4) (Renumbered from Paragraph 3, SG No. 124/1997) A person may register only one trade name as a sole proprietor.Trade Name of Sole ProprietorArticle 59A sole proprietor's trade name shall incorporate without abbreviation the person's given name and either the surname or patronymic by which he is generally known.Transfer of Trade NameArticle 60(1) A sole proprietor's trade name may be transferred to a third party only together with his enterprise. The consent to transfer a trade name shall be given in accordance with Article 15, para 1.(2) A sole proprietor's heirs, on acquiring the enterprise, shall be free to retain its trade name.(3) In cases under the preceding paragraphs the new owner's name shall be added to the trade name.(4) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The transfer shall be registered in the commercial register.Deletion from the RegisterArticle 60a(New, SG No. 84/2000)The registration of a sole proprietor shall be deleted from the commercial register:1. (amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) upon termination of the sole proprietor's activity or establishing his/her residence abroad - upon a written request from said sole proprietor;2. (amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) in case of the sole proprietor's death - upon an application from the heirs;3. (amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) in case of legal disability of the sole proprietor - upon an application from the guardian or the trustee.DIVISION TWOSTATE - OWNED AND MUNICIPAL ENTERPRISECHAPTER NINEPUBLIC ENTERPRISE MERCHANTStatusArticle 61A state-owned and municipal enterprise shall be either a single person limited liability company or a single person joint-stock company. State-owned and municipal enterprises may also form other companies or groups of companies.FormationArticle 62(1) State-owned enterprises shall be formed as or transformed into single person limited liability companies or single person joint-stock companies pursuant to a procedure to be established by a law.(2) Municipal enterprises shall be formed as or transformed into single person limited liability companies or single person joint-stock companies through a resolution of the municipal council.(3) State-owned enterprises which are not companies may be formed with a law.DIVISION THREECOMPANIESCHAPTER TENGENERALDefinitionArticle 63(1) A company is an association of two or more persons for effecting commercial transactions with joint means.(2) In cases provided by a law a company may be incorporated by one person.(3) Companies shall be legal persons.Types of CompaniesArticle 64(1) The types of companies are:1. general partnership;2. limited partnership;3. limited liability company;4. joint-stock company;5. partnership limited by shares.(2) Only the companies set forth in this Act may be established.(3) (New, SG No. 58/2003) Companies referred to in paragraph (1), subparagraphs (1) and (2) shall be personal, and those in subparagraphs (3) through (5) shall be equity companies.(4) (Renumbered from Paragraph 3, amended, SG No. 58/2003) Under a law it may be envisaged that a certain activity can be performed only by a certain type of companies.Partners in a CompanyArticle 65(1) A company's founders shall be Bulgarian or foreign natural or legal persons possessing capacity.(2) A person may participate in one or more companies to the extent such participation is not prohibited by law.(3) (New, SG No. 84/2000) Whenever a company participates in another company, its rights of associate or single owner shall be exercised by the person entitled to represent the company or by an expressly authorized person.Preliminary Agreement to Form a CompanyArticle 66Persons wishing to form a company may reach agreement on the acts which must be performed so that the incorporation may be prepared. For a breach of obligations based on that agreement the parties shall be liable only for the actual damages caused.Formation of a CompanyArticle 67A company shall be deemed formed on the date of its registration in the commercial register. The application for registration shall be filed by the appointed managing organ.Interpretation of the Articles of AssociationArticle 68The will of the parties and the objective of the interpreted provision shall be taken into account when interpreting the Articles of Association.Liability for Acts Performed by the Company Prior to RegistrationArticle 69(1) Any acts by the founders performed in the name of the as yet unincorporated company prior to the date of its registration shall create rights and obligations for the persons who have carried out the said acts. When transactions are effected it shall mandatorily be noted that incorporation is pending. The persons who have effected the transactions shall be liable jointly and severally for undertaken obligations.(2) When the transaction has been effected by the founders or a person authorized by them, the rights and obligations shall be transferred ex lege to the incorporated company.Voidability of Incorporated CompanyArticle 70(1) (Amended, SG No. 84/2000) The incorporation of a company shall be voidable only when one of the following violations has been made:1. there is no constitutive agreement or the constitutive agreement has not been concluded in the form prescribed by the law;2. the provisions of article 159 and article 163 have not been complied with, in the case of a joint-stock company or a partnership limited by shares;3. (supplemented, SG No. 66/2005, repealed, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) .4. the purpose of the company contradicts law or good morals;5. the constitutive agreement or the articles of incorporation does not contain the name, the purpose of the company or the size of the contributions, as well as the capital, when required by law;6. the part of the capital prescribed by law has not been paid in;7. a smaller number of persons possessing capacity than provided by the law have participated in the incorporation of the company.(2) (Amended and supplemented, SG No. 84/2000, supplemented, SG No. 58/2003, amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) Any interested party, as well as the public prosecutor, may request from the district court of the company's registered office that the company be declared void within one year after the establishment of the company and where the incorporation had been subject to promulgation, after such publication. In the cases under Items 4, 5 and 6 of Paragraph (1), the court shall declare a company void only if the violation has not been already eliminated or cannot be eliminated in a suitable period given by the court in a resolution.(3) (Supplemented, SG No. 66/2005, amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The court's judgement to declare the company void shall be effective from the date of entry into force. As of that moment the company shall be deemed terminated and the court shall send the judgement for entry into the commercial register, after which liquidation shall be carried out by a liquidator appointed by the official on registration with the Registry Agency.(4) (New, SG No. 58/2003, repealed, No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) .(5) (Renumbered from Paragraph 4, SG No 58/2003) Where acts in the name of the company declared void have been carried out, the founders shall be liable jointly and severally and their liability shall be unlimited.(6) (New, SG No. 84/2000, renumbered from Paragraph 5, SG No 58/2003, amended, SG No. 59/2007) Article 605 of the Code of Civil Procedure does not apply to the incorporation of a company.Protection of PartnershipArticle 71Any partner in a company may bring an action to the district court of the company's seat to protect its right to be a partner and its individual rights as a partner, when these have been violated by the company's organs.Non-Monetary ContributionsArticle 72(1) Should a partner or, respectively, a shareholder, make a non-monetary contribution, the articles or, respectively the Articles of Association, shall state the name of the contributor, a full description of the non-monetary contribution, its monetary value, and the grounds for the contributor's rights.(2) (Supplemented, SG No. 103/1993, amended and supplemented, SG No. 84/2000, supplemented, No. 66/2005, amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The contribution in a limited liability company, a joint-stock company or a partnership limited by shares shall be valued by three independent experts appointed by the official on registration with the Registry Agency. The conclusion of the experts shall contain a full description of the non-monetary contribution, the method of valuation, the resulting valuation and its consistence with the amount of the share of the capital or the number, the nominal and issuing value of the shares subscribed by the contributor. The conclusion shall be presented at registration in the Commercial Register with the application for entry.(3) (New, SG No. 84/2000, amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The valuation stated in the articles or, respectively, the Articles of Association, shall not be higher than the valuation assigned by the experts.(4)(Renumbered from Paragraph 3, SG No 84/2000) Should the contributor not agree with the valuation, it may participate in the company with a monetary contribution or withdraw from participation in the company.(5) (Renumbered from Paragraph 4, SG No 84/2000) The contribution may not have as a subject future labour or services.Paying Up of Non-Monetary ContributionsArticle 73(1) The contribution of a right for the creation or transfer of which a notarial form is required shall be effected with the articles. For contributions to a joint-stock company the consent in writing of the contributor and a description of the contribution with a notarized signature shall be attached to the Articles of Association.(2) The contribution of any other rights shall be made pursuant to the form the law provides for their creation or transfer.(3) ( Supplemented, SG No. 84/2000) The contribution of a claim shall be made with the articles or, respectively, the Articles of Association, and the contributor shall attach evidence of having notified the debtor of the transfer of the claim. The requirement for notification does not apply when the claim is against the company itself.(4) Title to a contribution shall be acquired from the moment of the company's formation.(5) (Amended SG 104/1996) Where a contribution has as a subject a real right over real property, the respective organ of the company shall, after such right has arisen, present an abstract of the articles, certified by a recordation judge, for recording in the recordation office and, whenever necessary, separately the contributor's consent as well. Such organ shall present an abstract of the Articles of Association certified by a recordation judge and the contributor's consent. In making the recording the recordation judge shall ascertain the contributor's rights.Remission and Set-Off BanArticle 73a(New, SG No. 84/2000)The obligations of the partners in a limited liability company and of the stock-holders for contributions to the capital shall not be remitted except when reduced, nor offset.Concealed Non-Monetary ContributionArticle 73b(New, SG No. 84/2000)(1) When a joint-stock company, within a 2-year period of its incorporation, acquires rights at a price exceeding 10 per cent of the capital, from a person who has subscribed shares at the incorporation of the company, this will require a decision of the General Meeting of the Shareholders and art. 72, paragraph 2 shall apply to the transferred rights.(2)(Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The transaction shall have effect after entry of the decision of the General Meeting in the Commercial Register.(3) Paragraphs 1 and 2 shall not apply to rights acquired in the course of the company's usual activity, on the stock exchange or under the supervision of an administrative or judiciary body.Payments to Partners and ShareholdersArticle 73c(New, SG No. 58/2003)Payments to partners and shareholders arising from participation stakes or shares in a company which have been pledged or placed under an attachment shall be made if the creditor which holds such pledge or attachment does not object within one month following a written notice. In the case of an objection, the amount due shall be deposited with a bank to secure the creditor.Repeal of a Resolution of the Company's General MeetingArticle 74(1) Every partner or shareholder may bring an action before the district court of the company's seat for the repeal of a resolution of the general meeting when such resolution is inconsistent with a mandatory provision of the law or with the articles or, respectively, the Articles of Association of the company. The action shall be brought against the company.(2) The action shall be brought within 14 days of the date of the meeting when the plaintiff was present or was duly notified, or otherwise within 14 days of learning of the resolution, but not later than three months after the date of the general meeting.(3) A partner or shareholder may intervene in a proceeding in accordance with the provisions of the Code of Civil Procedure. It may carry on the proceedings even after the withdrawal of the original plaintiff.(4) (New, SG No. 59/2007) The action shall be examined according to the procedure established by Chapter Thirty-Three "Proceedings on Collective Actions" of the Code of Civil Procedure, where the contested resolution has been passed by the general meeting of a joint-stock company with issued bearer shares or by an investment company of the open-end type. Exclusion from participation shall not be admitted in this case.Subsequent Voiding of Annulled ResolutionArticle 75(1) The instructions given by the court in repealing a general meeting resolution concerning the interpretation of the law, the memorandum of association or the Articles of Association shall be binding on the general meeting whenever it discusses the same issue again.(2) Resolutions or acts by the company's organs which are in contravention of an effective court ruling are null and void. Each partner or shareholder may at any moment refer to such nullity or request its proclamation by the court.CHAPTER ELEVENGENERAL PARTNERSHIPSection IGeneral ProvisionsDefinitionArticle 76A general partnership shall be a company formed by two or more persons for the purpose of effecting commercial transactions by occupation under a joint trade name. The partners shall be liable jointly and severally and their liability shall be unlimited.Trade NameArticle 77The trade name of a partnership shall consist of the surnames or trade names of one or more of the partners with the extension "sabiratelno druzhestvo" [general partnership] or "sadruzhie" ("s-ie") [partners].Content of Articles of PartnershipArticle 78A partnership's articles shall be drawn up in writing with notarized signatures of the partners and shall state:1. (amended and supplemented, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) the name and domicile or, respectively, the trade name, the seat and standard identification code, as well as the address of each partner;2. (amended, SG No. 103/1993, supplemented, SG No. 124/1997) the trade name, the seat, the head-office address, and the purposes of the partnership;3. the type and amount of each partner's contribution and the valuation thereof;4. the manner of distribution of profits and losses among the partners;5. (amended, SG No. 103/1993) the manner of management and representation of the partnership.Registration of the General PartnershipArticle 79(1) The application for registration of the general partnership in the commercial register shall be signed by all partners and the articles of partnership shall be attached to it.(2) Registered in the register shall be the information under Items 1, 2 and 5 of the preceding article.(3) The persons authorized by the articles of partnership to represent the partnership shall submit specimen signatures.Section IIPartners' Legal RelationshipsPrimacy of the Articles of PartnershipArticle 80The partners' legal relationships shall be governed by this Section, unless the articles of partnership provide otherwise, with the exception of the provision of Article 87.Compensation for Expenses and DamagesArticle 81(1) A partner shall be entitled to reimbursement for necessary expenses incurred in the course of the partnership's business and to compensation for damages suffered in connection with such business.(2) The partnership shall pay the interest as set by law on such expenses incurred or damages suffered by a partner.Obligation to Pay InterestArticle 82A partner which is in arrears in paying its monetary contributions or receives or, respectively, takes partnership money for itself without being entitled to do so, shall owe the partnership the repayment of all such moneys and the interest as set by law. Should the damages for the partnership be greater, the partnership may seek compensation for the balance.Prohibition on CompetitionArticle 83(1) (Supplemented, SG No. 103/1993) A partner may participate in another company or enter into transactions related to the purposes for which the partnership was set up, on its own account or on account of a third party, only with the consent of the other partners.(2) (Amended, SG No. 103/1993) In case of a violation of para 1 the partnership may request compensation for the damages suffered or state that it shall assume the rights and obligations under the concluded transactions. The statement must be made in writing within one month of acquiring knowledge of the transaction, but not later than one year of its conclusion, and be forwarded to the partner and the third party.(3) The right to an action pursuant to the preceding paragraph shall expire after three months from the date of the partners' becoming aware of the said act, or after three years of the commitment of the said acts when the partners have no knowledge of them.ManagementArticle 84(1) Each partner shall be entitled to take part in the management of the partnership's business, except when management has been assigned with the articles of partnership to one or several of the partners or to a third party.(2) The consent of all partners shall be required for the acquisition or disposal of real rights over real property, for the appointment of a manager who is not a partner, or for executing an agreement for a cash loan exceeding a sum fixed in the articles of partnership.Revocation of Management AssignmentArticle 85(Amended, SG No. 38/2006, effective 1.07.2007 - amended, inrelation to becoming effective, SG No. 80/2006) The resolution to assign the management to one or several partners may be revoked by the district court of the partnership's seat upon an action brought by some of the partners, if the managers have committed a breach of their obligations, as well as on other grounds provided for in the articles of partnership. The judgement of the court shall be sent ex officio to the Registry Agency for entry into the Commercial Register.Partner's Right to Exercise ControlArticle 86A partner which does not participate directly in the management shall be entitled to obtain information on the partnership's business, to inspect the books, the partnership and other papers, and to ask for explanations from the managers.ResolutionsArticle 87Where the articles of partnership require that resolutions be adopted with a majority vote, each partner shall be entitled to one vote. Resolutions shall be recorded in the minutes book.Section IIIPartners' Relationship With Third PartiesLiability of the General PartnershipArticle 88(Amended, SG No. 103/1993)When bringing an action against the partnership the plaintiff may also name as defendants one or several of the partners. Forcible execution shall be directed first against the partnership, and, in case of impossibility for satisfaction, against the partners.RepresentationArticle 89(1) Each partner shall represent the partnership, unless the articles of partnership provide otherwise.(2) A limitation upon the representative powers of a partner shall not be binding upon bona fide third parties if it is not registered in the commercial register.Revocation of Representative PowersArticle 90The representative powers of a partner may be revoked pursuant to Article 85.Partners' PleaArticle 91A partner may, in addition to the partnership's pleas, make its personal pleas before the partnership's creditors.Liability of Newly Admitted PartnersArticle 92The liability for all of the partnership's debts of a newly admitted partner in an existing partnership shall equal that of the other partners.Section IVDissolution of a Partnership and Termination of a Partners'ParticipationGrounds for DissolutionArticle 93A general partnership shall be dissolved upon:1. (supplemented, SG No. 103/1993) expiration of its term or under other circumstances provided in the articles of partnership;2. the agreement of the partners;3. declaring the partnership bankrupt;4. where there is no other provision, death or the placing under judicial disability of a partner or dissolution of a partner which is a legal person;5. (amended, SG No. 63/1994) request of the trustee in bankruptcy in case of bankruptcy of a partner;6. notice of termination from a partner;7. a court ruling in the cases established by law.Dissolution upon Notice from a PartnerArticle 94Where a partnership has been formed for an indefinite period of time each partner may request its dissolution by sending at least six months prior notice in writing to all remaining partners, unless the articles of partnership provide otherwise.Dissolution by Court Order Dismissal of PartnerArticle 95(1) The district court may dissolve a partnership upon an action brought by a partner when another partner has deliberately or in gross negligence omitted to perform an obligation of its under the articles of partnership or the performance of the obligation has become impossible. This rule shall also apply whenever a partner acts against the interests of the partnership.(2) Upon an action brought by a partner the court may, instead of dissolving the partnership, dismiss the partner which is at fault.Dissolution upon Notice from a Private Creditor of a PartnerArticle 96(1) The creditor of a partner which in the course of six months cannot be satisfied by forcible execution upon the debtor's personal property may attach that partner's liquidation share and request the dissolution of the partnership upon a notice in writing pursuant to the procedure set forth in Article 94.(2) A partnership shall not be dissolved in case the partnership or the remaining partners repay the debt following the attachment pursuant to the preceding paragraph. In this case only the participation of the debtor partner shall be terminated, unless the partners decide otherwise.Perpetuation of PartnershipArticle 97(1) The partners may provide in the articles that the partnership shall continue to exist in the case of termination of the participation of a partner. In this case the remaining partners shall buy out the share of the partner which has terminated its participation, and in the case of a partner's death, those of its heirs who wish shall be admitted as partners. The heirs shall state their intent to be admitted as partners not later than three months from the date of the opening of the succession.(2) In case the heirs do not wish to be admitted as partners, as well as in case of termination of the participation of a partner, the partnership shall pay the value of the share in the partnership's assets of the decedent or the partner which has terminated its membership, and their share in the annual profits for the period up to the death or termination of the participation.LimitationArticle 98(1) The right of action against a partner for obligations of the partnership shall expire by limitation after five years, except where the right of action against the partnership is subject to a shorter limitation.(2) ( Supplemented, SG No. 58/2003) The limitation period shall run from the date on which the dissolution of the partnership, its transformation or the termination of the participation of the partner, is registered in the commercial register.(3) An interruption of the limitation with respect to the dissolved partnership shall also apply to those partners which were partners at the time of the dissolution.CHAPTER TWELVELIMITED PARTNERSHIPSection IGeneral ProvisionsDefinitionArticle 99(1) A limited partnership shall be formed with articles of partnership between two or more persons for carrying out commercial activities under a common trade name, whereby for the partnership's obligations one or more of the partners shall be liable jointly and severally and their liability shall be unlimited, and the remaining partners' liability shall not exceed the amount of the agreed upon contribution.(2) (Repealed, renumbered from Paragraph 3, SG No. 103/1993) The provisions for the general partnership shall apply mutatis mutandis to the limited partnership, to the extent this chapter does not provide otherwise.FormArticle 100The articles of partnership shall be drawn up in writing with notarized signatures of the partners.Trade NameArticle 101(1) The company's trade name shall contain the extension "komanditno druzhestvo" [limited partnership] or the abbreviation "KD" and the name of at least one of the general partners.(2) The names of limited partners shall not be incorporated in the trade name of a limited partnership, but in case this has occurred those partners shall be deemed to bear unlimited liability vis-а-vis the creditors of the partnership.Content of the Articles of PartnershipArticle 102A limited partnership's articles shall state:1. the trade name of the partnership;2. the seat and the registered office;3. the purposes for which the partnership is set up;4. (supplemented, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) the name and domicile or, respectively, the trade name, the seat and standard identification code, as well as the address of each partner;5. (repealed, SG No. 84/2000);6. the type and amount of the partners' contributions;7. the manner of distribution of profits and losses among the partners;8. the manner of management and representation of the partnership.RegistrationArticle 103(Amended, SG No. 38/2006, effective 1.07.2007 - amended, inrelation to becoming effective, SG No. 80/2006) A limited partnership shall be registered with the commercial register by the general partners, which shall file the articles of partnership and specimen signatures.Section IIPartners' Legal RelationshipsPrimacy of the Articles of PartnershipArticle 104The partners' legal relationships, to the extent the articles of partnership contain no provision to the contrary, shall be governed by this Section.ManagementArticle 105A limited partnership shall be managed and represented by the general partners. A limited partner has no right to manage the partnership and block resolutions of the general partners.Acts by a Limited PartnerArticle 106Should a limited partner effect transactions in the name and on behalf of the partnership without being the partnership's manager or agent it shall be personally liable, except when the partnership ratifies the transaction.Prohibition Concerning an General PartnerArticle 107The rule of Article 83 shall apply to a general partner.Limited Partner's RightsArticle 108A limited partner may inspect the partnership's books and request a transcript of its annual financial statement. In case of refusal the district court shall, on the motion of such partner, order that these be placed at the disposal of the partner.Limited Partner's Participation in Profits and LossesArticle 109(1) Where a limited partner has not paid in full the stipulated contribution, such contribution shall be deducted from its share of the profits.(2) A limited partner shall participate in losses up to the amount of the stipulated contribution. It shall not be bound to pay back any profits it has received to offset subsequent losses.Prohibition on Distribution of ProfitsArticle 110Where at the end of a calendar year it is established that a partnership has shown losses which affect the contributions made, no profits shall be distributed before the contributions have been restored to their stipulated amounts.Section IIIPartners' Legal Relationships With Third PartiesLiability of Limited PartnerArticle 111A limited partner shall be liable towards the partnership's creditors to the extent of its stipulated contribution, even when it has not been paid in full.Liability Prior to RegistrationArticle 112A limited partner shall bear unlimited liability with respect to transactions entered into by it in the name of the partnership prior to its formation, or after such formation whenever the creditor did not know that it was contracting with a limited partner.CHAPTER THIRTEENLIMITED LIABILITY COMPANYSection IGeneral ProvisionsDefinitionArticle 113A limited liability company may be formed by one or more persons which shall be liable for the company's obligations with their contributions to the company's registered capital.Form of Memorandum of AssociationArticle 114(1) (New, SG No. 103/1993) The Memorandum of Association shall be executed in writing.(2) (Previous Article 114, SG No. 103/1993) A partner may be represented by an agent holding a special power of attorney with notarized signature.(3) (New, SG No. 103/1993) When the limited liability company is formed by one person, a constitutive deed shall be drawn up instead of Memorandum of Association.Content of Memorandum of AssociationArticle 115The Articles of Association shall state:1. (amended and supplemented, SG No. 124/1997) the company's trade name, seat, and head-office address;2. the purposes and the time period for which the company is being set up;3. (supplemented, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) the name or, respectively, the trade name, the seat and standard identification code, as well as the address of each partner;4. (supplemented, SG No. 84/2000) the registered capital. Where the full amount has not been paid at incorporation, the articles shall set the time periods and terms for payment. The time period for paying up the full amount of the capital shall not exceed two years after the company's registration, or the increase of capital respectively;5. the interests of the partners;6. the management and manner of representation;7. the privileges of the partners, where agreed upon;8. other rights and obligations of the partners.Trade NameArticle 116(1) The trade name of a company shall contain the extension "druzhestvo s ogranichena otgovornost" [limited liability company] or the abbreviation "OOD".(2) Should all the capital be owned by one person, the trade name shall contain the extension "ednolichno OOD" [single person limited liability company]Capital and SharesArticle 117(1) (Amended, SG No. 100/1997) The registered capital of a limited liability company shall be not less than BGN 5,000. It shall consist of the interests of the company's partners, and no interest shall be smaller than BGN 10,.(2) (Amended, SG No. 66/2005) The sum total of all interests shall be equal to the registered capital, and the value of each interest shall be a multiple of 10(3) The interests of the individual partners may be of unequal value.(4) An interest may be held jointly by several persons.Liability of FoundersArticle 118(1) The founders shall be liable jointly and severally before the company for damages caused in the course of its formation, if they have not acted with due care.(2) The founders shall not be entitled to remuneration for the formation of the company from the registered capital.RegistrationArticle 119(1) For registration of a company in the commercial register it shall be necessary:1. to file the Articles of Association;2. to have an appointed manager or managers;3. (amended, SG No. 84/2000) each partner to have paid at least one third of its interest, but not less than BGN 10;4. at least 70 per cent of the registered capital to have been paid.(2) The data under Items 1, 2, 3, 4 (only the amount of the registered capital) and 6 of Article 115 shall be registered in the register and published.(3) (New, SG No. 114/1999, amended, SG No. 39/2005) For recording in the commercial register the performance of a business activity as an investment intermediary and of any other activity for which a separate law stipulates the performance thereof after obtaining permission from a government authority, the respective license or permission shall be presented.(4) (New, SG No. 84/2000) In case of amending or supplementing the Articles of Association, a copy of the articles containing all amendments and supplements and certified by the body representing the company, shall be presented at the Commercial Register.Section IIPartners' Rights and ObligationsSharesArticle 120(1) Each partner shall pay up or contribute its interest as provided in the Articles of Association.(2) (Repealed, SG No. 84/2000).Consequences of Failure to Pay Up or Contribute One's ShareArticle 121(1) The failure to pay up or contribute an interest shall constitute grounds for the expulsion of a partner from the company. A partner which has failed to pay up or contribute its interest within a specified period shall owe interest at a rate determined by operation of law, and compensation for damages in excess of such interest.(2) Where the interest cannot be paid up or contributed by the partner owing such payment or contribution, and cannot be sold to a third party, the remaining partners must pay up the balance in proportion to their interests or reduce the company's registered capital in accordance with established procedures.Admitting a New PartnerArticle 122A new partner shall be admitted by the general meeting upon an application in writing, in which it shall state that it accepts the terms of the Articles of Association. The resolution to admit the partner shall be registered in the commercial register.Partners' RightsArticle 123Each partner shall be entitled to take part in the management of the company, in the distribution of profits, to be informed of the company's affairs, to review the company's books and to liquidation proceeds.Partners' ObligationsArticle 124The partners must pay up or contribute their interests, take part in the management of the company, provide assistance for the carrying out of its activities, as well as carry out the resolutions of the general meeting.Termination of Participation in a CompanyArticle 125(1) The participation of a partner shall be terminated upon:1. death or disability;2. expulsion;3. dissolution and liquidation, in the case of a legal person;4. bankruptcy.(2) A partner may terminate its participation in a company with a notice in writing made at least 3 months prior to the termination.(3) Accounts shall be settled on the basis of the balance sheet for the last day of the month of termination of the participation.Expulsion of a PartnerArticle 126(1) (Amended, SG No. 58/2003) A partner which has not paid up or contributed its interest stake shall be deemed expelled is it fails to pay up or pay in its stake within a time limit as determined additionally by the general meeting, which cannot be less than one month. The time period shall be determined by a majority of one half of the capital. The manager shall inform the partner in writing of such additional time period and warn it of the expulsion.(2) In the case of para 1 the partner shall lose its title to any contributions made.(3) A partner may be expelled by the general meeting following a notice in writing where it:1. fails to perform its obligations for providing assistance for the carrying out of the activities of the company;2. fails to abide by resolutions of the general meeting;3. acts against the interests of the company.4. (new, SG No. 84/2000, amended, SG No. 58/2003) fails to make an additional cash payment, in case the partner has not exercised its right to retire referred to in article 134, paragraph (2).Company ShareArticle 127Each partner shall have a company interest in the company's assets the amount of which shall be determined in proportion to its interest in the registered capital, unless otherwise agreed.Certificate of ParticipationArticle 128The certificates issued to the partners for evidencing their participation in the company shall not be negotiable securities.Transfer of SharesArticle 129(1) An interest in a limited liability company may be transferred and inherited. The transfer of an interest from one partner to another shall be unrestricted, and the transfer to third parties shall be subject to the provisions for admitting new partners.(2) An interest in a limited liability company shall be transferred with notarized signatures and shall be registered in the commercial register.Liability upon TransferArticle 130The transferee shall be liable jointly and severally with the transferor for any payments to the registered capital due at the date of transfer.Partition of a ShareArticle 131The partition of an interest shall be admissible only with the consent of the partners, unless otherwise agreed.Joint Ownership of an InterestArticle 132Where one interest belongs to several persons they may exercise their rights over it only jointly. They shall be liable jointly and severally for any obligations arising from such interest. The joint owners of the interest shall designate a person to represent them before the company.Profits and PaymentsArticle 133(1) The partners cannot claim their interests as long as the company exists. They are only entitled to part of the profits in proportion to their interests, unless otherwise agreed.(2) No interest on the partner's profits may be agreed upon.Additional Monetary ContributionsArticle 134(1) For covering losses and in case of temporary shortage of cash the partners may be required, by a general meeting resolution, to make additional monetary contributions within a fixed period. The additional contributions shall be in proportion to the respective interests in the capital, unless otherwise determined.(2) (Amended, SG No. 58/2003) A partner which has not voted for the decision referred to in paragraph (1) shall have the right to terminate its participation in the company in accordance to article 125, paragraphs (2) and (3). This right shall be exercisable within one month following the meeting, for partners that have attended or have been legitimately invited, or following the notice, for all other partners.(3) (Amended, SG No. 58/2003) The additional contributions shall not affect the company's registered capital. It may be agreed that the company shall pay interest on them. Article 73c shall not apply to refunds of additional cash contributions.Section IIIManagementTypes of OrgansArticle 135(1) The company's organs shall be:1. the general meeting;2. the manager (managers).(2) The manager does not necessarily have to be a partner.General Meeting of PartnersArticle 136(1) The general meeting of partners shall consist of the partners.(2) The company's manager shall take part in the general meeting's sittings in a consultative capacity.(3) Where the number of employees exceeds 50, they shall be represented in the general meeting in a consultative capacity.Powers of the General MeetingArticle 137(1) The general meeting shall:1. amend the Articles of Association;2. (amended, SG No. 103/1993) admit and expel partners, give consent on the transfer of an interest to a new partner;3. approve the annual report and balance sheet, distribute the profits and resolve on their payment;4. resolve on the increase or decrease of the registered capital;5. appoint a manager, fix his remuneration and relieve him of liability;6. resolve on setting up or closing down branches and participation in other companies;7. resolve on the acquisition or alienation of real property and real rights therein;8. resolve on bringing a company action against the manager or comptroller and appoint an attorney to proceed with the suits against them;9. resolve on additional monetary contributions.(2) Each partner has as many votes in the general meeting as its interest of the capital, unless the articles provide otherwise.(3) (Amended, SG Nos. 103/1993, 84/2000, supplemented, SG No. 58/2003) Resolutions under Items 1, 2 and 9 of para 1 shall be adopted with a majority of more than three quarters of the capital, and resolutions under Item 4 - unanimously; a greater majority may be provided in the Articles of Association. The partner whose expulsion is put to a vote shall not vote and its interest stake shall be deducted from the capital when determining the majority. All remaining resolutions shall be adopted with a majority of the capital, unless the articles provide otherwise.(4) The partners may vote by proxy only when such proxy holds a special power of attorney in writing; the above rule shall not apply to partners which are legal persons or to agents by operation of law.(5) The general meeting shall adopt resolutions on labour and social issues only after hearing the position of a representative of the company's employees.Convening a General MeetingArticle 138(1) A general meeting shall be convened by the manager at least once every year.(2) The manager shall also convene a general meeting upon the request in writing of the partners whose interests amount to at least one tenth of the capital. Should the manager fail to convene a general meeting within two weeks, the partners which have requested its convening shall be entitled to do so.(3) (Supplemented, SG No. 58/2003) The manager shall convene a general meeting immediately should the losses exceed one fourth of the registered capital, and also when the net worth of the company's property under article 247a, paragraph (2) should fall below the amount of the registered capital.Notice of General MeetingArticle 139(1) The general meeting shall be convened by a notice in writing received by each partner at least 7 days before the date of the meeting, unless the articles provide otherwise. The notice shall specify the business to be transacted.(2) general meeting resolutions may be adopted in absentia when all partners have stated in writing their consent for the resolution.Registration of ResolutionsArticle 140(1) The general meeting resolutions which are related to registrations pursuant to Article 119, para 2 shall be registered in the commercial register.(2) Para 1 shall apply to the resolutions of the owner of a single person company.(3) (New, SG No. 84/2000, amended, SG No. 58/2003) Resolutions related to amending or supplementing the Articles of Association or termination of the company shall come into effect after their entry in the Commercial Register.(4) (New, SG No. 58/2003) Increase or reduction of capital, admission or expulsion of a partner, transformation of the company, election or dismissal of a manager, as well as appointment of a liquidator shall come into effect after their entry in the Commercial Register.Management and RepresentationArticle 141(1) The manager shall organize and direct the activities of the company in accordance with the law and the general meeting resolutions.(2) (Supplemented , SG No. 84/2000) The company shall be represented by the manager. Where several managers have been appointed each one of them may act independently, unless the articles provide otherwise. Other restrictions of the representative power of the manager shall not have effect with regard to third persons.(3) (Amended, SG No. 84/2000, No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The name of the manager, who shall present a notarized consent with a specimen signature, shall be registered in the commercial register.(4) (New, SG No. 58/2003) The empowerment of the manager can be withdrawn at any time and his name can be removed from the commercial register.(5) (New, SG No. 58/2003, amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The manager may request his own removal from the commercial register under a written notice addressed to the company. Within one month of receiving such notice, the company must apply for registration of his discharge in the commercial register. If the company fails to do so, the manager may declare for registration this circumstance himself and that entry shall be made regardless of whether another person has been elected to replace him.(6) (New, SG No. 66/2005) The empowerment and its removal will have effect in regard to good faith third parties as of its registration.(7) (New, SG No. 58/2003, renumbered from Paragraph 6, SG No 66/2005) Relations between the company and the manager shall be regulated under a management contract. The contract shall be executed in writing on behalf of the company by a person authorized by the general meeting of partners, or by the sole proprietor.Prohibition on CompetitionArticle 142(1) Without the consent of the company the manager may not:1. effect commercial transactions in his own or in a third party's name;2. participate in partnerships and partnerships limited by shares, and in limited liability companies;3. hold positions in managing organs of other companies.(2) The limitations under para 1 shall apply when the activities carried out are similar to those of the company.(3) (Amended, SG No. 58/2003) For violations of his obligations under para 1 the manager shall owe indemnity for damages caused to the company.Company BooksArticle 143(1) The company shall keep a book of interests and minutes book on the general meeting resolutions.(2) The value of each partner's interest, the payments made and all relevant changes thereto shall be recorded in the book of interests.(3) The manager shall be responsible for the regular keeping of the company books.ComptrollerArticle 144(1) The articles may provide for the appointment of a comptroller (comptrollers) who shall supervise the observance of the articles, the taking of proper care of the company's property and shall report to the general meeting.(2) The following may not be comptrollers:1. the managers, their deputies and company employees;2. spouses, descendants or ascendants and collateral relatives to the third degree of the persons under the preceding Item;3. persons who with a sentence have been deprived of the right to hold a position of financial accountability.(3) In a single person company the comptroller shall be appointed by the owner.Liability of the Manager and the ComptrollerArticle 145The manager and the comptroller shall be financially liable for damages caused to the company.AuditorsArticle 146(1) Supplemented, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The company's annual financial statement shall be audited by one or several auditors who shall be certified public accountants in the cases provided by the law.(2) Such audit shall be a condition for approving the annual financial statement.(3) The auditors shall be appointed by the general meeting before the expiration of the calendar year. They shall be liable for the proper and unbiased audit and for maintaining confidentiality.(4)(New, SG No. 84/2000, amended, SG No. 66/2005, No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The adopted annual financial statement shall be presented at the Commercial Register.Management of a Single Person Limited Liability CompanyArticle 147(1) The single owner of the capital shall manage and represent the company either personally or through an appointed by it manager. In case the owner is a legal person the manager of such legal person or a person designated by him shall manage the company.(2) (Supplemented , SG No. 84/2000) The single owner of the capital shall resolve on the issues falling within the powers of the general meeting, minutes of which shall be taken in the relevant form for the general meeting resolutions.(3) (New, SG No. 84/2000) Agreements between the single owner and the company, when it is represented by the single owner, shall be concluded in a written form.Section IVAmending the Articles of AssociationIncrease of CapitalArticle 148(1) The registered capital may be increased through:1. increasing the value of the interests;2. subscribing new interests;3. admitting new partners.(2) The partners may increase the value of the interests pro rata to their holdings, unless the Articles of Association or the general meeting resolution provide otherwise.Reduction of CapitalArticle 149(1) (Amended, SG No. 70/1998, No. 84/2000) The registered capital may be reduced to not less than the minimum amount, established by law, by a resolution to amend the Articles of Association observing the requirements of Articles 150 and 151. In such a case, a simultaneous reduction or increase of the registered capital may be made under the procedure of article 203.(2) The resolution shall state the purpose of the reduction, its amount and the manner through which it shall be accomplished.(3) The reduction may be effected through:1. reducing the value of interests;2. cancellation of the interest of a partner which has terminated its participation;3. relieving of the obligation to pay up the unpaid portion of the registered capital.Notice to CreditorsArticle 150(1) (Supplemented, SG No. 66/2005, amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The resolution to reduce the registered capital shall be submitted to the Commercial Register and published. With the publication thereof it shall be considered that the company has declared readiness to provide security for claims or to pay its obligations as of the moment of publication to the creditors which do not agree with the reduction.(2) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The creditor's consent for the reduction shall be assumed if within three months of the publication they do not express in writing their objection.(3) (Repealed, SG No. 84/2000).Registration of the ReductionArticle 151(1) The amendment to the articles with which the registered capital is reduced shall be registered upon expiration of the time period specified in the previous article.(2) Attached to the application for registration shall be proof of observance of the requirements of Article 150 and a statement in writing of the manager that either security has been provided or the debt has been repaid to the creditors which have not consented to the reduction.Creditors' Protection(Heading amended, SG No. 104/2007) Article 152(1) (Redesignated from Article 152, SG No. 104/2007) If the data provided by the managing director for recordation of the reduction are untrue, he shall be liable for the damages caused to the creditors to the extent they could not be satisfied from the company. Where there are several managing directors, they shall be liable solidarily.(2) (New, SG No. 104/2007) Any creditor referred to in Article 150 (1), who has expressed his opposition to the time limit under Article 150 (2) and has not received satisfaction or sufficient security of the claim thereof within the said time limit, may approach the court with a motion to duly grant an injunction for the claim thereof according to the procedure for securing of actions by means of a garnishment or preventive attachment. The injunction shall be dissolved if recordation of the reduction of capital is refused or if the creditor receives satisfaction of the claim thereof.Payments Pursuant to ReductionArticle 153(Supplemented, SG No. 84/2000)Payments to the partners pursuant to a reduction of the registered capital may be made only after the reduction has been registered, and after the creditors who have not agreed with the reduction have received security or payment.Section VDissolution of the CompanyDissolution and Liquidation of the CompanyArticle 154(1) The company shall be dissolved:1. with the expiration of the term set in the articles;2. (amended, SG No. 84/2000) upon decision of the partners adopted with a three quarters majority of the interests, unless the articles provide for a greater majority;3. through a consolidation or merger with a joint-stock company or another limited liability company;4. upon being declared bankrupt;5. by a decision of the district court in cases provided for by law.(2) The articles may provide for other grounds for dissolution of the company.Dissolution by a Decision of the CourtArticle 155(Amended, SG No. 38/2006, effective 1.07.2007 - amended, inrelation to becoming effective, SG No. 80/2006) The company may be dissolved by a decision of the district court of its registered office upon:1. an action by the partners showing serious cause. The action shall be brought against the company if the plaintiffs' interests represent more than one fifth of the registered capital;2. (amended, SG No. 84/2000) an action by the public attorney where the activities of the company are in contravention to the law.3. (new, SG No. 58/2003) an action by the public attorney where for three months there has not been any manager registered for the company.Liquidation of a CompanyArticle 156(1) In the case of dissolution of a company pursuant to Article 154, Items 1, 2 and 5 and Article 155 a liquidation procedure shall be initiated.(2) The company's liquidator shall be its manager, except where another person has been appointed with the articles or with a resolution of the general meeting.(3) Upon request of the comptroller or of partners holding at least one tenth of the interests the court may appoint another liquidator.(4) The liquidation of the company shall be performed pursuant to Chapter Seventeen.Dissolution of a Single Person Limited Liability CompanyArticle 157(1) A company in which the capital is owned by a single natural person shall be dissolved upon the death of such person, except where provided otherwise or where the heirs wish to continue its activities.(2) Where the capital is owned by a single legal person the company shall be dissolved with the dissolution of that legal person.CHAPTER FOURTEENJOINT-STOCK COMPANYSection IGeneral ProvisionsDefinitionArticle 158(1) A joint-stock company is a company the capital stock of which is divided into shares. The company shall be liable before its creditors with its assets.(2) The trade name of the joint-stock company shall include the extension "aktsionerno druzhestvo" [joint-stock company] or the abbreviation "AD".Number of FoundersArticle 159(Amended, SG No. 84/2000)(1) A joint-stock company may be found by one or more natural or legal persons.(2) When a joint-stock company is formed by one person, a constitutive deed shall approve the Statutes and appoint the first supervisory board or board of directors.(3) The constitutive deed shall be drawn up in writing.FoundersArticle 160(1) (Amended, SG No. 84/2000) Founders are those persons who have subscribed shares at the constituent meeting.(2) Persons declared bankrupt may not be founders.Capital and SharesArticle 161(1) The capital stock and the value of the shares shall be designated in leva.(2) (Amended, SG Nos. 100/1997, 84/2000) The minimum value of the capital stock of a joint-stock company shall be 50 000 leva.(3) (Amended, SG Nos. 25/1992, 70/1998) The minimum amount of the capital stock required for performing banking, insurance activities or voluntary health insurance activities shall be determined by a separate law.(4) (Supplemented, SG Nos. 84/2000, 66/2005) The capital stock must be fully subscribed. The company may not subscribe shares from its capital. Should this prohibition be violated at the incorporation of the company, the founders shall be jointly liable for the subscribed shares. If any one person subscribes shares on its behalf and at the account of the company, they shall be deemed purchased entirely at the account of that person.Nominal Value of a ShareArticle 162(Amended, SG No. 84/2000)The minimum nominal value of a share shall be 1 lev. Larger nominal values of shares must be in full levs.Section IIIncorporationConstituent MeetingArticle 163(Amended, SG Nos. 63/1995, 84/2000)(1) A joint-stock company shall be founded at a constituent meeting attended by all the persons subscribing for shares. A founder may be represented by a special proxy whose signature has been certified by the notary public.(2) Shares shall be subscribed at the constituent meeting.(3) The constituent meeting shall:1. take a decision for the incorporation of the company;2. adopt the Statutes;3. establish the amount of the incorporation costs;4. elect a supervisory board, respectively a board of directors.(4) The decisions pursuant to paragraph 3, Items 1 and 2 shall be adopted unanimously; minutes shall be taken pursuant to article 232.(5) When a joint-stock company is formed by one person, a constitutive deed shall be drawn up.Content of the ProspectusArticle 164(Repealed, SG No. 63/1995)Content of the StatutesArticle 165(Amended, SG No. 84/2000)The Statutes shall contain:1. the company's trade name, seat, and head-office address;2. the purposes, and the time period, if any;3. (supplemented, SG No. 66/2005) the amount of the capital, as well as the portion thereof, which must be paid-in at the foundation of the company, the type and number of shares, the rights of the individual classes of shares, any special terms of their transfer, as well as the nominal value of the individual share;4. the bodies of the company, their mandate and number of members;5. the type and value of the non-monetary contributions, if any, the persons making them, the number and nominal value of the shares which they shall be given;6. the advantages, if any, which the founders, by name, have reserved for themselves;7. the terms and procedure for issuing callable stock, if such is foreseen;8. the manner of distribution of profits;9. the manner of calling the General Meeting;10. other terms with respect to the incorporation, existence and dissolution of the company.ContributionsArticle 166(1) (Amended, SG No. 84/2000) Monetary payments shall be made to a fund-raising bank account opened by the managing board, or the board of directors respectively, in the company's name, with an indication of the name of the payer, and any payments with deposited sums shall be effected with the unanimous decision of this body.(2) The provisions of Articles 72 and 73 shall apply mutatis mutandis to non-monetary contributions.(3) (New, SG No. 84/2000) If, within three months, the managing board, respectively the board of directors, does not certify to the bank that the company has applied for registration, the payers may withdraw their payments in full. The members of the respective board shall be jointly liable for the payment of the deposited sums.Interim CertificateArticle 167(1) (Amended, SG No. 84/2000) For payments or contributions for subscribing to shares the shareholders shall receive interim certificates signed by an authorized member of the managing board, or the board of directors respectively.(2) The shareholders shall receive their shares upon presentation of interim certificates.Constituent MeetingArticle 168(Repealed, SG No. 84/2000)SubscriptionArticle 169(Amended, SG No. 58/2003)A joint-stock company may be incorporated by subscription to raise capital only if a law specifically provides for the conditions and procedure to do so.Functions of the Constituent MeetingArticle 170(Repealed, SG No. 84/2000)Incorporation of a company with subscribed capitalArticle 171(Repealed, SG No. 84/2000)Content of the StatutesArticle 172(Supplemented, SG No. 124/1997, repealed, No. 84/2000)Liability of FoundersArticle 173(Repealed, SG No. 84/2000)Requirement for Registration of the CompanyArticle 174(1) For the registration of a joint-stock company in the commercial register it shall be necessary that:1. the Articles of Association have been adopted;2. the full amount of the capital stock has been subscribed;3. (amended, SG No. 84/2000) the part of the value of each share as provided in the Articles of Association has been paid up, but not less than 25 per cent of the nominal value or issue price of each share as provided in the Articles of Association;4. (supplemented, SG No. 58/2003) the members of the board of directors or, respectively, the supervisory and managing board have been appointed;5. the remaining requirements of the law have been fulfilled.(2) (Amended, SG No. 84/2000, supplemented, SG No. 58/2003, amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The data pursuant to Article 165, Items 1 - 4, 5 (only the type and the value of the non-monetary contribution) and 10, and the names of the members of the board of directors, or, respectively, the supervisory and managing board, shall be registered in the commercial register. The minutes of the constituent meeting and a list of the persons who have subscribed shares at the incorporation, certified by the managing board or the board of directors, shall be attached to the application for entry. Should the shares be acquired by one person after the incorporation of the company, the name, respectively the trade name and the standard identification code of the shareholder shall be entered in the register.(3) (New, SG No. 114/1999, amended, SG No. 39/2005) For recording in the commercial register the performance of banking and insurance activity, activity as a stock exchange, as an investment intermediary, investment company, management company and of any other activity for which a separate law stipulates the performance thereof after obtaining permission from a government authority, the respective license or permission shall be presented.(4) (New, SG No. 84/2000) Should the Articles of Association be amended or supplemented, a copy of the Articles of Association with the amendments as of the respective date, certified by the person(s) representing the company, shall be provided to the commercial register.Section IIISharesNominal Value of the Shares. DenominationsArticle 175(1) A share shall be a security which shall attest to the fact that its owner participates in the capital stock with the nominal value indicated on it.(2) A joint-stock company may not issue shares of a different nominal value.(3) Shares may be issued in denominations of 1, 5, 10 and multiples of 10 shares.Issue PriceArticle 176(1) The issue price is the price at which the shares shall be purchased by the founders or, respectively, the subscribers in case the capital is raised through subscription.(2) The issue price shall not be lower than the nominal value. Shares may also be subscribed at a price higher than the nominal value.(3) The difference between the nominal value and the issue price shall be set aside for the company's reserve fund.IndivisibilityArticle 177Shares are indivisible. Where a share belongs to several persons they shall exercise their rights in it jointly by designating a proxy.Types of SharesArticle 178(1) Shares may be registered or bearer shares. Preferred shares may also be issued.(2) (New, SG No. 84/2000) A joint-stock company may also issue book-entry shares. The issuance and disposal of book-entry shares shall be done following a procedure established by a law.(3) (Renumbered from Paragraph 2, SG No 84/2000) Bearer shares shall not be delivered until payment of their nominal value or issue price.(4) (Renumbered from Paragraph 3, SG No 84/2000) Where bearer shares are delivered before payment of the full issue price the amount of the instalments shall be indicated on them.Shareholders' RegisterArticle 179The joint-stock company shall keep a shareholders' register in which the names and addresses of the owners of registered shares shall be recorded and the type, nominal value and issue price, quantity and serial numbers of the shares shall be indicated. The same shall be applied for interim certificates.Exchange of SharesArticle 180(Amended, SG No. 84/2000)Bearer shares shall be exchanged for registered shares and vice versa upon request of the shareholder after payment in full of their price, unless the Articles of Association provide a procedure for this.Shareholders'' RightsArticle 181(1) A share entitles its owner to one vote in the general meeting of shareholders, to a dividend and to a share in the assets in case of liquidation in proportion to the nominal value of the share.(2) Where a company issues shares with special rights this must be indicated and provided for in the Articles of Association.(3) (Supplemented, SG No. 84/2000) The shares providing equal rights form a separate class. Restriction of the rights of individual shareholders of one class shall not be allowed.Preferred SharesArticle 182(1) (Supplemented, SG No. 103/1993) Preferred shares may provide a guaranteed or additional dividend or share in the company's assets in case of liquidation, as well as other rights provided for in this Act or the Articles of Association. The Articles of Association may provide that preferred shares have no voting rights, which must be indicated on the respective share.(2) Preferred shares having no voting rights shall be included in the nominal value of the capital stock.(3) (New - SG No. 63/1995) It shall not be allowed more than 1/2 of the shares to be non-voting shares.(4) (Renumbered from Paragraph 3, SG No. 63/1995) Where a dividend due from a preferred share without voting rights is not paid in the course of 1 year and the delayed payment is not made during the following year together with the dividend due for that following year, the preferred share shall acquire voting rights pending payment of the delayed dividends. In this case the preferred shares shall be taken into account in determining the quorum and majority.(5) (Renumbered from Paragraph 4, SG No 63/1995) In order to adopt a resolution with which the advantages arising from the nonvoting preferred shares are to be restricted, it shall be necessary to obtain the consent of the preferred shareholders, which shall convene at a separate meeting. The meeting may conduct business if not less than 50 per cent of the preferred shares are represented. Resolutions shall be adopted with a vote of at least three quarters of the shares so represented. The preferred shares shall acquire the right to vote upon the removal of the advantages.Contents of a ShareArticle 183(1) A share shall contain:1. the designation `share' for a denomination of one or `shares' for larger denominations, preceded by the respective number thereof;2. type of the shares;3. the number of the denomination and the serial numbers of the shares comprised therein;4. the trade name and seat of the joint-stock company;5. the amount of the capital stock;6. the total number of shares, their individual nominal value and their denomination structure;7. the coupons and their maturity;8. the signatures of two persons having authority to bind the company, and the date of issue.(2) (New - SG No. 63/1995) A printed signature on the share shall also be considered valid signature.(3) (Renumbered from Paragraph 2, SG No 63/1995) Filled in on the face of a registered share shall be the name of its first owner.CouponsArticle 184(1) Unless otherwise provided in the Articles of Association, shares shall be issued with dividend coupons for 20 years.(2) Coupons may not be transferred separately from the shares.(3) A coupon shall carry the designation `Coupon', the trade name of the joint-stock company, the number of the coupon, indication as to the share and its denomination, and the year for which dividend is payable on presentation thereof.Disposal with shares(Title amended, SG 58/2003)Article 185(1) (Supplemented, SG No. 58/2003) Bearer shares shall be transferred and pledged by delivery.(2) Registered shares shall be transferred by endorsement which, to be binding on the company, must be recorded in the registered shareholders register. The Articles of Association may provide for other conditions for the transfer of registered shares.(3) (New, SG No. 58/2003) Registered shares shall be pledged by endorsement with a qualification "as security", "as pledge", or another phrase referring to collateral. The pledge shall be effective with respect to the company as from its registration in the book of registered shareholders. Voting rights attached to pledges shares shall be exercised by the shareholder unless the pledge agreement provides otherwise. Article 473 shall not apply.Liability of Transferor of Registered SharesArticle 186The transferor of registered shares which have not been fully paid up or from which other obligations towards the company arise shall be liable jointly and severally with the transferee. The transferor's liability shall lapse upon the termination of a period of two years from the date that the transfer was recorded in the shareholders register.Transfer of Interim CertificatesArticle 187(1) An interim certificate may not be transferred prior to the incorporation of a company.(2) Transfers of interim certificates shall be subject to the provisions of Article 185, para 2.(3) (New, SG No. 104/2007, effective 1.07.1991) The transfer of an interim certificate shall have the same effect as a transfer of the shares certified thereby.Acquisition of own sharesArticle 187a(New, SG No. 63/1995, amended, SG No. 70/1998, No. 114/1999,repealed, new, SG No. 84/2000)(1) A company may acquire its own shares only:1. for reduction of capital under Article 200, Item 2;2. (amended, SG No. 66/2005) in the case of legal succession, except for transformation;3. if it is free;4. if it is involved in securities transactions by occupation and acquires the shares in executing the order of a third person;5. in the case of expulsion of a shareholder pursuant to article 189, paragraphs 2 and 3;6. as a result of a forcible execution of a shareholder's obligation to the company;7. if the shares have been issued as preferred shares for that purpose;8. in the case of a buy-back.(2) (Amended, SG No. 66/2005) In the cases under paragraph 1, Items 3, 4, 6, 7 and 8, the shares must have been paid-in in full.(3) The company shall discontinue the exercising of the rights on own shares until their transfer.(4) (Amended, SG No. 66/2005) The total nominal value of the own shares acquired pursuant to paragraph 1, except for those acquired under Item 1 , shall not exceed 10 percent of the capital; The company shall transfer the possessed own shares exceeding this value within a period of three years.(5) Should the share acquired in the cases under paragraph 1, Items 2 - 8 not be alienated within the period referred to in paragraph 4, they shall be cancelled and article 200, paragraph 2 shall be applied.(6) (Amended, SG No. 58/2003) Own shares shall not be taken into account when determining the net value of the company's property according to article 247 a, paragraph 2.Buy-Back of SharesArticle 187b(New, SG No. 63/1995, amended, SG No. 114/1999; repealed,new, SG No. 84/2000)(1) A joint-stock company may buy back its own shares on the basis of a decision of the General Meeting of the Shareholders, which determines:1. the maximum number of shares subject to buy-back;2. (amended, SG No. 104/2007) the terms and procedure under which the board of directors or the management board shall effect the buy-back within a specified period not longer than five years;3. the minimum and the maximum buy-back price.(2) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The decision under Paragraph (1) shall be adopted by a majority of the represented capital, and if the buy-back is not expressly provided for in the Articles of Association - by a majority of two-thirds of the represented shares. The decision shall be entered in the commercial register.(3) (Supplemented, SG No. 66/2005) The buy-back shall be effected pursuant to article 247a, paragraphs 1 and 2. The aggregate face value of shares bought back and of those under Article 187a(4) shall not exceed 10 percent of the capital. In regard to the shares bought back, which exceed this amount, Article 187d shall apply.(4) (New - SG No. 66/2005) The Managing Board or, respectively, the Board of Directors, shall carry out the buy-back in compliance with the requirements of paragraphs (1)-(3).Preferred Shares for Buy-BackArticle 187c(New, SG No. 84/2000)(1) The Articles of Association may provide for the issue of shares subject to a buy-back under terms and procedure stipulated in it.(2) (Amended, SG No. 38/2006, effective 1.07.2007 - amended, in relation to becoming effective, SG No. 80/2006) The company shall present the buy-back proposal to the commercial register, which shall be made public.(3) The buy-back may be effected only with sums intended for distribution according to article 247a, paragraphs 1, 2 and 3.(4) The company shall form a reserve in the amount of the nominal value of all the shares bought back pursuant to paragraph 1. This reserve may be distributed among the shareholders only in case of reduction of the capital by the amount of the shares bough-back, or may be used for increase of the capital.Inadmissible Acquisition of Own SharesArticle 187d(New, SG No. 84/2000)If a company has acquired own shares in violation of articles 187a-187c, such shares shall be transferred within one year of their acquisition. Otherwise, the shares shall be cancelled and article 200, Item 2 shall be applied.Disclosure of InformationArticle 187e(New - SG No. 84/2000, amended, SG No. 66/2005, SG No. 105/2006) The annual activity report of the company shall obligatorily state:1. the number and the nominal value of own shares acquired or transferred during the year; the portion of the capital, which they represent, as well as the price, at which the acquisition or the transfer took place;2. the grounds for the acquisitions made during the year;3. the number and the nominal value of the possessed own shares and the portion of the capital, which they represent.Cases Equal to Acquisition of Own SharesArticle 187f(New, SG No. 84/2000)(1) The provisions of article 187a through 187e shall also apply when:1. shares of the company are acquired and possessed by one person at the expense of the company;2. shares of the company are acquired and possessed by another company, in which the first company has, directly or indirectly, a majority of the voting rights, or on which it can, directly or indirectly, exercise control;3. a company receives as a collateral own shares or shares of a company referred to in Item 2.(2) (Amended, SG No. 66/2005) When a company has subscribed own shares at its incorporation or during an increase of the capital, they must be transferred immediately. Otherwise the shares shall be invalidated and Article 200, item 2 shall apply. Article 187a(3), Article 187e shall apply to them.(3) (Supplemented, SG No. 66/2005, amended, SG No. 59/2006) A company shall not provide loans or secure the acquisition of its shares by a third person. This restriction shall not apply to transactions concluded by banks and financial institutions in the course of their usual activity, if as a result of it the net value of the property continues to meet the requirements of Articles 247a(1) and (2). For more information visit www.solicitorbulgaria.com id: 294 Thu, 31 Jul 2008 05:33:08 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-commerce-act-part-1 http://web.solicitorbulgaria.com/index.php/bulgarian-commerce-act-part-1 http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/COMMERCE_ACT.jpg EUR http://web.solicitorbulgaria.com/index.php/bulgarian-commerce-act-part-1 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Chapter OneGENERAL PROVISIONSArticle 1. (1) This Act shall set forth the conditions and the procedure for granting special protection to aliens in the territory of the Republic of Bulgaria, as well as their rights and obligations.(2) The special protection that the Republic of Bulgaria shall provide to aliens under this Act shall include asylum, refugee status, humanitarian status and temporary protection.Article 2. (1) The President of the Republic of Bulgaria shall grant asylum.(2) (Amended, SG No. 52/2007) The Council of Ministers shall grant temporary protection introduced pursuant to a Resolution of the Council of the European Union.(3) The Chairperson of the State Agency for Refugees shall grant refugee status and humanitarian status under the Convention relating to the Status of Refugees of 1951 and the Protocol relating to the Status of Refugees of 1967, the international human rights instruments and this Act.Article 3. (1) The Republic of Bulgaria shall fulfil its obligations… For more information visit http://www.solicitorbulgaria.com id: 284 Chapter OneGENERAL PROVISIONSArticle 1. (1) This Act shall set forth the conditions and the procedure for granting special protection to aliens in the territory of the Republic of Bulgaria, as well as their rights and obligations.(2) The special protection that the Republic of Bulgaria shall provide to aliens under this Act shall include asylum, refugee status, humanitarian status and temporary protection.Article 2. (1) The President of the Republic of Bulgaria shall grant asylum.(2) (Amended, SG No. 52/2007) The Council of Ministers shall grant temporary protection introduced pursuant to a Resolution of the Council of the European Union.(3) The Chairperson of the State Agency for Refugees shall grant refugee status and humanitarian status under the Convention relating to the Status of Refugees of 1951 and the Protocol relating to the Status of Refugees of 1967, the international human rights instruments and this Act.Article 3. (1) The Republic of Bulgaria shall fulfil its obligations under the Convention relating to the Status of Refugees of 1951 and the Protocol relating to the Status of Refugees of 1967 through its state authorities in cooperation with the United Nations High Commissioner for Refugees.(2) The United Nations High Commissioner for Refugees shall, through his/her representative in the Republic of Bulgaria, have the right to information, as well as to access to any stage of the procedure for granting refugee status, humanitarian status and temporary protection. He/she may get acquainted with any specific case and give a written or oral opinion thereon.Article 4. (1) Any alien may request to be granted protection in the Republic of Bulgaria in accordance with the provisions of this Act.(2) The request for granting protection shall be made in person and of the alien's own free will.(3) A alien who has entered the Republic of Bulgaria to seek protection or who has been granted protection may not be returned to the territory of a country where his/her life or freedom is threatened due to his/her race, religion, nationality, membership of a specific social group or political opinion and/or belief, or where he/she faces a threat of torture or other forms of cruel, inhuman or degrading treatment or punishment.(4) The rights under paragraph (3) may not be enjoyed by a alien who is seeking or has been granted protection and for whom there are grounds to consider that he/she is presenting a threat to the national security, or who, having been already convicted of a serious crime by a judgment that has come into effect, is presenting a threat to the community.(5) An alien who has, in contravention of the procedure laid down by law, entered the Republic of Bulgaria to seek protection, coming directly from a territory where his/her life and freedom have been threatened, shall appear without delay before the competent authorities and state good reasons for his/her illegal entry or stay in the territory of the country.Article 5. Aliens who are seeking or have been granted protection in the Republic of Bulgaria shall have the rights and obligations provided for in this Act and shall have civil, administrative penalty and criminal liability under the procedure and conditions applicable to Bulgarian nationals.Article 6. (1) (Previous text of Article 6, amended, SG No. 52/2007) The powers under this Act shall be exercised by officials of the State Agency for Refugees. They shall establish all the facts and circumstances relevant to the procedure for granting refugee status or humanitarian status and shall assist aliens who have applied for acquiring such status.(2) (New, SG No. 52/2007) Per request of the President of the Republic of Bulgaria officials of the State Agency for Refugees shall establish all facts and circumstances that are material to the procedure for granting asylum and shall assist the administration of the President of the Republic of Bulgaria.Article 6a. (New, SG No. 52/2007) The interest of the child is of utmost priority with respect to the application of this act.Chapter TwoTYPES OF SPECIAL PROTECTIONArticle 7. (1) (Previous text of Article 7, SG No. 52/2007) Asylum is the protection, which the Republic of Bulgaria grants to aliens persecuted on account of their convictions or activity in advocating internationally recognized rights and freedoms.(2) (New, SG No. 52/2007) The President of the Republic of Bulgaria shall provide asylum including in the cases when national interest or special circumstances require it.Article 8. (1) (Previous Article 8, SG 31/2005, amended and supplemented, SG No. 52/2007) Refugee status in the Republic of Bulgaria shall be granted to a alien who has a well-founded fear of persecution on account of his/her race, religion, nationality, membership of a specific social group or on the grounds of his/her political opinion and/or belief, who is outside his/her country of origin and who, for those reasons, is unable or unwilling to avail himself/herself of the protection of that country or return thereto.(2) (New, SG No. 52/2007) Status pursuant to paragraph 1 shall be granted regardless of the alien's belonging to a particular race, religion, nationality, social group, expression of certain political opinion, or adherence to a political belief at the basis of which he/she was persecuted. It is sufficient for the authority or organization persecuting that person to consider that the alien has such affiliation.(3) (New, SG No. 52/2007) Persecution may be implemented by a governmental authority or organization that the government is not able or willing to confront effectively.(4) (New, SG No. 52/2007) Persecution is a violation of fundamental human rights or a set of actions that result in violation of fundamental human rights grave enough in their nature or recurrence.(5) (New, SG No. 52/2007) Persecution actions may be acts of physical or psychological harassment, legal, administrative, police or court measures that are discriminatory or are implemented to a discriminatory purpose, including penalties for evasion of military service that would lead to offences under article 12 (1) items 1 through 3.(6) (New, SG No. 52/2007) The fear of persecution may be based on events that occurred after an alien has left his/her country of origin or an act committed by him/her after departure unless it has been committed with the sole purpose of obtaining protection under this act.(7) (New, SG No. 52/2007) Protection can be implemented when a government authority or organization which controls the country or a significant part of its territory takes measures against persecution and the alien has access to this protection.(8) (New, SG No. 52/2007) Refugee status can be granted when in one part of the country of origin there are no grounds for fear of persecution with respect to the alien whereby he can freely and permanently benefit of effective protection there.(9) (New, SG No. 31/2005, renumbered from paragraph 2, amended, SG No. 52/2007) The spouse of a alien who has been granted refugee status, and their minor or juvenile children who has not married, shall be considered refugees, inasmuch as it is consistent with their personal status or there are no circumstances under article 12 (1).(10) (New, SG No. 31/2005, renumbered from paragraph 3, SG No. 52/2007) When a alien who has been granted refugee status, is wedded to another alien, the latter may be granted refugee status only on his or her own merit.Article 9. (Amended, SG No. 52/2007) (1) Humanitarian status shall be granted to an alien forced to leave or to stay outside his/her country of origin due to being exposed to real threat of grave violation such as:1. death penalty or execution;2. torture or inhuman or degrading treatment or punishment;3. serious personal threat to his/her life or person as a civilian due to violence in cases of national or international armed conflict.(2) Grave violations can occur as a result of action or lack thereof on the part of an authority or organization, which the government is incapable or unwilling to effectively confront.(3) Real threat of grave violation may be grounded in events occurring after the alien has left his/her country of origin or in an activity performed by him/her after departure unless it was performed with the sole purpose of being granted protection under this Act.(4) Protection can be effectively granted when a governmental authority or organization which is in control of the country or a significant portion of its territory takes measures against the case of persecution and the alien has access to such protection.(5) It is possible not to grant humanitarian status when a portion of the country of origin is free of real risk in the sense of the alien becoming a victim of serious violation provided that he/she will be able to freely and permanently obtain effective protection there.(6) Humanitarian status shall be provided to the spouse of an alien who has already been granted such status and the same applies to their under age and minor children who are yet unmarried insofar as this does not contradict their personal status or unless there are facts specified under Article 12 (2).(7) When an alien who has been granted humanitarian status marries another alien, the latter can obtain humanitarian status solely as an independent individual.(8) Humanitarian status may also be granted for other reasons of humanitarian nature as well as for the reasons stipulated in the outcome document of the Executive Committee of the United Nations High Commissioner for Refugees.Article 10. (Amended, SG No. 52/2007) Refugee status shall also be granted to any alien who is on the territory of the Republic of Bulgaria and has been recognized as refugee under the mandate of the United Nations High Commissioner for Refugees.Article 11. (1) (Previous Article 11, amended, SG No. 52/2007) Temporary protection shall be granted in the event of mass influx of aliens who are forced to leave their country of origin as a result of an armed conflict, civil war, foreign aggression, large-scale violations of human rights or violence on the territory of the relevant country or in a specific area thereof and who, for those reasons, cannot return there.(2) (New, SG No. 52/2007) Temporary protection shall be provided for the duration specified under the Resolution of the Council of the European Union.Chapter ThreeGROUNDS FOR REFUSAL, TERMINATION AND WITHDRAWAL OFPROTECTION AND FOR PROCEDURE SUSPENSION AND CANCELLATIONArticle 12. (1) (Previous Article 12, amended, SG No. 52/2007) Refugee status shall not be granted to an alien:1. for whom there are serious grounds to assume that he/she has committed an act defined as a war crime or crime against peace and humanity under Bulgarian legislation and under the international treaties to which the Republic of Bulgaria is a party;2. for whom there are serious grounds to assume that he/she has committed a serious non-political crime outside the territory of the Republic of Bulgaria;3. for whom there are serious grounds to assume that he/she commits or incites towards acts contrary to the goals and principles of the United Nations;4. (supplemented, SG No. 52/2007) who benefits from the protection or assistance provided by bodies or organizations of the United Nations other than the United Nations High Commissioner for Refugees provided that the said protection has not been revoked and upon his/her status being established according to the relevant resolution of the United Nations;5. (amended, SG No. 52/2007) with respect to whom the competent authorities of his/her country of residence have recognized the rights and obligations resulting from the citizenship in that country.(2) (New, SG No. 52/2007) Humanitarian status shall not be granted to an alien who has allegedly committed any of the acts under article 1, item 1 and 3 or a serious offense of general nature provided that there are solid grounds to those allegations or has committed an offence outside of the territory of Bulgaria which is punishable by imprisonment under Bulgarian law provided that the person has left their country of origin for the sole purpose of evading criminal prosecution except in cases when the said prosecution is a threat to his/her life or is inhuman or degrading.Article 13. (Amended, SG No. 31/2005) (1) (Supplemented, SG No. 52/2007) Refugee status or humanitarian status shall not be granted with respect to a alien whose application is manifestly unfounded, where conditions under article 8(1) and (9), respectively article 9(1), (6) and (8) are not met and the alien:1. invokes grounds that are outside the scope of this Act;2. fails to state any reason for a well-founded fear of persecution;3. the facts alleged by him/her do not contain a detailed description of the circumstances or personal details needed to clarify the case;4. the application is clearly lacking in credibility, with the facts alleged by him/her being inconsistent, contradictory or completely improbable;5. (new, SG No. 52/2007) he/she has submitted a subsequent application which does not contain any material circumstances affecting his/her personal situation or relevant to his/her country if origin.6. (renumbered from item 5, SG No 52/2007) uses a false identity or produces non-authentic, forged document or a document with false contents, while continuing to insist on their authenticity throughout the procedure;7. (renumbered from item 6, SG No 52/2007) he/she intentionally gives, in an oral or written form, false information or withholds essential information concerning his/her case;8. (renumbered from item 7, SG No 52/2007) he/she intentionally destroys, damages or disposes of a passport or another document or ticket which is relevant to his/her claim in order to introduce himself/herself under a false identity or to impede the review of the application;9. (renumbered from item 8, amended, SG No 52/2007) he/she did not provide information that would be sufficient to ascertain his/her identity or citizenship;10. (repealed, new, SG No. 52/2007) he/she refuses to comply with the fingerprinting requirement;11. (repealed, new, SG No. 52/2007) he/she entered the country and resides in it according to statutory requirements and within a reasonable period of time since entering fails to approach the competent authorities with a request for protection with the exception of cases when the delay was due to factors beyond his/her control;12. (new, SG No. 52/2007) he/she entered into the country breaching the relevant statutory requirements and did not immediately approach a competent authority with a request for protection unless there are reasons beyond the person's control that prevented him/her to do so.13. (new, SG No. 52/2007) he/she comes from a safe country of origin or from a safe third country listed in the Minimum Common List adopted by the Council of the European Union or in the national lists adopted by the Council of Ministers.14. (renumbered from item 9, SG No 52/2007) after having had enough time and opportunities, he/she files his/her application in order to prevent the enforcement of a coercive administrative measure imposed on him/her, such as "revocation of the right to stay in the Republic of Bulgaria ", "forcible escort to the border of the Republic of Bulgaria" or "expulsion";(2) (Amended, SG No 52/2007) The refugee status or humanitarian status determination procedure shall not start or if it has already started it shall be terminated when the alien has:1. refugee status granted in another European Union Member State;2. refugee status granted in a safe third country provided that he/she will be allowed to stay in that country;3. already applied for asylum and the relevant procedure has started or already been given asylum in the Republic of Bulgaria.(3) (New, SG No. 52/2007) If the fact stipulated under paragraph 1, item 13 is in place, this cannot by itself be a reason to refute the application as outright groundless.Article 14. The refugee status or humanitarian status determination procedure shall be suspended where the alien, without good reasons:1. fails to appear for an interview within 10 working days, after having been duly invited to do so;2. changes his/her address without notifying the State Agency for Refugees or the competent registration-and reception centre;3. refuses to assist the officials of the State Agency for Refugees in clarifying the circumstances pertaining to his/her application.Article 15. (1) (Amended, SG No. 31/2005, previous Article 15, SG No. 52/2007) A refugee status or humanitarian status determination procedure shall be discontinued where the alien:1. (amended and supplemented, SG No. 52/2007) may no longer refuse to avail of the protection of his/her country of origin, as the circumstances that had given rise to fear of persecution have ceased to exist and the transformation in the said circumstances is material enough and is not temporary;2. (amended, SG No. 52/2007) voluntarily avails himself/herself of the protection of his/her country of origin;3. voluntarily re-acquires his/her citizenship after having lost it, or acquires new citizenship in another country;4. acquires Bulgarian citizenship;5. (amended, SG No. 52/2007) voluntarily settles in the country where he/she was previously persecuted;6. (amended, SG No. 52/2007) withdraws his/her application;7. (supplemented, SG No. 52/2007) fails to appear before the relevant official of the State Agency for Refugees within three months after the procedure has been suspended as per Article 14 concerning the provision of evidence that he/she had objective reasons to change his/her address or objective difficulty preventing him/her from appearing before or cooperating with the relevant officials;8. has deceased.9. (new, SG No. 31/2005) has been granted refugee status by the President.(2) (New, SG No. 52/2007) Paragraph 1, item 1 shall not apply when the alien states grounded reasons resulting from persecution in the past to decline protection from his/her country of origin.Article 16. (Amended, SG No. 31/2005, repealed, SG No. 52/2007). Article 17. (Amended, SG No. 31/2005, SG No. 52/2007) (1) The refugee status or humanitarian status shall be revoked, where:1. the conditions set out in Article 15 (1) Items 1-5 and 9 are found to exist with respect to the alien2. the alien declares that he/she no longer wishes to enjoy the status granted to him/her.(2) Granted refugee status shall be revoked where the conditions set out in Article 12 (1) or Article 13 (1) items 6 and 7 are found to exist with respect to the alien(3) Granted humanitarian status shall be revoked where the conditions set out in Article 12 (2) or Article 13 (1) items 6 and 7 are found to exist with respect to the alien.(4) Temporary protection shall be revoked where the conditions set out in Article 12(1) items 1-3 are found to exist with respect to the alien or when there are serious grounds to believe that he/she is a risk to national security or the public.Article 18. The President of the Republic of Bulgaria may revoke the asylum status, where he deems that the circumstances justifying the granting of asylum have changed or no longer exist.Article 19. The withdrawal or termination of protection or the discontinuance of the procedure with respect to an alien shall not result in withdrawal, termination or change of the status of the other members of his/her family, unless relevant grounds are established in their respect thereof too.Chapter FourRIGHTS AND OBLIGATIONS OF ALIENS SEEKING OR GRANTEDPROTECTIONSection IGeneral ConditionsArticle 20. No restrictions shall be allowed with respect to the rights or privileges of aliens seeking or granted protection in the Republic of Bulgaria, based on race, nationality, ethnic origin, sex, descent, religion, education, convictions, political affiliation, personal and social status or property status.Article 21. (Repealed, SG No. 52/2007). Article 22. (Amended, SG No. 52/2007) Family members of an alien who has been granted asylum, refugee status or humanitarian status that are located on the territory of the Republic of Bulgaria shall enjoy the same rights and responsibilities unless this contravenes their personal status or facts stipulated under article 12 are in place.Article 23. (1) Aliens seeking or granted protection shall be entitled to assistance and help by the United Nations High Commissioner for Refugees and by other government or nongovernmental organizations at any stage of the procedure and after protection has been granted.(2) The State shall provide conditions for any alien seeking protection in the Republic of Bulgaria, to obtain legal protection.Article 24. Every alien seeking or granted protection shall have the right to profess a religion in accordance with the Constitution and the laws.Article 25. (1) (Amended, SG No. 52/2007) A guardian or a custodian shall be appointed for any unaccompanied minor or juvenile alien seeking or granted protection, who is in the territory of the Republic of Bulgaria, under the conditions and procedure set forth in the Family Code.(2) (Amended, SG No. 31/2005, repealed, SG No. 52/2007). (3) (Amended, SG No. 52/2007) The State Agency for Refugees shall exercise control and shall take measures for the protection of minor or juvenile aliens seeking protection from physical or psychological harassment, cruel, inhuman or degrading treatment.(4) (Repealed, SG No. 52/2007). (5) (New, SG No. 31/2005, amended, SG No. 52/2007) In case an unaccompanied minor or juvenile alien who seeks or has been granted protection has no guardian appointed, respectively custodian, he/she shall be represented during the procedure by the authority specified under Article 15 (7) of the Child Protection Act. Article 26. (Amended, SG No. 52/2007) (1) Minor and juvenile aliens seeking protection are entitled to education and vocational training according to requirements and procedures applicable to Bulgarian nationals.(2) Aliens who have been granted protection are entitled to vocational training according to requirements and procedures applicable to Bulgarian nationals.Article 27. (Amended, SG No. 52/2007) (1) Minor and juvenile aliens seeking protection are entitled to education and vocational training according to requirements and procedures applicable to Bulgarian nationals.(2) Aliens who have been granted protection are entitled to vocational training according to requirements and procedures applicable to Bulgarian nationals.Article 28. The aliens seeking or granted protection who reside in the territory of the Republic of Bulgaria are under an obligation to abide by, and observe the Constitution and the laws.Section IIRights and Obligations of Protection-Seeking Aliens duringthe ProcedureArticle 29. (Amended, SG No. 52/2007) (1) For the duration of the procedure the alien is entitled:1. to remain on the territory of the Republic of Bulgaria;2. to receive shelter and food;3. to receive social welfare allowance according to the procedure and in the amount applicable to Bulgarian nationals;4. to receive health care, access to medical help and gratuitous medical services according to requirements and procedures applicable to Bulgarian nationals;5. to receive psychological support;6. to receive a registration card;7. to receive a translator or interpreter.(2) The rights stipulated under paragraph 1 shall also be granted to aliens who are subject to procedures under Article 67a (2) item 1 related to the identification of a country that is competent to address their status applications. The rights stipulated under paragraph 1, items 6 and 7 shall also be granted to aliens who are subject to procedures under article 67a(2), item 2 related to the identification of a country that is competent to address their status applications.(3) An alien is entitled to have access to the labour market if the procedure has not been finalized within one year upon submission of the status application for reasons beyond his/her control.(4) An alien shall be accommodated in a transit registration centre or another type of shelter provided by the State Agency for Refugees upon assessing the health condition, family status and living conditions of the alien according to requirements and procedures determined by the Chairperson of the State Agency for Refugees. The alien goes through medical screening and testing and is quarantined by the time of obtaining the findings thereof.(5) The rights specified under paragraph 1, items 2 and 3 shall not be granted to an alien who does not belong to a vulnerable group and:1. submits a subsequent status application;2. the procedure based on the status application was suspended.(6) When the alien has financial means to provide for his/her basic needs, in the course of the general procedure he/she may obtain permission to be accommodated at his/her expense at an address of his/her choice and will not receive financial and in-kind assistance from the State Agency for Refugees.(7) Unaccompanied minor or juvenile aliens shall be accommodated by the time they become of age:1. with relatives or close acquaintances;2. with a foster family;3. in a specialized institution;4. in other accommodation facilities with special conditions for minor and juvenile persons.Article 30. (Amended, SG No. 52/2007) During the procedure an alien must:1. follow the orders and make sure he/she does not impede the officials from performing their official duties;2. submit all documents he/she holds for himself/herself and for the accompanying underage children, which may be used to establish their identity and citizenship, as well as the manner of their transportation and entry in the Republic of Bulgaria;3. certify, where he/she does not hold the documents referred to in Item 2, his/her identity, date and place of birth, and family status, and those of the accompanying underage children, by means of a declaration before an official, for whose accuracy he/she shall be criminally liable under Article 313 of the Criminal Code; 4. observe the internal rules at the transit, registration-and-reception and integration centres, participate in the activities related to their maintenance, hygiene and improvement, and take good care of the property given to him for use;5. reside at addresses authorized by the State Agency for Refugees;6. not enter the border area of the Republic of Bulgaria without due clearance;7. not leave the territory of the Republic of Bulgaria without the clearance from the State Agency for Refugees;8. assist in the clarification of his/her case by providing the competent officials with full and true information.9. (new, SG No. 52/2007) give fingerprints.Article 30a. (New, SG No. 52/2007) The application of the provisions of this Section shall reflect the delicate situation of vulnerable aliens such as minor or juvenile persons, pregnant women, elderly persons, single parents with their minor or juvenile children, persons with disabilities and persons who were victims of serious psychological, physical or sexual harassment.Section IIIRights and Obligations of Aliens Who Have Been GrantedProtectionArticle 31. The aliens in the Republic of Bulgaria who have been granted asylum or refugee status shall have equal rights and obligations.Article 32. (1) (Amended, SG No. 52/2007) An alien who was granted refugee status shall have the rights and responsibilities of a Bulgarian national except:1. the right to participate in general and municipal elections, in national and regional referenda, to participate in the establishment of political parties and be a member of such parties;2. the right to hold positions for which Bulgarian citizenship is required by law;3. the right to serve in the army;4. other restrictions explicitly provided for by law.(2) (New, SG No. 52/2007) The alien shall be notified about the rights and responsibilities resulting from the status granted in a language that he/she understands.(3) (Renumbered from paragraph 2, SG No. 52/2007) A alien who has been granted refugee or humanitarian status may be provided with financial support for housing for a period of up to 6 months from the date of entry into force of the status-granting decision, under conditions and procedure laid down by the Chairperson of the State Agency for Refugees in coordination with the Minister of Finance.(4) (Renumbered from paragraph 3, SG No. 52/2007) A alien who has been granted refugee status, shall have the right to acquire real estates on the territory of the Republic of Bulgaria under the conditions and procedure provided for aliens.Article 33. (Amended, SG No. 52/2007) (1) Unaccompanied minor or juvenile aliens who were granted refugee status or humanitarian status shall be accommodated by the time they become of age:1. with relatives or close acquaintances;2. with a foster family;3. in a specialized institution;4. in other accommodation facilities with special conditions for minor and juvenile persons.(2) accommodation under paragraph 1, items 1-3 shall comply with the procedure stipulated in the Child Protection Act. Article 34. (1) (Amended, SG No. 31/2005, amended and supplemented, SG No. 52/2007) Any alien who has been granted refugee status or humanitarian status shall be entitled to ask to be reunited with his/her family on the territory of the Republic of Bulgaria.(2) (Amended, SG No. 31/2005, SG No. 52/2007) The Chairperson of the State Agency for Refugees shall issue permissions for family reunion.(3) (New, SG No. 52/2007) The Chairperson of the State Agency for Refugees shall refrain from granting permission:1. when facts specified under article 12 (1) items 1 - 3 are relevant to any one member of the family;2. with respect to a different spouse in cases of polygamy when the alien already has a spouse in the Republic of Bulgaria.(4) (New, SG No. 52/2007) The Chairperson of the State Agency for Refugees shall permit an unaccompanied minor or juvenile alien who has been granted status to reunite with his/her parents or another adult member of his/her family or a person who is in charge of him/her pursuant to some legal act or custom in case the parents are deceased or missing.(5) (New, SG No. 52/2007) When the alien is unable to provide official papers evidencing marriage or kinship, those shall be established by means of a statement thereof signed by the alien or by other means.(6) (New, SG No. 52/2007) A transcript of the resolution shall be delivered to the alien according to the procedure of article 76.(7) (Renumbered from paragraph 3, supplemented, SG No. 52/2007) Visas shall be issued to family members by the Bulgarian diplomatic or consular representations after a permission has been granted as per Paragraph (2) and (4).(8) (New, SG No. 52/2007) The State Agency for Refugees shall facilitate the reunion of separated families by assisting aliens in issuing travel documents and visas, and ensuring that they are allowed on the territory of the country.(9) (New, SG No. 52/2007) When the whereabouts of the family members is unknown, the State Agency for Refugees in conjunction with the United Nations High Commissioner for Refugees, the Bulgarian Red Cross and other organizations shall undertake action to trace them.Article 35. Any alien who has been granted refugee or humanitarian status, shall be obliged, within 14 days of the receipt of the decision for the award of such status, to appear at the municipality in the population centre where he/she will settle, to be entered in the residents register.Article 36. Any alien who has been granted humanitarian status shall have the same rights and obligations as an alien holding a permanent residence permit in the Republic of Bulgaria.Article 37. The bodies of local government and local administration shall accept in their territory and shall enter in the residents registers the aliens who have been granted refugee or humanitarian status, and their families, and shall provide them with an opportunity to enjoy the rights granted by this Act.Article 38. (Amended and supplemented, SG No. 52/2007) Any alien who has been granted asylum, refugee status or humanitarian status may acquire Bulgarian citizenship under the conditions and the procedure laid down in the Bulgarian Citizenship Act. Article 39. (Amended, SG No. 52/2007) (1) Aliens enjoying temporary protection are entitled:1. to remain on the territory of the Republic of Bulgaria;2. to be able to work and receive vocational training;3. to have appropriate housing or financial means to obtain accommodation, if necessary;4. to social assistance;5. to emergency medical help;6. to be free to go back to their country of origin;(2) Aliens who were granted temporary protection shall be provided with written information in a language they understand concerning temporary protection rules.(3) Aliens belonging to a vulnerable group and who were granted temporary protection shall receive necessary medical or other services according to requirements and procedures applicable to Bulgarian nationals.(4) Unaccompanied minor or juvenile aliens who were granted temporary protection shall be accommodated:1. with relatives or close acquaintances;2. with a foster family;3. in a specialized institution;4.in other accommodation facilities with special conditions for minor and juvenile persons.(5) An alien who was granted temporary protection and has in its course applied for status, will not be able to enjoy the rights granted to aliens who undergo the status granting procedure.(6) Upon transfer of the alien to the territory of another European Union member-state, the alien shall no longer be entitled to the rights specified in paragraphs 1-4.Article 39a. (New, SG No. 52/2007) (1) An alien who was granted temporary protection shall have the right to reunite with his/her spouse, with their juvenile and unmarried children provided that they declare their willingness to do so.(2) The Chairperson of the State Agency for Refugees may allow the reunion of an alien enjoying temporary protection with other close relatives who used to belong to one household when the relevant events occurred and were dependents of the alien in his/her country of origin. In each specific case additional difficulties that would result from failure to reunite and that would affect those individuals are contemplated as well.(3) When the whereabouts of the family members are unknown, the State Agency for Refugees on conjunction with the United Nations High Commissioner for Refugees, the Bulgarian Red Cross and other organizations shall undertake measures for tracing them.(4) In case of reunion family members shall have all the rights that were given to aliens who have been granted temporary protection.(5) In case the family reunites on the territory of another European Union member-state, the alien will no longer enjoy the rights stipulated under article 39.Section IVDocuments of aliens who have applied for or have been granted protection(Title amended, SG No. 52/2007) Article 40 (Amended, SG No. 52/2007) (1) Aliens seeking or granted protection shall be issued the following types of documents:1. registration card;2. card of an alien who was given asylum;3. refugee card;4. card of an alien who has been granted humanitarian status;5. foreign travel certificate of an alien who was given asylum;6. refugee foreign travel certificate;7. foreign travel certificate of an alien with humanitarian status;8. alien's certificate of return to the Republic of Bulgaria;9. transfer permit.(2) Any alien above the age of 14 and any alien under the age of 14 who is unaccompanied by a member of their family shall be issued registration cards.(3) The registration card cannot validate an alien's identity.Article 41. (Amended, SG No. 52/2007) (1) The State Agency for Refugees shall issue:1. a registration card to an alien who has applied for asylum - valid for three months.2. a registration card to an alien who undergoes a procedure for identifying the country which is competent to address his/her status application - valid for three months.3. a registration card to an alien who undergoes an accelerated procedure for status acquisition - valid for one month.4. a registration card to an alien who undergoes the general status acquisition procedure - valid for three months.5. a registration card to an alien who was granted temporary protection - for the duration of the protection period.6. transfer permit to an alien who was granted temporary protection.(2) The term of validity of the registration card under paragraph 1, items 1 - 4 may be extended with the initially defined duration until completion of relevant procedures.(3) In case of extension of the temporary protection period, the registration card of an alien who was granted temporary protection shall be extended accordingly.Article 42. (1) (Amended and supplemented, SG No. 52/2007) A foreign travel certificate of an alien who was given asylum or a refugee foreign travel certificate shall give the holder thereof the right to leave and enter the Republic of Bulgaria within the term of its validity and under the conditions and procedure applicable to Bulgarian nationals, provided that no other requirements exist in the country of destination.(2) The foreign travel certificate of an alien with humanitarian status shall give the holder thereof the right to leave and enter the Republic of Bulgarian within the term of its validity, under the conditions and procedure applicable to aliens permanently residing in the Republic of Bulgaria.Article 43. (Repealed, SG No. 52/2007). Article 44. (Amended, SG No. 52/2007) (1) The registration card shall contain the following data:1. status of the alien in accordance with this Act;2. document number;3. personal Identification Number or Alien Personal Number in accordance with the alien's status;4. sex;5. holder's photograph;6. holder's signature;7. date of issuance;8. expiration date;9. extension date;10. issuing authority;11. current address;12. reference to the section of this Act by force of which the alien is entitled to stay in the Republic of Bulgaria;13. national ID document;14. other data.(2) In addition to the data stipulated in paragraph 1, the registration card shall also contain the data stated by the alien:1. name;2. date of birth;3. place of birth;4. nationality;5. name and date of birth of his/her juvenile children accompanying him/her;6. languages he/she speaks.(3) The names of the alien on the registration card shall have the same order and number as stated in the foreign travel document the alien used to enter the Republic of Bulgaria or another ID document. If the alien does not have such documents, his/her name shall follow the order specified in the Declaration stipulated in article 30, item 3.Article 44a. (New, SG No. 52/2007) Any alien who was issued a registration card must ensure that it is not damaged, destroyed or lost.Article 44b. (New, SG No. 52/2007) (1) No fees are collected with reference to issuing documents under article 40 (1) items 1 and 9 and extending documents under article 40 (1) item 1.(2) If an alien holding a registration card loses, damages or destroys that card, shall pay BGN 10 for the issuance of a new one.Article 45. (1) (Amended, SG No. 52/2007) The templates of registration cards shall be approved by an act of the Council of Ministers and shall be published in the State Gazette.(2) (New, SG No. 52/2007) The transfer permit under Article 40 (1) item 9 shall be issued according to the template attached hereto.(3) (Renumbered from paragraph 2, SG No. 52/2007) Any procedure and conditions for the issue and use of identity documents not provided for by this Section shall be governed by the Bulgarian Identity Documents Act. Chapter FiveSPECIALIZED STATE BODY AND ADMINISTRATIONArticle 46. The Chairperson of the State Agency for Refugees shall be a body of the executive power vested with special competence.Article 47. (1) The State Agency for Refugees under the Council of Ministers shall be a legal person financed through the state budget and shall have its seat in Sofia with territorial units throughout the country.(2) The territorial units of the State Agency for Refugees shall be:1. (amended, SG No. 52/2007) transit centres: for registration, accommodation, medical examination, and implementation of procedures to identify a country competent to address the relevant status application and accelerated procedures in respect of illegal aliens;2. (amended, SG No. 52/2007) registration-and-reception centres: for registration, accommodation, medical examination, social and medical assistance and implementation of procedures to identify a country competent to address the relevant status application and status determination procedures; for accommodation of aliens applying for asylum;3. integration centres: for providing Bulgarian language training, vocational training and other activities that are essential to the integration of aliens seeking or granted protection in the Republic of Bulgaria.(3) (Supplemented, SG No. 109/2007) The transit, registration-and-reception and integration centres shall be opened and closed down by the Council of Ministers on a motion from the Chairperson of the State Agency for Refugees in coordination with the Minister of Finance, the Minister of Interior, the Minister of Labour and Social Policy, the Minister of Justice, the Minister of Foreign Affairs, the Minister of Regional Development and Public Works, the Chairperson of the State Agency for National Security and the Mayor of the relevant municipality.(4) The operation, structure, proceedings and composition of the State Agency for Refugees and the units thereof shall be governed by Rules of Procedure adopted by the Council of Ministers.Article 48. (1) (Amended, SG No. 52/2007) The Chairperson of the State Agency for Refugees shall:1. grant, refuse, withdraw and discontinue refugee status and humanitarian status in the Republic of Bulgaria; revoke temporary protection in the cases specified under article 17 (4).2. suspend and discontinue the status determination procedure;3. decide on applications for family reunions;4. decide on other applications filed by aliens with respect to whom status determination procedure has been opened or aliens who have been granted refugee or humanitarian status in the Republic of Bulgaria;5. inform the Council of Ministers of the necessity to introduce temporary protection on the territory of the Republic of Bulgaria; inform on the necessity of extending the temporary protection period;6. issue penalizing decrees under Chapter Eight;7. approve the templates of documents issued by the State Agency for Refugees, except for the registration card;8. submit a proposal to the Council of Ministers for the approval of the templates of registration cards;9. designate the decision-making bodies of the State Agency for Refugees which shall conduct the procedures provided for in Chapter Six, Section Ian;10. designate the interviewing bodies of the State Agency for Refugees which shall conduct the accelerated procedures provided for in Chapter Six, Section II;11. manage and allocate the funds from the budget, supervise their disbursement for specific purposes, in coordination with the Minister of Finance and the Minister of Labour and Social Policy, define the expenditure thresholds for in-kind and financial support to aliens seeking protection or to those who were granted status.(2) At the request of the President of the Republic of Bulgaria, the Chairperson of the State Agency for Refugees shall give an opinion on any asylum application lodged.(3) (Amended, SG No. 52/2007) Every year as well as in case of significant change in the overall situation in a particular country of origin and in case of significant influx of aliens from that country, the Chairperson of the State Agency for Refugees shall define the categories of aliens whose cases shall be reviewed based on the following criteria:1. the nature and degree of respect for human rights in the relevant countries or parts of them;2. the operations of international organizations in the relevant countries;3. the policy of other European Union Member States regarding persons seeking protection from the relevant countries of origin.Article 49. (1) The Chairperson of the State Agency for Refugees shall be designated by a decision of the Council of Ministers and shall be appointed by the Prime Minister of the Republic of Bulgaria.(2) The Chairperson of the State Agency for Refugees shall be a Bulgarian national who does not hold any other citizenship, and who has a university degree and not less than five years of work experience.Article 50. (1) In the performance of his/her activities, the Chairperson of the State Agency for Refugees shall be assisted by two deputy chairpersons.(2) The deputy chairpersons shall be appointed by the Prime Minister on a motion from the Chairperson of the State Agency for Refugees. The deputy chairpersons shall be Bulgarian nationals who do not hold any other citizenship, and who have a university degree and work experience of five years or more.Article 51 (1) (Previous article 51, SG No. 52/2007) The transit, registration-and-reception and integration centres shall be managed by directors.(2) (New, SG No. 52/2007) Directors of transit-and-reception centres shall make decisions specified in article 29 (4) - (7).Article 52. (Amended, SG No. 52/2007) The Chairperson of the State Agency for Refugees may delegate his/her powers under Article 48 (1), Items 1 - 4 and 6, except for the power to withdraw status, to the deputy chairpersons of the State Agency for Refugees.Article 53. The State Agency for Refugees shall:1. (amended, SG No. 52/2007) organize the reception and temporary accommodation of aliens who have applied for status or have been granted protection in the territory of the Republic of Bulgaria and, in cooperation with the Bulgarian Red Cross and other non- governmental organizations, provide them assistance in adapting to the Bulgarian conditions; organize Bulgarian language courses and vocational training courses;2. organize, at the request of the President of the Republic of Bulgaria, investigation and clarification of facts and circumstances relating to a filed asylum application;3. issue documents for certification purposes;4. (amended, SG No. 52/2007) organize, jointly with the central bodies of the executive power, the Bulgarian Red Cross and other non-governmental organizations, the activities relating to the provision of social, medical and psychological assistance for aliens who have applied for status or have been granted protection; assist in the integration of aliens who have been granted protection;5. (amended, SG No. 52/2007) carry out, jointly with the bodies of the local government and local administration, the Bulgarian Red Cross and other non-governmental organizations, awareness activities on refugee issues, and organize charitable events for material assistance;6. (amended, SG No. 52/2007) develop independently or participate in the drafting of legal instruments and international treaties relating to the protection of aliens, and develop programs for integration in the Bulgarian society of aliens who were granted protection;7. (amended, SG No. 52/2007) fulfil the functions entrusted to it by the temporary protection action plan;8. cooperate with the United Nations High Commissioner for Refugees in the performance of his/her functions, facilitate the monitoring of the implementation of the provisions of the Convention relating to the Status of Refugees of 1951 and the Protocol relating to the Status of Refugees of 1967, and provide information and statistical data;9. (repealed, SG No. 52/2007); 10. assign the performance of studies and analyses on refugee problems, organize conferences and seminars and publish information materials on the problems of refugees.11. (new, SG No. 52/2007) organize the selection and registration of translators as well as their training related to the specific requirements of the translation process;12. (new, SG No. 52/2007) be the competent authority with respect to funding from the European Refugee Fund which shall develop programs and coordinate them with the European Commission, organize tender procedures, project selection, disburse payments, ensure technical implementation, financial supervision, monitoring and evaluation of the Fund funding; those powers may be partially delegated to other government authorities;13. (new, SG No. 52/2007) provide a regular update to the European Commission about the number of individuals who have applied for status and the number of registration cards issued.Article 54. (1) The State Agency for Refugees shall, jointly with the Ministry of Foreign Affairs, the International Federation of Red Cross and Red Crescent Societies, the International Committee of the Red Cross and the non-governmental organizations, provide assistance to aliens seeking or granted protection, before the authorities of another state or before an international body, in providing them with the documents required for the exercise of their rights.(2) Where for objective reasons a alien seeking or granted protection cannot be provided with a document under the procedure laid down in paragraph (1), the State Agency for Refugees shall, based on the facts it has established and on a declaration signed by the alien, make arrangements for the issue of a certificate. Based on this certificate, the competent authorities shall issue a Bulgarian document that enables the said alien to exercise those rights.(3) The documents issued in accordance with paragraph (2) shall substitute the official documents issued to aliens by or through the authorities of their countries.(4) The foreign documents of education, qualification, academic degree or title, held by aliens seeking or granted protection shall be recognized in accordance with the domestic legislation and the terms and conditions laid down in international treaties to which the Republic of Bulgaria is a party.Article 55. Donations and grants received, as well as the funds received under international programs and agreements shall be credited to an extra- budgetary account of the State Agency for Refugees in accordance with Article 45, paragraph (2) of the State Budget Procedures Act, and shall be used for the purposes which they were provided for.Article 56. (1) The State Agency for Refugees may, independently or jointly with the bodies of the local government and local administration, the Bulgarian Red Cross and other non-governmental organizations, organize auxiliary economic activities whereby the aliens seeking or granted protection shall be offered an opportunity for vocational training and work.(2) The activities referred to in paragraph (1) shall be financed with target funds from the extra-budgetary account or from the national budget.Article 57. The officials of the State Agency for Refugees shall certify their official capacity by means of an official card. The bodies of the state and local government and local administration shall be obliged to assist the officials of the State Agency for Refugees in the performance of their official duties.Chapter SixPROCEDURESection IGeneral RulesArticle 58. (1) Any alien who asks to be granted asylum shall submit a written application to the President of the Republic of Bulgaria. Where the application is filed with another state authority, the latter must forthwith forward it to the President.(2) (Repealed, SG No. 52/2007). (3) (Amended, SG No. 52/2007) An alien may personally state his/her wish to be granted status before an official at the State Agency for Refugees.(4) (Amended, SG No. 52/2007) Where the application referred to in paragraph (3) is filed with another state authority, the latter must forthwith forward it to the State Agency for Refugees.(5) (Amended, SG No. 52/2007) An alien who was granted temporary protection shall be entitles submit an application for refugee or humanitarian status.(6) (Amended and supplemented, SG No. 52/2007) No later than 15 days upon application submission, the applicant must be guided through the established requirements for filing the application, the procedure to be followed, his/her rights and obligations, and the organizations providing legal and social assistance to aliens in a language he/she understands.(7) (Repealed, SG No. 52/2007, new, SG No. 109/2007) Upon receipt of a request for special protection, the competent authorities shall mandatorily require a written opinion on behalf of the State Agency for National Security.Article 59. (1) (Amended, SG No. 52/2007) The application for status may be in a written, oral or any other form and, translation or interpretation services shall be provided where needed. An application which is not made in writing, shall be recorded by the competent official and shall be signed or otherwise authenticated by the applicant and by the translator or interpreter.(2) (Amended, SG No. 52/2007) The application must contain a request to the Republic of Bulgaria.Article 60. (1) (Amended, SG No. 52/2007) The identity documents of the alien applying for status shall be withheld by and kept at the State Agency for Refugees until the procedure is completed with an effective decision.(2) (Amended, SG No. 52/2007) Officials of the State Agency for Refugees shall search the alien check the belongings carried by him/her, take a photograph and fingerprints as well as other and record other identifying biometric features under the conditions and procedure laid down by the Ministry of Interior Act while respecting the alien's dignity.(3) (Amended, SG No. 52/2007) Officials who perform the activities as per paragraph (2) shall be designated by an order of the Chairperson of the State Agency for Refugees.(4) (New, SG No. 52/2007) Fingerprints and other identifying biometrics as well as the alien's personal data may be used in the exchange of information with other countries with respect to the procedure under Section Ia, provided that the alien is notified thereof.Article 61. (Amended, SG No. 52/2007) (1) The application for asylum shall be registered with the Presidential Administration.(2) An alien who has applied for status shall be registered at the State Agency for Refugees and his/her personal file shall be created.(3) When there are reasonable grounds to believe that the alien is minor or juvenile the interviewing authority shall appoint an investigation to establish his/her age.(4) When there are reasonable grounds to believe that the alien cannot attend to his/her needs due to retardation or a mental condition, the interviewing body shall appoint a psychiatric examination.Article 62. The President of the Republic of Bulgaria may grant asylum even if the conditions as per Article 48, paragraph (2) and Article 53, paragraph (2) are not fulfilled.Article 63. (Amended, SG No. 52/2007) (1) The State Agency for Refugees shall have the right to collect information about aliens who have applied for status in order to identify the country that is competent to review the application, establish the identity and clarify the circumstances relating to the application filed.(2) During the registration process the State Agency for Refugees shall collect data about the name, nationality, date and place of birth, sex, marital status and kinship, identification papers and other documents owned by aliens.(3) The sources of information as per paragraph (1) may be both the aliens themselves and Bulgarian or foreign natural or legal persons.(4) No information about aliens who are seeking or have been granted protection shall be gathered from or divulged to the persecuting official authorities and organizations.(5) The State Agency for Refugees shall create its own information bank under a procedure set out by its Chairperson and in compliance with the Personal Data Protection Act. Article 63a. (New, SG No. 52/2007) (1) Upon registration completion a date for an interview is appointed. The alien who has applied for status shall be notified in due time about the date of each subsequent interview appointment.(2) The alien must provide his/her own evidence by the time the ruling on his/her application is issued and in case no such evidence is provided the ruling shall still be pronounced regardless of the absence thereof.(3) An interview shall be conducted with the alien and minutes shall be taken during that interview. As needed by the relevant procedure, the interviewing authority shall perform further interviews.(4) An alien who has applied for status shall be interviewed at his/her request by an officer of an interviewing authority or a translator, respectively interpreter, of the same gender.(5) An interview shall not be conducted with an alien who is unable to attend to his/her needs due to retardation or a mental condition or for objective reasons is unable to provide spoken or written statements.(6) The interview shall be performed in a language requested by the alien. If this is impossible the interview shall be performed in a language that the alien is believed to be able to speak.(7) The minutes shall be read to the alien and should be signed by him/her, by the translator or interpreter and by the interviewing authority.(8) Is the alien refuses to sign the minutes of the interview the refusal should be authenticated by the signatures of two witnesses. The reasons for the refusal shall be noted in the minutes.(9) In the course of an interview with a minor or juvenile alien, his/her representative shall have the right to ask questions allowed by the interviewing authority and state various reasons.Article 64. The government agencies shall provide information requested by the State Agency for Refugees for clarifying the circumstances relating to the filed application.Article 65. (Amended, SG No. 52/2007) The alien's personal information that was divulged in the course of the status proceedings or after status was granted shall be processed in the register of the State Agency for Refugees in compliance with requirements stipulated in the Personal Data Protection Act. That information may be used for the purposes of international cooperation by the countries signatories to the Convention relating to the Status of Refugees of 1951. Article 66. (1) The provisions of the Foreigners in the Republic of Bulgaria Act shall apply to any alien with respect to whom there is an in force decision for status refusal, termination or withdrawal of status, or whose procedure has been discontinued.(2) (Amended, SG No. 52/2007) The State Agency for Refugees shall notify in writing the Ministry of Interior of the decision referred to in paragraph (1).Article 67. (1) (Amended and supplemented, SG No. 52/2007) Coercive administrative measures, such as "revocation of the right to stay in the Republic of Bulgaria ", "forcible escort to the border of the Republic of Bulgaria", "expulsion" and "ban on entering the Republic of Bulgaria " shall not be enforced prior to the completion of the procedure with an effective decision in place.(2) (Amended and supplemented, SG No. 52/2007) The coercive administrative measures as per paragraph (1) shall be reversed, where the alien has been given asylum or granted refugee status or humanitarian status.(3) Paragraphs (1) and (2) shall not apply where there are grounds to assume that the alien seeking or granted protection presents a threat to the national security or if he/she, having been convicted of a serious crime by a judgment that has come into effect, constitutes a threat to the community.Section Ia(New, SG No. 52/2007)Procedure for determining the country that is responsible forexamining the relevant status application. Transfer.Article 67a. (New, SG No. 52/2007) (1) The procedure under this article shall be executed in compliance with Council Regulation (EC) No. 343/2003, Commission Regulation (EC) No. 1560/2003, Council Regulation (EC) No. 2725/2000 and Council Regulation (EC) No. 407/2002.(2) The procedure under this article shall start:1. upon the registration of an alien applying for status;2. (supplemented, SG No. 109/2007) upon referral to the Ministry of Interior and by the State Agency for National Security of an alien residing illegally on the territory of Bulgaria;3. upon request for taking responsibility or return acceptance of an alien.(3) A procedure under this article shall not start and progress in the case of a subsequent application for status on the territory of the Republic of Bulgaria.Article 67b. (New, SG No. 52/2007) (1) After the start of the procedure necessary action shall be taken to investigate the evidence and the fact with respect to determining the country that is competent to review the relevant status application.(2) If necessary an interview shall be performed with the alien.Article 67c. (New, SG No. 52/2007) In the cases specified under article 67a(2) item 1 upon the completion of evidence examination and receipt of a reply from the country that was asked to review the application, the decision-making body shall:1. start a procedure for granting status in the Republic of Bulgaria;2. refrain from a procedure for granting status in the Republic of Bulgaria and permit the alien's transfer to the competent country.Article 67d. (New, SG No. 52/2007) In the cases specified under article 67a(2) item 2 upon the completion of evidence examination and receipt of a reply from the country that was asked to review the application, the decision-making body shall:1. permit the alien's transfer to the competent country;2. terminate the procedure in case the country that was asked to review the application refuses to take responsibility or to receive the alien.Article 67e. (New, SG No. 52/2007) (1) The decision-making body shall rule on requests for assuming responsibility or return receipt of individuals.(2) When in the cases under article 67a(2) item 3 it is established that the Republic of Bulgaria is the competent country to review an application, the decision-making body shall start a procedure for granting status in the Republic of Bulgaria in compliance with the rules specified in Sections II, III and IV of this chapter.(3) When a request for return receipt of an alien whose application has already been reviewed in substance, the decision-making body shall terminate the procedure under this section.(4) When in the cases under article 67a(2) item 3 it is established that the Republic of Bulgaria is not the competent country to review an application, the decision-making body shall refuse the aliens transfer and terminate the procedure under this section.Article 67f. (New, SG No. 52/2007, supplemented, SG No. 109/2007) The decisions under this section shall be delivered in compliance with article 76 and copies thereof shall be forwarded to the Ministry of Interior and to the State Agency for National Security.Article 67g. (New, SG No. 52/2007) (1) The State Agency for Refugees shall make arrangements with the relevant authority of the country that is competent to review the application concerning the location, date and time of the aliens arrival on its territory and in cases of tacit receipt arrangements shall also be made with respect to the procedure for handing the alien over to the competent authorities.(2) Alien's hand-over shall be performed upon a decision of the State Agency of Refugees and all documents belonging to the alien shall be forwarded to the country that is competent to review his/her application.(3) If the hand-over is not performed, the State Agency for Refugees shall coordinate a new hand-over date with the relevant authority in the country competent to review the application.Article 67h. (New, SG No. 52/2007) (1) (Supplemented, SG No. 109/2007) The Ministry of Interior and the State Agency for National Security shall provide administrative cooperation related to the receipt of an alien in the Republic of Bulgaria when the latter was established as a country competent to review his/her application and shall take action related to the aliens receipt and transfer to the State Agency for Refugees together with all accompanying documents.(2) (Supplemented, SG No. 109/2007) The Ministry of Interior and the State Agency for National Security shall provide administrative cooperation and take action related to the hand-over of the alien to the established competent country to review his/her application together with all accompanying documents.Article 67i. (New, SG No. 52/2007) The Republic of Bulgaria shall cover costs related to the transfer of the alien to the arrival point in the country competent to review his/her application and transportation costs from the arrival point in the Republic of Bulgaria to the State Agency for Refugees.Article 67j. (New, SG No. 52/2007) The Council of Ministers shall adopt a regulation related to the responsibilities and coordination among governmental bodies that perform actions pertaining to the effectuation of this section.Section IIAccelerated ProcedureArticle 68. (Amended, SG No. 52/2007) (1) An accelerated procedure shall be launched:1. Upon entering into force of the decision for launch of a procedure to grant status in the Republic of Bulgaria;2. in case a decision was not made within the required timeframe with respect to Council Regulation (EC) No. 343/2003 and Commission Regulation (EC) No. 1560/2003.3. upon the registration of an alien who has submitted a subsequent status application.(2) When the Republic of Bulgaria is identified as the competent country or has received back an alien as per Council Regulation (EC) No. 343/2003 and Commission Regulation (EC) No. 1560/2003 the status determination procedure shall be launched upon the registration of the alien with the State Agency for Refugees after the hand-over.(3) An accelerated procedure shall not be launched when the procedure for identifying a competent country to review a status application ended with a procedure termination decision.Article 69. (Repealed, SG No. 52/2007). Article 70. (Amended, SG No. 31/2005, SG No. 52/2007) (1) Within 3 days after the launch of the procedure the interviewing body must make a decision:1. to turn down the application on grounds of being manifestly unfounded as per Article 13(1);2. to discontinue the procedure as per Article 13 (2) and Article 15 (1), Items 6, 8 and 9;3. to start a general procedure.(2) If no decision was made within the timeline specified in paragraph 1 a general procedure shall be launched.(3) In the cases specified under article 68 (2) the three-day period shall start upon receipt of the documents accompanying the alien.(4) The timeline under paragraph 1 shall be interrupted by the time an expert opinion under article 62 (3) or (4) is obtained.(5) The lack of sufficient information due to the fact that no interview was performed under article 63a (5) shall not be a reason by itself for rejecting the application.(6) copies of the decisions under this article shall be delivered as required by article 76.Article 71. (1) (Previous Article 71, SG No. 31/2005, amended, SG No. 52/2007) The accelerated procedure shall not be applied to an unaccompanied minor or juvenile alien who has applied for status.(2) (New, SG No. 31/2005, amended, SG No. 52/2007) An accelerated procedure is not applicable when the application was submitted by an alien who has already been granted temporary protection.Section IIIGeneral ProcedureArticle 72. (Amended, SG No. 31/2005, SG No. 52/2007) (1) The general procedure shall start:1. upon entry into force of the decision under article 70 (1) item 3;2. in the cases specified in article 70 (2);3. upon alien's registration after termination or revocation of granted temporary protection with respect to aliens who have applied for status while in temporary protection.(2) A general procedure with respect to unaccompanied minor or juvenile aliens shall start:1. upon entering into force of the decision authorizing the launch of a procedure to grant status in the Republic of Bulgaria;2. when a decision has not been made within the specified timeline;3. upon the alien's registration in case he/she has submitted a subsequent status application;4. upon the alien's registration with the State Agency for Refugees after hand-over, when the Republic of Bulgaria is established as the competent country to review the application;5. upon alien's registration after termination or revocation of granted temporary protection with respect to aliens who have applied for status while in temporary protection.Article 73. (Amended and supplemented, SG No. 31/2005, amended, SG No. 52/2007) Status applications shall be reviewed by the State Agency for Refugees which will first discuss the refugee status option. If refugee status is not granted, humanitarian status is the option to be discussed.Article 74. (Amended, SG No. 52/2007) Within two months of the launch of the general procedure, the interviewing body shall draw up an opinion, which shall be submitted to the Chairperson of the State Agency for Refugees together with the personal file.Article 75. (1) (Amended, SG No. 52/2007) The Chairperson of the State Agency for Refugees shall, within three months of the launch of the general procedure, make a decision whereby he/she shall:1. grant refugee status;2. refuse refugee status;3. grant humanitarian status;4. refuse humanitarian status.(2) (Amended, SG No. 52/2007) The ruling on the status application shall take into account all relevant facts concerning the applicant's personal situation, his/her country of origin or third countries. When the applicant's statements are not supported by evidence, they shall be deemed reliable if the individual has made an effort to justify the application and has given a satisfactory explanation of the lack of evidence. The lack of sufficient data of persecution including lack thereof due to the failure to perform an interview under article 63a (5) may not form the sole reason for a refusal to grant status.(3) (Amended, SG No. 52/2007) Where the information gathered on a specific case is insufficient, the Chairperson of the State Agency for Refugees may extend the time limit as per paragraph 1 to up to three months. The alien shall be informed thereof by means of a recorded delivery message.(4) (Repealed, SG No. 52/2007). (5) (Repealed, SG No. 52/2007). Article 76. (1) A copy of the decision of the Chairperson of the State Agency for Refugees shall be served on the alien seeking protection. The contents of the decision, as well as the rights and obligations arising there from, shall be explained to the alien in a language he/she understands.(2) The receipt of the decision shall be certified by the signatures of the alien seeking protection and of the translator or interpreter. The refusal of the alien to sign the decision shall be certified by the signatures of two witnesses.(3) Where the decision is not served in person within 14 days of the issue thereof, the alien shall be sent a notice accompanied by an acknowledgement of receipt.(4) In the event of failure to appear within 7 days of receipt of the notice accompanied by an acknowledgement of receipt, the decision shall be deemed served.(5) If the notice and advice of delivery is returned to the State Agency for Refugees due to impossible delivery, the decision shall be deemed served.(6) (New, SG No. 52/2007) Upon delivery of the decision to the alien, the latter shall be entitled to review his/her personal file.Section IVSuspension and Discontinuance of Status Determination ProcedureProcedure to Withdraw and Terminate Status Granted(Title amended, SG No. 52/2007) Article 77. (1) The Chairperson of the State Agency for Refugees shall, on a proposal from the competent interviewing body, suspend the status determination procedure as per Article 14.(2) (Supplemented, SG No. 52/2007) The suspended procedure shall be resumed, if the alien seeking protection produces evidence that objective obstacles have made him/her change address or have prevented him/her from appearing or assisting the officials.(3) (New, SG No. 52/2007) The Chairperson of the State Agency for Refugees shall terminate the status determination procedure based on a proposal by the interviewing body, based on circumstances provided for in this Act or based on a request by the alien.Article 78. (Amended, SG No. 52/2007) (1) In the light of new information, the interviewing body shall make proposals for revocation or discontinuation of status granted.(2) The status revocation or discontinuation procedure shall be launched upon a decision by the Chairperson of the State Agency for Refugees.(3) The alien shall be notified with a recorded delivery letter about the launch of the said procedure, the reasons thereof, the date and location for an interview in the course of which the alien will be given the opportunity to state any objections he/she may have to the status revocation or discontinuation.(4) In the course of the status revocation or discontinuation procedure articles 63, 63a, 74 and 75(3) shall apply.(5) Within three months after the launch of the procedure the Chairperson of the State Agency for Refugees shall make a decision to revoke or discontinue the alien's status. The Chairperson of the State Agency for Refugees shall pass a decision regardless of the absence of objections on the part of the alien when those have not been voiced for reasons under the alien's control.(6) When the Chairperson of the State Agency for Refugees does not find reasons for status revocation or discontinuation, he/she shall terminate the procedure.Article 79. (Amended, SG No. 52/2007) (1) The status revocation or discontinuation procedure may be launched based on a request by an alien who has been granted status.(2) The request should be filed in compliance with article 59 (1).(3) The request shall contain:1. The names, address and Personal Identification Number of the alien;2. The reasons of the request;3. The essence of the request;4. Aliens signature.(4) Within one month after submission of the said request the Chairperson of the State Agency for Refugees shall pass a decision whereby status shall be discontinued.Article 79a. (New, SG No. 52/2007) Decisions under this section shall be delivered in compliance with article 76 with the exception of the procedure termination decision.Section VRules on Temporary ProtectionArticle 80. (Amended, SG No. 52/2007) (1) The Council of Ministers shall:1. make a request to the European Commission for introduction of temporary protection;2. inform the European Commission about the capacity of the Republic of Bulgaria to receive aliens needing temporary protection;3. appoint a national contact point and notify the other European Union Member States and the European Commission thereof;4. adopt an action plan for temporary protection in the Republic of Bulgaria;5. make a request to the European Commission regarding discontinuation of temporary protection or extension thereof;6. undertake measures to facilitate the voluntary return of aliens who have been granted temporary protection or whose temporary protection has been discontinued.(2) The action plan for temporary protection shall contain:1. the organization and functions of a temporary operational body that will implement the plan;2. the funding mechanisms;3. procedures to ensure food and shelter.Article 81. (Amended, SG No. 52/2007) (1) The temporary operational body shall exchange information with the European Union Member States and European Union bodies, as well as with the United Nations High Commissioner for Refugees regarding the national legislation and other provisions related to the implementation of temporary protection, the number of aliens who have been granted temporary protection, the capacity for additional aliens who may be received and information about individual aliens in the cases of family reunions and transfer of aliens enjoying temporary protection.(2) The temporary operational body shall handle issues related to temporary protection in conjunction with international and Bulgarian organizations.Article 82. (Amended, SG No. 52/2007) (1) Temporary protection shall be discontinued:1. upon the expiration of its term;2. upon a decision of the Council of the European Union.(2) The Chairperson of the State Agency for Refugees shall revoke temporary protection with respect to an alien in the cases stipulated in article 17 (4). If there is a revocation ruling the provisions of article 78 shall apply and a copy of the ruling shall be delivered per the provisions of article 76.(3) Upon revocation or discontinuation of temporary protection the alien shall abide by the provisions of the Foreigners in the Republic of Bulgaria Act unless he/she has applied for status.Article 83. (Amended, SG No. 52/2007) (1) The Republic of Bulgaria shall receive back on its territory aliens registered in the country as persons enjoying temporary protection who illegally stay or attempt to enter on the territory of another European Union Member State.(2) The Republic of Bulgaria shall receive back on its territory aliens registered in the country as persons enjoying temporary protection who have gone back to their country of origin.Chapter SevenJUDICIAL SUPERVISION(Section I. Appeal of Accelerated Procedure Decisions)(Title repealed, SG No. 52/2007) Article 84. (Amended, SG No. 30/2006, effective 1.03.2005, SG No. 52/2007) (1) Decisions as per Chapter Six, Section Ia may be appealed in the Administrative Court of the City of Sofia through the body issuing the decision within seven days after copies of them were delivered. The appeal shall not have the power to suspend the enforcement of the relevant decision unless the Court rules otherwise.(2) Decisions under article 51 (2) and article 70 (1) items 1 and 2 may be appealed in the administrative court located in the region of the current address specified on the aliens registration card within 7 days upon delivery of copies of the said decisions. The appeal shall be filed through the body that has issued the relevant decision.(3) If the appeal was filed after the respective deadline, it shall be returned to the sender against a receipt. If the appeal was returned by a recorded delivery and the letter comes back to the State Agency for Refugees due to delivery failure, the appeal shall be enclosed with the alien's personal file.(4) The appeal and a certified copy of the aliens personal file shall immediately be forwarded to the respective Court. The appeal shall have the power to suspend the enforcement of the decision under article 70 (1) items 1 and 2.(5) The Court shall launch proceedings within three days after the appeal was filed.Article 85. (1) (Amended, SG No. 30/2006, effective 1.03.2005) The administrative court shall hear the appeal at an open session after having summoned the parties and shall deliver its judgement within one month of the institution of proceedings. In such cases the parties must be summoned three days before the session at the latest.(2) (Amended and supplemented, SG No. 52/2007) Where the court reverses the decision under article 70 (1) items 1 and 2 and returns the case with mandatory instructions to be re-examined, the interviewing body in the accelerated procedure shall be under an obligation to make a new decision within three days after receiving the court ruling.(3) Where the court upholds a decision that has been appealed, the latter shall be enforced.(4) (Amended, SG No. 30/2006, effective 1.03.2005) The judgement of the administrative court shall not be subject to appeal before a court of cassation.Article 86. (Amended, SG No. 30/2006, repealed, SG No. 52/2007). (Section II. Appeal in General Procedure)(Title repealed, SG No. 52/2007) Article 87. (Amended, SG No. 52/2007) Decisions referred to in Articles 34 (3), 39a (2), 75 (1) Items 2 and 4, 78 (5) and 82 (2), shall be subject to appeal before the Supreme Administrative Court within 14 days of being delivered.Article 88. (1) (Previous text of Article 88, SG No. 52/2007) The appeal shall be lodged through the Chairperson of the State Agency for Refugees. The appeal lodged shall suspend the enforcement of the decision.(2) (New, SG No. 52/2007) If the appeal was filed after the respective deadline, it shall be returned to the sender against a receipt. If the appeal was returned by a recorded delivery and the letter comes back to the State Agency for Refugees due to delivery failure, the appeal shall be enclosed with the alien's personal file.Article 89. The Chairperson of the State Agency for Refugees shall forward the appeal and the personal file to the Supreme Administrative Court within 3 days of receipt of the appeal.Article 90. (1) The Supreme Administrative Court shall hear the appeal within one month in an open session and after having summoned the parties.(2) Where the Supreme Administrative Court repeals the appealed decision and returns the file with mandatory instructions to be re-examined, the Chairperson of the State Agency for Refugees must make a new decision within 14 days.(3) The decision of the court shall be subject to a cassation appeal.Article 91. (Amended, SG No. 30/2006, SG No. 52/2007) The provisions of the Administrative Procedure Code and the Code of Civil Procedure shall apply to all matters not regulated by this Chapter.Article 92. (Supplemented, SG No. 52/2007) The proceedings under this Chapter shall be exempt from stamp duty and from payment of any other charges with the exception of charges related to expert examinations. Charges related to expert examinations shall be relieved if the alien does not avail of funds to meet his/her basic needs.Chapter EightADMINISTRATIVE PENAL LIABILITYArticle 93. (Amended, SG No. 52/2007) An alien who damages or destroys an item provided for him/her to use by the state Agency for Refugees shall be liable to a fine of BGN 50 to 200 and shall also pay back the value of the item.Article 94. (Repealed, SG No. 52/2007). Article 95. (1) (Amended, SG No. 52/2007) Non-observance of the provisions of this Act shall be established by statements drawn up by officials of the State Agency for Refugees designated by an order of the Chairperson thereof.(2) Based on the statements of violation drawn up, the Chairperson of the State Agency for Refugees or a deputy chairperson explicitly authorized by the Chairperson or a director of a territorial unit shall issue sanction decrees.(3) The drawing up of statements of violation, the issue, appeal and enforcement of sanction decrees shall be governed by the Administrative Violations and Sanctions Act. Chapter Nine(New, SG No. 52/2007)LISTS OF SAFE COUNTRIESArticle 96. (New, SG No. 52/2007) The Republic of Bulgaria shall deem safe countries of origin and safe third countries, all countries that are mentioned in the minimum common list adopted by the Council of the European Union.Article 97. (New, SG No. 52/2007) The Council of Ministers shall make a proposal to the European Commission concerning any amendments in the minimum common list of safe countries of origin and safe third countries.Article 98. (New, SG No. 52/2007) (1) By November 30th, every year the Chairperson of the State Agency for Refugees in coordination with the Minister of Foreign Affairs shall submit national lists of safe countries of origin and safe third countries to the Council of Ministers for their approval.(2) In the process of approval the Council of Ministers shall take into account sources of information from European Union Member States, the United Nations High Commissioner for Refugees, the Council of Europe or other international organizations and shall make a judgement of the extent to which a country provides protection against persecution based on:1. pieces of legislation adopted in this area and the method by which they are enforced;2. the manner of observing rights and freedoms provided for in the Convention on the protection of Human Rights and Fundamental Freedoms, in the International Covenant on Civil and Political Rights or the Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment; 3. the manner of enforcing the Prohibition of Expulsion or Return in the sense of the Convention relating to the Status of Refugees from 1951.4. the existence of an effective penalizing system for violations of those rights and freedoms.(3) The Council of Ministers shall notify the European Commission about the countries included in the national lists of safe countries of origin and safe third countries.Article 99.(New, SG No. 52/2007) An alien who has applied for status may challenge and disprove the safety assumption of the country included in a list specified in article 96 or 98.ADDITIONAL PROVISIONS(Title amended, SG No. 52/2007) 1. (Amended, SG No. 52/2007) For the purposes of this Act:1. "An Alien" shall mean any person who is not a Bulgarian national or is nor a national of any other European Union Member State, nor a national of any country signatory to the Agreement creating the European Economic Area, nor a national of the Swiss Confederation, nor is a person who is not a national of any country as per that country's legislation.2. "An alien seeking protection" shall mean an individual who has expressed his/her desire to receive special protection under this Act until the completion of his/her application review process.3. "Family members" shall mean:a) the husband, the wife or an individual with whom the alien has an evidenced stable long-term relationship and their minor unmarried children;b) minor unmarried children who are unable to provide for themselves due to grave health conditions;c) the parents of either one of the spouses who are unable to take care of themselves due to old age or a serious health condition and they have share the household of their children.4. "Unaccompanied" shall mean a minor or juvenile alien who is on the territory of the Republic of Bulgaria and is unaccompanied by a parent or another adult who is legally or socially in charge of him/her.5. "Race, religion, nationality, membership of a particular social group and political opinion or beliefs" are notions that shall be construed in the sense of the Convention relating to the Status of Refugees from 1951 and article 10, paragraph 1 of Council Directive 2004/83/EC on minimum standards for the qualification and status of third country nationals or stateless persons as refugees or as persons who otherwise need international protection and the content of the protection granted6. "Subsequent application" shall mean an application for status in the Republic of Bulgaria which was submitted by an alien whose refugee or humanitarian status has been revoked or discontinued or in case the status determination procedure in the Republic of Bulgaria has ended with an effective decision.7. "Country of origin" shall mean a country that the alien is a national of or if the person is stateless this shall be the country of his/her permanent residence.8. "Safe country of origin" shall mean a country where the rule of law is respected and laws are enforced in a democratic social system whereby persecution or actions related to persecution are not tolerated and there is no risk of violence in situations relating to internal or international armed conflicts.9. "Safe third country" shall mean a country other than the country of origin where the alien who has applied for status has resided and:a) there are no grounds for the alien to fear for his/her life or freedom due to race, religion, belonging to a particular social group or political opinions or beliefs;b) the alien is protected from being returned to the territory of a country in which there are prerequisites for persecution and risk to his/her rights;c) the alien is not in danger of persecution, torture, inhuman or degrading treatment or punishment;d) the alien has the opportunity to request refugee status and when such status is being granted he/she shall enjoy protection being a refugee.e) there are sufficient reasons to believe that aliens will be allowed on the territory of such country. 1a. (New, SG No. 52/2007) This Act transposes the provisions of Council Directive 2001/55/EC on minimum standards for giving temporary protection in the event of a mass influx of displaced persons and the measures promoting a balance of efforts between Member States in receiving such persons and bearing the consequences thereof, Council Directive 2003/9/EC laying down minimum standards for the reception of asylum seekers, Chapter Five of Council Directive 2003/86/EC on the right of family reunification, Council Directive 2004/83/EC on minimum standards for qualification and status of third country nationals or stateless persons as refugees or as persons who otherwise need international protection and the content of the protection granted and Council Directive 2005/85/EC on minimum standards on procedures in Member States for granting and withdrawing refugee status.TRANSITIONAL AND FINAL PROVISIONS 2. This Act shall enter into force six months after its promulgation in the State Gazette and shall repeal the Refugees Act (promulgated, SG No. 53/1999; corrected, SG No. 97/1999; amended, SG No. 45/2002). 3. The State Agency for Refugees under the Council of Ministers shall succeed the Agency for Refugees under the Council of Ministers. 4. Proceedings commenced prior to the entry into force of this Act shall continue as per the regulations in force hitherto. 5. (Amended, SG No. 52/2007) Pending the opening of transit centres, procedures specified under Chapter Six, Sections Ia and II shall be conducted at registration-and-reception centres or in places designated by the Chairperson of the State Agency for Refugees. 6. The Bulgarian Identity Documents Act (promulgated, SG No. 93/11998; amended, SG Nos. 53, 67, 70 and 113/1999; amended, SG No. 108/2000; amended, SG No. 42/2001; amended, SG No. 45/2002) shall be amended, as follows:1. In Article 1, Paragraph (2), the conjunction "and" shall be replaced by a comma and the phrase "and Communications and the State Agency for Refugees under the Council of Ministers" shall be added after the words "Ministry of Transport".2. A new Paragraph (3) shall be inserted in Article 8: "(3) Where the application provided for in Paragraph (2) refers to an identity document of an alien seeking or granted protection in accordance with the Asylum and Refugees Act, the competent service of the Ministry of Interior shall forthwith notify the State Agency for Refugees or the nearest territorial unit thereof."3. In Article 9, Paragraph (2), the conjunction "and" shall be replaced by a comma, and the phrase "and the card of an alien with humanitarian status" shall be added after the words "the refugee card".4. In Article 14: a) Item (4) shall be amended as follows:"4. Temporary refugee certificate and temporary certificate of a refugee in accelerated procedure";b) New Items 10, 11 and 12 shall be added:"10. card of an alien with humanitarian status;11. certificate of an alien under temporary protection;12. foreign travel certificate of an alien with humanitarian status."5. In Article 21, Paragraph (1), a second sentence shall be added: "Where the aliens seeking or granted protection do not hold such documents, their names shall be written in the order specified in a declaration they have signed before the competent authority."6. Article 55 shall be amended as follows:a) The existing text shall become Paragraph (1);b) A new Paragraph (2) shall be added:"(2) A temporary refugee certificate shall be issued forthwith after the start of the status determination procedure. A temporary refugee certificate shall also be issued to an alien who is under the age of 14 and who is not accompanied by an adult member of his/her family."7. In Article 57, Paragraph (2), the words "aliens seeking refugee status" shall be replaced by "aliens seeking or granted protection in accordance with the Asylum and Refugees Act".8. In Article 58 a comma shall be inserted after the word "country" and the following shall be added: "except for an alien holding a temporary refugee certificate".9. Article 59 shall be amended as follows:a) in Paragraph (1):aa) Item 3 shall be amended, as follows:"3. a temporary refugee certificate shall be issued by the State Agency for Refugees to aliens with respect to whom a general refugee status determination procedure has been initiated, and a temporary certificate of a refugee in an accelerated procedure shall be issued by the State Agency for Refugees to aliens with respect to whom an accelerated refugee status determination procedure has been initiated, the validity of such certificates being as set out in the Asylum and Refugees Act;"bb) In Item 4, after the words "refugee status", the words "or asylum" shall be added and "3" shall be replaced by "5";cc) In Item 5, a dash and the following text shall be added after the word "refugee": "shall be issued by the bodies of the Ministry of Interior to a alien who has been granted refugee status or asylum, and shall be valid for a term of up to 5 years without exceeding the validity of the refugee card";dd) New Items 9, 10 and 11 shall be added:"9. a card of a refugee with humanitarian status shall be issued by the bodies of the Ministry of Interior to an alien who has been granted humanitarian status, and the said card shall be valid for up to 3 years;10. a certificate of an alien under temporary protection shall be issued to aliens who have been granted temporary protection under the terms and procedure specified in the act ordering temporary protection;11. a foreign travel certificate of an alien with humanitarian status shall be issued by the bodies of the Ministry of Interior to an alien who has been granted humanitarian status, and such certificate shall be valid for up to 3 years without exceeding the validity of the card of an alien with humanitarian status."b) Paragraph (2) shall be amended as follows:"(2) A alien's certificate of return to the Republic of Bulgaria shall be issued to a stateless person or to a alien who has been granted protection in the Republic of Bulgaria, who has lost abroad his/her Bulgarian identity document referred to in, Items 5, 6 and 11 of Paragraph (1). The said document shall be issued to an alien in accordance with Article 34, Paragraph (3) and Article 58, Paragraph (5) of the Asylum and Refugees Act, where the alien does not hold valid national foreign travel documents."10. In Article 60, a comma and the following text shall be added at the end: "except for the documents provided for in Article 59, Item 3 of Paragraph (1);11. A new Article 60a shall be added:"Article 60a. The validity of a refugee foreign travel certificate and of a foreign travel certificate of a alien enjoying humanitarian status may be extended by a Bulgarian diplomatic or consular representation, in coordination with the State Agency for Refugees,"12. Article 61 shall be amended as follows:a) in Paragraph (2), the words "granted refugee status" shall be replaced by "granted asylum, refugee status or humanitarian status";b) Paragraph (3) shall be amended as follows:"(3) The current address shall be entered in the identity documents of aliens with long-term residing in the country or of those in respect of whom a refugee status determination procedure is underway."13. Article 62 shall be amended as follows:a) the existing text shall become Paragraph (1);b) a new Paragraph (2) shall be added:"(2) A alien seeking or granted protection shall not be required to produce the document referred to in the foregoing paragraph, where he/she has entered the country without documents."14. The Transitional and Final Provisions shall be amended, as follows:a) 9b shall be added:" 9b. All identity documents of the aliens in respect of whom a pending refugee status determination procedure is under way, or documents of refugees, issued before entry into force of the Asylum and Refugees Act, shall be valid until the expiration of their validity."b) In 21, a comma shall be inserted after the words "aliens and refugees" and the following shall be added: "issued by the bodies of the Ministry of Interior".c) In 23, the conjunction "and" shall be replaced by a comma and the phrase "and Communications and the Chairman of the State Agency for Refugees" shall be added after the words "Minister of Transport". 7. The Foreigners in the Republic of Bulgaria Act (promulgated, SG No. 153/1998, amended, SG No. 70/1999, amended, SG Nos. 42 and 112/2001, amended, SG No. 45/2002) shall be amended, as follows:1. In Article 7, a comma shall be inserted after the word "aliens" and the word "refugees" shall be replaced by "seeking or granted protection".2. In Article 28a, Paragraph (1), the words "refugee status" shall be replaced by "protection under the Asylum and Refugees Act", and the sentence "The actions in fact and in law related to obtaining the permit shall be carried out by the Agency for Refugees." Shall be deleted.3. In Article 44, Paragraph (1), the words "Agency for Refugees" shall be replaced by "State Agency for Refugees". 8. The Civil Registration Act (promulgated, SG No. 67/1999; amended, SG Nos. 28 and 37/2001) shall be amended as follows:1. In Article 3, Item 2 (c) of Paragraph (2), "or humanitarian status" shall be added after the word "refugee".2. Article 26, Item 2 of Paragraph (2), shall be amended as follows:"2. A temporary refugee certificate or notice of birth of a child to parents who enjoy refugee or humanitarian status;"3. In Article 52, a comma shall be inserted after the word "citizenship" and the words "or with refugee status" shall be replaced by "with refugee or humanitarian status". 9. Article 70 of the Employment Promotion Act (promulgated, SG No. 112/2001) shall be amended as follows:"(3) No work permit shall be required with respect to aliens permanently residing in the Republic of Bulgaria or aliens who have been granted asylum, refugee status or humanitarian status." 10. Article 4, Item 6 of the Bulgarian Red Cross Act (promulgated, SG No. 87/1995; amended, SG No. 44/1999) shall be amended, as follows:"6. assist the aliens seeking or granted protection in the Republic of Bulgaria in accordance with the Asylum and Refugees Act;". 11. The Health Insurance Act (promulgated, SG No. 70/1998; amended, SG Nos. 93 and 153/1998; amended, SG Nos. 62, 65, 67, 69, 110 and 113/1999; amended, SG Nos. 1, 31 and 64/2000; amended, SG No. 41/2001; amended, SG No. 1/2002) shall be amended as follows:1. In Article 33, Item 4, a comma shall be inserted after the word "refugee" and the words "humanitarian status" shall be added.2. Article 34 shall be amended and supplemented as follows:a) In Item 3 of Paragraph (1), the words "under Article 33, Item 3" shall be replaced by "under Article 33, Item (4)";b) In Paragraph (2):aa) A new Item 2 shall be added:"2. for the persons referred to in Article 33, Item 4 - as of the date of initiating the procedure for granting refugee status or right of asylum;"bb) the existing Item 2 shall become Item 3. 12. In Article 13a of the Bulgarian Citizenship Act (promulgated, SG No. 136/1998; amended, SG No. 41/2001) the words "or asylum" shall be added after the word "refugee". 13. The implementation of this Act shall be entrusted to the Council of Ministers.TRANSITIONAL AND FINAL PROVISIONSTo the Administrative Procedure Code (SG No. 30/2006, effective 12.07.2006)........................................................................ 142. The Code shall enter into force three months after its publication on the State Gazette with the exception of:1. Section Three, 2, item 1 and 2, item 2 - regarding the cancellation of Chapter Three, Section II "Court Appeal", 9, item 1 and 2, 11, item 1 and 2, 15, 44, item 1 and 2, 51, item 1, 53, item 1, 61, item 1, 66, item 3, 76, item 1 - 3, 78, 79, 83, item 1, 84, item 1 and 2, 89, item 1 - 4, 101, item 1, 102, item 1, 107, 117, item 1 and 2, 125, 128, item 1 and 2, 132, item 2 and 136, item 1, as well as 34, 35, item 2, 43, item 2, 62, item 1, 66, item 2 and 4, 97, item 2 and 125, item 1 - regarding the replacement of the word "county" with "administrative" and replacement of the words "Sofia City Court" with "Administrative Court of the Sofia City", which shall become effective as of 1 March 2007;........................................................................TRANSITIONAL AND FINAL PROVISIONSto the Amending and Supplementing Act to the Asylum and Refugees Act(SG No. 52/2007) 85. Procedures which have started prior to the adoption of this Act shall abide by the former rules. 86. Within one month after the entering into force of this Act the Council of Ministers shall approve the registration card templates under article 45 (1). 87. All identity documents of aliens who are going through a status determination procedure which have been issued prior to effective date of this Act shall be valid within their specific expiration date. 88. By the time registration card templates under article 45 (1) are approved and registration cards are being produced to aliens:1. who undergo the accelerated procedure or a general status determination procedure those aliens shall be issued documents following the former template and procedures.2. who undergo a procedure for identification of a competent country to review the status application, those aliens shall be issued temporary refugee certificates in an accelerated procedure with the remark stipulating that the procedure follows the provisions of chapter Six, Section Ia......................................................................... Annex to Article 45 (2)(New, SG No. 52/2007) For more information visit www.solicitorbulgaria.com id: 284 Wed, 30 Jul 2008 05:53:17 +0000 http://web.solicitorbulgaria.com/index.php/bulgarian-asylum-and-refugees-act http://web.solicitorbulgaria.com/index.php/bulgarian-asylum-and-refugees-act http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/ASYLUM_AND_REFUGEES_ACT.jpg EUR http://web.solicitorbulgaria.com/index.php/bulgarian-asylum-and-refugees-act legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Chapter OneGENERAL PROVISIONSArticle 1. This act regulates the relations of the Bulgarian State with Bulgarians resident outside the Republic of Bulgaria.Article 2. In this Act, a Bulgarian resident outside the Republic of Bulgaria is a person who:1. has at least one ascendant of Bulgarian origin;2. has Bulgarian national awareness;3. is resident on a long-term or permanent basis on the territory of another state.Article 3. (1) Bulgarian origin shall be proven by a document issued by:1. A Bulgarian or foreign state body;2. An organisation of Bulgarians resident outside the Republic of Bulgaria, recognized by the competent Bulgarian state body for maintaining relations with them;3. The Bulgarian Orthodox Church.(2) Bulgarian origin can also be proven by general action proceedings.Article 4. (1) The Bulgarian state shall assist the establishment of favourable conditions for free development of Bulgarians resident outside the Republic of Bulgaria according to the principles of international… For more information visit http://www.solicitorbulgaria.com id: 285 Chapter OneGENERAL PROVISIONSArticle 1. This act regulates the relations of the Bulgarian State with Bulgarians resident outside the Republic of Bulgaria.Article 2. In this Act, a Bulgarian resident outside the Republic of Bulgaria is a person who:1. has at least one ascendant of Bulgarian origin;2. has Bulgarian national awareness;3. is resident on a long-term or permanent basis on the territory of another state.Article 3. (1) Bulgarian origin shall be proven by a document issued by:1. A Bulgarian or foreign state body;2. An organisation of Bulgarians resident outside the Republic of Bulgaria, recognized by the competent Bulgarian state body for maintaining relations with them;3. The Bulgarian Orthodox Church.(2) Bulgarian origin can also be proven by general action proceedings.Article 4. (1) The Bulgarian state shall assist the establishment of favourable conditions for free development of Bulgarians resident outside the Republic of Bulgaria according to the principles of international law and the legislation of the respective state, with the purpose of protecting and supporting their rights and legal interests.(2) The Bulgarian state shall support organisations of Bulgarians resident outside the Republic of Bulgaria seeking to preserve and develop Bulgarian linguistic, cultural and religious traditions.Article 5. (1) Bulgarians resident outside the boundaries of the Republic of Bulgaria shall enjoy the right of protection by the Bulgarian state which, in compliance with the principles of the international law and the international agreements, shall protect their rights and legal interests.(2) The Council of Ministers shall assign the respective ministers and heads of other departments the implementation of the state policy regarding Bulgarians resident outside the Republic of Bulgaria, and shall determine the structures established for the purposes of its implementation and the mechanisms for coordination of their activities.(3) With the diplomatic representations of the Republic of Bulgaria in the states in which there are Bulgarian communities or Bulgarian national minorities, there can be established consultative bodies of Bulgarians resident in the respective state, comprising representatives appointed by the persons under Article 2.Chapter TwoRIGHTS OF BULGARIANS RESIDENT OUTSIDE THE REPUBLIC OF BULGARIAArticle 6. (1) The Bulgarian state shall assist Bulgarians resident outside the Republic of Bulgaria, regardless of their citizenship, in exercising their right to access to the institutions and organisations competent in the respective case.(2) While staying on the territory of this country, Bulgarians resident outside the Republic of Bulgaria, who are not Bulgarian citizens, shall be entitled to concessions in the payment of stamp duties related to the regulation of their stay or settlement in the Republic of Bulgaria, under conditions and by a procedure determined by the Council of Ministers.Article 7. Bulgarians resident outside the Republic of Bulgaria, who are not Bulgarian citizens, can exercise the right to work during their stay in this country upon obtaining a permit under a simplified procedure, established by the Application Regulations of this Act.Article 8. (1) Bulgarians resident outside the Republic of Bulgaria, who do not have Bulgarian citizenship, can carry out economic activity in the Republic of Bulgaria, invest and participate in cash privatization, restore their right of ownership and receive inheritance, according to the effective legislation, under the conditions and by the procedure stipulated for Bulgarian citizens, except in the case of land.(2) When a law or international agreement, to which the Republic of Bulgaria is a party, stipulates more favourable conditions for carrying out economic activity and investment the more favourable conditions shall apply.Article 9. Bulgarians resident outside the Republic of Bulgaria shall have the right to acquire, free of charge, primary and secondary education in state and municipal schools in the Republic of Bulgaria under the same conditions and by the same procedure as Bulgarian citizens.Article 10. (1) Bulgarians resident outside the Republic of Bulgaria shall have the right to acquire higher education in the state higher schools in the Republic of Bulgaria under the same conditions as Bulgarian citizens.(2) The Council of Ministers shall approve annually the number of the students and post-graduate students admitted under Paragraph (1) to the higher schools and specialities, and shall determine a simplified procedure for their admittance.(3) Bulgarians resident outside the Republic of Bulgaria who are unable to pay on their own the expenses for their education can apply for assistance under programmes financed by the state budget, by the higher school or by other sources.Article 11. (1) Bulgarian institutions and organizations shall support Bulgarians resident outside the Republic of Bulgaria in studying the Bulgarian language, Bulgarian literature, history, geography and other subjects by providing teachers, training aids and material resources or by other appropriate means in line with the norms of international law, the local legislation and bilateral agreements and treaties.(2) The Bulgarian state shall establish conditions for raising the qualification of teachers in subjects studied in Bulgarian abroad and, if necessary, send Bulgarian teachers.(3) The export of text-books and training aids for the purposes under Paragraph (1) shall be exempt from customs duties, customs charges and fees and shall be carried out through the respective state institutions.Article 12. Bulgarians resident outside the Republic of Bulgaria shall be provided possibilities to acquaint themselves with the centuries-old Bulgarian culture and Bulgarian science and to take part in their development according to their wish and interests. To this end, through the respective institutions the Republic of Bulgaria shall:1. Send printed matter, technical carriers of information and other materials about life in Bulgaria, Bulgarian culture and other spheres of the development of Bulgaria;2. Organise meetings with specialists and prominent personalities in the respective spheres;3. Encourage and assist the establishment and operation of centres for the popularisation and development of Bulgarian culture and science on the territories of the respective states;4. Organise cultural, scientific and other events on the territories of the respective states or in the Republic of Bulgaria, including with the participation of international organisations and prominent representatives of science, art, culture and sport;5. Provide, whenever possible, premises and equipment to Bulgarian communities or Bulgarian national minorities abroad for carrying out cultural and educational, scientific and other similar activities.Article 13. (1) The Bulgarian state shall assist the preservation and the profession of the Eastern Orthodox religion as a traditional religious affiliation of Bulgarians and as a factor for the preservation of Bulgarian national identity. To this end and in coordination with the Bulgarian Orthodox Church, it shall assist the activities of the Bulgarian Orthodox Church among Bulgarians resident outside the Republic of Bulgaria, maintain contact with their religious communities outside the country and encourage their activities abroad, aimed at the strengthening of national and spiritual values.(2) In coordination with the states in which Bulgarians live, as well as with the respective religious institutions on their territories, the Republic of Bulgaria shall assist the exercising of the religious rights of our compatriots.Article 14. (1) Upon establishing inheritance by Bulgarians resident outside the Republic of Bulgaria, the state bodies and the bodies of the local self-government and the local administration shall inform the legatees through the respective diplomatic and consular representations.(2) When obtaining documents related to their civil registration, Bulgarians resident outside the Republic of Bulgaria shall be charged the same fees as Bulgarian citizens.Chapter ThreeSETTLEMENT IN THE COUNTRY OF BULGARIANS RESIDENT OUTSIDETHE REPUBLIC OF BULGARIAArticle 15. (1) Bulgarians living outside the Republic of Bulgaria who wish to settle in the Republic of Bulgaria shall be issued permanent residence permits under simplified terms and procedure.(2) The state bodies and the bodies of local self-government and the local administration shall render assistance to the persons under Paragraph (1) and shall provide material and other support for their settlement under conditions and by a procedure determined by the Council of Ministers.Article 16. (1) The Bulgarian state shall establish conditions for needy Bulgarians settling on its territory to be granted tenure of land of the state or municipal land stock in the first three years of their settlement.(2) The Council of Ministers shall determine the conditions and the procedure by which persons under Paragraph (1) can use soft-term credits for buying immovable property, housing and stock.Chapter FourNATIONAL COUNCIL FOR BULGARIANS RESIDENT OUTSIDETHE REPUBLIC OF BULGARIAArticle 17. (1) The National Council for Bulgarians Resident Outside the Republic of Bulgaria is a state-cum-public body of organisational, coordinating and representative functions, expressing and coordinating the national interests with the interests of Bulgarians resident outside the Republic of Bulgaria.(2) The National Council shall assist the pursuance of a unified state policy regarding Bulgarians resident outside the Republic of Bulgaria, in line with the Constitution, traditions, national interests and international legal principles and norms; coordinate the activity of the Bulgarian public and private institutions related to Bulgarians resident outside the Republic of Bulgaria and render assistance to them and their organisations.(3) The National Council shall assist the presentation of the interests of Bulgarians and Bulgarian communities outside the Republic of Bulgaria to the Bulgarian Government.(4) The National Council shall:1. Organise and coordinate with other state bodies and civil organisations the study of the state and the problems of Bulgarian communities outside the Republic of Bulgaria and the making of analyses, projections and programmes for working with them;2. Coordinate, assist and consult the activities of ministries and other departments and the bodies of the local self-government and the local administration in the practical implementation of the state policy regarding Bulgarians resident outside the Republic of Bulgaria;3. Maintain relations with Bulgarians resident outside the Republic of Bulgaria, with their organisations and their cultural and educational centres, assisting them with information materials or by other means;4. Organize events jointly with Bulgarian patriotic organisations in the spirit of the state policy regarding Bulgarians resident outside the Republic of Bulgaria;5. Organise publishing and distribution activities;6. Prepare and, through the respective minister - member of the National Council, present for consideration by the Council of Ministers, draft statutory instruments according to its functions;7. Take part in international activities on national minorities and linguistic and religious communities' issues, including in the drafting of international agreements to be acceded by the Republic of Bulgaria;8. Establish and organise communication networks servicing contacts with Bulgarians resident outside the Republic of Bulgaria.(5) The National Council shall present an annual report on its activities to the National Assembly.Article 18. (1) The National Council for Bulgarians Resident outside the Republic of Bulgaria is a legal entity financed by the state budget and seated in Sofia.(2) The funds under Paragraph (1) shall be allocated annually in the National Budget Act of the Republic of Bulgaria.(3) The National Council shall adopt regulations for its organisation and activities.Article 19. (1) The National Council for Bulgarians Resident outside the Republic of Bulgaria shall be made up of nine members.(2) The National Assembly shall elect, for a period of five years, the Chairman of the National Council and six of its members, five of whom shall be Bulgarians resident outside the Republic of Bulgaria.(3) The motion for their election under Paragraph (2) shall be moved by the Chairman of the National Assembly who shall take into consideration the opinion of the Bulgarian communities abroad.(4) The President of the Republic shall appoint one of the members of the National Council.(5) The Council of Ministers shall appoint one of the ministers as member of the National Council.Article 20. (1) The powers of the Chairman of the National Council or of an elected member shall be terminated before the expiry of their term upon any of the following occurrences:1. Resignation submitted to the Chairman of the National Assembly;2. Permanent inability to participate in the work of the National Council;3. enacted sentence for deliberate crime;4. Death.(2) In the cases listed in Paragraph (1), Items 2 and 3 the powers shall be terminated by a decision of the National Assembly.Article 21. The work of the National Council for Bulgarians Resident outside the Republic of Bulgaria shall be assisted by an administration set up under the conditions and by the procedure established by the Administration Act. Article 22. (1) The National Council shall perform its functions in close interaction with the central and local bodies of state power carrying out the state policy regarding Bulgarians resident outside the Republic of Bulgaria and with the structures they establish for the purposes of its implementation and shall participate in the coordination of their activities.(2) The National Council shall receive information regarding the activities of the bodies under Paragraph (1) on the implementation of this Act.Chapter FivePROGRAMMES FOR BULGARIANS RESIDENT OUTSIDETHE REPUBLIC OF BULGARIAArticle 23. Support for Bulgarians resident outside the Republic of Bulgaria and their organisations shall be provided through governmental and private programmes.Article 24. (1) The governmental programmes shall be drafted by the respective ministries, coordinated with the National Council and approved by the Council of Ministers.(2) The programmes under Paragraph (1) shall be financed by the state budget by funds allocated to this end in advance.(3) The programmes shall cover between one- and five-year periods and shall seek to establish favourable conditions for Bulgarians resident outside the Republic of Bulgaria in the field of science, culture, education and health care. A programme may also provide for initiatives for the preservation of Bulgarian cultural and historical sites abroad.(4) The programmes shall be implemented through projects approved by the respective ministry on a competitive basis. The projects shall be financed through the respective ministry within the framework of the funds provided for the respective programme.(5) The conditions and procedure for participation in each of the programmes shall be determined by the respective ministry in coordination with the National Council.Article 25. (1) The National Council shall assist the drafting and shall approve private programmes for Bulgarians resident outside the Republic of Bulgaria.(2) Private programmes shall be financed through the National Council, by individuals and funds of the National Council received in the form of donations, legacies, aid, etc.(3) Programmes under Paragraph (1) shall be implemented through projects approved by the National Council on a competitive basis, in coordination with the individuals providing the bulk of the funds in financing the respective programme.(4) The conditions and procedure for participation in each of the programmes shall be determined by the National Council.Article 26. (1) The extra budgetary funds of the National Council shall not be used for purposes other than the financing of programmes under Article 25.(2) The National Council can constitute, according to the will of the donors, foundations or funds with resources and property received as donations, legacies and aid.(3) The purpose of the foundations and the funds under Paragraph 2 shall be to take part in the financing of private programmes for Bulgarians resident outside the Republic of Bulgaria and to control the implementation of projects approved under and financed by these programmes.Article 27. (1) The Council of Ministers shall, within its competence, propose to the National Assembly tax, customs and other fiscal concessions for persons financing private programmes for Bulgarians resident outside the Republic of Bulgaria, corresponding to the contributed funds, as well as for persons implementing programmes through projects approved by the procedure envisaged in Article 24, Paragraph (4) and Article 25, Paragraph (3).(2) Motions for exercising the powers of the Council of Ministers under Paragraph (1) can be moved by the National Council, the ministries and the departments involved in implementing the state policy related to Bulgarians resident outside the Republic of Bulgaria.TRANSITIONAL AND FINAL PROVISIONS 1. (1) During the first term of the National Council, new members of the quota of Bulgarians resident outside the Republic of Bulgaria shall be appointed by the drawing of lots.(2) Upon the expiry of a three-year period since its formation, three members of the quota of the National Council under Paragraph (1) shall be replaced by the procedure described in Article 19, Paragraphs (2) and (3). Article(3) The principle of proportional representation of Bulgarian communities abroad shall be observed in the appointment of new members of the National Council. 2. The Council of Ministers shall bring in compliance with this act acts of secondary legislation regulating the relations of the Republic of Bulgaria with Bulgarians resident outside the Republic of Bulgaria. 3. The Council of Ministers shall adopt Application Regulations for this Act. 4. The implementation of this Act is assigned to the Council of Ministers.This Act was passed by the 38th National Assembly on March 29, 2000 and affixed with the official seal of the National Assembly. For more information visit www.solicitorbulgaria.com id: 285 Wed, 30 Jul 2008 06:04:29 +0000 http://web.solicitorbulgaria.com/index.php/bulgarians-resident-outside-the-republic-of-bulgaria-act http://web.solicitorbulgaria.com/index.php/bulgarians-resident-outside-the-republic-of-bulgaria-act http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/Bulgarians_Resident_outside_the_Republic_of_Bulgaria_Act.jpg EUR http://web.solicitorbulgaria.com/index.php/bulgarians-resident-outside-the-republic-of-bulgaria-act legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Chapter IGENERAL PROVISIONSArticle 1(Amended, SG No. 29/2007) (1) This Act shall establish the terms and the procedure according to which foreigners may enter reside in and leave the Republic of Bulgaria, as well as the rights and obligations thereof.(2) This act shall apply also in respect of members of the families of Bulgarian citizens who are not citizens of European Union member-states or of a state - party to the European Economic Area Agreement, or of the Swiss Confederation.(3) The terms and procedures under which the citizens of other European Union members-states and the members of their families as well as citizens of European Union member-states or of a state - party to the European Economic Area Agreement, and of the Swiss Confederation and the members of their families shall enter, reside in and leave the Republic of Bulgaria shall be specified in the European Union Citizens and Members of Their Families Entry and Residence in and Departure from the Republic of Bulgaria Act.… For more information visit http://www.solicitorbulgaria.com id: 286 Chapter IGENERAL PROVISIONSArticle 1(Amended, SG No. 29/2007) (1) This Act shall establish the terms and the procedure according to which foreigners may enter reside in and leave the Republic of Bulgaria, as well as the rights and obligations thereof.(2) This act shall apply also in respect of members of the families of Bulgarian citizens who are not citizens of European Union member-states or of a state - party to the European Economic Area Agreement, or of the Swiss Confederation.(3) The terms and procedures under which the citizens of other European Union members-states and the members of their families as well as citizens of European Union member-states or of a state - party to the European Economic Area Agreement, and of the Swiss Confederation and the members of their families shall enter, reside in and leave the Republic of Bulgaria shall be specified in the European Union Citizens and Members of Their Families Entry and Residence in and Departure from the Republic of Bulgaria Act. Article 2(Amended, SG No. 42/2001, SG No. 29/2007) (1) A foreigner, within the meaning given by this Act, shall be any person who is not a Bulgarian citizen or is not a member of another European Union member-state, of a state - party to the European Economic Area Agreement or of the Swiss Confederation(2) Members of the family of a Bulgarian citizen shall be the persons living together with him/her in the same household and are.1. spouse;2. descendants, including when they are descendants only of the person under paragraph 1, who have become 21 years of age and have not contracted a marriage;3. descendants, including when they are descendants only of the person under paragraph 1, who have become 21 years of age but have no personal income due to the fact that they are not capable to provide for themselves or because serious health problems require the Bulgarian citizen to care for them personally;4. ascendants, including ascendants only to the person under paragraph 1 who are dependent on the Bulgarian citizen or on the person under paragraph 1;5. other members of his/her household who have been entirely dependent on him/her in the state of origin or in the state of usual residence and serious health problems require the Bulgarian citizen to care for them personally.Article 3(1) Foreigners in the Republic of Bulgaria shall have any and all rights and obligations under the laws of Bulgaria and all ratified international treaties to which the Republic of Bulgaria is a signatory, excepting those rights and obligations expressly requiring Bulgarian citizenship.(2) (Amended, SG No. 29/2007) In relation to foreigners accredited as members of foreign diplomatic and consular missions as well as of offices of international organisations in the Republic of Bulgaria enjoying immunities and privileges the universally accepted norms of international diplomatic and consular law and the international agreements to which the Republic of Bulgaria is a party shall apply.Article 4Foreigners staying in the Republic of Bulgaria shall be obliged to abide by the laws and the established legal order, to be loyal to the Bulgarian state and to not derogate from the prestige and dignity of the Bulgarian nation.Article 5(Repealed, SG No. 29/2007) Article 6Foreigners staying in the Republic of Bulgaria shall be amenable to the same civil, administrative and criminal laws as Bulgarian citizens, inasmuch as a special law or an international convention whereto the Republic of Bulgaria is a signatory do not provide otherwise.Article 7(Amended, SG No. 54/2002)The status of foreigners, seeking or having received protection, shall be governed by a special statute.Chapter IIENTRY AND AIR TRANSIT(Title amended, SG No. 29/2007) Article 8(Supplemented, SG No. 42/2001, SG No. 37/2003, amended,SG No. 88/2005, SG No. 29/2007) (1) A foreigner may enter the Republic of Bulgaria if he or she holds a regular foreign-travel document or another substitute document issued, as well as a visa if required.(2) No visas shall be required where this is foreseen in Regulation (EC) щ 539/2001 of the Council, in an international agreement or in an act of the Council of Ministers.(3) No visa shall be required also when the foreigner holds a long-term or permanent residence card for the Republic of Bulgaria and the grounds for its issuing have not become defunct.Article 8a(New, SG No. 29/2007)(1) A foreigner who is a member of the family of a Bulgarian citizen may enter the territory of the Republic of Bulgaria with a passport and a visa, if required. The visa shall be issued under terms and procedures specified by the Council of Ministers without paying any charges for processing the documents and issuing the visa.(2) No visa shall be required when a foreigner who is a member of the family of a Bulgarian citizen holds a residence card of a member of the family of a European Union citizen issued in:1. the Republic of Bulgaria if the grounds for its issuing have nor become defunct;2. another European Union member-state if he/she accompanies or joins the Bulgarian citizen.(3) When a member of the family of a Bulgarian citizen refers to this capacity of his/her on entering the territory of the Republic of Bulgaria but does not produce a document pursuant to paragraph 2 the border control authorities shall provide to him/her reasonable time to obtain it or to ascertain with other documents that he/she is a member of the family of a Bulgarian citizen.(4) In the cases under paragraph 3 the border control authorities shall conduct a detailed verification of the personal particulars and shall not allow entrance to a person who has not produced a document pursuant to paragraph 2 or has failed to duly ascertain with other documents that he/she is a member of the family of a Bulgarian citizen. The refusal to allow entry to a person in the Republic of Bulgaria shall be substantiated and shall be subject to contestation under the procedure of the Administrative Procedure Code. Article 9(Amended, SG No. 42/2001, amended and supplemented, SG No.37/2003, amended, SG No. 29/2007) The visa shall be a permit to enter and reside, to transit through the territory of the Republic of Bulgaria or for air transit.Article 9a(New, SG No. 29/2007)(1) The type of visa shall be determined by the purpose for which it is issued(2) The types of visas shall be:1. air transit visa (type "A" visa);2. transit visa (type "B" visa);3. short-term residence visa (type "C" visa);4. long-term residence visa (type "D" visa);(3) When a person applies for a visa persona data shall be collected, including biometric data.(4) Biometric data may be used only for verifying the true identity and for identification or establishing the identity in relation to visa application or within border control or administrative control of foreigners.Article 9b(New, SG No. 29/2007)(1) The visa shall be issued in the form a uniform visa sticker according to a European Union sample and shall be valid only with the standard foreign travel document or another substituting document in which or with which it is placed.(2) The information included in the visa sticker cannot be changed.Article 9c(New, SG No. 29/2007)(1) The visa sticker shall be placed in a standard passport or another foreign travel document recognised by the Republic of Bulgaria.(2) When a foreigner holds a standard foreign travel document or another substituting document which is not recognised by the Republic of Bulgaria the visa sticker shall be placed on a uniform visa form according to a European Union sample approved by the Council of Ministers.(3) The Ministry of the Interior shall, in coordination with the Ministry of Foreign Affairs and the Ministry of Transport, maintain and update a list of foreign travel documents issued by states, international organisations and other subjects of international public law in which a visa sticker may be placed and which entitle the foreigner to enter the territory of the Republic of Bulgaria.(4) The terms and conditions for printing, placing, cancelling, keeping and destroying the visa stickers and the visa placement forms shall be specified with an act of the Council of Ministers.Article 9d(New, SG No. 29/2007)(1) Visas shall be issued by the diplomatic and consular missions of the Republic of Bulgaria.(2) The Republic of Bulgaria and another member-state of the European Union may conclude a bilateral agreement on representation for accepting applications and for issuing visas.Article 9e(New, SG No. 29/2007)As an exception when this is necessitated by the national interest or by force majeure the border control authorities at the border crossing points may, in coordination with the Ministry of Foreign Affairs, issue single transit visas with a term of 36 hours and short-term residence visas with a term of 15 days.Article 9f(New, SG No. 29/2007)The procedure for issuing visas and determining the visa regime shall be determined with an act of the Council of Ministers.Article 10(1) A foreigner shall be denied a visa and entry into this country in the event that:1. (supplemented, SG No. 29/2007) by the acts thereof, the said foreigner has jeopardised or may jeopardise the interests of the Bulgarian State, or if there is reason to believe that the said foreigner acts against national security;2. he has, by his actions, maligned the Bulgarian state or has derogated from the prestige and dignity of the Bulgarian nation;3. (amended, SG No. 21/2007) there is reason to believe that the said foreigner is member of a criminal group or organization, or that he or she engages in terrorist activities, smuggling and illicit transactions in arms, explosives, ammunition, strategic raw materials, dual-use items and technologies, as well as in illicit trafficking in narcotic drugs and psychotropic substances and precursors, and in raw materials for the manufacture thereof;4. there is information that he has been engaged in trading in people, as well as in bringing persons illegally into this country and taking persons out into other countries;5. he was expelled from the Republic of Bulgaria no less than ten (10) years before the date of visa application and failed to recover within six (6) months of expulsion the expenses incurred by the state therefore;6. he has committed a premeditated crime within the territory of the Republic of Bulgaria punishable under the laws of Bulgaria by more than three (3) years of imprisonment;7. (amended, SG No. 29/2007) the said foreigner has attempted to enter or transit Bulgaria using false or forged documents, visa or residence permit;8. he might be presumed to spread an acute communicable disease; or is afflicted with a disease which according to the criteria of the Ministry of Health or of the World Health Organisation poses a threat to public health; or is not in possession of a vaccination certificate; or is coming from an area with a complicated epidemic or epizootic situation;9. he does not have secure means of sustenance and all the mandatory insurance policies required for the time of stay in this country, as well as adequate funds to ensure his return;10. he has, during previous entries and stays, systematically violated the border-crossing, passport and visa, currency or customs regulations of the Republic of Bulgaria;11. he has, during a previous stay, violated the labour of tax laws of this country;12. he is not in possession of visas or tickets for the countries next on his itinerary;13. a coercive administrative measure has been imposed upon the person preventing him from entering this country and such measure is still in effect;14. (amended, SG No. 42/2001) he has been included in the data base of foreigners unacceptable to this country maintained by the Ministry of Interior and by the Ministry of Foreign Affairs;15. (new, SG No. 42/2001) he is applying for an entry visa with a document certifying final exit from the territory of another country where he has until then.16. (new, SG No. 29/2007) the said foreigner is applying for a visa with an invalid foreign travel document or a substituting document.(2) A visa shall be also denied to a foreigner who has failed to submit all requisite documents certifying his grounds to enter this country, as set forth in an enactment of the Council of Ministers.Article 11(Supplemented, SG No. 29/2007) A foreigner may be refused the issuing of a visa or entry into the country where:1. there is information that he wishes to enter this country in order to commit a crime or a violation of the public order;2. he has, during a previous stay in this country, committed a violation of the public order;3. (amended, SG No. 29/2007) the entry thereof into Bulgaria may prejudice the relations of the Republic of Bulgaria with another State;4. there is information that the purpose of his entry is to stay in this country as an immigrant without having a special permission therefore;5. there is information that the purpose of his entry is to use this country as a transit point for subsequent migration to a third country.6. (new, SG No. 42/2001) during a previous stay in this country, he has been the recipient of government social assistance;7. (new, SG No. 42/2001) he fails to provide reasonable grounds for the declared purpose of travel.8. (new, SG No. 37/2003) there is a court injunction in effect which imposes a fine under the procedure set out in this Act where such fine has not been paid.9. (new, SG No. 29/2007) the said foreigner has not sufficient resources to ensure his/her subsistence in compliance with the length and the conditions of his/her residence in the Republic of Bulgaria, neither for returning to the state of his/her original residence nor for transiting through the Republic of Bulgaria.10. (new, SG No. 29/2007) the said foreigner has presented a document with false contents or has stated untruthful information.Article 12(Amended and supplemented, SG No. 42/2001, amended, SG No. 29/2007) (1) An air transit visa shall be issued to a foreigner who, is arriving by aircraft from a certain state and stays in the international transit zone of an airport on the territory of the Republic of Bulgaria with the aim of continuing his/her travel with the first next flight to a different state.(2) A foreigner travelling on an air transit visa shall be regarded as unadmitted to the territory of the Republic of Bulgaria.Article 13(Amended, SG No. 42/2001, amended, SG No. 29/2007) (1) A transit visa shall be issued to a foreigner entering the Republic of Bulgaria from one State and leaving Bulgaria within twenty-four hours en route to another State.(2) The transit visa shall entitle the foreigner to one, two or, as an exception, several transit passages of 36 hours each and may be with a validity term of 12 months.(3) The total stay on the territory of the Republic of Bulgaria on a transit visa shall not exceed 90 days within any six-month period.Article 14(Amended, SG No. 42/2001, amended, SG No. 29/2007) (1) A short-term residence visa shall be issued to a foreigner for a single, double or multiple entry into the territory of the Republic of Bulgaria and a cumulative duration of the stay not exceeding ninety days within any six-month period, reckoned from the date of first entry.(2) The multiple short-term residence visa may be with a validity term of one year and in exceptional cases up to five years.Article 14a(New, SG No. 42/2001)A group visa shall be issued, for transit or with an entitlement to stay for up to thirty (30) days, to foreigners who are the citizens of one and the same state who have form the group prior to their departure, hold a group passport and provided that they enter, stay and leave the territory of the Republic of Bulgaria as a group.Article 15(Amended and supplemented, SG No. 42/2001, amended, SG No. 29/2007) (1) A long-term residence visa with a validity term of up to six months and entitlement to reside of up to 180 days shall be issued to a foreigner who wishes to settle durably or permanently in the Republic of Bulgaria.(2) A long-term residence visa with a validity term of up to one year and entitlement to reside of up to 360 days may be issued to foreigners conducting scientific research or students under one-year education programmes, scholars or trainees, foreigners on business trips on behalf of a foreign employer for performing specific tasks related to control and coordination of the implementation of a tourist services contract as well as foreigners on business trips on behalf of a foreign employer for effecting investments certified under the procedure of the Investment Promotion Act. (3) The long-term residence visa shall entitle the holder to multiple entries to the territory of the Republic of Bulgaria within its validity term.(4) The long-term residence visa shall be cancelled when a residence permit is issued by the authorities for administrative control of foreigners.Article 16(Supplemented, SG No. 42/2001, SG No. 37/2003, amended, SG No. 29/2007) (1) A foreigner may not enter and reside in the Republic of Bulgaria on the sole grounds of possessing a visa.(2) The border control authorities may not admit into the Republic of Bulgaria any foreigner in possession of a visa in the cases covered under Articles 10 and 11 herein or in case of non-compliance with the requirements in Article 19.(3) A foreigner who has been refused entry shall be given by the border control authorities a uniform form according to European Union sample in which the reasons for refusing entry to the territory of the country shall be recorded. The sample form shall be approved by the Council of ministers.(4) The border control authorities and the services for administrative control of foreigners may cancel an issued visa, reduce the number of entries allowed and the duration of residence in case of non-compliance with the provisions herein and under a procedure determined by the Council of Ministers.(5) The Ministry of Foreign Affairs and the diplomatic missions and consular posts may cancel a visa as issued, reduce the number of entries allowed and the duration of residence in case of non-compliance with the provisions herein and according to a procedure established by an act of the Council of Ministers.Article 17(Supplemented, SG No. 42/2001, amended, SG No. 29/2007) (1) The entry of a foreigner into the Republic of Bulgaria shall be effected only through the border-crossing checkpoints determined with an act of the Council of Ministers or in an international agreement.(2) A foreigner carrying multiple personal foreign-travel documents, or carrying such documents belonging to third persons, shall be obligated to declare the said documents to the border passport and visa control authorities.(3) A foreigner holding multiple citizenship shall be obligated to declare to the border passport control authorities the citizenship which the said foreigner will invoke during the residence thereof in Bulgaria, and to certify this fact by a foreign-travel document issued in good and due form by the State whereof the citizenship the said foreigner has declared.(4) A foreigner holding multiple foreign-travel documents issued in good and due form shall be obligated to leave Bulgaria on the same document on which the said foreigner entered the country.(5) The provision of Paragraph (4) shall furthermore apply to Bulgarian citizens holding another citizenship as well.(6) The border control authorities shall place stamps in the foreigners foreign travel document or substituting document on each entry and on leaving the Republic of Bulgaria with the exception of the cases when the foreigner is a member of the family of a Bulgarian citizen and produces a residence card under Article 8a, paragraph 2.Article 18(Amended, SG No. 42/2001, SG No. 63/2005, effective 1.01.2006) (1) Upon entry into the Republic of Bulgaria, a foreigner shall declare the purpose of the visit thereof and shall state in writing the residence address thereof in Bulgaria, completing a registration card in a standard form endorsed by the Minister of Interior.(2) Any foreigners, who are accredited as members of foreign diplomatic missions, consular posts and trade representations, shall register at the Ministry of Foreign Affairs.(3) (Amended, SG No. 29/2007) Any foreigners, who transit the territory of the Republic of Bulgaria shall not complete registration cards.Article 19(Amended, SG No. 29/2007) (1) Any foreigner who enters the Republic of Bulgaria or who transits the country, depending on the purpose of the travel, must be in possession of:1. a standard foreign travel document or another substituting document as well as a visa if required;2. sufficient financial means to ensure his/her subsistence according to the length and conditions of the residence in the Republic of Bulgaria as well as to return in the state of his/her permanent residence or to pass through the Republic of Bulgaria;3. medical insurance and other insurances;4. sample invitation if required;5. any other documents proving the purpose of the journey.(2) The amount of the financial means referred to in Paragraph 1, Items 1 and 2, the minimal insurance sums referred to in paragraph 1, item 3 and the documents referred to in paragraph 1, item 5 shall be determined by an act of the Council of Ministers.Article 20(Amended, SG No. 42/2001, SG No. 37/2003)(1) (Amended, SG No. 29/2007) Carriers engaged in carrying foreigners or Bulgarian citizens by road, air or water to and/or from the Republic of Bulgaria, shall, before performing the service, be obliged to have checked:1. the validity of the travel document held by the foreigner and the existence of a Bulgarian visa if required;2. the existence of visas for the state(s) the persons wish to visit or through which they wish to transit if required in the cases of air transit or transit passage through the territory of the Republic of Bulgaria.(2) In cases where a foreigner has been declined entry into the Republic of Bulgaria on the basis of a failure to meet the obligation referred to in paragraph 1, the carrier that has transported such foreigner shall be obliged, upon a request from the border control authorities, to return such foreigner at its own expense to the state from which he has been transported, to the state which has issued the travel document on which such foreigner has arrived, or to another state where he will be allowed entry. In case the return cannot be effected immediately, any cost associated with the foreigner's stay shall be for the account of the carrier.(3) The carrier shall also be under the obligation to return at its expense following the procedure set out in paragraph 2 any foreigner transiting through the Republic of Bulgaria where the subsequent carrier should refuse to transport him to the state which is the ultimate travel destination.(4) The provisions of paragraphs 2 and 3 shall apply also with respect to any foreigner returned to the Republic of Bulgaria who has transited through the country.Article 20a(New, SG No. 63/2007)(1) Any carrier transporting passengers by air to the Republic of Bulgaria must provide the following information upon request by the competent authorities of the Border Police Department under the Police General Directorate by the time flight check-in is complete:1. type and number of passenger's travel document;2. passenger's name, date of birth and nationality;3. name of the check point used to enter the country;4. transportation code;5. date and time of departure and arrival of the transportation vehicle;6. total number of passengers carried on the relevant trip;7. initial departure point.(2) Processing of personal data under paragraph 1 shall be carried out in compliance with the Personal Data Protection Act and all international agreements that the Republic of Bulgaria is signatory to.(3) Any carrier under paragraph 1 shall provide the required information electronically and when this is not possible shall use other appropriate methods.(4) Any carrier under paragraph 1 shall erase personal data within 24 hours upon arrival of the respective transportation vehicle on the territory of the Republic of Bulgaria.(5) The competent authorities of the Border Police Department under the Police General Directorate shall erase data provided pursuant to paragraph 1 within 24 hours upon receipt thereof, save in the cases when they need those data to exercise their statutory powers.Article 21(1) A foreigner entering, staying in, or transiting this country by vehicle, either by land, or by air, or by water, must be in possession of:1. a transit permit for the vehicle when such permit is required under the laws of Bulgaria and the international treaties whereto the Republic of Bulgaria is a signatory;2. documents evidencing the vehicle's registration;3. documents evidencing the title to the vehicle if it is not evidenced by the documents referred to in subparagraph 2 above;4. mandatory insurance;5. operator's licence.(2) No vehicle shall be admitted into this country unless all requirements set forth in paragraph (1), subparagraphs 1, 4 and 5 above have been fulfilled.(3) (Supplemented, SG No. 42/2001, amended, SG 29/2007) The border control authorities shall impound the means of transport and the documents in case the grounds referred to in Items 2 and 3 of Paragraph (1) exist, and a written statement shall be drawn up on the said impoundment and a copy of the said statement shall be served on the foreigner. The written statement and the documents shall be transmitted to the competent customs authorities.(4) A foreigner in possession of valid documents allowing him to enter this country, but not in possession of valid papers for the vehicle as specified in paragraph (1) above, shall be admitted into the countryArticle 21a(New, SG No. 42/2001)(1) (Supplemented, SG No. 109/2007) The Minister of Interior, the Chairperson of the State Agency for National Security, the Minister of Foreign Affairs, or officials authorised by them may, from time to time, include foreigners in the data base of foreigners unacceptable to this country, in the evidence of the grounds specified under Articles 10 and 11.(2) (Supplemented, SG No. 109/2007) The terms and procedure for maintaining and updating the data base under paragraph (1) shall be established by the Minister of Interior, the Chairperson of the State Agency for National Security and by the Minister of Foreign Affairs.Chapter IIISTAY OF FOREIGNERS IN THE REPUBLIC OF BULGARIAArticle 22(1) Stay of foreigners in the Republic of Bulgaria shall only be admissible on the grounds of:1. (amended, SG No. 29/2006) a visa issued under Article 9a, paragraph 2 herein;2. international agreements on visa-free travel or on alleviated visa regulations;3. a permission of the services charged with exercising administrative control over foreigners.(2) (Amended, SG No. 29/2006) As an exception when this is required by the national interest or by force majeure the services for administrative control of foreigners may extend the terms of residence of a foreigner beyond the one permitted by the visa under a procedure specified by the Regulation on the application of this act.(3) With regard to foreigners enjoying diplomatic and consular immunity, the permission as per paragraph (2) above shall be granted by the Ministry of Foreign Affairs.(4) (New, SG No. 109/2007) The permission as per paragraph 1 item 3 shall be issued subject to a written statement on behalf of the State Agency for National Security.Article 23(1) Foreigners shall stay in the Republic of Bulgaria on a short term and on a long-term basis.(2) A short-term stay shall be up to ninety (90) days reckoned from the date of entry into the country. Such term may be extended by the services exercising administrative control over foreigners for reasons of humanitarian nature.(3) A long-term stay shall be:1. continued for an authorised term of up to one (1) year;2. permanent for an indefinite authorised term.(4) (New, SG No. 52/2007) The timeframes under paragraph 3 do not apply to foreigners who have been granted protection under the Asylum and Refugees Act. Article 24(1) (Amended, SG No. 29/2007) A long-term residence permit may be granted to foreigners who possess a visa under Article 15, paragraph 1 and:1. (amended, SG No. 42/2001, SG No. 112/2001) are willing to work under an employment agreement, having been granted a work permit by the authorities of the Ministry of Labour and Social Policy;2. (amended, SG No. 42/2001, supplemented, SG No. 37/2003) have engaged in commercial activities in this country in keeping with the legally established order and as a result of that at least ten (10) jobs for Bulgarian citizens have been created unless otherwise agreed in an international treaty ratified, promulgated and entered into force for the Republic of Bulgaria;3. have been admitted to full-time training in duly licensed educational establishments;4. are foreign specialists staying in this country in accordance with international agreements to which the Republic of Bulgaria is a party;5. (amended, SG No. 29/2007) have grounds to be permitted permanent residence, or have contracted a marriage with a foreigner permanent resident in Bulgaria;6. (amended, SG No. 42/2001) serve as the representatives of foreign companies duly registered with the Bulgarian Chamber of Commerce and Industry;7. (supplemented, SG No. 37/2003) are well-provided parents of legal permanent resident foreigners in this country or of a Bulgarian citizen;8. (amended SG No. 70/2004) have been admitted to a medical establishment for continued treatment and have sufficient funds to pay for such treatment and to provide for themselves;9. are foreign mass-media correspondents with accreditation to the Republic of Bulgaria;10. are secured by a pension and have adequate means of support in this country;11. (amendment, SG No. 37/2004) carry out activities under the Investments Promotion Act; 12. (repealed, SG No. 42/2001)13. (amended, SG No. 42/2001) are members of a foreigner's family where the said foreigner has been granted authorisation for continued stay.14. (new, SG No. 42/2001, amended, SG No. 37/2003, amended, SG No. 63/2005, effective 1.01.2006, SG 29/2007) are the parents of a foreigner or are de facto cohabitees of a foreigner who has been granted a durable residence permit in pursuance of Article 22, paragraph 3 herein;15. (new, SG No. 42/2001, amended, SG No. 112/2001) are willing to work on a free-lance basis, having been granted a permit by the authorities of the Ministry of Labour and Social Policy in pursuance of Article 24a;16. (new, SG No. 112/2001, supplemented, SG No. 109/2007) are willing to engage in not-for profit activities, having been granted a permit by the Ministry of Justice under terms and conditions set out in a Regulation issued by the Minister of Justice in consultation with the Minister of Interior and with the Chairperson of the State Agency for National Security.17. (new, SG No. 29/2007) have been granted a special protection status under Article 25 of the Combating Trafficking in Human Beings Act. 18. (new, SG No. 29/2007) are members of the family of a Bulgarian citizen under Article 2, paragraph 2.(2) All persons as per paragraph (1) above ought to be provided with a domicile, financial support, mandatory insurance and social security in compliance with the laws of the Republic of Bulgaria. The norms therefore shall be laid down in an enactment of the Council of Ministers.(3) (New, SG No. 63/2005) The requirement under Item 2 of Paragraph (2) for creation of at least ten jobs for Bulgarian citizens shall not apply to citizens of any Member State of the European Union, as well as to citizens of any other State participating in the European Economic Area.Article 24a(New, SG No. 42/2001, amended, SG No. 112/2001)(1) (Supplemented, SG No. 37/2003) A foreigner wishing to stay for a continued period on the territory of the Republic of Bulgaria in order to exercise a free lance profession may be granted a continued stay visa or a permit for continued stay, provided he fulfils the statutory requirements for entry into and stay in this country, upon presentation of the following documents to the diplomatic and consular missions, or the services exercising administrative control over foreigners:1. An application following a sample format;2. A permit to exercise a free lance profession;(2) Permits to exercise free lance profession shall be issued by the authorities of the Ministry of Labour and Social Policy.(3) (Amended and supplemented, SG No. 109/2007) The terms and procedure for the issuance, denial or withdrawal of permits to exercise free lance professions to foreigners shall be established in a Regulation issued by the Minister of Labour and Social Policy in co-ordination with the Minister of Interior, the Minister of Finance and the Chairperson of the State Agency for National Security.(4) No visa for a continued stay for the purposes of free lancing shall be issued to foreigners in the cases set out under Article 24, paragraph (1), subparagraphs (1) through (13) and (16).(5) Foreigners meeting the statutory requirements for exercising the respective free lance profession shall be exempted from the issuance of a permit, where this is provided in an international agreement to which the Republic of Bulgaria is a signatory.Article 24b(New, SG No. 63/2007)(1) A Durable Residence Permit may also be issued to foreigners in possession of visas pursuant to article 15 (1) and work as researchers under an exchange agreement with a research organization whose seat is in the Republic of Bulgaria in relation to research projects, provided that the said organization is registered on the list of research organizations in the sense of Council Directive 2005/71/EC on the specific procedure for admitting third-country nationals for the purposes of scientific research.(2) The Durable Residence Permit shall be issued to persons under paragraph 1 for a period of one year and shall be extended if there are grounds for its repeated issuance. If the duration of the relevant research project is less than a year, the residence permit shall be issued for a period corresponding to the project duration.(3) A foreigner entitled to receive a durable residence permit in the Republic of Bulgaria pursuant to paragraph 1 must submit a valid foreign travel document to the controlling administrative bodies and must also file:1. a model application;2. a document certifying the payment of stamp duty under Tariff No. 4 on fees collected in the system of the Ministry of Interior pursuant to the Stamp Duty Act; 3. a photo copy of the foreign travel document pages containing the photograph and the personal data of the holder, the entry visa and the most recent entry stamp into the country.4. written evidence of a secured temporary residence in the country for the duration of the stay;5. a certified copy of the exchange agreement with the research organization legally registered in the Republic of Bulgaria;(4) The application shall be reviewed and ruled upon within 7 business days and the foreigner shall be notified about the decision in writing.(5) (New, SG No. 13/2008) The terms and procedure for inclusion of research organisations whose seat is in the Republic of Bulgaria in the list referred to in Paragraph (1) shall be established by an ordinance of the Minister of Education and Science.Article 25Authorisation for permanent residence shall be grantable to foreigners:1. of Bulgarian nationality;2. (amended, SG No. 29/2006) five years after contracting a marriage with a Bulgarian citizen or with a foreigner permanent resident in Bulgaria;3. (amended, SG No. 29/2006) minor or underage children of a foreigner permanent resident in Bulgaria, who have not married;4. (amended, SG No. 42/2001) who are parents of a Bulgarian citizen, when they provide him with the alimony due under the law, and in cases of recognition or adoption, after the expiration of three (3) years of the recognition or adoption;5. (amended, SG No. 29/2006) who have resided within Bulgarian territory on a legal ground without interruption during the preceding five years and in the cases under Item 3 of Article 24, paragraph 1 herein only half of the time of residence shall be counted;6. (amended, SG No. 11/2005) who have invested in this country over five hundred thousand US dollars ($ 500,000) in compliance with the legally established terms and procedures.7. (new, SG No. 42/2001) who are not persons of Bulgarian origin born on the territory of the Republic of Bulgaria, have lost their Bulgarian citizenship pursuant to emigrant treaties or upon their own will, and wish to settle permanently on the territory of this country.8. (new, SG No. 37/2003) who, prior to 27 December 1998, have entered, have been staying or were born on the territory of the Republic of Bulgaria and whose parent has married a Bulgarian citizen under a civil matrimony procedure.9. (new, SG No. 29/2007) members of the family of a Bulgarian citizen if they have resided without interruption on the territory of the Republic of Bulgaria in the last five years.Article 25a(New, SG No. 42/2001)Authorisation for stay in the Republic of Bulgaria, without fulfilment of the requirements under this Act, may be granted to foreigners who have merits to the Republic of Bulgaria in the public and economic sphere, in the area of national security, science, technology, culture or sports.Article 25b(New, SG No. 52/2007)Regardless of whether the requirements of this act are met, permission to reside in the Republic of Bulgaria will be granted to foreigners who per the Asylum and Refugees Act: 1. were granted asylum or refugee status or such were granted to the members of their family - for a period of five years;2. were granted humanitarian status or such was granted to the members of their family - for a period of three years;3. were granted temporary protection Ц for the duration of the protection period.Article 26(1) (Redesignated from Article 26, SG No. 42/2001) A foreigner shall be denied extension of the authorised duration of his stay in this country in any of the cases under Articles 10 and 11 hereof.(2) (New, SG No. 42/2001) Extension of the duration of continued stay in this country shall be refused, or authorisation of continued stay granted shall be revoked with respect to a foreigner for whom it has been established that he has not resided on the territory of the Republic of Bulgaria for at least six (6) months and one (1) day in the course of the preceding calendar year.(3) (New, SG No. 42/2001; supplemented, SG No. 37/2003) Issuance of authorisation for continued stay shall be refused, and, where one has been granted, it shall be revoked, with respect to a foreigner who has entered in matrimony with a Bulgarian citizen or with a foreigner who has been granted authorisation for continued stay, if there is evidence indicating that the matrimony has been entered into for the sole purpose of evading the norms regulating the regime applicable to foreigners in the Republic of Bulgaria, and of obtaining an authorisation of stay.(4) (New, SG No. 42/2001) The judgement to refuse or revoke the authorisation under paragraph (3) shall be made by the services exercising administrative control of foreigners on the basis of evidence that provide grounds to make a reasonable conclusion that the matrimony has been entered into for the sole purpose of evading the norms regulating the regime applicable to foreigners in the Republic of Bulgaria, and of obtaining an authorisation of stay. Such evidence can include:1. the fact that the spouses do not live together;2. the absence of any contribution to the obligations ensuing from matrimony;3. the fact that the spouses had not known each other prior to entering into matrimony;4. provision of contradictory information as to personal data about the other spouse (name, address, nationality, profession), about the circumstances of their acquaintance, or about another important personal information;5. the fact that the spouses do not speak a language understandable to both of them;6. the payment of an amount of money for entering into matrimony beyond the customary dowry;7. the existence of previous marriages made for the purpose of evading the norms regulating the regime applicable to foreigners.(5) (New, SG No. 42/2001; amended, SG No. 37/2003) Evidence under paragraph (4) may be established by interviews held by officers of the services for administrative control of foreigners, from statements made by the parties concerned or by third parties, from documents, or from checks and investigations performed by government authorities. The services exercising administrative control of foreigners shall be obligated to give the parties concerned a hearing.Article 26a(New, SG No. 37/2003, amended, SG No. 11/2005, repealed,SG No. 63/2005). Article 27(1) (Amended, SG No. 29/2006) Any foreigners, who have entered Bulgaria on a certain ground, shall be refused extension of the duration of residence on another ground, with the exception of cases when this is required by the national interest and under force majeure.(2) The duration of stay of foreigners shall only be extendible up to six (6) months prior to the expiration of their national foreign-travel documents' validity.Article 27a(New, SG No. 42/2001)Government authorities which, pursuant to a statutory act, perform registration of foreigners, or of activities performed by foreigners, shall be obligated to check the type and grounds of visas issued to foreigners. In the event of establishing a discrepancy between the required registration and the type and grounds of the visa issues, registration shall not be made and the services exercising administrative control of foreigners shall be notified immediately.Article 27b(New, SG No. 42/2001)(1) Officials who, as a result of the duties performed by them, have established a change in the legal status or the activity of foreigners, must notify thereof the services exercising administrative control of foreigners immediately.(2) In the event of a revocation or termination of a foreigner's right to permanent residence, the services exercising administrative control of foreigners shall notify the civil registration authorities immediately.Article 28(Amended, SG No. 42/2001)(1) (Amended, SG No. 37/2003, SG No. 11/2005, repealed, SG No. 63/2005, effective 1.01.2006) (2) (Repealed, SG No. 63/2005, effective 1.01.2006). (3) (Supplemented, SG No. 37/2003, amended, SG No. 11/2005) Any natural or legal person that has provided shelter to a foreigner must, within 5 days of providing such shelter, notify thereof, in writing, the service exercising administrative control over foreigners or the district police department in the jurisdiction of which he is residing, by stating the foreigner's full name, date of birth, citizenship, number and series of identity document.(4) A person engaged in hospitality business activity, or their staff, shall, when providing accommodation to a foreigner, register him immediately in a special register. Information about foreigners accommodated shall be provided on a daily basis by such person not later than 06:00 hours to the service exercising administrative control over foreigners or the police department in the jurisdiction of which the hotel is located.(5) (New, SG No. 37/2003, repealed, SG No. 63/2005, effective 1.01.2006). (6) (Renumbered from Paragraph (5), SG No. 37/2003, repealed, SG No. 63/2005, effective 1.01.2006). (7) (Renumbered from Paragraph (6) and amended, SG No. 37/2003, amended, SG No. 63/2005, effective 1.01.2006) The stay in the Republic of Bulgaria of the persons referred to in Article 18 (2) and in Item 14 of Article 24 (1) herein shall not be assimilated to the duration required to obtain a permanent residence permit or to acquire Bulgarian citizenship by naturalization.Article 28a(New, SG No. 42/2001)(1) (Amended, SG No. 54/2002) A foreigner who has not completed 18 years of age, who has entered this country on legal grounds unaccompanied by an escort: a parent or another person of legal age who is responsible for him under statutory provisions or common practice, or has done so with an escort but has been abandoned by him and who has not requested protection under the Asylum and Refugees Act, may be granted an extension of the duration of stay on the territory of the Republic of Bulgaria.(2) The state Agency for Child protection shall provide, temporarily, any foreigners under paragraph (1) with the material support and care necessary to meet their basic sustenance needs, medical care and due guardianship, including legal assistance and representation, and with access to free-of charge education at Bulgarian state and municipal schools, until the final settlement of the matter of their stay in this country but sot after they have completed 18 years of age.(3) In cases where any foreigners under paragraph (1) are not granted an extension of the duration of stay on the territory of the Republic of Bulgaria, they shall be returned to their country of origin, a third country willing to accept them, or a country obliged to accept them under an agreement for delivery and re-acceptance signed with the Republic of Bulgaria, provided that in such a country their life and freedom are not jeopardised and they are not exposed to the danger of persecution, torture or inhuman or humiliating treatment.Article 29Foreigners residing in the Republic of Bulgaria on a long-term basis shall be required to certify their identity under such terms and procedures as shall be established by law.Article 30The loss or destruction of a foreigner's valid foreign-travel documents, or substitute papers, must be reported immediately to the services exercising administrative control over foreigners.Article 31(1) A foreigner's foreign-travel documents may be temporarily detained:1. by the competent bodies of the judiciary when penal proceedings have been instituted because of a crime commission;2. by the competent officers in the event of the foreigner's commitment to an institution for imprisonment of convicted persons;3. by the Ministry of Interior's authorities when there is reasonable doubt that the documents are counterfeit or forged;4. by the Ministry of Interior's authorities in the event that an order has been issued prescribing expulsion, forcible taking under escort to the border, or extradition from this country;5. (repealed, SG, No. 29/2007); 6. by the Ministry of Interior's authorities in all events where foreigners have been forcibly sent back from another country.(2) In all cases stipulated under paragraph (1), subparagraphs 1, 2 and 3 above, the officials detaining a foreigner's documents shall draw up a written statement on the basis whereof the services exercising administrative control over foreigners shall issue a temporary document certifying the person's identity.(3) A detained foreign-travel document shall be returned to the concerned foreigner when the grounds for its temporary detention are no more existent.(4) Foreign-travel documents of foreigners enjoying diplomatic immunity in the Republic of Bulgaria shall not be subject to detention, unless otherwise provided in the international treaties whereto the Republic of Bulgaria is a signatory.Article 32Foreign-travel documents of foreigners shall not be given or accepted as security by pledge, nor shall they be given into another's keeping for temporary use.Article 33(1) Foreigners who have been allowed permanent residence in the Republic of Bulgaria shall be allowed to seek employment under the terms and procedures established for Bulgarian citizens.(2) Foreigners who have been allowed short-term or continued stay in the Republic of Bulgaria's territory shall only be allowed to carry out activities under an employment agreement following the receipt of permission from the competent bodies of the Ministry of Labour and Social Policy.(3) Foreigners who have been granted a work permit shall only be allowed to work for the employer and for the period of time specified in their work permit.Chapter III "a"LONG-TERM RESIDENCE OF A FOREIGNER WHO HAS RECEIVED A LONG-TERMRESIDENCE PERMIT IN ANOTHER MEMBER-STATE OF THE EUROPEAN UNION(New, SG No. 29/2007)Article 33a(New, SG No. 29/2007)(1) A foreigner who has received a long-term residence permit in another European Union member-state may receive a long-term residence permit in the Republic of Bulgaria:1. if he/she is a worker, employee of a self employed person in the Republic of Bulgaria;2. for the purpose of study, including professional training in an educational establishment;(2) A long-term residence permit shall be issued to the foreigner under paragraph 1 if he/she complied with the terms referred to in Article 24, paragraph 2 and if he/she presents:1. a work permit in the Republic of Bulgaria - if he/she is a worker or employee;2. documents that he/she has permission to perform an activity as self- employed and commands the required resources for engaging in business activities - if he/she is self employed;3. a certificate from the educational establishment that he/she has been accepted for study in the respective year - if the residence is for educational purposes.Article 33b(New, SG No. 29/2007)(1) Within one month after his/her entry into the territory of the Republic of Bulgaria the foreigner shall submit to the services for administrative control of foreigners an application for issuing a long-term residence permit on the territory of the Republic of Bulgaria.(2) The application shall be considered within four months after the date of its submission.(3) When the documents under Article 33a, paragraph 2 have not been enclosed with the application of the case is complex from a factual point of view the term may be extended by no more than three months. In these cases the services for administrative control of foreigners shall notify forthwith the foreigner thereof.(4) The procedure for reviewing the application shall be determined in the Regulation on the implementation of this act.Article 33c(New, SG No. 29/2007)(1) The long-term residence permit shall be issued for a term of five years.(2) The permit shall be renewed on an application by the foreigner by the services for administrative control of foreigners after its expiryArticle 33d(New, SG No. 29/2007)(1) When the foreigner referred to in Article 33a, paragraph 1 has a long-term residence permit and has a family established in a European Union member-state which has issued his/her long-term residence permit the members of his/her family shall be entitled to accompany him/her of to join him/her.(2) In order to obtain a residence permit for the members of the family they shall submit to the territorial service for administrative control of foreigners the following:1. a standard foreign travel document;2. the documents referred to in Article 24, paragraph 2;3. their long-term residence permit or a residence permit in another European Union member-state;4. proof that they have resided in the capacity of members of the family of a foreigner residing in another European Union member-state.(3) The term of residence of the members of the family shall be determined for the term of residence of the foreigner referred to in Article 33a, paragraph 1.(4) When the family came into existence under the terms of paragraph 1 the general rules for foreigners entering and residing in the Republic of Bulgaria shall apply to the members of the family of the foreigner referred to in Article 33a, paragraph 1.Article 33e(New, SG No. 29/2007)The Services for administrative control of foreigners shall notify the other European Union member-state of the granted right to long term residence of the foreigner referred to in Article 33a, paragraph 1.Article 33f(New, SG No. 29/2007)(1) The Services for administrative control of foreigners shall refuse long-term residence permit to a foreigner referred to in Article 33a, paragraph 1 or to a member of his/her family:1. when he/she does not comply with the conditions for receiving entitlement to long-term residence specified in this section;2. on the grounds of Article 10 or 11;3. when the foreigner of the members of his/her family do not reside legally on the territory of the Republic of Bulgaria.(2) The long-term residence permit of a foreigner referred to in Article 33a, paragraph 1 or of the members of his/her family shall be withdrawn when the grounds for his/her residence and in the cases referred to in Article 26, paragraph 2 have become defunct.(3) The refusal or withdrawal of the entitlement to long-term residence shall be subject to appeal under the procedure of the Administrative Procedure Code. Article 33g(New, SG No. 29/2007)(1) When grounds exist to refuse long-term residence the authorities of the Ministry of the Interior shall return forthwith and without any formalities the foreigner referred to in Article 33a, paragraph 1 or the members of his/her family to the European Union member-state in which they have a long-term residence permit.(2) In the cases referred to in paragraph 1 the authorities of the Ministry of the Interior shall notify the competent authorities of the other European Union member-state.Article 33h(New, SG No. 29/2007)(1) (Supplemented, SG No. 109/2007) When the foreigner referred to in Article 33a, paragraph 1 or the members of his/her family present a serious threat to public safety and order the authorities of the Ministry of the Interior or to the State Agency for National Security may expel them from the territory of the European Union even before they have received entitlement to long-term residence in the Republic of Bulgaria after coordination with the competent authorities of the other European Union member-state in which they have a long-term residence permit.(2) In case of expulsion the length of the foreigners residence in the Republic of Bulgaria, the age, the health status, the family position, the social integration and the existence of a relationship with the state of residence or the lack of a relationship with the state of origin shall be taken into consideration.(3) (Supplemented, SG No. 109/2007) The authorities of the Ministry of the Interior or to the State Agency for National Security shall notify the competent authorities of the other European Union member-state of the implementation of the decision on expulsion.Chapter IVFOREIGNERS LEAVING THE REPUBLIC OF BULGARIAArticle 34Every foreigner shall be obliged to leave this country no later than the expiration of his authorised duration of stay.Article 35(1) A foreigner staying on a short-term basis whose foreign-travel document has been replaced by a new one shall be allowed to leave this country after he shall have notified thereof the services exercising administrative control over foreigners, unless otherwise provided in an international agreement to which the Republic of Bulgaria is a party.(2) A foreigner who has authorisation for continued stay, shall be allowed to leave and re-enter the country without a visa until the expiration of the authorised duration of stay.(3) A legal permanent resident foreigner shall be allowed to enter and leave this country visa-free.Article 36Foreigners shall be allowed to leave the Republic of Bulgaria through the places designated therefore on the grounds of foreign travel documents or other substitute papers entitling them to leave the country.Article 37No foreigner shall be allowed to leave this country in case a coercive administrative measure has been imposed upon him to prevent him from leaving.Article 38A foreigner leaving the Republic of Bulgaria by vehicle, either by land, or by air, or by water, must be in possession of all documents as per Article 21, paragraph (1), subparagraphs 2 and 3, as well as a permission, if required, to export the vehicle.Article 39The surrender of foreigners extraditable because of a crime commission shall be effected under the terms and procedures established by the laws of Bulgaria and by the international treaties whereto the Republic of Bulgaria is a signatory.Chapter VMEASURES OF ADMINISTRATIVE COMPULSIONSection ICoercive Administrative MeasuresArticle 39a(New, SG No. 42/2001)Coercive administrative measures enforceable with respect to foreigners under this Act shall include the following:1. revocation of the right to stay in the Republic of Bulgaria;2. forcible escort to the border of the Republic of Bulgaria;3. expulsion;4. ban on entering the Republic of Bulgaria;5. ban on leaving the Republic of Bulgaria.Article 40(Amended, SG No. 42/2001)(1) Revocation of a foreigner's right to stay in the Republic of Bulgaria shall be imposed in the event that:1. the grounds as set forth in Article 24, paragraph (1) and in Article 25, subparagraphs 2 and 6 hereof are no longer valid;2. there are grounds for revocation under Article 10 hereof;3. it has been established that the information provided for the purpose of achieving such right is incorrect;4. the marriage has been terminated less than five years after it was entered into in accordance with Article 25, subparagraph 2 hereof;5. the foreigner has failed to settle in this country within one (1) year of permission and is not residing in its territory, with the exception of the cases under Article 25, subparagraph 6 hereof.6. it has been established that the foreigner has not resided on the territory of the Republic of Bulgaria for at least six (6) months and one (1) day in the course of the preceding calendar year.7. (new, SG No. 52/2007) refugee or humanitarian status under the Asylum and Refugees Act are revoked or terminated.8. (new, SG No. 52/2007) asylum granted under the Asylum and Refugees Act is revoked.(2) A revocation of a foreigner's right to stay in the Republic of Bulgaria may be imposed in the presence of the grounds stipulated in Article 11.(3) (New, SG No. 29/2007) A copy of the order which has entered into force on withdrawal of the entitlement of a foreigner to reside in the Republic of Bulgaria shall be sent to the municipality of his/her permanent address to be entered into the register of the population.Article 41(Amended, SG No. 42/2001)Forcible escorting of a foreigner to the border of the Republic of Bulgaria shall be imposed in the event that:1. the concerned foreigner is unable to evidence that he has entered this country lawfully;2. the concerned foreigner has failed to leave the country prior to the expiration of his authorised duration of stay, or within seven (7) days of notification that extension of his authorised stay has been denied;3. it has been established that the concerned foreigner has entered this country and is staying in this country under a false or forfeited foreign-travel document or a substitute document;Article 42(Amended, SG No. 42/2001)(1) Expulsion of a foreigner shall be imposed when his presence in this country poses a serious threat to national security or public order.(2) With the imposition of the coercive administrative measure under paragraph (1), the right of a foreigner to stay in the Republic of Bulgaria shall also be revoked and a ban on entering the Republic of Bulgaria shall be imposed.Article 42a(New, SG No. 29/2007)A foreigner residing on the territory of the Republic of Bulgaria to whom an expulsion decision has been issued by the competent authorities of another European Union member-state shall also be expelled.Article 42b(New, SG No. 29/2007)(1) The expulsion referred to in Article 42a shall be carried out when the expulsion decision has not been cancelled or suspended from execution by the European Union member-state that has issued it also when:1. the foreigner poses a serious and real threat to public order or to national security due to the fact that:a) there is a sentence in relation to him/her for a crime for which imprisonment of at least one year has been imposed;b) there is sufficient data that he/she has committed a serious crime or there is sufficient data of his/her intention to commit such a crime on the territory of a European Union member-state.2. the decision to expel the foreigner shall be on the grounds that he/she does not comply with the provisions of the legislation on entering and residing of foreigners in the European Union member-state that has issued it.(2) In the cases referred to paragraph 1, item 1 when the foreigner holds a residence permit for the Republic of Bulgaria Article 42, paragraph 2 shall also apply.Article 42c(New, SG No. 29/2007)(1) The expulsion referred to in Article 42a shall be carried out after receiving from the competent authorities of the European Union member-state that has issued the expulsion decision conformation that it has not been cancelled or suspended as well as documents confirming the identity of the foreigner.(2) The execution of the expulsion decision issued by the competent authorities of another European Union member-state may be contested under the procedure of the Administrative Procedure Code. Article 42d(New, SG No. 29/2007)The expulsion referred to in Article 42a shall not be executed when a special law or an international agreement to which the Republic of Bulgaria is a party provide otherwise.Article 42e(New, SG No. 29/2007)The authorities of the Ministry of the Interior shall notify the competent authorities of the other European Union member-state that have issued the expulsion decision of its execution or of the existence of grounds for its non-execution.Article 42f(New, SG No. 29/2007)When expulsion cannot take effect at the expense of the foreigner that is being expelled the authorities of the Ministry of the Interior shall notify the competent authorities of the other European Union member-state that have issued the expulsion decision of the costs incurred in relation with its execution. The procedure for the notification shall be set out in the Regulation on the implementation of this act.Article 42g(New, SG No. 29/2007, supplemented, SG No. 109/2007) The authorities of the Ministry of the Interior and to the State Agency for National Security on the grounds of Article 42b, paragraph 1 may issue an expulsion order and require its execution by the competent authorities of the other European Union member- state in relation to a foreigner residing on its territory.Article 42h(New, SG No. 42/2001, renumbered from Article 42a, SG No. 29/2007).TEXСT:(1) A ban to enter the Republic of Bulgaria shall be imposed where the grounds covered under Article 10 herein exist.(2) A ban to enter the Republic of Bulgaria may be imposed where the grounds covered under Article 11 herein exist.(3) A ban to enter the Republic of Bulgaria shall be imposed for a period not exceeding ten years.(4) A ban to enter may be imposed simultaneously with the coercive administrative measure referred to in Item 2 of Article 40 (1), in Article 40 (2), or in Article 41 herein, when the grounds covered under Article 10 or Article 11 herein exist.Article 43(Amended, SG No. 70/1999, SG No. 42/2001)(1) A ban on leaving the Republic of Bulgaria shall be imposed on a foreigner who:1. has been sentenced in court and the sentence has become effective, and he has not served the imposed punishment of imprisonment;2. (amended, SG No. 37/2003) has obligations exceeding BGN 5,000 to Bulgarian legal entities or natural persons that have been established under the established legal procedure and the obligations have not been duly secured;3. (amended, SG No. 45/2002) has liquid and executable obligations towards the state exceeding BGN 5,000 or is a member of the control or management bodies of legal persons, having liquid and executable obligations towards the state exceeding BGN 5,000 in the event due security had not been provided;(2) The measures as per paragraph (1) shall also be imposed to foreigners holding a Bulgarian citizenship as well.(3) A foreigner under 18 years of age who is the holder of a Bulgarian citizenship as well shall be banned from leaving the Republic of Bulgaria where one of the parents is a Bulgarian citizen who has not given a written permission for his travel abroad.Article 44(Amended, SG No. 42/2001)(1) (Amended, SG No. 54/2002, SG No. 103/2003, SG No. 82/2006, SG 29/2007, supplemented, SG No. 109/2007) Coercive administrative measures shall be imposed by an order of the Chairperson of the State Agency for National Security and of the Directors of National Services, the Directors of Chief Directorates and the, Director of the Migration Directorate of the Ministry of the Interior.(2) The orders whereby the entitlement to stay in the Republic of Bulgaria is forfeited shall prescribe a time limit for leaving Bulgaria, upon the expire of which the foreigner shall be deported from Bulgaria.(3) (Amended, SG 29/2007) The orders imposing coercive administrative measures shall be executed by the foreigners administrative control services or by the border control authorities, as the case may be, upon their coming into effect, unless the authority who issued the order has admitted anticipatory execution.(4) The following shall be subject to immediate execution:1. orders revoking the right of stay in the Republic of Bulgaria for reasons of existence of the grounds set out in Article 10, paragraph (1), subparagraph (1);2. orders imposing a ban on entering the Republic of Bulgaria for reasons of existence of the grounds set out in Article 10, paragraph (1), subparagraph (1);3. expulsion orders.(5) In the presence of obstacles barring a foreigner from immediately leaving this country, or from entering another country, such foreigner shall be obliged, under an order to be issued by the authority that has issued the order imposing the coercive administrative measure, to report daily to the respective police precinct in whose jurisdiction he resides, under the procedure laid down in the Rule on Implementing this Act, until such time as the obstacles are no longer in place.(6) The authority that has issued the order of forcible escorting to the border of the Republic of Bulgaria or the expulsion order may, at its own discretion, coercively accommodate the concerned foreigner in a special institution for a period of time until any obstacles on the execution of the coercive administrative measure are no longer in place.(7) (New, SG No. 37/2003, supplemented 103/2003, amended, SG No. 82/2006) Special accommodations for temporary placement of foreigners under order for forcible escort to the border of the Republic of Bulgaria or under an expulsion order shall be established with the Migration Directorate under the Police General Directorate.(8) (New, SG No. 37/2003, supplemented, SG No. 109/2007) Accommodation of foreigners in such special homes shall be provided on the basis of an order for coercive accommodation issued by competent officials from the Ministry of Interior or by the State Agency for National Security whereas such order must expressly indicate the need of such accommodation and the legal grounds, and a copy of the order referred under paragraph (6) must be attached thereto.(9) (New, SG No. 37/2003) The procedure for temporary accommodation of foreigners in such special homes, and their organisation and operations shall be regulated in a regulation issued by the Minister of Interior.Article 44a(New, SG No. 42/2001)A foreigner who has been imposed the coercive administrative measure of expulsion shall not be expelled to a country where their life and freedom are jeopardised and he is exposed to the danger of persecution, torture or inhuman or humiliating treatmentArticle 44b(1) (New, SG No. 42/2001, previous text of Article 44b, SG No. 52/2007) When the immediate expulsion, or forcible escorting of a foreigner to the border is impossible, or the execution of these measures needs to be postponed due to reasons of legal or technical nature, the authority that has issued the order imposing the respective coercive administrative measure shall postpone its execution until the obstacles on its execution are no longer in place.(2) (New, SG No. 52/2007) If upon expiration of the temporary protection period granted under the Asylum and Refugees Act it is not possible to expel or forcefully take a foreigner to the national border or those measures should be postponed for health or humanitarian reasons, the authority which has issued the order to enforce the respective compulsory administrative action shall postpone its effectuation until the obstacles to its implementation are no longer in place.Article 45(Amended, SG No. 29/2007) (1) The costs related to the residence and deportation from Bulgaria of a foreigner that has entered the country on an invitation of a natural or a legal person of whom it is established that he/she does not comply with the legal requirements for the residence of foreigners in the Republic of Bulgaria shall be for the account of the host.(2) In the cases referred tin paragraph 1 the expenses for deporting the foreigner from the country shall be collected by the National Collection Agency under the procedure provided for in the State Receivables Collections Act. (3) (New, SG No. 52/2007) Costs related to taking a foreigner out of the country in compliance with an Asylum and Refugees Act Resolution to transfer a foreigner to the country which is competent to review his/her request for acquiring a status shall be covered by the state budget.Article 46(Amended, SG No. 42/2001)(1) (Amended, SG No. 29/2007) The orders imposing coercive administrative measures may be appealed under the terms and according to the procedure established by the Administrative Procedure Code. (2) (Amended, SG No. 29/2007) The orders on:1. withdrawal the entitlement to residence in the Republic of Bulgaria;2. imposing a bar to enter the Republic of Bulgaria on the grounds of Article 10, paragraph 1, item 1; and3. expulsionshall be subject to appeal before the Supreme Administrative Court whose decision shall be final.(3) Orders under paragraph (2) shall not indicate the factual grounds for imposing the coercive administrative measure.(4) A petition against an order under paragraph (2) shall not stay its execution.Article 46a(New, SG No. 42/2001)Government authorities exercising powers in connection with the terms and procedure for entry into, stay in and leaving the Republic of Bulgaria by foreigners shall co-operate with the competent authorities of other states in combating illegal migration and in the execution of expulsions.Article 47(Repealed, SG No. 42/2001)Section IaRequest for Assistance in the Cases of Transit for Deporting a Foreigneroutside the Territory of the Republic of Bulgaria by Air Addressed bythe Authorities of the Ministry of the Interior to the CompetentAuthorities of Another European Union Member-State(New, SG No. 29/2007)Article 47a(New, SG No. 29/2007)(1) The authorities of the Ministry of the Interior may request with a written application assistance from the competent authorities of another European Union member-state in the cases of transit for deporting a foreigner outside the territory of the Republic of Bulgaria by air in case there is no possibility to use direct flight to the state that is the end destination of the journey.(2) Air transit may not be requested when a change of airport is required on the territory of the other European Union member-state to which the application for assistance is addressed.Article 47b(New, SG No. 29/2007)(1) The application shall be addressed to the competent authorities of another European Union member-state whose assistance is requested forthwith but not later than two days before the transit date.(2) Air transit through the territory of another European Union member- state shall be carried out after receiving the permission of its competent authorities.(3) In case the competent authorities of the other European Union member-state to which the application is addressed fail to respond within the time-limit referred to in paragraph 1 the actions on the transit may commence after the authorities of the Ministry of the Interior notify its competent authorities of carrying out the transit.Article 47c(New, SG No. 29/2007)(1) A foreigner shall be accepted immediately on the territory of the Republic of Bulgaria when:1. an air transit permission through the territory of the other European Union member-state has been refused or withdrawn;2. the foreigner has entered without permission the territory of the other European Union member-state through which the transit has been carried out;3. the deportation of the foreigner for transit through another European Union member-state or to the end destination state has not been carried out or he/she has not boarded the connection flight;4. the air transit cannot take place due to other reasons.(2) The costs related to the return of the foreigner shall be borne by the Republic of Bulgaria.Section IbRendering Assistance to the Competent Authorities of Another EuropeanUnion Member-State in Cases of Air Transit of a Foreigner Through theRepublic of Bulgaria(New, SG No. 29/2007)Article 47d(New, SG No. 29/2007)The authorities of the Ministry of the Interior may render assistance to the competent authorities of another European Union member-state for air transit of a foreigner through the territory of the Republic of Bulgaria in case of a submitted application in writing.Article 47e(New, SG No. 29/2007)(1) The authorities of the Ministry of the Interior shall notify the competent authorities of the other European Union member-state which have addressed the transit application of the decision to carry out the transit as well as of the possibilities of taking some of the measured referred to in Article 47g within two days after receiving the application.(2) In exceptional cases the term under paragraph 1 may be extended by at most two days. The need to extend the term shall be substantiated.(3) If the authorities of the Ministry of the Interior fail to notify the competent authorities of the other European Union member-state which have addressed the transit application of the decision to carry out the transit within the term referred to in paragraphs 1 and 2 the actions on the transit may commence after a notification by the competent authorities of the other European Union member-state.Article 47f(New, SG No. 29/2007)(1) When carrying out the transit through the territory of the Republic of Bulgaria the foreigner may be accompanied by persons who have been authorised thereof by the legislation of the other European Union member- state, the competent authorities of which have addressed the transit application.(2) The persons accompanying the foreigner shall be entitled to render assistance to the authorities of the Ministry of the Interior to prevent the escape of the foreigner, inflicting self-injuries, damages to third persons or damaged to a third parties property.(3) The persons accompanying the foreigner shall be obliged to:1. take the required action to prevent the circumstances referred to in paragraph 2 in the cases when it is impossible for the authorities of the Ministry of the Interior to carry out their powers; in these cases the persons accompanying the foreigner shall be obliged to observe the laws of the Republic of Bulgaria;2. produce their identity documents as well as the transit decision or the notification referred to in Article 47e, paragraph on request by the authorities of the Ministry of the Interior.(4) The persons accompanying the foreigner may not carry arms or wear a uniform.Article 47g(New, SG No. 29/2007)(1) The authorities of the Ministry of the Interior shall render assistance for carrying out the transit through employing one or several of the following measures:1. receiving the foreigner from the board of the aircraft and accompanying him/her within the confines of the security zone of the transit airport;2. rendering emergency medical assistance to the foreigner and the persons accompanying him/her, as appropriate;3. providing food to the foreigner and the persons accompanying him/her, as appropriate;4. receiving, safekeeping and transferring of travel documents;5. notifying the competent authorities that have addressed the transit application of the exact departure time and place of the foreigner from the Republic of Bulgaria in the cases when the foreigner is not accompanied by persons authorised thereof;6. notifying the competent authorities that have addressed the transit application of occurring serious incidents during the foreigners transit.(2) Within the possibilities and in compliance with applicable international rules the authorities of the Ministry of the Interior shall take all necessary measures to render assistance from the landing and the opening of the doors of the aircraft until the foreigners departure from the Republic of Bulgaria following preliminary consultations with the competent authorities of the other European Union member-state that have addressed the transit application with the exception of the cases referred to in paragraph 1, item 2.(3) In case the carrying out of the transit proves impossible and re- acceptance of the foreigner is required by the other European Union member- state which has addressed the application the authorities of the Ministry of the Interior shall render assistance thereof.Article 47h(New, SG No. 29/2007)The authorities of the Ministry of the Interior shall take all necessary measures to effect the transit within the shortest possible time but not exceeding 24 hours.Article 47i(New, SG No. 29/2007)(1) The costs for rendering assistance for air transit of a foreigner through the territory of the Republic of Bulgaria shall be at the expense of the other European Union member-state, the competent authorities of which have addressed the transit application.(2) The authorities of the Ministry of the Interior shall provide information to the competent authorities of the other European Union member- state of the costs referred to paragraph 1Article 47j(New, SG No. 29/2007)(1) Assistance for effecting the transit referred to in article 47d may be refused when:1. the foreigner has been accused of committing a crime under Bulgarian law or there is an effective sentence in relation to him/her which is subject to enforcement in the Republic of Bulgaria;2. the foreigner poses a threat to public safety and order, public health or the relations of the Republic of Bulgaria with other states or international organisations;3. no transit is possible through other state to the end destination state or the acceptance of the foreigner in the end destination state is impossible;4. a change of airport is required on the territory of the Republic of Bulgaria;5. no assistance for air transit can be given on the specified date due to other reasons; in these cases the authorities of the Ministry of the Interior shall notify the competent authorities of the other European Union member-state, which have addressed the transit application, of the nearest possible date to effect the transit.(2) The authorities of the Ministry of the Interior may render transit assistance under Article 47d in case the grounds for refusal referred to in paragraph 1 become known after agreement to effect the transit has been given.(3) The authorities of the Ministry of the Interior shall notify forthwith the competent authorities of the other European Union member-state, which have addressed the transit application, of the refusal to carry out the transit and the motives thereof.Section IIAdministrative and Penal ProvisionsArticle 48(1) Penalised by imposition of a fine ranging from BGN 500 to 5,000 shall be any foreigner who:1. has re-entered this country after having been expelled from it;2. has engaged in business, commercial and other activities without appropriate authorisation;3. has stayed in this country after his authorised duration of stay has expired.(2) The penalty as per the preceding paragraph (1) shall be also imposed upon natural persons who have employed foreigners without appropriate authorisation, while legal persons shall be penalised by imposition of a property sanction in the amount of BGN 20,000.(3) In the event of repeated violations under paragraphs (1) and (2) above, a fine shall be imposed ranging from BGN 1,000 to 10,000, while legal persons shall be penalised by a property sanction of up to BGN 40,000Article 48a(New, SG No. 42/2001)(1) (Supplemented, SG No. 112/2001, amended, SG No. 11/2005) Penalised by imposition of a fine ranging from BGN 200 to 2,000 shall be any natural person who fails to fulfil his obligations under Article 24a.(2) Any legal person which makes the violation under paragraph (1) shall be imposed a property sanction ranging from BGN 500 to 5,000(3) Penalties under paragraph (1) shall be also imposed on any staff member of a sole proprietor or legal person who makes, or allows a violation under paragraphs (1) and (2).(4) In the event of repeated violations under paragraphs (1) through (3) above, a fine shall be imposed ranging from BGN 500 to 5,000, while legal persons shall be penalised by a property sanction ranging from BGN 1,000 to 10,000.Article 48b(New, SG No. 11/2005)(1) Natural persons failing to fulfil their obligations referred to in Article 28 shall be imposed a fine ranging from BGN 100 to 1,000.(2) Legal persons failing to fulfil their obligations referred to in Article 28 shall be imposed a property sanction ranging from BGN 500 to 5,000.(3) In the event of repeated violation under Paragraph (2) above, the legal person shall be imposed a property sanction ranging from BGN 1,000 to 10,000.Article 49(1) Penalised by a fine of up to BGN 3,000 shall be any foreigner who:1. makes use of an invalid foreign-travel document or other substitute papers;2. (supplemented, SG No. 42/2001) has lost, damaged or destroyed a Bulgarian identity document, or documents issued by the border passport and visa control authorities;3. in his capacity as a vessel's captain or crew member has failed to comply with the established border and passport regulations in ports and port cities/towns;4. (amended, SG No. 29/2007) fails to fulfil the obligations thereof referred to in Article 17 (2) and in Article 30 herein;5. has given or accepted a document of identity as security by pledge, or has given such a document into another's keeping or for temporary use.(2) In the event of repeated violations under paragraph (1) above, a fine shall be imposed ranging from BGN 1,000 to 6,000, while legal persons shall be penalised by a property sanction of up to BGN 20,000.Article 50(1) Penalised by a fine of up to BGN 500 shall be any foreigner who:1. has failed to fulfil his obligations under Article 44, paragraph (3) hereof;2. has committed a brazen violation of the established order within the border-control zone at a border-crossing check point;3. has failed to keep the time-limit for transiting this country.(2) In the event of repeated violations under paragraph (1) above, a fine shall be imposed ranging from BGN 200 to 1,000.Article 51(Amended, SG No. 37/2003, SG No. 29/2007) A carrier who fails to comply with his obligations referred to in Article 20 shall be sanctioned with a fine or a pecuniary sanction amounting from BGN 6 000 to BGN 10 000 for each carried person.Article 51a(New, SG No. 63/2007)In case of failure to submit or submission of partial and inaccurate information under article 20a (1), the carrier, either an individual or a legal person, shall be fined or respectively suffer a property sanction in the range of BGN 6,000 to BGN 10,000 per trip.Article 52(1) Where no other penalty has been provided for violations of this Act and of the Rules and Regulations for its implementation enacted pursuant thereto, the perpetrator shall be penalised by imposition of a fine in the amount of up to BGN 500.(2) In case of minor offences a fine shall be imposed in accordance with Article 39, paragraph (2) of the Administrative Violations and Sanctions Act. (1) (Amended, SG No. 112/2001) All violations of this Act, shall be ascertained by reports drawn up by the competent bodies of the Ministry of Interior, and in the cases under Article 24a or Article 33, paragraph (2) - by the competent bodies of the Ministry of Labour and Social Policy.(2) The Minister of Interior and the Minister of Labour and Social Policy, or other officials duly appointed by them, shall, on the basis of such reports, issue penal decrees.(3) The drawing up of the reports, the issuing and the execution of the penal decrees, and the appeals against them shall be effected in compliance with the provisions of the Administrative Violations and Sanctions Act.Article 53(1) (Supplemented, SG No. 112/2001) All violations of this Act, shall be ascertained by reports drawn up by the competent bodies of the Ministry of Interior, and in the cases under Article 24a or Article 33, paragraph (2) by the competent bodies of the Ministry of Labour and Social Policy.(2) The Minister of Interior and the Minister of Labour and Social Policy, or other officials duly appointed by them, shall, on the basis of such reports, issue penal decrees.(3) The drawing up of the reports, the issuing and the execution of the penal decrees, and the appeals against them shall be effected in compliance with the provisions of the Administrative Violations and Sanctions Act. Chapter VI(New, SG No. 37/2003)INFORMATION ACTIVITY OF SERVICES FOR ADMINISTRATIVE CONTROL OFFOREIGNERS IN THE REPUBLIC OF BULGARIAArticle 54(1) A Single Register of Foreigners shall be set up under the Ministry of Interior, containing data concerning foreigners on continued stay.(2) For the purposes of executing the functions established by law for the services for administrative control of foreigners under the Ministry of Interior, data concerning the following shall be processed:1. visa control of foreign citizens;2. border control for crossings by foreign citizens;3. citizens seeking or having obtained special protection on the territory of the Republic of Bulgaria;4. address registration of foreigners on short stay;5. any administrative penalties and measures of administrative coercion imposed on foreigners;6. acquisition, loss and restoration of Bulgarian citizenship.(3) (New, SG No. 103/2003, amended SG No. 82/2006) The foreigners administrative control services shall be obligated to submit promptly the entire information covered under Paragraph (2) to the Migration Directorate under the Police General Directorate.(4) (Renumbered from Paragraph 3, SG No. 103/2003) Services for administrative control of foreigners under the Ministry of Interior shall process the following data:1. names in the Cyrillic and Latin alphabets, date of birth, place of birth, gender, citizenship;2. single civil registry number and/or personal number of a foreigner;3. permanent address in the Republic of Bulgaria;4. present address in the Republic of Bulgaria;5. document for foreign travel (type, series, number, date, place of issue and validity term);6. purpose of stay in the Republic of Bulgaria;7. visa (type, number, date and place of issue and validity term and term of stay);8. grounds on which stay in the Republic of Bulgaria is permitted;9. applications for long-term stay permission (number, date, decision);10. decisions for granting special protection on the territory of the Republic of Bulgaria (date and number)11. term of stay in the Republic of Bulgaria;12. marital status;13. spouse;14. children aged up to 18 years;15. permanent address in the country of which the person is a citizen;16. decree of the President of the Republic of Bulgaria on change of citizenship;17. entries in and exits from the Republic of Bulgaria;18. host;19. tourist vouchers;20. profession and place of work;21. imposed measures of administrative coercion;22. ex officio data;23. (new, SG No. 29/2007) biometric data - photographs and 10 fingerprints.24. (renumbered from item 23, SG No. 29/2007) other data as specified in a law.(5) (New, SG No. 109/2007) The State Agency for National Security shall use the information from the register as per paragraph 1 for purposes of discharge of its statutory functions in accordance with a procedure determined by the Minister of Interior and the Agency Chairperson.Article 55(1) Data from the Single Register of Foreigners shall be provided to:1. Government authorities and organisations, on the basis of a law or an action of the judiciary power;2. Bulgarian citizens and foreigners, only if such data refers to them;3. Bulgarian and foreign legal persons, on the basis of a law or an action of the judiciary power;4. Authorities in other states, in accordance with international treaties to which the Republic of Bulgaria is party;5. The Single Service for Civil Registry and Administrative Services for the Population (ESGRAON).(2) Bulgarian citizens and foreigners shall have the right to obtain information kept in the data bases referring to third parties only on the basis of a law or an action of the judiciary power.(3) Refusal to provide data from the Single Register of Foreigners can be appealed under the procedure set out in the Administrative Procedure Code. Article 56(Amended and supplemented, SG No. 109/2007) The Ministry of Interior and the State Agency for National Security shall provide information to the Ministry of Foreign Affairs concerning any imposed restrictions on the entry in the Republic of Bulgaria of foreigners and shall receive from the Ministry of Foreign Affairs data concerning visas issued/refused to foreigners and data concerning Bulgarian citizens who have committed crimes and violations against the law of other states.Article 57(Supplemented, SG No. 109/2007) The Ministry of Interior shall exchange data with the Ministry of Labour and Social Policy and with the State Agency for National Security in connection with the issuance of work permits to foreigners and the issuance of free-lancing permits of foreigners.Article 58(Supplemented, SG No. 109/2007) The Ministry of Interior shall exchange information with the State Agency for National Security and the State Agency for Refugees in connection with the issuance of identity documents to foreigners seeking or having received protection, and for the purposes of proceedings for grating special protection under the Asylum and Refugees Act. Article 59(1) (Amended and supplemented, SG No. 109/2007) The Ministry of Interior and the State Agency for National Security shall exchange data with the authorities of the judiciary in connection with the performance of their functions regarding the imposition and lifting of coercive administrative measures.(2) (Amended and supplemented, SG No. 109/2007) The Ministry of Interior and the State Agency for National Security shall cooperate with the Ministry of justice concerning foreigners released from penitentiaries and concerning persons applying to acquire, restore or be relieved of Bulgarian citizenship.Article 60(1) (Previous text of Article 60, SG No. 109/2007) The Ministry of Interior shall cooperate and exchange data with ESGRAON and with the municipal administrations in connection with the issuance of Bulgarian identity documents and rendering administrative services to foreigners on permanent stay.(2) (New, SG No. 109/2007) The State Agency for National Security shall interact and exchange data with the Unified System for Civil Registration and the Provision of Administrative Services of the Population and with the municipal administrations in relation to the provision of administrative services to resident aliens.Article 61(Amendment, SG No. 103/2003)The Ministry of Foreign Affairs shall keep a register containing the data referred to in Article 54, paragraph (4), and data concerning foreigner filings for the issuance of visas and restrictions imposed under the procedure set out in Article 21a by the Minister of Foreign Affairs.ADDITIONAL PROVISIONS 1. For the purposes of this Act:1. A "family" shall be the spouses and their underage children provided they have not yet entered into a marriage.2. A "systematic violation" shall have been committed where a foreigner shall have committed more than two (2) violations inside of two (2) years.3. (Supplemented, SG No. 42/2001) A "valid foreign-travel document or another substitute document" shall be a document that has been issued in accordance with the terms and procedures established by the laws of the respective country wherein a visa can be affixed and which entitles the foreigner to return to the state from which he is entering, to the country of origin, or a third country, the photograph in it satisfactorily identifies the bearer, all data therein are free from corrections, cross-outs, deletions, additions, etc., there is no evidence of photograph replacement, all stamps and seals affixed thereto are clear, the photograph is a good likeness of the bearer and its validity has not expired.4. "Expulsion" shall be forcibly taking or leading a foreigner, within a short period of time, outside this country's borders because of committed crimes or in the absence of lawful grounds to stay in it.5. "Services exercising administrative control over foreigners" shall be the statutorily designated state bodies vested with powers under this Act.6. (New, SG No. 42/2001) "A person of Bulgarian origin" shall be a person at least one of whose ascendants is a Bulgarian.7. (New, SG No. 42/2001, amended, SG No. 29/2007) "Force majeure" shall be natural disasters, accidents, catastrophes, robberies and circumstances leading to providing emergency medical care as well as other events occurring in spite of the will of the foreigner which he/she could neither foresee nor prevent.7a. (New, SG No. 63/2005) "European Economic Areas" is an economic community comprising the Member States of the European Union, Iceland, Liechtenstein and Norway.8. (New, SG No. 42/2001) "A school" shall be an establishment of general education in the meaning of the legislation of the state where the pupil resides.9. (New, SG No. 42/2001, amended, SG No. 112/2001) "A free lance activity" shall mean any business activity performed in a personal capacity without any commitment to an employer, except for the activities under Article 24, paragraph (1), subparagraphs (2) and (11).10. (New, SG No. 37/2003) Factual extramarital co-habitation exists when the persons live in one household and cohabitate on the basis of spouse relationships.11. (New, SG No. 37/2003) A carrier refers to a natural or legal person who, according to their national law, has the right to perform transportation by road, by air or water using means of transportation designed for the performance of such activity. 2. Fees shall be charged for the issuance of visas, residence permits and other documents in accordance with this Act in such amounts as shall be prescribed in an enactment of the Council of Ministers.TRANSITIONAL AND CONCLUDING PROVISIONS 3. This Act shall repeal the hitherto Residence of Foreigners in the Republic of Bulgaria Act (promulgated State Gazette No. 93 of 1972; amended and supplemented SG Nos. 36 of 1979; 17 of 1987; 26 of 1988; 53 of 1989, 27 of 1994, 120 of 1997, 11 ? 4. In Article 9, paragraph (2) of the Foreign Investment Act (promulgated State Gazette No. 97 of 1997; amended SG Nos. 99 of 1997, 29 of 1998) the wording "or other officials duly authorised by him" shall be inserted right after the wording "the Minister of Interior". 5. The Council of Ministers shall enact Rules and Regulations for the implementation of this Act 6. The implementation and enforcement of this Act shall be assigned to and vested with the Minister of Foreign Affairs, the Minister of Interior and the Minister of Labour and Social Policy.This Act was adopted by the 38th National Assembly on 11 November and again on 15 December 1998 and the Official Seal of the National Assembly has been affixed thereto.LEV RE-DENOMINATION ACT Promulgated, SG No. 20/5.05.1999, supplemented, SG No. 65/20.07.1999(effective 5.07.1999)TRANSITIONAL AND FINAL PROVISIONS..................................................................... 4. (1) (Supplemented, SG No. 65/1999) Upon the entry of this Act into force, all figures expressed in old lev terms as indicated in the laws which will have entered into force prior to the 5th day of July 1999 shall be replaced by figures expressed in new lev terms, reduced by a factor of 1,000. The replacement of all figures expressed in old lev terms, reduced by a factor of 1,000, shall furthermore apply to all laws passed prior to the 5th day of July 1999 which have entered or will enter into force after the 5th day of July 1999.(2) The authorities, which have adopted or issued any acts of subordinate legislation which will have entered into force prior to the 5th day of July 1999 and which contain figures expressed in lev terms, shall amend the said acts to bring them in conformity with this Act so that the amendments apply as from the date of entry of this Act into force.................................................................... 7. This Act shall enter into force on the 5th day of July 1999.TRANSITIONAL AND FINAL PROVISIONSof the Administrative Procedure Code(SG, No. 30/2006, effective 12.07.2006). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139. Everywhere in the Foreigners in the Republic of Bulgaria Act (Promulgated, State Gazette No. 153/1998, amended, SG No. 70/1999, amended and supplemented, SG No. 42/2001, SG No. 112/2001, amended, SG No. 45/2002, SG No. 54/2002, amended and supplemented, SG No. 37/2003, SG No. 103/2003, amended, SG No. 37/2004, SG No. 70/2004, amended and supplemented, SG No. 11/2005, SG No. 63/2005, amended, SG No. 88/2005) the words "the Administrative Procedure Act" shall be replaced by "the Administrative Procedure Code".FINAL PROVISIONSto the Act of amendment and supplemendment the Social Insurance Code(SG No. 82/2006)........................................................................ 14. In the Foreigners in the Republic of Bulgaria Act (Promulgated, State Gazette No. 153/1998, amended, SG No. 70/1999, amended and supplemented, SG No. 42/2001, SG No. 112/2001, amended, SG No. 45/2002, SG No. 54/2002, amended and supplemented, SG No. 37/2003, SG No. 103/2003, amended, SG No. 37/2004, SG No. 70/2004, amended and supplemented, SG No. 11/2005, SG No. 63/2005, amended, SG No. 88/2005, SG No. 30/2006) shall be amended as follows:1. Everywhere the words "border passport control" shall be replaced by "border passport and visa control".SUPPLEMENTARY PROVISIONto the Amendment and Supplement Act to the Foreignersin the Republic of Bulgaria Act 40. This act introduces the requirement of Directive 2003/110/+C of the Council on assistance in cases of transit for the purposes of removal by air, Directive 2003/109/ EC of the Council concerning the status of third- country nationals who are long-term residents, Directive 2003/86/EC of the Council on the right to family reunification, Directive 2001/51/EC of the Council supplementing the provisions of Article 26 of the Convention implementing the Schengen Agreement of 14 June 1985, Directive 2001/40/EC of the Council on the mutual recognition of decisions on the expulsion of third country nationals.SUPPLEMENTARY PROVISIONto the Amendment and Supplement Act to the Foreignersin the Republic of Bulgaria Act(SG No. 63/2007) 4. This act shall transpose the provisions of Council Directive 2004/82/EC on the obligation of carriers to communicate passenger data and Council Directive 2005/71/EC on the specific procedure for admitting third- country nationals for the purposes of scientific research. For more information visit www.solicitorbulgaria.com id: 286 Wed, 30 Jul 2008 07:18:40 +0000 http://web.solicitorbulgaria.com/index.php/foreigners-in-the-republic-of-bulgaria-act http://web.solicitorbulgaria.com/index.php/foreigners-in-the-republic-of-bulgaria-act http://web.solicitorbulgaria.com/static2//userfiles/Image/_articles/256/FOREIGNERS_IN_THE_REPUBLIC_OF_BULGARIA_ACT.JPG EUR http://web.solicitorbulgaria.com/index.php/foreigners-in-the-republic-of-bulgaria-act legal 80 negotiable