The Agreement On The Promotion Of Investment, With Croatia

Original Language Title: Dohoda o podpoře investic s Chorvatskem

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now

Read the untranslated law here: https://portal.gov.cz/app/zakony/download?idBiblio=45408&nr=155~2F1997~20Sb.&ft=txt

155/1997.



The COMMUNICATION FROM the



Ministry of Foreign Affairs



Change: 113/2009 Coll.



Ministry of Foreign Affairs says that on 5 December. March 1996

Zagreb signed the agreement between the Czech Republic and Croatia

Republic on the promotion and reciprocal protection of investments.



Parliament gave its assent to the agreement the United States and the President of the

the Republic has ratified it.



Agreement entered into force on the basis of its article 13 on the day 15. may

1997.



The Czech version of the agreement shall be published at the same time. In the English text of the agreement,

for its interpretation of the applicable, can be consulted at the Ministry of

Foreign Affairs and the Ministry of finance.



The AGREEMENT



between the Czech Republic and the Republic of Croatia for the promotion and mutual

protection of investments



Czech Republic and the Republic of Croatia, hereinafter referred to as "the Contracting Parties",



Desiring to intensify economic cooperation to the mutual

the benefit of both States,



intending to create and maintain favourable conditions for investments by investors

one Contracting Party in the territory of the other Contracting Party,



Recognizing the need to promote and protect foreign investment with the aim of

stimulate economic prosperity of both Contracting Parties,



have agreed upon the following:



Article 1



The definition of the



For the purposes of this agreement:



1. The term "investor" means any natural or legal person,

that invests in the territory of the other Contracting Party.



and) the notion of "natural person" means any natural person who is a national

citizenship of either Contracting Party in accordance with its legal system.



b) "legal person" means, with regard to both parties

any company registered or established in accordance with its

jurisdiction and recognised its legal regulations for the legal entity that

has a permanent Office in the territory of one Contracting Party.



2. the term "investment" refers to each assets invested in

accordance with the economic activities of an investor of one Contracting Party to the

the territory of the other Contracting Party in accordance with the legislation of the other Contracting

Parties and shall, in particular, but not limited to:



a) movable and immovable property, any other property rights and rights in rem

rights such as mortgages, pledges, guarantees and similar rights;



(b)), stocks, bonds, unsecured bonds of companies or any

other forms of participation in companies;



(c) the claim or claims) cash on any transactions originating in

the economic value associated with an investment;



(d)) intellectual property rights, including copyright, of the

trade marks, patents, industrial designs, techniques,

know-how, trade secrets, trade names and goodwill associated with the

the investment;



(e)) the rights conferred by law or contract, licence or

the permit issued under the Act, including concessions for exploration, extraction,

the cultivation or use of natural resources, and the rights provided by the official

authorities to perform economic activities.



3. any amendment to the forms of investment, admitted in accordance with the laws

the legislation of the Contracting Party in whose territory the investment is made,

does not affect its character as an investment.



4. The term "returns" means the amounts yielded from investments and includes

in particular, but not exclusively, profits, interest, capital gains, shares,

dividends, royalties, fees, and other current revenues.



5. the term "territory" means:



-in relation to the Czech Republic territory, over which the Czech Republic

exercises its sovereignty, sovereign rights and jurisdiction in the

accordance with international law;



-in relation to the territory of the Republic of Croatia and the coastal zone, including the

the seabed and subsoil adjacent to the outer over its territorial sea,

which the Republic of Croatia carries out his sovereignty, sovereign

rights and jurisdiction in accordance with international law.



Article 2



Support and admission of investment



1. each Contracting Party shall promote in its territory investments

investors of the other Contracting Party and admit such investments will be in the

accordance with their national legislation.



2. If a Contracting Party shall accept an investment in its territory, it shall provide,

in connection with that investment, and in accordance with its legislation,

the necessary permits associated with such an investment, and with the implementation of

licensing agreements and contracts for technical, commercial and administrative assistance.



Article 3



National treatment and MFN clause



1. each Contracting Party shall in its territory for investments and returns

investors of the other Contracting Party treatment, which is the proper and fair

and no less favourable than that accorded to investments or the proceeds of their

its own investors or investments of investors of any revenue and

of a third State, if it is more convenient.



2. each Contracting Party shall accord to investors of the other party within its territory

the parties, regarding the management, maintenance, use, recovery or disposal

with their investments, treatment which is the proper and equitable and not less

favorable, than to its own investors or to investors

any non-Member State, if it is more convenient.



3. the provisions on national treatment and MFN clause referred to in

This article shall not apply to benefits, which provides Contracting

Party on the basis of its obligations as a member of the customs, economic or

Monetary Union, a common market or free trade zone.



4. the Contracting Party agrees that the obligations of the other party

as a member of the customs, economic or monetary Union, a common market or

free trade zone includes the obligations deriving from international treaties

or of bilateral agreements based on reciprocity of this

the customs, economic or monetary Union, a common market or free zone

trade.



5. The provisions of this Agreement shall not be construed to undertake one of the Contracting

hand to provide investors of the other Contracting Parties or their

investments or the proceeds of such an advantage, preference or privilege, that

a Contracting Party may provide, on the basis of an international agreement on

is wholly or mainly to taxation.



Article 4



The expropriation



1. No Contracting Party agree not to directly or indirectly measures leading to the

expropriation, nationalization or any other measures having the same

nature or similar effect against investments belonging to investors with a second

the Contracting Parties shall, except when such measures are taken in the

the public interest, on a non-discriminatory basis and in accordance with the law, for the

provided that the measures will be accompanied by immediate, effective and

a reasonable substitute. Such compensation will be equal to the market value

the expropriated investment immediately before the expropriation or before the

the intended expropriation became publicly known, will include interest from the date of

the expropriation until the date of payment, and will be freely transferable.



2. the amount of the refund will be determined in the convertible and freely transferable

currency and shall be paid without delay to the holder. The transfer will be considered

having been made without delay if it is made in such time that

It is normally required for the completion of formalities relating to the transfer. Referred to

the period starts to run as from the date when the application is submitted, and must not

more than three months.



3. The investor has the right to request an urgent review of its

the case of judicial or other independent authority of the Contracting Party on whose

the territory has been the investment, and the value of its investments in accordance

with the principles contained in this article.



4. The provisions of paragraph 1 of this article shall also apply to cases where the

a Contracting Party expropriates the assets of a company that is established by or

registered in accordance with the laws of the applicable on any part of the

its territory, and in which investors of the other Contracting Party own shares.



Article 5



Compensation for damage



1. If the investments of investors of one or the other party will suffer

on the territory of the other Contracting Parties damage due to war or other

armed conflict, a State of emergency, riots, insurrection or

rebellion, providing them with the Contracting Party, as regards compensation,

compensation, compensation or other settlement, a treatment no less favourable than that

than what will provide the contracting party to its own investors or

investors of any third State. The resulting payments, whenever

possible, be transferable without delay in freely convertible and

convertible currency.



2. Notwithstanding paragraph 1 of this article will be to investors of a Contracting

the parties, who, during the events referred to in the preceding paragraph

suffered damage in the territory of the other Contracting Party of



) and seize their assets, by the armed forces or by an

the other Contracting Party,



(b)) the destruction of their property by the armed forces or by the official authorities of the other

the Contracting Parties, which was not due to combat action or not

invoked when the necessity of the situation,

given fair and reasonable compensation for any damage suffered during the

grabbing or as a result of destruction of property. The resulting payments shall be without

late payment freely transferable in freely convertible currency.



Article 6



Conversions



1. each Contracting Party in whose territory they were made to investors

the other Contracting Party shall guarantee that these investments, investors, free transfer

payments related to the investments, and in particular:



and) capital and additional amounts necessary to maintain or increase


the investment;



(b) the revenue, profits), interest, dividends and other current income;



(c)) the amounts on loans negotiated and documented properly and directly

associated with a particular investment;



d) license or other fees;



(e)) of the proceeds of the total or partial liquidation of the investment;



f) refunds referred to in article 4;



g) incomes of nationals of one Contracting Party, which are allowed to

work in conjunction with an investment in the territory of the other Contracting Parties, in

accordance with its legislation.



2. transfers shall be made without any restriction and undue

the delay in a freely convertible currency at the prevailing conversion rate

as to the date of the transfer, unless otherwise agreed.



3. The provisions of paragraphs 1 and 2 of this article shall apply without

without prejudice to the measures adopted by the European Community.



Article 7



Assignment of rights



1. If a Contracting Party or its designated agency makes a

payment of his own to the investor according to the guarantees given in the

relation to an investment in the territory of the other Contracting Party, the other Contracting

page:



and each right or assignment) of the claim of the investor or the Contracting Party

It empowered the Agency, whether a transfer has occurred in law or on the basis of

the legal arrangements in this country, as well as



(b)) that the original Contracting Party or its designated agency is in respect of

assignment of rights shall be entitled to exercise the rights and entitlements of this float

Investor and assume the obligations related to the investment.



2. The assignee's rights or claims shall not exceed the original rights or claims

the investor.



Article 8



Settlement of investment disputes between a Contracting Party and an investor of the other Contracting

the parties



1. disputes between a Contracting Party and an investor of the other party shall be

notified in writing to the investor, including detailed information, host

Contracting Party. Any dispute between a Contracting Party and an investor of the other

the parties will be resolved amicably through consultations and negotiations

through the diplomatic channel.



2. If the dispute cannot thus be settled within six months

from the date of the written notice referred to in paragraph 1, the dispute shall be submitted to the

on the basis of the choice of investors either:



-set up an ad hoc Tribunal pursuant to the arbitration rules, the Commission

The United Nations for international commercial law; or



-The International Centre for settlement of investment disputes (ICSID) set up

"The Convention on the settlement of investment disputes between States and nationals of other States".



3. the award will be based on the



-the provisions of this agreement;



-the legislation of the Contracting Party in whose territory the investment is made,

including the conflict of laws rules;



-standards and generally accepted principles of international law.



4. the decision of the arbitral tribunal is final and binding for both parties in

the dispute.



Article 9



The resolution of disputes between the Contracting Parties



1. disputes between the Contracting Parties concerning the interpretation or application of this

the agreement shall be resolved through consultations or negotiations through diplomatic channels.



2. If the contracting parties do not reach an agreement within six months following the

the initiation of a dispute between them, will be at the request of one of the parties to the dispute

submitted to an arbitral tribunal which shall be established in the following way:

Each Contracting Party shall designate one arbitrator and the two arbitrators shall appoint and these

the President, who will be a citizen of a third State which maintains diplomatic

contacts with both parties.



3. If one of the parties has failed to appoint its own arbitrator and

did not do so or at the request of the other party, within two months,

shall appoint an arbitrator the President of the International Court of Justice at the request of the

the Contracting Parties.



4. If the two arbitrators cannot agree on the choice of the Chairman within two

months after their appointment, shall be appointed by the President of the President of the international

the Court of Justice at the request of one of the Contracting Parties.



5. If, in the cases referred to in paragraphs 3 and 4 of this article

the President of the International Court of justice cannot perform this function or

If a citizen of one of the parties, the appointment of execute

Vice Chairman, nor the Vice-Chairman and cannot do this

the appointment or if it is a citizen of either Contracting Party, the designation of

It will be done for work the oldest judge in the International Court of

the Court who is not a citizen of any of the Contracting Parties.



6. the Arbitration Tribunal shall determine its own rules rules taking into account the

the objections made by the Contracting Parties. The arbitral tribunal shall adopt its

the decision of the majority of votes.



7. the decision of the arbitral tribunal is final and binding on both Contracting

party.



8. each Contracting Party shall bear the costs of its own Member of the arbitration

the Court and its participation in the arbitration proceedings. The costs of the Chairman and other

expenses shall be reimbursed by the parties equally. The arbitral tribunal may, however,

decide that the larger proportion of the costs shall be reimbursed by one of the Contracting Parties and

This decision shall be binding on both Contracting Parties.



Article 10



Essential security interests



This agreement shall not prevent a Contracting Party from taking measures

necessary to maintain public order, the performance of its duties in the

connection with the maintenance or restoration of international peace or

security, or for the protection of their essential security

interests, which may include (i) interests deriving from the membership of the Contracting

the parties in the customs, economic or monetary Union, in the common market or in a

free trade zone. "



Article 11



More favourable provisions



If the legal order of the Contracting Parties or the current obligations under

the international rights or obligations based later between the Contracting

In addition to the parties to this agreement include the adjustment of the General or specific,

which justifies the investments of investors of the other Contracting Party to a treatment,

which is more favourable than that which is provided to you pursuant to this agreement,

such more favourable adjustment will have precedence over the provisions of this

the agreement.



Article 12



Consultations and exchange of information



At the request of a Contracting Party will be the second party agree with the

immediate consultations on the interpretation or implementation of this agreement. At the request of

the Contracting Parties will be exchanged information about legislation,

the usual administrative procedures, decisions or practice, or

the politics of the other party, which may have an impact on investment,

which are covered by the agreement.



Article 13



The applicability of this agreement



The provisions of this Agreement shall be applicable to future investments made

investors of one Contracting Party in the territory of the other Contracting Party and also on the

existing investments in accordance with its laws and regulations applicable to the

date of entry into force of this agreement.



Article 14



Entry into force



This agreement shall enter into force at a later date, to which one of the

the Contracting Parties shall notify the other Contracting Party that it has satisfied

its national legal requirements necessary for this agreement in

force.



Article 15



Term and termination



1. This agreement shall remain in force for a period of ten years and its validity

It will continue until one year before the expiry of the initial period or

any following period one contracting party notifies the

the other Contracting Party of its intention to terminate the agreement.



2. for investments made prior to the date when the notice of termination

This agreement becomes effective, the provisions of this Agreement shall be

continue in effect for a period of ten years from the date of termination of this

the agreement.



In witness whereof, the duly authorised thereto, have signed this agreement. Given in the

Zagreb on 5 July 2004. in March 1996, in duplicate in the Czech,

the Croatian and English languages, each of these texts being equally authentic.

In the event of a conflict in the interpretation of the English version is decisive.



For the Czech Republic:



Václav Klaus in r.



the Prime Minister



For the Republic of Croatia:



Zlatko Mateša in r.



the Prime Minister