RESTRICTED
WORLD TRADE WT/ACC/LTU/5
27November 1995
ORGANIZATION(95-3771)
Original: English
ACCESSION OFLITHUANIA
Memorandum ontheServices Régime
TheMinistry ofForeign Affairs oftheRepublic ofLithuania hassubmitted thefollowing
Memorandum ontheServices Régime. TheMemorandum isreproduced hereunder.
_______________
TABLE OFCONTENTS
I. GENERAL
1. Market structure
2. Regulatory structure ofthemost prominent services sectors
2.1. Financial services
2.2. Communication services
2.3. Professional services
2.4. Construction andrelated engineering services
2.5. Tourism andtravel related services
2.6. Transport services
II. POLICIES AFFECTING TRADE INSERVICES
1. Laws andregulations related totrade inservices
2. Sectoral service activities conducting bodies
3. Thereview ofadministrative decisions affecting trade inservices
4. Provisions, including those ininternational agreements, concerning qualification requirements
andprocedures, technical standards andlicensing and/or registration requirements forthesupply
ofservices
4.1. Qualification requirements andprocedures, technical standards
4.1.1. Financial services
4.1.1.1. Insurance andrelated services
4.1.1.2. Banking
4.1.1.3. Securities market
4.1.2. Communication services
4.1.3. Professional services
4.1.3.1. Legal services
4.1.3.2. Medical servicesWT/ACC/LTU/5
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4.1.3.3. Veterinary services
4.1.3.4. Architectural, engineering andrelated services
4.1.4. Other business services
4.1.4.1. Market research andpublic opinion polling services
4.1.4.2. Technical testing andanalysis services
4.1.4.3. Management consulting andrelated services
4.1.4.4. Services incidental toagriculture andhunting
4.1.4.5. Services incidental tomanufacturing
4.1.4.6. Services incidental toenergy distribution
4.1.4.7. Printing andpublishing services
4.1.5. Construction andrelated services
4.1.6. Educational services
4.1.7. Tourism andtravel related services
4.1.8. Transport services
4.2. Licensing andregistration requirements
5. Monopolies orexclusive service suppliers
6. Safeguard measures related totrade inservices
7. International transfers andpayments forcurrent transactions ofservices
8. Capital transactions
9. Procurement bygovernmental agencies ofservices
10. Aid,grant, domestic subsidy, taxincentive, promotion schemes
III. MARKET ACCESS AND NATIONAL TREATMENT
IV. MOST-FAVOURED-NATION TREATMENT
_______________
I. GENERAL
1. Market structure
In1994services activity represented 2,892.43 mlnUSDor68.7percentoftheGross Domestic
Product (GDP) oftheRepublic ofLithuania. 12,115 enterprises in1994wereengaged inthesupplying
ofservices; from thisnumber -2,726 entities were State enterprises, 6,307 -personal (private)
enterprises, other -stock companies, agriculture partnerships, etc.
According activity typesuchservices were rendered in1994:
-industrial services -46.8percentfrom thetotalservices rendered;
-transportation andstoring -19.2percent;
-trade -1.0percent;
-hotel, restaurant -1.7percent.WT/ACC/LTU/5
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Theservices rendering inLithuania isaccounted forsuchkindofservices: supplying of
electricity, gas,water; maintenance andrepair ofautomobiles; repair ofhousehold appliances; hotels;
transport; communication; commercial activity; education; entertainment, cultural andsporting services;
public utilities forinhabitants. Services turnover andother statistical dataaccording services classified
under theWTO Services sectoral classification listarenotaccounted.
Value ofservices imports andexports, broken down bysectors for1994 issubmitted inthe
table.
Dataontradeinservices based onthegeographical sectors arenotavailable inthemeanwhile.
2. Regulatory structure ofthemost prominent services sectors
Lithuania isstillintheprocess ofdrafting lawsandregulations togovern trade ofservices.
Theinternal market ofsupplying ofservices mustberegulated bytheGovernment Resolution No.511
"OnApproving Regulations ofRendering Services" (12April 1995), which regulates relations between
consumersofservicesandproducersofservicesregisteredontheprovidedordertherein.Theregulations
donotregulate services rendered inthefieldofhealth care, supply ofelectricity, thermal power and
gas,waste water removal andtransportation.
ThisResolution obligates Ministries, Departments, Governmental institutions andother State
establishments oftheRepublic ofLithuania toimprove theexisting ortoprepare andconfirm new
regulations ofservices rendering, andthework onsuchissues isstillgoing now.
(USD mln)
Sectors ofservices Exports Imports Balance
Value %of
total
services
exportsValue %of
total
services
imports
Computer andrelated services 0.01 0.00 0.35 0.09 -0.34
Designing services --- --- 0.39 0.10 -0.39
Payments forusing therights of
property0.01 0.00 0.24 0.06 -0.23
Communication services 9.62 3.00 7.60 2.03 +2.02
Construction andrelated engineering
services31.12 9.71 1.72 0.46 +29.40
Financial services 1.30 0.41 0.23 0.06 +1.07
Tourism andtravel related services 68.23 21.29 49.98 13.35 +18.25
Transport services 206.68 64.49 195.84 52.31 +10.84
Other commercial services 2.53 0.79 5.45 1.46 -2.92
Governmental services --- --- 110.12 29.42 -110.12
Other services 0.98 0.31 2.44 0.66 -1.46
Total services 320.48 100.00 374.36 100.00 -53.88
Source: Bank ofLithuania.WT/ACC/LTU/5
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2.1. Financial services
TheMinistry ofFinance isresponsible forgeneral policy forinsurance andrelated services.
TheBankofLithuaniaisresponsibleforbankingandotherfinancialservices(excludinginsurance
andsecurities market). There istwo-tiered banking system inLithuania: theBank ofLithuania is
functioning asthecentral bankandsupervises theactivity ofcommercial banks.
Banks havetherightto:
- accept deposits andother repayable funds totheclients accounts opened inthebank
andtomanage these accounts;
- extend andtakeloans;
- issue financial pledges, guarantees andother security obligations;
- issuepayment documents (cheques, bills, etc.)andcarry outtransaction withthem;
- carry outtransactions withsecurities (shares, bonds, etc.);
- carry outoperations inforeign currencies;
- buyandsellprecious metals;
- issue andmanage credit instruments;
- receive from clients valuable forsafe-keeping andrentsafedeposit boxes ofthe
bankvaults tocustomer forsafe-keeping ofvaluables anddocuments;
- render services andconsultations onissues ofbanking activities, finances, andclients
investment management;
- carry outother operations.
Financial leasing isnotincluded inbankoperations list.Bank mayestablish subsidiary which
performs suchoperation.
Securities areregistered attheCentral Securities Depositorium andtraded attheNational Stock-
Exchange. Financial brokerage companies andinvestment companies dealonlywithsecurities (buying-
selling, portfolio forming andmanagement) andtheirroleisbeing increased. Theregulatory authority
ofsecuritiesmarketisLithuanianSecuritiesCommission,createdattheendofJune1992,andresponsible
forgeneral policy inthesecurities market. TheCommission consists of7members, appointed bythe
Government forafiveyearterm.
TheNational Stock-Exchange wasfounded inSeptember 1993. Themainpurpose oftheStock-
Exchange istocreate equal conditions forallmembers andtotrytoattain thestability andliquidation
ofthesecurities. Spheres ofactivities arethefollowing: brokerage, accumulation andtreatment of
information, organization, publishing, consultation, settlement, preparation ofthespecialists ofthe
securitiesmarket.Stock-Exchangeisanon-profitstockcompany.Forty-fivepercentofthesharebelongs
totheState (theMinistry ofFinance), remain partbelongs tonatural andlegalpersons.
CentralSecuritiesDepositoriumwasestablishedforthepurposestocreateamodernandeffective
model ofthesecurities market, andthemainitsdirections arethefollowing: accounting andcirculation
ofthesecurities; creating theaccounting systems ofthemanaging oftheaccounts ofsecurities; service
andtheattendance oftheaccounts.
National Association oftheFinancial Brokers wasfounded inJanuary 1994 and30financial
brokers arethemembers ofit.Thepurpose oftheassociation istogetallbrokers together totheone
organization andrepresent theinterests ofthemarket members intheGovernmental bodies.WT/ACC/LTU/5
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TheLithuanian Parliament (Seimas) passed theLawonCredit Unions (21February 1995),
butcurrently credit unions donotact.
2.2. Communication services
TheMinistry ofCommunication andInformatics isresponsible forgeneral policy inthesector
oftelecommunications (excluding audiovisual services, which areregulated bytheMinistry ofCulture).
Regulatorandoperatorsareseparated."LietuvosTelekomas","LietuvosPastas"(LithuanianPostOffice),
Lithuanian StateRadio andTelevision Centre areresponsible forproviding appropriate services. These
enterprises areState-owned andarenotincluded intheprocess ofprivatization.
Other services asmobile phone, datatransmission, cable television areliberalized (open to
outside service providers) andservices activity islicensed bytheMinistry ofCommunication and
Informatics.
Activities ofaudiovisual services (excluding radio andtelevision services) areinthesphere
ofthecompetenceoftheMinistryofCulture.SpecialStateenterprise"Lietuvoskinostudija"(Lithuanian
Studio ofCinema) isengaged inproduction offilms andvideo films, providing filmmaking services,
co-production anddistribution. From theyear1990 the15private studios ofcinema arefunctioning
now. Special enterprise "Lietuvos Kinas" (Lithuanian Cinema) isengaged inproduction, edition and
distribution ofvideo films. Private distribution firm"CineMark" andsome cinema theatres areengaged
infilms distribution inLithuania.
Lithuanian State Radio andTelevision Centre isresponsible onlyforservices ofState radio
andtelevision. Private radio andtelevision studios must beregistered intheMinistry ofJustice.
Concerning radio andtelevision transmission services, theMinistry ofCommunication and
Informatics isresponsible fortechnical issues.
2.3. Professional services
Anumber ofMinistries responsible forgeneral policy ofthedifferent sectors oftheprofessional
services arefollowing:
- theMinistry ofJustice;
- theMinistry ofFinance;
- theMinistry ofConstruction andUrban Development;
- theMinistry ofHealth (professional physicians associations (such asLithuanian
Physicians Association, Physicians trade unions) areinfluential inthepolicy
elaboration also);
- State Veterinary Service.
Formoredetail ontheirspheres ofcompetence seetheChapter II.2."Sectoral service activities
conducting bodies".
2.4. Construction andrelated engineering services
TheMinistry ofConstruction andUrban Development isresponsible forgeneral policy of
construction andservices related toengineering sector.WT/ACC/LTU/5
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2.5. Tourism andtravel related services
TheLithuanian Tourism Department totheMinistry ofPublic Administration Reforms and
Local Authorities hasauthority toconduct service activities inthesector oftourism. There aresome
non-governmental associations, such astheLithuanian Tourism Association, Lithuanian Hotel
Association, Lithuanian Guide Guild, which represent business operators inthesector.
2.6. Transport services
TheMinistry ofTransport isresponsible forgeneral policy ofthetransportation ofgoods and
passengers. Themain sectors oftransportation areconducted bytheRailway, Civil Aviation, Road
Transport andWater Transport Departments within theMinistry. Thefollowing Stateinspections are
established tosupervise eachbranch oftransport: roadtransport, civilaviation, railroad transport, State
control andsafenavigation ofwater transport.
II. POLICIES AFFECTING TRADE INSERVICES
1. Laws andregulations related tothetrade inservices
Laws:
- LawonPress andOther Mass Media, 9February 1990;
- LawonEnterprises, 8May1990;
- LawonAmendments andSupplements oftheLawonEnterprises, 5July1995;
- LawonInsurance, 20September 1990;
- LawonPharmaceutical Activity, 31January 1991;
- LawonScience andStudies, 12February 1991;
- LawonCommunication, 30May1991;
- LawonEducation, 25June1991;
- LawonFundamentals forTransportation Activities, 8October 1991;
- LawonEmployment Contract, 11November 1991;
- LawonVeterinary, 17December 1991;
- LawonEnvironmental Protection, 21January 1992;
- LawonFundamentals forBookkeeping Accounts, 18June1992;
- LawonCompetition, 15September 1992;
- LawonNotary, 15September 1992;
- LawonAttorney, 16September 1992;
- Company Law, 5July1994;
- LawonLocal Governments, 7July1994;
- LawonHealth System, 19July1994;
- LawonProtection ofConsumer Rights, 10November 1994;
- LawonCommercial Banks, 21December 1994;
- LawonTrade, 12January 1995;
- LawonEnergetics, 28March 1995;
- LawonAlcohol Control, 18April 1995;
- LawonForeign Capital Investments intheRepublic ofLithuania, 13June1995;
- LawontheFundamentals ofFreeEconomic Zones, 28June1995;
- LawonEntrails oftheEarth, 5July1995.WT/ACC/LTU/5
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Regulations:
- Government Resolution No.575 "OnApproving ofCommunication Statute oftheRepublic
ofLithuania", 19December 1991;
- Government Resolution No.722 "OnProcedure ofExposing, Edition andDistribution of
Cinematographic Films, Video Films, Video Programs, Erotic Programs, Propagation ofErotic
andViolence Printing", 2October 1992 (foraudiovisual services);
- Government Resolution No.610"OnApproving theStatute oftheCaptains oftheShips",
(8October 1992);
- Government Resolution No.803 "OnApproving theStatute oftheRailway ofLithuania",
26October 1992;
- Government Resolution No.815 "OnApproving theRegulations fortheEmission andPublic
Turnover ofSecurities andApproving Temporary Regulations oftheStock-Exchange",
30October 1992;
- Regulations ontheGranting Licenses ontheWater andRoad Transportation approved bythe
Government Resolution No.844, 9November 1992;
- Government Resolution No.915 "OnApproving Regulations ontheRegistration ofShips",
30November 1992;
- Government Resolution No.160 "OnApproving Regulations ontheProtection ofPersons and
Property", 12March 1993, (fortheinvestigation andsecurity services);
- Government Resolution No.1276 "OnRegulations ofHunting intheRepublic ofLithuania",
19December 1994;
- Government Resolution No.237, "OnApproving onTemporary Procedure ofTemporary
Employment ofForeigners intheRepublic ofLithuania", 13February 1995;
- Government Resolution No.510 "OnApproving Provisional Regulations ofGovernment
Procurement", 12April 1995;
- Government Resolution No.511 "On Approving Regulations ofRendering Services",
12April 1995.
2. Sectoral service activities conducting bodies*
Ministry ofFinance
- Accounting, auditing andbookkeeping services;
- Taxation services;
- Allinsurance andinsurance-related services;
- Evaluation ofrealestate services.
Lithuanian Securities Commission
(under thesupervision oftheMinistry ofFinance)
- Services inthesecurities market (excluding securities issued bytheGovernment).
TheBank ofLithuania (central bank)
- Banking andother financial services (excluding insurance andsecurities);
- Services related tosecurities issued bytheGovernment.
Ministry ofCommunication andInformatics
- Computer andrelated services;
- Postal services;WT/ACC/LTU/5
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- Courier services;
- Telecommunication services.
Ministry ofTransport
- Rental/leasing services without operators relating toships, aircraft, andother
transport equipment;
- Transport services (excluding pipeline transport).
Ministry ofConstruction andUrban Development
- Architectural services;
- Engineering services;
- Integrated engineering services;
- Urban planing andlandscape architectural services;
- Services incidental tomining;
- Construction andrelated engineering services;
- Sewage services;
- Refuse disposal services;
- Sanitation andsimilar services;
- Realestate services (excluding evaluation ofrealestate);
- Photographic services;
- Packaging services;
- Building-cleaning services.
Ministry ofIndustry andTrade
- Market research services;
- Technical testing andanalysis services;
- Services incidental tomanufacturing;
- Related scientific andtechnical consulting services;
- Maintenance andrepair ofequipment (excluding maritime vessels, aircraft orother
transport equipment);
- Distribution services;
- Rental/leasing services without operators relating tomachinery andequipment
(excluding ships, aircraft andother transport equipment).
Ministry ofJustice
- Legal services.
Ministry ofHealth Care**
- Medical anddental services;
- Servicesprovidedbymidwives,nurses,physiotherapistsandpara-medicalpersonnel;
- Hospital services;
- Other human health services.
**Professional physicians associations suchasLithuanian Physicians Association, Physicians Trade
Unions areinfluential inthehealth policy elaboration also.WT/ACC/LTU/5
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State Veterinary Service
(under thesupervision oftheLithuanian Government)
- Veterinary services.
Department ofTourism
(under thesupervision oftheMinistry ofPublic Adm. Reforms andLocal Governm. Affairs)
- Tourism andtravel related services.
Lithuanian Science Council
(under thesupervision oftheLithuanian Parliament (Seimas))
- Educational services;
- Research anddevelopment services.
Ministry ofEducation andScience
- Research anddevelopment services;
- Management consulting andrelated services;
- Educational services.
Ministry ofCulture
- Advertising services;
- Printing andpublishing services;
- Audiovisual services (excluding radio andtelevision services, radio andtelevision
transmission services);**
- Recreational andcultural services.
**Special Stateenterprises "Lietuvos kinostudija" (Lithuanian Studio ofCinema) and"Lietuvos kinas"
(Lithuanian Cinema), established bytheMinistry ofCulture, private firm"CineMark" andsomecinema
theatres areengaged intheaudiovisual services.
Lithuanian Radio andTelevision Board
"Lietuvos Radijas irTelevizija" (Lithuanian Radio andtelevision)
(under thesupervision oftheLithuanian Parliament (Seimas))
- Radio andtelevision services;
- Radio andtelevision transmission services.
Department ofPhysical Culture andSport
(under thesupervision oftheLithuanian Government)
- Sporting andother recreational services.
Ministry ofSocial Security andLabour
- Placement andsupply services ofpersonnel;
- Social services.WT/ACC/LTU/5
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Technical Supervision Service
(under thesupervision oftheMinistry ofSocial Security andLabour)
- Maintenance andrepair ofequipment.
Ministry ofInterior
- Investigation andsecurity;
- Services incidental tohunting.
Ministry ofAgriculture
- Services incidental toagriculture;
- Services incidental tofishing (other thanfishresources).
Ministry ofEnvironmental Protection
- Services incidental tofishing (fishresources);
- Services incidental tohunting;
- Services incidental tomining (prospecting andexploitation ofnatural resources).
Ministry ofForestry
- Services incidental tohunting andforestry.
Ministry ofEnergy
- Services incidental toenergy distribution;
- Pipeline transport.
Ministry ofPublic Administration Reforms andLocal Governments Affairs
- Public opinion polling services.
*Note-areas ofcompetence relating totheservices arenotstillclearly assigned among theinstitutions
ofLithuania.
3. Thereview ofadministrative decisions affecting trade inservices
There isnocurrently Code ontheAdministrative Decisions inLithuania. Therefore judicial,
arbitral oradministrative tribunals orprocedures providing forthereview of,orremedies inrelation
to,administrativedecisionsaffectingtradeinservicesareasprovidedintheCivilCodeandothersectoral
andeconomic lawsandregulations oftheRepublic ofLithuania. Forinstance, inregard tothebanking
sector:
According totheArticle 37oftheLawonCommercial Banks (21December 1994), theBank
ofLithuania hastherighttoimpose sanctions onthecommercial banks seeking toassure interests of
depositors, safety, trustworthiness andstability ofthebanks andbanking system inLithuania. The
validity oftheresolution toimpose sanction maybeappealed inaCourt ofJustice within onemonth
afterthedatetheresolution hasbeenpassed. Anappeal shallnotstoptheapplication ofresolution
toimpose sanction. TheCourt ofJustice shallthoroughly tryanappeal.WT/ACC/LTU/5
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Iftheconsumers rights areinfringed andservices provider refused tosatisfy consumers claim,
consumer mayapply totheState Competition andConsumers Rights Protection Service ortolocal
governments. Iftheconsumers arenotagreed withdecision ofthatinstitutions, theycanappeal tothe
court.
Thespecial LawonCommercial Arbitration andLawonInternational Arbitration aredrafting
currently.
4. Provisions, including those ininternational agreements, concerning qualification
requirements andprocedures, technical standards andlicensing and/or registration
requirements forthesupply ofservices
4.1. Qualification requirements andprocedures, technical standards
Qualification requirements, technical standards andprocedures forthesuppliers ofservices
areprovided bythesectoral laws, bilateral ormultilateral agreements and/or regulations issued by
theMinistries andDepartments, Governmental andother Stategoverning institutions oftheRepublic
ofLithuania thatcarry outtheGovernment Resolution No.511 (12April 1995) "OnApproving
Regulations ofRendering Services".
4.1.1. Financial services
4.1.1.1. Insurance andrelated services
There arenorestrictions onestablishing aforeign insurance company.
Anycompany thatwants tooperate inLithuania mayoperate under thesame conditions as
national companies, aslongasitcomplies withtherequirements oftheLawonInsurance (20September,
1990). Thelicensing fortheinsurance activity shallbegiven bytheInsurance Affairs Council. Licensing
forinsurance activity given forforeigners entering intoforceaftertheapproving itoftheGovernment.
Theallkinds obligatory insurance andinsurance onadditional pensions istheexceptional right
oftheState insurance company.
State insurance company mayconclude agreements withtheforeign insurance companies,
establish withthemjointorganizations, haverepresentatives inabroad orcharge tomanage itinsurance
affairs toforeign insurance companies.
4.1.1.2. Banking
Onlybanks havetherighttoaccept deposits andopencurrent accounts, extend andtakeloans,
carry outtransactions withthepayment documents andcarry outtransactions inforeign currencies
(Law onCommercial Banks (21December 1994)).
There arenorestrictions ontheparticipation offoreign capital innational commercial banks.
However, foreign aswellasdomestic investors whointend toacquire 10percentormore ofbank's
stock capital must firstobtain thepermission oftheBank ofLithuania.
Theprocedure forfounding aforeign commercial bankwithforeign capital andtheprocedure
fortheiroperation isestablished bytheLawonCommercial Banks.WT/ACC/LTU/5
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Aforeign bankinLithuania mayestablish asubsidiary, acquire shares inafunctioning bank,
establish bankagencies.
TheBankofLithuania reviews allapplications forlicences toopencommercial banks, whether
submitted byLithuanians orforeigners. Alicence willbeissued bytheBoard oftheBank ofLithuania
iftheapplicant isabletoprove thatit:
- hasaccumulated theminimum amount offixed capital (atthemoment itis10mln
litas);
- retains managers withthenecessary qualifications, experience andreputation torun
abank;
- provides details onitsbusiness plan;
- provides information concerning thebank'sboard andcouncil; andother details
specified intheLaw.
TheBank ofLithuania issues itsdecision within twomonths ofthedateofreceipt ofthe
applicationunlessitmustrequestadditionalrequirementsonforeignerswishingtoestablishacommercial
bank.
TheBank ofLithuania shallestablish prudential andreserved requirements forcommercial
banks andcredit institutions onthebasisoftheirdeposits orotherborrowed funds (liabilities) toprovide
safety andstability ofthebanking system inLithuania.
TheBank ofLithuania establishes thefollowing standards, restricting theriskofbanking
activities:
- capital adequacy ratios;
- liquidity ratios;
- maximum open position inforeign currencies andprecious metals;
- maximum lending tooneborrower.
4.1.1.3. Securities market
Thelegalbaseofthesecurities market isprovided bytheGovernment Resolution No.815 "On
theEmission ofSecurities andPublic Turnover andtheConfirmation oftheTemporary Regulations
oftheStock-Exchange".
TheStock-Exchange canbeestablished onlyasanon-profit enterprise. Thestatutes ofStock-
Exchange andtrade rules shallbeconfirmed bytheLithuanian Securities Commission. Trade rules
ofStock-Exchange havetoregulate themembership, cotiration, clearing, settlement, procedures of
arbitration, theinsertion ofthesecurities tothetrade list.
OnlyEnterprises ofFinancial Broker orDivisions ofFinance Brokering ofbanks, having license
given bytheLithuanian Securities Commission, canactinpublic circulation ofsecurities. Brokers,
representing thatenterprises ordivisions, mustbecertified bytheLithuanian Securities Commission
fortheirqualification.
TheEnterprise ofFinancial Broker canchoose anylegal form ofenterprise permissible in
Lithuania. There isonefinancial requirement forallenterprises tohave1000 litasliquidating means
inabank account. TheEnterprise ofFinancial Broker must employ atleastonebroker having a
certificate ofqualification. Theperiod ofestablishing endswhen theenterprise submits areport ofWT/ACC/LTU/5
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establishment. Ifallrequirements arecompleted financial broker canarrange alloperations withthe
securities. Spheres ofactivities ofthefinancial broker:
- offering securities forpublic turnover;
- controlling theinvestor 'ssecurities package;
- giving advises about securities emission;
- consulting about securities turnover;
- purchasing andselling thesecurities inaname andmeans ofacustomer;
- purchasing andselling thesecurities inownname andownmeans;
- purchasing andselling thesecurities inownname andcustomer 'smeans.
Since 31January 1993, theLithuanian Securities Commission gives thecertificates of
qualificationforfinancialbrokers.EachbrokerhastotakespecialexaminationorganizedbytheSecurities
Commission according totherulesoffinancial broker. These rulesalsodetermine thecontrol offinancial
brokers.
Inallsuchfields there arenodiscrimination forforeigners, butservices related topublic
securities turnover canbeprovided from foreign countries onlythrough enterprises established in
Lithuania orrelevant bankdivision.
Enterprises established inLithuania andowned byforeigners maybecome members ofNational
Stock-Exchange orCentral Securities Depositorium onthesame conditions asdomestic entities.
4.1.2. Communication services
Thesphere ofcommunication services isregulated bytheLaw onCommunication
(30May1991), Government Resolution No.575 "OnApproving ofCommunication Statute inthe
Republic ofLithuania" (19December 1991) andcorresponding regulations.
Inthepostandtelecommunication (telephone, telegraph, datatransmission, etc.)services sphere
firstofalltheStatespecial enterprises "Lietuvos Pastas" (Lithuanian post)and"Lietuvos Telekomas"
arerendering appropriate services. Suchexclusive rights forthose enterprises aregranted bytheLaw
onCommunication andLawonEnterprises.
Other telecommunication activity (except those onwhich "Lietuvos Pastas" and"Lietuvos
Telekomas" haveexclusive rights -seetheChapter II.5"Monopolies orexclusive service suppliers")
isliberalized, However insome areas thelicence isnecessary.
Currently inthetelecommunication services sphere there arefewjoint-ventures: "Comliet",
"Lintel", "Omnitel" andother.
Foreign capital enterprises andjoint-ventures canestablish andexploit communication network
onlywiththepermission oftheLithuanian Government.
Requirements fortechnical standards arethesame asprovides theInternational
Telecommunication Union.
Audiovisualservices(excludingradioandtelevision)areregulatedbytheGovernmentResolution
No.722 "OnProcedure ofExposing, Edition andDistribution ofCinematographic Films, Video Films,
Video Programs, Erotic Programs, Propagation ofErotic andViolence Printing" (2October 1992).WT/ACC/LTU/5
Page14
Radio andtelevision services areregulated bytheLawonPress andOther Mass Media
(9February 1990), LawonEnterprise andtheGovernment Resolution No.575 "OnApproving of
Communication Statute intheRepublic ofLithuania" (19December 1991). Lithuanian State Radio
andTelevision Centre isresponsible onlyfortheState radio andtelevision services activity. Private
radio andtelevision studios mustberegistered intheMinistry ofJustice. Currently thenewLawon
Mass Media which willinclude spheres ofpress andtelevision isondrafting stage. AlsotheLawon
National Radio andTelevision andLawonCommercial Radio andTelevision isunder preparation.
4.1.3. Professional services
4.1.3.1. Legal services
Thelicence isnecessary toengage inthelawyer practice.
Theattorneys services areregulated under theLawonAttorney (16September 1992).
Only persons (ofLithuanian nationals), inscribed inthelistofattorneys oftheRepublic of
Lithuania, havetherighttobecalled asattorney andtopractise theprofession ofattorney. Attorneys
from foreign countries canprovide legalservices inLithuania onlyinaccordance withinternational
agreements onlegalassistance.
Suchkindofagreements aresigned andenforced withfollowing countries: Belarus, Estonia,
Latvia, Moldova, Poland, Russia andUkraine. Agreements withKazakhstan andTurkey aresigned
butnotyetinforce.
4.1.3.2. Medical services
Thelicences toprovide themedical services, medical treatment andhygiene practices orother
medical activity arenecessary inLithuania. Under theLawonHealth System oftheRepublic of
Lithuania (19July1994), suchkindofactivity intheorder established bytheMinistry ofHealth can
beprovided bytheforeigners onlyoncharity ortraining purposes, unless theinternational agreements
oftheRepublic ofLithuania provide otherwise.
Agreement oncooperation inthefieldofhealth andmedicine havebeensigned withIsrael,
butisnotyetinforce.
4.1.3.3. Veterinary services
TheStateandprivateveterinaryinstitutionsprovidethefollowingveterinaryservicesas:diagnose
ofanimal illness, prevention ofdisease, medical treatment, veterinary-sanitary examination ofproducts
andraw-materials originating from animals andetc.
TheState Veterinary Service organize veterinary means andcontrol theirimplementation,
coordinate veterinary andveterinary-pharmaceutical activities inaccordance withtheLawonVeterinary
(17December 1991) andtheLawonPharmaceutical activities (31January 1991).
Theprivate veterinary services areunder theregulation oftheState Veterinary Service.
Concerning theveterinary services activity thequalification ofveterinary andlicence ofsuch
activity arenecessary. Veterinary specialists fromforeign countries areexamined under theestablished
order oftheLithuanian Government.WT/ACC/LTU/5
Page15
4.1.3.4. Architectural, engineering andrelated services
Currently thespecial lawsonarchitecture andengineering aredrafting.
4.1.4. Other business services
Services included inthissector areunder regulation oftherelevant Ministries (theMinistry
ofCulture, theMinistry ofIndustry andTrade, theMinistry ofAgriculture, theMinistry of
Environmental Protection, theMinistry ofForestry, theMinistry ofEnergy, theMinistry ofInterior,
theMinistryofPublicAdm.ReformsandLocalGovernm.Affairs),ChamberofCommerce,Industrialists
Confederation, Consumer Association, localgovernments.
4.1.4.1. Market research andpublic opinion polling services
Market researching services areprovided bythemany private companies, joint-ventures,
organizations ("Bankines konsultacijos", ISC,"Interverslas", etc.), Lithuanian Institute ofInternational
Political andEconomical Relations. Market researching inthose companies make up20-50 percent
oftotalresearching.
Market researching inallthree Baltic countries isperiodically provided bysuchinstitutions:
"Baltijos tyrimai" (Lithuanian andGreat Britain market andpublic opinion researching joint-venture),
stock company "Vilmoris", FreeMarket Institute, "ANR Baltica" (division ofUSAandCyprus joint-
venture intheBaltic countries).
4.1.4.2. Technical testing andanalysis services
Suchkindofservices arerendering bythespecial laboratories. Services onproduction testing
andcertification areprovided bythespecial certification centres inVilnius andKaunas.
Services ongoods survey andcargo control arerendered bytheindependent Lithuanian
Association ofGood Surveying Companies. Themembers ofassociation provide survey ofindustrial
andagricultural products, pre-export survey ofrawmaterials, bringing samples, vehicles conforming
tohygiene requirements, goods packaging standards, consultations onrules oforigin issues etc.
Goods survey isalsorendered bytheState Quality Inspection.
4.1.4.3. Management consulting andrelated services
Inthetransition period ofeconomy thegeneral management consulting services arerendered
toindustrial enterprises. Suchkindofservices areprovided bytheprivate consultations firms andcover
businesspolicyandstrategy,generalplanning,restructuring,establishmentofjoint-ventures,preparation
ofstrategic business plans andprofit increasing programmes, etc.issues.
Business Advisory Services Centres areestablished inVilnius andother largest cities of
LithuanianwhicharefinancedbythePHAREprogrammeandprovideconsultationsonsmallandmedium
sizebusiness.
4.1.4.4. Services incidental toagriculture andhunting
Currently there arenospecial regulatory structures foragricultural service sector orspecific
requirements onprovisions ofservices ofthissector additional togeneral rules havetobefollowedWT/ACC/LTU/5
Page16
inother branches ofthenational economy. Institutions which dealwithparticular agricultural sectors
andactaccording tothelawsregulating thissector, areresponsible fortheparticular service sector.
There arenorestrictions onforeign ownership, except fortheagricultural land.Ifagricultural
landisneeded toconduct activities orprovide services, itcanbeleased foranextended period oftime.
HuntingactivityinLithuaniaisregulatedbytheGovernmentResolutionNo.1276"OnRegulation
ofHunting intheRepublic ofLithuania" (19December 1994), andiscontrolled bytheMinistry of
Environmental Protection, Ministry ofForestry andMinistry ofInterior inthespheres oftheir
competence.
4.1.4.5. Services incidental tomanufacturing
Lithuanian enterprises supply thefollowing services related tomanufacture (under thedata
oftheMinistry Industry andTrade):
- manufacturing services ofmetal andplastic partsforthirdparties inaccordance with
theirspecifications;
- casting andmoulding services from drawings andmodels;
- metal processing services (stamping, rollforming, forging, forming, turning), metal
surface treatment (painting, varnishing, electroplating, anodizing);
- mechanical engineering services, including boring, turning, milling, broaching,
cutting, grinding, welding, etc.ofmetal parts;
- installation, repair andmaintenance ofmotors, pumps, compressors, cranes, lifting
equipment, general purpose machinery, machine-tools, food-processing machinery,
machineryfortextile,leather,apparelproduction,paperproductionmachinery,office-
machinery, computers, electric machines, generators, transformers, domestic and
professional radio, television, sound andvideo equipment, electric household
appliances, etc.;
- furniture finishing (varnishing, painting) andrenovation services;
- wood impregnation andother treatment;
- processing ofmetal andnon-metal waste andscrap intosecondary rawmaterial;
- dyeing,bleachingoffabrics,fibresandyarn,fabricprinting,textilefinishingservices.
4.1.4.6. Services incidental toenergy distribution
Foreigners aswellasdomestic providers having thelicence mayengage insuchkindofactivity.
Currently situation isthefollowing thatstock company "Lietuvos dujos" (Lithuanian gas)is
providing gassupplying forallusers inLithuania, aswellastheState enterprise "Lithuanian State
Energetics System" intheelectricity sphere, although thevalid legislation doesnotprohibit tocarry
outsuchfunctions forother enterprises.
4.1.4.7. Printing andpublishing services
Publishingservicesareprovidedbythethreespecialenterprisesandabout600privatecompanies.
Printing services arerendered bythetwospecial enterprises andabout 150private companies.
Printing andpublishing services areregulated bytheMinistry ofCulture. AlsotheAssociation
ofLithuanian Publishers, Association ofLithuanian Printers, Association ofLithuanian Publishers of
Periodical Press, Board ofMess Media, Lithuanian Agency ofCopyright Protection havetheinfluence
torendering ofsuchkindofservices.WT/ACC/LTU/5
Page17
Themain lawinthissphere istheLawonPress andMass Media (9February 1990).
4.1.5. Construction andrelated services
Overall construction andrelated engineering services market isregulated bytheGovernment
Resolution No.114 "OnApproval ofProcedure ofConstruction Contracts" (23January 1995).
TheLawonPurchasing isunder thedrafting stage. Theprocedure aswellasregulation of
purchasing ofconstruction andrelated engineering services would beestablished bythisLaw.
According toprocedure inforce alltender participants should present documents providing
theirqualification. Thisprocedure iswidely usedforpurchasing construction contracts bypublic means.
Thispractise isbased oncertification ofenterprises bytheMinistry ofConstruction andUrban
Development.
OnlyLithuanian standards areinforce inthissphere. Onthenecessity ofapplying offoreign
standards theapproval ofGovernment orother governmental institutions ismandatory.
Theactivityinconstructionandrelatedengineeringservicesspheredoesnotrequirethelicensing
regime.
4.1.6. Educational services
Rendering ofeducational, studies andscience services isregulated bytheLawonEducation
(25June1991), LawonScience andStudies (12February 1991), LawonEmployment Contract
(11November 1991), Government Resolutions ontheestablishment ofhighschools, science institutions
andother.
Educational services canberendered bytheallnatural andlegalentities aswellastheforeigners
andforeign organizations iftheyfulfil following conditions:
- educational service isassigned forobtaining oftheState recognized education or
qualification; inthiscaseservices provider havetoimplement provisions setbythe
LawonEducation (25June1991) onteaching ortraining content, duration, material
andtechnical base, teachers qualification; thisislegalized bythelicence for
educationalactivitiesandregistrationofeducationalinstitution;thesamerequirements
areapplied andforproviders ofscience andstudies services;
- educational service isassigned forqualification improvement notobtaining newState
recognizededucationorqualification;inthiscaseservicesproviderhavetoimplement
simplified requirements -onlytodeclare theteaching ortraining profile, andto
ensure thateducational services willberendered intheappropriate premises.
Conditions oneducational (andcultural) services providing bytheforeigners aredetermined
bythementioned lawsandinternational agreements. Agreements onscience andtechnology cooperation
(mostly asapartoftheagreements oneconomical cooperation) havebeensigned andenforced with
Czech Republic, China, Moldova, Romania, Slovakia, Tajikistan, Turkmenistan, United States;
oncooperation inthefieldofeducation, science andtechnology -withUzbekistan;
oncooperation inthespheres ofeducation, science andculture -withUkraine;
oncooperation inthefieldofculture andart-withGermany, Uzbekistan, Venezuela;WT/ACC/LTU/5
Page18
cultural, educational, scientific andsport exchange programmes havebeenconcluded with
Turkey, Venezuela;
oncooperation intraining specialists ofeconomy, administration andmanagement andraising
theirskill-withGermany.
Suchkindofagreements withColumbia, Israel, Philippines, Romania, Turkey aresigned but
notyetinforce.
Fortheestablishing foreign orjointeducational institution thelicence from theMinistry of
Education andScience isnecessary.
4.1.7. Tourism andtravel related services
Agreement oncooperation inthefieldoftourism havebeensigned andenforced withTurkey.
Such kindofagreements withCyprus, Greece andUzbekistan aresigned butarenotyetinforce.
4.1.8. Transport services
Themainlawregulated transportation activity istheLawonFundamentals ofTransportation
Activities (8October 1991). International transportation additionally isregulated bythesigned and
enforced appropriate international agreements listed below, andsuchkindofactivity isthesubject
tolicensing.
Majority ofLithuanian cargo carters byroadtransport areprivate enterprises.
Thespecial enterprise "Lietuvos gelezinkeliai" (Lithuanian Railway), which allshares belong
toState, combines thealltransportation through railway inLithuania.
TheState seaport ofKlaipeda provides services formaritime transport, shipping, storing,
passengers ferries.
Themain documents onqualification requirements arethefollowing:
Inthewater transport field:
- Government Resolution No.610 "OnApproving theStatute oftheCaptains ofthe
Ships" (8October 1992);
- Regulations ontheGranting Licenses ontheWater Transportation approved bythe
Government Resolution No.844 (9November 1992).
- Government Resolution No.915 "OnApproving Regulations ontheRegistration
ofShips" (30November 1992).
Currently there aredrafting regulations onlicensing ofships factoring, forwarding, pushing
andtowing, locman, rescuing services andunderwater works, etc.
Intheroadtransport field:
- Regulations ontheGranting Licences ontheRoad Transportation approved bythe
Government Resolution No.844 (9November 1992);
- regulations passed bytheMinistry ofTransport oncargo transportation by
international routes, State technical surveys ofvehicles, etc.WT/ACC/LTU/5
Page19
Civil aircraft follows bytherequirements oftheChicago Convention (1944) anditsannexes.
Themain document regulated railway activities istheTemporary Statute oftheLithuanian
Railways, approved bytheGovernment Resolution No.803 (26October 1992). Technical requirements
willbedetermined bytheProvisions ofRailway Technical Use,which willbeapproved bytheMinistry
ofTransport.
TheGovernment setsprices onlyforpassengers transportation anddoesnotcontrol anyprices
ofcargo transportation.
AgreementsoninternationalroadtransporthavebeensignedandenforcedwithBelgium,Belarus,
Bulgaria (applying provisionally bysigning), Czech Republic, Estonia, France, Germany, Greece (appl.
prov.bysigning),Hungary,Kazakhstan,Latvia,Luxembourg,Netherlands,Norway,Romania,Russia,
Spain, Sweden, Turkey, Ukraine;
onrailway transport -withKazakhstan, Poland;
onairtransport -withDenmark, Great Britain, Estonia, Hungary, Kazakhstan, Netherlands,
Norway, Poland, Russia, Sweden, Switzerland (appl. prov. bysigning), Ukraine, Uzbekistan;
onmaritime transport -withGermany, Netherlands, Russia;
ontheLithuanian seaports using -withKazakhstan;
onriver transport -withRussia;
oncooperation inthesphere oftransport -withRussia, Ukraine.
Signed butnotenforced agreements:
oninternational roadtransport -withDenmark, Great Britain, Poland, Moldova;
onairtransport -withFinland, South Korea, Turkey;
onmaritime transport -withPoland, Turkey.
4.2. Licensing andregistration requirements
According theLawonEnterprises, itisprohibited toestablish andmaintain gambling houses,
toorganize gambling games andtoprovide polygraphic services without registering suchanactivity
inthePress Control Board attheMinistry ofJustice.
Forcarrying outlicensed activities established bytheLawonAmendments andSupplements
oftheLawonEnterprises (5July1995) alicence orpermit bytheGovernment oranyother institution
authorized byit,must beobtained forfollowing services:
- prospecting ofnatural resources;
- theexploitation ofnatural resources;
- repair ofsports andhunting rifles andguns, pneumatic guns, pistols (revolvers),
fighting arms andpistols (revolvers) forself-defence, bow-arms;
- pharmaceutical activity;
- cultivation andsaleofcrops containing narcotic, highly effective orpoisonous
substances;
- wholesale andretail trade byalcohol products;
- providing ofmedical services, medical treatment andhygiene practices;
- veterinary practice;
- lawyer practise, unless thelawsprovides otherwise;
- establishment ofeducational institutions, enterprises andinstitutions engaged inthe
healthiness activities;WT/ACC/LTU/5
Page20
- carrying outofgeodetic andtopographical works, publishing andprinting of
topographical plans andmaps aswellascartographic charts;
- activity bytheinternational transportation, unless thelawprovides otherwise;
- purchasing andremelting ofcopper andother non-ferrous metals, itsalloys, scrap
andwaste intheterritory ofLithuania;
- tourism services;
- organizing oflotteries assigned forcharity andsupport purposes;
- purchasing offerrous metals scrap anditswaste inLithuania;
- purchasing andprocessing ofprecious metals waste andscrap;
- providingofcommunicationservicesusingofcommonnetworkoftelecommunications
linesandstations;
- construction andexploitation oftheinstallations radiating electromagnetic waves;
- researching, preservation andrestoration oftheimmovable cultural values;
preparation oftheconditions, programmes andprojects ofsuchworks; preservation
andrestoration ofmovable cultural values;
- projecting andconstruction oftheState roads;
- wholesale andretail trade bythenarcotics, highly effective andpoisonous
substances (which arenotusedforpharmaceutical purposes) inLithuania;
- wholesale trade byspecial foodstuffs andfood additives inLithuania;
- establishment ofshooting galleries andstands ofhunting shooting;
- trade bythetransport means onthecommission bases; projecting, instillment,
assembling andexploitation oftheprotective fire-signalling;
- transportation, trade, use,storage andburying ofthechemical materials which can
harmfully acttheenvironment;
- commercial activity related with theprecious metals andjewels;
- mediation activity inthepublic turnover ofstock exchange;
- stock-exchange activity;
- investment andreinvestment tosecurities andtrade byitsasamain activity,
possessionoftheinvestmentscompaniesproperty,unlessthelawsprovideotherwise;
- wholesale andretail trade bytheoilproducts; retail trade bytheliquefied gas;
- energetic activity;
- selling ofsports andhunting firearms, ammunition, weapons, explosives and
pyrotechnics;
- inventory oftheforests andpreparation oftheforestry projects;
- theforwarding agent services providing intheair,water andrailway transport;
- ships tugging;
- rescuing andunderwater technical works;
- locman services;
- fulfilment ofaudit;
- mediation services foragiving ajob;
- trade bybiological plants protection measures;
- realestate activity.
Only State enterprises andspecial companies which allshares belong totheState, havethe
righttoengage intransportation, usage orother activity related withradioactive, nuclear material and
waste thereof withthelicences giving bytheGovernment established order.
OnlyStateenterprises, localenterprises andspecial companies havetherighttoengage inthe
following activities withthelicences given bytheGovernment established order:
- wholesale trade bythenarcotic andhighly effective andpoisonous substances;WT/ACC/LTU/5
Page21
- treatment ofpatients illwithinfectious diseases listed inthespecial listofMinistry
ofHealth;
- treatment ofanimals illwithespecially dangerous diseases;
- postwork (only theState enterprise "Lietuvos Pastas");
- acceptingandpayingoffofpostalorders(onlytheStateenterprise"LietuvosPastas").
Without thelicence given bytheGovernment established order fortheenterprises which less
then50percentshares belong toState isprohibited:
- theexploitation ofrailways, sea-ports, airports andState roads fortheirproper
purpose;
- theexploitation ofgas-pipes, oilpipelines, communication networks, electric
transmission lines, thermal network ofState importance andtoensure technical
functioning ofsuchobjects.
Forcredit andbanking activities, alicence from theBank ofLithuania isnecessary.
There areapproved conditions andprocedures forobtaining licences ineachsector oflicensed
service activities. Ifallthedocuments presented byenterprise forobtaining thelicence respond to
established requirements, thelicence shallbegiven within 30daysfrom thedateofapplication. In
certain sectors ofservices thelicences shallbegiven tolimited number ofapplicators according to
results ofpublic tender.
5. Monopolies orexclusive service suppliers
Inthesphere ofservices threefollowing enterprises areincluded inthelistofdominant entities,
whose financial economy activity, market behaviour, commodity andservice prices arebeing supervised
bytheState Competition andConsumer Protection Office:
- theState enterprise "Lietpraba", which engages intheassaying andhall-marking
ofprecious metals;
- theState enterprise "Lietuvos kuras" ("Lithuanian fuel"), which engages inthe
selling ofpetrol;
- theState Bureau ofInventory, Design andService, which provides technical
Inventory ofconstructions, building andengineering constructions, certification of
buildings andconstructions. (This Bureau hasthestatus oftheprofit company).
Exclusive rights aregranted tothespecial Stateenterprises "Lietuvos Telekomas" (Lithuanian
Telecom)and"LietuvosPastas"(LithuanianPostOffice)(belongedtothesphereofcompetenceMinistry
ofCommunication andInformatics), "Lietuvos Gelezinkeliai" (Lithuanian Railway) and"Lietuvos
Avialinijos" (Lithuanian Airlines) (belonged tothesphere ofcompetence Ministry ofTransport). The
objects oftheexclusive rights are:
- for"Lietuvos Telekomas" theobject istelephone networks ofcommon use;
- for"Lietuvos Pastas" theobjects arepublishing anddistribution ofpoststamps,
envelopes andpostcards withpoststamps, gathering anddelivering ofpostal orders,
letters, postcards, printed matters (printed production inenvelopes) andproviding
ofpostcashservices;
- for"Lietuvos Gelezinkeliai" theobject iscarrying goods andpassengers byrailway
intheterritory ofLithuania;WT/ACC/LTU/5
Page22
- for"Lietuvos Avialinijos" theobject isexclusive flights toUnited Arab Emirates
andTurkey because ofasmall demand onflights andseeking toform streams for
regular flights.
There isanumber ofsectors where supplying ofservices isgranted onlytotheenterprises
ofcertain legalorownership type(special State, localenterprises orenterprises ofwhich allshares
ortheestablished partofshares belong totheState) asreferred Chapter II.4.Thisreferthewholesale
tradeofnarcotic andpsychotropic materials andtreatpatients withinfectious diseases; wholesale trade
offerrous andnon-ferrous metals.
Some enterprises asstock company "Lietuvos dujos" (Lithuanian gas)andState enterprise
"Lithuanian StateEnergetics System" currently haveamonopoly position inthemarket, although valid
legislation isliberal anddoesnotmake impediments totheactivity inthissphere forothers enterprises.
6. Safeguard measures related totrade inservices
Lithuania doesnotcurrently havealegalstructure inplace toapply safeguard measures.
7. International transfers andpayments forcurrent transactions ofservices
Lithuania does notcurrently apply therestrictions oninternational transfers forcurrent
transactions.
Lithuania hasaccepted from3May1994, theobligations ofArticle VIII(section 2,3and4)
oftheAgreementofIMF,accordingwhichcountry-membercannotapplyrestrictionsoncurrentpayments
without thereport inadvance toIMF.
Provisionsrelatingtointernationaltransfersandpaymentsforcurrenttransactionsofconstruction
andrelated engineering services aredefined incontracts inanycase.
International transfers andpayments formedical services, provided intheterritory ofother
country, aresettled under theinterState agreements (such kindofagreements aresigned withLatvia
andEstonia). Ifmedical services areprovided incountry with which Lithuania hasnotsigned
international agreement thepayment isproviding bytheprivate insurance orpatient himself. Other
payments formedical services areprovided oncommon order.
Agreementsfortheavoidanceofdoubletaxationandthepreventionoffiscalevasionwithrespect
totaxes onincome andoncapital havebeensigned andenforced withCzech Republic, Denmark,
Estonia,Finland,Latvia,Norway,Poland,Sweden;ontheregulationsofaccountsettlementandpayment
havebeensigned andenforced withKazakhstan, Russia andUkraine. Such agreement withBelarus
issigned butnotyetinforce.
8. Capital transactions
TherearenoanyrestrictionsoncapitaloperationsinLithuania.Residentsaswellasnon-residents
mayopen accounts intheforeign banks. Non-residents mayparticipate intheLithuanian securities
market, foreign banks -establish branch banks, investors -repatriate theirprofit.
According theLawonForeign Capital Investments intheRepublic ofLithuania (13June1995)
investmentsofcapitalofforeignoriginshallbepermittedinallspheresofeconomic-commercialactivities
excluding thefollowing:WT/ACC/LTU/5
Page23
- sectors relating tothesecurity anddefence oftheState;
- manufacturing andsaleofnarcotic substances andother non-medical poisonous or
acting violently substances;
- growing, processing andsaleofcrops containing narcotic andpoisonous substances,
oracting violently substances ;
- organizing oflotteries.
According theabove mentioned Lawallprofits, incomes, ordividends received inLithuania
belong toforeign investors bytherightofownership. Foreign investors may, afterpaying allrelevant
taxes, totransfer alltheprofits, incomes ordividends, belonging tothem bytherightofownership,
intoother country without anyrestrictions.
Foreign investors mayalsoexport theirprofits, incomes ordividends intheform ofgoods
andservices purchased inthedomestic market, orreinvest thethem intheeconomy ofLithuania.
Agreements oninvestment promotion andprotection havebeensigned andenforced withCzech
Republic, China, Denmark, Germany, Finland, France, Great Britain, Netherlands, Norway, Poland,
Romanian, South Korea, Sweden, Switzerland andUkraine. Anagreement withtheUnited States is
nowbeing renegotiated. alsothere isavalid agreement withtheMultilateral Investment Guarantee
Agency (MIGA).
Agreements withEstonia, Israel, Italy, Kazakhstan, Spain, Turkey, Venezuela, Vietnam are
signed butarenotyetinforce.
Provisions relating tocapital transactions effecting thesupply ofconstruction andrelated
engineeringservicesareinfluencedbytheministriesordepartmentsunderthatregulationfieldenterprises
are.There arenoregulations forprivate capital inthissphere.
9. Procurement bygovernmental agencies ofservices
Procurement bygovernmental agencies ofservices isregulated bytheGovernment Resolution
No.510"OnApprovingProvisionalRegulationsofGovernmentProcurement"(12April1995).According
tothisResolution incarrying outgovernment procurement, services rendered byforeigners (aswell
asgoods produced abroad) arepermitted tobepurchased when enterprises registered inLithuania do
notrender suchservice orrender themininsufficient quantities; when technical indices ofdemanded
services arelower thanthose ofanalogous services rendered byforeigners, orwhen prices ofLithuanian
services arehigher thanthose ofservices offoreigners. Therequirements ofthisResolution arenot
applyingiftheservicesarepurchasingaccordingtheprovisionsoftheLawonInvalidsSocialIntegration.
Lithuania iscontinuing itswork todraftaLawonGovernment Procurement, which willbe
adopted in1995 or1996.
10. Aid,grant, domestic subsidy, taxincentive, promotion schemes
Taxincentives fortheservice suppliers areprovided bythelawsmentioned below.
Under theLawonValue Added Tax(22December 1993), therateofVAT forallgoods and
services is18percent, withtheexemption ofthefollowing services :
- medical anddental services provided bytheState institutions ofmedical curative
anddental service;WT/ACC/LTU/5
Page24
- social services rendered bydaycarecentres andhomes forthedisabled andthe
elderly;
- educational, scientific andcultural services rendered byinstitutions ofeducation,
science, andstudies, aswellasnon-profit cultural institutions;
- services ofroute passenger transport;
- postal services (with theexception oftransmission ofparcels andtelecommunication
services);
- insurance andbanking services (excluding storage facility services) andturnover
ofsecurities;
- funeral services;
- publishing, printing andcirculation ofnewspapers, magazines andbooks;
- services andworks forwhich taxes arepaidintothebudget;
- services paidforwithdonated funds;
- rentforhouses andapartments being leased formore than2months;
- landrent;
- veterinary services;
- services provided bytravel agencies totourists coming intoLithuania (amended
20July1994);
- restoration andconservation ofthecultural values;
- agricultural services provided bytheagricultural companies fortheirmembers (no
VAT until1January 1996);
- production ofcinema films financing bytheState, captioning anddubbing services,
exposing ofLithuanian films;
- services paid byforeign States, international funds andorganizations.
Thecurrent profit taxisimposed bytheLawonProfit TaxofLegal Persons (31July1990)
andispaidbyalllegal persons. Thetaxrateis29percentoftaxable profit. Profits retained for
investment purposes aretaxable atarateof10percent. Taxable profits ofnon-profit organizations
aretaxable atarateof5percent.Dividends received byforeign investors inLithuania areexempted
from tax(concerning thetaxincentives toforeign companies see theanswer to
Question 54-WT/ACC/LTU/2).
There aresome reductions ofthistaxfortheenterprises, engaged inthefollowing sectors:
- services ofroute passenger transport;
- medical andhygiene services;
- roadexploitation;
- construction;
- communication;
- repairing ofships, other water transportation;
- processing andgathering ofwaste;
- cityandtown maintenance.
Allproviders engaged inmedical treatment, andhealth promotion including those applying
traditional medicine ornon-medical methods andcinema theatres, studios ofcinema, films renting
structuresareexemptedfromrealestatetax(undertheLawonTaxonImmovablePropertyofEnterprises
andOrganizations (20July1994) andrelated Government Resolutions).
Besides thesubsidies providing inenergy system therearesome subsidies provided totheState
enterprises "Lietuvos Pastas" (Lithuanian Post) and"Lietuvos Gelezinkeliai" (Lithuanian Railway),
State agency ofinland water transport.WT/ACC/LTU/5
Page25
Themeans fromtheAgriculture Support Fundareprovided foragricultural services enterprises,
agricultural infrastructure improvements, electrification offarmsteads, thecreation ofcommunication
system, roadbuilding andmaintenance, etc.
III. MARKET ACCESS AND NATIONAL TREATMENT
Limitations onthenumber ofservice suppliers areasindicated inChapter II.5."Monopolies
orexclusive service suppliers".
There arenocurrently special limitations onthetotalvalue ofservice transactions orassets,
onthetotalnumber ofservice operations, onthetotalquantity ofservice output oronthetotalnumber
ofnatural persons thatmaybeemployed inaparticular service sector.
Under theGovernment Resolution No.237 (13February 1995), restrictions foremployment
areapplyingforforeignersandpersonswithoutcitizenship,whohavenotpermissionstolivepermanently
inLithuania andarearriving fortemporary work. Lithuanian Labour Exchange under theestablished
foreigners employment quota isgiving permissions forforeigners towork inLithuania. Thenumber
offoreigners which canbeemployed isdetermined taking intoaccount thesituation ofLithuanian labour
market.
Restrictions on,orrequirements ofspecific types oflegalentity through which aservice may
besupplied areprovided bythesectoral lawsandregulations mentioned inchapters above.
LimitationsontheparticipationoftheforeigncapitalareasindicatedintheChapterII.8."Capital
transactions".
IV. MOST-FAVOURED-NATION TREATMENT
Thefreetradeagreements concluded byLithuania traditionally donotcover tradeinservices.
Signed agreements ontransportation mostly determine thecooperation andcoordination on
international transportation; agreements oneducational orcultural cooperation cover more general
questions.
Europe (Association) Agreement signed on12June 1995, covers trade inservices and
establishment issues, butitmust bepassed through theratification procedure.