RESTRICTED
WORLD TRADE WT/ACC/LTU/7
27February 1996
ORGANIZATION(96-0708)
Original: English
ACCESSION OFLITHUANIA
Additional Questions andReplies totheMemorandum onForeign Trade Regime (L/7551) ofthe
Republic ofLithuania andtoReplies/Questions (WT/ACC/LTU/2 andWT/ACC/LTU/4)
ThePermanent Mission oftheRepublic ofLithuania hassubmitted thefollowing additional
replies toquestions raised byMembers.
This document alsocontains thefollowing annexes :
Annex I. Note ontrade-related aspects ofintellectual property rights (TRIPS)
Annex II. Trade related investment measures (TRIMS)
Annex III. Customs duty rateforimport goods applied byLithuania
Annex IV. Goods free from customs duty imported inaccordance with quotas issued bythe
ministries (general tariff quotas)WT/ACC/LTU/7
Page 2
TABLE OFCONTENTS
Section Question numbers
I. INTRODUCTION
II. ECONOMY AND FOREIGN TRADE
1. Economy
(a) General description 184-185
(b) Main directions oftheongoing economic policies, etc
Privatization ofState Property 186
Prices 187-189
Competition 190-192
III. FOREIGN TRADE REGIME
1. Import regulation
(b) Customs tariff nomenclature, types ofduties, general
description ofthecustoms tariff structure, weighted
average level ofduties onmain customs tariff groupings 193-199
(d) Non-tariff measures, quotas andlicensing system 200-229
(e) Customs valuation 230-232
(f) Rules oforigin 233
(h) Standards andcertification 234-243
(i) Sanitary andphytosanitary measures 244-248
(j) Other 249-250
2. Export regulations
(b) Export restrictions andprohibitions 251-253
IV. OTHER POLICIES AFFECTING FOREIGN TRADE
(1) Industrial policy 254-255
(2) Agricultural policy 256-274
(3) Financial, budgetary andfiscal policy 275-276
(4) Monetary policy andthebanking system 277
(5) Foreign anddomestic investment policy 278-282
(7) State trading. State enterprises 283-286
(8) Subsidy policy 287-290
(10) Protection ofintellectual property rights 291
V. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC
RELATIONS WITH THIRD COUNTRIES
1. Brief description ofbilateral trade andeconomic agreements
andintegration arrangements 292-298
VI. LAWS AND LEGAL ACTS
1. Laws andlegal actsregulating theactivity ofthecustoms authorities 299WT/ACC/LTU/7
Page 3
2. Laws andlegal actsrelating tonon-tariff regulation ofimports,
exports andtrade intransit, rules oforigin; responsible agencies 300-301
APPENDIX I STATISTICAL DATA302
ANNEX IV. GOVERNMENT DECISION ONTHE PROCEDURE OF
COMMODITY EXPORT AND IMPORT REGULATION
INTHE REPUBLIC OFLITHUANIA 303
SERVICES 304-325
ANNEX I.(toquestions/replies). NOTE ONTRADE-RELATED ASPECTS OFINTELLECTUAL
PROPERTY RIGHTS (TRIPS)
ANNEX II.(toquestions/answers). TRADE RELATED INVESTMENT MEASURES (TRIMS)
ANNEX III.(toquestions/answers). CUSTOMS DUTY RATE FOR IMPORT GOODS APPLIED
BYLITHUANIA
ANNEX IV.(toquestions/answers). GOODS FREE FROM CUSTOMS DUTY IMPORTED IN
ACCORDANCEWITHQUOTASISSUEDBYTHEMINISTRIES(GENERALTARIFFQUOTAS)WT/ACC/LTU/7
Page 4
I. INTRODUCTION
II. ECONOMY AND FOREIGN TRADE
1. Economy
(a)General description
Question 184
InitsMemorandum onForeign Trade Regime Lithuania states thatitstrade balance was
negative inthefirst three quarters of1993. Please provide statistics oftrade balance in1994-95.
How areLithuania 'sexports andimports changing and what arethereasons forthis? Could
Lithuania indicate changes initsregional foreign trade andspecify thereasons forchanges?
Reply
Lithuania ranatrade deficit ofapproximately 320mlnUSD in1994; Lithuania ranatrade
deficit ofapproximately 120mlnUSD forJanuary-June 1995 (full year figures for1995 arenotyet
available). Major Lithuanian exports included textiles, chemicals andrelated products, andprocessed
mineral products (mainly petroleum products).
Table 1
Balance ofForeign Trade
1994 -June 1995, mln USD
Foreign trade turnover
(current prices), mln
USD1994 1995
whole yearJanaury-
JuneJanuary-
June
Export 2019.3 889.9 1065.4
Import 2338.8 1210.8 1185.8
Balance -319.5 -320.9 -120.4
Source: Statistics Department
Majorimportsincludedmineralproducts(crudeoil,naturalgas,otherrawmaterials),machinery
andequipment andtextiles. Lithuania iscurrently importing more than itisexporting because many
ofitsgoods arenotyetcompetitive inWestern markets. Inaddition, Lithuania ’sexports totheEast
were hurtasRussia applied higher thanMFN duties toLithuanian goods until January 1995; Belarus,
until July 1995. Seetable 1forforeign balance figures andtable 2forimports/exports broken down
bymajor commodities.WT/ACC/LTU/7
Page 5
Table 2
Commodity Structure ofExport andImport (%)
HScode Export Import
1995
I
half1994 19931995
I
half1994 1993
Total 100 100 100 100 100 100
I.Live livestock and
animal production 7.6 8.9 9.1 1.3 1.6 1.9
IV.Ready -made food
products: non-alcoholic
andalcoholic beverages,
tobacco products5.0 11.9 3.3 4.1 4.3 4.1
V.Mineral products 11.6 16.7 25.9 24.4 32.8 43.0
VI.Production ofchemical
andrelated industries 12.8 10.6 6.0 9.4 8.8 6.5
IX.Wood andarticles of
wood 7.2 4.1 1.8 0.8 0.6 0.5
XI.Textiles andarticles
thereof 14.3 12.3 9.7 10.9 7.4 5.6
XV. Non-precious metals
andarticles thereof 9.6 6.2 5.3 6.4 6.5 7.0
XVI. Machinery and
equipment 10.7 12.0 19.4 17.5 16.5 11.7
XVII. Means of
transportation and
appliances thereof3.9 3.7 4.2 6.3 6.0 7.1
Source: Statistics Department
Inregard tosourcing patterns forimports, Lithuania isfinding new import partners asitmoves
from areliance onimports from theEast toabalance ofimports from theWest andtheEast (first ofhalfof1995:
41% byvalue from EUplusEFTA; approximately 40% CIS; 19% other). Currently most consumer goods imports
aresourced from theWest andmost energy andrawmaterials imports aresourced from theCIScountries. Russia
remains themajor foreign trade partner intheEast; Germany hasbecome themajor partner intheWest. Germany ’s
share ofLithuania ’simport market isincreasing atthesame time thatRussia ’sshare isdecreasing. Regarding
Lithuania ’sexports, Lithuania hasbeen increasing theamount ofexports totheWest. Themajority inthefirsthalf
of1995 were senttotheEUplus EFTA (41% byvalue) andtheCIScountries (40%). Seetable 3forbalance of
trade figures formajor trading partners for1994 andtable 4forbalance oftrade figures formajor trading partners
forJanuary-June 1995 (full year 1995 figures arenotyetavailable).WT/ACC/LTU/7
Page 6
Table 3
Main Foreign Trade Partners ofLithuania
in1994 (mln USD/per cent)
Export ImportBalance of
trade
mln
USD %mln
USD%mln
USD
Total 2019.3 100 2338.8 100 -319.5
EU* 522.2 25.7 620.3 26.4 -98.1
Germany 232.4 11.5 323.7 13.8 -91.3
Italy 38.6 1.9 64.5 2.8 -25.9
Netherlands 106.0 5.3 63.7 2.7 42.3
United Kingdom 46.7 2.3 33.0 1.4 13.7
Denmark 35.1 1.7 60.9 2.6 -25.8
EFTA** 107.8 5.3 183.7 7.8 -75.9
Finland 19.5 1.0 68.6 2.9 -49.1
Sweden 63.2 3.1 55.9 2.4 7.3
CIS 948.3 46.7 1183.4 50.2 -235.1
Russia 572.6 28.2 924.9 39.3 -352.3
Ukraine 125.1 6.2 118.1 5.0 7.0
Belarus 133.2 6.5 89.4 3.8 43.8
Other countries 450.5 22.2 366.0 15.6 84.5
Poland 101.6 5.0 94.4 4.0 7.2
Latvia 171.1 8.4 63.9 2.7 107.2
Estonia 51.7 2.5 37.9 1.6 13.8
*EU: Ireland, Belgium, Denmark, United Kingdom, Greece, Italy, Spain, Luxembourg, Netherlands,
Portugal, France, Germany.
**EFTA: Austria, Iceland, Liechtenstein, Norway, Finland, Switzerland, Sweden.
Source: Statistics DepartmentWT/ACC/LTU/7
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Table 4
Main Foreign Trade Partners ofLithuania
intheIhalf of1995 (mln USD/per cent)
Main foreign trade
partnersExport Import Balance
mln
USD% mln
USD%mln
USD
Total 1065.4 100 1185.8 100 -120.4
EU* 401.9 37.7 472.7 39.9 -70.8
Germany 157.3 14.8 193.9 16.3 -36.6
Netherlands 45.3 4.3 32.1 2.7 13.2
United Kingdom35.13.3 26.1 2.2 9.0
Sweden 29.3 2.8 42.3 3.6 -13.0
Italy 26.2 2.5 27.1 2.3 -0.9
Finland 13.2 1.244.63.8 -31.4
EFTA** 36.5 3.4 30.7 2.6 5.9
Switzerland 23.1 2.2 19.5 1.6 3.6
Norway7.00.7 10.7 0.9 -3.7
CIS 421.2 39.5 493.0 41.6 -71.8
Russia 213.7 20.1 373.5 31.5 -159.8
Belarus 96.9 9.1 57.0 4.8 40.0
Ukraine 70.9 6.7 37.4 3.2 33.5
Other countries 205.6 19.4 189.5 15.9 16.1
Latvia 86.8 8.2 38.6 3.3 48.2
Poland 45.6 4.3 47.1 4.0 -1.5
Estonia 24.1 2.3 22.1 1.9 2.0
*EU: Ireland, Austria, Belgium, Denmark, United Kingdom, Greece, Italy, Spain, Luxembourg, Netherlands,
Portugal, France, Finland, Sweden, Germany.
**EFTA: Iceland, Liechtenstein, Norway, Switzerland.
Source: Statistics DepartmentWT/ACC/LTU/7
Page 8
Question 185
How dotheLithuanian authorities view thefuture structure oftheenergy sector inLithuania?
Reply
Lithuania estimates thatin1995, domestic production ofenergy from local resources (including nuclear
energy*) fulfilled approximately 43% ofdomestic needs. During thenext tenyears, Lithuania expects thatits
consumption ofenergy willincrease. Given expected increases indomestic supplies ofnuclear power andpetroleum
products, by2005, domestic production ofenergy from local resources may grow slightly tofulfill approximately
50% ofdomestic needs. Lithuania expects thatover thesame period, imports ofcoalandsolid fuels (wood, peat,
diverse industrial andhousehold wastes) arelikely toincrease.
In2005, nuclear fuelisexpected tomeet close to40%, natural gas-over onequarter, oilproducts -slightly
under onequarter, solid fuel-around 10%, hydroenergy -lessthan 1%oftotal domestic consumption.
*According toWestern methods forcalculating energy balances, nuclear energy isconsidered asaproduct
oflocal production although thenuclear fuelforitsproduction isimported.
(b)Main directions oftheongoing policies, etc.
Transition toamarket economy
Privatization ofState property
Question 186
Please provide statistics concerning privatization ofState property inoverall Lithuania 'seconomy and
precisely inagricultural sector.
Reply
Forstatistics concerning privatization ofState property ingeneral, please seetheanswer toQuestion 85
(WT/ACC/LTU/4). For statistics concerning theagricultural sector, please seetheanswer toQuestion 39
(WT/ACC/LTU/2).
Under theLaw onInitial Privatization ofState Property (28February 1991), Lithuania planned toprivatize
2/3ofallexisting capital. Asanupdate tothese statistics, Lithuania now estimates that83% oftheState capital
foreseen forprivatization hasbeen privatized. Thelevel ofprivatization varies bythebranch oftheeconomy and
ishighest intheindustrial sector, where 91% oftheState capital foreseen forprivatization hasbeen privatized.
Privatization willcontinue onaspeedy basis under thenew Law onPrivatization ofState-Owned andMunicipal
Property (4July1995) which willrequire purchase ofprivatized objects onacash basis. This Law alsospells out
thatforeign anddomestic investors willparticipate intheprivatization process onanequal basis.
Inregard totheagriculture sector, according totheLaw onInitial Privatization ofState Property, thefirst
stage ofprivatization ofthecapital ofagricultural enterprises (food processing andagroservice enterprises) have
been finished in1993 for287enterprises. Andfor235enterprises from thisnumber thesecond stage ofprivatization
(selling theshares toproducers ofagricultural production) wasinitiated andisalmost finished.
Concerning privatization ofother spheres intheagricultural sector (privatization ofland orcollective and
soviet farms), seetheanswer toQuestion 39(WT/ACC/LTU/2).WT/ACC/LTU/7
Page 9
Prices
Question 187
Lithuania 'sanswer toQuestion 4(WT/ACC/LTU/2) notes thattheGovernment hasliberalized prices
foragriculture andfood commodities, yetitalsonotes thattheGovernment does "recommend" purchase prices
forcertain products (cattle, milk andcertain plants).
a)Asthese arenotmandatory minimum prices, what istheir purpose, especially asthey aretobe
"based onworld market prices"?
b)How dothese recommended purchase prices work? Are they compulsory andhow arethey
taken into account byenterprises while trading inagricultural products?
Reply
a)Supplement totheanswer toQuestion 45(WT/ACC/LTU/2).
Theminimum (recommended) purchase prices forinternal trade (notforimports) were established under
theLaw onState Regulation ofEconomic Relations forAgriculture (22December 1994), which established some
support measures forproduction andtrade onagricultural products. Thepurpose oftheminimum (recommended)
purchase prices istoprovide some guidance toLithuanian agricultural processing enterprises ontheir purchasing
decisions andthereby provide support andstability toLithuanian producers ofagricultural commodities (farmers)
during thecurrent difficult economic andsocial situation intheagricultural sector. Those processors which pay
theminimum (recommended) purchase prices receive subsidies from theLithuanian Government which arepassing
toproducers (farmers) ofagricultural products. Asapractical matter, farmers areinterested inselling their
commodities only totheprocessors which canpaytheminimum (recommended) purchase prices. Thesubsidies
given tofarmers through processors fortheminimum (recommended) purchase prices areseparate from theother
subsidies, such asforstorage andtheimproving ofmarketing possibilities (export subsidies).
b) Theminimum (recommended) purchase prices aresuggested byLithuania ’sCouncil onCoordination
andRegulation ofPurchasing ofAgricultural Products (membership includes agricultural processors, producers,
wholesalers andofficials from theMinistry ofAgriculture). Theproducers ofagricultural products (farmers) and
agricultural processing enterprises then conclude special treaties between themselves todecide aminimum
(recommended) purchase price taking intoaccount suggested bytheCouncil.
Theminimum (recommended) purchase prices arenotmandatory. However, asnoted above, those processors which
paytheminimum (recommended) purchase prices receive subsidies from theLithuanian Government; these subsidies
arepassed toLithuanian farmers. Asapractical matter, farmers areinterested inselling their commodities only
totheprocessors which canpaytheminimum (recommended) purchase prices.
In1996, Lithuania maintains andpublishes minimum (recommended) purchase prices forthefollowing:
wheat, rye,flax, rape seeds, fodder forleguminous crops, pork, high quality cattle andmilk.
Question 188
TheanswerstoQuestions3and4(WT/ACC/LTU /2)addressLithuania'spolicyof"recommended"
prices:
a)Certain telecommunications services areconsidered tobenatural monopolies byLithuania, and
thus subject totheGovernment regulation andcontrol. Please specifically which kinds oftelecommunications
services arecovered bytheGovernment price regulation.WT/ACC/LTU/7
Page 10
b)Iftherecommended purchase prices arenotmandatory, what purpose dothey serve? Isthe
Government ofLithuania willing toeliminate these recommended purchase prices forcattle, milk, andcertain
plants? How does theGovernment ofLithuania intend toconform theuseofthese "recommended" purchase
prices with theprovisions ofWTO Agreement onAgriculture, oneofthemain requirements ofwhich isthe
tariffication ofallapplied measures?
c)Would Lithuania indicate precisely allthegoods forwhich recommended prices areapplied? What
groups ofgoods areintended toinclude inthearea ofrecommended purchase prices?
Reply
a)TheLithuanian Government regulates theprices oftelecommunication services which itsupplies through
thestate telecommunication company “Lietuvos Telekomas ”.Atthesame time, itallows private entities inthefield
ofmobile telephone services tooperate inLithuania, andtosettheir own prices formobile telephone services.
Thestate company "Lietuvos Telekomas" supplies thetelecommunication services (telephone, telegraph,
datatransmission,radiocommunications)toallconsumers.TheMinistryofCommunicationsandInformaticscontrols
theprices charged forthese services; theMinistry coordinates itsdecisions onpricing with theState Competition
andConsumer Protection Office toensure thattheservices aresupplied onacommercial basis.
Prices forthefollowing telecommunication service aresubject totheGovernment regulation:
1.Internal telecommunication services:
1.1. telegraph;
1.2. data transmission through thecommunication channels;
1.3. trunk-call service;
1.4. urban andcountry sidetelephone;
1.5. installation ofradio.
2.International telecommunication services:
2.1. telephone;
2.2. telex;
2.3. telegraph.
3.Transmission service ofdata through common net.
4.Radio communication service.
5.Service ofRadio andTVtransmitters andradio relay lines.
b)Thepurpose ofminimum (recommended) purchase prices fortheagricultural goods isexplained inthe
answers toQuestion 45(WT/ACC/LTU/2) andtoQuestion 187ofthisdocument. Concerning theapplication of
such measure inthefuture, seetheanswers toQuestion 48(WT/ACC/LTU/2) andtoQuestion 262(b)ofthis
document.
Minimum (recommended) purchase prices arenotapplied toimports; therefore, tariffication isnot
atissue.
c)Thelistofgoods forwhich theminimum (recommended) purchase prices areapplied in1996 issubmitted
intheanswer toQuestion 189(a). There arenoplans innearfuture tointroduce ofminimum (recommended) purchaseWT/ACC/LTU/7
Page 11
prices fornewproducts. However, thismay become necessary ifanextreme situation inproduction ofparticular
products occurs.
Question 189
Inrelation toQuestion 4(WT/ACC/LTU/2). Itisstated intheanswer tothisquestion that
Lithuania 'sCouncil onCoordination andRegulation ofPurchasing ofAgricultural Products does recommend
prices forcattle, milk andcertain plants.
a)What arerecommended prices forcattle, milk andcertain plants atpresent (byHSline)?
b)What world prices arethese based on?
c)Since these prices arenotmandatory, doactual transaction prices tend tobehigher, lower, orthe
same astherecommended price?
Reply
a) Theminimum (recommended) purchase prices (LTL/t) for1996 are:
(1USD =4LTL)
----------------------------------------------------------------------------------
HS Product Price
----------------------------------------------------------------------------------
1001 wheat 500-600;
1002 rye 550;
5301 flax 530-2000;
1205 rape seeds 950-1100;
feed legume 800-1000;
0102 cattle 3000-4500;
0103 pork 5000-6000;
0401 milk 530-620.
----------------------------------------------------------------------------------
b)Theminimum (recommended) purchase prices aredetermined bytheaverage costs ofagricultural
production inLithuania andbythegeneral market situation forspecific agricultural products inneighboring countries.
c)Actually, thetransaction prices aresetbyrealmarket situation. Forsome primary products theactual
transaction prices are8-10% higher than minimum (recommended) purchase prices.
Competition
Question 190
Please provide additional detail concerning how istheLaw onCompetition applied inLithuania. What is
itspractical impact onthemarket? Arethere anysectors excluded from theapplication ofthisLaw, ifso,why?WT/ACC/LTU/7
Page 12
Reply
Supplement totheanswers toQuestions 3and5(WT/ACC/LTU/2) and84(WT/ACC/LTU/4).
TheLaw onCompetition entered intoforce on1November 1992. TheState Competition andConsumer
Protection Office (the“Office ”)hastheresponsibility forimplementing andoffering elaborations ofthisLaw. During
theperiod 1992 through 1995, theOffice approved 4by-laws toimplement theLaw concerning: abuse ofdominant
position, agreements andconcerted activities restricting competition, control ofmergers andprohibition ofunfair
activities.
During thesame period, theOffice pursued over 300cases falling under theLaw onCompetition andits
by-laws. Accusations were presented in147cases; these resulted infines (intheamount of430,000 USD) andother
penalties. Themajority ofinfringements oftheLawwere related toabuse ofdominant position andunfair competition.
During 1994-1995 thenumber ofmerger cases markedly increased.
Inaddition, during 1994, theOffice carried outaninvestigation ofthelevel ofconcentration intheindustrial
commodity markets. During thisinvestigation, 88branches ofindustry, covering allentities with 50ormore
employees, were investigated. Theresults ofthisstudy were better than expected, especially taking intoaccount
thedifficulties Lithuania faces asaneconomy intransition:
73.7% ofallentities and59% ofallindustry production areinmarkets where thelargest producer hasa
non-dominant (less than 40% market share) position.
TheLaw onCompetition isapplied forallentities independently oftheform ofownership, type ofentity
orcharacter ofactivity. However, certain exemptions from thecoverage oftheLaw areprovided under separate
pieces oflegislation: theLaw onEnergetic (tomaintain state supervision over theextraction ofenergy resources,
theproduction ofenergy andtheuseofenergy); theLawonCommunications andtheLawonEnterprises (tomaintain
thestate enterprise “Lietuvos pastas ”(Lithuanian post) asthesole provider ofpostal services); theLaw on
Fundamentals forTransportation Activity (tomaintain thestate enterprise “Lietuvos gelezinkeliai ”(Lithuanian
Railways ”));theLaw onAlcohol Control (toestablish astate monopoly fortheproduction andtrade ofalcohol
-butthisisonly partially implemented -seetheanswer toQuestion 226); theLaw onSugar (seetheanswer to
Question220);andbyorderoftheMinistryofCommunications,exclusiverightsaregrantedfor“LietuvosTelekomas”
andbyorder oftheMinistry ofTransport -toenterprise “Lietuvos avialinijos ”(Lithuanian Airlines) forflight to
UAE andTurkey.
Question 191
How iscompatible theexistence ofstate dominant enterprises andcompetition legislation inLithuania?
Reply
Supplement totheanswer toQuestion 84(WT/ACC/LTU/4).
TheLaw onCompetition (15September 1992) isapplied forallentities independently oftheir form of
ownership andtherefore isalsorelevant forstate enterprises. Under theLaw, anentity hasadominant position
ifitcanunilaterally influence amarket andpossesses market share ofnotlessthan40%. TheLaw does notprohibit
anenterprise, including astate enterprise, from maintain adominant position butitdoes prohibit dominant entities
forabusing their dominant position. Abuse isdefined asrestricting (preventing ordistorting) competition orinfringing
interests ofbusiness partners orconsumers. Presently there arealotofentities thathave adominant position in
theLithuanian markets andtheLaw’sprohibition applies tosuch entities. TheState Competition andConsumer
Protection Office executes theLaw onCompetition. 20dominant entities were penalized with pecuniary fines for
abuse ofdominant position during 1992-1995.WT/ACC/LTU/7
Page 13
Question 192
Please provide anew listofdominant enterprises (supervised andcontrolled bytheGovernment of
Lithuania). Please explain how thislistisbeing prepared? Does itinclude theenterprises prices ofwhich are
directly controlled bytheGovernment ofLithuania?
Reply
Supplement totheanswer toQuestion 84(WT/ACC/LTU/4).
TheState Competition andConsumer Protection Office (the“Office ”)relying upon investigation ofmarkets,
constantly updates (adds toanddeletes from)its listofdominant entities. Although, aswasmentioned intheanswer
toQuestion 190, entities with 40% orgreater market share canberecognized ashaving adominant position, at
present, entities having amarket share of60% orgreater areinserted inthelist.Thelistisalways under review
andsubject torevision asaresult ofnewinvestigations. Thelistincludes some entities forwhich prices areregulated
bytheGovernment.
Atpresent there are46entities inthelist.However, thenumber ofdominant entities isdecreasing. Lithuania
foresees tocease control ofprices ofdominant entities andtoconsider further reductions tothelist.
III.FOREIGN TRADE REGIME
1.Import Regulations
(b)Customs tariff nomenclature, types ofduties, general description ofthecustoms tariff structure,
weighted average level ofduties onmain customs tariff groupings
Question 193
Please elaborate onLithuania 'scustom duties structure (autonomous andconventional duties). How
iscustoms duties structure regulated andhow tariffs canbechanged? How isLithuania 'sMemorandum of
State Economic Policy being implemented?
Reply
Supplement totheanswer toQuestion 11(WT/ACC/LTU/2).
Lithuania ’scustoms duty structure isregulated bytheGovernment. Ifitbecame necessary, customs tariffs
could bechanged byaGovernment decision based ontheproposals ofministries, (reflected advice received from
enterprises) submitted totheMinistry ofEconomics, andalsotaking intoaccount international obligations (e.g.,
FTAs) andLithuania ’scommitments under theMemorandum ofEconomic Policy with theIMF. TheMemorandum
isbeing implemented according toplan: theGovernment byResolution NO.1271 (27September 1995) reduced
theaverage import duty tariff rateformajor food products (milk anddairy produce, butter, eggs, sausages and
sugar) from 35% to27.5% (these changes were submitted intheanswer toQuestion 86(WT/ACC/LTU/4)).
Lithuania ’scurrent customs tariff rates aresubmitted intheAnnex IIIofthisdocument.WT/ACC/LTU/7
Page 14
Question 194
Question 10ofWT/ACC/LTU/2 notes thatLithuania isconsidering appropriate ceiling tariff bindings.
What isthestatus ofthiseffort?
Reply
Lithuania iscurrently preparing aninitial offer onmarket access which mayinclude aproposal foraceiling
binding. Lithuania willdeposit theoffer with theWTO Secretariat assoon aspossible forreview byWTO members.
Question 195
InLithuania'sMemorandumonForeignTradeRegime(L/7551),sectiononImportregulations,Lithuania
listed itsagricultural tariffs. Why dothese goods have ahigh tariff rate? Does Lithuania plan tocomprehensively
bind itsagricultural tariffs?
Reply
Lithuania ’sMemorandum onForeign Trade Regime, including high tariff rates, wasprepared attheinitial
stage ofpolicy ontariffs. Now themajority ofLithuania ’sagricultural tariffs arelower. Heading fortheMemorandum
ofEconomic Policy with IMF thesome reductions were carried out(seetheanswer toQuestion 193).
Lithuania understands therequirements oftheWTO Agreement onAgriculture andplans tobind allofits
agricultural tariffs atanappropriate level bythetime ofitsaccession totheWTO.
Tariffs andReference Prices
Question 196
Please describe andprovide acopy ofGovernment Resolution NO.281 (28ofFebruary 1995), which
deals with theintroduction ofreference prices onimports.
Reply
TheGovernmentResolutionNO.281(28February1995)wassubmittedtotheWTOSecretariatinSeptember,
1995 already.
Under thisResolution there ispossibility forintroducing thereference (threshold) prices, butthismeasure
isnotapplied.
(c)Tariff preferences
Question 197
Intheanswer toQuestion 11(WT/ACC/LTU/2), Lithuania states that"autonomous duties" areapplied
forgoods from countries notbenefiting from FTA 'sorMFN treatment. What does thismeans? Dothese duty
rates fluctuates?WT/ACC/LTU/7
Page 15
Reply
Autonomous import duties areapplied tothegoods produced inthecountries andcountry groups with which
Lithuania does nothave trade agreements orwhich donotreceive MFN treatment asamatter ofLithuanian customs ’
policy. Forthelistofsuch countries, seetheanswer toQuestion 11(WT/ACC/LTU/2).
Therates oftariffs ofautonomous import duties areusually higher than theconventional andpreferential
tariffs. Therateofautonomous import customs tariffs canbechanged bythedecision oftheGovernment although
then donot“fluctuate ”.
Question 198
Please provide additional detail concerning precisely what products receive margins ofpreference under
thevarious FTAs asnoted intheanswer toQuestion 12(WT/ACC/LTU/2). When does theGovernment of
Lithuania anticipate completing theagricultural annex totheTrilateral FTA?
Reply
Lithuania hasdeposited totheWTO Secretariat copies ofallFTAs inforce. These copies provide additional
details totheanswer toQuestion 12(WT/ACC/LTU/2). Formore comprehensive information concerning theFTA
with EUseetheanswer toQuestion 200.
Inregard tocompletion oftheagricultural annex totheTrilateral (Baltic countries) FTA thiscontinues to
benegotiated.
Theadditional detail concerning margins ofpreferences under thevarious FTAs specified inAnnex III.
Question 199
Doanyagricultural goods currently benefit from duty drawback?
Reply
Duty drawbacks arenotapplied inLithuania.
(d)Non-tariff measures, quotas andlicensing system
Question 200
Inrelation toQuestion 12(WT\ACC\LTU\2), initsanswer regarding anFTA with theEU,Lithuania
states that “theFTA provides that theEUwillgrant increased tariff quotas foritsimports ofunprocessed
agricultural products from Lithuania". Could Lithuania provide, bytariff line, theduties andtariff quotas
they were granted bytheEU?
Reply
Lithuania hassubmitted thefulltextoftheFTA totheWTO Secretariat, including itsannexes concerning
inter aliathetreatment thattheEUaccords toimports from Lithuania. Inregard totheEU’sspecific treatment
ofimports ofagricultural goods from Lithuania, please seethetables below, which summarize themeasures inplace
forunprocessed agricultural products, processed agricultural products andfisheries products. Please seetheannexes
aslisted fortheexact treatment theEUaccords imports from Lithuania.WT/ACC/LTU/7
Page 16
Summary ofTreatment theEUOffers toImport ofAgricultural, Processed Agricultural andFishery
Products from Lithuania.
Unprocessed Agricultural Products
FTA
EUapplies:
Import duties
Import tariff quotas
Import tariff quotas forproducts
subject toa60%reduction ofthe
variable levy, theadvalorem duty
and/or thespecific duty ratesAnnex IX,Annex toAnnex IX
Annex X
Annex XI
Processed Agricultural Products
FTA
EUapplies:
Import duties
Import tariff quotas forproducts
setoutinAnnex IoftheProtocol
2(FTA)Annex 1oftheProtocol 2
Annex 2oftheProtocol 2
Fishery products
FTA
EUapplies:
Import tariff quotas Annex XIVWT/ACC/LTU/7
Page 17
Lithuania offers thefollowing general summary oftheAgreement. TheFTA entered intoforce on1January,
1995, andprovides forasix-year transitional period toliberalized trade. TheAgreement willresult in:
1.Theestablishment ofan[asymmetrical] freetrade zone forindustrial products, except fortextile products.
From theentry intoforce oftheAgreement, theEUeliminated allimport andexport duties, quantitative restrictions
andanymeasures having equivalent effect forproducts originating inLithuania. From entry into force ofthe
Agreement, Lithuania abolished alltrade restrictions formost industrial products import from theEU. However,
forsome sensitive products (seeAnnexes II-IV oftheAgreement orAnnexes IV-VI oftheGovernment Resolution
NO.205 (onenactment onFTA with EU-itissubmitted totheWTO Secretariat))Lithuania willmaintain import
(export) restrictions tobephased-out during thesix-year transition period forimplementation oftheAgreement.
2.Specific provisions ontrade intextile products. Both Parties have granted each other MFN status for
trade intextile products. However, inaddition, theEUprovides preferential treatment through tariff ceilings (duty
freequotas) forsome textile imports from Lithuania. These arelisted inAnnex VIoftheAgreement under “Import
tariff quotas ”.
3.Specific provisions onagricultural, processed agricultural andfisheries products. Both Parties have granted
each other MFN status fortrade inthese products. neither party maintains quantitative restrictions ontheimports
oftheother party. Also, theEUgrants additional concessions forsome imports from Lithuania -seeparagraph
onabove forreferences totheappropriate annexes, andLithuania grants additional concessions forsome imports
from theEU.Lithuania ’streatment ofimports ofbasic agricultural commodities from theEUisdetailed inAnnexes
XIIandXIII oftheAgreement (orAnnex IandAppendix toAnnex IoftheGovernment Resolution NO.205);
Lithuania ’streatment ofimports ofprocessed agricultural products isspelled outinAnnex 3oftheProtocol 2of
theAgreement (orAnnex IIoftheGovernment Resolution NO.205); andLithuania ’streatment ofimports offishery
products islisted inAnnex XVoftheAgreement (orAnnex IIIoftheGovernment Resolution NO.205).
Question 201
Inrelation toQuestion 13and14(WT\ACC\LTU\2). Lithuania says itisprepared toadhere toWTO
obligations regarding quantitative restrictions andthatithasnoimport quotas, only tariff quotas (with some
details onoperation). The answers arenotclear.
a)What istherationale forthetariff quotas that Lithuania proposes toretain? How willLithuania
administer itstariff quotas? What willbethequantities authorized bytheMinistry ofAgriculture (byHS
line) andhow arethese established? What arethetariffs below andabove thelevel ofthetariff quota?
b)"Majority oftariff quotas aregranted byway ofcompetition." Could Lithuania explain how this
works?
Reply
Supplement totheanswer ofQuestion 14(WT/ACC/LTU/2).
a)Under theGovernment Resolution NO.653 (8May 1995), Lithuania established twotypes ofimport
tariff quotas:
1.Tariff quotas which areapplied according totheprovisions ofsigned andenforced FTAs.
Azero tariff orother preferential (favourable) tariff shall beapplied, within specific tariff quotas, forthe
import ofproducts from countries with which Lithuania hasnegotiated FTAs. Theterms oftheparticular FTA
determines which products shall benefit from thetariff quotas. Iftheimports oftheFTA-covered products are
above thenegotiated tariff quotas, then theMFN trade regime (conventional duties) isapplied forthese products.WT/ACC/LTU/7
Page 18
Currently, such measures apply only under theFTA with theEU. TheFTA provides aconcrete schedule
ofimport volumes under thetariff rates within thequotas foreach year between 1995 and2000 (theAgreement
isexpected tobefully implemented by2000). Under thisschedule, import volumes must increase andtariff rates
must beslightly reduced. Inthisfirstyear ofimplementation oftheAgreement, theapplied tariff rates within the
tariff quotas areabitlower thanMFN (conventional) duties butnotatzero tariffs. Government Resolution NO.205
(8February 1995) hasbeen deposited with theWTO Secretariat andreproduced thisschedule ofquota increases
andthetariffs thatwillapply within thetariff quotas ateach stage.
2.General tariff quotas which areopened upwhen Lithuania faces ashortage ofparticular agricultural
andother goods ,andareused inminimal quantities.
These benefit imports from anycountry, whether ornotaparticular country hasnegotiated anFTA with
Lithuania.
These tariff quotas allow theimport ofvery limited agricultural commodities andafewindustrial products
under zerotariffs. Their application isintended tobetemporary; theyaregranted only fortheperiod when domestic
production ofacertain commodity orproduct, combined with imports attheMFN (conventional) tariff rate, isnot
sufficient tosatisfy domestic demand. IfLithuania determine thatsuch ashortage isimminent, then theamount
ofgoods tobeimport under thetariff quotas isdetermined andapublic tender isorganized.
Thelistofgoods currently benefiting from these general import tariff quotas appears inAnnex IVofthis
document. Information onspecific quantities imported under each tariff quota isbeing systematized andwillbe
made available inthefuture.
Thesystem foradministration ofthese general tariff quotas isprovided intheGovernment Resolution
NO.653 (May 8,1995), acopy ofwhich hasbeen deposited with theWTO Secretariat. Tosummarize: Import tariff
quotas areestablished bytheGovernment onthebasis oftheproposal from anappropriate Ministry andwith the
consent oftheMinistry ofEconomy. Thecurrent products benefiting from tariff quotas andareas ofMinistry
competence areprovided inAnnex IV.Theright tofillimport tariff quotas forproducts (other than ethyl alcohol,
rawmaterials foralcoholic beverages, irregular glass bottles andfurniture forships) areallocated bytheMinistry
ofAgriculture bycompetition through public tender. The procedures outlined intheanswer toQuestion 92
(WT/ACC/LTU/4) arefollowed. TheMinistry ofAgriculture grants aone-time authorization toacompany or
enterprise toimport under thetariff quota; theright isgranted fornolonger than oneyear.
Theright tofillimport tariff quotas fortheother products isnotgranted according tocompetitive procedures,
butisgranted automatically toallapplicants. Theright toimport rawmaterials foralcoholic beverages andirregular
glass bottles under thegeneral tariff quota isgranted bytheMinistry ofAgriculture; forethyl alcohol, bytheMinistry
ofIndustry andTrade; andforfurniture forships, bytheMinistry ofTransport. SeeAnnex IVforthespecific
HSnumbers forthese products.
TheMinistryofIndustryandTradegrantsrightautomaticallytocompaniestoimportethylalcoholfortechnical
uses under thegeneral tariff quota. Toobtain alicence toimport under thegeneral tariff quota, acompany must
submit anapplication, technical andeconomic substantiation ofitsneeds, andacontract signed withaforeign supplier.
Theamount oftheimport under tariff quotas isdetermined bytheneed oftheparticular company.
TheMinistry ofAgriculture grants rights automatically tocompanies toimport rawmaterials foralcoholic
beverages under thegeneral tariff quota. According totheLaw onExcise (12April 1994) anditsimplementing
regulations, special state enterprises which produce alcoholic beverages have theright toimport within general tariff
quota rawmaterials foralcoholic beverages forfurther processing. These special enterprises are:State enterprises
"Alita", "Anyksciu vynas", "Stumbras", andstate joint-stock companies "Vilniaus degtine", "Lietuviskas midus"
and"Taurages darzoves". TheMinistry ofAgriculture grants import rights automatically after presentation of
application andsales contract.WT/ACC/LTU/7
Page 19
TheMinistry ofAgriculture grants rights automatically tocompanies toimport irregular transparent glass
bottles under thegeneral tariff quota after presentation ofapplication andsales contract.
TheMinistry ofTransport grants rights automatically toimport special furniture forships. Currently, this
furniture isbeing imported bytheState Shipyard “Baltija ”foruseincompleting thebuilding ofnewships. This
tariff quota willbeterminated in1997 when domestic production offurniture isexpected tofulfill domestic needs.
b)Supplement totheanswer ofQuestion 91(WT/ACC/LTU/4).
Asexplained intheanswer toa)above, theMinistry ofAgriculture allocates rights toimport some agricultural
products under general tariff quotas through public tender. Alllegal entities have theright toparticipate inthe
competition irrespective ofthetype ofbusiness andtheform ofownership. During thepublic tender process, the
Ministry evaluates potential sources ofimports for:optimal quota realization conditions, quality, lowprice andother
guarantees. Thewinners ofthetenders willbethose entities which propose thebestconditions formeeting theabove
criteria. Thetender process isfully transparent: announcement ofgeneral tariff quotas areregularly published in
“Valstybes zinios ”(State news) formass circulation.
Question 202
Concerning theapplication andallocation oftariff rate quotas (TRQs):
a)Please listbyHSlineitem allgoods subject toatariff ratequotas, thedate oftheir implementation,
andexplain how licenses areused intheadministration ofpolicy.
b)Lithuania states intheanswer toQuestion 14(WTO/ACC/LTU/2) that the"majority" oflicenses
forTRQs aregranted byway of"competition". What kind ofcompetition? Which TRQs arenotgranted
bycompetition? What other means ofgranting theTRQs does theGovernment ofLithuania employ? Could
additional details beprovided, e.g.how arethetariff quotas publicized, how istheir allocation administered
andwhat istheir duration?
Reply
a)b) Seetheanswer toQuestion 201a)andb).
Question 203
Concerning Lithuania 'sanswer toQuestion 14(WT/ACC/LTU/2): Lithuania advises thattariff quotas
areused toimplement itsfree trade agreements, andtoprovide fortemporary import ofcertain products
which areinshort supply orfor"other reasons":
What circumstances arecovered under "other reasons"?
Reply
Seetheanswer toQuestion 201a).
Question 204
Could Lithuania advise Members ofthevolume ofthetariff quotas opened upforduty free entry
fortheproducts listed inLithuania 'sanswer toQuestion 14(paragraph 3)?WT/ACC/LTU/7
Page 20
Reply
Thedata onthismatter isbeing systematized now andwillbeavailable inthefuture.
Question 205
Thelistofproductsimposedwiththetariffquotasopenedupfordutyfreeentryisnearlyallagricultural,
including certain liveanimals, beef, butter, cereals (grains), malt notroasted, sugar forrefining, and"sugar
forspecial purposes". What iscovered by"sugar forspecial purposes"?
Reply
Thedefinition “sugar forspecial purposes ”covers sugar products which arelisted below according toHS
codes:
1701 91-sugar with aromatic orother additives;
1702 30-iso-glucose;
1702 40-glucose andglucose syrup, with fructose content between 20and 50%;
1702 90-other types ofsugar andsyrup (chemically pure maltose, iso-glucose, etc).
These products areused formedical purposes andforother special cases andthey arenotused directly
byconsumers orasrawmaterial forthefood industry inLithuania.
Question 206
Lithuania imposes quantitative restrictions onanumber ofimported products. Intheanswer toQuestion
13(WT/ACC/LTU/2), theGovernment ofLithuania states thatthese existing quantitative restrictions canbejustified
under GATT andWTO exceptions forhealth andsafety. Later, however, theanswer states thatLithuania isprepared
toadhere toWTO obligations onquantitative restrictions, implying that there issome question astothe
WTO-consistency ofthemeasures.
Reply
Lithuania didnotintend tointroduce anyquestion about theWTO-consistency ofthese measures; Lithuania
believes thatthey canbejustified under GATT andWTO exceptions forhealth andsafety.
Question 207
Arequotas being considered forimports ofproducts notalready under quota?
Reply
There arenoimport quotas (quantitative restrictions) currently applied inLithuania. Formore comprehensive
information seetheanswer toQuestion 208.
Question 208
Wedonotbelieve that allofthemeasures applied canbejustified under WTO forhealth purposes
(concerning totheestablishment ofalegal base forintroduction theright ofstate monopoly toproduce, sellWT/ACC/LTU/7
Page 21
andimport alcohol products andconcerning allagricultural products), northattherestrictions were applied
forthispurpose.
Would Lithuania supply alist,byHStariff line, ofallnontariff measures currently inplace, e.g.,
import bans, quotas, restrictive ordiscretionary licenses, orstandards orsanitary requirements, thereason
therestriction isapplied andtheprecise provision oftheWTO that justifies theapplication ofthebarrier?
Reply
CurrentlyLithuaniadoesnotapplyimportbansorquotas(quantitativerestrictions).Therearesomeprovisions
intheLaw onSugar andintheLaw ofAlcohol Control thatcould provide forquantitative restrictions, butthese
provisions arenotcurrently applied.
Foradditional information onimport licencing seetheQuestionnaire onImport Licensing Procedures, which
hasbeen prepared andwillbedeposited with theWTO Secretariat forcirculation toandreview byWTO members.
Concerning standards andsanitary requirements, please seeanswers inpreviously submitted documents
andthisdocument pertaining tothese areas.
Question 209
Please elaborate inmore detail onhow import licenses with respect tovodka andtobacco products
areapplied (answer toQuestion 91).
Reply
SeetheanswertoQuestion221ortheQuestionnaireonImportLicencingProcedures,whichhasbeenprepared
andwillbedeposited with theWTO Secretariat forcirculation toandreview byWTO members.
Question 210
Would Lithuania prepare aresponse forcirculation totheWorking Party oftheQuestionnaire on
Import Licensing Procedures?
Reply
TheQuestionnaire onImport Licensing Procedures hasbeen prepared andwillbedeposited with theWTO
Secretariat forcirculation toandreview byWTO members.
Question 211
Please give thereasons formaintaining quantitative restrictions onferrous andnon-ferrous metals.
Reply
Lithuania does notmaintain anyquantitative restrictions onferrous metals waste ornon-ferrous metals
andtheirwasteandscrap.Neitherimportnorexportissubjecttoquantitativerestrictionsorimportorexportlicensing.
However, licenses arerequired topurchase andremelt themetals, thelicense automatically conferring theright
toexport them. Acompany canobtain alicense topurchase anyquantity oftheabove mentioned goods. Export
ofwaste andscrap ofmetals generated inproduction sites orplants isnotsubject tolicensing.WT/ACC/LTU/7
Page 22
Thelicensing isautomatic andlicences areissued upon submission ofanapplication andthedocuments
required. Theduration ofalicense is1year.
Lithuania requires licenses topurchase andremelt these metals:
- tofight the criminal situation related with illegal acquisition ofmetals, and
- toenable metal scrap processing industries (about 20foundries andmetal remelting enterprises)
tosupply themselves with required materials; thisisofaparticular importance foracountry such
asLithuania which hasnoferrous ornon-ferrous ores ofitsown.
Question 212
Please describe precisely anactual order forexport andimport ofcultural objects inLithuania. Are
there anyrestrictions and/or prohibitions formaking such anexports andimports?
Reply
Therearenoprovisionsprovidingforthequantitativerestrictionsonimportofculturalobjectsinthelegislation
ofLithuania. Theirreversible export ofcertain cultural objects (some cultural values, unique pieces ofamber,
auto-moto technics which aremade before year 1950) arelicensed topreserve Lithuania 'scultural legacy.
Currently export andimport ofculture values areregulated bytheGovernment Resolution NO.927 (7
December 1992), "OntheApproval oftheProvisions ofExport andSending ofCulture Objects from theRepublic
ofLithuania andImport ofthem totheRepublic ofLithuania".
Itisprohibited toexport theantiquarian andmodern culture objects which arestored inthestate depositories
aswell asobjects included inthelistofhistorical andcultural monuments, thelistofnewly found historical and
cultural monuments, andthetemporary register ofhistorical andcultural monuments (orifexperts determine that
cultural values aretobeincluded intothetemporary register ofhistorical andcultural monuments).
Inorder toexport culture objects included intothelistsmentioned above, apermission oftheDepartment
oftheProtection ofCultural Objects totheMinistry ofCulture isrequired. Theculture objects, export ofwhich
requires apermission, cover: works offinearts, documentary andfeature films andphoto prints with their negatives,
architecturalpartsofbuildings,devicesforreligiouscult,somemusicinstruments,archaeologicalobjects,ethnographic
things, objects ofcollections, manuscripts, incunabula, books andpublications older than40years, things valuable
from theviewpoint ofthehistory ofengineering andtechnology, objects ofauto-motor machinery andmechanics
produced before 1959 aswell astheir parts.
Notable thatthenewLaw onProtection ofMovable Culture Values (23January 1996) ispassed recently,
andthisLawmostly settled theregister ofculture values butnotchanged theimport/export ofsuch values regulation.
Sugar
Question 213
Intheanswer toQuestion 13(WTO/ACC/LTU/2), Lithuania reports thatitscurrent regime prohibits
theimportation ofsemi-manufactured sugar andapplies threshold prices forsugar imports.
This does notappear tobeconsistent with WTO provisions. How does Lithuania plan tobring this
regime intoconformity with theWTO? When willthissector beliberalized? Aretheimport quotas referred
tohere tariff-rate quotas?WT/ACC/LTU/7
Page 23
Reply
Asmentioned intheanswer toQuestion 208, these provisions ontheLaw onSugar arenotcurrently applied.
Lithuania does notmaintain quantitative restrictions ontheimport ofsugar. Anyentity mayimport sugar bypaying
thecurrent customs tariff: 35-40% advalorem butnotlessthan0.75 LTL/kg. However, sometimes under thespecial
circumstances theimport tariff quotas isused (seebelow onthetariff ratequota system).
Theprovision oftheLaw pertaining tothreshold (reference) prices alsonotapplied. They cannot beapplied
because there isnoapproved variable levy system.
Lithuaniadoesapplytherequirementtoprocesstheimportedsemi-manufacturedsugaronlyaftertheprocessing
ofdomestic. This requirement isseasonal andisapplied toensure thatlocally-grown beets willbeprocessed.
Asapractical matter, thedomestic demand forsugar inLithuania isapproximately 120-140 thous tones/year.
Theproduction capacities oflocal processors using only domestic rawsugar would betoolowtomeet domestic
needs. Therefore, Lithuania issues tariff rateimport quotas forboth white (refined) andrawsugar areissued to
satisfy domestic needs.
Lithuania plans toliberalize itstrade regime onsugar. This may bepossible when domestic demand for
sugar canbefully metbydomestically-produced sugar.
Question 214
How isthequota arrangement onsugar imports consistent with Article XIoftheGATT 1994 and
theWTO Agreement onAgriculture?
Reply
Allquotas temporary applied forsugar imports aretariff ratequotas (atzero tariff) which donotrestrict
imports. Therefore, they areconsistent with GATT Article XIandtheWTO Agreement onAgriculture.
Question 215
Intheanswer toQuestion 13(WT/ACC/LTU/2) onnon-tariff measures Lithuania notes that under
theLaw onSugar ithasestablished measures toprotect producers ofsugar beets andsugar products. According
totheLaw Lithuania may introduce "import quotas" forsugar andsemi-manufactured sugar products; licenses
arenecessaryforsugarimports;andtheprocessingindustryisprohibitedfromtheimportingsemi-manufactured
sugar products until ithaspurchased sugar beets according toquantities setbytheGovernment.
Thisraisesanumberofissues.Pleaseexplainwhyquantitativerestrictionssuchascompulsorypurchasing
ofestablished quantity ofdomestic beets bysugar processors andthepossibility fortheGovernment ofLithuania
toestablish import quotas forsugar andsemi-manufactured sugar were introduced?
Reply
Ifdomesticsugarrefinersprocessedonlydomesticrawsugar,theywouldnotbeabletoproducewhite(refined)
sugar inanamount tosatisfy domestic demands. However, thecostofdomestic rawsugar ishigher than imported
sugar. Therefore, toensure thatdomestic sugar willbeprocessed, theLithuanian Government have imposed legal
measures which require domestic processors toexhaust thesupply oflocal rawsugar before being allowed toimport
rawandwhite (refined) sugar under import tariff ratequotas. These imports takeplace under zero tariffs andare
available only fortheamount ofsugar thatisnecessary tosatisfy thedomestic demand.WT/ACC/LTU/7
Page 24
Noquantitative restrictions areapplied ontheimport ofsugar (raw, white (refined) orforspecial purposes).
These sugars may beimported atanytime after paying theappropriate custom duties.
Question 216
Onthebasis ofinformation available torequirement ontheprocessing industry topurchase certain
quantities ofdomestic beet before itcanimport semi-manufactured sugar appears contrary toGATT Article
III(nationaltreatmentoninternaltaxationandregulation)andpossiblyalsotheAgriculturalAgreement(Article
4).Has thisrequirement been implemented? Please explain how thisconforms totheprovisions ofArticle
IIIoftheGATT1994concerningmixingrequirementsforimportation.HowdoesLithuaniajustifythemeasure?
Reply
Thedomestic processing industry isfreetoimport sugar including semi-manufactured sugar atanytime.
These imports would besubject tothenormal customs duties. Therequirement tofirstusedomestically-produced
sugar applies only forthose processors wishing tobenefit from tariff ratequotas.
Question 217
Weacknowledge Lithuania 'sundertaking (Question 13(WT/ACC/LTU/2)) that itwillbeprepared
toadhere totheWTO obligations onquantitative restrictions upon accession totheWTO. Lithuania alsonotes
that allthequotas mentioned initsanswers aretariff quotas.
However, asreferences inother answers suggest thismay notbethecase forsugar, Lithuania should
clarify what type ofquotas arebeing used onsugar;
Reply
Allquotas applied inLithuania aretariff quotas. Foradditional information onsugar, seetheanswers to
Questions 213-216.
Question 218
Article 7oftheLaw onSugar refers tothesaleofsugar import licenses; could itprovide details on
how these import (tariff?) quotas areallocated toimporters?
Reply
Theprovision ofArticle 7(theLaw onSugar) onlicencing cannot beapplied asitwould require additional
implementing procedures intheLaw onEnterprises which donotexist (licencing onsugar import isnotintroduced
inthelistoflicencing activity -seetheanswer toQuestion 52(WT/ACC/LTU/2)). Forinformation onimport tariff
quota allocation, seetheanswer toQuestion 201.
Question 219
Could Lithuania provide details onhow Article 8(crediting ofpurchase ofsugar beets) oftheLaw
onSugar operates, e.g.towhat extent willsugar beet processors begranted preferential seasonal credits?
How arethecredits administered?WT/ACC/LTU/7
Page 25
Reply
Sugar beet processors aregranted preferential seasonal credits only torepay sugar beet growers. Credits
ofthiskind arenotused intheproduction cycle; they assure thatgrowers ofsugar beets willreceive income from
sugar sales.
Theallocation ofseasonal credits provides forthesettlement ofpayments between sugar producers andbuyers
intime. This isnecessary because of:seasons andlimited period ofagricultural production; very short period of
buy-in ofagricultural products; andthelack ofworking (circulating) capital forsugar processing enterprises.
Question 220
Article 6oftheLaw onSugar provides fortheexceptions from Competition Law ontheapplying the
sanctions ontheunions ofsugar producers inLithuania. Please provide anarguments forpermitting amonopoly
forthesugar producers.
Reply
Themeasures mentioned intheArticle 6ofLaw onSugar were foreseen only fortheperiod during which
theproducers ’union wasestablished. Their aimwastoshorten andexpedite bureaucratic procedures. Atpresent,
theParliament hasreceived from theGovernment aproposal toamend orabolish thisclause.
Tobacco
Question 221
What isthestatus oftheLaw onTobacco Control which isbeing considered byLithuania 'sParliament?
What aretheprocedures forobtaining alicense toimport tobacco products?
Reply
Atpresent theLaw onTobacco Control isunder discussion intheSeimas (Parliament). Formore details
about thisLaw, seetheanswer toQuestion 222.
Formore comprehensive information concerning licencing oftobacco imports, seetheQuestionnaire on
Import Licencing Procedures, which hasbeen prepared andwillbedeposited withtheWTO Secretariat forcirculation
toandreview byWTO members.
Question 222
What aretherestrictions ontobacco imports (besides theexisting licenses) that might beprovided
bytheLaw onTobacco Control?
Reply
Thedraft ofnewLaw onTobacco Control (now under consideration byParliament) contains thefollowing
requirements [related tohealth safety]:
- every shipment oftobacco shall have aquality certificate issued bytheproducer;
- themaximum allowable content oftarandnicotine shall beindicated inLithuanian onthepackage.
- tobacco products shall carry labels;WT/ACC/LTU/7
Page 26
- only products whose contents ofdetrimental substances tohealth donotexceed those setby
Lithuanian standards may beproduced orimported.
Alcohol
Question 223
Lithuania maintains amonopoly ondomestic production, sales, and theimportation ofalcoholic
beverages, andapplies quotas toimports. Lithuania hasstated thatquotas areapplied totheimports ofalcohol
with thegoal ofreducing thelevel ofalcohol consumption.
The system described intheanswer toQuestion 15(WT/ACC/LTU/2), however, seems toindicate
that thelicenses areissued onadiscretionary basis.
a)Please indicate thecriteria applied todetermine who may beeligible foranimport license? Are
these criteria published? Under what procedures willlicenses begranted forimporting alcohol?
b)Please indicate onwhat basis anannual levy ischarged forissuing thelicense.
Reply
Asexplained intheanswer toQuestion 226, Lithuania does notmaintain amonopoly onproduction (except
forproduction ofhigh alcohol content beverages), saleandimportation. However, under theLaw onTrade, Article
4oftheLaw onAlcohol Control actually provides forpossibility tointroduce state trade monopoly inforce majeure
cases (war, famine, natural disasters), theprovision which alsoapplies tosome other products. Besides that, the
Lawprovides forpossibility tointroduce production andimport quotas forcertain alcohol products incasethenumber
ofpatients suffering alcoholic psychosis exceeds levels established bytheMinistry ofHealth andapproved bythe
Government, butsuch measures arenotintroduced, andmeanwhile, there arenoimport quotas noranyother
quantitative restrictions foralcoholic beverages.
Pursuant tothelimitations onthenumber ofenterprises fortheactivity ofalcoholic beverages ’importation,
currently, there are39private companies importing alcoholic beverages (strong alcoholic drinks andbeer), both
wholesalers andretailers, and7561 retailer trading imported anddomestic alcoholic beverages (this compares with
3000 retailers in1991). Alloftheabove companies were issued licenses toundertake thiskind ofactivity. Any
company registered within theterritory oftheRepublic ofLithuania isentitled togetalicense foroneyear period
passing theprocedure ofpublic tender, regardless oftheform ofitsownership.
a) Please notethattheoldcriteria forobtaining alicence assetbytheLaw onAlcohol Control (amount
ofinitial capital could notbelessthan 1mlnLTL; theimported vodka brand ’snumber inthelistofTOP 100
announced bytheInternational Association ofAlcoholic Beverages Producers; andproposed biggest amount ofstamp
taxaswasindicated earlier intheanswer toQuestion 91(WT/ACC/LTU/4)) were applied only forvodka import
andhave now been changed.
Thenew order forobtaining alicence toimport anyalcoholic beverages (including beer) willenter into
force on1July 1996, andincludes such thefollowing criteria forobtaining alicence:
1. taxes forprevious year must bepaid;
2. theexperience ofentities intheimportation ofalcoholic beverages;
3. quality parameters ofalcoholic beverages;
4. entity ’scontributions tocharity andsupport forprevious year;
5. entity ’sobservance oftheestablished order forimport andwholesale trade ofalcoholic beverages.WT/ACC/LTU/7
Page 27
Allthelicenses areissued bythewayofacompetition (public tender). Therules and terms ofthetender
areapproved bytheGovernment. They arepublished in“Valstybes Zinios ”(State News). Anycompany registered
intheRepublic ofLithuania canparticipate inthetender. Theresults ofthetender arealsopublished inthesame
newspaper.
Formore comprehensive information please seetheQuestionnaire onImport Licencing Procedures, which
hasbeen prepared andwillbedeposited with theWTO Secretariat forcirculation toandreview byWTO members.
b) Taking intoconsideration thatalcohol, asitisconsumed inourcountry, isdetrimental both for
human health andtheenvironment (through pollution bycans andempty bottles), Lithuania introduced anannual
levy. Itispaid tothestate budget andismeant forfunding health andrehabilitation programs, theeducation of
community, collection ofwaste ofalcoholic beverages anditsrecycling, etc.
Theannual levy isdifferentiated depending ontheethyl alcohol content ofbeverages.
Question 224
Does theprovision allowing theestablishment ofastate monopoly toproduce, sellandimport alcohol
products mean that licenses willnolonger beissued toother alcohol importers?
Reply
Thestate monopoly hasnotbeen established (except forproduction ofhigh alcohol content beverages).
Theprovisions oftheLaw onAlcohol Control permit only 10licences (foroneyear) foralcohol (including
beer) import peryear. Therefore inthisyearaccording theLawonly 10licences forimportation ofalcohol (including
beer) import willbeissued. Currently anamendment isunder preparation thatforbeer import could beissued
additional 10licences.
Question 225
What areLithuania 'sarguments topermit animport ofstrong alcohol beverages only under thelist
of"ahundred ofbestalcohol producers intheworld"? DoLithuania 'sdomestic strong alcohol beverages satisfy
thesame requirements were used tomake that list?
Reply
After Lithuania opened itsborders asubstantial inflow oflegally orillegally imported alcohol beverages
took place. This resulted incases oflowprice andlowquality imports andnumerous cases ofcounterfeited products
imported from non-existing companies, thusendangering thehealth ofconsumers. Toovercome this,theGovernment
resolved toimport high quality alcohol products from thecompanies included onthelistofthehundred best
manufacturers.
Thesame Lithuanian quality requirements apply forimported beverages aswell asdomestically-produced
beverages.
Question 226
Could Lithuania provide thearguments forestablishing thestate monopoly ondomestic production,
sales, andtheimportation ofalcoholic beverages, astheLaw onAlcohol Control provides forsuch apossibility.WT/ACC/LTU/7
Page 28
Reply
Lithuania hasnotestablished astate monopoly forthedomestic production, sales orimportation anddoes
notplan currently tointroduce such amonopoly. Lithuania does require internal licensing conferring theright to
companies toundertake thisactivity. State monopoly hasbeen established only forproduction ofstrong alcohol
products with ethyl alcohol content byvolume above 22%, duetoexcessive consumption ofthiskind ofdomestic
productsandtheirassociatedconsequences.Governmentregulationbecameinevitableinthissectorbecauseofstatistics
indicating threatening tendencies among theLithuanian population. Thenumber ofpersons suffering from alcoholic
psychosis isincreasing. In1994 thisnumber increased 5.1times incomparison with 1990. Thenumber ofpersons
suffering from chronic alcoholism isalsoincreasing. Statistics of1994 indicate a29% increase innumber ofthese
patients incomparison with 1992.
Question 227
Isalcohol which isproduced domestically also subject tothesame restrictions asimported alcohol?
Ifnot, why not?
Reply
Yes, alcohol produced domestically issubject tothesame regulations asimported products. This applies
tolicense acquisition terms, tender (competition) procedures, excise andVAT taxes, quality, health andsafety
requirements, etc.
Question 228
How does theGovernment ofLithuania determine thequantity ofalcohol tobeimported tosetthe
quota?
Reply
Lithuania does notapply alcohol import quotas noranyother quantitative restrictions.
Color Copying Equipment, Radioelectronic andElectric Equipment
Question 229
Lithuania states that itapplies quantitative restrictions onimports ofcolor copying equipment for
reasons of"human health andsafety".
a)What arethe"special devices" noted inQuestion 13whose import isalso restricted forhealth and
safety reasons?
b)What health/safety concerns does theGovernment ofLithuania have about theimportation ofcolor
copying equipment andradioelectronic andelectric equipment? What specific products fallunder thelatter?
c)Which government agencies areresponsible foradministering these specific restrictions orgranting
import licenses, ifany?
Reply
a)Lithuania does notimpose quantitative restrictions ontheimport ofspecial control andsecurity devices,
color multiplication (copying) machinery, orradioelectronic andelectric equipment which mayspread radio waves.WT/ACC/LTU/7
Page 29
However, because ofnational security concerns, forallmentioned products Lithuania requires importers toobtain
permission from theappropriate Ministry orstate service.
“Specialdevices”arespecialcontrolandsecuritydevices,equipmentforcriminologistsanddevicesofteaching
police employees. They may beimported only with thepermission oftheMinistry oftheInterior.
b)Therequirement toobtain thepermission oftheMinistry oftheInterior forimport ofcolor multiplication
(copying) equipment wasestablished tolessen thechance ofcrimes related totheforgery ofdocuments, securities
andthenational currency (this wasexplained intheanswer toQuestion 99(WT/ACC/LTU/4)).
TherequirementtoobtainthepermissionoftheStateInspectionofElectricAppliancestoimportradioelectronic
andelectric equipment which may spread radio waves isforgeneral national security reasons.
c)Seetheanswers tothisQuestion above.
(e)Customs Valuation
Question 230
HasLithuaniaprovidedthesecretariatwithacopyofitsdecision"OntheOrderofCommoditiesCustoms
Evaluation" (NO.449, 16June 1993)?
Reply
No,butLithuania describes thisorder intheQuestionnaire onCustoms Valuation, and, inanycase, the
definitive document forcustoms valuation purposes willbetheCustoms Valuation Chapter ofthedraft Customs
Code which currently isunder consideration oftheSeimas (Parliament).
Question 231
Please describe ingeneral terms theprovisions ofLithuania 'sregulations oncustoms valuation. In
Lithuania 'sview, does this legislation fully comply with theprovisions oftheWTO Agreement onthe
Implementation ofArticle VII?
Reply
Themain principles ofcustoms valuation arespecified inArticle 10oftheLaw onCustoms Tariffs (27
April 1993). Those principles areimplemented inaccordance with Government Resolution No.449 (16June 1993)
under which theprimary basis forcustoms value istransaction value, thatis,theprice actually paid orpayable
forthegoods sold forexport tothecustoms territory ofLithuania. Indetermining thecustoms value, there shall
beadded totheprice actually paid orpayable fortheimported goods: costs oftransportation, insurance, loading
andhandling oftheimported goods, commissions, costs ofcontainers andpacking, royalties andlicense feesrelated
tothegoods being valued, etc.
Where thetransaction value cannot beaccepted (i.e.inacaseofsalebetween related persons), thecustoms
value istobedetermined byapplying thefollowing valuation methods sequentially:
1. method ofthetransaction value ofidentical goods;
2. method ofthetransaction value ofsimilar goods;
3. method ofthevalue based ontheprice atwhich theimported goods oridentical orsimilar imported
goods aresold within thecustoms territory ofLithuania;
4. method ofthecomputed value, consisting ofthesum offabrication costs, anaverage amount for
profit andgeneral expenses, etc.WT/ACC/LTU/7
Page 30
Theorder ofapplication ofmethods 3and4shall bereversed iftheimporter ordeclarant sorequests.
Lithuania ’slegislation ingeneral complies withtheprovisions oftheWTO Agreement ontheImplementation
ofArticle VIIoftheGATT, butsome ofitsmore specific provisions aremissing. However, theprovisions ofthe
Chapter on"Customs Valuation" ofthenewdraft Customs Code nowbeing considered bytheSeimas (Parliament)
willfully comply with theprovisions oftheWTO Agreement ontheImplementation ofArticle VIIoftheGATT.
Lithuania willsubmit details intheresponse totheQuestionnaire onCustoms Valuation which hasbeen
prepared andwillbedeposited with theWTO Secretariat.
Question 232
Would Lithuania prepare aresponse forcirculation totheWorking Party oftheQuestionnaire on
Customs Valuation?
Reply
This Questionnaire isbeing prepared andwillbedeposited with theWTO Secretariat forreview byWTO
members.
(f)Rules ofOrigin
Question 233
InitsMemorandum onForeign Trade Regime (L/7551) Lithuania states that "common regulations"
regarding origin areused fortheapplication offree trade agreements with Finland, Sweden, Norway,
Switzerland, Latvia andEstonia. What arethese regulations? Please describe how origin isdetermined for
customs purposes.
Reply
Common regulations regarding origin inLithuania 'sMemorandum onForeign Trade Regime (L/7551) mean
thatthesame rules oforigin, i.e.,identical Protocols concerning thedefinition oftheconcept of"originating products"
areused infreetrade agreements (FTA 's)between Lithuania andEstonia, Latvia, European Union andNorway
andSwitzerland (and willapply fortheFTA with EFTA once itisenforced).
Inorder tofacilitate export ofgoods originating inLithuania totheabove mentioned countries andissue
ofcertificates oforigin totheexporters ofthose goods inaccordance with theprovisions oftheparticular FTA
internal procedures have been established inLithuania.
Theorigin ofgoods isdetermined inaccordance with listrules applied forallproducts. Inorder tofacilitate
thecommunication ofinformation regarding theorigin ofproducts itwasstipulated bytheGovernment Resolution
NO.110 (24February 1993) thatdeclaration ofpreferential origin made bysupplier ofmaterials orproducts and
statement drawn upbyanindependent expert authorized todetermine whether therules oforigin areapplied correctly.
These declarations shall besubmitted bythesupplier foreach consignment oftheproducts concerned and
attached tothecommercial invoices orother commercial documents containing detailed description ofgoods sufficient
fortheir identification. Regular supplier ofproducts may provide asingle declaration orstatement drawn upby
theexpert tocover shipments ofthesame product aslong astheorigin oftheproduct remains unchanged.
Customsauthoritiesmayrequestexporterstoproduceanysubstantialdocumentationnecessaryforverification
oftheoriginating status ofproducts.WT/ACC/LTU/7
Page 31
(h)Standards andcertification
Question 234
Concerning Lithuania 'sanswer toQuestion 97(WT/ACC/LTU/4). When does theGovernment of
Lithuania intend toconform itssystem ofstandards with therequirements oftheWTO under theAgreement
onTechnical Barriers toTrade?
Reply
Lithuania hasreviewed therequirements oftheWTO Agreement onTBT concerning non-discriminatory
application ofmeasures; adoption oftechnical regulations, standards andconformity assessment procedures;
establishment ofanenquiry point, etc., andwillincorporate them intotheLithuanian Standards System asitcontinues
toevolve.
Inregard tothesecond point mentioned above, theLithuanian Standards Board hasdrawn upalong-term
priority program inwhich preference isgiven tointernational andEuropean standards.
TheMinistry ofForeign Affairs iscoordinating thepreparation oftechnical regulations according toEU
Directives. AndLithuania plans tostartimplementing theprogram in1996. Atthesame time, Lithuania willreceive
technical assistance from ISO/DEVCO onthepreparation oftechnical regulations.
More information onthisprogram willbeprovided intheresponse totheQuestionnaire onTBT.
Question 235
What steps hasLithuania taken toestablish procedures forthepublic notice andcomment ondraft
regulations provided forintheWTO Agreements onTechnical Barriers toTrade and onSanitary and
Phytosanitary Measures?
Reply
Asafirst step, starting inJanuary 1996, theLithuanian Standards Board intends topublish information
ondraft technical regulations, standards andconformity assessment procedures initsPeriodical Bulletin. This
information willinclude titleandcontact addresses. Some information onother issues mentioned inArticle 10of
theTBT Agreement alsomay beobtained from theLithuanian Standards Board.
Asasecond step, inthefirst quarter of1996, theLithuanian Standards Board must present proposals to
theGovernment onprocedures fortheprovision ofpublic information ondraft technical regulations, standards and
conformity assessment procedures andtheestablishment ofanEnquiry point toallow fortheexchange ofinformation
onthese issues. This initiative isinconnection with theimplementation ofEUDirective 83/189 butalsoshould
result intheformation ofanenquiry point asrequired under theWTO TBT Agreement.
Lithuania currently does notprovide procedures forthepublic notice andcomment ofdraft regulations on
sanitary andphytosanitary measures butwillinstitute such procedures inthefuture.
Question 236
InitsanswertoQuestion20(WTO/ACC/LTU /2),Lithuaniastatesthatforeignersareallowedtocomment
ontechnical regulations "when [theregulations] arenotconsistent with international norms."WT/ACC/LTU/7
Page 32
Please indicate how thispractice conforms totherequirements oftheWTO Agreements onTechnical
Barriers toTrade andonSanitary andPhytosanitary Measures, which donotlimit theright ofcomment
inthismanner.
Reply
Please seetheanswer toQuestion 235. Lithuania plans toallow comment onallmeasures, notjustthose
which arenotinconformity with international norms.
Question 237
Please describe thescope and thenature ofLithuania 'stechnical regulations thatarenotconsistent
with international norms andwhat steps Lithuania istaking toreplace them with internationally recognized
standards.
Reply
Seetheanswer toquestion 234.
Question 238
Concerning theanswer toQuestion 22(WT/ACC/LTU/2), does theGovernment ofLithuania envisage
that foreigners would beable tocomment onthedevelopment ofdraft voluntary standards.
Reply
Yes, please seetheanswer toQuestion 235.
Question 239
Could Lithuania provide more precise clarification onitssystem ofvoluntary standards?
Reply
Supplement totheanswer toQuestion 22(WT/ACC/LTU/2).
Standards arechosen voluntarily fortheir application except when theGovernment orother state governing
institution declares them asmandatory foracertain field ofactivity.
Two categories ofvoluntary standards aredetermined inLithuania: Lithuanian standards andcompany
standards. Standards aredrafted bytechnical committees andapproved bytheLithuanian Standardization Office.
Usually Lithuanian standards areadopted inaccordance with international orEuropean standards. Where there is
nosuitable international orEuropean standards, aLithuanian standard orcompany standard may bedrafted. For
standards, only such provisions aredefined thatareaccepted bytheparties concerned.
Question 240
Inrelation toQuestion 22(WT\ACC\LTU\2), which agency oragencies have theresponsibility for
publishing voluntary standards?
a)Which agency isresponsible forassessing conformity with voluntary standards?WT/ACC/LTU/7
Page 33
b)Isthere aplan toadopt theCode ofGood Practice inthearea ofvoluntary standards asrequired
intheAnnex 3oftheWTO TBT Agreement?
c)Isthere aplan forimplementing thenotification requirements forvoluntary standards asshown
intheAnnex 3oftheWTO TBT Agreement?
Reply
TheLithuanian Standards Board hasexclusive competence forpublishing thestandards.
a)TheLithuanian Standards Board isthenational accreditation body. Itisresponsible foraccrediting testing
andcalibration laboratories, products, quality systems, personnel certification bodies andinspection bodies in
accordance with EN45000 series standards.
b)TheLithuanian Standards Board isplanning toadopt theCode ofGood Practice. Ithasbeen translated
intoLithuanian. However, work isnotcompleted asLithuania isawaiting theresults oftheWTO comparison of
theISO/IEC Guide 59andAnnex 3oftheWTO TBT Agreement.
c)Notification requirements willbeimplemented after theadoption ofISO/IEC Guide 59orAnnex 3of
theWTO TBT Agreement.
Question 241
InrelationtoQuestion20(WT\ACC\LTU \2)isthereaplanforestablishinganEnquiryPointasrequired
bytheWTO TBT Agreement?
Reply
Yes. Please seetheanswer toQuestion 235.
Question 242
What istheprocess forregistration ofpharmaceutical products? Does Lithuania recognize theapproval
ofpharmaceuticals granted bythecountry oforigin?
Reply
Drugs andpharmaceutical substances must beregistered prior toimport andusethem inLithuania. With
exceptions either forparticular cases orforscientific experiments andclinical trials, thetemporary permission to
import andusedrugs andpharmaceutical substances registered inother countries isobtained from theState Medicines
Control Agency (SMCA).
Quality, efficacy andsafety control ofthedrugs andpharmaceutical substances isassigned totheSMCA ’s
Bureau ofDrug Registration (BDR). Only themanufacturer ofadrug orhisauthorized representative (preferable
domiciled) may apply forthedrug registration. Theapplication must include: asummary ofthedossier; general
information about thepharmaceutical product orproducts; documentation within thescope oftheWHO Certification
Scheme onthe Quality ofPharmaceutical products moving inInternational Commerce (Part I);
chemical-pharmaceutical-biologicaldocumentation(PartII);pharma-toxicologicaldocumentation(PartIII);andhuman
pharmacological-clinical documentation (Part IV). Also adated summary ofexperts evaluation ofimpurity, and
onanimal andhuman studies should beincluded. Forthepharmaceutical products which areconsidered tobe
essentially similar, chemical-pharmaceutical andbioavailability/bioequivalence dataisrequired. Information aboutWT/ACC/LTU/7
Page 34
thepharmaceutical product formedical staff (prepared onthebasis oftheSummary ofProduct Characteristics) and
apatient leaflet inLithuanian should alsobepresented. Incertain cases supplementary documents mayberequested.
Theapplication form with appendixes (Part II-intwocopies) must besubmitted inoneofthefollowing languages:
Lithuanian, English, German orRussian.
Inaddition totheapplication, 5units ofanunpacked sample ofthepharmaceutical product tobemarketed
anddrug standard orplain substances insufficient amount (1-5grams) tomake afullassay must beprovided.
Also, verification ofcontrol methods used bythemanufacturer including acertificate ofquantitative andqualitative
analysis, must beprovided. Theestablished registration feeinUSdollars should bepaid bythemanufacturer or
hislegal representative foreach dosage form andstrength:
1. First preparation (new active substance) 1500 USD;
2. Different dosage form ordifferent strength 600USD;
3. New indication ornew combination ofknown active substance
oressentially similar drug 900USD;
4. Natural remedies ormedical products forself-medication (topical use) 600USD.
Notlessthan ahalfofthesum mentioned above should bepaid when theapplication form issubmitted.
Thefeeorthepartofthefeewillnotbereturned iftheapplication isrejected. Thepartofthefeemust bepaid
after theapproval. Thefeecanbereduced bytheSMCA.
Thedrug orpharmaceutical substance approval willtakeupto6months excluding thetime needed tosubmit
additional and/or supplementary documents bytheapplicant. Theregistration authorization isvalid for5years.
Themanufacturer commits himself toinform theBDR attheSMCA about allthechanges concerning theregistered
drug during themonth. Inthecaseofurgent safety restrictions, thatinformation should bepresented immediately.
Toextend theregistration, anewapplication must besubmitted twomonths before theexpiration ofthe
original registration period.
Concerning approval bycountry oforigin:: Lithuania recognizes approval ofpharmaceuticals granted by
country oforigin. Formore detail seeparagraph 2above.
Question 243
Concerning theverification procedures referred toinQuestion 27(WT/ACC/LTU/2). Aresimilar
domestically produced goods subject tothesame verification procedures? Aredomestically produced vehicles
subject tothesame inspection requirements?
Reply
Verification procedures concerning theanswer toQuestion 27arenotyetapplied todomestically produced
goods. Butfrom 1July 1996 asimilar order forimported anddomestically produced goods willbeinforce.
Domestically produced vehicles arenotsubject tothesame inspection requirements because Lithuania is
notproducing vehicles -allareimported. However, ifLithuania does begin toproduce vehicles -theywillbesubject
tothesame inspection requirements.WT/ACC/LTU/7
Page 35
(i)Sanitary andphytosanitary measures
Question 244
Concerning theanswer toQuestion 30(WT/ACC/LTU/2), please confirm that Lithuania initseffort
toconform itssanitary andphytosanitary measures with therequirements oftheWTO, intend toestablish
procedures forpublic notice andcomment forallsuch measures.
Reply
Lithuania plans toestablish procedures forpublic notice andcomment forallofsuch measures.
Foradditional information seetheanswers toQuestions 235and236.
Question 245
Seeds Standards andInspection (theanswer toQuestion 31.1 (WT/ACC/LTU/2): Lithuania states that
allnational standards make reference totheapplication of"international" norms.
a)Which international norms arethese? Arethey norms outlined byCodex Alimentarious, Office
ofInternational desEpizooties, theEuropean Plant Protection Organization?
b)Several references aremade totheGOST system. Please explain how thissystem works andhow
isitconsistent with international standards?
Reply
a)Thereference to“international norms ”isgeneral innature butLithuania intends ittoinclude thestandards
promulgated bythese international bodies.
b)Supplement totheanswer toQuestion 31(WT/ACC/LTU/2).
TheGOST system isthesame system aswasmaintained during soviet times. GOST standards arenot
internationally recognized. However, thepresent system inLithuania provides theflexibility forproducers tochoose
from various types ofstandards -Lithuanian National Standard, GOST, EN, ISOorother international standards
-iftheydonotcontradict regulations oftheRepublic ofLithuania. Asanexception hygiene standards areobligatory.
Question 246
Feed Standards and Inspection (theanswer toQuestion 31.2 (WT/ACC/LTU/2)): Lithuania notes
that theState Veterinary Agency hastheauthority toinspect and"control" feed production.
How andwhy does theState Veterinary Agency control feed production? Does thiscontrol include
quantities produced, prices, and/or distribution?
Reply
TheState Veterinary Agency inspects andcontrols thefeedindustry todiagnose diseases ofanimals, including
animals used foragricultural activities, andtoassess thequality oftheir feed andwater ”.
Veterinary control isperformed bytheNational Veterinary Laboratory andCounty branch oftheState
Veterinary Agency.WT/ACC/LTU/7
Page 36
Veterinary control islimited toquality offeed; itdoes notinclude quantities, prices ordistribution. Anew
draft regulation onveterinary andhealth requirements forfeedandrawmaterial forfeedwaselaborated which includes
thisdefinition of“control ”.
Question 247
Horticultureinspection(theanswertoQuestion31.8.2(WT/ACC/LTU /2)).TheGovernmentofLithuania
notes thatLithuanian standards areapplied forthesaleoffruits andberries. Please provide some illustrative
examples ofthese standards andexplain how they areonlinewith international standards?
Reply
Lithuanian National Standards andGOST standards areapplied forthesaleoffruits andberries inthelocal
market.
The sizeof(I)sortcherries according toGOST 21921-76 -notlessthan 15mm -issimilar toEEC
Commission Regulation NO.899/87 class (III). However, GOST includes anadditional lower sort(II);under the
class (II)description, thesizeofcherries must benotlessthan 12mm.
According toGOST standards there canbenotmore than 3%cherries with thedamaged peel insort(I)
andnotmore than 5%inclass (II).According toEEC Commission Regulation NO.899/87, there canbenotmore
4%cherries with damaged peels.
Lithuania alsoisgathering information oninternational standards inthese areas.
Question 248
Inrelation toQuestion 31and32(WT\ACC\LTU\2). Lithuania states several times that certain of
their measures conform totheEUrequirement (additives: Question 31.8.3; animal health laboratory methods:
Question 32;plant protection requirements: Question 32)and, though notstated, itisimplied thatbyadopting
anEUstandard they areinconformity with theSanitary andPhytosanitary Agreement.
Article 3oftheAgreement states thataninternational standard ispresumed tobeconsistent with the
Agreement. EUestablished standards arenottheinternational standards (e.g. Codex, OIE, IPPC). IfLithuania
adopts anEUstandard they stillmust complete ariskassessment, asrequired byArticle 5oftheWTO SPS
Agreement, toshow how themeasure meets their appropriate level ofprotection. Also, Question 32isunclear;
thequestion assumes that ifLithuania applies theEUstandard that they willthen beinconformity with the
WTO SPS Agreement.
Reply
Lithuania appreciates thisclarification ofitsresponsibilities regarding theWTO SPSAgreement. Lithuania
plans tocomplete riskassessments forallmeasures which donotconform with international standards.
(j)Other
Question 249
Initsanswer toQuestion 33(WT/ACC/LTU/2), Lithuania indicates that itintends tomaintain the
ability toapply anti-dumping orcountervailing duties orsafeguard measures consistent with WTO provisions.WT/ACC/LTU/7
Page 37
Does Lithuania have inplace thedomestic legislation needed toenact such measures? Ifso,please
describe itsprovisions with special reference totheprovisions oftheWTO Agreements onAnti-dumping and
onSubsidies andCountervailing Measures.
Reply
Supplement totheanswer toQuestion 102(WT/ACC/LTU/4).
ThenewLaw onCustoms Tariff iscurrently under preparation. Theoneofaims istoinclude provisions
onanti-dumping andcountervailing duties inthenewLaw infullconformity with WTO requirements. Under the
Government decision thedraft ofthisLaw hastobeprepared till1May 1996.
Question 250
Lithuania hasnotoutlined onwhat basis itwilloperate itsfuture trade remedies regime (itindicates
thatitdoes notusetrade remedies). Could Lithuania please specify when itplans toenact legislation governing
itsfuture anti-dumping, countervailing duty andsafeguard regimes?
Reply
Seetheanswer toQuestion 249.
2.Export regulation
(a)Customs tariff nomenclature, types ofduties, customs tariff structure onmain customs tariff groupings
(b)Export restrictions andprohibition
Question 251
IntheanswertoQuestion34(WT/ACC/LTU /2),Lithuanialistscertaincommoditiesthatarenotallowed
tobeexported. Please explain why theexports ofthese items isprohibited (temporary ornot), especially red
clover seeds, rawhides andskins, unprocessed pine andbirch). What istherationale forprohibiting theexport
ofcertain goods until May 1,1996?
Reply
In1993and1994,redcloveryieldwaslowanddomesticdemandwasnotsatisfied.Inresponse,theLithuanian
Government putaprovisional banonexports ofredclover seed tillMay 1996.
However, agricultural companies, private farmers andother landusers harvested abumper cropofredclovers
in1995. Inresponse, theMinistry ofAgriculture made aproposal totheMinistry ofEconomics tosubmit tothe
Government anew resolution fortheabrogation ofthebanonredclover seed exports.
Lithuania hastemporarily prohibited theexport ofrawskins toguarantee sufficient inputs forthenational
skins processing industry.
Lithuania prohibits theexport ofrawpine inresponse tomassed “drooping ”offir-trees inLithuania. This
hasresulted inanusually large fellofthefir-trees. Theprohibition wasimposed toencourage theexport offir-treesWT/ACC/LTU/7
Page 38
instead ofwood from pine-trees because thedomestic market forthefir-trees isovercrowded. Insimilar fashion,
theexport ofrawbirch isprohibited toresponse tomass “drooping ”ofsome sorts ofdeciduous trees.
Question 252
Intheanswer toQuestion 36(WT/ACC/LTU/2), Lithuania states that theexports licenses areused
to"control theselection ofexporters ofethyl spirit toavoid ostensible export when theappropriate taxes are
avoided." This appears that theGovernment selects which companies may export.
Please explain how such licenses canbeacquired? Arethere published criteria? Does theGovernment
ofLithuania deliberately limit thenumber ofpossible exporters andifso,why?
Reply
Toexportethylalcohol,permissionfromtheMinistryofFinanceandtheMinistryofAgricultureisnecessary.
Toapply forpermission enterprises submit totheMinistry ofAgriculture anapplication forexport ofethyl
alcohol andacopy ofacontract with aforeign partner which must include theanticipated amount ofthesaleand
itsintended. TheMinistry ofAgriculture issues permission toexport; thisispassed ontotheMinistry ofFinance,
which issues thefinal permission toexport ethyl alcohol under theindicated amount.
Any enterprise may obtain permission toexport ifsuch enterprise canfulfill thenecessary requirements
anddemonstrate atrueneed toexport.
Question 253
IntheanswertoQuestion36(WT/ACC/LTU /2)theGovernmentofLithuaniastatesthat,asatemporary
measure asof1995, theexport ofwheat, ryeandfodder cereals canbecarried outonly with quotas granted
bytheMinistry ofAgriculture.
Please explain why thismeasure isneeded. How does thismeasure operate? When areexport quotas
granted andtowhom? What isthestatus forthismeasure forthecoming year(s)? Does theGovernment of
Lithuania intend toemploy export quotas forwheat, rye, fodder cereals orother likeproducts inthefuture
andifso,why?
Reply
Duetopoor harvest andscarcity ofgrain, from 5July1995 theGovernment haslimited theexports ofgrains,
flour, andcompound feed. This temporary measure isintroduced toprotect theinterests ofdomestic consumers.
Export ispossible only within export quotas issued bytheMinistry ofAgriculture.
Anapplicant toexport under thequota hastopresent: anapplication form, asales contract, certificates
from theCustom Department andTaxOffice, andacopy ofentity registration. TheMinistry ofAgriculture looks
atthefinancial situation oftheparticular entity, among other criteria, indeciding anallocation ofquotas.
Inthefuture, such temporary measures willbeapplied only inemergencies: when there isascarcity of
supplies offlour orbread toconsumers, andsupplies ofcompound feed tothelivestock sector.WT/ACC/LTU/7
Page 39
IV.OTHER POLICIES AFFECTING FOREIGN TRADE
1.Industrial policy
Question 254
Please provide more precise clarification onLithuania 'sanswer toQuestion 38(WT/ACC/LTU/2)
considering thecriteria used toselect "potentially competitive" companies. Arethere anyregulations forsuch
theselectioninLithuania?Whichcriteria,apartfromthe"shareofexportsinthetotalproductionofenterprise",
areconsidered inselecting potentially competitive enterprises?
Reply
There arenoregulations fortheselection ofsuch companies noranycriteria fordetermined competitiveness.
Theconcept "potentially competitive companies" implies agroup ofeconomic entities whose production isand
willcontinue tobeindemand indomestic andforeign markets.
Question 255
Intheanswer toQuestion 37(WT/ACC/LTU/2) Lithuania listed themeans ofgovernmental support
forandprotection of"potentially competitive" companies. Doallcompanies from branches ofpriority benefit
from governmental assistance considered oronly these "potentially competitive" companies?
Reply
Allcompanies from branches ofpriority withaproperly prepared business planareeligible forgovernmental
assistance. Apart from thepreviously mentioned support Government Resolution NO.1026 (21July1995) provides
partial taxconcessions fornewindustries producing medicine andmedical equipment, equipment fordisabled persons,
veterinary preparations andmeteorological andenvironmental measuring equipment.
2.Agricultural policy
Question 256
Could Lithuania provide ashort description ofthemain directions ofitsagricultural development
policy?
Reply
Agriculture hasanexceptional economic andsocial significance toLithuania. Prior tothestart ofeconomic
reform, one-third ofLithuania ’stotalpopulation received income from farming orfrom theprocessing ofagricultural
commodities. Now, alarge partofthese people have losttheir source ofincome because ofdecreased productive
capacity inrural economy. TheGovernment ofLithuania plans tominimize thenegative social andeconomic
consequences ofthistransitional period toamarket economy with theaimofcreating acompetitive agricultural
sector andaviable rural economy, andensuring Lithuania ’sultimate integration intotheWTO. Under these premises,
Lithuania applies temporary measures fortheagriculture sector.
Thestatewillpromotefreecompetitionwithoutanyrestrictionsonagriculturalexports.Ingeneral,anaggregate
efficiency ofagriculture isdeemed tobeincreased through thedevelopment, extension service andin-service training
activities.WT/ACC/LTU/7
Page 40
Inparallel with thispolicy, Lithuania encourages rural dwellers toputtheir resources toarange ofnew
uses, andfirst ofalltodevelop small private businesses.
Price policy isaimed atrestoring theparity ofpurchasing prices foragricultural products which have been
undermined byreform, with theprices ofproducts being produced inother sectors oftheeconomy.
TheGovernmentwillpursueanti-monopolisticpolicyforthepurchasingandprocessingofagriculturalproducts.
Promotion ofsmall-and medium-size, short-run andflexible operations fortheprocessing industry willbeapriority.
TheGovernment ofLithuania hasabolished price controls onfoodstuffs intheretail market.
Policy onsubsidies andcredits isaimed atpropelling thetransformation process towards thefreeplay
ofmarket forces. Farmers, upon submission oftheir business plans, willbeeligible forstate support intheform
ofsubsidies andcredits. Land-based legal entities, especially rural areas withmarginal production, willbeencouraged
todiversify away from agriculture. State support willbeprimarily provided foragricultural products produced in
anenvironmentally correct wayoffarming, stressing onecologically-clean produce. Atthesame time, Lithuania
considers thedevelopment ofthecooperative movement through initiatives ofprivate farmers, agroservice promotion,
imports andin-house development offoundation andpedigree seed, theintroduction ofhigh-productivity animal
breeds intothelocal market, andthecreation ofspecialized farmer markets tobeofprime significance forexpansion
ofthestate economic capacity.
AsexplainedintheanswertoQuestion187,Lithuaniamaintainsapolicyofminimum(recommended)purchase
prices fortheinternal market forcertain agricultural goods asameans tosubsidize domestic producers (farmers).
Subsidies willalsobeprovided topromote theforestation ofareas with marginal agricultural production;
therefore, agricultural production inthese areas isbound todecline.
Export subsidies arenotcurrently applied butmay beinform ofstorage andimprovement ofmarketing
opportunities inevent offuture production surpluses (seetheanswer toQuestion 257).
Policy onborder measures willbeaimed atimplementing measures forimports thataredumped. Thecurrent
tariffs policy isexplained intheanswer toQuestion 193.
Question 257
The Government ofLithuania hasprovided extensive documentation with respect toitsagricultural
policy. Itappears that Lithuania hasrecently adopted many subsidy andinternal support programs inits
agricultural sector.
a)What assurances canLithuania give what itwilleliminate these export subsidies initsagricultural
schedule andmake therequired reductions insupports?
b)Does Lithuania plan toexpand itssubsidy program?
Reply
a)Lithuania does notcurrently provide export subsidies. However, inthesummer of1995, export subsidies
(forstorage andimproving ofmarketing conditions) forbeef, pork, butter, cheese andcondensed milk were provided
(total amount 27.8 LTL). Themain reason forgranting these subsidies wastheunfavorable market situation that
existed fortheexport ofthese agricultural products. Forsuch reasons, andinconnection with possible surplus of
production, theexport subsidies may beprovided inthefuture.WT/ACC/LTU/7
Page 41
b)Lithuania iscurrently adhering toWorld Bank andInternational Monetary Fund recommendations (under
theMemorandum ofEconomic Policy with IMF) thatsubsidies must notexceed 2.7% oftheNational budget outlay.
Formore comprehensive information concerning state support inthefuture, seetheanswer toQuestion
48(WT/ACC/LTU/2).
Question 258
InitsanswertoQuestion40(WT/ACC/LTU /2),Lithuaniamentionsthreedifferentprogrammesproviding
funding support totheagriculture sector (theNational Agriculture Development Program, theAgriculture
Support Fund andtheFarmers ’Support Fund).
Dothese three programs constitute thetotality offunding support totheagriculture sector?
Itseems from theparagraph 5oftheanswer toQuestion 40thattheAgriculture Support Fund draws
funding from more than onebudgetary year.
Can Lithuania provide details ofthetotal budget forfunding support totheagriculture sector for
1995?
Reply
Yes, these three constitute thetotality offunding support programmes totheagriculture sector.
Aswasmentioned intheanswer toQuestion 40(WT/ACC/LTU/2), theNADP operates asanumbrella
program. Itprovides some resources fortheAgriculture Support Fund andtheFarmers 'Support Fund; they also
receive funding from other sources described below. Both theAgricultural Support Fund andtheFarmers 'Support
Fund draw funding from more than onebudgetary year.
According totheGovernmental Resolution NO.508 (22June 1994) theFarmers 'Support Fund isformed
from thefollowing sources:
-State budget means (NADP);
-dividends received from theAgricultural Bank shares thatwere purchased bytheFarmers 'Support Fund;
-interest from preferential loans which were taken byfarmers.
-other sources.
Thetotal amount ofFarmers 'Support Fund for1995 was34.6 mlnlitas.
According totheGovernmental Resolution NO.421 (24March 1995) theAgriculture Support Fund was
formed. Seetheanswer toQuestion 40foritssources offunding. Thetotal amount ofAgricultural Support Fund
for1995 was39.5 mlnlitas.
Question 259
Inrelation toQuestion 44(WT\ACC\LTU\2) Lithuania didnotprovide acomplete explanation on
howthedomestic support programs work intheir answers toQuestion 40andQuestion 41(WT/ACC/LTU/2).
Wewould welcome more details from Lithuania regarding their agricultural domestic support programs
(how they work) andanexplanation onhow they intend tocategorize these programs intheir draft schedule
ofinternal support commitments.WT/ACC/LTU/7
Page 42
Reply
Lithuania iscurrently preparing aninitial offer onmarket access, including commitments onagriculture,
andwillforward ittoWTO members upon completion.
Question 260
Inrelation toQuestion 45(WT\ACC\LTU\2) Lithuania provided some breakdown ontheallocation
ofthesubsidy fund. However itdidnotclarify thedifference between commodity subsidies (cattle, dairy and
pork) andfarmer subsidies.
Reply
The commodity subsidies areprovided tofarmers inconnection with Lithuania ’spolicy ofminimum
(recommended) purchase prices (seetheanswer toQuestion 187formore detail).
According theGovernmental Resolution NO.508 (22June 1994), thefarmer subsidies (supplement tothe
answer toQuestion 40)under theFarmers 'Support Fund areused forthefollowing purposes:
- theconstruction ofcommon useobjects intherural area (electrification, theestablishment of
communication system, construction andreconstruction ofroads, establishment ofgaslines, the
establishment ofartesian wells);
- torecover losses from fires, storms, heavy rains, frost orinfectious diseases;
- partial compensation forsoftcredits provided toprimary agricultural producers;
- partial compensation tofarmers forthepurchase oftractors orharvesters;
- short term orlong term loans fortheconstruction ofbuildings; forthepurchasing ofmachinery,
equipment andpedigree livestock; fortheestablishment oforchards; orforthestorage ofagricultural
production.
Privilege loans provided from theFarmers 'Support Fund vary inamount from 50thous LTL to100thous
LTL. Theannual interest rateofprivilege loans is5%.
Question 261
Concerning theanswer toQuestion 45(WT/ACC/LTU/2), does theminimum purchase price setby
theMinistry ofAgriculture referred tointhisanswer function likeaminimum import price, orisitsimply
asubsidy measure fordomestic producers?
Reply
Itisasubsidy provided todomestic producers. Please seetheanswer toQuestion 187formore detail.
Question 262
DocumentWT/ACC/LTU /2/Add.1notesthattheGovernmentissuedresolutionsin1995whichestablished
minimum purchase prices andsubsidies forsome agricultural products (cattle, pigs andmilk).
a)Please elaborate onthese provisions. How arethese provisions consistent with theWTO Agreements?
b)What products arecovered? How were theminimum purchase prices derived? Arethese temporary
measures, andifso,when does theGovernment envision elimination ofthese measures? Or,canLithuania
explain what provisions have been made fortheelimination ofthistemporary measure?WT/ACC/LTU/7
Page 43
Reply
a)WTO Agreements donotbanonsubsidies ifthey donotresult intheattainment ofworld price levels
orintheevent agricultural commodities incertain countries aresold atlower prices than thefixed world price.
b)Concerning minimum (recommended) purchase prices, seetheanswers toQuestions 187-189.
Minimum purchase prices areintended astemporary measures. Themain purpose ofthemeasures areto
increase agricultural production inLithuania. Lithuania intends tosubsidize agricultural production until thelevel
ofproduction isabove thepotential level ofdomestic consumption (Lithuania expects aconsiderable increase of
purchasingpowerofLithuanianconsumers).Lithuaniawillabolishthesubsidieswhenalevelofagriculturalproduction
corresponding with potential domestic consumption hasbeen achieved.
Question 263
Intheanswer toQuestion 45(WT/ACC/LTU/2), Lithuania refers toproducers ofagricultural products
andprocessing enterprises concluding "special treaties ontheminimum (recommended) purchase price". On
what basis aretheprices agreed inthese "special treaties" setandwhat roledomarket prices play indetermining
these prices?
Reply
Therealpurchase price foragricultural production isdetermined bymarket demand andsupply. Because
ofacurrent shortage ofagricultural inputs needed byLithuania ’sprocessors ofagricultural products, therealpurchase
prices arehigher than therecommended (minimum) prices.
Question 264
Inrelation toQuestion 48(WT\ACC\LTU\2), generally, answers 40-48 dogivesome information that
willbehelpful incategorizing Lithuania 'ssupport policies inforthcoming internal support schedules.
a)Concerning thelastlineofthereply: what ismeant by"obligations similar tothose accepted by
comparable WTO members"?
b)When canweexpect toreceive from Lithuania itsagricultural commitments schedules andsupporting
data (import andconsumption data forlastthree years)?
Reply
a)Lithuania isprepared toaccept alloftheWTO ’sobligations.
b)Lithuania iscurrently preparing aninitial offer onmarket access, including commitments onagriculture,
andwillforward ittoWTO members upon completion.
Question 265
How does thestorage andmarketing subsidy forprocessors under thedairy program described in
theanswer toQuestion 45(WT/ACC/LTU/2) function? When wasthisimplemented?
Reply
Seetheanswer toQuestion 257.WT/ACC/LTU/7
Page 44
Question 266
Does Lithuania plan tophase-out thesoftcredits granted topurchases ofgrains andsugar beets under
theprocurement quotas, asthey aredescribed intheanswer toQuestion 46(WT/ACC/LTU/2)?
Reply
Seetheanswer toQuestion 273.
Question 267
Lithuania notes thatitisready toaccept obligations inthearea ofagricultural subsidies andsupports
"similar" tothose ofother WTO members. Please bemore precise. Towhich other WTO members isLithuania
referring?
Reply
Lithuania isready toaccept WTO obligations intheareaofagricultural subsidies. Theterm “other members
ofWTO ”includes themembers ofWTO which have accepted such obligations.
Question 268
Lithuania notes intheanswer toQuestion 48(WT/ACC/LTU/2) thatnodetailed plan hasbeen prepared
forthetransition from softcredits andsubsidies provided through theminimum (recommended) purchase
price scheme toadirect support system. Please confirm that thenew plan willnotcontain export subsidies.
Reply
Seetheanswer toQuestion 257.
Question 269
Could Lithuania confirm that itdoes notprovide anyexport subsidies foragricultural products (ref.
L\7551, p.22)?
Reply
Seetheanswer toQuestion 257.
Question 270
Would Lithuania please explain how itssystem oftariffs, which came intoforce inApril 1995, operates
(re."Agricultural Situation andprospects inLithuania", published byEuropean Commission -copy faxed
separately).
Reply
Please seetheanswer toQuestion 195.
Question 271
Would Lithuania please explain its"conventional", "preferential" and"automatic (sanctional)" tariffs,
andprovide respective lists ofagricultural products forwhich these tariffs apply andtheir level.WT/ACC/LTU/7
Page 45
Reply
Thecustoms tariff system isexplained intheanswer toQuestion 11(WT/ACC/LTU/2), andthecurrent
rates ofduty aresubmitted intheAnnex IIIofthisdocument.
Question 272
Isthestate stilllimiting profit margins ontheprocessing andretail levels? Ifso,what isthereason?
Reply
No,thestate nolonger limits profit margins forprocessors andretailers.
Question 273
Intheanswer toQuestion 80(WT/ACC/LTU/4) (last paragraph onpage 3)theLithuanian Government
listed alarge number ofagricultural activities which aresupported by"favorable credits and purposive
financing".
Please elaborate inmore detail these financial schemes. Please confirm thatthesupport given tothese
activities willbeconsistent with theWTO Agreement onAgriculture andcommitments which aregoing to
beundertaken byLithuania.
Reply
TheLaw onState Regulation ofEconomic Relations inAgriculture (22December 1994) provides thatthe
Governmentmayextendfavorablecreditstoproducersofagriculturalgoodsandagroservicescompanies.Thefavorable
credits may take twoforms: Government-provided credits with interest rates nohigher than 50% perannum; or
Government compensation forupto50% oftheannual interest rateofacredit.
Theprogram isadministered bytheCouncil onCoordination andRegulation onPurchasing ofAgricultural
Products which decides ontheamount ofcredit thataparticular enterprise should receive. These credits areavailable
forlarge-scale purchasers, centralized procurement, promotion offarm co-operation andexpansion ofagroservice
companies toprovide services requiring highcapital costequipment, These credits arethenextended bycounty-based
bodies directly toproducers ofagricultural goods andtoagroservice companies.
Assuming thatinflation does notincrease rapidly andinterest rates arestabilized inthenearfuture, demand
forfavorable credits willbesmall. However, subsidized credits, albeit atalower rate, willcontinue tobeapplied
infuture according topriorities identified under theNational Agriculture Development Program.
Question 274
Please provide further clarification with respect tovarious types ofproducers ofagricultural products.
Itseems thatdifferent categorization isused todescribe similar types offarm operators inreplies toQuestion
39(WT/ACC/LTU /2)and81(WT/ACC/LTU /4).Pleaseclarifywhethertherearelegalorfinancialconsequences
ofthiscategorization.
Reply
According totheLaw onState Regulation ofEconomic Relations inAgriculture (22December 1994),
“agricultural entities ”means family farms oragricultural partnerships (companies) orother enterprises, whose annualWT/ACC/LTU/7
Page 46
income from thesales oftradable agricultural produce andagricultural production services account formore than
50% oftheir total income.
Thecategorization ofagricultural entities presented intheLaw does have legal consequences. Afamily
farmer istreated aspersonal entity andafarmer ispersonally isresponsible hisliabilities.
Incontrast, anagricultural partnership isalegal entity andhaslimited liability. Anagricultural partnership
(company) isestablished by(more than 2)members. Themember joins their personal property intothecommon
property oftheagricultural partnership. Thepersonal property ofthemembers oftheagricultural partnership is
separate from theproperty ofagricultural partnership. Theobligations oftheagricultural partnership arecovered
bythecapital ofthepartnership. However, theagricultural partnership isnotresponsible forthepersonal obligations
ofitsmembers.
3.Financial, budgetary andfiscal policy
Question 275
What base rate isused tocalculate theVAT andexcise taxonimported goods? Does Lithuania plan
toconvert thespecific excise taxes into advalorem rates?
Reply
Supplement totheanswer toQuestion 113(WT/ACC/LTU/4).
Under Article 10oftheLaw onValue-Added Tax(22December 1993), thetaxable base forgoods imported
intoLithuania shall bedetermined according tothesame procedure asforassessing customs duty (customs valuation)
andthecustoms duty shall alsobeincluded. Article 9indicates thattheVAT alsowillinclude applicable excise
taxes. This means thattheVAT base rateforimports =valuation ofimport forcustoms purposes plusapplicable
customs duties plus applicable excise taxes.
Thetaxable base fordomestic goods consists oftheselling price ofgoods, including anyapplied taxes (such as
excise taxes).
Under theLaw onExcise Taxes (12April 1994 and30May 1995) thetaxable value shall be:
1. forimported goods -customs value ofgoods including customs duty;
2. forgoods made inLithuania -theselling price ofgoods exclusive ofVAT.
Currently Lithuania does nothave anyplans toconvert specific excise taxes intoadvalorem rates. The
main reason -large differences inprices exist between imported goods anddomestic goods.
Question 276
Please explain indetail thecriteria used inapplication ofdifferent levels ofexcise taxes with respect
todifferent types ofcigarettes soldattheLithuanian market (table onpage 21ofdocument WT\ACC\LTU\4)?
Reply
Excise taxes inLithuania arepaid bycigarettes producers andcigarettes importers -legal entities, natural
persons andenterprises without therights oflegal entity.WT/ACC/LTU/7
Page 47
Forhigh quality cigarettes, domestic orimported, theexcise taxis20% butnotlessthan 100LTL/1000
cigarettes. Fordomestic, lowquality cigarettes, excise taxis20% butnotlessthan 8LTL/1000 cigarettes. For
cigarettes without filter, imported ordomestic, excise taxisthesame.
4.Monetary policy andthebanking system
Question 277
Does theGovernment ofLithuania intend tomake itscurrency regime more flexible (considering of
Litas pegging toUSA dollar)?
Reply
TheLitas Stability Law (17March 1994) remains inforce. Inaddition, aprovision pegging theLitas to
theUSdollar isfixed inArticle XIoftheMemorandum oftheEconomic Policy withIMF (fortheperiod 1994-1997).
Lithuania does nothave anyplans currently tochange thispolicy ofpegging theLitas totheUSdollar.
5.Foreign anddomestic investment policy
Question 278
Does Lithuania plan todevelop legislation which would allow foreigners toown land?
Reply
Amendments totheConstitution oftheRepublic ofLithuania regarding Article 47-toallow forforeigners
topurchase land inLithuania -willbediscussed intheSeimas (Parliament) during thefirst halfof1996.
Question 279
What isstatus ofLithuania 'sTRIMs notification?
Reply
SeeAnnex IIofthisdocument.
Question 280
Inrelation toQuestion 51(WT\ACC\LTU\2), when willLithuania provide therequested information
concerning TRIMs?
Reply
SeeAnnex IIofthisdocument.
Question 281
Areforeign investors allowed totrade andhold domestic shares? Arethere restrictions onthetype
ofshares foreigners areallowed tohold?WT/ACC/LTU/7
Page 48
Reply
According totheLawonForeign Capital Investments intheRepublic ofLithuania (13June 1995), foreigners
may trade andhold domestic shares except inthose sectors where investment isprohibited.
Foreign investments (aswasexplained intheanswer toQuestion 52(WT/ACC/LTU/2)) areallowed in
allsectors, excluding:
- areas relating tosecurity anddefense ofthestate;
- manufacture orsaleofnarcotic substances, andother non-medicinal orpoisonous substances that
produce strong effect;
- cultivation, processing andsaleofcrops containing narcotic andpoisonous substances, orsubstances
having strong effect;.
- organizing oflotteries.
Question 282
Intheanswer toQuestion 52(WT/ACC/LTU/2), Lithuania notes thetrade activities forwhich the
Law onAmendments andSupplements oftheLaw onEnterprises requires alicense from theGovernment
ofLithuania.
a)What Government agencies areresponsible forgranting these licenses andpermits?
b)Lithuania states that alicense isneeded toengage intheimport of"special foodstuff". What is
considered "special foodstuff" andwhy isalicense needed totrade inthis?
Reply
a)Ministries andGovernmental offices, responsible forthedrafting ofregulations oflicensing oftrade
activities, andissuing oflicenses according tothefields oflicensed activities arethefollowing:
Ministry ofEnvironmental Protection:
- production,import,exportandrealizationofhighlyeffectivesubstanceswhicharenotofmedicinaldestination;
- production, import, transportation, trade, usage, storage andburying ofchemical materials which can
harmfully affect theenvironment.
Ministry ofEnergetic
- import, export, wholesale andretail trade bytheoilproducts; retail trade ofliquefied gas.
Ministry ofFinance
- purchasing andprocessing ofprecious metals waste andscrap;
- commercial activity related toprecious metals andjewels;
- mediation activity inthepublic turnover ofstock exchange;
- stock exchange activity;
- investment andreinvestment ofsecurities andtrade asamain activity; possession ofinvestment companies ’
property, unless thelaws provide otherwise;
- auditing services;
- production ofsecurities, currency andcoins, post-stamps.
Ministry ofForestry
- export ofrawwood.WT/ACC/LTU/7
Page 49
Ministry ofIndustry andTrade
- purchasing andremelting ofcopper andother non-ferrous metals, itsalloys, scrap andwaste inLithuania;
- import ofalcohol products, wholesale andretail trade bythem;
- purchasing offerrous metals scrap anditswaste inLithuania;
- trade bythetransport means onthecommission bases.
Ministry ofCommunication andInformatics
- provision ofcommunication services using acommon network oftelecommunications lines andstations;
- post work (only thestate enterprise “Lietuvos pastas ”).
Ministry ofSocial Security andLabor
- employment mediation services.
Ministry ofConstruction andUrbanistic
- realestate activity;
- prospecting ofnatural resources;
- exploitation ofnatural resources.
Ministry ofTransport
- activity bytheinternational transportation, unless thelaws provide otherwise;
- projecting andconstruction ofthestate roads;
- forwarding agent services provided forairandrailway transport;
- tugboat services;
- rescuing andunderwater technical works;
- services related tolocks (forwaterways).
Ministry ofHealth Care
- pharmaceutical activity;
- providing ofmedical services, medical treatment andhygiene practices;
- establishment ofeducational institutions, enterprises andinstitutions engaged inthehealthiness activity;
- production, import andexport ofnarcotic andhighly effective andpoisonous substances; alsowholesale
andretail trade;
- import ofspecial foodstuff andfood additives; alsowholesale trade;
- treatment ofpatients illwith infectious diseases.
Ministry ofJustice
- lawyer practice, unless thelaws provide otherwise.
Ministry oftheInterior (and theLithuanian Fund ofWeapons under theGovernment oftheRepublic ofLithuania)
- repair ofsports andhunting firearms, weapons;
- production ofseals, stamps, hunting knives;
- establishment ofshooting-galleries andstands ofhunting shooting;
- projecting, production, installation, assembling andexploitation oftheprotective fire-signaling;
- sellingofsportsandhuntingfirearms,ammunition,weapons,explosivesandpyrotechnicsandhuntingknives.
Ministry ofAgriculture
- cultivation ofcrops containing narcotic, highly effective orpoisonous substances;
- production ofalcohol products;
- production andimport oftobacco products;
- import andproduction ofbiological plants protection materials andtrade byits;
- production ofundenatured ethyl alcohol andalcohol beverages which contain more than22% ofethyl alcohol
byvolume.WT/ACC/LTU/7
Page 50
Ministry ofPublic Administration Reforms andLocal Governments Affairs
-tourism services.
State Veterinary Agency
- veterinary practice;
- treatment ofanimals illwith especially dangerous diseases.
b)“Special food products ”arespecial preparations forsportsmen.
TheMinistry ofHealth Care hasmade aproposal totheGovernment tocancel thisprovision.
7.State trading andState enterprises
Question 283
Question 58(WT/ACC/LTU/2). The Government ofLithuania notes that state trading accounts for
13.6% oftotal retail commodity turnover andincludes trade infoodstuff.
Which foodstuff arecovered bystate trading? Which firms areinvolved? What areLithuania 'splans
formaintaining oraltering thecurrent status ofthese firms?
Reply
Lithuania ispreparing ananswer totheQuestionnaire onState Trading andwilldeposit itwith theWTO
Secretariat assoon aspossible.
Question 284
The answer toQuestion 58(WT/ACC/LTU/2) notes that theLaw onTrade allows theGovernment
toestablish trade monopolies inallsectors in"special cases oncertain goods".
a)Please elaborate onhow sectors would beidentified andwhat constitutes "special cases".
b)Sugar, tobacco andalcohol arementioned assectors where special state privileges may beimposed.
Arethere anyother sectors which would require notification under Article XVII? What aretheconditions
that require state trading inLithuania?
Reply
a)Article 4oftheLaw onTrade provides thatin“extraordinary cases ”(war, famine, natural disasters)
theGovernment hasaright toestablish trade monopolies forcertain goods andtoestablish special sales procedures
forcertain products. Forsuch extreme cases, Lithuania could establish centralized supply points fordistribution
ofessential goods toitspopulation, including distribution through certain state enterprises. Centralized distribution
could alsobeeffected byprivate companies with their consent. This would innoway affect ownership rights of
private companies.
b)Sugar,tobaccoandalcoholarenotsubjectsofstatetrading.Theparticularlawsregulatingsuchcommodities
doprovide thepossibility fortheintroduction ofstate monopolies fortrading andimport ofthese commodities,
butthese provisions have notbeen implemented. Additional detail inthissituation isprovided intheanswers to
Question 58(WT/ACC/LTU/2), Questions 220and226ofthisdocument.WT/ACC/LTU/7
Page 51
Question 285
Lithuania should complete theQuestionnaire referred tointheWTO Understanding ontheApplication
ofArticle XVII, andprovide ittotheWorking Party prior tocompletion oftheaccession process. Will Lithuania
doso?
Reply
Theanswers tothisQuestionnaire hasbeen prepared andwillbedeposited with theWTO Secretariat for
circulation toandreview byWTO members.
Question 286
Does theanswer toQuestion 63(WT/ACC/LTU/2) mean toimply goods assessed atariff ofzero percent
arealso excluded from excise duties? Ifso,please explain.
Reply
Yes. Goods thatareassessed atariff rateofzero percent arenotconsidered tobeluxury goods andare
notsubject toexcise taxes. Forthose goods which aresubject toexcise taxes, please seetheanswer toQuestion
113(WT/ACC/LTU/4).
8.Subsidy policy
Question 287
InlightofitsanswertoQuestion37(WT/ACC/LTU /2),couldLithuaniaconfirmthatitneithermaintains
norintends tointroduce anypractices ormeasures that would qualify assubsidies within themeaning ofthe
Agreement onSubsidies andCountervailing Measures that arecontingent either onexport performance or
ontheuseofdomestic over imported goods?
Reply
Lithuania confirms thatitdoes notprovide subsidies (within themeaning oftheWTO Agreement on
Subsidies/CD) inindustry thatarecontingent upon export performance ortheuseofdomestic over imported goods.
Question 288
Please elaborate inmore detail onvarious forms ofsupport provided toindustrial enterprises (answer
toQuestion 37(WT/ACC/LTU/2)). Please explain relationship ofthissupport with provisions oftheAgreement
onSubsidies andCountervailing Measures (actionable andnon-actionable subsidies).
Reply
Topromote development ofindustrial sectors, theGovernment provides guarantees forenterprises toreceive
long-term credits from foreign banks. Taking intoconsideration thatloans arereceived atalower interest ratethan
therateofdomestic commercial andstate banks, andthisconfers abenefit tocompanies, itisasubsidy according
totheAgreement onSubsidies andCountervailing Measures. Butthese subsidies arenon-actionable because they
arenotspecific. Allcompanies areeligible togetloans, provided they meet oneestablished criterion -aproperly
prepared business plan.WT/ACC/LTU/7
Page 52
TechnicalassistancerenderedtoLithuaniancompaniesintermsofstrategyplanning,managementconsulting,
etc., todevelop their competitiveness, does notconflict with theprovisions oftheWTO Agreement onSubsidies
andCountervailing Measures.
Theprofit taxconcessions canbejustified based onArticle 29oftheWTO Agreement. They areprovided
toindustriesintransitionfromcentrally-plannedtomarketeconomies;subsequenttoreconstruction,theyarelaunching
production ofnewitems according tospecific programs. Moreover, they areproducing goods which arenecessary
fortheexistence ofthecountry, such asmedicine andmedical equipment, veterinary preparations, equipment for
disabled persons, agricultural machines andmeteorological equipment. These products arenotofvery high technical
quality andareintended purely forsaleonthedomestic market.
Question 289
CouldLithuaniaprovidefurtherelaborationwithrespecttoitsanswertoQuestion61(WT/ACC/LTU /2),
i.e.what ismeant bythestatement that"subsidies provided inLithuania aredefined" asintheWTO Subsidies
Agreement?
Reply
According thedocument oftheMinistry ofFinance “The Classification ofIncomes andExpenditures of
theState andMunicipal Budgets ”(29June 1995), these expenditures aredefined assubsidies:
- non-repayable means fordefined purposes assigned tostate non-financial enterprises, financial
institutions, other (private andstate) enterprises;
- means assigned tothebudget forstate social insurance;
- payments andcompensations related toprices andtariff policy;
- payments andcompensations forcontinual losses related totheselling andbuying offoreign currency
(tofinancial institutions).
Soft(subsidized) credits areincluded inthedefinition ofsubsidies because partoftheir cost(intheform
oflower than average interest rates) covered bythestate budget.
Question 290
WT/ACC/LTU/2/Add.1 notes thattheGovernment intends toendsubsidies ongasandelectricity for
consumers. Please confirm that gasandelectricity prices arenotsubsidized forindustry.
Reply
TheGovernment ofLithuania stilllimits prices forthesupply ofthermal energy andgas,however itgradually
phases-out subsidies used tocompensate price-relieves forinhabitants. These price tariffs aregradually approximated
tothemarket prices.
Now itisnotpossible toabolish subsidies onthermal energy andhotwater forinhabitants which have low
rateofincomes.
Gasandelectricity prices arenotsubsidized forindustry inLithuania.WT/ACC/LTU/7
Page 53
10.Protection ofintellectual property rights
Question 291
TheanswerstoQuestions65-67(WT/ACC/LTU /2)offerconflictinginformation.Itappearsthatcopyright
protectionisbasicallynonexistentandthattheGovernmentofLithuaniaisdebatingwhethertoincludecopyright
protection inthecivil code orintheseparate lawoncopyrights.
Reply
On17May 1994, theSeimas (Parliament) adopted theLaw ontheAmendment andSupplement totheCivil
Code, with new alterations ofChapter 4(Copyright) andChapter 5(Neighboring Rights).
Formore comprehensive information, seeAnnex I(onTRIPs) ofthisdocument.
V.INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH THIRD COUNTRIES
1.Brief description ofbilateral trade andeconomic agreements andintegration arrangements
Question 292
Please elaborate onhow Lithuania 'sFTAs provide fortheelimination ofduties onsubstantially all
trade inlight ofcoverage ofagriculture. What other products (besides fishproducts) areregulated byprotocols
ofexemption with theEU?
Reply
TheFreeTradeAgreementbetweentheEUandLithuaniaprovidesfortheeliminationofdutiesonsubstantially
alltrade. TheAgreement willbefully implemented after asix-year transition period. TheEUandLithuania both
agreed thatimport tariffs forsome agriculture andfishery products willnotbeeliminated after thetransition period.
However, trade intheabove-mentioned products according tostatistics isnotlonger than5-7% oftotaltrade between
Lithuania andtheEU..
Acopy ofFTA with theEUhasbeen deposited with theWTO Secretariat.
Question 293
Under theFTA signed with theEU, what arethetariff margins ofpreference forindustrial products
imported byLithuania?
Reply
Acopy ofGovernment Resolution NO.205 (8February 1995) “OnEnactment oftheFree Trade Agreement
between theRepublic ofLithuania andtheEuropean Community, theEuropean Atomic Energy Community and
theEuropean Coal andSteel Community ”hasbeen deposited withtheWTO Secretariat. ThisResolution wasprepared
inaccordance totheprotocols andannexes oftheFTA between theEUandLithuania.
Also please seetheanswer toQuestion 198andAnnex III.WT/ACC/LTU/7
Page 54
Question 294
What isthestatus oftheagreement onagricultural products between theBaltics that isbeing
negotiated?
Reply
The negotiations include agricultural products under thescope oftheFTA. More than five rounds of
negotiations concerning thisAgreement have already taken place.
Question 295
Please listtheimported goods subject tothereference prices noted intheanswer toQuestion 70
(WT/ACC/LTU/2).
Reply
There arenolists ofgoods subject tothereference prices confirmed bytheGovernment ofLithuania.
Government Resolution NO.281 (28February 1995) provides forthepossibility dejuretoapply thereference prices
onimported products, butdefacto thispossibility hasnotbeen putintopractice.
Question 296
Thedocument notes thatLithuania intends toconclude FTAs with anumber ofEast European countries.
Does Lithuania expect thatthese agreements willeliminate duties onsubstantially alltrade between signatories,
including agriculture products, ascalled forinGATT Article XXIV?
Reply
Lithuania intends toconclude international agreements thatconform with international standards andits
international obligations. Lithuania willarticulate itsforeign trade policy according toprinciples ofthemultilateral
trading system asembodied bytheWTO. This mean thateven before fullmembership intheWTO, Lithuania de
facto applies themain principles ofthisorganization. Inthisconnection, theFTAs thatLithuania intends toconclude
with theEast andCentral European countries must beinconformity with GATT Article XXIV.
Question 297
The answer toQuestion 70(WT/ACC/LTU/2) indicates that theGovernment Resolution NO.281
established, inpart, reference prices forsome imported goods. Forwhich specific goods have reference prices
been introduced, and forwhich countries arethese prices applied? How arethecountries covered bythe
reference prices determined? How arethese reference prices consistent with GATT/WTO obligations?
Reply
Please seetheanswers toQuestion 196andQuestion 295.
Question 298
Will Lithuania notify itsFree Trade Agreements under Article XXIV?WT/ACC/LTU/7
Page 55
Reply
According totheprovisions ofparagraph 7ofArticle XXIV, anycontracting party totheGATT ’94has
tonotify theCONTRACTING PARTIES about itsFree Trade Agreements. Lithuania willnotify itsFree Trade
Agreements after isbecomes amember oftheWTO andithastoimplement theobligations embodied bytheWTO.
Lithuania hasalready deposited copies ofallitsFTAs with theWTO Secretariat.
VI. LAWS AND LEGAL ACTS
1.Laws andlegal acts regulating theactivity ofthecustoms authorities
Question 299
Please provide acopy oftheLaw onCustoms Tariffs (NO.I-139) passed on27April 1993 andof
Government Decision NO.599 approved on3August 1993.
Reply
These documents have been deposited with theWTO Secretariat. However, thenewLaw onCustoms Tariff
(seetheanswer toQuestion 249) hassuperseded theoldLaw.
2.Laws andlegal actsrelating tonon-tariff regulation ofimports, exports andtrade intransit, rules oforigin;
responsible agencies
Question 300
Concerning Lithuania 'sanswer toQuestion 73(WT/ACC/LTU/2). Lithuania states thatthesecurity deposit
isnotlessthan thesum ofimport customs duties andtaxes applied togoods intransit. Isthere anupper bound as
tohigh thedeposit canbe?
Reply
Thesecurity deposit shall besufficient tocover allcustoms duties andtaxes potentially chargeable forgoods
intransit. Normally theamount ofthesecurity deposit isequal tothesum ofsaidduties andtaxes. However, if
exact customs value ortariff classification ofgoods intransit cannot bedetermined, theamount ofthesecurity deposit
canbehigher than thissum. Inthiscase, thehighest possible tariffs andaverage values ofgoods areused toensure
thatthesecurity deposit isofsufficient amount.
Question 301
Concerning Lithuania 'sanswer toQuestion 76(WT/ACC/LTU/2). Theanswer provides alist
ofactivities needing alicense, butdoes notexplain why certain activities areprohibited. Please explain why
certain activities areprohibited.
Reply
ForeigninvestmentsareprohibitedforactivitieslistedintheanswertoQuestion52(WT/ACC/LTU/ 2)because
these areinstrategic fields ofcommercial-economic activity.WT/ACC/LTU/7
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APPENDIX I.STATISTICAL DATA
Question 302
Please provide corrections tostatistical data contained intable 3ofthedocument WT\ACC\LTU\4.
Reply
Table 1inAppendix I(WT/ACC/LTU/4) presents thedataonthetotal volume ofGross Domestic Products
ofLithuania (year 1992 through 1994) atcurrent prices converted toUSD ataverage exchange rates ofthegiven
periods. Because ofthefixed exchange rate, Lithuanian currency didnotdepreciate against USD, andthusincrease
innominal GDP fully reflects theimpact ofinflation.
SinceTable3inAppendixI(WT/ACC/LTU/ 4)isalittleconfusing(itprovidesnominalGDP(secondcolumn)
andrealchange ofGDP (third column) together), itispresented below thedataonnominal andrealGDP ofLithuania
innational currency Litas. Besides thedata oninflation isalsoenclosed thatonGDP deflator.
Concerning theTable 1“Gross Domestic Product atCurrent Prices (1992-1994) ”seeAppendix I
(WT/ACC/LTU/4).
Gross Domestic Product atConstant Prices of1992 forthePeriod 1992-1994
(Table 3)
Period GDP, mlnLTL
(constant prices of
1992)Real change over pp,
%GDP percapita inLTL
(constant prices)GDP percapita in
LTL (current prices)
1992 3382.6 base year 905 905
1993 2584.0 -23.7 693 2977
1994 2599.8 0.6 699 4358
Source: Statistics Department
GDP Deflator (1993-1994)
Period GDP deflator, %
over pp
1993 271.0
1994 51.4
Source: Statistics Department
So,now itshould beobvious thatincrease ofthenominal GDP in1993 wasduetoinflation, andrealGDP
decreased by23.7%. In1994, theincrease ofnominal GDP wasalready caused bytwofactors: inflation andlittle
increase inoutput.WT/ACC/LTU/7
Page 57
ANNEX IV:GOVERNMENT DECISION ON THE PROCEDURE OFCOMMODITY EXPORT AND
IMPORT REGULATION INTHE REPUBLIC OFLITHUANIA
Question 303
Concerning theProcedure ofCommodity Export andImport Regulations intheRepublic ofLithuania
referred inL/7551, page 76,section 2.8.4: What kind offoodstuffs aresubject toquality control?
Reply
Thelistoffoodstuffs subject toquality control wasapproved bytheMinistry ofHealth Care (Decree NO.25
of13January1995).WhenfoodstuffsenumeratedinthislistaretobeimportedintoLithuaniaphytosanitary,veterinary
orhealth andquality certificates, asthecase may be,must beprovided tocustoms andtothecompetent authority
responsible forphytosanitary, veterinary and/or quality control issues.
Foodstuffs included intosaidlistare:meat, fresh, chilled orfrozen; fish, fresh, chilled orfrozen; crustaceans
andmollusks; milk anddairy products; birds 'eggs; honey; edible vegetables, fruits andnuts; coffee, tea,mate
andspices; cereals; products ofmilling industry; malt; starches; insulin andwheat gluten; oilseeds; hopcones;
other plants; parts ofplants used inperfumery, inpharmacy andforhuman consumption; varnish, gums, resins
andother vegetable saps andextracts; animal orvegetable fatsandoils; preparations ofmeat, fish, crustaceans or
mollusks; sugar; molasses; sugar confectionery; cocoa andcocoa preparations; preparations ofcereals, flour, starch
ormilk; pastrycooks 'products; preparations ofvegetables, fruits, nuts orother parts ofplants, including juices;
other edible preparations (classified inChapter 21ofHS); beverages (alcoholic andnon-alcoholic); spirits andvinegar;
tobacco andtobacco products; saltused forhuman consumption; mixtures ofodoriferous substances used inthe
food ordrink industries; casein; albumins andalbuminates; gelatin andgelatin derivatives.
SERVICES
Concerning services, andLithuania 'sresponses toQuestions 1,52and53ofWT/ACC/LTU/2:
Question 304
What isthestatus ofLithuania 'slegal structure togovern services? Areforeign companies extended
national treatment forlicensing procedures?
Reply
SeetheLithuanian Memorandum ontheServices Regime (WT/ACC/LTU/5), sections I.2.andII.1-2.; for
national treatment -section III.
Question 305
Can theGovernment ofLithuania confirm that theregulations that willbeissued governing services
willbeconsistent with theGATS?
Reply
Yes, Lithuania hasreviewed theprovisions oftheGATS andcanconfirm thattheregulations thatwillbe
issued willbeconsistent with these provisions.WT/ACC/LTU/7
Page 58
Question 306
What restrictions exist inLithuania ontemporary entry ofnatural persons asservice providers?
Reply
SeetheLithuanian Memorandum ontheServices Regime (WT/ACC/LTU/5), section III“Market access
andnational treatment ”.
Question 307
Inrelation toQuestion 52(WT/ACC/LTU/2), would Lithuania please clarify thefirst paragraph
concerning specific prohibitions onforeign ownership inthetransportation, energy andcommunication sectors.
Reply
Lithuania does notprohibit foreign ownership inthese sectors. However, Lithuania does require alicence
toconduct activity inthespheres oftransportation, energy andcommunication sectors. This isexplained inthe
answer toQuestion 52(WT/ACC/LTU/2) andintheMemorandum ontheServices Regime (WT/ACC/LTU/5).
Theanswer toQuestion 52provides only such areas where investment ofcapital offoreign origin isnot
permitted:
- relating tosecurity anddefense ofthestate;
- manufacture orsaleofnarcotic substances, andother non-medicinal orpoisonous substances that
produce strong effect;
- cultivation,processing,andsaleofcropsthatcontainnarcoticandpoisonoussubstances,orsubstances
having strong effect;
- organizing oflotteries.
Question 308
With respect tobanking, securities andother financial services, arethere anymeasures ofahorizontal
nature (affecting allormany sectors, that limit market access ornational treatment inthefinancial services
sector, such asforinvestment authorizations, reciprocity measures, orother discriminatory practices, including
those involved inprivatization ofstate enterprises? Ifso,please describe thehorizontal measures thatcurrently
would limit, orthat youanticipate would limit, foreign participation inLithuania infinancial services (as
defined inparagraph 5oftheAnnex onFinancial services.)
Reply
Lithuania does notcurrently maintain anyspecific measures ofahorizontal nature which limit market
access ornational treatment inthefinancial services sector.
Because Lithuania isintheprocess ofdrafting legislation onthevarious spheres ofservices, Lithuania cannot
predict theexact treatment thatforeign financial services providers willbeaccorded inthefuture although itdoes
notpredict anymajor changes tothecurrent situation.WT/ACC/LTU/7
Page 59
Question 309
Please describe anylaws, regulations, orpractices which limit inanyway:
a)theability ofanon-resident financial service provider toprovide cross-border into theterritory
ofyour country advisory and other auxiliary financial services, theprovision and transfer offinancial
information, andfinancial data processing (asdefined inparagraph 5oftheAnnex onFinancial Services);
b)whether residents ofyour country may purchase financial services intheterritory ofanother
party;
Reply
a)Lithuania does notlimit theability ofanon-resident financial service providers toprovide cross-border
services -advisory andother auxiliary financial services, theprovision andtransfer offinancial information, or
financial data processing services -intotheterritory ofLithuania.
Because Lithuania isintheprocess ofdrafting legislation onthevarious spheres ofservices, Lithuania cannot
predict theexact treatment thatforeign financial services providers willbeaccorded inthefuture although itdoes
notpredict anymajor changes tothecurrent situation.
b)Residents ofLithuania may purchase financial services intheterritory ofanother party.
Question 310
With respect tothefinancial services (asdefined inparagraph 5oftheAnnex onFinancial Services),
arethere anymeasures that would limit:
a)theability ofanon-resident financial service provider toestablish andexpand acommercial presence
inyour country asabranch, anagency, arepresentative office, andasawholly-owned subsidiary, either
through denovo investment orthrough acquisition ofexisting enterprises?
b)ordeny national treatment toforeign financial institutions thatseek toestablish, expand oracquire
anexisting financial institution inLithuania?
c)theability ofaforeign-owned financial service provider established inyour country tocompete to
supply financial services onterms andconditions that arenolessfavorable than those applied tofinancial
service providers ofyour country inlike circumstances (including theopportunity toparticipate inany
self-regulatory body, securities orfutures exchange ormarket, clearing agency orother organization or
association)?
Reply
a)b)c)Please seetheMemorandum ontheServices Regime (WT/ACC/LTU/5), section II.4.1.1. “Financial
services ”.
Theonly update tothisinformation isthattheminimum capital requirement forestablishment ofabank
willcontinue tobeincreased pursuant totheschedule oftheBank ofLithuania. Presently theminimum amount
seeks 10mlnLTL, andby1January 1998, therequirement willberaised to5mlnECU.
Asfurther explanation oftheMemorandum ofServices Regime section II4.1.1.2. on“Banking ”,paragraph
4,aforeign bank, after receiving permission from theBank ofLithuania, mayestablish asubsidiary, acquire sharesWT/ACC/LTU/7
Page 60
inanexisting bank orestablish bank agencies. However, foreign banks arenotallowed toestablish branches in
Lithuania. Aforeign bank may establish arepresentative office which may notengage inbanking, commercial or
economic activities.
Theinformation intheother sections iscurrent.
Because Lithuania isintheprocess ofdrafting legislation onthevarious spheres ofservices, Lithuania cannot
predict theexact treatment thatforeign financial services providers willbeaccorded inthefuture although itdoes
notpredict anymajor changes tothecurrent situation.
Question 311
Arethere anyrestrictions onthetemporary entry ofthepersonnel ofafinancial services provider
that isestablishing orhasestablished acommercial presence inyour country?
Reply
Lithuania does notmaintain anyrestrictions onthetemporary entry ofthepersonnel ofafinancial services
provider thatisestablishing orhasestablished acommercial presence inLithuania.
Because Lithuania isintheprocess ofdrafting legislation onthevarious spheres ofservices, Lithuania cannot
predict theexact treatment thatforeign financial services providers willbeaccorded inthefuture although itdoes
notpredict anymajor changes tothecurrent situation.
Formore comprehensive information concerning financial services seetheMemorandum ontheServices
Regime (WT/ACC/LTU/5), section II.4.1.1.
Banking
Question 312
Arethere anyrestrictions ontheform ofestablishment ofacommercial presence?
Reply
Seetheanswer toQuestion 310.
Question 313
Istheprivatization ofbanks completed? Canforeign investors participate intheprivatization ofbanks?
Reply
Former state banks have been reorganized intojoint-stock companies. Apartofsuch banks were sold to
private entities. However, theGovernment ofLithuania maintains some shares inthese banks (seetheanswer to
Question 49(WT/ACC/LTU/2)).
Foreign investors may purchase shares ofthese banks from private persons orfrom theGovernment of
Lithuania intheevent these shares areputupforsale.WT/ACC/LTU/7
Page 61
Question 314
Can foreign investors acquire existing domestic banks?
Reply
Foreign investors canacquire existing domestic banks inLithuania.
Question 315
Arethere anyquantitative limitations oreconomic needs testonthegranting ofbanking licenses?
Reply
Supplement totheanswers toQuestion 50(WT/ACC/LTU/2) andtoQuestion 310inthisdocument.
Lithuania does notmaintain quantitative limitations oreconomic needs testforthegranting ofbank licences.
Seetheanswer toQuestion 310forplans toincrease theminimum initial capital requirement.
Question 316
Aretheentry conditions forforeign banks (e.g. capital requirements) thesame fordomestic banks?
Reply
Supplement totheanswer toQuestion 50(WT/ACC/LTU/2).
Yes, theminimum initial capital requirement forasubsidiary established byforeign bank isthesame as
forabank which isestablished bydomestic founders.
Seetheanswer toQuestion 310forplans toincrease theminimum initial capital requirement.
Question 317
Areforeign institutions allowed tooffer thewhole range ofbanking services? Can they deal freely
inforeign exchange?
Reply
Asubsidiary ofatheforeign bank inLithuania may render allthebanking services which areallowed to
local banks. These subsidiaries may deal freely inforeign exchange.
Question 318
Does Lithuania plan tointroduce further liberalization measures forbanking inthenear future?
Reply
Lithuania willseek toapproximate itsbanking laws with theEUdirectives onbanking. This may result
infurther liberalization although Lithuania considers thatitscurrent regime isalready quite liberal.WT/ACC/LTU/7
Page 62
Insurance
Question 319
What isthestructure oftheinsurance sector inLithuania? Arethere anystate-owned companies?
Itthat isthecase, willthey beprivatized?
Reply
Lithuania currently issues licences for35companies toprovided insurance services inLithuania. Ofthese
35,6include foreign participation. There are5joint ventures and1foreign company providing insurance services
inLithuania, namely:
- Lithuanian -German Joint Stock Company Ltd. DRAUDA;
- Lithuanian -German Joint Stock Company Ltd. DRAUDOS GYVYBES
DRAUDIMAS;
- Lithuanian -Russian Joint Stock Company Ltd. BALTIJOS
GARANTAS;
- Lithuanian -Switzerland Joint Stock Company Ltd. VICURA;
- Lithuanian -Spanish Joint Stock Company Ltd. SAVIPA;
- Branch company ofEstonian Joint Stock Company Ltd.
BALTI KINDLUSTUSSEITS -BICO.
There isonestate-owned insurance company inLithuania, which hasnon-departmental status. TheState
insurance company has“exceptional rights ”toissue alltypes ofobligatory insurance andinsurance forpensions.
TheState insurance company collected over 77% ofallinsurance payments inLithuania in1994. TheState insurance
company willbeprivatized after thenewLaw onInsurance, which nowisunder theconsideration bytheParliament,
hasbeen passed.
Question 320
Isthissector open toforeigners? Under what conditions?
Reply
Theinsurance sector isopen toforeigners. Theconditions forforeigners arethesame asforlocal companies.
Formore comprehensive information seetheMemorandum ontheServices Regime (WT/ACC/LTU/5),
section II.4.1.1.1.
Currently thedraft ofanewLaw onInsurance isunder consideration bytheSeimas (Parliament). Provisions
ofthisLaw would continue toallow foreigners toengage ininsurance activity with thepermission oftheir country.
Question 321
Areforeign insurance companies allowed tooffer thewhole range ofinsurance services?
Reply
Foreign insurance companies areallowed tooffer thewhole range ofinsurance services inLithuania ifthey
areregistered inLithuania andwith thepermission oftheLithuanian Government toprovide insurance services.WT/ACC/LTU/7
Page 63
Currently thedraft ofanewLaw onInsurance isunder consideration bytheSeimas (Parliament). Provisions
ofthisLaw would continue toallow foreigners toengage ininsurance activity with thepermission oftheir country.
Question 322
Arethere measures preventing residents tocontract insurance abroad? What istherationale?
Reply
There arenosuch measures preventing residents tocontract forinsurance services abroad.
Securities
Question 323
Areforeign securities firms allowed toconduct business inLithuania?
Reply
SeetheMemorandum ontheServices Regime (WT/ACC/LTU/5), section II.4.1.1.3.
ForeignsecuritiesfirmsareallowedtoconductbusinessinLithuaniaaccordingtolawsgoverningsuchactivity
andifthey hadestablished anylegal form ofenterprise (foreign capital entity orjoint-venture with theLithuanian
partner(s)).
Question 324
Arethere anystock exchanges? Can foreigners bemembers ofstock exchanges, andifso,under what
conditions?
Reply
SeetheMemorandum ontheServices Regime (WT/ACC/LTU/5), section II.4.1.1.3.
Thus far,only oneStock-Exchange inLithuania haspermission from theLithuanian Securities Commission
tobegin operations. According tolegislation, foreigners may participate intheNational Stock-Exchange without
anyrestrictions.
According tothenewLaw ontheEmission andPublic Turnover ofSecurities (16January 1996), foreigners
may participate intheNational Stock-Exchange byestablishing abrokerage based onforeign capital orona
joint-venture with Lithuanian partners.
Question 325
Please provide:
a)adescription ofacurrent regime ininsurance, ifpossible completed with copies ofrelevant
legislation.
b)adescription ofthecurrent regime applying tolegal services.WT/ACC/LTU/7
Page 64
c)further indications astothecurrent regime applying tocross-border trade and: Lithuania 'sintention
toundertakecommitmentsinthisarea,namelyasregardstheeconomicallyimportantfinancialservicesactivities
such asMAT insurance andreinsurance.
Reply
a)Seetheinformation intheMemorandum ontheServices Regime (WT/ACC/LTU/5), andtheanswers
toQuestions 319-322.
b)Supplement totheinformation provided bytheMemorandum ontheServices Regime (WT/ACC/LTU/5),
section 4.1.3.1.
Thelegal services areregulated bytheMinistry ofJustice.
Themain legal actsregarding legal services inLithuania arethefollowing:
- theLaw onAttorney (16September 1992);
- Government Resolution NO.1380 (25October 1995) “OntheApproval oftheRules oftheIssuance
oftheLicenses forLawyer 'sPractice ”.
Under theLaw onEnterprises itisnecessary toobtain alicense toprovide legal services. Theconditions
toobtain such alicense areprovided intheGovernment Resolution NO.1380 (25October 1995) “OntheApproval
oftheRules oftheIssuance oftheLicenses forLawyer 'sPractice ”.Licenses arenotgiven topersons which have
been convicted ofcrimes, orhadaprevious conviction during hisjobasajudge, aprosecutor, apolice officer or
asecurity services officer which hasbeen dismissed from office orhasnotpassed theexam. Thesame rules are
applied toforeigners.
Acitizen ofLithuania may beanattorney ifhe:
- hasadegree inlaw;
- hasexperience inlegal practice ofnotlessthanfiveyears andexperience asanassistant ofattorney
ofnotlessthan oneyear.
- haspassed anexam ofattorney.
Only citizens ofLithuania, included inthelistofattorneys oftheRepublic ofLithuania, have theright to
becalled “attorney ”andtoprovide legal services.
Foreign attorneys may provide legal services inLithuania only ifthisisprovided inLithuania 'sbilateral
agreements onlegal assistance.
c)Lithuania willbegiving further consideration anappropriate answer forthisQuestion.WT/ACC/LTU/7
Page 65
ANNEX I
NOTE ONTRADE-RELATED ASPECTS OFINTELLECTUAL PROPERTY RIGHTS (TRIPS)
1 General:
(a) intellectual property policy
Theprotection ofintellectual property rights forcopyright andneighbouring rights, patents, trademarks,
industrial designs, trade secrets andother areas isanessential element ofLithuania 'seconomic policy. Such protection
stimulates research, technological innovation andcreativity, because itallows individuals andcompanies toprofit
from their creative efforts.
From thefirst, Lithuania 'sintellectual property protection system hasbeen designed tocomply with the
requirements ofmultilateral treaties inthefield ofprotection ofintellectual property, including those administered
byWIPO andtheWTO ’sAgreement onTrade-Related Intellectual Property Rights.
(b) responsible agencies forpolicy formulation andimplementation
TheState Patent Bureau isresponsible formatters involving national industrial property (patents, trademarks
andservice marks);
TheMinistry ofCulture isresponsible formatters involving copyrights andneighboring rights;
TheMinistry ofAgriculture willberesponsible formatters involving plant variety protection;
Lithuania does notcurrently provide forprotection oflayout designs ofintegrated circuits andtherefore
there isnoresponsible agency forpolicy formulation andimplementation;
Protection ofgeographical indications iscovered under theLaw onCompetition; theagency responsible
forpolicy formulation andimplementation isTheState Competition andConsumer Protection Office;
TheState Competition andConsumer Protection Office hastheauthority toadminister restrictions when
cases ofunfair competition exist.
(c) membership ofinternational intellectual property conventions andofregional orbilateral agreements
Lithuania isaparty tothefollowing multilateral treaties:
- World Intellectual Property Organization (WIPO) (since 30April 1992)
- Paris Convention fortheProtection ofIndustrial Property (since 22May 1994);
- Patent Cooperation Treaty (since 5July 1994);
- Berne Convention fortheProtection ofLiterary andArtistic Works (since 14December 1994);
- Trademark Law Treaty (signed on28October 1994 inGeneva; expected toberatified inthefirst
halfof1996).
Lithuania iscurrently considering joining theRome Convention fortheProtection ofPerformers, Producers
ofPhonogrammes andBroadcasting Organizations.WT/ACC/LTU/7
Page 66
Thefollowing bilateral agreements inthefield ofindustrial property areinforce:
- Agreement between theKingdom ofDenmark andtheRepublic ofLithuania onMutual Protection
ofTrade andCollective Marks (since 24March 1993);
- Agreement between theGovernment oftheRepublic ofLithuania andtheEuropean Patent
Organization onCooperation intheField ofPatents (“Cooperation Agreement ”)(since 1March
1994);
- Agreement implementing Article 3(3) (Extension ofprotection forEuropean Patents) ofthe
Cooperation Agreement (inforce since 5July 1994).
There arealsoafewbilateral trade agreements containing provisions related tointellectual property rights:
- Agreement between theRepublic ofLithuania andtheUnited States ofAmerica onTrade Relations
andIntellectual Property Rights Protection (signed 26April 1994, notratified yet);
- Free Trade Agreement between Lithuania andNorway (since 1August 1993);
- Free Trade Agreement between theRepublic ofLithuania andtheSwiss Confederation (inforce
since 1March 1994).
(d) application ofnational andMFN treatment toforeign nationals
Lithuanian intellectual property laws were drafted tobeinconformity with therequirements oftheBerne
andParis Conventions. Lithuania isnow acontracting state tothese Conventions andprovides national treatment
andMFN treatment toallmembers ofthese Conventions.
(e) feesandtaxes
State feesforpatenting inventions orregistration ofindustrial designs ortrademarks with theState Patent
Bureau (Patent Office) arecomparatively low:
- forfiling apatent application -150USD;
- formaintaining apatent inforce -60USD annual feeforthesecond year; increasing scale offees
forthethird through fifteenth years; and300USD annually forthesixteenth through twentieth
years;
- forfiling anindustrial design application -100USD;
- fortheextension ofanindustrial design 'svalidity term -200USD foreach five-year extension
following thefirstfive-year granting ofcoverage. Thefeerises to500USD forthefifth five-year
period;
- forfiling atrademark application -60USD forthefirst class ofgoods orservices and30USD
foreach additional class ofgoods orservices. Granted foraten-year period. Toextend atrademark
validity term -50USD and30USD foreach additional class ofgoods orservices;
- feesforother areas ofintellectual property rights have notyetbeen established.WT/ACC/LTU/7
Page 67
2. Substantive standards ofprotection, including procedures fortheacquisition and maintenance of
intellectual property rights
(a) copyright andrelated rights, including rights ofperformers, producers ofphonograms and broadcasting
organizations
COPYRIGHTS
Lithuania complies with thesubstantive obligations ofArticles 1-21 oftheBerne Convention (1971) and
itsannex.
According toArticle 515ofLithuania ’sCivil Code, copyrights aregranted forpublished orunpublished
works, expressed inanyobjective form, which allow forthereproduction oftheresult ofanauthor 'screative activity.
"Awork" incopyright shall mean aresult ofaperson ’sintellectual activity. According toArticle 515, point 13,
computer programs andcompilations ofdata areprotected aswritten (literary) works, asrequired byTRIPs.
TheCivil Code does notprovide rental rights forcinematographic works, computer programmes orsound
recordings, butLithuania isplanning tomake some amendments totheCivil Code inthisarea.
Term ofProtection
Terms ofcopyright protection areprovided inArticles 536, 537and538oftheCivil Code.
Article 536. Term ofCopyright
Theterm ofcopyright protection shall extend fortheentire lifeoftheauthor andfifty years after hisdeath.
Inthecase ofpseudonymous oranonymous works (when thename oftheauthor isnotindicated), theterm of
protection shall expire fifty years after thework hasbeen made available tothepublic. Inboth cases theterm of
copyright shall runfrom 1January oftheyear following thedateoftheauthor 'sdeath, orfrom thedatethework
wasmade available tothepublic.
When theauthor ofananonymous orpseudonymous work leaves nodoubt astohisidentity, oriftheauthor
ofananonymous orpseudonymous work discloses hisidentity during theabove-mentioned period, theterm of
protection shall befifty years after thedate oftheauthor 'sdeath.
Copyright protection shall beinheritable. Theright toauthorship, theauthor 'sname andtheinviolability
ofawork cannot beinherited. Protection ofauthorship, theauthor 'sname andtheinviolability ofthework shall
beofunlimited duration.
Article 537. Term ofCopyright forWorks ofJoint Authorship
Theterm ofprotection ofawork ofjoint authorship shall exist forthelifeofeach co-author andshall be
inherited. Theheirs ofeach co-author shall enjoy copyright rights forfiftyyears from 1January oftheyearfollowing
thedate ofthedeath ofthelastsurviving co-author.
Article 538. Term ofCopyright ofLegal Persons
Alegal person shall enjoy copyright rights forfifty years after thework hasbeen made available tothe
public. Inthecaseofreorganization ofthelegal person, copyright rights shall transfer toitssuccessor intitle, and
inthecase ofdissolution ofthelegal person, property rights shall transfer tothepersons who acquired them.WT/ACC/LTU/7
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Limitations andExceptions
Limitations toexclusive rights oftheauthor areinArticle 532oftheCivil Code.
Article 532. UseofAuthor 'sWork without Consent ofAuthor andwithout Payment ofRemuneration.
Itshall bepermitted without theauthor 'sconsent andwithout payment ofremuneration (butindicating the
source andthename oftheauthor, ifthey appear):
- tomake quotations inscientific works, works ofcriticism oreducational publications from scientific,
literary orartistic works which have been made available tothepublic intheir original language
ortranslated intoanother language. This istotheextent justified bythepurpose. Aswell, itshall
bepermitted tousequotations from newspaper andmagazine articles inpress reviews;
- inamanner compatible with fairpractice, tousepublished works asillustrations inteaching
publications, radio andtelevision teaching programmes, orsound andvisual recordings used for
teaching purposes.
- toreproduce articles oncurrent economic, political orreligious issues inthepress, onradio, on
television, orthrough other means ofcommunication. These articles willhave been published in
newspapers, magazines orcommunicated tothepublic bymeans ofradio ortelevision. This shall
bethecase unless there isaspecific prohibition against such action;
- toreproduce political speeches delivered inpublic, orspeeches delivered during legal proceedings,
inthepress, onradio orontelevision;
- touseworks during legal andadministrative proceedings;
- tocommunicate information onliterary, artistic orscientific works which have been made available
tothepublic inthepress, orthrough thecinema, radio ortelevision. This applies toannotations,
essays, reviews andother documentary forms ofinformation;
- touseliterary andartistic works directly from theplaces they arebeing performed orexhibited
tothepublic forthepurpose ofincluding information oncurrent events insurveys inthepress,
radio orontelevision. This maytakeplace provided thatsuch useoftheworks isjustified bytheir
informative value andwhen theworks areused assubsidiary informative material;
- toreproduceshortpassagesfrombooksandarticlespublishedinperiodicalsinlibraries(fornon-profit
educational andscientific purposes) ;and
- toissue works which have been made available tothepublic inBraille.
TheCivil Code does notcontain provisions oncompulsory licenses.
PROTECTION OFPERFORMERS, PRODUCERS OFPHONOGRAMS
TheCivil Code gives performers theright toauthorize orprohibit thefixation oftheir performances and
thereproduction ofsuch fixations.
Article560.RecordingofStage-ProductionorPerformanceofotherWorks,UseandBroadcastofRecordings.WT/ACC/LTU/7
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Only with theconsent ofthestage-performer orperforming artist shall itbepermitted torecord theimage,
sound orimage andsound ofastage-production orperformance ofother works with thehelp oftechnical devices
inorder touse,reproduce anddistribute them later. Only with theconsent ofthestage-performer orperforming
artist shall itbepermitted tobroadcast astage-production orperformance ofother works, including arecording
ofthem, over radio, television, cable orasatellite system oftransmission.
Intheevent thatawork isperformed byagroup (choir, ensemble, orchestra, group ofactors, etc.),
authorization tobroadcast thework, tomake recordings ofitandtoreproduce anddistribute therecordings shall
begiven bythestage-director, conductor, soloist, representatives ofthecollective ortheleader ofthegroup. The
acquisition ofsuch consent constitutes anagreement inwritten form, which provides theconditions fortheuseof
recordings andfortheagreed remuneration.
Ifaperformer performed orastage-director directed awork inthecourse ofemployment, theconditions
fortheproduction, use,reproduction anddistribution ofrecordings shall bedetermined bytheemployment contract
andother additional contracts.
TheCivilCodegrantsphonogramproducerstherighttoauthorizeorpreventthedirectorindirectreproduction
oftheir phonograms.
Article 561. Right ofProducers ofSound andVisual Recordings
Theproducers ofsound andvisual recordings shall enjoy theright togive permission fortheuseoftheir
recordings, forthebroadcast oftherecordings over radio, television, cable television, satellite systems, orforthe
public reproduction oftherecordings fordistribution.
Ifarecording islawfully distributed through atrade network, itshall bepermissible tousesuch arecording
inpublic places, except fortheater performances. Insuch acase, remuneration must bepaid totheproducer of
therecording, tothestage-director andtotheperformers. Therates oftheremuneration andtheprocedure forpayment
shall bedetermined byajoint agreement among creative organizations, copyright protection organizations andthe
Ministry ofCulture oftheRepublic ofLithuania.
Theproducer ofsound andvisual recordings mayinform thepublic ofhisrights bymarking every
copy oftherecording with thesymbol Pinacircle, accompanied bytheyear ofthefirstpublication oftherecording
andbythename oftheproducer oftherecording.
According toArticle 526oftheCivil Code, radio andtelevision organizations (broadcasting organizations)
have theability tocopyright radio andtelevision programmes intheir entirety.
Limitations andexceptions
Article563.LimitationsonRightsofStage-Directors,Performers,ProducersofSoundandVisualRecordings.
Itshall bepermissible without theconsent ofthestage-director, performer, producer ofsound andvisual
recordings touselawfully produced recordings orexcerpts from them foreducational, scientific, informative purposes
orforpersonal needs.
Term ofprotection
Article562.DurationofRightsofStage-Directors,PerformersandProducersofSoundandVisualRecordings.WT/ACC/LTU/7
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Economic rights ofstage-directors, performers, producers ofsound andvisual recordings (Article 559and
560) shall extend for50years from theendoftheyear inwhich therecording wasproduced orbroadcast. The
right tothestage-production orperformance ofother works which arenotfixed insound orvisual recordings begins
from theendoftheyear inwhich thestage-production orother work wasfirst performed inpublic.
(b) trademarks, including service marks
Acopy oftheLaw onTrademarks andService Marks hasbeen deposited with theWTO Secretariat. Any
sign, capable ofdistinguishing thegoods orservices ofoneundertaking from those ofother undertakings, may be
protected asatrademark orservice mark inaccordance with Lithuania ’sLaw onTrademarks andService Marks.
Article 2ofthisLaw fully conforms with therequirements ofTRIPs Article 15,paragraph 1.
Lithuania maintains thesame grounds forrefusing registration asprovided forincertain articles oftheParis
Convention. Thegrounds onwhich theregistrar may refuse toregister amark (Article 3oftheLaw) arethe
following:
- ifthemark hasnodistinctive character;
- ifitbecame thegeneric name forthegoods;
- ifitexclusively designates, intrade, thekind (type), quality, quantity, intended purpose, value,
place oforigin, time ormeans ofproduction ofthegoods orofrendering oftheservices, orother
characteristics ofthegoods orservices;
- ifitiscapable ofmisleading thepublic; or
- ifitiscontrary tomorality orpublic order, including ethical, societal orhumanitarian principles.
Iftheapplicant receives notification thatthetrademark hasbeen refused onthegrounds provided forin
Article 3,theapplicant hastheright torequire re-examination oftheapplication. Ifthedecision after the
re-examination isleftunchanged, theapplicant hastheright tofilearequest toreview thedecision with theDivision
ofAppeals oftheState Patent Bureau (Patent Office) within three months.
Further, within three months from thedateofreceipt ofthedecision oftheDivision ofAppeals, theapplicant
hastheright toappeal against thesaiddecision before thecourt system (first right ofappeal totheVilnius District
Court; second, totheCourt ofAppeals; andthird, totheSupreme Court).
Interested persons aregiven aright tooppose theregistration ofthemark with theDivision ofAppeals of
thePatent Office within three months from theappearance inOfficial Gazette ofthetrademark which hasbeen entered
intheTrademark Register. Ifaninterested person fails tofileanopposition within thistime period, theopposition
may bebrought onthesame grounds before thecourt (theVilnius District Court).
Well-known marks may obtain broader protection inaccordance with theLaw onTrademarks andService
Marks. However, inview oftheprevalence ofregistering thetrademarks (notobtaining protection byuse) itis
easier tofileanapplication than toseek theCourt 'sstatement thatthetrademark iswell-known.
Theinitial term oftrademark andservice mark protection isfortenyears. Theregistration isrenewable
foradditional ten-year periods.
Theholder ofamark shall have theright toprevent third parties from using, without hisauthorization,
anysign which: isidentical with themark inrespect ofthesame goods orservices from which itisregistered;
orisidentical with themark inrespect ofsimilar goods orservices, orsimilar tothemark inrespect ofthesame
orsimilar goods orservices, where there exists alikelihood ofconfusion onthepartofthepublic, including the
likelihood ofassociation between thesign andthemark.WT/ACC/LTU/7
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Theholder ofaregistration shall have theright toprevent third parties from using, without hisauthorization,
anysignwhich isidentical orsimilar tothemark inanywaythatjeopardizes thedistinctive character oftheregistered
mark.
Theaforementioned requirements shall notprevent anyperson from using:
- hisown name andaddress;
- indications concerning thekind, quantity, intended purpose, value, geographical origin, thetime
ofproduction ofgoods orother characteristics ofgoods orservices;
- theregistered mark ofathird party where itisnecessary toindicate theintended purpose ofagood
orservice, inparticular asaccessories orspare parts; or
- theregistered mark ofathird party incomparative advertising, where such advertising ispermitted,
provided thatuseismade inaccordance with honest practices inindustrial orcommercial matters.
Theregistration ofmarks inLithuania does notdepend onuse. Anapplicant does notneed toprove the
useofmark hefiles orhisfuture intentions regarding thetrademark when registered.
Inresponse toarequest from aninterested person, amark may only becanceled fornon-use bytheDistrict
Court, without justifying cause, ifthemark hasnotbeen used orhasnotbeen thesubject ofserious preparations
forcommencement ofusebytheholder oftheregistration inLithuania within fiveyears preceding thedate on
which thejuridical proceedings were commenced.
There arenorestrictions onrights inthematters oflicensing andassignment oftrademarks. Few formal
requirements areprovided: achange inownership (assignment, transfer) oralicense agreement must besubmitted
inwriting andregistered bytheState Patent Bureau (Patent Office).
Lithuania does notprovide forcompulsory licensing initsLaw onTrademarks andService Marks.
(c) geographic indications including origin indication
Article7oftheLawonCompetitionprohibitseconomicsubjects"tomisleadconsumersbyindicatingincorrect
information on... andplace oforigin ofgoods". This prohibition alsocovers thesubmission ofincorrect information
ontheplace ofwhere goods aremanufactured (incorrect origin indication) ifitsisprobable thatsuch false information
wasmeant tomislead consumers.
(d) industrial designs
Legal protection forindustrial designs isgranted through registration ofthedesign with theState Patent
Bureau (Patent Office).
Therights holder ofaregistered industrial design hastheright toprevent third parties from production
ofaproduct orthepartofaproduct which isregistered asanindustrial design; oroffering orputting onthemarket
forsale, export ordistribution aproduct orparts thereof registered asanindustrial design.
Thefollowing actsshall notberegarded asinfringing therights oftheowner ofindustrial design:
- usetosatisfy ownneeds which donotthreaten theeconomic interests oftheowner oftheindustrial
design;
- useforscientific, research orexperimental purposes;WT/ACC/LTU/7
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- useonvessels, aircraft orother means oftransport andtheir equipment registered inforeign states
orforimported component parts used torepair such craft when theyaretemporarily intheterritory
ofLithuania.
(e) patents
Acopy ofthePatent Law hasbeen deposited with theWTO Secretariat. Article 2oftheLaw provides
thesame patentable subject matter asisprovided inTRIPs Article 27,paragraph 1.Thefollowing inventions are
excluded from patentability:
- methods oftreatment ofpeople andanimals;
- diagnostics andprevention ofdiseases (with theexception ofequipment andmaterials utilized for
such methods);
- varieties ofplants andanimals aswell asbiological (except microbiological) methods oftheir
production;
- inventions which aredeemed tobecontrary tothepublic interest, principles ofhumanity ormorality.
Inaccordance with Article 26ofLithuanian Patent Law theowners ofthepatents have same scope ofrights
asthose outlined inTRIPs Article 28.
There aretwoexceptions totheexclusive rights conferred byapatent inArticle 39and29ofLithuanian
Patent Law:
- taking intoconsideration state orpublic interests, theGovernment mayadopt adecree, even without
theconsent oftheowner ofapatent, toallow acompany oraperson touseapatented invention
subject topayment ofequitable remuneration totheowner ofthepatent; theowner ofthepatent
who finds theamount ofremuneration non-equitable shall have theright toappeal totheDistrict
Court;
- natural andlegal persons who ingood faith were using orwere making effective orserious
preparations forsuch usebefore thefiling dateor,where priority isclaimed, thepriority date of
patent application, shall have theright tocontinue such useortousetheinventions asenvisaged
insuch preparations without taking intoconsideration thewilloftheowner ofthepatent (i.e., the
right ofprior useisprovided).
Compulsory licenses
Ifafter theexpiration ofthelater offouryears from thefiling ofthepatent application orthree years from
thegrant ofthepatent, non-working orinsufficient working ofthepatented invention exists andthose willing to
work itarerefused alicence, ontherequest ofanyperson who proves hisability towork thepatented invention,
theDistrict Court maygrant anon-exclusive compulsory licence Thegrant ofthecompulsory licence shall besubject
tothepayment oftheequitable remuneration totheowner ofthepatent theamount ofwhich shall befixed bythe
Court.
Acompulsory licence shall notbegranted iftheCourt isconvinced that circumstances exist which justify
thenon-working orinsufficient working ofthepatented invention inLithuania.
Ifacompulsory licence isgranted andthepatented invention isstillnotorinsufficiently worked, theCourt,
attherequest ofinterested persons, may prescribe aforfeiture ofthepatent. Aforfeiture ofthepatent shall not
begranted before twoyears from when thefirst compulsory licence wasgranted.WT/ACC/LTU/7
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Change inownership
There arenorestrictions onapatent owner 'sright toassign, transfer orlicence right under apatent. Simply,
achange inownership (assignment, transfer) ofalicencing agreement must besubmitted inwriting andregistered
with theState Patent Bureau (Patent Office).
Term ofprotection
Theterm ofpatent protection inLithuania isaperiod oftwenty years from thefiling date.
Lithuanian Patent Law does notspecifically provide thatthedefendant isobliged toprove theabsence of
apatented process inhisproduction. Nevertheless, thisobligation arises from theimplementation ofArticle 41
(Protection ofRights) ofthisLaw:
- theowner ofapatent ortheapplicant hastheright toinstitute court proceedings against aperson
(alegal entity) who hasinfringed orisinfringing thepatent orpublished patent application, for
which provisional protection wasgranted, andtorequire thetermination ofinfringing acts, aswell
ascompensation fortheinflicted damage; theowner alsohastheright toundertake court proceedings
ifthelikelihood ofinfringement exists;
- inaccordance with Lithuanian laws concerning civil proceedings attheCourt, theburden ofproof
isonthedefendant.
Anopportunity forjudicial review ofadecision torevoke apatent appears from thecombination ofArticles
25and40ofLithuanian Patent Law:
- disputes arising before thepatent grant between theapplicant andtheexaminer ofthePatent Office
with respect torefusal togrant apatent shall besettled bytheDivision ofAppeals ofthePatent
Office;
- disputes regarding thedecisions oftheDivision ofAppeals ontherefusal togrant apatent shall
bedealt with bytheVilnius District Court.
Further, anydecision oftheVilnius District Court may beappealed before theCourt ofAppeals. The
decision oftheCourt ofAppeals may beappealed before theSupreme Court.
(f) plant variety protection
Adraft Law onPlant Protection andSeed Growing iscurrently under consideration bytheLithuanian
Parliament. TheLaw willprovide rights andobligations forforeign plant breeders aswell asfordomestic natural
andlegal persons engaged inseed growing. Thedraft provides thatimportation ofseeds andplantings cantake
place ifthey have been approved asappropriate forLithuanian soils andweather conditions. TheMinistry of
Agriculture willhave responsibility forthisarea.
Lithuania isnotamember oftheInternational Union fortheProtection ofNew Varieties ofPlants (UPOV).
Therefore, current legal protection forplant varieties created byforeign plant breeders andseed growing firms is
ensured bytreaties between breeders andgrowers.
(g) layout designs ofintegrated circuits
Protection oflayout designs forintegrated circuits isnotprovided forinLithuanian legislation atthemoment.
However, Lithuania iscurrently preparing adraft Law fortheprotection ofthese intellectual property rights.WT/ACC/LTU/7
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(h) requirements onundisclosed information, including trade secrets andtestdata
Article 7oftheLaw onCompetition prohibits "without thepermission oftheeconomic subject,
toreceive, useandpublish information onmanufacturing, commercial activity, scientific-technical investigations
ortheir results."
3. Measures tocontrol abuse ofintellectual property rights
Article 3and4oftheLaw onCompetition prohibit agreement andconcerted activity between economic
subjects which mayrestrict orhinder competition. Article 5provides thepossibility forexemptions from thecoverage
oftheLaw. TheCompetition Council hasissued ageneral exemption relating tointellectual property rights: "Not
contradicting theLaw aretobeunderstood ...agreements onlicences, patents oracquisition ofauthors 'rights which
may cause manufacturing, price orother restrictions oftherelevant goods ifthey arerelated with protection of
patents orauthors 'rights orwith requirements oftechnical terms oflicences, patents, orauthors 'rights."
4. Enforcement
Reform ofthecourt system inLithuania wasstarted in1994 andisstillunderway. There arecourts atfour
different levels: city(county) courts, district courts, appeals courts andtheSupreme Court. Lithuania intends to
establish administrative courts inthenear future. There arenoseparate intellectual property courts inLithuania.
(a) civil judicial procedures andremedies
Asageneral matter, theCivil Code andtheCode ofCivil Procedure ofLithuania provide procedures which
protect violated rights andinterests, including intellectual property rights. However, thespecifics ofthisprotection
isyettobeelaborated formany areas ofintellectual property rights.
Copyrights
Inaccordance withArticle 557ofChapter 4oftheCivil Code oftheRepublic ofLithuania, authors implement
their rights byentering into agreements with theusers oftheir works orbyauthorizing copyright protection
organizations toexecute their rights. Theonly such existing organization istheLithuanian Copyright Protection
Association. Itisanindependent, non-profit society founded byLithuanian creative unions.
Iftheevent thataninfringement takes place, theinfringement willbepursued under civil procedures if
itisnotjudged tobeacriminal violation. Thepreliminary investigation ofacase--todetermine which procedures
areappropriate --usually iscompleted within twomonths.
Several articles oftheCivil Code dealwith theprotection ofmoral andeconomic rights ofauthors. Under
Article 539, aviolation ofcopyright protection isdefined as:awork hasbeen used with acontract with theauthor
orhissuccessor intitle; theconditions fortheuseofthework without theconsent oftheauthor have notbeen met,
orifgeneral rights orother moral rights oftheauthor have been violated. According toArticle 539, ifaviolation
hastaken place, theauthor orhissuccessor intitleafter theauthor 'sdeath andother persons specified inArticle
521oftheCode (thepeople assigned therights after theauthor 'sdeath) areentitled todemand therestoration of
violated rights (bymaking appropriate corrections, orpublishing inthepress anannouncement orother information
correcting theinfringement), aprohibition onpublishing thework, orthediscontinuation ofitsdistribution.
Theinfringer ofthecopyright shall beobligated toprovide compensation formoral damages inanamount
tobefixed bytheCounty Court .Theamount ofcompensation shall notbelessthan 500Litas (125 USD) and
notmore than 10000Litas (2500 USD). Theillegally-made copies may beconfiscated ordestroyed according to
decision oftheCounty Court. Theequipment used fortheillegal activity may beconfiscated.WT/ACC/LTU/7
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Intheevent theauthor orhissuccessor intitlehassuffered damages through violation oftheauthor 'srights,
theauthor shall enjoy theright todemand compensation fordamages, irrespective oftherequirement ofArticle
539. Inallcases, allproceeds gained orthatwere tobegained through illegal useofthework shall bereclaimed
infavor oftheauthor orhissuccessor intitle. Copies ofunlawfully reproduced work may betransferred tothe
author orhissuccessor intitleascompensation fordamages.
Trademarks andServicemarks
Inresponse totheclaim oftheholder ofamark, theCounty Court may adopt adecision toterminate any
actstheperformance orthelikely performance ofwhich may infringe therights conferred byparagraphs (1)to
(5)oftheLaw onTrademarks andServicemarks.
Inresponse totheclaim oftheholder ofamark, theCourt may adopt adecision thattheholder ofamark
isduecompensation asaresult ofdamages caused byinfringement oftherights conferred inparagraphs (1)through
(5)ofArticle 20oftheLaw onTrademarks andServicemarks.
Inaddition tothemeasures specified above, theCourt may re-establish theconditions thatexisted before
theinfringement. Tostop theinfringing actions, theCourt may seize thegoods, and, when necessary todestroy
illegally-used marks, may seize tools thatcould beused tomanufacture thegoods. TheCourt may alsoseize the
goods themselves ifitisnotpossible toremove theillegal mark from such goods.
Infringement proceedings shall beinstituted bytheholder ofthemark. Thebeneficiary ofalicence ofa
mark alsomay institute infringement proceedings unless otherwise stipulated inthelicence contract.
Anyother party tothelicence contract shall have theopportunity totakepartinCourt proceedings instituted
byanother party andtoreceive equitable compensation.
Patents
According totheLaw onPatents, theholder oforapplicant forapatent shall have theright toinstitute
County court proceedings against aperson whohasinfringed orisinfringing thepatent orpublished patent application
forwhich provisional protection wasgranted. Theholder oforapplicant forapatent may require thetermination
ofinfringing acts, aswellascompensation fortheinflicted damage. These same persons alsohave theright toinstitute
court proceedings against anyperson whoisperforming actswhich make itlikely thatsuch infringement willoccur.
Such proceedings may notbeinstituted later than three years from theestablishment ofthefactofinfringement.
Unless thelicence agreement provides otherwise, anylicencee may request theowner ofthepatent totake
measures toprotect hisrights obtained under thelicence agreement. Thelicence shall specify thelegal actsneeded
toprotect hisrights andtherelief desired.
Such licencee may, ifheproves thattheowner ofthepatent received hisrequest butfailed toinstitute
infringement proceedings within three months from thereceipt ofrequest, institute proceedings against theinfringer
inhisown name, after notifying hiswish tojoin theproceedings asaconcerned person.
Even before theexpiration ofthethree month period, theCourt may, ontherequest ofthelicencee, grant
anappropriate injunction toprevent infringement oftherights oftheowner ofthepatent ifthelicencee proves that
immediate action isnecessary toavoid substantial damage.
Ifthesubject-matter ofapatent isaprocess forobtaining aproduct andtheproduct produced bythedefendant
isnew, andthere isareason tobelieve thattheproduct isproduced byinfringing thepatent, buttheplaintiff is
unable though reasonable efforts todetermine theprocess actually used, thedefendant must prove thattheproduct
does notinfringe thepatent.WT/ACC/LTU/7
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Industrial designs
According totheLaw onIndustrial Design, inresponse toaclaim bytheholder ofaindustrial design,
theCounty Court may decide tostop anyactswhich infringe ormay infringe therights conferred byArticle 5of
thisLaw.
Inresponse totheclaim oftheholder ofanindustrial design, theCourt mayadopt adecision tocompensate
theholder fordamages suffered asaresult ofactscarried outwithout theconsent oftheholder asstipulated inArticle
5oftheLaw onIndustrial Design.
Other areas
Notyetelaborated.
(b) provisional measures
None.
(c) administrative procedures andmeasures
TheState Competition andConsumer Protection Office enforces theLaw onCompetition. Itsinvestigation
ofexemption granting andprohibitions indicated above inParts 2(c)(h) ofthisdocument isundertaken inresponse
toanapplication from interested parties andlegal ornatural persons, orontheinitiative oftheOffice.
During itsinvestigation ofunfair competition activity, theOffice hastheright toseize andhold thegoods
asprovided under Article 9oftheLaw onCompetition (illegal using offirm'sname, trade mark ormarking and
incorrect reference oforigin place ofgoods). Bydecision oftheCompetition Council, thegoods maybehelduntil
infringement oftheLaw onCompetition hasended.
TheOffice must ensure thesafety ofdocuments ofeconomic subjects andtheir commercial secrets.
Bydecision oftheCompetition Council, infringements oftheLaw onCompetition may bepunished by
pecuniary penalties inanamount nomore than 10percent oftheannual income oftheeconomic subject.
Decisions oftheCompetition Council andtheOffice may beappealed tothecourt ofjustice County Court
according toestablished procedures.
Losses ofeconomic subjects thataresuffered because ofinfringements oftheLaw onCompetition are
recovered according togeneral procedures ofcivil process.
Lithuania 'slegal system does notprovide administrative sanctions andprosecution regarding copyright.
Buttheamendment ontheCode ofAdministrative Offenses isapproved bytheGovernment ofLithuania andwill
provide sanctions andprosecution. Ithasbeen submitted totheParliament forconsideration. Itisexpected that
thisamendment willbeadopted inthenearest future.
(d) special requirements related toborder measures
Trademarks andService Marks
Article 29oftheLaw onTrademarks andService Marks provides thelegal foundation formeasures against
theimport andexport ofpirated trademarked goods. Theowner ofregistered trademark orlicence hasarightWT/ACC/LTU/7
Page 77
toapply inwriting tocustoms requesting theseizure ofexported orimported goods with amark which isconsidered
byhimasoffending hisrights inconnection with hisregistered trademark. Customs shall immediately inform the
public prosecutor, theholder ofthemark andimporter orexporter ofthegoods about such seizure.
Seized goods arereleased bycustoms 15days after their seizure iftheholder ofthemark hasnotsubmitted
adecision oftheCounty Court concerning thearrest ofthegoods, oradocument stating thattheCourt process
isunderway.
(e) criminal procedures andremedies
Criminal procedures andremedies currently exist only fortheinfringement ofcopyrights andtrademarks
andservice marks.
Copyrights
Under anamendment totheCriminal Code, theviolation ofauthor 'sandperformer 'smoral rights, orany
other violation ofcopyright (unlawful appropriation ofauthorship, unlawful reproduction ordistribution, orrequiring
theauthor torecognize another person asajoint author) shall bepunishable with penitentiary work ofuptotwo
years orafine.
Execution andprosecution isunder thecompetence ofpolice andpublic prosecutors.
Trademarks andService Marks
Under theCriminal Code, unauthorized useofthetrademark registered intheState Patent Bureau tomark
made goods ortherealization ofsuch goods shall bepunished byfineandprohibition from holding aparticular
position, performing acertain job,orperforming acertain activity foramaximum ofthree years.
Intheevent thatalarge amount ofgoods ismarked without authorization oftheholder ofamark, orwhen
thequality ofsomarked goods differs greatly from theoriginal goods, orifthemark holder 'senterprise hassuffered
large damages, thepenalty shall beimprisonment foramaximum ofthree years andfine; orfineandprohibition
from holding aparticular position, performing acertain job,orperforming acertain activity foramaximum of
fiveyears; orafine.
5. Laws, decrees, regulations andother legal acts relating totheabove
Thefirstlegislation inthefield ofindustrial property wasGovernmental Decree No.362 of20May 1992
"OnLegal Protection ofIndustrial Property Rights intheRepublic ofLithuania." Inaccordance with thisDecree,
valid patents forinventions, designs, authorship certificates andtrademark certificates issued until 30September
1993 bytheauthorities oftheformer USSR could bere-registered inLithuania.
TheLaw onCompetition wasadopted on29September 1992 andcame intoforce on1November 1992.
TheOrder “Enforcement against Unfair Competition Activities Prohibited bytheLaw onCompetition ”
wasapproved on29December 1992 bytheCompetition Council.
On3June 1993 theLaw onTrademarks andService Marks wasadopted; ithasbeen inforce since 1October
1993.
TheOrder “Enforcement ofAgreements (concerted activities) Prohibited bytheLawonCompetition because
they Restrict orHinder Competition between Economic Subjects ”wasapproved on11November 1993 bythe
Competition Council.WT/ACC/LTU/7
Page 78
On18January 1994 thePatent Law wasadopted; ithasbeen inforce since 1February 1994.
The Order “Enforcement andExplanation ofAbuse ofDominant Position Prohibited bytheLaw on
Competition ”wasapproved on7April 1994 bytheCompetition Council.
Under theLawontheAmendments andSupplements totheCivil Code oftheRepublic ofLithuania, Chapters
4and5(Articles 515-566) deal with copyright protection andneighboring rights. TheLaw hasbeen inforce
since 17May 1994.
On4July1995 theLaw onIndustrial Designs wasadopted; ithasbeen inforce since 1September 1995.
6. Statistical data
1. Applications filed forpatents with Lithuania 'sPatent Office andLithuania 'sdesignation/extension
ofprotectionpursuanttointernationalagreements.ApplicationsfiledwithLithuanianauthoritiesforindustrialdesigns
andtrademarks/servicemarks.
YearPatents -
Lithuania 's
Patent OfficePatents -under
Geneva PCTPatents-
extensions of
European
patentsIndustrial
designs -
Lithuanian
authoritiesTrademarks
-Lithuanian
authorities
1994* 89 4757 252 27 1584
1995** 75 7479 433 34 1823
*dataforthesecond halfyearof1994 (theperiod concerned withthebeginning oftheenforcement oftwoagreements
-thePCT andAgreement between Lithuania andEuropean Patent Organization -both asfrom July 5,1994)
**data forthefirst halfyear of1995
2. Collective administration ofrights forcopyrights:
LATGA -A(theLithuanian Association forWHAT) has1500members.
LATGA -A,hasconcluded contracts with Lithuanian users:
State andprivate Radio andTelevision stations 32
Cable transmission organizations 30
Restaurants 514
Hotels 51
Concert organizations 28
Disco 309
Shops 270
Cinemas 12
Recently aLithuanian Association ofMusical Industry wasestablished torepresent therights oftheproducers
ofsound recordings.WT/ACC/LTU/7
Page 79
ANNEX II
TRADE RELATED INVESTMENT MEASURES (TRIMS)
TheGovernment ofLithuania hascarefully reviewed theprovisions oftheWTO Agreement onTrade-Related
Investment Measures (TRIMs), including itsAnnex containing anillustrative listofTRIMs, and, after comparison
ofthese provisions with Lithuanian legislation andpractice, hasconcluded thatLithuania does notmaintain any
measures thatcould beconstrued as“TRIMs ”.WT/ACC/LTU/7
Page 80ANNEX III
CUSTOMS DUTY RATE FOR IMPORT GOODS APPLIED BYLITHUANIA
Code ofgroup of
goodsDescription ofgroup ofgoods Rate of
tariff of
autono-
mous duties
(inpercent)Rate of
tariff of
conventional
duties
(inpercent)Rate oftariff ofpreferential duties (inpercent)
Applied
toEU
countriesApplied
to
NorwayApplied to
SwitzerlandApplied to
EFTA
countries **
1 2 3 4 5 6 7 8
Section I.Live animals; animal products
01 Live animals 25 20 18 20 20 20
0201 Meat ofbovine, fresh, chilled 30 30 29* 30 30 30
0202 Meat ofbovine, frozen 30 30 29 30 30 30
0203 Meat ofswine, fresh, chilled orfrozen 30 30 29* 30 30 30
0204 Meat ofsheep orgoats, fresh, chilled or
frozen30 30 19 30 30 30
0205 Meat ofhorses, asses, mules orhinnies,
fresh, chilled orfrozen30 30 19 30 30 30
0206 10-0206 22,
0206 29109-
0206 29910,
0206 29999-0206 90Edible offal ofbovine animals, swine, sheep,
goats, horses, asses, mules orhinnies, fresh,
chilled orfrozen30 30 0 30 30 30WT/ACC/LTU/7
Page 811 2 3 4 5 6 7 8
0207 1011-0207 2390,
0207 3911-0207 3925,
0207 3931-0207 3947,
0207 3953-0209 3983,
0207 4110-0207 4171,
0207 4210-0207 4271,
0207 4311-0207 4381Meat ofpoultry 25 25 23* 25 25 25
0208 10 Meat ofrabbits 35 30 23 30 30 30
0209 Pigfatfreeoflean meat andpoultry fat(not
rendered), fresh, chilled, frozen, salted, in
brine, dried orsmoked30 30 30* 30 30 30
0210 Meat andedible meat offal, salted, inbrine,
dried orsmoked; edible flours andmeals of
meat andmeat offal30 30 28 30 30 30
0305 3011,0305 3019,
0305 3090-0305 42,
0305 4930-0305 4990,
0305 5930,0305 5990-
0305 62,0305 6990Fish -dried, salted, smoked 40 30 30 0 30,butfor
saltwater fish,
carps, eels
andsalmon -
029,butthere is
duty free(0)
quota -340
tons forthe
year (applied
justtoIceland)
0401 Milk andcream, notconcentrated nor
containing added sugar orother sweetening
matter20 20 20 20 20 20
0402 1011-0402 2199,
0402 2915-0402 9999Milk andcream, concentrated orcontaining
added sugar orother sweetening matter20 20 20 20 20 20
0403 1002-0403 1036 Yogurt, notflavoured norcontaining added
fruit, nuts orcocoa20 20 18* 20 20 20
0403 9011-0403 9069 Buttermilk, curdled milk andcream, kephir
andother fermented oracidified milk and
cream, whether ornotconcentrated,
excluding yogurt, whether ornotcontaining
added sugar orother sweetening or
flavouring matter, oradded fruit, nuts or
cocoa20 20 18* 20 20 20WT/ACC/LTU/7
Page 821 2 3 4 5 6 7 8
0403 1051-0403 1099 Yogurt, flavoured orcontaining added fruit,
nuts orcocoa20 20 16 20 16 16
0403 9071-0403 9099 Buttermilk, curdled milk andcream, kephir
andother fermented oracidified milk and
cream, whether ornotconcentrated,
excluding yogurt, whether ornotcontaining
added sugar orother sweetening or
flavouring matter, oradded fruit, nuts or
cocoa20 20 16 20 20 16
0404 Whey, whether ornotconcentrated or
containig added sugar orother sweetening
matter; products consisting ofnatural milk
constituents, whether ornotcontaining added
sugar orother sweetening matter, not
elsewhere specified orincluded20 20 20 20 20 20
0405 Butter andother fatsandoilsderived from
milk45 45 45 45 45 45
0406 Cheese andcurd 35 30 28* 30 30 30
0407, excl. 0407 0030 Birds ’eggs 30 30 0 30 30 30
0407 0030 Birds ’eggs (ofpoultry) 30 30 30 30 30 30
0408,
excl. 0408 9180Bird’seggs, notinshell, andeggyolks,
fresh ordried30 30 0 30 30 30
0408 9180 Whole eggs, dried 30 30 30 30 30 30
0409 Natural honey 40 30 8 30 30 30
0501-0504,
0505 90-0509,
0511 91-0511 9980Products ofanimal origin, notelsewhere
specified orincluded10 5 0 5 5 5
0505 1090 Feathers ofakind used forstuffing; down 10 5 5 5 5 5
Section II.Products ofvegetable originWT/ACC/LTU/7
Page 831 2 3 4 5 6 7 8
0601-0602,
0603 90-0604,
0703 1011,0703 1090,
0703 90,0704 20,
0704 9090,0705 21,
0705 29,0706 9030,
0707 0090-0709 40,
0709 6091-0710 30,
0710 80-0711 9010,
0711 9040-0712, 0714,
0808 2090,0809 4090,
0811-0812, 0814,
0908 20,0909 10,
0909 30-0910 50,
0910 99,1302 11-
1302 19,1401-1404
10,1404 90Products ofvegetable origin 10 5 0 5 5 5
0603 1011 Cutfresh roses (from June 1toOctober 31) 55 50 40* 50 50 50
0603 1013 Cutfresh carnations (from June 1toOctober
31)45 40 30* 40 40 40
0603 1015 Cutfresh orchids (from June 1toOctober
31)45 40 30* 40 40 40
0603 1021 Cutfresh gladioli (from June 1toOctober
31)35 30 25* 30 30 30
0603 1025 Cutfresh chrysanthemums (from June 1to
October 31)35 30 30 30 30 30
0603 1051 Cutfresh roses (from November 1toMay
31)45 40 35* 40 40 40
0603 1053 Cutfresh carnations (from November 1to
May 31)35 30 30 30 30 30
0603 1055 Cutfresh orchids (from November 1toMay
31)35 30 30 30 30 30
0603 1061 Cutfresh gladioli (from November 1toMay
31)25 20 0 20 20 20WT/ACC/LTU/7
Page 841 2 3 4 5 6 7 8
0603 1065 Cutfresh chryzanthemums (from November
1toMay 31)35 30 30 30 30 30
0603 1029,0603 1069 Others cutfresh flowers 25 20 20 20 20 20
0701-0701 09,
0701 11-0701 89,
0701 91-0701 99Potatoes 20 20 0 20 20 20
0701 10 Seed potatoes 20 20 10 20 20 20
0701 90 Other 20 20 20 20 20 20
0702 0010 Tomatoes (from November 1toMay 14) 15 10 10 10 10 10
0702 0090 Tomatoes (from May 15toOctober 31) 45 40 40 40 40 40
0703 1019,0703 2000 Other onions andgarlic 10 5 4 5 5 5
0704 1010,0704 1090 Cauliflowers andheaded broccoli: (from 15
April to30November andfrom 1December
to14April)10 5 4 5 5 5
0704 9010 White andredcabbages 25 20 0 20 20 20
0705 1110,
0705 1190,
0705 1900Lettuce 10 5 4 5 5 5
0706 1000,
0706 9011,
0706 9019,
0706 9090Carrots, turnips, salad beret, salsify, celeriac,
radishes andsimilar edible roots, fresh or
chilled10 5 4 5 5 5
0707 0011 Cucumbers (from November 1toMay 15) 25 20 20 20 20 20
0707 0019 Cucumbers (from May 16toOctober 31) 55 50 50 50 50 50
0709 6010 Sweet peppers 10 5 4 5 5 5
0710 40 Sweet corn (Zea mays var.saccharata) 10 5 0 5 0 0
0711 9030 Sweet corn (Zea mays var.saccharata) 10 5 0 5 5 0
0808 1010 Apples forcider (from September 16to
December 31)25 20 0 20 20 20
0808 1031-0808 1059 Apples (from August 1toMarch 31) 25 20 15 20 20 20
0808 2010 Pears (from August 1toDecember 31) 15 10 10 10 10 10
0808 2039 Pears (from August 1toDecember 31) 15 10 10 10 10 10
0809 2020,0809 2040 Cherries (from May 1toJuly 15) 15 10 0 10 10 10WT/ACC/LTU/7
Page 851 2 3 4 5 6 7 8
0809 4011 Plums (from July 1toSeptember 30) 15 10 10 10 10 10
0810 1010 Strawberries andwild strawberries
(from May 1toJuly 31)15 10 10 10 10 10
1001 90-1004 Cereals 35 30 30 0 30 30
1101 Wheat flour 35 30 28,but
notless
than 50
USD/t30 30 30
1102 10 Ryeflour 35 30 0 30 30 30
1102 20-1102 90 Maize (corn) flour andother flour 15 10 0 10 10 10
1103 1930 Cereals groats, meal from barley 55 50 48 50 50 50
1104 Compound feed 35 30 30 30 30 30
1107 10 Malt, notroasted 35 30 28 30 30 30
1108 13 Potato starch 55 50 48 50 50 50
1214 9091,
1214 9099Compound feed 35 30 30 30 30 30
1302 31-1302 39 Mucilages andthickeners, modified ornot
modified, derived from vegetable products10 5 0 5 0,butfornot
modified -50
1404 20 Cotton linters 10 5 0 5 0 0
Section III.Animal andvegetable fats and
oilsandtheir cleavage products; prepared
edible fats; animal orvegetable waxes
1501-1503 Animal fats 10 5 5 5 5 5
1504 Fats offish 10 5 5 0 5 5
1505 Wool grease andfatty substances derived
therefrom (including lanolin)10 5 0 5 5 5
1506 Other animal fatsandoilsandtheir
fractions, whether ornotrefined, butnot
chemically modified10 5 5 5 5 5
1516 10 Animal fatsandoilsandtheir fractions 10 5 5 5,butfor
fatsand
oilsoffish
-05 5WT/ACC/LTU/7
Page 861 2 3 4 5 6 7 8
1516 2010 Hydrogenated caster oil,socalled
“opal-wax ”10 5 0 5 0 0
1516 2091 Other vegetable fatsandoilsandtheir
fractions10 5 5 5 5 5
1517 1090 Margarine, excluding liquid margarine 25 20 0 0 20 20
1517 9010 Other margarine 10 5 5 0 5 5
1517 9090-1517 9099 Other margarine 10 5 0 0 5 5
1518, excl.
1518 0010Animal orvegetable fatsandoilsandtheir
fractions, boiled, oxidised, dehydrated10 5 5 5 5 5
1518 0010 Linoxyn 10 5 5 5 5 0
1519, excl. 1519 13 Fatty acids andalcohols 10 5 0 5 5 5
1519 13 Talloilfatty acids 10 5 0 5 0 5
1520-1521 Glycerol (glycerine) andwaxes 10 5 0 5 5 5
Section IV.Prepared foodstuffs; beverages,
spirits andvinegar; tobacco and
manufactured tobacco substitutes
1601 Sausages andsimilar products ofmeat 14 14 14 14 14 14
1602, excl.
1602 4919Preserved meat 45 40 39 40 40 40
1602 4919 Preserved meat 45 40 0 40 40 40
1603 Extracts andjuices ofmeat, fishor
crustaceans, molluscs orother aquatic
invertebrates10 5 0 5,butfor
extracts
andjuices
ofmeat of
whale,
fish,
crustaceans
,molluscs
orother
aquatic
invertebrat
es-05,butfor
extracts and
juices offish,
crustaceans,
molluscs or
other aquatic
invertebrates
-05
1604 11-1604 20 Preserved fish 40 35 30 0 0 33(applied
justtoIceland)WT/ACC/LTU/7
Page 871 2 3 4 5 6 7 8
1604 30 Caviar andcaviar substitutes 10 5 5 0 0 5
1605 Crustaceans, molluscs andother aquatic
invertebrates, prepared orpreserved10 5 0 0 0 5
1701 Sugar 35,but not
lessthan
0.75 LTL/kg35,butnot
lessthan 0.75
LTL/kg35,but
notless
than 0.75
LTL/kg35,butnot
lessthan
0.75
LTL/kg35,butnot
lessthan 0.75
LTL/kg35,butnotless
than 0.75
LTL/kg
1702 30,1702 40,
1702 90,excl.
1702 9010Other sugar 40 40 39 40 40 40
1702 9010 Solid chemically pure maltose 40 40 0 40 0 0
1704 1011-
1704 9010Sugar confectionery 30 25 18 0 0 18
1704 9030-
1704 9051,
1704 9061-
1704 9099Sugar confectionery 30 25 18 0 25 18
1806 10-1806 32 Chocolate andother products containing
cacao35 30 25 30 25 25
1806 90 Chocolate andother products containing
cacao35 30 25 0 0 25WT/ACC/LTU/7
Page 881 2 3 4 5 6 7 8
1901 20,1905 9030 Preparations ofcereals, flour andstarch 10 5 5 0 5,butfor
preparations
other than
containing by
weight more
than 10% but
notmore
than 20%of
meat, offal,
blood or
sausage or
any
combination
thereof -05
1901 90,excl.
1901 9090Preparations ofcereals, flour andstarch 10 5 0 0 0 0
1901 9090 Other preparations ofcereals, flour andstach 10 5 0 0 5,butfor
preparations
(other than
thegoods of
heading 0401
to0404 in
powder, grain
orother solid
forms) -00
1902 Pasta, whether ornotcooked orstuffed (with
meat orother substances) orotherwise
prepared10 5 5 5 5 5WT/ACC/LTU/7
Page 891 2 3 4 5 6 7 8
1903 Tapioca andsubstitutes thereof prepared
from starch, intheform offlakes, grains,
pearls, siftings orinsimilar forms10 5 0 5 0 0
1904 Prepared foods obtained bytheswelling or
roasting ofcereals orcereal products (for
example, corn flakes); cereals, other than
maize (corn), ingrain form, pre-cooked or
otherwise prepared10 5 0 5 5,butfor
preparations
other than
containing by
weight more
than 10% but
notmore
than 20%of
meat, offal,
blood or
sausage or
any
combination
thereof -00
1905 10-1905 40,
1905 9040-1905 9090Flour confectionery 35 30 24 0 30,butfor
preparations
other than
containing by
weight more
than 10% but
notmore
than 20%of
meat, offal,
blood or
sausage or
any
combination
thereof -024
2001 10,2001 20 Cucumbers, onions, preserved byvinegar or
acetic acid45 40 38 40 40 40WT/ACC/LTU/7
Page 901 2 3 4 5 6 7 8
2001 9030 Sweet corn (Zea mays var.saccharata) 10 5 0 5 0 0
ex2001 9095 Tomatoes, redbeets, cabbages, green peas,
preserved byvinegar oracetic acid45 40 38 40 40 40
2001 9010,2001 9020,
2001 9040-2001 9085,
2002-2004 1010,
2004 1099,
2004 9030-2005 10,
2005 2020-2005 7090,
2005 90-2007 9935,
2007 9951,2007 9999,
2008 1191-2008 8099,
2008 9211-2008 9979,
2008 9991,2008 9999,
2102 2090,2102 30,
2103 30Products ofvegetables, fruit,nuts and
other edible parts ofplants; various
foodstuffs10 5 0 5 5 5
2004 1091,2005 2010 Potatoes (intheform offlour, meal, or
flakes), prepared orpreserved otherwise than
byvinegar oracetic acid10 5 5 5 5 5
2004 9010 Sweet corn (Zea mays var.saccharata) 10 5 0 5 5,butfor
sweet corn,
incontainers
ofaweight
notexeeding
5kg-05,butfor
sweet corn, in
containers ofa
weight not
exeeding 5kg
-0
2005 80 Sweet corn (Zea mays var.saccharata) 10 5 0 5 0 0
2007 9939 Apple puree, jams, apple paste containing
added sugar45 40 38 40 40 40
2007 9955,2007 9991 Apple puree, jams, apple paste containing
added sugar, including compotes45 40 0 40 40 40
2008 1110,2008 91,
2008 9985Peanut butter, palm hearts, corn other than
sweet corn (Zea mays var.saccharata)10 5 0 5 0 0WT/ACC/LTU/7
Page 911 2 3 4 5 6 7 8
2009 11-2009 60,
2009 80-2009 90,
2104 20Fruit juices andvegetable juices,
unfermented andnotcontaining added spirit,
whether ornotcontaining added sugar or
other sweetening matter; various foodstuffs10 5 0 0 5 5
2009 70 Apple juice 45 40 38* 0 40 40
2101 10,2101 20,
2101 3019,2101 3099Extracts, essences andconcentrates, of
coffee, teaormate andpreparations with a
basis ofthese products orwith abasis of
coffee, teaormate; roasted coffee
substitutes, andextracts, essences and
concentrates thereof10 5 0 5 0 0
2101 3011,2101 3019 Roasted chicory andother roasted coffee
substitutes, andextracts, essences and
concentrates thereof10 5 0 5 5 0
2102 10 Active yeast 20 15 10 15 15 10
2102 2011,2102 2019 Yeasts, natural, dead 10 5 0 5 0 0
2103 10,2103 20,
2103 90Sauces andpreparations therefor; mixed
condiments andmixed seasonings10 5 0 5 0 0
2104 1090 Soups andbroths andpreparations theref. 10 5 0 0 0 0
2105 Ice-cream andother edible ice 35 30 24 30 24 24
2106 10 Protein concentrates andtextured protein
substances10 5 0 5 0 0WT/ACC/LTU/7
Page 921 2 3 4 5 6 7 8
2106 90,
excl. 2106 9055Food preparations notelsewhere specified or
included10 5 0 5,butfor
fat
emulsion
andsimilar
preparation
s
containing
byweight
more than
15% of
milk fat-
05,butfor
preparartions
other than
sweeterners
inform of
tablets or
preparations
containing by
weight more
than 10% but
notmore
than 20%of
meat, offal,
blood or
sausage or
any
combination
thereof -00
2106 9055 Flavoured orcoloured sugar, syrups, glucose 10 5 5 5,butfor
fat
emulsion
andsimilar
preparation
s
containing
byweight
more than
15% of
milk fat-
05 5
2202 10 Waters, including mineral waters andaerated
waters, containing added sugar orother
sweetening matter orflavoured20 15 10 15 10 10WT/ACC/LTU/7
Page 931 2 3 4 5 6 7 8
2202 90 Other non-alcoholic beverages 20 15 10 15 15,butfor
other than
fruit or
vegetable
juices diluted
inwater or
aerated -1010
2203 Beer made from malt 40 35 30 35 30 30
2204 1011-2204 2110,
2204 2910Champagne, sparkling wine, wine of
increased pressure, wine ofexcess pressure55,butnot
lessthan 4
LTL/liter50,butnot
lessthan 4
LTL/liter19,but
notless
than 1
USD/liter50,butnot
lessthan 4
LTL/liter50,butnot
lessthan 4
LTL/liter50,butnotless
than 4
LTL/liter
2204 2121-2204 2129,
2204 2921-2204 2929Wine offresh grapes (including fortified
wines)of anactual alcoholic strength by
volume notexceeding 13% vol25,butnot
lessthan 1
LTL/liter20,butnot
lessthan 1
LTL/liter19,but
notless
than 1
USD/liter20,butnot
lessthan 1
LTL/liter20,butnot
lessthan 1
LTL/liter20,butnotless
than 1
LTL/liter
2204 2131-2204 2149,
2204 2931-2204 2949,
2204 30Wine offresh grapes (including fortified
wines), vermouth andflavoured wine ofan
actual alcoholic strength byvolume
exceeding 13% volbutnotexceeding 18%
vol,grape must25,butnot
lessthan 1.5
LTL/liter20,butnot
lessthan 1.5
LTL/liter19,but
notless
than 1
USD/liter20,butnot
lessthan
1.5
LTL/liter20,butnot
lessthan 1.5
LTL/liter20,butnotless
than 1.5
LTL/liter
2205 1010,2205 9010 Wine offresh grapes (including fortified
wines), vermouth andflavoured wine ofan
actual alcoholic strength byvolume
exceeding 13% volbutnotexceeding 18%
vol,grape must25,butnot
lessthan 1.5
LTL/liter20,butnot
lessthan 1.5
LTL/liter15 20,butnot
lessthan
1.5
LTL/liter15 15
2204 2151-2204 2190,
2204 2951-2204 2990Wine offresh grapes (including fortified
wine), vermouth andflavoured wine ofan
actual alcoholic strength byvolume
exceeding 18% vol,other fermented
beverages25,butnot
lessthan 2
LTL/liter20,butnot
lessthan 2
LTL/liter19,but
notless
than
1
USD/liter20,butnot
lessthan 2
LTL/liter20,butnot
lessthan 2
LTL/liter20,butnotless
than 2
LTL/literWT/ACC/LTU/7
Page 941 2 3 4 5 6 7 8
2205 1090,2205 9090 Wine offresh grapes (including fortified
wine), vermouth andflavoured wine ofan
actual alcoholic strength byvolume
exceeding 18% vol,other fermented
beverages25,butnot
lessthan 2
LTL/liter20,butnot
lessthan 2
LTL/liter15 20,butnot
lessthan 2
LTL/liter15 15
2206 Other fermented beverages; mixtures of
fermented beverages andmixtures of
fermented beverages andnonalcoholic
beverages, notelsewhere specified or
included25,butnot
lessthan 2
LTL/liter20,butnot
lessthan 2
LTL/liter19 20,butnot
lessthan 2
LTL/liter20,butnot
lessthan 2
LTL/liter20,butnotless
than 2
LTL/liter
2207-2208 Undenatured ethyl alcohol, denatured ethyl
alcohol, vodka, liqueurs andother spiritous
beverages100, butnot
lessthan 0.3
LTL for1%
ofan
alcoholic
strength
byvolume
per
oneliter50,butnot
lessthan 0.3
LTL for1
percent ofan
alcoholic
strength by
volume per
oneliter50,but
notless
than 0.075
USD/%
vol/litre50,butnot
lessthan
0.3LTL
for1
percent of
an
alcoholic
strength by
volume per
oneliter50,butnot
lessthan 0.3
LTL for1
percent ofan
alcoholic
strength by
volume per
oneliter50,butnotless
than 0.3LTL
for1percent
ofanalcoholic
strength by
volume per
oneliter
2209 Vinegar andsubstitutes forvinegar obtained
from acetic acid10 5 5 5 5 5
2309 90930 Premixtures 20 20 0 0 0 0
2402 Cigars, cheroots, cigarillos andcigarettes,
tobacco oroftobacco substitutes35,but not
lessthan 16
LTL for
1000 units30,butnot
lessthan 16
LTL per1000
units25,but
notless
than 4
USD per
1000 units30,butnot
lessthan
16LTL
per1000
units30,butnot
lessthan 16
LTL per
1000 units30,butnotless
than 16LTL
per1000 units
Section V.Mineral productsWT/ACC/LTU/7
Page 951 2 3 4 5 6 7 8
2523 29-2523 9090 Portland cement, aluminous cement, slag
cement, supersulphate cement, andsimilar
hydraulic cements25 20 0 0 0 0
Section VI. Products ofthechemical or
allied industries
2804 10 Hydrogen 20 15 0 0 0 0
2804 30 Nitrogen 20 15 0 0 0 0
2804 40 Oxygen 20 15 0 0 0 0
2811 21 Carbon dioxide 20 15 0 0 0 0
2901 29 Acetilen 20 15 0 0 0 0
3401 Soap; organic surface-active products and
preparations foruseassoap, intheform of
bars, cakes, moulded pieces orshapes,
whether ornot containing soap; paper,
wadding, feltandnonwovens, impregnated,
coated orcovered with soap ordetergent15 10 10 0 0 0
3402 20-3402 90 Organic surface-active agents (other than
soap); surface-active preparations, washing
preparations (including auxiliary washing
preparations) and cleaning preparations,
whether ornotcontaining soap, other than
those ofheading No.340115 10 10 0 0 10
3404-3406 Artificial andprepared waxes, cleaning
andpolishing preparations, candles and
similar articles15 10 10 0 0 0
3605 Matches 50 25 25 0 0 0
Section VII. Plastics and articles thereof;
rubber andarticles thereof
3917 21 Tubes, pipes andhoses, rigid ofpolymers of
ethylene15 10 0 0 0 0WT/ACC/LTU/7
Page 961 2 3 4 5 6 7 8
3917 2291-3917 2299,
3917 2391-3917 2399,
3917 2915-3917 3190,
3917 3231,3917 3251,
3917 3299,3917 33,
3917 3915,3917 4010,
3918,
3920 1029-3920 1090,
3920 41-3920 4219,
3920 4299-3920 7310,
3920 7390-3920 79,
3920 92-3920 99,
3921 12,
3921 14-3921 9011,
3921 9020-3921 9030,
3921 9043-3922,
3923 21,
3923 3090-3923 50,
3923 9090-3925Articles ofplastics 15 10 10 0 0 0
3920 20 Other plates, sheets, film, foilandstrip, of
polymers ofpropylene, non-cellular andnot
reinforced, laminated, supported orsimilarly
combined with other materials15 10 10 0 0 10
3926 Other articles ofplastics andarticles ofother
materials ofheadings Nos. 3901 to391415 10 10 0 0 10
Section VIII. Raw hides andskins, leather,
furs, furskins andarticles thereof
4201 Saddlery andharness foranyanimal, ofany
material20 10 10 0 0 0
4202 Articles ofleather; saddlery and harness;
travel good; handbags andsimilar containers20 10 10 0 0 10
4203 Articles ofapparel andclothing accessories,
ofleather orofcomposition leather20 10 10 0 0 10WT/ACC/LTU/7
Page 971 2 3 4 5 6 7 8
4204-4206 Articles ofleather, orofcomposition leather;
articles ofgut(other than silk-worm gut), of
goldbeater ’sskin, ofbladders oroftendons20 10 0 0 0 0
4303-4304 Articles ofapparel, clothing accessories,
other articles offurskin; artificial furand
articles thereof20 5 0 0 0 0
Section IX.Wood andarticles ofwood;
wood charcoal; cork andarticles ofcork;
manu-factures ofstraw, ofesparto orof
other plaiting materials; basketware and
wickerwork
4410 1010,
4410 1050-4410 9090Particle board ofwood 15 10 10 0 0 0
4411 Fibreboard ofwood 15 10 10 0 0 0
4413-4417, 4419, 4420 Articles ofwood 15 10 10 0 0 0
4418, 4421 Articles ofwood 15 10 10 0 0 10
46 Manufactures ofstraw orofother plaiting
materials; basketware andwickerwork15 10 0 0 0 0
Section X.Pulp ofwood orofother fibrous
cellulosic material; waste and scrap of
paper orpaperboard; paper andpaperboard
andarticles thereof
4802 52 Paper ofkind used forwriting,
printing, offset paper10 10 10 0 0 0
4807 1000 Paper andpaperboard, laminated internally
with bitumen, tarorasphalt20 15 0 0 0 0
Section XI.Textiles andtextile articles
5007 10-5007 2019,
5007 2031-5007 2071,
5007 9030-5007 9090Woven fabrics ofsilk 20 15 0 0 0 0WT/ACC/LTU/7
Page 981 2 3 4 5 6 7 8
5111-5113 Woven fabrics ofwool 20 15 0 0 0 15
5208 2190-5208 59,
5209 21-5209 59,
5210 2110-5210 59,
5211 21-5211 59,
5212 12-5212 15,
5212 22-5212 25Woven fabrics ofcotton 20 15 0 0 0 15
5309 Woven fabrics offlax 20 15 0 0 0 15
5403 2010 Textured yarn ofcellulose acetate 15 10 0 0 0 0
5403 42 Multiple (folded) orcabled yarn ofcellulose
acetate15 10 0 0 0 0
5407 10-5407 2011,
5407 2090-5407 4210,
5407 43-5408Woven fabrics ofsynthetic andartificial
filament yarn20 15 0 0 0 15
5512 19-5512 99,
5513 21-5513 49,
5514 21-5515,
5516 12-5516 14,
5516 22-5516 34,
5516 42-5516 94Woven fabrics ofsynthetic andartificial
staple fibres20 15 0 0 0 15
57 Carpets andother textile floor coverings 40 25 0 0 0 25
5801-5806 3210,
5806 39-5811Special woven fabrics, tufted textile fabrics,
lace, tapestries; trimmings, embroidery15 10 0 0 0 10
5904 Linoleum, whether ornotcuttoshape; floor
coverings consisting ofacoating orcovering
applied onatextile backing, whether ornot
cuttoshape15 10 0 0 0 10
60 Knitted orcrocheted fabrics 20 15 0 0 0 15
6101 10-6115 92,
6115 9330-6117Articles ofapparel andclothing accessories,
knitted orcrocheted (made-up knitted or
crocheted articles)25 15 0 0 0 15WT/ACC/LTU/7
Page 991 2 3 4 5 6 7 8
62 Articles ofapparel andclothing accessories
(made uparticles oftextile fabrics, exluding
knitted orcrocheted articles)25 15 0 0 0 15
6301-6304, 6305 90 Other made-up textile articles andtheir sets 25 15 0 0 0 15
Section XII. Footwear, headgear,
umbrellas, sunumbrellas, walking -
sticks, seat-sticks, whips, riding -crops
and parts thereof; prepared feathers and
articles made thereof; artificial flowers;
articles ofhuman hair
6401, 6404-6405 Footwear 25 10 10 0 0 0
6402 Other footwear with outer soles anduppers
ofrubber orplastics25 10 10 0 0 10
6403 Footwear with outer soles ofrubber, plastics,
leather orcomposition leather anduppers of
leather25 10 5 0 0 5
65 Headgear andparts therwof 25 10 0 0 0 10
6601 10,6601 91,
6601 9990-6603Umbrellas, sticks, whips, riding crops 10 5 0 0 0 5
6601 9911,6601 9919 Umbrellas with acover oftextile material 25 15 0 0 0 15
67 Prepared feathers anddowns andarticles
made hereof;artificial flowers; articles of
human hair15 10 0 0 0 10
Section XIII. Articles ofstone, plaster,
cement, asbestos, mica orsimilar
materials; ceramic products; glass and
glassware
6807 Articles ofasphalt orofsimilar material 20 15 0 0 0 15
6901,
6904-6907 10,
6907 9093-6914Ceramic products 10 5 0 0 0 5WT/ACC/LTU/7
Page 1001 2 3 4 5 6 7 8
7001-7002, 7004 1010,
7006-7009,
7010 9021-7010 9041,
7010 9047-7010 9067,
7010 9087-7011 10,
7011 90-7014,
7015 90-7016 9010,
7018-7019 10,
7019 90-7020Glass andglassware 10 5 0 0 0 5
7010 9010 Preserving jars(sterilizing jars) 35 30 0 0 0 30
7010 9043,7010 9045 Bottles ofcolourless glass 35 30 0 0 0 30
Section XV. Base metals andarticles of
base metal
8309 10 Crown corks 30 20 0 0 0 20
8309 9090 Preserving lids 20 10 0 0 0 10
8311 10 Electrodes forwelding 20 10 0 0 0 10
Section XVI. Machinery and mechanical
appliances; electrical equipment; parts
thereof; sound recorders andreproducers,
television image andsound recorders and
reproducers, andparts andaccessories of
such articles
8403 10 Central heating boilers 15 10 10 0 0 10
8414 30309 Compressors ofakind used inrefrigerating
equipment without theecological clean
agents offreezing15 10 10 0 0 10
8418 21 Refrigerators, household type, compression
type25 20 20 0 0 20
8418 22-8418 40 Refrigerators ofhousehold type andfreezers 25 20 20 0 0 0
8506 1111,8506 1119,
8506 1191,8506 1199Primary cells andprimary batteries 25 20 20 0 0 0WT/ACC/LTU/7
Page 1011 2 3 4 5 6 7 8
8506 1115,8506 1195,
8506 12-8506 19,8506
90Primary cells andprimary batteries 25 20 0 0 0 0
8509 Electro-mechanical domestic appliances, with
self-contained electric motor15 10 10 0 0 10
8519, 8520 Magnetic tape recorders andother sound
recording apparatus10 10 10 0 0 0
8528 1041-
8528 1049,
8528 1072,
8528 1076,
8528 1098,
8528 20Television receivers (including video
projectors), whether ornotincorporating
radio-broadcast receivers orsound orvideo
recording orreproducing apparatus20 10 10 0 0 0
8528 1052-8528 1056 Television receivers (including video
projectors), whether ornotincorporating
radio-broadcast receivers orsound orvideo
recording orreproducing apparatus20 10 0 0 0 0
8544 1110 Lacquered orenamelled wire ofcopper 15 10 0 0 0 0
8544 5100 Wire foravoltage exceeding 50volts, but
notexceeding 1000 volts fitted with
connectors15 10 0 0 0 0
Section XVII. Vehicles, aircraft, vessels and
associated transport equipment
8703 21905,
8703 22905,
8703 23905,
8703 24905,
8703 31905,
8703 32905,
8703 33905Motor cars, produced more then 7years but
notmore then 10years5,butnot
lessthan 0.2
LTL/1 cubic
centimeter of
engine
working
volume5,butnot
lessthan 0.2
LTL/1 cubic
centimeter of
engine
working
volume5 0 0 0WT/ACC/LTU/7
Page 1021 2 3 4 5 6 7 8
8703 21909,
8703 22909,
8703 23909,
8703 24909,
8703 31909,
8703 32909,
8703 33909Motor cars, produced more then 10years 10,butnot
lessthan 0.8
LTL/1 cubic
centimeter of
engine
working
volume10,butnot
lessthan 0.8
LTL/1 cubic
centimeter of
engine
working
volume10 0 0 0
Section XVIII. Optical, pfotographic,
cinematographic, measuring, checking,
precision, medical orsurgical instruments
andapparatus; clocks andwatches; musical
instruments parts andaccessories thereof
9028 20 Liquid meters 15 10 10 0 0 0
Section XX. Miscellaneous manufactured
articles
9401, 9403 10,
9403 30,
9403 50-9403 6090,
9403 80,9403 9030Furniture, bedding, cushions andsimilar
stuffed furnishings30 25 25 0 0 25
9403 2010,9403 40,
9403 9090Furniture, bedding, cushions andsimilar
stuffed furnishings30 25 25 0 0 0
9404 10-9404 2990 Mattresses andmattress supports 15 10 0 0 0 0
9404 30-9404 9090 Sleeping bags andother articles ofbedding
andsimilar furnishing30 25 0 0 0 0
9405 10-9405 30,
9405 50-9405 99Lamps andlighting fittings 10 10 10 0 0 10WT/ACC/LTU/7
Page 1031 2 3 4 5 6 7 8
9601, 9602,
9606 21,9606 22,
9613-9616, 9618Miscellaneous manufactured articles
(carving material andarticles ofthese
materials, cigarette lighters, smoking
pipes, combs, scent sprays, tailors '
dummies andother similar articles)10 5 0 0 0 0
9603 90 Bristle brushes 25 10 0 0 0 0
*Customs duties onimport ofthese products originating inthecountries oftheEUareapplied within thetariff quotas asspecified inAnnex 13oftheFree
Trade Agreement between theRepublic ofLithuania andtheEU(seetheGovernment Resolution NO.205 (8February 1995)).
**From the1stofJune, 1996 preferencial customs duties applied toNorway andSwitzerland willbereplaced bypreferencial customs duties applied inaccordance
with signed Free Trade Agreement between theEFTA States andtheRepublic ofLithuania (theeighth column ofthistable).
1.Codes ofgroups (goods) arepresented according totheEEC Harmonized Commodity Description andCoding System.
2.Goods without codes herein aresubject toazero ratecustoms duties.
3.Autonomous andconventional customs duties areapplied according theResolution NO.281 (28February 1995).
4.Preferential customs duties areapplied togoods originating inthose countries which signed FreeTrade Agreements withtheRepublic ofLithuania (inaccordance
with thespecial annexes tothose agreements).
5.Lithuania applies conventional customs duties onimports ofagricultural products falling within Chapters 1to24oftheHarmonized Commodity Description
andCoding System andzeroratecustoms duties onimports ofindustrial products falling within Chapters 25to97originating inLatvia andEstonia inaccordance
with theFree Trade Agreement between Lithuania, Estonia andLatvia.WT/ACC/LTU/7
Page 104
ANNEX IV
GOODS FREE FROM CUSTOMS DUTY IMPORTED INACCORDANCE WITH
QUOTAS ISSUED BYTHE MINISTRIES (GENERAL TARIFF QUOTAS)*
HScode Description ofgroup ofgoods Ministry issuing guotas
0101 11,0102 10,
0103 10,0104 1010,
0104 2010Pure-bred breeding
animalsMinistry ofAgriculture
0105 11,0105 1910,
0105 1990Pure-bred breeding
poultryMinistry ofAgriculture
0106 0010,
0106 0090Other livepure-bred
breeding animalsMinistry ofAgriculture
0201, 0202, 0203 Meat ofbovine animals, pork Ministry ofAgriculture
0301 91-0301 9919 Pure-bred breeding fish Ministry ofAgriculture
0405 Butter Ministry ofAgriculture
0407 0011,
0407 0019Pure-bred breeding
birds ’eggs forhatchingMinistry ofAgriculture
0511 9950,
0511 9980Semen ofstallions,
boars, ram, he-goats,
embryo ofbovine animalsMinistry ofAgriculture
0701 Potatoes Ministry ofAgriculture
10 Cereals Ministry ofAgriculture
1101 Wheat flour Ministry ofAgriculture
1104,1214 9091,
1214 9099Compound feed Ministry ofAgriculture
1107 10 Malt, notroasted Ministry ofAgriculture
1502 Fats ofbovine animals, sheep orgoats Ministry ofAgriculture
1701 1110-
1701 1290Raw sugar, forrefining Ministry ofAgriculture
Ministry ofIndustry and
Trade
1701 91,1702 30,
1704 40,1702 90Sugar forspecial
purposesMinistry ofAgriculture
Ministry ofHealth Care
1701 99 Sugar Ministry ofAgriculture
Ministry ofIndustry and
Trade
2207 10 Technical ethyl alcohol Ministry ofIndustry and
Trade
2204 29,2204 30,
2205 90,2206 0081,
2206 0089,2207,
2208 10,2208 2040,
2208 2062,
2208 9035,
2208 9038,
2208 9071-
2208 9079,
2208 9099Alcoholic beverages, their raw
material incontainers forindustrial
processingMinistry ofAgricultureWT/ACC/LTU/7
Page 105
WT/ACC/LTU/7
Page 105HScode Description ofgroup ofgoods Ministry issuing guotas
7010 9041-
7010 9047Irregular transparent
glass bottlesMinistry ofAgriculture
9401, 9403 Special furniture for
shipsMinistry ofTransport
*According theGovernment Resolution NO.985 (14October 1994) asrevised bytheGovernment Resolution
NO.281 (28February 1995) andwith amendments done bytheGovernment Resolutions NO.715(19May
1995), NO.1014 (20October 1995) andNO.1369 (20October 1995).