# ![](media/image1.jpeg){width="0.7395833333333334in" height="0.78125in"}  Doing Business In Lithuania: A Country Commercial Guide for U.S. Companies

# INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2007. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

-   [Chapter 1: Doing Business In Lithuania](#section)

-   [Chapter 2: Political and Economic Environment](#section-1)

-   [Chapter 3: Selling U.S. Products and Services](#ch3)

-   [Chapter 4: Leading Sectors for U.S. Export and Investment](#ch4)

-   [Chapter 5: Trade Regulations and Standards](#ch5)

-   [Chapter 6: Investment Climate](#ch6)

-   [Chapter 7: Trade and Project Financing](#ch7)

-   [Chapter 8: Business Travel](#ch8)

-   [Chapter 9: Contacts, Market Research and Trade
    Events](#chapter-9-contacts-market-research-and-trade-events)

-   [Chapter 10: Guide to Our Services](#ch10)

# 

# Chapter 1: Doing Business In Lithuania

-   [Market Overview](#market-overview-return-to-top)

-   [Market Challenges](#market-challenges-return-to-top)

-   [Market Opportunities](#market-opportunities-return-to-top)

-   [Market Entry Strategy](#market-entry-strategy-return-to-top)

## Market Overview [**Return to top**](#section)

-   Entrance into the European Union in 2004 made Lithuania part of one
    of the world\'s largest markets, with 456 million consumers, and
    increased Lithuania\'s appeal as a destination for American goods
    and services. Lithuania\'s proximity to markets of the Community of
    Independent States (CIS), the country\'s excellent infrastructure,
    competitive living and operating costs, and highly-skilled workforce
    offer opportunities for U.S. producers and suppliers to expand into
    global markets.

-   Lithuania has been a member of the WTO since 2002 and joined the EU
    and NATO in 2004. Lithuania's determination to join the EU and NATO
    accelerated improvements in Lithuania\'s legal and banking systems
    and tax and customs regimes; the fiscal restraints the government
    imposed in order to meet EU accession commitments spurred dramatic
    economic growth and business development.

-   Today, Lithuania presents an open and rapidly growing economy. Gross
    domestic product rose by 7% in 2004, 7.6% in 2005, and 7.4 percent
    in 2006. Average annual growth for the five-year period ending in
    2006 exceeded 7%, and analysts forecast that GDP growth will
    continue to average over 6% for the next several years. The
    government has prioritized fiscal discipline, and its budget deficit
    was a mere 0.3% of GDP in 2006. Lithuania's private sector has
    contributed greatly to the country's strong economic performance,
    accounting for 80% of GDP.

-   Lithuanian exports in 2006 totaled USD 14 billion, and imports
    reached USD 19 billion. Compared to 2005, exports and imports grew
    by 5% and 10%, respectively. Two-thirds of Lithuanian exports went
    to other EU countries in 2006; another 18% to the CIS.

-   U.S. exports to Lithuania during the first nine months of 2006
    reached USD 272 million; U.S. imports from Lithuania totaled USD 600
    million during the same time period.

-   Lithuania's major trading partners in 2006 were Russia, Germany,
    Latvia, the United Kingdom, Poland, France, Sweden, Estonia,
    Denmark, and the United States.

-   As of October 2006, the leading foreign investors in Lithuania were
    Russia (20% of total), Denmark (16.3%), Sweden (11.7%), Germany
    (10.5%). U.S. investments accounted for 2.8 percent of total FDI
    inflows in 2006. (The sale of Lithuania\'s oil refinery from a
    Russian company to a Polish company in December 2006 will alter
    these statistics significantly when FDI information for 2006 is
    published in March 2007).

-   A wide range of economic and demographic statistics is available on
    Lithuania\'s Department of Statistics website
    (<http://www.stat.gov.lt/en/>).

## Market Challenges [**Return to top**](#section) 

-   Some problems endemic to countries of the former Soviet Union, such
    as inefficient government bureaucracy, corruption, and lack of
    regulatory transparency, continue to discourage some investors.
    Lithuania, however, has made progress in addressing these problems,
    and they do not represent significant obstacles to U.S. trade and
    investment in Lithuania. Demographic trends, like an aging
    population, emigration of the workforce towards higher-wage
    countries, and a shrinking domestic market, pose challenges that may
    be more difficult to overcome.

## Market Opportunities [**Return to top**](#section)

-   Lithuania expects to receive approximately USD 12 billion in EU
    Structural, Cohesion, and other funds over the next seven years to
    implement infrastructure projects. U.S. companies are able to
    compete, directly and/or as subcontractors and partners, in tender
    offerings backed by EU funds.

-   Major infrastructure projects currently pending or underway include
    upgrading the Mazeikiai oil refinery; decommissioning the Ignalina
    nuclear power plant; constructing the Via Baltica highway and Rail
    Baltica to connect the Baltic countries to the rest of Europe;
    expanding and modernizing the Klaipeda sea port facilities;
    constructing electric power transmission lines to Poland and Sweden;
    building a natural gas storage facility; and building a new nuclear
    power plant.

-   The Lithuanian Government has privatized nearly all major state
    assets. Remaining state-owned assets include the eastern electricity
    distribution network and Lithuanian Railways.

## Market Entry Strategy [**Return to top**](#section)

-   There are no laws regulating the relationship between a foreign
    company and its distributors or agents in Lithuania. The provisions
    of a given distribution agreement define the terms of the
    relationship.

-   A joint venture with a local partner is usually the best way for a
    U.S. company to start a business in Lithuania.

[Return to table of
contents](#doing-business-in-lithuania-a-country-commercial-guide-for-u.s.-companies)

# 

# Chapter 2: Political and Economic Environment

For background information on the political and economic environment in
the country, please see the [U.S. Department of State Background
Notes](http://www.state.gov/r/pa/ei/bgn/5379.htm).

[Return to table of
contents](#doing-business-in-lithuania-a-country-commercial-guide-for-u.s.-companies)

[]{#ch3 .anchor} [Return to table of
contents](#doing-business-in-lithuania-a-country-commercial-guide-for-u.s.-companies)

# Chapter 3: Selling U.S. Products and Services 

-   [Using an Agent or
    Distributor](#using-an-agent-or-distributor-return-to-top)

-   [Establishing an Office](#establishing-an-office-return-to-top)

-   [Franchising](#franchising-return-to-top)

-   [Direct Marketing](#direct-marketing-return-to-top)

-   [Joint Ventures/Licensing](#joint-ventureslicensing-return-to-top)

-   [Selling to the
    Government](#selling-to-the-government-return-to-top)

-   [Distribution and Sales
    Channels](#distribution-and-sales-channels-return-to-top)

-   [Selling
    Factors/Techniques](#selling-factorstechniques-return-to-top)

-   [Electronic
    Commerce](#trade-promotion-and-advertising-return-to-top)

-   [Trade Promotion and
    Advertising](#trade-promotion-and-advertising-return-to-top)

-   [Pricing](#pricing-return-to-top)

-   [Sales Service/Customer
    Support](#sales-servicecustomer-support-return-to-top)

-   [Protecting Your Intellectual
    Property](#protecting-your-intellectual-property-return-to-top)

-   [Due Diligence](#due-diligence-return-to-top)

-   [Local Professional
    Services](#local-professional-services-return-to-top)

-   [Internet Resources](#internet-resources-return-to-top)

## Using an Agent or Distributor [**Return to top**](#ch3)

The market for consumer products in Lithuania is fragmented. Consumer
preferences differ across income, age, and social groups. More affluent
consumers consider brand name and quality to be important selling
points, with price an indicator of quality. In general, Lithuanian
consumers associate goods made in the USA with quality, and U.S.
products are well received. The most common and, according to foreign
product suppliers, most effective method of introducing products into
the market is through a distributorship arrangement. Lithuania's
distributorship network is well-developed.

## Establishing an Office [**Return to top**](#ch3)

Finding office space in Lithuania is a straightforward process and
rarely takes more than one week. With the help of some of the companies
listed below, one can easily find appropriate premises.

1.  AAA Real Estate: [www.aaa.lt](http://www.aaa.lt/en/)

2.  Centro Kubas: [www.centrokubas.lt](http://www.centrokubas.lt/)

3.  Ober-Haus: [www.ober-haus.com](http://www.ober-haus.com/)

4.  B.E. Realty: www.berealty.lt/en

5.  Nuomos Biuras: www.rentvilnius.lt/

## Franchising [**Return to top**](#ch3)

Local companies historically have shown little interest in franchising
opportunities, but this may be changing. With one or two notable
exceptions, companies who tried in the past to pursue franchise
opportunities found little interest. Increasingly sophisticated and
brand-conscious consumers may increase the demand for franchises in the
future.

## Direct Marketing [**Return to top**](#ch3)

Although many Lithuanian companies use direct marketing, consumers do
not readily respond, preferring to shop in retail stores. In the early
stages of the country's economic development, unscrupulous dealers used
direct marketing to deceive customers, souring consumers towards this
marketing tool.

There is a wide range of EU legislation that impacts the direct
marketing sector. Compliance requirements are stiffest for marketing and
sales to private consumers. Companies need to focus, in particular, on
the clarity and completeness of the information they provide to
consumers prior to purchase, and on their approaches to collecting and
using customer data. The following gives a brief overview of the most
important provisions flowing from EU-wide rules on data protection,
distance selling and on-line commerce. Companies are advised to consult
the information available via the hyper-links, to check the relevant
sections of national Country Commercial Guides, and to contact the
Commercial Service at the U.S. Mission to the European Union for more
specific guidance.

*Processing Customer Data*

Key Link:
[[http://ec.europa.eu/justice_home/fsj/privacy/law/index_en.htm]{.underline}](http://europa.eu.int/comm/justice_home/fsj/privacy/law/index_en.htm)

*Transferring Customer Data to Countries Outside the EU*

Key Links:
[[http://www.export.gov/safeharbor/]{.underline}](http://www.export.gov/safeharbor/)

> [[http://ec.europa.eu/justice_home/fsj/privacy/modelcontracts/index_en.htm]{.underline}](http://europa.eu.int/comm/justice_home/fsj/privacy/modelcontracts/index_en.htm)

*Distance Selling Rules*

•   Distance and Door-to-Door sales

Key Link:
[[http://ec.europa.eu/consumers/cons_int/safe_shop/index_en.htm]{.underline}](http://europa.eu.int/comm/consumers/cons_int/safe_shop/index_en.htm)

•  Distance Selling of Financial Services

Key Link:
[[http://ec.europa.eu/consumers/cons_int/fina_serv/index_en.htm]{.underline}](http://europa.eu.int/comm/consumers/cons_int/fina_serv/index_en.htm)

*Direct Marketing Over the Internet*

Key Link:
[[http://ec.europa.eu/internal_market/e-commerce/index_en.htm]{.underline}](http://europa.eu.int/comm/internal_market/en/ecommerce/index.htm)

## Joint Ventures/Licensing [**Return to top**](#ch3)

A joint venture with the local partner is the best way for a U.S.
company to start a business in Lithuania. It is advisable to find out as
much as possible about the potential partner. Local companies provide
credit ratings and other basic business data on Lithuanian companies,
although such information services are not yet fully developed. Foreign
investors can establish either a representative office or a corporate
entity. A representative office in Lithuania gives the foreign company a
legal presence in the country, but does not permit it to carry out any
economic activity. It is thus useful only for evaluating business
opportunities. In order to pursue economic activity in Lithuania, a
foreign investor must incorporate his business organization. Foreign
investors may form the following types of enterprise:

1\. Sole trader,

2\. General or limited partnership,

3\. Public or closed (private) joint stock company,

4\. State (local government) enterprise,

5\. Agricultural company,

6\. Cooperative, and

7\. Investment agency

The most typical enterprise is a joint stock company. An investor may
buy into an existing company or establish a new one. Joint stock
companies can be either partially or wholly foreign-owned. If a foreign
investor requires a wholly foreign-owned company, the only appropriate
option is a joint stock company.

The principal differences between private and public joint stock
companies are the amount of authorized share capital, the number of
shareholders, and the circulation of shares. Presently, a public joint
stock company must have minimum capital reserves of LTL 150,000 (approx.
USD 55,000) and at least 50 shareholders, and its shares must circulate
and trade publicly. A closed joint stock company must have minimum
capital reserves of LTL 10,000 (approx. USD 3,700) and a maximum 50
shareholders, and its shares may not circulate publicly or be traded.

**Pre-incorporation steps**

The investor must:

1\. Secure the premises that will constitute the official address of the
new company in the registration process;

2\. Register the proposed name of the new company at the patent bureau;

3\. Prepare and notarize the memorandum/agreement on incorporation and
the by-laws of the new company; and

4\. Open a savings account (several currencies, including dollars,
euros, and litas, are acceptable) in a local bank in the name of the new
company. Current regulations allow the transfer of funds either from
foreign or domestic sources into the savings account in order to meet
the minimum capital requirements and other requirements that vary
according to the type of company. Opening the account is a routine
procedure, but before withdrawing any funds, the investor must provide
evidence of incorporation of the company. As part of the incorporation
process, the bank issues a certificate documenting that the requisite
funds (to meet the minimum capital requirements) are on deposit.

Upon completing the pre-incorporation steps, the investor must obtain
consent of the local municipality to establish the new company and, if
the new company is in manufacturing, a permit from the Department of the
Environment.

It may be necessary to obtain other licenses before commencing business,
depending on the nature of the business to be undertaken.

Current regulations prohibit foreign investors from engaging in certain
business activities, including, for example, those related to certain
aspects of national security and defense.

**Incorporation process**

The investor must complete the pre-incorporation steps above, obtain all
requisite licenses and permits, and register the company with a
municipality, before recording the company in the Economy Ministry\'s
Register of Enterprises.

If the investor is a company incorporated outside of Lithuania, the
registrant must submit the following:

1\. A certified copy of the registration certificate or other
documentation proving that the investor is legally incorporated,
acknowledged by the Embassy of the Republic of Lithuania in the country
of incorporation;

2\. A copy of the latest available audited balance sheet of the investor
or other acceptable document confirming the investor\'s ability to meet
the minimum capital requirement;

3\. Documentation of the board of director\'s decision to incorporate a
company in Lithuania and invest the required capital; and

4\. A certified copy of the by-laws or memorandum and articles of
association of the investor.

If the investor is a person, he/she must produce evidence (for example,
a letter from a bank) confirming that he/she has the financial resources
to meet the capital required for investment in the new company.

An official translation bureau in Lithuania must make any necessary
translations.

In addition to the documents detailed above, the registrant must file
the following documents with the registration application:

-   an agreement/memorandum of incorporation certified by a notary
    public in Lithuania;

-   by-laws certified by a notary public in Lithuania;

-   a certificate from the patent and trademark bureau showing
    registration of the company name;

-   documentary evidence confirming the new company\'s official address;

-   minutes of the shareholders meeting appointing the directors of the
    new company; and

-   a certificate issued by a bank in Lithuania certifying that it has
    received the necessary capital for the company from abroad.

Once the registrant submits a complete application and all requisite
documents to the Ministry of Economy, the Registrar of Enterprises must
issue a registration certificate within 30 days.

## Selling to the Government [**Return to top**](#ch3)

The Public Procurement Office, which reports directly to the Government,
coordinates and monitors public procurement with the relevant ministries
and other authorities. The [Law on Public
Procurement](http://www.vpt.lt/index.php?pid=1089186382&lan=EN) governs
all public procurement in Lithuania.

Most of the public tender announcements are published in the information
supplement [Informaciniai Pranesimai](http://www.valstybes-zinios.lt/)
of the government's official paper "Valstybes Zinios" (in Lithuanian
only) and on the Internet sites of the
[Supplement](http://ted.publications.eu.int/official/) to the Official
Journal of the European Union, the [U.S. Mission to the European
Union](http://www.buyusa.gov/europeanunion/eu_tenders.html), and the
Lithuanian government ministries.

Below is the list of internet sites of Lithuanian ministries:

1.  Environment: [www.am.lt](http://www.am.lt/EN/VI/)

2.  Finance:
    [www.finmin.lt](http://www.finmin.lt/finmin/lang.do?language=en)

3.  Defense: [www.kam.lt](http://www.kam.lt/index.php/en/)

4.  Culture: [www.lrkm.lt](http://www.lrkm.lt/index.php/en/)

5.  Social Affairs:
    [www.socmin.lt](http://www.socmin.lt/index.php?1302763492)

6.  Transport and Communications:
    [www.transp.lt](http://www.transp.lt/Default.aspx?DL=E&TopicID=2&UL=)

7.  Health: [www.sam.lt](http://www.sam.lt/en/)

8.  Education: [www.smm.lt](http://www.smm.lt/en/)

9.  Justice: [www.tm.lt](http://www.tm.lt/default.aspx?lang=3)

10. Economy: [www.ukmin.lt](http://www.ukmin.lt/index.php/en/)

11. Foreign Affairs: [www.urm.lt](http://www.urm.lt/index.php?660068751)

12. Interior: [www.vrm.lt](http://www.vrm.lt/index.php?id=124&lang=2)

13. Agriculture:
    [www.zum.lt](http://www.zum.lt/min/index.cfm?langparam=EN)

Currently, the best opportunities for American suppliers and service
providers are in the environmental protection, defense, transportation,
chemicals, communications, information technology, food products, and
energy sectors.

## Distribution and Sales Channels [**Return to top**](#ch3)

Many foreign investors affirm that Lithuania has the best roads in the
region. With a population of only 3.4 million, the country\'s three
international airports and good rail and road networks permit transport
of goods in all directions. The EU has recognized Lithuania as a prime
transport center in the region. It plans to build the Via Baltica
highway through Lithuania, linking the country even more effectively to
both the EU and the other Baltic countries. Investors may sell goods in
Lithuania by agreement with an agent, distributor, or retailer. For more
information on Lithuanian companies, see "[Lithuanian Business
Directory](http://www.imones.lt/en/)" or Lideika, Petrauskas, Valiūnas
and Partners'" [Doing Business in
Lithuania](http://www.lawin.lt/book/)."

## Selling Factors/Techniques [**Return to top**](#ch3)

Selling factors and techniques acceptable for a Lithuanian customer are
very similar to those in the United States or elsewhere in Europe. Local
market research companies can assist in identifying marketing methods
for a specific commodity. For more information on Lithuanian companies,
see "[Lithuanian Business Directory](http://www.imones.lt/en/)" or
Lideika, Petrauskas, Valiūnas and Partners'" [Doing Business in
Lithuania](http://www.lawin.lt/book/)."

## Trade Promotion and Advertising [**Return to top**](#ch3)

The [Litexpo Trade Fair Center](http://www.litexpo.lt/), located in the
capital city of Vilnius, organizes most international and national trade
fairs in Lithuania. The best way to advertise is to employ the services
of an advertising or public relations company. See [\"Lithuanian
Business Directory\"](http://www.imones.lt/en/) for company contacts.

## Pricing [**Return to top**](#ch3)

The following formula determines the price of goods in Lithuania:

CIF (cost, insurance, freight) price + excise tax + profit + VAT
(value-added tax) = total price.

For more information on taxes, see the Lithuanian Development Agency's
"[Lithuania -- the Smart
Move](http://www.lda.lt/docs/country_english2003.pdf)" or Lideika,
Petrauskas, Valiūnas and Partners'" [Doing Business in
Lithuania](http://www.lawin.lt/book/)."

## Sales Service/Customer Support [**Return to top**](#ch3)

Major suppliers normally establish sales offices that are supported by a
dealer network. As a rule, one exclusive distributor covers the whole
country.

Conscious of the discrepancies among Member States in product labeling,
language use, legal guarantee, and liability, the redress of which
inevitably frustrates consumers in cross-border shopping, the EU
institutions have launched a number of initiatives aimed at harmonizing
national legislation. Suppliers within and outside the EU should be
aware of existing and upcoming legislation affecting sales, service, and
customer support.

######## Product Liability

Under the 1985 Directive on liability of defective products, amended in
1999, the producer is liable for damage caused by a defect in his
product. The victim must prove the existence of the defect and a causal
link between defect and injury (bodily as well as material). A reduction
of liability of the manufacturer is granted in cases of negligence on
the part of the victim.

Key link:
<http://ec.europa.eu/comm/consumers/cons_safe/prod_safe/defect_prod/index_en.htm>

*Product Safety*

The 1992 General Product Safety Directive introduces a general safety
requirement at the EU level to ensure that manufacturers only place safe
products on the market. It was revised in 2001 to include an obligation
on the producer and distributor to notify the Commission in case of a
problem with a given product, provisions for its recall, the creation of
a European Product Safety Network, and a ban on exports of products to
third countries which are not deemed safe in the EU.

Key link:
<http://ec.europa.eu/comm/consumers/cons_safe/prod_safe/index_en.htm>

######## Legal Warranties and After-sales Service

Under the 1999 Directive on the Sale of Consumer Goods and Associated
Guarantees, professional sellers are required to provide a minimum
two-year warranty on all consumer goods sold to consumers (natural
persons acting for purposes outside their trade, businesses or
professions), as defined by the Directive. The remedies available to
consumers in case of non-compliance are:

\- repair of the good(s);

\- replacement of the good(s);

\- a price reduction; or

\- rescission of the sales contract.

Key link:
<http://ec.europa.eu/comm/consumers/cons_int/safe_shop/guarantees/index_en.htm>

Other issues pertaining to consumers' rights and protection, such as the
New Approach Directives, CE marking, quality control and data protection
are dealt with in Chapter 5 of this report.

## Protecting Your Intellectual Property [**Return to top**](#ch3)

Lithuania is party to a number of major international treaties and
agreements on intellectual property protection. Continental Europe's
concept of copyright and industrial property protection underpin
Lithuania\'s laws on intellectual property rights (IPR). Thus, there is
no requirement to register copyrighted works as a condition for
protection, whereas registration with the [State Patent
Bureau](http://www.vpb.lt/engl/) (SPB) is necessary to ensure protection
of industrial property rights.

#### Trademarks

The SPB register trademarks in Lithuania. By law, trademarks may consist
of the following elements:

-   names, surnames, pseudonyms, slogans, company names;

-   separate characters, numerals;

-   drawings, emblems;

-   three dimensional shapes and forms; and/or

-   colors, combinations of colors, color compositions

Trademark registration in Lithuania is valid for a period of ten years
from the date of application. There is no restriction on the number of
times a trademark holder may renew registration.

#### Industrial Design

Foreigners must apply to the SPB to secure industrial design patents
through a patent attorney registered in Lithuania.

Lithuanian law considers an industrial design to be new if, at the date
of patent application, the design is not identical to any other product
design in the public domain in Lithuania. Industrial design protection
is valid for five years from the date of application. Patent holders can
extend industrial design patents for up to four successive five-year
terms.

#### Patents

There are three mechanisms for assuring patent protection in Lithuania:

-   patent registration with the SPB,

-   patent registration through the Patent Cooperation Treaty
    Organization, and

-   coverage under agreement between the European Patent Organization
    and the Government of Lithuania, extending European patent
    protection into Lithuania.

By law, foreign applicants can file patent applications with the SPB
through a patent attorney registered in Lithuania. A registered patent
is valid for 20 years from the date of application.

##### Copyright

Recognition of a copyright and its legal protection in Lithuania is not
subject to any local registration requirement.

U.S. firms desiring to register their patent or trademark should seek
the assistance of a reputable attorney experienced in IPR issues. For
more information on Lithuanian companies, see "[Lithuanian Business
Directory](http://www.imones.lt/en/)" or Lideika, Petrauskas, Valiūnas
and Partners' \"[Doing Business in
Lithuania](http://www.lawin.lt/book/)."

## Due Diligence [**Return to top**](#ch3)

Learning as much as possible about a potential partner is always
advisable. A number of companies provide due diligence services in
Lithuania. For more information on Lithuanian companies, see
"[Lithuanian Business Directory](http://www.imones.lt/en/)" or Lideika,
Petrauskas, Valiūnas and Partners\' \"[Doing Business in
Lithuania](http://www.lawin.lt/book/)."

## Local Professional Services [**Return to top**](#ch3)

For more information on Lithuanian companies, see "[Lithuanian Business
Directory](http://www.imones.lt/en/)" or Lideika, Petrauskas, Valiūnas
and Partners\' \"[Doing Business in
Lithuania](http://www.lawin.lt/book/)." The U.S. Embassy\'s Consular
Section also maintains a list of local
[doctors](http://vilnius.usembassy.gov/ConsCitizen.asp?Au=Docs/Consular/doctors)
and
[lawyers](http://vilnius.usembassy.gov/Text/Docs/Consular/lawyers.htm).

## Internet Resources [**Return to top**](#ch3)

Lideika, Petrauskas, Valiūnas and Partners\' \"Doing Business in
Lithuania:" [http://www.lawin.lt/book](http://www.lawin.lt/book/)

Lithuanian Development Agency:
[http://businesslithuania.com](http://www.lda.lt/)

EC Directive on Commercial Agents

<http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31986L0653:EN:HTML>

Guidelines on "Vertical Agreements"

<http://eur-lex.europa.eu/LexUriServ/site/en/oj/2001/c_368/c_36820011222en00130015.pdf>

EC Directive on Late Payments

<http://ec.europa.eu/comm/enterprise/regulation/late_payments/>

EC on Data Protection

<http://ec.europa.eu/justice_home/fsj/privacy/law/index_en.htm>

Safe Harbor

<http://www.export.gov/safeharbor/>

Model Contracts for the transfer of personal data

<http://ec.europa.eu/justice_home/fsj/privacy/modelcontracts/index_en.htm>

Ensuring safe shopping across the EU

<http://ec.europa.eu/consumers/cons_int/safe_shop/index_en.htm>

Financial services

<http://ec.europa.eu/consumers/cons_int/fina_serv/index_en.htm>

Electronic commerce

<http://ec.europa.eu/internal_market/e-commerce/index_en.htm>

European public procurement tenders open to U.S. companies

<http://www.buyusa.gov/europeanunion/eu_tenders.html>

Procurement

<http://www.buyusa.gov/europeanunion/euopportunities.html>

EU Tenders Website

[http://ted.europa.eu](http://ted.europa.eu/)

Market Research Reports

<http://www.buyusa.gov/europeanunion/mrr.html>

eVAT

<http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/e-services/index_en.htm>

EC Internal Markets official documents

<http://ec.europa.eu/comm/consumers/cons_int/safe_shop/fair_bus_pract/index_en.htm>

Medicinal products for human use

<http://ec.europa.eu/eur-lex/pri/en/oj/dat/2001/l_311/l_31120011128en00670128.pdf>

Food labeling

<http://ec.europa.eu/comm/food/food/labellingnutrition/claims/index_en.htm>

Food Supplements

[http://ec.europa.eu/food/food/labelingnutrition/supplements/index_en.htm](http://ec.europa.eu/food/food/labellingnutrition/supplements/index_en.htm)

Tobacco

<http://ec.europa.eu/health/ph_determinants/life_style/Tobacco/tobacco_en.htm>

Liability of defective products

<http://ec.europa.eu/comm/consumers/cons_safe/prod_safe/defect_prod/index_en.htm>

Safety of products

<http://ec.europa.eu/comm/consumers/cons_safe/prod_safe/index_en.htm>

Sale of goods and guarantees

<http://ec.europa.eu/comm/consumers/cons_int/safe_shop/guarantees/index_en.htm>

Copyright and Neighboring Rights

<http://ec.europa.eu/comm/internal_market/copyright/index_en.htm>

European Patent Office

<http://www.european-patent-office.org/>

Industrial property

<http://ec.europa.eu/internal_market/indprop/index_en.htm>

Office for Harmonization in the Internal Market (OHIM)

<http://oami.eu.int/en/default.htm>

WIPO Madrid System

<http://www.wipo.int/madrid/en>

OHIM Community Design

<http://oami.eu.int/en/design/default.htm>

Exhaustion of trademark rights

<http://ec.europa.eu/internal_market/indprop/tm/index_en.htm>

Professional service providers

<http://www.buyusa.gov/europeanunion/services.html>

EU Member State Country Commercial Guide

<http://www.buyusainfo.net/adsearch.cfm?search_type=int&loadnav=no>

*Other useful websites:*

The EU Online

<http://ec.europa.eu/index_en.htm>

European Commission

<http://ec.europa.eu/index_en.htm>

EU Press Room

<http://ec.europa.eu/press_room/index_en.htm>

The EU in the World

<http://ec.europa.eu/comm/world/>

EU Relations with the US

<http://ec.europa.eu/comm/external_relations/us/intro/index.htm>

DG Trade

<http://ec.europa.eu/trade/index_en.htm>

DG Enterprise

<http://ec.europa.eu/enterprise/index_en.htm>

EUR- Lex -- Portal to EU law

<http://ec.europa.eu/eur-lex/en/index.html>

Eurostat -- EU Statistics
<http://epp.eurostat.ec.europa.eu/portal/page?_pageid=1090,30070682,1090_33076576&_dad=portal&_schema=PORTAL>

Summaries of EU Legislation -- SCAD PLUS

<http://ec.europa.eu/scadplus/scad_en.htm>

One Stop Internet Shop for Business

<http://ec.europa.eu/youreurope/index_en.html>

Euro Info Centers

<http://ec.europa.eu/enterprise/networks/eic/eic.html>

######### **AmCham EU**

<http://www.eucommittee.be/>

*EU News Sources:*

EurActiv.com -- EU news, policy positions & EU actors online

<http://www.euractiv.com/en/HomePage>

EUObserver

<http://euobserver.com/>

EU Politix

<http://www.eupolitix.com/EN/>

[Return to table of
contents](#doing-business-in-lithuania-a-country-commercial-guide-for-u.s.-companies)

[[]{#ch4 .anchor}Return to table of
contents](#doing-business-in-lithuania-a-country-commercial-guide-for-u.s.-companies)

# Chapter 4: Leading Sectors for U.S. Export and Investment 

**Commercial Sectors**

-   [Computer Hardware and Software
    Development](#_Computer_Hardware_and_Software)

```{=html}
<!-- -->
```
-   [Energy and Power Generation](#energy-power-generation)

-   [Pollution Control Equipment/Environmental
    Services](#_Pollution_Control_Equipment/Environ)

-   [Building Materials](#_Building_Materials)

-   [Chemicals, Chemical Products, and Man-Made
    Fibers](#chemicals-chemical-products-and-man-made-fibers)

-   [Agricultural Sector](#agricultural-sectors-return-to-top)

***The U.S. Embassy in Vilnius can provide detailed market research on
the chemicals, energy, and food/beverage sectors to interested U.S.
companies. Please contact the Embassy\'s Commercial Specialist, Jonas
Vasilevičius, for more information (<vasileviciusj@state.gov>, tel: +370
5-266-5671).***

Showcase Europe provides U.S. exporters a broad perspective on Europe.
Organized around eight key sectors with the greatest market potential
for U.S. exporters, Showcase Europe provides a framework for
coordination and cooperation among the U.S. Department of Commerce\'s
U.S. Commercial Service offices throughout Europe. Sectors include
aerospace, automotive, energy/power generation, environmental
technologies, information and communication technologies, medical and
pharmaceutical, safety/security, and travel and tourism.

In addition, the Quicktake Program provides an overview of market
potential for a U.S. company\'s products from market specialists across
Europe. Surveys cover current and future demand, competition, and
suggested next steps.

Key Links: <http://www.buyusa.gov/europe>

> <http://www.buyusa.gov/quicktake>

[]{#_Computer_Hardware_and_Software .anchor}

### Computer Hardware and Software 

### Overview [**Return to top**](#ch4)

ITA industry code: CPT, CSF

The Lithuanian IT market is small but developing rapidly. Both public
and private sectors cite IT infrastructure development as strategic
priorities. The public sector has an IT infrastructure development plan.
Businesses increasingly install corporate LANs. A growing number of
private consumers are purchasing computers and peripherals.

The computer and peripherals market in Lithuania is well developed and
all major hardware and software suppliers, including Microsoft, IBM, HP,
and Compaq, have a market presence. There are about 400 computer
companies in Lithuania, of which approximately 20 dominate the market.
American equipment and accessories account for 80% of the total annual
imports in this sector.

The sale of personal computers started to grow rapidly from 2005,
primarily because of new tax incentives that provide personal income tax
deductions for PC purchases. The Communications Regulatory Authority
forecasts rapid expansion of internet penetration.

In the last few years, the internet penetration rate in Lithuania has
grown to 31.7 % (EU-25 average is 45.8%). The number of internet users
has risen 11-fold in the past three years, to one million subscribers.
One in five internet subscribers enjoys broadband internet access.
Lithuanians have access to the cheapest broadband internet in the EU,
with prices for the most popular fast (1Mb/s) internet connection
averaging EUR 14 per month, half of what users pay in most other EU
member states.

The focus of the Lithuanian IT sector in recent years has been on
creating the necessary infrastructure to meet the demands of an
information society. Demand for software development and consulting is
growing rapidly. Supporting networks \-- including LANs and WANs \-- and
internet applications are in demand.

### Opportunities [**Return to top**](#ch4)

The best prospects for U.S. IT exports are powerful multi-media
processors, networking equipment, and internet and e-commerce
application software. Supporting networks \-- including LANs and WANs
\-- and internet applications are in demand. IT goods and services
exports comprise only 0.3% of Lithuania\'s total exports at present,
leaving substantial room for growth. Demand for IT services is growing
in countries neighboring Lithuania, creating lucrative export
opportunities for IT companies.

### Internet Resources [**Return to top**](#ch4)

Infobalt: [www.infobalt.lt](http://www.infobalt.lt/english/)

## Energy & Power Generation 

### Overview [**Return to top**](#ch4)

*(unofficial estimates, in USD thousands)*

  ------------------------ --------------- --------------- -------------------
                           **2003**        **2004**        **2005**

  Total Market Size        **1,821,112**   **1,933,622**   **2,030,624**

  Total Local Production   1,937,885       2,044,270       2,092,765

  Total Exports            116,772         113,436         87,892

  Total Imports            0               2,788           25,750
  ------------------------ --------------- --------------- -------------------

ITA industry code: ELP

Privatization and restructuring of the Lithuanian energy sector is
ongoing.

By agreement with the European Union, Lithuania will decommission the
Ignalina nuclear power plant, which generates up to 90% of the country's
electricity. The first of the plant\'s two reactors closed on December
31, 2004; the second will cease operation in 2009.

Lithuania imports approximately 60% of its energy resources, including
oil, gas, nuclear fuel, and coal. The production capacity of Lithuania's
power plants and oil refinery exceeds domestic demand, making the
country a net exporter of electricity and petrochemicals, but
electricity exports have dropped sharply since Lithuania took the first
nuclear reactor offline. Lithuania has no gas fields, and imports all of
its natural gas from Russia. Gas accounts for 22% of Lithuania\'s energy
demand. Thermal energy plants and the chemical industry are the largest
users of natural gas. The government is considering construction of a
gas storage facility to maintain reserves.

High-voltage (330kv and higher) overhead lines interconnect Lithuania\'s
energy systems, which operates synchronously with the IPS/UPS
electricity grid, which includes the power systems of nearly all the
countries of the former Soviet Union, including Latvia, Estonia, Russia,
and Belarus. Lithuania\'s National Energy Strategy (NES), adopted in
2007, calls for Lithuania to synchronize its electricity grid with
Western Europe\'s UCTE grid by 2015. The NES also calls for high-voltage
links with Poland and Sweden by 2012. The Baltics\' first electricity
connection with the Western European grid, between Estonia and Finland,
began operation in December 2006. All three Baltic States and Poland
have agreed to cooperate in constructing a new nuclear power plant on
the site of the current plant at Ignalina, a project which could cost
upwards of USD 4.1 billion.

### Opportunities [**Return to top**](#ch4)

Potential opportunities in the Lithuanian power-generation sector for
both U.S. power-generation technology and service companies include the
following:

-   restructuring and privatization of the state-owned power generation
    companies (modernization of the existing plants, process control,
    environmental issues);

-   decommissioning of the Ignalina Nuclear Power Plant\'s two reactors;

-   construction of a new nuclear power plant;

-   construction of electric power lines to Poland and Sweden;

-   expansion and modernization of the gas distribution network;

-   construction of natural gas storage facilities; and

-   development of renewable energy sources.

### Internet Resources [**Return to top**](#ch4)

Lithuanian Ministry of Economy:
[http://www.ukmin.lt](http://www.ukmin.lt/index.php/en/national/)

Lithuanian Development Agency:
[http://businesslithuania.com](http://www.lda.lt/)

Lithuanian Energy Institute: http://www.lei.lt/index.php?k=9

**Pollution Control Equipment/Environmental Services**

### Overview [**Return to top**](#ch4)

ITA Industry Code: POL

The Government of Lithuania launched its environmental protection
program in 1992, defining and prioritizing all major environmental
problems in the country. Economic development increased the urgency of
resolving environmental problems. Lithuania added new policies regarding
environmental cleanup and pollution prevention to the legal framework in
1995.

Some projections estimate a need for USD 50 million in annual spending
by 2015 to comply with EU environmental requirements. The Lithuanian
Ministry of the Environment is responsible for preparing the country to
meet these requirements. The bulk of spending on the environment will go
toward improving wastewater treatment and sewage networks and for waste
management. Environmental protection is a priority in the national
Public Investment Program. With the need to meet EU requirements, there
will be opportunities in the environmental sector in areas such as
protection and prevention, remediation, monitoring, and waste disposal.

### Opportunities [**Return to top**](#ch4)

U.S. environmental consulting companies appear to be more active than
equipment manufacturers and suppliers in this sector. There are
substantial opportunities for environmental service providers willing to
team with local partners. Such opportunities include laboratory chemical
analysis, site assessment, soil and groundwater remediation,
environmental impact consulting, and services related to hazardous and
other waste management**.** About four percent of the waste management
equipment sold in Lithuania is of U.S. origin.

### Internet Resources [**Return to top**](#ch4)

Lithuanian Ministry of Environment:
[http://www.am.lt](http://www.am.lt/EN/VI/)

## Building Materials

ITA industry code: BLD

### Overview [**Return to top**](#ch4)

The construction sector in Lithuania is growing rapidly. Houses and
office buildings often fell into disrepair in Soviet times. With the
introduction of private ownership, extensive renovation and construction
of commercial and residential property began. Rapid economic growth,
rising wages, and the wide availability of credit boosted growth of the
construction sector. Over the last three years, Lithuania was a land of
opportunities for real estate developers and investors. From 2003 to
2006, real estate prices increased at a robust annual rate of 35 to 50
percent. Those who invested in new buildings in prestigious locations
may have received investment returns of up to 100 percent in under a
year. The market cooled in late 2006; sector experts expect real estate
prices to increase \"only\" by 10-15 percent in 2007. The Lithuanian
Association of Construction Companies estimated the market at USD two
billion in 2006.

EU development funds provide an added impetus for the development and
expansion of this sector. EU funds will pay for the reconstruction of
railways, renovation of regional roads, seaports, and airports, and the
construction of new nature preservation facilities. Lithuania expects to
receive more than USD 12 billion in EU funds over the next seven years.

### Opportunities [**Return to top**](#ch4)

Virtually all products associated with building renovation and
construction are in high demand, including paints, doors, windows,
plumbing equipment, lighting, insulation materials, heating systems,
tools, and machinery.

### Internet Resources [**Return to top**](#ch4)

Lithuanian Development Agency: http://www.businesslithuania.com

Lithuanian Builders Association:
http://www.statybininkai.lt/?id=2238&lang=en

## Chemicals, Chemical Products, and Man-Made Fibers 

### Overview [**Return to top**](#ch4)

(in USD thousands)

  ---------------------------- --------------- --------------- ---------------
                               **2003**        **2004**        **2005**

  Total Market Size            **1,146,127**   **1,307,486**   **1,534,309**

  Total Local Production       512,918         622,930         816,016

  Total Exports                563,380         708,544         974,785

  Total Imports                1,196,589       1,393,100       1,693,078

  Imports from the United      59,866          23,847          10,478
  States                                                       

  Share of imports from the    5%              2%              1%
  United States                                                
  ---------------------------- --------------- --------------- ---------------

This sector has seen significant growth in recent years, with growth of
34% between 2003 and 2005. Local production grew by 59%.

Exports of the sector in 2005, compared with 2003, increased by 75% and
imports by 41%. Imports from the United States made up 5% of total
imports in this sector in 2003; the U.S. market share had declined to
0.6% by 2005.

Most of the imports from the United States in the period of 2003-2005
consisted of basic chemicals. Pharmaceuticals made up 18% of the total
U.S imports of chemicals.

### Opportunities [**Return to top**](#ch4)

The following groups of products from the U.S may have a market in
Lithuania.

-   Basic chemicals;

-   Pesticides and other agro-chemical products;

-   Paints, varnishes and similar coatings, printing ink;

-   Pharmaceuticals food supplements;

-   Soap and detergents, cleaning and polishing preparations; perfumes
    and toilet preparations; and

-   Man-made fibers.

### Internet Resources [**Return to top**](#ch4)

Lithuanian Ministry of Economy:
[http://www.ukmin.lt](http://www.ukmin.lt/index.php/en/national/)

Lithuanian Development Agency: [http://www.lda.lt](http://www.lda.lt/)

## Agricultural Sectors [**Return to top**](#ch4)

ITA Industry code: AGR

*(in USD thousands)*

  ---------------------------- --------------- --------------- ---------------
  **FOOD PRODUCTS AND          **2003**        **2004**        **2005**
  BEVERAGES**                                                  

  Total Market Size            **1,960,532**   **2,241,048**   **2,771,729**

  Total Local Production       1,951,774       2,264,194       2,839,458

  Total Exports                670,803         862,809         1,115,853

  Total Imports                679,561         839,663         1,048,124

  Imports from the United      19,429          12,638          19,914
  States                                                       

  Share of imports from the    3%              2%              2%
  United States                                                
  ---------------------------- --------------- --------------- ---------------

Lithuania is a net importer of food products. Lithuania\'s main food
product imports include beverages, meat products, fruits, vegetables,
coffee, tea, and feed grains. In 2005, major U.S. exports to Lithuania
included fish, dried fruits, nuts, oilseeds, vegetables, wines, and
alcohol. U.S.-produced products that are available in retail stores and
have good market potential include pet foods, dried fruits and nuts,
wines, liquors, and fresh fruits.

Lithuania prohibits imports of American beef and chicken due to a
dispute between the United States and the EU over technical sanitation
and health issues. The imposition of tariffs on non-EU agricultural
imports disadvantages sales of many U.S. products that would otherwise
have good import potential.

Lithuania\'s food exports include dairy products, meat, fish, and
beverages. The United States imported wood products, beverages, frozen
fish, starch, glues, and cotton articles from Lithuania.

### Opportunities [**Return to top**](#ch4)

The flow of EU funds into Lithuania may create opportunities in the
agricultural sector. Lithuania\'s agricultural sector plans to receive
more than USD 3 billion over the next seven years under the EU\'s Common
Agricultural Policy (CAP). The EU also plans to spend USD 80 million in
Lithuania to finance agricultural investment projects, like the
acquisition of machinery and equipment and the construction and
renovation of buildings. Lithuania's Rural Development Plan will also
dole out millions of dollars to farmers to support early retirement or
alternate livelihoods for those farming land unsuitable for modern
agriculture, reforestation of agricultural land, restructuring of farms,
and enforcement of standards.

### Internet Resources [**Return to top**](#ch4)

Ministry of Agriculture: [http://www.zum.lt](http://www.zum.lt/)

[Return to table of
contents](#doing-business-in-lithuania-a-country-commercial-guide-for-u.s.-companies)

[[]{#ch5 .anchor}Return to table of
contents](#doing-business-in-lithuania-a-country-commercial-guide-for-u.s.-companies)

# Chapter 5: Trade Regulations and Standards

-   [Import Tariffs](#import-tariffs-return-to-top)

-   [Trade Barriers](#trade-barriers-return-to-top)

-   [Import Requirements and
    Documentation](#import-requirements-and-documentation-return-to-top)

-   [U.S. Export Controls](#u.s.-export-controls-return-to-top)

-   [Temporary Entry](#temporary-entry-return-to-top)

-   [Labeling and Marking
    Requirements](#labeling-and-marking-requirements-return-to-top)

-   [Prohibited and Restricted
    Imports](#prohibited-and-restricted-imports-return-to-top)

-   [Customs Regulations and Contact
    Information](#customs-contact-information-return-to-top)

-   [Standards](#standards-return-to-top)

-   [Trade Agreements](#trade-agreements-return-to-top)

-   [Internet Resources](#internet-resources-return-to-top-7)

## Import Tariffs [**Return to top**](#ch5)

Lithuania extends most favored nation treatment to U.S. products. The
government licenses imports of sugar, grain, alcohol, and weapons. There
are no other quantitative constraints on imports. Lithuania's tariff
classification is based on the Harmonized Commodity Description and
Coding System. In addition to tariffs, imports are subject to excise
taxes and an 18% VAT.

## Trade Barriers [**Return to top**](#ch5)

Lithuania does not present significant barriers to the export of U.S.
goods and services beyond those the EU imposes. Military contracts in
excess of LTL 5 million (USD 1.9 million) require offset agreements.
Lithuania may require EU design standards for public procurement (e.g.,
in a tender issuance for a public safety system). Enforcement of
intellectual property rights safeguards is weak, prosecution protracted,
and penalties imposed are low.

## Import Requirements and Documentation [**Return to top**](#ch5)

Lithuanian customs authorities require a copy of the sales contract, an
invoice, a bill of lading indicating the amount, weight and value of
imported goods, and the certificate of origin. At the border, an
importer or his agent must complete a customs declaration and a customs
freight delivery note.

For meat imports, the State Veterinary Department provides border
inspection controls for bovine spongiform encephalopathy (BSE), classic
swine fever, salmonella, FMD, and other diseases. Imported food products
require conformity certificates of quality and wholesomeness. Cosmetics
and toys require a producer\'s declaration.

## U.S. Export Controls [**Return to top**](#ch5)

For information on U.S. export controls, consult the [U.S. Department of
Commerce Shipping, Documentation, and Requirements
website](http://www.export.gov/shipping_documentation_and_requirements/index.asp).

## Temporary Entry [**Return to top**](#ch5)

Goods transiting Lithuania are not subject to duties. It is possible to
obtain a temporary duty exemption for items such as commercial samples
and for goods intended for public displays at exhibitions and fairs. If
the goods are put to any unauthorized use or are not re-exported within
the prescribed period, they are subject to duties, taxes, and standard
customs clearance procedures.

## Labeling and Marking Requirements [**Return to top**](#ch5)

The following information must appear in Lithuanian on retail packaging
or be otherwise marked on the product (i.e., on a sticker or label):

-   Product name (indicating the package contents);

-   Manufacturer\'s name or the name of the company that had the product
    manufactured; and

-   Content mass or volume (to be specified using the metric system).

The following information should also appear on the retail packaging or
be otherwise clearly identified on the product: product contents, care
instructions, operating instructions, and a warning of possible danger
related to the use or disposal of the product.

Packaged food for retail sale must show the name of the manufacturer and
importer, product name, net metric mass or volume, ingredients,
recommended final date of sale, and storage instructions, if perishable
or intended for infants. This information must be in Lithuanian.

An overview of EU mandatory and voluntary labeling and marking
requirements is available on
<http://www.export.gov/mrktresearch/index.asp>

## Prohibited and Restricted Imports [**Return to top**](#ch5)

The Government of Lithuania controls import, export, and transit of
strategic goods and technologies on the Ministry of Economy\'s list of
Controlled Strategic Goods and Technology. The Economy Ministry issues
licenses for import or export of such. For more information on
import/export control, see the [Lithuanian Ministry of
Economy](http://www.ukmin.lt/index.php/en/trade/export/).

## Customs Contact Information [**Return to top**](#ch5)

Lithuania Customs Department:
[http://www.cust.lt](http://www.cust.lt/en/rubric?rubricID=193)

## Standards [**Return to top**](#ch5)

-   [Overview](#overview-return-to-top-5)

-   [Standards Organizations](#standards-organizations-return-to-top)

-   [Conformity Assessment](#conformity-assessment-return-to-top)

-   [Product Certification](#product-certification-return-to-top)

-   [Accreditation](#accreditation-return-to-top)

-   [Publication of Technical
    Regulations](#publication-of-technical-regulations-return-to-top)

-   [Labeling and Marking](#labeling-and-marking-return-to-top)

### Overview [**Return to top**](#standards-return-to-top)

Lithuania is a member of the European Union, and all EU standards
regulations and restrictions apply. Lithuania recognizes the European
\"CE\" mark, which indicates conformity with the legal requirements of
EU Directives.

Products tested and certified in the United States to American standards
are likely to have to be retested and re-certified to EU requirements as
a result of the EU's different approach to the protection of the health
and safety of consumers and the environment. Where products are not
regulated by specific EU technical legislation, they are always subject
to the EU's General Product Safety Directive as well as to possible
additional national requirements.

European Union standards created under the New Approach are harmonized
across the 25 EU Member States and European Economic Area countries to
allow for the free flow of goods. A feature of the New Approach is CE
marking. While harmonization of EU legislation can facilitate access to
the EU Single Market, manufacturers should be aware that Regulations and
technical standards might also function as barriers to trade if U.S.
standards are different from those of the European Union.

The European Union is currently undertaking a major revision of the New
Approach which will enhance some aspects, especially in the areas of
market surveillance. To follow the revision, please visit
<http://ec.europa.eu/enterprise/newapproach/review_en.htm>

Agricultural Standards

The establishment of harmonized EU rules and standards in the food
sector has been ongoing for several decades, but it took until January
2002 for the publication of a general food law establishing the general
principles of EU food law. This regulation introduced mandatory
traceability throughout the feed and food chain as of Jan 1, 2005. For
specific information on agricultural standards, please refer to the
Foreign Agricultural Service's website at:
<http://useu.usmission.gov/agri/>

### Standards Organizations [**Return to top**](#standards-return-to-top)

EU standards setting is a process based on consensus initiated by
industry or mandated by the European Commission and carried out by
independent standards bodies, acting at the national, European or
international level. There is strong encouragement for non-governmental
organizations, such as environmental and consumer groups, to actively
participate in European standardization.

Many standards in the EU are adopted from international standards bodies
such as the International Standards Organization (ISO). The drafting of
specific EU standards is handled by three European standards
organizations:

CENELEC, European Committee for Electrotechnical Standardization

(<http://www.cenelec.org/Cenelec/Homepage.htm>)

ETSI, European Telecommunications Standards Institute
(<http://www.etsi.org/>)

CEN, European Committee for Standardization, handling all other
standards

(<http://www.cen.eu/cenorm/index.htm>)

Standards are created or modified by experts in Technical Committees or
Working Groups. The members of CEN and CENELEC are the national
standards bodies of the Member States, which have \"mirror committees\"
that monitor and participate in ongoing European standardization. CEN
and CENELEC standards are sold by the individual Member States standards
bodies. ETSI is different in that it allows direct participation in its
technical committees from non-EU companies that have interests in Europe
and gives away its individual standards at no charge on its website. In
addition to the three standards developing organizations, the European
Commission plays an important role in standardization through its
funding of the participation in the standardization process of small-
and medium-sized companies and non-governmental organizations, such as
environmental and consumer groups. The Commission also provides money to
the standards bodies when it mandates standards development to the
European Standards Organization for harmonized standards that will be
linked to EU technical Regulations. In the last year, the Commission
began listing their mandates on line and they can be seen at
<http://ec.europa.eu/enterprise/standards_policy/mandates/>. All the EU
harmonized standards, which provide the basis for CE marking, can be
found on <http://www.newapproach.org/>.

To know what CEN and CENELEC have in the pipeline for future
standardization, it is best to visit their websites. CEN's \"business
domain\" page provides an overview by sector and/or technical committee
whereas CENELEC offers the possibility to search its database. ETSI's
portal (<http://portal.etsi.org/Portal_Common/home.asp>) leads to
ongoing activities.

With the need to adapt more quickly to market needs, European standards
organizations have been looking for \"new deliverables\" which are
standard-like products delivered in a shorter timeframe. While few of
these \"new deliverables\" have been linked to EU Regulations,
expectations are that they will eventually serve as the basis for
EU-wide standards.

Key Link: <http://www.cenorm.be/cenorm/workarea/sectorfora/index.asp>.

Lithuania\'s standards organization is the [Lithuanian Standards
Board](htp://www.lsd.lt), which is also a member of these EU bodies.

### Conformity Assessment [**Return to top**](#standards-return-to-top)

Conformity Assessment is a mandatory step for the manufacturer in the
process of complying with specific EU legislation. The purpose of
conformity assessment is to ensure consistency of compliance during all
stages of the production process to facilitate acceptance of the final
product. EU product legislation gives manufacturers some choice with
regard to conformity assessment, depending on the level of risk involved
in the use of their product. These range from self-certification, type
examination and production quality control system, to full quality
assurance system. You can find conformity assessment bodies in
individual Member State country in this list by the European Commission.

Key Link: <http://ec.europa.eu/enterprise/newapproach/nando/>

To promote market acceptance of the final product, there are a number of
voluntary conformity assessment programs. CEN's certification systems
are the Keymark, the CENCER mark, and the European Standard Agreement
Group. CENELEC has its own initiative. ETSI does not offer conformity
assessment services.

### Product Certification [**Return to top**](#standards-return-to-top)

To sell products on the EU market of 25 Member States as well as Norway,
Liechtenstein and Iceland, U.S. exporters are required to apply CE
marking whenever their product is covered by specific product
legislation. CE marking product legislation offers manufacturers a
number of choices and requires decisions to determine which
safety/health concerns need to be addressed, which conformity assessment
module is best suited to the manufacturing process, and whether or not
to use EU-wide harmonized standards. There is no easy way for U.S.
exporters to understand and go through the process of CE marking, but
hopefully this section provides some background and clarification.

Products manufactured to standards adopted by CEN, CENELEC and ETSI, and
published in the Official Journal as harmonized standards, are presumed
to conform to the requirements of EU Directives. The manufacturer then
applies the CE marking and issues a declaration of conformity. With
these, the product will be allowed to circulate freely within the EU. A
manufacturer can choose not to use the harmonized EU standards, but then
must demonstrate that the product meets the essential safety and
performance requirements. Trade barriers occur when design, rather than
performance, standards are developed by the relevant European
standardization organization, and when U.S. companies do not have access
to the standardization process through a European presence.

The CE marking addresses itself primarily to the national control
authorities of the Member States, and its use simplifies the task of
essential market surveillance of regulated products. Although CE marking
is intended primarily for inspection purposes by Member State
inspectors, the consumer may well perceive it as a quality mark.

The CE marking is not intended to include detailed technical information
on the product, but there must be enough information to enable the
inspector to trace the product back to the manufacturer or the
authorized representative established in the EU. This detailed
information should not appear next to the CE marking, but rather on the
declaration of conformity, the certificate of conformity (which the
manufacturer or authorized agent must be able to provide at any time,
together with the product\'s technical file), or the documents
accompanying the product.

### Accreditation [**Return to top**](#standards-return-to-top)

Independent certification bodies, known as notified bodies, have been
officially accredited by competent authorities to test and certify to EU
requirements. However, under U.S.-EU Mutual Recognition Agreements
(MRAs), notified bodies based in the United States and referred to as
conformity assessment bodies, are allowed to test in the United States
to EU specifications, and vice versa. The costs are significantly lower
which results in U.S. products becoming more competitive. At this time,
the U.S.-EU MRAs cover the following sectors: EMC (in force), RTTE (in
force), medical devices (in transition), pharmaceutical (on hold),
recreational craft (in force) and marine equipment (in force). The U.S.
Department of Commerce, National Institute of Standards and Technology
(NIST), has a link on its website to American and European Conformity
Assessment bodies operating under a mutual recognition agreement.

Key Link: <http://ts.nist.gov/Standards/Global/mra.cfm>

Accreditation is handled at Member State level. \"European
Accreditation\"
([http://www.european-accreditation.org/default_flash.htm](http://www.european-accreditation.org/))
is an organization representing nationally recognized accreditation
bodies. Membership is open to nationally recognized accreditation bodies
in countries in the European geographical area that can demonstrate that
they operate an accreditation system compatible with EN45003 or ISO/IEC
Guide 58.

### Publication of Technical Regulations [**Return to top**](#standards-return-to-top)

The Official Journal is the official gazette of the European Union. It
is published daily and consists of two series covering draft and adopted
legislation as well as case law, questions from the European Parliament,
studies by committees, and more
(<http://europa.eu.int/eur-lex/lex/JOIndex.do?ihmlang=en>). It lists the
standards reference numbers linked to legislation
(<http://www.newapproach.org/Directives/DirectiveList.asp>). National
technical Regulations are published on the Commission's website
<http://ec.europa.eu/comm/enterprise/tris/> to allow other countries and
interested parties to comment.

Member countries of the World Trade Organization (WTO) are required
under the Agreement on Technical Barriers to Trade (TBT Agreement) to
report to the WTO all proposed technical Regulations that could affect
trade with other member countries. **Notify Us** is a free, web-based
e-mail subscription service that offers an opportunity to review and
comment on proposed foreign technical Regulations that can affect your
access to international markets. Register online at Internet URL:
<http://tsapps.nist.gov/notifyus/data/index/index.cfm>

### Labeling and Marking [**Return to top**](#standards-return-to-top)

The following information must appear in Lithuanian on retail packaging
or be otherwise marked on the product (i.e., on a sticker or label):

-   Product name (indicating the package contents);

-   Manufacturer\'s name or the name of the company that had the product
    manufactured; and

-   Content mass or volume (to be specified using the metric system).

The following information should also appear on the retail packaging or
be otherwise clearly identified on the product: product contents, care
instructions, operating instructions, and a warning of possible danger
related to the use or disposal of the product.

Packaged food for retail sale must show the name of the manufacturer and
importer, product name, net metric mass or volume, ingredients,
recommended final date of sale, and storage instructions, if perishable
or intended for infants. This information must be in Lithuanian.

Manufacturers are advised to take note that all labels require metric
units, although dual labeling is also acceptable until end of December
2009. The use of language on labels has been the subject of a Commission
Communication, which encourages multilingual information, while
preserving the right of Member States to require the use of language of
the country of consumption.

The EU has mandated that certain products be sold in standardized
quantities. Council Directive 80/232/EC provides permissible ranges of
nominal quantities, container capacities and volumes for a variety of
products. Please note that this legislation is currently being reviewed
in an effort to simplify it.

Key Link:

<http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31980L0232:EN:HTML>

## Trade Agreements [**Return to top**](#ch5)

For a list of trade agreements with the EU and its Member States, as
well as concise explanations, please see
<http://tcc.export.gov/Trade_Agreements/index.asp>

## Internet Resources [**Return to top**](#ch5)

The website of the Lithuanian Ministry of Foreign Affairs contains
useful trade-related information in both English and Lithuanian:
[http://www.urm.lt](http://www.urm.lt/index.php?660068751)

Office of the U.S. Trade Representative

<http://www.ustr.gov/>

U.S. Mission to the EU (USEU) website

[http://www.useu.be](http://www.useu.be/) or
[http://useu.usmission.gov/]{.underline}

Foreign Agricultural Service website, USEU

<http://www.useu.be/agri/usda.html>

Trade Compliance Center

<http://www.trade.gov/tcc>

U.S. Mission to the European Union

<http://www.buyusa.gov/europeanunion>

USDA Audit, Review & Compliance

<http://www.ams.usda.gov/lsg/arc/audit.htm>

EC's TARIC -- online customs tariff database

<http://ec.europa.eu/comm/taxation_customs/common/databases/taric/index_en.htm>

Batteries

<http://www.buyusainfo.net/docs/x_8086174.pdf>

WEEE & RoHS

<http://www.buyusa.gov/europeanunion/weee.html>

Harmonized import requirements

<http://www.useu.be/agri/certification.html>

EU Hygiene guidelines

[Commission Regulation
2073/2005](http://europa.eu.int/eur-lex/lex/LexUriServ/site/en/oj/2005/l_338/l_33820051222en00010026.pdf)

[Commission Regulation
2074/2005](http://europa.eu.int/eur-lex/lex/LexUriServ/site/en/oj/2005/l_338/l_33820051222en00270059.pdf)

[Commission Regulation
2076/2005](http://europa.eu.int/eur-lex/lex/LexUriServ/site/en/oj/2005/l_338/l_33820051222en00830088.pdf)

National Marine Fisheries Service's Trade & Commercial Services website

<http://www.nmfs.noaa.gov/ocs/tradecommercial>

USDA Center for Food Safety and Applied Nutrition

<http://www.cfsan.fda.gov/>

EU mandatory and voluntary labeling and marking requirements

<http://www.export.gov/mrktresearch/index.asp>

EC Taxation and Customs Union

<http://ec.europa.eu/comm/taxation_customs/customs/index_en.htm>

National customs authorities

<http://ec.europa.eu/taxation_customs/common/links/customs/index_en.htm>

EC Regulation on animal by-products

<http://ec.europa.eu/scadplus/leg/en/lvb/f81001.htm>

Major Revision of the New Approach

<http://ec.europa.eu/enterprise/newapproach/review_en.htm>

EC Certification of Animal Products

[http://useu.usmission.gov/agri/certification.html](http://www.useu.be/agri/certification.html)

EU-approved U.S. Establishments

[http://useu.usmission.gov/agri/estab.html](http://www.useu.be/agri/estab.html)

EU Marketing Standards for Fruits & Vegetables

[http://useu.usmission.gov/agri/Fruit-Veg.html](http://www.useu.be/agri/Fruit-Veg.html)

Non-Hormone Treated Cattle (NHTC) Program

<http://www.ams.usda.gov/lsg/arc/nhtc.htm>

Organic Foods Legislation

[http://useu.usmission.gov/agri/organic.html](http://www.useu.be/agri/organic.html)

CENELEC, European Committee for Electrotechnical Standardization

<http://www.cenelec.org/Cenelec/Homepage.htm>

ETSI, European Telecommunications Standards Institute

<http://www.etsi.org/>

CEN, European Committee for Standardization

[http://www.cen.eu/cenorm/index.htm](http://www.cenorm.be/)

Standardization mandates

<http://ec.europa.eu/enterprise/standards_policy/mandates/>

ANSI, American National Standards Institute

<http://www.ansi.org/>

New Approach Legislation and Standardization in the Internal Market

<http://www.newapproach.org/>

ETSI's e-Standardization portal

<http://portal.etsi.org/Portal_Common/home.asp>

Advisory and coordinating bodies to CEN

<http://www.cenorm.be/cenorm/workarea/sectorfora/index.asp>

Accredited test laboratories in the EU

<http://ec.europa.eu/enterprise/newapproach/nando/>

Government-to-Government Mutual Recognition Agreement Information

<http://ts.nist.gov/Standards/Global/mra.cfm>

European co-operation for Accreditation

<http://www.european-accreditation.org/default_flash.htm>

European Union law portal

<http://europa.eu.int/eur-lex/lex/JOIndex.do?ihmlang=en>

List of EU Directives and Standards

<http://www.newapproach.org/Directives/DirectiveList.asp>

EC Technical Regulations Information System

<http://ec.europa.eu/comm/enterprise/tris/>

Proposed Foreign Technical Regulations

<http://tsapps.nist.gov/notifyus/data/index/index.cfm>

EC Directive on packaging

<http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31980L0232:EN:HTML>

EU Eco-label Homepage

<http://buyusainfo.net/docs/x_4284752.pdf>

<http://ec.europa.eu/comm/environment/ecolabel/index_en.htm>

<http://www.eco-label.com/>

FAO

[www.wto.org](http://www.wto.org/)

[Food and Agriculture Organization (FAO)](http://www.fao.org/)

WTO

[www.wto.org](http://www.wto.org/)

[World Trade Organization (WTO)](http://www.wto.org/)

[Return to table of
contents](#doing-business-in-lithuania-a-country-commercial-guide-for-u.s.-companies)

[[]{#ch6 .anchor}Return to table of
contents](#doing-business-in-lithuania-a-country-commercial-guide-for-u.s.-companies)

# Chapter 6: Investment Climate

-   [Openness to Foreign
    Investment](#openness-to-foreign-investment-return-to-top)

-   [Conversion and Transfer
    Policies](#conversion-and-transfer-policies-return-to-top)

-   [Expropriation and
    Compensation](#expropriation-and-compensation-return-to-top)

-   [Dispute Settlement](#dispute-settlement-return-to-top)

-   [Performance Requirements and
    Incentives](#performance-requirements-and-incentives-return-to-top)

-   [Right to Private Ownership and
    Establishment](#right-to-private-ownership-and-establishment-return-to-top)

-   [Protection of Property Rights](#forty)

-   [Transparency of Regulatory
    System](#transparency-of-regulatory-system-return-to-top)

-   [Efficient Capital Markets and Portfolio
    Investment](#efficient-capital-markets-and-portfolio-investment-return-to-top)

-   [Political Violence](#political-violence-return-to-top)

-   [Corruption](#corruption-return-to-top)

-   [Bilateral Investment
    Agreements](#bilateral-investment-agreements-return-to-top)

-   [OPIC and Other Investment Insurance
    Programs](#opic-and-other-investment-insurance-programs-return-to-top)

-   [Labor](#labor-return-to-top)

-   [Foreign-Trade Zones/Free
    Ports](#foreign-trade-zonesfree-ports-return-to-top)

-   [Foreign Direct Investment
    Statistics](#foreign-direct-investment-statistics-return-to-top)

## Openness to Foreign Investment [**Return to top**](#ch6)

Lithuania has one of the fastest growing economies in Europe, with GDP
growth of 7 percent in 2004, 7.6 percent in 2005 and 7.4 percent in 2006
. Among the attractions of Lithuania\'s investment climate are a
diversified economy, investment laws that conform to EU standards, a low
corporate profit tax, a well-educated workforce, the region\'s
best-developed infrastructure, a stable democratic government and
banking system, membership in the European Union, and proximity to
Eastern European markets. EU Structural Funds amounting to more than USD
12.4 billion from 2007 to 2013 should provide a boost to the economy.

Lithuania\'s income levels still lag behind the rest of the EU, with per
capita GDP (at purchasing power parity) of nearly 48 percent of the EU
average. This, combined with the gradual liberalization of the EU\'s
labor market, is encouraging emigration of Lithuania's labor force
abroad. Employers report labor shortages in several sectors, including
construction, healthcare, and transportation. Large investments may face
difficulty finding the necessary number of workers for production needs.
Wage inflation, which averaged 15.7 percent in 2006, is an important
factor for potential investors to consider.

Lithuania encourages foreign companies and investors to explore
investment opportunities. The Lithuanian Development Agency (LDA) is the
government\'s principal agency dedicated to attracting foreign
investment.

Lithuania\'s laws assure equal protection for both foreign and domestic
investors. No special permit is required from government authorities to
invest foreign capital in Lithuania. Foreign investors have free access
to all sectors of economy with some limited exceptions:

\-- The Law on Investment prohibits investment of foreign capital in
sectors related to the security and defense of the State.

\-- The Law also requires government permission and licensing for
commercial activities that may pose risks to human life, health, or the
environment, including the manufacturing of, or trade in, weapons.

\-- Non-Lithuanians are generally not able to buy agricultural or
forestry land. As part of its EU accession agreement, however, the
Lithuanian government Lithuania must eliminate this restriction by 2011.
The restriction does not apply to most non-Lithuanian individuals and
organizations that have engaged in agriculture in Lithuania for at least
three years. This restriction also does not apply to organizations that
have established representative or branch offices in Lithuania.

The Law on Investment specifically permits the following forms of
investment in Lithuania:

\-- Establishment of an enterprise or acquisition of a part or whole of
the authorized capital of an operating enterprise registered in
Lithuania;

\-- Acquisition of securities of any type;

\-- Creation, acquisition, and increase in the value of long-term
assets;

\-- Lending of funds or other assets to business entities in which the
investor owns a stake, allowing control or considerable influence over
the company; and

\-- Performance of concession or leasing agreements.

Foreign entities are allowed to establish branches or representative
offices. There are no limits on foreign ownership or control. Foreign
investors can contribute capital in the form of money, assets, or
intellectual or industrial property.

Lithuanian law protects foreign investments and investors\' rights, and
the judicial system is generally effective at upholding the enforcement
of contracts. Foreign investors are free to enforce their rights by
applying to the courts of Lithuania or directly to the International
Center for Settlement of Investment Disputes under the Washington
Convention of 1965.

Foreign investors have the right to repatriate profits, income, or
dividends, in cash or otherwise, or to reinvest the income without any
limitation, after paying taxes. The law establishes no limits on foreign
ownership or control.

State institutions have no right to interfere with the legal possession
of foreign investors\' property. In the event of justified
expropriation, investors are entitled to compensation equivalent to the
market value of the property expropriated. The law obligates state
institutions and officials to keep commercial secrets confidential and
requires compensation for any loss or damage caused by illegal
disclosure.

Foreign investors are treated equitably in privatization programs. The
government has privatized most state enterprises and property, and the
State Property Fund is responsible for managing and privatizing state
assets. Major assets still under government control include the
Lithuanian electric power distribution company (Rytu Skirstomieji
Tinklai), the railway company (Lietuvos Gelezinkeliai), and Lithuania\'s
three international airports (Vilnius, Kaunas, and Klaipeda). Foreign
investors purchased the majority of state assets privatized since 1990.
These included companies in the banking, transportation, and energy
sectors. Some foreign companies have complained about lack of
transparency or discrimination in certain privatization transactions.

The State Property Fund screens the performance record and size of
companies bidding on state or municipal property and has halted
privatizations when it determined that the bidders were not suitable.

## Conversion and Transfer Policies [**Return to top**](#ch6)

The national currency is the litas. The Law on Foreign currency also
allows individuals and organizations to use the euro for domestic cash
and non-cash payments and settlements; it allows individuals and
organizations to use other foreign currency for making non-cash payments
and settlements when both parties in the transaction agree to do so.
There are no restrictions on the transfer or conversion of the litas.

Lithuania has maintained a currency board since 1994. On February 1,
2002, the government pegged the litas (LTL) to the euro (EUR) at the
rate of LTL 3.4528 to EUR 1. Prior to that date, the peg was LTL 4 to
USD 1. The government backs the litas with gold and foreign currency
reserves.

Lithuania entered the EU\'s exchange rate mechanism (ERM II) in June
2004. Its plans to adopt the euro in 2007 failed because inflation
slightly exceeded the allowable limit. Lithuania will continue to pursue
membership in the eurozone, but relatively high inflation will probably
prevent entry before 2010.

## Expropriation and Compensation [**Return to top**](#ch6)

Lithuanian law permits expropriation on the basis of public need, but
requires compensation at market value in convertible currency. The law
requires payment of compensation within three months of the date of
expropriation in the currency the foreign investor requests. (If the
government determines compensation in litas, it uses the official
exchange rate on the date of this determination.)  The compensation must
include interest (calculated on the basis of the LIBOR rate of the
relevant currency) from the date of publication of the notice of
expropriation until the payment of compensation. The recipient may
transfer this compensation abroad without any restrictions.

There have been no cases of expropriation of private property by the
Government of Lithuania since 1991.

.

## Dispute Settlement [**Return to top**](#ch6)

The Lithuanian legal system stems from the legal traditions of
continental Europe and is in accordance with the EU\'s *acquis
communautaire*. New laws enter into force upon promulgation by the
President (or in some cases the Chairman of the Parliament (Seimas)) and
publication in the official gazette Valstybes Zinios (State News).

General jurisdiction courts, dealing with civil and criminal matters,
comprise the core of the Lithuanian court system: the Supreme Court, the
Court of Appeals, district courts, and local courts. In 1999, Lithuania
established a system of administrative courts to adjudicate
administrative cases, which generally involve disputes between
government regulatory agencies and individuals or organizations. The
administrative court system consists of the Highest Administrative Court
and District Administrative Court.

The Constitutional Court of Lithuania is a separate, independent
judicial body that determines whether laws and legal acts adopted by the
Seimas, President, and the Government conform to the Constitution.

Lithuania\'s legal system provides several possibilities for commercial
dispute resolution. Parties can settle disputes in local courts or in
the increasingly popular independent (i.e., non-governmental) Commercial
Court of Arbitration. Lithuania also recognizes arbitration by foreign
courts. Courts generally operate independently of government influence.
There have been no major disputes between foreign investors and the
Government of Lithuania since independence in 1991.

Lithuania passed the current Enterprise Bankruptcy Law in 2001. This law
applies to all enterprises, public establishments, commercial banks, and
other credit institutions registered in Lithuania. The law provides a
mechanism to override the provisions of other laws regulating enterprise
activities, assuring protection of creditors\' rights, recovery of
debts, and payment of taxes and other mandatory contributions to the
State. This law establishes the following order of creditors\' claims:
claims by creditors that are secured by a mortgage/pledge of debtor;
claims related to employment; tax, social insurance, and state medical
insurance claims; claims arising from loans guaranteed or issued on
behalf of the Republic of Lithuania or its Government; and other claims.

Lithuania is a party to the Convention on the Settlement of Investment
Disputes between States and Nationals of Other States (Washington
Convention) and is a member of the International Center for the
Settlement of Investment Disputes. It is also a signatory to the 1958
New York Convention on the Recognition and Enforcement of Foreign
Arbitral Awards.

.

## Performance Requirements and Incentives [**Return to top**](#ch6)

Lithuania provides special incentives to strategic investors. The
criteria by which the national government or a municipality designates a
strategic investor varies from project to project. In general, the
national government requires that a strategic investor invest USD 50
million or more. Municipalities may tie the designation criteria, such
as the number of jobs created and the environmental benefits that
accrue. Strategic investors\' rewards include special business
conditions, such as favorable tax incentives for up to ten years.
Significant tax incentives apply to foreign investments made before
1997. Municipalities may grant special incentives to induce investments
in municipal infrastructure, manufacturing, and services. The government
intends to publish a long-delayed national investment strategy in 2007
which should improve the array of incentives provided to potential
investors.

Government Resolution No. 918 of July 15, 2003 requires offset
agreements as a condition for awarding contracts to procure military
equipment valued at more than LTL 5 million (USD 1.9 million). Offsets
are obligations the government imposes that require companies to provide
services, create jobs, or purchase local goods as a condition for the
contract\'s award. Bidders can negotiate the exact terms of the offset
agreement with the government.

Foreign investors have the same rights as local firms to participate in
government-financed and -subsidized research and development (R&D)
programs.

There are no requirements for local content or purchasing from local
sources as a condition for investment or public purchases.
Municipalities may ask investors to develop roadways or other
infrastructure adjoining their project, but such proposals are subject
to negotiation. Lithuania\'s EU membership has given foreign firms the
additional right to appeal adverse governmental rulings to the European
Court of Justice. Lithuania\'s \"Law on Public Procurement,\" which came
into effect on March 1, 2003, is in accordance with the EU\'s *acquis
communautaire*.

Some foreign investors, including U.S. citizens, report difficulties in
obtaining and renewing residency permits. U.S. citizens can stay in
Lithuania no more than 90 days without a visa (and no more than 180 days
total per calendar year). Those who stay longer face fines and
deportation. The current residency permit process is not user-friendly.
In principle, Lithuanian embassies abroad are able to initiate the
residency permits process. In practice, U.S. citizens are only able to
begin the residency permit process upon arrival in Lithuania. Decisions
by the Migration Office regarding the issuance of residency permits may
take up to six months. The Embassy has learned of instances where
American Citizens have either been effectively trapped in Lithuania or
asked to leave solely because their application for a residency permit
was not processed in a timely manner. The Embassy has also received
reports that the Migration Office imposes varying and sometimes
capricious demands regarding the documentation required for a residency
permit.

## Right to Private Ownership and Establishment [**Return to top**](#ch6)

[]{#forty .anchor}Foreign and domestic private entities have the right
to establish, acquire, and dispose of interests in business enterprises.
The laws of the Republic of Lithuania protect rights and legal interests
of both domestic and foreign investors. Lithuania has privatized most
enterprises. Where state-owned companies and private companies compete
for public or private contracts, they do so on legally equal terms.

The Law on Investments describes the basic principles defining the
treatment of foreign investments in Lithuania. Foreign investors have
the same rights and obligations relating to commercial activities as
local investors. They have the right to transfer profit (income) owned
as private property without any restrictions, after paying taxes.
Generally, foreign investors have free access to all sectors of the
economy. However, Lithuanian law prohibits investment of capital of
foreign origin in sectors relating to security and defense of the State.

Lithuania introduced a law restricting monopolies in 1993.

## Protection of Property Rights [**Return to top**](#ch6)

Lithuanian law protects foreign investments and the rights of investors
in several ways.

\-- The Constitution and the Law on Foreign Capital Investment protect
all forms of private property against nationalization or requisition.

\-- International agreements offer protections, such as the 1958 New
York Convention on the recognition and enforcement of foreign arbitral
awards.

\-- Bilateral agreements with the United States and other western
countries on the mutual protection and encouragement of investments
reinforce these protections.

\-- The law on capital investment in Lithuania and other acts regulate
customs duties, taxes, and relationships with financial and inspection
authorities. This law also establishes the procedures of dispute
settlements.

\-- In the event of justified expropriation, applicable law entitles
investors to compensation equivalent to the market value of the
expropriated property.

\-- Foreign investors may defend their rights under the Washington
Convention of 1965 by applying to either Lithuanian courts or directly
to the International Center for the Settlement of Investment Disputes.
To date, Lithuania has not been involved in any major investment
disputes with American or other foreign investors.

\-- State institutions and officials are obligated to keep commercial
secrets confidential and must pay compensation for any loss or damage
caused by illegal disclosure. Lithuania legalized the possibility of
hiring private bailiffs to enforce court judgments in 2003.

Lithuania\'s commercial laws conform to EU requirements, and include the
principles of the free establishment of companies, protection of
shareholders\' and creditors\' rights, free access to information, and
registration procedures. These laws include the following: the \"Company
Law\" and \"Law on Partnerships\" (last modified January 1, 2004), the
\"Law on Personal Enterprises\" (January 1, 2004), the \"Law on
Investments\" (1999), the \"Law On Bankruptcy of Enterprises,\" (2001)
and the \"Law on Restructuring of Enterprises\" (2001).

The Civil Code of 2000 governs commercial guarantees and security
instruments. It provides for the following types of guarantee and
security instruments to secure fulfillment of contractual obligations:
forfeiture, surety, guarantee, earnest money, pledge, and mortgage.

Lithuania joined the World Intellectual Property Organization (WIPO) in
2002 and the World Trade Organization (WTO) in 2001. It is also a
signatory to the following IPR-related treaties and conventions:

\-- The Paris Convention for the Protection of Industrial Property in
1990 (effective May 22, 1994);

\-- The Berne Convention for the Protection of Literary and Artistic
Works of 1886 (effective December 14, 1994);

\-- The Rome Convention for the Protection of Performers, Producers of
Phonograms and Broadcasting Organizations of 1961 (effective July 22,
1999);

\-- The Nice Agreement Concerning International Classification of Goods
and Services of 1957 (effective February 22, 1997);

\-- The Madrid Protocol of 1989 (effective November 15, 1997);

\-- The Patent Cooperation Treaty of 1970 under the auspices of WIPO
(effective July 5, 1994);

\-- The Conventions on the Grant of European Patents (December 1 2004);

\-- The WIPO Copyright Treaty of 1996 (effective March 6, 2002);

\-- The WIPO Performances and Phonograms Treaty of 1996 (effective May
20, 2002); and

\-- The Trademark Law Treaty of 1994 (effective April 27, 1998).

Lithuania enacted regulations in 2002 to protect confidential test data
that pharmaceutical firms submit for patent and trademark registration.
Following EU accession, Lithuania extended protection to member states\'
trademarks, designs, and applications. Lithuania brought its national
law protecting biological inventions into compliance with EU Directive
98/44 in June 2005.

Lithuania remains on the Special 301 Watch List. The country remains a
transshipment point for pirated optical media products from the East,
particularly Russia, to Europe. Lithuania\'s parliament amended the
country\'s Copyright Law in October 2006, bringing it into line with the
EU\'s copyright directive. The rate of optical media piracy in 2005,
estimated by one industry group to be approximately 85 percent of all
sales, was extremely high. The software piracy rate in 2005 (58 percent
for business software and 88 percent for entertainment software) was
also high.

## Transparency of Regulatory System [**Return to top**](#ch6)

The World Bank\'s \"Doing Business\" survey, which evaluates according
to ten criteria the ease of doing business in 175 countries, gave
generally high marks to Lithuania, ranking it 16th in 2006. Lithuania
scored especially high in the categories of \"registering property\"
(third) and \"enforcing contracts\" (fourth). It did less well in the
categories of \"hiring and firing\" (119th) and \"protecting investors\"
(60th). According to this report, registering a company takes
approximately 26 days and requires seven procedures.

The legal system of the Republic of Lithuania recognizes generally
accepted principles of the legal regulation of investments and subjects
both Lithuanian and foreign investors to equal business conditions.

Red tape remains a problem. Local business leaders complain that
bureaucratic procedures often are not user-friendly and that the
interpretation of regulations is too often inconsistent and unclear.

Businesses and private individuals complain frequently of corruption,
particularly in the process of awarding government contracts and the
granting of licenses and permits.

Businesses also complain that they have little opportunity to influence
new legislation and that new legislation sometimes appears with little
advance notice. Modern technology, however, may be alleviating this
problem: the parliament\'s website contains all draft laws currently
before it. Ministries also post many, but not all, draft laws under
consideration.

The tax code for businesses was changed in 2006. The government raised,
as of January 1, 2006, the tax on corporate profits from 15 to 19
percent. It currently plans to return the tax on corporate profits to 15
percent in 2008. In July 2006, the government decreased personal income
tax from 33 to 27 percent. The rate is scheduled to drop in January 2008
to 24 percent. The Lithuanian government, however, has announced that
may move this tax cut forward to mid-2007. The government also
introduced in 2006 an annual tax of one percent of the market price on
real estate owned by individuals that is used only for commercial
purposes.

## Efficient Capital Markets and Portfolio Investment [**Return to top**](#ch6)

Government policies do not interfere with the free flow of financial
resources or allocation of credit. In 1994, Lithuania accepted the
requirements of Article VIII of the Articles of Agreement of the
International Monetary Fund to liberalize all current payments and to
establish non-discriminatory currency agreements. Lithuania ensures free
movement of capital and does not plan to impose any restrictions. The
government imposes no restrictions on credits related to commercial
transactions or the provision of services, nor on financial loans and
credits. There are no restrictions on non-residents opening accounts
with commercial banks.

The banking system is stable, well-regulated and conforms to EU
standards. Dozens of banks operate in Lithuania: nine banks under
license of the Bank of Lithuania, branches of two foreign banks, three
foreign bank representative offices, 66 credit unions, and the Central
Credit Union of Lithuania. Following the completion of the bank
privatization process in 2002, the share of banking capital held by
foreign investors increased to 87.5 per cent. Nearly all foreign banks
are under German or Scandinavian control. Growth in loans slowed to 54.7
percent by November 2006, down from record-setting growth in 2005.

There is no restriction on portfolio investment. The right of ownership
to shares acquired through automatically matched trades is transferred
on the third working day following the conclusion of the transaction.
The Vilnius Stock Exchange is part of the OMX group of exchanges and
offers access to 80 percent of all securities trading in the Nordic and
Baltic marketplace.

Three authorities supervise financial markets. The Bank of Lithuania
supervises commercial banks and credit unions, the Securities Commission
supervises the securities market, and the Insurance Supervisory
Commission supervises insurance companies. The law requires these
institutions to cooperate with appropriate EU authorities.

## Political Violence [**Return to top**](#ch6)

Lithuania has not witnessed any incidents involving
politically-motivated damage to projects and/or installations. There are
no nascent insurrections, belligerent neighbors, or other
politically-motivated violence.

## Corruption [**Return to top**](#ch6)

There is a general perception that corruption is common. More than 50
governmental institutions regulate commerce in one way or another,
creating plenty of opportunities for corrupt practices.

Large foreign investors report few problems with corruption. On the
contrary, most large investors report that high-level officials are
often very helpful in solving problems fairly. In general, foreign
investors say that corruption is not a significant obstacle to doing
business in Lithuania and describe most of the bureaucrats they deal
with in Lithuania as reasonable and fair.

Small and medium enterprises (SME) perceive themselves as more
vulnerable to petty bureaucrats and commonly complain about extortion.
SMEs often complain that excessive red tape virtually requires the
payment of \"grease money\" to obtain permits promptly. Business owners
maintain that some government officials, on the other hand, view SMEs as
likely tax-cheats and smugglers, and treat the owners and managers
accordingly.

Paying or accepting a bribe is a criminal act. Lithuania established in
1997 the Special Investigation Service (Specialiuju Tyrimu Tarnyba)
specifically to fight public sector corruption. The agency investigates
approximately 100 cases of alleged corruption every year, but has yet to
bring charges against high-level officials for corrupt practices. Some
business leaders and government officials report that establishing an
institutional framework to fight corruption was high on the
government\'s agenda when Lithuania was seeking membership in the EU and
NATO, but they suggest that combating corruption is less of a priority
now.

Lithuania is a signatory of the UN Convention Against Corruption and the
OECD Convention on Combating Bribery of Foreign Public Officials.
Lithuania also hosts a representative office of Transparency
International (TI). TI ranked Lithuania 46th in its 2006 Perceptions of
Corruption Index with a score of 4.8. (TI considers countries with a
score below 5.0 to have serious problems with corruption.)  This score,
up from 4.6 in 2004, reflected some improvement but no change in
ranking.

## Bilateral Investment Agreements [**Return to top**](#ch6)

Lithuania joined the European Union on May 1, 2004. In doing so, it
joined all EU trade agreements with third countries and international
organizations. Lithuania also delegated its international trade policy
function to the EU Council and the European Commission. As a
consequence, Lithuania had to revoke all of its bilateral free trade
agreements signed before its accession to the EU.

The United States and Lithuania have signed and ratified the following
agreements and treaties:

\-- A charter of partnership between the United States, Estonia, Latvia,
Lithuania;

\-- A bilateral investment treaty that ensures reciprocal investment
protection and encourages additional investment;

\-- Treaty on avoidance of double taxation;

\-- Treaty on legal assistance in criminal matters;

\-- Extradition treaty;

\-- Agreement on social security; and

\-- Agreement on cooperation in preventing proliferation of weapons of
mass destruction and promotion of defense and military relations.

## OPIC and Other Investment Insurance Programs [**Return to top**](#ch6)

Coverage from the Overseas Private Investment Corporation (OPIC) is
available for U.S. investments in Lithuania. Lithuania is a member of
the Multilateral Investment Guarantee Agency (MIGA). Lithuania\'s fully
convertible currency, the litas, is pegged to the euro and its exchange
rate against the U.S. dollar fluctuates on a daily basis. On January 2,
2007, the exchange rate was USD 1 = LTL 2.62. Lithuania plans to adopt
the EU\'s common currency (euro), but is unlikely to meet the
eurozone\'s entry requirements until 2010, at the earliest.

## Labor [**Return to top**](#ch6)

Lithuanian labor is inexpensive compared with Western Europe, but a
shrinking labor force has pushed the salaries up by more than ten
percent, annually, for three consecutive years, and employers complain
about high personnel-related taxes. Employment regulations are often
stricter than in other EU countries.

By law, white-collar workers have a 40-hour workweek. Blue-collar
workers have a 48-hour workweek with premium pay for overtime. There are
minimum legal health and safety standards for the workplace. However,
worker complaints indicate that employers do not always observe these
standards. Lithuania is a member of International Labor Organization
(ILO) and adheres to its conventions.

The government adjusts the monthly minimum wage \-- currently USD 192
and set to rise to USD 210 in mid-2006 \-- regularly. The average
monthly wage is the equivalent of approximately USD 600. Average
salaries increased by more than 10 percent in 2005 and nearly 16 percent
in 2006.

Membership in the EU, and the consequent ability of Lithuanians to work
legally in several EU countries, has generated a sizable outflow of
labor. The national labor exchange reports a shortage of skilled
construction workers, truck drivers, shop assistants, medical nurses,
and medical specialists. Press reports and anecdotal information from
business leaders suggest that some companies are facing serious problems
finding both skilled and unskilled workers. Business leaders claim that
government regulations make it difficult to hire foreigners, especially
citizens of the former Soviet Union, to compensate for the lack of local
labor. The outflow of labor has led to extremely low unemployment
compared with other EU members; Lithuania\'s registered unemployment
rate was 3.7 percent in January 2007.

Lithuania\'s management-labor relations are good, and labor unions are
weak. There have been no major strikes or labor disruptions since the
country\'s independence in 1991.

Some business leaders claim that the 2002 Labor Law lacks flexibility
and increases the cost of production by making it harder to hire and
fire labor. This complaint is particularly common among businesses that
experience seasonal fluctuations in labor needs.

## Foreign-Trade Zones/Free Ports [**Return to top**](#ch6)

Lithuania has two Free Economic Zones (FEZ): one in Klaipeda, the
country\'s largest seaport, and one in Kaunas, an air, road, and rail
hub. There are currently eight businesses either operating or about to
start operation in the Klaipeda FEZ, with an estimated USD 410 million
in total foreign investment. The Klaipeda FEZ management company
reported that in 2006 it was negotiating with ten new potential
investors interested in doing business in the zone. Established in 1996,
the Kaunas FEZ announced its first investment only in late 2005 and the
agreements with three more investors were signed this year.

Lithuania\'s EU accession agreement permits the indefinite operation of
existing FEZs, but precludes the establishment of new ones. Foreign
firms operating in the FEZs have the same opportunities and benefits as
local companies.

Companies operating within the zones enjoy:

\-- Six years\' exemption from corporate income tax and 50 percent
reduction during the following 10 years (if the company invests more
than USD 1.2 million;

\-- Exemption from real estate tax; and

\-- A 50 percent discount on land leases.

## Foreign Direct Investment Statistics [**Return to top**](#ch6)

The United States is the seventh largest investor in Lithuania. American
investments (stock) totaled USD 257 million (July 1, 2006,), accounting
for approximately three percent of total FDI in Lithuania. There are 190
U.S. companies registered in Lithuania, and more than 590 U.S. companies
have representatives in the country. Total accumulated FDI was USD 8.7
billion as of July 2006, representing approximately 30 percent of GDP.

Although Russia is now the single largest investor in Lithuania, more
than 69 percent of FDI stock in Lithuania comes from EU countries. FDI
(stock) from EU countries reached slightly more than LTL 16 billion (USD
5.9 billion) in 2006. More than 36 percent of the FDI stock is invested
in the manufacturing sector, 13.6 percent in financial intermediation,
13.3 percent in trade, and 12.3 percent in transport, storage and
communication.

The countries with the most foreign investment (stock) in Lithuania as
of July 2006 are:

\-- Russia: USD 1791.9 million, 21.1 percent of FDI;

\-- Denmark: USD 1294.9 million, 15.2 percent;

\-- Sweden: USD 1020.6 million, 12.0 percent;

\-- Germany: USD 896.5 million, 10.5 percent;

\-- Estonia: USD 655.2 million, 7.7 percent;

\-- Finland: USD 599.4 million, 7.0 percent; and

\-- United States: USD 257.8 million, 3 percent.

Lithuanian businesses are expanding abroad, with investments totaling
USD 955 million. Investments into traded goods make up 46.9 percent of
Lithuanian investments abroad, followed by manufacturing (22.7 percent),
financial intermediation (9.6 percent), and transport, storage, and
communication enterprises (9.6 percent) of total Lithuania's FDI abroad.

The top destinations for Lithuania\'s investments abroad are:

\-- Latvia: USD 380.8 million, 34.8 percent of FDI abroad;

\-- Russia: USD 144.3 million, 13.2 percent (investment in Russia\'s
Kaliningrad region accounts for USD 88.9 million, 8.1 percent);

\-- Ukraine: USD 286.6 million, 9.7 percent;

\-- Estonia: USD 72.7 million, 6.7 percent;

[[]{#ch7 .anchor}Return to table of
contents](#doing-business-in-lithuania-a-country-commercial-guide-for-u.s.-companies)

# Chapter 7: Trade and Project Financing

-   [Banking Operations](#fiftyone)

-   [Foreign-Exchange
    Controls](#foreign-exchange-controls-return-to-top)

-   [U.S. Banks and Local Correspondent
    Banks](#u.s.-banks-and-local-correspondent-banks-return-to-top)

-   [Project Financing](#project-financing-return-to-top)

-   [Internet Resources](#internet-resources-return-to-top-8)

## Banking Operations [**Return to top**](#ch7)

Lithuania has a strong and well-developed banking system, under the
supervision of the Bank of Lithuania. The IMF and international
risk-rating agencies closely monitor Lithuania\'s banking sector. The
country has adopted a universal banking model that allows banks to
participate in other financial activities including operating, leasing,
insurance, and brokerage firms.

There have been no bank failures in Lithuania over the past decade.
Dozens of banks operate in Lithuania: nine banks under license of the
Bank of Lithuania, branches of two foreign banks, three foreign bank
representative offices, 66 credit unions, and the Central Credit Union
of Lithuania. Money laundering, tax evasion, and other financial crimes
are prevalent in the region. Lithuania has implemented appropriate laws,
bank monitoring regimes (internal and external), and law enforcement
tools to deter and detect such crimes. Nonetheless, investors should
exercise due diligence when selecting a bank. More information on
banking in Lithuania is available at the [Bank of Lithuania\'s
website](http://www.lb.lt/home/default.asp?lang=e).

Major Lithuanian commercial banks service the entire country through
their branch networks. They also manage individual subsidiaries that
engage in mortgage banking, finance company activities, credit card
business, and investment operations. Commercial banks have extensive
foreign networks of branch offices, subsidiaries, consortium banks, and
representative offices, through which foreign trade payments are made.

## Foreign-Exchange Controls [**Return to top**](#ch7)

There are no foreign exchange restrictions. Lithuania offers
unrestricted movement of capital and dividends.

## U.S. Banks and Local Correspondent Banks [**Return to top**](#ch7)

Lithuanian banks offer a wide range of banking services, including
foreign exchange transactions, issuance and receipt of checks, letters
of credit, and international payments. Local banks have established
correspondent accounts with commercial banks worldwide, including in the
U.S.

## Project Financing [**Return to top**](#ch7)

Lithuanian commercial banks provide financing for exports with
guarantees when possible. Exim Bank administers various programs
providing financing for U.S. exports to Lithuania.

#### ***Tendering for European public procurement contracts***

The U.S. Mission to the European Union in Brussels has developed a tool
to help U.S.-based companies bid on public procurement supplies
contracts in particular. All contracts for supplies that are procured by
European public authorities (national government departments, regional
agencies and public institutions, city authorities) above established
thresholds are open to U.S.-based companies by virtue of the Government
Procurement Agreement, of which the U.S. and the EU are parties. All the
tenders in this database are based on a selection of tenders published
in the EU Official Journal, that are open to GPA member countries. The
database contains on average 6,000 to 10,000 tenders and is updated
twice per week.

<http://www.buyusa.gov/europeanunion/eu_tenders.html>

## Internet Resources [**Return to top**](#ch7)

Export-Import Bank of the United States:
[http://www.exim.gov](http://www.exim.gov/)

Country Limitation Schedule:
<http://www.exim.gov/tools/country/country_limits.html>

OPIC: [http://www.opic.gov](http://www.opic.gov/)

Trade and Development Agency: [http://www.tda.gov](http://www.tda.gov/)

SBA\'s Office of International Trade:
[http://www.sba.gov/oit](http://www.sba.gov/oit/)

U.S. Department of Agriculture\'s Commodity Credit Corporation:
<http://www.fsa.usda.gov/ccc/default.htm>

U.S. Agency for International Development:
[http://www.usaid.gov](http://www.usaid.gov/)

World Bank: [http://www.worldbank.lt](http://www.worldbank.lt/)

[Return to table of
contents](#doing-business-in-lithuania-a-country-commercial-guide-for-u.s.-companies)

[[]{#ch8 .anchor}Return to table of
contents](#doing-business-in-lithuania-a-country-commercial-guide-for-u.s.-companies)

# Chapter 8: Business Travel

-   [Business Customs](#business-customs-return-to-top)

-   [Travel Advisory](#travel-advisory-return-to-top)

-   [Visa Requirements](#visa-requirements-return-to-top)

-   [Telecommunications](#telecommunications-return-to-top)

-   [Transportation](#transportation-return-to-top)

-   [Language](#language-return-to-top)

-   [Health](#health-return-to-top)

-   [Local Time, Business Hours and
    Holidays](#local-time-business-hours-and-holidays-return-to-top)

-   [Temporary Entry of Materials and Personal
    Belongings](#temporary-entry-of-materials-and-personal-belongings-return-to-top)

-   [Internet Resources](#internet-resources-return-to-top-9)

## Business Customs [**Return to top**](#ch8)

Social and business protocol in Lithuania is similar to that in the rest
of northern Europe. For additional information on traveling in
Lithuania, please see [Lithuania In Your
Pocket](http://www.inyourpocket.com/lithuania/en/).

Major hotels, quality restaurants, and most stores in Lithuania accept
credit cards. MasterCard and Visa are the most widely accepted credit
cards; a number of hotels and some restaurants and service stations
accept Diners Club and American Express. Budget accommodations,
fast-food restaurants, smaller retail establishments, and outdoor
markets operate primarily on a cash basis. Commercial banks cash
travelers\' checks or provide cash advances against credit cards, but
service charges are sometimes high. Currency exchange offices and most
banks buy and sell Lithuania\'s currency, the Litas. In rural areas,
travelers should be prepared to pay cash for most expenses.

There are numerous restaurants in Lithuania\'s major cities offering
first-class cuisine and service. There is an excellent supply and
diversity of imported food, household supplies, common medications, and
personal items.

## Travel Advisory [**Return to top**](#ch8)

The U.S. Department of State\'s
[website](http://travel.state.gov/travel/cis_pa_tw/cis/cis_1765.html)
has the latest information on travel advisories throughout the world.

## Visa Requirements [**Return to top**](#ch8)

U.S. citizens do not need to obtain a visa for visits of less than 90
days.

U.S. citizens, however, need both a residence permit and a work permit
to live and work in Lithuania. The local [Migration
Department](http://www.migracija.lt/MDEN/defaulte.htm) issues both
permits. English-language instructions for applying for these documents
are available from the [Ministry of Foreign
Affairs](http://www.urm.lt/index.php?660068751).

U.S. companies that require travel of foreign businesspersons to the
United States should be advised that security options are handled via an
interagency process. Visa applicants should go to the following links.

State Department Visa Website: <http://travel.state.gov/visa/index.html>

United States Visas.gov:
[http://www.unitedstatesvisas.gov](http://www.unitedstatesvisas.gov/)

U.S. Embassy Vilnius, Consular Section:
<http://www.usembassy.lt/Consular.asp>

## Telecommunications [**Return to top**](#ch8)

Domestic and international phone, cellular phone, fax, and e-mail
communications are generally excellent, though there can sometimes be
limited connectivity in rural areas. More information on
telecommunications services in the country is available at the internet
sites for the following companies:
[Telekomas](http://www.telecom.lt/en),
[Omnitel](http://www.omnitel.lt/?i3_en),
[Bite](http://www.bite.lt/en/?BID=f6qps11sj4nb4huncdlns7ce4c7aqrp8),
[tele2](http://www.tele2.lt/), and the [Lithuanian Development
Agency](http://www.lda.lt/).

## Transportation [**Return to top**](#ch8)

There are direct flights from many Western Europe cities to Lithuania.
Within Lithuania, travel by car is generally the fastest and most
convenient mode of transportation. For more information on
travel/transportation, please see the [Lithuanian State Department of
Tourism](http://www.tourism.lt/en/default.htm).

## Language [**Return to top**](#ch8)

The Lithuanian language is the official language of the Republic of
Lithuania. This ancient Indo-European language is the oldest of the
surviving Baltic tongues and is rich in dialects and regional accents.
Lithuanian is spoken by more than three million people in Lithuania and
by about a million people of Lithuanian heritage living in other
countries, especially Australia, Brazil, Belarus, Canada, Latvia,
Poland, Russia, and the United States.

Most Lithuanian adults speak Russian. Many Lithuanians, especially
younger ones, also speak English.

## Health [**Return to top**](#ch8)

Medical facilities are available throughout Lithuania, but medical
standards may vary, especially in rural areas. Private clinics are
service-friendly, but not always equipped for emergencies.

## Local Time, Business Hours, and Holidays [**Return to top**](#ch8)

**Local Time:** Central European Time +1, or seven hours ahead of the
U.S. East Coast

**Business Hours:** 8:00 -- 17:00

**2007 Holidays:**

Monday January 1 New Year's Day

Friday February 16 Lithuanian Independence Day

Monday February 19 President's Day

Monday March 12 Independence Statehood Day

Monday April 9 Easter Monday

Tuesday April 10 Easter Holiday

Tuesday May 1 International Labor Day

Monday June 25 Saint John\'s Day

Friday July 6 Mindaugas' Coronation Day

Wednesday August 15 Assumption Day

Thursday November 1 All Saint's Day

Tuesday December 25 Christmas Day

Wednesday December 26 Boxing Day

## Temporary Entry of Materials and Personal Belongings [**Return to top**](#ch8)

Visitors to Lithuania must make customs declarations of temporary entry
of goods and personal belongings. Customs may require travelers entering
the country for employment purposes to present an employment contract
when declaring temporary admission of goods. For more information on
customs procedures, please see Lithuania Customs' [information for
travelers](http://www.cust.lt/en/rubric?rubricID=188).

## Internet Resources [**Return to top**](#ch8)

Lithuanian Customs: <http://www.cust.lt/en/rubric?rubricID=188>

Lithuanian Ministry of Economy:
[http://www.ukmin.lt](http://www.ukmin.lt/)

Lideika, Petrauskas, Valiūnas and Partners\' \"Doing Business in
Lithuania:"

[http://www.lawin.lt/book](http://www.lawin.lt/book/)

Lithuania in Your Pocket:
[http://www.inyourpocket.com/lithuania/en](http://www.inyourpocket.com/lithuania/en/)

# Chapter 9: Contacts, Market Research, and Trade Events

-   [Contacts](#contacts-return-to-top)

-   [Market Research](#market-research-return-to-top)

-   [Trade Events](#trade-events-return-to-top)

## Contacts [**Return to top**](#chapter-9-contacts-market-research-and-trade-events)

Jonas Vasilevicius, Commercial Specialist

U.S. Embassy

Akmenu 6, 2001 Vilnius, Lithuania

Telephone: 370 5 266-5500

Fax: 370 5 2665510

Email: <vasileviciusj@state.gov>

Website: [http://www.usembassy.lt](http://www.usembassy.lt/);
[http://www.buyusa.gov](http://www.buyusa.gov/)

Lithuanian Embassy

2622 16th Street N.W. Washington D.C. 20009;

Telephone: 202-2345860;

Fax: 202-3280466.

Website: [http://www.ltembassyus.org](http://www.ltembassyus.org/)

Lithuanian Development Agency

Sv Jono str. 3, 2001 Vilnius, Lithuania;

Telephone: 370-5 2627438;

Fax: 370-5 2120160.

Website: [http://businesslithuania.com](http://www.lda.lt/)

Lithuanian Customs Department

Jaksto str. 1/25, LT-2600 Vilnius, Lithuania;

Telephone: 370-5 2126415;

Fax: 370-5 2124948.

Website: [http://www.cust.lt](http://www.cust.lt/)

State Competition and Consumer Protection Office

Vienuolio str. 8, LT-2600 Vilnius, Lithuania;

Telephone: 370-5 2126492;

Fax: 370-5 2126412.

Website: [http://www.konkuren.lt](http://www.konkuren.lt/)

Lithuanian Standardization Board:

Kosciuskos str. 30 LT-2600 Vilnius, Lithuania;

Telephone: 370-5 2126252;

Fax: 370-5 2126252.

Website: [http://www.lsd.lt](http://www.lsd.lt/)

National Stock Exchange of Lithuania

Ukmerges str. 41, LT- 2662 Vilnius, Lithuania;

Telephone: 370-5 2723611;

Fax: 370-5 2724894.

Website: [http://www.nse.lt](http://www.nse.lt/)

State Veterinary Service

Siesiku str. 19, LT- 2010 Vilnius, Lithuania;

Telephone: 370-5 2404361;

Fax: 370-5 2404362.

Website: [http://www.vet.lt](http://www.vet.lt/)

State Patent Bureau

Algirdo str. 31, LT-2025 Vilnius, Lithuania;

Telephone: 370-5 2133349;

Fax: 370-5 2133357.

Website:
[http://www.is.lt/vpb/liet/vpbhome.html](http://www.is.lt/vpb/liet/vpbhome.HTML)

U.S. Mission to the European Union

Foreign Commercial Service

Rue Zinner 13, B - 1000 Brussels, Belgium;

Fax: 32 2 513 1228;

Gwen B. Lyle -- Standards Attaché

Telephone: 32 2 508 2674

gwen.lyle@mail.doc.gov;

Sylvia Mohr -- Standards Specialist

Tel: 32 2 508 2675.

Website: [http://useu.usmission.gov](http://useu.usmission.gov/)

CEN -- European Committee for Standardization

Rue de Stassart 36, B -- 1050 Brussels, Belgium;

Fax: 32 2 550 08 19;

Telephone: 32 2 550 08 25 / 550 08 11.

Website: [http://www.cenorm.be](http://www.cenorm.be/)

CENELEC -- European Committee for Electrotechnical Standardization

Rue de Stassart 35, B -- 1050 Brussels, Belgium;

Telephone: 32 2 519 68 71;

Fax: 32 2 519 69 19.

Website: [http://www.cenelec.org](http://www.cenelec.org/)

ETSI - European Telecommunications Standards Institute

Route des Lucioles 650, F -- 06921 Sophia Antipolis Cedex, France;

Tel: 33 4 92 94 42 12;

Fax: 33 4 93 65 22 99.

Website: [http://www.etsi.org](http://www.etsi.org/)

European Commission

Enterprise Directorate - General

Rue de la Science 15, B -- 1040 Brussels, Belgium;

Mail: Office: SC15 02/09 B -- 1049 Brussels;

Telephone: 32 2 299 56 72;

Fax: 32 2 299 16 75.

Website:
[http://europa.eu.int/comm/enterprise/standards_policy](http://europa.eu.int/comm/enterprise/standards_policy/)

EFTA -- European Free Trade Association

Rue de Trèves 74, B -- 1040 Brussels;

Telephone: 32 2 286 17 41;

Fax: 32 2 286 17 42.

Website: [http://www.efta.int](http://www.efta.int/)

NORMAPME -- European Office of Crafts Trades and Small and Medium-Sized
Enterprises for Standardization

Rue Jacques de Lalaing 4, B -- 1040 Brussels, Belgium;

Telephone: 32 2 282 05 31;

Fax: 32 2 282 05 35.

Website: [http://www.normapme.com](http://www.normapme.com/)

ANEC - European Association for the Co-ordination of Consumer
Representation in Standardization

Avenue de Tervueren 36, Box 4, B -- 1040 Brussels, Belgium;

Telephone: 32 2 743 24 70;

Fax: 32 2 706 54 30.

Website: [http://www.anec.org](http://www.anec.org/)

ECOS -- European Environmental Citizens Organization for Standardization

Boulevard de Waterloo 34, B -- 1000 Brussels, Belgium;

Telephone: 32 2 289 10 93;

Fax: 32 2 289 10 99.

Website: [http://www.ecos.be](http://www.ecos.be/)

EOTA -- European Organization for Technical Approvals (for construction
products)

Avenue des Arts 40, B -- 1040 Brussels, Belgium;

Telephone: 32 2 502 69 00;

Fax: 32 2 502 38 14.

Email: <info@eota.be>

Website: http://www.eota.be

EOTC -- European Organization for Conformity Assessment

Rue de Stassart 36, B -- 1050 Brussels, Belgium;

Telephone: 32 2 502 40 40;

Fax: 32 2 502 42 39.

Website: [http://www.eotc.be](http://www.eotc.be/)

State Tax Inspection (Ministry of Finance)

Sermuksniu str. 6, LT-2695 Vilnius, Lithuania;

Telephone: 370-5 2620060;

Fax: 370-5 2621924.

Website: [http://www.vmi.lt](http://www.vmi.lt/)

State Property Fund

Vilniaus str. 16, LT-2600 Vilnius, Lithuania;

Telephone: 370-5 2684 902;

Fax: 370-5 2684901.

Website: [http://www.vtf.lt](http://www.vtf.lt/)

Court of Commercial Arbitration

Vokieciu str. 28/17, LT-01130 Vilnius, Lithuania

Tel: 370-5 2614517

Fax: 370-5 2122621

Website: [http://www.arbitrazas.lt](http://www.arbitrazas.lt/)

Association of Lithuanian Chambers of Commerce and Industry:

V. Kudirkos str. 18, LT-2600 Vilnius, Lithuania;

Telephone: 370-5 2122630;

Fax: 370-5 2122621.

Website: [http://www.chambers.lt](http://www.chambers.lt/)

American Chamber of Commerce:

Room 204, Lukiskiu str.5, 2600 Vilnius, Lithuania;

Telephone: 370-5 2611181;

Fax: 370-5 21226128.

Email: acc@post.omnitel.net

Website: [http://www.acc.lt](http://www.acc.lt/)

The Bank of Lithuania

Gedimino pr. 6, LT-2001 Vilnius, Lithuania;

Telephone: 370-5 2124008;

Fax: 370-5 26028124.

Website: [http://www.lbank.lt](http://www.lbank.lt/)

Export-Import Bank of the United States

International Business Development;

811 Vermont Ave, N.W., Washington, D.C. 20571;

Telephone: (202) 565-3913;

Fax: (202) 566-7524.

Website: [http://www.exim.gov](http://www.exim.gov/)

Overseas Private Investment Corporation (OPIC)

Central/Eastern Europe and Central Asia, Investment Development;

1100 New York Avenue, N.W., Washington D.C. 20527;

Telephone: (202) 336-8617;

Fax: (202) 408-5145.

Website: [http://www.opic.gov](http://www.opic.gov/)

U.S. Trade and Development Agency

Central, Eastern & Southern Europe;

Room 309 SA-16, Washington D.C. 20523-1602;

Telephone: (702) 875-4357;

Fax: (703) 875-4009.

Website: [http://www.tda.gov](http://www.tda.gov/)

Information on local trade fairs:

Litexpo Center;

Laisves pr.5, 2600 Vilnius, Lithuania;

Telephone: 370-5734789.

Website: [http://www.litexpo.lt](http://www.litexpo.lt/en)

## Market Research [**Return to top**](#chapter-9-contacts-market-research-and-trade-events)

To view market research reports produced by the U.S. Commercial Service,
please go to the [U.S. Government Export
Portal](http://www.export.gov/market_research/index.asp) and click on
Country and Industry Market Reports.

Please note that these reports are only available to U.S. citizens and
U.S. companies. Registration to the site is required, but is free of
charge.

## Trade Events [**Return to top**](#chapter-9-contacts-market-research-and-trade-events)

Please click on the links below for information on upcoming trade
events.

U.S. Government Export Portal:
<http://www.export.gov/trade_events/index.asp>

Litexpo Center: [http://www.litexpo.lt](http://www.litexpo.lt/en)

[Return to table of
contents](#doing-business-in-lithuania-a-country-commercial-guide-for-u.s.-companies)

[[]{#ch10 .anchor}Return to table of
contents](#doing-business-in-lithuania-a-country-commercial-guide-for-u.s.-companies)

# Chapter 10: Guide to Our Services

The U.S. Commercial Service offers customized solutions to help your
business enter and succeed in markets worldwide. Our global network of
trade specialists will work one-on-one with you through every step of
the exporting process, helping you to:

-   Target the best markets with our world-class research;

-   Promote your products and services to qualified buyers;

-   Meet the best distributors and agents for your products and
    services; and

-   Overcome potential challenges or trade barriers.

For more information on services the U.S. Commercial Service offers U.S.
businesses, please see the regional
[website](http://www.buyusa.gov/baltics/en/).

[Return to table of
contents](#doing-business-in-lithuania-a-country-commercial-guide-for-u.s.-companies)

U.S. exporters seeking general export information/assistance or
country-specific commercial information should consult with their
nearest **Export Assistance Center** or the **U.S. Department of
Commerce\'s Trade Information Center** at **(800) USA-TRADE**, or go to
the [U.S. Government Export Portal](http://www.export.gov/).

To the best of our knowledge, the information contained in this report
is accurate as of the date published. However, **The Department of
Commerce** does not take responsibility for actions readers may take
based on the information contained herein. Readers should always conduct
their own due diligence before entering into business ventures or other
commercial arrangements. **The Department of Commerce** can assist
companies in these endeavors.