RESTRICTED
WORLD TRADE WT/ACC/SPEC/LTU/6
7February 1997
ORGANIZATION(97-0435)
Original: English
ACCESSION OFLITHUANIA
Elements ofaDraft Report
Introduction
1. TheGovernment ofLithuania applied foraccession totheGeneral Agreement onTariffs and
Trade (GATT 1947) inJanuary 1994. Atitsmeeting on22-23 February 1994, theGATT 1947Council
ofRepresentativesestablishedaWorkingPartytoexaminetheapplicationoftheGovernmentofLithuania
toaccede totheGeneral Agreement under Article XXXIII oftheGeneral Agreement. Following the
conclusion oftheUruguay Round, Lithuania requested accession totheWorld Trade Organization
(WTO) under Article XIIoftheMarrakesh Agreement establishing theWorld Trade Organization.
Inpursuance oftheMinisterial Decision of14April 1994 onAcceptance ofandAccession tothe
Marrakesh Agreement Establishing theWorld Trade Organization andoftherelated decision of
31May1994ofthePreparatory Committee fortheWTO, theWorking Party examined theapplication
ofLithuania formembership intheWTO andagreed topursue themarket access negotiations ongoods
andservices. Furthermore, inaccordance withthedecision adopted bytheWTO General Council
on31January 1995, theexisting GATT 1947Accession Working Party wastransformed intoaWTO
Accession Working Party. Theterms ofreference andthemembership oftheWorking Party are
reproduced indocument WT/ACC/LTU/1/Rev. 3.
2. TheWorking Party meton10November 1995; 25-26 March and7October 1996; and......
under theChairmanship ofMr.Peter Witt(Germany).
Documentation Provided
3. TheWorking Party hadbefore it,toserve asabasis foritsdiscussions, aMemorandum on
theForeign Trade Régime ofLithuania (L/7551) andthequestions submitted byMembers ontheforeign
trade régime ofLithuania, together withthereplies thereto, andother information provided bythe
Lithuanian authorities (WT/ACC/LTU/2 andAddendum 1;WT/ACC/LTU/4; WT/ACC/LTU/5;WT/ACC/SPEC/LTU/6
Page2
WT/ACC/LTU/7 andAddendum 1;WT/ACC/LTU/9; WT/ACC/LTU/10; and...),including the
legislative textsandother documentation listed inAnnex I.
Introductory Statements
4. Inhisintroductory statement, therepresentative ofLithuania noted thathiscountry wassmall
andheavily dependent onforeign trade. Since restoration ofindependence in1990, thecentrally planned
system inforcehadbeeneffectively replaced byamarket-oriented economy. Lithuania hadestablished
anewbanking system anditsowncurrency andwasproceeding onfundamental economic reforms,
including adaptation oflegalandinstitutional measures, privatization, deregulation ofprices andtrade,
inclose cooperation withinternational institutions. However, economic transformation could only
besuccessful ifsupported byintegration intotheworld economy andtheinternational trading system
based ontheprinciples oftheWTO.
5. Lithuania 'sforeign trade patterns hadchanged significantly since 1990. Theshare oftrade
withcountries intheCommonwealth ofIndependent States, over90percentin1991, haddeclined
toaround 40percentin1995while tradeflows withother countries hadincreased. Lithuania 'soverall
balance ofpayments wasinsurplus despite atrade deficit. Lithuania hadresisted protectionism in
aperiod ofdifficult economic transition. Theforeign traderégime would beliberalized further. Several
trade agreements hadbeen signed, reducing barriers totrade, andother agreements were under
negotiation. Accession totheWTO wasamatter ofhighest priority asLithuania sought integration
intotheworldeconomyonthebasisofinternationallyrecognizedrules,providingastableandpredictable
environment andaprecise legalframework fortradeamong nations. Lithuania 'saccession would also
havepositive repercussions foritstrading partners. Lithuania wasready tonegotiate substantive market
access concessions andcommitments ongoods andservices, adopt therulesandprinciples incorporated
intheWTO agreements, andaccede onthebasisofequal rights andobligations, expecting fairtreatment
fromWTO members. Lithuania wasademocracy withafreemarket economy taking concrete steps
tobecome anactive member oftheinternational community.
6. Intheiropening remarks many members oftheWorking Party welcomed therequest from
Lithuania toaccede totheWTO. Lithuania 'sintegration intotheworld economy andtrade onthe
basis ofmultilaterally agreed principles andrules wasseenasanimportant element underpinning
economic andinstitutional reforms inLithuania. Several members appreciated Lithuania 'sreadiness
toexpedite thenegotiations onitsterms ofaccession andlooked forward tothetimely conclusion of
thetasks before theWorking Party.WT/ACC/SPEC/LTU/6
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7. TheWorking Party reviewed theeconomic policies andforeign traderégime ofLithuania and
thepossible terms ofadraftProtocol ofAccession totheWTO. Theviews expressed bymembers
oftheWorking Party onthevarious aspects ofLithuania 'sforeign trade régime [,andontheterms
andconditions ofLithuania 'saccession totheWTO] aresummarized below inparagraphs ....to.....
ECONOMIC POLICIES
Monetary andFiscal Policy
8. Itwasnoted thatrecent changes hadbeenintroduced inthetaxrégime andfurther details were
requested inthisregard. Lithuania wasalsoasked toprovide additional information ontherightof
localCouncils tolevytaxes andduties, inparticular whether suchtaxes affected imported goods.
9. TherepresentativeofLithuaniasaidthatthetaxsystemconsistedofcorporateprofittax;personal
income tax;value added tax;excises; taxesonnatural resources, oilandgas;pollution tax;customs
duties; ataxonfixedproperty; roadtax;landtaxes; stamp taxonactivity (forexample, forobtaining
licences); andother taxes (inheritance tax,consular fees, etc.). Thetaxonpollution encouraged
investmentincleaningtechnology.AsfromJuly1995(GovernmentResolutionNo.1026),thecorporate
profit taxwasreduced forcertain sectors, notably those related toproduction ofmedicines andmedical
services, agricultural machinery, waste processing anddisposal, newforms ofenergy, transportation,
construction andtelecommunications. Taxes onfixed property andtheroadtaxwere introduced in
1995. Theroadtaxwaslevied onenterprise revenue (0-1percent) except forbanks which paida
percentage ofthemargin earned. Municipalities werenotentitled totaxitems subject totaxation at
thenational level. Local authorities thuscould notapply duties onimported goods. More generally,
therepresentative ofLithuania recalled thatthedirection ofmacro-economic policies during 1995 to
1997 waslaiddown inaMemorandum ofStateEconomic Policy oftheRepublic ofLithuania, acopy
ofwhich hadbeenprovided totheWorking Party.
Foreign Exchange andPayments
10. Some members oftheWorking Party requested information onLithuania 'strade balance and
foreign exchange policy.
11. TherepresentativeofLithuaniainformedtheWorkingPartythathiscountryhadrecordeddeficits
initsmerchandise tradeequal toUS$324 million in1994, US$376 million in1995andUS$678 millionWT/ACC/SPEC/LTU/6
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in1996 (January -October). Thenational currency -thelitas-waspegged totheUSdollar
(Ltl4=US$1) inagreement withtheIMF; noplans existed toabandon thefixedexchange ratepolicy.
Therepresentative ofLithuania further stated thatfulllitasconvertibility aswellascurrent account
convertibility wasintroduced on3May1994following theGovernment ofLithuania 'sacceptance of
Article VIIIoftheArticles ofAgreement oftheIMF.
Investment Régime
12. Some members oftheWorking Party noted thatLithuania appeared torestrict investment in
certain sectors. Lithuania wasasked toenumerate thesectors subject torestriction andclarify whether
Lithuania applied national treatment toforeign investment.
13. Therepresentative ofLithuania saidthatcertain activities were licensed inaccordance with
theLawonAmendments andSupplements oftheLawonEnterprises of5July1995. [Thesectors
currently subject tolicensing orreserved forparticular enterprises arelisted inTable 1.]Inaddition,
theestablishment ofacommercial bankrequired alicence issued bytheBank ofLithuania. Foreign
anddomestic investment wasinprinciple treated equally, except thatforeign investment wasprohibited
inareas related tonational security anddefence, narcotic andpoisonous substances, andtheorganizing
oflotteries inaccordance withtheLawonForeign Capital Investments intheRepublic ofLithuania.
Inmid-June 1996, Parliament (theSeimas) hadapproved anamendment totheConstitution allowing
foreigners topurchase certain types ofland(non-agricultural plotsrequired fortheconstruction and
operation ofbuildings andfacilities necessary fortheirdirect activity).
14. TheLawonForeign Capital Investments stipulated thattaxation offoreign enterprises beno
lessfavourable thantherulesapplied todomestic natural andlegalpersons. Lithuania offered certain
taxholidays. Enterprises established after 1August 1995, withforeign investment ofminimum
US$2 million representing 30percentormore oftheauthorized capital stock oftheenterprise, were
exempt from profit (income) taxforthefirstthree years andsubject toa50percenttaxreduction
forthefollowing threeyears, starting fromthedaythefirstprofit wasachieved. Domestic andforeign
small enterprises (number ofemployees notexceeding 50andannual salesofnomorethan500,000 litas)
received more generous taxreductions; 70percentforthefirsttwoyears aftertheirestablishment
and50percentforeachyearthereafter.WT/ACC/SPEC/LTU/6
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State Ownership andPrivatization
15. Some members oftheWorking Party requested information onprivatization inLithuania, in
particular onprivatization inagriculture.
16. TherepresentativeofLithuaniaexplainedthatprivatizationhadinitiallybeenimplementedthrough
investment vouchers which could beusedtopurchase Stateproperty, residential housing, agricultural
enterprises andrepurchasing ofland. AnewLawonPrivatization ofState-Owned andMunicipal
PropertyhadenteredintoforceinSeptember1995,providingforprivatizationthroughpublicsubscription
ofshares; public auction; public tender; salethrough direct negotiation; joint-ventures withState
property; capital lease; andthecreation ofaState Privatization Agency. Former State trading
enterprises wereunder thejurisdiction oftheMinistry ofIndustry andTrade; of59entities onlyone
-managing State reserves -wasnotintended forprivatization byyear2000.
17. Privatization inagriculture, including therestoration oflandtoformer owners, hadproceeded
despite certain legal problems (only theState andnatural persons could ownland), uneconomic
partitioning oflandandother mainassets, andlackofcapital forfamily farming. Some 287foodand
agroservice enterprises hadpassed thefirststage ofprivatization in1993; thesecond stage -selling
shares toagricultural producers -wasnearly completed for235ofthese enterprises.
18. Assets soldbypublic auction wereprivatized intheirentirety andtheStategenerally didnot
retainownershipinprivatizedenterprises.Farmershadbeenofferedfavourabletermsintheprivatization
ofsome processing industries (meat, grain, dairies andsugar factories). The1995Lawstipulated that
foreign anddomestic investors would participate intheprivatization process onanequal basis.
19. Asof1January 1997, Lithuania hadwholly orpartially privatized 99.7percentofState-owned
farms (notincluding agricultural processing enterprises). TheStateretained some shares insome farms
untiltheywerefullyprivatized -thisinassociation withtheirtransformation intojointstock companies
inthefirststage ofprivatization. Excluded from thisprocess ofprivatization theState owned
(i)19experimental farms atresearch institutions ofAgricultural science studies; (ii)54teaching farms
atAgriculture schools; and(iii)8farms ofpure-strain enterprises. Asofthesame date, Lithuania
hadmade significant progress intheprivatization of287agro-processing (meat, milk, grain, crop
selection etc.)andagro-service enterprises thatwereidentified forprivatization andexpected tocomplete
theprocess in1997. Thegeneral policy inthisareawastoofferpreferential bidding terms toagricultural
producers. Inmost sectors 50percentandmore oftheassets tobeprivatized hadbeenprivatized;WT/ACC/SPEC/LTU/6
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sugar refining wasoneexception where theprivatization hadnotproceeded asquickly. TheStatealso
retained some shares insome enterprises (30-90 percent)untiltheywerefullyprivatized inconnection
withtheirtransformation intojoint-stock companies inthefirststage ofprivatization. Lithuania had
alsomade significant progress inprivatizing industrial enterprises. Theprocess hadbeengiven new
impetus byarecent decision toallow privatization inindustrial andnon-agricultural service sectors
totakeplace onacash(rather thanvoucher) basis andtoalsoallow theparticipation offoreigners.
Asof1January1997,theGovernmentestimatedthatapproximately88percentoftheindustrial(goods)
enterprises and97percentoftheservices enterprises identified forprivatization, hadbeenprivatized.
TheStateretained some shares intheenterprises untiltheywerefullyprivatized -thisisinassociation
withtheirtransformation intojointstock companies asthefirststage ofprivatization. However, as
partofthenewplans toprivatize onacashbasistheStatelooked forward toturning overthese shares
toqualified bidders. Lithuania hoped tocomplete itsstrategy planforfurther privatization inthe
industrialandservicessectorsinthefirstquarterof1997,whichwouldincludelargeenterprisesformerly
notidentified forprivatization.
20. Therepresentative ofLithuania saidthatLithuania agreed tocontinue toprovide information
onaperiodic basis ondevelopments initsprogramme ofprivatization afteraccession along thelines
ofthatprovided totheWorking Party during theaccession process, andonother issues related toits
economic reforms asrelevant toitsobligations under theWTO.
Pricing Policies
21. Some members oftheWorking Party noted thatcertain goods andservices remained subject
toprice controls andrequested details andplans regarding further deregulation ofprices. Lithuania
wasasked tolisttheproducts subject toprice controls andinclude information onthelegalbasis for
thesecontrols, thereasons forthese controls andtheconditions under which suchorextended controls
might beapplied inthefuture.
22. Therepresentative ofLithuania saidthatpricecontrols hadbeenrelaxed gradually inLithuania.
Controls onmark-ups onfoodstuffs hadceased asof1April 1995, thusprofit margins werenolonger
limited attheprocessor orretail level. However, price controls existed foranumber ofgoods and
services supplied byso-called natural monopolies (whether ornotState-owned), i.e.thesupply ofnatural
gas;production anddistribution ofelectricity andheating; water andsewerage; telecommunication
services supplied through theState telecommunication company "Lietuvos Telekomas" [details in
document WT/ACC/LTU/7, p.10]; postal services andpassenger transportation (only State-ownedWT/ACC/SPEC/LTU/6
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enterprises); radio andtelevision services ofStatechannels; public medical services; state-owned land,
wood androunded timber; medicinal herbs andsome medicines. Further price liberalization in
transportationandtelecommunicationwouldbelinkedtoincreasingcompetitionresultingfromeconomic
restructuring andprivatization. Heconfirmed thatLithuanian industries didnotreceive electricity
andgasatsubsidized prices, butprice controls would remain onresidential useofelectricity, natural
gasandheating tosupport low-income households. Therepresentative ofLithuania saidthattheprice
control onState-owned landwasconnected withtherestoration ofprivate landownership aspartof
agricultural reform. Hefurther stated thatpricecontrol onState-owned landwould beabolished after
therestoration ofprivate landownership inthecourse oftheimplementation ofagricultural reform.
23. Therepresentative ofLithuania confirmed thatprices ofgoods andservices inevery sector,
withtheexceptions listed inparagraph 22,were determined freely bymarket forces. Hefurther
confirmed thatintheapplication ofprice controls noworinthefuture, Lithuania would apply such
measures inaWTO consistent fashion, andtakeaccount oftheinterests ofexporting WTO members
asprovided forinArticle III.9oftheGATT 1994.
Competition Policy
24. Some members oftheWorking Party requested information ontheapplication oftheLawon
Competition inLithuania. Noting thatmany enterprises dominated thedomestic market forcertain
goods andservices andthatthese companies were subjected tosupervision andcontrol byState
institutions, Lithuania wasasked toprovide alistoftheenterprises concerned totheWorking Party.
25. Therepresentative ofLithuania replied thattheLawonCompetition hadentered intoforce
on1November 1992andwasenforced through theStateCompetition andConsumer Protection Office.
TheCompetitionCouncil(thedecision-makingbodyoftheOffice)hadapprovedfourby-lawsconcerning
theabuse ofdominant position, agreements andconcerted activities restricting competition, control
ofmergers, andprohibition ofunfair activities. TheLawonCompetition wasapplied toallenterprises
irrespective ofownership orthekindofeconomic activity. Some provisions oftheLawonCompetition
were notapplied inexcluded sectors, which werecovered under separate legislation. Thus, certain
exemptions intheLawonCompetition wereallowed forthesupply ofenergy, postal services, railways,
production andtrade inalcohol, sugar, telecommunications andairline services.
26. TheStateCompetition andConsumer Protection Office hadfined 20enterprises forabuse of
dominant position between 1992 and1995. Dominant enterprises werethose controlling 40percentWT/ACC/SPEC/LTU/6
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ormore oftherelevant domestic market; theOffice hadincluded enterprises withmarket shares
exceeding 60percentinalistofdominant suppliers. InJanuary 1996, theCompetition Council listed
sixenterprises holding from 60to90percentoftheirrespective markets andhaving abused their
dominant positions bycharging unreasonably highprices during 1994-1995. Thesixenterprises were
obliged tonotify price changes inadvance totheStateCompetition andConsumer Protection Office.
Thelistofdominant enterprises would bediscontinued, asfuture abuse ofdominant position would
beinvestigated case-by-case.
FRAMEWORK FOR MAKING AND ENFORCING POLICIES
27. Therepresentative ofLithuania saidthatthestructure ofcustoms tariffs wasregulated bythe
Government; ratescould bechanged byGovernment decision based onproposals byMinistries, taking
account ofLithuania 'sinternational obligations andcommitments. Headded thatlocalgovernments
acted freely andindependently within thelimits oftheircompetence, established bytheConstitution
andlaws. Local Councils maintained theright, within established limits andinaccordance with
procedures laiddown bylaw,toestablish localduesandlevytaxes andduties.
POLICIES AFFECTING TRADE INGOODS
Trading Rights
28. Therepresentative ofLithuania noted thatTable 1"Licensing ofbusiness activities" listed the
universe ofbusiness activities subject tolicensing inLithuania. Some activities included production
ortradeingoods.HeconfirmedthatLithuaniamaintainedthesamecriteriaandproceduresforreviewing
applications forlicences toengage intrade orproduction ofgoods, whether theapplicants intended
todealindomestic orimported goods, oracombination thereof, withoneexception. Theexception
concerned theproduction ofmead -atraditional Lithuanian alcoholic beverage -forwhich onlyone
domestic company wasgranted alicence. Thecompany could import inputs fortheproduction of
mead without restrictions. However, thelicence allowed thecompany toproduce abeverage with
higher alcohol content thancould otherwise beimported andsoldinthedomestic market.
Market Access Negotiations
[Lithuania submitted anInitial Offer forMarket Access Negotiations onGoods indocument
WT/ACC/SPEC/LTU/3 of14October 1996.]WT/ACC/SPEC/LTU/6
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[Tobecompleted]
(1) Import Regulation
Customs Tariff
29. Some members oftheWorking Party noted thatLithuania hadintroduced anewCustoms Code,
which governed awidearray ofcustoms matters, in1996. Ontheunderstanding thatthelawcontained
anumber ofprovisions ofrelevance toLithuania 'saccession totheWTO, Lithuania wasasked tosubmit
acopytotheWorking Party forreview byinterested Members.
30. Therepresentative ofLithuania saidthattheSeimas (Parliament) approved anewCustoms
Code on18April 1996, replacing theLawonCustoms andcertain provisions oftheLawonCustoms
Tariff andother legislation. TheCode governed areas suchascustoms procedures, customs tariffs,
export/import operations, transit, rulesoforigin andcustoms valuation. ThenewCustoms Code would
enter intoforce on1January 1998.
31. Amember asked Lithuania whytheCode would notcome intoforce until1998 andsought
fullimplementation ofthislegislation nolaterthanthedateofLithuania 'saccession totheWTO.
32. Therepresentative ofLithuania saidthatbefore thenewCustoms Code entered intoforce a
number oflawswhich wereincontradiction withtheprovisions oftheCode would needtobeamended
byParliament andimplementing regulations fortheCode would needtobeprepared andadopted by
theGovernment.
Ordinary Customs Duties
33. Questions bymembers oftheWorking Party concerned theapplication ofcustoms duties in
Lithuania, recent changes intariff ratesandtheintroduction ofacustoms classification based onthe
Harmonized System.
34. TherepresentativeofLithuaniaconfirmedthattheConventionontheHarmonizedSystementered
intoforce inLithuania on1January 1995. Thestructure ofcustoms tariffs wasregulated bythe
Government; ratescould bechanged byGovernment decision based onproposals byMinistries, taking
account ofLithuania 'sinternational obligations andcommitments. Tariffs hadaccordingly beenreducedWT/ACC/SPEC/LTU/6
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onmajor foodproducts (milk anddairy products, butter, eggs, sausages andsugar) inSeptember 1995.
Theapplied customs tariff wasprovided totheWorking Party (thecurrent version isreproduced in
documentWT/ACC/SPEC/LTU/4).AnewdraftLawonCustomsTariffsstipulatedthatratesofcustoms
duties andother taxes would bedetermined byParliament.
35. Tariff rateswereadvalorem except forspecific (mixed) duties onalcohol, tobacco, sugar and
usedmotor vehicles. Specific duties onmeatanddairy products wereeliminated inFebruary 1995.
Other Duties andCharges Levied onImports butnotonDomestic Production
36. Therepresentative ofLithuania stated thatLithuania would bindallduties andcharges, other
thanordinary customs duties listed inthegoods schedule annexed toitsProtocol ofAccession under
Article II.1(b) oftheGATT 1994, atzeroonallproducts.
Tariff Rate Quotas, Tariff Exemptions
37. Some members oftheWorking Party noted thatLithuania usedtariff quotas toprovide for
temporary import relief forgoods inshort supply. Lithuania wasasked tospecify thegoods subject
totariff quotas andtoexplain theoperation ofthequota system. Amember requested Lithuania to
clarify therelationship, ifany,between thegeneral tariff-rate quotas andthepreferential tariff-rate
quotas afforded totheEU.Lithuania should alsoprovide ajustification forthesystem, someinformation
ontheportion ofimported products affected, andoutline plans forthedisposition ofthesystem after
Lithuania 'saccession totheWTO.
38. Therepresentative ofLithuania replied thattariff quotas were opened under Government
Resolution No.653(8May1995), implementing theLawonStateRegulation ofEconomic Relations
inAgriculture (22December 1994). [Thelistofproducts currently subject togeneral tariff quotas
duetoshort supply isreproduced inTable 2.]Some ofthetariffquotas foragricultural products were
allocated through public tenders announced intheofficial gazette "Valstybes zinios". Enterprises
requesting quotas orparticipation intenders submitted application forms totheresponsible Ministry.
Tariff quotas forimports ofethyl alcohol fortechnical usesweregranted automatically tocompanies
substantiating their needs. Tariff quotas forrawmaterials foralcoholic beverages were granted
automatically tosixauthorized Stateproducers, andalsotootherenterprises which hadobtained licences
fromtheStateTobacco andAlcohol Control Agency toimport alcohol andproduce alcoholic beverages.
Entitlements totariff quotas forirregular transparent glass bottles wasautomatic upon presentationWT/ACC/SPEC/LTU/6
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oftheapplication andthesalescontract. Special ships furniture wasimported byaState shipyard;
domestic production offurniture wasincreasing andthetariff quota wasexpected tobeabolished in
1997. Domestic sugar processors wererequired toexhaust thesupply ofdomestic rawsugar before
being allowed toimport raworwhite (refined) sugar under tariff quotas.
39. Therepresentative ofLithuania saidthattariffquotas inthecontext ofpreferential tradewere
onlyapplied towards theEU;therelevant implementing regulation (Government Resolution No.205
of8February 1995) hadbeenprovided totheWorking Party.
FeesandCharges forServices Rendered
40. Amember asked Lithuania toprovide information onanyfeesandcharges onimportation
related tothecosts ofservices rendered.
Application ofInternal Taxes toImports
41. Some members oftheWorking Party asked Lithuania toenumerate theproducts subject to
excise taxes, comment ontheuseofspecific ratesandconfirm whether imported anddomestic products
weretreated equally. Amember noted thatexcise taxesonimported anddomestic beerwerenotequal.
Moreover, imported cigarettes attracted thehighest excise taxrate,while taxesondomestically produced
cigarettes weredifferentiated according toquality. Heasked Lithuania toexplain howthistreatment
could beconsistent withArticle IIIoftheGATT 1994. Specific questions concerning thetaxation
ofalcohol andcigarettes alsoreferred tothelinkbetween excise taxes andcustoms duties.
42. Therepresentative ofLithuania provided theinformation onproduct-specific excise taxes
[reproduced inTable 3].Rates wereadvalorem, insome cases specific minima hadbeenestablished
(inlitasperunit). Lithuania hadnoplans toconvert specific amounts intoadvalorem ratessince large
price differentials existed between domestic andimported goods. Ondomestic products, excise taxes
were levied ontheselling price exclusive ofVAT; thetaxbaseforimports wasthecustoms value
inclusive ofcustoms duties. Importers ofalcoholic beverages paidanannual stamp taxfortheright
(licence) toimport. Thelevies hadbeenintroduced tocontrol theselection ofimporters andavoid
importation ofcounterfeit orlow-quality products. Excise taxes were differentiated forcertain
domestically-producedandimportedwine,beerandcigarettesinaccordancewithGovernmentResolution
No.582of17May1996. Theexcise taxoncigarettes wasdifferentiated according toquality.WT/ACC/SPEC/LTU/6
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43. SomemembersoftheWorkingPartyaskedabouttheapplicationofvalueaddedtaxinLithuania,
including thebasisfortaxation ofimported products. Amember asked Lithuania toclarify thetreatment
ofimported likeproducts inthelightofArticle IIIoftheGATT 1994, noting thatLithuania applied
areduced rateofVAT tosome agricultural products ofLithuanian origin.
44. Therepresentative ofLithuania saidthatvalue added taxof18percentwascharged ongoods
andservices. Goods imported intobonded warehouses andallexports werezerorated, andanumber
ofgoods andservices wereexempt fromVAT(listed intheMemorandum). Provisions regarding VAT
werechanged in1995and1996; atemporary rateof9percentandexemptions fromVAT forsome
products wereapplied until1January 1997. Thetaxbasefortheimposition ofVAT included excise
taxes, ifany,andcustoms duties onimported products.
45. Therepresentative ofLithuania saidthat,fromthedateofaccession, Lithuania would apply
national treatment withregard totherateofalltheinternal taxes andcharges onbothimports and
domestically-produced products.
Quantitative Import Restrictions, including Prohibitions, Quotas andLicensing Systems
46. Some members oftheWorking Party noted thatcertain business activities were subject to
licensing inLithuania andrequested alistoftradeactivities subject tolicensing. Some members noted
thatthelistappeared toencompass sectors where licences were granted automatically onanon-
discriminatory basisaswellasbusiness activities where theStatelimited orrationed therighttotrade.
Thelatter practice would engage anumber ofWTO issues, notably regarding trademonopoly andState
trading, which Lithuania wasrequested toaddress. Lithuania wasalsoasked toenumerate other non-
tariffmeasures,inparticularquantitativerestrictions.Specificquestionswereraisedregardingregulations
affecting imports oftobacco andalcohol, inparticular thecriteria applied intheselection oflicence
holders andtowhatextent Lithuania would allow domestic production ofgoods which wereprohibited
toimport. Amember sought anundertaking fromLithuania thatanyquantitative import restrictions
inconsistent withArticle XIoftheGATT 1994would beeliminated onaccession. Lithuania wasalso
asked toprovide information onalicensing regulation forfoodstuffs andfoodadditives.
Quantitative Restrictions
47. Therepresentative ofLithuania stated thatLithuania didnotmaintain import prohibitions other
thanabanontheimport ofsnuff andchewing tobacco (HS2403.99.10.0), which wasadministeredWT/ACC/SPEC/LTU/6
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inconjunction withabanondomestic production ofthesame products (justified under Article XX(b)
oftheGATT 1994). Lithuania didnotmaintain anyimport quotas.
Import Licensing Procedures
48. Therepresentative ofLithuania stated thatLithuania didnotmaintain anyimport licensing
restrictions other thanforthefollowing goods:
-narcotics andother controlled substances (HScodes 1211; 1301; 1302; 2905; 2918; 2921;
2922; 2924; 2925; 2926; 2932; 2933; 2934; 2939; 2914.30.10; 2924.29.50; 2932.90.75;
2932.90.77; 2939.40.10; 2939.40.30; 2939.60.10; 2939.60.30; 2939.60.50; 2939.90.71) -
justified under Article XX(b);
-goods andloadsofdualpurpose (civilandmilitary), means ofdefence, chemical andbiological
materials which canbeusedintheproduction ofchemical andbacteriological weapons ofmass
destruction; nuclear missiles, equipment andtechnologies; andgoods andtechnologies used
intheproduction ofmissiles -justified under Article XXI;
-secret loads (HScodes 2844.50.00; 3601.00.00; 3602.00.00; 3603; 3604.90.00; ex3704;
ex3705; ex3706; 4905; 4906.00.00; 4907; ex4911.99.00; 8401; ex8517; ex8518; ex8520;
ex8521; ex8524; ex8525; 8526; ex8527; ex8528; 8529.10; ex8531; 8710.00.00;
8802.11.90; 8802.12.90; ex8802.20.90; ex8802.30.90; ex8802.40.90; 8906.00.10; ex90;
ex93) -justified under Article XXI;
-dangerous loads (UNlistofgoods -justified under Article XXI);
-usedtires(HS4012.20.90) andelectric fishing tackle (HS8543.80.80.0) -justified under
Article XXforreasons ofenvironmental protection.
49. InformationonimportlicensingproceduresaccordingtotheformatapplicabletoWTOmembers
wasprovided totheWorking Party indocument WT/ACC/LTU/7/Add.1. Licensing ofcommercial
activity, including importation, wasapplied toproducts containing alcohol; tobacco andtobacco
products; oilproducts; narcotics andpoisonous substances; chemical materials harmful tothe
environment; biological materials forplantprotection; andspecial foodstuffs andfoodadditives (for
babies, children, sportsmen, diabetics anddietetic nutrition). Trade inoilproducts (petrol, diesel gas,WT/ACC/SPEC/LTU/6
Page14
fueloilandlubricants) waslicensed toenforce uniform conditions forallcompanies involved in
importation. Headded thatLithuania 'ssystem oflicensing certain areas ofactivity forthemostpart
didnotoperate inatrade-restrictive fashion.
50. Amember considered Lithuania 'srestrictions ontrade inalcohol equivalent toStatetrading.
Adistribution monopoly maintained bytheStatecould alsodistort import prices. Thismember asked
Lithuania toprovide thecriteria upon which licensing system foralcoholic beverages werebased and
explain howLithuania 'srestrictive import system could beconsistent withWTO rules.
51. Therepresentative ofLithuania saidthatLithuania hadestablished aStateTobacco andAlcohol
Control Agency which interaliaissued licences. Alcohol andtobacco products were licensed to
strengthen control overimports andreinforce thecollection ofexcise taxes. TheAgency issued licences
forwholesale trade inalcoholic beverages while retail traders obtained authorization frommunicipal
authorities; inall,about 12,000 wholesale andretail licences hadbeenissued. TheLawonAlcohol
Control authorized theintroduction ofproduction andimport quotas forcertain alcohol products should
thenumber ofpatients suffering from alcoholic psychosis exceed levels established bytheMinistry
ofHealth. However, theseprovisions hadnotbeenapplied thusfar.Thelegalbasishadbeenestablished
foraStatemonopolyontheproductionofhigh-alcoholbeverages(alcoholcontentexceeding22percent);
toensure high-quality imports onlyproducts from alistofrecognized manufacturers wereaccepted.
TheLawonAlcohol Control limited thenumber oflicensed importers ofalcoholic beverages, other
thanbeer, totenperyear, andtheGovernment maintained some discretion indeciding thetypes of
alcoholic beverages tobeimported bythelicence holders. Thenumber oflicensed beerimporters
wasnotlimited.Newcriteriaforobtainingimportlicencesforalcoholenteredintoforceon6June1996.
Thelicences wereawarded through public tender andformer licence holders would needtoreapply.
Therepresentative ofLithuania saidthatLithuania considered itsrestrictions ontrade inalcoholic
beverages asmeasures toprotect human lifeandhealth withcould bejustified under Article XXof
theGATT 1994.
52. Therepresentative ofLithuania stated thatLithuania didnotmaintain anyother non-tariff
measures, except thatinconnection withthelimitation ofthenumber oflicenses forimport ofalcoholic
beverages theGovernment maintained some discretion indeciding whattypes ofalcoholic beverages
withalcohol content of22percentormore maybeimported bythelicense holders -justified under
Article XX(b) ofGATT 1994.WT/ACC/SPEC/LTU/6
Page15
53. Therepresentative ofLithuania saidthatLithuania willobserve WTO obligations relevant to
quantitative restrictions onimports andimport licensing procedures.
Other Restrictions
54. Amember encouraged Lithuania nottoexpand theuseofitsminimum pricesystem, reminding
Lithuania thatboththeWTO Agreements onAgriculture andCustoms Valuation prohibited theuse
ofminimum import prices orreference prices. Thismember sought acommitment from Lithuania
thatitwould eliminate anyimport reference prices inplace atthetimeofaccession, andthatsuch
measures would notbereintroduced except inaccordance withWTO Agreements.
55. Therepresentative ofLithuania saidthatLithuania currently applied import reference prices
onlyforoilproducts tocombat customs fraud. Lithuania would eliminate anyimport reference prices
inplace atthetimeofaccession andwould notreintroduce suchmeasures except inaccordance with
WTO provisions.
Customs Valuation
56. Lithuania wasasked todescribe ingeneral terms itsrules regarding customs valuation and
tocompletetheQuestionnaireapplicabletoWTOmembers.NotingastatementbyLithuaniathatexisting
legislation didnotincorporate allprovisions oftheGATT 1994 Agreement, Lithuania wasrequested
toexplain which provisions were missing anddetail plans fortheintroduction ofthese provisions.
Some members oftheWorking Party noted thatGovernment Resolution No.281of28February 1995
appeared toauthorize reference prices onimports.
57. InformationoncustomsvaluationproceduresintherequiredformatwasprovidedtotheWorking
Party indocument WT/ACC/LTU/7/Add.1 (Information onImplementation andAdministration of
theCustoms Valuation Agreement). Therepresentative ofLithuania saidthatthegeneral principles
regarding customs valuation werelaiddown inArticle 10oftheLawonCustoms Tariffs (1993) and
implemented through Government Resolution No.449of16June1993. Thislegislation didnotcontain
alltheprovisions oftheGATT 1994Agreement onImplementation ofArticle VII.However, thenew
Customs Code, expected toenter intoforce on1January 1998, repeated verbatim theprovisions on
customs valuation oftheGATT 1994Agreement. Theimplementing regulations ofthenewCustoms
Code would bemodelled ontheregulations oftheEuropean Communities.WT/ACC/SPEC/LTU/6
Page16
58. Therepresentative ofLithuania confirmed thatGovernment Resolution No.281provided de
jurethepossibility toapply reference prices, butadded thattheprovisions hadnotbeenused. On
25June1996, Lithuania hadapproved Government Resolution No.751on"Customs Assessment of
Prices forImported Goods". According tothisResolution, Ministries responsible fortrade issues
established aspecial price list("price-in-checking" system), tobereviewed every three months, for
certain imported goods tofightcustoms fraud. Prices inthespecial listwereutilized intheassessment
ofduties andtaxes when importers wereunable tosubstantiate declarations ofalower customs value,
ortoprovide information toallow theother methods ofcustoms valuation (non-transaction value) to
beused. TheResolution provided oneexception -oilproducts weresubject tominimum import prices.
Theestablished order ofcustoms valuation wasfollowed forgoods notincluded inthespecial list.
59. Amember expressed concern about the"price-in-checking" system andasked Lithuania to
explain indetail whythesystem would notconstitute aminimum pricescheme, adding thatthe"price-in-
checking" system should notbeinplace afterLithuania 'saccession totheWTO.
Other Customs Formalities
60. Lithuania wasasked todescribe plans toreduce delays incustoms clearance ofgoods, including
work tosimplify andimprove therelevant procedures. Amember oftheWorking Party noted common
regulations regarding origin fortheapplication offreetrade agreements andinquired about the
determination ofrules oforigin forcustoms purposes.
61. Therepresentative ofLithuania replied thatLithuania followed thework oftheWorld Customs
Organization andtheWTO regarding aharmonization programme fornon-preferential rulesoforigin.
Inthemeantime,LithuaniawastakingintoaccountandimplementingtheresultsoftheWTOnegotiations
tomaintain atransparent system fornon-preferential rulesoforigin; toadminister theserulesoforigin
inaconsistent uniform, impartial andreasonable manner; andtobasetheserulesoforigin onapositive
standard. Chapter VofthenewCustoms Code, which wasscheduled toenter intoforce on
1January 1998, provided theframework fortheapplication ofnon-preferential rulesoforigin (acopy
oftheCustoms Code hadbeendeposited withtheWTO Secretariat forreview byWTO Members).
Those provisions stated interaliathattheoriginating status ofaparticular goodwaseither thecountry
where thegood hadbeen wholly obtained or,when more thanonecountry wasconcerned inits
production, thecountry where thelastsubstantial transformation hadbeencarried out.WT/ACC/SPEC/LTU/6
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62. ThenewCustoms Code would alsoprovide theframework fortheapplication ofpreferential
rules oforigin. Rules oforigin were inplace inthecontext ofthefreetrade agreements withthe
European Union, EFTA, Estonia andLatvia. Theorigin ofgoods wasdetermined inaccordance with
listrules applied forallproducts. Declarations ofpreferential origin, accompanied byastatement
ofanindependent expert, were made bythesuppliers ofmaterials orproducts inaccordance with
Government Resolution No.110of24February 1993.
63. Simplified procedures hadbeenestablished intheappropriate Protocols ontheRules ofOrigin
intheFreeTrade Agreements concluded byLithuania andwereusedwhen EUR.1 movement certificates
hadbeenissued byapproved exporters. Procedures hadalsobeenstreamlined forimports ofsmall
consignments andfrequent traders. The1996Customs Code contained appropriate provisions regarding
theapplication ofsimplified procedures. Further workonsimplification ofexisting procedures included
thecreation ofaCustoms Information System based ontheASYCUDA package ofUNCTAD and
theestablishment ofaudit units atregional customs houses.
Preshipment Inspection
64. Therepresentative ofLithuania saidthatLithuania didnotengage private sector firms tocarry
outpreshipment inspection.
Anti-Dumping, Countervailing Duties, Safeguard Régimes
65. Some members oftheWorking Party requested information about thestatus oflegislation related
toanti-dumping, countervailing duties andsafeguard measures anditsconformity withWTO disciplines.
Amember reminded Lithuania thatintheabsence oftherequired legislation, Lithuania would notbe
abletoavailitself ofthese WTO-sanctioned temporary protection mechanisms.
66. Therepresentative ofLithuania replied thatLithuania wasconsidering creation oflegislation
onanti-dumping andcountervailing measures. ThenewLawonCustoms Tariff inpreparation would
include provisions onanti-dumping andcountervailing duties thatwould beinfullconformity with
WTO requirements. Lithuania wasalsoconsidering creation oflegislation onsafeguard measures.
HesaidthatifLithuania introduced suchrégimes thesewould beimplemented inaccordance withWTO
requirements, butadded thatsuchrégimes might notbeinplace bythetimeofLithuania 'saccession
totheWTO.WT/ACC/SPEC/LTU/6
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67. Therepresentative ofLithuania saidthatanylegislation inplace atthetimeofaccession or
implemented inthefuture providing fortheapplication ofmeasures taken forsafeguard, anti-dumping
orcountervailingdutypurposeswouldconformtotheprovisionsoftheWTOAgreementsonSafeguards,
onAnti-dumping andonSubsidies andCountervailing Measures. Intheabsence ofsuchlegislative
authority inplace atthetimeofaccession, Lithuania would notapply measures forsafeguard,
anti-dumping orcountervailing dutypurposes untillegislation inconformity withtheprovisions of
these WTO Agreements hadbeenimplemented.
(2) Export Regulations
Customs Tariffs, FeesandCharges forServices Rendered, Application ofInternal Taxes toExports
68. Some members oftheWorking Party noted thatLithuania hadapplied export duties onsome
products andrequested further information. Amember requested Lithuania tobinditsexport duties
atzero.
69. Therepresentative ofLithuania saidthatexport duties ranging from15to50percenthadbeen
imposed temporarily oncertain rawmaterials ofimportance tothelocalindustry. Allthese export
duties were abolished inOctober 1994 byGovernment Resolution No.985. However, Lithuania
maintained some export duties onabilateral basis-onrawhides andskins andtimber ofoakandash
-inconnection withtheFreeTrade Agreements withEstonia, Latvia andtheEuropean Union. Exports
ofthese products wereprohibited atthetimeofconclusion ofthese FreeTrade Agreements andthe
introduction ofexport duties (onabilateral basis) hadthusbeenasteptowards liberalization oftrade.
Effective 1July1996, export prohibitions werelifted oncertain rawmaterials ofinterest tothedomestic
industry andreplaced byexport duties of60percent,applied onanm.f.n. basis, through Government
Resolution No.716.[Theproducts currently subject toexport duties arelisted inTable 4.]Theexport
duties applied onabilateral basis remained ineffect asthese were somewhat lower thantheduties
established through Government Resolution No.716. Therepresentative ofLithuania confirmed that
anychanges intheexport tariff régime would bepublished intheofficial journal.
70. Therepresentative ofLithuania saidthatuseofexport taxes would beconsistent withWTO
norms, andanysuchtaxes atthetimeofaccession would beintheWorking Party report, andthat
afteraccession, anysubsequent useofsuchmeasures would benotified inthisfashion totheWTO
andpublished intheOfficial Gazette.WT/ACC/SPEC/LTU/6
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Export Restrictions
71. Some members oftheWorking Party noted thatLithuania restricted exports ofvarious goods.
Lithuania wasasked toidentify themeasures maintained, theaffected products, thereasons whyexports
were restricted andtoindicate anyplans forfuture useofexport restrictions. Amember noted
Lithuania 'sintentions toreplace existing export prohibitions withexport duties andrequested that
Lithuania indicate specifically when thisconversion would takeplace, andacommitment fromLithuania
tophase outandeliminate theexport duties inaccordance withanegotiated timetable.
72. Therepresentative ofLithuania saidthatallprevious export banswereabolished byGovernment
Resolution No.716(of18June1996) andreplaced byexport duties.
73. Licences wererequired forexports ofethylalcohol, metals andalloys, metal waste andscrap,
andobjects ofcultural value (made before 1950). Licenses werealsorequired toengage inexportation
ofnarcotics andhighly effective orpoisonous substances (notusedforpharmaceutical purposes), oil
products andrawwood. TheLawconcerning Control ofImport, Transit andExport ofStrategic Goods
andTechnologies, entering intoforceon1July1997, stipulated licensing bytheMinistry ofEconomics
forexports ofdualusegoods, technologies andsoftware. Asatemporary measure in1995, continued
through 1996, theGovernment hadmaintained certain export restrictions during periods ofshortsupply
ofgrain, flourandcompound feed. Inthefuture, export quotas onagricultural products would only
betemporary measures applied inemergency situations. Export controls onethylalcohol werelinked
tothecollection oftaxes andtodiscourage production ofcounterfeit alcoholic beverages.
Export Subsidies
74. Some members oftheWorking Party wondered whatstepsLithuania wastaking toencourage
exports. Amember noted thatLithuania maintained export-related subsidies forindustrial goods which
would benotified totheWTO.
75. TherepresentativeofLithuaniarepliedthattheGovernmenthadadoptedaresolution"OnActions
ImprovingForeignTradeRegulationandExportDevelopment"inJanuary1995.Theresolutioncovered
drafting oflegislation, export promotion andfunding, management oftrade-related information and
education andtraining ofexport specialists. Lithuania hadalsoadopted aNational Program of
ImplementationofLithuanianForeignTradePolicyGuidelinesfor1996-1998.Theprogrammeincluded
implementation ofanexport programme developed bytheLithuanian Export Promotion Agency, theWT/ACC/SPEC/LTU/6
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establishment ofExport Support andExport Guarantee Funds, andthedevelopment ofacredit insurance
system based ontheLawonCredit Insurance (yettobedrafted). Thepurpose oftheLithuanian Export
Promotion Agency, which wasestablished attheendof1995, wastopromote exports ofLithuanian
goods anddemand forLithuanian services. Itsmainfunctions weretoanalyze andprovide information
toLithuanian exporters andservice providers onforeign market conditions; toestablish Lithuania 's
traderepresentation offices abroad; toprepare, implement andmonitor tradedevelopment programmes
toensure theirconsistency withWTO rules; tostudy issues affecting trade activities andformulate
recommendations toLithuanian authorities; toconsult State, public andprivate institutions onforeign
trade issues; andtoprovide education andtraining totheforeign trade community inLithuania. The
provisions oftheExport Support FundofLithuania wereapproved byGovernment Resolution No.939
(5August 1996). TheFund provided loans toenterprises producing goods suitable forexport (atup
to80percentofthevalue oftheparticular project) andtoprojects resulting inthecreation ofnew
jobsorthemaintenance ofexisting jobs. TheFund could alsopartially compensate exporters forthe
interest onanyloans thattheyhadtaken fromcommercial banks. Inaddition, theFund financed trade
fairactivities andtheadvertising ofLithuanian products. Indeveloping anexport credit insurance
model, Lithuania tookintoaccount therecommendations oftheOECD. Therepresentative ofLithuania
further confirmed thatifanexport credit insurance system (agency) wasestablished inLithuania, it
would actinaccordance withWTO requirements.
76. Exported goods, withthefewlisted exceptions inTable 4,wereexempt fromcustoms duties
andVAT. ThenewCustoms Code, scheduled toenter intoforce on1January 1998, provided a
framework fortheimplementation ofadutydrawback system.
3. Internal Policies Affecting Foreign Trade inGoods
Industrial Policy, including Subsidies
77. NotingthatLithuaniaintendedtorestructureindustriesandstimulatethedevelopmentofpriority
sectors, members oftheWorking Party asked what support measures Lithuania wasconsidering to
useinthisprocess. Amember asked about thefuture structure oftheenergy sector.
78. Therepresentative ofLithuania expected some sixyears would berequired torestructure
Lithuania 'sindustrial sector. Industries targeted fordevelopment included wood processing; flax;
processing ofskinsandfurs; production ofconstruction materials; agricultural machinery; newforms
ofenergy; waste processing; andproduction ofmedicines andmedical equipment. PotentiallyWT/ACC/SPEC/LTU/6
Page21
competitive enterprises hadbeenidentified through indicators suchascurrent exports. Government
funding waslimited andsubsidies were notgranted forthepromotion ofspecific industries.
Restructuring andpromotion measures therefore concentrated ongeneral improvements inthelegal
andeconomic environment. Specific measures included financial guarantees issued bytheGovernment,
temporary taxexemptions andtechnical assistance fromabroad. Support wascontingent onenterprises
providing properly prepared business plans.
79. Domestic production ofenergy from local resources, including nuclear energy, covered
approximately 43percentofLithuania 'sneeds in1995. Theshare wasexpected toreach about
50percentby2005 withincreasing availability ofdomestic petroleum products andnuclear power.
Energysuppliershadreceivedsubsidiesin1995tocompensateforlowtariffsondeliveriestohouseholds.
Technical Barriers toTrade, Sanitary andPhytosanitary Measures
Standards andCertification
80. Questions bymembers oftheWorking Party focused onLithuania 'smembership ininternational
standardization fora,implementation ofprovisions oftheWTO Agreement onTechnical Barriers to
Trade (TBT Agreement), thedistinction between voluntary andmandatory standards andprocedures
forcertification andquality assessment, including recognition ofcertificates issued byforeign bodies.
Lithuania wasrequested tocomplete thequestionnaire onTBT. Amember noted thatsome ofthe
legislation critical tothedevelopment ofLithuania 'sstandards régime wasstillinpreparation and
expected Lithuania toadopt allnecessary legislation toimplement fullyallobligations under theTBT
Agreement prior tothedateofaccession.
81. Therepresentative ofLithuania provided information intherequired format in"Information
onTechnical Barriers toTrade" indocument WT/ACC/LTU/7/Add.1. Lithuania wasinaprocess
oftransition where mandatory (GOST) standards established under theformer USSR system were
replaced byanewsystem ofvoluntary standards andmandatory technical regulations. Lithuania had
joined theInternational Organization forStandardization (ISO), theInternational Electrotechnical
Commission (IEC), theOrganization forLegal Metrology (OIML) andtheEuropean Organization
forStandardization(CEN).Along-termprogramme(1996-1999)hadbeenestablishedtobringstandards
andconformity assessment procedures inlinewithinternational andEUstandards. Draft standards
were elaborated intechnical committees oftheLithuanian Standards Board.WT/ACC/SPEC/LTU/6
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82. Therepresentative ofLithuania saidthatwork wasunder waytobring technical regulations
intoconformity withtheWTO Agreement onTBT. Lithuania established anInformation Centre at
theLithuanian Standards Board inNovember 1996. ThisCentre interaliafulfilled thefunction of
theEnquiry Point according totheWTO Agreement onTBT. TheLithuanian Standards Board intended
topublish information ondrafttechnical regulations, standards andconformity assessment procedures
initsPeriodical Bulletin. Lithuania would introduce provisions allowing foreigners tocomment on
technical regulations notconsistent withinternational norms. Plans existed toadopt theCode ofGood
Practice andthenotification requirements forvoluntary standards asrequired intheAnnex 3ofthe
WTO TBTAgreement.
83. Lithuania 'ssystem ofcertification wasbased onnormative documents prepared according to
ISO/IECguidelines,mainlyISO/CASCOGuide28.Domesticandimportedgoodsweretreatedequally.
Lithuanian certification bodies could recognize certificates issued byforeign bodies inaccordance with
therelevantprocedures.Certificationbodieshadbeenestablishedformandatorycertificationofelectrical
appliances (theCertification Centre ofElectrotechnical Production inVilnius) andforgeneral-purpose
electronic equipment (theStateMedical andElectronic Equipment Centre ofCertification "SERTIKA"
inKaunas).
84. Foreign certificates forimported oilproducts needed tocorrespond tomandatory quality
indicators approved bytheLithuanian Standards Board. Government Resolution No.883(29
November 1993) OntheApproval ofTraffic Rules established technical inspection requirements for
imported vehicles. Allpharmaceutical products required registration before being soldinLithuania.
Some other non-food items were subject toverification requirements under Government Resolution
No.53/89 of31August 1994. Marking regulations hadbeenestablished byorder No.42/25/107 of
23February 1995. Forother technical requirements seedocument WT/ACC/LTU/7/Add.1.
85. Lithuania hadsigned agreements onmutual recognition oftestreports andcertificates of
conformity withPoland, Slovakia, Belarus, Russia andUkraine; agreements withtheCzech Republic,
Romania andBulgaria wereunder negotiation. Cooperation agreements onaccreditation between the
corresponding institutions ofLithuania, Latvia andEstonia hadalsobeensigned. Lithuania recognized
certificates offoreign countries aftertheirregistration bytherelevant product certification bodies in
Lithuania.
86. TherepresentativeofLithuaniastatedthat,uponaccessiontotheWTO,Lithuaniawouldcomply
withalltherelevant provisions oftheWTO, including theAgreement onTechnical Barriers toTrade.WT/ACC/SPEC/LTU/6
Page23
Inparticular, Lithuania would ensure thatitstechnical regulations, standards, certification andlabelling
requirements arenotapplied toimports inanarbitrary manner, inawaythatdiscriminates between
supplier countries where thesame conditions apply orasadisguised restriction oninternational trade.
Sanitary andPhytosanitary Measures
87. Some members oftheWorking Party asked questions about Lithuania 'sparticipation in
internationalstandardizationfora,preparationsforimplementingtheWTOAgreementontheApplication
ofSanitary andPhytosanitary Measures (theSPSAgreement), andrequirements affecting specific
products. Amember pointed outthatArticle 5oftheWTO SPSAgreement required Lithuania to
carry outriskassessment. Amember expected Lithuania toestablish itsSPSenquiry point andadopt
allnecessary legislation toimplement fullyallobligations under theSPSAgreement bythedateof
accession totheWTO.
88. Therepresentative ofLithuania saidthatLithuania hadrenewed itsmembership inthe
Organisation International desEpizooties (OIE) in1992 andwasfollowing therequirements ofthe
Codex Alimentarius Commission andtheEuropean Plant Protection Organization (EPPO). Lithuania
wasworking toconform itssanitary andphytosanitary measures withtherequirements oftheWTO.
Procedures would beestablished forpublic notice andcomment forallsanitary andphytosanitary
measures. Heprovided information onspecific Lithuanian requirements pertaining toseeds, fertilizers,
pesticides, animal andplant health, feeds, plantbreeders 'rights, fruitandberries, foodadditives and
contaminants, packaging andlabelling standards, andinspections ofmeat, dairy products, eggsand
eggproducts.
89. InAnnexIofdocumentWT/ACC/LTU/10,therepresentativeofLithuaniaprovided"Information
onLithuania 'sProgress inImplementing theProvisions oftheWTO Agreement onSanitary and
Phytosanitary Measures." Thesubmission listed theinstitutions responsible forapplication ofSPS
measures; relevant legislation pertaining tofoodstuffs andfoodsafety, non-processed agricultural
commodities andanimal health, andplant health; andoutlined plans forrecognizing equivalence of
SPSregulations ofexporting countries andimplementation oftransparency provisions.
90. Imported foodstuffs wererequired topassthrough border crossing points manned toperform
foodstuff controls. TheMinistry ofHealth Carehadapproved alistoffoodstuffs subject toquality
control, thusrequiring phytosanitary, veterinary orhealth andquality certificates onimportation.
Products included inthelistwere setoutindocument WT/ACC/LTU/7, page57.WT/ACC/SPEC/LTU/6
Page24
91. Regarding implementation ofWTO provisions ontechnical barriers totrade andsanitary and
phytosanitary measures, therepresentative ofLithuania saidthattheenquiry points andnotification
functions required under theTBTandSPSAgreements might notbefullyoperational bythetimeof
Lithuania 'saccession totheWTO.
Trade-Related Investment Measures
92. SomemembersoftheWorkingPartyinquiredaboutLithuania'sintentionsregardingnotification
oftrade-related investment measures.
93. TherepresentativeofLithuaniarepliedthathisGovernmenthadreviewedcarefullytheprovisions
oftheWTO Agreement onTrade-Related Investment Measures (TRIMs), including itsAnnex andhad
concluded thatLithuania didnotmaintain anymeasures inconsistent withtheTRIMs Agreement. His
Government applied theprinciple ofnational treatment anddidnotresort toperformance requirements
which could affect trade.
State Trading Entities
94. Some members oftheWorking Party asked forinformation ontheshare ofState trading in
Lithuania 'stotaltrade. Lithuania wasrequested tocomplete thequestionnaire onState trading and
asked about itsintentions tonotify State trading enterprises under Article XVII. Specific questions
addressed measures affecting importation ofalcohol andsugar. Amember understood thatLithuania
usedlicences toallow commerce toacertain point, andstated thatLithuania should notify firms under
Article XVII oftheGATT 1994 inareas where business licences were rationed arbitrarily oracted
asquantitative restrictions.
95. Therepresentative ofLithuania presented therequired information onState trading tothe
Working Party indocument WT/ACC/LTU/7/Add.1. TheLawonTrade, adopted inJanuary 1995,
authorized theestablishment ofStatemonopolies inanysector inemergency situations (war, natural
calamities, etc.)andtoprotect health andsafety. Therepresentative ofLithuania considered such
measures consistent withtheprovisions ofArticle XXandArticle XXIoftheGATT 1994. Lithuania
hadestablished thelegal basis forintroduction ofaState monopoly onalcohol products incases of
force majeure (war, famine andnatural disasters), ameasure hefeltcould bejustified under
Article XX(b) and(d).Production ofbeverages withhighalcohol content wasreserved fortheState
stock company "Lietuviskas Midus". Hestressed thatdomestically-produced alcohol wassubject toWT/ACC/SPEC/LTU/6
Page25
thesame regulations asimported products. Exclusive rights existed forState enterprises regarding
tradeinnuclear material andwaste, andsome energy suppliers werenatural monopolies inLithuania.
Therepresentative ofLithuania added thatnoagricultural products were covered byState trading.
FreeZones, Special Economic Areas
96. Amember oftheWorking Party requested details ontheestablishment andoperation offree
tradezones inLithuania. Aquestion wasalsoasked about criteria forcompanies locating insuchzones
andanypossible requirements linking preferential treatment andexport performance. Lithuania was
alsorequested toclarify whether output fromsuchzones soldintherestofLithuania would besubject
tothetariffs andtaxes applicable toallother imports.
97. Therepresentative ofLithuania replied thattheLawonFreeEconomic Zones wasadopted
inJune1995. Eachzonewould beestablished byseparate law.Certain activities would beprohibited
infreezones, including production, storage andsaleofweapons, ammunition, explosives, dangerous
andradioactivematerials,narcoticsandpoisonoussubstances;manufactureoftobacco,spirits,securities,
money andpostage stamps; radio andtelevision broadcasting; hospitals; gambling houses; and
organization oflotteries. Licences would berequired tocarry outactivities subject toauthorization
(see"Investment Régime") within Lithuania. Enterprises operating inafreezonewould beexempt
fromcustoms duties, excise taxesandVAT, butwould besubject toprofit tax,payroll taxes(including
social insurance), taxonlandrent,stamp tax,taxesonnatural resources andpollution tax(amendment
ofLawonFreeEconomic Zones of2April 1996). Taxholidays would apply forforeign investment
exceeding US$2 million (constituting more than30percentofanenterprise 'sequity), notaxwould
beapplied ondividends, andincome could betransferred abroad without restriction.
98. TheGovernment would organize atender toselect thecompany orgroup ofcompanies togovern
thezone, andasubsequent tender todetermine thecompanies operating inthezone. Bothforeign
anddomestic companies could participate inthesetenders, provided theyprepared anentrepreneurship
project, including estimates ofproposed investment intheinfrastructure ofthezone. Companies
operating inthezonewould needtoregister asenterprises inaccordance withLithuanian legislation
andtheregistration should bedulyrecorded bythegoverning company ofthezone. Companies were
notrequired toexport partoralloftheiroutput togainaccess toLithuanian freezones.
99. Therepresentative ofLithuania confirmed thatanyFreeZones orFreeEconomic Zones will
befullysubjecttothecoverageofthecommitmentstakenintheProtocolofAccession,andthatLithuaniaWT/ACC/SPEC/LTU/6
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willensure enforcement ofitsWTO obligations inthose zones, including those commitments derived
fromtheTRIPS Agreement. Healsoconfirmed that,when goods produced orimported intothezones
under thespecial taxandtariff régime existing inthese areas enter intotherestofLithuania, normal
customs formalities, tariffs andtaxes willbeapplied.
Government Procurement
100. Some members oftheWorking Party asked about thestatus ofLithuanian legislation on
government procurement andLithuania 'sintentions regarding adherence tothePlurilateral Trade
Agreement onGovernment Procurement.
101. Therepresentative ofLithuania replied thataLawonPublic (Government) Procurement,
consistent withWTO requirements, entered intoforce on1January 1997. According tothisLaw,
theGovernment waspreparing adecision which would stipulate thatpreference should begiven to
goods, works andservices produced, effected orprovided byenterprises registered inLithuania, when
thissupply wasimportant totheStateforeconomic orsocial reasons. Suchadecision would bepassed
incompliance withLithuania 'sobligations under international agreements.
Transit
102. Noting theapplication ofasecurity deposit ongoods intransit, some members oftheWorking
Party asked howthedeposit wascalculated andwhether aceiling existed ontheamount deposited.
103. Therepresentative ofLithuania replied thatthesecurity deposit would normally beequal to
thesumofimport duties andtaxes levied onimports. Theamount considered sufficient could beset
atahigher levelifthecustoms value ortariffclassification ofthegoods intransit could notbedetermined
withcertainty.
104. Therepresentative ofLithuania added thatthePrime Ministers oftheBaltic States hadsigned
aResolution in1995tocreate aBaltic Transit System ("Via Baltica") which would facilitate andsimplify
transit formalities forcargo traffic between theBaltic States. Thesystem would bebased on,andcould
pavethewayfor,future accession totheEC-EFTA SADandCommon Transit Conventions (1987).WT/ACC/SPEC/LTU/6
Page27
Agricultural Policies
[InformationonDomesticSupportandExportSubsidies,circulatedasdocumentWT/ACC/SPEC/LTU/2
of30July1996.]
105. Some members oftheWorking Party asked Lithuania tooutline themain direction ofits
agricultural policies. Specific questions were raised withrespect tocustoms duties onagricultural
products, theenforcement ofrecommended purchase prices onsome commodities, direct andindirect
supportmeasures,exportsubsidies,andmeasuresinthesugarsector.Lithuaniawasrequestedtoprovide
information ondomestic support andexport subsidies inagriculture intheformat ofdocument
WT/ACC/4. Amember noted thatLithuania hadimplemented domestic support andexport subsidy
programmes veryrecently andwondered whyLithuania hadimplemented programmes atoddswith
WTO provisions afterdeciding tojointheorganization.
106. Therepresentative ofLithuania saidthatagriculture wasofexceptional economic andsocial
significance toLithuania. OnethirdofLithuania 'spopulation resided inruralareasandtheproduction
ofprimary agricultural commodities provided work for23percentofthetotalemployed workforce
inLithuania.MilkproductionwasoneofthemostimportanteconomicactivitiesinLithuania.However,
agricultural production washampered bysmall-scale, inefficient farming andmarketing infrastructure.
Domestic prices formostagricultural commodities werebelow theworld market level, butprices for
finalproducts could sometimes beequal to,orhigher than, world market prices. TheGovernment
aimed atcreating acompetitive agricultural sector andaviable ruraleconomy while minimizing the
negative social andeconomic consequences during theperiod oftransition. Theaverage tariffonmajor
foodproducts (milk, dairy products, butter, eggs, sausages andsugar) was27.5percent. Atpresent,
Lithuania hadnoanti-dumping régime, butplanned toimplement WTO-consistent border measures
against dumped imports.
107. Some members wereparticularly concerned about subsidies granted intheformofgovernment
purchasesofagriculturalproductionat"recommended"prices.TherepresentativeofLithuaniaexplained
thatfarmers weresupported through themechanism ofminimum (recommended) purchase prices for
wheat, flax,rapeseeds, fodder forleguminous crops, pork, milkandhigh-quality cattle. Theproduct
coverage oftheminimum price programme could beexpanded inextreme situations. Prices were
determined byaverage production costsinLithuania andthemarket situation inneighbouring countries.
Subsidies were channelled tofarmers through theprocessors toreduce paperwork. Subsidies were
granted through theNational Agricultural Development Programme andalsothrough theAgricultureWT/ACC/SPEC/LTU/6
Page28
Support Fund, created in1994through theamalgamation ofvarious existing funds suchastheSowing
Fund. TheGovernment wascurrently preparing anamendment tothemechanism forsubsidization
ofagriculture. Types ofassistance alsoincluded softcredits andpreferential loans (at5percentannual
interest) forfarmers, support totrade intermediaries andservices providers, rebates onagricultural
machinery, support forcooperative efforts among farmers, ecologic farming andcompensation for
accidents andcalamities. TheStatealsooffered indirect support byfinancing landreclamation works,
liming ofsoil,construction ofroads andother infrastructure, animal breeding andagricultural research
andtraining. Taxconcessions tothesector consisted ofexemption fromcorporate profit tax,andtax
holidays onreclaimed land. TheGovernment alsoencouraged diversification inrural areas and
afforestation.
108. Amember noted thatLithuania applied subsidized certain agricultural exports andrequested
Lithuania tobinditsexport subsidies atzeroanduseother, lessdistortive, forms ofagricultural support.
Therepresentative ofLithuania explained thatexport subsidies wereprovided forstorage ofsurplus
production andimprovement ofmarketing conditions. In1995, export subsidies hadbeenprovided
forbeef,pork, butter, cheese andcondensed milkatabudget costofLtl27.8million. Lithuania would
alsosubsidize exports ofporkanddairy products in1996, andexpected tocontinue applying such
subsidies inthefuture, especially inextreme market situations.
109. Some members asked specific questions regarding measures affecting thesugar sector, notably
thepossibleintroductionofreferencepricesandtheopeningoftariff-ratequotasfordomesticprocessors.
Lithuania wasreminded thatArticle VIIoftheGATT 1994 andtheWTO Agreement onAgriculture
prohibited theuseofreference prices.
110. Therepresentative ofLithuania saidthatsugar (HScode1701) wasprotected bytariffs of35
advalorem (minimum Litas 0.75perkg),othersugar products (HScodes 1702.03, 1702.40, 1702.90)
bytariffsof35percent,andconfectionerymadeofsugar(HScode1704.10.11-1704.90.51,1704.90.61-
1704.90.99) bytariffs of25-30 percent,andprocessors wereprovided seasonal softcredits. Imports
could alsotakeplace under tariff-rate quotas, butprocessors would firstneedtoexhaust reserves of
domestic sugar. Thezero-tariff quota wasdistributed byconsensus among thefourdomestic sugar
refineries. Producers ofsugar hadalsobeenexempted from provisions oftheLawonCompetition
toallow theestablishment ofaproducer association. Lithuania intended toliberalize thesugar régime
when production hadrisen tomatch domestic demand.WT/ACC/SPEC/LTU/6
Page29
111. Therepresentative ofLithuania stated thatLithuania intended toeliminate theprovisions on
import reference prices intheLawonSugar nolaterthanthedateofitsaccession totheWTO.
[Tobecompleted.]
Trade-Related Intellectual Property Régime
112. Some members oftheWorking Party asked Lithuania todescribe itssystem ofprotection of
intellectualpropertyinthelightoftheWTOAgreementonTrade-RelatedAspectsofIntellectualProperty
Rights (TRIPS) andindicate areas which would besubject toneworrevised legislation. Amember
noted thatLithuania 'sintellectual property rights régime wasstillbeing developed andthatthecurrent
régime didnotmeetalltherequirements oftheWTO, andrequested Lithuania toaccelerate itslegislative
process inorder toensure fullimplementation oftheTRIPS Agreement atthetimeofaccession to
theWTO.
113. Lithuania provided anoteonTRIPS totheWorking Party indocument WT/ACC/LTU/7
(Annex I).Inresponse tospecific questions, therepresentative ofLithuania saidthatnational legislation
-including lawsonpatents, industrial design, trademarks andservice marks, theLawonCompetition,
theCriminal Code andprovisions oftheCivil Code -largely corresponded tothebasic provisions
oftheTRIPS Agreement. Lithuania 'slegislation onintellectual property contained noexceptions to
theprinciple ofnational orm.f.n. treatment. Lithuania didnotusethepossibilities provided inArticle 6
oftheBerne Convention orparagraph 1(b)ofArticle 16oftheParis Convention andmaintained no
exceptional measures asprovided forunder Article 4(d)oftheTRIPS Agreement.
114. Lithuania joined theWorld Intellectual Property Organization (WIPO) in1992 andtheParis
Convention in1994. On17September 1996, theSeimas (Parliament ofLithuania) ratified theNice
Agreement Concerning theInternational Classification ofGoods andServices forthePurposes of
Registration ofMarks of15June1957. Intheareaofcopyright andrelated rights, Lithuania joined
theBerne Convention in1994, andintended tojointheGeneva Convention andtheRome Convention
in1997. Lithuania hadalsoconcluded international agreements onintellectual property withDenmark,
Norway, Switzerland, theUnited States andtheEuropean Patent Organization, andadhered tothe
Multilateral Trademark LawTreaty.
115. Parliament hadadopted aLawontheAmendment andSupplement totheCivil Code in
May1994, covering copyright (Chapter 4)andneighbouring rights (Chapter 5).Authors, artists andWT/ACC/SPEC/LTU/6
Page30
creatorshadfoundedtheLithuanianCopyrightProtectionAssociation(LATGAA)whichwasconcluding
agreementswithsimilarorganizationsinothercountries.Broadcastingorganizationsmaintainedcopyright
onradio andTVprogrammes according toArticle 526(4)oftheCivil Code. Lithuanian lawdidnot
contain provisions oncompulsory licensing ofworks andsound recordings. Current legislation did
notprovide rental rights forcinematographic works, computer programmes orsound recordings, but
Lithuania intended toamend theCivil Code tointroduce suchrental rights byDecember 1996. The
amended Civil Code would alsoinclude more elaborate provisions onexceptions andlimitation of
exclusive rights incompliance withArticles 13,30and31oftheTRIPS Agreement.
116. Lithuania considered theexceptions initslawtotherights conferred byatrademark tobein
compliance withArticle 17oftheTRIPS Agreement. Geographical indications wereprotected under
Article 7andother provisions oftheexisting LawonCompetition. However, Parliament wasexpected
toadopt anewLawonCompetition during 1997. Therepresentative ofLithuania saidthatthedraft
lawcontained provisions regarding theuseofgeographical indications which complied fully with
Articles 22to24oftheTRIPS Agreement.
117. Therepresentative ofLithuania saidthattheLawonPatents appeared torequire amendments
toincorporate theprovisions oftheTRIPS Agreement andtheParisConvention regarding compulsory
licensing ofpatented inventions. Disputes regarding working ornon-working ofapatent could be
settled inCourt. Generally, importation ofapatented product should beconsidered equivalent tothe
useofapatent.
118. Lithuania waspreparing aLawontheProtection ofLayout Designs ofIntegrated Circuits.
TheLawonLegal Protection ofComputer Programs andDataBases andtheLawonPlant Variety
Protection andSeedGrowing hadbeenadopted in1996. Thelatter Lawassured theprotection of
allplant varieties registered inLithuania andguaranteed therights ofvariety owners. Lithuania was
notamember oftheInternational Plant Variety Protection Organization (UPOV) andwould notjoin
UPOV untilvarieties ofLithuanian breeders hadbeenrecognized andregistered incountries inwestern
Europe.
119. Intellectualpropertyrightswereenforcedbycivilaction,unlesstheinfringementwasconsidered
acriminal violation. Procedures werelaiddown intheCivil Code andtheCode ofCivil Process of
theRepublic ofLithuania. Thelawsontrademarks, patents andindustrial design contained specific
provisionsregardingowners'rightstostopinfringementsandclaimsforcompensation;remediesagainst
violations ofcopyright andrelated rights wereprovided under theCivil Code andtheCriminal Code.WT/ACC/SPEC/LTU/6
Page31
Policies Affecting Trade inServices
[Reference toannexed schedule toGATS. Initial commitments ontrade inservices circulated as
document WT/ACC/SPEC/LTU/1 of30July1996.]
120. SomemembersoftheWorkingPartynotedthatanumberofactivities,includingservicessectors,
weresubject tolicensing inLithuania andrequested details concerning theregulatory régime. Lithuania
wasalsoasked toupdate Members oftheWorking Party onitsprocess ofdrafting lawsandregulations
governing trade inservices andsteps taken toensure theconsistency ofthese lawsandregulations
withGATS principles. Questions focused inparticular onconditions forsupply offinancial sector
services inLithuania.
121. Therepresentative ofLithuania submitted totheWorking Party aseparate Memorandum on
theservicesrégime(WT/ACC/LTU/5),anadditionalpresentation(WT/ACC/LTU/9)andsupplementary
informationindocumentWT/ACC/LTU/10.Thedocumentationoutlinedthemarketstructure,regulatory
framework andpolicies affecting services generally orinrelation tospecific sectors.
122. Therepresentative ofLithuania saidthatrequirements fortheregistration ofanenterprise were
thesameirrespective ofthenationality ofownership, except thataforeign investor would needtosubmit
certificates ofincorporation forlegal persons, documentation onthefinancial condition/status, and
verification oftheorigin oftheforeign capital. Foreign investment waspermitted inallsectors with
theexception ofareas related todefence andnational security; production andsaleofnarcotic
substances, andother non-medicinal orpoisonous substances having similar effects; cultivation and
saleofcrops containing narcotic substances orsubstances withsimilar effects; andtheorganization
oflotteries. TheState PostOffice wastheonlyservice supplier withmonopoly orexclusive rights;
itsrights concerned collection anddelivery ofletters, postcards andprinted matter; installation of
letter collection boxes; andissuance ofpostage stamps. TheState enterprise "Lietuvas Telekomas"
nolonger heldexclusive rights toprovide telecommunication services.
123. TherepresentativeofLithuaniaprovidedinformationonlicensingofbusinessactivities,including
services, in[Table 1].Afewimportant business activities (exploitation ofrailways, ports, airports,
State roads, pipelines, electricity andcommunication lines, etc.)were reserved forenterprises with
minimum 50percentStateownership. TheGovernment would amend theLawonEnterprises inthe
nearfuture andasaresult thenumber oflicensed activities would bereduced. Foreign anddomesticWT/ACC/SPEC/LTU/6
Page32
companies weresubject tothesame procedures inobtaining licences fromtheMinistry ofEnergy to
engage inservices incidental toenergy distribution.
124. Lithuania didnotmaintain anyspecific measures ofhorizontal nature which would limitmarket
access ornational treatment inthefinancial services sector. Permission from theBank ofLithuania
wasrequired forforeign banks toestablish subsidiaries orbankagencies. According totheLawon
Commercial Banks of21December 1994, foreign banks could establish subsidiaries; acquire shares
ofaneworoperating bank(acquisition ofablock ofshares (10percentormore) inanoperating bank
required theconsent oftheBank ofLithuania); andestablish branches andrepresentative offices.
Domestic andforeign investors needed priorapproval fromtheBankofLithuania toacquire 10percent
ormore oftheshares inexisting banks. Minimum capital requirements werethesame fordomestic
andforeign banks; theminimum wassettoincrease from ECU 1.9million (inlitasequivalent) to
ECU 5.0million on1January 1998. Lithuania intended toapproximate itsbanking lawswithEU
directives which could leadtofurther liberalization. Foreign securities firms could conduct business
through anylegalform ofenterprise inLithuania.
125. Insurance services wereprovided by35companies, ofwhich 6included foreign participation.
TheStateInsurance Company hadheldexclusive rights toissue alltypes ofmandatory insurance and
pensions insurance; thecompany would beprivatized under anewLawonInsurance. ThenewLaw
would codify thecurrent situation, under which allexclusive rights fortheStateInsurance Company
hadbeeneliminated. TheLawwould enable foreign insurance companies toestablished wholly-owned
companies, joint-ventures orsubsidiaries. Foreign financial institutions were permitted todeliver
transportation insurance (maritime andaviation) andreinsurance services across theborder. Insurance
inter-mediation onbehalf offoreign insurance companies wasallowed forintermediaries registered
inLithuania.
126. Concerning thesupply ofprofessional services byforeigners, theLithuanian Labour Exchange
issued workpermits andwould evaluate andfullyrecognize thequalifications ofapplicants inaccordance
withthedocumentation submitted. Lithuania hadnoagreements withother countries regarding the
recognition ofqualifications. Lithuania wasdeveloping licensing procedures forauditing services.
Legal services wereregulated bytheMinistry ofJustice andcould beprovided byadvocates andlawyers
licensed toengage insuchactivities. However, foreigners could notactasdefenders incriminal
proceedings; suchservices werereserved foradvocates whowerecitizens ofLithuania andincluded
inalistofattorneys. Foreign attorneys could represent clients before theCourts inLithuania only
ifprovided under bilateral agreements onlegalassistance. Agreements wereinforce withBelarus,WT/ACC/SPEC/LTU/6
Page33
Estonia, [Kazakhstan], Latvia, Moldova, Poland, theRussian Federation, [Turkey] andUkraine. The
limitations oncitizenship, which wereapplicable toadvocates (representing clients before theCourts),
were notapplied tolawyers wishing toengage inother lawyers 'practices.
127. TheGovernment established anannual quota onthenumber offoreign employees inaccordance
withtheRegulation onTemporary Employment ofForeigners of13February 1995. Employers applied
totheLithuanian Labour Exchange which would issuespecial visasandwork permits forforeigners.
Thisregulation wasnotapplied tokeypersonnel: managers, specialists orconsultants inenterprises
withforeign capital, working for3months orlesstoinstall equipment ortrainlocalstaff.
128. Regarding procurement ofservices bygovernment agencies, therepresentative ofLithuania
saidthattheLawonPublic Procurement (entering intoforce on1January 1997) included provisions
onpreferences forlocal suppliers. These preferences would notexceed 15percentforgoods and
services, and20percentforworks. Lithuania hadnoagreements withthird countries concerning
government procurement.
Transparency
129. Therepresentative ofLithuania stated thataccording toLithuanian procedures legalactscould
notbeenforced untiltheyhadbeenpublished intheofficial journal "State news".
Publication ofInformation onTrade
130. Therepresentative ofLithuania stated thatatthelatest from thedateofaccession, alllaws,
andother normative actsrelated totrade would bepromptly published intheOfficial Gazette orother
official newspapers published byappropriate Ministries ordepartments. Hestated further thatnolaw,
ruleetc.related tointernational trade would become effective prior tosuchpublication.
Notifications
131. Therepresentative ofLithuania saidthatatthelatest upon entry intoforce oftheProtocol of
Accession, Lithuania would submit allnotifications (other thanthose required tobemade onanad
hocbasis) required byanyAgreement constituting partoftheWTO Agreement. Anyregulations
subsequently enacted byLithuania which gaveeffect tothelawsenacted toimplement anyAgreement
constituting partoftheWTO Agreement would alsoconform totherequirements ofthatAgreement.WT/ACC/SPEC/LTU/6
Page34
Trade Agreements
132. Some members oftheWorking Party asked Lithuania toprovide information onbilateral or
regional agreements affecting trade andinvestment. Some members wondered whether thefreetrade
agreements covered substantially alltrade. Lithuania wasasked tonotify itsfreetrade agreements
under GATT Article XXIV. Amember requested acopyoftheTrilateral Agreement onAgricultural
Trade between theBaltic countries, including thespecific market access provisions fortheremoval
ofbarriers among thethree countries.
133. TherepresentativeofLithuaniasaidthatLithuaniahadnegotiatedFreeTradeAgreements(FTA's)
withtheEuropeanUnion,theEuropeanFreeTradeAssociation(EFTA),EstoniaandLatvia(onindustrial
andagricultural products), Ukraine, Poland, theCzech Republic, Slovakia andSlovenia. TheFTA's
concluded withtheCzech Republic, Slovakia andSlovenia would enterintoforce from1March 1997.
Lithuania intended toconclude freetrade agreements withallCEFTA countries. Trade agreements
providingform.f.ntreatment(conventionalduties)hadbeenconcludedwithAustralia,Belarus,Bulgaria,
China, Cyprus, Cuba, theCzech Republic, Georgia, Hungary, Iceland, India, theRepublic ofKorea,
[thePhilippines],Romania,theRussianFederation,Slovakia,Slovenia,Turkey,Uzbekistan,[Venezuela]
and[Vietnam]. Conventional m.f.n. duties were alsoapplied onimports from Canada, Japan,
Kazakhstan, Moldova, Tadjikistan andtheUnited States. Goods originating inother countries were
subject toautonomous customs duties. Agreements oninvestment promotion andprotection hadbeen
concluded with[Argentina], [Austria], China, theCzech Republic, Denmark, Estonia, Finland, France,
[Germany], [Greece], Israel, [Italy], Kazakhstan, Republic ofKorea, Latvia, Netherlands, Norway,
Poland, Romania, Spain, Sweden, Switzerland, [Turkey], Ukraine, United Kingdom, Venezuela [and
Vietnam]. Lithuania hadalsoconcluded anagreement withtheMultilateral Investment Guarantee
Agency.
134. Therepresentative ofLithuania saidthatthefreetrade agreements covered substantially all
trade. Under theLithuania/EU agreement, tariffs would nevertheless remain onsome agriculture and
fishery products afterthesix-year transitional period toimplement theagreement. ThisFTAhadalready
beennotified bytheECunder Article XXIV. Preferential treatment wasgranted intheformoftariff-rate
quotas forsome products; quota amounts werelisted inAnnex XIII,andtherespective in-quota tariff
ratesinAnnex XII,oftheFreeTrade Agreement.
135. TheFreeTrade Agreements withtheEUandEFTA States were asymmetric, butonlyfor
industrial products. Thetwoagreements weresimilar incontent, except thattheagreement withEFTAWT/ACC/SPEC/LTU/6
Page35
States contained asmaller number ofproducts subject toatransitional period andprovided aspecific
datefortheabolition ofimport duties ontextile products. TheFTAwithEFTA included agricultural
products, butthetrade régime wasbased onreciprocal concessions fromthem.f.n. level. TheFTA
withEFTA hadalready beennotified byEFTA under Article XXIV. TheFTAwithUkraine stipulated
m.f.n. treatment forthemajority ofagricultural products, fortheremaining items thetariff waszero.
Negotiations toinclude agriculture intheFreeTrade Agreement withEstonia andLatvia hadbeen
completed andresulted inzerotariffs forallagricultural products.
136. Therepresentative ofLithuania stated thathisGovernment would observe theprovisions of
theWTO including Article XXIV oftheGATT 1994andArticle VoftheGATS initstradeagreements,
andwould ensure thattheprovisions oftheseWTO Agreements fornotification, consultation andother
requirements concerning preferential trading systems, freetrade areas andcustoms unions ofwhich
Lithuania isamember aremetfromthedateofaccession, insofarasthese provisions hadnotalready
beenmetbyoneoftheother Parties tosuchanagreement.
Conclusions
137. TheWorking Party tooknoteoftheexplanations andstatements ofLithuania concerning its
foreign traderégime, asreflected inthisreport. TheWorking Party tooknoteoftheassurances given
byLithuania inrelation tocertain specific matters which are reproduced in
paragraphs................................. ofthisreport. TheWorking Party tooknoteofthecommitments
given byLithuania inrelation tocertain specific matters which arereproduced inparagraphs
............................ ofthisreport. TheWorking Party took notethatthese assurances and
commitments hadbeenincorporated inparagraph ....oftheProtocol ofAccession ofLithuania tothe
WTO.
138. Having carried outtheexamination oftheforeign trade régime ofLithuania andinthelight
oftheexplanations, commitments andconcessions made bytherepresentative ofLithuania, theWorking
PartyreachedtheconclusionthatLithuaniabeinvitedtoaccedetotheMarrakeshAgreementEstablishing
theWTO under theprovisions ofArticle XII.Forthispurpose, theWorking Party hasprepared the
draftDecision andProtocol ofAccession reproduced intheAppendix tothisreport, andtakes note
ofLithuania 'sSchedule ofSpecific Commitments onServices (document...............) anditsSchedule
ofConcessions andCommitments onGoods (document ..........) thatareannexed totheProtocol.
Itisproposed thatthese textsbeadopted bytheGeneral Council when itadopts thereport. When
theDecision isadopted, theProtocol ofAccession would beopenforacceptance byLithuania whichWT/ACC/SPEC/LTU/6
Page36
would become aMember thirty daysafteritaccepts thesaidProtocol. TheWorking Party agreed,
therefore, thatithadcompleted itswork concerning thenegotiations fortheaccession ofLithuania
totheMarrakesh Agreement Establishing theWTO.
[tobecompleted]WT/ACC/SPEC/LTU/6
Page37
APPENDIX
ACCESSION OFLITHUANIA
Draft Decision
TheGeneral Council,
Having regard totheresults ofthenegotiations directed towards theestablishment oftheterms
ofaccession oftheRepublic ofLithuania totheMarrakesh Agreement Establishing theWorld Trade
Organization andhaving prepared aProtocol fortheAccession ofLithuania,
Decides, inaccordance withArticle XIIoftheMarrakesh Agreement Establishing theWorld
Trade Organization, thattheRepublic ofLithuania mayaccede totheMarrakesh Agreement Establishing
theWorld Trade Organization ontheterms setoutinthesaidProtocol.WT/ACC/SPEC/LTU/6
Page38
PROTOCOL OFACCESSION OFLITHUANIA
TOTHE MARRAKESH AGREEMENT ESTABLISHING
THE WORLD TRADE ORGANIZATION
DRAFT
TheWorld Trade Organization (hereinafter referred toasthe"WTO"), pursuant totheapproval
oftheGeneralCounciloftheWTOaccordedunderArticleXIIoftheMarrakeshAgreementEstablishing
theWorld Trade Organization (hereinafter referred toas"WTO Agreement"), andtheRepublic of
Lithuania (hereinafter referred toas"Lithuania"),
Taking noteoftheReport oftheWorking Party ontheAccession ofLithuania totheWTO
indocument WT/L.... (hereinafter referred toasthe"Working Party Report"),
Having regard totheresults ofthenegotiations ontheaccession ofLithuania totheWTO,
Agree asfollows:
PartI-General
1. Upon entry intoforce ofthisProtocol, Lithuania accedes totheWTO Agreement pursuant
toArticle XIIofthatAgreement andthereby becomes aMember oftheWTO.
2. TheWTO Agreement towhich Lithuania accedes shallbetheWTO Agreement asrectified,
amended orotherwise modified bysuchlegalinstruments asmayhaveentered intoforce before the
dateofentry intoforceofthisProtocol. ThisProtocol, which shallcomprise thecommitments referred
toinparagraph ...oftheWorking Party Report, shallbeanintegral partoftheWTO Agreement.
3. Except asotherwise provided forintheparagraphs referred toinparagraph ...oftheWorking
Party Report, those obligations intheMultilateral Trade Agreements annexed totheWTO Agreement
thataretobeimplemented overaperiod oftimestarting withtheentry intoforce ofthatAgreement
shallbeimplemented byLithuania asifithadaccepted thatAgreement onthedateofitsentry into
force.WT/ACC/SPEC/LTU/6
Page39
4. Lithuania maymaintain ameasure inconsistent withparagraph 1ofArticle IIoftheGATS
provided thatsuchameasure isrecorded inthelistofArticle IIExemptions annexed tothisProtocol
andmeets theconditions oftheAnnex totheGATS onArticle IIExemptions.
PartII-Schedules
5. TheSchedules annexed tothisProtocol shall become theschedule ofConcessions and
Commitments annexed totheGeneral Agreement onTariffs andTrade 1994 (hereinafter referred to
asthe"GATT 1994") andtheSchedule ofSpecific Commitments annexed totheGeneral Agreement
onTrade inServices (hereinafter referred toas"GATS") relating toLithuania. Thestaging of
concessions andcommitments listed intheSchedules shallbeimplemented asspecified intherelevant
parts oftherespective Schedules.
6. Forthepurpose ofthereference inparagraph 6(a)ofArticle IIoftheGATT 1994tothedate
ofthatAgreement, theapplicable dateinrespect oftheSchedules ofConcessions andCommitments
annexed tothisProtocol shallbethedateofentry intoforce ofthisProtocol.
PartIII-Final Provisions
7. ThisProtocol shallbeopenforacceptance, bysignature orotherwise, byLithuania until.........
8. ThisProtocol shallenter intoforce onthethirtieth dayfollowing thedayofitsacceptance.
9. ThisProtocol shallbedeposited withtheDirector-General oftheWTO. TheDirector-General
oftheWTO shallpromptly furnish acertified copyofthisProtocol andanotification ofacceptance
thereto pursuant toparagraph 7toeachmember oftheWTO andLithuania.
10. ThisProtocol shallberegistered inaccordance withtheprovisions ofArticle 102oftheCharter
oftheUnited Nations.
11. Done atGeneva this...dayof....onethousand ninehundred andninety seven, inasingle
copyintheEnglish, French andSpanish languages eachtextbeing authentic, except thataSchedule
annexed hereto mayspecify thatitisauthentic inonlyoneormore ofthese languages.WT/ACC/SPEC/LTU/6
Page40
Annexes
[tobecompleted]WT/ACC/SPEC/LTU/6
Page41
Annex I
Laws, regulations andother information provided totheWorking Party byLithuania
- LawonEnterprises of8May1990, No.I-196;
- LawonPrices of26July1990, No.I-413;
- LawonTaxes onProfits ofLegal Persons of31July1990, No.I-442;
- LawonPartnerships of16October 1990, No.I-676;
- LawonForeign Investment intheRepublic ofLithuania of29December 1990, No.I-905;
- LawonTaxes onState Natural Resources of21March 1991, No.I-1163;
- LawonSpheres ofBusiness Activity wherein Foreign Investment isProhibited orLimited
of2May1991, No.I-1276;
- LawonSmall Enterprises of20December 1991, No.I-2125;
- LawonCompetition of15September 1992, No.I-2878;
- LawonEnterprise Bankruptcy of15September 1992, No.I-2880;
- LawonCustoms Tariffs of27April 1993, No.I-138;
- Cooperative Lawof1June1993, No.I-164;
- LawonTrademarks andService Marks of3June1993, No.I-173;
- LawonForeign Currency intheRepublic ofLithuania of7July1993, No.I-202;
- LawonValue-Added-Tax of22December 1993, No.I-345;
- Patent Lawof18January 1994, No.I-372;
- LawontheCredibility oftheLitas of17March 1994;
- LawonExcise Taxes of12April 1994, No.I-429;
- Company Lawof5July1994, No.I-528;
- Government Decision onRegistration ofRepresentation Offices ofForeign Enterprises and
Banks intheRepublic ofLithuania of31May1991, No.223;
- Government Decision onVeterinary andSanitary Requirements onLivestock, theirProducts,
RawMaterials andFodder Imported totheRepublic ofLithuania andTransported asTransit
through itsTerritory of27April 1993, No.284;
- Government Decision ontheApproval ofVegetable Quarantine Regulations forImport and
Export ofGoods ofVegetable Origin toandfromtheRepublic ofLithuania andtheirTransit
through theTerritory oftheRepublic ofLithuania of3August 1993, No.599;
- Government Decision onMore Stringent Regulations onPurchase andSaleofWaste andScrap
ofFerrous Metals of23May1994, No.388;WT/ACC/SPEC/LTU/6
Page42
- Government Decision onOrder ofPurchase intheRepublic ofLithuania, Re-melting ofExport
ofCopper andother Non-ferrous Metals, theirAlloys, Scrap andWaste of29June1994,
No.526;
- Government Decision ontheProcedure ofCommodity Export andImport Regulation inthe
Republic ofLithuania of14October 1994, No.985;
- Newexcise duties (January 1995);
- LawontheAmendment andSupplement totheCivil Code oftheRepublic ofLithuania,
No.I-459, 17May1994 (provisions oncopyright);
- LawontheFundamentals ofFreeEconomic Zones, No.I-976, 28June1995;
- LawonPrivatization ofState-Owned andMunicipal Property, No.I-1001, 4July1995;
- LawConcerning Control ofImport, Transit andExport ofStrategic Goods andTechnologies,
No.I-1022, 5July1995;
- Agreement between theGovernment oftheKingdom ofNorway andtheGovernment ofthe
Republic ofLithuania concerning Trade inAgricultural Products;
- FreeTrade Agreement between theSwiss Confederation andtheRepublic ofLithuania;
- FreeTrade Agreement between theRepublic ofEstonia, theRepublic ofLatvia andtheRepublic
ofLithuania;
- Agreement onFreeTrade-Related Matters between theEuropean Community, theEuropean
Atomic Energy Community andtheEuropean CoalandSteel Community, oftheonepart,
andtheRepublic ofLithuania, oftheother part;
- ScheduleoftariffsapprovedbytheLithuanianGovernment'sResolutionNo.443(16June1993);
- Statistical dataonimports intoLithuania ofagricultural andfoodproducts;
- Statistical dataonexports from Lithuania ofagricultural andfoodproducts;
- Memorandum ofEconomic Policies oftheGovernment oftheRepublic ofLithuania forthe
period 1October 1994 and30September 1997;
- GovernmentResolutionNo.281"OnPartialAmendmentstoResolutionNo.985"OnProcedure
ofExport andImport Regulation intheRepublic ofLithuania" adopted bytheGovernment
oftheRepublic ofLithuania on14October 1994" of28February 1995;
- LawonCommercial Banks No.I-720 of21December 1994;
- LawonStateRegulation ofEconomic Relations inAgriculture No.I-734 of22December 1994;
- LawonTrade No.I-747 of12January 1995;
- LawonAlcohol Control No.I-857 of18April 1995 (asamended by3July1995);
- LawonSugar No.I-867 of27April 1995;
- LawonForeign Capital Investment intheRepublic ofLithuania No.I-938 of13June1995;WT/ACC/SPEC/LTU/6
Page43
- Government Resolution No.35OntheApproval oftheOrder ofFoodstuffs Imported into
theRepublic ofLithuania andtheirQuality Control of9January 1995;
- Government Resolution No.510OnApproving Provisional Regulations ofGovernment
Procurement of12April 1995;
- Government Resolution No.511OnApproving Regulations ofRendering Services of
12April 1995;
- Government Resolution No.635OntheGeneral Order oftheAdministration ofTariff Quotas
forImplementation andExportation ofGoods of8May1995;
- Government Resolution No.718OntheRestriction ofImport ofCertain Things (Goods) to
theRepublic ofLithuania, theirExport andTransit of19May1995;
- LawonIndustrial Design No.I-1006 of4July1995;
- Government Resolution No.205OnEnactment oftheFreeTrade Agreement between the
Republic ofLithuania andtheEuropean Community, theEuropean Atomic Energy Community,
andtheEuropean CoalandSteel Community of8February 1995;
- Government Resolution No.1221 OnLicensing Wholesale andRetail Trade inImport and
Export ofOilProducts andRetail Trade inLiquid Gasof14September 1995;
- Government Resolution No.1459Onlicensing Import, Wholesale andRetail Trade inAlcoholic
Products of17November 1995;
- Government Resolution No.1622 OnLicensing theProduction ofTobacco anditsProducts
andtheirImport intotheRepublic ofLithuania of27December 1995;
- LawonInsurance No.I-590 of20September 1990;
- LawonPlant Protection No.I-1069 of19October 1995;
- LawonCommunications No.I-1109 of30November 1995;
- LawonTobacco Control No.I-1143 of20December 1995;
- GovernmentResolutionNo.449"OntheApprovaloftheOrderofCustomsValuationofGoods"
of16June1993;
- Government Resolution No.1114"OntheApproval ofCustoms Duties ofBound Tariff Rates
fortheImported Goods" of26September 1996; and
- Regime ofImport/Export Regulation intheRepublic ofLithuania.WT/ACC/SPEC/LTU/6
Page44
[Table 1:Licensing ofbusiness activities inLithuania
Business Activity Licence Required
(1) prospecting ofnatural resources; Licence required for
domestic andforeign
interests. Licences for
activities (5),(17)and
(24)areavailable only
fordomestic interests.(2) theexploitation ofnatural resources;
(3) repair ofsports andhunting firearms, weapons;
(4) pharmaceutical activity;
(5) cultivation andsaleofcrops containing narcotic, highly
effective orpoisonous substances;
(6) production ofalcohol products;
(7) import ofalcohol products toLithuania, wholesale and
retail trade byalcohol products;
(8) providing ofmedical services, medical treatment and
hygiene practices;
(9) veterinary practice;
(10) lawyer practice, unless thelawsprovide otherwise;
(11) establishment ofeducational institutions, enterprises and
institutions engaged inthehealthiness activity;
(12) carrying outofgeodetic andtopographical works,
publishing andprinting oftopographical plans andmaps
aswellascartographic charts;
(13) activity bytheinternational transportation, unless thelaws
provide otherwise;
(14) production oftobacco products, import oftobacco
products toLithuania;
(15) purchasing andremelting ofcopper andother non-ferrous
metals, itsalloys, scrap andwaste inLithuania;
(16) tourism services;WT/ACC/SPEC/LTU/6
Page45
Business Activity Licence Required
(17) organizing oflotteries assigned forcharity andsupport
purposes;
(18) purchasing offerrous metals scrap anditswaste in
Lithuania;
(19) purchasing andprocessing ofprecious metals waste and
scrap;
(20) providing ofcommunication services using ofcommon
network oftelecommunications linesandstations;
(21) construction andexploitation oftheinstallations radiating
electromagnetic waves;
(22) researching, preservation andrestoration ofimmovable
cultural values; preparation oftheconditions, programmes
andprojects ofsuchworks; preservation andrestoration
ofmovable cultural values;
(23) projecting andconstruction oftheState roads;
(24) manufacturing, import andexport ofthenarcotics and
highly effective andpoisonous substances (which arenot
usedforpharmaceutical purposes), wholesale andretail
trade byitsinLithuania;
(25) import ofspecial foodstuff andfoodadditives, wholesale
trade byitsinLithuania;
(26) production ofseals, stamps, hunting knives;
(27) establishment oftheshooting-galleries andstands of
hunting shooting;
(28) trade bythetransport means onthecommission bases;
projecting, production, instillment, assembling and
exploitation oftheprotective fire-signalling;WT/ACC/SPEC/LTU/6
Page46
Business Activity Licence Required
(29) production, import, transportation, trade, usage, storage
andburying ofthechemical materials which can
harmfully acttheenvironment;
(30) commercial activity related withtheprecious metals and
jewels;
(31) mediation activity inthepublic turnover ofstock
exchange;
(32) stock exchange activity;
(33) investment andreinvestment tosecurities andtrade byits
asamain activity; possession oftheinvestments
companies property, unless thelawsprovide otherwise;
(34) import, export, wholesale andretail trade bytheoil
products; retail trade bytheliquefied gas;
(35) energetic activity;
(36) selling ofsports andhunting firearms, ammunition,
weapons, explosives andpyrotechnics;
(37) inventory oftheforests andpreparation oftheforestry
projects;
(38) export ofrawwood;
(39) theforwarding agent services providing intheairand
railway transport;
(40) ships tugging;
(41) rescuing andunderwater technical works;
(42) lockman services;
(43) fulfilment ofaudit;
(44) mediation services foragiving ajob;
(45) import andproduction ofbiological plants protection
measures andtrade byits;WT/ACC/SPEC/LTU/6
Page47
Business Activity Licence Required
(46) realestate activity;
(47) trade inantiquarian pieces;
(48) provision ofinsurance services.
(1) manufacturing ofweapons, ammunition andexplosives; Activities reserved for
State andspecial
enterprises(2) production ofsecurities, monetary signs andcoins, post-
stamps;
(3) transportation, usage orother activity related with
radioactive, nuclear material andwaste thereof.
(1) production, import ofthenarcotic andhighly effective and
poisonous substances, wholesale trade byits;Activities reserved for
State enterprises, local
enterprises andspecial
enterprises(2) production ofundenatured ethyl alcohol andalcohol
beverages which contain more than22percentofethyl
alcohol byvolume (thisrightisgiven onlytoState
enterprises unless theLawonAlcohol Control provides
otherwise);
(3) treatment ofpatients illwithinfectious diseases listed in
thespecial listofMinistry ofHealth Care;
(4) treatment ofanimals illwithespecially dangerous
diseases;
(5) postwork (only theState enterprise "Lietuvos pastas");
(6) accepting andpaying offofpostal orders (only theState
enterprises "Lietuvos pastas");
(7) production, import andrealization ofthehighly effective
substances which arenotofmedicinal destination.
(1) toexploit railway, ports, airports andState roads; Activities with
minimum 50percent
State ownershipWT/ACC/SPEC/LTU/6
Page48
Business Activity Licence Required
(2) toexploit gas-pipes, pipelines, communication lines,
electric transmission lines, heatnetwork ofState
importance andtoensure technical functioning ofsuch
objects.
]WT/ACC/SPEC/LTU/6
Page49
[Table 2:General tariff quotas applied byLithuania *
HScode Description ofgroup ofgoods Ministry issuing quotas
0101 11,0102 10,
0103 10,0104 1010,
0104 2010Pure-bred breeding animals Ministry ofAgriculture
0105 11,0105 1910,
0105 1990Pure-bred breeding poultry
0106 0010,
0106 0090Other livepure-bred breeding
animals
0201, 0202, 0203 Meat ofbovine animals, pork
0301 91-0301 9919 Pure-bred breeding fish
0405 Butter
0407 0011,
0407 0019Pure-bred breeding birds’eggs
forhatching
0511 9950,
0511 9980Semen ofstallions, boars, ram,
he-goats, embryo ofbovine
animals
0701 Potatoes
10 Cereals
1101 Wheat flour
1104,1214 9091,
1214 9099Compound feed
1107 10 Malt, notroasted
1502 Fatsofbovine animals, sheep or
goatsWT/ACC/SPEC/LTU/6
Page50
HScode Description ofgroup ofgoods Ministry issuing quotas
1701 1110-
1701 1290Rawsugar, forrefining Ministry ofAgriculture
Ministry ofIndustry andTrade
1701 91,1702 30,
1704 40,1702 90Sugar forspecial purposes** Ministry ofAgriculture
Ministry ofHealth Care
1701 99 Sugar Ministry ofAgriculture
Ministry ofIndustry andTrade
2207 10 Technical ethyl alcohol Ministry ofIndustry andTrade
2207.20 Denatured ethyl alcohol Ministry ofIndustry andTrade
Ministry ofAgriculture
2204 29,2204 30,2205
90,2206 0081,
2206 0089,2207,
12.2208 10,2208 2040,
2208 2062,2208 9035,
2208 9038,2208 9071
-2208 9079,
2208 9099Alcoholic beverages, theirraw
material incontainers for
industrial processingMinistry ofAgriculture
ex7010 90100 Preserving jarsofglass of0.35
and3litreMinistry ofAgriculture
Ministry ofConstruction and
Urban Development
7010 9041-7010 9047Irregular transparent glass
bottlesMinistry ofAgriculture
9401, 9403 Special furniture forships Ministry ofTransport
*Inaccordance withGovernment Resolution No.985(14October 1994) asrevised byGovernment
Resolution No.281(28February 1995) andamendments byGovernment Resolutions No.715
(19May1995), No.1014 (20July1995), No.1369(20October 1995) No.515(30April 1996) and
No.716(18June1996).
**Sugar formedical andother special cases; notforconsumers orthefoodindustry.]WT/ACC/SPEC/LTU/6
Page51
[Table 3:Excise taxes levied inLithuania
Commodity
CodeCommodity Taxes
(percentoftaxable value*)
2207.10.00.0;
2208**Undenatured ethyl alcohol andalcoholic
beverages, except meads,champagne, wine
andbeer40,butnotlessthan0.3LTL
per1percentofalcoholic
strength byvolume perone
litre
2208.90.69.1 Meads 40,butnotlessthan0.2LTL
per1percentofalcoholic
strength byvolume perone
litre
2204.21.21.0 -
2204.21.29.0,
2204.29.21.0 -
-2204.29.29.0,
2204.30, 2206Wine ofalcoholic strength byvolume of13
percentvol,andother fermented
beverages***25,butnotlessthan0.12
LTLper1percentof
alcoholic strength byvolume
peronelitre
2204.21.31.0 -
-2204.21.49.0,
2204.29.31.0 -
-2204.29.49.0,
2205.10.10.0,
2205.90.10.0Wine andvermouth ofalcoholic strength by
volume ofmore than13percentvol,butnot
exceeding 18percent vol40,butnotlessthan0.15
LTLper1percentof
alcoholic strength byvolume
peronelitre
2204.21.51.0 -
-2204.21.90.0,
2204.29.51.0 -
-2204.29.90.0,
2205.10.90.0,
2205.90.90.0Wine andvermouth ofalcoholic strength by
volume exceeding 18percentvol40,butnotlessthan0.25
LTLper1percentof
alcoholic strength byvolume
peronelitreWT/ACC/SPEC/LTU/6
Page52
Commodity
CodeCommodity Taxes
(percentoftaxable value*)
2204.10,
2204.21.10.0,
2204.29.10.0Champagne andwineofincreased pressure 25,butnotlessthan0.25
LTLper1percentof
alcoholic strength byvolume
peronelitre
2203 Beer 15,butnotlessthan0.4
LTL/litre****
2402.20.00.0 Cigarettes withfilters:
cigarettes ofthehighest quality made in
Lithuania andimported22,butnotlessthan15LTL
for1,000 units
2402.20.00.0 Cigarettes (“Kaunas ”,“Klaipeda ”,
“Kastytis ”,“Armada ”,etc.)ofalower
quality made inLithuania22,butnotlessthan8LTL
per1,000 units
2402.20.00.0 Cigarettes without filters 22,butnotlessthan5LTL
per1,000 units
2402.10.00.0,
2402.90.00.0,
2403*****Packed smoking tobacco andother tobacco
products50
2710.00.51.0,
2710.00.37.0Motor fuel/petrol 70,butnotlessthan560LTL
perton******
2710.00.51.0,
2710.00.55.0,
2710.00.69.0Jetfuel,kerosene, gasoils(diesel fuel),
liquid furnace fuel25,butnotlessthan190LTL
perton******
2710.00.87.0 -
-2710.00.98.0Alltypes oflubricating oilsexcept forfuel
oilM-100 classified inthefollowing
subheading 2710.00.98.08,butnotlessthan180LTL
perton
1806.20.10.0 -
-1806.20.80.0,
1806.31 -
-1806.90Chocolate andother foodproducts containing
cocoa, except cocoa powder andproducts
containing lessthan18percentbyweight of
cocoa butter10WT/ACC/SPEC/LTU/6
Page53
Commodity
CodeCommodity Taxes
(percentoftaxable value*)
0901 Coffee 10
7113, 7114,
7116Articles ofjewellery andparts thereof, of
precious metal orofmetal cladwithprecious
metals, articles ofgoldsmiths ’or
silversmiths ’wares andparts thereof, of
precious metals ormetal cladwithprecious
metals, articles ofnatural orcultured pearls,
precious orsemi-precious stones-natural,
synthetic orreconstructed10
ex.8703 Luxury motor cars, notolder than5years
(except forspecial cars) specified inthelist
ofState Agency ofCompetition and
Consumer Rights Protection under the
Government ofLithuania15ofprice exceeding
LTL60,000
2716.00.00.0 Electricity 1
ex.4901-4911,
ex.9504.40.00.0Erotic andviolence propagating publications 50
* Thetaxable value shallbe:
- salesprice excluding excise taxandVAT forcommodities produced inLithuania;
- customs value, including duties, forimported commodities.
** Commodity codes arepresented according totheCombined Nomenclature oftheEuropean
Economic Community.
*** Excluding beverages (code 2205 00890)produced bythecompany "Lietuviskas midus"
**** Excise tax-0.2LTLperoneliter-shallbelevied onbeerproduced andrealised byeach
Lithuanian beermanufacturing company producing 100thousand decalitres peryear.
***** Excise taxshall notbelevied ontobacco (code 2403.10.90.0)imported bythejoint-stock
company “Philip Morris Lietuva ”andbythecompany “House ofPrince Lietuva ”.
****** Absolute excise tariffs only(inLTLperton)shallbeapplied onoilproducts manufactured
bythejointstock company “Mazeikiu nafta”.From 1August 1995excise shallbenotapplied
onjetfuel(code 2710.00.51.0) imported byjointstock companies “Lietuvos avialinijos ”and
“Lietuva ”andpurchased from thejointstock company “Mazeikiu nafta”.WT/ACC/SPEC/LTU/6
Page54
Table 4:Rates ofExport Duties
HScode Commodity description Tariff rate
(percent)
0206.29.10.1,
0206.29.99.1Lungs usedinproduction ofpharmaceutical products*
60
0505.10 Feathers forstuffing; down 60
0510.00.10.1,
0510.00.10.3Glands andother organs usedinpharmaceutical
products* 60
3001.10.90-3001.90.91 Glands andorgans usedinorgano-therapeutical uses* 60
4101, 4103 Rawhides andskin 60
4403.20.00.1 Unprocessed pinetimber ofdiameter notlessthan20cm
60
4403.91 Unprocessed oaktimber 60
4403.99.80.1 Unprocessed ashtimber 60
4403.99.80.2 Unprocessed birch timber ofdiameter notlessthan20cm
60
* Under quotas granted bytheMinistry ofHealth theexport ofsuchproducts isduty-free.