WORLD TRADE
ORGANIZATIONG/SCM/N/1/LTU/1
8 August 2002
(02-4353)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
NOTIFICATION OF LAWS AND REGULATIONS
UNDER ARTICLE 32.6 OF THE AGREEMENT
LITHUANIA
The following communication, dated 2 August 2002, has been received from the Permanent
Mission of Lithuania.
_______________
Pursuant to Article 32.6 of the Agreement on Subsidies and Countervailing Measures, the
Permanent Mission of Lithuania has the honour to submit the legislation of Lithuania:
- Law on Countervailing Duties, adopted on 23 May 2000 (No. V III-1695).G/SCM/N/1/LTU/1
Page 2
Official translation
REPUBLIC OF LITHUANIA
LAW ON COUNTERVAILING DUTIES
23 May 2000 No. VIII.-1695
Vilnius
CHAPTER ONE
General Provisions
Article 1. Purpose of the Law
The purpose of this Law is to provide legal conditions for the protection of domestic
producers against the imports of products subsidized by a foreign country, if such imports cause
injury to domestic producers.
Article 2. Main Definitions Used in this Law
1. “ Subsidy ” means a direct or indirect purposive financial contribution by the government in
the country of origin or export for the acquisition of fixed or current assets, production, export or
transport of a product, price undercutting of produc ts in the market, support of various programmes,
grants to cover enterprise debt repayment or to co ver losses sustained  by enterprises and for similar
purposes.
2. “ Countervailable subsidy” means a subsidy, which is specific to a producer or exporter or a
group of certain producers or exporters, or a certain industry or a group of industries; or a subsidy
contingent upon export performance, or a subsidy contingent upon the use of domestic over imported
goods.  The above subsidies, if granted in respect of products imported into the customs territory ofthe Republic of Lithuania, make them eligible for the countervailing duty.
3. “ Non-countervailable subsidy”  means a subsidy which is not specific or a subsidy which is
specific but meets the conditions of Article 6 of this Law.  The above subsidies, if granted in respect
of products imported into the customs territory of the Republic of Lithuania, shall not make themeligible for the countervailing duty.
4. “ Injury to domestic producers ” (hereinafter - injury)  means a material injury to domestic
producers, resulting from import of subsidized products, or threat of material  injury or material
retardation of the establishment of the production of the like product in Lithuania.
5. “Threat of injury ” means material injury which, based on positive evidence, is foreseeably
imminent to domestic producers if countervailing duty is not applied or the undertaking accepted
under Article 23 of this Law is not complied with.
6. “ Retardation of the establishment of industry of the like product in  Lithuania ” means
retardation of the establishment in Lithuanian of the production of the like product, which would nothave developed if the imports were not subsidized by foreign states.
7. “ Domestic producers ”  means Lithuanian producers as a whole of the like product or  those
whose collective output of the product constitutes a major portion (over 50 per cent) of the totalG/SCM/N/1/LTU/1
Page 3
production of such products in the customs territory of the Republic of Lithuania, as provided for in
Article 8 of this Law.
8. “ Product in question ” means the product imported into the customs territory of the Republic
of Lithuania, which is suspected of being a subsidized product.
9. “ Subsidized product ”  means the product which is imported into the customs territory of the
Republic of Lithuania, which has been granted a subsidy by a foreign state.
10. “ Like product ” means a product which is identical or alike in all respects to the product in
question imported into the customs territory of the Republic of Lithuania.  In the absence of identical
product, another product which has characteristics closely resembling those of the product in question.
11. “ Customs territory  of the Republic of Lithuania ” means the territory of the Republic of
Lithuania, bordered by the customs boundaries of the Republic of Lithuania, unless the international
agreements of the Republic of Lithuania provide otherwise.  For the purpose of this Law, products
located in the free economic zone shall be considered as located outside the boundaries of the customsterritory of the Republic of Lithuania.
12.  “ Customs boundaries  of the Republic of Lithuania ” means the border of the customs
territory of the Republic of Lithuania coinciding w ith the state border of the Republic of Lithuania,
except when otherwise provided for by the international treaties to which the Republic of Lithuania  isa party.
13. “ Countervailing duty ” means the duty which may be applied to imports subsidized with
countervailable subsidies, if upon the release of such products for free circulation in the customs
territory of the Republic of Lithuania injury is caused to domestic producers.
14. “ Provisional countervailing duty ” means the duty which is imposed during the period of
investigation in respect of subsidized imports (her einafter - investigation), when its is determined
preliminarily that imported products are being subsidized with countervailable subsidies and cause
injury to domestic producers.
15. “ Interested parties ” in respect of the procedures related to the calculation and imposition of
countervailing duties means:
(1) the Lithuanian producers of the like product (including potential producers) or associations,
the majority of the members  of which are Lithuanian producers of the like product;
(2) importers of the product in question, foreign producers or exporters, or associations the
majority of members of which are importers or foreign producers or exporters of the product;
(3) the government of the country of origin of the product in question or the country from which
the product in question is imported (hereinafter - of the country of origin or the exportingcountry);
(4) enterprises, which use the product in question for the production of their products in the
customs territory of the Republic of Lithuania;
(5) the Government of the Republic of Lithuania or other government body;
(6) Lithuanian consumer protection organizations (public).G/SCM/N/1/LTU/1
Page 4
16. “ Exporter ” means an economic operator of the country of origin or export, who is selling the
subsidized product (product in question) to the natural or legal person of the Republic of Lithuania or
its enterprise without legal personality, or who has concluded any other contract with any of the above
operators for the supply of the subsidized product (product in question).
17. “ Importer ” means an economic operator of the Republic of Lithuania who has purchased the
subsidized product (product in question) from a legal or natural person of the country of origin or
export or any other economic operator without legal personality of the above countries or has
concluded with the enterprise of the country of origin or exporting country any other contract for the
supply of the subsidized product (product in question).
18. “ Developing country ” for the purpose of this Law means a country included in the
appropriate list of countries, approved by the Government of the Republic of Lithuania or the body
authorized by it.
Article 3. Government Bodies in Charge of the Implementation of this Law
1. The Law on Countervailing Duties shall be implemented by the Government of the Republic
of Lithuania and the body authorized by it.
2. The body authorized by the Government of the Republic of Lithuania  (hereinafter referred to
as the Body) shall carry out investigation, perform selections, accept undertakings, supervisecompliance with the undertakings, carry out reviews of the imposed countervailing duties and
accepted undertakings and fulfil other functions laid down in this Law or prescribed by the
Government of the Republic of Lithuania, take decisions on whether or not to initiate the
investigation, suspend the investigation, limit the sc ope of investigation or terminate the investigation,
accept an undertaking or refuse accepting same, carry out a review of the countervailing duty or anundertaking, submit proposals to the Government of the Republic of Lithuania on the imposition of
the provisional countervailing duty, imposition of the countervailing duty, continued imposition of the
countervailing duty or revocation of the countervailing duty as a result of a review, the changing of
the rate of the countervailing duty and refund of the countervailing duty.
3. The Government of the Republic of Lithuania shall adopt decisions to impose the provisional
countervailing duty or the countervailing duty, to extend the imposition of the duty or to repeal it(following a review), to change the rate of the countervailing duty and to refund the countervailing
duty.
CHAPTER TWO
Subsidies
Article 4. Existence of a Subsidy
1. A subsidy shall be deemed to exist if at least one of the conditions provided for in paragraph 2
of this Article is met and a benefit has thereby been conferred on the recipient foreign producer or
exporter.
2. The government of the country of origin or export or any other government body provides a
financial contribution by:G/SCM/N/1/LTU/1
Page 5
(1) a direct transfer of funds (for example, grants, loans, equity infusions, etc.) as well as
provision of conditions for a potential direct transfer of funds or take-over of liabilities to
third parties to the contract (for example, by giving loan guarantees); or
(2) not collecting or deferring the collection of government revenue (for example, fiscal
incentives such as tax credits). However the exemption of an exported product from duties or
taxes, borne by the like product when destined for domestic consumption, or the remission of
such duties and taxes in amounts not in excess of those which have accrued shall not be
deemed to be a subsidy, if this is established in the explanatory list of export subsidies
approved by the Government of the Republic of Lithuania or the body authorized by it;  or
(3) providing goods or services other than general infrastructure, or purchasing goods;(4) granting a direct transfer of funds for the implementation of certain programmes or entrusting
or directing a private entity to carry out one or more of the type of functions specified in
subparagraphs 1, 2, and 3 above which would normally be vested in the government or any
other government body of the country of origin or export;  or
(5) providing support to income or prices in any form thereby directly or indirectly increasing the
export of the product in question or reducing the import of the competitive product into the
country of origin or export.
Article 5. Countervailable Subsidies
1. Save for the exceptions specified in this Article , subsidies granted in the country of origin or
export shall be deemed countervailable only if they are specific.
2. It shall be deemed that a subsidy is specific if it has been granted specifically to a certain
producer or exporter or a group of certain producers or  exporters or to a certain industry or a group of
industries (hereinafter - certain enterprises) if the decisions of the government or other government
body of the country of origin or export, or the legislation governing the operation of  the government
or other government body explicitly limits access to a subsidy to certain enterprises.
3. If the government or other government body of the country of origin or export or the
legislation pursuant to which the government or other government body operates establishes objective
economic criteria or conditions governing the amount of  and eligibility for a subsidy and such criteria
and conditions are strictly adhered to, specificity shall not exist, provided that the eligibility is
automatic.  Objective criteria and conditions mean that they do not favour certain enterprises over
others and they are horizontal in application (account is taken of the number of employees or size ofenterprise, but not the type of production, etc.)  Such criteria and conditions must be clearly set out by
law, regulation or other legislation of the country of origin or export.
4. If pursuant to paragraphs 2 and 3 of this Article the subsidy is not specific, in order to
determine whether it is countervailable the following factors shall be taken into consideration:
(1) use of a subsidy programme by a limited number of certain enterprises;(2) the length of time during which  a subsidy programme has been in operation;
(3) the granting of disproportionately large amounts of subsidy to certain enterprises;
(4) the manner in which discretion has been exercized by the government or other government
body of the country of origin or export in the decision to grant a subsidy and in the selectionG/SCM/N/1/LTU/1
Page 6
of eligible enterprises, taking into consider ation the frequency with which applications for
subsidies are approved or refused and the reasons of such decisions, etc.
5. A subsidy which is limited to certain enterprises located within a designated geographical
region within the jurisdiction of the granting government body shall be deemed specific, with theexception of setting and changing of generally applicable tax rates by all levels of government
authorities.
6. Notwithstanding the provisions of the paragraphs 2, 3, 4 and 5 of this Article pursuant to
which a subsidy is not specific, the following subsidies shall be deemed countervailable:
(1) subsidies contingent, in law or in fact, (whether solely or as one of several other conditions)
upon export performance, including the subsidies listed in the illustrative list of export
subsidies, approved by the Government of the Republic of Lithuania  or the competent
authority.  Subsidies shall be considered to be contingent in fact upon export performance
when the facts demonstrate that the granting of a subsidy, without having been made
contingent upon export performance in the laws or other legislation of the country of origin orexport, is in fact tied to actual or anticipated exportation or export earnings.  The mere fact
that a subsidy is accorded to enterprises which export shall not for that reason alone be
considered to be an export subsidy;
(2) subsidies contingent solely (or as one of several other conditions) upon the use in the country
of origin of the product in question of domestic over imported goods.
Article 6. Non-countervailable Subsidies
1. Subsidies granted in the country of origin or export shall be deemed non-countervailable if
they meet at least one of the following conditions:
(1) subsidies which are not specific within the meaning of Article 5 of this Law;(2) subsidies which are specific, within the meaning of Article 5 of this Law, but which meet the
conditions provided for in paragraphs 2, 3 and 4 of this Article;
(3) subsidies which constitute an element of government support measures to agriculture.  The
list of support measures granted to agriculture of foreign countries shall be approved by the
Government of the Republic of Lithuania or other competent  authority.
2. Subsidies to disadvantaged region (regions) within the territory of the country of origin or
export, given pursuant to a general framework of regional development (when regional subsidy
programmes are part of an internally consistent and generally applicable regional development policy)
may be considered to be non –specific if the criteria laid down  in paragraphs 2, 3, 4 and 5  of
Article 5 of this Law were applied not to the entire  country of origin or export, but to an individual
eligible region (regions) concerned. Such subsidies shall be deemed non-countervailable, providedthat all of the conditions set forth below are met:
(1) a disadvantaged region is a clearly designated geographical area with a definable economic
and administrative identity;
(2) the region is regarded as disadvantaged on the basis of neutral and objective criteria (which
do not favour certain regions beyond what is appropriate for the elimination or reduction of
regional disparities), indicating that the region’s difficulties arise out of more than temporary
circumstances.  Such criteria must be clearly spelled out by law, regulation or any otherG/SCM/N/1/LTU/1
Page 7
official document of the country of origin or export in question, so as to be capable of
verification;
(3) the criteria mentioned in subparagraph 2 of this paragraph must include a measurement of
economic development, based on at least one of the following  factors, as measured  over theperiod of three years:
(a) average income per capita or household income or GDP per capita in the region,
which must not be above 85 per cent of the average for the territory of the country of
origin or export concerned;
(b) unemployment rate in the region, which must be at least 110 per cent of the average
for the territory of the country of origin or export concerned.
3. Subsidies intended to promote adaptation of existing facilities which have been in operation
for at least two years, to new environmental requirements imposed by laws or regulations of the
country of origin or export concerned, which result in greater constraints and financial burden onfirms shall not be deemed countervailing, provided that such subsidies:
(1) are a one-off non-recurring measure;(2) are limited to 20 per cent of the cost of adaptation;(3) do not cover the cost of replacing and operating the subsidized investment, which must be
fully borne by the firms;
(4) are directly linked to and proportionate to a firm’s planned reduction of nuisance and
pollution, and not cover any manufacturing cost savings which may be achieved;  and
(5) are available to all firms which can adopt new equipment or production processes.4. Subsidies for research activities conducted by firms or by higher education or research
establishments on a contract basis with firms (with the exception of civil aircraft) shall not be deemed
countervailable subsidies, if the subsidies cover not more than 75 per cent of the costs of industrialresearch (planned research or critical investigation aimed at discovery of new knowledge, with the
objective that such knowledge may be useful in developing new products, processor services, or in
bringing about a significant improvement to products, processes or services) or 50 per cent of the
costs of pre-competitive development activity, provided that such subsidies are limited exclusively to:
(1) wages costs of researchers, technicians and other supporting staff employed exclusively in the
research activities;
(2) costs of acquisition and use of instruments, equipment, land and buildings used exclusively
for the research activity , except when disposed of on a commercial basis;
(3) costs of consultancy and equivalent services used exclusively for the research activity,
including bought-in research, technical knowledge, patents, etc.;
(4) additional overhead costs incurred directly as a result of the research activity;(5) other running costs (such as those of materials, supplies and the like) incurred directly as a
result of the research activity.G/SCM/N/1/LTU/1
Page 8
5. Pre-competitive development activity, mentioned in paragraph 4 of this Article, means the
translation of industrial research findings into a plan, blueprint or design for new, modified or
improved products, processes or services, whether intended for sale or for use.  Pre-competitive
development activity also includes the creation of a first prototype which would not be capable of
commercial use.  It may also include the creation of alternative products, processes or services andinitial demonstration and pilot projects, provided that they cannot be used for commercial
exploitation. It does not include routine or periodic alterations to existing products, production lines,
manufacturing processes, services, and other ongoing operations even though those alterations may
represent improvements.
6. Allowable levels of non-countervailable subsidy indicated in paragraph 4 of this Article shall
be established by reference to the total eligible costs incurred over the duration of an individualproject. In the case of programmes which span both industrial research and pre-competitive
development activity the allowable level of non-countervailable subsidy must not exceed the simple
average of the allowable levels of non-countervailable subsidy applicable to the above two categories,
calculated on the basis of all costs indicated in all subparagraphs of paragraph 4 of this Article.
CHAPTER THREE
Injury to Domestic Producers
Article 7. Determination of Injury
1. A determination of injury  shall be based on positive evidence and on the objective
examination of the volume of the imports of the product in question and the effects thereof on the
prices of the like products in Lithuanian market and the impact of those imports on domesticproducers.
2. With regard to the volume of the imports of the product in question, consideration shall be
given to whether there has been a significant increa se in such imports, either in absolute terms or
relative to production and consumption of the like product in the customs territory of the Republic of
Lithuania.  With regard to the effect of the imports  of the product in question on the prices of the like
product, consideration must be given to whether  there has been a significant price undercutting by theimports of the product in question as compared with the price of the like product of the domestic
producers, or whether the effect of such imports is otherwise to depress prices to a significant degree
or prevent price increases (which would otherwise have occurred).
3. Where imports of a product in question from more than one country of origin or export are
simultaneously subject to investigation, the effect s of such imports shall be cumulatively assessed
(without investigating individually the effect of the imports of the product in question from each
country of origin or export concerned) only if is determined that:
(1) the amount of countervailable subsidies established in relation to the imports from each
country of origin or export is more than the minimum set in paragraph 4 of Article 11 of this
Law and the volume of imports from each country is not de minimis  according to paragraph 5
of Article 11 of this Law;
(2) a cumulative assessment of the effects of the imports is appropriate in light of the conditions
of competition between imported products and the like products of domestic producers.G/SCM/N/1/LTU/1
Page 9
4. The examination of the impact of the imports of the product in question on domestic
producers shall include an evaluation of all relevant economic factors and indices having a bearing on
the state of domestic producers (domestic industry), including:
(1) the fact that the domestic industry is still in the process of recovering from the effects of past
subsidization or dumping,  the amount of countervailable subsidies, actual and potential
decline in sales, profits, output, market share,  productivity, return on investments, utilization
of capacity of the domestic industry producing a like product;
(2) factors affecting prices of the like  product in the customs territory of the Republic of
Lithuania;
(3) actual and potential negative effects on the increase of production of the like product in the
customs territory of the Republic of Lithuania,  inventories of the like product, cash flow,
employment, wages, growth, ability to raise capital or investments and in the case of
agriculture – an increased burden on support programmes of the Government of the Republic
of Lithuania.
5. All the relevant evidence that proves injury must demonstrate that the import of the product in
question, namely the volume of imports and/or  price level , determined in accordance with
paragraph 2 of this Article are responsible for a negative impact on domestic producers and that this
impact exists to a degree which enables it to be classified as injury.
6. In order to ensure that injury caused by these other factors is not attributed to the imports of
the product in question, known factors (other than imports of the product in question), which at the
same time are causing injury to domestic producers must also be examined in the course of the
investigation.  Factors which may be considered in this respect include the prices and volume of non-subsidized imports, contraction in demand or changes in the patterns of consumption of the like
product, restrictive trade practices, competition between foreign enterprises and domestic producers,
developments in technology, the productivity of domestic producers and the decrease in the export
performance of the domestic industry of the like product.
7. The effect of the product in question must be assessed in relation to the production of
domestic industry of the like product in the customs territory of the Republic of Lithuania whenavailable data permit the separate identification of that production on the basis of such criteria as
production volume and costs, producers’ sales and profits.
8. A threat of injury or retardation of the establishment of the production of the like product in
the customs territory of the Republic of Lithuania must be based on facts. In making a determinationregarding the existence of a threat of material injury, consideration should be given to, inter alia , such
factors as:
(1) the nature of the subsidy (subsidies) in question and the trade effects likely to arise therefrom;
(2) a significant rate of increase of imports of the product in question;
(3) freely disposable capacity of the exporter or an imminent substantial increase in such capacity
indicating the likelihood of substantially increased imports of the product in question into the
customs territory of the Republic of Lithuania.  In this respect the existence and availability tothe exporter of other potential export markets to absorb any additional exports must also be
taken into account;G/SCM/N/1/LTU/1
Page 10
(4) whether the imports of the product in question are entering at prices that would, to a
significant degree, depress, in the Lithuanian market, prices of the like product produced by
domestic producers or prevent price increases (which would otherwise have occurred), and
would probably increase demand for further import of the product in question;
(5) inventories of the product in question in the customs territory of the Republic of Lithuania.
9. None of the factors listed in paragraphs 2, 4 and 8 of this Article by itself can give a decisive
guidance, but the totality of the factors considered  must lead to the conclusion that further import of
the product in question is imminent and that, unless countervailing duty is imposed, material injury
will occur.
Article 8. Definition of Domestic Producers
1. For the purposes of this Law, the term “domestic producers” shall be interpreted as referring
to the Lithuanian producers as a whole of the like pr oduct or to those of them whose collective output
of the product constitutes a major proportion (over 50 per cent) of the total production of the productin the customs territory of the Republic of Lithuania.  When the Lithuanian producers of the like
product are related to the exporters or importers or are themselves importers of the product in
question, for determining whether the volume of collective output  of certain a group of producers
constitutes a major portion of the total production of the product in question in the customs territory of
the Republic of Lithuania, the volume of output of such group of producers shall be disregarded. Inthis case the definition of “domestic producers” shall not apply to them.
2. Lithuanian producers shall be considered to be related to exporters or importers if any of the
conditions given below is met:
(1) one of them directly or indirectly controls the other;
(2) both of them are directly or indirectly controlled by a third person;(3) together they directly or indirectly control a third party, provided that there are grounds to
believe that the effect of the relationship is such as to cause the producer related to the
exporter or importer of the product in question to behave differently from non-relatedproducers.
3. One enterprise shall be deemed to control another when, according to the Law of the Republic
of Lithuania on Competition, the former is legally or operationally in a position to exercise restraint or
direction over the latter.
4. In exceptional circumstances, for the purpose of the examination of the production of the like
product, the customs territory of the Republic of Lithuania may be divided into two or more markets.
In each of these markets the domestic producers of the like product may be regarded as a separate
domestic producer if the conditions stated below are met:
(1) the producers within such a market sell in the market at least 80 per cent of their production
of the like product;
(2) the producers within the remaining part of the customs territory of the Republic of Lithuania
do not sell the like product  in that market or sell less than 20 per cent of the total volume of
the like product.G/SCM/N/1/LTU/1
Page 11
5. In circumstances referred to in paragraph 4 of this Article, injury may be found to exist (even
where major part of the total number of domestic producers in the customs territory of the Republic of
Lithuania is not injured), provided that there is a concentration of imports of the product in question in
such separate market and causes injury to domestic producers which produce not less that 80 per cent
of the volume of output of the like product in such market.
CHAPTER FOUR
EVIDENCE OF A COUNTERVAILABLE SUBSIDY
Article 9. Initiation of Investigation
1. An investigation to determine the existence of imports of the subsidized product, the amount
of a countervailable subsidy and its effect upon the domestic producers shall be initiated when the
competent authority receives a written application of domestic producers, meeting the requirements
set forth in paragraph 1 of Article 10 of this Law.
2. Where an application has been lodged by a producer of the like product whose output
constitutes less than 50 per cent of the total production  of the like product in the customs territory of
the Republic of Lithuania, written applications of other domestic producers of the like products,
expressing support for the applications to initiate the investigation, must also be lodged with thecompetent  authority  together with the above applications for investigation.  In addition to other
information, a description of the volume and value of the like product production accounted for by
each of the above producers in the customs territory of the Republic of Lithuania must be indicated in
the application for the investigation or in the application expressing support.  The application for
investigation shall be considered to have been made by domestic producers provided it is supportedby domestic producers whose collective output of the like product constitutes a major portion of the
total production of such product in the customs territory of the Republic of Lithuania (including the
production of the like product by the applicant).
3. If, for objective reasons,  the applicant appears to be not in the position to lodge a sufficient
number of applications by other domestic producers, expressing support for the application to initiate
the investigation, the competent  authority  may with in 30 days from the receipt of the application for
the investigation question in writing the domestic producers of the like product whether they support
or oppose the application. In this case, the application for investigation shall be considered to have
been lodged by domestic producers if it is supported by over 50 per cent of the questioned domestic
producers of the like product, whose collective output of the like product in the customs territory of
the Republic of Lithuania (including the production of the like product by the applicant himself)constitutes at least 25 per cent of total production of the like product in the customs territory of the
Republic of Lithuania .
4. In exceptional circumstances, where the investig ation may not be initiated on the application
of domestic producers, the competent  authority  may initiate the investigation upon obtaininginformation from the association representing domes tic producers or the ministry within whose sphere
of regulation is the production of the like product and the information contains the evidence indicated
in Article 10 of this Law which is required to justify the conduct of the investigation.
Article 10. An Application to Conduct the Investigation
1. An application to conduct the investigation must include evidence of the existence of
countervailable subsidy granted to the product in question (indicating, if possible, the amount of theG/SCM/N/1/LTU/1
Page 12
subsidy), injury and a causal link between the imports of the product in question and injury.  The
application must contain such information (as is available to the applicant) on the following:
(1) full name and address of the applicant/applicants in case of a natural person (in case of a legal
person or enterprise without legal personality - the name and address of its head office) and adescription of the volume and value of the production in the customs territory of the Republic
of Lithuania of the like product by the applicant and each local producer who expressed
support for the application to conduct the investigation, indicating what portion it accounts for
in the total output of the like product in the customs territory of the Republic of Lithuania;
(2) a complete description of the product in question so as it would be possible to classify it
according to the Combined Customs Tariffs and Foreign Trade Statistical Nomenclature ofthe Republic of Lithuania;
(3) the names of the countries of origin or export of the product in question(4) the names of all known foreign producers and exporters of the product in question;(5) the lists of all known importers of the product in question;(6) evidence proving the subsidization of the product in question, the amount, nature and
countervailability of the subsidy;
(7) information on changes in the volume of the import of the product in question, the effect of
the import on prices of the like product in the Lithuanian market and the consequent impact
on domestic producers (including the economic factors and indices, having a bearing on the
state of domestic producers, referred to in paragraphs 2 and 4 of Article 7 of this Law).
2. In addition to the information specified in paragraph 1 of this Article, other information
containing sufficient evidence of the reasonableness of the application may be filed alongside with the
application to conduct the investigation.
3. The information regarding the received application shall not be publicized until the decision
to initiate investigation is adopted. Before initia ting the investigation and in the case specified in
paragraph 4 of Article 9 of this Law, the competent  authority  shall notify the governments of the
countries of origin or export of the product in question of the received application to conduct the
investigation in order to be able to consult them with the aim of clarifying the data and facts referred
to in paragraph 1 of this Article and reach a solution mutually agreed by the Republic of Lithuania
and the country of origin or export of the product in question.  A delay in the consultations shall notpreclude the competent  authority  from initiating the investigation.
Article 11. Consideration of an Application for the Investigation
1. Upon receipt of an application to conduct the investigation, the competent  authority  shall
review the accuracy and adequacy of the evidence provided in the application to determine whether
the evidence is sufficient to justify the initiation of an investigation.
2. Having examined the evidence provided in the application, the investigation may be carried
out also in order to determine whether an alleged subsidy granted to the product in question iscountervailable or non-countervailable.
3. If upon the examination of evidence provided in the application it becomes evident that the
lodged application does not meet the requirements set forth in paragraph 1 of Article 10 or that theG/SCM/N/1/LTU/1
Page 13
submitted evidence of countervailable subsidy is no sufficient evidence of countervailable subsidy
and injury to justify the investigation, the competent  authority  shall notify the applicant (applicants)
thereof indicating the shortcomings and fixing the time limit for the elimination thereof.  In the event
of failure by the applicant to eliminate the shortcomings by the time limit fixed by the competent
authority , the latter shall adopt a decision not to initiate the investigation.
4. The investigation shall not be carried out if the amount of the countervailable subsidy is
de minimis , i.e. when it constitutes less than 1 per cent of the value of the subsidized imports of the
products in question.  As regards investigations concerning imports from developing countries, the de
minimis threshold shall be less than 2 per cent ad valorem  of the imported products in question, and
for those developing countries which are members of the WTO the de minimis  subsidy threshold shall
be less than  3 per cent ad valorem .
5. An investigation shall not be carried out concerning imports of the product in question from
the country of export, imports of the product in question from which accounts for less than 1 per cent
of the Lithuanian market share, with the exception of cases when the total volume of imports from all
such exporting countries accounts for 3 per cent or more of the Lithuanian market share.  Theinvestigation shall not be carried out if the volume of imports of the product in question from a
developing country constitutes less than 4 per cent of the total volume of the imports of the product in
question into the customs territory of the Republic of Lithuania, with the exception of cases when
such imports from each developing country separately do not exceed 4 per cent and from all
developing countries together constitute more than 9 per cent of the total volume of the imports of theproduct in question into the customs territory of the Republic of Lithuania.  If the imports of the
product in question are not in excess of the volume indicated in this paragraph, it shall be deemed that
the injury is negligible.
6. If the application is withdrawn by the applicant (applicants) prior to the adoption of the
decision to initiate investigation, it shall be deemed that the application has not been lodged.
7. The competent  authority  shall take into account the possibilities of the interested parties to
present the required information and, without viol ating the principle of impartiality, provide all
assistance possible to facilitate the furnishing of information.
Article 12. Adoption of the Decision to Initiate Investigation
1. The competent  authority, having examined whether the application received and information
furnished is sufficient to initiate investigation, shall not later than within 45 calendar days from the
receipt of the application adopt a decision  to initiate an investigation or refrain from doing same and
notify the applicant (applicants) thereof.
2. If the application to carry out the investigation is lodged by domestic producers and it meets
the requirements laid down in paragraph 1 of Article 10 of this Law and not a single  condition
referred to in paragraphs 3, 4, 5 and 6 of Article 11 of this Law is satisfied, the competent authority
shall adopt the decision to initiate investigation. In the opposite case the application shall be refused.
3. The decision of the competent authority to initia te the investigation shall be published in the
official gazette “ Valstybės žinios ”.
4. Upon the adoption of the decision not to initiate  the investigation following the receipt of the
application for the investigation, the competent authority shall notify the applicant (applicants)
thereof.G/SCM/N/1/LTU/1
Page 14
5. When the competent authority adopts a decision to initiate the investigation, all the interested
parties known to be concerned with the results of the investigation must be notified thereof.  Without
prejudice to the provisions of Article 42 of this Law, the text of the application based whereon the
investigation is carried out must be submitted to the known foreign producers or exporters of the
product in question and to the governments of the country of origin or export, and must be availableupon request to other interested parties involved.  Where the number of foreign producers or exporters
of the product in question is particularly high, the text of the  application to initiate the investigation
may be provided only to the governments of the country of origin or export of the product in question
and to the trade associations representing the relevant foreign producers or exporters of the product in
question.
6. When the competent authority adopts a decision to initiate the investigation the exporters and
importers of the product in question, also the governments of the country of origin or export and other
interested parties may submit the evidence within the time limit set in the decision of the competent
authority .
7. Upon adopting a decision to initiate the invest igation the competent authority  shall apply to
the Customs Department under the Ministry of Finance of the Republic of Lithuania with a request to
collect detailed information about the imports of the product in question.
8. The procedure of import of the product in question must not be halted or restricted by reason
of the investigation in progress.
Article 13. Duration of the Investigation
Where possible, the investigation must be concluded within one year. In any case the duration
of the investigation may not exceed 13 months from  the day of adoption by the competent authority of
the decision to conduct the investigation.
Article 14. The Course of the Investigation
1. Following the adoption of the decision to conduct the investigation, questionnaires shall be
provided to all known interested parties, indicating what information is required for investigation.
2. The interested parties which have received questionnaires must be given at least 30 calendar
days to reply.  For the foreign producers and exporters of the product in question this time limit shall
be counted from the date of receipt of the questionnaire.  A foreign producer or exporter shall be
deemed to have received the questionnaire one week from the day on which it was sent or delivered to
the diplomatic mission of the appropriate country of origin or export of the product in question inquestion.  The competent authority may extend the time limit for the reply of the questionnaire,
having taken due account of the time limits of investigation, provided that the interested party shows
due cause for such extension, in terms of its particular circumstances.
3. In the course of investigation, normally  information covering the most recent  financial
accounting period of the foreign producer or exporter of the product in question is examined.  Any
other period of at least six months prior to the adoption of the decision to initiate the investigation, for
which  reliable financial and other relevant data is  available may also be selected for examination.
The time period to be subjected to examination in th e course of investigation shall be indicated in the
decision of the competent authority to conduct the investigation.
4. During the investigation the evidence of both subsidies and of injury shall be considered
simultaneously.G/SCM/N/1/LTU/1
Page 15
5. The competent authority shall conduct the investigation on the basis of the available and
obtained information as well as written information submitted by the interested parties.
6. If the information submitted by the applicant (applicants) and other interested party, as well as
information obtained from other sources is contradictory, the competent authority may address thegovernments of the country of origin or export of the product in question with a request to conduct an
investigation in their territory and having received their consent and the consent of enterprises
involved in the investigation (foreign producer or exporter of the product in question), carry out such
investigation.  The investigation in the territory of the country of origin or export shall be carried out
in accordance with the procedure  established by the Government of the Republic of Lithuania or the
competent authority.
7. The competent authority, on the basis of the provisions of paragraph 6 of this Article, may
arrange verification visits to the places of business of the enterprises involved in the investigation in
order to verify the information (primary data and documents) submitted by the foreign producers,
exporters, importers of the product in question, traders (or their representatives), trade associations
representing them and information provided on subsidies and injury.  Such visits shall be possibleonly if the replies to the questionnaire were submitted properly and in due time.  Prior to such  visits,
relevant enterprises shall be informed of the nature  of the information to be verified and any further
information which needs to be provided during such visits.  This should not preclude requests made
during the verification for further details in the light of information obtained.  At the request of the
competent authority, in the course of on-site inspections, it may be assisted by the officials of thecountry of origin or export, in which the inspection is performed.
8. If the interested party refuses access to or otherwise does not provide necessary information,
or provides it after the expiry of all time limits or it is established that the interested party has
provided false information, false information shall be disregarded and findings shall be based on thatpart of the submitted information and other available information which is considered as reliable by
the competent authority, including the evidence r eceived from other accessible independent sources.
The interested  parties shall be warned in writing that in case of their failure to submit information or
their delayed submission of information or submission of false information, the findings of the
investigation may be based on the available information, also evidence and documents submitted by
other interested parties.
9. Failure to give a computerized response shall not be considered to constitute non-cooperation,
provided that the interested party shows that pres enting the response as requested would result in an
unreasonable extra burden or additional cost.
10. If the information submitted by the interested party is not ideal in all respects, provided that
any deficiencies are not such as to cause undue difficulty in using it and it is verifiable, and that the
party has acted to the best of its ability, such information shall not be disregarded.
11. If evidence or information submitted by the interested party is not accepted, the supplying
interested party must be informed of the reasons therefore and be granted the opportunity to providefurther explanations and revised information within the time limit specified by the competent
authority.  If the explanations and revised information are considered insufficient, the reasons for
rejection of such evidence or information must be  given in the decision adopted by the competent
authority.
12. Information, supplied by the interested parties, on which investigation findings are based
must be checked, taking into consideration the time limits of the investigation and possibilities, by
reference to information from other interested parties or information from other independent sourcesG/SCM/N/1/LTU/1
Page 16
(published price lists, official import statistics and customs returns, etc.) received in the course of the
investigation.
13. The competent authority shall have to hear the arguments and explanations of the interested
parties, which submitted a written application to the effect within the time limits specified by thecompetent authority in the decision to initiate the inve stigation.  It must be indicated in the application
how the interested party which submitted the application may be affected by investigation result and
for what other particular reasons it should be heard.
14. If the interested party so requests, the compet ent authority shall arrange consultations for the
interested parties.  There shall be no obligation on any interested party to attend consultations.
15. Without prejudice to the provisions of Article 42 of this Law, the interested party, upon
submission of a written request, may familiarise itself with the information relating to the
investigation, provided by other interested parties, which is taken into account by the competent
authority in the course of the investigation.  The interested party may supply its arguments and
explanations relative to the information submitted by the other interested party, however regard shallbe given only in respect of well substantiated explanations.
16. Throughout the investigation the competent authority must afford the country of origin or
export of the product in question a possibility to continue consultations with a view to clarifying the
factual situation and arriving at a solution mutually agreed by the Republic of Lithuania and thecountry of origin or export of the product in question.
Article 15. General Provisions on the Calculation of the Amount of the Countervailable
Subsidy
1. The amount of  countervailable subsidy shall be calculated in terms of the benefit conferred
on the recipient (foreign producer or exporter of the product in question) which is found to exist
during the investigation period.
2. The amount of the countervailable subsidies shall be determined per unit of the product in
question imported to the customs territory of the Republic of Lithuania.  If the interested party
requests  and submits necessary evidence, in establishing the amount of the countervailable subsidy,the following elements may be deducted from the total subsidy:
(1) all fees or other costs necessarily incurred in order to qualify for, or to obtain the subsidy;(2) export taxes, duties and other charges levied on the export of the product in question into the
customs territory of the Republic of Lithuania, if they are specifically intended to offset the
subsidy.
3. Where the subsidy is not granted by reference to the quantities manufactured, processed,
exported, or transported, the amount of the countervailable subsidy shall be determined by allocatingthe value of the total subsidy, as appropriate, over the level of production, sales or exports of the
product in question during the investigation period.
4. Where the subsidy can be linked to the acquisition or future acquisition of fixed assets, the
amount of the countervailable subsidy shall be calculated by spreading the subsidy across a periodwhich reflects the normal depreciation of such assets in the industry concerned.  The amount so
calculated which is attributable to the investiga tion period, including that which derives from fixed
assets acquired before this period, shall be allocated as described in paragraph 3 of this Article.  The
subsidy intended for the acquisition of the fixed assets which are non- depreciating, shall be valued asG/SCM/N/1/LTU/1
Page 17
an interest free loan extended by the government, and be calculated in accordance with subparagraph
2 of paragraph 1 of Article 16.
5. Where a subsidy cannot be linked to the acquisition of fixed assets, the amount of the benefit
received during the investigation period shall in principle be attributed to this period and allocated asdescribed in paragraph 3 of this Article, unless special circumstances arise justifying attribution of the
granted subsidy and the benefit received over a different period.
6. The methodology of calculating the amount of the countervailable subsidy and the benefit
conferred thereby to the recipient shall worked out by the Government of the Republic of Lithuania
or the competent authority .
Article 16. Calculation of Benefit Conferred by the Countervailable Subsidy to the
Recipient
The benefit to the recipient (foreign producer and exporter of the product in question)
conferred by a countervailable subsidy shall be calculated in accordance with the methodologyworked out by the Government of the Republic of Lithuania or the competent authority, and the
following rules:
(1) government provision of equity capital shall not be considered to confer benefit, unless the
investment can be regarded as inconsistent with the usual investment practice (including forthe provision of risk capital) of private investors in the territory of the country of origin or
export of the product in question;
(2) a loan by the government shall not be consider ed to confer benefit, unless there is a difference
between the amount that the enterprise receivin g a loan pays on the government loan and the
amount that the enterprise would pay for a comparable commercial loan which the enterprise
could actually obtain on the market of the country of origin or export of the product in
question.  In that event the benefit shal l be the difference between these two amounts;
(3) a loan guaranteed by the government shall not be considered to confer a benefit, unless there
is a difference between the amount that the enterprise receiving the guarantee pays on a loan
guaranteed by the government and the amount that the enterprise would pay in the absence ofthe government guarantee.  In this case the be nefit shall be the difference between these two
amounts, adjusted for any differences in loan servicing fees;
(4) the provision of goods and services or purchasing of the products in question by a government
shall not be considered to confer a benefit, unless the provision is made for less than adequateremuneration or the purchase is made for more than adequate remuneration.  The adequacy of
remuneration shall be determined in relation to prevailing market conditions for the product
or services in question in the country of provision or purchase by a government (the
prevailing prices, quality, availability, marketability, also transportation and other conditions
of purchase).
Article 17. Sampling
1. In cases where the number of applications to initiate the investigation, the exporters or
importers, types of the product in question or transactions relating to the product is large, theinvestigation may be limited.
2. The investigation may be limited to:G/SCM/N/1/LTU/1
Page 18
(1) a reasonable number of domestic producers of the like product, importers, foreign producers
and exporters of the product in question, products and transactions to be assessed during the
investigation by using samples;
(2) to the largest representative volume of the production, sales, or imports into the customs
territory of the Republic of Lithuania from  the exporting country of the product in question
which can reasonably be investigated within the investigation period.
3. The samples of enterprises, products or transactions indicated in subparagraph 1 of paragraph
2 of this Article must be statistically valid on the basis of information available at the time of the
selection.  Decision concerning sampling shall be adopted by the competent authority.  Preference
shall be given to choosing a sample in consultation with and with the consent of, the interested parties,provided that such parties make sufficient inform ation available, within three weeks of initiation of
the investigation, to enable a re presentative sampling to be chosen.
4. In cases where the investigation has been limited in accordance with this Article, an
individual amount of countervailable  subsidization shall, nevertheless, be calculated for any foreign
producer or exporter of the product in question not initially selected who submits the necessary
information within the time limits enabling its ex amination during the investigation, except where the
number of exporters or producers is so large that individual examinations would be unduly
burdensome and would prevent completion of the investigation in due time.
5. If after the selection of the samples, there is a degree of non-cooperation or refusal to supply
the information necessary for the investigation by some  or all of the interested parties selected which
is likely to materially affect the outcome of the investigation, a new sample must be selected.
However, if a material degree of non-cooperation persists or there is insufficient time to select, the
provisions of paragraphs 8, 9, 10, 11,  and 12 of Article 14 of this Law shall apply.
Article 18. Conclusion  of Investigation
1. The investigation shall be concluded:
(1) if the existence of a countervailable subsidy and injury has been affirmed and the resolution
of the Government of the Republic of Lithuania has been adopted to impose a countervailingduty and the rate of the duty has been established;
(2) if, taking into account the countervailable subsidy, scope of injury and the interest of the
Republic of Lithuania it has been decided not to impose a countervailing duty;
(3) if in the course of investigation it has been established that there is no countervailable subsidy
or injury,  or that in accordance with paragraphs 4 and 5 of Article 11 of this Article they are
negligible and the competent authority has adop ted a decision to terminate the investigation
without recommending the Government of th e Republic of Lithuania  to impose the
countervailing duty;
(4) upon the withdrawal of the application by the applicant (applicants) and when the competent
authority determines that the termination of investigation without imposing countervailing
duties is in the interest of the Republic of Lithuania.
2. The competent authority must publish in the official gazette “ Valstybės žinios ” a  notice of its
intention to adopt a decision to terminate the investigation without recommending the Government of
the Republic of Lithuania to impose the countervailing duty.  Taking into account the provisions ofG/SCM/N/1/LTU/1
Page 19
Article 13 of this Law, the notice must be published not later than 45 calendar days prior to the
ad(option of the decision to terminate the investigation.
3. The interested parties may request that they be supplied with detailed information about the
principal facts and reasons based whereon the competent authority intends to make a decision toterminate the investigation without recommending the Government of the Republic of Lithuania to
impose the countervailing duty.  Such a request must be submitted to the competent authority in
writing within 15 calendar days from the publication of the notice specified in paragraph 2 of this
Article.  The competent authority must within 30 calendar days from the publication of the above
notice reply in writing to the above requests. If the competent authority has no possibility to notify of
certain facts and reasons, these must be communicated at the earliest possibility.  Communication of
the above facts and reasons to the interested parties shall not hinder any further decision which thecompetent authority may adopt.  However, if such a decision is based on any other facts and reasons,
the interested parties must be forthwith notified thereof.
4. The representations, opinions and commentaries of the interested parties submitted after the
disclosure of the principal facts and reasons shall be taken into consideration only in case these arereceived within the time period of not be less than 10 calendar days, set by the competent authority for
each specific case.
CHAPTER FIVE
IMPOSTITION OF PROVISIONAL COUNTERVAILING DUTY
Article 19. Terms and Conditions for the Imposition of Provisional Countervailing Duty
1. A provisional countervailing duty may be imposed on the product in question during the
investigation provided that the following conditions are satisfied:
(1) the investigation is carried out in accordance with the provisions set forth in Articles 9, 10, 11
and 12 of this Law;
(2) a notice has been given to that effect in acc ordance with the procedure laid down in this Law
and the interested parties have been given adequate opportunities to submit information and
make comments;
(3) a provisional affirmative determination has been made that the imported product benefits
from the countervailing subsidy and of consequent injury caused to domestic producers by theimports of the product in question;
(4) the imposition of provisional countervailing duty is in compliance with the interests of the
Republic of Lithuania and, in the opinion of the competent  authority ,  is necessary to prevent
injury being caused during the investigation.
2. However, if an anti-dumping duty (including  provisional anti-dumping duty) is imposed or
already applied in respect of the product in questi on for the purpose of eliminating injury to domestic
producers, the provisional countervailing duty may not be applied even though all the conditions
specified in paragraph 1 hereof are met.G/SCM/N/1/LTU/1
Page 20
Article 20. Taking a Decision to A pply a Provisional Countervailing Duty
1. Where all the requirements set forth in paragraph 1 of Article 19 of this Law have been
fulfilled and no anti-dumping duty (including provis ional anti-dumping duty) has been imposed on the
product in question, the Government of the Republic of Lithuania shall adopt a resolution to imposethe provisional countervailing duty. In addition to other information, the resolution must also specify
the amount of the provisional countervailing duty and the date from which it is to be applied.  As a
rule, the date shall be set no earlier than 30 calendar days after the adoption of the resolution by the
Government of the Republic of Lithuania.
2. The provisional countervailing duty shall be imposed no earlier than 60 calendar days from
and no later than 9 months after the taking of the decision by the competent authority to initiate theinvestigation.  Provisional countervailing duty shall be imposed for a maximum period of 4 months.
3. The amount of the provisional countervailing duty may not exceed the total amount of the
countervailable subsidy as provisionally established but it may be less than this amount, if such lesser
duty would be adequate to remove the injury to domestic producers.
Article 21. Imposition of the Provisional Countervailing Duty
1. The provisional countervailing duty shall be applied in respect of the imports of the products
in question which are released for free circulation in the customs territory of the Republic of Lithuaniafrom the date set in the resolution of the Govern ment of the Republic of Lithuania to apply the
provisional countervailing duty.
2. Where the facts as finally established upon the completion of investigation show, that no
injury has been caused or would have been caused even if the provisional countervailing duty had notbeen imposed, any collected amount of the provis ional countervailing duty must be refunded.  The
collected amount of the provisional countervailing duty shall be refunded in accordance with the
procedure established by the Law of the Republic of Lithuania on Customs Tariffs.
3. The provisional countervailing duty shall not be imposed on the products in question
imported from the countries of origin or export or from the foreign producers or exporters of the
product in question, whose undertakings under Article 23 of this Law have been accepted.
Article 22. Securing the Payment of the Provisional Countervailing Duty
The provisional countervailing duty on the imports of the products in question must be paid in
accordance with the procedure laid down by the Law of the Republic of Lithuania on Customs Tariffs.Failure to pay the countervailing duty or to pay the duty by the due date shall incur default interest on
the unpaid amount. The unpaid  amount of the countervailing duty and default interest shall be
recovered according to the procedure established by the Law of the Republic of Lithuania on Customs
Tariffs.
CHAPTER SIX
PROCEDURES FOR ACCEPTING UNDERTAKINGS
Article 23. Acceptance of Undertakings
1. During the investigation the government of the country of origin or export or the foreign
producer or exporter of the product in question may offer independent undertakings under which:G/SCM/N/1/LTU/1
Page 21
(1) the government of the country of origin or export of the product in question agrees to
eliminate or limit the subsidies or take other measures to compensate the effects of the
subsidies;
(2) the foreign producer or exporter of the product in question undertakes to increase its prices or
cease exports to the customs territory of the Republic of Lithuania as long as such exports
benefit from countervailable subsidies.
2. Price increases under such undertaking of the foreign producer or exporter must not be higher
than is necessary to offset the amount of countervailable subsidy and may be less than the amount of
countervailable subsidy if such increases would be adequate to remove the injury to domesticproducers.
3. The competent authority may suggest the government of the country of origin or export, or
the foreign producer or exporter of the product in question to offer undertakings, but the offering of
such undertakings shall not be binding.  The fact that the country of origin or export or the foreignproducer or exporter of the product in question does not offer such undertakings or does not enter into
the undertaking offered by the competent authority shall in no way prejudice consideration of the
case.
4. The competent authority may not suggest to offer undertakings or accept the offered
undertakings unless a provisional or affirmative determination of subsidization and injury caused by
such subsidization to domestic producers has been made.
5. The undertaking offered by the government of the county of origin or export or the foreign
producer or exporter of the product in question after the announcement of the competent authority ’ssuggestion that the Government of the Republic of Lithuania  impose the countervailing duty, shall
not be accepted except in cases when the competent authority decides to accept the undertaking due to
the special circumstances which arise in the Republic Lithuania or the exporting country.
6. The competent authority may refuse to accept the offered undertaking if the number of actual
or potential foreign producers or exporters of the product in question is too great, or for other reasons.
In such cases, if possible, the foreign producer or exporter of the product in question or thegovernment of the country of origin or export of  the product must be provided with the facts and
reasons for which it is proposed to reject the offer of an undertaking and be given an opportunity to
make comments thereon.  The competent authority,  however, must not take into consideration the
reasons for rejection.  The facts and reasons for rejection of the offered undertaking must be set out in
the definitive decision of the competent authority.
7. The undertakings accepted from certain foreign producers or exporters shall be deemed to
take effect from the date on which the investigation is concluded for all producers or exporters of the
country of origin or export of the product in question.
8. Where the competent authority accepts an undertaking, it may require to provide a non-
confidential version of the undertaking (in case the party concerned which provided the undertaking
indicated that the undertaking is confidential) so that it may be made available to other interested
parties.
Article 24. Actions Following the Acceptance of Undertaking
1. If, upon accepting the undertaking, the competent authority establishes that the undertaking is
adequate to offset the preliminarily or definitively determined countervailable subsidy and removeG/SCM/N/1/LTU/1
Page 22
injury to domestic producers, it shall terminate the investigation by its decision, except in cases
specified in paragraph 3 hereof.
2. Upon adoption by the competent authority of th e decision to terminate the investigation, the
calculation of its duration shall also be terminated.
3. If, having accepted the undertaking, the competent authority, taking into consideration the
insufficiency of the available information, makes a determination that the accepted undertaking is
inadequate to offset the subsidies and remove the inju ry or if the country of origin or export or the
foreign producer or exporter of the product in question, who offered the undertaking, so desires, the
investigation shall be continued.
4. In the cases specified in paragraph 3 hereof, when the undertaking has been accepted upon
preliminary determination of the countervailable subsidy and injury, and, after further investigation, a
negative determination of subsidization and injury is made, the undertaking shall lapse as from the
day of entry into force of the determination.  However, where negative determination of subsidization
and injury is due to the existence of the accepted undertaking, the competent authority may requirethat the undertaking be maintained.
5. In the event an affirmative determination of subsidization and injury is made, the undertaking
shall continue consistent with its terms.
Article 25. Supervision of Fulfilment  of the Undertaking
After the competent authority accepts the undertaking, the government of the country of
origin or export or the foreign producer or exporter from whom undertakings have been accepted must
periodically within the time limits set by the competent authority provide information relevant tofulfilment of such undertaking and permit verifica tion of pertinent data.  Non-compliance with such
requirements shall be construed as a breach of the undertaking.
Article 26. Non-fulfilment of Undertaking
1. In case of non-fulfilment of undertaking (breach or withdrawal of undertaking), if the
investigation has not been terminated upon acceptance of the undertaking and was continued andconcluded with a final determination as to subsidization and injury, the competent authority shall
submit the findings of the investigation to the Government of the Republic of Lithuania together with
its recommendations to impose a countervailing duty in respect of subsidized products imported from
the country of origin or export or the foreign producer or exporter of the product in question, which
committed a breach of or withdrew the undertaking.  Having examined the findings of theinvestigation submitted by the competent authority, the Government of the Republic of Lithuania in
accordance with the provisions of Articles 28, 29 and 30 of this Law shall adopt a decision to impose
a countervailing duty. Before the submission to the Government of the Republic of Lithuania of the
proposal to impose a countervailing duty, the foreign producer or exporter or the government of the
country of origin or export must be given an opportunity to comment, except in the case ofwithdrawal of the undertaking.
2. In the event of non-fulfilment of the undertaking where the investigation has been suspended
after the acceptance thereof, the Government of the Republic of Lithuania shall adopt a resolution in
accordance with the provisions of Articles 19, 20, 21 and 22 to impose a provisional countervailingduty and shall instruct the competent authority to continue the investigation.
3. In the case specified in paragraph 2 of this Article a provisional countervailing duty may be
imposed in respect of the products released for free circulation in the customs territory of the RepublicG/SCM/N/1/LTU/1
Page 23
of Lithuania not earlier than 90 calendar days prior to the imposition of the provisional duty, if
detailed information on the imports of the product in question has been accumulated in accordance
with paragraph 7 of  Article 12 of this Law.  However, countervailing duty may not be imposed in
respect of the products in question imported into the customs territory of the Republic of Lithuania
prior to the breach or withdrawal of the undertaking.
Article 27. Duration of Undertakings
The accepted undertaking must remain in force maintained as long as it is necessary to offset
the subsidy or remove injury to domestic producers.  Having carried out a review, the competent
authority shall decide on the need for the continued duration of the undertaking.  In any case an
accepted undertaking shall be terminated on a date not later than five years from the date of thedecision to accept the undertaking or from the date  of completion of the most recent review, taking
into account the provisions of paragraph 5 of Article 36 of this Law.
CHAPTER SEVEN
COUNTERVAILING DUTY AND ITS IMPOSITION
Article 28. Adopting a Resolution to Impose a Countervailing Duty
1. The Government of the Republic of Lithuania, having considered the findings of the
investigation and the proposals submitted by the competent authority, shall adopt a resolution whether
or not to impose a countervailing duty.  Where a provisional countervailing duty is in force in respect
of the product in question, a proposal for definitive countervailing duty must be submitted by the
competent authority to the Government of the Republic of Lithuania not later than one month beforethe expiry of the provisional countervailing duty.
2. Where the facts as finally established during the investigation show the existence of a
countervailable subsidy and injury and Lithuania’s national interest calls for the impositions of
countervailing duties, the Government of the Republic of Lithuania shall adopt a resolution to impose
a countervailing duty.  In addition to other information, the resolution of the Government of the
Republic of Lithuania  must establish the amount of the countervailing duty and specify the date fromwhich it shall be applied as well as the time limit of imposition of the duty.
3. Where, after the conduct of investigation the facts as finally established show that the
countervailing subsidy and/or injury are non-existent , the competent authority shall take a definitive
decision to complete the investigation without proposing to the Government of the Republic ofLithuania to apply a countervailing duty.
4. A determination as to whether Lithuania’s national interest calls for the imposition of a
countervailing duty should be based on an appraisal of all the various interests taken as a whole,
including the interests of domestic producers, the enterprises which use the subsidized product for themanufacture of their products, also the end users and importers as well as traders.  In determining
whether or not the imposition of the countervailing duty is in Lithuania’s national interest, special
consideration must be given to the need to eliminate trade-distorting effects of injurious subsidization
and to restore effective competition.
5. Before the competent authority submits a proposal to the Government of the Republic of
Lithuania regarding the imposition of a countervailing duty or  makes a decision to complete the
investigation without proposing to impose a countervailing duty, the interested parties (economic
operators of the Republic of Lithuania) must be given the opportunity to state their opinion andG/SCM/N/1/LTU/1
Page 24
arguments on the issue established in paragraph 4 of this Article.  However, the decision shall be
taken only based on the information supported by actual evidence.
Article 29. Imposition  of a Countervailing Duty
1. A countervailing duty shall be imposed on subsidized imports released for free circulation in
the customs territory of the Republic of Lithuania from the date specified in the resolution of the
Republic of Lithuania to impose the countervailing duty, except in cases specified in Article 32 of this
Law.
2. A countervailing duty shall not be imposed on the subsidized products imported from the
country of origin or export of the subsidized product or from the foreign producer or exporter fromwhich an undertaking has been accepted according to the procedure established by this Law.
3. In the event of failure by foreign producer or exporter of the subsidized product or the
government of the country of origin or export of the subsidized product to offer an appropriate
undertaking by the due date or to fulfil the accepted undertaking, a countervailing duty (provisionalcountervailing duty) may be imposed under Article 26 of this Law on the subsidized imports (of
products in question).
4. A countervailing duty (provisional countervailing duty) shall be imposed regardless of other
duties, taxes or levies generally imposed on subsidized imports (of products in question).  In case ananti-dumping (provisional anti-dumping duty) has been imposed or is in force with respect to one and
the same product in order to remove injury to domestic producers, the imports of the product may not
be subject to a countervailing duty.
5. Countervailing duties on imports must be paid in accordance with the procedure laid down by
the Law of the Republic of Lithuania on Customs Tariffs. Failure to pay the countervailing duty or to
pay the duty by the due date shall incur default interest.  The unpaid amount of the countervailing
duty and default interest shall be recovered in accordance with the procedure laid down by the Law of
the Republic of Lithuania on Customs Tariffs.
Article 30. Amount of Countervailing Duty
1. In its resolution to apply countervailing duty the Government of the Republic of Lithuania
must impose a countervailing duty on the subsidized imports from foreign producer or exporter in the
appropriate amounts in each case.  Where it is impracticable to specify the duty for each supplier, the
amount of the countervailing duty shall be established on subsidized imports individually according to
the country of origin or export of the product.
2. The amount of the countervailing duty must not  exceed the amount of countervailable subsidy
from which the foreign producer or exporter has been found to benefit, and may be less than the total
amount of countervailable subsidy, if such lesser duty were to be adequate to remove the injury to
domestic producers.
3. When the examination has been limited in accordance with Article 17 of this Law, any
countervailing duty applied to imports from exporters or producers which were not included in the
examination shall not exceed the weighted average amount of countervailable subsidy established for
the parties in the sample.  In this case any de minimis  amounts of countervailable subsidy under
paragraph 4 of Article 11 and amounts of countervailable subsidy established in the circumstances
referred to in paragraph 8 of Article 14 of this Law must not be taken into account.  Individual duties
must be imposed on imports from any foreign producer or exporter for which an individual amount ofG/SCM/N/1/LTU/1
Page 25
subsidization has been calculated, except in cases when the amount of duty is established for the
country of origin or export.
Article 31. Accelerated Reviews
1. Any foreign producer or exporter whose exports are subject to a definitive countervailing duty
but who has not been individually examined during the original investigation for reasons other than a
refusal to cooperate with or provide information to the competent authority shall be entitled, upon
request, to an accelerated review in order that an individual countervailing duty rate be promptly
establish.
2. The accelerated review specified in paragraph 1 hereof shall be initiated after the competent
authority makes a decision to carry out the review.  Domestic producers must be notified thereof in
writing and be given an opportunity to comment within a 20-day period counting from the day of
sending of the notice.
3. Accelerated reviews must be carried out on a fa st track basis and may not last longer than 12
months.
4. Unless this Article provides otherwise, requirements laid down for the conduct of
investigation in Articles 11, 12, 14, 15, 16, 17, 18 and 28 of this Law must be applied to accelerated
review procedures and evidence.  In addition, paragr aphs 4 and 5 of Article 36 shall also be applicable
in respect of the reviews.
Article 32. Retroactivity
1. Where a provisional countervailing duty has been applied and the facts, finally established
following the investigation show the existence of countervailable subsidies and injury to domestic
producers, the Government of the Republic of Lithuania may adopt a resolution to impose the
countervailing duty retroactively upon the products imported during the investigation.  For this
purpose, “injury” shall not include threat of injury to domestic producers, nor material retardation of
the establishment of the domestic industry in Lithuania, except where it is found that, in the absence
of provisional measures, this would have developed into material injury.  In all other cases involving
such threat of injury or retardation of the establishment of the domestic industry in Lithuaniacountervailing duties may not be imposed retroactively on the products imported during the
investigation whereas the paid amounts of the countervailing duty must be refunded in accordance
with the procedure laid down in the Law of the Republic of Lithuania  on Customs Tariffs.  The above
provisions must not restrict the application of provisions of paragraph 4 hereof.
2. If in the case specified in paragraph 1 hereof the countervailing duty imposed retroactively on
the products imported during the investigation is higher than the paid or payable amount of
provisional countervailing duty, the difference shall not be collected.  If the countervailing duty
imposed is lower than the provisional countervailing duty paid or payable on the imported products,
the amount of the payable provisional countervailing duty must be recalculated and the overpaymentmust be refunded in accordance with the procedure la id down in the Law of the Republic of Lithuania
on Customs Tariffs.
3. If upon the completion of investigation a definitive determination is made that no injury has
been made or would have been made even in the absence of provisional countervailing duty and it hasbeen decided not to impose the countervailing duty, it shall not be imposed retroactively on the
products  imported during the investigation either.  The provisional duty paid for the period must be
refunded in accordance with the procedure laid down in the Law of the Republic of Lithuania on
Customs Tariffs and any bonds deposited with the customs must be released.G/SCM/N/1/LTU/1
Page 26
4. A definitive countervailing duty may be levied on subsidized imports which were released
for free circulation in the customs territory of the Republic of Lithuania at least 90 calendar days prior
to the date of imposition of provisional countervailing duty and not before the adoption of the
decision by the competent authority regarding th e initiation of investigation, provided that all
following conditions are satisfied:
(1) detailed information about imports of the product in question has been collected pursuant to
paragraph 7 of Article 12 of this Law;;
(2) there are critical circumstances where injury which is difficult to repair is caused by massive
imports in a relatively short period of the product in question and the competent authoritydeems it necessary, in order to preclude the recurrence of such injury, to impose a
countervailing duty;
(3) the importers have been given an opportunity to comment on the issue.
Article 33. Refund of Countervailing Duty
1. An importer may request reimbursement of the total amount or part of the countervailing duty
collected where it is shown that the countervailable subsidy has been eliminated or that the amount of
countervailable subsidies on the basis of which the countervailing duty was imposed and paid hasbeen reduced to a level which is below the level of the countervailing duty in force.
2. In requesting a refund of the countervailing duty or part thereof, which exceeds the amount of
countervailable subsidy, the importer must submit to the competent authority a justified application
supported by evidence.
3. An application for refund of the countervailing duty or a part thereof which is in excess of the
countervailable subsidy may be submitted within one year from the day of payment (recovery) of the
duty, but not later than within six months from the day of expiry of time period for which the
countervailing duty was imposed by the resolution of the Government of the Republic of Lithuania.
4. Where the countervailing duty was paid on the products imported during the investigation
retroactively (in the cases specified in Article 32 of this Law), an application for refund of the
countervailing duty or part thereof which is in excess of the countervailable subsidy may be submitted
within six months from the day of entry into fo rce of the resolution of the Government of the
Republic of Lithuania to impose a countervailing duty on the products retroactively.
5. An application for refund shall be considered to be duly supported by evidence only when it
is accompanied by:
(1) precise information on the amount of refund of the countervailing duty claimed;
(2) the customs declaration and other customs documentation relating to the calculation and
payment of the claimed amount (specifying the territorial customs which collected the
countervailing duty);
(3) evidence, for a representative period, of the countervailable subsidies and the amount thereof,
granted for the foreign producer or exporter;
(4) in cases where the importer is not associated with the foreign producer or exporter on the
products imported from which a countervailing duty is imposed and the information specifiedG/SCM/N/1/LTU/1
Page 27
in subparagraphs 3 hereof is not immediately available, or where the foreign producer or
exporter is unwilling to release the information to the importer, the application shall contain a
statement from the foreign producer or exporter that the countervailable subsidy has been
eliminated or its amount has been reduced  and that the relevant supporting evidence will be
provided directly to the competent authority.
6. Where, in the cases specified in subparagraph 4 of paragraph 5 hereof,  the evidence that the
countervailable subsidy has been  eliminated or its  amount reduced is not forthcoming from the
foreign producer or exporter within 2 months of th e submission of the application for the refund of the
countervailing duty, the importer’s application shall be rejected.
7. Upon examining the submitted evidence, the co mpetent authority must decide whether it is
sufficient to justify the refund of the paid countervailing duty or part thereof, or whether it is
necessary to initiate a review of the imposed countervailing duty.  The review shall be carried out in
accordance with the provisions of paragraph 4 of Article 36 of this Law.  Upon examining the
findings from such review, the Government of the Republic of Lithuania shall adopt a resolution to
refund the countervailing duty or part thereof and determine to what extent a refund is justified.
8. The Government of the Republic of Lithuania must adopt a resolution to refund the
countervailing duty or part thereof within 2 months after the date of submission of the application and
all evidence and documentation specified in paragraphs 2 and 5 hereof.  The payment of any refund
authorized must be made within 90 calendar days of the entry into force of the above-mentioned
decision of the Government of the Republic of Lithuania.  Other procedures relating to the refund of
countervailing duty shall be carried out in the manner prescribed by the Law of the Republic of
Lithuania  on Customs Tariffs.
9. The competent authority shall, within 15 calendar days from the entry into force of the
resolution of the Government of the Republic of Lithuania to refund the countervailing duty or part
thereof, notify the Customs Department under the Ministry of Finance thereof and shall submit
information specifying the name, address (registered office address) and identification code of the
economic operator to whom the countervailing duty or part thereof is refundable; numbers and dates
of customs declarations based whereon the countervailing duty has been collected; the amount of the
refund authorized (in figures and in words).
10. In the cases not specified in paragraph 1 hereof a countervailing duty or part thereof shall be
refunded in accordance with the procedure laid down in the Law of the Republic of Lithuania on
Customs Tariffs.
Article 34. Duration of Countervailing Duty
A countervailing duty must remain in force only as long and to the extent necessary to
counteract subsidization which is causing injury to domestic producers.  The need for the continued
imposition of the countervailing duty shall be determined upon assessing the findings of the review
carried out in accordance with the provisions of Chapter eight of this Law.  In any case acountervailing duty shall remain in force not longer  than five years from the date of the resolution
adopted by the Government of the Republic of Li thuania to impose the countervailing duty or, where
reviews have been carried out, from the date of completion of the most recent review which
confirmed the necessity of continued imposition of the countervailing duty.G/SCM/N/1/LTU/1
Page 28
CHAPTER EIGHT
REVIEWS OF THE IMPOSITION OF COUNTERVAILING DUTIES OR
MAINTENANCE OF UNDERTAKINGS
Article 35. Initiating a Review of the Imposition of a Countervailing Duty or Maintenance
of Undertaking
1. A review of the imposition of a countervailing duty or maintenance of an undertaking shall be
carried out:
(1) upon the lapse of the 5-year period of duration of the countervailing duty or undertaking as
established under Articles 27 and 34 of this Law, on the initiative of the competent authority
or upon a duly substantiated request made by domestic producers, where the request is
supported by sufficient evidence that the expiry of a countervailing duty or undertaking would
be likely to result in a continuation or recurrence of subsidization or injury.  The application
may be submitted at least 3 months prior to the expiry of the 5-year period of imposition of acountervailing duty or maintenance of an undertaking;
(2) on a request made by domestic producers, supported by evidence that the amount of the
imposed countervailing duty or accepted undertaking is not sufficient to offset the
countervailable subsidy.  The request may be lodged not earlier than 12 months after the datethe Government of the Republic of Lithuania adopts a resolution to impose a countervailing
duty or the competent authority decides to accept an undertaking, except in the case specified
in subparagraph 5 hereof;
(3) on a request made by the importers, foreign producers, exporters or the government of the
country of origin or export of the product in question, supported by the evidence that the
countervailing duty or undertaking is no longer needed to offset the countervailable subsidies
and that the expiry of the countervailing duty or release from an  undertaking or reduction of
the amount thereof is not likely to lead to continuation or recurrence of injury.  The request
must be lodged at least 12 months after the Government of the Republic of Lithuania adopts a
resolution to impose a countervailing duty or the competent authority makes a decision to
accept an undertaking;
(4) on the initiative of the competent authority justified by the fact that the amount of the
imposed countervailing duty or accepted undertaking is not sufficient to offset the
countervailable subsidy or that the continued imposition of the measure is no longer necessary
to offset the countervailable subsidy and that the injury would be unlikely to continue or recurif the countervailing duty or undertaking were removed or reduced;
(5) on a request made by domestic producers, supported by evidence that the imposition of a
countervailing duty or acceptance of an undertaking have led to no increase, or to insufficient
increase, of resale prices of the imported subsidized product in the customs territory of theRepublic of Lithuania.  The request may be lodged not earlier than 4 months after the
Government of the Republic of Lithuania adopted a resolution to impose a countervailing
duty or the competent authority made a decision to accept an undertaking.  In this case the
review shall be carried out if the amount of the imposed countervailing duty is less than the
established amount of the countervailable subsidy.
2. The request for a review of the need for the continued imposition of  the countervailing duty
or undertaking must be justified and supported by evidence.G/SCM/N/1/LTU/1
Page 29
3. The following documents may serve as evidence that the expiry of the countervailing duty or
undertaking would be likely to result in a continuation or recurrence of  subsidization or injury:
(1) documents confirming continued subsidization of imports;
(2) documents confirming continued injury caused by imports or that the removal of injury is due
to the existence of imposed countervailing duties or accepted undertakings:
(3) documents confirming that market conditions are such that they would indicate the likelihood
of further injury caused by subsidiZation.
4. The decision to review or not to review  the need for continued imposition of the
countervailing duty or undertaking must be taken by the competent authority not later than within 45
calendar days from the day of receipt of the request for the review of the countervailing duty or the
undertaking.  The competent authority must make a d ecision to carry out the review or to refrain from
it in the cases specified in subparagraph 1 of paragraph 1 hereof must be made at least 2 months
before the lapse of the five-year period of durat ion of the countervailing duty or undertaking.
5. A notice of impending expiry must be published in the official gazette “Valstybės žinios” no
earlier than 12 months and no later than 8 months before the lapse of the five-year period of
imposition of the countervailing duty or maintenance of undertaking.  If the duration of the
countervailing duty or undertaking is not extended, the competent authority must publish acorresponding notice in the official gazette “Valstybės žinios” and notify every known interested
party thereof. Where there is a large number of foreign producers or exporters of the subsidized
product, a notice shall be given to the governments of the countries of origin or export and the
relevant associations representing foreign producers or exporters of the subsidized product.
Article 36. Review Procedures
1. Unless this Chapter establishes otherwise, provisions of Articles 11, 12, 14, 15, 16, 17, 18 and
28 of this Law regarding the conduct of investigation shall apply to the procedures of review of
continued imposition of countervailing duties or maintenance of undertakings.
2. A review of the need for the continued imposition of the countervailing duty or maintenance
of the undertaking must be concluded within  12 months of the date of initiation of the review.  In the
case specified in subparagraph 5 of paragraph 1 of Article 35 of this Law the duration of the review
must not exceed 6 months.
3. In carrying out a review the interested parties must be provided with the opportunity to
comment on the matters set out in the review request  or the decision of the competent authority to
carry out the review.
4. In carrying out a review the same methodology (valuation methods, criteria, etc.) which was
applied in carrying out the investigation the findings whereof led to the adoption of the resolution bythe Government of the Republic of Lithuania to impose a countervailing duty or the decision by the
competent authority to accept an undertaking must be applied, provided that circumstances have not
markedly changed.
5. The amount of the countervailing duty or the undertaking must remain unchanged pending the
outcome of the review.  Where under Articles 27 or 34 of this Law the imposition of the
countervailing duty or undertaking should expire while the review is in progress, the maintenance of
the undertaking or the imposition of the countervailing duty must continue until the completion of theG/SCM/N/1/LTU/1
Page 30
review.  The above provision shall not limit the possibility of continued imposition of the above
measures under Articles 27, 34 and pa ragraph 4 of Article 37 of this Law.
Article 37. Review Results
1. If, as a result of a review, it is determined that the continued imposition of the countervailing
duty or maintenance of the undertaking is no longer necessary to offset the countervailable subsidy
and injury would be unlikely to recur, the amount of the countervailing duty shall be reduced to zero
and applied until the expiry of duration of the countervailing duty, whereas the accepted undertaking
shall be suspended.
2. At the close of the period set in Articles 27 and 34 of this Law or upon completion of the last
review carried out under paragraph 1 hereof, if individual countervailing duties have been imposed on
the subsidized products imported from foreign producers or exporters or individual undertakings have
been accepted, the undertakings shall be suspended and the individual countervailing duty at the rate
reduced to zero shall remain in force as long as countervailing duty at any rate (except zero rate) is
applied in respect of subsidized imports from the country of origin or export of the product in question(or from any economic operator located in the countr y) or the accepted undertaking remains in force.
3. If, as a result of a review, it is determined that after the reduction of the rate of the
countervailing duty or of the undertaking it would not be necessary to offset the countervailable
subsidy and injury would not be likely to continue or recur, the countervailing duty and theundertaking must be reduced accordingly.
4. If, as a result of a review, it is determined that the accepted undertaking is not sufficient to
offset the countervailable subsidy and remove injury, an additional undertaking may be accepted or
the countervailing duty imposed.
5. Where, as a result of a review, it is determin ed that the applied countervailing duty is not
sufficient to offset the countervailable subsidy and remove injury, the duty may be changed
(increased) without prejudice to Articles 29 and 30 of this Law.
6. Having completed the review and determined that the amount of the countervailing duty has
to be changed, the competent  authority  shall submit a proposal to the Government of the Republic ofLithuania to change the countervailing duty.
CHAPTER NINE
CIRCUMVENTION OF THE I ŪMPOSED COUNTERVAILING DUTY
Article 39. Cases of Circumvention of the Imposed Countervailing Duty
1. Upon establishing that circumvention of the imposed countervailing duty is taking place, the
competent authority shall submit a proposal to the Go vernment of the Republic of Lithuania to extend
the countervailing duty to imports from third countries of subsidized products or parts thereof.
Circumvention of the countervailing duty in force shall be deemed to be taking place when all the
following conditions are met:
(1) there is a change in the pattern of trade in the product in question between third countries and
Lithuania which stems from the imposition of the countervailing duty on the resolution of
Government of the Republic of Lithuania;G/SCM/N/1/LTU/1
Page 31
(2) there is evidence that the remedial effects of the countervailing duty are being undermined in
terms of the prices and/or quantities of the like products;
(3) there is evidence that the foreign producer or exporter of the subsidized product still benefits
from the subsidy.
Article 39. Actions in the Cases of Established Circumvention
1. Where the information submitted by the local producers or other interested parties and
evidence possessed by the competent authority indicate that circumvention of the imposed
countervailing duty is taking place, the competent authority shall initiate investigation of the
imposition of the countervailing duty on the like product or parts thereof, manufactured in thirdcountries.  In this case detailed information must be collected about the imports from third countries
of the like product or parts thereof, as  prescribed by paragraph 7 of Article12 of this Law.  The
decision taken by the competent authority to impose a countervailing duty on the imports from the
third countries of the product in question or parts thereof shall be published in the official gazette
“Valstybės žinios ”.
2. The investigation specified in paragraph 1 hereof must be concluded within 9 months.3. The investigation specified in paragraph 1 hereof  shall be conducted in accordance with
Articles 11, 12, 14, 15, 16, 17, 18 and 28 of this Law.
4. Upon considering the findings of the investigation and proposals submitted by the competent
authority, the Government of the Republic of Lithuania shall adopt a resolution to impose a
countervailing duty on the imports from the third countries of the product in question or parts thereof.
The countervailing duty shall also be imposed retroactively on products imported from third countriesduring the investigation, after the date of commencement of collection of detailed information about
the imports from the third countries of the product in question or parts thereof.
CHAPTER TEN
APPEALING AGAINST THE DECISIONS RELATING TO
COUNTERVAILING MEASURES
Article 40. Appealing against the Decisions and Actions of the Competent Authority
1. If the interested party objects to the decision s of the competent authority, it shall have the
right to appeal against them to the Higher Administrative Tribunal of the Republic of Lithuania
(hereinafter - Higher Administrative Tribunal).  The appeal may be lodged with the Higher
Administrative Tribunal within 3 months from the day of publication of the decision appealed against
or the delivery thereof to the interested party.
2. If the interested party objects to the actions or inaction of the competent authority in
implementing this Law, it shall have the right to lodge a complaint about the above acts or inaction
with the Higher Administrative Tribunal.  The complaint may be lodged with the Higher
Administrative Tribunal within one month from the performance of the action which is the subject of
complaint or from the day of notification of the interested party of the above action.  A complaintabout the inaction of the competent authority may be lodged within one month from the next day after
the lapse of the time period set in this Law for the performance of a relevant action or settlement of a
relevant matter.G/SCM/N/1/LTU/1
Page 32
3. Unless the Higher Administrative Tribunal establishes otherwise, lodging an appeal with the
Higher Administrative Tribunal shall not suspend the validity of decisions made by the competent
authority.
CHAPTER ELEVEN
INFORMATION
Article 41. Publication of Resolutions and Decisions
1. The resolutions adopted by the Government of the Republic of Lithuania in relation to the
implementation of this Law shall be published in the official gazette “Valstyb ės žinios” in accordance
with the procedure established in the legal acts of the Republic of Lithuania. .
2. The official gazette “Valstyb ės žinios” shall publish, in accordance with the procedure
established in the legal acts of the Republic of Lithuania, the proposals prescribed by this Law whichare submitted to the Government of the Republic of Lithuania by the competent authority, notices
specified in paragraph 2 of Article 18 and paragraph 5 of Article 35 of this Law, and the following
decisions of the competent authority regarding:
(1) initiation of investigation or review;(2) acceptance of an undertaking, including the decision to accept an undertaking and discontinue
the investigation or to reject the offer of an undertaking;
(3) termination or suspension of investigation;(4) initiation of review of a countervailing duty or undertaking;(5) extension of duration of an undertaking, (after a review);(6) acceptance of an additional undertaking, changing or cancellation of the accepted
undertaking.
3. The decision of the competent authority to initiate investigation or review of the
countervailing duty or undertaking must contain information on the following:
(1) the names of foreign producers or exporters, or , if reasonably not available, the name of the
country of origin or export;
(2) a complete description of the product in question and its code according to the Combined
Customs Tariffs and Foreign Trade Statistical Nomenclature of the Republic of Lithuania;
(3) date of initiation of investigation or review;
(4)  the representative period;(5) evidence submitted in the application by the interested party regarding the existence of the
subsidy in question  and injury caused thereby (in the request for review - evidence of the
change in the amount of subsidization), or a non-confidential summary of the evidence;G/SCM/N/1/LTU/1
Page 33
(6) other evidence which gave grounds for suspecting that the imports are being subsidized and
injury is being caused thereby or that the amount of subsidization or injury has changed ;
(7) the address to which the information related to the investigation or review in progress must be
supplied;
(8) time period allotted to the interested parties for submitting evidence and presenting their
arguments and explanations;
(9) time period allotted to the interested parties for filing requests with the competent authority
for the opportunity to present their oral arguments and explanations and to furnish additional
information relating to the investigation in progress.
4. In addition to other information, the decision by the competent authority to accept or reject an
undertaking must contain, having regard to the confidentiality requirements, the information specified
in paragraph 5 hereof, except for the information specified in subparagraphs 6 and 7, and a reference
to a non-confidential document which contains a non-confidential version of the acceptedundertaking.  The non-confidential document which contains a non-confidential version of the
undertaking must be kept with the competent authority.
5. The proposal to impose a provisional countervailing duty, submitted by the competent
authority to the Government of the Republic of Lithuania must contain, with due regard being had tothe confidentiality requirements, the following information:
(1) the names of the foreign producers or exporters, or, if reasonably not available, the country of
origin or export;
(2) a complete description of the imported product and its code according to the Combined
Customs Tariffs and Foreign Trade Statistical Nomenclature of the Republic of Lithuania;
(3) factors on the basis of which a positive determination of subsidy has been made and the
amount of subsidy has been determined;
(4) evidence and reasons on the basis of which injury has been determined;(5) facts and reasons on the basis of which the arguments presented by the interested parties have
been accepted or rejected;
(6) the amount of the proposed provisional countervailing duty, calculation method and date from
which the imposition of the duty is proposed;
(7) basic facts, legal provisions and reasons upon which the proposal is based.6. The proposal to impose the countervailing duty, including retroactive imposition of the duty
on the products imported during the investigation, submitted by the competent authority to the
Government of the Republic of Lithuania shall cont ain the description of the duty calculation method,
the amount of the duty proposed on the subsidized products imported from each individual foreign
producer or exporter (with the exception of cases where the duty is determined for a country of origin
or export), the date from which it is proposed to levy the duty and other required facts.  The proposalof the competent authority shall contain, without affecting the confidentiality requirement, all the
information specified in paragraph 5 hereof, except for the information referred to in subparagraph 6,
and, in cases when an undertaking is offered by the foreign producer or exporter, or the country of
origin or export -  the reasons for acceptance or rejection of the undertaking.  The above-mentionedG/SCM/N/1/LTU/1
Page 34
information shall be presented accompanied by information relating to the submitted proposal to
retroactively impose a countervailing duty upon the products imported during the investigation.
7. The decision of the competent authority to terminate the investigation without proposing to
the Government of the Republic of Lithuania to impose a countervailing duty must contain, inaddition to other information, with due regard ha d to confidentiality requirement, other material
information relating to the facts, legal provisions and reasons based whereon the decision has been
taken, also the reasons for acceptance or rejection of undertakings offered by the foreign producer or
exporter, or the government of the country of origin or export.
8. The decisions of the competent authority specified in subparagraphs 5 and 6 of paragraph 2
hereof and the proposals submitted to the Government of the Republic of Lithuania  to extend theduration of the countervailing duty or to repeal the duty (after a review) or to change the
countervailing duty  must contain all material inform ation relating to the facts, legal provisions and
reasons on the basis of which the decisions have been taken or the proposals have been submitted.
The decisions of the competent authority and the submitted proposals must contain, with due
consideration being given to confidentiality requirements, information specified in paragraph 5hereof, except for the information specified in subparagraph 6, as well as justification of the decisions
made pursuant to paragraph 4 of Article 17 of this Law.
9. The competent authority must provide every known interested party with copies of decisions
specified in paragraphs 4, 6 and 8 hereof or of submitted proposals within 15 calendar days of theiradoption.
Article 42. Confidentiality of Information
1. All information received pursuant to this Law shall be used only for the purposes for which it
was requested.
2. Any information disclosure of which would be of significant competitive advantage to
competitors or would have a significantly adverse effect upon the interested party supplying the
information or upon a person from whom the interested party has acquired the information or which is
provided on a confidential basis by the interested party supplying the information shall be treated as
such by the competent authority implementing this  Law.  Having been supplied with confidential
information, the competent authorities implementing this Law may not disclose it without the consent
of the interested party which supplied the information.
3. The interested party providing confidential information shall be required to furnish non-
confidential summaries thereof.  Those summaries sh all be in sufficient detail to permit a reasonable
understanding of the substance of the information submitted.  If, in exceptional cases, the interested
party indicates that such information is not susceptible of summary, it must provide a written
statement of the reasons why summarization is not possible.
4. If it is considered by the competent authorities implementing this Law that a request for
confidentiality is not warranted and if the interested party which is the supplier of information is
unwilling to authorize disclosure of the info rmation (in generalized or summary form) such
information may be disregarded by the competent authority implementing this Law, unless it can be
satisfactorily demonstrated from appropriate sources that the information is correct.G/SCM/N/1/LTU/1
Page 35
CHAPTER TWELVE
FINAL PROVISIONS
Article 43. International Agreements
1. If international agreements of the Republic of Lithuania which have been ratified by the
Seimas of the Republic of Lithuania  establish provisions other than those laid town in this Law, the
provisions of international agreement shall apply.
2. Before initiating the investigation the competent authority, governed by the provisions of free
trade agreements to which the Republic of Lithuania is a party, shall notify the Ministry of ForeignAffairs of the Republic of Lithuania of the received application for the initiation of investigation.
Article 44. Implementation of the Law
1. The Government of the Republic of Lithuania shall assign a competent authority  to
implement this Law.
2. The Government of the Republic of Lithuania  or the competent  authority shall:(1) approve an illustrative list of export subsidies;(2) approve a list of support measures granted to agriculture by foreign countries which are
recognized as non-countervailable subsidies;
(3) prepare the methodology of calculating the amount of countervailable subsidies and benefit
conferred by them;
(4) approve the list of developing countries in respect of whose imports into the customs territory
of the Republic of Lithuania privileges provided for in this Law shall apply;
(5) determine the procedure for investigating countervailable subsidies in  the territory of a
foreign country.
I promulgate this Law enacted by the Seimas of the Republic of Lithuania
PRESIDENT OF THE REPUBLIC         VALDAS ADAMKUS
__________