RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/SPEC/LTU/8/Rev.31
12 October 1998
(98-3919)
Working Party on the
Accession of LithuaniaOriginal:  English
DRAFT REPORT OF THE WORKING PARTY ON
THE ACCESSION OF LITHUANIA
TO THE WORLD TRADE ORGANIZATION
Revision
INTRODUCTION
1. The Government of Lithuania applied for accession to the General Agreement on Tariffs and
Trade (GATT 1947) in January 1994.  At its meeting on 22-23 February 1994, the GATT 1947Council of Representatives established a Working Party to examine the application of the Governmentof Lithuania to accede to the General Agreement under Article XXXIII of the General Agreement.Following the conclusion of the Uruguay Round, Lithuania requested accession to the World TradeOrganization (WTO) under Article XII of the Marrakesh Agreement Establishing the World Trade
Organization.  In accordance with the Decision adopted by the WTO General Council on
31 January 1995, the existing GATT 1947 Accession Working Party was transformed into a WTOAccession Working Party.  The terms of reference and the membership of the Working Party arereproduced in document WT/ACC/LTU/1/Rev.4.
2. The Working Party met on 10 November 1995; 25-26 March and 7 October 1996;
26 March 1997 and ......  under the Chairman ship of Mr. Peter Witt (Germany). 
DOCUMENTATION PROVIDED
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the
Foreign Trade Regime of Lithuania (L/7551), the questions submitted by Members on the foreigntrade regime of Lithuania together with the replies thereto and other information provided by the
                                                     
1 In order to facilitate the identification of changes to the earlier version of the Report, additions to the
text are underlined and deletions struck out.WT/ACC/SPEC/LTU/8/Rev.3
Page 2
Lithuanian authorities (WT/ACC/LTU/2 and A ddendum 1;  WT/ACC/LTU/4;  WT/ACC/LTU/5;
WT/ACC/LTU/7 and Addendum 1;   WT/ACC/LTU/9;  WT/ACC/LTU/10;  WT/ACC/LTU/12;
WT/ACC/LTU/15, WT/ACC/LTU/1 6, WT/ACC/LTU/17, WT/A CC/LTU/19, WT/ACC/LTU/22,
WT/ACC/LTU/23, WT/ACC/LTU/24 and ...), including the legislative texts and other documentation
listed in Annex I.
INTRODUCTORY STATEMENTS
4. In his introductory statement, the representative of Lithuania noted that his country was small
and heavily dependent on foreign trade.  Since restoration of independence in 1990, the centrallyplanned system in force had been effectively replaced by a market-oriented economy.  Lithuania hadestablished a new banking system and its own currency and was proceeding on fundamental economicreforms, including the enactment of new legislative measures, privatization, deregulation of prices andtrade, in close cooperation with international institutions.  However, economic transformation couldonly be successful if supported by integration into the world economy and the international tradingsystem based on the principles of the WTO.
5. Lithuania's foreign trade patterns had also changed significantly since 1990.  The share of
trade with countries in the Commonwealth of Independent States had declined substantially whiletrade flows with other countries had increased.  Lithuania's overall balance of payments was insurplus despite a trade deficit.  Lithuania had resisted protectionism in a period of difficult economictransition.  The foreign trade regime would be liberalized further.  Several trade agreements had beensigned, reducing barriers to trade and other agreements were under negotiation.  Accession to theWTO was a matter of highest priority as Lithuania sought integration into the world economy on thebasis of internationally recognized rules, providing a stable and predictable environment and a precise
legal framework for trade among nations.  Lithuania's accession would also have positive
repercussions for its trading partners.
6. In their opening remarks, members of the Working Party welcomed the request from
Lithuania to accede to the WTO.  Lithuania's integration into the world economy and trade on thebasis of multilaterally agreed principles and rules was seen as an important element underpinningeconomic and institutional reforms in Lithuania.WT/ACC/SPEC/LTU/8/Rev.3
Page 3
7. The Working Party reviewed the economic policies and foreign trade regime of Lithuania and
the possible terms of a draft Protocol of Accession to the WTO.  The views expressed by members ofthe Working Party on the various aspects of Lithuania's foreign trade regime [, and on the terms andconditions of Lithuania's accession to the WTO] are summarized below in paragraphs 8 to [169]
[182].
ECONOMIC POLICIESMonetary and Fiscal Policy
8. The representative of Lithuania recalled that the direction of macro-economic policies during
1995 to 1997 was laid down in a Memorandum of State Economic Policy of the Republic ofLithuania, a copy of which had been provided to the Working Party.  More specifically, he explainedthat the tax system consisted of corporate profit tax;  personal income tax;  value added tax;  excises;taxes on natural resources, oil and gas;  pollution tax;  customs duties;  a tax on fixed property;  roadtax;  land taxes;  stamp tax on activity (for example, for obtaining licences);  and other taxes(inheritance tax, consular fees, etc.).  The tax on pollution was meant to encourage investment inclean (environmentally-friendly) technologies.  The tax was levied on legal and natural persons
polluting the environment.  The tax was specific and its level was established based on the quantity,
degree of harm and type of pollution.  Since July 1995 (Government Resolution No. 1026), thecorporate profit tax was reduced for certain sectors, notably those related to production of medicinesand medical services, agricultural machinery, wa ste processing and disposal, new forms of energy,
transportation, construction and telecommunications.  Taxes on fixed property and the road tax wereintroduced in 1995.  The road tax was levied on enterprise revenue (0-1 per cent) except for bankswhich paid a percentage of the margin earned.
Foreign Exchange and Payments
9. The representative of Lithuania informed the Working Party that his country had recorded
deficits in its merchandise trade equal to US$324 million in 1994, US$943 million in 1995, and
US$1,124 million in 1996, US$1,784 million in 1997 and US$910 million in January-May 1998.  The
national currency - the Litas - was pegged to the US Dollar (Llt. 4=US$1) in agreement with the IMF;
no plans existed to abandon the fixed exchange rate  and this had remained the Government's policy.
He further stated that full Litas convertibility as well as current account convertibility was introducedon 3 May 1994 following the Government of Lithuania's acceptance of Article V III of the Articles of
Agreement of the IMF.WT/ACC/SPEC/LTU/8/Rev.3
Page 4
Investment Regime
10. The representative of Lithuania said that foreign and domestic investment was as a rule
treated equally, except that foreign investment was prohibited in areas related to national security anddefence, narcotic and poisonous substances, and the organizing of lotteries in accordance with theLaw on Foreign Capital Investments in the Republic of Lithuania.  Further, in June 1996, Parliament
(the Seimas) had approved an amendment to the Constitution allowing foreigners to purchase certain
types of land (non-agricultural plots required for the construction and operation of buildings andfacilities necessary for their direct activity).
11. The Law on Foreign Capital Investments stipulated that taxation of foreign enterprises be no
less favourable than the rules applied to domestic natural and legal persons.  Lithuania offered certaintax holidays.  Enterprises established between 1 August 1995 and 1 April 1997, with foreigninvestment of minimum US$2 million were exempt from profit (income) tax for the first three yearsand subject to a 50 per cent tax reduction for the following three years, starting from the day the first
profit was achieved.  Domestic and foreign small enterprises (number of employees not exceeding 50
and annual sales of no more than 500,000 Litas) received tax reductions amounting to 70 per cent forthe first two years after their establishment and 50 per cent for each year thereafter.  Producers ofagricultural products were assessed profit tax at the rate of 10 per cent provided the agricultural itemsaccounted for minimum 60 per cent of total sales of the enterprise.  As from 1 April 1997, Lithuaniaexempted all profit of domestic or foreign enterprises spent on capital investments from profit(income) tax.  Foreign investors had the right, having paid the taxes, to transfer the profit, income ordividends belonging to them by virtue of ownership to a foreign country without any restrictions.  Ifan enterprise was under liquidation by its founders, the assets or a portion thereof corresponding to the
amount of foreign investment which, on the decision of the shareholders, were due to foreign
investors, could be taken out of the country tax free (covering physical and financial assets) uponpayment of corporate taxes due to the State and settlement of accounts with creditors and employees.Eligibility for these benefits was not contingent upon export performance or use of domestic inputs inthe production process.
State Ownership and Privatization
12. The representative of Lithuania explained that privatization had initially been implemented
through investment vouchers which could be used to purchase State property, residential housing,WT/ACC/SPEC/LTU/8/Rev.3
Page 5
agricultural enterprises and repurchasing of land.  Most of this privatization, which allowed bids by
employees and management, had proceeded without foreign participation.  Marking the second stageof the privatization process, a Law on Privatization of State-Owned and Municipal Property hadentered into force in September 1995, providing for privatization through public subscription ofshares;  public auction;  public tender;  sale through direct negotiation;  joint-ventures with Stateproperty;  capital lease;  and the creation of a State Privatization Agency (State Property Fund from
11 May 1998).  The State had retained stakes in some farms or enterprises (30-90 per cent) until they
were fully privatized in connection with their tr ansformation into joint-stock companies during the
first stage of privatization.  Assets sold by public auction were privatized in their entirety and theState generally did not retain ownership in privatized enterprises.  The 1995 Law stipulated thatforeign and domestic investors would participate in the privatization process on an equal basis, both inthe form of direct and portfolio investments.  Pursuant to the 1995 Law, the Government hadestablished a list of enterprises in agro-processing, agro-services and industrial sectors to be subject totendering.  The list established in 1997 comprised 836 enterprises, including enterprises part-privatized at the first stage of privatization, and other sectors and large-scale enterprises previouslyexcluded from privatization such as energy, communications and transport services.
13. Privatization in agriculture, including the rest oration of land to former owners, had proceeded
despite certain legal problems (only the State and natural persons could own land), uneconomic
partitioning of land and other main assets and lack of capital for family farming.  The general policyin this area was to offer preferential bidding terms to agricultural producers.  Farmers had beenoffered favourable terms in the privatization of some processing industries (meat, grain, dairies andsugar factories).  In most food processing sectors 80 per cent or more of the assets had already beenprivatized.  Regarding the privatization in the sugar sector, Lithuania had four sugar refineries, all ofwhich had been transformed into joint-stock companies with more than 90 per cent of the shares held
by private investors.  The remaining State-owned shares would be privatized gradually in a process
open to local and foreign investors.
14. As a result of these various privatization efforts, by 1 December 1997
 1 August 1998
Lithuania had wholly privatized 99.7 per cent of State-owned farms (not including agricultural
processing enterprises).  As of the same date, Lithuania had made significant progress in theprivatization of 287 agro-processing (meat, milk, grain, crop selection, etc.) and agro-serviceenterprises that were identified for privatization and expected to complete the process by 2000.  These287 enterprises represented the entire share of all State-owned assets in agro-processing.  The State
had excluded from the privatization process its stakes in:  (i) 19 experimental farms at researchWT/ACC/SPEC/LTU/8/Rev.3
Page 6
institutions of agricultural science studies;   (ii) 54 teaching farms at agriculture schools;  and
(iii) eight farms of pure-strain enterprises.  However, the State was not the sole provider of agriculture
research and technical facilities.  Private companies were free to engage in such activities, and there
were no restrictions or special requirements on imports of such products and services.
15. Significant progress had also been made in privatizing industry.  As of 1 December 1997
1 August 1998, the Government estimated that approximately 88 per cent of the industrial (goods)
enterprises and 97 per cent of the services enterprise s identified for privatization, had been privatized.
The privatization process had been given new impetus by the decision to allow privatization inindustrial and non-agricultural service sectors to take place on a cash (rather than voucher) basis,allowing the participation of foreigners.  As part of the plan to privatize on a cash basis the Stateintended to sell shares in joint-stock companies, retained during the first stage of privatization, to
qualified bidders.  The Lithuanian Government ha d built on its success in privatizing small- and
medium-sized enterprises to draw up plans for the privatization of nine large and strategic enterprises
in key industries and services sectors (energy, communications, transportation, etc.).  Privatization
was carried out on a cash basis and was open to foreign and domestic investors alike.  In addition, the
Government had undertaken programmes to privatize the two State commercial banks in Lithuania -
the Lithuanian Savings Bank and the Lithuanian Agriculture Bank.  These currently State-owned
enterprises and banks represented the bulk of the remaining capital to be transferred to private
ownership.  The process of privatizing the nine State enterprises and the banks was expected to take
time.  One object (Lietuvas Telekomas) had alread y been privatized and three others were in the
process of privatization.
16. A Law of 28 December 1994 provided a list of State enterprises not to be privatized until the
year 2000.  The original list comprised 234 entities in areas such as recreation, transportation,
pharmacies and postal services;  the list had been reduced to 110 enterprises under an amendment to
this Law on 3 April 1997.  The Government had adopted a decision to discontinue this list on
4 June 1997 ;  the decision was currently being considered by Parliament  would review the need for
further privatization in 2000.  In addition, 142 enterprises were currently not included in the
privatization plans, including strategic entities such as the State Nuclear Power Plant, Lithuanian Post,
airports, railways and their infrastructure, pipelines, electricity transmission lines, sea ports, etc.
17. Some members requested Lithuania to provide a table or chart indicating the status of
privatization, by size and/or type of firm, addressing all enterprises still wholly or partly owned by theWT/ACC/SPEC/LTU/8/Rev.3
Page 7
State, information on how many State-owned firms existed prior to privatization, how many had been
fully privatized,  a list of enterprises and sectors stil l wholly or partly owned by the State, the portion
of equity still owned by the State, the portion of  output and trade represented by private firms, how
many firms had been prepared for privatization and for which privatization was pending, and howmany were not at this time contemplated as part of the privatization programme.  Lithuania shouldalso define the conditions whereby it would consider its privatization programme completed and whenit expected to accomplish this.  The representative of Lithuania submitted information on the
privatization process in Lithuania (1991 - 31 July  1997), circulated in document WT/ACC/LTU/17 of
26 September 1997.  Of the approximately 8,000 enterprises owned by the State prior to privatization,nearly 6,000 
6,203 small- and medium-sized enterprises, representing around one quarter of the total
capital,  had been privatized by mid-1997 August 1998.  Detailed information on privatization of State
and municipal assets and agricultural enterprises is presented in Table 1.
18. The representative of Lithuania said that Lithua nia agreed to continue to provide information
every 18 months [every two years] [on an annual basis] on developments in its programme of
privatization after accession along the lines of that provided to the Working Party during the accession
process [, and on other issues related to its economic reforms as relevant to its obligations under the
WTO]  [until 1 January 2003].  The Working Party took note of this [assurance][commitment].
Pricing Policies
19. Some members of the Working Party noted that certain goods and services remained subject
to price controls and requested details and plans regarding further deregulation of prices.  Lithuaniawas asked to list the products subject to price controls and to provide information on the legal basisfor these controls, the reasons for these controls and the conditions under which such or extended
controls might be applied in the future.
20. The representative of Lithuania replied that price controls had been relaxed gradually in
Lithuania.  Controls on mark-ups on foodstuffs had ceased as of 1 April 1995, thus profit marginswere no longer limited at the processor or retail level.  He provided an updated list of goods andservices subject to price control, reproduced in Table 2.  He did not believe that the number of goodsand services subject to price controls would increase in the future.  He also noted that his Governmenthad abolished price controls on cement, lime, limestone and mineral fertilizers in October 1997.Further price liberalization in transportation and telecommunications would be linked to increasingWT/ACC/SPEC/LTU/8/Rev.3
Page 8
competition resulting from economic restructuring and privatization.  He confirmed that Lithuanian
industries did not receive electricity and gas at subsidized prices, but price controls would remain onresidential use of electricity, natural gas and heating to support low-income households.  Privatehealth service providers could not exceed the prices set for State-supplied services by more than60 per cent.  This measure was applied in an environment of insufficient competition to alleviate thefinancial burden on the State Social Insurance Fund, which compensated citizens fully or in part fortheir expenditures on health services and pharmaceuticals.  He said that the price control on State-
owned land was connected with the restoration of private land ownership as part of agricultural
reform.  He further stated that price control on State-owned land would be abolished after therestoration of private land ownership in the course of the implementation of agricultural reform.Wood and wood products from State-owned land were  subject to minimum, not maximum, prices.
He confirmed that the Government would revise those price controls.  He confirmed that prices ofgoods and services in every sector, with the exceptions listed in Table 2, were determined freely bymarket forces.  The list of goods and services subject to price controls set by the State and anychanges to this list would be published in the Official Gazette, and price controls set by municipalitieswould be published in the local mass media.
21. The representative of Lithuania confirmed that in the application of price controls on products
and services contained in Table 2 and any that are introduced or re-introduced in the future, Lithuania
will apply such measures in a WTO consistent fashion, and take account of the interests of exportingWTO Members  as provided for in Article III.9 of the GATT 1994.  Lithuania will also publish the listof goods and services subject to State price controls in the Official Gazette including any changesfrom the list in Table 2.  The Working Party took note of this commitment.
Competition Policy
22. The representative of Lithuania noted that the Law on Competition had entered into force on
1 November 1992 and was enforced through the St ate Competition and Consumer Protection Office.
The Competition Council (the decision-making body of the Office) had approved four by-lawsconcerning the abuse of dominant position, agreements and concerted activities restrictingcompetition, control of mergers and prohibition of unfair activities.  The Law on Competition wasapplied to all enterprises irrespective of ownershi p or the kind of economic activity.  Some provisions
of the Law on Competition were not applied in excluded sectors which were covered under separatelegislation.  Thus, certain exemptions were allowed for the supply of energy, postal services, railways,WT/ACC/SPEC/LTU/8/Rev.3
Page 9
[sugar - the new Law on Sugar (in preparation) would not contain this exemption],
telecommunications and airline services.
23. The State Competition and Consumer Protection Office had investigated 46  47 cases of abuse
of dominant position between 1992 and 1 August 1997.  Dominant enterprises were those controlling
40 per cent or more of the relevant domestic market;  the Office had included enterprises with market
shares exceeding 60 per cent in a list of dominant suppliers.  In January 1996, the Competition
Council listed six enterprises holding from 60 to 90 per cent of their respective markets and having
abused their dominant positions by charging unreasonably high prices during 1994-1995.  The sixenterprises were obliged to notify price changes in advance to the State Competition and Consumer
Protection Office.  The list of dominant enterprises had been discontinued.  Future a
Abuse of
dominant position would henceforth be investigated on a case-by-case basis.
FRAMEWORK FOR MAKING AND ENFORCING POLICIES
24. The representative of Lithuania said that sovereign State power in Lithuania was exercised by
the President, the Seimas, the Government and the judiciary.  The Seimas was a one-chamber
Parliament with 141 members.  The Seimas considered and enacted amendments to the Constitution,enacted laws, considered the programme of the Government, approved the State budget, establishedState taxes and other obligatory payments, ratified international treaties and considered other domesticand foreign policy issues.  The President of the Republic was the Head of State.  The Presidentrepresented the State of Lithuania and performed the duties laid down by the Constitution and the
laws.  The Government was the highest authority of executive power.  The Government was led bythe Prime Minister and currently consisted of 17
 14 ministries.  The judicial system in Lithuania
comprised the Constitutional Court, the Supreme C ourt, the Appeals Court,  the County Court and
District (city) Courts.  A special Commercial Court existed for the settlement of business disputes.  A
special dispute settlement order existed under Article 24/1 of the Civil Process Code with regard to
measures or decisions taken by official or government institutions.
25. The representative of Lithuania said that, from the date of accession,  it would be possible to
refer all measures affecting international trade to an independent judicial body (GATT Article X:3(b);GATS Article VI:2).  The Working Party took note of this commitment.WT/ACC/SPEC/LTU/8/Rev.3
Page 10
26. The representative of Lithuania added that local governments acted freely and independently
within the limits of their competence, establis hed by the Constitution and laws.  Local Councils
maintained the right, within established limits and in accordance with procedures laid down by law, tolevy taxes on excavation sites, traffic access, parking, street vendors, visual commercialadvertisements, etc.   However, municipalities were not entitled to tax items subject to taxation at thenational level.  Local authorities thus could not apply duties on imported goods.  [The representative
of Lithuania confirmed that sub-central administrative authorities, e.g. local administrative bodies,
had no jurisdiction or authority to establish regulations or taxes on goods and services in Lithuania
independent of the central authorities, and that application of these measures was exclusively the
responsibility of the executive and legislative branches of the Central Government.]
27. [The representative of Lithuania stated that, from the date of accession, Lithuania would
ensure observance of the provisions of WTO by its local authorities, including Article XXIV:12 of the
GATT 1994 and the Understanding on the Interpretation of Article XXIV:12 and Article I:3(a) of
GATS.  The Working Party took note of this commitment.]  [The representative of Lithuania
confirmed that sub-central administrative authorities , e.g. local administrative bodies, had no jurisdiction
or authority to establish regulations or taxes on g oods and services in Lithuania independent of the
central authorities, and that application of these measures was exclusively the responsibility of the
executive and legislative branches of the central Go vernment.  Central authorities would eliminate or
nullify measures taken by sub-central authorities in Lithuania that conflict with WTO provisions from
the date of accession
POLICIES AFFECTING TRADE IN GOODS
Trading Rights
28. [Some members of the Working Party noted that certain business activities were subject to
licensing in Lithuania and requested a list of the trade activities concerned in order to assess whether
licences were granted automatically on a non-discriminatory basis or whether there were instances
where the State limited or rationed the right to trade in certain business activities.  The latter practice
would engage a number of WTO issues, notably re garding trade monopoly and State-trading, which
Lithuania was requested to address.]   Some members of the Working Party noted that laws and
regulations relating to the right to trade in g oods (also sometimes referred to as "registration
requirements" or "activity licensing") should not restrict imports of goods in violation of the generalprohibition on quantitative restrictions in GATT Ar ticle XI:1, nor should they discriminate against
imported goods in violation of the non-discrimination provisions of GATT Arti cle III:4.  Furthermore,WT/ACC/SPEC/LTU/8/Rev.3
Page 11
fees and charges levied on the right to import should be limited to the approximate cost of services
rendered (Article VIII:1(a)) and taxes and charges on the right to trade in imported goods should notlead to discrimination in favour of like domestic products (Article III:2).  They noted that issuesrelating to the rights of foreign individuals and enterprises to trade were also dealt with in the draftSchedule of Specific Commitments on Services.
29. In order to establish whether these GATT provisions were observed, some members requested
Lithuania to supply information on: (i) the conditions attached to the right to import individual
products or groups of products, including all fees and charges levied on these rights;  and (ii) theconditions attached to the right to engage in the internal sale, offering for sale, purchase,transportation, distribution or use of individual products or groups of products, including all taxes andcharges on these activities, in particular when these distinguished between imported products andproducts of national origin.  Lithuania was also asked to provide information on how it would bringits policies into line with GATT requirements whenever this was necessary and, in particular, how itwould modify the stamp taxes in Table 4 to conform to relevant GATT rules.
30. 29.        
The representative of Lithuania replied that certain activities were subject to licensing
in accordance with the Law on Amendments and Supplements of the Law on Enterprises of25 September 1997.  Tables 3.1 and 3.2 "Licensing of business activities" listed business activities(goods and services respectively) subject to licensing in Lithuania.  He confirmed that Lithuaniamaintained the same criteria and procedures for revi ewing applications for licences to engage in trade
or production of goods, whether the applicants intended to deal in domestic or imported goods, or acombination thereof, except as noted in paragraph [31]
 [32] below.  The number of economic
activities requiring a licence had been significantly reduced, from 60 to 27,  under a new amendment
of the Law on Enterprises, and he expected further reductions in the number of licensed activities in
the future.  Licensing of commercial activity, incl uding importation, was currently applied to products
containing alcohol; tobacco and tobacco products;  oil products;  narcotics and poisonous substances;and ammunition, weapons and pyrotechnics (updated information on licensing criteria for imported
goods was provided in document WT/ACC/LTU/19).  Two activities - production of products with
ethyl alcoholic strength exceeding 22 per cent;  and the printing of money, postage stamps and coins  -could only be undertaken by enterprises owned by the State or municipalities, or special enterprises.
31. 30         
The representative of Lithuania said that the Government levied a stamp tax on a
number of services provided by its institutions, including  (described in the Section "Fees and ChargesWT/ACC/SPEC/LTU/8/Rev.3
Page 12
for Services Rendered").  The Government also levied stamp taxes for the issuance of activity
licences.  Tax rates had been established in accordance with Resolution No. 1123 of
11 November 1994, and were indexed to the rate of inflation.  The tax was related or limited to theapproximate cost of the services rendered and differed according to the nature of the licensed activity,bearing in mind that activity licences to import alcoholic beverages and petroleum products wouldalso cover wholesale of the products and that importation/wholesale licences also included a largernumber of products than wholesale licences for domestically-produced goods only.  Stamp taxes for
activity licensing related to importation and domestic trade included an important fiscal element, and
were also important to encourage responsible importers who would be prepared to follow customs and
tax procedures and pay the required tariffs and taxes.  The annual stamp taxes for activity licences onalcohol and alcoholic beverages, tobacco and petroleum products are listed in Table 4.  The
Government intended to review the stamp tax system to see whether it could be changed to reflect any
improvements in the market situation.
32. 31.        The representative of Lithuania added that activity licences and licences for
importation and transit were granted automatically and on a non-discriminatory basis,  except in the
following cases:
(i) no activity licences were granted to foreigners for the organizing of lotteries and activities
related to narcotic or poisonous substances;
(ii) applications for licences to import or tran sit could be rejected or subject to limitations
regarding activities related to strategic goods - production and importation was strictlycontrolled for reasons of national security (according to COCOM requirements - seeparagraph [55]
 [62] for further details) or environmental protection;
(iii) the right to manufacture products of ethyl alcoholic strength exceeding 22 per cent (by
volume) was reserved for enterprises owned by the State or municipalities, or special
enterprises;  and
(iv) the right to print money, postage stamps and mintage was reserved for State enterprises.33. 32.        
A member welcomed the reduction of activity licensing as a method of regulation and
revenue, but was concerned that importation licences such as those to import alcohol and petroleum
were granted only with a tax which did not apply to domestic producers or distributors and Article IIIWT/ACC/SPEC/LTU/8/Rev.3
Page 13
would seem to prohibit this form of discrimination.  The size of some of the fees were not associated
with the cost of the services rendered;  they rather served as revenue raisers and barriers to entry, thus
WTO rules on national treatment applied in full.  The deep concerns about the WTO-inconsistency ofthe present system were confirmed by the information provided in Table 4;  taxes on the right toimport were vastly more expensive than those on the right to produce similar domestic products(alcohol beverages and tobacco), and the licensing fees on trade in oil products were possibly adisguised tax on the importation of refined petroleu m products.  He remained concerned that the fees
applied for certain import activity, e.g. in the areas of alcoholic beverages, tobacco products and
petroleum products were a disguised tax on that trade.  The fee to import and wholesale these items
exceeded the fee for wholesale trade alone.  Lithuani a would need to change its system if it amounted
to a tax on importation.
34. The representative of Lithuania replied that his Government had issued a resolution on
27 June 1998, ensuring equalized stamp tax for the activity licence in wholesale of alcohol for local
and foreign producers.  The resolution would enter into force upon Lithuania's accession to the WTO.
The licence fee for importation of tobacco products - 15,000 Litas per year - was equal to the
corresponding fee for wholesale trade in tobacco products according to Government
Resolution No. 180 of 13 February 1998.
35. 33.         [ The representative of Lithuania confirmed that the former State monopoly in foreign
trade had been abolished and that no restrictions existed on the right of foreign and domesticindividuals and enterprises registered in Lithuania to import and export goods and 
services  [and
services] within Lithuania's customs territory, except as provided in paragraph 31  [32] .  He confirmed
that individuals and firms were not restricted in their ability to import and export based on theirregistered scope of business, and the criteria for registration were generally applicable and published
in the Official Gazette.  [The Working Party took note of these commitments
 this commitment.]
36. [The representative of Lithuania confirmed that Lithuania would ensure that its laws and
regulations relating to the right to trade in goods and all fees, charges or taxes levied on such rights ]
were in full conformity with its WTO obligations, including Articles VIII [ :1(a) ] , XI:1, and [XIII]
III:2 and 4  ]  of the GATT 1994 and that it would also implement such laws and regulations in full
conformity with these obligations.  The Working Party took  note of this commitment.]WT/ACC/SPEC/LTU/8/Rev.3
Page 14
Market Access Negotiations
37. 34.        Lithuania engaged in market access negotiations on goods with interested Members.
Lithuania's Schedule of Concessions and Commitments on Goods is annexed to the Protocol ofAccession of Lithuania which is reproduced in the Appendix to this Report.
A. Import Regulation
Customs Code
38. 35.        The representative of Lithuania said that the Seimas approved a new Customs Code
on 18 April 1996, replacing the Law on Customs of 29 April 1993 and certain provisions of the Lawon Customs Tariff and other legislation.  The Cu stoms Code was based on the provisions of the
Community Customs Code (Council Regulation 92/ 2913/EEC and its amendments), defining the
responsibilities of government institutions involved in the administration of customs and providingthe framework for importation, exportation and goods in transit.  He added that the new CustomsCode included WTO-consistent provisions on the a pplication of customs tariffs, customs valuation,
rules of origin, duty drawback, free trade zones, etc.  The new Customs Code was due to enter
 came
into force on 1 January 1998.
39. 36.        A member asked Lithuania to describe the relevant provisions of the Customs Code,
with particular reference to the areas addressing WTO obligations and explain why the Code wouldnot come into force until 1998.  This member sought full implementation of this legislation no laterthan the date of Lithuania's accession to the WTO.
40. 37.        
The representative of Lithuania said that before the new Customs Code entered into
force a number of laws which were not in full conformity with the provisions of the Code would need
to be amended by Parliament and implementing regulations for the Code would need to be preparedand adopted by the Government.  His Government had begun this process in July 1996 and haddecided that the implementing provisions of the Code would be fully based on the Implementing
Provisions of the Community Customs Code (Commission Regulation 93/2454/EEC and itsamendments).  [A member requested clarification on what aspects of EC "implementing provisions"
had been adopted.]WT/ACC/SPEC/LTU/8/Rev.3
Page 15
41. 38.          [ The representative of Lithuania confirmed that Lithuania's customs regulations
would be fully consistent with WTO provisions from the date of accession and that Lithuania's
implementing regulations and other legal requirements for implementation would be in place by thatdate.  The Working Party took note of this commitment. ]
Ordinary customs duties
42. 39.        The representative of Lithuania confirmed that the Convention on the Harmonized
System entered into force in Lithuania on 1 January 1995.  The structure of customs tariffs wasregulated by the Government; rates could be changed by government decision based on proposals byministries, taking account of Lithuania's international obligations and commitments.  Tariffs hadaccordingly been reduced on major food products (milk and dairy products, butter, eggs, sausages andsugar) in September 1995.  The applied customs tariff was provided to the Working Party [the mostrecent version, established by
 in accordance with Government Resolution No. 268 of 24 March 1997,
is reproduced in Annex II, Table 1 of document WT/ACC/LTU/15  WT/ACC/SPEC/LTU/4/Add.1 of
5 February 1998].  Goods were subject to the autonomous rate of duty, except for imports originating
in countries enjoying most-favoured-nation status in Lithuania [listed in Annex II, Table 3 of
document WT/ACC/LTU/15]  which were subject to conventional import duties and goods imported
under free trade agreements [the countries involved are listed in Annex II, Table 4 of  the same
document].
43. 40.        Applied tariff rates were ad valorem  except for specific (mixed) duties on alcohol,
tobacco and raw sugar.  The specific elements of mixed  duties on meat and dairy products were
eliminated in February 1995.
Other duties and charges
44.  41.       [It was noted that Lithuania had bound all duties and charges levied on imports but
not on domestic production other than ordinary customs duties at zero for all products in the goods
schedule annexed to its Protocol of Accession (annexed) (Article II :1(b) of the GATT 1994).]  [The
representative of Lithuania confirmed that Lithuania does  did not apply duties and charges on imports
other than ordinary customs duties.  Any such charges applied to imports after accession would be in
accordance with WTO provisions. He further confirmed that Lithuania would not list any othercharges in its goods schedule under Article II:1( b) of the GATT 1994, binding such charges atWT/ACC/SPEC/LTU/8/Rev.3
Page 16
"zero".]  Lithuania would ensure that any fees and charges for services rendered introduced in the
future would only be applied in conformity with the relevant obligations of GATT 1994.  The
Working Party took note of this commitment.
Tariff rate quotas, tariff exemptions
45. 42.        Some members noted that Lithuania used tariff quotas to provide for temporary
import relief for goods in short supply.  Lithuania was asked to specify the goods subject to tariff
quotas and to explain the operation of the quota system. Lithuania should also provide a justificationfor the system, some information on the portion of imported products affected, and outline plans forthe disposition of the system after Lithuania's accession to the WTO.
46. 43.        
The representative of Lithuania replied that tariff quotas were opened under
Government Resolution No. 653 (8 May 1995), implementing the Law on State Regulation ofEconomic Relations in Agriculture (22 December 1994). The list of products currently subject togeneral tariff quotas due to short supply is reproduced in Table 5.  He confirmed that imports from all
countries were afforded the same access under the general tariff-rate quotas.
47. 44.        
The general tariff quotas allowed importation at zero (or reduced) tariffs for a very
limited number of agricultural commodities and a few industrial products.  The application of tariffquotas was intended to be temporary;  they were granted only when domestic production of a certain
commodity or products, combined with imports at the MFN tariff rate, would be insufficient to satisfydomestic demand.  If such a shortage was deemed imminent in Lithuania, the tariff quota amountwould be determined and a public tender announced in the Official Gazette.  Enterprises requestingquotas or participation in tenders submitted application forms to the responsible Ministry.  Tariff rate
quotas for the main agricultural products and foodst uffs were auctioned to the highest bidder, and
tariff quotas for some products (such as pure-breeding animals and poultry, semen, boars, etc.) were
provided to applicants without restriction.  Domestic sugar processors were required to exhaust the
supply of domestic raw sugar before being allowed to import raw or white (refined) sugar at zero duty
under tariff quotas.  Domestic sugar producers could import unlimited quantities of raw or white sugarat the MFN over-quota duty rate any time.  Concerning  the allocation of the tariff-rate quotas for raw
sugar, the Government (Ministry of Agriculture and Forestry) would select one or more suppliersbased on quality and price which subsequently concluded contracts with domestic processors havingfilled their purchasing quotas for domestic sugar beets.  Lithuania currently had four domesticWT/ACC/SPEC/LTU/8/Rev.3
Page 17
processors which all met their local purchase quotas, and zero-duty imported raw sugar was allocated
equally, i.e. in 25 per cent shares, among them.  Entitlements to tariff quotas for irregular transparentglass bottles was automatic upon presentation of the application and the sales contract.  Tariff quotas
for special ships furniture was imported by a State shipyard ;  domestic production of furniture was
increasing and the tariff quota was expected to be abolished in 1997   had been abolished.
48. 45.        A member requested a commitment paragraph addressing the disposal, prior to
accession, of Lithuania's requirement to use domestic sugar prior to allowing imports.  In reply, the
representative of Lithuania said that the State would guarantee appropriate conditions for thecultivation and processing of domestic sugar beet by the regime to be established in accordance withthe new Law on Sugar (under consideration).  Special prices would be established annually for sugarproduced under quotas, purchased sugar beet, and sugar sold from factories.
49. [Some members reiterated their request for more information concerning the new Law on
Sugar.  In particular, expressions such as "appropriate conditions", "State guarantees", "special prices"
and "quotas" required further clarification.  Until the provisions of the new Law on Sugar (under
preparation) would be known, a member reserved on all aspects of the report and protocol addressing
the restrictions, subsidies, and other requirements in this area.]
50. [The representative of Lithuania said that from the date of accession any application of tariff
rate quotas would be in accordance with the provisions of Article XIII of GATT 1994.  The Working
Party took note of this commitment.]
Fees and charges for services rendered
51. 46.        The representative of Lithuania said that, in accordance with the Law on Stamp Tax
of 23 June 1994 and rates established through Resolutions No. 1123 of 11 November 1994 andNo. 640 of 23 June 1997, stamp taxes were levied for the issuance of official documents (such aslicences) as well as for the provision of certain services by government institutions, including customsclearance operations.  Stamp taxes were collected by the institutions responsible for issuing theappropriate documents.  The State Tax Inspectorate of the Ministry of Finance controlled how theseinstitutions collected the Stamp Taxes.  He stated that the Stamp Tax was set at different ratesdepending on the nature of the product and the type of service provided.  Customs services feesWT/ACC/SPEC/LTU/8/Rev.3
Page 18
amounted to 20 to 30 Litas for the registration of goods and 25 Litas for the issuance of documents,
including certificates of origin.  The stamp taxes applicable for the processing of imports by customsand for other purposes related to trade are enumerated in Table 6.  He stated that these fees andcharges were related or limited to the approximate cost of the services rendered.  Additional customsfees were assessed for supplementary services such as customs formalities performed outside theCustoms office or outside its normal business hours, for the supply of non-confidential informationfrom the database of the Customs Department, etc.  At the request of a member seeking clarification
whether taxes on trade activities were collected by Lithuania's consulates abroad, in particular
whether formalization of export or import documents was required at consulates prior to shipment, healso provided information on consular fees, underlining that these fees were not related toimportation, exportation or transit issues.
52. [A member asked whether the list of stamp taxes in Table 6 was comprehensive, and noted
that while these fees were not large, they did not seem related to any service other than generating
revenue.  This member reserved on this issue until Lithuania clarified why these taxes were applied,
their scope in trade and domestic use, and why they seemed to be clustered on import trade.  In reply,
the representative of Lithuania said that the list of stamp taxes provided in Table 6 covered the fees
and charges for services rendered relating to importation and exportation, and the list was
comprehensive.  The stamp tax fees covered the cost, and no more, of supplying the indicated
services.]
53. 47.        The representative of Lithuania said that Lithuania would ensure that any fees and
charges for services rendered introduced in the fu ture would only be applied in conformity with the
relevant obligations of GATT 1994, and from the date of accession any application of fees and
charges by Lithuania for services rendered on or in connection with importation [  or exportation ]
would be in accordance with the relevant provisions of the WTO Agreements, in particular
Articles VIII and X of GATT 1994.  The Working Party took note of this commitment.
Application of internal taxes to imports
54. 48.        Some members of the Working Party asked Lithuania to enumerate the products
subject to excise taxes, comment on the use of specific rates and confirm whether imported and
domestic products were treated equally.  A member noted "small" breweries were exempted fromexcise tax and that imported cigarettes attracted the highest excise tax rate, while taxes onWT/ACC/SPEC/LTU/8/Rev.3
Page 19
domestically-produced cigarettes were differentiated according to quality.  Lithuania was asked to
explain how this treatment could be consistent with  Article III of the GATT 1994.  Specific questions
concerning the taxation of cigarettes also referred to the link between excise taxes and customs duties.
55. 49.        The representative of Lithuania provided the information on product-specific excise
taxes [reproduced in Table 7].  Rates were ad valorem , in some cases specific minima had been
established (in Litas per unit).  Lithuania had no plans to convert specific amounts into ad valorem
rates since large price differentials existed between domestic and imported goods.  On domestic
products, excise taxes were levied on the selling price exclusive of VAT;  the tax base for imports wasthe customs value inclusive of customs duties.  He said that excise taxes were
 had been differentiated
(based on quality) for certain domestically-produced and imported wine, beer and cigarettes.Lithuania had taken concrete steps to bring its excise taxes on cigarettes into conformity withGATT Article III.  As from 1 January 1998,
 Differentiated excise taxes had been abolished for both
imported and domestically-produced filter-tipped would be subject to the same tax rate,  cigarettes
according to Government Resolution No. 393 of 3 April 1998.  The preferential excise tax treatment
of small breweries was a transitional measure which Lithuania intended to equalize by the time of its
accession to the WTO , according to the Resolution imposing this tax, would expire on the date of
WTO accession.  Imported wine was no long er taxed at differentiated rates.
56. [A member requested Lithuania to:  (i) explain exactly what it would do concerning the
preferential tax on small breweries;  (ii) confirm that the differential treatment of tobacco excise taxes
for "Philip Morris Lietuva" and "House of Prince Lietuva" [Table 7, footnote] had expired and that all
tobacco products were taxed equally;  (iii) explain the exemption for a jet fuel joint venture;  and
(iv) explain why meads were taxed at a rate different from other distilled spirits, reminding Lithuania
that a preferential tax rate for a domestic product was not consistent with GATT Article III.  In reply,
the representative of Lithuania said that excise tax was not applied on jet fuel imported by the
companies "Lietuvos avialinijos" and "Lietuva",  purchased from the company "Mazeiku nafta",
because there were almost no internal flights within Lithuania, thus the jet fuel purchased was
consumed almost exclusively outside Lithuania's territory.]
57. 50.        Some members of the Working Party asked about the application of value added tax
in Lithuania, including the basis for taxation of imported products.  A member asked for a
clarification on the treatment of imported like-pr oducts in the light of Article III of the GATT 1994,
noting that Lithuania applied a reduced rate of VAT to some agricultural products of domestic origin.WT/ACC/SPEC/LTU/8/Rev.3
Page 20
58. 51.        The representative of Lithuania said that value added tax of 18 per cent was charged
on goods and services.  Goods imported into bonded warehouses and all exports were zero rated, anda number of goods and services were exempt from VAT (Table 8).  Provisions regarding VAT werechanged in 1995 and 1996;  a temporary rate of 9 per cent and exemptions from VAT for someproducts were applied until 1 January 1997.  Since that date, both domestic and imported productswere subject to 18 per cent value added tax.  The tax base for the imposition of VAT included excise
taxes, if any, and customs duties on imported products.
59. 52.         [The representative of Lithuania said that, from the date of accession, Lithuania
would apply national treatment with regard to the rate of all the internal taxes and charges on both
imports and domestically produced products.  The   Working Party took note of this commitment.]
[The representative of Lithuania stated that, from the date of accession, Lithuania would apply its
domestic taxes on products, including those listed on products  in paragraphs 49 and 51 and  [55 and 58
and] Tables 7 and 8 in strict compliance with Article III of the GATT 1994, in a non-discriminatory
manner to imports regardless of country of origin and to domestically-produced goods.  The Working
Party took note of this commitment.]
Quantitative import restrictions, including prohibitions, quotas and licensing systems
60. 53.        A member sought an undertaking from Lithuania that any quantitative import
restrictions inconsistent with Article XI of the GATT 1994 would be eliminated on accession.  This
member also noted a ban on imports of alcoholic beverages with more than 50 per cent alcohol
content, although one such beverage (mead) was produced domestically by a State-trading enterprise,
and stated that this practice was not justifiable under Article XX of the GATT.  Lithuania was
accordingly asked how it  intended to address this issue.
61. 54.        The representative of Lithuania stated that Lithuania did not maintain import
prohibitions other than a ban on the import of snuff and chewing tobacco (HS 2403.99.10.0), whichwas administered in conjunction with a ban on domestic production of the same products whichwould be justified under Article XX(b) of the GATT 1994 [, and a ban on the importation and
production (with one exception) of beverages with alcohol content of more than 50 per cent.  (system
under amendment - the draft Law concerning abolition of the ban on imports of mead/alcoholicWT/ACC/SPEC/LTU/8/Rev.3
Page 21
beverages with more than 50 per cent alcohol content has been approved by the Government and is
currently being considered by Parliament) ]  Lithuania did not maintain any import quotas.
62. 55.        Information on import licensing procedures according to the format applicable to
WTO Members was provided to the Working Party in documents WT/ACC/LTU/7/Add.1 and
WT/ACC/LTU/19 (the section "Trading Rights" and Tables 3.1 and 3.2 contain information on
licensing of business activities).  The representative of Lithuania stated that Lithuania did not
maintain any import licensing restricti ons other than for the following goods:
- narcotics and other controlled substances (HS codes 1211; 1301; 1302; 2905; 2918; 2921;
2922; 2924; 2925; 2926; 2932; 2933; 2934; 2939; 2914.30.10; 2924.29.50; 2932.90.75;2932.90.77;  2939.40.10;  2939.40.30;  2939.60.10;  2939.60.30;  2939.60.50;  2939.90.71)   -justified under Article XX(b);
- goods and loads of dual purpose (civil and military), means of defence, chemical and
biological materials which can be used in the production of chemical and bacteriological
weapons of mass destruction;  nuclear missiles, equipment and technologies;  and goods and
technologies used in the production of missiles - justified under Article XXI;
- dangerous loads (United Nations list of goods - justified under Article XXI);- used tyres (HS 4012.20.90) and electric fishing tackle (HS 8543.80.80.0) - justified under
Article XX for reasons of environmental protection.  The Ministry of Environment Protection
would grant  criteria for granting permission to import used tyres against documentation
regarding delivery of tyres unfit for use (50 per cent of the imported quantity), the importing
were based on the importer presenting evidence to the authorities that he had contracted the
delivery of the equivalent of half the quantity to be company possessing an equipped storage
room and, for the restoration of used tyres,  imported to a company specializing in the
processing or utilisation of used tyres and that he possessed storage facilities for tyres.  The
importer should also own equipment for restoration of used tyres,  and he should have
permission from the authorities to use natural  national  resources.
Common requirements for the issuance of import licences were:  the application;  the certificate ofenterprise registration;  the statutes of the enterprise;  a tax inspection certificate confirming all
income declared and taxes paid;  a certificate from the Customs Office regarding compliance withWT/ACC/SPEC/LTU/8/Rev.3
Page 22
customs obligations;  confirmation of payment of Stamp taxes;  and, in the case of rental, the lease
contract for storage or warehouse premises.
63. 56.         [The representative of Lithuania said that Lithuania would not introduce or maintain
quantitative import restrictions inconsistent with WTO, in particular Article XI of the GATT 1994,
and would observe WTO obligations on import licensi ng procedures.  The Working Party took note of
these commitments.]  [ The representative of Lithuania confirmed that Lithuania would, from the date
of accession, eliminate and shall  would not introduce, reintroduce or apply quantitative restrictions on
imports or other non-tariff measures such as licensing, quotas, bans, permits, prior authorization
requirements, licensing requirements and other restrictions having equivalent effect that cannot bejustified under the provisions of the WTO Agreement [ , including those described in paragraphs 54
and 55  [61 and 62].  He added that import licences required for importation described in
paragraphs 54 and 55 were  [61 and 62] would be granted automatically to all who requested them or
were otherwise justifiable under WTO provisions, and would not restrict the [ right to ]  import [of]
these products into Lithuania or in any way discri minate against imported products ].  He further
confirmed that the legal authority of the Government of Lithuania to suspend imports or exports or to
apply licensing requirements that could be used to suspend, ban or otherwise restrict the quantity of
trade would be applied from the date of accession in conformity with the requirements of the WTO, inparticular Articles XI, XII, XIII, XIX, XX and XXI of the GATT 1994, and the Multilateral Trade
Agreements on Agriculture, the Application of Sanitary and Phytosanitary Measures, ImportLicensing Procedures, Safeguards and Technical Barr iers to Trade.  The Working Party took note of
these commitments. ]
Customs valuation
64. 57.        Noting a statement by Lithuania that existing legislation did not incorporate all
provisions of the GATT 1994 Customs Valuation Ag reement, Lithuania was requested to explain
which provisions were missing and detail plans for the introduction of these provisions.  Somemembers further noted that Government Resolutions No. 751 of 25 June 1996  and No. 895 of7 August 1997 appeared to authorize reference prices on imports.
65. 58.        
The representative of Lithuania said that the general principles regarding customs
valuation were laid down in Article 10 of the Law on Customs Tariffs (1993) and implemented
through Government Resolution No. 449 of 16 June  1993  Chapter 6 of the Customs Code.  This
legislation did not contain all the provisions of the GATT 1994 Agreement on Implementation ofWT/ACC/SPEC/LTU/8/Rev.3
Page 23
Article VII, including its Article 1(2)(b) and (c), Article 6(2), Article 7(1) (reference to the principles
and general provisions of the Agreement) and 7(2), Article 14 and Article 15(2)(d) and (e), andArticle 15(5).  Most of the provisions missing in the present legislation would be incorporated in a
new Order of Customs Valuation of Goods [almost ready and will be provided to the Secretariat for
circulation to the Working Party as soon as possible], which would respect fully Article VII of the
GATT 1994.  Moreover, the new Customs Code, expected to enter  which entered  into force on
1 January 1998, repeated verbatim the provisions on customs valuation of the GATT 1994
Agreement.  The new Code and its implementing legislation, modelled on the regulations of the
European Communities, would contain  contained new WTO-conform provisions in several areas,
including on prohibited valuation methods, notification to importers, confidentiality, the valuation ofcarrier media bearing software for data processing equipment, and the valuation of interest charges.
66. 59.        
The representative of Lithuania confirmed that Government Resolution No. 751 of
25 June 1996  introduced minimum import prices (amended by Government Resolution No. 895 of
7 August 1997  No. 751 of 22 June 1998) for sugar, grain and products thereof, and crude oil   poultry,
forage products, leguminous vegetables, oil and products thereof, matches and corrugated sheets  as a
transitional measure to be abolished before Lithuania became a Member of the WTO.  The Law onSugar and the Law on State Regulation of Economic Relations for Agriculture also granted thegovernment authority to establish minimum import prices.  The authority to establish minimumimport prices was not included in the new Law on Sugar (in preparation).  He added that on 25 June1996, Lithuania had approved Government Resolution No. 751 on Customs Assessment of Prices forImported Goods (amended by Government Resolution No. 504 of 24 April 1998).  According to this
Resolution, ministries responsible for trade issues established a special price list ("price-in-checking"system), to be reviewed every three months, for certain imported goods to fight customs fraud.[Products covered by the system are enumerated in Table 9 document WT/ACC/LTU/12, pages 13-
14.]  The established order of customs valuation was followed for goods not included in the special
list.
67. 60.        Concern was expressed about the "price-in-checking" system and Lithuania was
asked to explain in detail why the system would not constitute a minimum price scheme.  A minimum
import price could not be considered a transaction value as defined in the WTO Customs ValuationAgreement, and the process of using "price-in-checking" did not conform to the hierarchy of othervaluation methods provided for in the Agreement and in Lithuania's new Customs Code.  Lithuania
was urged to use WTO-consistent provisions to assess valuation of imports;  the "price-in-checking"
system should not be in place after Lithuania's accession to the WTO.WT/ACC/SPEC/LTU/8/Rev.3
Page 24
68. 61.        The representative of Lithuania explained that prices in the special list were utilised
in the assessment of duties and taxes when importers were unable to substantiate declarations of alower customs value, or to provide information to allow the other methods of customs valuation (non-transaction value) to be used.  The importer was normally asked to demonstrate that the value of theimported goods approximated the value of identical or similar goods imported and sold in Lithuania.Deductions would be made for expenses on commissions and the value would be adjusted for profit
and general expenses, transportation and insurance costs, import duties and taxes, etc.  Article 6 of the
Law on Customs allowed all decisions taken by the customs authorities, including "price-in-checking"decisions, to be appealed to the Customs Department and/or the Court.  The "price-in-checking"system was a transitional measure, and would not be part of the new Customs Code.  The "price in
checking" system would accordingly be discontinue d when the new Customs Code entered into force
on 1 January 1998  its application had been extended until the date of membership in the WTO
through Government Resolution No. 1511 of 31 December 1997.  In any case, in his view, these
checking prices did not constitute a minimum price system.
69. 62.        Having reviewed the new Customs Code with respect to customs valuation, a member
noted that its provisions did not seem to repres ent full implementation of the WTO Agreement on the
Implementation of Article VII of the GATT 1994.  Article 29 appeared to permit customs valuationbased on measures inconsistent with the Agreement, the Interpretative Notes of the Agreement werenot fully incorporated,  Articles 2 to 6 of the WTO Agreement were implemented on an incompletebasis, the Code contained no legal reference to the provisions of Article 7.3 of the Agreement(importers' right to a written explanation of alternative valuation methods), the wording of Article 33of the Customs Code regarding the dutiability of royalty payments was somewhat broader than theWTO Agreement,  Article 35 of the Customs Code did not commit Lithuania to valuation of software
based on the value of the media and the Customs Code contained no legal counterparts to WTO
provisions regarding confidentiality, right of appeal and the right to a written explanation.
70. 63.        
The representative of Lithuania replied that the concern regarding Article 29 of the
Customs Code was a misunderstanding arising from a translation error;  the Article required the rulesof customs valuation laid down by the Customs Code to be used in all cases when import taxes, other
than import duties, or value-based import prohibitions or restrictions, were applied.  Some of theInterpretative Notes of the Agreement were not incorporated in the Customs Code, but would beincluded in the Implementing Provisions (on customs valuation) of the Customs Code.  These
provisions were currently in preparation [almost ready ] and would also  enter into force onWT/ACC/SPEC/LTU/8/Rev.3
Page 25
1 January 1998  upon Lithuania's accession to the WTO.  The Implementing Provisions of the
Customs Code would incorporate the provisions of Articles 2-6 of the WTO Agreement missing in
Article 31 of the Customs Code, the definitions set forth in paragraphs 1 to 3 and in paragraph 5 ofArticle 15 of the Agreement, and the provisions c oncerning valuation of software based on value of
the media.
71. 64.         A new
 The current Order of Customs Valuation of Goods, based on the appropriate
provisions of the Code and incorporating most of the above-mentioned provisions, had been adopted
by Government Resolution No. 897 of 11 August 1997.  This Order was based on the Implementing
Provisions of the Community Customs Code (Commission Regulation 93/2454/EEC) and containedthe following provisions missing in the pr evious Order on Customs Valuation of Goods:
- definitions of "produced goods", "identical goods", "similar goods" and "goods of the same
class or kind" (Articles 15(1), (2) and (3) of the GATT 1994 Agreement on Implementation ofArticle VII);
- provisions governing the application of test values in case of sales between related persons
(Articles 1(2)(b) and (c) of the Agreement);
- provisions concerning prohibition to require any person not resident in the territory of
Lithuania to produce records for the purposes of determining a computed value (Article 6(2)
of the Agreement);
- provisions concerning application of reasonable means consistent with the principles and
general provisions of the Agreement (Article 7(1) of the Agreement);
- a list of prohibited valuation methods (Article 7(2) of the Agreement);- provisions indicating that the sole agent, sole distributor or sole concessionaire shall not be
treated as a person related with the seller (Article 15(5) of the Agreement);
- provisions concerning rates of exchange of the Litas;
- provisions governing customs valuation of goods in case of successive sales (e.g. in customs
warehouses);
- provisions concerning place of introduction into the customs territory of Lithuania;- provisions concerning valuation of carrier media for use in ADP equipment;- provisions concerning the lodging of a value declaration;- requirements applied to the supporting documents (commercial invoices, contracts,
transportation and insurance documents, etc.);  and
- provisions concerning the valuation of used cars.WT/ACC/SPEC/LTU/8/Rev.3
Page 26
The new Order of Customs Valuation of Goods would enter into force upon Lithuania's accession to
the WTO.  Until then, the current Order, which repeated the regulations of the Customs Code, would
remain in force.
72. 65.        Regarding the right to written explanation an d appeal, he said that Article 5 of the
Customs Code covered requests of importers concerning explanation of alternative valuation methods.Customs was required to respond in writing to written requests.  In case of rulings against the
applicant, this information would also set out the grounds on which Customs had based its decision.
The right of appeal was provided for in Article 226 of the Customs Code.  He acknowledged that theCustoms Code contained broader wording regarding th e dutiability of royalty payments than the WTO
Agreement, but noted that the wording of paragraph 1(3) of Article 33 of the Customs Code had beentaken from the Interpretative Note to paragraph 1(c) of Article 8 of the Agreement.
73. [66.      
The representative of Lithuania stated that the system of import reference prices,
including those applied to sugar and petroleum , grain and products thereof, poultry, forage products,
leguminous vegetables, oil and products thereof, matches and corrugated sheets, as well as the system
of "price-in-checking", would be eliminated prior to  upon accession, and that such measures would
not be reintroduced except in accordance with WTO Agreements.  The Working Party took note ofthis commitment. ]
74. 67.        The representative of Lithuania confirmed that as from the date of its accession
Lithuania would not use any form of reference price of fixed values to establish the value of importsand exports for customs purposes.  He also stated that from the date of its accession Lithuania'scustoms valuation legislation and practice would be in full conformity with the relevant WTOprovisions, including Article VII of GATT 1994 a nd the Agreement on Implementation of Article VII
without any transition  period.  Lithuania would implement Decision 4.1 of the Customs Valuation
Committee concerning the valuation of carrier media bearing software for data processing equipmentfrom the date of its accession.  The Working Party took note of this commitment.
Other customs formalities
75. 68.        The representative of Lithuania said that Lithuania followed the work of the World
Customs Organization and the WTO regarding a harmonization programme for non-preferential rulesof origin.  In the meantime, Lithuania was taking into account and implementing the results of theWT/ACC/SPEC/LTU/8/Rev.3
Page 27
WTO negotiations to maintain a transparent system fo r non-preferential rules of origin;  to administer
these rules of origin in a consistent uniform, impartial and reasonable manner;  and to base these rulesof origin on a positive standard.  According to Article 10 of the Law on Customs Tariff
 Chapter 6 of
the Customs Code and Government Resolution No. 1077 of 1 October 1997 On the Order of
Determination of Non-Preferential Origin of Goods cu rrently in force, goods originated in a country if
wholly obtained or produced in that country or, if more than one country was involved, where the raw
materials or components underwent substantial, economically justified processing or working.
Processing or working was considered substantial if resulting in a change in four-digit HS tariff
heading for the new product, in other cases also when the value of materials or components which did
not have country origin status formed more than 50 per cent of the costs of production of goods, as
well as for goods having undergone specific processing methods as indicated in Government
Resolution No. 1077.  These criteria applied in respect of goods originating in countries enjoying
most-favoured-nation status in Lithuania.  Imports from these countries satisfying the origin criteriawould be subject to conventional (i.e. MFN) tari ff rates, otherwise the (normally higher) autonomous
tariff rates would apply.
76. 69.        
He added that Chapter V of the new Customs Code, which was scheduled to enter
entered into force on 1 January 1998, provided the framework for the application of non-preferential
rules of origin which, in his view, were WTO-consistent.  Those provisions stated, inter alia , that the
originating status of a particular good was either the country where the good had been whollyobtained or, when more than one country was concerned in its production, the country where the lastsubstantial transformation had been carried out.  The criteria under which products were deemed to be
new, and their processing or working considered to be representing an important stage of
manufacture, would be established by international agreements concluded between Lithuania and
other countries or by the Implementing Provisions of the new Customs Code.  According to the new
Law on Customs Tariff, which entered into force on 1 July 1998 and replaced the old Law, the
country from which goods were imported into Lithuania was defined according to the regulations of
the Customs Code and international agreements.  The Implementing Provisions on rules of origin of
1 October 1997 were based on the Implementing Provisions of the Community Customs Code.
77. 70.        A member reviewed the information provided by Lithuania and was not convinced
that Lithuania's  rules of origin system met the procedural obligations in the WTO Agreement onRules of Origin.  Specifically, regarding preferential rules of origin, Lithuania was asked to confirmthat administrative determinations of general application for preferential rules of origin were issued;
that when issuing administrative determinations of  general application, the method for calculating theWT/ACC/SPEC/LTU/8/Rev.3
Page 28
ad valorem  percentage criterion would be indicated in the preferential rules of origin;  that
assessments of the preferential origin accorded to a good were issued as soon as possible, but no laterthan 150 days after a request for such an assessment by an exporter, importer, or any person with ajustifiable cause;  and that any administrative actions taken in relation to the determination ofpreferential origin was reviewable promptly by judicial, arbitral or administrative tribunals orprocedures, independent of the authority issuing the determination.  Lithuania was also asked toclarify the role of "independent experts" in the determination of rules of origin.
78. 71.        
The representative of Lithuania replied that preferential rules of origin, which formed
an integral part of all free trade agreements concluded by Lithuania and enjoying the status of law,were applied in accordance with the implementing regulations of the Customs Department (currentlythe Order of Application of Preferential Duties of 4 July 1997).  All free trade agreements in force had
been published in the Official Gazette.  The method for calculating the ad valorem  percentage was
indicated in the preferential rules of origin and Lithuania applied it in the same manner as the
European Communities; EFTA States and CEFTA countries.  Pursuant to Government Resolution
No. 774 of 16 October 1992, all complaints, requests or suggestions of exporters, importers or any
other person, including requests concerning assessments of preferential origin, were to be considered
within one month. The new Customs Code contained similar provisions on the examination ofrequests; where request for a decision was made in writing the decision should be made within 8working days, unless laws and other legal acts provided another term and a decision requiringadditional information should be made within thirty working days. Exceptionally, the customs
authorities could exceed the stipulated period by up to 10 working days. The applicant would beinformed in writing of the decision or the extension of the period necessary for the examination of therequest.  According to the Law on Customs currently in force, legal and natural persons had the rightto appeal against all decisions taken by customs authorities including the determination of preferential
origin to the Customs Department and/or to the Court.  The new Customs Code also contained a
chapter regulating the procedure of appeals against decisions taken by the customs authorities.
79. [A member stated that Lithuania seemed to be aggressively avoiding a description in the
Report of its preferential rules of origin.  The representative of Lithuania was surprised by this
statement regarding preferential rules of origin.  He pointed out that no summary of preferential rules
of origin appeared in accession Reports that had been adopted recently or were about to be adopted.
The text in paragraph [78] responded to all points made in paragraph [77].  Lithuania was not
"aggressively" avoiding any response to reasonable requests by members of the Working Party.]WT/ACC/SPEC/LTU/8/Rev.3
Page 29
80. 72.        Concerning the "independent experts", the representative of Lithuania said that these
were enterprises dealing with examination of goods produced in Lithuania or exported fromLithuania,  including verification of prices and preliminary assessment of preferential origin. Theassessment procedure for goods produced in Lithuania was established by the Ministry of Industryand Trade and Customs Department on 26 March 1993.  Such examination was not obligatory forexporting companies; they could present document s proving the origin of goods or their own
motivated conclusions.  The experts were required to pass a test at the Customs Department once a
year;  11 "independent experts" had been certified for 1997.  The experts were normally employees ofcompanies carrying out such examinations, i.e.  "Beckmann & Jorgensen kontrole" (Klaipeda), the
Joint Stock Company Ltd. "Siauliu prekiu ekspertize" (Siauliai), the Joint Stock Company"Impeksservis" (Vilnius), "Kauno prekiu ekspertize" (Kaunas), Vilniaus regioniniai prekybos,
pramones ir amatu rumai, and Vokietijos ribotos atsakomybes bendroves  the regional Chamber of
Commerce and Trade of Vilnius and the representative office in Lithuania of the German company
"Praezisa Industrieelektronik" atstovybe Lietuvoje  (Vilnius).  Most of these enterprises were members
of the Lithuanian Association of the Goods’ Examin ation Enterprises. According to the procedure for
assigning experts approved pursuant to the Statute this Association, the experts were prohibited from
disseminating confidential information.  The procedure for assigning experts was based on the rules ofthe German Chamber of Commerce.  Customs was not bound by examinations performed by"independent experts", and in issuing documents on preferential origin of goods these examinationswould be verified once more.  He stressed that the "independent experts" did not evaluate whether ornot imported goods fulfilled the requirements of preferential rules of origin.
81. 73.        
Procedures had been streamlined for imports of small consignments and frequent
traders.  The 1996  new Customs Code contained appropriate provisions regarding the application of
simplified procedures.  Further work on simplification of existing procedures included the creation ofa Customs Information System based on the ASYCUDA package of UNCTAD and the establishmentof audit units at regional customs houses.  These steps should reduce delays in customs clearance ofgoods at the border.
82. [74.      
The representative of Lithuania confirmed that from the date of accession Lithuania's
application of rules of origin [ for both MFN and preferential trade ]  would be administered in
conformity with the provisions of the WTO Agreement on Rules of Origin.  The Working Party tooknote of this commitment. ]WT/ACC/SPEC/LTU/8/Rev.3
Page 30
Preshipment inspection
83. 75.        The representative of Lithuania said that Lithuania did not engage private sector firms
to carry out pre-shipment inspection.
Anti-dumping, countervailing duties and safeguard regimes
84. 76.        Some members of the Working Party requested information about the status of
legislation related to anti-dumping, countervailing duties and safeguard measures and its conformitywith WTO disciplines.  Lithuania was asked to provide an update on its intent and the development oflegislation.  A member reminded Lithuania that in the absence of the required legislation, Lithuaniawould not be able to avail itself of the temporar y protection mechanisms provided for in the relevant
WTO Agreements.
85. 77.        
The representative of Lithuania replied that Lithuania was working on a draft law on
anti-dumping which would follow  had approved a Law on Antidumping, which followed fully the
requirements of the WTO regarding anti-dumping, on 23 June 1998.  The Law had entered into force
on 1 July 1998 and implementing regulations concerning the determination of normal value, export
price, dumping margin, domestic industry and injury, and the procedure for spot investigation had
also been approved.  The draft law would be presented to the Government for consideration at the end
of 1997.   Lithuania was considering whether to draft and implement countervailing duty and
safeguard regimes.
86. 78.        The representative of Lithuania said that any legislation in place at the time of
accession or implemented in the future providing for the application of measures taken for safeguard,
anti-dumping or countervailing duty purposes would conform to the provisions of the WTOAgreements on Safeguards, on Anti-dumping and on S ubsidies and Countervailing Measures.  In the
absence of such legislative authority in place at the time of accession, Lithuania would not applymeasures for safeguard, anti-dumping or countervailing duty purposes until legislation in conformitywith the provisions of these WTO Agreements had been implemented.  The Working Party took noteof this commitment.WT/ACC/SPEC/LTU/8/Rev.3
Page 31
B. Export Regulation
Customs tariffs, fees and charges for services rendered, application of internal taxes to exports
87. 79.        The representative of Lithuania said that export duties ranging from 15 to 50 per cent
had been imposed temporarily on certain raw materials of importance to the local industry.  All theseexport duties were abolished in October 1994 by Government Resolution No. 985. Effective1 July 1996, all export prohibitions were lifted on certain raw materials
 of interest to the domestic
industry were lifted and replaced by export duties of 60 per cent, applied on an MFN basis, through
Government Resolution No. 268 of 24 March 1997.  These export duties were reduced from60 per cent to 30 per cent - except for the duty on certain types of log wood and unprocessed oak andash timber, which remained at 60 per cent - by Government Resolution No. 896 of 7 August 1997.  At
present, export duties were applied only on raw hides and skin, log wood and unprocessed oak and
ash timber.   [The products currently subject to export duties are listed in Table 10.1 .]  The export
duties applied on a bilateral basis remained in effect as these were somewhat lower than the dutiesestablished through Government Resolution No. 268 (discussed in further detail in the section "TradeAgreements" and Table 10.2.).  The representative of Lithuania confirmed that any changes in the
export tariff regime would be published in the Official Gazette.
88. 80.        Exported goods, with the few listed exceptions in [Tables 10.1 and 10.2], were
exempt from customs duties and VAT.  Lithuania maintained some customs fees on exportation as
part of the application of the Stamp Tax.  These fees were related or limited to the approximate cost ofthe services rendered.  The fees and charges are enumerated in [Table 6].  The new Customs Code,scheduled to enter
 which entered into force on 1 January 1998, provided a framework for the
implementation of a duty drawback system in its Section 6 pertaining to inward processing.Article 125 of Section  6 allowed the holder of an authorization (generally the importer) to request the
Government of Lithuania to repay an import duty wh en the authorization holder could prove that the
imported good had been exported as part of a compensation product (a product incorporating the goodoriginally imported).  The refunded duty was limited to the amount of import duties paid for theoriginally imported products included in the compensating product, and thus did not constitute asubsidy to the exporter.
89. 81.        
[A member stated that Lithuania should el iminate the difference in the application of
its export tariffs, and should commit that after accession, it would minimize the use of such taxes andthat they would be applied in accordance with the provisions of the WTO Agreement.]  The
representative of Lithuania said that use of export taxes would be consistent with WTO norms.  AnyWT/ACC/SPEC/LTU/8/Rev.3
Page 32
such taxes at the time of accession would be in the Working Party report, and that after .  After
accession, any subsequent use of such measures would be notified in this fashion to the WTO and
published in the Official Gazette and notified to the WTO.
Export restrictions
90. 82.        Some members of the Working Party noted that Lithuania restricted exports of
various goods.  Lithuania was asked to identify the measures maintained, the affected products, the
reasons why exports were restricted and to indicate any plans for future use of export restrictions.  Amember noted Lithuania's intentions to replace existing export prohibitions with export duties andrequested that Lithuania indicate specifically when this conversion would take place, and acommitment from Lithuania to phase out and eliminate the export duties in accordance with anegotiated timetable.
91. 83.        
The representative of Lithuania said that all previous export bans were abolished by
Government Resolution No. 716 (of 18 June 1996) and replaced by export duties (Tables 10.1 and
10.2).
92. 84.        Non-automatic licences were required only for exports of objects of cultural value
(made before 1950).  Licences were also required to engage in exportation of narcotics and highlyeffective substances (non-automatic), and oil products (automatic).  The Law concerning Control ofImport, Transit and Export of Strategic Goods and Technologies entering into force on 1 July 1997,stipulated licensing by the Ministry of National Economy for exports of dual use goods, technologiesand software.  As a temporary measure in 1995 continued through 1996, the Government had
maintained certain export restrictions during periods of short supply of grain, flour and compound
feed.  In the future, export quotas on agricultur al products would only be temporary measures applied
in emergency situations and, as from accession, in conformity with GATT 1994 obligations.
93. 85.        [Some members asked Lithuania to insert  provide the WTO justification for export
licences. ]   In reply, the representative of Lithuania said that automatic licensing for export of oil
products was maintained exclusively for statistical purposes and that the licences for dual use
products served to check and identify the use of the product at the foreign destination.]WT/ACC/SPEC/LTU/8/Rev.3
Page 33
94. The representative of Lithuania said that from the date of accession export restrictions would
[only] be imposed in conformity with the provisions of Article XI of the GATT 1994.  The Working
Party took note of this commitment.
Export subsidies
95. 86.        The representative of Lithuania said that Lithuania did not maintain any subsidies, but
provided information on export promotion measures.  The Government had adopted a Resolution On
Actions Improving Foreign Trade Regulation and Export Development in January 1995.  TheResolution covered drafting of legislation, export promotion and funding, management of trade-related information and education and training of export specialists.  Lithuania had also adopted aNational Programme of Implementation of Lithuanian Foreign Trade Policy Guidelines for1996-1998.  The programme included implementation of an export programme developed by theLithuanian Export Promotion Agency and the establ ishment of Export Support and Export Insurance
Funds.  Lithuania had also considered the development of a credit insurance system, but had yet todecide on its implementation.  In developing an e xport credit insurance model, Lithuania took into
account the recommendations of the OECD.  In August 1997, the Government had established a
closed joint-stock company "Lietuvos eksporto ir importo draudimas" (LEID) and formed an
interministerial commission - the Business Developm ent Council - to deal with export promotion
issues.
96. 87.        
LEID, which was minimum 51 per cent government-owned, insured bank loans
related to production and export of goods and services.  Responding to demands from the lendingbanks, companies concluded insurance contracts and paid the required premium to LEID.  TheGovernment had allocated 40 million Litas for the formation of the initial capital, reserves, etc. and
had issued State guarantees for insurance contracts amounting to 120 million Litas.  The Government
had the right to cover LEID losses related to the insurance of political risk.  He stated that LEIDactivities were based on the principles of the Berne Arrangement and recommendations of the OECD.The Business Development Council supervised LEID activities, decisions to assume losses of theLEID for insured political risks, etc.  In addition, the Council decided on the financing of other exportsupport measures, such as training, co-financing of exhibitions and fairs, preparation of prospects andcatalogues, co-financed introduction of international standards and quality systems, etc.  Some3.5 million Litas had been allocated for such purposes in 1997.WT/ACC/SPEC/LTU/8/Rev.3
Page 34
97. 88.        The purpose of the Lithuanian Export Promotion Agency, which was established at
the end of 1995, was to promote exports of Lithuanian goods and demand for Lithuanian services.  Itsmain functions were to analyze and provide information to Lithuanian exporters and service providerson foreign market conditions;  to establish Lithuania's trade representation offices abroad;  to prepare,implement and monitor trade development programmes  to ensure their consistency with WTO rules;
to study issues affecting trade activities and formul ate recommendations to Lithuanian authorities;  to
consult State, public and private institutions on foreign trade issues;  and to provide education and
training to the foreign trade community in Lithuania.  Recently, the Lithuanian Export Promotion
Agency and a sister agency focusing on encouraging foreign investment in Lithuania, the LithuanianInvestment Agency, had been brought under the umbr ella of a new agency - the Lithuanian Economic
Development Agency.
98. 89.        
[The representative of Lithuania said that Lithuania would  not maintain, and from
the date of accession would not introduce, subsidies which met the definition of a prohibited subsidywithin the meaning of Article 3 of the Agreement on Subsidies and Countervailing Measures [
 and
would therefore not seek a transitional period for the elimination of such measures ] .  The Working
Party took note of this commitment.]
C. Internal Policies Affecting Foreign Trade in Goods
Industrial policy, including subsidies
99. 90.        The representative of Lithuania expected some six years would be required to
restructure Lithuania's industrial sector.  Industries targeted for development included woodprocessing;  flax;  processing of skins and furs;  production of construction materials;  agriculturalmachinery;  new forms of energy;  waste pro cessing;  and production of medicines and medical
equipment.  Potentially competitive enterprises had been identified through indicators such as current
exports.  Government funding was limited.  Restructuring and promotion measures thereforeconcentrated on general improvements in the legal and economic environment.  Specific measuresincluded financial guarantees issued by the Government, the introduction of credit insurance, exportsupport measures including measures related to the implementation of a national quality programme,temporary tax exemptions and technical assistance from abroad.  Support was contingent onenterprises providing properly prepared business plans.WT/ACC/SPEC/LTU/8/Rev.3
Page 35
100. 91.        Referring specifically to the energy sector, the representative of Lithuania said that
domestic production of energy from local resources, including nuclear energy, had coveredapproximately 45 per cent of Lithuania's needs in 1996 and 41 per cent in 1997.  The share wasexpected to reach about 50 per cent by 2005 with increasing availability of domestic petroleumproducts and nuclear power.  The State-owned gas importer and supplier "Lietuvos Dujos" had beensubsidized to help offset the cost of imported natural gas and to compensate for low tariffs on
deliveries of heating and hot water to households.  Under a restructuring programme for the energy
sector the Government was considering plans for privatization that could affect "Lietuvos Dujos".
The Government was also reviewing its energy pricing policies.
101. 92.        
The representative of Lithuania said that Lithuania did  would not maintain, and from
the date of accession would not introduce, subsidies which met the definition of a prohibited subsidy,
within the meaning of Article 3 of the Agreement on Subsidies and Countervailing Measures andwould therefore not seek a transitional period for the elimination of such measures ]
.  [The Working
Party took note of this commitment.]
Technical barriers to trade, sanitary and phytosanitary measures
Standards and certification
102. 93.        The representative of Lithuania explained that Lithuania was in a process of transition
where mandatory (GOST) standards established under the former USSR system were replaced by anew system of voluntary standards and mandatory technical regulations.  The Lithuanian Standards
Board had membership status within various intern ational and European standardization organizations
to facilitate adoption of international and European standards in Lithuania.  The Lithuanian StandardsBoard was an affiliate member of the European Committee for Electrotechnical Standardization
(CENELEC) since 1997, a member of the European Committee for Standardization (CEN) since
1994, a member of the European Telecommunication Standards Institute (ETSI) since 1996, acorrespondent member of the International Organization for Standardization (ISO) since 1992, anassociated member of the International Electrotechnical Commission (IEC) since 1996, and acorrespondent member of the Organization for Legal Metrology (OIML) since 1994.  Lithuaniaconcentrated its resources toward implementation of a long-term programme covering approximately
600 international and European standards.  Lithuanian standards were drafted in technical committeesfollowing the principles defined by international a nd European standardization organizations.  [At this
point, Lithuania did not participate in the European Organization for Testing and Certification
(EOTC), the European Cooperation for Accreditation Laboratories (EAL) and the EuropeanWT/ACC/SPEC/LTU/8/Rev.3
Page 36
Accreditation of Certification (EAC).  The Lithuanian Standards Board would seek full membership
status in international and regional standardizat ion organizations, but future membership depended on
the availability of funding.]
103. 94.        A member noted that some of the legislation critical to the development of Lithuania's
standards regime was still in preparation and expected Lithuania to adopt all necessary legislation toimplement fully all obligations under the Agreement on Technical Barriers to Trade prior to the date
of accession.
104. 95.        
The representative of Lithuania said that work was under way to bring technical
regulations into conformity with the WTO Agreement on TBT.  A Law on Metrology had beenadopted in July 1996. Intended for presentation to the Government by the end of 1998 were a draftlaw on standardization which defined the organizati onal framework for standardization, including the
basic principles, functional requirements and main resources, and a draft law on conformityassessment which would apply to both mandatory and voluntary procedures, defining the structure ofthe conformity assessment system and covering accreditation, testing, supplier declarations,
certification and inspection.  Lithuania had established an Information Centre at the Lithuanian
Standards Board in November 1996.  This Centre, inter alia , fulfilled the function of the enquiry point
according to the WTO Agreement on TBT and would also provide notifications.  However, theInformation Centre was not fully operational yet.  Rules governing the exchange of information
between ministries involved in standards issues and the enquiry point would be drafted by early
 in the
course of 1998.  According to the draft law on standardization information on standardization policy
matters, draft standards and standards in force in Lithuania would be published in the official bulletinof the Lithuanian Standardization Board.  Lithuani a would introduce provisions allowing foreigners to
comment on technical regulations not consistent with international norms.  Plans existed to adopt the
Code of Good Practice and the notification require ments for voluntary standards as required in the
Annex 3 of the WTO TBT Agreement.  Lithuania woul d be able to adopt the Code of Good Practice
upon revision of its basic standards in the course of  1998.  Basic procedures for technical work would
be approved by the end of 1998.
105. 96.        
Lithuania's system of conformity assessment, notably the certification activities, was
based on normative documents prepared according to ISO/IEC guidelines, mainly ISO/IECGuides 22 and 28, and the Supplier's Declaration of Conformity.  Domestic and imported goods were
treated equally.  Lithuanian certification bodies could recognize certificates issued by foreign bodiesWT/ACC/SPEC/LTU/8/Rev.3
Page 37
in accordance with the relevant procedures.  Certification bodies had been established for mandatory
certification of electrical appliances (the Certification Centre of Electrotechnical Production inVilnius) and
, for general-purpose electronic equipment (the State Medical and Electronic Equipment
Centre of Certification "SERTIKA" in Kaunas) and for construction materials (the State enterprise
Certification Centre of Building Products in Vilnius).  The two  three  certification bodies based their
work on Government Resolution No. 474 of 22 June 1992 and , Order No. 160/114 of 29 June 1995 of
the Ministry of Industry and Trade and Lithuani a's Standards Board, and Government Resolution
No. 593 of 12 June 1997.  Lithuania was preparing mandatory certification requirements for technical
communication means, articles of computer engineering and agricultural equipment and construction
materials .
106. 97.        Foreign certificates for imported oil products needed to correspond to mandatory
quality indicators approved by the Lithuanian Standards Board.  Government Resolution No. 883(29 November 1993) On the Approval of Traffic Rules established technical inspection requirementsfor imported vehicles.  All pharmaceutical products required registration before being sold inLithuania.  Some other non-food items were subject to verification requirements under Government
Resolution No. 53/89 of 31 August 1994.  Marking regulations had been established by Order
No. 42/25/107 of 23 February 1995.  For other technical requirements see documentWT/ACC/LTU/7/Add.1.
107. 98.        
 Conformity assessment procedures were established by legal acts of responsible
government institutions.  The draft law on confor mity assessment did not contain specific guidelines
for testing laboratories, certification bodies, inspection bodies or  and  accreditation bodies, but
indicated that participants in the conformity assessment system should meet the requirements of
international and relevant European documents and other related regulations.  The draft law permitted
Lithuania to recognize product test reports and certifications performed under international guidelines.
Lithuania did not recognize a foreign country's certificate without a bilateral agreement.  Lithuaniahad signed agreements on mutual recognition of test reports and certificates of conformity withPoland, Slovakia, Bulgaria, Belarus, Russia and Ukraine;  agreements with the Czech Republic andRomania were under negotiation.  Cooperation agreements on accreditation between thecorresponding institutions of Lithuania, Latvia and Estonia had also been signed.  Lithuaniarecognized certificates of conformity of foreign countries after their registration
 performing their
recognition procedure by the relevant Lithuanian product  certification bodies.  Lithuania recognized
certificates for measuring instruments issued by the International Organization for Legal MetrologyWT/ACC/SPEC/LTU/8/Rev.3
Page 38
(OIML).  The representative of Lithuania stressed that no relationship existed between the
certification process and import licensing requirements.
108. 99.        The representative of Lithuania stated that Lithuania would ensure that its technical
regulations, standards, certification and labellin g requirements were not applied to imports in an
arbitrary manner, in a way that discriminates between supplier countries where the same conditionsapply or as a disguised restriction on international trade.
109. 100.      
 [ The representative of Lithuania stated that, upon accession to the WTO, Lithuania
would comply with all the provisions of the Agreement on Technical Barriers to Trade without
recourse to any transitional arrangements.  The Working Party took  note of this commitment. ]
Sanitary and phytosanitary measures
110. 101.      The representative of Lithuania said that Lithuania had renewed its membership in
the Organisation International des Epizooties (OIE) in 1992 and was following the requirements of
the Codex Alimentarius Commission and the European Plant Protection Organization (EPPO).
Lithuania expected to become a member of the EPPO in the course of 1998 and a member of the
International Plant Protection Convention (IPPC) by the end of 1999.  Lithuania was working to
conform its sanitary and phytosanitary measures with the requirements of the WTO.  Procedureswould be established for public notice and comment for all sanitary and phytosanitary measures.  Heprovided information on specific Lithuanian requiremen ts pertaining to seeds, fertilizers, pesticides,
animal and plant health, feeds, plant breeders' rights, fruit and berries, food additives andcontaminants, packaging and labelling standards, and inspections of meat, dairy products, eggs andegg products. [A member asked about Lithuania's inte ntions to join the International Plant Protection
Convention (IPPC).]   The requirements for items intended to be imported were the following:
-            seeds - presentation of phytosanitary certificate issued by the State Plant Quarantine
Inspection of the exporter country;
-            fertilizer - suppliers' declaration of conformity (or quality certificate), and products needed to
be identical to information stated on their label;WT/ACC/SPEC/LTU/8/Rev.3
Page 39
-            pesticides - product permitted to use in Lithuania and included in the national positive list of
pesticides prior to importation (in the sense of SPS requirements, fertilizers and pesticides
could be evaluated only as contaminants for quantity reasons);
-            plant breeders' rights - presentation of phytosanitary certificate issued by the State Plant
Quarantine Inspection of the exporter country;
-            fruit and berries, meat, dairy and egg products (all processed) - suppliers' declaration of
conformity;  actual chemical and contaminati on levels not to exceed the maximum limits set
by Lithuanian Hygiene Norms HN 54-1995 and HN 26-1994;   presentation of phytosanitary
certificate issued by the State Plant Quarantine Inspection of the exporter country;
-            meat and dairy products - sanitary control (inspection) of non-processed products at the
border;  for processed items, sanitary inspection by customs within Lithuania;
-            food additives - items needed to be included in the national positive list of food additives
(Lithuanian Hygiene Norm HN 53-1995);  suppliers' declaration of conformity (specification
of purity levels);  foodstuffs should comply with the food additives requirements established
in HN 53/1995;
-            contaminants - chemical and microb iological contamination levels of foodstuffs not to exceed
the maximum limits established in Lithuanian Hygiene Norms HN 54-1995 and HN 26-1995;
-            packaging - requirements laid down in Lithuanian Hygiene Norm HN 77-1998;  presentation
of phytosanitary certificate issued by the State Plant Quarantine Inspection of the exporter
country;  and
-            labelling - all requirements harmonized to Codex Alimentarius provisions;  labelling should
be in Lithuanian language.
Further information was provided to the Working Part y in a note entitled "Veterinary Requirements of
the Republic of Lithuania".
111. 102.      The representative of Lithuania provided "Information on Lithuania's Progress in
Implementing the Provisions  information on Lithuania's progress in implementing the provisions of
the WTO Agreement on Sanitary and Phytosanitary Measures in Annex I of  document
WT/ACC/LTU/10  WT/ACC/LTU/22 of 14 May 1998.  The submission listed the institutions
responsible for application of SPS measures;  relevant legislation pertaining to foodstuffs and foodsafety, non-processed agricultural commodities and animal health, and plant health;  and outlinedplans for recognizing equivalence of SPS regulations of exporting countries and implementation oftransparency provisions.WT/ACC/SPEC/LTU/8/Rev.3
Page 40
112. 103.      Imported foodstuffs were required to pass through border crossing points manned to
perform foodstuff controls.  The Ministry of Health Care had approved a list of foodstuffs subject toquality control, thus requiring phytosanitary, veterinary or health and quality certificates onimportation.  Products included in the list were set out in document WT/ACC/LTU/12, pages 20-21.Lithuania required veterinary and phytosanitary certificates for processed foodstuffs only to ensurethat imported products fulfilled appropriate veterinary and phytosanitary requirements (such as animalhealth and public health attestations).
113. In response to a request from a member for an explanation as to why processed foodstuffs
required a veterinary or phytosanitary permit, as these are consumer-ready products, the
representative of Lithuania said that veterinary certificates were requires for certain foodstuffs in
accordance with international rules as some processing methods (e.g. smoking of meat) did not
eradicate bacteria.  Phytosanitary certificates were not required for foodstuffs.
114. 104.      A member inquired about the relationship between foodstuff certification and import
licensing.  The representative of Lithuania replied that at present the Government approved a list of
products and foodstuff requiring certificates  subject to control on importation.  Foodstuff subject to
veterinary or phytosanitary import control in Lithuania (Table 11:  veterinary certificates required for
all raw and processed products of animal origin, a nd all unprocessed products of plant origin subject
to phytosanitary certification) required certification of each consignment.  The issuance of certificates
was coordinated between the State Veterinary Service and the Plant Quarantine Inspection at the
Ministry of Agriculture and Forestry .  For products subject to veterinary inspection (Table 12), the
importer should apply for an import permit to the State Veterinary Service stating details concerningthe product, its origin, the exporting country and the border crossing point.  An import permit wouldbe issued without delay provided the epizootic situation in the exporting country was propitious.  A
suppliers' conformity declaration would suffice for consumer products and other foodstuff (all
processed products of non-animal origin) not subject to veterinary or phytosanitary certification.
Exporters' own declaration would suffice for fertilizer.  Products not specifically listed were not
subject to certification or suppliers' declaration.  He added that Government Resolution No. 1106 On
the Approval of the Order on Import of Foodstuffs and Their Control of Harmless and Quality of9 October 1997 envisaged a new system for the importation of foodstuff.  In implementing thisResolution, the State Veterinary Service and the Nutrition Centre in the Ministry of Health Carewould prepare
 had prepared a register of foodstuff importers, entering into force on 1 July 1998.  The
register would improve  improved the surveillance and control of importers and guaranteed
importation of safe products only.WT/ACC/SPEC/LTU/8/Rev.3
Page 41
115. 105.      A member pointed out that Article 5 of the WTO Agreement on SPS required
Lithuania to carry out risk assessment.  A member expected Lithuania to establish its SPS enquirypoint and adopt all necessary legislation to implement fully all obligations under the Agreement onSPS by the date of accession to the WTO.
116. 106.       Regarding implementation of WTO provisions on sanitary and phytosanitary
measures, the representative of Lithuania said that Lithuania needed a transitional period to bring its
legal and institutional infrastructures for impl ementation into full conformity with the WTO
Agreement.  The enquiry point and notification functions required under the SPS Agreement might
not be fully operational by the time of Lithuania's accession to the WTO.  Lithuania's legal base for
implementing the Agreement was still being improved.   The representative of Lithuania said that
Lithuania was working hard to improve its scientific laboratories and equip them with high-quality
equipment and trained staff.  In the meantime, and given the evolving nature of its current system,
Lithuania would endeavour to apply all of its sani tary and phytosanitary requirements consistently
with the requirements of the WTO.   Further information on specific plans and ongoing efforts to
implement the SPS Agreement was provided in document WT/ACC/LTU/22.
107.       [Some members requested Lithuania to indicate which specific provisions of the SPS
Agreement it still had difficulty in applying and, Lithuania's legal base for implementing the
Agreement is still being improved.  Lithuania is working hard to improve its scientific laboratories
and equip them with high quality equipment and trained staff.  In the meantime, and given the
evolving nature of its current system, Lithuania will endeavour to apply all of its sanitary and
phytosanitary requirements consistently with the requirements of the WTO.  The representative of
Lithuania presented a requested for a transitional period to implement specific provisions of the
Agreement on the Application of Sanitary and Phytosanitary Measures, circulated as document
WT/ACC/SPEC/LTU/9 of 26 September 1997.]  Having reviewed that document, a member noted
that implementation of the Agreement did not appear to entail a complete overhaul of Lithuania's
system, and that Lithuania should be prepared for immediate implementation of the operational
requirements of the SPS Agreement, in particular the transparency and notification requirements,
which were essential to achieve the trade and public health objectives of the Agreement.
117. 108.       [ The representative of Lithuania stated that, upon accession to the WTO, Lithuania
would apply all its sanitary and phytosanitary requirements consistently with the requirements of the
WTO, including the Agreements on Sanitary and Phytosanitary Measures and Import LicensingWT/ACC/SPEC/LTU/8/Rev.3
Page 42
Procedures, without recourse to any transitional arrangements.  The Working Party took note of this
commitment. ]
Trade-related investment measures
118. 109.      The representative of Lithuania said that his Government had reviewed carefully the
provisions of the WTO Agreement on Trade-Rela ted Investment Measures (TRIMs), including its
Annex and had concluded that Lithuania did not maintain any measures inconsistent with the TRIMs
Agreement.  His Government applied the principle of national treatment and did not resort toperformance requirements which could affect trad e.  Lithuania was ready to implement fully the
provisions of the WTO TRIMs Agreement upon accession without exception or transitional periods.
119. 110.      
The representative of Lithuania confirmed that Lithuania would not invoke the
provisions of the TRIMs Agreement that provide for the progressive elimination of measuresinconsistent with the TRIMs Agreement within a fixe d period of time as it did not maintain any such
measures and would not introduce any such measures in the future.  The Working Party took note of
this commitment.
State-trading entities
120. 111.      The representative of Lithuania said that former State-trading enterprises were under
the jurisdiction of the Ministry of National Economy. The Law on Trade, adopted in January 1995,authorized the establishment of State monopolies in any sector in emergency situations (war, natural
calamities, etc.) and to protect health and safety.  He considered such measures consistent with theprovisions of the GATT 1994.  Exclusive rights existed for State enterprises, or special enterprises in
which the State held all or the majority of the shares, regarding trade in radioactive and nuclear
material and waste.  He added that the joint-stock company "Lietuvos energija" operated as a naturalmonopoly in the production, input, transmission and distribution of energy.  However, on
8 April 1997, the Seimas had approved the reorganization of "Lietuvos energija" into 16 thermalsupplier companies.  The Law on Amendments and Supplements of the Law on Enterprises of
25 September 1997 stipulated that two activities - the production of products with ethyl alcoholic
strength exceeding 22 per cent, and the printing of money, coins and postage stamps - could only be
undertaken by enterprises owned by the State or municipalities, or special enterprises.  Production of
beverages with high alcohol content was reserved for the company "Lietuviskas Midus" (system underWT/ACC/SPEC/LTU/8/Rev.3
Page 43
revision) .  [ Lithuania was considering notifying this enterprise as a State-trading enterprise. ]   H e
added that no agricultural products (except some alcoholic beverages) were covered by State-trading.
121. 112.      [A member understood that Lithuania used licences to allow commerce to a certain
point, and stated that Lithuania should notify firms under Article XVII of the GATT 1994 in areaswhere business licences were rationed arbitrarily or acted as quantitative restrictions.  Moreover,arrangements in the sugar processing sector rega rding an exemption from provisions in the Law on
Competition governing dominant firms, and the distribution of tariff-rate quotas, would appear to be a
special right within the meaning of Article XVII.  Current programmes were clearly WTO-inconsistent, whether or not they qualified under Article XVII.  Even if "Lietuviskas Midus" wasnotified as a State-trading enterprise, the import ban would still be problematic vis-à-vis GATTArticles III and XI.]
122. 113.      
The representative of Lithuania replied that his Government had not approved any
special rights for sugar refineries.  The Law on Competition would exempt the members of a sugarmanufacturers' association from certain of its provisions, but no such association has been formed yet.
Zero-duty imports under tariff-rate quotas were allowed in fixed quantities as a temporary measure by
the Government when imports of sugar at regular MFN rates proved insufficient to satisfy domesticdemand.
123. [A member said that Lithuania needed to decide how to organize its sugar trade after
accession.  If a refiners association had any role in import policy, or protected access to sugar imports
on a preferential basis, this should be indicated by Lithuania, and justified under appropriate WTO
Agreements and provisions, e.g. GATT, the Ag reement on Import Licensing Procedures and the
Agreement on Agriculture.  The commitment paragraph had no meaning if Lithuania and the Working
Party did not agree on how Article XVII and the U nderstanding were applied and what they would
mean for Lithuania's trade.]
124. 114.      The representative of Lithuania confirmed that his Government would apply its laws
and regulations governing the trading activities of State-owned enterprises and other enterprises withspecial or exclusive privileges and would otherwise act in full conformity with the provisions of theWTO Agreement, in particular Article XVII of the GATT 1994 and the Understanding on that ArticleWT/ACC/SPEC/LTU/8/Rev.3
Page 44
and Article VIII of the GATS[, and Article III and XI of the GATT 1994].  The Working Party took
note of this commitment.
Free zones, special economic areas
125. 115.      The representative of Lithuania said that no free economic zones were yet operational
in Lithuania.  A a Law on Free Economic Zones had been adopted in June 1995.  Each zone would be
established by separate law.  Certain activities would be prohibited in free zones, including
production, storage and sale of weapons, ammunition, explosives, dangerous and radioactivematerials, narcotics and poisonous substances;  manufacture of tobacco, spirits, securities, money andpostage stamps;  radio and television broadcasting;  hospitals;  gambling houses;  and organization oflotteries.  Licences would be required to carry out activities subject to authorization (see "TradingRights") within Lithuania.  Enterprises operating in a free zone would be exempt from customs duties,
excise taxes and VAT, but would be subject to profit tax, payroll taxes (including social insurance),tax on land rent, stamp tax, taxes on natural resources and pollution tax (amendment of Law on FreeEconomic Zones of 2 April 1996).  An enterprise established in the zone would benefit from an
80 per cent profit (income) tax reduction from the day of its registration for the first five years and a
50 per cent profit (income) tax reduction for the subs equent five years.  If a foreign investor acquired
at least 30 per cent of the authorized (ownership) capital of an enterprise registered and operating inthe zone, and invested not less than US$1 million of capital of foreign origin, the enterprise would beexempt from profit (income) tax for 3 years after the enterprise began making a profit
 5 years from
the day of its registration.  The enterprise would benefit from a 50 per cent profit (income) tax
reduction for the subsequent 10 years.
126. 116.      Thus far, Parliament had adopted separate laws for the establishment of free
economic zones in three cities - Siauliai, Klaipeda and Kaunas.  In this connection, the Government
had organized tenders to select the company or group of companies to govern the zone, and asubsequent tender to determine the companies operating in the zone.  Both foreign and domesticcompanies could participate in these tenders, provided they prepared an entrepreneurship project,including estimates of proposed investment in the infrastructure of the zone.  International tenders had
already taken place for the preparation of business plans, statute of the zones and choice of
establishing groups for the Kaunas, Siauliai and Klaipeda free economic zones.  The Siauliai and
Klaipeda free economic zones were expected to start operating in 1998.   Companies operating in the
zone would need to register as enterprises in accordance with Lithuanian legislation and the
registration should be duly recorded by the governing company of the zone.  Companies were notWT/ACC/SPEC/LTU/8/Rev.3
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required to export part or all of their output to gain access to Lithuanian free zones.  The purpose of
the free economic zones was to attract investment, not to introduce requirements to export.  Goodsbrought into the customs territory of Lithuania from a free economic zone would be subject to all lawsand other legal acts regulating the importation of goods from abroad, notably the application of importduties and taxes, as well as any prohibitions or restrictions of economic character.
127. 117.      
The representative of Lithuania confirmed that any free zones or free economic zones
would be fully subject to the coverage of the co mmitments taken in the Protocol of Accession, and
that Lithuania would ensure enforcement of its WTO obligations in those zones, including those
commitments derived from the TRIPS Agreement.  He also confirmed that, when goods produced orimported into the zones under the special tax and tariff regime existing in these areas enter into therest of Lithuania, normal customs formalities, tariffs and taxes would be applied.  The Working Partytook note of this commitment.
Government procurement
128. 118.      The representative of Lithuania said that a Law on Public (Government)
Procurement, consistent with WTO requirements, entered into force on 1 January 1997 and
supplementary legislation would be completed by the end of 1997 .  The Law allowed domestic or
foreign suppliers (contractors) to participate in procurement procedures.  Article 1, part 4 of the Lawallowed the Government to give preference to goods, services and works (in connection withconstruction and renovation) produced, effected or provided by enterprises, including foreign-owned,
registered in Lithuania, when this supply was important to the State for economic or social reasons.However, such a decision would be passed in compliance with Lithuania's obligations underinternational agreements.  The Government Procurement Agency was established in June 1997.  The
Agency prepared regulations related to the implementation of the Law on Public Procurement,
announced tenders, coordinated ministries' activities related to procurement, investigated complaintsby suppliers, etc.  The Government had approv ed a new Law on Public Procurement which was
currently being considered by Parliament.  The new version aimed at ensuring public and transparent
public procurement procedures, equality of participation for suppliers, effective competition and more
effective use of State funds.  The Government of Lithuania had applied for observer status in the
Committee on Government Procurement.WT/ACC/SPEC/LTU/8/Rev.3
Page 46
129. 119.      The representative of Lithuania confirmed that [  Lithuania would initiate negotiations
for membership in the Agreement on Government Procurement upon accession  by tabling an entity
offer at that time]  within three months after the accession date, at the latest [, upon its accession, his
Government would notify the Committee on Government Procurement of its intention to accede to the
Agreement on Government Procurement and seek observer status in that Committee.  He further
confirmed that Lithuania would initiate negotiations  for membership in the Agreement, by tabling an
entity offer soon after the accession date] .  He also confirmed that if the results of the negotiations
were satisfactory to Lithuania and other members of the Agreement, negotiations [ would ][might]  be
completed by [30 June 1999]  [the end of 1999].  The Working Party took note of these commitments.
Transit
130. 120.      The representative of Lithuania said that Lithuania required submission of a security
or cash deposit which would normally be equal to the sum of import duties and taxes levied onimports.  The amount considered sufficient could be set at a higher level if the customs value or tariffclassification of the goods in transit co uld not be determined with certainty.
131. 121.      
The representative of Lithuania added that the Prime Ministers of the Baltic States
had signed a Resolution "On Via Baltica" on 13 February 1995, seeking to create a Baltic TransitSystem which would facilitate and simplify transit formalities for cargo traffic between the BalticStates.  The system would be based on, and could pave the way for, future accession to the EC-EFTASAD and Common Transit Conventions (1987).
132. 122.      
The representative of Lithuania confirmed that Lithuania would conform to the
relevant WTO provisions, including Article V of  the GATT 1994.  The Working Party took note of
this commitment.
Agricultural policies
[Information on Domestic Support and Export Subsidies, circulated as document
WT/ACC/SPEC/LTU/2 of 30 July 1996 for background in formation purposes only.  Offer concerning
commitments on domestic support and export subsidies circulated as documentWT/ACC/SPEC/LTU/7 on 12 June 1997.  Revised commitments on domestic support and exportWT/ACC/SPEC/LTU/8/Rev.3
Page 47
subsidies were circulated in document WT/ACC/SPEC/LTU/7/Rev.1 on 17 October 1997.
Explanatory note on the tables circulated in document WT/ACC/SPEC/LTU/7/Rev.1/Add.1 on 9
8 January 1998 (to be circulated) .  Information on conditions causing a necessity for Lithuania to
maintain export subsidies in agriculture circulated in document WT/ACC/LTU/23 on 14 May 1998.]
133. 123.        [ Members of the Working Party asked Lithuania to outline the main direction of its
agricultural policies.  Specific questions were raised with respect to customs duties on agricultural
products, the enforcement of recommended purchase prices on some commodities, direct and indirect
support measures, export subsidies, and measures in the sugar sector.  Lithuania was requested toprovide information on domestic support and export subsidies in agriculture in the format ofdocument WT/ACC/4.  A member noted that Lithua nia had implemented domestic support and export
subsidy programmes very recently and wondered why Lithuania had implemented programmes whichcould be in contrast with WTO provisions after deciding to join the organization.
134. 124.      
The representative of Lithuania said that agriculture was of exceptional economic and
social significance to Lithuania.  One third of Lithuania's population resided in rural areas and the
production of primary agricultural commodities provided work for 23 per cent of the total employed
workforce in Lithuania.  Milk production was one of the most important economic activities inLithuania.  However, agricultural production was ha mpered by small-scale, inefficient farming and
marketing infrastructure.  Domestic prices for most agricultural commodities were below the worldmarket level, but prices for final products could sometimes be equal to, or higher than, world marketprices.  The Government aimed at creating a competitive agricultural sector and a viable ruraleconomy while minimizing the negative social and economic consequences during the period oftransition.  The average weighted tariff on major food products (milk, dairy products, butter, eggs,sausages and sugar) was 27.5 per cent.
135. 125.      
Some members were particularly concerned about subsidies granted in the form of
[government] purchases of agricultural production at "recommended" prices.  The representative ofLithuania explained that farmers were supported through the mechanism of minimum (recommended)purchase prices for wheat, flax, rape seeds, fodder for leguminous crops, pork, milk and high-qualitycattle.  The product coverage of the minimum price programme could be expanded in extremesituations. Prices were determined by average production costs in Lithuania and the market situationin neighbouring countries.  A subsidy element was added to the minimum prices within fixedpurchasing quotas for high quality produce.  Subsidies were channelled to farmers through the
processors to reduce paperwork.  Subsidies were granted through the National AgriculturalWT/ACC/SPEC/LTU/8/Rev.3
Page 48
Development Programme and also through the Agriculture Support Fund, created in 1994 through the
amalgamation of various existing funds such as the Sowing Fund.  Types of assistance also includedsoft credits and preferential loans (at 5 per cent annual interest) for farmers, support to tradeintermediaries and services providers, rebates on agricultural machinery, support for cooperativeefforts among farmers, ecologic farming and compensation for accidents and calamities. The Statealso offered indirect support by financing land reclamation works, liming of soil, construction ofroads and other infrastructure, animal breeding and agricultural research and training.  Tax
concessions to the sector consisted of exemption from corporate profit tax and tax holidays on
reclaimed land.  The Government also encouraged diversification in rural areas and afforestation.
136. 126.      
In 1997, the Government decided to channel all fiscal resources for the National
Agricultural Development Programme and the Agriculture Support Fund into a Rural Support Fund toimprove the efficiency and administration of State support to the agricultural sector.  The Ministry ofAgriculture and Forestry
 had established the Rural Support Fund.  The main purpose of the Fund was
to create viable farms which would guarantee employment and income for farmers.  The RuralSupport Fund would facilitate a gradual move from price subsidies to maintaining producer income
through the application of price support and other economic measures on the main agricultural
products.  The Fund would also finance investment  programmes.  Some of the programmes financed
from the fund were:  the establishment of farmer and cooperative societies;  agro-services;  newtechnologies;  livestock breeding;  ecological (environmentally-friendly) farming;  structuraladjustment of marginally productive land;  and the development of quality systems for agriculturalproducts.
137. 127.      
A member noted that Lithuania subsidized certain agricultural exports and requested
Lithuania to bind its export subsidies at zero and use other, less distortive, forms of agricultural
support.  The representative of Lithuania explained that export subsidies were provided for storage of
surplus production and improvement of marketing conditions.  In 1995, export subsidies had beenprovided for pork, pigs, butter, cheese and
, grain, flour, condensed milk and milk powder  at a budget
cost of Llt28.8  US$9.8 million.  Lithuania had subsidized exports of beef, pork,  butter, condensed
milk, milk powder, cheese, pork , vegetable oils, preserved meat,  grain  and flour at a budget cost of
Llt 75.6 m illion in 1997  US$8 million in 1996;  and of beef, butter, condensed milk, milk powder,
cheese, pork, grain, vegetable oil, meat preserves and flour at a budget cost of US$10.1 million in
1997, and expected to continue applying such subsidies in the future, especially in extreme market
situations.  Export subsidies were not administered as a regular programme, but were targeted at a
specific, limited market segment both in terms of product coverage and geographical location.  TheWT/ACC/SPEC/LTU/8/Rev.3
Page 49
product list included dairy and meat products which were exported when surplus quantities
accumulated in the domestic market, and these surpluses could not be absorbed domestically due torising imports and declining purchasing power in Lithuania.  The subsidized exports were destined forthe Russian market.
138. 128.      
The representative of Lithuania stressed that, as with the economy as a whole,
Lithuania's food and agriculture regime was still in a period of transition  sector was facing difficult
adjustment to new market-oriented conditions.  Agriculture was still in the process of recovery, and
productivity in the sector, including the food industry, had not reached its potential level due to
inflation, distortions in production and prices, and a disruption in relations - and resulting competition
with Lithuania's main trading part ners - in the former Soviet Union.  Growth and development within
the sector was restrained by insecurity concerning farm and land user rights, poor infrastructure, and
lack of proper distribution of inputs and output.  In addition to fragmented farms and insufficient
competition, farmers' incomes were squeezed by a negative trade balance and lack of access to credit.
Land reform, in particular the process of restitution, privatization and the development of clear-cut
ownership rights had not proceeded as quickly as hoped.  Lithuania was revising its agricultural
policies and had developed a new system for domestic support to agriculture (outlined in
paragraph 126  [135]).  The Working Party would be informed about the new policy and support
measures once the new system had been appropriately defined.
139. 129.      Some members asked specific questions regarding measures affecting the sugar
sector, notably the possible introduction of minimum import prices and the opening of tariff-ratequotas for domestic processors.  Lithuania was reminded that Article VII of the GATT 1994 and theWTO Agreement on Agriculture prohibited the use of reference prices.
140. 130.      
The representative of Lithuania said that raw sugar (HS code 1701.11-1702.12) was
protected by tariffs of 35 per cent ad valorem  (minimum Litas 0.75 per kg), sugar (HS code 1701.91-
1701.99) by tariffs of 87 per cent, other sugar products (HS codes 1702.30, 1702.40, 1702.90) bytariffs of 35 per cent and confectionery made of sugar (HS code 1704.10.11-1704.90.51,1704.90.61-1704.90.99) by tariffs of 25-30 per cent, and processors were provided seasonal softcredits.  Imports could also take place under tariff-rate quotas, but processors would first need toexhaust reserves of domestic sugar.  The zero-tariff quota was distributed by consensus among thefour domestic sugar refineries.  Producers of sugar had also been exempted from provisions of theLaw on Competition to allow the establishment of a producer association, but no such association hadWT/ACC/SPEC/LTU/8/Rev.3
Page 50
been formed yet.  Lithuania intended to liberalize the sugar regime further when production had risen
to match domestic demand.
141. 131.      The representative of Lithuania stated that Lithuania intended to eliminate  the
minimum import price on raw sugar before  would be applied only until Lithuania's accession to the
WTO. ]
[to be completed]
[Alcohol and alcoholic beverages
142. 132.       [A member considered Lithuania's restrictions on trade in alcohol equivalent to
State-trading.  A distribution monopoly maintained by  the State could also distort import prices.  This
member asked Lithuania to provide the criteria upon which the licensing system for alcoholicbeverages was based and explain how Lithuania's re strictive import system could be consistent with
WTO rules.]
143. 133.      
The representative of Lithuania said that his Government had established a State
Tobacco and Alcohol Control Agency on 12 July 1996 in accordance with the Law on Health Systemand the Law on Alcohol Control.  The main functions of the Agency were to formulate and implementState policy in cooperation with ministries and other governmental institutions with a view to
discouraging consumption and reducing its harmful effects on the population.  The Agency itself didnot engage in trade, but performed various trade-related administrative and monitoring tasks,including the issuance of activity licences, monitoring of adherence to legal requirements,establishment of additional marking procedures for imported alcoholic beverages, etc.
144. 134.      
 Activity licensing was used to regulate trade;  separate licences were issued for
wholesale trade in alcoholic beverages produced in Lithuania, importation and retail trade.  In all,
during 1995 about 12,000 wholesale and retail licences had been issued, and  about 11,000 wholesale
and retail licences in the course of 1996 and some 10,500 import, wholesale and retail licences in the
course of 1997.  The Agency issued licences for importation and wholesale trade in alcoholic
beverages while retail traders obtained authorization from municipal authorities.  The activitylicensing for importation had been changed.  Parliament had approved the Law on Amendment andWT/ACC/SPEC/LTU/8/Rev.3
Page 51
Supplement to the Law on Alcohol Control on 8 Ap ril 1997.  One of the purposes of the new Law was
to harmonize the existing Law on Alcohol Control with the provisions of the WTO.  The new Law didnot restrict the number of activity licences to import alcoholic beverages and did not require importersto limit their choice of imports to foreign compan ies included in the bulletins of the Association of
Manufacturers of Alcoholic Beverages.  According to the provisions of the new Law, there were no
tenders for issuing activity licences for importation of alcoholic beverages or for engaging in domestictrade.  Activity licences for importation of alcoholic beverages were accordingly now granted to all
applicants against payment of the stamp tax provided the companies were registered in Lithuania,
followed the regular procedures for obtaining a licence, and submitted all documentation required
under Lithuanian law.  The conditions for new entrants had improved as no credit was given for priorexperience as an importer.  In addition, the licences to engage in importation, production, andwholesale and retail trade of alcohol of no more than 22 per cent alcohol content -  previously validfor one year only - were now of unlimited duration.
145. 135.      
Importers of alcoholic beverages paid an annual stamp tax for the right (licence) to
import.  The levies had been introduced to encourage responsible importers who would be prepared to
follow customs and tax procedures and pay the required tariffs and taxes, to avoid importation of
counterfeit or low-quality products, to stimulate the consumption of lower alcohol content beverages,and for fiscal reasons.  When granting the activity licence the Government would specify the type  ofbeverage to be imported by a particular enterprise, i.e. vodka, vodka and other spirits, wine, etc., butnot the value or volume.  New rates of stamp tax had been established in June 1997
 1998 in
accordance with Government Resolution No. 640   774.  The new stamp taxes for engaging in
importation and trade in alcoholic beverages would be applied upon Lithuania's accession to the
WTO.  Under the new order, an activity licence, vali d for one year, to import and engage in wholesale
of imported vodka and other spirits would cost 100,000 Litas (US$25,000) ;  for wine and beer – cost
470,000 Litas (US$117,500); for other beverages (except vodka) 380,000 Litas (US$95,000), and for
wine 150,000 Litas  50,000 Litas (US$12,500);  beer only - 15,000 Litas (US$3,750);  and 500 Litas
(US$125) for alcohol products.  The same taxes would be charged for activity licences to engage in
wholesale trade of alcohol produced in Lithuania (see Table 4 for a full list of these stamp taxes).  An
activity licence to import alcoholic beverages would also cover wholesale of the products.  The
importation/wholesale licence also included a larger number of beverage brands (about 400) than awholesale licence for domestically-produced beverages (some 100-150 products).  The Government
was planning a review of the stamp tax system to see if it could be changed to reflect any
improvements in the market situation.WT/ACC/SPEC/LTU/8/Rev.3
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146. 136.      The State Tobacco and Alcohol Control Agency also issued activity licences for
domestic production.  The representative of Lithuania stressed that domestically-produced alcoholwas subject to the same restrictions and regulations as imported products with one exceptionconcerning the enterprise "Lietuviskas Midus" (Lithuanian Mead Brandy).  The activity licenceallowed the company to produce a special national mead brand ("Zalgiris") which alcohol contentexceeded 50 per cent.  This mead was also exported, while importation of beverages with alcoholcontent greater than 50 per cent was prohibited.  However, the Government had reviewed the system
and approved a draft to amend the Law on Alcohol Control which would allow importation of
beverages with alcohol content greater than 50 per cent.  The amendment was under consideration in
Parliament.
147. 137.      [A member stated that Lithuania's system of activity licensing appeared to restrict
trade in alcoholic beverages in a manner conflicting with the provisions of Article XI andArticle XVII of the GATT 1994.  The Government seemed  to play a controlling role in the selection
and limitation of firms engaging in trade in these products, in effect creating State-trading enterprises.Specifically, this member also noted that the co mpany "Lietuviškas Midus" held monopoly rights on
the production of high-alcohol beverage and considered this company a State-trading enterprise under
Article XVII.]
148. 138.      The representative of Lithuania replied that "Lietuviškas Midus Ltd." was a
cooperative consumers' enterprise producing mead in accordance with patented ancient recipes whichLithuania considered to be part of its national he ritage.  Thus, due to the fact that the enterprise
followed ancient traditions of manufacture and was the only enterprise in Lithuania whichmanufactured national beverages, the Government had granted "Lietuviškas Midus" the right tomanufacture one traditional alcoholic beverage until the year 2001.  The State did not provide the
company with privileges or subsidies, and the company had no obligations towards the State.  The
company could import inputs for the production of mead without restrictions.  [Lithuania was
considering notifying "Lietuviškas Midus" as a State-trading enterprise.]
149. 139.      
Lithuania had established the legal basis for introduction of a State monopoly on
alcohol products in cases of force majeure (war, famine and natural disasters), a measure he felt couldbe justified under Articles XX(b) and (d).  The pres ent situation did not qualify as force majeure.  The
Law on Alcohol Control also authorized the introduction of production and import quotas for certainWT/ACC/SPEC/LTU/8/Rev.3
Page 53
alcohol products should the number of patients suffering from alcoholic psychosis exceed levels
established by the Ministry of Health.  However, these provisions had not been applied thus far.
150. 140.      A member noted that excise taxes on imported and domestic beer were not equal.
The representative of Lithuania said that excise taxes were differentiated for certain domestically-
produced and imported wine and beer in accordance with Government Resolution No. 328 of9 April 1997.  A lower rate of excise tax (0.2 Litas per litre) had been established for small producers
of beer, i.e. those with annual production below 100,000 dekalitres.  The representative of Lithuania
replied
 said that this preferential treatment was a tr ansitional measure to be eliminated from the date
of accession to the WTO (pursuant to a decision already taken by the Government).  The Government
was currently considering other, fully WTO consistent, support measures for these enterprises.
151. 141.      The representative of Lithuania said that the Ministry of Agriculture and Forestry
authorized imports of non-bottled alcoholic beverages and raw materials for alcoholic beverages
under general tariff-rate quotas (30 per cent reduction of the tariff rate) opened in accordance with
Government Resolution No. 268 of 24 March 1997.  Permission was granted automatically upon
presentation of an application and a sales contract, but only to companies holding activity licences for
the production of alcoholic beverages, i.e. nine authorized producers (not necessarily "Stateenterprises") which had obtained licences from the State Tobacco and Alcohol Control Agency toimport alcohol and produce alcoholic beverages.  Enterprises not licensed for the production ofalcoholic beverages could import such raw materials at the MFN rate of duty.  The system had beenintroduced to fight illegal production of counterfeit alcoholic products.  Tariff quotas for imports ofethyl alcohol for technical uses were granted automatically to companies substantiating their needs.
152. [A member said that the lack of national treatment in Lithuania's management in this sector
was obvious and, as it affected trade, apparently inconsistent with a number of WTO provisions.
Problems included non-tariff revenue charges on importation, import bans, selective licensing of
competing raw materials on a preferential basis, provisions for discretionary quotas without domestic
equivalence, and discriminatory excise taxes.  Lithuania needed to rethink these practices in the light
of WTO provisions, and to revise its regulation in this sector to comply with WTO norms.  In reply,
the representative of Lithuania said that:  (i) the system of charges on importation had been reviewed
and the import ban on mead was currently under review;  (ii) Lithuania did not apply measures such
as selective licensing of competing raw materials on a preferential basis or provisions for
discretionary quotas - all companies producing alcoholic beverages could import raw materialsWT/ACC/SPEC/LTU/8/Rev.3
Page 54
automatically from all exporting countries and use tariff quotas;  and (iii) the differentiated excise
taxes on beer would be valid only until Lithuania's accession to the WTO.]
[to be completed]
]Trade in civil aircraft
153. The representative of Lithuania said that Lithuania would implement the Agreement on Trade
in Civil Aircraft [without exceptions or transitional period] [(with some exceptions)] at the time of
accession.  [The representative of Lithuania confirmed that Lithuania would become a signatory to the
Agreement on Trade in Civil Aircraft upon accession to the WTO.]  The Working Party took note of
this commitment.
TRADE-RELATED INTELLECTUAL PROPERTY REGIME
154. 142.      Some members of the Working Party asked Lithuania to describe its system of
protection of intellectual property in the light of the WTO Agreement on Trade-Related Aspects ofIntellectual Property Rights (TRIPS) and indicate areas which would be subject to new or revisedlegislation.  A member noted that Lithuania's intellectual property rights regime was still beingdeveloped and that the current regime did not meet all the requirements of the WTO and requestedLithuania to accelerate its legislative process in order to ensure full implementation of the TRIPSAgreement at the time of accession to the WTO.
155. 143.      
Lithuania provided a note on TRIPS to the Working Party in document
WT/ACC/LTU/7 (Annex I) and a note on prog ress in implementing the TRIPS Agreement in
document WT/ACC/SPEC/LTU/10.  The status of Li thuanian legislation and the corresponding WTO
requirements, and planned steps to address obligations under the TRIPS Agreement are presented inTable 11
  13.   In response to specific questions, the representative of Lithuania said that national
legislation  - including laws on patents, industrial design, trademarks and service marks, layout-
designs of integrated circuits, the Law on Competition, the Criminal Code and provisions of the Civil
Code - largely corresponded to the basic provisions of the TRIPS Agreement.  Lithuania's legislation
on intellectual property contained no exceptions to the principle of national or MFN treatment.WT/ACC/SPEC/LTU/8/Rev.3
Page 55
Lithuania did not use the possibilities provided in Article 6 of the Berne Convention and maintained
no exceptional measures as provided for under Article 4(d) of the TRIPS Agreement.
156. 144.      Lithuania joined the World Intellectual Property Organization (WIPO) in 1992 and
the Paris Convention in 1994.  On 17 September 1996, the Seimas (Parliament of Lithuania) ratifiedthe Nice Agreement Concerning the International Classification of Goods and Services for thePurposes of Registration of Marks of 15 June 1957, and on 15 November 1997 the Seimas had ratified
the Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks.
In the area of copyright and related rights, Lithuania joined the Berne Convention (Paris Act, 1971) in1994, and intended to join the Geneva Convention On the Protection of Producers of PhonogramsAgainst Non-Authorized Duplication of thei r Programmes in 1998.  Lithuania was preparing
documents necessary for ratification of the Rome Convention, expected towards the end of 1997
 in
the course of 1998.  Lithuania had also concluded international agreements on intellectual property
with Denmark, Norway, Switzerland, the United St ates and the European Patent Organization, and
adhered to the Multilateral Trademark Law Treaty.
157. 145.      Parliament had adopted a Law on the Amendment and Supplement to the Civil Code
in May 1994, covering copyright (Chapter 4) and neighbouring rights (Chapter 5).  However,Lithuania had not yet been able to establish a legal basis for enforcement of copyright andneighbouring rights.  Lithuania did not regulate and had not established, a system for the collectiveadministration of rights for performers and producers of phonograms or producers of sound and visualrecordings.  The Association of Performers and Producers of Phonograms had been established
recently to form the basis for copyright enforcement.  Accordingly, Lithuania currently could not
enforce Article 11 on Rental Rights and Article 14.4 on Protection of Performers, etc.  Authors, artistsand creators had founded the Lithuanian Copyright Protection Association (LATGAA) which was
concluding agreements with similar organizations in other countries.  Broadcasting organizations
maintained copyright on radio and television programmes according to Article 526(4) of the CivilCode.  Lithuanian law did not contain provisions on compulsory licensing of works and sound
recordings.  Current legislation did not provide rental rights for cinematographic works, computerprograms or sound recordings, but such rental rights would be provided for in a new Law on
Copyright and Related Rights.  A draft law, corresponding to the regulations of internationalconventions on copyright and neighbouring rights and the requirements of the TRIPS Agreement, hadbeen prepared with assistance from WIPO, and would be submitted to the Government by the end of
1997  Parliament in the second half of 1998.  The protection of the rights of performers, phonogramWT/ACC/SPEC/LTU/8/Rev.3
Page 56
producers and broadcasting organizations would corr espond fully to the requirements of Article 14 of
the TRIPS Agreement.
158. 146.      Minor amendments to the Law on Trademarks and Service Marks and the Law on
Industrial Design to adjust to requirements of the TRIPS Agreement would be enacted in 1998.Lithuania considered the exceptions in its law to the rights conferred by a trademark to be incompliance with Article 17 of the TRIPS Agreement.  Geographical indications were protected under
Article 7 and other provisions of the existing La w on Competition.  However, Seimas was expected to
adopt a new Law on Competition in the first half of 1998
 by the end of 1998.  The representative of
Lithuania said that the draft law contained provisions regarding the use of geographical indicationswhich complied fully with Articles 22 to 24 of the TRIPS Agreement.
159. 147.      
The representative of Lithuania said that the Law on Patents appeared to require
amendments, to be introduced in 1998, to incorporate the provisions of the TRIPS Agreement and theParis Convention regarding compulsory licensing of patented inventions.  Disputes regarding workingor non-working of a patent could be settled in Court.  Generally, importation of a patented product
should be considered equivalent to the use of a patent.
160. 148.      
The representative of Lithuania said that the ministries and institutions involved in
the development of intellectual property rights legislation were accelerating their work.  The
Government had prepared a draft  On 16 June 1998, Parliament had adopted a Law on the Protection
of Layout Designs of Integrated Circuits conforming  with Articles 35 to 38 of the TRIPS Agreement ,
and planned to submit the draft law to Parliament for approval in early 1998 .  The Law on Legal
Protection of Computer Programs and Data Base s and the Law on Plant Variety Protection and Seed
Growing had been adopted in 1996.  The latter Law assured the protection of all plant varieties
registered in Lithuania and guaranteed the rights of variety owners.  Lithuania was not a member of
the International Plant Variety Protection Orga nization (UPOV) and would not join UPOV until
varieties of Lithuanian breeders had been recognized and registered in countries in western Europe.
161. 149.      Intellectual property rights were enforced by civil action, unless the infringement was
considered a criminal violation.  Procedures were laid down in the Civil Code and the Code of Civil
Process of the Republic of Lithuania.  The La ws on Trademarks, Patents and Industrial Design
contained specific provisions regarding owners' rights to stop infringements and claims forWT/ACC/SPEC/LTU/8/Rev.3
Page 57
compensation;  remedies against violations of copyright and related rights were provided under the
Civil Code, the Criminal Code and the Code of Administrative Law Infringements.  Lithuania was
working to improve its system of administrative, civil and criminal remedies for infringements of alltypes of intellectual property, and would amend the Criminal Code , and submit a draft
.  With due
regard to this fact, the Law on Amendment and Supplement to the Code of Administrative
Infringements to Parliament in early  had been passed in February 1998.  The draft law on copyrights
and related rights included a separate Article on provisional measures.  Border enforcement of
copyrights and other intellectual property would be strengthened under a new Law on the Protection
of Intellectual Property for Imported and Exported Goods, to be introduced in 1998.
162. 150.      The representative of Lithuania confirmed that his Government would fully apply the
provisions of the Agreement on Trade-Related Aspect s of Intellectual Property Rights (TRIPS) by the
date of its accession to the WTO without recourse to a transitional period.  The Working Party tooknote of this commitment.
POLICIES AFFECTING TRADE IN SERVICES
[Reference to annexed schedule to GATS.  A revised offer of initial commitments on trade in services
circulated as document WT/ACC/SPEC/LTU/1/ Rev.1 of 17 September 1997, and additional
commitments in the sector of telecommunication services (document
WT/ACC/SPEC/LTU/1/Rev.1/Add.1 of 15 October 1997).  Information on MFN problemacity related
to the commitments for commercial presence circulated in document WT/ACC/LTU/24 on
14 May 1998.]
163. 151.      The representative of Lithuania submitted to the Working Party a separate
Memorandum on the services regime (WT/ACC/LTU/5), an additional presentation
(WT/ACC/LTU/9) and  supplementary information in document WT/ACC/LTU/10.  Thedocumentation outlined the market structure, regulatory framework and policies affecting servicesgenerally or in relation to specific sectors.  Concerning the development of services-relatedlegislation, he added that Lithuania had adopted several new laws or amendments during 1996
,
notably the Law on Insurance, Law on Telecommuni cations, Law on Public Trading of Securities,
amendments and supplements to the Law on Co mmercial Banks, Law on Construction, Law on Mass
Media, the Civil Aviation Code, Inland Transport Code, Road Transport Code, and the Railway
Transport Code and the Law on Tourism.  Other significant new legislation included Government
Resolution No. 1550 "On Granting Licences to Provide Tourism Services" and Govern mentWT/ACC/SPEC/LTU/8/Rev.3
Page 58
Resolution No. 94 providing regulations for research, conservation, reservation and restoration of
cultural values.
164. 152.      The representative of Lithuania said that requirements for the registration of an
enterprise were the same irrespective of the nationality of ownership, except that a foreign investorwould need to submit certificates of incorporation in the home country for legal persons,documentation on the financial condition/status, and verification of the origin of the foreign capital.
Foreign investment was permitted in all sectors with the exception of areas related to defence and
national security;  production and sale of narcotic substances, and other non-medicinal or poisonoussubstances having similar effects;  cultivation and sale of crops containing narcotic substances orsubstances with similar effects; and the organization of lotteries.  The State Post Office was the onlyservice supplier with monopoly or exclusive rights;  its rights concerned collection and delivery ofletters, postcards and printed matter;  installation of letter collection boxes;  and issuance of postagestamps.  The former State enterprise "Lietuvos Telekomas" no longer held
 had been privatized, but
would hold exclusive rights to provide telecommunication services until year 2003 .
165. 153.      The representative of Lithuania provided information on licensing of business
activities in the area of services in Table 3.2.  In addition, the establishment of a commercial bankrequired a licence issued by the Bank of Lithuania.  The list of licensed activities had been
significantly reduced under a recent amendment of the Law on Enterprises on 25 September 1997.
166. 154.      Lithuania did not maintain any specific measures of horizontal nature which would
limit market access or national treatment in the financial services sector.  Permission from the Bank ofLithuania was required for foreign banks to establish subsidiaries or bank agencies.  According to theLaw on Commercial Banks of 21 December 1994, foreign banks could establish subsidiaries;  acquire
shares of a new or operating bank (acquisition of a block of shares (10 per cent or more) in an
operating bank required the consent of the Bank of Lithuania);  and establish branches andrepresentative offices.  Domestic and foreign investors needed prior approval from the Bank ofLithuania to acquire 10 per cent or more of the shares in existing banks.  Minimum capitalrequirements were the same for domestic and foreign banks;  the minimum was set to increase from
ECU 1.9 million (in Lit as equivalent) to ECU 5.0 million on from 1 January 1998 was set at
ECU 5 million (in Litas equivalent).  Lithuania intended to approximate its banking laws with
European Communities' directives which could lead to further liberalization.  Foreign securities firmscould conduct business through any legal form of enterprise in Lithuania.WT/ACC/SPEC/LTU/8/Rev.3
Page 59
167. 155.      Insurance services were provided by 32 companies, of which 4 included foreign
participation.  The State Insurance Company had held exclusive rights to issue all types of mandatoryinsurance and pensions insurance;  the company had been privatized under a new Law on Insurance.The new Law  would codify the situation under which all exclusive rights for the State InsuranceCompany had been eliminated.  The Law enabled fo reign insurance companies to established wholly-
owned companies, joint-ventures or subsidiari es provided the foreign insurance company had
permission from its own Government to conduct insurance activities in foreign countries.  Foreign
financial institutions were permitted to deliver transportation insurance (maritime and aviation) andreinsurance services across the border.  Insurance inter-mediation on behalf of foreign insurancecompanies was allowed for intermediaries registered in Lithuania.  The representative of Lithuania
indicated that no commitment would be undertaken  for the establishment of foreign insurance
companies, but this right was accorded on the basis of reciprocity.  Such cases were covered byLithuania's MFN exemption.
168. 156.      
Concerning the supply of professional services by foreigners, the Lithuanian Labour
Exchange issued work permits and would evaluate and fully recognize the qualifications of applicants
in accordance with the documentation submitted.  Lithuania had no agreements with other countriesregarding the recognition of qualifications.  Lithuania was developing licensing procedures forauditing services.  Auditors were required to pass a qualifications examination and receive a licenceissued by the Institute of Audit.  Legal services were regulated by the Ministry of Justice and could beprovided by advocates and lawyers licensed to engage in such activities. Foreign lawyers could
provide services on international law and home-country law.  However, foreigners could not act as
defenders in criminal proceedings;  such services were reserved for advocates who were citizens ofLithuania and included in a list of attorneys.  Fo reign attorneys could represent clients before the
Courts in Lithuania only if provided under bilateral agreements on legal assistance.  Agreements were
in force with Belarus, Estonia, [Kazakstan], Latvia, Moldova, Poland, the Russian Federation,[Turkey] and Ukraine.  The limitations on citizenship, which were applicable to advocates(representing clients before the Courts), were not applied to lawyers wishing to engage in otherlawyers' practices.
169. 157.      
The Government established an annual quota on the number of foreign employees in
accordance with the Regulation on Temporary Employment of Foreigners of 13 February 1995.Employers applied to the Lithuanian Labour Exchange which would issue special visas and work
permits for foreigners. This regulation was not applied to intra-corporate transferees (managers,WT/ACC/SPEC/LTU/8/Rev.3
Page 60
executives and specialists) working 1 to 2 years with a possibility of extension, or to business visitors
working no longer than 3 months, for purposes related to the negotiation of contracts, training of staff,installing equipment and similar activities.
170. 158.       
Regarding  procurement of services by government agencies, the representative of
Lithuania said that the Law on Public Procurement (entering into force on 1 January 1997) includedprovisions on preferences for local suppliers.  The margin of preference would not exceed 15 per cent
of the value for goods and services and 20 per cent for works (in connection with construction and
renovation). Lithuania had no agreements with thir d countries concerning government procurement of
services.
171. 159.      
The representative of Lithuania said that his Government was working with
responsible ministries, organizations and Parliament  to ensure that WTO requirements were reflected
in new laws and regulations.  Lithuania's services regime did not discriminate among services orservice supplier countries (Article II) except as pr ovided in economic integration agreements meeting
the standards of Article V of the GATS.  The Government provided full information on laws and
regulations in the Official Gazette as required under Article III, and was drafting qualification
requirements, technical standards and licensing requirements in accordance with the requirements ofArticle VI.
[to be completed]
Transparency
Publication of information on trade
172. 160.      [A member requested assurances from Lithuania concerning its ability to implement
Article X of the GATT 1994 and other [notification and] publication requirements on WTOAgreements.]  The representative of Lithuania stated that according to Lithuanian procedures legalacts could not be enforced until they had been published in the Official Gazette.
173. 161.      
[The representative of Lithuania stated that at the latest from the date of accession, all
laws, regulations, rulings, decrees and other normative acts related to trade would be promptlypublished in the Official Gazette or other official newspapers published by appropriate ministries orWT/ACC/SPEC/LTU/8/Rev.3
Page 61
departments.  He stated further that no law, rule , etc. related to international trade would become
effective prior to such publication.  The Working Party took note of this commitment.]
Notifications
174. 162.      The representative of Lithuania said that at the latest upon entry into force of the
Protocol of Accession, Lit huania would submit all notifications (other than those required to be made
on an ad hoc basis) required by any Agreement constituting part of the WTO Agreement.  Any
regulations subsequently enacted by Lithuania which gave effect to the laws enacted to implementany Agreement constituting part of the WTO Agreement would also conform to the requirements ofthat Agreement.  The Working Party took note of this commitment.
Trade Agreements
175. 163.      Some members of the Working Party asked Lithuania to provide information on
bilateral or regional agreements affecting trade and investment.  Some members wondered whether
the free trade agreements covered substantially all trade.  Lithuania was asked to notify its free trade
agreements.  A member requested a copy of the Trilateral Agreement on Agricultural Trade betweenthe Baltic countries, including the specific market access provisions for the removal of barriers amongthe three countries.
176. 164.      
The representative of Lithuania said that Lithuania had negotiated Free Trade
Agreements (FTA's) with the European Communities, the European Free Trade Association (EFTA),Estonia and Latvia (a trilateral agreement), Ukraine, Poland, Slovenia, the Czech Republic, Slovakiaand Turkey (the latter had not entered into force)
.  Lithuania intended to conclude free trade
agreements with all CEFTA countries.  A Free Trade Agreement between Lithuania, Estonia and
Latvia, covering industrial products, had entered into force on 1 April 1994 and a second part of theAgreement, on agricultural products, on 1 January 1997.  Together, the two parts of the FTA providedfor free trade (no interim measures) at zero tariffs among the Baltic States.
177. 165.      
Trade agreements providing for MFN treatment (conventional duties) had been
concluded with Australia, Belarus, Bulgaria, China, Cyprus, Cuba, Georgia, Hungary, India, theRepublic of Korea, [the Philippines], Romania, the Russian Federation, Turkey,
 Uzbekistan,WT/ACC/SPEC/LTU/8/Rev.3
Page 62
[Venezuela ]  and [  Vietnam ] .  Conventional MFN duties were also applied on imports from Canada,
Japan, Kazakstan, Moldova, Tadjikistan and the United States.  Goods originating in other countrieswere subject to autonomous customs duties.  Agreements on investment promotion and protection hadbeen concluded with [Argentina], Austria, China, the Czech Republic, Denmark, Estonia, Finland,France, Germany, Greece, Israel, Italy, Kazakstan, the Republic of Korea, Latvia, the Netherlands,Norway, Poland, Romania, Spain, Sweden, Switzerland, Turkey, Ukraine, the United Kingdom,Venezuela [and Vietnam].  Lithuania had also concluded an agreement with the Multilateral
Investment Guarantee Agency.
178. 166.      
The representative of Lithuania said that the free trade agreements covered
substantially all trade.  Under the Lithuania/European Communities Agreement, tariffs would
nevertheless remain on some agriculture and fishery products after the six-year transitional period toimplement the agreement.  This FTA had already been notified by the European Communities underArticle XXIV.  Preferential treatment was granted in the form of tariff-rate quotas for some products;quota amounts were listed in Annex XIII, and the respective in-quota tariff rates in Annex XII, of theFree Trade Agreement.  Tariff quotas in the contex t of preferential trade were only applied towards
the European Communities; the relevant implementing regulation (Government Resolution No. 205 of
8 February 1995 and No. 515 of 26 May 1997) had been provided to the Working Party.  Thetariff-rate quotas concerned tariff positions HS 0201, 0202, 0203, 0406 and 1601.
179. 167.      
The Free Trade Agreements with the Eu ropean Communities and EFTA States were
asymmetric, but only for industrial products.  The two agreements were similar in content, except that
the agreement with EFTA States contained a smaller number of products subject to a transitional
period and provided a specific date for the abolition of import duties on textile products.  The FTA
with EFTA included agricultural products, but the trade regime was based on reciprocal concessionsfrom the MFN level.  The FTA with EFTA had alre ady been notified by EFTA under Article XXIV.
The FTA with Ukraine stipulated MFN treatment for the majority of agricultural products, for the
remaining items the tariff was zero.  The Agreement included Annexes on rules of origin andadministrative cooperation which were signed in February 1994.  New rules of origin were inpreparation and would be similar to those established in the FTA's with the European Communities,EFTA and CEFTA countries.  The Parties of the Agreement committed to ensure free transit of goodsthrough their customs territory.  He stated that the Agreement with Ukraine was in conformity with
the provisions of GATT 1994.  [
 Some members requested Lithuania to supply the full text of its
Agreement with Ukraine ] .  The representative of Lithuania replied that no English version of theWT/ACC/SPEC/LTU/8/Rev.3
Page 63
Agreement existed, and therefore provided a summary of the Free Trade Agreement with Ukraine to
the Working Party.
180. 168.      A member noted that Lithuania applied export taxes which were differentiated
according to the market of destination and wonder ed whether Lithuania intended to maintain this
practice.  The representative of Lithuania replied that Lithuania maintained some export duties on abilateral basis  - on raw hides and skins and timber of oak and ash - in connection with the Free Trade
Agreements with the European Communities, the Czech Republic, Slovakia, Slovenia and a Trilateral
Free Trade Agreement between Lithuania, Latvia and Estonia (Table 10.2).  The Free Trade
Agreement with Poland also allowed the possible use of export duties.  Exports of the affectedproducts were prohibited at the time of conclusion of these Free Trade Agreements and theintroduction of export duties (on a bilateral basis) had thus been a step towards liberalization of trade.The preferential duties were generally equal to the non-preferential rates although in some casespreferential trade was exempt from export duties or subject to lower rates.  [He said that this practicecould be justified under Article XXIV of the GATT 1994, and stressed that all export duties appliedon the basis of bilateral agreement would be eliminated by 1 January 2001.  However, some members
did not agree that this practice could be so justified.]
181. 169.      Preferential rules of origin were in place in the context of all free trade agreements.
The origin of goods was determined in accordance with list of rules applied for all products.Declarations of preferential origin, accompanied by a statement of an independent expert, were madeby the suppliers of materials or products in accordance with Government Resolution No. 110 of24 February 1993.  Simplified procedures had been established in the appropriate Protocols on theRules of Origin in the Free Trade Agreements concluded by Lithuania and were used when EUR.1movement certificates had been issued by approved exporters.
182. 170.      
The representative of Lithuania stated that his Government would observe the
provisions of the WTO including Article XXIV of the GATT 1994 and Article V of the GATS in itstrade agreements, and would ensure that the provisions of the WTO Agreements for notification,consultation and other requirements concerning preferential trading systems, free trade areas andcustoms unions of which Lithuania is a member are met from the date of accession.  The WorkingParty took note of this commitment.WT/ACC/SPEC/LTU/8/Rev.3
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CONCLUSIONS183. 171.      
The Working Party took note of the expl anations and statements of Lithuania
concerning its foreign trade regime, as reflected in this Report.  [The Working Party took note of theassurances given by Lithuania in relation to certain specific matters which are reproduced inparagraph 18 of this Report.]  The Working Party took note of the commitments given by Lithuania in
relation to certain specific matters which are reproduced in paragraphs [18], 21, 25, [27], [35], [36],
[41], [50], 53, [59], 63, 73, 74, 82, 86, 94, [98], [101], [109], 117, 119, 124, 127, 129, 132, 153, 162,
[173] 174 and 182 of this Report.  The Working Party took note that these assurances and
commitments had been incorporated in paragraph .... of the Protocol of Accession of Lithuania to theWTO.
184. 172.      
Having carried out the examination of the foreign trade regime of Lithuania and in
the light of the explanations, commitments and concessions made by the representative of Lithuania,the Working Party reached the conclusion that Lithuania be invited to accede to the MarrakeshAgreement Establishing the WTO under the provisions of Article XII.  For this purpose, the Working
Party has prepared the draft Decision and Protocol  of Accession reproduced in the Appendix to this
Report, and takes note of Lithuania's Schedule of Specific Commitments on Services(document...............) and its Schedule of Concessions and Commitments on Goods (document ..........)that are annexed to the Protocol.  It is proposed that these texts be adopted by the General Councilwhen it adopts the Report.  When the Decision is adopted, the Protocol of Accession would be openfor acceptance by Lithuania which would become a Member thirty days after it accepts the saidProtocol.  The Working Party agreed, therefore, that it had completed its work concerning thenegotiations for the accession of Lithuania to the Marrakesh Agreement Establishing the WTO.
[to be completed]WT/ACC/SPEC/LTU/8/Rev.3
Page 65
APPENDIX
ACCESSION OF LITHUANIA
Draft Decision
The General Council,
Having regard to the results of the negotiati ons directed towards the establishment of the
terms of accession of the Republic of Lithuania to the Marrakesh Agreement Establishing the World
Trade Organization and having prepared a Protocol for the Accession of Lithuania,
Decides, in accordance with Article XII of the Marrakesh Agreement Establishing the World
Trade Organization, that the Republic of Lithuania may accede to the Marrakesh Agreement
Establishing the World Trade Organization on the terms set out in the said Protocol.WT/ACC/SPEC/LTU/8/Rev.3
Page 66
PROTOCOL OF ACCESSION OF LITHUANIA
TO THE MARRAKESH AGREEMENT ESTABLISHING
THE WORLD TRADE ORGANIZATION
Draft
The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to the
approval of the General Council of the WTO accorded under Article XII of the Marrakesh AgreementEstablishing the World Trade Organization (hereinafter referred to as the "WTO Agreement"), and theRepublic of Lithuania (hereinafter referred to as "Lithuania"),
Taking note of the Report of the Working Party on the Accession of Lithuania to the WTO in
document WT/ACC/LTU/... (hereinafter referred to as the "Working Party Report"),
Having regard to the results of the negotiations on the accession of Lithuania to the WTO,
Agree as follows:
Part I - General
1. Upon entry into force of this Protocol, Lithuania accedes to the WTO Agreement pursuant to
Article XII of that Agreement and thereby becomes a Member of the WTO.
2. The WTO Agreement to which Lithuania accedes shall be the WTO Agreement as rectified,
amended or otherwise modified by such legal instru ments as may have entered into force before the
date of entry into force of this Protocol.  This Protocol, which shall include the commitments referredto in paragraph [183] of the Working Party Report, shall be an integral part of the WTO Agreement.
3. Except as otherwise provided for in the paragr aphs referred to in paragraph [183] of the
Working Party Report, those obligations in the Mu ltilateral Trade Agreements annexed to the WTO
Agreement that are to be implemented over a period of time starting with the entry into force of thatAgreement shall be implemented by Lithuania as if it had accepted that Agreement on the date of itsentry into force.WT/ACC/SPEC/LTU/8/Rev.3
Page 67
4. Lithuania may maintain a measure inconsistent with paragraph 1 of Article II of the GATS
provided that such a measure is recorded in the list of Article II Exemptions annexed to this Protocoland meets the conditions of the Annex to the GATS on Article II Exemptions.
Part II - Schedules
5. The Schedules annexed to this Protocol shall become the Schedule of Concessions and
Commitments annexed to the General Agreement on Tariffs and Trade 1994 (hereinafter referred to
as the "GATT 1994") and the Schedule of Specific Commitments annexed to the General Agreementon Trade in Services (hereinafter referred to as "GATS") relating to Lithuania.  The staging ofconcessions and commitments listed in the Schedules shall be implemented as specified in therelevant parts of the respective Schedules.
6. For the purpose of the reference in paragraph 6(a) of Article II of the GATT 1994 to the date
of that Agreement, the applicable date in respect of the Schedules of Concessions and Commitmentsannexed to this Protocol shall be the date of entry into force of this Protocol.
Part III - Final Provisions
7. This Protocol shall be open for acceptance, by signature or otherwise, by Lithuania until
.........
8. This Protocol shall enter into force on the thirtieth day following the day of its acceptance.9. This Protocol shall be deposited with the Director-General of the WTO.  The Director-
General of the WTO shall promptly furnish a certified copy of this Protocol and a notification of
acceptance thereto pursuant to paragraph 7 to each Member of the WTO and Lithuania.
10. This Protocol shall be registered in accordance with the provisions of Article 102 of the
Charter of the United Nations.
11. Done at Geneva this ... day of  .... one thousand nine hundred and ninety ......, in a single copy
in the English, French and Spanish languages each text being authentic, except that a Scheduleannexed hereto may specify that it is authentic in only one or more of these languages.WT/ACC/SPEC/LTU/8/Rev.3
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ANNEXES
[to be completed]WT/ACC/SPEC/LTU/8/Rev.3
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ANNEX 1
Laws, Regulations and Other Information Provided to the Working Party by Lithuania
- Law on Enterprises of 8 May 1990, No. I-196;- Law on Prices of 26 July 1990, No. I-413;- Law on Taxes on Profits of Legal Persons of 31 July 1990, No. I-442;- Law on Partnerships of 16 October 1990, No. I-676;
- Law on Foreign Investment in the Republic of Lithuania of 29 December 1990, No. I-905;
- Law on Taxes on State Natural Resources of 21 March 1991, No. I-1163;- Law on Spheres of Business Activity wherein Foreign Investment is Prohibited or Limited of
2 May 1991, No. I-1276;
- Law on Small Enterprises of 20 December 1991, No. I-2125;- Law on Competition of 15 September 1992, No. I-2878;- Law on Enterprise Bankruptcy of 15 September 1992, No. I-2880;- Law on Customs Tariffs of 27 April 1993, No. I-138;- Cooperative Law of 1 June 1993, No. I-164;
- Law on Trademarks and Service Marks of 3 June 1993, No. I-173;
- Law on Foreign Currency in the Republic of Lithuania of 7 July 1993, No. I-202;- Law on Value-Added-Tax of 22 December 1993, No. I-345;- Patent Law of 18 January 1994, No. I-372;- Law on the Credibility of the Litas of 17 March 1994;- Law on Excise Taxes of 12 April 1994, No. I-429;- Company Law of 5 July 1994, No. I-528;- Government Decision on Registration of Representation Offices of Foreign Enterprises and
Banks in the Republic of Lithuania of 31 May 1991, No. 223;
- Government Decision on Veterinary and Sanitary Requirements on Livestock, their Products,
Raw Materials and Fodder Imported into the Republic of Lithuania and Transported asTransit through its Territory of 27 April 1993, No. 284;
- Government Decision on the Approval of Vegetable Quarantine Regulations for Import and
Export of Goods of Vegetable Origin to and from the Republic of Lithuania and their Transitthrough the Territory of the Republic of Lithuania of 3 August 1993, No. 599;
- Government Decision on More Stringent Regulations on Purchase and Sale of Waste and
Scrap of Ferrous Metals of 23 May 1994, No. 388;
- Government Decision on Order of Purchase in the Republic of Lithuania, Re-melting of
Export of Copper and other Non-ferrous Metals, their Alloys, Scrap and Waste of
29 June 1994, No. 526;WT/ACC/SPEC/LTU/8/Rev.3
Page 70
- Government Decision on the Procedure of Commodity Export and Import Regulation in the
Republic of Lithuania of 14 October 1994, No. 985;
- New excise duties (January 1995);- Law on the Amendment and Supplement to the Civil Code of the Republic of Lithuania,
No. I-459, 17 May 1994 (provisions on copyright);
- Law on the Fundamentals of Free Economic Zones, No. I-976, 28 June 1995;- Law on Privatization of State-Owned and Municipal Property, No. I-1001, 4 July 1995;
- Law Concerning Control of Im port, Transit and Export of Strategic Goods and Technologies,
No. I-1022, 5 July 1995;
- Agreement between the Government of the King dom of Norway and the Government of the
Republic of Lithuania concerning Trade in Agricultural Products;
 - Free Trade Agreement between the Swiss Confederation and the Republic of Lithuania;- Free Trade Agreement between the Republic of Estonia, the Republic of Latvia and the
Republic of Lithuania;
- Agreement on Free Trade-Related Matters between the European Community, the European
Atomic Energy Community and the European Coal and Steel Community, of the one part,
and the Republic of Lithuania, of the other part;
- Schedule of tariffs approved by the Lithuanian Government's Resolution No. 443
(16 June 1993);
- Statistical data on imports into Lithuania of agricultural and food products;- Statistical data on exports from Lithuania of agricultural and food products;- Memorandum of Economic Policies of the Government of the Republic of Lithuania for the
period 1 October 1994 and 30 September 1997;
- Government Resolution No. 281 On Partial Amendments to Resolution No. 985 'On
Procedure of Export and Import Regulation in the Republic of Lithuania' adopted by the
Government of the Republic of Lithuania on 14 October 1994 of 28 February 1995;
- Law on Commercial Banks No. I-720 of 21 December 1994;- Law on State Regulation of Economic Relations in Agriculture No. I-734 of
22 December 1994;
- Law on Trade No. I-747 of 12 January 1995;- Law on Alcohol Control No. I-857 of 18 April 1995 (as amended by 3 July 1995);- Law on Sugar No. I-867 of 27 April 1995;- Law on Foreign Capital Investment in the Republic of Lithuania No. I-938 of 13 June 1995;- Government Resolution No. 35 On the Approval of the Order of Foodstuffs Imported into the
Republic of Lithuania and their Quality Control of 9 January 1995;WT/ACC/SPEC/LTU/8/Rev.3
Page 71
- Government Resolution No. 510 On Approving Provisional Regulations of Government
Procurement of 12 April 1995;
- Government Resolution No. 511 On Approving Regulations of Rendering Services of
12 April 1995;
- Government Resolution No. 635 On the General Or der of the Administration of Tariff Quotas
for Implementation and Exportation of Goods of 8 May 1995;
- Government Resolution No. 718 On the Restrict ion of Import of Certain Things (Goods) to
the Republic of Lithuania, their Export and Transit of 19 May 1995;
- Law on Industrial Design No. I-1006 of 4 July 1995;- Government Resolution No. 205 On Enactment of the Free Trade Agreement between the
Republic of Lithuania and the European Communities, the European Atomic EnergyCommunity, and the European Coal and Steel Community of 8 February 1995;
- Government Resolution No. 1221 On Licensing Wholesale and Retail Trade in Import and
Export of Oil Products and Retail Trade in Liquid Gas of 14 September 1995;
- Government Resolution No. 1459 On Licensing Import, Wholesale and Retail Trade in
Alcoholic Products of 17 November 1995;
- Government Resolution No. 1622 On Licensing the Production of Tobacco and its Products
and their Import into the Republic of Lithuania of 27 December 1995;
- Law on Insurance No. I-590 of 20 September 1990;- Law on Plant Protection No. I-1069 of 19 October 1995;- Law on Communications No. I-1109 of 30 November 1995;- Law on Tobacco Control No. I-1143 of 20 December 1995;- Government Resolution No. 449 On the Approval of the Order of Customs Valuation of
Goods of 16 June 1993;
-            Government Decree No. 751 On Prices of Imported Goods Used for their Customs Valuation
Purpose of 25 June 1996 (unofficial translation);
- Government Resolution No. 1114 On the Approval of Customs Duties of Bound Tariff Rates
for the Imported Goods of 26 September 1996;
- Regime of Import/Export Regulation in the Republic of Lithuania;- Law on the Legal Protection of Comput er Programs and Databases No. I-1188 of
30 January 1996;
- The Customs Code of the Republic of Lithuania of 6 June 1996;- Law on Metrology No. I-1452 of 9 July 1996;- Law on Insurance No. I-1456 of 10 July 1996;
- Law on Public Procurement No. I-1491 of 13 August 1996;WT/ACC/SPEC/LTU/8/Rev.3
Page 72
- Government Resolution No. 751 On the Custom s Assessment of Prices for Imported Goods
of 25 June 1996;
- Free Trade Agreement between the Republic of Estonia, the Republic of Latvia and the
Republic of Lithuania on Trade in Agricultural Products of 16 June 1 996;
 - Free Trade Agreement between the Republic of Lithuania and the Czech Republic;- Free Trade Agreement between the Republic of Lithuania and the Slovak Republic;- Free Trade Agreement between the Republic of Lithuania and the Republic of Slovenia;
- Law on the Protection of Plant Varieties and Seed Cultivation No. I-1518 of
17 September 1996;
- Law on Stamp Duty No. I-508 of 23 June 1994;- Information on consular fees levied in accordance with the Law of 16 November 1994;- Draft Law on the Conformity Assessment System;  and
- Government Resolution No. 384 On the Approval of Quarantine Regulations for the
Production, Transportation, Conservation, Sale and Utilisation of Plants and Plant Productson the Territory of the Republic of Lithuania of 25 March 1996;
-            Law No. I-857 of 18 April 1995 On Alcohol Control;
-            Law No. I-734 of 22 December 1994 On State Regulation of Economic Relations in
Agriculture;
-            Law No. I-345 of 22 December 1993 On Value-Added Tax;
-            Law No. I-429 of 12 April 1994 On Excise Duties;
-            Law No. I-196 of 8 May 1990 On Enterprises;
-            Resolution No. 1106 of 9 October 1997 On Approval of the Procedure of the Importation of
Foodstuffs into the Republic of Lithuania and Control of Their Quality and Non-Hazardness
to Health;
-            Resolution No. 559 of 5 June 19 97 On Licensing the Importation, Wholesale and Retail Trade
in Alcoholic Products;
-            Resolution No. 806 of 24 July 1997 On the Tariff and Non-Tariff Regulation of Export and
Import of Goods and Improvement of Establishment of Customs Tariffs and Procedure of
Change;
-            Resolution No. 1367 of 30 December 1994 On the Establishment of the Structure of Customs
Tariffs;
-            Summary of the Free Trade Agreement Between the Republic of Lithuania and Ukraine;  and
-            Veterinary requirements of the Republic of Lithuania for import, export and transit of
livestock, poultry, animal products, raw materials, feedstuffs.WT/ACC/SPEC/LTU/8/Rev.3
Page 73
[Table 1(a):  Information on the Privatization Process of State Property
First Stage of the Process
(1 September 1991 - 31 December 1996)
Description Number of objects
(units)Capital
(mln Litas*)
1. Total State property (except budgetary
institutions, apartment fund and agricultural
enterprises)8,065 13,547.4
2. Property included in a list of object to be
privatized according to the data provided by
founders6,787 11,697.6
3. Property included in privatization
programmes, via signing the shares:3,054 6,595.8
3.1 - for the employees of the enterprises 2,077 1,223.6
3.2 - percentage 68% 18.6%
 4. Privatized via signing the shares: 2,942 2,627.7
4.1 - for the employees of the enterprises 1,887 860.5
4.2 - percentage 64.1% 32.7%
5. Comparing with those included in the
programmes of the privatization (4.3) 96.3% 39.8%
6. Property included into privatization
programmes, via auctions2,964 111.9
7. Privatized via auctions 2,726 79.1
8. Comparing with those included into
privatization programmes (7.6)92.0% 70.7%
9. Property expected to privatize via tenders 15 499.3
10. Privatized via tenders 12 368.1
11. Property expected to privatize for hard
currency61 40.9
12. Privatized for hard currency 44 27.7
13. Total State property included into privatization
programmes (3+6+9+11)6,094 7,247.9
14. Privatized State property (4+7+10+12) 5,724 3,102.6
15. Comparing with those included into
privatization programmes (14.13)93.9% 42.8%
16. Comparing with total property included in a
list of objects to be privatized (14.2)84.3% 26.5%
17. State capital purchased by investment joint-
stock companies737.6
18. Comparing with total privatized capital (17.14) 23.8%
19. Total State capital in privatized objects (until
privatization)6,904.1
20. Comparing with total capital included in a list
of objects to be privatized (19.2)59.0%
21. State property remained after the initial
privatization and purchased according to
Government Resolution No.1063803 284.5
22. Comparing with total privatized property
(21.14)14.0% 9.2%WT/ACC/SPEC/LTU/8/Rev.3
Page 74
Description Number of objects
(units)Capital
(mln Litas*)
23. Total privatized State capital (4+7+10+12+21) 3,307.1
24. State property transferred to the investment
fund1,363 218.3
25. Comparing with total State capital remained in
privatized enterprises (24.19)3.2%
26. State capital remained in privatized enterprises
with the limited degree of the privatization 437 2,966.5
Notes:
1. Number of the investment accounts opened for the population is 2.5 million.  Amount of themeans after indexation was 10,504 million Litas.
2. 17 special enterprises were included into privatization programme.  State capital of these
enterprises amounts to 3,825 million Litas.
* 4 Litas = US$1
]WT/ACC/SPEC/LTU/8/Rev.3
Page 75[ Table 1(b):  Information on the Privatization Process of State and Municipalities Property
(Second stage of the process –privatization by cash)
(August 1996 - October 1997  August 1998)
(number of objects (units))
Ministry of Step Undertaken National
Security
FundNational
EconomyAgriculture
and
ForestryConstruction
and Urban
PlanningTransport Communications
and InformaticsOthersDistricts Municipalities Tourism
Dept.Total
Enterprises included in a list
of objects to be privatized254
13381
8712
1350
1534
2711
725
4742
8675
1,1045 1,149
1,873
Enterprises later excluded
from the list of objects to beprivatized5
84
82 1 11
24
2215
44
Enterprises included in
privatization programmes:187
12534
2541 0
1322
169
65
2261 283
5613
2557
979
-          public signing of
shares1 4 5
- auctions 187
12530
2241 0
1316
149
65
2001 275
5531 537
939
-t e n d e r s 3
21 6
221 2
111
26
- leasing 88
- direct negotiations 1 1 1
Suspended privatization 3
31 1
1,2391
1,2186
2,460
Privatized enterprises: 77
1206
162
126
151
63
221 113
2961 208
489
- auctions 77
1206
142
126
141
63
161 108
288203
471
-t e n d e r s 2 1 5 19
- leasing 5
85
8
- direct negotiations 1 1
Incomes (thou. Litas) 11,792.78
14,971526.29
4,6320.00 495.07
39,07212,292.47
15,915180.00
1,5282,678.71
2,111,8350.00
24603.43
31,4760.00
36,00432,568.74
2,255,435
]WT/ACC/SPEC/LTU/8/Rev.3
Page 76
[ Table 1(c):  Progress in Privatization of Up and Downstream Industries in Lithuanian Agriculture
(January - September 1997  by 1 August 1998)
Enterprise Statutory Capital
mln. Llt.Structure of  Share Capital Shares sold
by 9/97  8/98
mln. Llt.
State
%Employee
%Farmers
%
Agroservice Enterprises – 27 46.17 6.89
6.7450.65 42.47
42.6119.61
19.67
 Flax Selection Enterprises – 9 8.24 0.86 56.08 43.06 3.55
Meat Processing Enterprises – 14 102.15
102.6117.54
16.6854.13
53.8928.32
29.4328.93
30.2
Dairy Processing Enterprises – 38 281.15 23.31
18.7645.70
45.7131.00
35.5387.14
99.89
Fruits and Vegetables Processing - 2 2.05 2.60 50.51 46.88
56.890.96
Grain Processing Enterprises – 21 147.34 3.28
2.550.95
50.9945.77
46.4467.43
68.42
Sugar Processing Enterprises – 4 98.52 9.29
9.345.57
45.5845.14
45.1244.47
44.45
Total - 115 Enterprises 685.62
686.0814.69
12.5448.54 36.77
38.92252.09
267.14
]WT/ACC/SPEC/LTU/8/Rev.3
Page 77[Table 2:  List of Goods and Services Subject to Price Control
Code according
HS NACEItems subject to price control Institution applying
controlReasons and perspectives for control
12 3 4 5
- - Price of land sold by the State, price of land for computing of land
tax and land lease taxGovernment Regulation of land price is related to the restitution of the
rights to private land ownership. Having implemented land
reform and having restored property ownership, the
regulation of prices for land will be abolished.
- Tax tariffs for lease of the State-owned land and the State-owned
water reservoirsGovernment Regulation is related to the State ownership for these items.
4010 Electricity production and transmission Suppliers of electricity
in coordination with the
independent
Commission of EnergyResources' Prices andEnergy ActivityControlled because of absence of sufficient competition in
the market.
4020 Distribution of gas fuel (including only the distribution of natural
gas)Suppliers of natural gas
in coordination with the
independent
Commission of EnergyResources' Prices andEnergy ActivityControlled because of absence of sufficient competition in
the market.
4030 Supply of heat and hot water Suppliers of heat and
hot water incoordination with theindependentCommission of EnergyResources' Prices andEnergy ActivityControlled because of absence of sufficient competition in
the market.WT/ACC/SPEC/LTU/8/Rev.3
Page 78
Code according
HS NACEItems subject to price control Institution applying
controlReasons and perspectives for control
12 3 4 5
Prices and tariffs for goods and services of economic entities having
a dominant position in the market:
4100 Extraction, distribution and cleaning of water Local go vernments Controlled because of a monopoly position of the
enterprises.
6010 Transportation of passengers by local railway routes Ministry of Transport
CommunicationControlled because of a monopoly position of the stockcompany "Lithuanian railways".
6021 Transportation of passengers by other type of land transport
(passenger buses of local and long distance routes)Ministry of Transport
Communication and
Local governmentsSubsidised service, it is planned to liberalise these prices.
6022 Passenger transportation by taxi Local governments Contr olled because of specific character of this service in
order to avoid taxi drivers' abuse of unreasonably highprices.
6120 Transportation of passengers by local ship routes Ministry of Transport
CommunicationIt is planned to liberalise prices for these services.
6323 Control activities of the airport and aeroplanes' flights, on land
services (air navigation, terminal air navigation, landing,guide-vehicle, follow-me, parking, security (Government ResolutionNo. 866, 21 06 1995)Ministry of Transport
CommunicationControlled because of a monopoly position of the airports.
6210 Transportation of passengers by air transport Ministry of Transport
CommunicationRegulated on basis of international agreements.
6322 Activities of navigation, ship ruling and anchorage, raising of sunken
ships (dues of the State Klaipëda  Sea Port for: tonnage, canal,
lighthouse, pilotage, regulation of ship traffic, anchorage, sanitary,people rescuing and anti-pollution activities, mooring, quay,passenger toll (Government Resolution No. 410, 10 06 1993)Ministry of Transport
CommunicationControlled because of a monopoly position in the market.
6411 Postal services of the National post office (collection, transportation
and delivery of letters, postcards, printed matter, sekograms,aerograms, small packages; receiving and payment of money orders;supply of postal cash (giro) banking operations; delivery (payment)of pensions and allowances)Ministry of
Communication and
Information TechnologySubsidised services of social importance.WT/ACC/SPEC/LTU/8/Rev.3
Page 79Code according
HS NACEItems subject to price control Institution applying
controlReasons and perspectives for control
12 3 4 5
6420 Communication services (transmission by using international, inter
town, local telephone lines; switchboard services of telephone andtelex, data transmission, line radio broadcasting)Ministry of
Communication and
Information TechnologyServices of social importance, controlled because of amonopoly position of the State enterprise "LithuanianTelecom".
70 House rent prices of local governments' apartments Local  governments Controlled in order to protect consumers from
unreasonably high prices.
9000 Transportation of garbage and liquid sewage, care of courtyard
territoryLocal governments Controlled in order to protect consumers from
unreasonably high prices
6340,10Maximum tariffs for services provided by customs intermediators State Competition and
Consumer ProtectionOfficeIn order to abolish tariffs control the draft Government
Resolution under preparation now.
7492 Tariffs for apartment security services (Vilnius, Klaipëda) Security Police
Divisions under ChiefPolice CommissariatsServices of specific character, absence of sufficient
competition.
7422 Tariffs for services of legalisation of potential dangerous equipment,
produced in Lithuania or imported, and tariffs for other similarservicesTechnical Supervision
Service under theMinistry of SocialSecurity and LabourServices of specific character, absence of sufficient
competition.
- Tariffs for services on issuing of a number of publisher of local credit
card, a code of drafter of technical documents and of an assortmentnumber of canned foodLithuanian Standards
Board under theMinistry of PublicAdministration andLocal AuthoritiesServices of specific character, absence of sufficient
competition.
7422 Tariffs for issuing of quality certificates State Quality Inspection
under the StateCompetition andConsumer ProtectionOfficeServices of specific character, absence of sufficient
competition.WT/ACC/SPEC/LTU/8/Rev.3
Page 80
Code according
HS NACEItems subject to price control Institution applying
controlReasons and perspectives for control
12 3 4 5
851 Tariffs of health care services for persons, supported by government
or local government and provided by government or localgovernment health care institutionsMinistry of Health Care Controlled in order to protect consumers from
unreasonably high prices
851 Tariffs for paid (private) health care services, provided by
government or local government health care institutionsMinistry of Health Care Controlled in order to protect consumers from
unreasonably high prices
30.03;30.04Maximum trade mark ups for medicines Ministry of Health Care Controlled in order to protect consumers from
unreasonably high prices.
523 Retail prices for medicines an d medical materials of necessary
assortment (about 350 items)Ministry of Health Care Controlled in order to protect consumers from
unreasonably high prices.
851 Prices for services provided by profit seeking institutions. These
prices can not exceed 60% of prices set for services of the State
institutionsMinistry of Health Care Controlled in order to protect consumers from
unreasonably high prices.
Basic prices of compensated medicine and medicine materials Ministry of Health Care Controlled in order to protect consumers from
unreasonably high prices.
-  - Minimum prices for standing (non-cut) timber according to the kinds
of wood, finished wood and woodshed timberMinistry of Agriculture
and ForestryMinimum prices are set in order to avoid abuse ofunreasonably low prices set by the State forestries.
44. 03
44. 0644. 0344. 0344. 0344. 03
44. 03
44. 01Minimum prices for round timber, set according to kinds of
assortment:
-- cut logs, including timber;--  logs for railway sleepers;
--  matchwood;
--  paperwood;
--  logs for package production;
--  thin-logs;
--  wood for slabs;
--  fire-wood according to the groups of changeabilityMinistry of Agricultureand Forestry Minimum prices are set in order to avoid abuse ofunreasonably low prices set by the State forestries.WT/ACC/SPEC/LTU/8/Rev.3
Page 81Code according
HS NACEItems subject to price control Institution applying
controlReasons and perspectives for control
12 3 4 5
44. 03 Fixed prices for veneer raw material Ministry of Agriculture
and ForestryExclusive position in the market, absence of sufficientcompetition.
]WT/ACC/SPEC/LTU/8/Rev.3
Page 82
[ Table 3.1:  Licensing of Business Activities  in Lithuania (Goods-Related Activities)
Business Activity Licence Required
1. production of weapons, ammunition, explosives and
pyrotechnics;  repair of weapons unless the laws provideotherwise*;Licence required fordomestic and foreigninterests.  Licences for
activities (3) are available
only for domestic interests.
2. pharmaceutical activity*;
3. cultivation and sale of crops containing narcotic, highly
effective or poisonous substances; import and export of thenarcotics and highly effective substances, wholesale and retail
trade in Lithuania*;
4. production of alcohol products which do not exceed 22% of
ethyl alcohol by volume*;
5. import of alcohol products to Lithuania, wholesale and retail
trade by alcohol products*;
6. production, import of tobacco and tobacco products, wholesale
trade*;
7. purchasing of non-ferrous metals, its alloys, scrap and waste in
Lithuania*;
8. purchasing of ferrous metals scrap and its waste in Lithuania*;
9. purchasing and processing of precious metals waste,
commercial activity related with the precious metals and jewels;
9. 10. production of seals, stamps*;
10. 11.production, transportation, wholesale trade, and storage ofdangerous chemical, nuclear or radioactive materials listed by
the Ministry of Environment Protection;  gathering, making
harmless, storage and burying of waste thereof;
11. 12.import, export, wholesale and retail trade by the non-packed oilproducts listed by Government*;
12. 13. import of pyrotechnics (listed by the Ministry of Interior), civilweapons and ammunition;  retail trade (excluding pistols and
revolvers and ammunition thereof for self-defence) *;
13. 14.publishing of securities and document forms*;
15. import and production of biological plants protection measures
and trade by its ….
1. production of undenatured ethyl alcohol and alcohol beverages
which contain more than 22% of ethyl alcohol by volume (this
right is given only to State enterprises unless the Law onAlcohol Control provides otherwise);Activities reserved for State
and special enterprises
2. production of monetary signs and coins, post-stamps;WT/ACC/SPEC/LTU/8/Rev.3
Page 83
Table 3.2:  Licensing of Business Activities  in Lithuania  (Services-Related Activities)
Business Activity Licence Required
1. prospecting of natural resources; Licence required for
domestic and foreign
interests.  Licences for
activity (6)   (12) are
available only for domesticinterests.
2. the exploitation of natural resources;
3. repair of sports and hunting firearms, weapons*;
1. 4. pharmaceutical activity;
2. 5. providing of medical services, medical treatment unless the
laws provide otherwise *;
3. training and education activity
4. 6. veterinary practice;
7. lawyer practice, unless the laws provide otherwise;
8. training and education activity (only for individuals to be
occupied with private veterinary practice)*
5. 9 carrying out of geodetic and topographical works*;
6. 10 passenger transportation in Lithuania;  passenger international
transportation* , unless the laws provide otherwise ;
13.  11.tourism services*
7.  12. organizing of lotteries*;
8.  13. providing of communication services using of common
network of telecommunications lines and stations*;
9. 14. establishment and exploitation of the shooting-galleries andstands of hunting shooting;
15. mediation activity in the public turnover of stock exchange;
16. stock exchange activity
17. investment and reinvestment to securities and trade by its as
main activity;  possession of the investments companies
property, unless the laws provide otherwise;
10.  18.energetic activity*;
11. 19. ship agency services*;
20. lockman services;
12. 21. fulfilment of audit*;
22. insurance activity*
23. treatment of patients ill with infectious diseases;
24. treatment of animals ill with especially dangerous;
1. post work (only the State enterprise "Lietuvos pastas"); Activities reserved for State
enterprises, local enterprises
and special enterprises
2. accepting and paying off of postal orders (only the State
enterprises "Lietuvos pastas");
* licensing of business activity  ]WT/ACC/SPEC/LTU/8/Rev.3
Page 84
[Table 4:  Rates of Stamp Tax Established in Accordance with
Government Resolutions No. 1123 of 11 November 1994 and No. 640 of 23 June 1997
774 of 27 June 1998 (it will come into force after Lithuania's accession to the WTO)
1. For issuing an activity licences for importation and
wholesale of imported alcohol (for the term of one year):
(a) Vodka and other alcoholic beverages Llt. 470,000 (US$117,500)
(after accession Llt.100,000
(US$25,000))
(b) Alcoholic beverages except vodka Llt. 380,000 (US$95,000)
(after accession this kind o f
licence will not be applied)
(c) Wine (not exceeding 22% of volume concentration of
ethyl alcohol) and beerLlt. 150,000 (US$37,000)
(after accession Llt.50,000
(US$12,500))
(d) Beer Llt. 30,000 (US$7,500)
(after accession Llt.15,000
(US$3,750))
(e)         Alcohol products (except alcoholic beverages) Llt.500 (US$125)
2. For issuing a licence to engage in wholesale of alcohol
produced in Lithuania (for the term of one year):
(a) Alcoholic beverages exceeding 22% of volume
concentration of ethyl alcohol) (licence includes also beer
and wine)Llt. 15,000 (US$3,750)
Ltl 35,000 (US$8,750)
(after accession Llt.100,000
(US25,000))
(b) Alcoholic beverages not exceeding 22% of volume
concentration of ethyl alcoholLlt. 5,000 (US$1,250)
Ltl 17,500 (US$4,375)
(after accession Llt.50,000
(US$12,500))
(c) Beer Llt. 3,000 (US$750)
Ltl 8,000 (US$2,000)
(after accession Llt.15,000
(US$3,750))
3. For issuing an activity licence for importation and
wholesale  of tobacco (for the term of one year)Llt. 6,000 (US$1,500)
Ltl 15,000 (US$3,750)
4. For issuing an activity licence for importation and
wholesale of tobacco products (for th e term of one year) Llt. 15,000 (US$3,750)
5. For issuing an activity licence for importation and for
wholesale of imported oil products: petrol, liquid fuel,
kerosene, aircraft fuel, diesel fuel and lubricants (for theterm of one year)Llt. 500,000 (US$125,000)
6. For issuing a licence to engage in wholesale of oil
products (for the term of one year) Llt. 100,000 (US$25,000)
7. For issuing a licence to engage in retail trade of oil
products in each petrol stationLlt. 3,000 (US$750) for each
qualify of petrol, diesel fuel and
liquid fuel
8. For issuing a licence to engage in retail trade of lubricants Llt. 1,000 (US$250)WT/ACC/SPEC/LTU/8/Rev.3
Page 85
Licensing fees for pharmaceutical business activity;
Retail sale of medicine and medicine materials 300 Litas
Production and retail sale of medicine and medicine materials 300 Litas
Wholesale of medicine and medicine materials 1,000 Litas
Production of pharmaceutical products and preparations 800 Litas
Rendering of information about medicine 300 Litas
Production of narcotics and psychotropic substances and medicine materials 200 Litas
Production of psychotropic substances and medicine materials 200 Litas
Wholesale, import and export of narcotics and psychotropic substances and
medicine materials300 Litas
Wholesale, import and export of psychotropic substances and medicine
materials300 Litas
Retail sale of narcotics and psychotropic substances and medicine materials 100 Litas
Retail sale of psychotropic substances and medicine materials 300 Litas
]WT/ACC/SPEC/LTU/8/Rev.3
Page 86
[Table 5:  General Tariff Quotas Applied by Lithuania*
Government Resolution No. 1367 of 9 December 1997
HS Code** Description of group of goods Institution Issuing Quotas
0101 11, 0102 10,
0103 10, 0104 10 10,
0104 20 10Pure-bred breeding animals Ministry of Agriculture and
Forestry
0105 11,
0105 12 00,
0105 19 20,
0105 19 90Pure-bred breeding poultry Ministry of Agriculture and
Forestry
 0106 00 10,
0106 00 90Other live pure-bred breeding
animalsMinistry of Agriculture and
Forestry
0201, 0202, 0203 Meat of bovine animals, pork Ministry of Agriculture and
Forestry  ***
0405 Butter Ministry of Agriculture and
Forestry ***
0407 00 11,
0407 00 19Pure-bred breeding birds’ eggs for
hatchingMinistry of Agriculture and
Forestry
0511 99 50,
0511 99 80Semen of stallions, boars, ram,
he-goats, embryo of bovine animalsMinistry of Agriculture and
Forestry
0701 Potatoes Ministry of Agriculture and
Forestry ***
1001-1004 Cereals Ministry of Agriculture and
Forestry ***
1101 Wheat flour Ministry of Agriculture and
Forestry ***
1104 Cereal grains otherwise worked Ministry of Agriculture and
Forestry ***
1214 90 91,
1214 90 99Compound feed Ministry of Agriculture and
Forestry ***
1107 10 Malt, not roasted Ministry of Agriculture and
Forestry ***
1502 Fats of bovine animals, sheep or
goatsMinistry of Agriculture and
Forestry ***
1701 11 10-
1701 12 90Raw sugar, for refining Ministry of Agriculture and
Forestry ***,
Ministry of National Economy
1701 91,1702 30,1702 40,1702 90Sugar for special purpose Ministry of Agriculture and
Forestry ,
Ministry Health Care
1701 99 Sugar Ministry of Agriculture and
Forestry ***,
Ministry of National Economy
2207 10 Technical ethyl alcohol State Tobacco and Alcohol Control
Agency
2207 20 Denatured ethyl alcohol State Tobacco and Alcohol Control
Agency
5301 Flax tow Ministry of National Economy,
Ministry of Agriculture and
ForestryWT/ACC/SPEC/LTU/8/Rev.3
Page 87
HS Code** Description of group of goods Institution Issuing Quotas
ex 7010 92 10 Preserving jars of glass of 0.35 litres Ministry of Agriculture and
Forestry ,
Ministry of National Economy
Construction and Urbanistic
7010 91 21,
7010 92 21,7010 93 21,
7010 94 20,
7010 94 60Irregular transparent glass bottles Ministry of Agriculture and
ForestryMinistry of National Economy
Construction and Urbanistic
9401, 9403 Special furniture for ships Ministry of Transport
* Tariff quotas are approved by the Government.
** Codes are given according to the EEC Harmonized Commodity Description and Coding
System.
*** Tariff quotas are granted by tender.
]WT/ACC/SPEC/LTU/8/Rev.3
Page 88
[ Table 6:  Fees and Charges for Services Rendered Relating to Importation or Exportation
1. Formalities in connection with placement of one
consignment of goods under one of the following customs
procedures:
(a) Exportation (including re-exportation) Llt. 22 (Llt. 1 - US$0.25)
 (b) Importation (including re-importation and customs
warehousing)Llt. 33
(c) Temporary admission and temporary exportation Llt. 55
(d) Inward processing and outward processing Llt. 110
2. Issuance of one certificate of origin Llt. 25
3. Issuance of stickers used for marking of imported alcoholic
beverages and tobacco goods (under one request)Llt. 20
4. Issuance of authorization for inward processing Llt. 200
5. Issuance of authorization for outward processing Llt. 221
6. Issuance of permit to carry out formalities in connection
with customs procedures at other customs office:
(a)  Single Llt. 10
(b) For period not exceeding 3 months Llt. 20
(c) For the period not exceeding 6 months Llt. 60
(d) For the period exceeding 6 months Llt. 80
7. For the security of goods carriage through customs territory
(only for the services of police financed by State budget)Llt. 0.8 per kilometre
8. Issuance of permit to import:
(a) Shotguns, hunting rifles, its parts arbalets Llt. 70
(b) Shotguns, hunting rifles, its parts arbalets for commercial
goalsLlt. 6,000
(c) Pistols (revolvers), its parts for self-defence, for commercial
goalsLlt. 2,000
(d) Ammunition and explosives Llt. 50
(e) Ammunition for commercial goals Llt. 4,000
(f) Sporting firearms Llt. 20
(g) Sporting firearms for commercial goals Llt. 2,000
(h) Air gains (pistols), gas pistols (revolvers) and balloons for
commercial goalsLlt. 3,000
(i) Colour copy machinery Llt. 40
(j) Colour copy machinery for commercial goals Llt. 4,000
9. Issuance of permit to export:
(a) Shotguns, hunting rifles, its parts arbalets Llt. 70
(b) Shotguns, hunting rifles, its parts arbalets for the
commercial goalsLlt. 6,000
(c) Pistols (revolvers), its parts for self-defence, for commercial
goalsLlt. 2,000
(d) Ammunition and explosives Llt. 50
(e) Ammunition for commercial goals Llt. 4,000
(f) Sporting firearms Llt. 20
(g) Sporting firearms for commercial goals Llt. 2,000
(h) Air guns (pistols), gas pistols (revolvers) and balloons for
commercial goalsLlt. 3,000
(i) Colour copy machinery Llt. 40
(j) Colour copy machinery for commercial goals Llt. 4,000WT/ACC/SPEC/LTU/8/Rev.3
Page 89
10. Import of narcotic, psychot ropic medicine and medicine
stuffLlt. 300
11. Import of psychotropic medicine and medicine stuff Llt. 300
12. Import of biological plants protection remedies Llt. 500
13. Import of chemical materials, which can harmfully effect
environmentLlt. 700
14. Transportation of nuclear and radioactive materials Llt. 1,500
15. Import of pyrotechnics remedies, civil guns and its
ammunition, except pistols and revolvers for self-defence and its
ammunitionLlt. 5,000
16. Issuance of permission to temporary export for processing Llt. 221
17. Issuance of permission to temporary import for processing Llt. 200
18. Issuance of license to import, export and transport:
(a) Controlled goods Llt. 120
(b) Dangerous materials according UN classification Llt. 44
(c) Radioactive materials according UN classification Llt. 77
19. Issuance of certificate confirming about the delivering and
import of controlled goodsLlt. 100
20. Export of itinerant culture values (elder than 50 years) or
antiquarian things20% of value
21. Export of numismatics, philately, bonistics and faleristics 10% of value
]WT/ACC/SPEC/LTU/8/Rev.3
Page 90
[Table 7:  Excise Taxes Levied in Lithuania According to
Government Resolution No. 328 (9 April 1997  393 (3 April 1998)
Commodity
 codeCommodity description Taxes (by percentage of taxable
value or absolute Llt  for
indicated measurement unit*)
2207.10.00.0; 2208
(except
2208.90.69.1;
2208.90.69.3)**Undenatured ethyl alcohol and alcoholic
beverages, except for meads, champagne,
wine, beer and some medicines with herbs
containing ethyl alcoholLlt. 0.43 per 1% of an alcoholic
strength by volume per one litre
2208.90.69.1 Meads Llt. 0.12 per 1% of an alcoholic
strength by volume per one litre
2204.21.11.0-
2204.21.80.0,
2204.29.21.0-
2204.29.75.0,
2204.30, 2206,
2205.10.10.0,
2205.90.10.0Wine of an alcoholic strength by volume of
13% vol, and other fermented beverages
(excluding beverages (code 2206.00.89.0)
produced by the company “Lietuviskas
midus”)Llt. 0.12 per 1% of an alcoholic
strength by volume per one litre
2204.21.81.0-
2204.21.94.0,
2204.29.81.0-
2204.29.94.0,
2205.10.10.0,
2205.90.10.0Wine and vermouth of an alcoholic strength by
volume of more than 13% vol, but not
exceeding 18% volLlt. 0.17 per 1% of an alcoholic
strength by volume per one litre
2204.21.95.0-
2204.21.99.0,
2204.29.95.0-
2204.29.99.0,
2205.10.90.0,
2205.90.90.0Wine and vermouth of an alcoholic strength by
volume exceeding 18% volLlt. 0.28 per 1% of an alcoholic
strength by volume per one litre
2204.10,
2204.21.10.0,
2204.29.10.0Champagne and wine of increased pressure Llt. 0.35 per 1% of an alcoholic
strength by volume per one litre
2203 Beer Llt. 0.40/litre***
 2402.20.10.0-
2402.20.90.0Cigarettes with and without filters Llt. 12 for 1000 units****
 2402.10.00.0,
2402.90.00.0,
2403****Packed smoking tobacco and other tobacco
products50
2710.00.27.0-
2710.00.37.0Motor fuel/petrol Llt. 100, but not less than
Llt 800 per ton*****
2710.00.51.0,
2710.00.55.0,
2710.00.66-
2710.00.68Jet fuel, kerosene, gas oils (diesel fuel), liquid
furnace fuelLlt. 40, but not less than Llt 300
per ton*****
2710.00.87.0-
2710.00.97.0,
2710.00.98.9All types of lubricating oils except for fuel oil
M-100 classified in the following subheading
2710.00.98.0Llt. 8, but not less than Llt. 180
per ton
 1806.20.10.0-
1806.20.80.0,
1806.31-
1806.90Chocolate and other food products containing
cocoa, except cocoa powder and products
containing less than 18% by weight of cocoa
butter10WT/ACC/SPEC/LTU/8/Rev.3
Page 91
Commodity
 codeCommodity description Taxes (by percentage of taxable
value or absolute Llt  for
indicated measurement unit*)
0901 Coffee 10
7113, 7114,
7116Articles of jewellery and parts thereof, of
precious metal or of metal clad with precious
metals, articles of goldsmiths’ or silversmiths’
wares and parts thereof, of precious metals or
metal clad with precious metals, articles of
natural or cultured pearls, precious or
semi-precious stones-natural, synthetic or
reconstructed10
8703.21.10.1,
8703.21.90.2,
8703.22.19.1,
8703.22.90.2,
8703.23.19.1,
8703.23.90.2,
8703.24.10.1,
8703.24.90.2,
8703.31.10.1,
8703.31.90.2,
8703.32.19.1,
8703.32.90.2,
8703.33.19.1,
8703.33.90.2Luxury motor cars, not older than 5 years
(except for special cars) specified in the list of
State Agency of Competition and Consumer
Rights Protection under the Government of
Lithuania15 from price exceeding
Llt. 60,000
2716.00.00.0 Electricity 1
4901.10.00.1,
4901.99.00.1,
4902.10.00.1,
4902.90.10.1,
4902.90.30.1,
4902.90.90.1,
4908.10.00.1,
4908.90.00.1,
4909.00.10.1,
4909.00.90.1,
4910.00.00.1,
4911.10.10.1,
4911.10.90.1,
4911.91.10.1,
4911.91.80.1,
4911.99.00.1,
9504.40.00.1Erotic and violence propagating publications 50
Commodity
 codeCommodity description Taxes
(by percentage of taxable value
or absolute Llt for indicated
measurement unit*)WT/ACC/SPEC/LTU/8/Rev.3
Page 92
Commodity
 codeCommodity description Taxes
(by percentage of taxable value
or absolute Llt for indicated
measurement unit*)
2207.10.00.0;
2208 (except
2208.90.69.1;
2208.90.69.3)**Undenatured ethyl alcohol and alcoholic
beverages, except for meads, champagne,
wine, beer and some medicines with herbs
containing ethyl alcoholLlt. 0.43 per 1% of an alcoholic
strength by volume per one litre
2208.90.69.1 Meads Llt. 0.12 per 1% of an alcoholic
strength by volume per one litre
2204.21.11-
2204.21.80,
2204.29.12-
2204.29.75,
2204.30, 2206,
2205.10.10.1,
2205.90.10.1Wine of an alcoholic strength by volume of
13% vol, and other fermented beverages
(excluding beverages (code 2206.00.89.0)
produced by the company “Lietuviskas
midus”)Llt. 0.12 per 1% of an alcoholic
strength by volume per one litre
2204.21.81.0-
2204.21.94.0,
2204.29.81.0-
2204.29.94.0,
2205.10.10.0,
2205.90.10.0Wine and vermouth of an alcoholic strength by
volume of more than 13% vol, but not
exceeding 18% volLlt. 0.17 per 1% of an alcoholic
strength by volume per one litre
2204.21.95.0-
2204.21.99.0,
2204.29.95.0-
2204.29.99.0,
2205.10.90.0,
2205.90.90.0Wine and vermouth of an alcoholic strength by
volume exceeding 18% volLlt. 0.28 per 1% of an alcoholic
strength by volume per one litre
2204.10,
2204.21.10.0,
2204.29.10.0Champagne and wine of increased pressure Llt. 0.35 per 1% of an alcoholic
strength by volume per one litre
2203 Beer Llt. 0.40/litre***
 2402.20.10.0-
2402.20.90.0Cigarettes with and without filters Llt. 12 for 1000 units****
 2402.10.00.0,
2402.90.00.0,
2403****Packed smoking tobacco and other tobacco
products50
2710.00.27.0-
2710.00.37.0Motor fuel/petrol Llt. 100, but not less than
Llt 800 per ton*****
2710.00.51.0,
2710.00.55.0,
2710.00.66-
2710.00.68Jet fuel, kerosene, gas oils (diesel fuel), liquid
furnace fuelLlt. 40, but not less than Llt 300
per ton*****
2710.00.87.0-
2710.00.97.0,
2710.00.98.9All types of lubricating oils except for fuel oil
M-100 classified in the following subheading
2710.00.98.0Llt. 8, but not less than Llt. 180
per ton
 1806.20.10.0-
1806.20.80.0,
1806.31-
1806.90Chocolate and other food products containing
cocoa, except cocoa powder and products
containing less than 18% by weight of cocoa
butter10
0901 Coffee 10WT/ACC/SPEC/LTU/8/Rev.3
Page 93
Commodity
 codeCommodity description Taxes
(by percentage of taxable value
or absolute Llt for indicated
measurement unit*)
7113, 7114,
7116Articles of jewellery and parts thereof, of
precious metal or of metal clad with precious
metals, articles of goldsmiths’ or silversmiths’
wares and parts thereof, of precious metals or
metal clad with precious metals, articles of
natural or cultured pearls, precious or
semi-precious stones-natural, synthetic or
reconstructed10
8703.21.10.1,
8703.21.90.2,
8703.22.19.1,
8703.22.90.2,
8703.23.19.1,
8703.23.90.2,
8703.24.10.1,
8703.24.90.2,
8703.31.10.1,
8703.31.90.2,
8703.32.19.1,
8703.32.90.2,
8703.33.19.1,
8703.33.90.2Luxury motor cars, not older than 5 years
(except for special cars) specified in the list of
State Agency of Competition and Consumer
Rights Protection under the Government of
Lithuania15 from price exceeding
Llt. 60,000
2716.00.00.0 Electricity 1
4901.10.00.1,
4901.99.00.1,
4902.10.00.1,
4902.90.10.1,
4902.90.30.1,
4902.90.90.1,
4908.10.00.1,
4908.90.00.1,
4909.00.10.1,
4909.00.90.1,
4910.00.00.1,
4911.10.10.1,
4911.10.90.1,
4911.91.10.1,
4911.91.80.1,
4911.99.00.1,
9504.40.00.1Erotic and violence propagating publications 50
* The taxable value shall be:
- sale price free from excise tax and VAT of commodities produced in Lithuania;
- customs value, including duties, of imported commodities.
** Commodity codes are presented according to the HS (1997   1998) codes.
*** Excise tax - Llt. 0.2 per litre - shall be levied on beer produced and sold by each Lithuanian
beer manufacturing company producing 100 thousand decalitres per year (this provision shall
be applied until Lithuanian Membership of the World Trade Organization).
**** Excise tax - Llt. 15 for 1000 units - shall be levied on cigarettes of highest quality produced in
Lithuania and imported (until 31 December 1997).  Excise tax shall not be levied on tobaccoWT/ACC/SPEC/LTU/8/Rev.3
Page 94
(Code 2403.10.90.1) imported by the joint-stock company “Philip Morris Lietuva” and by the
company “House of Prince Lietuva”.  In the case when imported tobacco in these companiesis used not for production of cigarettes, but for other purposes, the excise tax shall be levied.
***** Absolute excise tariffs only (in Llt. per ton shall be applied on oil products produced in the
joint-stock company “Mazeikiu nafta”.   From 1 August 1995 excise shall be not applied on jet
fuel (Code 2710.00.51.0) imported by joint-stock companies “Lietuvos avialinijos” and
“Lietuva” and purchased from the joint-stock company “Mazeikiu nafta”.]WT/ACC/SPEC/LTU/8/Rev.3
Page 95
[Table 8:  VAT Exemptions in Accordance with the Amendment
to the Law on Value Added Tax of 14 October 1997
1 - medical and stomatologic services rendered by the institutions of the State health
supervision and veterinary service;
- medicines (including veterinarian);
- medical equipment;- materials, used for medicines production;
- medicine goods.
2 social services rendered by kindergartens and day care centres, old and disabled peoples board
and lodging
3 - training, science, studies services rendered by education, science and studies
institutions, registered according the order established by the Government;
- non-commercial culture services listed by the Government;
4 post services (except sending forward the parcels and the telecommunication services and
postage stamps and envelopes);
5 - financial services listed by the Government and rendered by the insurance, banks and
other credit unions institutions;
- turnover of securities and lotteries;
6- c o f f i n s ;
- funeral wreaths;
- temporary tombstones;- burying services;
7 - printing, publishing and distribution of magazines (listed by the Government),
newspapers, books (except editions, which Journalists and Editors Commission for
Ethics recognised among the categories having erotic and violent character);
-n e w s - p r i n t ;
8 - services and actions, rated by consular and stamp taxes;
- local, State levies and taxes included in the State and municipalities budgets or special
accounts opened in fisc or in the privatization funds;
9 - State property being privatized;
10 - works and services done for traditional Lithuanian religious communities and paid
from sacrificed means;
11 - rent (not more than 2 months) of flats and houses;
12 - rent of land;
13 - services rendered by traditional Lithuanian religious communities and paid by
sacrificed means, traditional handicrafts for which the special commission o f
handicraft experts gave such status;
14 - passenger transport services according certain routes defined by the Ministry o f
Transport or municipalities;
15 -  levies for sea ports, airports, flights ruling and aeronavigation services;
16 - construction of apartments; renovation, heating and projecting works; including
construction of engineering networks and territory improvement financed from State ormunicipalities budgets, soft credits prov ided by State or special State funds;
17 - goods with UNICEF mark according the list formed by the Government;
18 - restoration or conservation of culture monuments and heritage financed from the State
or municipalities budgets, also from sacrificed means or received as support;
19 - exported goods (including returned to abroad temporary imported goods for
processing) (zero VAT tariff);
20 - transportation of exported goods when final point is outside Lithuanian customs
territory; also all services related with foreign cargo transportation by transit through
territory of Lithuania (zero VAT tariff);WT/ACC/SPEC/LTU/8/Rev.3
Page 96
21 - freight, exploitation, repairmen, agency of ships and planes transporting goods and
passengers by international routes (zero VAT tariff);
22 - goods imported to bonded warehouses, duty-free shops (zero VAT tariff);
23 - services provided by enterprises, institutions and organizations outside Lithuania (zero
VAT tariff);
24 - goods and services for which directly paid residents of foreign countries and which are
used for the production of goods for export or reexport (zero VAT tariff);
25 - imported goods received as charity (humanitarian aid);
26 - imported by natural persons if the quantity of imported goods is permitted to import
without customs duties;
27 - goods transported by diplomatic and consular representatives and international
organizations;
28 - received as support for budget institutions;
29 - parcels sent by mail which weight is not more than 31.5 kg and value up to 400 Litas;
30 - goods related with defence and safety of the Republic of Lithuania according the single
cases defined by the Government.
]WT/ACC/SPEC/LTU/8/Rev.3
Page 97
[Table 9.1:  List of goods subject to "price-in-checking"
(abolished on 31 December 1997  until Lithuania's accession to the WTO)
HS code Description
0201 - 0205,
0206.10 - 0206.22,
0206.26.10.9-
0206.29.91.0,
0206.29.99.99-
0206.90,
0209 – 0210meat and meat offal
0207.10.11 - 0207.23.90,
0207.39.11 - 0207.39.25,
0207.39.31 - 0207.39.47,
0207.39.53 - 0207.39.83,
0207.41.10 - 0207.41.71,
0207.42.10 - 0207.42.71,
0207.43.11 - 0207.43.81poultry and edible offal
0401 - 0402.21.99,
0402.29.15 - 0404milk and dairy products
0407,
0408birds eggs in shell, not in shell and egg yolks, fresh, dried
0701, 0702.00.90.0,
0703.10, 0703.20,
0707.00.19.0,
0808.10.10.0,
0808.10.31.0-
0808.10.33.0,
0808.10.39.0,
0808.20.10.0potatoes, tomatoes,
onions, garlic, shallots, cucumbers,
apples and pears
0708.10,
ex 0708.90peas, beans
(except for seed growing)
1001.90 - 1040 grain
1008.10 buckwheat
 1101,
1102.10wheat and rye flour
1103.19.30.0 fine ground barley
1104 cereal grains otherwise worked
1104.29.19 buckwheat
1108.13.00.0 potato starch
1209.29.50 lupine
1214.90 combined fodder
1514 rape, colza or mustard oil
1601 sausages and  products thereof
1602 canned meat
1701.91.00.0 cane sugar and beet sugar containing added flavouring or
colouring matter
1701.99.10.0 white sugar
2102.10 active yeast
2105.00 ice cream  and other edible ice, whether or not containing
cocoaWT/ACC/SPEC/LTU/8/Rev.3
Page 98
HS code Description
2202.10.00.0 waters, including mineral waters and aerated waters,
containing added sugar or other sweetening or flavoured matter
2203.00 beer made from malt
ex 2309.90 preparations of a kind used in animal feeding except premixes
2710.00.11.0, 2710.00.27.0,
2710.00.29.0, 2710.00.34.0,
2710.00.69.0oil products
2804.10.00.0, 2804.30.00.0,
2804.40.00.0,hydrogen, nitrogen, oxygen
2811.21.00.0 carbon dioxide
2901.29.00.0 acetylene
2523.29.00.0  portland cement
3605.00.00.0 matches
3921.11.00.0 plates, sheets, films, foils and strips of plastics of polymers o f
styrene
6806.10.00.0 slag wool, rock wool and similar mineral wools (including
intermixtures thereof), in bulk, sheets or rolls
6807.10.10.0 roofing and facing products of asphalt or similar materials (for
example, petroleum bitumen or coal tar pitch)
6811.10.00.0 slate
6907, 6908 glazed and non glazed ceramic flags and paving
7005.10.10.0 noodle conservatory glass
7006.00 glass of heading No.7003, 7004 and 7005, bent, edge-worked,
engraved, drilled, enamelled or otherwise worked, but not
framed or fitted with other materials
7007 toughened, safety glass for incorporating in vehicles, windows,
warm-houses
7008.00 multiple-walled insulating units of glass
7010 carboys, bottles, flasks, jars pots, phials, ampoules and other
containers, of glass, of a kind used for the conveyance or
packing of goods; preserving jars of glass; stoppers, lids and
other closures, of glass
HS code Description
0201-0205,
0206.10-0206.22,
0206.29.10.9-0206.29.91.0,
0206.29.99.9-0206.90,
0209 – 0210meat and meat offal
0207.11.10.0 - 0207.13.70.0,
0207.14.10.0 - 0207.14.70.0,
0207.24.10.0 - 0207.26.80.0,
0207.27.10.0 - 0207.27.80.0,
0207.32.11.0 - 0207.33.90.0,
0207.35.11.0 - 0207.35.79.0,
0207.36.11.0 - 0207.36.79.0poultry
0401 - 0402.21.99,
0402.29.15 – 0404milk and dairy productsWT/ACC/SPEC/LTU/8/Rev.3
Page 99
HS code Description
0407,
0408birds eggs in shell, not in shell and egg yolks, fresh, dried
0701,
0702.00.00.4-0702.00.00.6,
0703.10, 0703.20,
0707.00.05.4, 0707.00.05.5,
0708.10, ex0708.90.00.0,
0808.10.10.0,
0808.10.20.4, 0808.10.50.4,
0808.10.90.4,
0808.20.10.0potatoes, tomatoes, onions, garlic, shallots, cucumbers,
peas, beans, apples and pears
1001.90 - 1040 grain
1008.10 buckwheat
1101,
1102.10wheat and rye flour
1103.19.30.0 fine ground barley
1104 cereal grains otherwise worked
1104.29.19 buckwheat
1108.13.00.0 potato starch
1209.29.50 lupine
1214.90 combined fodder
1514 rape, colza or mustard oil
1601 sausages and  products thereof
1602 canned meat
1701.91.00.0 cane sugar and beet sugar containing added flavouring or
colouring matter
1701.99.10.0 white sugar
2102.10 active yeast
2105.00 ice cream  and other edible ice, whether or not containing cocoa
2202.10.00.0 waters, including mineral waters and aerated waters, containing
added sugar or other sweetening or flavoured matter
2203.00 beer made from malt
ex 2309.90 preparations of a kind used in animal feeding except premixes
2523.29.00.0 other portland cement
2710.00.27.0-2710.00.32.0 motor fuel
2710.00.66.1 diesel fuel
2804.10.00.0, 2804.30.00.0,
2804.40.00.0,hydrogen, nitrogen, oxygen
2811.21.00.0 carbon dioxide
2901.29.20.1, 2901.29.80.1 acetylene
3605.00.00.0 matches
3921.11.00.0 plates, sheets, films, foils and strips of plastics of polymers o f
styrene
4818.10 toilet paper
6806.10.00.0 slag wool, rock wool and similar mineral wools (including
intermixtures thereof), in bulk, sheets or rolls
ex6807.10.10.0 roofing and facing products of asphalt or similar materials (for
example, petroleum bitumen or coal tar pitch)
6811.10.00.0 slate
6907, 6908 glazed and non glazed ceramic f lags and pavingWT/ACC/SPEC/LTU/8/Rev.3
Page 100
HS code Description
7005.10 noodle conservatory glass
7006.00 glass of heading No.7003, 7004 and 7005, bent, edge-worked,
engraved, drilled, enamelled or otherwise worked, but not
framed or fitted with other materials
7007 toughened, safety glass for incorporating in vehicles, windows,
warm-houses
7008.00 multiple-walled insulating units of glass
7010 carboys, bottles, flasks, jars pots, phials, ampoules and other
containers, of glass, of a kind used for the conveyance or
packing of goods; preserving jars of glass; stoppers, lids and
other closures, of glass
Table 9.2:  List of Goods Subject to Minimum Import Prices
(Until Lithuania's Accession to the WTO)
HS Code Description
0207.12.10.0, 0207.12.90.0, 0207.13.20.0,
0207.13.60.0, 0207.14.10.0,
0207.14.20.0,0207.14.60.0Poultry
0708.10, ex0708.90.00.0 Leguminous vegetables
1001.90-1004.00.00.0, 1008.10.00.0, 1101.00,
1102.10.00.0, 1103.19.30.0, 11.04Grain and products thereof
1209.29.50.0, 1214.90 Lupines seeds, mangolds, swedes and other
forage products
ex2309.90 Preparations of a kind used in animal feeding
1701.91.00.0, 1701.99.10.0 Sugar
2710.00.27.0, 2710.00.29.0, 2710.00.32.0,
2710.00.66.1Oil and products thereof
3605.00.00.0 Matches
6811.10.00.0 Corrugated sheetWT/ACC/SPEC/LTU/8/Rev.3
Page 101
[Table 10.1:  Rates of Export Duties Approved by Government Resolutions
No. 896 of 7 August 1997 and No.1 of 6 January 1998
Code of group of goods* Description of group of goods Tariff rate (%)**
0505 10 Feathers for stuffing; down 30
0510 00 00 2,
0510 00 10 3Glands and other organs used in pharmaceutical
products***30
3001 10 90-
3001 90 91Glands and organs used in organo-therapeutical
uses***30
4101, 4103 Raw hides and skin 30
4403 20 90 6 Pine wood in logs, with a circumference not less than
20 cm at the thin end60
4403 20 90 7 Spruce wood in logs 60
4403 91 Unprocessed oak timber 60
4403 99 99 1 Unprocessed ash timber  60
4403 99 99 2 Birch wood in logs, with a circumference not less
than 20 cm at the thin end 60
* Codes of groups (goods) are presented according to the EEC Harmonized Commodity
Description and Coding System.
** Goods without codes herein are subject to zero rate customs duties.
*** Under quotas granted by the Ministry of Health Care the export of such products is duty free.
Table 10.2:  Rates of Export Duties under Free Trade Agreements
Code of group of goods Description of group of goods Tariff rate (%) for
particular country
4101 10-4101 21,
4103Raw hides and skins of bovine animals EU - 30
EE, LV - 25
CZ, SK, Sl - 15
4401 22-4101 40 Other hides and skins of bovine animals EU - 30
CZ, SK, Sl - 15
4403 20 10 5 Spruce of the kind “Picea abies Karst.” or silver fir
(Abies alba Mill.)EE, LV - 10
CZ, SK, Sl - 30
4403 20 30 5 Pine of the kind “Pinus sylvestris L.” EE, LV - 10
CZ, SK, Sl - 30
4403 91 00,
4403 99 99 1Wood and articles of wood; wood charcoal EE, LV - 10
EU, CZ, SK, Sl - 30
4403 99 50 1 Wood and articles of wood; wood charcoal CZ, SK, Sl - 30
EU - European Union;  EE - Estonia;  LV - Latvia;  CZ - Czech Republic;  SK - Slovakia;
Sl - Slovenia;WT/ACC/SPEC/LTU/8/Rev.3
Page 102
[ Table 11:  List of Foodstuffs Subject to Certification under Importation
Description of products HS Code Controlling institution*
Meat and edible meat sub-
products02.01 – 02.10 V
Fish and crustaceans, molluscs
and other aquatic invertebrates03.01 – 03.07 V
Milk and milk products;  birds
eggs;  natural honey;  edible
products of animal origin, not
elsewhere specified or included04.01 – 04.10 V
Edible vegetables and some root
crops and tuber crops07.01 – 07.14
(except these positions:
0701.10.00.0;  0703.10.11.0;
0712.90.11.0;  0719.10.10.0;
0713.33.10.0;  0713.90.10.0)HP
P
Edible fruits and nuts;  peel and
husk of citrus fruit or melons08.01 – 08.14 HP
Coffee, tea, mate and spices 09.01 – 09.10
(except positions 0901.90.10.0)HP
P
Grain 10.01 – 10.08
(except these positions:
1001.90.10.0;  1001.90.91.0;
1003.00.10.0;  1005.10;
1006.10.10.0;  1007.00.10.0;
1008.30.00.0)HP
P
Milled production, malt, starch;
inulin;  wheat gluten11.01 – 11.09
(except these positions:
1107.20.00.0;  11.08;  11.09)HP
P
Oil seeds and fruits;  various
corns, seeds and fruits;  plants
used in industry and medicine;
straws and fodder12.01 – 12.08;  12.10;  12.12
(Except these positions:
1201.00.10.0;  1202.10.10.0;
1204.00.10.0; 1230.00.10.0;
1260.00.10.0;  1207.10.10.0;
1270.20.10.0;  1207.30.10.0;
1270.40.10.0;  1207.50.10.0;
1270.60.10.0;  1207.91.10.0;
1207.50.10.0;  1207.60.10.0;
1207.91.10.0;  1207.92.10.0;
1207.99.10.0;  12.09;  12.11;
12.13;  12.14)HP
P
Shellac, gums resins, vegetable
saps and extracts1301.20.00.0;  1302.13.00.0;
1302.19.30.0;  1302.20HWT/ACC/SPEC/LTU/8/Rev.3
Page 103
Animal or vegetable fats, oils
and their fractions, edible
mixtures or preparations;
vegetable or animal waxes15.01 – 15.06, 1516.10 15.07 –
15.15
(except these positions:
1507.10.10.0;  1507.90.10.0;
1508.10.10.0;  1508.90.10.0;
1511.10.10.0;  1511.90.91.0;
1512.11.10.0;  1512.19.10.0;
1512.21.10.0;  1512.29.10.0;
1513.11.10.0;  1513.19.30.0;
1513.21.11.0;  1513.21.19.0;
1513.29.30.0;  1514.10.10.0;
1514.90.10.0;  1515.19.10.0;
1515.21.10.0;  1515.29.10.0;
1515.30.10.0;  1515.50.11.0;
1515.50.91.0;  1515.90.21.0;
1515.90.31.0;  1515.90.40.0;
1515.90.60.0)V
H
1516.20 – 15.17 H
Meat products, fish or
crustaceans, molluscs or other
aquatic invertebrates16.01 – 16.05 V
Sugar and sugar confectionery 17.01 – 17.04 H
Cocoa and Cocoa products 18.01
1802.00.00.0
18.03 – 18.06HP
P
H
Corn, flour, starch or milk
products;  flour confectionery19.01 – 19.05 H
Products of vegetables, fruits,
nuts, and other edible parts of
plants20.01 – 20.09 H
Various food products 21.01 – 21.04;  21.06
(except these positions:
2106.10.20.1;  2106.10.80.1;
2106.90.92.1;  2106.90.98.1;
2106.90.98.5)
21.05H
V
Alcoholic and non-alcoholic
beverages and vinegar22.01 – 22.09 H
Table salt 2501.00.91.0 H
Mixtures of flavouring
substances used in food or drink
industry3302.10 H
Albumins;  modified starches;
glues;  ferments (enzymes)3501.10.90;  35.02 – 35.03 V
*            H – State control agencies to the Ministry of Health Care (e.g. Nutrition Centre, etc.)
              V  State Veterinary Service
              P  State Plant Protection Agency
]WT/ACC/SPEC/LTU/8/Rev.3
Page 104
Table 12: List of Products of Animal Origin Subject to Veterinary Inspection
HS Code Description
0502 Pigs, hogs or boars bristles and hair; badger hair and other brush making hair; waste
of such bristles or hair
0503 Horsehair and horsehair waste, whether or not put up as a layer with or without
supporting material
0505 Skins and other parts of birds, with their feathers or down, feathers and parts o f
feathers (whether or not with trimmed edges) and down, not further worked than
cleaned, disinfected or treated for preservation; powder and waste of feathers or
parts of feathers
0506 Bones and horn-cores, unworked, defatted, si mply prepared (but not cut to shape),
treated with acid or degelatinised; powder and waste of these products
0507 Ivory, tortoise-shell, whalebone and whalebone hair, horns, antlers, hooves, nails,
claws and beaks, unworked or simply prepared but not cut to shape; powder and
waste of these products
0508 Coral and similar materials, unworked or simply prepared but not otherwise worked;
shells of molluscs, crustaceans or echinoderms and cuttle-bone, unworked or simply
prepared but not cut to shape, powder and waste thereof
0509 Natural sponges of animal origin
0510 Ambergris, castoreum, civet and musk; cantharides; bile, whether or not dried;
glands and other animal products used in the preparation of pharmaceutical
products, fresh, chilled, frozen or otherwise provisionally preserved
0511 Animal products not elsewhere specified or included; dead animals of Chapter 1 or
2, unfit for human consumption
0511.10.00 Bovine semen
Other:
Fish waste
Sinews or tendons
Bovine embryos
]WT/ACC/SPEC/LTU/8/Rev.3
Page 105
[Table 11  13:  Status of Lithuanian Legislation to meet WTO TRIPS Requirements
TRIPS Agreement Laws and other legal acts addressing
the subject matterDraft legislation to address subject-
matter
Part II, Section 1.Copyright and Related Rights- Law on the Amendment and
Supplement to the Civil Code(17 May 1994) which will beelaborated by new Law on Copyrightsand Related Rights;
- Law on the Legal Protection
of Computer Programs and Databasesof 30 Jan. 1996;- Membership in the BerneConvention from 1994;-
draft law on copyrights and
related rights (first  second
half of 1998);
- draft documents to ratify the
Rome Convention (until theend of 1997
 1998);
- preparation of joining to the
Geneva Convention (in thecourse of 1998);
Part II, Section 2.
Trademarks- Law on Trademarks and
Service Marks of 3 June 1993;
- Membership in the Paris
Convention from 1994;- Membership from 1996 inthe Nice Agreement (1957)Concerning the InternationalClassification of Goods and Services
for the Purposes of Registration of
Marks;- Membership from 1997(15 November) in the ProtocolRelating to the Madrid Agreement
Concerning the International
Registration of Marks;- no protection of
geographical indications but
this renewed will be
provided under new Law onCompetition (first half of
until the end of 1998);
- amendment to the Law on
Trademarks and Service
Marks to include measures
which are prohibited to usein connection withgeographical indications(terms as “kind”, “style”,
“like”, etc.) (in the course of
1998);
- amendment to procedures
followed by the State PatentBureau to certify a mark aswell-known (in the
beginning
 course of 1998);
Part II, Section 3.Geographical Indications- partially Law on
Competition of 15 September 992- see previous section;
- draft new law on
competition will elaboratemore for the regulation ofthe use of geographicalindications under TRIPSrequirements (first half
 until
the end of 1998);
Part II, Section 4.
Industrial Design- Law on Industrial Design of
4 July 1995;
- Membership in the Paris
Convention from 1994;- amendment to include
“selling” products as
infringing act (in the course
of 1998);
- amendment to further detail
initial term of protection (inthe course of 1998);WT/ACC/SPEC/LTU/8/Rev.3
Page 106
TRIPS Agreement Laws and other legal acts addressing
the subject matterDraft legislation to address subject-
matter
Part II, Section 5.Patents- Patent Law of
18 January 1994;- Law on the Protection ofPlant Varieties and Seed Growing of17 September 1996;- Membership in the Paris
Convention from 1994;
- Membership in the PatentCooperation Treaty from 1994;- amendment to allow patent
owner to prohibit the sale ofa patented products (in thecourse of 1998);
- amendment to provide
specific occasions when a
non-exclusive compulsory
licence may be granted (inthe course of 1998);
- amendment to allow
invalidation of a compulsorylicence (in the course of
1998);
Part II, Section 6.
Layout Designs of Integrated Circuits- Law on the Protection of
Layout designs and Integrated
Circuits of 16 June 1998-             drafting Law on the
Protection of  Layout
Designs of Integrated
Circuits (in the beginning
first half  of 1998);
Part II, Section 7.
Protection of Undisclosed
Information- partially Law on
Competition of 15 September 1992;- draft new law on
competition will provide
more elaborated provisions
(first half  until the end of
1998);
Part II, Section 8.Control of Anti-competitive Practicesin Contractual Licences- Law on Competition of 15
September 1992;- Order of the CompetitionCouncil on Enforcement of
Agreements (concerted activities)
Prohibited by the Law onCompetition because they Restrict orHinder Competition betweenEconomic Subjects of11 November 1993;
- Order of the Competition
Council on Enforcement andExplanation of Abuse of DominantPosition Prohibited by the Law onCompetition of 7 April 1994;- draft new law on
competition will providemore elaborated provisionson control of
anti-competitive practices in
contractual licences (first
half until the end of 1998);
Part III, Section 2.Civil and Administrative Procedures
and Remedies- Civil Code of Lithuania;
- Code of Civil Process of
Lithuania;
- Code of AdministrativeInfringements (Article 214(10) from1996);- Law on Competition of15 September 1992;
- Law on Trademarks and
Service Marks of 3 June 1993;-             Law on Amendments and
Supplement to the Code of
Administrative Infringements
(improvements);
Part III, Section 3.
Provisional Measures- Civil Code of Lithuania - draft law on copyrights and
related rights will provide
separate Article “Provisionalmeasures” (first
 second half
of 1998);WT/ACC/SPEC/LTU/8/Rev.3
Page 107
TRIPS Agreement Laws and other legal acts addressing
the subject matterDraft legislation to address subject-
matter
Part III, Section 4.Special Requirements Related toBorder Measures- Law on Trademarks and
Service Marks of 3 June 1993 (onlyon trademarks and service marks);- draft law on the protection
of intellectual property forimported and exportedgoods (in the course of1998);
Part III, Section 5.Criminal Procedures- Criminal Code of Lithuania
(Article 142)- draft law on amendment and
supplement to the Criminal
Code (improvements) (in the
beginning  second half of
1998);
__________