RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/LTU/35
4 June 1999
(99-2252)
Working Party on the
Accession of LithuaniaOriginal:  English
ACCESSION OF LITHUANIA
State Trading
The Lithuanian Government hereby notifies the operation of the special purpose state
enterprises “Stumbras”, “Vilniaus degtine”, “Anyksciu vynas” and “Alita” and of the closed-stock
company “Lietuviskas Midus”.
This notification is made in accordance with Article XVII 4(a) of GATT 1994 and Paragraph
1 of the Understanding on the Interpretation of Article XVII.
1998
I. ENUMERATION OF STATE TRADING ENTERPRISES
The Government of the Republic of Lithuania wishes to notify the operation of the following
special state enterprises called “entities”: “Stumbras”, “Vilniaus degtine”, “Anyksciu vynas”, “Alita”
and the closed-stock company “Lietuviskas Midus”. These enterprises may fall under the provisions
of GATT Article XVII.
The products in respect of which the ”entities” have exclusive rights are defined in the Law on
Alcohol Control No. I-857 approved by the Parliament on 18 April 1995. They are as follows:
Undenatured ethyl alcohol of an alcoholic strength by volume of more than 22% vol.; spirits, liqueurs
and other spirituous beverages: HS 2208.
II. REASON AND PURPOSE FOR ESTABLISHING AND MAINTAINING THE
“ENTITIES”
A The Lithuanian alcohol policy is based on strict regulation of the production of alcohol and
alcoholic beverages with the aim of reducing the negative consequences of alcohol consumption.
More specifically the reasons for establishing and maintaining exclusive rights for “entities”
are:
- to ensure quality standards of the domestically produced alcohol products concerned;
- to encourage Lithuanian enterprises to produce, import and sell alcoholic beverages
which contain less than 22 per cent of ethyl alcohol by volume and to stimulate the
manufacture and sale of non-alcoholic beverages;
- to encourage an alcohol-free social environment and social activities;WT/ACC/LTU/35
Page 2
A State Alcohol Control Program that ela borates on the above aims was approved by
Government Resolution No.212 of 25 February 1999.
B Exclusive rights to produce alcoholic beverages exceeding 22 per cent of alcoholic strength
are granted according to Article XIII of the Law on Enterprises No.I-196 of 8 May 1990 as amendedon 25 September 1997 (No.VIII-422) which provides that “the right to manufacture alcoholic
beverages shall be vested only to state enterprises unless the Law on Alcohol Control establishes
otherwise” and the Article XIII of the Law on Alcohol Control No.I-857 of 18 April 1995 which
provides that the right to manufacture alcoholic be verages, whose ethyl alcohol volume concentration
exceeds 22 per cent, shall be granted only to state and special purpose enterprises, in the manner
established by this Law and other legal acts. According to Article XX of the Law “it is also prohibited
to produce alcoholic beverages whose ethyl alcohol volume concentration exceeds 50 per cent”.Exceptionally the closed-stock company “Lietuviskas Midus” has the right to produce one alcoholic
beverage i.e. mead (HS 2208.90.69.1), whose ethyl alcohol volume concentration exceeds 50 per cent.
Government Resolution No.1443 of 15 November 1995 on Licensing the Production of
Alcoholic Products lays down the modalities for issuing licenses for the production of alcoholicproducts (see document: Licensing Criteria for Goods, 10 February 1998) (WT/ACC/LTU/19).
The rights for the “entities” to produce alcoholic beverages exceeding 22 per cent of alcoholic
strength were granted on the basis of following legal acts:
(a) for special purpose enterprise “Alita” - Order of Ministry of Agriculture No.6 (11 June 1996);
(b) for special purpose enterprise “Vilniaus degtine” - Order of Ministry of Agriculture No.7 (18
June 1996);
(c) for special purpose enterprise “Anyksciu vynas” - Order of Ministry of Agriculture No.11 (26
June 1996);
(d) for special purpose enterprise “Stumbras” - Or der of Ministry of Agriculture No.14 (28 June
1996);
(e) for close-stock company “Lietuviskas Midus” - Order of Ministry of Agriculture No.38 (14
November 1996);
III. DESCRIPTION OF THE FUNCTIONING OF THE “ENTITIES”
A The “entities” are performing the following functions:
- to produce alcoholic beverages and sell them;
- to participate in the implementation of the State Alcohol Control Program.
B The Government has granted the “entities” an exclusive right to produce alcoholic beverages
whose ethyl alcohol volume concentration exceeds 22 per cent, but not more than 50 per cent.
However the closed-stock company “Lietuviskas Midus” has an exclusive right to produce
alcoholic beverages whose ethyl alcohol volume concentration exceeds 50 per cent.
C The “entities” have no monopolistic or exclusive position on the market since other operators
remain free to purchase, sell, export or import on competitive terms under market conditions.WT/ACC/LTU/35
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D The Government does not establish any export or import levels.
E Export operations are conducted according to normal commercial terms, conditions and
practices, including price, profit margins, quality, availability, marketability and other generallyapplicable trade regulations.
F  The “entities” in fact do not import alcoholic beverages.G No long-term contracts are negotiated by the enterprises concerned.
IV. STATISTICAL INFORMATION
In 1998 the activity of the “entities” was as follows:
While Lithuania imports alcoholic beverages of the kind produced by the “entities”, these do
not in fact themselves import such beverages.
Statistical Information on “Entities” Exports
in 1998
Product description
(HS Code)Total
quantity
exported
(thous.
tons)Export by
the “entities”
(thous. tons)Average
procurement
priceAverage
domestic sales
prices¹
(Llt/liter)Average
export
price²
(Llt/liter)National
production
(thous. tons)
Undenatured ethyl
alcohol of an
alcoholic strength byvolume exceeding22% but less than 80% vol.; spirits,liqueurs and other
spirituous beverages:
22082208.202208.602208.70
2208.9030.8
0.4410.5
-
19.8630.8
0.4410.5
-
19.86-
--
-
-59-76
40-80
30-40
35-4524.46-30.3
5.06-32.3
-
5.68-23.841558.7
44.2
920.6
92
501.9
Data provided by the Ministry of Agriculture and Statistics Department1. average retail offices, including all kinds of taxes;2. ex. “factory” prices, taxes not included.WT/ACC/LTU/35
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Statistical Information on “Entities”
in Domestic Market in 1998
Product description
(HS Code)Domestic
purchases by
“entities”National
production
(thous. tons)Domestic sales
by “entities”
(thous. tons)Consumption³
Undenatured ethylalcohol of analcoholic strength byvolume exceeding
22% but less than 80
% vol.; spirits,liqueurs and otherspirituous beverages:2208- 1558.7 1525 3091.1
Data provided by the Ministry of Agriculture and Statistics Department
3. consumption calculated on the difference between the production plus import and export.
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