RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/LTU/8/Rev.5 
14 February 2000 
 (00-0530) 
Working Party on the  
Accession of Lithuania Original:   English 
 
 
DRAFT REPORT OF THE WORKING PARTY ON 
THE ACCESSION OF LITHUANIA 
TO THE WORLD TRADE ORGANIZATION 
 
Revision  
 
INTRODUCTION 
1. The Government of Lithuani a applied for accession to the General Agreement on Tariffs and 
Trade (GATT 1947) in January 1994.  At its mee ting on 22-23 February 1994, the GATT 1947 Council 
of Representatives establ ished a Working Party to examine the application of the Government of 
Lithuania to accede to the General Agreement un der Article XXXIII of the General Agreement.  
Following the conclusion of the Uruguay Round, Li thuania requeste d accession to the World Trade 
Organization (WTO) under Article XII of the Marrakesh Agreemen t 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 WTO 
Accession Working Party.  The terms of referenc e and the membership of the Working Party are 
reproduced in document WT/ACC/LTU/1/Rev.6. 
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 Lithuani a (L/7551), the questions submitted by Members on the foreign trade 
regime of Lithuania together with the replies theret o and other information provided by the Lithuanian 
authorities (WT/ACC/LTU/2 and Addendum 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/A CC/LTU/16;  WT/ACC/LTU /17;  WT/ACC/LTU/19;  WT/ACC/LTU/22 and 
Revision 1;  WT/ACC/LTU/23;  WT/ACC/LTU/24;  WT/ACC/LTU/26;  WT/ACC/LTU/27;  
WT/ACC/LTU/32;  /ACC/LTU/33;  WT/ACC/LTU/ 35;  WT/ACC/LTU/36, including Revisions 1 WT/ACC/SPEC/LTU/8/Rev.5 
Page 2  
 
 and 2;  WT/ACC/LTU/41;  WT/ACC/ LTU/42;  WT/ACC/LTU/43;  …...), including the legislative texts 
and other documentation listed in Annex I. 
INTRODUCTORY STATEMENTS 
4. In his introductory statement, the representativ e of Lithuania noted that  his country was small 
and heavily dependent on foreign trade.  Since re storation of independence in 1990, the centrally 
planned system in force had been effectively replaced by a market-oriented economy.  Lithuania had 
established a new banking system and its own cu rrency and was proceeding on fundamental economic 
reforms, including the enactment of new legislative measures, privatization, deregulation of prices and 
trade, in close cooperation with international in stitutions.  However, ec onomic transformation could 
only be successful if supported by integration into  the world economy and the international trading 
system based on the principles of the WTO. 
5. Lithuania's foreign trade patterns had also chan ged significantly since 1990.  The share of trade 
with countries in the Commonwealth of Independent States had declined substantially while trade flows 
with other countries had increased.  Lithuania's ove rall balance of payments was in surplus despite a 
trade deficit.  Lithuania had resist ed protectionism in a period of difficult economic transition.  The 
foreign trade regime would be libe ralized further.  Several trade ag reements had been signed, reducing 
barriers to trade, and other agreem ents were under negotiation.  Accession to the WTO was a matter of 
highest priority as Lithuania sought integration into  the world economy on the basis 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 Wo rking Party welcomed the request from Lithuania 
to accede to the WTO.  Lithuania's integration into the world economy and trade on the basis of 
multilaterally agreed principles and rules was seen as an important element underpinning economic and 
institutional reforms in Lithuania. 
7. The Working Party reviewed the economic polici es and foreign trade regime of Lithuania and 
the possible terms of a draft Protoc ol of Accession to the WTO.  Th e views expressed by members of 
the Working Party on the various aspects of Lithua nia's foreign trade regime, and on the terms and 
conditions of Lithuania's accession to the WTO are summarized below in paragraphs 8 to [180].  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 3 
 
 
 ECONOMIC POLICIES 
Monetary and Fiscal Policy  
8. The representative of Lithuania recalled that  the direction of macro-economic policies during 
1995 to 1997 had been laid down in a Memorandum of State Economic Policy of the Republic of 
Lithuania, a copy of which had been provided to th e Working Party.  More sp ecifically, he explained 
that the tax system consisted of corporate profit tax;  personal income tax;  valu e added tax;  excises;  
social security tax;  taxes on natural resources, oil and gas;  pollution tax;  cu stoms duties;  a tax on fixed 
property;  road tax;  land taxes;  stamp tax (State fees and charges, fo r example, for obtaining licences);  
and other taxes (inheritance tax, consular fees, et c.).  The tax on pollution was meant to encourage 
investment in clean (environmenta lly-friendly) technologies.  The ta x was levied on legal and natural 
persons polluting the environment.  The tax was specif ic and its level was based on the quantity, degree 
of harm and type of pollution.  Taxes on fixed property and the road tax had been introduced in 1995.  
The road tax was levied on enterprise revenue (0-1 per cent) except for banks which paid a percentage 
of the margin earned. 
9. Monetary policy was determin ed in the context of Lithuani a's currency board arrangement, 
implemented by the Bank of Lithuania in accordance with the Law on the Credibil ity of the Litas, which 
had entered into force on 1 April 1994.  Since 1997,  the Bank of Lithuania had followed a monetary 
policy strategy approved by its Board and outlined in  the Monetary Policy Programme for 1997-1999.  
The currency board arrangement whereby the Litas wa s pegged to the U.S. dollar was being continued 
to anchor Lithuania's macroeconomic policies. 
Foreign Exchange and Payments  
10. The representative of Lithuani a informed the Working Party th at his country had recorded a 
steadily rising deficit in its merchandise tr ade of US$324 million in 1994, US$943 million in 1995, 
US$1,204 million in 1996, US$1,784 million in 1997, US$2,083 million in 1998, and US$1,322 million 
in the first nine months of 1999.  Monetary and foreign exchange po licies in Lithuania had been based 
on a currency board arrangement since 1 April 1994.  The national currency - the Litas - was pegged to 
the US Dollar in agreement with the IMF.  Lithuani a's acceptance of the requi rements of Article VIII of 
the Articles of Agreement of the IMF, providing fo r currency convertibility for current international 
transactions, constituted formal co nfirmation of the maintenance of  convertibility of the Litas.  
According to a statement by the Bank of Lithuani a of 13 October 1999, the Lithuanian Government 
intended to modify the currency board arrangem ent by basing it on the Euro, although the precise 
moment for doing so would depend on developments in  the Lithuanian economy.  Lithuania maintained WT/ACC/SPEC/LTU/8/Rev.5 
Page 4  
 
 no restrictions on capital transfers.   Residents could open accounts in  foreign banks and non-residents 
were allowed to keep accounts with commercial banks  in Lithuania.  Current accounts and other types of 
accounts in any currency could be opened  and maintained without restriction. 
Investment Regime
 
11. The representative of Lithuania said that fore ign and domestic investment  was as a rule treated 
equally, except that foreign investment was prohibited in areas related to national security and defence, 
narcotic and poisonous subs tances, and the organizing of lotter ies in accordance with the new Law on 
Investment of 7 July 1999, which had replaced the Law on Foreign Capital Inve stments in the Republic 
of Lithuania.  Further, in June 1996, Parliament  (the Seimas) had approved an amendment to the 
Constitution allowing foreigners to purchase certain ty pes of land (non-agricultural plots required for the 
construction and operation of buildings and facil ities necessary for their direct activity). 
12. Following its replacement by the Law on Invest ment in July 1999, the tax advantages for 
investors foreseen in the previous Law on Foreign Capital Invest ments had been maintained in various 
other tax laws.  Taxation of foreign enterprises woul d continue to be no less favourable than the rules 
applied to domestic natural and legal persons.  L ithuania offered certain tax holidays.  Enterprises 
established between 1 August 1995 and 1 April 1997, with fo reign investment of minimum 
US$2 million were exempt from profit (income) tax for the first three years and subject to a 50 per cent 
tax reduction for the following thr ee years, starting from the day the first profit was achieved.  Domestic 
and foreign small enterprises (number of employees no t exceeding 50 and annual sales of no more than 
1 million Litas) received tax reductions amounting to  50 per cent.  Producers of agricultural products 
were assessed profit tax at the ra te of 10 per cent provided the ag ricultural items accounted for minimum 
60 per cent of total sales of the enterprise.  As from 1 April 1997, Lithuania exempted all profit of 
domestic or foreign enterprises spent on capital inve stments from profit (income) tax.  Foreign investors 
had the right, having paid the taxes, to transfer th e profit, income or dividends belonging to them by 
virtue of ownership to a foreign country without any restrictions.  If an ente rprise was under liquidation 
by its founders, the assets or a por tion thereof corresponding to the amount of foreign investment which, 
on the decision of the shareholders, were due to fore ign investors, could be taken out of the country tax 
free (covering physical and financial assets) upon pa yment 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 in the production process.  Since 1 October 1998, an 
investor investing not less than 200 million Lita s within three years coul d request an investment 
agreement with the Government.  The agreement confirme d that direct taxes stipulated in the tax laws in 
force at the time of investment c ould not be increased for this enterprise for a period of five years from 
the time of the investment.  WT/ACC/SPEC/LTU/8/Rev.5 
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 State Ownership and Privatization  
13. The representative of Lithuania explained th at privatization had initially been implemented 
through investment vouchers which could be used to purchase State property, residential housing, 
agricultural enterprises and repurchas ing of land.  Most of this priv atization, which allowed bids by 
employees and management, had proceeded without fore ign participation.  Marking the second stage of 
the privatization process, a Law on Privatization of State-Owned a nd Municipal Property had entered 
into force in September 1995, providing for privatiz ation through public subscription of shares;  public 
auction;  public tender;  sale through direct negotia tion;  capital lease;  and the creation of a State 
Privatization Agency, which had become the St ate Property Fund on 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 transf ormation into joint-stock companies duri ng the first stage of privatization.  
Assets sold by public auction were privatized in th eir entirety and the State generally did not retain 
ownership in privatized enterpri ses.  The new Law on Privatization of 4 November 1997, which had 
replaced the 1995 Law, sti pulated that foreign and domestic investors would participate in the 
privatization process on an equal basis,  both in the form of direct and por tfolio investments.  Pursuant to 
the 1995 Law, the Government had established a list of  enterprises in agro-pro cessing, agro-services, 
industrial and other sectors to be subject to auctions and tendering.   The list established in 1997 had 
comprised 1,114 enterprises, including enterprises part-privatized at the first stage of pr ivatization, and 
large-scale enterprises previously excluded from privatization such as energy, communications and 
transport services.  As of 1 January 2000, the numb er of enterprises offere d for privatization had 
increased to 3,100 entities. 
14. Privatization in agriculture , including the restoration of land to former owners, had proceeded 
despite certain legal problems (only the State and natural pers ons could own land), uneconomic 
partitioning of land and other main a ssets, and lack of capital for family farming.  The general policy in 
this area was to offer preferenti al bidding terms to agricultural pr oducers.  Farmers had been offered 
favourable terms in the privatization of some pro cessing industries (meat, grain, dairies and sugar 
factories).  In most food processing sectors 90 per cent or more of the a ssets had already be en privatized.  
Regarding privatization in the sugar sector, Lithuani a had four sugar refineries, all of which had been 
transformed into joint-stock companies.  These had been fully privatized in Summer 1998, when a 
private investor purchased the remaining State share in all four companies. 
15. As a result of these various privatization efforts, by 1 January 1999 Lithuania had wholly 
privatized all State-owned farms (not including agricu ltural processing enterpri ses).  By 1 January 2000, 
Lithuania had made significant progress in the priva tization of 218 agro-process ing (meat, milk, grain, 
crop selection, etc.) and agro-service enterprises that had been identified for privatization and expected WT/ACC/SPEC/LTU/8/Rev.5 
Page 6  
 
 to complete the process by the end of 2000.  The 218 enterprises represented the entire share of all State-
owned assets in agro-processing.  The State had ex cluded from the privatizatio n process its stakes in 
(i) 19 experimental farms at research institutions of agricultural science studies;   (ii) 54 teaching farms 
at agriculture schools;  and (iii) ei ght 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 require ments on imports of such products and 
services. 
16. Significant progress had also b een made in privatizing industry
.  During 1991-1995 (the first 
stage of privatization), approximate ly 88 per cent of the industrial (g oods) enterprises, 97 per cent of the 
services enterprises, 86 per cent of the transpor tation enterprises and 82 per cent of the commerce 
enterprises identified for privatization, had been privatized.  Enterprises not privatized or partially 
privatized during the first stage had been included in a new list of enterprises earmarked for privatization 
at the second stage.  During 1996-1999, privatizat ion had been completed for 25 per cent of the 
identified industrial enterprises, 28 per cent of th e transportation enterprises and 36 per cent of the 
commerce enterprises.  The process had been given new impetus by the decision to allow privatization 
in industrial 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 State 
intended to sell shares in joint-stock companies, re tained during the first stage of privatization, to 
qualified bidders.  The Lithuanian Government had built on its success in privatizing small and medium 
sized enterprises to draw up plans for the privatiz ation of 14 large and strategic enterprises in key 
industries and services sect ors (energy, communications, transportati on, etc.).  Privatization was carried 
out on a cash basis and was open to foreign and domes tic investors alike.  In addition, the Government 
had undertaken programmes to privat ize the two remaining State comme rcial banks in Lithuania - the 
Lithuanian Savings Bank and the Lit huanian Agriculture Bank.  These currently State-owned enterprises 
and banks represented the bulk of the remaining capita l to be transferred to private ownership.  The 
process of privatizing large State enterprises, includ ing banks, was expected to continue for some time.  
The largest privatization contract in the Baltic States had been concluded on 7 July 1998 with the 
purchase of 60 per cent of "Lietuvas Telekomas" (Lithuanian Telecom) by Amber Teleholdings, a 
consortium owned by Telia (Sweden) and Sonera (Finland).  The most important privatization 
agreement had been concluded on 29 October 1999, wh en the U.S. company "Williams International" 
had bought 33 per cent of the shar es of the State-owned oil refine ry, joint stock company "Mazeikiu 
Nafta".  A hotel ("Lietuva"), a sea cargo company ("Klaipedos Smelte"), a ship repair yard ("Vakaru laivu remontas"), a Lithuanian shipping company ("Kl aipedos juru kroviniu kompanija"), an insurance 
company ("Lietuvos draudimas"), and the joint stoc k company "Lietuvos kuras" (Lithuanian Fuel) had 
also been privatized, and other enterprises were in the process of privatization.  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 7 
 
 
 17. A Law of 28 December 1994 provided a list of St ate enterprises not to be privatized until the 
year 2000.  The original list had been reexamined , and the authorities had decided to proceed on the 
basis of a more specific sub-division of these ente rprises, hence the list had been broken down into 960 
entities active in areas such as recreation, transpor tation, pharmacies and postal services.  The list had 
subsequently been reduced under an amendment to this Law on 3 April 1997, and currently comprised 
59 entities, including large-scale entities such as Lithuanian Post, railways and their infrastructure, 
pipelines, electricity transmission lines, sea ports, et c.  The Government would review the need for 
further privatization in 2000.  Another 95 enterprise s, such as the State Nuclear Power Plant, were 
currently not included in the privatization plans. 
18. Some members requested Lithuania to provide  a table or chart indicating the status of 
privatization, by size and/or type of firm, addressing all en terprises still wholly or partly owned by the 
State, information on how many Stat e-owned firms existed prior to pr ivatization, how many had been 
fully privatized,  a list of enterprises and sectors sti ll wholly or partly owned by the State, the portion of 
equity still owned by the State, the portion of out put and trade represented by private firms, how many 
firms had been prepared for privatization and for which privatization was pending, and how many were 
not at this time contemplated as part of the privatization programme.  Lithuania should also define the 
conditions whereby it would consider its privatizatio n programme completed and when it expected to 
accomplish this.  The representative of Lithuania su bmitted information on the privatization process in 
Lithuania (1991 - 31 July 1997), circulated in docu ment WT/ACC/LTU/17 of 26 September 1997.  Of 
the approximately 8,065 enterprises ow ned by the State prior to privatiz ation, 5,714 entities valued at 
3.2 billion litas had been privati zed during the first stage of priv atization (1991-1995).  Entities not 
100 per cent privatized during the first stage had been included in the second stag e of privatization.  The 
second stage (January 1996 – Decembe r 2000) had thus far covered the privatization of 1,364 entities 
worth some 3 billion litas.  Detailed information on  privatization of State and municipal assets and 
agricultural enterprises is presented in Table 1(a)-(c). 
19. The representative of Lithuania said that Lithua nia agreed to continue to provide information on 
an annual basis on developm ents in its programme of privatization afte r accession along th e lines of that 
provided to the Working Party during the accession un til the end of the privatization process.  The 
Working Party took note of this commitment. 
Pricing Policies  
20. Some members of the Working Party noted that  certain goods and services remained subject to 
price controls and requested details and plans regard ing further deregulation of  prices.  Lithuania was 
asked to list the products subject to  price controls and to provide info rmation on the legal basis for these WT/ACC/SPEC/LTU/8/Rev.5 
Page 8  
 
 controls, the reasons for these controls and the condi tions under which such or extended controls might 
be applied in the future. 
21. The representative of Lithuani a 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 margins were 
no longer limited at the processor or retail level.  He provided an updated list of goods and services 
subject to price control, reproduced  in Table 2.  He did not believe that the number of goods and 
services subject to price contro ls would increase in the future.  Further price liberalization in 
transportation and telecommunications would be linked to increasing competition resulting from 
economic restructuring and privatization.  He conf irmed that Lithuanian i ndustries did not receive 
electricity and gas at subsidized prices, but price c ontrols would remain on residential use of electricity, 
natural gas and heating to support low-income house holds.  He said that th e price control on State-
owned land was connected with the re storation of private land ownership as part of agricultural reform.  
He further stated that price cont rol on State-owned land would be a bolished after the restoration of 
private land ownership in the course of the impl ementation of agricultural  reform.  Upright wood 
(HS 0602.99.41) from State-owned fore sts was subject to mi nimum, not maximum, prices.  Wood from 
private-owned forests was not under State price regulation.  He conf irmed that the Government would 
revise those price controls .  He confirmed that prices of goods an d services in every sector, with the 
exceptions listed in Table 2, were determined freely by market forc es.  The list of goods and services 
subject to price controls set by the State and any chan ges to this list would be published in the Official 
Gazette, and price controls set by municipalities would be publis hed in the local mass media. 
22. The representative of Lithua nia confirmed that his Govern ment would apply the minimum 
prices and price controls on products  and services contained in Table 2 [,and any that are introduced or 
re-introduced in the future,] in a WTO consistent fashion, and take ac count of the interests of exporting 
WTO Members as provided for in Article III.9 of the GA TT 1994.  Lithuania also will publish the list of 
goods and services subj ect to State price controls in the Offici al Gazette including any changes from the 
list in Table 2.  The Working Party took note of this commitment. 
Competition Policy
 
23. The representative of Lithuania said that a new Law on Competition had been adopted by 
Parliament on 23 March 1999.  The new Law, wh ich had replaced the 19 92 Law on Competition, 
improved the control of restrictions of competition in Lithuania.  Supervised by the State Competition and Consumer Protection Office, the Law was applie d to all enterprises irrespective of ownership or 
kind of economic activity across the entire territory  of Lithuania.  The Law regulated practices 
restricting competition or involving unfair competition.  The exemption from the Law on Competition  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 9 
 
 
 in favour of the union of sugar producers had been  eliminated in accordance with the Law on the 
Amendment and Supplement to the Law on Sugar of 8 July 1999.  He added that the Government had 
approved Resolution No.137 of 18 February 1997  (amendment of 30 April 1999) concerning the 
"State Aid Monitoring Order", which sought to prev ent distortions to competition being created by 
State aid provided to individual operators in the market. 
24. The State Competition and Consumer Protection Office had investigated 48 cases of abuse of 
dominant position between 1992 and July 1999.  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 
(the decision-making body of the Office) had 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 six enterprises were ob liged to notify price changes in advance to the 
State Competition and Consumer Protection Office.  The list of dominant enterprises had been 
discontinued.  Abuse of dominant position would hencefor th be investigated on a case-by-case basis.  In 
1997, 44 cases of presumed violation (abuse of do minant position, merger s, unfair co mpetition, 
prohibited agreements) of the La w on Competition had been investigated, and the Competition Council 
had adopted the appropriat e decisions.  Fines had been imposed in 36 cases.  By January 1999, 107 
investigations had been carried out on the basis of co mplaints or at the Council's own initiative.  During 
1998, the Council had taken 19 decisions, and fined 23 economic entities.  In 1999, 80 investigations 
had been carried out, 14 decisions had been taken, and 3 enterprises had been fined. 
FRAMEWORK FOR MAKING AND ENFORCING POLICIES 25. 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 consid ered and enacted amendments to the Constitution, 
enacted laws, considered the pr ogramme of the Government, approved the State budget, established 
State taxes and other obligatory payments, ratified in ternational treaties, and considered other domestic 
and foreign policy issues.  The President of the Republic was the Head of State.  The President 
represented the State of Lithuania and performed th e duties laid down by the Constitution and the laws, 
including the passage of Presidential Decrees.  The Government was the highest authority of executive 
power.  The Government was led by the Prime Mini ster and currently consis ted of 14 Ministries.  
Discharging the duties prescribed by the Constituti on and other laws, the Government was bound in its 
activities by the Constitution, laws and other legal acts adopted by the Seimas, including international 
treaties and Agreements, or decrees of the President.   The Government implemented these legal acts in 
the form of resolutions.  Each resolution of th e Government was an act incorporating concrete WT/ACC/SPEC/LTU/8/Rev.5 
Page 10  
 
 implementation measures.  Thus, le gal acts of the Government did not require further approval by 
Parliament.  In exceptional circ umstances requiring immediate decisi on, the Government could pass a 
temporary measure (resoluti on) while Parliament's adop tion of a law was pending. 
26. The hierarchy of legislative acts in Lithuani a comprised the Constitution, Constitutional Law, 
International Treaties and Agreemen ts, Laws and other legal acts adopt ed by Parliament, decrees of the 
President, Government Resolutions, and other lega l acts of governmental bodies.  The Law on Order of 
Publishing and Entry into Force of Legal Acts of 6 April 1993 and its amendment of 18 May 1999 had 
established the order of entry into force of legal acts  in Lithuania.  Having been  published in the Official 
Gazette, legal acts entered into force on the following day, or on a later date stipulated in the published legal act.  The judicial system in Lithuania comp rised the Constitutional Court, the Supreme Court, the 
Appeals Court, the County Court an d District (city) Courts, and the system of administrative courts 
described in pa ragraph [27]. 
27. 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.  On 14 January 1999, 
Parliament had passed the Law on Administrative Pro cedure.  The Law, which had entered into force 
on 1 May 1999, set out the legal procedure for admini strative cases.  The objective of the Law was to 
establish how administrative cases of conflicts, deri ving from relations governed by administrative 
law, would be examined.  The Law established a sy stem of three-stage administrative courts.  In 
general, the administrative court had competence to  act as an arbiter in disputes involving public 
administration and natural or legal persons, includ ing decisions or actions of State or local self-
government administration going beyond their competence or specifically infringing laws or supplementary legal documents.  The Law was th e principal law determining legal procedures for 
administrative cases, including the procedure for traders to refer measures affecting international trade to an independent judicial body.  Issues not regulated by the Law were covered by the Code of Civil 
Procedures.  In his view, Lithuania's mechanism complied fully with the requirements of GATT 
Article X:3(b) and GATS Article VI:2. 
28. 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, to 
levy taxes on excavation sites, traf fic access, parking, street vendors,  visual commercial advertisements, 
etc.  However, municipalities were not entitled to ta x items subject to taxation at the national level.  
Local authorities thus could not apply duties on imported goods.  The representative of Lithuania 
confirmed that sub-ce ntral administrative authoriti es, e.g. local administrative bodies, had no jurisdiction 
or authority to establish regulations or taxes on goods and services in Lithuania independent of the  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 11 
 
 
 central authorities, and that application of these me asures was exclusively the responsibility of the 
executive and legislative branches of the central Government. 
29. The representative of Lithuania stated that, fro m the date of accession, Lithuania would ensure 
observance of the provisions of WTO by its local au thorities, including Article XXIV:12 of the GATT 
1994 and the Understanding on the Interpretation of Ar ticle XXIV:12 and Article I:3(a) of GATS.  The 
Working Party took note of this commitment. 
POLICIES AFFECTING TRADE IN GOODS 
Trading Rights  
30. Some members of the Working Party noted that  laws and regulations relating to the right to 
trade in goods (also sometimes referred to as "regis tration requirements" or "activity licensing") should 
not restrict imports of goods in violation of the ge neral prohibition on quantita tive restrictions in GATT 
Article XI:1, nor should they discriminate against im ported goods in violation of the non-discrimination 
provisions of GATT Article I II:4.  Furthermore, fees and charges le vied 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 not lead to discrimination in favour of  like domestic products 
(Article III:2). 
31. In order to establish whether these GATT pr ovisions 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) the conditions 
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 and charges on these activities, in 
particular when these distinguished between im ported products and products of national origin.  
Lithuania was also asked to provide  information on how it would bring its policies into line with GATT 
requirements whenever this was necessary and, in particular, how it would modify its stamp taxes to 
conform to relevant GATT rules. 
32. The representative of Lithuani a replied that certain activities were subject to licensing in 
accordance with the Law on Amendments and Supplements of the Law on Enterprises of 
25 September 1997.  Table 3.1 listed goods-related busine ss activities subject to li censing in Lithuania.  
He confirmed that Lithuania maintain ed the same criteria and procedur es for reviewing applications for 
licences to engage in trade or production of goods, wh ether the applicants intended to deal in domestic 
or imported goods, or a combination thereof, except as  noted in paragraph [35] below.  The number of 
economic activities requiring licence had been signi ficantly reduced under a new amendment of the Law WT/ACC/SPEC/LTU/8/Rev.5 
Page 12  
 
 on Enterprises, and he expected further reductions in  the number of licensed activities in the future.  
Licensing of commercial activity,  including importation, was currently  applied to products containing 
alcohol; tobacco and tobacco product s;  oil products;  narcotics and poisonous substances;  and 
ammunition, weapons and pyrotec hnics (updated information on lice nsing 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 prin ting of money, postage stamps and coins  - could 
only be undertaken by enterprises owned by the St ate or municipalities, or special enterprises. 
33. Concerning the activity licensing of production and trade in alcoholic beverages, he said that the 
State Tobacco and Alcohol Control Agency issued separate activity licences for wholesale trade in alcoholic beverages produced in Lithuania, and for importation and production of alcoholic beverages.  
The Agency issued licences for importation and whol esale trade in alcoholic beverages while retail 
traders obtained authorization from municipal auth orities.  He stressed that domestically-produced 
alcohol was subject to the same rest rictions and regulations as imported  products.  In all, about 12,000 
import, wholesale and retail licences had been issued during 1995, about 11,000 licences in 1996, 
10,500 in 1997, 10,200 licences in 1998, and some 10,600 in 1999. 
34. The activity licensing for importa tion of alcoholic beverages had be en changed.  Parliament had 
approved the Law on Amendment and Supplement to  the Law on Alcohol Control on 8 April 1997.  
One of the purposes of the new Law was to harm onize the existing Law on Alcohol Control with the 
provisions of the WTO.  The new Law did not rest rict the number of activity licences to import 
alcoholic beverages and did not require importers to limit their ch oice of imports to foreign companies 
included in the bulletins of the Association of Manufa cturers of Alcoholic Bevera ges.  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 domestic trade.  Activity licen ces for importation of alcoholic 
beverages were accordingly now gran ted to all applicants against paym ent of the stamp tax provided the 
companies were registered in Lithuania, followed the regular procedures for obtaining a licence, and 
submitted all documentation require d under Lithuanian law.  The conditions for new entrants had 
improved as no credit was given for prior experience as an  importer.  In addition, the licences to engage 
in importation, production, and wholes ale and retail trade of alcohol - pr eviously valid for one year only 
- were now of unlimited duration.  Interested enterprises were required to renew their registration once a 
year, but this was effected wit hout any additional documentation. 
35. The representative of Lithuania added that activity licences and licences for importation and 
transit were granted automatically and on a non-disc riminatory basis,  except in the following cases:  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 13 
 
 
 (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 transit c ould be rejected or subjec t to limitations regarding 
activities related to strategic goods - production and importation was strictly controlled for 
reasons of national security (according to COCOM requirements - see paragraph [65] 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. 
36. The representative of Lithuania said that the Government levied a stamp tax on a number of 
services provided by its institutions (described  in the Section "Fees and Charges for Services 
Rendered").  The Government also levied stamp taxes for the issuance  of activity licences.  The annual 
stamp taxes for activity licences on alcohol and alcoho lic beverages, tobacco and petroleum products are 
listed in Table 4.  Ta x rates had been establ ished in accordance with Resolution No. 1123 of 
11 November 1994, and were indexed to  the rate of inflation.  The ta x was related or limited to the 
approximate cost of the services re ndered and differed according to the nature of the licensed activity, 
bearing in mind that activity licences to import alc oholic beverages and petrol eum products would also 
cover wholesale of the products, and that importati on/wholesale licences also included a larger number 
of products than wholesale licence s for domestically-produced goods only.  Stamp taxes for activity 
licensing related to importation and wholesale included an important fiscal element, and were also 
important to encourage responsible importers and wholesaler s who would be prepared to follow customs 
and tax procedures, and pay the re quired tariffs and taxes.  When granting the activity licence the 
Government would specify the type of beverage to be imported by a particular  enterprise, i.e. vodka, 
vodka and other spirits, wine, etc ., but not the value or volume. 
37. A member welcomed the reduction of activity licensing as a method of regulation and revenue, 
but was concerned that licences such as those to import alcohol and petroleum were being granted only 
with a tax which did not apply to domestic producers or distributors.  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 appl ied in full.  The licensing fees on trade in oil 
products were possibly a disguised tax on the importation of refined petroleum products.  He remained 
concerned that the fees applied for certain import ac tivity, e.g. in the areas of alcoholic beverages, 
tobacco products, and petroleum produc ts were a disguised tax on that tr ade.  Lithuania would need to 
change its system if it amounted to a tax on importation. WT/ACC/SPEC/LTU/8/Rev.5 
Page 14  
 
 38. The representative of Lithuania replied that the system had been changed through Government 
Resolution No. 774 of June 1998 (as amended by Re solution No. 601 of 18 May 1999).  He confirmed 
that the new system would be in full compliance wi th WTO rules.  The new equalized stamp taxes for 
engaging in importation and trade in alcoholic beve rages would be applied fr om 1 April 2000.  Under 
the new order, an activity licence, valid for one ye ar, to import and engage in wholesale of imported 
vodka and other spirits would cost 100,000 litas (US$25,000);  for wine and beer - 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 ac tivity licences to engage in wholes ale trade of alcohol produced in 
Lithuania (see Table 4 for a full li st of these stamp taxes).  An ac tivity licence to import alcoholic 
beverages would also cover wholesal e of the products.  The importation/wholesale licence also included 
a larger number of beverage brands (about 1,000) than a wholesale licence for domestically-produced 
beverages (some 100-150 products).  The licence fee for importation of tobacco products - Llt. 15,000 
per year - was equal to the corr esponding fee for wholesale trade in tobacco products according to 
Government Resolution No. 180 of 13 February 1998.  Stamp taxes for activity licence in 
importation/wholesale and wholesal e of oil and oil products would be equalized through a Government 
Resolution [expected to be approved in February/March 2000]. 
39. The representative of Lithuani a confirmed that the former St ate monopoly in foreign trade had 
been abolished and that no restrictions existed on  the right of foreign and domestic individuals and 
enterprises registered in Lithua nia to import and export goods within  Lithuania's customs territory, 
except as provided in paragraph [35].  He confirme d that individuals and firm s were not restricted in 
their ability to import and export based on their regi stered scope of business, and the criteria for 
registration were generally applicable and published in the Official Gazette. 
40. The representative of Lithua nia 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 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. 
Market Access Negotiations
 
41. Lithuania engaged in market access negot iations on goods with interested Members.  
Lithuania's Schedule of Concessions and Commit ments on Goods is annexed to the Protocol of 
Accession of Lithuania which is reprodu ced in the Appendix to this Report.  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 15 
 
 
 A. IMPORT REGULATION 
Customs Code  
42. The representative of Lithua nia said that the Seimas had approved a Customs Code on 
18 April 1996, replacing the Law on Customs of 29 Ap ril 1993 and certain provisions of the Law on 
Customs Tariff and other legislation.  The Customs Co de had entered into force on 1 January 1998.  The 
Customs Code was based on the provisions of th e Community Customs Code (Council Regulation 
92/2913/EEC and its amendments), defining the respons ibilities of government institutions involved in 
the administration of customs and providing the fr amework for importation, exportation and goods in 
transit.  The implementing provisions of the Code were fully based on the Im plementing Provisions of 
the Community Customs Code (Commission Regulation 93/2454/EEC and its amendments).  Among the most important provisions we re the Temporary and New Orders of Customs Valuation of Goods 
(described in the section "Customs Valuation"), and the Order of Dete rmination of Origin of Goods and 
on Certificates of Origin. 
[43. 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 require ments for implementation would be in place by that date.  The 
Working Party took note of this commitment.] 
Ordinary Customs Duties
 
44. The representative of Lithua nia confirmed that the Convention on the Harmonized System had 
entered into force in Lithuania on 1 January 1995.  Th e structure of customs tari ffs was regulated by the 
new Law on Customs Tariffs, whic h had entered into force on 1 July  1998.  Tariff rates could be 
changed by government decision based on proposals by Ministries, taking account of Lithuania's 
international obligations and commitments.  Tariffs had accordingly been reduced on major food products (milk and dairy products, butter, eggs, sausages and sugar) in Se ptember 1995.  In accordance 
with Government resolution No. 1245 of 20 Oc tober 1998, customs duties had been increased 
temporarily on some agricultural and food products (meat,  milk, sugar, grain and grain products), 
effective 1 November 1998.  The increase in duty rates was based on Government Resolution No. 1122 
of 17 September 1998 "On pr ovisional measures for the facilita tion of export of Lithuanian goods, 
protection of domestic market, st rengthening the position of Lithuani a", which had been approved in 
response to the financial crisis in Russia.  [According to Lithuania,  the current applied tariffs do not 
exceed the bound levels proposed by Lithuania in the context of its market ac cess negotiations.  The 
applied customs tariff, with amendments, is bei ng provided to Working Party members on a regular WT/ACC/SPEC/LTU/8/Rev.5 
Page 16  
 
 basis].  Goods were subject to the autonomous rate of duty, except for imports originating in countries 
enjoying most-favoured-nation status in Lithuania whic h were subject to conven tional import duties, and 
goods imported under free trade agreements. 
45. Applied tariff rates were ad valorem  except for specific (mixed) duties on alcohol, tobacco, raw 
sugar and fertilizers.  The specif ic elements of mixed duties on m eat and dairy products had been 
eliminated in February 1995. 
Other Duties and Charges
 
46. The representative of Lithuania confirmed that  Lithuania did not apply duties and charges on 
imports other than ordinary customs duties.  Any su ch charges applied to impo rts after accession would 
be in accordance with WTO provisi ons.  He further confirmed that Lithuania would not list any other 
charges in its goods schedule under Article II:1(b) of the GATT 1994, binding such charges at "zero". 
Tariff Rate Quotas, Tariff Exemptions  
47. Some members noted that Lithuania had used tariff quotas to provide for temporary import 
relief for goods in short supply.  Lithuania was as ked to specify the goods subject to tariff quotas and to 
explain the operation of the quota sy stem.  Lithuania should also provide  a justification for the system, 
some information on the portion of imported products affected, and outline plans for the disposition of 
the system after Lithuania's accession to the WTO. 
48. The representative of Lithuania replied that general tariff quotas could be opened for any 
product considered to be in short supply.  Tariff quotas had been opened under Government 
Resolution No. 653 (8 May 1995), implementing the Law on State Regulation of Economic Relations 
in Agriculture (22 December 1994), but the list of products subject to general tariff-rate quotas had 
been abolished by Government Resolution No. 793 of  30 June 1998.  He confirmed that imports from 
all countries were afforded the same access under the general tariff-rate quotas. 
49. In general, tariff rate quotas allowed imports at zero (or reduce d) tariffs.  Tariff rate quotas 
could be granted only when domestic production of  a certain commodity or product, combined with 
imports at the MFN tariff rate, would be insuffic ient to satisfy domestic  demand or when certain 
commodities or products were not produced in Lithuani a.  If such a shortage was deemed imminent in 
Lithuania, the tariff quota amount w ould be determined and a public tender announced in the Official 
Gazette.  Enterprises/impor ters requesting quotas or pa rticipation in tenders su bmitted application forms 
to the responsible Ministry.  In most cases, tari ff rate quotas for the main agricultural products and 
foodstuffs were auctioned to the highest bidder, and tariff quotas for some products (such as pure- WT/ACC/SPEC/LTU/8/Rev.5 
 Page 17 
 
 
 breeding animals and poultry, semen,  boars, etc.) were provided to a pplicants without restrictions.  
Tariff rate quotas could also be di stributed proportionally to the quantitie s requested to all applicants if 
all met the requirement s of the tender.  The same system applie d to industrial products, but it had not yet 
been used.  
50. The representative of Lithuania said that the Mi nistry of Agriculture au thorized imports of non-
bottled alcoholic beverages and raw materials for al coholic beverages under general tariff-rate quotas 
(30 per cent reduction of the tariff  rate) opened in accordance with  Government Resolution No. 672 of 
27 May 1999.  Permission was granted automatically upon presentation of an application and a sales 
contract, but only to companies holding activity licen ces for the production of alcoholic beverages, i.e. 
to the authorized producers (not n ecessarily "State enterprises") which had obtained licences from the 
State Tobacco and Alcohol Control Agency to import  alcohol and produce alcoholic beverages.  Their 
number was not limited, and new entrants could ob tain an activity licence against payment of the 
corresponding fee.  Enterprises not licensed for th e production of alcoholic beverages could import such 
raw materials at the MFN rate of duty.  The system had been introduced to fight illegal production of 
counterfeit alcoholic products.   Tariff quotas for imports of ethyl alcohol for technical uses were granted 
automatically to companies substantiating their needs. 
51. A member requested the disposal, prior to acce ssion, of Lithuania's requirement to use domestic 
sugar prior to allowing imports.  In reply, the representative of Lithuania said that Lithuania had abolished the requirement to use domestic sugar pr ior to allowing imports.  The Law on Sugar (with 
recently adopted amendments) regulated the sugar mark et in Lithuania.  The Law defined measures to 
regulate the internal sugar market such as purch ase quotas and minimum purchase prices for local raw 
sugar purchased under these quotas, and State control of sugar quality and certification.  In response 
to requests from WTO Members, Lithuania had decided to eliminate arrangements whereby sugar processors’ imports of sugar under tariff quota had been made conditional on the purchase of specific 
quantities of domestically-produced beet sugar, th e exemption from the Law on Competition for the 
union of sugar producers, minimum import prices, and import quotas.  These measures had been terminated through the "Amendment and Supplement to the Law on Sugar" approved by Parliament 
on 8 July 1999.  He added that his Government dete rmined the order and conditions for application of 
measures defined under the Law on Sugar.  Current measures regulating the sugar market were import 
duty, excise duty (on sugar and products cont aining more than 20 per cent sugar, since 
1 November 1998), automatic import licensing, and minimum import prices (to be abolished on 
1 April 2000).  Moreover, his Government determ ined an annual production quota for white sugar 
used by sugar refineries, and minimum purchase pr ices for sugar produced from beet purchased under 
these quotas. WT/ACC/SPEC/LTU/8/Rev.5 
Page 18  
 
 52. The representative of Lithuania said that from the date of accession any application of [general] 
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
 
53. The representative of Lithua nia 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 and No. 640 of 
23 June 1997, stamp taxes (i.e. State f ees and charges) were levied for th e issuance of official documents 
(such as licences) as well as for the provision of certain services by government institutions, including 
customs clearance operations.  Stamp taxes were collected by the institu tions responsible for issuing the 
appropriate documents.  The State Tax Inspectorate of the Ministry of Finance controlled how these 
institutions collected the Stamp Taxes.  He stated that the Stamp Tax was set at different rates depending 
on the nature of the product and the type of servi ce provided.  Customs services fees amounted to 10-
110 Litas for the registration of goods and 25 Litas fo r the issuance of documen ts, including certificates 
of origin.  The stamp taxes applicable for the proc essing of imports by customs and for other purposes 
related to trade are enumerated in Table 5.  He stated that these fees and charges were related or limited 
to the approximate cost of the services render ed.  Additional customs fees were assessed for 
supplementary services such as cu stoms formalities perform ed outside the Customs office or outside its 
normal business hours, for the suppl y of non-confidential information from 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 part icular whether formaliza tion of export or import 
documents was required at consulates  prior to shipment, he also provi ded information on consular fees, 
underlining that these fees were  not related to importation, exportation or transit issues. 
[54. A member asked whether the list of stamp ta xes in Table 5 was comprehensive, and noted that 
while these fees were not large, they did not seem re lated to any service other than generating revenue.  
This member reserved on this i ssue until Lithuania had clarified wh y 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 st amp taxes provided in Table 5 covered the fees and 
charges for services rendered relating to importation and exportation, and the li st was comprehensive.  
The stamp tax fees covered the cost, and no more, of supplying the indicated services.] 
55. The representative of Lithuania said that Lithuania would ensure that any fees and charges for 
services rendered introduced in the future would on ly 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 connect ion with importation or exportation would be in  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 19 
 
 
 accordance with the relevant provi sions of the WTO Agreements, in pa rticular Articles VIII and X of 
GATT 1994.  The Working Party t ook note of this commitment. 
Application of Intern al Taxes to Imports  
56. Some members of the Working Party asked L ithuania to enumerate th e products subject to 
excise taxes , comment on the use of specific rates and c onfirm whether imported and domestic products 
were treated equally.  In reply, the representative of Lithuania provided the information on product-
specific excise taxes reprodu ced in Table 6.  Rates were ad valorem , in some cases specific minima had 
been established (in Litas per unit).  Lithuani a had no plans to convert specific amounts into ad valorem  
rates since large price differentials existed be tween domestic and importe d goods.  On domestic 
products, excise taxes were levied on the selling price exclusive of VA T;  the tax base for imports was 
the customs value inclusive of customs duties. 
57. Some members noted that excise taxes on beer  and wine were differen tiated and that imported 
cigarettes attracted the highest excise tax rate, wh ile taxes on domestically-produced cigarettes were 
differentiated according to quality.  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 "H ouse of Prince Lietuva" [Table 6, 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. 
58. The representative of Lithuania replied that excise taxes had been differentiated (based on 
quality) for cigarettes and certain domestically-produced and imported wine and beer until April 1998.  
Lithuania had taken concrete steps to  bring its excise taxes into confor mity with GATT Article III, as 
follows:  Imported wine was no longer taxed at differentiated rates, and differentiated excise taxes had been abolished for both imported and domestically -produced filter-tipped cigarettes according to 
Government Resolution No. 393 of 3 April 1998.  Addressi ng the specific points, he said that (i) a lower 
rate of excise tax was applied to  small producers of beer.  As from 1 January 2000 and in accordance 
with the Amendment to the Law on Excise Taxes of 23 December 1999, a partial exemption of excise 
tax (i.e. a 50 per cent reduction) was granted for th e first 100,000 dekalitres of beer produced by small 
producers with annual production of less than 800,000 deka litres.  The lower tax ra te was also applicable 
to foreign small producers of beer.  He considered this  measure fully consistent with GATT Article III;  
(ii) "Philip Morris Lietuva" was at present the onl y importer of tobacco (HS 2403.10.90.1.) for the 
production of cigarettes.  The "House of Prince Li etuva" did not produce cigarettes and therefore did 
not benefit from the exemption.  However, accord ing to the Law any new entrant would benefit from WT/ACC/SPEC/LTU/8/Rev.5 
Page 20  
 
 the same exemption for the importation of tobacco to  be used for the production of cigarettes which, 
in his view, justified such differential treatment of tobacco;  (iii) excise tax was not levied on 
enterprises transporting passengers or cargo in interna tional air traffic, and imported and domestically 
produced jet fuel (HS code 2710.00.51.0) recei ved equal treatment in accordance with the 
Amendment to the Law on Excise Taxes No. VIII-982 of 21 December 1998.  The list of tax exempt enterprises (at present the joint-stock companies "Lie tuvos avialinijos" and "Lietuva") was determined 
by the Government, and the tax exem ption was considered a subsidy to the service supplier;  and (iv) 
the excise tax exemption for beverages (HS code 2206.00.89.0) produced by "Lietuviskas midus" had 
been eliminated in accordance with Government  Resolution No.1515 of 30 December 1998 and the 
Amendment to the Law on Excise Taxes No.VIII-982 of 21 December 1998.  Concerning the excise 
tax differentiation between mead a nd other distilled spirits, he stressed that products under HS Code 
2208.90.69.1 included mead of foreign origin, and L ithuania's treatment was th erefore, in his view, 
consistent with GATT Article III. 
59. The representative of Lithuania added that s ugar and products containing more than 20 percent 
sugar had become subject to excise as from 1 N ovember 1998.  Revenue from this excise tax was 
earmarked for farmers growing sugar beet.  Purcha se prices for domestically-grown sugar beet had 
been reduced to world market levels (i.e. the pr ice did not exceed US$300 per ton), and to compensate 
farmers for the income loss, exci se tax had been introduced on suga r and sugar containing products at 
the rate of Llt 1 per kg sugar.  The tax was levi ed on domestically-produced and imported products.  
The list of sugar containing products (included in Table 6), and their basic sugar content, had been 
approved by the Ministry of Agriculture.  The reve nue collected from the excise was accumulated in a 
special account for farmers' compensation;  subsid ies for sugar processors were not foreseen.  There 
were no exemptions from excise tax for any supplier of sugar.  VAT and exci se tax on exported sugar 
and sugar containing products we re refunded upon exportation. 
60. Some members of the Working Party aske d about the application of value added tax
 in 
Lithuania, including the basis for taxation of importe d products.  A member asked for a clarification on 
the treatment of im ported like-products in the light of Arti cle III of the GATT 1994, noting that 
Lithuania had applied a reduced ra te of VAT to some agricultural products of domestic origin.  
61. The representative of Lithuani a said that value added tax of 18 per cent was charged on goods 
and services.  Goods imported into bonded warehouses and all exports we re zero rated, and a number of 
goods and services were exempt from VAT (Table 7) .  Provisions regarding VAT  had been changed in 
1995 and 1996;  a temporary rate of  9 per cent and exemptions from  VAT for some products had been 
applied until 1 January 1997.  Since that date, both domestic and imported product s had been subject to  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 21 
 
 
 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. 
62. The representative of Lithuania stated that, from the date of accession, Lithuania would apply 
its domestic taxes on products, including those listed  in paragraphs [58 to 61 and] Tables 6 and 7 in 
strict compliance with Article III of the GATT 1994, in a non-discriminatory manner to imports 
regardless of country of origin and to domestica lly-produced goods.  The Working Party took note of 
this commitment. 
Quantitative Import Restrictions, including Pr ohibitions, Quotas and Licensing Systems  
63. A member sought an undertaking from Lithua nia that any quantitative import restrictions 
inconsistent with Article XI of the GATT 1994 would be eliminated on accessi on.  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.  Lithuani a was accordingly asked how it  
intended to address this issue. 
64. The representative of Lithuania stated that Lithuania did not maintain import prohibitions other 
than a ban on the import of snuff and chewing to bacco (HS 2403.99.10.0), whic h was administered in 
conjunction with a ban on domest ic production of the same products  which would be justified under 
Article XX(b) of the GATT 1994.  A ban on the impor tation of mead and other beverages with alcohol 
content of more than 50 per cent had been abolished in accordance with the Law on Amendments and 
Supplements on Alcohol Control of 10 December 1998.  Lithuania did not  maintain any import quotas.  
The Law on Alcohol Control author ized the introduction of producti on and import quotas for certain 
alcohol products should the number of patients suffering from alcoholic psychosis exceed levels 
established by the Ministry of He alth.  However, these provisions had not been applied thus far. 
65. Information on import licensing procedures ac cording to the format applicable to WTO 
Members was provided to the Working Part y in documents WT/A CC/LTU/7/Add.1 and 
WT/ACC/LTU/19 (the section "Tra ding 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 restrictions 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); WT/ACC/SPEC/LTU/8/Rev.5 
Page 22  
 
 - dual use goods (civil and military), means of de fence, chemical and bi ological materials which 
can be used in the production of chemical and ba cteriological weapons of  mass destruction;  
nuclear missiles, equipment a nd technologies;  and goods and technologies used in the 
production of missiles - ju stified under Article XXI; 
- dangerous goods (United Na tions list of goods - ju stified under Ar ticle XXI); 
- used tyres (HS 4012.20.90) and electric fishi ng tackle (HS 8543.80.80.0) - justified under 
Article XX for reasons of enviro nmental protection.  The criter ia for granting permission to 
import used tyres were based on the importer pres enting evidence to the authorities that he had 
contracted the delivery of the equivalent of half the quantity to be imported to a company 
specializing in the processing or u tilization 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 authoriti es to use national resources. 
Common requirements for the issuance of import licences were:  the application;  the certificate of 
enterprise registration;  the statutes of the enterpri se;  a tax inspection certificate confirming all income 
declared and taxes paid;  a certificate from the Customs Office regarding compliance with customs 
obligations;  confirmation of payment of Stamp taxes;  and, in the case  of rental, the lease contract for 
storage or warehouse premises. 
66. The representative of Lithuani a confirmed that Lithuania woul d, from the date of accession, 
eliminate and would not introduce, reintroduce or ap ply quantitative restrictions on imports or other 
non-tariff measures such as [licensing,] quotas, bans, permits, prior authorizati on requirements, licensing 
requirements and other restrictions ha ving equivalent effect that can not be justified under the provisions 
of the WTO Agreement[, including those described in paragraphs [64 and 65].  He added that import 
licences required for importation desc ribed in paragraphs [64 and 65] w ould be granted automatically to 
all who requested them or were ot herwise justifiable under WTO provisions, and would not restrict the 
right to import these products into Lithuania or in an y way discriminate against imported products.]  [He 
added that import licences  required for importation described in  paragraphs [64 and 65] would be 
granted in conformity with WTO provisions.]  He further confirmed that the legal authority of the 
Government of Lithuania to suspend imports or export s 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 re quirements of the WTO, in particular Articles XI, XII, XIII, XIX, 
XX and XXI of the GATT 1994, and the Multilateral Trade Agreements on Agri culture, the Application 
of Sanitary and Phytosanitary Measures, Import Licensing Procedures, Sa feguards and Technical 
Barriers to Trade.  The Working Party took note of these commitments.  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 23 
 
 
 Customs Valuation  
67. Noting a statement by Lithuania that existing le gislation did not yet inco rporate all provisions of 
the GATT 1994 Customs Valuation Agreement, Lithua nia was requested to explain which provisions 
were missing and detail plans for the introduction of th ese provisions.  Some members further noted that 
Government Resolutions No. 751 of 25 June 1996  a nd No. 895 of 7 August 1997 appeared to authorize 
reference prices on imports. 
68. The representative of Lithuania said that provisions governing customs valuation were laid 
down in Chapter 6 of the Customs Code, which had entered into force on 1 January 1998.  
Articles 29-37 of the Code repeated verbatim the key provisions on customs valuation of the GATT 
1994 Agreement, and other elements of th e GATT 1994 Agreement - except some of the 
Interpretative Notes - had been inco rporated in the implementing provisions of the Customs Code laid 
down in the Temporary Order of Customs Valuati on of Goods, adopted by Government Resolution 
No.897 of 11 August 1997.  Articles 29-37 of the Customs Code and its implementing legislation 
contained WTO-conform provisions in several areas which had been missing in previous legislation 
governing customs valuation, including on prohibite d valuation methods, notif ication to importers, 
confidentiality, the valuation of carrier media be aring software for data processing equipment, and 
valuation of interest charges. 
69. The representative of Lithuania confirme d that Government Resolution No. 751 of 
25 June 1996 on "Customs Assessment of Prices  for Imported Goods" (a mended by Government 
Resolution No. 504 of 24 April 1998) had introduced minimum import prices (a mended by Government 
Resolution No. 751 of 22 June 1998) for sugar, grain and products thereof, poultry, forage products, 
leguminous vegetables, oil and products thereof, matches and corruga ted sheets as a transitional measure 
to be abolished on 1 April 2000.  He added that, accor ding to this Resolution, Ministries responsible for 
trade issues had also established a special price list ("price-in-checking" system ), to be reviewed every 
three months, for certain imported goods to fight cust oms fraud.  [Products covered by the system are 
enumerated in Table 8.]  The established orde r of customs valuation was followed for goods not 
included in the special list. 
70. Concern was expresse d about the "price-in-checking" sy stem and Lithuania was asked to 
explain in detail why the system would not cons titute a minimum price scheme.  A minimum import 
price could not be considered a transaction value as  defined in the WTO Customs Valuation Agreement, 
and the process of using "price-in-checking" did not conform to the hierarchy of other valuation 
methods provided for in the Agreement and in Lith uania's new Customs Code.  Lithuania was urged to WT/ACC/SPEC/LTU/8/Rev.5 
Page 24  
 
 use WTO-consistent provisions to as sess valuation of imports;  the "price-in-checking" system should 
not be in place after Lithuania's accession to the WTO. 
71. The representative of Lithuani a explained that prices in the special list were used in the 
assessment of duties and taxes when importers were unable to substa ntiate declarations of a lower 
customs value, or to provide information to a llow the other methods of customs valuation (non-
transaction value) to be used.  The importer was no rmally asked to demonstrate that the value of the 
imported goods approximated the value of identical or  similar goods imported and sold in Lithuania.  
Deductions would be made for expe nses on commissions, and the value would be adjusted for profit and 
general expenses, transportation and insurance costs, import duties a nd taxes, etc.  The information 
necessary to substant iate the declared value of goods or to a llow the other methods of customs valuation 
(non-transaction value) to be used should be provide d within one month after acceptance of the customs 
declaration by the Customs authorities.  The goods in qu estion were nevertheless re leased if the importer 
provided a guarantee covering the amount of duties and ta xes assessed on the basis of prices established 
by the competent ministries.  Article 226 of the Customs Code allowed all decisions taken by the 
customs authorities, including "price-in-checking" deci sions, to be appealed to the Customs Department 
and/or the Court.  The "price-in-checking" system wa s a transitional measure;  its application had been 
extended until 1 April 2000.  In any case, in his view, these checking prices did not constitute a 
minimum price system. 
72. Having reviewed the new Customs Code with respect to customs valuation, a member noted 
that its provisions did not seem to represent full implementation of the WTO Agreement on the 
Implementation of Article VII of the GATT 1994.  Article 29 appear ed to permit customs valuation  
based on measures inconsis tent with the Agreement, the Interpreta tive Notes of the Agreement were not 
fully incorporated, Articles 2 to 6 of the WTO Agre ement were implemented on an incomplete basis, the 
Code contained no legal reference to the provisions of Article 7.3 of th e Agreement (importers' right to a 
written explanation of alternative valuation method s), the wording of Article 33 of the Customs Code 
regarding the dutiability of royalty payments was somewhat broader than the WTO Agreement, Article 35 of the Customs Code did not commit Lithua nia to valuation of software based on the value of 
the media, and the Customs Code contained no legal counterparts to WT O provisions regarding 
confidentiality, right of appeal, and the right to a writ ten explanation. 
73. 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 rules of 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 re strictions, were applied.  Existing implementing 
provisions of the Customs Code, laid down in th e Temporary Order of Customs Valuation of Goods  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 25 
 
 
 (Government Resolution No.897 of 11 August 1997), in corporated the provisions of Articles 2 to 6 of 
the WTO Agreement, which had been missing in Article 31 of the Customs Code, as well as the 
definitions set forth in paragraphs 1 to 3 and in paragraph 5 of Article 15 of  the Agreement, and the 
provisions concerning valuation of software based on the value of the carrier media.  Lithuania had 
accordingly implemented Decision 4.1 of the Cust oms Valuation Committee concerning the valuation 
of carrier media bearing software for data processing equipment. 
74. The Temporary Order of Customs Valuation of  Goods, based on the ap propriate provisions of 
the Code and incorporating most of the above-mentione d provisions (except some of the Interpretative 
Notes), had been adopted by Gove rnment Resolution No. 897 of 11 A ugust 1997.  This Order was based 
on the Implementing Provisions of the Commun ity Customs Code (Commission Regulation 
93/2454/EEC) and contained the fo llowing provisions missing in previous legislation governing 
customs valuation: 
- 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 of 
Article VII); 
- provisions governing the application of test va lues in case of sales between rela ted persons 
(Articles 1(2)(b) and (c) of the Agreement); 
- provisions concerning prohibition to require any pers on not resident in the territory of Lithuania 
to produce records for the purposes of determin ing 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 method s (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 sell er (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 ca rrier media for use in ADP equipment; 
- provisions concerning the lodging of a value declaration; - requirements applied to the supporting do cuments (commercial i nvoices, contracts, 
transportation and insurance documents, etc.);  and 
- provisions concerning the valuation of used cars. WT/ACC/SPEC/LTU/8/Rev.5 
Page 26  
 
 The Temporary Order had entered into force before th e Customs Code, and some of its provisions were 
therefore identical to provisions now contained in the Code.  The Temporary Order and its amendments 
would remain valid until 31 March 2000, and then be  replaced by the new order of Customs Valuation 
of Goods, approved by Government Resolution No . 748 of 9 June 1999.  The new Order included the 
provisions of the Interpretative Notes of GATT 1994 Agreement which had not been incorporated 
Lithuania's legislation in the past.  The new Order, which ensured full conformity with WTO 
requirements, would enter into force on 1 April 20 00.  [A comparison of the new Order with the 
provisions of the Customs Valuation Agreement, on an article-by-article basis, is presented in 
Table 9.] 
75. Regarding the right to written explanation and appeal, he said that Article 5 of the Customs 
Code covered requests of importers  concerning explanation of alternat ive valuation methods.  Customs 
was required to respond in writing to written requests .  In case of rulings agai nst the applicant, this 
information would also set out the grounds on whic h Customs had based its de cision.  The right of 
appeal was provided for in Article 226 of the Cust oms Code.  He acknowledged that the Customs Code 
contained broader wording regarding the dutiability of royalty payments than the WTO Agreement, but 
noted that the wording of paragraph 1(3) of Articl e 33 of the Customs Code had been taken from the 
Interpretative Note to paragraph 1(c) of Article 8 of the Agreement. 
76. The representative of Lithuania stated that the system of import reference prices, including 
those applied to sugar, 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][had been] eliminated on 1 April 2000, and that such measures would not be reintroduced 
except in accordance with WTO Agreements.  Th e Working Party took note of this commitment.  
77. 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 imports and exports for 
customs purposes.  He also stated that from the date of its accession Lithuania's customs valuation 
legislation and practice would be in full conform ity with the relevant WTO provisions, including 
Article VII of GATT 1994 and the Agreement on Implem entation of Article VII without any transition  
period.  The Working Party t ook note of this commitment. 
Rules of Origin
 
78. The representative of Lithuania said that Lithuania followed the work of the World Customs 
Organization and the WTO regarding a harmonization programme for non-pr eferential rules of origin.  
In the meantime, Lithuania was taking into ac count and implementing the results of the WTO 
negotiations to maintain a transparent sy stem for non-preferential rules of  origin;  to administer these  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 27 
 
 
 rules of origin in a consistent uniform, impartial and reasonable manner;  and to base these rules of 
origin on a positive standard.  According to Chapter 5 of the Customs Code and Government Resolution 
No. 1077 of 1 October 1997 "On the Order of Determ ination of Non-Preferen tial Origin of Goods", 
which was based on the Implementing Provisions of the Community Customs Code (Commission Regulation 93/2454/EEC), goods originated in a country if wholly obtained or produced in that country 
or, if more than one country was involved, wh ere the raw materials or components underwent 
substantial, economically justifie d 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 co mponents 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 Reso lution No. 1077.  These criteria applied in respect 
of goods originating in countries en joying most-favoured-nation status in  Lithuania.  Imports from these 
countries satisfying the origin criter ia would be subject to conventional (i.e. MFN) tariff rates, otherwise 
the (normally higher) autonomous tariff rates would apply. 
79. He added that Chapter 5 of the Customs Code , which had entered into force on 1 January 1998, 
provided the framework for the applic ation 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 wholly  obtained or, when more than one country was 
concerned in its production, the country where the last  substantial transformation had been carried out.  
According to the Law on Customs Tariff, which had 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. 
80. A member reviewed the information provide d by Lithuania and was not convinced that 
Lithuania's rules of origin system met the procedur al obligations in the WTO Agreement on Rules of 
Origin.  Specifically, regarding pr eferential rules of origin, Lit huania was asked to confirm that 
administrative determinati ons of general application for preferenti al rules of origin were issued; that 
when issuing administrative dete rminations of general application, the method for calculating the 
ad valorem  percentage criterion would be indicated in the preferential rules of orig in;  that assessments 
of the preferential origin accorded to a good were issued as soon as pos sible, but no later than 150 days 
after a request for such an assessmen t by an exporter, importer, or any person with a justifiable cause;  
and that any administrative actions  taken in relation to the determination of preferential origin was 
reviewable promptly by judicial, arbitral or admini strative tribunals or procedures, independent of the 
authority issuing the determination.  Lithuania wa s also asked to clarify the role of "independent 
experts" in the determination of rules of origin. WT/ACC/SPEC/LTU/8/Rev.5 
Page 28  
 
 81. The representative of Lithuania replied that preferential rules of origin, which formed an 
integral part of all free trade agreements conclude d by Lithuania and enjoying the status of law, were 
applied in accordance with the im plementing regulations of the Cust oms Department (currently the 
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 appl ied it in the same manner as the EU; EFTA States 
and CEFTA countries.  Pursuant to Government Re solution No. 774 of 16 October 1992, all complaints, 
requests or suggestions of expor ters, importers or any other pers on, including requests concerning 
assessments of preferential origin, were to be considered within one month. The Customs Code 
contained similar provisions on the examination of re quests; where request for a decision was made in 
writing the decision should be made within 8 workin g days, unless laws and ot her legal acts provided 
another term, and a decision requiri ng additional 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 be informed in writi ng of the decision or the extension of the period 
necessary for the examination of the request.  Acco rding to the Customs Code, legal and natural persons 
had the right to appeal against all decisions taken by customs authorities including the determination of 
preferential origin to the Customs Department and/or to the Court. 
[82. A member stated that Lithuani a's description of its pr eferential rules of or igin was inadequate.  
The representative of Lithuania did not  agree with this statement regardi ng 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.  In his view, the text in paragraph [81] responded to 
all points made in paragraph [80].] 
83. Concerning the "independent experts", the represen tative of Lithuania said that this expression 
referred to private individuals or entities, li censed by the Customs Department, examining goods 
produced in Lithuania or exported from Lithuania, including verification of prices and preliminary 
assessment of preferential origin.  The assessment procedure for goods  produced in Lithuania had been 
established by the Ministry of I ndustry and Trade and Customs Department on 26 March 1993.  Such 
examination was not obligatory for exporting compan ies; they could present documents 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;  10 "independent e xperts" had been certifie d for 1999.  The experts 
were normally employees of companies carrying out such examinations, i.e. "Beckmann&Jorgensen kontrole" (Klaipeda), the Joint Stock Company Ltd. "S iauliu prekiu ekspertize" (Siauliai), the Joint 
Stock Company "Impeksservis" (Vilnius), "Kauno prekiu ekspertize" (Kaunas), and the Vilnius 
Chamber of Commerce, Industry and Crafts.  Most of these enterprises were me mbers of the Lithuanian 
Association of the Goods’ Examination Enterprises.  According to the procedure for assigning experts  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 29 
 
 
 approved pursuant to the Statute of this Associatio n, the experts were prohibited from disseminating 
confidential information.  The procedure for assi gning experts was based on the rules of the German 
Chamber of Commerce.  Customs was not bound by ex aminations performed by "independent experts" 
– whose functions were of auxiliary or purely technica l nature - and in issuing documents on preferential 
origin of goods these examinations would be verifi ed once more.  The final decision and the approval of 
certificates of origin of goods we re taken by Customs or the Chamber of Commerce.  He stressed that 
the "independent experts" did not evaluate whether or not imported goods fulfil led the requirements of 
preferential rules.  The only function performed by  the experts in respect of rules of origin was a 
preliminary assessment as to whether goods destined  for export fulfilled the re quirements of preferential 
rules of origin in force.  Payment for the work perf ormed by the experts was calculated case-by-case and 
was approximate to the cost of the service rendered. 
84. The representative of Lithuania confirmed that from the date of accession Lithuania's 
application of rules of origin [for both MFN and prefer ential trade] would be administered in conformity 
with the provisions of the WTO Agreement on Rules of Origin.  The Working Party took note of this commitment. 
Other Customs Formalities
 
85. Customs procedures had been streamlined for imports and exports of small consignments and 
frequent traders.  The Customs Code contained appr opriate provisions regarding the application of 
simplified procedures.  Further work on simplifi cation of existing customs procedures included the 
creation of a Customs Information System ba sed on the ASYCUDA package of UNCTAD and the 
establishment of audit units at regional customs hou ses.  These steps should reduce delays in customs 
clearance of goods at the border. 
Pre-Shipment Inspection  
86. The representative of Lithuania said that Lithua nia did not engage private sector firms to carry 
out pre-shipment inspection. 
Anti-Dumping, Countervailing Du ties and Safeguard Regimes  
87. Some members of the Working Party requeste d information about the status of legislation 
related to anti-dumping, countervailing duties and safeguard measures and it s conformity with WTO 
disciplines.  Lithuania was asked to provide an update on its intent and the development of legislation.  
A member reminded Lithuania that in the absence of  the required legislation,  Lithuania would not be WT/ACC/SPEC/LTU/8/Rev.5 
Page 30  
 
 able to avail itself of the temporary protecti on mechanisms provided for in the relevant WTO 
Agreements. 
88. The representative of Lithuania replied that  Lithuania had approved a Law on Antidumping, 
which followed fully the requireme nts of the WTO regarding anti-dumping, on 23 June 1998.  The Law 
had entered into force on 1 July 1998, and implementing re gulations concerning the determination of 
normal value, export price, dumping margin, domestic  industry and injury, and the procedure for spot 
investigation had also been approv ed.  Lithuania had prepared draft laws on countervai ling duties and on 
safeguards [currently being considered by the Government]. 
89. The representative of Lithuania said that any legislation in place at the time of accession or 
implemented in the future providing for the applica tion of measures taken for safeguard, anti-dumping 
or countervailing duty purposes  would conform to the provisions of the WTO Agreements on 
Safeguards, on Anti-dumping and on Subsidies and C ountervailing Measures.  In the absence of such 
legislative authority in place at the time of accessi on, Lithuania would not appl y measures for safeguard, 
anti-dumping or countervailing duty pur poses until legislation in conform ity with the provisions of these 
WTO Agreements had been impl emented.  The Working Party took note of this commitment. 
B. EXPORT REGULATIONS 
Customs Tariffs, Fees and Charges for Services Rend ered, Application of Internal Taxes to Exports
 
90. The representative of Lithuani a 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 these export 
duties had been abolished in October 1994 by Govern ment Resolution No. 985.  Effective 1 July 1996, 
all export prohibitions of interest to the domestic i ndustry had been lifted and replaced by export duties 
of 60 per cent, applied on an MF N basis, through Government Resolution No. 268 of 24 March 1997.  
These export duties had subsequently been reduced fr om 60 per cent to 30 per cent - except for certain 
types of log wood and unprocesse d oak and ash timber, which had remained at 60 per cent - by 
Government Resolution No. 896 of 7 August 1997.  In  accordance with an amendment to Government 
Resolution No. 268 of 4 January 2000, all export duties had been eliminated, except for raw hides and 
skins, effective 10 January 2000.  Th e export duties on raw hides and skins had been reduced from 30 to 
15 per cent.  [The products currentl y subject to export duties are list ed in Table 10.1.]  Export duties 
applied on a bilateral basis also a ffected only raw hides and skins, a nd were applied in accordance with 
the same amendment and at the same rate (Table 10. 2, and discussed in furt her detail in the section 
"Trade Agreements").  All export duties, including those base d on bilateral agreements, would be 
eliminated by 1 January 2001.  The representative of Lithuania confirmed that an y changes in the export 
tariff regime would be publishe d in the Official Gazette.  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 31 
 
 
 91. Exported goods (other than raw hides and skin s) were exempt from customs duties and VAT.  
Lithuania maintained some customs fees on exportati on as part of the application of the Stamp Tax.  
These fees were related or limited to the approximate cost of the services rendered.  The fees and 
charges are enumerated in [Table 5].  The new Customs Code, which had entered into force on 1 January 1998, provided a framework for the impl ementation of a duty drawback system in its 
Section 6 pertaining to inward processing.  Artic le 125 of Section  6 allowed the holder of an 
authorization (generally the importe r) to request the Government of L ithuania to repay an import duty 
when the authorization holder could prove that th e imported good had been exported as part of a 
compensation product (a product incorporating the good originally imported).  The refunded duty was 
limited to the amount of import duties paid for th e originally imported products included in the 
compensating product, and thus did not constitute a subsidy to the exporter. 
92. [A member stated that Lithua nia should eliminate the difference in  the application of its export 
tariffs, and should commit that afte r accession, it would minimize the use of such taxes and that they 
would be applied in accordance with the provision s of the WTO Agreement.]  The representative of 
Lithuania said that use of export taxes would be co nsistent with WTO norms.  Any such taxes at the 
time of accession would be in the Working Party repor t.  After accession, any subsequent use of such 
measures would be published in the Offi cial Gazette and notified to the WTO. 
Export Restrictions
 
93. The representative of Lithuania said that a ll previous export bans had been abolished by 
Government Resolution No. 716 (of 18 June 1996) and re placed by export duties (Tables 10.1 and 10.2).  
Non-automatic licences or permits were required for exports of objects  of cultural value (including raw 
materials of amber), wild animals (including their eggs, furs and st uffed animals), hunting and fishing 
trophies, products made from non-worke d wild animals or their parts, objects of geological value, and 
colour copy machines.  Licences we re also required to engage in exportation of narcotics and highly 
effective substances (non-automati c), and oil products (automatic).  The Law concerning Control of 
Import, Transit and Export of St rategic Goods and Technologies, en tering into force on 1 July 1997, 
stipulated licensing by the Minist ry of National Economy for exports of dual use goods, technologies 
and software.  As a temporar y measure in 1995, continued through 1996, the Government had 
maintained certain export restricti ons during periods of short supply of grain, flour and compound feed.  
In the future, export quotas on agricultural products  would only be temporar y measures applied in 
emergency situations and, as  from accession, in conformity with GATT 1994 obligations. 
94. Some members asked Lithuania to provide the WT O justification for export licences.  In reply, 
the representative of Lithua nia said that automatic licensing for export of o il products was maintained WT/ACC/SPEC/LTU/8/Rev.5 
Page 32  
 
 for monitoring purposes, and that the licences for du al use products served to check and identify the use 
of the product at the foreign destination.  Permit s for export of wild animals, hunting and fishing 
trophies, products made from wild  animals or their parts were re quired for the purpose of plant and 
animal protection;  expo rt permits for colour copy machines sought to prevent illegal printing of 
counterfeit documents;  and permits for export of objects of geological  and cultural value were, in his 
view, justified on the basis of GATT Article XX. 
95. The representative of Lithuani a said that from the date of a ccession export restrictions would 
only be imposed in conformity with the provisions of Article XI of the GA TT 1994.  The Working Party 
took note of this commitment. 
Export Subsidies
 
96. The representative of Lithuania said that Lith uania did not maintain any non-agricultural export 
subsidies, but he provided inform ation on export promotion measures .  His Government had adopted a 
Resolution "On Actions Improving Foreign Tr ade Regulation and Export Development" in 
January 1995.  The Resolution covered drafting of  legislation, export promotion and funding, 
management of trade-related informa tion and education and training of export specialists.  Lithuania had 
also adopted a National Pr ogramme of Implementation of Lithuani an Foreign Trade Policy Guidelines 
for 1996-1998.  The programme included implemen tation of an export programme set up by the 
Lithuanian Development Agency and the establishmen t of an Export Promotion Fund and "Insurance of 
Lithuanian Export and Import" (LEID).  Lithuania had also considered the development of a credit 
insurance system, but had yet to decide on its impl ementation.  In developing an export credit insurance 
model, Lithuania took into account the recomm endations of the OECD.  In December 1997, the 
Government had established a closed joint stock co mpany "Lietuvos eksporto ir importo draudimas" 
(LEID – Insurance of Lithuanian Export and Import) and formed an interminis terial commission - the 
Business Development Council - to deal with export promotion issues. 
97. LEID, which was minimum 51 per cent govern ment-owned, insured bank loans related to 
production and export of goods and services.  Responding to dema nds from the lending banks, 
companies concluded insurance contracts and paid the required premium to LEID.  The Government 
had allocated Llt 27.6 million for the formation of the in itial capital, reserves, et c., and had issued State 
guarantees for insurance co ntracts amounting to Llt 50 million.  Th e Government had the right to cover 
LEID losses related to the insurance of political risk .  He stated that LEID activities were based on the 
principles of the Bern Arrangement and recommen dations of the OECD.  The Business Development 
Council supervised LEID activities, decisions to assume losses of the LEID for insured political risks, 
etc.  In addition, the Council decided on the financi ng of other export support meas ures, such as training,  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 33 
 
 
 co-financing of exhibitions and fair s, preparation of prospects and ca talogues, co-financed introduction 
of international standards and quality systems, etc.  Some Llt 9 million had been allocated for such 
purposes in 1998, and about Llt 15.9 million in 1999. 
98. The representative of Lithuania added that fi ve export promotion ins titutions were functioning 
in Lithuania, i.e. the Lithuanian Development Agency (LDA), the Insurance of Lithuanian Export and Import (LEID), the Export Promotion Fund, the Li thuanian Agricultural International Trade Agency 
(LAITA) and the Lithuanian Agricultural Products and Foodstuff Market Regulation Agency 
(LAPFMRA).  The Lithuanian Development Agency (LDA), established in accordance with Government Resolution No.432 of 8 May 1997, performe d a very important role in export promotion.  
The objective of the LDA was to provide compre hensive information on i nvestment opportunities, 
conditions and procedures and to promote exports  of Lithuanian goods an d demand for Lithuanian 
services.  The LDA had been established on the ba sis of two agencies, i.e. the Lithuanian Export 
Promotion Agency (established at the end of 1995) an d the Lithuanian Investme nt Agency (established 
at the end of 1993).  The LDA’s main functions were to facilitate business part nerships and assist in 
contracts with Lithuanian authoriti es and business organizations;  to analyze and provide information to 
Lithuanian exporters and service providers on foreign market conditions;  to es tablish Lithuania's trade 
representation offices abroad;  to prepare, implement and monitor trade development programmes to ensure their consistency with WTO rules;  to st udy issues affecting trade activities and formulate 
recommendations to Lithuanian author ities;  to consult State, public a nd private institutions on foreign 
trade issues;  and to provide education and traini ng to the foreign trade community in Lithuania. 
99. The purpose of the Export Promotion Fund, established in December 1997, was to accumulate 
the State budget allocations designed to finance the export promotion measures, to increase LEID’s 
(Insurance of Lithuanian Export and Import) capital or  to execute undertaken guarantee obligations of 
the State with regard to companies which concluded insurance contracts.  Th e Lithuanian Agricultural 
International Trade Agency (LAITA) had been launche d in April 1997 by the Ministry of Agriculture 
to strengthen export promotion activities in Lithuani a with the aim to assist the food and agriculture 
industry to improve the competitive position of Lithua nian produce in local and global markets.  The 
State Enterprise Lithuanian Agricultural Products and Foodstuff Market Regulation Agency 
(LAPFMRA), founded in May 1998, was responsible  for the execution of Lithuania's agricultural 
products and foodstuff market regulation and export stimulation program, for the purchase and sale of 
agricultural products and surplus foodstuff production;  etc.  Lithuania had notified LAPFMRA as a 
State trading enterprise on 17 March 1999 (document WT/ACC/LTU/31). 
100. [The representative of Lithuania said that L ithuania would not maintain, and from the date of 
accession would not introduce, subsidies which met the definition of a prohibited subsidy within the WT/ACC/SPEC/LTU/8/Rev.5 
Page 34  
 
 meaning of Article 3 of the Agr eement on Subsidies and Countervaili ng 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
 
101. The representative of Lithuania expected that  more time would be required to restructure 
Lithuania's industrial sector.  The policy was to give pr iority to strategic restructuring, i.e. encourage the 
development of new products, entry into new market s, the creation of international companies, quality 
improvement, reducing production costs and restructuri ng of pre-privatization large-scale entities.  
Industries targeted for developmen t included food and beverages;  li ght industry;  wood processing and 
furniture;  construction materials;  machinery;  electr onics and electrical engine ering;  chemicals and oil 
processing;  and pharmaceuticals.  Potentially competitive enterprises had been identified through 
indicators such as current exports , labour productivity and size of in vestments.  The Government had 
rejected applications for direct subsidies and other forms of fina ncial support, giving more attention to 
general measures to improve the economic and legal environment.  The Government issued financial 
guarantees to enterprises receiving long-term cred its from foreign banks, thereby assisting these 
enterprises in obtaining lower interest rates.  Al l companies were eligible for such guarantees 
provided they presented properly prepared business  plans.  Other support measures included credit 
insurance and export assistance me asures such as the activities of  the Export Promotion Agency, 
measures related to the implementa tion of national quality programs, temporary tax exemptions (e.g. 
for investors and for small enterprises), as well as other support to small and medium sized enterprises.  Government agencies also played a role in seeking foreign partners for Lithuanian 
enterprises, and in channeling foreign technical assistance in strategic planning, company restructuring or in improving management skills to the recipients.  Local authorities had the right to 
grant direct tax deductions for the development of small and medium sized enterprises, or direct tax 
exemptions for limited periods, in which case the local authorities were required to compensate the 
State budget for the shortfall in tax revenue.  Cert ain subsidies were also provided to the State 
enterprises "Lietuvos Pastas" (Lithuanian Post), "L ietuvos Gelezinkeliai" (Lithuanian Railways) and 
to the State Agency for Inland Transport.  Lit huania did not provide any other assistance to the 
industrial sector (other than tariff protection as laid down in the national customs tariff). 
102. Referring specifically to the energy sector, th e representative of Lithua nia said that domestic 
production of energy, including nuclear energy, had covered approximate ly 43-45 per cent of  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 35 
 
 
 Lithuania's needs in 1996-1999.  The share was ex pected to reach about 50 per cent by 2005 with 
increasing availability of domestic pe troleum products a nd nuclear power. 
103. The representative of Lithuania confirmed that Lithuania did not maintain subsidies, 
including export subsidies, which met the definition of a prohibited subsidy within the meaning of Article 3 of the Agreement on Subsidies and Count ervailing Measures, and that it would not introduce 
such prohibited subsidies in the future.  The repr esentative of Lithuania confirmed that any subsidy 
programs would be administered in line with the Agreement on Subsidies and Countervailing 
Measures and that all necessary information on program s to be notified, if such exist, would be 
provided to the Committee on Subsidies and Countervailing Measures in accordance with Article 25 of the Agreement upon entry into force of Lithuani a’s Protocol of Accession.  The Working Party 
took note of this commitment. 
Technical Barriers to Trade, Sa nitary and Phytosanitary Measures
 
Standards and certification  
104. The representative of Lithuania explained that  Lithuania was in a proc ess of transition where 
mandatory (GOST) standards esta blished under the former USSR sy stem were replaced by a new 
system of voluntary standards and mandatory techni cal regulations.  The Lithuanian Standards Board 
had performed functions relating to standardization, metrology, conformity assessment and quality 
assurance until 1 January 1998, when the Board ha d been reorganized (Government Resolution 
No.105) in three State institutions under the Mini stry of Public Administration Reforms and Local 
Authorities, i.e. the Lithuanian Standards Boar d, the State Metrology Service and the National 
Accreditation Bureau.   The Lithuanian Standards Board had membership status within various 
international and European standard ization organizations to facilita te adoption of international and 
European standards as Lit huanian standards.  The Lithuanian St andards Board had been an affiliate 
member of the European Committee for Electrot echnical Standardization (CENELEC) since 1997, an 
affiliate member of the European Committee for St andardization (CEN) since 1993, a member of the 
European Telecommunication Standards Institute ( ETSI) since 1996, a correspondent member of the 
International Organization for Standardization (ISO) since 1992, and an associated member of the 
International Electrotechnical Comm ission (IEC) since 1996.  The State Metrology Service had been a 
correspondent member of the Organization for Legal Metrology (OIML) since 1994.  The functions of 
national accreditation body were fulfilled by the Na tional Accreditation Bureau in Lithuania.  The 
Bureau was responsible for accredita tion of testing, calibration laborat ories, certification bodies for 
products, quality systems and personnel , as well as for inspection bodies.  The Bureau had been full 
member of the European cooperation for Accredit ation (EA) since June 1999.  Lithuania had WT/ACC/SPEC/LTU/8/Rev.5 
Page 36  
 
 concentrated its resources towa rd implementation of a long-term  programme for the adoption of 
international and European standard s as Lithuanian standards, cove ring approximately 800 international 
and European standards.  By July 1999, European standards had been adopted as Lithuanian standards 
in 2,142 instances representing 28.6 per cent of al l Lithuanian standards, and adopted European 
standards and international standards represented 49.6 per cent of all Lithuanian standards.  Adopted 
European and international standards were expe cted to account for 55 per cent of Lithuanian 
standards in 1999, rising to 75-80 per cent in 2001.  According to the draft Law on Standardization, 
which had been submitted to the Government and Parliament cons ideration, the status of the 
Lithuanian Standards Board would be changed from a governmental institution to a non-profit 
association.  The Lithuanian Standards Board follo wed the principles of international and European 
standardization.  Lithuanian standards were drafte d in technical committees with the participation of 
manufacturers, consumers and representatives of St ate institutions on a voluntary and equal basis.  
The technical committees had been established according to the so-called "mirror principle" in 
relation to the technical committees  of international and European standardization organizations.  A 
national technical committee would nevertheless fo llow and take active part in the activities  of several 
corresponding technical committees of inte rnational and European organizations. 
105. A member noted that some of the legislation critical to the de velopment of Lithuania's standards 
regime was still in pr eparation and expected Lith uania to adopt all necessary  legislation to implement 
fully all obligations under the Agreement on Technical Barriers to Trade prior to the date of accession. 
106. The representative of Lithua nia said that virtually all wo rk required to bring technical 
regulations into conformity with the WTO Agre ement on TBT had been completed.  A Law on 
Metrology had been adopted in July 1996.  A dr aft Law on Standardization, which defined the 
organizational framework for standardization, incl uding the basic principles , functional requirements 
and main resources, had been approved by the Gove rnment and presented to Parliament for adoption 
[expected in February/March 2000 ].  The Law on Conformity A ssessment had been approved in 
October 1998.  The Law defined the main principles  of the conformity assessment system covering 
mandatory and voluntary sectors, and the structure of  the system, including accreditation, testing, 
certification, inspection and suppliers' declarati on.  A Law on Products' Safe ty had been adopted on 
1 June 1999.  The Law determined the general require ments for product safety, the basis for imposition 
of technical regulations, and the gene ral principles for the functioning of  a market surveillance system.  
Lithuania had established the TBT Enquiry Point at the Lithuanian Standards Board in November 1996.  
The Enquiry Point, inter alia, fu lfilled the function of enquiry poi nt in conformity with the WTO 
Agreement on TBT and would also provide notificati ons.  Rules governing the exchange of information 
between Ministries involved in standards issues  and the enquiry point, including the notification 
requirements, had been approved by the Government on 20 May 1999.  Lithuania had introduced  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 37 
 
 
 provisions allowing foreigners to comment on techni cal regulations not consistent with international 
norms.  Information on draft standards in Lithuania was published in the official bulletin of the 
Lithuanian Standards Board.   Basic rules of procedure for technical work relating to the preparation and 
adoption of international and European standards as Lithuanian standards and the Code of Good 
Practice, as required under  Annex 3 of the TBT Agreement, had been approved on 22 February 1999.  
The representative of Lithuania provided a detailed checklist of on TBT requirements and compliance 
by Lithuania in document WT/ACC/LTU/41. 
107. Lithuania's system of conformity assessment, notably the certification activities, was based on 
normative documents prepared according to ISO/IE C guidelines, mainly ISO/IEC Guides 22 and 28, 
and the Supplier's Declaration of Conformity.  Domestic and importe d goods were treated equally.  
Lithuanian certification bodies coul d recognize certificates issued by foreign bodies in accordance with 
the relevant procedures.  Certif ication bodies had been establishe d for mandatory certification of 
electrical appliances (the Certification Centre of Electrotechnical Production in Vilnius), for 
general-purpose electronic equipment (the Stat e Medical and Electronic Equipment Centre of 
Certification "SERTIKA" in Kaunas), for constructi on materials (the State enterprise Certification 
Centre of Building Products in Vilnius), and for info rmation technology products (the State Certification 
Body "Infostruktura").  The four  certification bodies based their work on Government Resolution No. 
474 of 22 June 1992, Order No. 160/114 of 29 June 1995 of the Ministry of Industry and Trade and 
Lithuania's Standards Board, Government Resolu tion No. 593 of 12 June 1997, and Government 
Resolution No. 687 of 26 June 1997. 
108. Foreign certificates for im ported oil products needed to correspond to mandatory quality 
indicators approved by the Ministry of Economy.  Government Resolution No. 883 
(29 November 1993) On the Approval of Traffic Rules established tec hnical inspection requirements for 
imported vehicles.  All pharmaceutic al products required registration be fore being sold in Lithuania.  
Some other non-food items were subject to verifi cation 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 requ irements see document WT/ACC/LTU/7/Add.1. 
109. Conformity assessment proced ures were establishe d by legal acts of responsible government 
institutions.  The Law on Conformity Assessment did not contain specific guidelines for testing 
laboratories, certification bodies , inspection bodies and accreditati on bodies, but indicated that 
participants in the conformity assessment system should meet the requirements of international and 
relevant European documents and other related regul ations.  The Law permitted Lithuania to recognize 
product test reports and issue certificates of conformity  in accordance with procedures established by the 
relevant international agreements.  Lithuania ha d signed agreements on mutual recognition of test WT/ACC/SPEC/LTU/8/Rev.5 
Page 38  
 
 reports and certificates of  conformity with Poland, Slovakia, Bulg aria, Belarus, Russia and Ukraine;  
agreements with the Czech Republi c and Romania were under negotiatio n.  Cooperation agreements on 
accreditation between the corresponding institutions of  Lithuania, Latvia and Estonia had also been 
signed.  Lithuania recognized certif icates of conformity of forei gn countries after performing their 
recognition procedure by the relevant  Lithuanian certifica tion bodies.  Lithuania r ecognized certificates 
for measuring instruments issued by the Internatio nal Organization for Legal Metrology (OIML).  The 
representative of Lithuania stressed that no relatio nship existed between the certification process and 
import licensing requirements. 
110. The representative of Lithuania stated that Lithuania would ensure  that its technical regulations, 
standards, certification a nd labelling requirements were  not applied to imports in  an arbitrary manner, in 
a way that discriminates between s upplier countries where the same c onditions apply, or as a disguised 
restriction on international trade.  He added that Lithuanian legal acts relating to technical measures 
applicable to trade regulated domest ically and foreign made  products uniformly, and did not give rise to 
any discrimination between producers or suppliers. 
111. The representative of Lit huania stated that, upon accession to the WTO, Lithuania would 
comply with all the provisions of the Agreement on T echnical Barriers to Trade without recourse to any 
transitional arrangements.  The Working Party took  note of this commitment. 
Sanitary and Phytosanitary Measures
 
112. The representative of Lithuania said that all wo rk required to bring Lithuania's regulations into 
conformity with the Agreement on the Application of  Sanitary and Phytosanit ary Measures had been 
completed.  He added that Lithuania had renewed it s membership in the Organisation International des 
Epizooties (OIE) in 1992, and joined the Codex A limentarius Commission in  1992 and the European 
and Mediterranean Plant Protecti on Organization (EPPO) in 1998.  Lithuania had ratified the 
International Plant Protection Convention (IPPC) in November 1999.  Lithuania based its SPS measures 
on international standards and guide lines established by these organi zations to the greatest extent 
possible.  For the purpose of transparency, his Go vernment had adopted a Resolution in February 1999 
which made all legal acts subject to public notice to enable the subm ission of remarks and suggestions 
by those concerned, including on draft SPS legislation.   He provided informatio n on specific Lithuanian 
requirements pertaining to seeds, fertilizers, pesticides, animal and plant health, feeds, plant breeders' 
rights, fruit and berries, food a dditives and contaminants, packag ing and labelling standards, and 
inspections of meat, dairy products, eggs and egg prod ucts.  The requirements fo r items intended to be 
imported were the following:  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 39 
 
 
  - Seeds - presentation of phytosanitary certificate issued by the State Plant Protection 
Service of the exporter country and a seed quality certificate issu ed by the responsible 
authority of the exporting country; 
 - Fertilizer - suppliers' decl aration of conformity (or qua lity certificate), and products 
needed to be identical to information stated on their label; 
 - Pesticides - product permitted to use in Lithuania and included in the national positive 
list of pesticides prior to importation (in th e sense of SPS requirements, fertilizers and 
pesticides could be evaluated only as  contaminants for quantity reasons); 
 - Plants and plant products – presentation of phytosanitary certificate issued by the State 
Plant Protection Authority of the exporter c ountry and import permit issued by the State 
Plant Protection Service of Lithuania; 
 - Plant breeders' rights - presentation of phyto sanitary certificate issued by the State Plant 
Protection Service of the exporter country; 
 - Foodstuff of vegetable origin (processed fru it, berries, vegetables, etc.) and foodstuff 
of combined origin (margarine, mayonnaise, etc.) - presentation of suppliers' 
declaration of conformity (according to EN 45014) of the exporter country;  sanitary 
inspection of these products provided by customs within Lithuania; 
 - Foodstuff of animal origin (meat, dair y, poultry, fish products) and foodstuff of 
combined origin with a large amount (more than 20 per cent) of components of 
animal origin - presentation of veterinary certificate of the exporter country;  
veterinary inspection of these products provided at the border; 
 - Food additives and their mixtures - items needed to be included in the national 
register of food additives - suppliers' decl aration of conformity (specification of 
purity levels) of the exporter country;  for food additives as a component of a 
foodstuff - obligatory compliance with the food additives requirements established in 
Lithuanian Hygiene Norm HN 53-1998; 
 - Contaminants - chemical and microbiologica l contamination levels of foodstuffs not to 
exceed the maximum limits established in Lithuanian Hygiene Norms HN 54-1998 and 
HN 26-1998; 
 - Packaging - requirements laid down in Lithuanian Hygiene Norm HN 77-1998;  and 
 - Labelling - all requirements harmonized to  Codex Alimentarius provisions;  labelling 
should be in Lithuanian language. 
Further information regarding veterinary matters wa s provided to the Working Party in a note entitled 
"Veterinary Requirements of the Republic of Lithuania". WT/ACC/SPEC/LTU/8/Rev.5 
Page 40  
 
 113. The representative of Lithuania provided info rmation on Lithuania's progress in implementing 
the provisions of the WTO Agreement on Sanitary  and Phytosanitary Measures in document 
WT/ACC/LTU/22 of 14 May 1998 an d WT/ACC/LTU/22/Add.1 of 17 March 1999.  The submission 
listed the institutions responsible for application of SPS measures;  relevant legislation pertaining to foodstuffs and food safety, non-processed agricultural co mmodities and animal hea lth, and plant health;  
and outlined plans for recognizing equivalence of SPS regulations of exporting countries and 
implementation of transparency provisions.  He also provided a checklist of SPS requirements and 
compliance by Lithuania in document WT/ACC/LTU/43. 
114. Imported foodstuffs were re quired to pass through border crossing points manned to perform 
foodstuff controls.  The Ministry of Health Care ha d approved a list of foodstuffs subject to quality 
control, thus requiring phytosanitary, veterinary or  health and safety certificates on importation.  
Products included in the list are enumerated in Table 11.  Lith uania required veterinary and 
phytosanitary certificates for pr ocessed foodstuffs only to ensure  that imported products fulfilled 
appropriate veterinary and phytosa nitary requirements (such as an imal health and public health 
attestations). 
115. 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 certificates  were required for certain foodstuffs  in accordance with international 
rules as some processing methods (e.g. sm oking of meat) did not eradicate bacteria. 
116. A member inquired about the relationship betwee n foodstuff certification and import licensing.  
The representative of Lithuania replied that at presen t the Government approved a list of products and 
foodstuff subject to control on importation.  Foodstu ff subject to veterinary or phytosanitary import 
control in Lithuania (Table 12(a);  veterinary certific ates required for all raw and processed products of 
animal origin, and Table 12(b);  all unprocessed products of plant origin subject to phytosanitary 
certification) required certi fication of each consignment.  The issu ance of certificates was coordinated 
between the State Veterinary Service and the Stat e Plant Protection Service at the Ministry of 
Agriculture.  For products subjec t to veterinary inspection, the importer should apply for an import 
permit to the State Veterinary Se rvice stating details concerning th e product, its origin, the exporting 
country and the border crossing point.  An import pe rmit would be issued without delay provided the 
epizootic situation in the exporting country was propi tious.  A suppliers' confor mity declaration would 
suffice for consumer products and other foodstuff (all processed products of non-animal origin) not 
subject to veterinary or phytosanitary certifica tion.  Exporters' own decl aration would suffice for 
fertilizer.  Products not specifically listed were not su bject to certification or su ppliers' declaration.  He 
added that Government Resolution No. 1132 "On the A pproval of the Order on Import of Foodstuffs  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 41 
 
 
 and Their Control of Harmless and Quality" of 8 October 1999 (which had replaced the corresponding 
Order of 9 October 1997) regulated the system for the importation of foodstuff.  The State Veterinary 
Service and the Nutrition Centre in the Ministry of Health Care had prepared a register of foodstuff 
importers, which had entered into force on 1 July 1998.  The register improv ed the surveillance and 
control of importers and guaranteed importation of safe products only. 
117. A member pointed out that Article 5 of the WTO Agreement on SPS requi red Lithuania to carry 
out risk assessment.  A member expected Lithuani a to establish its SPS enqui ry point and adopt all 
necessary legislation to implement fully all obligations under the Agreement on SPS by the date of 
accession to the WTO. 
118. The representative of Lithuania replied that Lithuania’s legal a nd institutional structure had been 
adjusted to comply with the requirements of WTO Agre ement on SPS.  The last pi ece of legislation - the 
Law on Food - was currently before Parliament.  He added that a system of risk assessment for food 
had been introduced in several step s during the period 1994-1999 with the approval of five major laws 
- the Law on Health System, the Law Products Safe ty, and the Law on Health  Care Institutions, Law 
on Phytosanitary and the Law (with its Amendmen ts) on Veterinary Activities.  The laws gave 
responsibility for the implementation of the risk  assessment mechanism to  the National Nutrition 
Center at the Ministry of Health, the State Hygien e Inspectorate, the State Veterinary Service and to 
the State Plant Protection Service.  The Law on Pr oducts Safety determined the general requirements 
for products safety, the basis for the imposition of SPS regulations, and the general principles for the 
operation of a market surveillance system.  Fu rther supplementing provisions on risk assessment 
based on the SPS Agreement had been approved by Parliament on 7 October 1999 with the 
Amendment and Supplement to the Law on Veterinary Activities.  The Law on Phytosanitary, approved on 16 December 1999, established genera l compulsory phytosanitary requirements 
consistent with the SPS Agreement, the basis of phytosanitary control for the physical and legal 
entities, and measures for the prevention of importati on and dissemination of harmful organisms.  The 
Law on Food, which had been submitted to Parliament  for approval, would finalize the mechanism for 
risk assessment of food.  This step would comple te Lithuania’s SPS legislation and bring it fully in 
compliance with WTO requirements.  
119. As for transparency, Lithuania published promptly all adopted sanitary and phytosanitary 
regulations in the Official Gazette.  Lithuania had established the SPS Enquiry point, which would 
also carry out the notifications of the Agreement, at  the Ministry of Agriculture.  Three institutions – 
the National Nutrition Center at the Ministry of Health, the State Plant Protection Service and the 
State Veterinary Service – would provide inform ation to the SPS Enquiry Point for distribution 
according to the requirements of the Agreement.  The SPS Enquiry Point would be responsible for WT/ACC/SPEC/LTU/8/Rev.5 
Page 42  
 
 responding to all relevant questions of WTO me mbers and supply appropria te documentation on (i) 
any proposed or adopted SPS regulation;  (ii) procedures for determination of risk and the 
corresponding level of SPS protection;  and (iii) L ithuanian participation and the nature of its 
commitments arising from international and regiona l sanitary and phytosanitary organizations and 
systems, and bilateral or multilateral agreements  and arrangements within the scope of the SPS 
Agreement, including the texts of such agreements and arrangements. 
120. The representative of Lithua nia 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 the Application of Sanitary and Phytosanitary Measures and Import Licensing 
Procedures, without recourse to any transitional ar rangements.  The Working Party took note of this 
commitment. 
Trade-Related Investment Measures
 
121. The representative of Lithuania said that his Government had re viewed carefully the provisions 
of the WTO Agreement on Trade-Related Investment  Measures (TRIMs), including its Annex and had 
concluded that Lithuania did not ma intain any measures inconsistent with the TRIMs Agreement.  His 
Government applied the principle of  national treatment and did not re sort to performance requirements 
which could affect trade.  Lithuania was ready to implement fully the provisions of the WTO TRIMs Agreement upon accession without ex ception or transitional periods.  
122. The representative of Lithuani a confirmed that Lithuania would not invoke the provisions of the 
TRIMs Agreement that provide for the progressive elim ination of measures inconsistent with the TRIMs 
Agreement within a fixed period of time as it di d not maintain any such measures and would not 
introduce any such measures in the future.  Th e Working Party took note of this commitment. 
State-Trading Entities
 
123. The representative of Lithuania said that the Law on Trade, adopted in January 1995, authorized 
the establishment of State monopolies in any sector in emergency situ ations (war, natu ral calamities, 
etc.) and to protect health and safety.  He considered  such measures consistent with the provisions of the 
GATT 1994.  Exclusive rights existed for State enterprise s, 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 natural m onopoly in the production, 
input, transmission and distribution of energy.  Ho wever, on 8 April 1997, the Seimas had approved the 
reorganization of "Lietuvos energija" into 16 thermal supplier companies.  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 43 
 
 
 124. A member understood that Lithuania used licenc es to allow commerce to  a certain point, and 
stated that Lithuania should no tify firms under Article XVII of th e GATT 1994 in areas where business 
licences were rationed arbitr arily or acted as quantitative restrictio ns.  Current programmes were clearly 
WTO-inconsistent, whether or not th ey qualified under Articl e XVII.  In particular, Lithuania's system 
of activity licensing appeared to restrict trade in alcoholic beverages in a manner conflicting with the 
provisions of Article XI and Ar ticle XVII of the GATT 1994.  The Government seemed to play a 
controlling role in the selection a nd limitation of firms engaging in trade in these products, in effect 
creating State-trading enterp rises.  A distribution monopoly maintain ed by the State could also distort 
import prices.  It was noted that the compan y "Lietuviškas Midus" he ld monopoly rights on the 
production of high-alcohol be verage and even if "Lietuviskas Mi dus" was notified as a State trading 
enterprise, an import ban would sti ll be problematic vis-à- vis GATT Articles III and XI.  Lithuania was 
asked to provide the criteria upon which the licens ing system for alcoholic beverages was based and 
explain how Lithuania's restrictive import sy stem could be consiste nt with WTO rules. 
125. In reply, the representative of Lithuania sa id that the Law on Amendm ents and Supplements of 
the Law on Enterprises of 25 Sept ember 1997 stipulated that two activ ities - the production of products 
with ethyl alcoholic strength exceeding 22 per cent, an d the printing of money, coins and postage stamps 
- could only be undertaken by enterprises owned by th e State or munici palities, or special enterprises 
licensed to do so.  Although the Law on Trade had established the legal basis for introducing a State 
monopoly on alcohol products in cases of force majeure  (war, famine and natura l disasters), the present 
situation did not qualify as force majeure.   Instead, his Government had established a State Tobacco and 
Alcohol Control Agency on 12 July 1996 in accordance with the Law on Health System and the Law on 
Alcohol Control.  The Agency did not operate a production monopoly;  its main functions were to 
formulate and implement St ate policy in cooperation with Ministri es and other governmental institutions 
with a view to discouraging cons umption and reducing its harmful effects on the population.  The 
Agency itself did not engage in production or trade, but performed various trade-related administrative 
and monitoring tasks, including the issuance of acti vity licences, monitoring of adherence to legal 
requirements, establishment of additional marking procedures fo r alcoholic beverages, etc. 
126. The representative of Lithuani a reassured the Working Party that  the State did not maintain any 
form of distribution monopoly with re spect to alcohol, nor did it play a "controlling role".  As far as the 
number of activity licenses granted for trade in alcoholic beverages was concerned, the Law on 
Amendment and Supplement to the Law on Alcohol C ontrol of 8 April 1997 had (i) eliminated all 
restrictions on the number of activity licenses to im port alcoholic beverages;  and (ii) eliminated an 
earlier requirement which had restrict ed the choice of importers' foreign partners to companies listed in 
the bulletins of the Associat ion of Manufacturers of Al coholic Beverages.  He recalled that Government 
Resolution No. 601 of 18 May 1999 (enactment post poned until 1 April 2000) would complete the WT/ACC/SPEC/LTU/8/Rev.5 
Page 44  
 
 alignment of the rules governing trade in alcohol with the requirements of GATT 1994 by equalising the 
stamp taxes on such licensing for both the importat ion and the wholesale of  alcohol and alcoholic 
beverages. 
127. Addressing the specific concer ns raised about the import ban on mead, the representative of 
Lithuania confirmed that this ban was no longer in place.  The La w on Alcohol Control of 10 December 
1998 had removed fully the earlier im port ban on mead and other alcohol ic beverages with an alcohol 
content of more than 50 per cent.  This Law ha d entered into force on 30  December 1998.  Finally, 
concerning the company "Lietuviskas Midus", he c onfirmed this company did indeed have exclusive 
rights.  Lithuania had submitted a notification to the WTO on the company's exclusive right to 
manufacture products with ethyl al cohol strength exceeding 22 per cent and on its exclusive right to 
produce beverages with high alcohol c ontent, as well as a notification on the operation of the Lithuanian 
Agricultural Products and Foodstuff Market Regu lation Agency (WT/ACC/LTU/35).  "Lietuviskas 
Midus" was a cooperative c onsumers' enterprise producing mead in  accordance with patented ancient 
recipes which Lithuania considered to be part of it s national heritage.  Thus, due to the fact that the 
enterprise followed ancient traditions of manufactu re and was the only enterprise in Lithuania which 
manufactured national beverages, the Government had granted "Lie tuviškas Midus" the right to 
manufacture one traditional alcoholic  beverage, and this 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 me ad without restrictions.  He recalled that an 
amendment to the Law on Alc ohol Control of 10 December 1998 had also removed the ban on 
importation of mead and other alc oholic beverages with alcohol cont ent exceeding 50 per cent.  Having 
taken these steps, the representativ e of Lithuania considered that Li thuania had thus brought its alcohol 
regime in general, and the regi me specific to the production of mead, into conformity with the 
GATT 1994. 
128. Referring to arrangements in the sugar pr ocessing sector regarding an exemption from 
provisions in the Law on Competition governing domin ant firms, and the distribution of tariff-rate 
quotas, some members noted that this would appear  to be a special right within the meaning of 
Article XVII.  Moreover, if a refine rs association had any rôle in im port policy, or pr otected access to 
sugar imports on a preferential ba sis, this should be indicated by Lithuania, and justified under 
appropriate WTO agreements an d provisions, e.g. GATT, the Agreement on Import Licensing 
Procedures and the Agreement on Agriculture.  [A member considered the co mmitment paragraph had 
no meaning if Lithuania and the working part y did not agree on how Article XVII and the 
Understanding were applied and what they would mean for Lithuania's trade.]  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 45 
 
 
 129. The representative of Lithuani a replied that his Government ha d not approved any special rights 
for sugar producers.  The sugar manufacturers' association ha d been exempt from the Law on 
Competition under previous legislation, but these pr ovisions, as well as the minimum import price and 
tariff quota arrangements, had been eliminated in accordance with the Amendment of the Law on Sugar of 8 July 1999. 
130. The representative of Lithua nia confirmed that his Governme nt would apply its laws and 
regulations governing the trading ac tivities of State-owned enterprises and other enterprises with special 
or exclusive privileges and would otherwise act in  full conformity with the provisions of the WTO 
Agreement, in particular Articl e XVII of the GATT 1994 and the Un derstanding on that Article 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
 
131. The representative of Lithua nia said that a Law on Free Econo mic Zones had been adopted in 
June 1995.  Each zone would be esta blished by separate la w.  Certain activities would be prohibited in 
free zones, including production, storage and sale of weapons, ammunition, explosives, dangerous and 
radioactive materials, narcotics a nd poisonous substances;  manufacture of spirits, secu rities, money and 
postage stamps;  radio an d television broadcasting;  hospitals;  gambling houses;  and organization of 
lotteries.  Licences would be required to carry out  activities subject to authorization (see "Trading 
Rights") 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 taxe s (including social insurance), tax 
on land rent, stamp tax,  taxes on natural resources and po llution tax (amendment of Law on Free 
Economic 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) ta x reduction for the subsequent five years.   If a foreign investor acquired at 
least 30 per cent of the authorized (ownership) capita l of an enterprise regist ered and operating in the 
zone, and invested not less than US$1 million of ca pital of foreign origin, the enterprise would be 
exempt from profit (income) tax for 5 years from the day of its registration.  The enterprise would 
benefit from a 50 per cent profit (income) ta x reduction for the subsequent 10 years. 
132. Thus far, Parliament had adopt ed separate laws for the establishment of free economic zones in 
three cities - Siauliai, Kl aipeda and Kaunas.  In this connection,  the Government had organized tenders 
to select the company or group of companies to gover n the zone, and a subseque nt tender to determine 
the companies operating in the zone.  Both foreign and domestic companies coul d participate in these 
tenders, provided they prepared an  entrepreneurship project, includi ng estimates of pr oposed investment WT/ACC/SPEC/LTU/8/Rev.5 
Page 46  
 
 in the infrastructure of the zone.  International te nders had already taken pla ce for the preparation of 
business plans, statute of the zo nes and choice of establishing groups for the Kaunas, Siauliai and 
Klaipeda free economic zones.  The Kaunas, Siauliai and Klaipeda free economic zones were expected 
to start operating in the course of 2000.  Companies operating in the zone would need to register as 
enterprises in accordance with Lith uanian legislation and the registra tion should be duly recorded by the 
governing company of the zone.  Companies were not re quired to export part or all of their output to 
gain access to Lithuanian free zone s.  The purpose of the free economi c zones was to attract investment, 
not to introduce requirements to export.  Goods brou ght into the customs territory of Lithuania from a 
free economic zone would be subject to all laws a nd other legal acts regulat ing the importation of goods 
from abroad, notably the application of import du ties and taxes, as well as any prohibitions or 
restrictions of economic character. 
133. The representative of Lithuani a confirmed that any free zones or free economic zones would be 
fully subject to the coverage of the commitments taken in the Protocol of Accession, and that Lithuania would ensure enforcement of its WTO obligations in thos e zones, including those commitments derived 
from the TRIPS Agreement.  He al so confirmed that, when goods produc ed or imported into the zones 
under the special tax and tariff regime  existing in these areas enter into  the rest of Lithuania, normal 
customs formalities, tariffs and taxes would be applied.  The Working Party took note of this 
commitment. 
Government Procurement
 
134. The representative of Lithuania said that a new Law on Public (Government) Procurement, 
consistent with WTO requi rements, had been adopted on 3 June 19 99.  The Law had entered into force 
on 1 October 1999, and replaced the previous Law of 13 August 1996.  The new Law aimed at ensuring 
open and transparent public procuremen t procedures, equality of particip ation for suppliers (domestic or 
foreign), effective competition, and more effective use of State funds.  Article 1.6 of The Law allowed 
the Government to give preference  to goods, services and works (i n connection with construction and 
renovation) produced, effected or pr ovided by enterprises, includi ng 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 Lith uania's obligations under in ternational agreements.  
The Government Procurement Agency had been es tablished in June 1997.  The Agency prepared 
regulations related to the implem entation of the Law on Public Procurement;  announced tenders;  
coordinated Ministries' activities re lated to procurement;  i nvestigated complaints by suppliers;  etc.  The 
Government of Lithuania had been granted obse rver status in the Committee on Government 
Procurement in June 1998.  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 47 
 
 
 135. The representative of Lithua nia confirmed that Lithuania would initiate negotiations for 
membership in the Agreement on Government Procurement by tabling an entity offer within three 
months after the accession date, at the latest.  He al so confirmed that if the results of the negotiations 
were satisfactory to Lithuania and other members of the Agreement, negotiations would be completed 
[in the course of 2000].  The Working Party took note of these commitments. 
Transit  
136. The representative of Lithuani a said that Lithuania required su bmission of a security or cash 
deposit which would normally be equal to the sum of  import duties and taxes levied on imports.  The 
amount considered sufficient could be  set at a higher level if the cust oms value or tariff classification of 
the goods in transit could not be  determined with certainty. 
137. The representative of Lithuania added that the Prime Ministers of the Ba ltic States had signed a 
Resolution "On Via Baltica" on 13 Fe bruary 1995, seeking to create a Baltic Transit System which 
would facilitate and simplify transit formalities for cargo traffic between the Baltic States.  The system 
would be based on, and could pave the way for, future accession to the EC-EFTA SAD and Common 
Transit Conventions (1987).  An Agreement on the Common Transit Procedure of the Baltic States had 
been signed on 10 July 1998, and had entered into force upon ratification of Pa rliaments of the three 
Baltic States on 1 June 1999. 
138. The representative of Lithuani a confirmed that Lithuania would conform to the relevant WTO 
provisions, including Article V of the GATT 1994.  Th e Working Party took note of this commitment. 
Agricultural Policies  
[139. Members of the Working Part y asked Lithuania to outline the ma in direction of its agricultural 
policies.  Specific questions were raised with re spect 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 su gar sector.  Lithuania was requested to provide 
information on domestic support and export subsidie s in agriculture in the format of document 
WT/ACC/4.  A member noted that Lithuania's do mestic support and export subsidy programmes were 
of recent date and wondered why Lithuania had implemented programme s which could be in contrast 
with WTO provisions after decidi ng to join the organization. 
140. The representative of Lithua nia noted that domestic suppor t and export subsidy programmes 
had been in place since 1995.  He did not consider such programmes incompatible with the provisions of 
the WTO Agreement on Agriculture.  He added that agriculture was of exceptional economic and social WT/ACC/SPEC/LTU/8/Rev.5 
Page 48  
 
 significance to Lithuania.  About  one third of Lithuania's populati on resided in rural areas and the 
production of primary agricultural co mmodities provided work for 21.7 per cent of the total employed 
workforce in Lithuania.  Milk production was one of the most important economic activities in 
Lithuania.  However, agricultural production was ha mpered by small-scale, inefficient farming and 
marketing infrastructure.  Domestic prices for mo st agricultural commodities were below the world 
market level, but prices for final products could so metimes be equal to, or higher than, world market 
prices.  The Government aimed at creating a competitive agricultural sector and a viable rural economy 
while minimizing the negative social and economic c onsequences during the period of transition.  The 
average weighted MFN tariff on major food products (milk, dairy products, butte r, eggs, sausages and 
sugar) was 39.5 per cent. 
141. Some members were particularly concerned about  subsidies granted in the form of purchases of 
agricultural production at "recomme nded" prices.  The representativ e of Lithuania explained that 
farmers were supporte d through the mechanism of minimum (recommended) purc hase prices for wheat, 
flax, rapeseed, protein feed crops and milk.  The product coverage of the minimum price programme 
could be expanded in extreme situ ations. Prices were determined by average production costs in 
Lithuania and the market situation in neighbouring countries.  A subsidy element was added to the 
minimum prices within fixed purchasing quotas for fl ax, rapeseed and protein feed crops.  Subsidies 
were channelled to farmers through the processors to reduce paperwork.  Subsidies were granted 
through the Rural Support Fund.  Types of assistance also  included soft credits and preferential loans (at 
5 per cent annual interest) for farmers, support to tr ade intermediaries and serv ices providers, rebates on 
agricultural machinery, suppor t for cooperative efforts among farmers, ecologic farming and 
compensation for accidents and calamities.  The Stat e also offered indirect support by financing land 
reclamation works, liming of soil, construction of roads and other infrastruc ture, animal breeding and 
agricultural research and training.  Tax concessions to the sector co nsisted of exemption from corporate 
profit tax and tax holidays on reclai med land.  The Government also en couraged diversification in rural 
areas and afforestation. 
142. Automatic import licensing had been intr oduced on 1 November 1998 for the main 
agricultural products.  The principal purpose of the licensing system was to monitor imports of 
sensitive products to allow improved prediction of import trends.  In his view, the licensing 
procedures were not administered in a manne r restricting imports, and corresponded to the 
requirements of Article 2 of Agreement on Import Licensing Procedures.  Import licenses were issued immediately upon receipt of a completed application - including copies of the certificate of registration, the importer's certificate and the contract  with the foreign commercial entity - or within a 
maximum of 10 days.  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 49 
 
 
 143. In 1997, the Government had decided to channel all fiscal resources for the National 
Agricultural Development Program me and the Agriculture Support Fund into a Rural Support Fund to 
improve the efficiency and administration of State s upport to the agricultural sector.  The Ministry of 
Agriculture  had established the Rural Support Fund.  The main purpose of the Fund was to create viable 
farms which would guarantee employment and inco me for farmers.  The Rural Support Fund would 
facilitate a gradual move from price subsidies to ma intaining 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;  new technologies;  livestock 
breeding;  ecological (environmentally-friendly) farming;  structural adjustment of marginally productive land;  and the development of quality systems for agricultural products. 
144. A member noted that Lithuani a 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 explai ned that export subsidies were provided for storage of surplus 
production and improvement of marketing conditions.  In 1995, export subsidies had been provided for 
beef, pork, pigs, butter, ch eese, grain, flour, condensed milk a nd milk powder at a budget cost of US$9.8 
million.  Lithuania had subsidized  exports of beef, butter, condense d milk, milk powder, cheese, pork, 
grain and flour at a budget cost of US$8 million in 1996;  beef, butter, condensed milk, milk powder, 
cheese, pork, grain, vegetable oil, meat preserves and flour at a budget cost of US$14.8 million in 1997;  
beef, butter, condensed milk, milk powder, cheese, casein and other milk prot ein products, vegetable oil 
and preserved meat at a budget cost of US$12 million in 1998;  and beef, butter,  condensed milk, milk 
powder, cheese, casein and other milk protein pr oducts, and vegetable oil at a budget cost of 
US$14 million in 1999.  Lithuania expected to continue applying such subsidies in  the future, especially 
in extreme market situations.  Export subsidies were  not administered as a re gular programme, but were 
targeted at a specific, limited market segment both in terms of product coverage and geographical 
location.  The product list included dairy and meat products which were exported when surplus 
quantities accumulated in the domestic market, and th ese surpluses could not be absorbed domestically 
due to rising imports and declining purchasing power  in Lithuania.  The subsidized exports were 
destined for the Russian market. 
145. The representative of Lithuania stressed that, as  with the economy as a whole, Lithuania's food 
and agriculture sector was facing difficult adjustme nt to new market-oriente d 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 producti on and prices, and a disruption in 
relations - and resulting competition wi th Lithuania's main trading partners - in the former Soviet Union.  
Growth and development within the sector was restra ined by insecurity concerning farm and land user WT/ACC/SPEC/LTU/8/Rev.5 
Page 50  
 
 rights, poor infrastructure, and lack of proper di stribution 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 fo r domestic support to agriculture 
(outlined in paragraphs [141 to 144]). 
146. Some members asked specific questions regard ing measures affecting th e sugar sector, notably 
the possible introduction of minimum import prices a nd the opening of tariff-r ate quotas for domestic 
processors.  Lithuania was reminded that Arti cle VII of the GATT 1994 and the WTO Agreement on 
Agriculture prohibited the use of reference prices. 
147. The representative of Lithua nia said that raw sugar (HS co de 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) by tariffs of 
87 per cent, and confectionery made  of sugar  by tariffs of 25 per cent (HS code 1704.10.11) and 
40 per cent (1704.90.51, 1704.90.61-1704.90.99).  Processo rs were provided seasonal soft credits for 
purchases of sugar beet.  Excise taxes on sugar and produc ts containing more than 20 per cent sugar had 
been introduced on 1 November 1998;  the tax reve nue was earmarked for s ugar beet farmers to 
compensate for reductions in domestic purchase prices.  Imports of sugar could also take place under tariff-rate quotas, with no prior need  to exhaust reserves of domestic sugar.  A previous requirement to 
this effect had been abolished in accordance with the Amendment to the Law on Sugar of 8 July 1999.  
The Amendment had also eliminated the exemption fo r sugar producers from provisions of the Law on 
Competition, and the minimum import pri ces on raw sugar (effective 1 April 2000). 
148. Lithuania's commitments on agricultural tari ffs, on domestic support and export subsidies for 
agricultural products are in the Schedule of Co ncessions and Commitments on Goods annexed to 
Lithuania's Protocol of Accession to the WTO.] 
[to be completed] 
Trade in Civil Aircraft
 
149. The representative of Lithuani a said that Lithuania had implemented the Agreement on Trade in 
Civil Aircraft without exce ptions from 10 January 2000.  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 51 
 
 
 150. The representative of Lithua nia confirmed that Li thuania 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  
151. Some members of the Working Party asked Lit huania to describe its system of protection of 
intellectual property in the light of the WTO Ag reement on Trade-Related Aspects of Intellectual 
Property Rights (TRIPS) and indicate  areas which would be subject to new or revised legislation.  A 
member noted that Lithuania's intellectual property rights regime was still being developed and that the current regime did not meet all th e requirements of the WTO, and reque sted Lithuania to accelerate its 
legislative process in order to ensure full implem entation of the TRIPS Agreement at the time of 
accession to the WTO.  
152. Lithuania provided a note on TRIPS to th e Working Party in document WT/ACC/LTU/7 
(Annex I), a note on progress in implem enting the TRIPS Agreement in document 
WT/ACC/SPEC/LTU/10, and a checklist on implementation of the TRIPS Agreement in document WT/ACC/LTU/42.  The status of Lithuanian legi slation and the corresponding WTO requirements, and 
steps taken to address obligations under the TRIPS Ag reement are presented in Table 13.  In response to 
specific questions, the representati ve of Lithuania said that nation al legislation  - including laws on 
copyright and related rights, patent s, industrial design, trademarks and service marks, layout-designs 
(topographies) of integrated circu its, the Law on Competition and the Criminal Code - corresponded to 
the basic provisions of the TRIPS Agreement.  Lithua nia's legislation on intellec tual property contained 
no exceptions to the principle of national or MFN tr eatment.  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. 
153. Lithuania had joined the World Intellectual  Property Organization (WIPO) in 1992 and the 
Paris Convention in 1994.  On 17 September 1996, the Se imas (Parliament of Lit huania) had ratified the 
Nice Agreement Concerning the International Classification of Goods and Services for the Purposes of Registration of Marks of 15 June 1957, which had en tered into force in Lithuania on 22 February 1997, 
and on 29 April 1997 the Seimas had ratified the Protocol Relating to the Madrid Agreement 
Concerning the International Registration of Mark s, entering into force on 15 November 1997.  In  
November 1997, the Seimas had ratified the Tradem ark Law Treaty (TLT), which had entered into 
force on 27 April 1998, and the Budapest Treaty on the International Recognition of the Deposit of 
Micro-organisms for the Purposes of the Patent Procedure (1997, modified in 1980), which had 
entered into force on 9 May 1998.  In the area of  copyright and related rights, Lithuania had acceded WT/ACC/SPEC/LTU/8/Rev.5 
Page 52  
 
 to the Berne Convention for the Protection of Lite rary and Artistic Works (Paris Act, 1971) in 1994 
and had ratified the Convention in 1996.  Lit huania had ratified the Rome Convention for the 
Protection of Performers, Producers of Phonograms and Broadcasting Organizations at the end of 
1998 (which had entered into force on 22 July 1999), and the Geneva Convention for the Protection of 
Producers of Phonograms against Unauthorized Duplication of their Programs in 1999.  Lithuania had also concluded international agre ements on intellectual property with Denmark, Norway, Switzerland, 
the United Stated and the European Patent Organization. 
154. Parliament had adopted a Law on Copyright and Related Rights on 18 May 1999.  The Law 
corresponded to the regulations of international conventions on copyright and neighbouring rights and 
the requirements of the TRIPS Agre ement, and included a system of  collective administration  and 
protection of copyright an d related rights.  The Association of Performers and Producers of Phonograms 
had been established;  authors, artists and creators had founded th e Lithuanian Copyright Protection 
Association (LATGAA) which was concluding agreements with si milar organizations in other 
countries.  Broadcasting organiza tions maintained copyright on radio and television programmes 
according to Article 47 of the Law.  The Law provided rental rights for cinematographic works, 
computer programmes and sound recordings.  In his view, the protection of the rights of performers, 
phonogram producers and broadcasting organizations corresponded fully to the requirements of 
Article 14 of the TRIPS Agreement. 
155. Minor amendments to the Law on Trademarks  and Service Marks a nd the Law on Industrial 
Design to adjust to requirements of the TRIPS Agreement would be enacted in 2000.  Lithuania 
considered the exceptions in its law to the rights co nferred by a trademark to be in compliance with 
Article 17 of the TRIPS Agreement.  Geographical indications were in part protected under the new 
Law on Competition.  The provisions complied, in his view, with the requirements of Article 22 of the 
TRIPS Agreement. 
156. The representative of Lithuani a said that the Law on Patents appeared to require amendments, 
to be introduced in the first half of 2000, to inco rporate the provisions of the TRIPS Agreement and the 
Paris Convention regarding compulsory licensing of pa tented inventions.  Disputes regarding working 
or non-working of a patent could be settled in Cour t.  Generally, importa tion of a patented product 
should be considered equivalent to the use of a patent. 
157. The representative of Lithuania said that the Ministries and institutions involved in the 
development of intellectual propert y rights legislation were accelera ting their work.  On 16 June 1998, 
Parliament had adopted a Law on the Legal Protection of Topographi es of Semiconductor Products, 
conforming with Articles 35 to 38 of the TRIPS Agreement.  Th e Law had entered into force on  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 53 
 
 
 1 December 1998.  The Law on Legal Protection of Computer Programs  and Data Bases (subsequently 
incorporated in the Law on Copyright and Related Rights) and the Law on Plant Variety Protection and 
Seed Growing had been adopted in 1996.  The latter  Law assured the protecti on of all plant varieties 
registered in Lithuania and guarant eed the rights of variety owners.  Lithuania was not yet a member of 
the International Plant Variety Protection Organiza tion (UPOV), but would join following the adoption 
of appropriate amendments to the Law on Plant Variety Protection and Seed Growing. 
158. Intellectual property rights were enforced  by civil action, unles s 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 Laws on Trademarks, Patents, Topographies of 
Semiconductor Products, and Industria l Design contained specific provi sions regarding owners' rights to 
stop infringements and claims for compensation;  reme dies against violations of copyright and related 
rights were provided under the Civil Code, the Crim inal Code and the Code of Administrative Law 
Infringements.  Lithuania was working to improve its  system of administrative, civil and criminal 
remedies for infringements of all types of intellec tual property, and would am end the Criminal Code.  
With due regard to this fact, the Law on Amendment and Supplement to the Code of Administrative 
Infringements had been passed in February 1998.  A Law on Amendment and Supplement to the 
Criminal Code and the Code of Criminal Procedur e had been drafted and, once adopted, would ensure 
implementation and effective enforc ement of the Law on Copyright a nd Related Rights.  The Law on 
Copyright and Related Rights included a separate Ar ticle on provisional measur es.  Border enforcement 
of copyright and other intellectual property would be strengthened under a new Law on the Protection of 
Intellectual Property for Importe d and Exported Goods, to be introduced in 2000.  A special unit 
responsible for the protection of inte llectual property rights had been established in the Department of 
Tax Police (Order No. 238 of 6 June 1998 of the Ministry of Interior Affairs). 
159. The representative of Lithuani a confirmed that his Government would fully apply the provisions 
of the Agreement on Trade-Related As pects of Intellectual Property Ri ghts (TRIPS) by the date of its 
accession to the WTO without recour se to a transitional period.  The Working Party took note of this 
commitment. 
Policies Affecting Trade in Services  
160. The representative of Lithua nia 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.  The documentation outlined the market structure, 
regulatory framework and policies affe cting services generally or in relation to specific sectors.  
Concerning the development of servic es-related legislation, he added that Lithuania had adopted several WT/ACC/SPEC/LTU/8/Rev.5 
Page 54  
 
 new laws or amendments, notably the Law on Insu rance, Law on Telecommunications, Law on Public 
Trading of Securities, amendments and supplemen ts to the Law on Commer cial Banks, Law on 
Construction, Law on Mass Media, the Civil Aviation Code, Inland Transport Code, Road Transport 
Code, Railway Transport Code, the Law on Tourism, the Law on Pensi on Funds, the Law on Audit, and 
the amendment and supplement to the Law on Enterpri ses (provisions concerning  the establishment of 
branches). 
161. The representative of Lithuania said that require ments for the registration of an enterprise were 
the same irrespective of the nati onality of ownership, except that a foreign investor would need to 
submit certificates of incorporation in the home country for legal persons, documentation on the financial condition/status, and verifica tion of the origin of the foreign capital.  Foreign investment was 
permitted in all sectors with the exception of areas related to defen ce and national security;  production 
and sale of narcotic substances, a nd other non-medicinal or poisonous su bstances having similar effects;  
cultivation and sale of crops containing narcotic substa nces or substances with similar effects; and the 
organization of lotteries.  The State Post Office was the only service supplier with monopoly or 
exclusive rights;  its rights concerned collection a nd delivery of letters, postcar ds and printed matter;  
installation of letter coll ection boxes;  and issuance of postage st amps.  The State Po st Office did not 
have exclusive rights on courier services.  The former  State enterprise "Lietuvos Telekomas" had been 
privatized, but would hold exclusive rights to provi de telecommunication servic es until 1 January  2003. 
162. The representative of Lithuania provided info rmation on licensing of business activities in the 
area of services in Table 3.2.  In addition, th e establishment of a commercial bank required a licence 
issued by the Bank of Lithuania. 
163. Lithuania did not maintain any specific measures of horizontal nature which would limit market 
access or national treatment in the financial servic es sector.  Permission from the Bank of Lithuania was 
required for foreign banks to establ ish bank branches and representativ e offices.  According to the Law 
on Commercial Banks of 21 December 1 994, 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  and representative offices.  An 
individual acquiring 10 per cent or more of the sh ares in a bank without permission from the Bank of 
Lithuania would not be entitled to vote at the shareholders' general meeting.  Minimum capital 
requirements were the sa me for domestic and foreign banks;  the minimum from 1 January 1998 had 
been set at ECU 5 million (in Lita s equivalent).  Lithuania intended  to approximate its banking laws 
with European Communities' directives which could le ad to further liberalization.  Foreign securities 
firms could conduct business through any lega l form of enterprise in Lithuania.  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 55 
 
 
 164. Insurance services were provided by 32 companie s, of which 4 included foreign participation.  
The State Insurance Company had held exclusive righ ts to issue all types of mandatory insurance and 
pensions insurance;  the company had been privat ized under a new Law on Insurance.  The new Law  
would codify the situation under which all exclusiv e rights for the State Insurance Company had been 
eliminated.  The Law enabled foreign insurance co mpanies to established wholly-owned companies, 
joint-ventures or subsidiaries provided the fore ign insurance company had permission from its own 
Government to conduct insurance activities in foreig n countries.  Foreign financial institutions were 
permitted to deliver transportation insurance (maritime and aviation) an d reinsurance services across the 
border.  Insurance inter-mediation on behalf of foreign insurance companies was allowed for 
intermediaries registered in Lithuania.  The re presentative of Lithuania indicated that an MFN 
exemption for insurance services, providing reciprocity treatment for commercial presence, had been 
deleted from Lithuania's list of MFN exemptions as a result of an amendment to the Law on Insurance. 
165. 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 countries 
regarding the recognition of qualifications.  Qualific ation requirements for aud itors in the country of 
origin of the auditors or auditing companies should not be lower than in Lithuani a.  Legal services were 
regulated by the Ministry of Justi ce and could be provided by advocat es and lawyers licensed to engage 
in such activities. Foreign lawyers could provide se rvices 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 citi zens of Lithuania and included in a list  of attorneys.  Foreign attorneys could 
represent clients before the Courts in Lithuania only if provided under bilate ral agreements on legal 
assistance.  Agreements we re in force with Belarus,  Estonia, Kazakstan, La tvia, Moldova, Poland, the 
Russian Federation, [Turkey], Ukraine, United Stat es and Uzbekistan.  The limitations on citizenship, 
which were applicable to advocates (representing clients before the Cour ts), were not applied to lawyers 
wishing to engage in other lawyers' practices.   
166. The Law on Legal Status of  Aliens had been approved on 17 December 1998.  The Government 
established an annual quota on the number of forei gn employees in accordance with the Regulation on 
Temporary Employment of Foreigne rs of 13 February 1995.  Employ ers 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, executives and specialists) working 1 to 2 years with a possibility of extension, or to business vi sitors working no longer than 3 months, for purposes 
related to the negotiation of contracts, training of staff, installing equipment and similar activities. WT/ACC/SPEC/LTU/8/Rev.5 
Page 56  
 
 167. Regarding  procurement of se rvices by government agencies, the representative of Lithuania 
said that the new Law on Public (Government) Procurement, which had entered into force on 
1 October 1999, included no provisions on preferences for local suppliers. 
168. The representative of Lithuania said that his Government was working with responsible 
Ministries, organizations a nd Parliament to ensure th at WTO requirements were reflected in new laws 
and regulations.  Lithuania's servic es regime did not discriminate am ong services or service supplier 
countries (Article  II) except as provided in economic integr ation agreements meeting the standards of 
Article V of the GATS.  The Government provided full information on laws and regulations in the 
Official Gazette as requi red under Article III, and was drafting qu alification requirements, technical 
standards and licensing requirements in accordance with the requirements of Article VI. 
169. [Lithuania's Schedule of Specif ic Commitments on Services is an nexed to its draft Protocol of 
Accession reproduced in the Appendix to this Report (see paragraph [182] below).  This Schedule of 
Specific Commitments on Services contains th e legally binding market-access commitments of 
Lithuania in respect of services.] 
[to be completed] 
Transparency
 
Publication of information on trade  
170. The representative of Lithuania said that according to Lithuanian  procedures legal acts could not 
be enforced until they had been published in the Of ficial Gazette.  According to the Law on Order of 
Publishing and Entry into Force of Legal Acts of 6 Ap ril 1993, legal acts entered into force the day after 
their publication in the Official Gazette, or on a later da te stipulated in the legal act. 
171. The representative of Lithuani a stated that all laws, regula tions, rulings, decrees and other 
normative acts related to trade were  to be promptly published in the Official Gazette, and that no law, 
rule, etc. related to international trade would become  effective prior to such publication.  He further 
stated that Lithuania would impl ement fully Article X of the GATT 1994, Article III of the GATS, and 
the other transparency requirements in WTO Ag reements requiring notific ation and publication. 
Notifications  
172. The representative of Lithuania said that at the latest upon entry into force of the Protocol of 
Accession, Lithuania would submit all notifications (oth er than those required to be made on an ad hoc 
basis) required by any Agreement constituting pa rt of the WTO Agreement.  Any regulations  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 57 
 
 
 subsequently enacted by Lithuania which gave effect to the laws enacted to implement any Agreement 
constituting part of the WTO Agreement would also c onform to the requirements of that Agreement.  
The Working Party took note of this commitment. 
Trade Agreements  
173. Some members of the Working Party asked Lith uania to provide information on bilateral or 
regional agreements affecting tr ade and investment.  Some member s wondered whether the free trade 
agreements covered substantially all trade.  Lithuani a was asked to notify its free trade agreements.  A 
member requested a copy of the Trilateral Ag reement on Agricultural Trade between the Baltic 
countries, including the specific ma rket access provisions for the re moval of barriers among the three 
countries. 
174. The representative of Lithuania said that Lithuania had negotiated Free Trade Agreements 
(FTA's) with the European Communities, the Europe an Free Trade Associa tion (EFTA), Estonia and 
Latvia (a trilateral agreement), Ukraine, Poland, Slovenia, the Czech Republic, Slovakia, Turkey and 
Hungary.  Lithuania intended to conclude free tr ade agreements with all CEFTA countries.  A Free 
Trade Agreement between Lithuania, Estonia and Latv ia, covering industrial pro ducts, had entered into 
force on 1 April 1994 and a second part of the Agreem ent, on agricultural products, on 1 January 1997.  
Together, the two parts of the FTA provided for free trade (no interi m measures) at zero tariffs among 
the Baltic States. 
175. Trade agreements providing for MFN treatment (conventional duties) ha d been concluded with 
Australia, Belarus, Bulgar ia, China, Cyprus, Cuba, Georgia, Hungary , India, the Republic of Korea, [the 
Philippines], Romania, the Russian Federation, Uz bekistan, Venezuela and Vietnam.  Conventional 
MFN duties were also applied on imports from Canada , Japan, Kazakstan, Mold ova, Tadjikistan and the 
United States.  Goods originating in other countries were  subject to autonomous customs duties.  
Agreements on investment promoti on and protection had been conclu ded with [Argentina], Austria, 
China, the Czech Republic, Denmark, Estonia, Fi nland, France, Germany, Greece, Israel, Italy, 
Kazakstan, Republic of Korea, Latvia, Netherlands, Norway, Poland, Romania, Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom, Venezuela [and Vietnam].  Lithuania had also 
concluded an agreement with the Multilateral Investment Guarantee Agency. 
176. The representative of Lithuania said that th e free trade agreements co vered substantially all 
trade.  Under the Lithuania/European Communities Agreement, tariffs would nevertheless remain on 
some agriculture and fishery products after the six-ye ar transitional period to implement the agreement.  
This FTA had already been notified by the Europ ean Communities under Article XXIV.  Preferential 
treatment was granted in the form of tariff-rate quotas for some prod ucts;  quota amounts were listed in WT/ACC/SPEC/LTU/8/Rev.5 
Page 58  
 
 Annex XIII, and the respective in-quo ta tariff rates in Annex XII, of the Free Trade Agreement.  Tariff 
quotas in the context 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.   The tariff-rate quotas concerned tariff positions 
HS 0201, 0202, 0203, 0406 and 1601. 
177. The Free Trade Agreements with the European Communities and EFTA States were 
asymmetric, but only for industrial pr oducts.  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 States included agricultural products, but the trade regime was based on reciproc al concessions from the 
MFN level.  The FTA with EFTA St ates had already been notified by EFTA under Article XXIV.  The 
FTA with Ukraine stipulated MFN tr eatment for the majority of agri cultural products, for the remaining 
items the tariff was zero.  The Agreement included Annexes on rule s of origin and administrative 
cooperation which had been signed in February 1994.   New rules of origin were in preparation and 
would be similar to those established in the FTA's with the European Communities, EFTA States and 
CEFTA countries.  The Parties of the Agreement comm itted to ensure free transit of goods through their 
customs territory.  He stated that the Agreement with  Ukraine was in conformity with the provisions of 
GATT 1994.  Some members requested L ithuania to supply the full text of  its Agreement with Ukraine.  
The representative of Lithuania repl ied that no English version of the Agreement existed, and therefore 
provided a summary of the Free Trade Agreement with Ukraine to the Working Party.  He added that all 
FTA's (except those with Ukraine and Hungary) had been notified to the WTO Secretariat. 
178. A member noted that Lithuani a applied export taxes which were differentiated according to the 
market of destination and wondered whether Lithua nia intended to maintain this practice.  The 
representative of Lithuania replied that Lithuania maintained some e xport duties on a bilateral basis in 
connection with the Free Trade Ag reements with the European Commu nities;  the Czech Republic;  
Slovakia;  Slovenia;  a Trilateral Free Trade Agreement between Lithuania, Latvia and Estonia;  Turkey;  and Hungary (Table 10.2).  The Free Trade Agreemen t with Poland also allowed the possible use of 
export duties.  Exports of the affe cted products had been prohibited at the time of conclusion of these 
Free Trade Agreements and the introduction of export  duties in bilateral trade had thus been a step 
towards liberalization of trade.  He added th at, effective 10 January 2000 (in accordance with 
Government Resolution No. 2 of 4 January 2000), e xport duties had been eliminated on all products 
except raw hides and skins, for which the bilateral du ties had been reduced to the new general rate of 
15 per cent.  The preferential duties were thus now eq ual to the non-preferential rates.  [He stressed that 
all export duties applied on the basi s of bilateral agreement would be  eliminated by 1 January 2001.]  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 59 
 
 
 179. Preferential rules of origin we re 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.  Certificates of 
preferential origin were issued by the Customs authorities according to Government Resolution No. 
1077 of 1 October 1997 "On the Order of Determinati on of the Origin of Goods and on Certificates of 
Origin (General Form)".  Simplified procedures ha d been established in the appropriate Protocols on 
the Rules of Origin in the Free Trade Agreements  concluded by Lithuania, and were used when 
invoice declarations (i.e. declarations of preferen tial origin given by the exporter on an invoice, a 
delivery note or any other commercial document describ ing the products concerned in sufficient detail 
to enable their identification) ha d been made by approved exporters. 
180. The representative of Lithuania stated that hi s Government would observe the provisions of the 
WTO including Article XXIV of th e GATT 1994 and Article V of the GATS in its trade agreements, 
and would ensure that the provisions of the WTO Ag reements for notification,  consultation and other 
requirements concerning pref erential trading systems, free trade areas and customs unions of which 
Lithuania is a member are met from the date of accession.  The Working Party took note of this 
commitment. 
Conclusions  
181. The Working Party took note of the explanatio ns and statements of Lithuania concerning its 
foreign trade regime, as reflecte d in this Report.  The Working Party took note of the commitments 
given by Lithuania in relation to cer tain specific matters which are re produced in paragraphs 19, 22, 29, 
40, [43], 52, 55, 62, 66, 76, 77, 84, 89, 95, [100], 103, 111, 120, 122, 130, 133, 135, 138, 150, 159, 172, 
and 180 of this Report.  The Working Party took note that these assurances a nd commitments had been 
incorporated in paragraph 2 of the Protocol  of Accession of Lithuania to the WTO. 
182. Having carried out the examination of the forei gn trade regime of Lithuania and in the light of 
the explanations, commitments and concessions made by the represen tative of Lithuania, the Working 
Party reached the conclusion that Lithuania be invited to accede to the Marrakesh Agreement 
Establishing the WTO under the provisions of Articl e XII.  For this purpose, the Working Party has 
prepared the draft Decision and Protocol of Access ion reproduced in the Appendix to this Report, and 
takes note of Lithuania's Schedule of Specific Commitments on Services (document 
WT/ACC/LTU/.......) and its Sche dule of Concessions and Co mmitments on Goods (document 
WT/ACC/LTU/..........) that ar e annexed to the Protocol.  It is propos ed that these texts be adopted by the 
General Council when it adopts the Report.  When the Decision is adopted, the Protocol of Accession 
would be open for acceptance by Lithuania which woul d become a Member thirty days after it accepts WT/ACC/SPEC/LTU/8/Rev.5 
Page 60  
 
 the said Protocol.  The Working Party agreed, therefore, that it had completed its work concerning the 
negotiations for the accession of Lithuania to the Marrakesh Agreement Establishing the WTO. 
[to be completed]  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 61 
 
 
  
APPENDIX  
 
 
ACCESSION OF LITHUANIA  
  
Draft Decision
 
 
  The General Council, 
 
 Having regard
 to the results of the negotiations direct ed towards the establishment of the terms 
of accession of the Republic of Lithuania to the Marrakesh Agreement Esta blishing the World Trade 
Organization and having prepared a Prot ocol for the Accession of Lithuania, 
 
 Decides , in accordance with Article XII of the Marrakesh Agreement Establishing the World 
Trade Organization, that the Republic of Lith uania may accede to th e Marrakesh Agreement 
Establishing the World Trade Organization on the terms set out in the said Protocol. WT/ACC/SPEC/LTU/8/Rev.5 
Page 62  
 
 PROTOCOL OF ACCESSION OF LITHUANIA
 
TO THE MARRAKESH AGREEMENT ESTABLISHING  
THE WORLD TRADE ORGANIZATION  
 
Draft  
 
 The World Trade Organization (hereinafter referr ed to as the "WTO"), pursuant to the approval 
of the General Council of the WTO accorded under Article XII of the Marrakesh Agreement 
Establishing the World Trade Organiza tion (hereinafter referred to as the "WTO Agreement"), and the 
Republic 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/... (herei nafter referred to as th e "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, Lith uania 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 instrume nts as may have entered into force before the date 
of entry into force of this Protocol.  This Protoc ol, which shall include the commitments referred to in 
paragraph [181] of the Working Party Report, sha ll be an integral part of the WTO Agreement. 
 
3. Except as otherwise provided for in the pa ragraphs referred to in paragraph [181] of the 
Working Party Report, those obligations in the Mu ltilateral Trade Agreements annexed to the WTO 
Agreement that are to be implemente d over a period of time starting with the entry into force of that 
Agreement shall be implemented by Lithuania as if  it had accepted that Agreement on the date of its 
entry into force. 
4. Lithuania may maintain a measure inconsistent  with paragraph 1 of Ar ticle II of the GATS 
provided that such a measure is recorded in the list of  Article II Exemptions annexed to this Protocol and 
meets the conditions of the Annex to the GATS on Article II Exemptions.  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 63 
 
 
  
Part II - Schedules  
 
5. The Schedules annexed to this Protocol shall become the Schedule of Concessions and 
Commitments annexed to the Genera l Agreement on Tariffs and Trade 1994 (hereinafter referred to as 
the "GATT 1994") and the Schedule of Specific Co mmitments annexed to th e General Agreement on 
Trade in Services (hereinafter referred to as "GATS") relating to Lithuania.  The staging of concessions 
and commitments listed in the Schedules shall be implemented as specified in the relevant 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 Con cessions and Commitments 
annexed 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 th e thirtieth day following the day of its acceptance. 
 
9. This Protocol shall be deposited with the Dire ctor-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 eac h Member of the WTO and Lithuania. 
 
10. This Protocol shall be regist ered in accordance with  the provisions of Article 102 of the Charter 
of the United Nations.  11. Done at Geneva this ... day of  .... two thousa nd ......, in a single copy in the English, French and 
Spanish languages each text being authentic, except that a Schedule annexed hereto may specify that it 
is authentic in only one or more of these languages. WT/ACC/SPEC/LTU/8/Rev.5 
Page 64  
 
   
 
ANNEXES 
 
[to be completed]  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 65 
 
 
 ANNEX 1 
 
Laws, Regulations and Other Information Pr ovided to the Working Party by Lithuania  
 - Memorandum of Economic Policies of the Govern ment of the Republic of Lithuania for the 
period 1 October 1994 a nd 30 September 1997; 
- Law on Taxes on Profits of Legal Persons of 31 July 1990, No. I-442; - Law on Taxes on State Natural Resour ces of 21 March 1991, No. I-1163; 
- Law on the Credibility of the Litas of 17 March 1994; - Law on Foreign Currency in the Republic of Lithuania of 7 July 1993, No. I-202; 
- Company Law of 5 July 1994, No. I-528; 
- Law on Enterprises of 8 May 1990, No. I-196; - Law No. I-196 of 8 May 1990 On Enterprises; - Law on Small Enterprises of 20 December 1991, No. I-2125; - Cooperative Law of 1 June 1993, No. I-164; 
- Law on Partnerships of 16 October 1990, No. I-676; 
- Law on Enterprise Bankruptcy of 15 September 1992, No. I-2880; 
- Law on Investment No. VIII-1312, 7 July 1999; - Law on Foreign Investme nt in the Republic of Lithuania of 29 December 1990, No. I-905; 
- Law on Foreign Capital Investment in the Re public of Lithuania No. I-938 of 13 June 1995; 
- Law on Spheres of Business Activity wherein Fo reign Investment is Pr ohibited or Limited of 
2 May 1991, No. I-1276; 
- Law on Privatization of Stat e-Owned and Municipal Property, No. I-1001, 4 July 1995; 
- Law on Prices of 26 July 1990, No. I-413; - Law on Competition of 15 September 1992, No. I-2878; - Law on Competition, 23 March 1999, No. VIII-1099; 
- Law on Administrative Proceedings No. VIII-1029 of 14 January 1999; 
- Resolution No. 806 of 24 July 1997 On the Tari ff and Non-Tariff Regul ation of Export and 
Import of Goods and Improveme nt of Establishment of Cust oms Tariffs and Procedure of 
Change; 
- Law on Alcohol Control No. I-857 of 18  April 1995 (as amended by 3 July 1995); 
- Law No. I-857 of 18 April 1995 On Alcohol Control; 
- Law on Alcohol Control, 18 April 1995 No . I-857 as amended by 10 December 1998, No. 
VIII-961; 
- Government Resolution No. 1459 On Licensi ng Import, Wholesale and Retail Trade in 
Alcoholic Products of  17 November 1995; 
- Government Resolution No. 559 of 5 June 1997 On Licensing the Importation, Wholesale and 
Retail Trade in Alcoholic Products; 
- Law on Tobacco Control No. I-1143 of 20 December 1995;  - Government Resolution No. 1622 On Licensing th e Production of Tobacco and its Products and 
their Import into the Republic of  Lithuania of 27 December 1995; 
- Government Resolution No. 1221 On Licensi ng Wholesale and Retail Trade in Import and 
Export of Oil Products and Retail Trad e in Liquid Gas of 14 September 1995; 
- The Customs Code of the Republic  of Lithuania of 18 April 1996; 
- Law on Customs Tariffs of 27 April 1993, No. I-138; - Law No. VIII-633 of 19 February 1998 on Customs Tariffs; - Schedule of tariffs approved by the Lithuanian Government's Resolution No. 443 
(16 June 1993); 
- Resolution No. 1367 of 30 December 1994 On the Establishment of the Structure of Customs 
Tariffs; 
- Government Resolution No. 1114 On the Approv al of Customs Duties of Bound Tariff Rates 
for the Imported Goods of 26 September 1996; WT/ACC/SPEC/LTU/8/Rev.5 
Page 66  
 
 - Government Resolution No. 1245 of 20 Oct ober 1998 Amending Government Resolution No. 
268 of 24 March 1997 on the Procedure of Expor t and Import Regulation in the Republic of 
Lithuania; 
- Government Resolution No. 641 of 24 May 1999 on Partial Amendments to Resolution 
No. 268 of 24 March 1997 of the Government of the Republic of Lithuania on the Procedure 
for Export and Import Regulation in the Republic of Lithuania; 
- Government Resolution No. 635 On the General Or der of the Administration of Tariff Quotas 
for Implementation and Exporta tion of Goods of 8 May 1995; 
- Law on Stamp Duty No. I-508 of 23 June 1994; - Government Resolution No. 774 of 23 June  1998 on the Amendment of Government 
Resolution No. 1123 of 11 November 1994 on the Approval of Stamp Duty Rates and the 
Procedure for Payment and Refund of Stamp Duty; 
- Government Resolution No. 1169 of 29 Se ptember 1998 on the Amendment of Government 
Resolution No. 1123 of 11 November 1994 on the Approval of Stamp Duty Rates and the 
Procedure for Payment and Refund of Stamp Duty; 
- Resolution on Partial Amendments to Reso lution No. 1123 "On the Approval of Stamp Tax 
Tariffs and Procedure of Stamp Tax Paymen t and Refunding" No. 601 of 11 November 1994; 
- Information on consular fees levied in ac cordance with the Law of 16 November 1994; 
- Law on Excise Taxes of 12 April 1994, No. I-429; - Law No. I-429 of 12 April 1994 On Excise Duties; - Law on Excise Duties No.I-429 of 12 April 1994, as amended on 23 December 1999 (No. VIII-
1494); 
- New excise duties (January 1995); - Law No. I-429 of 12 April 1994 on Excise Duties (as amended by Law No. VIII-901 of 
20 October 1998); 
- Law on Excise Duties, 12 April 1994, No. I-429 as amended by 21 December 1998, No. VIII-
982; 
- Law on Excise Duties dated 12 April 1994 No .I-429, as amended on 8 July 1999 No. VIII-
1321; 
- Government Resolution No. 1297 of 4 N ovember 1998 Supplementing the Government 
Resolution No. 302 of 25 April 1994 on Excise Taxes; 
- Resolution of the Government of the Republic  of Lithuania No. 1296 of 4 November 1998 on 
the Procedure for Withholding and Refund of Excise Tax and Approval of the List of 
Products which Contain Sugar; 
- Law on Value-Added-Tax of 22 December 1993, No. I-345; - Law No. I-345 of 22 Decembe r 1993 On Value-Added Tax; 
- Regime of Import/Export Regulati on in the Republic of Lithuania; 
- Government Decision on the Procedure of Co mmodity Export and Import Regulation in the 
Republic of Lithuania of 14 October 1994, No. 985; 
- Government Resolution No. 281 "On Partia l 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 Lithuani a on 14 October 1994" of 28 February 1995; 
- Law Concerning Control of Import, Transit an d Export of Strategic Goods and Technologies, 
No. I-1022, 5 July 1995; 
- Government Resolution No. 718 On the Restriction of Import of Certain Things (Goods) to the 
Republic of Lithuania, their E xport and Transit of 19 May 1995; 
- Republic of Lithuania, Minister of Agricu lture, Order No. 240, 9 November 1998, regarding 
the Procedure for Automatic Issuing of Import Permits (Licenses) for Agricultural and Food 
Products; 
- 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 Im ported Goods Used for their Customs Valuation 
Purpose of 25 June 1996 (unofficial translation);    WT/ACC/SPEC/LTU/8/Rev.5 
 Page 67 
 
 
 - Decree of the Government of the Republic of Lithuania No. 751 On Prices of Imported Goods 
Used for their Customs Valuation Purpose; 
- Government Resolution No. 751 On the Customs Assessment of Prices for Imported Goods of 
25 June 1996;  
- Government Resolution No. 504 of 24 April 1998 amending Government Resolution No. 751 
of 25 June 1996 "On the Prices of Import for their Customs Valuation"; 
- Government Resolution No. 748 of 9 June 1999  on the Approval of the Procedure of the 
Customs Valuation of Goods; 
- Government Resolution No. 1077 of 1 October 1977 on the Determination of Origin of Goods 
and on the Certificates of Origin of the General Form; 
- Law No. VIII-807 of 23 June 1998 on Anti-Dumping; 
- Draft Law on Countervailing Duties dated 1999; - Draft Law on Safeguard Measures; - Government Decision on More Stringent Regulatio ns 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, thei r Alloys, Scrap and Waste of 29 June 1994, 
No. 526; 
- Resolution on Temporary Economi c Measures to Facilitate the Export of Lithuanian Goods, 
Protect the Internal Market and Strengthe n Lithuania's Position Therein No. 1122 of 
17 September 1998; 
- Draft Law on Standardisation; 
- Government Resolution No 617 of 20 May 1999  "On Information Exchange in the Field of 
Standards, Technical Regulations a nd Conformity Assessment Procedures"; 
- Lithuanian Standards Board Order No 13 of 22 February 1999 (this document, which contains 
a part of the Code of Good Practice disciplines,  established procedure of drafting, approval, 
publication and revision of standards); 
- Law on Metrology No. I-1452 of 9 July 1996; - Law No. VIII-870 of 6 October 199 8 on the Conformity Assessment; 
- Law on Product Safety No. VIII-1206 of 1 June 1999; - Law on Mental Health Care No. I-924 of 6 June 1996; - Law on the Amendment to the Law on Health Ca re Institutions No. VIII-288 of 24 June 1997; 
- Law on Health System No. I-552 of 19 July 1994; 
- Resolution No. 1106 of 9 October 1997 On Approv al of the Procedure of the Importation of 
Foodstuffs into the Republic of Lithuania and Co ntrol of Their Quality and Non-Hazardness to 
Health; 
- Draft Law on Food; 
- Draft Law on Phytosanitary; 
- Law on Veterinary Activities No. I-2110 of 17 December 1991; 
- Government Decision on Veterinary and Sanitary  Requirements on Livest ock, their Products, 
Raw Materials and Fodder Import ed into the Republic of Lithua nia and Transported as Transit 
through its Territory of 27 April 1993, No. 284; 
- Veterinary requirements of the Republic of Lithuania for import, export and transit of livestock, 
poultry, animal products, ra w materials, feedstuffs; 
- Veterinary Requirements of the Republic of Lithuania for import, export and transit of 
livestock, poultry, animal products, raw materials, feedstuffs; 
- Law on Plant Protection No. I-1069 of 19 October 1995; - Law on the Protection of Plant Vari eties and Seed Cultivation No. I-1518 of 
17 September 1996; 
- Government Decision on the Approval of Ve getable Quarantine Regulations for Import and 
Export of Goods of Vegetable Origin to and fro m the Republic of Lithua nia and their Transit 
through the Territory of the Republic of Lithuania of 3 August 1993, No. 599; WT/ACC/SPEC/LTU/8/Rev.5 
Page 68  
 
 - Government Resolution No. 384 On the Appr oval of Quarantine Regulations for the 
Production, Transportation, Conservation, Sale an d Utilization of Plants  and Plant Products on 
the Territory of the Republic of Lithuania of 25 March 1996; 
- Law on Trade No. I-747 of 12 January 1995; - Law on the Fundamentals of Free Econo mic Zones, No. I-976, 28 June 1995; 
- Government Resolution No. 510 On Approvi ng Provisional Regulations of Government 
Procurement of 12 April 1995; 
- Law on Public Procurement No. I-1491 of 13 August 1996; - Law on the Amendment of the Law on Public  Procurement, No. VIII-1210, 3 June 1999; 
- Law on State Regulation of Economic Relations in Agriculture No. I-734 of 
 22 December 1994; 
- Law No. I-734 of 22 December 1994 On Stat e Regulation of Economic Relations in 
Agriculture; 
- Decree of the Government of the Republic of  Lithuania No. 788 On the Approval of the 
Programme for the Regulation of Agricultura l and Food Products Market and Export 
Promotion; 
- Law on Sugar No. I-867 of 27 April 1995; - Law on the Amendment of the Law on Sugar, No.VIII-1328, 8 July 1999; - Law No. VIII-1185 of 18 May 1999 on Copyright and Related Rights; - Draft Law on the Amendment of Article 71 of the Law on Copyright and Related Rights; - Law on Trademarks and Service Marks of 3 June 1993, No. I-173; 
- Draft Law Amending the Law on Tr ademarks and Service Marks; 
- Patent Law of 18 January 1994, No. I-372; - Draft Law on the Amendment of Articles 26, 39 and 40 and on the Invalidation of Article 38 of 
the Patent Law of the Republic of Lithuania; 
- Law on Industrial Design No. I-1006 of 4 July 1995; 
- Draft Law on Amending and Supplementing Article 5 of the Law on Industrial Design; 
- Law No. VIII-791 of 16 June 1998 on the Legal Protection of Topographies of Semi-
conductor Products; 
- Draft Law on the Protection of Intellectual Property in the Field of Import and Export of 
Goods; 
- Law on the Legal Status of Aliens, No VIII-978, 17 December 1998; 
- Law No. I-425 of 30 July 1990 on Stock Corporations; 
- Government Resolution No. 511 On Approving Regulations of Rendering Services of 
12 April 1995; 
- Government Decision on Registration of Repres entation Offices of Fo reign Enterprises and 
Banks in the Republic of Lithuania of 31 May 1991, No. 223; 
- Law on Commercial Banks No. I-720 of 21 December 1994; 
- Law on Insurance No. I-590 of 20 September 1990; - Law on Insurance No. I-1456 of 10 July 1996; - Draft Law amending the Law on Insurance (Articles 2, 7, 11, 17, 22, 27, 28, 29, 31, 37, 39, 42, 
43, 45, 46, 47, 60, 63, 66); 
- Law on Public Trading in Securities No. I-1169 of 16 January 1996; 
- Law No. VIII-744 of 9 June 1998 on Telecommunications; 
- Law on Communications No. I-1109 of 30 November 1995; - Law on Tourism No. VIII-667 of 19 March 1998; - Law No. I-119 of 6 April 1993 on Procedure of Publication and Coming into Force of Laws 
and other Legal Acts of th e Republic of Lithuania; 
- Free Trade Agreement between the Republic of Estonia, the Republic of Latvia and the 
Republic of Lithuania on Trade in Agri cultural Products of 16 June 1996; 
- Free Trade Agreement between the Repub lic of Lithuania and the Czech Republic; 
- Free Trade Agreement between the Repub lic of Lithuania and the Slovak Republic; 
- Free Trade Agreement between the Republic of Lithuania and the Republic of Slovenia;  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 69 
 
 
 - Agreement between the Government of the Ki ngdom of Norway and the Government of the 
Republic of Lithuania concerning Tr ade in Agricultural Products; 
- Free Trade Agreement between the Swiss C onfederation and the Re public 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 Co al and Steel Community, of the one part, and 
the Republic of Lithuania, of the other part; 
- Government Resolution No. 205 On Enactment of the Free Trade Ag reement between the 
Republic of Lithuania and the European Communities, the European Atomic Energy 
Community, and the European Coal and Steel Community of 8 February 1995; 
- Government Resolution No. 176 of 19 Fe bruary 1999 Concerning the Amendment of 
Government Resolution of 30 December 1998 No. 1524 Regarding the Implementation of the 
Europe Agreement Establishing an Associa tion Between the European Communities and 
Their Member States, of the One Part, and the Republic of Lithuania, of the Other Part; 
- Government Resolution No. 1524 of 30 Dece mber 1998 Regarding the Implementation of the 
Europe Agreement Establishing an Associa tion Between the European Communities and 
Their Member States, of the One Part, and the Republic of Lithuania, of the Other Part 
- Summary of the Free Trade Agreement Betw een the Republic of Lithuania and Ukraine; 
- Statistical data on imports into Lithuani a of agricultural and food products;  and 
- Statistical data on exports from Lith uania of agricultural and food products. 
 
  
Laws and Regulations provided to the Workin g Party by Lithuania during the accession process, 
 
but no longer valid (June 1999):  
 
- Law on Foreign Investme nt in the Republic of Lithuania of 29 December 1990, No. I-905; 
- Law on Spheres of Business Activity wherein Fo reign Investment is Pr ohibited or Limited of 
2 May 1991, No. I-1276; 
- Government Resolution No. 1459 On Licensi ng Import, Wholesale and Retail Trade in 
Alcoholic Products of  17 November 1995; 
- Government Resolution No. 1622 On Licensing th e Production of Tobacco and its Products and 
their Import into the Republic of  Lithuania of 27 December 1995; 
- Law on Customs Tariffs of 27 April 1993, No. I-138; - Schedule of tariffs approved by the Lithuanian Government's Resolution No. 443 
(16 June 1993); 
- Resolution No. 1367 of 30 December 1994 On the Establishment of the Structure of Customs 
Tariffs; 
- Government Resolution No. 1297 of 4 N ovember 1998 Supplementing the Government 
Resolution No. 302 of 25 April 1994 on Excise Taxes; 
- Government Decision on the Procedure of Co mmodity Export and Import Regulation in the 
Republic of Lithuania of 14 October 1994, No. 985; 
- Government Resolution No. 281 "On Partia l 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 Lithuani a on 14 October 1994" of 28 February 1995; 
- Government Resolution No. 449 On the Approval of the Order of Customs Valuation of Goods 
of 16 June 1993; 
- Government Decision on More Stringent Regulatio ns 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, thei r Alloys, Scrap and Waste of 29 June 1994, 
No. 526; WT/ACC/SPEC/LTU/8/Rev.5 
Page 70  
 
 - Government Resolution No. 510 On Approvi ng Provisional Regulations of Government 
Procurement of 12 April 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 Legal Protection of Computer  Programs and Databases No. I-1188 of 
30 January 1996; 
- Government Decision on Registration of Repres entation Offices of Fo reign Enterprises and 
Banks in the Republic of Lithuania of 31 May 1991, No. 223; 
- Law on Insurance No. I-590 of 20 September 1990;  and - Government Resolution No. 205 On Enactment of the Free Trade Ag reement between the 
Republic of Lithuania and the European Communities, the European Atomic Energy 
Community, and the European Coal and Steel Community of 8 February 1995. 
   WT/ACC/SPEC/LTU/8/Rev.5 
 Page 71 
 
 
  
[Table 1(a):  Information on the Pr ivatization Process of State Property  
 
First Stage of the Process  
(1 September 1991 - 31 December 1995) 
 
 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 founders 6,650 9,836.3 
3. Property included in privatization 
programmes, via signing the shares: 3,953 8,524.8 
3.1 - for the employees of the enterprises 2,077 1,223.6 
3.2 - percentage 52.5% 14.4% 
4. Privatized via signing the shares: 2,927 2,627.7 
4.1 - for the employees of the enterprises 1,887 860.5 
4.2 - percentage 64.5% 32.7% 
5. Comparing with those included in the 
programmes of the privatization (4:3) 74% 60% 
6. Property included into privatization 
programmes, via auctions 2,964 111.9 
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 14 485.8 
11. Property expected to privatize for hard 
currency 61 40.9 
12. Privatized for hard currency 47 28.0 
13. Total State property incl uded into privatization 
programmes (3+6+9+11) 6,993 9,176.9 
14. Privatized State property (4+7+10+12) 5,714 3,220.6 
15. Comparing with those included into 
privatization programmes (14:13) 81.7% 35.1% 
16. Comparing with total property included in a 
list of objects to be privatized (14:2) 85.9% 32.7% 
17. State capital purchas ed by investment joint-
stock companies  737.6 
18. Comparing with total privatized capital (17:14)  22.9% 
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.1063 803 284.5 
22. Comparing with total privatized property 
(21:14) 14.0% 8.83% WT/ACC/SPEC/LTU/8/Rev.5 
Page 72  
 
  Description Number of  objects 
(units) Capital  
(mln Litas*) 
23. Total privatized State capital (4+7+10+12+21)  3,505.1 
24. State property transferred to the investment 
fund 1,363 218.3 
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. The number of investment accounts opened for the population is 2.6 million for a total amount of 
10,504 million Litas (after indexation). 
2. 17 special enterprises were incl uded into privatization programme.  State capital of these enterprises 
 amounts to 3,825 million Litas. * 4 Litas = US$1 
]  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 73 
 
 
 [Table 1(b):  Information on the Privatization Process of State and Municipalities Property  
 
(Second stage of the process - privatization by cash) 
August 1996 – 31 December 1999 
(number of objects (units)) 
 
STEP UNDERTAKEN State property Municipal 
property Total 
Enterprises included in a list of objects to be 
privatized 2,128 972 3,100 
Enterprises later excluded from the list of objects 
to be privatized 44 78 122 
Enterprises included in privatizati on programmes: 1,213 1,094 2,307 
- public signing of shares 60 0 60 
- auctions 1,090 1,068 2,158 
- tenders 54 6 60 
- leasing 4 19 23 
- direct negotiations 5 1 6 
Suspended privatization 11 4 15 
Privatized enterprises: 697 667 1,364 
-  public signing of shares 36 0 36 
- auctions 628 650 1,278 
- tenders 32 3 35 
- leasing 0 14 14 
- direct negotiations 4 0 4 
Privatized enterprises    
- industry 130 12 142 
- transport 25 0 25 
- communication 4 0 4 
- construction 67 3 70 
- trade 200 151 351 
- public utilities 5 12 17 
- services 12 26 38 
- real estate 204 455 659 
- other 50 8 58 
Proceeds (Litas '000) 2,912,056 73,763 2,985,819 
] WT/ACC/SPEC/LTU/8/Rev.5 
Page 74  
 
 [Table 1 (c ):  Progress in Privatization of Up and 
 
Downstream Industries in Lithuanian Agriculture  
(by 1 November 1999) 
 
Type of Enterprise Number Statutory Capital structure 
(per cent) 
  capital 
(million 
Litas)  State Private Foreign 
*Agroservice and agro-chemistry   30 48.4 5.5 94.5 - 
Pure-strain stock breading 9 8.2 0.5 99.5 - 
**Meat processing 8 89.5 13.2 86.8 - 
***Dairy industry 22 359.1 12.8 87.2 - 
Fruit & vegetables processing 2 5.4 24.2 75.8 - 
Grain processing industry 20 149.7 7.9 92.1 - 
Sugar industry 4 131.0 0 100 58
Vegetable oil industry 2 12.3 0 100 - 
Soap industry 2 11.5 13.3 86.7 - 
Bread and bakery industry  11 58.4 41.8 58.2 - 
Confectionery. 6 72.0 3.6 96.4 59.2
****Alcoholic beverages industry 5 202.7 72.7 27.3 - 
Beer industry 7 191.9 1.8 98.2 46.6
 
*  State has shares in some enterprises. **  In some enterprises, the State share exceeds the average;  State shares constitute about 45,7 per cent  in 
the Stock company "Panevezio maistas" and 16 per cent in "Taurages maistas". 
***  In some enterprises, the State share exceeds the av erage, i.e. State shares constitute about 48.9 per  cent 
in the Stock company "Marijampoles pieno konservai", 62.6 per cent in "Svencioniu pienine",  21.8 per cent 
in "Siauliu pienas" and 15 per cent in "Kauno pienas". ****  Alcoholic beverages producing enterprises are on the list of special-purpose enterprises and 
 privatisation degree of such companies can not exceed 30 per cent 
] 
  WT/ACC/SPEC/LTU/8/Rev.5
 Page 75 [Table 2:  List of Goods and Services Subject to Price Control  
 
Code according 
 
HS NACE  
Items subject to price control  
Institution applying control  
Reasons and perspectives for control 
1 2 3 4 5 
- - Price of land sold by the State, price of land for 
computing of land tax and land lease tax Government 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 reservoirs Government Regulation is related to the State ownership for these 
items. 
 4010 Electricity production and transmission Suppliers of electricity in coordination with 
the independent State Prices and Energy Control Commission Controlled 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 State Prices and Energy 
Control Commission Controlled because of absence of sufficient 
competition in the market. 
 4030 Supply of heat and hot water Suppliers of heat and hot water in 
coordination with the independent State 
Prices and Energy Control Commission Controlled because of absence of sufficient 
competition in the market. 
  Prices and tariffs fo r goods and services of 
economic entities having a dominant position in the 
market:   
 4100 Extraction, distribution a nd cleaning of water Local govern ments Controlled because of a monopoly position of the 
enterprises. 
 6010 Transportation of passengers by local ra ilway routes Ministry of Communication Controlled becau se of a monopoly position of the 
stock company "Lithuanian railways". 
 6021 Transportation of passengers by other type of land 
transport (passenger buses of local and long distance 
routes) Ministry of Communication and Local 
governments Subsidised service, it is planned to liberalise these 
prices. 
 6022 
 Passenger transportation by taxi Local governments Controlled because of specific character of this 
service in order to avoid a taxi drivers abuse of 
unreasonably high prices. 
 6120 Transportation of passengers by local ship routes Ministry of Communication It is planned to liberalise prices for these services.  
 WT/ACC/SPEC/LTU/8/Rev.5 
Page 76 
Code according 
 
HS NACE  
Items subject to price control  
Institution applying control  
Reasons and perspectives for control 
1 2 3 4 5 
 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 Resolution No. 866, 21 06 1995) Ministry of Communication 
 
 Controlled because of a monopoly position of the 
airports. 
 6210 Transportation of passengers by air transport Ministry of Communication Regulated on basis of international agreements. 
 6322 Activities of navigation, ship ruling and anchorage, 
raising of sank ships (dues of the State Klaipëda Sea 
Port for: tonnage, canal, light house, 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 Communication Controlled 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 Subsidised services of social importance. 
 6420 Communication services (transmission by using 
international, inter town, local telephone lines,; 
switchboard services of telephone and telex, data 
transmission, line radio broadcasting) Ministry of Communication Services of social importance, controlled because of 
a monopoly position of the State enterprise 
"Lithuanian Telecom". 
 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 territory Local governments Controlled in order to protect consumers from 
unreasonably high prices 
 6340, 
10 Maximum tariffs for services provided by customs 
intermediators State Competition and Consumer Protection 
Office In order to abolish tariffs control the draft 
Government Resolution is under preparation now. 
 7492 Tariffs for apartment security services (Vilnius, 
Klaipëda) 
 Security Police Divisi ons under Chief Police 
Commissariats Services of specific charac ter, absence of sufficient 
competition.  
  WT/ACC/SPEC/LTU/8/Rev.5
 Page 77Code according 
 
HS NACE  
Items subject to price control  
Institution applying control  
Reasons and perspectives for control 
1 2 3 4 5 
 7422 Tariffs for services of legalisation of potential 
dangerous equipment, produced in Lithuania or 
imported, and tariffs for other similar services Technical Supervision Service under the 
Ministry of Social Security and Labour Services of specific charac ter, 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 assortment number of canned food Lithuanian Standards Board under the 
Ministry of Public Administration and Local 
Authorities Services of specific charac ter, absence of sufficient 
competition. 
 7422 Tariffs for issuing of quality certificates State Quality Inspection under the State 
Competition and Consumer Protection OfficeServices of specific charac ter, absence of sufficient 
competition. 
 851 Tariffs of health care services for persons, supported 
by government or local government and provided by government or local government health care 
institutions Ministry 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 institutions Ministry of Health Care Controlled in order to protect consumers from 
unreasonably high prices 
30.03; 
30.04  Maximum trade mark ups for medicines Ministry of Health Care Controlled in order to protect consumers from 
unreasonably high prices. 
 523 Retail prices for medicines and medical materials of 
necessary assortment (about 350 items) Ministry 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. 
- - The prices for standing wood from State-owned 
forests and the order of determination of these prices. Ministry of Environment Governing of State-owned wood. 
  Tariffs for real estate and registration of the rights 
into it Ministry of Environment; 
Ministry of Agriculture Controlled because of a monopoly position of the 
enterprises. 
  Methods of calculation of the prices for checking 
of measuring appliances  State Metrology Service Controlled b ecause of absence of sufficient 
competition in the market, services of specific 
character. 
  Tariffs for assaying, marking and issuing the certificates of quality of precious metals and their 
products Ministry of Finance Controlled b ecause of absence of sufficient 
competition in the market in order to protect 
consumers from unreasonably high prices  
 WT/ACC/SPEC/LTU/8/Rev.5 
Page 78 
Code according 
 
HS NACE  
Items subject to price control  
Institution applying control  
Reasons and perspectives for control 
1 2 3 4 5 
  Tariffs for issuing the certificates of quality of  precious stones Ministry of Finance Controlled b ecause of absence of sufficient 
competition in the market in order to protect 
consumers from unreasonably high prices 
  Tariffs and prices for se rvices provided by the 
State Government institutions State Competition and Consumer Protection 
Service Controlled in order to protect consumers from 
unreasonably high prices 
  Tariffs for providing notary services, preparation 
of projects of deals, providing of consultations and for the technical services Ministry of Justice Controlled in order to protect consumers from 
unreasonably high prices 
  Tariffs and prices for the goods and services 
provided by the enterprises of local municipality Executive institutions of local municipality Services of social importance, absence of sufficient 
competition. 
  Tariffs and prices for utility services provided to the population Executive Inspections of local municipality Services of social importance, absence of sufficient 
competition. 
] WT/ACC/SPEC/LTU/8/Rev.5 
 Page 79 
 
 
 [Table 3.1:  Licensing in Lithuania (Goods-Related Activities)  
 
 Business Activity Licence Required 
1. production of guns and their parts, ammunition, explosive 
chemicals, explosives, pyrotechni cs;  repair of guns unless the 
laws provide otherwise; Licence required for 
domestic and foreign interests.  Licences for activity  (see point 3) are 
available only for domestic 
interests. 
2. pharmaceutical activity;  
3. growing and selling plants which contain narcotic, psychotropic, 
deadly and poisonous substances, also manufacturing, importing, and exporting narcotic  and psychotropic substances, 
precursors and engaging in thei r wholesale and retail trade;  
4. production of alcohol produc ts 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 
and retail trade;  
7. purchasing of non-ferrous metals  and its alloys scrap and waste 
in Lithuania#  
8. purchasing of ferrous metals scrap and its waste in Lithuania#;  
9 purchasing and processing of prec ious metals waste, commercial 
activity related with the prec ious metals and jewels;*  
10. production of seals, stamps;    
11. production, transpor tation, wholesale trad e, and storage  of 
dangerous chemical, nuclear or ra dioactive materials listed by 
the Ministry of Environment;  al so collection, decontamination, 
storage and landfill of hazardous waste;  
12. import, export, wholesale and retail trade by the non-packed oil 
products listed by Government;   
13. import of pyrotechnics (listed by  the Ministry of Interior), civil 
weapons and ammunition;  wholesale and retail trade (excluding 
pistols and revolvers and ammuni tion thereof for self-defence);  
14. printing of securities and document forms  
15. import and production of biol ogical plants protection products 
and commerce in such products*  
16. importation of radionics appa ratus and electrical equipment 
which can diffuse radio waves*  
17. importation of colour copy machines*  
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 on 
Alcohol Control provides otherwise); Activities reserved for State 
and special enterprises 
2. production of, monetary sign s and coins, post-stamps;  
* licences have been changed into permits or certificat es, for which the procedure is more simple (fully 
 automatic). 
# licenses are not necessary when the scrap metal is bought up not for sale, but for production. 
 
 WT/ACC/SPEC/LTU/8/Rev.5 
Page 80  
 
 Table 3.2:  Licensing in Lithua nia (Services-Related Activities)
 
 
 Business Activity Licence Required 
1. prospecting of natural re sources; Licence required for 
domestic and foreign interests.  Licences for activity (see point 12) are 
available only for domestic 
interests. 
2. the exploitation of natural resources;  
3. repair of sports and hunting firearms, weapons;  
4. pharmaceutical activity*;  
5. provision of health care services;  
6. veterinary practice;  
7. lawyer practice, unless th e laws provide otherwise;  
8. engaging in teaching activities, provided that a certificate of 
education recognized by the St ate is issued upon completion*;  
9. performing State land surveyi ng, geodetic and topographical 
works*;  
10. provision of passenger trans portation services within the 
Republic of Lithuania, also in ternational passenger and cargo 
transportation services, unless ot her laws establish otherwise*;  
11. tourism services;  
12. organizing of lotteries*;  
13. setting up and operating genera l telecommunications network, 
providing telecommunica tions services*;  
14. establishment and operation of shooting-ranges, shooting-
galleries and hunting shooting-ranges*;  
15. mediation activity in public tu rnover of securiti es or advisory 
activity of third parties related to investment in securities;  
16. energetic activity;  
17. provision of shipbroker's services;  
18. lockman services;  
19. insurance activity*;  
20. research, preservation and restoration of immovable cultural 
values, preparation of conditions, projects and programs for these works; also preservation and restoration of movable 
cultural values;  
21. towing of ships; rescue and submarine technical works;  
22. bank or credit institution activity*  
23. construction activity  
1. 
 universal post services:  collectio n, distribution, transportation 
and delivery of post dispatches with weight not exceeding 2 kg, 
post parcels with weight not ex ceeding 10 kg, registered and 
estimated post dispat ches and parcels#; Activities reserved for State 
Post 
* the activities marked with asterisk require business activity licence.  Those activities not marked with an 
 asterisk only require permits or certificates, for which the procedure is more simple; 
# after the adoption of the new Law on Post (15 April 1999), only universal post services are reserved for 
 State Post.  
]  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 81 
 
 
 [Table 4:  Rates of Stamp Tax Established in Accordance with  
Government Resolution No. 1123 of 11 November 1994  
(with amendments No. 774 of 23 J une 1998 and No. 601 of 18 May 1999, which will enter into force on 
1 April 2000)  
 
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) 
(Llt.100,000 (US$25,000) from 
1 April 2000) 
(b) Alcoholic beverages except vodka Llt. 380,000 (US$95,000) 
(this type of licence will not be 
applied after 1 April 2000 ) 
(c) Wine (not exceeding 22% of volume concentration of ethyl 
 alcohol) and beer Llt. 150,000 (US$37,000) 
(Llt. 50,000 (US$12,500) from 
1 April 2000) 
(d) Beer Llt. 30,000 (US$7,500) 
(Llt. 15,000 (US$3,750) from 1 April 
2000) 
(e) Alcohol products (except alcoho lic beverages) Llt. 300 (US$75) 
(Llt. 500 (US$125) from 
1 April 2000) 
2. For issuing a licence to engage in wholesale of alcohol produced 
 in Lithuania (for the term of one year):  
(a) Alcoholic beverages  Llt. 35,000 (US$8,750)* 
(Llt 100,000 (US$25,000) from 
1 April 2000) 
(b) Alcoholic beverages not  exceeding 22% of volume 
 concentration of ethyl alcohol Llt. 17,500 (US$4,375)** 
(Llt. 50,000 (US$12,500) from 
1 April 2000) 
(c) Beer Llt. 8,000 (US$2,000)*** 
(Llt 15,000 (US$3,750) from 1 April 
2000) 
3. For issuing an activity licence fo r importation of tobacco  (for the 
 term of one year)  
Llt. 6,000 (US$1,500) 
 For issuing an activity licence for importation (and 
 wholesale)  of tobacco produc ts (for the term of one year)  
Llt. 15,000 (US$3,750)**** 
4. For issuing an activity licence fo r wholesale of tobacco  products 
 (for the 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 lu bricants (for the term 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 station Llt. 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) 
* additional stamp tax for wholesale trade charged for each additiona l branch/division in another city –
 Llt 15,000 (US$3,750); ** additional stamp tax for wholesale trade for each additional branch/division in another city - Llt. 5,000 
 (US$1,250); 
*** additional stamp tax for wholesale trade charged for each additiona l branch/division in another city – 
 Llt. 3,000 (US$750); 
**** additional stamp ta x for wholesale trade charged for each additi onal branch/division – Llt. 3,000 (US$750).WT/ACC/SPEC/LTU/8/Rev.5 
Page 82  
 
 Licensing Fees for Pharmaceutical Business Activity
 
 
Retail sale of medicine and medicine mate rials 300 litas 
Production and retail sale of medicine  and medicine ma terials 300 litas  
Wholesale of medicine and medi cine materials 1,000 litas   
Production of pharmaceutical products  and preparations 800 litas  
Rendering of information about medicine 300 litas  
Production of narcotics and psychotropic subs tances and medicine materials 200 litas  
Production of psychotropic substances and medicine materials 200 litas  
Wholesale, import and export of narcot ics and psychotropic substances and 
medicine materials 300 litas 
Wholesale, import and export of psyc hotropic substances and medicine 
materials 300 litas  
Retail sale of narcotics and psychotropic s ubstances and medicine  materials 100 litas 
Retail sale, of psychotropic substanc es and medicine materials 300 litas 
]  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 83 
 
 
 [Table 5:  Fees and Charges for Services Rendered Relating to Importation or Exportation  
 
Description Rates Purpose of taxes 
1. Formalities in connection with placement of one 
consignment of goods under one of the following customs procedures:  To cover expenses for the 
acceptance of corresponding documents, verification of data, registration, etc. The 
number of documents and the 
time of verification and registration is different for different procedur es (indicated 
below). Therefore, the taxes 
also are different. 
(a) Exportation (including re-e xportation) Llt. 22 (Llt. 1 - 
US$0.25)  
(b) Importation (includi ng re-importation and 
customs warehousing) Llt. 33  
(c) Temporary admi ssion and temporary 
exportation Llt. 55  
(d) Inward processing and outward processing Llt. 110  
2. Issuance of one certificate of or igin Llt. 25 To cover expenses of 
verification of  documents, 
verification of origin of goods, issuance of certificate of origin
3. Issuance of stickers used for marking of imported alcoholic beverages and tobacco goods (under one request)  
Llt. 20  To cover expenses of issuance 
of stickers 
4. Issuance of permit to carry out formalities in connection with customs procedures at other customs office:  When an importer or exporter 
wants to declare the goods with Customs office in which his abode (residence) is not registered, he has to get the 
permit from the Customs 
operating in his zone. The taxes are different (indicated 
below) depending on the 
duration of permits. 
(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  
5. For the security of goods carriage through customs territory (only fo r the services of police 
financed by state budget) Llt. 0.8 per 1 
kilometre To cover the expenses of 
issuance of corresponding documents and for the services of the police ensuring security 
of goods carriage 
6. Issuance of permit to import:   To cover the expenses of 
issuance of permit and for the 
control of import of guns and 
ammunition (safety reasons) 
(a) Shotguns, hunting rifles, its  parts arbalets Llt. 707  WT/ACC/SPEC/LTU/8/Rev.5 
Page 84  
 
 Description Rates Purpose of taxes 
(b) Shotguns, hunting rifles , its parts arbalets for 
the commercial goals Llt. 6,000  
(c) Pistols (revolvers), its parts for the self-defence, 
for commercial goals Llt. 2,000  
(d) Ammunition and explosives Llt. 50  
(e) Ammunition for commer cial goals Llt. 4,000  
(f) Sporting firearms Llt. 20  
(g) Sporting firearms for co mmercial goals Llt. 2,000  
(h) Air gains (pistols), gas pistols (revolvers) and 
ballones for commercial goals Llt. 3,000  
(i) Colour copy machinery Llt. 40 for prevention of illegal 
printing of counterfeit documents 
(j) Colour copy machinery for commercial goals Llt. 4,000  
7. Issuance of permit to export:  To cover the expenses of 
issuance of permit and for the control of export of guns and ammunition (safety reasons) 
(a) Shotguns, hunting rifles, its  parts arbalets Llt. 70  
(b) Shotguns, hunting rifles , its parts arbalets for 
the commercial goals Llt. 6,000  
(c) Pistols (revolvers), its parts for the self-defence, 
for commercial goals Llt. 2,000  
(d) Ammunition and explosives Llt. 50  
(e) Ammunition for commer cial goals Llt. 4,000  
(f) Sporting firearms Llt. 20  
(g) Sporting firearms for co mmercial goals Llt. 2,000  
(h) Air gains (pistols), gas pistols (revolvers) and 
balloons for commercial goals Llt. 3,000  
(i) Colour copy machinery Llt. 40 for prevention of illegal 
printing of counterfeit documents 
(j) Colour copy machinery for commercial goals Llt. 4,000  
8. Issuance of permit to  wholesale trade, import 
and export of narcotic dr ugs, psyhotropic medicine 
and their medicine substance Llt. 300 To cover expenses of issuance 
of permit and for the control the activity related to narcotic and psychotropic substances (to protect life and health of people, animals and plants) 
9. Issuance of permit to  wholesale trade, import 
and export of psyhotropic medicine and psychotropic medicine substances Llt. 300 To cover expenses of issuance 
of permit and for the control the activity related to narcotic 
and psyhotropic substances (to 
protect life and health of people, animals and plants) 
10. Transportation of nu clear and radioactive 
materials Llt. 500 To cover expenses of issuance 
of permit and for control of safety  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 85 
 
 
 Description Rates Purpose of taxes 
11. Import of pyrotechnics remedies, civil guns 
and its ammunition, except pistols and revolvers 
for the self-defence and its ammunition Llt. 5,000 To cover expenses of issuance 
of licence and for the control 
of enterprises (illegal activity) 
12. Issuance of permission  to temporary export for 
processing Llt. 221 To cover expenses of issuance 
of permit and for the 
evaluation of conformity with the conditions related to this procedure. Because, in accordance with Customs 
Code, any customs procedure 
which can have an economic influence, can be performed only with Customs permit. 
13. Issuance of permission  to temporary import for 
processing Llt. 200 To cover expenses of issuance 
of permit and for the evaluation of conformity with the conditions related to this 
procedure. Because, in 
accordance with the Customs Code, any customs procedure which can have an economic influence, can be performed only with Customs permit. 
14. Issuance of license to import, export and transport:  To cover expenses of issuance 
of licence and for the safety 
reasons. Below enumerated 
charges allows to control the movement of dangerous chemical materials and identify their users. 
(a) Controlled goods Llt. 120  
(b) Dangerous mate rials according UN 
classification Llt. 44  
(c) Radioactive materials according UN 
classification Llt. 77  
15. Issuance of certificat e confirming about the 
delivering and import of controlled goods Llt. 100 To cover expenses of issuance 
of licence and for the safety 
reasons 
16. Export of itinerant cult ure values (older than 
50 years) or antiquarian things 20% of value National value 
17. Export of numismatics,  philately, bonistics and 
faleristics 10% of value National value 
]WT/ACC/SPEC/LTU/8/Rev.5 
Page 86  
 
 [Table 6:  Excise Taxes Levied in Lithuania According to
 
Government Resolution No.1515 of 30 December 1998 (with Amendment No. 875 of 30 July 1999) 
and Amendment to the Law on Excise Taxes No. VIII-982 of 21 December 1998, No. VIII-1342 of 
30 September 1999 and No. VIII-1494 of 23 December 1999  
 
Commodity 
code Commodity description Taxes  (by percentage of taxable value 
or absolute Llt for indicated 
measurement unit*) 
2207.10.00.0;  
2208 
(except2208.90.69.1; 
2208.90.69.3)** Undenatured ethyl alcohol and alcoholic  
beverages, except for mead brandy, champagne, 
wine, beer and  medicinal preparations with medicinal herbs containing ethyl alcohol and  
registered in the State Medicines Register  Llt. 0.30 per 1% of an alcoholic 
strength by volume per one litre 
2208.90.69.1 Mead brandies Llt. 0.12 per 1% of an alcoholic 
strength by volume per one litre 
 Wine (fortified wines including) of an alcoholic 
strength by volume not exceeding 13% vol:  
2204.21.11.0- 
2204.21.80.0, 
2204.29.12.0- 
2204.29.75.0, 2205.10.10.1, 
2205.90.10.1 Wine of fresh grapes 
 Llt. 0.16 per 1% of an alcoholic 
strength by volume per one litre  
2204.30, ex2206.00 Grape must, other fermented beverages and their 
mixtures Llt. 0.12 per 1% of an alcoholic 
strength by volume per one litre  
 Wine (fortified wines including) of an alcoholic 
strength by volume of more than 13% vol, but not exceeding 18% vol:  
2204.21.81.0- 
2204.21.94.0,  
2204.29.81.0- 2204.29.94.0,  
2205.10.10.9, 
2205.90.10.9, Wine of fresh grapes 
 Llt. 0.29 per 1% of an alcoholic 
strength by volume per one litre 
ex2206.00 Other fermented beverages and their mixtures Llt. 0.16 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, 
2205.90.90.0, 
ex2206.00 Wine and other fermented beverages and their 
mixtures of an alcoholic strength by volume 
exceeding 18% vol Llt. 0.38 per 1% of an alcoholic 
strength by volume per one litre 
2204.10.11.0- 2204.21.10.0, 
2204.29.10.0 Champagne, sparkling wine and wine with an 
excess pressure Llt. 0.25 per 1% of an alcoholic 
strength by volume per one litre 
2203.00 Beer Llt. 0.40/litre*** 
2402.20.10.0- 
2402.20.90.0 Filter and filterless cigarettes   Llt. 30 per 1,000 units (from 1 March 
 2000 
2402.10.00.0, 
2402.90.00.0, 2403**** Packed smoking tobacco and other tobacco 
products 50 
2710.00.27.1- 
2710.00.37.0 Motor fuel/petrol Llt. 1210 per ton***** 
  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 87 
 
 
 Commodity 
code Commodity description Taxes  (by percentage of taxable value 
or absolute Llt for indicated 
measurement unit*) 
2710.00.51.0, 
2710.00.55.0, 
2710.00.66.1- 2710.00.68.9 Jet fuel, kerosene, gas oils (diesel fuel oil), 
heavy fuel oil Llt. 560 per ton)***** 
 
2710.00.74.0, 2710.00.76.0, 
2710.00.78.0, 2710.00.97.1, 
2714.90.00.1 Heavy fuel oil, orimulsion Llt. 20 per ton 
2710.00.87.0- 
2710.00.96.0, 
2710.00.97.8 Lubricants of all types  Llt. 240 per ton 
ex1806.20, 
ex1806.31, 
ex1806.32, 
ex1806.90 Chocolate and other food preparations 
containing cocoa, except  cocoa powder and food 
preparations containing less than 18% by weight 
of cocoa butter 10 
0901 Coffee 10 
7113, 7114, 
7116 Articles of jewellery and parts thereof, of 
precious metal or clad with precious metal, articles of goldsmiths’ or silversmiths’ wares 
and parts thereof, of preci ous metals or of clad 
with precious metal, articles of natural or cultured pearls, preciou s or semi-precious 
stones-natural, synthetic or reconstructed 10 
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, 8703.33.90.2 Luxury motor vehicles, not older than 5 years 
(except for special motor vehicles) specified in the list of State Agency of Competition and 
Consumer  Protection at the Government of 
Lithuania 15 from price exceeding Llt. 60,000 
2716.00.00.0 Electricity 1  WT/ACC/SPEC/LTU/8/Rev.5 
Page 88  
 
 Commodity 
code Commodity description Taxes  (by percentage of taxable value 
or absolute Llt for indicated 
measurement unit*) 
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, 
9504.40.00.1 Publications of erotic and violent character 75 
0402.10.91.0, Sugar, including sugar contained in food  0.01 Llt per 1% of sugar per 1 kg of  
0402.10.99.0, preparations preparation 
0402.29.15.0,   
0402.29.19.0,   
0402.29.91.0,   
0402.29.99.0,   
0402.99.11.0,   
0402.99.19.0,   
0402.99.31.0,   
0402.99.39.0,   
0402.99.91.0,   
0402.99.99.0,   
0404.10.26.0,   
0404.10.28.0,   
0404.10.32.0,   
0404.10.34.0,   
0404.10.36.0,   
0404.10.38.0,   
0404.10.72.0,   
0404.10.74.0,   
0404.10.76.0,   
0404.10.78.0,   
0404.10.82.0,   
0404.10.84.0,   
0406.10.20.1,   
0406.10.80.1,   
1701.11.10.0,   
1701.11.90.0,   
1701.12.10.0,   
1701.12.90.0,   
1701.91.00.0,   
1701.99.10.0,   
1701.99.90.0,   
1702.20.10.0,   
1702.20.90.0,   
1702.90.60.0,   
1702.90.71.0,    WT/ACC/SPEC/LTU/8/Rev.5 
 Page 89 
 
 
 Commodity 
code Commodity description Taxes  (by percentage of taxable value 
or absolute Llt for indicated 
measurement unit*) 
1702.90.75.0,   
1702.90.79.0,   
1702.90.99.0,   
1704.10.11.0,   
1704.10.19.0,   
1704.10.91.0,   
1704.10.99.0,   
1704.90.30.0,   
1704.90.51.0,   
1704.90.55.9,   
1704.90.61.2,   
1704.90.61.3,   
1704.90.61.4,   
1704.90.65.0,   
1704.90.71.0,   
1704.90.75.0,   
1704.90.81.0,   
1704.90.99.0,   
1806.10.20.0,   
1806.10.30.0,   
1806.10.90.0,   
1806.20.10.0,   
1806.20.30.0,   
1806.20.50.0,   
1806.20.70.1,   
1806.20.70.9,   
1806.20.80.1,   
1806.20.80.9   
1806.20.95.1##,   
1806.31.00.2,   
1806.31.00.3,   
1806.31.00.7,   
1806.31.00.8,   
1806.32.10.2,   
1806.32.10.7,   
1806.32.90.4,   
1806.32.90.6,   
1806.90.11.2,   
1806.90.11.6,   
1806.90.19.2,   
1806.90.19.7,   
1806.90.31.2,   
1806.90.31.6,   
1806.90.39.2,   
1806.90.39.6,   
1806.90.50.2,   
1806.90.50.6,   
1806.90.60.1,   
1806.90.60.3,   
1806.90.60.6,   
1806.90.60.8,   
1806.90.70.2,   
1806.90.70.6,   
1806.90.90.2,   
1806.90.90.7,   WT/ACC/SPEC/LTU/8/Rev.5 
Page 90  
 
 Commodity 
code Commodity description Taxes  (by percentage of taxable value 
or absolute Llt for indicated 
measurement unit*) 
1901.20.00.1,   
1901.90.99.1,   
1901.90.99.2,   
1901.90.99.3,   
1901.90.99.4,   
1905.20.10.0,   
1905.20.30.0,   
1905.20.90.0,   
1905.30.11.0,   
1905.30.11.1,   
1905.30.19.0,   
1905.30.19.1,   
1905.30.30.0,   
1905.30.30.1,   
1905.30.51.1,   
1905.30.59.1,   
1905.30.99.1,   
1905.30.99.3,   
1905.90.60.1,   
2006.00.38.0,   
2006.00.10.0,   
2006.00.31.0,   
2007.91.10.0,   
2007.99.10.0,   
2007.99.20.0,   
2007.99.31.0,   
2007.99.33.0,   
2007.99.35.0,   
2007.99.39.1,   
2007.99.39.9,   
2009.11.91.0,   
2009.19.91.0,   
2009.20.91.0,   
2009.30.51.0,   
2009.30.91.0,   
2009.40.91.0,   
2009.60.71.0,   
2009.60.79.0,   
2009.70.91.0,   
2009.80.61.0,   
2009.80.83.0,   
2009.80.84.0,   
2009.80.86.0,   
2009.90.31.0,   
2009.90.71.0,   
2009.90.92.0,   
2009.90.94.0,   
2101.12.92.1,   
2101.12.92.2,   
2101.12.92.3,   
2101.12.92.4,   
2101.12.92.5,   
2101.12.98.1,   
2101.12.98.2,   
2101.12.98.3,    WT/ACC/SPEC/LTU/8/Rev.5 
 Page 91 
 
 
 Commodity 
code Commodity description Taxes  (by percentage of taxable value 
or absolute Llt for indicated 
measurement unit*) 
2101.12.98.4,   
2101.12.98.5,   
2101.20.91.1,   
2101.20.91.2,   
2101.20.91.3,   
2101.20.91.4,   
2101.20.91.5,   
2101.30.99.1,   
2101.30.99.2,   
2101.30.99.3,   
2101.30.99.4,   
2101.30.99.5,   
2106.90.98.7##,   
2105.00.10.0,   
2105.00.91.0,   
2105.00.99.0,   
2106.90.59.0,   
2106.90.98.7,   
2309.10.90.0    
3303.00.10.1, 3303.00.90.1, 
3304.99.00.1, 
3307.10.00.1, 3307.90.00.1, 
1302.19.30.1, 
2008.20.11.1, 
2008.20.19.1, 
2008.20.31.1, 2008.20.39.1, 
2008.30.19.1, 
2008.30.39.1, 2008.40.19.1, 
2008.40.29.1, 
2008.40.31.1, 2008.40.39.1, 
2008.50.19.1, 
2008.50.39.1, 2008.50.51.1, 
2008.50.59.1, 
2008.60.19.1, 2008.60.39.1, 
2008.70.19.1, 
2008.70.39.1, 2008.70.51.1, 
2008.70.59.1, 
2008.80.19.1, 
2008.80.39.1, 
2008.92.16.1, 2008.92.18.1, 
2008.92.36.1, 
2008.92.38.1, 2008.99.19.1, Liquid perfumes, cosmetic and toilet 
preparations and other preparations, which 
contain ethyl alcohol and due to their low 
price may be used as substitutes or alcoholic beverages 10 Llt per 1 liter of preparation 
2008.99.21.1,   
2008.99.23.1,   WT/ACC/SPEC/LTU/8/Rev.5 
Page 92  
 
 Commodity 
code Commodity description Taxes  (by percentage of taxable value 
or absolute Llt for indicated 
measurement unit*) 
2008.99.32.1,   
2008.99.33.1,   
2008.99.34.1,   
2008.99.38.1,   
2008.99.40.1,   
2103.90.90.3,   
2106.90.20.1,   
2106.90.92.7,   
2106.90.98.8,   
2207.20.00.1,   
2207.20.00.9,   
3302.10.10.1,   
3302.10.40.2,   
3302.10.90.2,   
3306.90.00.1,   
3824.90.95.1   
* The taxable value shall be:  
- -sale price free from excise tax and VA T of commodities produced in Lithuania; 
- -customs value, including duties, of imported commodities. 
** Commodity codes are presented according to the HS (1999) codes. 
*** Excise tax - Llt. 0.2 per litre - shall be levied on the first 100 thousand decalitres of domestically-
produced or imported beer by beer manufacturing companies producing 800 thousand decalitres per 
year (this provision is applied from 1 January 2000). 
**** Excise tax shall not be levied  on tobacco (Code 2403. 10.90.1) imported by th e joint-stock company 
“Philip Morris Lietuva”.  In the case when imported tobacco in  these companies is used not for 
production of cigarettes, but for other purposes, the excise tax shall be levied.  
***** From 1 August 1995 excise tax shall be not applied on imported or domestically produced jet fuel  
(Code 2710.00.51.0) and used by  enterprises determined by the Government (currently joint-stock 
companies “Lietuvos avialinijos” and “Lietuva” in accordance with Government Resolution No. 1515 
of  30 December 1998). 
# medicines with herbs (domestically-produced and imported). 
## excise is not adjusted fo r sugar syrup with sorbitol. 
]  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 93 
 
 
 [Table 7:  VAT Exemptions in Accordance with the Amendment No.VIII-451  
to the Law on Value Added Tax of 14 October 1997 and No. VIII-557 of 9 December 1997  
 
1  health supervision services rendered by the pub lic and budgetary institutions of the State and 
municipalities health supervision and veterinary  services rendered by the institutions of the 
State 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 disa bled 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 coffins;  
funeral wreaths;  temporary tombstones; burying services; 
7 printing, publishing and distribu tion of magazines (listed by the Government), newspapers, books 
(except editions, which Journalists and Editor s Commission for Ethics recognised among the 
categories having erotic and violent character);  
news-print; 
8 services and action s, rated by consular and stamp taxes; 
local, State levies and taxes included in the St ate and municipalities budg ets or special accounts 
opened in fisc or in the privatization funds; 
9 State property being privatized; 
10 works and services done for traditional Lith uanian religious communities and paid from 
sacrificed means; 
11 rent (more than 2 months) of flats and houses; 
12 rent of land; 
13 services rendered by traditional Lithuanian reli gious communities and paid  by sacrificed means, 
traditional handicrafts for which the special commission of handicraft experts gave such status; 
14 passenger transport services according certain routes defined by the Ministry of Transport or 
municipalities; 
15 levies for sea ports, airports, flight s ruling and aeronavigation services; 
16 construction of apartments; renovation, heati ng and projecting works; including construction of 
engineering networks and territory improvement financed from State or municipalities budgets, soft credits provided by Stat e or special State funds;  
17 goods with UNICEF mark according th e list formed by the Government; 
18 restoration or conservation of culture monumen ts and heritage financ ed from the State or 
municipalities budgets,  also from sacrificed means or received as support;  
19 exported goods (including returned to abro ad temporary imported goods for processing) (zero 
VAT tariff); 
  WT/ACC/SPEC/LTU/8/Rev.5 
Page 94  
 
 20 transportation of exported goods when final poin t is outside Lithuanian customs territory; also all 
services related with foreign cargo transportation by transit through territory of Lithuania (zero VAT tariff); 
21 freight, exploitation, re pairmen, agency of ships and planes  transporting goods and passengers by 
international routes (zero VAT tariff); 
22 goods imported to bonded warehouses, duty -free shops, free economic zones and free 
warehouses; 
23 services provided by enterprises, institutions  and organizations outs ide Lithuania (zero VAT 
tariff);  
24 goods and services for which directly paid reside nts 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 (passe ngers) if the quantity of import ed goods is permitted to import 
without customs duties; 
27 goods transported by diplomatic and consular re presentatives, also by inte rnational organizations 
for the official activity of mission, if VAT exem ptions are foreseen in the agreements between 
these international organizations and the Republic of Lithuania.; 
28 received as support fo r budget institutions; 
29 parcels sent by mail which weight is not mo re 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.5 
 Page 95 
 
 
 [Table 8:  List of goods subject to "price-in-checking" (valid until Lithuania’s accession to the WTO)  
 
HS code Description 
0201-0205.00, 
0206.10-0206.22, 0206.29.10.9-0206.29.91.0, 0206.29.99.9-0206.90, 
0209.00–0210 meat and meat offal, not rendered pig and poultry fat 
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 - 0207.36.79.0 poultry, fresh, chilled or frozen 
0401 - 0402.21.99.0, 
0402.29.15.0 – 0404 milk and dairy products 
0407.00 birds' eggs, in she ll, fresh, preserved or cooked 
0408 birds' eggs, not in shell and e gg yolks, fresh, dried, cooked by 
steaming or by boiling in water, moulded, frozen or otherwise preserved 
0701 potatoes, fresh or chilled 
0702.00.00.4-0702.00.00.6 tomatoes, fresh or  chilled, from 15 May to 31 October 
0703.10 onions and shallo ts, fresh or chilled 
0703.20.00.00 garlic, fresh or chilled 
0707.00.05.04-0707.00.05.5 cucumbers, fresh  or chilled, from 15 May to 31 October 
0708.10 peas (Pisum sativum), fresh or chilled 
ex0708.90.00.0 beans, except seed-beans 
0808.10.10.0 cider apples, in bulk, from 16 September to 15 December 
0808.10.20.4, 0808.10.50.4 "Golden Delicious " and "Granny Smith" apples, fresh, from 
16 September to 15 December 
0808.10.90.4 other apples, fresh, from 1 August to 31 December,  
0808.20.10.0 peery pears, in bulk, from 1 August to 31 December 
1001.90 - 1004.00.00.0 grain 
1008.10.00.0 buckwheat 
1101.00 wheat and meslin 
1102.10.00.0 rye flour 
1103.19.30.0 fine ground barley 
1104 cereal grains otherwise worked 
1108.13.00.0 potato starch 
1209.29.50.0 lupine seeds 
1214.90 fodder roots and other fodder products 
1514 rape, colza or mustard oil 
1601.00 sausages and products thereof 
1602 other prepared or preserved meat 
1701.91.00.0 cane sugar and beet sugar and chemically pure sucrose, in 
solid form, containing added flavouring or colouring matter 
1701.99.10.0 white sugar 
2102.10 active yeast WT/ACC/SPEC/LTU/8/Rev.5 
Page 96  
 
 HS code Description 
2105.00 ice cream and other edible ice, whether or not containing 
cocoa 
2202.10.00.0 waters, including minera l 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 hydrogen 
2804.30.00.0 nitrogen 
2804.40.00.0 oxygen 
2811.21.00.0 carbon dioxide 
2901.29.20.1, 2901.29.80.1 acetylene 
3605.00.00.0 matches, except pyrotechnic articles 
3921.11.00.0 plates, sheets, films, foils and strips of plastics of polymers of 
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, except ruberoid 
6811.10.00.0 corrugated sheets of asbestos-cement (slate) 
6907, 6908 glazed and non glazed  ceramic flags and paving 
7005.10 non-wired glass, having an absorbent, reflecting or non-
reflecting layer 
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 safety glass, consisting of toughe ned (tempered) or laminated 
glass 
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 
]   WT/ACC/SPEC/LTU/8/Rev.5 
 Page 97 
 
 
  
[Table 9:  Conformity of Lithuania’s current provisions with the WTO Agreement  
on Customs Valuation on an article by article basis  
 
Agreement on 
Implementation of 
Article VII of the 
GATT 1994 The procedure of the customs valuation 
of goods approved by Government 
Resolution No.748 of 9 June 1999 of 
Lithuania (will enter into force on 
1 April 2000)  The Customs Code of Lithuania 
(entered into force 1 January 1998) 
 
Article 1   Chapter VI 
Value of goods for customs 
purposes 
Article 30 Paragraphs 1-5 conform to the 
respective Article of WTO 
Agreement. 
Article 2 (i)  Section III 
(ii) Application of other methods of 
customs valuation 
Paragraphs 18.1-18.3 conform to paragraphs 1(b), 2 and 3 of the respective Article of 
WTO Agreement. Chapter VI 
Value of goods for customs 
purposes 
Article 31  Paragraphs 1 and 2(1) conform to 
paragraph 1(a) of the respective 
Article of WTO Agreement.  
Article 3 (iii)  Section III 
(iv) Application of other methods of 
customs valuation 
Paragraphs 19.1-19.3 conform to paragraphs 1(b), 2 and 3 of the respective Article of 
WTO Agreement. Chapter VI 
Value of goods for customs 
purposes 
Article 31  Paragraphs 1 and 2(2) conform to 
paragraph 1(a) of the respective 
Article of WTO Agreement. 
Article 4 (v)   Chapter VI 
Value of goods for customs 
purposes 
Article 31  Paragraph 1 conforms to the 
respective Article of WTO 
Agreement. 
Article 5 (vi)  Section III. 
(vii) Application of other methods of 
customs valuation 
Paragraphs 21-22  conform the respective Article of WTO Agreement. Chapter VI 
Value of goods for customs 
purposes 
Article 31  Paragraph 2(3) conforms to 
paragraph 1(a) of the respective 
Article of WTO Agreement. 
Article 6 (viii)  Section III 
(ix) Application of other methods of 
customs valuation 
Paragraph 24.1 conforms to paragraph 2 of the respective Article of WTO Agreement. Chapter VI 
Value of goods for customs 
purposes 
Article 31  Paragraph 2(4) conforms to 
paragraph 1 of the respective 
Article of WTO Agreement. WT/ACC/SPEC/LTU/8/Rev.5 
Page 98  
 
 Agreement on 
Implementation of 
Article VII of the 
GATT 1994 The procedure of the customs valuation 
of goods approved by Government 
Resolution No.748 of 9 June 1999 of 
Lithuania (will enter into force on 
1 April 2000)  The Customs Code of Lithuania 
(entered into force 1 January 1998) 
 
Article 7  Chapter VI 
Value of goods for customs 
purposes Article 32  
The Article conforms to paragraphs 
1-2 of the respective Article of WTO Agreement. 
Chapter II  
The rights and obligations of persons with regard to the 
implementation of the provisions of 
the Code Article 4 
Paragraph 3 conforms to the 
respective Article of WTO Agreement. 
Article 8  Chapter VI 
Value of goods for customs 
purposes Article 33  
The Article conforms to the 
respective Article of WTO Agreement. 
Article 9  Chapter VI 
Value of goods for customs 
purposes Article 36 
The Article conforms to the 
respective Article of WTO Agreement. 
Article 10  Chapter II  
The rights and obligations of 
persons with regard to the 
implementation of the provisions of 
the Code 
Article 8  The Article conforms to the 
respective Article of WTO 
Agreement. 
Article 11  Chapter XXII 
Appeals Right to appeal against decissions 
taken by the customs authorities is 
provided in this Chapter.   WT/ACC/SPEC/LTU/8/Rev.5 
 Page 99 
 
 
 Agreement on 
Implementation of 
Article VII of the 
GATT 1994 The procedure of the customs valuation 
of goods approved by Government 
Resolution No.748 of 9 June 1999 of 
Lithuania (will enter into force on 
1 April 2000)  The Customs Code of Lithuania 
(entered into force 1 January 1998) 
 
Article 13  Chapter II  
The rights and obligations of 
persons with regard to the implementation of the provisions of 
the Code 
Article 4 Paragraph 2 establishes strict terms 
of making decissions by Customs 
authorities. Chapter XI 
Customs procedures 
Article 73  Paragraph 1 conforms to the 
respective Article of WTO 
Agreement.  
Article 15 Section I.  
General provisions 
Terms applied in the procedure of the 
customs valuation of goods are explained. Chapter VI 
Value of goods for customs 
purposes 
Article 30 Paragraph 8 includes provisions of 
paragraph 4 of the respective 
Article of WTO Agreement.  
Article 16  Chapter II  
The rights and obligations of 
persons with regard to the 
implementation of the provisions of the Code 
Article 4 
Paragraph 3 conforms to the respective Article of WTO 
Agreement. 
] WT/ACC/SPEC/LTU/8/Rev.5 
Page 100  
 
 [Table 10.1:  Rates of Export Duties Approved by  Government Resolution No. 2 of 4 January 2000
 
 
Code of group of goods* Description of group of goods Tariff rate** 
4101, 4103 Raw hides and skin 15 per cent 
 
* Codes of groups (goods) are presented according to  the EEC Harmonized Commodity Description and 
Coding System. 
** Goods without codes herein are subject to a zero rate customs duties. 
  
 
 
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,  
4103 Raw hides and skins of bovine animals EU, EE, LV, CZ, 
SK, Sl, TR, Hu –
15 
4401 22-4101 40 Other hides and skins of bovine animals EU, CZ, SK, Sl, 
TR, Hu – 15 
 
EU - European Union; EE - Estonia;  LV - Latvia; CZ - Czech Republic; SK  - Slovakia; Sl - Slovenia;  TR – 
Turkey;  Hu – Hungary]  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 101 
 
 
 [Table 11:  List of Foodstuffs to be Checked by official Control Authorities under Importation  
Description of products HS Code Controlling 
Institution* 
Meat and edible meat sub-products 02.01-02.08 (except 0206.10.10.0; 
0206.22.10.0; 0206.29.10; 0206.30.10.0; 
0206.41.10.0; 0206.49.10; 0206.80.10.0; 
0206.90.10.0); 0209 (except ex0209.00 
(fresh, chilled or frozen)); 02.10 V 
Fish and crustaceans, molluscs and other 
aquatic invertebrates 03.01-03.04 (except 0301.10); 03.05; 
03.06(except ex03.06 (fresh, chilled or 
frozen)); 03.07 (except ex03.07(fresh, chilled or frozen)) V 
Milk and milk products; birds eggs; 
natural honey; edible products of animal 
origin, not elsewhere sp ecified or included 04.01-04.06 (except 0402.29.11.0); 
0407.00-0410.00.00.0 (except 
0408.11.20.0; 0408.19.20.0; 0408.91.20.0; 0408.99.20.0) V 
Guts, bladders and stomachs of animals 
(other than fish), whole and pieces thereof 0504.00.00.0(except ex0504.00.00.0(fresh, 
chilled or frozen)) V 
Edible vegetables and some root crops and 
tuber crops 07.01 (except 0701.10.00.00);  0702.00.00;  
07.03 (except 0703.10.11.0);  07.04 - 
07.09;  07.10; 
07.11-07.12 (except 0712.90.11.0); 
07.13-07.14 (except 0713.10.10.0; 0713.33.10.0; 0713.90.10.0; ex07.14 
(frozen)) HP 
 
 
H 
HP 
Edible fruit and nuts; peel and husk of 
citrus fruit or melons 08.01-08.06 (ex0803.00(fresh); 
ex08.04(fresh); ex08.06(fresh)); 08.07-08.10; 
08.11-08.12; 
08.13;  0814.00.00.0 (except ex0814.00.00.0(frozen)) HP 
 
H 
HP 
H 
Coffee, tea, mate and spices 09 .01-0903.00.00.0 (except positions 
0901.90.10.0); 
09.04-09.08 (except 0904.20.31.0); 09.09-09.10 HP 
 
H 
HP 
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) ex10.01-10.08 (for fodder) HP 
 
  
 
 
- 
Milled production. malt starch; inulin; wheat gluten 1101.00-11.07 
(except these positions: 
11.05; 1107.20.00.0); 
11.08-1109.00.00.0 
ex1101.00-1109.00.00.0 (for fodder); 
ex11.08 (for the technical  or industrial use, 
except production of foodstuffs) HP 
 
 
H 
- 
- WT/ACC/SPEC/LTU/8/Rev.5 
Page 102  
 
 Description of products HS Code Controlling 
Institution* 
Oil seeds and fruits; various corns. seeds and fruits; plants used in industry and 
medicine; straws and fodder 1201.00-12.02 (except1201.00.10.0; 
1202.10.10.0); 
1203.00.00.0-12.10 (except 1204.00.10.0; 
1205.00.10.0; 1206.00.10.0; 1207.10.10.0; 1207.20.10.0; 1207.30.10.0;  
1207.40.10.0; 1207.50.10.0; 1207.60.10.0; 
1207.91.10.0; 1207.92.10.0; 1207.99.10.0; 12.09); 
12.12 
ex1201.00-12.08 (for fodder) HP 
 
 
  
 
  
 
- 
Shellac, gums resins, vegetable saps and extracts 1301.20.00.0; 1302.13.00.0; 
1302.19.30.0; 1302.20; 
ex1302.31.00.0 (food additive) H 
 
H* 
Animal or vegetable fats, oils and their fractions. edible mixtur es or preparations; 
vegetable or animal waxes 1501.00-1502.00 (except 1501.00.11.0; 
1502.00.10.0) 
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); 1516.10 
1516.20-15.17 (except 1516.20.10.0; 
1516.20.95.0) V 
 
H 
 
  
 
  
 
  
 
  
 
 
V 
H 
Meat products, fish or crustaceans, 
molluscs or other aquatic invertebrates 16.01-16.05 V 
Sugar and sugar confectionery 17.01-17.04 (except ex1701.99.10.0 
(chemical reagent); 
ex1702.11.00.0(chem ical reagent); 
ex1702.30.51.0(chem ical reagent); 
ex1702.50.00.0(chem ical reagent); 
ex1702.90.10.0(chem ical reagent) 
1704.90.55.1) 
ex1704.90.81.0 (foodstuffs for special 
purpose) ex17.03(for fodder) H 
 
  
 
  
H 
 
- 
Cocoa and Cocoa products 1801.00.00.0; 
18.03-18.06 
(except 1806.31.00.2; 1806.31.00.3; 1806.32.90.2; 1806.32.90.3; 1806.90.60.1; 
1806.90.60.2; 1806.90.60.3; 1806.90.60.4) HP 
H 
V 
Corn, flour, starch or milk products; flour 
confectionery 19.01-19.05 (except 1901.10.00.0; 
1905.90.30.0) H 
Products of vegetables, fruit, nuts and 
other edible parts of plants 20.01-20.09 
(except 20.03; 2005.10.00.0; 2007.10) H 
HP 
H  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 103 
 
 
 Description of products HS Code Controlling 
Institution* 
Various food products 21.01-21.04; 21.06 
(except these positions: 
ex2102.20.19.0 (for fodder); 
ex2102.20.90.0(for fodder) 2104.20.00.0;2106.10.20.3; 2106.10.80.3; 
2106.90.92.3; 2106.90.98.3; 
2106.10.20.1; 2106.10.80.1; 2106.90.92.1; 2106.90.98.1; 2106.90.98.5; 
ex21.06 (food additive)) 
2105.00 H 
 
 
 
H* 
 
 
- 
H* 
V 
Alcoholic and non-alcoholic beverages and vinegar 22.01-2209.00 (except 2208.90.69.3) H 
Salt, sulphur, earths and stone, plastering 
materials, lime and cement 2501.00.91.0 H 
Inorganic chemicals; organic and 
inorganic compounds of precious metals, 
of rare-earth metals, of radioactive elements or of isotopes ex2803.00; ex2804.21.00.0-2804.40.00.0; 
ex28.06; ex2807.00.10.0; ex2809.20.00.0; 
ex2810.00.90.0; ex28.11; ex28.12; ex2814.20.00.0; ex28.15; ex2816.10.00.0; 
ex28.18; ex28.21; ex2825.90.11.0; 
ex2825.90.19.0; ex2825.90.80.0; ex2827.20.00.0; ex2827.31.00.0; 
ex2827.39.10.0; ex2827.39.90.0; 
ex2832.10.00.0; ex2832.20.00.0; ex2833.11.00.0; ex2833.19.00.0; 
ex2833.22.00.0; ex2833.29; 
ex2834.10.00.0; ex2834.21.00.0; 
ex2834.29.90.0; ex28.35; ex2836.30.00.0; 
ex2836.40.00.0; ex2836.50.00.0; ex2836.99.11.0; ex2836.99.18.0; 
ex2837.20.00.0; ex2839.19.00.0; 
ex2839.90.00.0; ex28.40; ex2842.10.00.0 (food additives) H* 
Organic chemicals ex29.01-ex 2940.00 (food additives) H* 
Pharmaceutical products ex3002.90.5 0.0 (for use in the production 
of foodstuffs) H* 
Tanning or dying extracts; tannins and 
their derivatives; dyes, pigments and other 
colouring matter; paints and varnishes; putty and other mastics; inks. ex3203.00 (food additives or raw 
materials, designed for use in the 
production of foodstuffs); ex32.04(food additives); ex32.06(food additives) H* 
Essential oils, mixtures of flavouring 
substances (resinoids), liquid perfumes, 
cosmetics and toilet preparations ex33.01(food additives); 3302.10(food 
additives) H 
Albumins; modified starches; 
glues; ferments (enzymes) 3501.10.90.0; 3502.11.90.0; 3502.19.90.0; 
3502.20.91.0; 3502.20.99.0; 3502.90.70.0; 3503.00.10.0;  
ex3504.00.00.9 (for the production of 
foodstuffs); ex3505.10.50.0 (food additives); 
ex3505.10.90.0 (food additives) V 
  
 
H* 
 
H* 
 WT/ACC/SPEC/LTU/8/Rev.5 
Page 104  
 
 * H - State control agencies under the Ministry of Health Care (Nutrition Centre, etc.) 
 H* - State control agencies under the Ministry of Health Care (Nutrition Centre, etc.), if there is an 
 indication in the suppliers declaration of conformity, that the product is foodstuf f for special purpose, food 
 additive or is used for the production of foodstuffs. 
 V - State Veterinary Service  P - State Plant Protection Service 
 “-” - State control agencies under the Ministry of Health  Care (Nutrition Centre, etc.) do not control these 
 products.]  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 105 
 
 
 [Table 12(a):  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 thei r feathers or down, feathers and parts of 
feathers (whether or not with trimmed e dges) 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, simply prepared (but not cut to 
shape), treated with acid or degelatini sed; powder and waste of these products 
0507 Ivory, tortoise-shell, whalebone a nd 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, ceustaceans or echinoderms and cuttle-bone, unworked or simply prepared but not cu t to shape, powder and waste thereof 
0509 Natural sponges of animal origin 
0510 Ambergris, castereum, 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 
3501 Casein, caseinates and other casein derivatives; casein glues: 
4101 Raw hides and skins of bovine or equine animals (fresh, or salted, dried, limed, 
pickled or otherwise preserved, but not  tanned, parchment-dressed or further 
prepared), whether or not dehaired or split: 
4102 Raw skins of sheep or lambs (fresh, or sa lted, dried, limed pickled or otherwise 
preserved, but not tanned, parchment-dressed  or further prepared), whether or 
not with wool on or split, other than thos e excluded by note 1 (c) to this chapter: 
4103 Other raw hides and skins (fresh, or salte d, dried, limed, pickled or otherwise 
preserved, but not tanned, parchment-dressed  or further prepared), whether or 
not dehaired or split, other than those excluded by note 1 (b) or 1 (c) to this chapter: 
4104 Leather of bovine or equine animals, without hair on, other than leather of 
heading No.4108 or 4109: 
4105 Sheep or lamb skin leather, without wool on, other than leather of heading 
No.4108 or 4109: 
4106 Goat or kid skin leather, without hair on, other than leather of heading No.4108 
or 4109: 
4107 Leather of other animals, without heir on, other than leather of heading No.4108 
or 4109: 
5101 Wool, fine or coarse animal hair; horsehair yarn and woven fabric: 
5102 Fine or coarse animal hair, not carded or combed: WT/ACC/SPEC/LTU/8/Rev.5 
Page 106  
 
 HS Code Description 
5103 Waste of wood or of fine or coarse animal hair, including yarn waste but 
excluding garnetted stock: 
5104 Garnetted stock of wool or of fine or coarse animal hair: 
5105 Wool and fine or coarse animal hair, ca rded or combed (including combed wool 
in fragments): 
 
  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 107 
 
 
 Table 12(b):  Goods of Vegetable Origin Subject to Quarantine Inspection  
 
HS 
code Description 
06.01 bulbs, tubers, tuberous routs, corms, dormant in growth or in flower, chicory plants and roots 
other than roots of heading No. 12.12* 
06.02 other live plants (including their rots), cuttings and slips, mushroom spawn* 
06.03 cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes, fresh, 
dried, dyed, bleached, impregnated or otherwise prepared* 
06.04 foliage, branches or other parts of plants, without flowers or flower buds, and grasses, mosses 
and lichens, being goods of a kind suitable for bouquets or for ornamental purposes, fresh, dried, dyed, bleached, impregnated or otherwise prepared* 
07.01 potatoes, fresh or chilled* 
07.02 tomatoes, fresh or chilled* 
07.03 onions, garlic, shallots, leeks and ot her alliaceous vegetables, fresh or chilled* 
07.04 cabbages, cauliflowers, ko hlrabi, kale and similar edib le brassicas, fresh or chilled 
07.05 lettuce and chicory fresh or chilled 
07.06 carrots, turnips, salad beetroot, salsify, celer iac, radishes and similar edible roots, fresh or 
chilled* 
07.07 cucumbers and gherkins, fresh or chilled* 
07.08 leguminous vegetables, includ ing unshelled, fresh or chilled* 
07.09 other vegetables, fresh or chilled* 
07.11 vegetables provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur 
water or in other preservative solutions), but unsuitable in that state for immediate consumption 
07.12 dried vegetables, whole, cut, sliced, broken or in powder, but not further prepared 
07.13 dried leguminous vegetables, unshelle d, whether or not skinned or split* 
07.14 manioc, arrowroot, salep, Jerusalem artichokes, sweet potatoes and similar roots and tubers 
with high starch or inulin content, fresh or dried,  whether or not sliced or in the form of pellets, 
sago pith* 
08.01 coconuts, Brazil nuts and cashew nuts, fresh or dried, whether or not shelled or peeled* 
08.02 other nuts, fresh or dried, whether or not shelled or peeled* 
08.03 bananas, including plantains, fresh or dried* 
08.04 dates, figs, pineapples, avocados, guavas, mangoes and mangosteens, fresh or dried* 
08.05 citrus fruit, fresh or dried* 
08.06 grapes, fresh or dried* 
08.07 melons (including watermelons) and papaws (papayas), fresh* 
08.08 apples, pears and quinces, fresh* 
08.09 apricots, cherries, peaches (includi ng nectarines), plums and sloes, fresh* 
08.10 other fruit (berries), fresh* 
08.13 fruit, dried, other than that of headings Nos. 08.01-08.06; mixtures of nuts or dried fruits of this 
Chapter 
09.01 coffee, whether or not roasted or decaffe inated; coffee husks and skins; coffee substitutes 
containing coffee in any proportion 
09.02 tea, whether or not flavoured 
09.03 mate 
09.09 seeds of anise, badian, fennel, coriander, cumin, caraway or juniper* 
09.10 ginger, saffron, turmeric (curcuma), thyme, bay leaves, curry and other spices 
10.01 wheat and meslin* 
10.02 rye* 
10.03 barley* 
10.04 oats* 
10.05 maize (corn)* 
10.06 rice* 
10.07 grain sorghum* 
10.08 buckwheat, millet and canary seed; other cereals* WT/ACC/SPEC/LTU/8/Rev.5 
Page 108  
 
 HS 
code Description 
11.01 wheat or meslin flour 
11.02 cereal flours other than of wheat or meslin 
11.03 cereal groats, meal and pellets 
11.04 cereal grains otherwise worked (for example, hulled, rolled, flaked, pearled, sliced or kibbled), 
except rice of heading No. 10.06; germ of cereals, whole, rolled, flaked or ground 
11.06 flour and meal of the dried leguminous vegetables of heading No. 07.13, of sago or of roots of 
tubers of heading No. 07.14; flour, meal and powder of the products of Chapter 8 
11.07 malt, whether or not roasted 
12.01 soya beans, whether or not broken* 
12.02 ground-nuts, not roasted or otherwise cooked, whether or not shelled or broken* 
12.03 Copra 
12.04 linseed, whether or not broken* 
12.05 rape seeds, whether or not broken* 
12.06 sunflower seeds, whether or not broken* 
12.07 other oil seeds and oleaginous fruits, whether or not broken* 
12.08 flours and meals of oil seeds or oleaginous fruits, other than those of mustard 
12.09 seeds, fruit and spores, of a kind used for sowing* 
12.10 hop cones, fresh or dried, whether or not ground, powdered or in the form of pellets; lupulin 
12.11 plants and parts of plants (including seeds and fruits), of a kind used primarily in perfumery, in 
pharmacy or for insecticidal, fungicidal or similar purpose, fresh or dried, whether or not cut, 
crushed or powdered 
12.12 locust beans, seaweeds and other algae, sugar beet and sugar cane, fresh or dried, whether or 
not ground; fruit stones and kernels and other vegetable products (including unroasted chicory roots of the variety ) of a kind used primarily for human consumption, not elsewhere specified 
or included* 
12.13 cereal straw and husks, unprepared, whether or not chopped, ground, pressed or in the form of 
pellets 
12.14 swedes, mangolds, fodder roots, fodder swedes, hay, lucerne (alfalfa), clover, sainfoin, forage 
kale, lupines, vetches and similar forage products, whether or not in the form of pellets* 
14.01 vegetable materials of a kind used primarily for plaiting (for example, bamboos, rattans, reeds, 
rushes, osier, raffia, cleaned, bleached or dyed cereal straw, and lime bark) 
14.02 vegetable materials of a kind used primarily as stuffing or as padding (for example, kapok, 
vegetable hair and eelgrass), whether or not put up as a layer with or without supporting 
material 
14.03 vegetable materials of a kind used primarily in brooms or in brushes (for example, broomcorn, 
piassava, couchgrass and istle), whether or not in hanks or bundles 
18.01 cocoa beans, whole or broken, raw or roasted 
18.02 cocoa shells, husks, skins and other cocoa waste 
20.03 mushrooms and truffles, prepared or preserved otherwise than by vinegar or acetic acid 
23.02 bran, sharps and other residues, whether or not in the form of pellets, derived from the sifting, 
milling or other working of cereals or of leguminous plants  
24.01 unmanufactured tobacco; tobacco refuse* 
27.03 peat (including peat litter), whether or not agglomerated 
44.01 fuel wood, in logs, in billets, in twigs, in faggots or in similar forms; wood in chips or particles; 
sawdust and wood waste and scrap, whether or not agglomerated in logs, briquettes, pellets or 
similar forms 
44.03 wood in the rough, whether or not stripped of bark or sapwood, or roughly squared* 
44.04 hoopwood; split poles; piles, pickets and stakes of wood, pointed but not sawn lengthwise; 
wooden sticks, roughly trimmed but not turned, bent or otherwise worked, suitable for the 
manufacture of walking-sticks, umbrellas, tool handles or the like; chipwood and the like 
44.06 railway or tramway sleep ers (cross-ties) of wood 
44.07 wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or finger-
jointed, of a thickness exceeding 6 mm  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 109 
 
 
 HS 
code Description 
44.09 wood (including stri ps and friezes for parquet flooring, not  assembled) continuously shaped 
(tongued, grooved, rebated, chamfered, V-jointed, beaded, moulded, rounded or the like) along 
any of its edges or faces, whether or not planed, sanded or finger-jointed 
44.13 densified wood, in blocks, plates, strips or profile shapes 
44.15 packing cases, boxes, crates, drums and si milar packings, of wood; cable-drums of wood; 
pallets, box pallets and other load boards, of wood 
45.01 natural cork, raw or simply prepared; waste cork; crushed, granulated or ground cork 
46.01 plaits and similar products of plaiting materials, whether or not assembled into strips; plaiting 
materials, plaits and similar products of plaiting materials, bound together in parallel strands or 
woven, in sheet form, whether or not being finished articles (for example, mats, matting, screens) 
53.01 flax, raw or processed but not spun; flax tow and waste (including yarn waste and garnetted 
stock) 
53.02 true hemp, raw or processed but not spun; tow and waste of true hemp (including yarn waste 
and garnetted stock) 
97.05 collections and collectors pieces of zoologi cal, botanical, mineralogical , anatomical, historical, 
archaeological, paleontological, ethnographic or numismatic interest  
 
*  All these goods of vegetable origin are imported to the Republic of Lithuania in line with the Article 5 of  the "Regulations of import and export of goods of vegetable origin to and from the Republic of Lithuania 
 and their transit through the territory of the Republic of Lithuania", i.e. it is obligatory to present to the 
 customs the phytosanitary certificate issued by the Vegetable Quarantine or Vegetable Protection Service 
 of the exporting state. While importing the goods of ve getable origin marked in the appendix with a star 
 (*) one must additionally present to the customs the quarantine permit for import issued by the State Plant 
 Protection Service of the Republic of Lithuania.
] WT/ACC/SPEC/LTU/8/Rev.5 
Page 110  
 
 [Table 13:  Status of Lithuanian Legislation to meet WTO TRIPS Requirements
 
 
TRIPS Agreement Laws and other legal acts addressing 
the subject matter Draft legislation to address subject-
matter 
Part II, Section 1.  Copyright and Related Rights - Law on Copyright and Related 
Rights of 18 May 1999; 
- Law on the Legal Protection of 
Computer Programs and 
Databases of 30 January 1996, which has been incorporated into the Law on Copyright and Related Rights; 
- Membership in the Berne 
Convention since 1994; 
- Membership in the Rome 
Convention since 1999 
- Membership in the Geneva 
Convention since 1999; -
  
Part II, Section 2. 
Trademarks - Law on Trademarks and Service 
Marks of 3 June 1993, as amended and supplemented on 8 November, 
1994 and 13 November, 1997; 
- Membership in the Paris 
Convention from 1994; 
- Membership from 1996 in the 
Nice Agreement (1957) 
Concerning the International 
Classification of Goods and Services for the Purposes of Registration of Marks;  
- Membership from 1997 
(15 November) in the Protocol 
Relating to the Madrid Agreement Concerning the International Registration of Marks; 
- Membership from April 1998 in 
the Trademark Law Treaty (TLT) 
(1994); 
- new Law on Competition of 
23 March 1999 includes provisions on geographical indications;  - amendment to the Law on 
Trademarks and Service  Marks to include measures which are 
prohibited to use in connection 
with geographical indications (terms as "kind", "style", "like", etc.) (in the course of 2000);  
- - amendment to procedures 
followed by the State Patent 
Bureau to certify a mark as well-known (in the course of 2000); 
Part II, Section 3. Geographical Indications - new Law on Competition of 
23 March 1999; - see previous section; 
  WT/ACC/SPEC/LTU/8/Rev.5 
 Page 111 
 
 
 TRIPS Agreement Laws and other legal acts addressing 
the subject matter Draft legislation to address subject-
matter 
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 (amendment is not essential: the term "accumulate for market", which is used in Lithuanian Law 
on Industrial Design should be 
changed into term "selling" used in the TRIPS Agreement) (in the course of 2000);  
 
Part II, Section 5. Patents - Patent Law of 18 January 1994, as 
amended and supplemented of 8 November, 1994, of 9 December, 
1997 and 23 December, 1997;  
- Law on the Protection of Plant 
Varieties and Seed Cultivation of 17 September 1996, as amended and supplemented on 10 June, 1997; 
- Membership in the Paris 
Convention from 1994; 
- Membership in the Patent 
Cooperation Treaty from 1994; 
- Membership in the Budapest 
Treaty on the International 
Recognition of the Deposit of Microorganism for the Purposes of the Patent Procedure from May 1998; - after the comments of WIPO 
concerning conformity of the Patent Law with the provisions of 
TRIPs Agreement, which were 
sent to the State Patent Bureau on May 1998, the amendments will be made in the course of 2000 (amendment to allow patent owner to prohibit the sale of a 
patented products; amendment to 
provide specific occasions when a non-exclusive compulsory licence may be granted; amendment to allow invalidation 
of a compulsory licence); 
Part II, Section 6. 
Layout Designs of Integrated Circuits - Law on the Legal Protection of 
Topographies and Semiconductor Products of 16 June 1998  
Part II, Section 7. 
Protection of Undisclosed 
Information - new Law on Competition of 
23 March 1999;  
Part II, Section 8. 
Control of 
Anti-competitive 
Practices in Contractual Licences - partially new Law on Competition 
of 23 March 1999;  WT/ACC/SPEC/LTU/8/Rev.5 
Page 112  
 
 TRIPS Agreement Laws and other legal acts addressing 
the subject matter Draft legislation to address subject-
matter 
Part III, Section 2. Civil and Administrative Procedures and Remedies - Civil Code of Lithuania; 
- Code of Civil Process of 
Lithuania; 
- Code of Administrative 
Infringements (Article 214(10) 
from 1996); 
- new Law on Competition of 
23 March 1999; 
- Law on Trademarks and Service 
Marks of 3 June 1993; 
- Law on Amendments and 
Supplement to the Code of 
Administrative Infringements (improvements); 
- Law on Copyright and Related 
Rights of 18 May 1999  
Part III, Section 3. 
Provisional Measures - Law on Copyright and Related 
Rights of 18 May 1999 -  
Part III, Section 4. 
Special Requirements 
Related to Border 
Measures - Law on Trademarks and Service 
Marks of 3 June 1993 (only on trademarks and service marks); - draft law on the protection of 
intellectual property for imported and exported goods (in the course 
of 2000); 
Part III, Section 5. 
Criminal Procedures - Criminal Code of Lithuania 
(Articles 35, 142 and 308); 
- Code of Criminal Process of 
Lithuania (Article 126); - draft law on amendment and 
supplement to the Criminal Code (improvements) ( in the course of 2000); 
- - draft law on amendment and 
supplement to the Code of 
Criminal Process (in the course of 
2000); 
] 
__________