WORLD TRADE
ORGANIZATIONG/STR/N/7/LTU
24 September 2002
(02-5105)
Working Party on State Trading Enterprises Original:  English
STATE TRADING
New and Full Notification Pursuant to Article XVII:4(a) of the GATT 1994
and Paragraph 1 of the Understanding on the Interpretation of Article XVII
LITHUANIA
The following communication, dated 16 September 2002, has been received from the
Permanent Mission of Lithuania.
_______________
Pursuant to Article XVII:4(a) of GATT 1994 a nd Paragraph 1 of the Understanding on the
Interpretation of Article XVII of GATT 1994, the Republic of Lithuania has the honour to notify thatit does not maintain any state trading enterprises in accordance with the working definition contained
in paragraph 1 of the above-mentioned Understanding.
Upon the accession, Lithuania has identified five enterprises that have exclusive rights to
produce the alcohol products containing more than 22 per cent of ethyl alcohol by volume. Later, one
more enterprise – stock company “SEMA” – was also given this right for production. Therefore,
currently there are six enterprises having exclusive right for the production of strong alcohol products,although this right does not provide any exclusive right for the importation, exportation and sale of
these products.  Accordingly, following the working definition of state trading enterprises of the
Understanding on the Interpretation of Article XVII of GATT 1994, Lithuania believes that these
companies are not subject to the notification.
However, for transparency reasons, the Lithuanian Government herewith notifies the
operation of these six enterprises (“Stumbras”, “Vilniaus Degtine”, “Anyksciu Vynas”, “Alita” – all
of them are still state enterprises where the state has 70 or more per cent of shares – and two private
companies: stock company “SEMA” and closed-stock company “Lietuviskas Midus”).
I. ENUMERATION OF STATE TRADING ENTERPRISES
A. The Government of the Republic of Lithuania wishes to notify the operation of the following
enterprises: stock companies “Stumbras”, “Vilni aus Degtine”, “Anyksciu Vynas”, “Alita”, “SEMA”
and the closed-stock company “Lietuviskas Midus” – hereinafter called “companies”.
The Law on Alcohol Control approved on 18 April 1995 has granted the companies the
exclusive right to produce the following alcohol products:
- undenatured ethyl alcohol of an alcoholic strength by volume of more than
22 per cent vol.: HS 2207.10;G/STR/N/7/LTU
Page 2
- spirits, liqueurs and other spirituous beverages: HS 2208;
- mead: HS 2206.00.59.
II. REASON AND PURPOSE FOR ESTABLISHING AND MAINTAINING THE
“COMPANIES”
A. The Lithuanian alcohol policy is based on strict regulation of the production of alcohol and
alcoholic beverages with the aim of reducing the negative consequences of alcohol consumption.
More specifically, the reasons for establishing and maintaining exclusive rights for companies
concerned are:
- to ensure quality standards of the domestically produced alcohol products
concerned;
- to encourage Lithuanian enterprises to produce, import and sell alcoholic
beverages which contain less than 22 per cent of ethyl alcohol by volume and
to stimulate the manufacture and sale of non-alcoholic beverages;
- to encourage an alcohol-free social environment and social activities.
A State Alcohol Control Programme that ela borates on the above aims was approved by
Government Resolution No. 212 of 25 February 1999.
B. Exclusive rights to produce alcoholic beverages exceeding 22 per cent of alcoholic strength
are granted according to Article XIII of the Law on Enterprises of 8 May 1990 as amended on
25 September 1997 which provides that “the right to produce alcoholic beverages shall be vested onlyto state and special purpose enterprises unless the Law on Alcohol Control establishes otherwise” and
Article XIII of the Law on Alcohol Control of 18 Ap ril 1995 which provides that “the right to produce
alcoholic beverages, whose ethyl alcohol volume concentration exceeds 22 per cent, shall be granted
only to state and special purpose enterprises, in the manner established by this Law and other legal
acts”.
According to Article XX of the Law on Alcohol Control “it is also prohibited to produce
alcoholic beverages whose ethyl alcohol volume concentration exceeds 50 per cent”. Exceptionally,
the closed-stock company “Lietuviskas Midus” has the right to produce special alcoholic beverages
produced on the base of products obtained by fermentation of honey, i.e. mead (HS 2206.00.59), and
mead brandy (HS 2208.90.69), whose ethyl alcohol volume concentration exceeds 50 per cent (the
import of any alcoholic beverages exceeding 50 per cent of alcohol volume is not restrained).
It should be also underlined, that because four notifying companies with the State capital –
“Stumbras”, “Vilniaus Degtine”, “Anyksciu Vynas” and “Alita” – are planned to be privatised by
August 2003, the exclusive right for the production of strong alcohol products given to these
enterprises will be in force also until August 2003. Due to that fact, the appropriate Law was approvedon 20 June 2002 that foresees the termination of given exclusive right for production.
In the period 1999-2000, Government Resolution No. 1443 of 15 November 1995 on
Licensing the Production of Alcoholic Products laid down the procedure for issuing licenses for the
production of alcoholic products. Since 2001, the procedure for issuing licenses was replaced byGovernment Resolution No. 67 of 22 January 2001.G/STR/N/7/LTU
Page 3
The rights for the companies concerned to produce alcoholic beverages exceeding 22 per cent
of alcoholic strength were granted on the basis of following legal acts:
(a) for “Alita” and “SEMA” – Government Resolution No. 530 of 6 May 1996;
(b) for “Vilniaus Degtine”, “Anyksciu Vynas” and “Stumbras” – Government Resolution
No. 654 of 5 June 1996;
(c) for “Lietuviskas Midus” – Government Resolution No. 1191 of 11 October 1996.
III. DESCRIPTION OF THE FUNCTIONING OF THE “ENTITIES”
A. The companies concerned are performing the following functions:
- producing alcoholic beverages and selling them;
- participating in the implementation of the State Alcohol Control Programme.
B. The Government has granted the companies an exclusive right to produce alcoholic beverages
whose ethyl alcohol volume concentration exceeds 22 per cent, but not more than 50 per cent.
However the closed-stock company “Lietuviskas Midus” has an exclusive right to produce
alcoholic beverages produced on the base of products obtained by the fermentation of honey, whoseethyl alcohol volume concentration exceeds 50 per cent.
C. The companies concerned have no monopolistic or exclusive position on the market since
other operators remain free to purchase, sell, export or import on competitive terms under market
conditions.
D. The Government does not establish any export or import levels of alcoholic beverages and
other alcoholic products.
E. Export operations are conducted according to normal commercial terms, conditions and
practices, including price, profit margins, quality, availability, marketability and other generally
applicable trade regulations.
F. The companies, as it was mentioned, do not ha ve exclusive rights for importing the alcoholic
beverages or any alcohol products. A number of alcoholic beverages importers operate in the
Lithuanian market. Accordingly, the prices of the imported alcoholic beverages are determined by the
market competition on commercial basis. The companies concerned import only raw materialsnecessary for the production process of the final alcoholic beverages.
G. No long-term contracts are negotiated by the companies concerned.H. As far as only the above-mentioned companies have the exclusive rights to produce alcoholic
beverages, the situation in the production of these products in Lithuania is presented in the attached
statistical information on the activities of these comp anies. As it was stressed in paragraphs D, E and
F, the Government does not establish the price and quantity levels for the export, import and sales of
alcoholic beverages. Therefore, in general, enterprises acting in alcoholic beverages import, export
and sales are functioning upon market conditions.G/STR/N/7/LTU
Page 4
IV. STATISTICAL INFORMATION
The activities in 1999 and 2000 by the companies concerned are indicated in the tables (the
attachment – 11 pages).G/STR/N/7/LTU
Page 5TABLE II
ENTERPRISE:  "VILNIAUS DEGTINE"
STATISTICAL INFORMATION, EXPORTS
Description of product(s)
(including HS number(s))Total quantity
exportedQuantity
exported by
enterpriseAverage
procurement
priceAverage
representative
domestic sales priceAverage export
priceNational
production
12 3 4 5 6 7
Year 1999
HS 2208.20 (Brandy) 1.7 0.3 51.3 33.3 405.3
HS 2208.50 (Gin) 0.85 0.4 30.22 9 45.6
HS 2208.60 (Vodka) 74.6 14.8 26.08 14.1 8353.6
HS 2208.70 (Liqueurs) 14.6 7.4 30.04 14 322.6
HS 2208.90 (Other) 98.4 7.1 25.78 7.85 4233.7
Year 2000
HS 2208.20 (Brandy) 1.5 0.2 45.34 26 493.4
HS 2208.50 (Gin) 1.0 0.9 22.87 9.44 60.7
HS 2208.60 (Vodka) 101 15.30 20.48 14.6 13648.1
HS 2208.70 (Liqueurs) 23.1 1.2 24.69 17.41 348.8
HS 2208.90 (Other) 91.5 10.5 22.84 9.28 5612.1
The figures in columns 2, 3 and 7 are in thousand litres.
Columns 5 and 6 are in Litas (Lt) per litre.
Exchange rate: 1 USD = 4 LT.G/STR/N/7/LTU
Page 6 TABLE III
ENTERPRISE:  "VILNIAUS DEGTINE"
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES
Description of product(s) (including
HS number(s)Domestic
purchases by
enterpriseNational
productionProduction  by
enterpriseDomestic sales by
enterpriseAverage
representative
domestic sales priceNational
consumption
12 3 4 5 6 7
Year 1999
HS 2207.10 Undenaturated ethyl alcohol 8170.8 2712 1774.3 4.72 0*
HS 2208.20 (Brandy) 405.3 3.2 6.3 51.3 991.5
HS 2208.50 (Gin) 45.6 30.6 25.1 30.22 52.7
HS 2208.60 (Vodka) 8353.6 2465.6 2466.5 26.08 8432.6
HS 2208.70 (Liqueurs) 322.6 73.6 70.6 30.04 383.6
HS 2208.90 (Other) 4233.7 562.2 543.6 25.78 4308.4
Year 2000
2207.10 Undenaturated ethyl alcohol 12536.2 2252 235.5 6.33 0*
HS 2208.20 (Brandy) 493.4 3.1 4.1 45.34 1079.8
HS 2208.50 (Gin) 60.7 28.7 31.4 22.87 68.4
HS 2208.60 (Vodka) 13648.1 3617.1 3549.9 20.48 15717.3
HS 2208.70 (Liqueurs) 348.8 72.8 74.7 24.69 428.5
HS 2208.90 (Other) 5612.1 743.1 722.3 22.84 5686.7
The figures in columns 3, 4, 5 and 7 are in thousand litres.
Column 6 is in Litas (Lt) per litre.
Exchange rate: 1 USD = 4 LT.* Undenaturated alcohol is used only for the further production of alcoholic beverages, but not for consumption.G/STR/N/7/LTU
Page 7TABLE II
ENTERPRISE:  "ALITA"
STATISTICAL INFORMATION, EXPORTS
Description of product(s)
(including HS number(s))Total quantity
exportedQuantity
exported by
enterpriseAverage
procurement
priceAverage
representative
domestic sales priceAverage export
priceNational
production
12 3 4 5 6 7
Year 1999
HS 2208.20 (Brandy) 1.7 0.6 18.1 21.92 405.3
HS 2208.90 (Other) 98.4 1.0 21.7 9.60 4233.7
Year 2000
HS 2208.20 (Brandy) 1.5 0.9 15.98 20.13 493.4
HS 2208.90 (Other) 91.5 0.8 20.18 16.18 5612.1
The figures in columns 2, 3 and 7 are in thousand litres.
Columns 5 and 6 are in Litas (Lt) per litre.
Exchange rate: 1 USD = 4 LT.G/STR/N/7/LTU
Page 8 TABLE III
ENTERPRISE:  "ALITA"
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES
Description of product(s) (including
HS number(s)Domestic
purchases by
enterpriseNational
productionProduction by
enterpriseDomestic sales
by enterpriseAverage
representative
domestic sales priceNational
consumption
12 3 4 5 6 7
Year 1999
HS 2207.10 (Undenaturated ethyl
alcohol)745.3 8170.8 0*
HS 2208.20 (Brandy) 405.3 239.1 241.2 18.1 991.5
HS 2208.30 (Whiskies) 41 41 33.7 27.5 212.7
HS 2208.90 (Other) 4233.7 25.5 22.6 21.7 4308.4
Year 2000
HS 2207.10 (Undenaturated ethyl
alcohol)1222.7 12536.2 0*
HS 2208.20 (Brandy) 493.4 345.3 352.8 15.98 1079.8
HS 2208.30 (Whiskies) 63.9 63.9 62 22.79 403.2
The figures in columns 2, 3, 4, 5 and 7 are in thousand litres.
Column 6 is in Litas (Lt) per litre.
Exchange rate: 1 USD = 4 LT.
* Undenaturated alcohol is used only for the further production of alcoholic beverages, but not for consumption.G/STR/N/7/LTU
Page 9TABLE II
ENTERPRISE:  "ANYKSCIU VYNAS"
STATISTICAL INFORMATION, EXPORTS
Description of product(s)
(including HS number(s))Total quantity
exportedQuantity
exported by
enterpriseAverage
procurement priceAverage
representative
domestic sales
priceAverage export
priceNational
production
12 3 4 5 6 7
Year 1999
HS 2208.70 (Liqueurs) 14.6 6.5 7.2 7.32 322.6
HS 2208.90 (Other) 98.4 1.2 15.49 14.42 4233.7
Year 2000
HS 2208.70 (Liqueurs) 23.1 3.10 7.2 7.15 348.8
The figures in columns 2, 3 and 7 are in thousand litres.
Columns 5 and 6 are in Litas (Lt) per litre.
Exchange rate: 1 USD = 4 LT.G/STR/N/7/LTU
Page 10
TABLE III
ENTERPRISE:  "ANYKSCIU VYNAS"
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES
Description of product(s)
(including HS number(s)Domestic purchases
by enterpriseNational
productionProduction  by
enterpriseDomestic sales by
enterpriseAverage
representative
domestic sales
priceNational
consumption
12 3 4 5 6 7
Year 1999
HS 2207.10 (Undenaturated ethylalcohol)1837.3 8170.8 0*
HS 2208.60 (Vodka) 8353.6 172 169 4.96 8432.6
HS 2208.70 (Liqueurs) 322.6 59 62.6 7.34 383.6
HS 2208.90 (Other) 4233.7 412 420.7 12.91 4308.4
Year 2000
HS 2207.10 (Undenaturated ethyl
alcohol)1439.4 12536.2 0*
HS 2208.60 (Vodka) 13648.1 1233 1206.8 5.17 15717.3
HS 2208.70 (Liqueurs) 348.8 60 51.3 7.32 428.5
HS 2208.90 (Other) 5612.1 352 243.4 14.57 5686.7
The figures in columns 2, 3, 4, 5 and 7 are in thousand litres.
Column 6 is in Litas (Lt) per litre.
Exchange rate: 1 USD = 4 LT.
* Undenaturated alcohol is used only for the further production of alcoholic beverages, but not for consumption.G/STR/N/7/LTU
Page 11TABLE II
ENTERPRISE:  "STUMBRAS"
STATISTICAL INFORMATION, EXPORTS
Description of product(s)
(including HS number(s))Total quantity
exportedQuantity
exported by
enterpriseAverage
procurement
priceAverage
representative
domestic sales
priceAverage export
priceNational
production
12 3 4 5 6 7
Year 1999
HS 2208.20 (Brandy) 1.7 0.7 43.71 23.28 405.3
HS 2208.50 (Gin) 0.85 0.45 27.94 7.54 45.6
HS 2208.60 (Vodka) 74.6 56 23.15 6.75 8353.6
HS 2208.70 (Liqueurs) 14.6 0.7 21.85 10.11 322.6
HS 2208.90 (Other) 98.4 52.4 25.43 7.4 4233.7
Year 2000
HS 2208.30 (Whiskies) 0.9 0.7 34.64 21.22 63.9
HS 2208.60 (Vodka) 101 84.60 18.14 7.02 13648.1
HS 2208.70 (Liqueurs) 23.1 3.9 17.03 9.12 348.8
HS 2208.90 (Other) 91.5 56 19.79 7.26 5612.1
The figures in columns 2, 3 and 7 are in thousand litres.
Columns 5 and 6 are in Litas (Lt) per litre.Exchange rate: 1 USD = 4 LT.G/STR/N/7/LTU
Page 12 TABLE III
ENTERPRISE:  "STUMBRAS"
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES
Description of product(s)
(including HS number(s)Domestic
purchases by
enterpriseNational
productionProduction  by
enterpriseDomestic sales
by enterpriseAverage
representative
domestic sales priceNational
consumption
1 2 3 4 567
Year 1999
HS 2207.10 (Undenaturated ethylalcohol)8170.8 4476 648 4.76 0*
HS 2208.20 (Brandy) 405.3 163 156 43.71 991.5
HS 2208.50 (Gin) 45.6 15 16 27.94 52.7
HS 2208.60 (Vodka) 8353.6 5716 5764 23.15 8432.6
HS 2208.70 (Liqueurs) 322.6 190 202 21.85 383.6
HS 2208.90 (Other) 4233.7 2798 2812 25.43 4308.4
Year 2000
HS 2207.10 (Undenaturated ethyl
alcohol)12536.2 8369 2743 3.8 0*
HS 2208.20 (Brandy) 493.4 145 144 38.11 1079.8
HS 2208.50 (Gin) 60.7 32 30 20.37 68.4
HS 2208.60 (Vodka) 13648.1 8798 8680 18.14 15717.3
HS 2208.70 (Liqueurs) 348.8 216 216 17.03 428.5
HS 2208.90 (Other) 5612.1 4324 4269 19.79 5686.7
The figures in columns 2, 3, 4, 5 and 7 are in thousand litres.
Column 6 is in Litas (Lt) per litre.
Exchange rate: 1 USD = 4 LT.
* Undenaturated alcohol is used only for the further production of alcoholic beverages, but not for consumption.G/STR/N/7/LTU
Page 13TABLE II
ENTERPRISE:  "LIETUVISKAS MIDUS"
STATISTICAL INFORMATION, EXPORTS
Description of
product(s) (including
HS number(s))Total quantity
exportedQuantity exported by
enterpriseAverage
procurement priceAverage representative
domestic sales priceAverage export
priceNational
production
12 34 56 7
Year 1999
HS 2206.00.59 (Mead) 0.8 0.8 24.57 23.94 7
HS 2208.90.69 (Mead
brandy)4.1 4.1 36.13 33.88 436
Year 2000
HS 2206.00.59 (Mead) 0.68 0.68 23.96 23.38 4.4
HS 2208.90.69 (Mead
brandy)3.63 3.63 37.25 34.8 193
The figures in columns 2, 3 and 7 are in thousand litres.
Columns 5 and 6 are in Litas (Lt) per litre.
Exchange rate: 1 USD = 4 LT.G/STR/N/7/LTU
Page 14
TABLE III
ENTERPRISE:  "LIETUVISKAS MIDUS"
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES
Description of product(s)
(including HS number(s)Domestic
purchases
enterpriseNational
productionProduction  by
enterpriseDomestic sales by
enterpriseAverage
representative
domestic sales priceNational
consumption
12 3 4 56 7
Year 1999
HS 2206.00.59 (Mead) 7 7 7 24.57 6.2
HS 2208.90.69 (Mead brandy) 436 436 436 36.13 n.a.
Year 2000
HS 2206.00.59 (Mead) 4.4 4.4 4.8 23.96 3.7
HS 2208.90.69 (Mead brandy) 193 193 193 37.25 n.a.
The figures in columns 3, 4, 5 and 7 are in thousand litres.
Column 6 is in Litas (Lt) per litre.
Exchange rate: 1 USD = 4 LT.G/STR/N/7/LTU
Page 15TABLE III
ENTERPRISE:  "SEMA"*
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES
Description of product(s)
(including HS number(s)Domestic
purchases by
enterpriseNational
productionProduction  by
enterpriseDomestic sales
by enterpriseAverage
representative
domestic sales priceNational
consumption
12 3 4 5 6 7
Year 1999
HS 2207.10 (Undenaturated ethyl
alcohol)8170.8 982.8 1285.3 5.29 0**
Year 2000
HS 2207.10 (Undenaturated ethyl
alcohol)12536.2 1915.2 688 5.67 0**
* Enterprise "SEMA" did not export during the reported period.
** Undenatured alcohol is used only for the further pro duction of alcoholic beverages, but not for consumption.
The figures in columns 3, 4, 5 and 7 are in thousand litres.
Column 6 is in Litas (Lt) per litre.
Exchange rate: 1 USD = 4 LT.
__________