RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/LTU/8/Rev.4 
25 June 1999 
 (99-2629) 
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 Lithuania applied for a ccession to the General Agreement on Tariffs and 
Trade (GATT 1947) in January 1994.  At its meet ing on 22-23 February 1994, the GATT 1947 Council 
of Representatives established 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, Lit huania requested accession to the World Trade 
Organization (WTO) under Article XII of the Marr akesh Agreement Establishing the World Trade 
Organization.  In accordance with the Decision adopted by  the WTO General Council on 
31 January 1995, the existing GATT 1947 Accession Working Party was transformed into a WTO 
Accession Working Party.  The terms of referenc e and the membership of the Working Party are 
reproduced in document WT/A CC/LTU/1/Rev.5/Corr.1. 
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 discu ssions, a Memorandum on the 
Foreign Trade Regime of Lithuania (L/7551), the qu estions submitted by Memb ers on the foreign trade 
regime of Lithuania together with the replies thereto and other inform ation 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/ACC/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 and ...), including the legislative texts and other documentation listed in Annex I. WT/ACC/SPEC/LTU/8/Rev.4 
Page 2  
 
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 restoration 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, de regulation of prices and 
trade, in close cooperation with international in stitutions.  However, economic transformation could 
only be successful if supported by integration in to 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 overall balance of payments was in surplus despite a 
trade deficit.  Lithuania had resisted protectionism in a period of difficult economic transition.  The 
foreign trade regime would be liberalized further.  Several trade agreements had been signed, reducing 
barriers to trade, and other agre ements were under negotia tion.  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 polic ies and foreign trade regime of Lithuania and 
the possible terms of a draft Protocol of Accession to the WTO.  The views expressed by members of 
the Working Party on the various aspects of Lithuani a's foreign trade regime [, and on the terms and 
conditions of Lithuania's accession to the WTO] ar e summarized below in paragraphs 8 to [176]. 
ECONOMIC POLICIES Monetary and Fiscal Policy
 
8. The representative of Lithuania recalled that  the direction of macro-economic policies during 
1995 to 1997 was laid down in a Memo randum of State Economic Policy of  the Republic of Lithuania, a 
copy of which had been provided to the Working Part y.  More specifically, he explained that the tax  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 3 
 
 
system consisted of corporate profit tax;  personal income tax;  value added tax;  excises;  taxes on 
natural resources, oil and gas;  pollution tax;  custom s duties;  a tax on fixed property;  road tax;  land 
taxes;  stamp tax on activity (for example, for obtai ning licences);  and other taxes (inheritance tax, 
consular fees, etc.).  The tax on pollution was meant to encourage investment in clean (environmentally-
friendly) technologies.  The tax was levied on legal and natural persons polluting the environment.  The 
tax was specific and its level was established ba sed on the quantity, degree of harm and type of 
pollution.  Since July 1995 (Government Resolution No. 1026), the corporate profit tax was reduced for 
certain sectors, notably those re lated to production of medicines a nd medical services, agricultural 
machinery, waste processing and disposal, new forms of energy, transportation, construction and 
telecommunications.  Taxes on fixed property and the road tax had been introduced in 1995.  The road 
tax was levied on enterprise revenu e (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 Lithuania's currency board arrangement, 
implemented by the Bank of Lithuania in accordance w ith 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.  
Based on the present currency board arrangement,  the monetary policy function of the Bank of 
Lithuania would be developed into a regime of discretionary currency issue after the Law on the 
Credibility of the Litas had been amended and supplemented, followed by the introduction of new 
monetary policy measures and stabilizat ion of the credit and money market. 
Foreign Exchange and Payments  
10. The representative of Lithuania informed th e Working Party that his country had recorded 
deficits in its merc handise trade equal to US$324 million in 1994, US$943 million in 1995, 
US$1,124 million in 1996, US$1,784 million in 1997, and US$1,518 million in 1998.  Monetary and 
foreign exchange policies 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.  Lithuania's acceptance of the requirements of Article VIII of the Articles of Agreement of the IMF, providing for currency conver tibility for current international transactions, constituted formal 
confirmation of the maintenance of convertibility of the Litas.  The Monetary Policy Programme for 
1997-1999 of the Bank of Lithuania would allow the Lita s to be linked to a US dollar/euro basket, but 
not before 2000.  Lithuania maintained no restrict ions on capital transfers.   Residents could open 
accounts in foreign banks and non-residents were al lowed to keep accounts wi th commercial banks in 
Lithuania.  Current accounts and other types of accounts in any currency  could be opened and 
maintained without restriction. WT/ACC/SPEC/LTU/8/Rev.4 
Page 4  
 
Investment Regime
 
11. The representative of Lithuania said that fore ign and domestic investment  was as a rule treated 
equally, except that foreign investme nt was prohibited in ar eas related to national security and defence, 
narcotic and poisonous subs tances, and the organizing of lotteri es in accordance with the Law on 
Foreign Capital Investment s in the Republic of Lithuania.  Furt her, in June 1996, Parliament (the 
Seimas) had approved an amendment to the Constitu tion allowing foreigners to purchase certain types 
of land (non-agricultural plots required for the construction and op eration of buildings and facilities 
necessary for their direct activity). 
12. The Law on Foreign Capital Inve stments stipulated that taxation of foreign enterprises be no 
less favourable than the rules applied to domestic natural and legal persons.  Lithuania offe red certain 
tax holidays.  Enterprises established between 1 A ugust 1995 and 1 April 1997, with foreign investment 
of minimum US$2 million were exempt from profit (income) tax for the fi rst three years and subject to a 
50 per cent tax reduction for the following three ye ars, starting from the day the first profit was 
achieved.  Domestic and foreign small enterprises (number of employees not exceeding 50 and annual 
sales of no more than 500,000 Litas) received tax reductions amounting to 70 per cent for the first two 
years after their establishment and 50 per cent for each year thereafter.  Producers of agricultural 
products were assessed profit tax at  the rate of 10 per cent provided the agricultural items accounted for 
minimum 60 per cent of total sales of the enterpri se.  As from 1 April 1997, Lithuania exempted all 
profit of domestic or foreign enterprises spent on ca pital investments from profit  (income) tax.  Foreign 
investors had the right, having paid the taxes, to tr ansfer the profit, income or dividends belonging to 
them by virtue of ownership to a foreign country without any restrictions.  If an enterprise was under 
liquidation by its founders, the asse ts or a portion thereof corresponding to the amount of foreign 
investment which, on the decision of the shareholders , were due to foreign inve stors, could be taken out 
of the country tax free (covering physical and financial as sets) upon payment 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 dome stic inputs in the production process.  Since 
1 October 1998, an investor investing not less than 200 million Litas within three years could request an 
investment agreement with the Government.  The agreem ent confirmed that direct taxes stipulated in the 
tax laws in force at the time of in vestment could not be increased for th is enterprise for a period of five 
years from the time of the investment.  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 5 
 
 
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 repurch asing of land.  Most of this pr ivatization, 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 and Munici pal Property had entered 
into force in September 1995, providing for privatiz ation through public subscription of shares;  public 
auction;  public tender;  sale thr ough direct negotiation;  joint-ventur es with State property;  capital 
lease;  and the creation of a St ate Privatization Agency (State Property Fund from 11 May 1998).  The 
State had retained stakes in some farms or enterprise s (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 enterprises.  The 1995 Law st ipulated that foreign and domestic investors would 
participate in the privatization pr ocess on an equal basis, both in the form of direct and portfolio 
investments.  Pursuant to the 1995 Law, the Government had establishe d a list of enterprises in agro-
processing, agro-services and industrial sectors to be subject to tendering.  The list established in 1997 
comprised 1,114 enterprises, including enterprises part-privatized at the first stage of privatization, and 
large-scale enterprises previously excluded from privatization such as energy, communications and transport services. 
14. Privatization in agriculture
, including the restoration of land to former owners, had proceeded 
despite certain legal pr oblems (only the State and natural persons could own land), uneconomic 
partitioning of land and other main as sets, and lack of capital for family  farming.  The general policy in 
this area was to offer pref erential bidding terms to agricultural producers.  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 been 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 vari ous privatization efforts, by 1 January 1999 Lithuania had wholly 
privatized all State-owned farms (not including agricultural processing enterprises).  As of the same date, Lithuania had made significant progress in th e privatization of 287 agro-processing (meat, milk, 
grain, crop selection, etc.) and agro-service enterprises that were identified for privatization and expected to complete the process by 2000.  Thes e 287 enterprises represente d the entire share of all 
State-owned assets in agro-processing.  The State had excluded from the privatization process its stakes WT/ACC/SPEC/LTU/8/Rev.4 
Page 6  
 
in (i) 19 experimental farms at research institutions  of agricultural science studies;   (ii) 54 teaching 
farms at agriculture schools;  and (iii) eight farms of pure-strain en terprises.  However,  the State was not 
the sole provider of agriculture research and technical facilities.  Private companies were free to engage 
in such activities, and there were no restrictions or special requirements on impor ts of such products and 
services. 
16. Significant progress had also b een made in privatizing industry
.  As of 1 January 1999, the 
Government estimated that approximately 88 per cent of the industrial (goods) enterprises and 
97 per cent of the services enterprises identified for pr ivatization, had been privatized.  The privatization 
process had been given new impetus by the deci sion to allow privatiza tion in industrial and non-
agricultural service sectors to take  place on a cash (rather than vouche r) 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, retained during the first stage of pr ivatization, to qualified bi dders.  The Lithuanian 
Government had built on its success in privatizing sm all and medium sized enterprises to draw up plans 
for the privatization of 9 large a nd strategic enterp rises in key industries and services sectors (energy, 
communications, transportation, etc.).  Privatizati on was carried out on a cash  basis and was open to 
foreign and domestic investors alike.  In additi on, the Government had undertaken programmes to 
privatize the two remaining State commercial banks in  Lithuania - the Lithuanian Savings Bank and the 
Lithuanian Agriculture Bank.  These currently Stat e-owned enterprises and banks represented the bulk 
of the remaining capital to be transferred to privat e ownership.  The process of privatizing the 9 State 
enterprises and the banks was expected to continue  for some time.  The largest ever privatization 
contract in the Baltic States ha d been concluded on 7 July 1998 with the purchase of 60 per cent of 
"Lietuvas Telekomas" (L ithuanian Telecom) by Amber Teleho ldings, a consortium owned by Telia 
(Sweden) and Sonora (Finland)  The other 40 per cent of Lietuvas Teleko mas remained in State 
ownership.  A hotel ("Lietuva"), a sea cargo compan y ("Klaipedos Smelte") and a ship repair yard 
("Vakaru laivu remontas") had also  been privatized, and other ente rprises were in the process of 
privatization. 
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 ha d been reexamined, and the author ities 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 re creation, transportation, pharmacies and postal services.  The list had 
subsequently been reduced under an amendment to this Law on 3 April 1997, and currently comprised 
95 entities.  The Government would review the need for further privatization in 2000.  In addition, 142 
enterprises were currently not included in the privatization plans, including strategic entities such as the 
State Nuclear Power Plant, Lithuanian Post, airpor ts, railways and their in frastructure, pipelines, 
electricity transmission lines, sea ports, etc.  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 7 
 
 
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 enterprises still wholly or partly owned by the 
State, information on how many State-owned firms ex isted prior to privatization, how many had been 
fully privatized,  a list of enterprises and sectors stil l wholly or partly owned by the State, the portion of 
equity still owned by the State, the portion of outpu t 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 contemplat ed as part of the privatization progra mme.  Lithuania should also define the 
conditions whereby it would consider its privatiza tion 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 doc ument WT/ACC/LTU/17 of 26 September 1997.  Of 
the approximately 8,050 enterprises ow ned by the State prior to privatiz ation, 5,714 entities valued at 
3.9 billion litas had been privatized during the fi rst stage of privatization (1991-1995).  Entities not 
100 per cent privatized during the first stage had been included in the second stage of privatization.  The 
second stage (January 1996 – January 1999) had covered the privatization of 664 entities worth some 
2.4 billion litas.  Detailed information on privatiza tion of State and municipal assets and agricultural 
enterprises is presented in Table 1(a)-(c). 
19. The representative of Lithuania said that Lith uania agreed to continue to provide information 
[every two years] [on an annual basis] on developmen ts in its programme of privatization after accession 
along the lines of that provided to the Work ing Party during the accession process [until 
1 January 2003].  The Working Party took note of this [assurance][commitment]. 
Pricing Policies  
20. Some members of the Working Party noted that  certain goods and servic es remained subject to 
price controls and requeste d details and plans regarding further de regulation of prices.  Lithuania was 
asked to list the products subject to  price controls and to provide info rmation on the legal basis for these 
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 pr ocessor or retail level.  He provided an updated list of goods and services 
subject to price control, reproduced  in Table 2.  He di d 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 telecommunica tions would be linked to increasing competition resulting from 
economic restructuring and privatizat ion.  He confirmed that Lithua nian industries did not receive WT/ACC/SPEC/LTU/8/Rev.4 
Page 8  
 
electricity and gas at subsidized prices, but price c ontrols would remain on resi dential use of electricity, 
natural gas and heating to support low-income househol ds.  Private health service providers could not 
exceed the prices set for St ate-supplied services by mo re than 60 per cent [a draft law abolishing this 
restriction is in preparation].  This measure was appl ied in an environment of insufficient competition to 
alleviate the financial burden on the State Social Insu rance Fund, which compensated citizens fully or in 
part for their expenditures on health  services and pharmaceuticals.  He said that the price control on 
State-owned land was connected with the restoration of private land ownership as part of agricultural 
reform.  He further stated that price control on Stat e-owned land would be abolis hed after the restoration 
of private land ownership in the course of the implementation of ag ricultural reform.  Upright wood 
(HS 0602.99.41) from State-owned fore sts was subject to minimum, not maximum, prices.  Wood from 
private-owned forests was not under State price regula tion.  He confirmed that the Government would 
revise those price controls.  He c onfirmed that prices of goods and se rvices 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 cha nges 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 Lithuania confirmed that in the application of minimum prices and price 
controls on products and services c ontained in Table 2, and any [such prices, his Government][that are 
introduced or re-introduced in the future, Lithuania]  will apply such measures in a WTO consistent 
fashion, and take account of the interests of expor ting WTO Members as provided for in Article III.9 of 
the GATT 1994.  Lithuania also will publish the list of goods and services subjec t to State price controls 
in the Official Gaze tte 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 the new Law on Competition had been adopted by 
Parliament on 11 February 1999.  The new Law,  which had replaced the 1992 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 competiti on.  [The union of sugar producers is exempt 
from the Law on Competition under the existing Law on Sugar.  Lithuania's Government decided to 
eliminate this provision on 12 May 1999, and has submitted a draft amendment to the Law on Sugar 
to Parliament for approval.]  He added that th e Government had approved Resolution No.137 of 18 
February 1997 concerning the "Order of Execution of the State Support", which sought to prevent 
distortions to competition being created by State support provided to operators in the market.  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 9 
 
 
24. The State Competition and Cons umer Protection Office had inve stigated 48 cases of abuse of 
dominant position between 1992 and 1 January 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 Of fice) had listed six enterprises hol ding from 60 to 90 per cent of 
their respective markets and havi ng 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 violatio n (abuse of dominant position, mergers, unfair competition, 
prohibited agreements) of the Law on Competition had been investigat ed, and the Competition Council 
had adopted the appropriat e decisions.  Fines had been impose d in 36 cases.  By 1 August 1998, 46 
investigations had been carried out on the basis of co mplaints or at the Council's own initiative.  The 
Council had taken 17 decisions, and fined 19 economic entities,  until March 1999. 
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 the 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 Minister and currently consisted 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 Presiden t.  The Government implemented legal acts in the 
form of resolutions.  Each resolution of the Government was an act incorporating concrete 
implementation measures.  Thus, legal acts of the Government did not require further approval by 
Parliament.  In exceptional circ umstances requiring immediate decision, 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 Lithuania comprised the Constitution, Constitutional Law, 
International Treaties and Agreemen ts, Laws and other legal acts adopted  by Parliament, decrees of the 
President, Government Resolutions, and other legal acts of governmental bodies.  The Law on Order of WT/ACC/SPEC/LTU/8/Rev.4 
Page 10  
 
Publishing and Entry into Force of Legal Acts of 6 April 1993 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 comprised the Constitutional Court, the Supreme Court, the Appeals Court, the County Court and District (city) Courts, and th e system of administrative courts  described in paragraph [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, de riving 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 the 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 mechanis m 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 fr eely and independently 
within the limits of their competence, establishe d 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-centra l administrative authorities , e.g. local administrativ e bodies, had no jurisdiction 
or authority to establish regulations or taxes on goods and services in Lithuania independent of the 
central authorities, and that application of these me asures was exclusively the responsibility of the 
executive and legislative branches of the central Government. 
29. The representative of Lithuania stated that, from  the date of accession, Lithuania would ensure 
observance of the provisions of WTO by its local authorities, including Article XXIV:12 of the GATT 
1994 and the Understanding on the Interpretation of Ar ticle XXIV:12 and Article I:3(a) of GATS.  The 
Working Party took note of this commitment.  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 11 
 
 
POLICIES AFFECTING TRADE IN GOODS 
Trading Rights  
30. Some members of the Working Party noted that  laws and regulations re lating 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 vi olation of the general prohibition on  quantitative rest rictions in GATT 
Article XI:1, nor should they discriminate against imported goods in violation of the non-discrimination 
provisions of GATT Article III:4.  Furthermore, fees and charges levi ed 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 a ttached 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 distingui shed between imported products a nd 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 nece ssary and, in particul ar, 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 goo ds-related business acti vities subject to licen sing 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 inte nded 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 significantly reduced under a new amendment of the Law 
on Enterprises, and he expected further reductions in  the number of licensed activities in the future.  
Licensing of commercial activity, including importation, was currently  applied to products containing 
alcohol; tobacco and tobacco product s;  oil products;  narcotics and poisonous substances;  and 
ammunition, weapons and pyrotechni cs (updated information on licens ing criteria for imported goods 
was provided in document WT/ACC/LTU/19).  Tw o activities - production of products with ethyl 
alcoholic strength exceeding 22 per cent;  and the prin ting of money, postage st amps and coins  - could 
only be undertaken by enterprises owned by the St ate or municipalities, or special enterprises. WT/ACC/SPEC/LTU/8/Rev.4 
Page 12  
 
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 Lith uania, importation and retail trade.  The Agency issued licences for 
importation and wholesale trade in alcoholic beverages while retail traders obtained authorization from municipal authorities.  He stress ed that domestically-produced al cohol was subject to the same 
restrictions and regulations as imported products.  In all, about 12,000 wholes ale and retail licences had 
been issued during 1995, about 11,000 wholesale and retail licences in  the course of 1996, and some 
10,500 import, wholesale and retail licences in the course of 1997. 
34. The activity licensing for importation of alcoholi c beverages had been 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 restri ct 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.  Ac tivity licences for importation of alcoholic 
beverages were accordingly now grante d to all applicants against payment of the stamp tax provided the 
companies were registered in Lithuania, followed the regular procedures for obtaining a licence, and 
submitted all documentation require d under Lithuanian law.  The c onditions 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 whol esale and retail trade of alcohol - previously 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: 
(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 strategi c goods - production and importation was strictly controlled for 
reasons of national security (acco rding to COCOM requirements - see paragraph [65] for further 
details) or environmental protection;  
(iii) the right to manufacture products of ethyl al coholic strength exceeding 22 per cent (by volume) 
was reserved for enterprises owned by the State or municipalities, or special enterprises;  and  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 13 
 
 
(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 an d petroleum products are 
listed in Table 4.  Tax rates had been establ ished in accordance with Resolution No. 1123 of 
11 November 1994, and were indexed to the rate of in flation.  The tax was related or limited to the 
approximate cost of the services rendered and differed according to th e nature of the licensed activity, 
bearing in mind that activity licen ces to import alcoholic beverages and petroleum products would also 
cover wholesale of the products, a nd that importation/wholes ale licences also in cluded a larger number 
of products than wholesale licences  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 wholesalers 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 lic ensing as a method of regulation and revenue, 
but was concerned that licences such as those to import alcohol and petroleum had been 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 di sguised tax on the importation of refi ned 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 products were a disgui sed tax on that trade.  Lithuania would need to 
change its system if it amounted to a tax on importation. 
38. The representative of Lithuania replied that new rates of stamp tax ha d been established in 
June 1998 in accordance with Government Resoluti on No. 774.  The new equalized stamp taxes for 
engaging in importation and trade in alcoholic beve rages would be applied fro m 1 January 2000.  Under 
the new order, an activity licence, valid for one year , to import and engage in wholesale of imported 
vodka and other spirits would cost 100,000 litas (US$25,000);  for wine and beer - 50,000 litas (US$12,500);  beer only - 15,000 litas (US$3,750);  and 500 litas (US$125) for alcohol products.  The 
same taxes would be charged for activity licences to  engage in wholesale trade of alcohol produced in 
Lithuania (see Table 4 for a full list of these stam p taxes).  An activity licen ce to import alcoholic 
beverages would also cover wholesale of the products.   The importation/wholesale licence also included WT/ACC/SPEC/LTU/8/Rev.4 
Page 14  
 
a larger number of beverage brands (about 400) than a wholesale licence for domestically-produced 
beverages (some 100-150 produc ts).  The licence fee for importati on of tobacco products - Ltl. 15,000 
per year - was equal to the corresponding fee for wholesale trade in tobacco products according to 
Government Resolution No. 180 of 13 February 1998. 
39. The representative of Lithuani a confirmed that the former St ate monopoly in foreign trade had 
been abolished and that no restri ctions existed on the right of fore ign 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 Li thuania 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 in terested Members.  
Lithuania's Schedule of Conces sions and Commitments on Goods is annexed to the Protocol of 
Accession of Lithuania which is reprodu ced in the Appendix to this Report. 
A. IMPORT REGULATION 
Customs Code  
42. The representative of Lithuania said that th e Seimas had approved a new 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 new Cust oms Code had entered into force on 1 January 1998.  
The Customs Code was based on the provisions of  the 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][would be] fully based on the Implementing 
Provisions of the Community Customs Code  (Commission Regulat ion 93/2454/EEC and its 
amendments).  [A member requested  clarification on what aspects of EC "implementing provisions" had 
been adopted.]  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 15 
 
 
[43.  The representative of Lithuania confirmed th at Lithuania's customs re gulations 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 Conventi on 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, which had entered in to force on 1 July 1998.  Tariff rates could be 
changed by government decision based on proposals by Ministries, taking ac count of Lithuania's 
international obligations and commitments.  Tari ffs had accordingly been reduced on major food 
products (milk and dair y products, butter, eggs, sausages and su gar) in September 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, s ugar, 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 provisional  measures for the facilitation 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.  [Accordi ng to Lithuania, the current applied tariffs do not 
exceed the bound levels proposed by Lithuania in the contex t of its market access negotiations.]  The 
applied customs tariff was provided to the Working Pa rty [the latest version has been established in 
accordance with Government Resolutions Nos. 793 of 30 June 1998 and 1245 of 20 October 1998].  
Goods were subject to the autonomo us rate of duty, except for imports originating in countries enjoying 
most-favoured-nation status in Lithuania which we re subject to conventional 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 specifi c 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 impor ts after accession would 
be in accordance with WTO provisi ons.  He further confirmed that L ithuania would not list any other 
charges in its goods schedule under Article II:1(b) of the GATT 1994, binding such charges at "zero". WT/ACC/SPEC/LTU/8/Rev.4 
Page 16  
 
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 aske d to specify the goods subjec t to tariff quotas and to 
explain the operation of the quota system.  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 th e 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. The general tariff quotas allowe d importation at zero (or redu ced) tariffs for a very limited 
number of agricultural commodities and a few industri al products.  The applica tion of tariff quotas was 
intended to be temporary;  they were granted onl y when domestic production of a certain commodity or 
products, combined with imports at  the MFN tariff rate, would be in sufficient to satisfy domestic 
demand.  If such a shortage was deemed imminent  in Lithuania, the tariff quota amount would be 
determined and a public tender announced in the Offi cial Gazette.  Enterpri ses requesting quotas or 
participation in tenders submitted a pplication forms to the responsible Mi nistry.  Tariff rate quotas for 
the main agricultural products and f oodstuffs were auctioned to the hi ghest bidder, and tariff quotas for 
some products (such as pure-breed ing animals and poultry, semen, boars, etc.) were provided to 
applicants without restri ction.  Domestic sugar processors we re required to exhaust the supply of 
domestic raw sugar before being allo wed to import raw or white (refin ed) sugar at zero duty under tariff 
quotas.  Unlimited quantities of ra w or white sugar could be imported  at the MFN over-quota duty rate 
at any time.  Concerning the allocation of the tarif f-rate quotas for raw sugar, the Government (Ministry 
of Agriculture) would select one or more suppliers based on th e highest bid.  The winner(s) 
subsequently concluded contracts with domestic proc essors having filled their purchasing quotas for 
domestic sugar beets.  Entitlements to tariff quotas for irregular transparent glass bottles was automatic 
upon presentation of the application and the sales contra ct.  Tariff quotas for special ships furniture had 
been abolished. 
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 ge neral tariff-rate quotas 
(30 per cent reduction of the tariff rate) opened in  accordance with Government Resolution No. 268 of  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 17 
 
 
24 March 1997.  Permission was granted automatica lly upon presentation of an application and a sales 
contract, but only to companies holding activity licen ces for the production of al coholic beverages, i.e. 
nine authorized producers (not necessarily "State  enterprises") which had obtained licences from the 
State Tobacco and Alcohol Control Agency to im port alcohol and produce al coholic beverages.  
Enterprises not licensed for the produ ction 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 a commitment paragraph addressing the disposal, prior to accession, of 
Lithuania's requirement to use domestic sugar prior to  allowing imports.  In reply, the representative of 
Lithuania said that cultivation a nd processing of sugar beet, purchase and sale of domestic sugar, and 
importation/exportation of s ugar, raw sugar and products containi ng sugar would be covered by a new 
sugar regime to be approved by the Government.  The Government would introduce the new regime 
within three months after the passage of the new Sugar Law by Parliament.  In accordance with WTO 
requirements, the [draft] Law [which has been  approved by the Government and submitted to 
Parliament for approval] eliminated protective measures for the domestic sugar market such as 
minimum import prices, minimum purchase prices  for sugar produced from beet purchased under 
quotas, and arrangements making sugar processors' im ports of sugar under tariff quota conditional on 
the purchase of specific quantities of domestically-produ ced beet sugar.  He confirmed that the new 
regime would grant no special privileges to Lithuanian producers.  [Current measures regulating the 
sugar market are import duty, excise duty (intro duced on 1 November 1998, for sugar and products 
containing more than 20 per cent sugar), automatic import licensing, and minimum import prices (to be abolished on 1 January 2000).][Some members have reiterated their request for more information concerning the new Law on Sugar.  Until the provi sions of the new Law on Sugar (under preparation) 
are known, a member reserves on all aspects of th e report and protocol addressing the restrictions, 
subsidies, and other requi rements in this area.] 
52. The representative of Lithuania said that from the date of accession any application of [general] 
tariff rate quotas would be in accordance with th e 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 Lithuania said that, in accordance with the Law on Stamp Tax of 
23 June 1994 and rates established through Resolu tions No. 1123 of 11 November 1994 and No. 640 of 
23 June 1997, stamp taxes were levied  for the issuance of official documents (suc h as licences) as well WT/ACC/SPEC/LTU/8/Rev.4 
Page 18  
 
as for the provision of certain services by gove rnment institutions, incl uding customs clearance 
operations.  Stamp taxes were coll ected by the institutions responsible for issuing the appropriate 
documents.  The State Tax Inspectorate of the Mini stry of Finance controlled how these institutions 
collected the Stamp Taxes.  He stated that the St amp Tax was set at different rates depending on the 
nature of the product and the type of service provi ded.  Customs services fees amounted to 20 to 
30 Litas for the registration of goods and 25 Litas fo r the issuance of documents, 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 performed outside the Customs office or outside its 
normal business hours, for the supply of non-confidenti al 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 particular whether formalization 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 compre hensive, 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 issue until Lithuania clar ified why these taxes were applied, their scope in 
trade and domestic use, and why they seemed to be clustered on import trade.  In reply, the 
representative of Lithuania said that the list of st amp taxes provided in Table 5 covered the fees and 
charges for services rendered relati ng to importation and exportation, and the list 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 ac cession any application of  fees and charges by 
Lithuania for services rendered on or in connectio n with importation or exportation would be in 
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 Li thuania to enumerate the 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 [reproduced in Table 6].  Rates were ad valorem , in some cases specific minima  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 19 
 
 
had been established (in Litas per unit).  Lithuania had no plans to  convert specific amounts into 
ad valorem  rates since large price differentials existe d between domestic and imported goods.  On 
domestic products, excise taxes were levied on the selling price exclusive of VAT;  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, while 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 diffe rential treatment of 
tobacco excise taxes for "Philip Morris Lietuva" and "House of Prince Lietuva" [Table 6, footnote] had expired and that all tobacco  products were taxed equally;  (iii) explain the ex emption for a jet fuel joint 
venture;  and (iv) explain why mead s were taxed at a rate different fro m 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 di fferentiated (based on 
quality) for cigarettes and certain domestically-pr oduced and imported wine and beer (in accordance 
with Government Resolution No. 328 of 9 April 1997).  Lithuania had taken conc rete steps to bring its 
excise taxes into conformity wi th GATT Article III.  Import ed wine was no longer taxed at 
differentiated rates, and differentiated excise  taxes had been abolis hed for both imported and 
domestically-produced f ilter-tipped cigarettes according to  Government Resolution No. 393 of 
3 April 1998.  Addressing the specif ic points, he said that (i) a lo wer rate of exci se tax for small 
producers of beer (0.2 Litas per litre for those wi th annual production below 100,000 dekalitres) was a 
transitional measure which, according to the Amendment to the Law on Excise Taxes No.VIII-982 of 21 December 1998, would expire on [1 January 2000 (the Government has approved a decision to 
abolish this measure on this date and has submitted this decision to Parliament for its consideration)];  
(ii) "Philip Morris Lietuva" was at present the only importer of tobacco (HS 2403.10.90.1.) for the 
production of cigarettes.  The "House of Prince Lietuva" did not produce cigarettes and therefore did 
not benefit from the exemption.  However, accord ing to the Law any new entrant would benefit from 
the same exemption which, in his view, justified su ch differential treatment of tobacco;  (iii) excise 
tax was not levied on enterprises transporting passenge rs or cargo in international air traffic, and 
imported and domestically produced jet fuel (HS code 2710.00.51.0) receive d equal treatment in 
accordance with the Amendment to the Law on Ex cise Taxes No. VIII-982 of 21 December 1998.  
The list of tax exempt enterprises (at present the joint-stock companies "Lietuvos avialinijos" and 
"Lietuva") was determined by the Government, and the tax exemption was considered a subsidy to the 
service supplier;  and (iv) the excise tax exemp tion 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 WT/ACC/SPEC/LTU/8/Rev.4 
Page 20  
 
21 December 1998.  Concerning the excise tax di fferentiation between mead and other distilled 
spirits, he stressed that products under HS Code 2208.90.69.1 included mead of foreign origin, and 
Lithuania's treatment was therefore, in hi s view, consistent with GATT Article III. 
59. The representative of Lithuania added that s ugar and products containi ng 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.  Purc hase 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, excise tax had been introduced on suga r and sugar containing products at 
the rate of Llt 1 per kg sugar.  The tax was le vied 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 re venue 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 imported like-products in the lig ht of Article III of th e 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 importe d into bonded warehouses and all exports were zero rated, and a number of 
goods and services were exempt fro m VAT (Table 7).  Provisions regarding VAT were changed in 1995 
and 1996;  a temporary rate of 9 pe r cent and exemptions from VAT for some products had been applied 
until 1 January 1997.  Since that date, both domes tic and imported products had been subject to 
18 per cent value added tax.  The tax base for the imposition of VAT included excise taxes, if any, and 
customs duties on imported products. 
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.  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 21 
 
 
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 accession.  This member also 
noted a ban on imports of alcoholic beverages with more than 50 per cent alcohol content, although one 
such beverage (mead) was produced domestically by a State-trading enterprise, and stated that this practice was not justifiable under Article XX of the GATT.  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 t obacco (HS 2403.99.10.0), which was administered in 
conjunction with a ban on domestic production of th e same products which would be justified under 
Article XX(b) of the GATT 1994.  A ban on the importa tion of mead and other beverages with alcohol 
content of more than 50 per cent had been abolis hed 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 authorized the introduc tion of production and impo rt quotas for certain 
alcohol products should the numb er of patients suffering from al coholic 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  according to the format applicable to WTO 
Members was provided to the Working Part y in documents WT/ACC/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 contro lled substances (HS codes 1211; 1301; 1302; 2905; 2918; 2921; 2922; 
2924; 2925; 2926; 2932; 2933; 2934; 2939; 2914.30. 10; 2924.29.50; 2932.90.75; 2932.90.77;  
2939.40.10;  2939.40.30;  2939.60.10;  2939.60.30;  2939.60.50;  2939.90.71)   - justified under 
Article XX(b); 
- goods and loads of dual purpose (civil and military ), means of defence, chemical and biological 
materials which can be used in the production of  chemical and bacteriol ogical weapons of mass 
destruction;  nuclear missiles, equipment and technologies;  and goods and technologies used in 
the production of missiles - justified under Article XXI; 
- dangerous loads (United Nations list of goods - justifie d under Article XXI); WT/ACC/SPEC/LTU/8/Rev.4 
Page 22  
 
- used tyres (HS 4012.20.90) and electric fish ing tackle (HS 8543.80.80.0) - justified under 
Article XX for reasons of environmental protection.  The criteria for granting permission to 
import used tyres were based on the importer presenting evidence to the authorities that he had 
contracted the delivery of the equivalent of half the quantity to be imported to a company 
specializing in the processing or utilization of used  tyres and that he possessed storage facilities 
for tyres.  The importer should also own equipmen t 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 licen ces were:  the applicati on;  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 would, from the date of accession, 
eliminate and would not introduce, reintroduce or ap ply quantitative restrictio ns on imports or other 
non-tariff measures such as [licensing,] quotas, bans , permits, prior authoriza tion requirements, licensing 
requirements and other restri ctions having equivalent effect that  cannot 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 descri bed in paragraphs [64 and 65] would be granted automatically to 
all who requested them or were otherwise justifiabl e under WTO provisions, and would not restrict the 
[right to] import [of] these products into Lithuani a or in any way discrimi nate against imported 
products.]  He further confirmed that the legal auth ority of the Government of Lithuania to suspend 
imports or exports or to apply li censing requirements that could be us ed to suspend, ban or otherwise 
restrict the quantity of trade would be applied from  the date of accession in conformity with the 
requirements of the WTO, in part icular Articles XI, XI I, XIII, XIX, XX and XXI of the GATT 1994, 
and the Multilateral Trade Agreements on Agriculture , the Application of Sanitary and Phytosanitary 
Measures, Import Licensing Proce dures, Safeguards and Technical Ba rriers to Trade.  The Working 
Party took note of these commitments. 
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 these provisions.  Some members further noted that 
Government Resolutions No. 751 of 25 June 1996  and No. 895 of 7 August 1997 appeared to authorize reference prices on imports.  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 23 
 
 
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 th e 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 b earing software for data processing equipment, and 
valuation of interest charges.  The Interp retative Notes of the GATT 1994 Agreement not yet 
incorporated in existing legislation would be incl uded in a new Order of Customs Valuation of Goods 
[almost ready and will be provided to the Secretariat for circulation to the Working Party as soon as 
possible], which would enter into force on 1 January 2000. 
69. The representative of Lithuania confir med that Government Resolution No. 751 of 
25 June 1996 had introduced minimum import prices (amended 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 corrugated sheets as a transiti onal measure to be abolished on 
1 January 2000.  The Law on Sugar and the Law on State Regulation of Economic Relations for 
Agriculture also granted the Government authority to  establish minimum import prices.  The authority 
to establish minimum import prices was not included in the new Law on Sugar (in preparation).  He 
added that on 25 June 1996, Lithuania had appr oved Government Resolution No. 751 on "Customs 
Assessment of Prices fo r Imported Goods" (amended by Govern ment Resolution No. 504 of 24 April 
1998).  According to this Resolution,  Ministries responsibl e for trade issues established a special price 
list ("price-in-checking" system), to be reviewed every three months, for cert ain imported goods to fight 
customs fraud.  [Products covered by  the system are enumerated in Table 8.]  The established order of 
customs valuation was followed for goods not included in the special list. 
70. Concern was expressed about the "price-in- checking" system and Lithuania was asked to 
explain in detail why the system would not const itute 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 Lit huania's new Customs Code.  Lithuania was urged to 
use WTO-consistent provisions to assess valuation of imports;  th e "price-in-checking" system should 
not be in place after Lithuania's accession to the WTO. WT/ACC/SPEC/LTU/8/Rev.4 
Page 24  
 
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 normally asked to demonstrat e that the value of the 
imported goods approximated the value of identical or  similar goods imported a nd sold in Lithuania.  
Deductions would be made for expenses on commission s, and the value would be adjusted for profit and 
general expenses, transportation and insurance costs, import duties and taxes, etc.  Article 226 of the 
Customs Code allowed all decisions taken by the customs authorities, including "price-in-checking" 
decisions, to be appealed to the Customs Department and/or the Court.  The "p rice-in-checking" system 
was a transitional meas ure;  its application had been extended until 1 January 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.  Ar ticle 29 appeared 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 Ag reement were implemented on an incomplete basis, 
the Code contained no legal reference to the provisions of Article 7.3 of the Ag reement (importers' right 
to a written explanation of alternative valuation methods), 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 softwa re 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 rest rictions, were applied.   Existing implementing 
provisions of the Customs Code, laid down in the Temporary Order of Customs Valuation of Goods (Government Resolution No.897 of 11 August 1997), inco rporated 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 Ar ticle 15 of the Agreement, and the 
provisions concerning valuation of software based on the value of th e 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.  Some of the Interpretative Notes of 
GATT 1994 Agreement were had not yet been incorpor ated Lithuania's legislation, but would be 
included in a new Order of Customs Valuation of  Goods, entering into force on 1 January 2000.  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 25 
 
 
74. The Temporary Order of Customs Valuation of  Goods, based on the appropriate provisions of 
the Code and incorporating most of the above-mentio ned 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 foll owing 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 related 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 doc uments (commercial i nvoices, contracts, 
transportation and insurance documents, etc.);  and 
- provisions concerning the valuation of used cars. 
The Temporary Order had entered into force before the Customs Code, and some of its provisions were 
therefore identical to provisions now contained in the Code.  The Temporary Order would be replaced 
by the new order of Customs Valuation of Goods entering into force on 1 January 2000. 
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 alte rnative valuation methods.  Customs 
was required to respond in writing to written requests.  In case of ru lings against the applicant, this 
information would also set out the grounds on which Customs had based its decision.  The right of WT/ACC/SPEC/LTU/8/Rev.4 
Page 26  
 
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 refe rence prices, including 
those applied to sugar, grain and products thereof,  poultry, forage products, leguminous vegetables, oil 
and products thereof, matches and corrugated sheets, as we ll as the system of  "price-in-checking", 
would be eliminated upon accession , and that such measures would not be reintroduced except in 
accordance with WTO Agreements.  The Work ing 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 confor mity with the relevant  WTO provisions, including 
Article VII of GATT 1994 and the Agreement on Implemen tation of Article VII without any transition  
period.  The Working Party t ook note of this commitment. 
Other Customs Formalities
 
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 account and implementing the results of the WTO 
negotiations to maintain a transparen t system for non-preferential rules of origin;  to administer these 
rules of origin in a consistent uniform, impartial an d reasonable manner;  and to base these rules of 
origin on a positive standard.  According to Chapte r 5 of the Customs Code and Government Resolution 
No. 1077 of 1 October 1997 "On the Order of Dete rmination of Non-Prefer ential Origin of Goods" 
currently in force, goods originated in a country if wholly obtained or produced in that country or, if 
more than one country was involved, where the ra w materials or component s underwent substantial, 
economically justified processing or  working.  Processing or worki ng was considered substantial if 
resulting in a change in four-digit HS tariff headi ng for the new product, in other cases also when the 
value of materials or components which did not have c ountry origin status formed more than 50 per cent 
of the costs of production of goods, as well as for go ods having undergone specif ic processing methods 
as indicated in Government Resolution No. 1077.  Thes e criteria applied in re spect of goods originating 
in countries enjoying most-favoured-n ation status in Lithuania.  Impo rts from these c ountries satisfying 
the origin criteria would be subject to conventiona l (i.e. MFN) tariff rates,  otherwise the (normally 
higher) autonomous tariff rates would apply.  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 27 
 
 
79. He added that Chapter V of the Customs Code , which had entered into force on 1 January 1998, 
provided the framework for the application of non-prefer ential 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 la st substantial transformatio n had been carried out.  
According to the new Law on Custom s Tariff, which entered into forc e on 1 July 1998 and replaced the 
old Law, the country from which goods were import ed into Lithuania was defined according to the 
regulations of the Customs Code and international agreements.  Th e Implementing Provisions on rules 
of origin of 1 October 1997 were based on the Im plementing Provisions of the Community Customs 
Code.   
80. A member reviewed the information provide d by Lithuania and was not convinced that 
Lithuania's  rules of origin system met the proce dural obligations in the WT O Agreement on Rules of 
Origin.  Specifically, regarding preferential rule s of origin, Lithuania wa s asked to confirm that 
administrative determinati ons of general application for preferential rules of origin were issued; that 
when issuing administrative dete rminations of general applicati on, the method for calculating the 
ad valorem  percentage criterion would be indicated in the pr eferential rules of origin;  that assessments 
of the preferential origin accorded to  a good were issued as soon as possible, 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 relatio n 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 was also asked to clarify the role of "independent 
experts" in the determination of rules of origin. 
81. The representative of Lithuani a 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 applied it in the same manner as the EU; EFTA States 
and CEFTA countries.  Pursuant to  Government Resolution 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 new Customs Code contained similar provisions on the examination of requests; where re quest 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 requiring additional info rmation should be made within thirty working 
days.  Exceptionally, the customs authorities could exceed the stipulated period by up to 10 working WT/ACC/SPEC/LTU/8/Rev.4 
Page 28  
 
days.  The applicant would be in formed in writing 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 Lit huania seemed to be avoiding a de scription in the report of its 
preferential rules of origin.  The representative of Lithuania was surprised by this statement regarding 
preferential rules of origin.  He pointed out that no summary of preferential rules of origin appeared in 
accession reports that had been adopte d recently or were about to be a dopted.  The text in paragraph [81] 
responded to all points made in paragraph [80].  Li thuania was not avoiding any response to reasonable 
requests by members of the Working Party.] 
83. Concerning the "independent experts", the repr esentative of Lithuania said that these were 
enterprises dealing with examinati on of goods produced in Lithuania or exported from Lithuania,  
including verification of prices and preliminary as sessment of preferential origin. The assessment 
procedure for goods produced in Lithuania was estab lished by the Ministry of Industry and Trade and 
Customs Department on 26 March 1993.  Such examination was not obligatory for exporting 
companies; they could present documents proving  the origin of goods or their own motivated 
conclusions.  The experts were re quired to pass a test at the Cust oms Department once a year;  11 
"independent experts" had been certified for 1997.  The experts were normally employees of companies 
carrying out such examinations, i.e. "Beckmann&Jorgensen kontrole" (Klaipeda), the Joint Stock 
Company Ltd. "Siauliu prekiu eksp ertize" (Siauliai), the Joint Stoc k Company "Impeksservis" (Vilnius), 
"Kauno prekiu ekspertize" (Kaunas), the regional Chamber of Commerce and Trade of Vilnius and the 
representative office in Lithuania of the German company "Praezisa Industri eelektronik" (Vilnius).  
Most of these enterprises were members of the Lithuanian Associ ation of the Goods’ Examination 
Enterprises. According to the procedure for assigning  experts approved pursuant to the Statute of this 
Association, the experts were prohibited from dissemi nating confidential inform ation.  The procedure 
for assigning experts was based on the rules of the German Chamber of Commerce.  Customs was not 
bound by examinations performed by "independent expe rts" – whose functions were of auxiliary or 
purely technical nature - and in is suing documents on preferential origin of goods these examinations 
would be verified once more.  The final decision and th e approval of certificates  of origin of goods were 
taken by Customs or the Chamber of Commerce.  He  stressed that the "indepe ndent experts" did not 
evaluate whether or not imported goods fulfilled th e requirements of preferen tial rules of origin. 
84. 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  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 29 
 
 
creation of a Customs Information System base d on the ASYCUDA package of UNCTAD and the 
establishment of audit units at re gional customs houses.  These steps should reduce delays in customs 
clearance of goods at the border. 
85. 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 ad ministered in conformity 
with the provisions of the WTO Agreement on Rules of Origin.  The Working Party took note of this 
commitment. 
Pre-Shipment Inspection  
86. The representative of Lithuania said that Lithua nia did not engage privat e 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 its  conformity with WTO 
disciplines.  Lithuania was asked to provide an update on its intent and the develo pment of legislation.  
A member reminded Lithuania that in the absence of  the required legislation,  Lithuania would not be 
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 requirements of the WTO regarding anti-dumping, on 23 June 1998.  The Law 
had entered into force on 1 July 1998, and implemen ting regulations concerning  the determination of 
normal value, export price, dumpi ng margin, domestic industry and injury, and the procedure for spot 
investigation had also been approv ed.  Lithuania had prep ared draft laws on count ervailing 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 applicat ion 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 accession,  Lithuania would not apply 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. WT/ACC/SPEC/LTU/8/Rev.4 
Page 30  
 
B. EXPORT REGULATIONS 
Customs Tariffs, Fees and Charges for Services Rend ered, Application of Internal Taxes to Exports
 
90. The representative of Lithuania said that e xport 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 Gove rnment 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 MFN basis, through Government Resolution No. 268 of 24 March 1997.  
These export duties had been reduced from 60 per cen t to 30 per cent - except for the duty on certain 
types of log wood and unprocessed oa k and ash timber, which remained at 60 per cent - by Government 
Resolution No. 896 of 7 August 1997.  At present, export duties were applied only on raw hides and 
skin, log wood and unprocessed oak and ash timber.   [The products currently subject to export duties 
are listed in Table 9. 1.]  The export duties applied on a bilateral basis remained in effect as these were 
somewhat lower than the duties established thr ough Government Resolution No. 268 (discussed in 
further detail in the section "Trade  Agreements" and Table 9.2).  All export duties, including those based 
on bilateral agreements, would be eliminated by 1 January 2001.  The representative of Lithuania 
confirmed that any changes in the export tariff re gime would be published in  the Official Gazette. 
91. Exported goods, with the few listed exceptions  in [Tables 9.1 and 9.2], were exempt from 
customs duties and VAT.  Lithuania maintained some customs fees on exportation as part of the application of the Stamp Tax.  These fees were related or limited to th e approximate cost of the services 
rendered.  The fees and charges are enumerated in [Table 5].  The new Customs Code, which entered 
into force on 1 January 1998, provided a framework fo r the implementation of a duty drawback system 
in its Section 6 pertaining to inward processing.  Article 125 of Section  6 allowed the holder of an 
authorization (generally the importer) to request th e Government of Lithuania to repay an import duty 
when the authorization ho lder could prove that the 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 the originally imported products included in the compensating product, and thus did not constitute a subsidy to the exporter. 
[92. A member stated that  Lithuania should eliminat e the difference in the application of its export 
tariffs, and should commit that after accession, it would minimize the use of such taxes and that they 
would be applied in accordance with the provisions  of the WTO Agreement.]  The representative of 
Lithuania said that use of export taxes would be 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.  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 31 
 
 
Export Restrictions  
93. The representative of Lithua nia said that all previous e xport bans had been abolished by 
Government Resolution No. 716 (of 18 June 1996) and re placed by export duties (Tables 9.1 and 9.2).  
Non-automatic licences were require d only for exports of objects of cultural value (made before 1950).  
Licences were also required to en gage in exportation of narcotics a nd highly effective substances (non-
automatic), and oil products (automat ic).  The Law concerning Control of Import, Transit and Export of 
Strategic Goods and Technologies, entering into force on 1 July 1997, stipulated licensing by the 
Ministry of National Economy for exports of du al use goods, technologies and software.  As a 
temporary measure in 1995, continued through 1996, the Government had maintained certain export 
restrictions during periods of short supply of gr ain, flour and compound feed.  In the future, export 
quotas on agricultural products would only be temporary measures applie d in emergency situations and, 
as from accession, in conform ity with GATT 1994 obligations. 
94. Some members asked Lithuania to provide the WT O justification for export licences.  In reply, 
the representative of Lithuania said  that automatic licensing for expor t of oil products was maintained 
for monitoring purposes, and that the licences for dual  use products served to ch eck and identify the use 
of the product at the foreign destination. 
95. The representative of Lithuani a said that from the date of accession export restrictions would 
only be imposed in conformity with the provisions of  Article XI of the GATT 1994.  The Working Party 
took note of this commitment. 
Export Subsidies  
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.  The Government had adopted a 
Resolution "On Actions Improving Foreign Trad e Regulation and Export Development" in 
January 1995.  The Resolution covered drafting of  legislation, export promotion and funding, 
management of trade-related informat ion and education and training of export specialists.   Lithuania had 
also adopted a National Programme of Implementation of Lithuanian Foreign Trade Policy Guidelines 
for 1996-1998.  The programme included implementa tion of an export programme developed by the 
Lithuanian Export Promotion Agen cy and the establishment of Export Support and Export Insurance 
Funds.  Lithuania had also consid ered the development of a credit insurance system, but had yet to 
decide on its implemen tation.  In developing an export credit  insurance model, Lithuania took into 
account the recommendations of the OECD.  In Augu st 1997, the Government had established a closed 
joint stock company "Lietuvos eksporto ir importo draudimas" (LEID – Insura nce of Lithuanian Export WT/ACC/SPEC/LTU/8/Rev.4 
Page 32  
 
and Import) and formed an interministerial commissi on - the Business Development Council - to deal 
with export promotion issues. 
97. LEID, which was minimum 62 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 initial capital, reserves, etc., and had issued State 
guarantees for insurance contracts am ounting to Llt 50 million.  The 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 Arrangeme nt and recommendations of the OECD.  The Business Development 
Council supervised LEID activities, de cisions to assume losses of the LE ID for insured political risks, 
etc.  In addition, the Council decided on the financing of other export support m easures, such as training, 
co-financing of exhibitions and fa irs, preparation of prospects and catalogues, co-financed introduction 
of international standards and quality systems, etc.  Some Llt 9 million had been allocated for such purposes in 1998. 
98. The purpose of the Lithuanian Export Promoti on Agency, which had been established at the end 
of 1995, was to promote exports of Lithuanian goods and demand for Lithuanian services.  Its main 
functions were to analyze and prov ide information to Lithuanian e xporters and service providers on 
foreign market conditions;  to establish Lithuania's trade representation office s abroad;  to prepare, 
implement and monitor trade development programmes to  ensure their consistency with WTO rules;  to 
study issues affecting trade activities and formulat e recommendations to Lithuanian authorities;  to 
consult State, public and private institutions on foreign trade issues ;  and to provide education and 
training to the foreign trade community in Lithua nia.  Recently, the Lithua nian Export Promotion 
Agency and a sister agency focusing on encouragi ng foreign investment in Li thuania, the Lithuanian 
Investment Agency, had been brought under the umbr ella of a new agency - the Lithuanian Economic 
Development Agency.  
[99. 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 
meaning of Article 3 of the Agreement on Subsid ies and Countervailing Measures and would therefore 
not seek a transitional period for the elimination of such measures.  The Working Party took note of this 
commitment.]  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 33 
 
 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
Industrial Policy, including Subsidies  
100. The representative of Lithuania expected so me six years would be required to restructure 
Lithuania's industrial sector.  Industries targeted for development included wood processing;  flax;  
processing of skins and furs;  production of constructio n materials;  ag ricultural machinery;  new forms 
of energy;  waste processing;  and production of medicines and medical equipment.  Potentially 
competitive enterprises had been id entified through indicators such as current exports.  Government 
funding was limited.  Restructur ing and promotion measures ther efore concentrated on general 
improvements in the legal and econo mic environment.  The Government  issued financial guarantees to 
enterprises receiving long-term credits from fore ign banks, thereby assisting these enterprises in 
obtaining lower interest rates.  All companies were eligible for such guarantees provided they 
presented properly prepared business plans.  Ot her support measures included credit insurance and 
export assistance measures such as the activities of th e Export Promotion Agency, measures related to 
the implementation of national quality programs, tem porary tax exemptions (e.g. for investors and for 
small enterprises), as well as other support to sma ll and medium sized enterprises.  Government 
agencies also played a role in seeking foreign part ners 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 or direct tax exemptions for limited periods, in which case the local authorities were required to compensate the 
State budget for the shortfall in ta x revenue.  Certain subsidies we re also provided to the State 
enterprises "Lietuvos Pastas" (Lithuanian Post), "L ietuvos Gelezinkeliai" (Lithuanian Railways) and 
to the State Agency for Inland Transport.  Lithua nia did not provide any other assistance to the 
industrial sector (other than tariff protection as laid down in the national customs tariff). 
101. Referring specifically to the en ergy sector, the representative of  Lithuania said that domestic 
production of energy from local resources, including nuclear energy, had covered approximately 41-45 
per cent of Lithuania's needs in 1996-1998.  The sh are was expected to reach about 50 per cent by 2005 
with increasing availability of dom estic petroleum products and nucl ear power.  The State-owned gas 
importer and supplier "L ietuvos Dujos" had been subsidized to he lp offset the cost of imported natural 
gas and to compensate for low tari ffs on deliveries of heating and hot water to households.  The main 
reason for this subsidy was to shield the Lithuani an population from paying th e full price for thermal 
energy, which it could ill afford, while no such adva ntage was granted to industrial users.  Under a 
restructuring programme for the energy sector the Government was considerin g plans for privatization 
that could affect "Lietuvos Dujos". WT/ACC/SPEC/LTU/8/Rev.4 
Page 34  
 
102. The representative of Lithuania confirmed that Lithuania did not maintain subsidies, 
including export subsidies, which met the definiti on 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 progr ams to be notified, if such exist, would be 
provided to the Committee on Subsidies and Counte rvailing 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  
103. The representative of Lithuani a explained that Lithuania was in  a process of transition where 
mandatory (GOST) standards established under the former USSR system were replaced by a new 
system of voluntary standards and mandatory techni cal regulations.  The Lithuanian Standards Board 
had performed functions relating to standardiza tion, metrology, confor mity 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 Standardizati on (CEN) since 1993, a member of the 
European Telecommunication Standards Institute (E TSI) 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 Lega l Metrology (OIML) since 1994.  Lithuania had 
concentrated its resources toward implementati on of a long-term programme for the adoption of 
international and European standard s as Lithuanian standards, cove ring approximately 600 international 
and European standards.  By 1 November 1998, European standards had been adopted as Lithuanian standards in 1,797 instances representing 18.1 per cent of all Lithuanian standards, and adopted 
European standards and international standards represen ted 42.7 per cent of all Lithuanian standards.   
Adopted European and international standards were e xpected to account for 50 per cent of Lithuanian 
standards in 1999, rising to 75-80 per cent in 2000.  According to the new draft Law on  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 35 
 
 
Standardization, which had been submitted to the Ministries for agreement and to the Government for 
its consideration, the status of the National Standardization Body would be changed from a 
governmental institution to a non-profit association.  The National Standardization Body followed the 
principles of international and European standardization.  Lithuanian standards were drafted in technical committees with the participation of manufacturers, consumers and representatives of State institutions on a voluntary and equa l basis.  The technical committ ees had been established according 
to the so-called "mirror principle" in relation to the technical committees of international and 
European standardization organizations.  A nati onal technical committee would nevertheless follow 
and take active part in the activities of several corresponding technical committees of international 
and European organizations. 
104. A member noted that some of the legislation critical  to the development of Lithuania's standards 
regime was still in preparation and expected Lithuani a to adopt all necessary legislation to implement 
fully all obligations under the Agreement on Technical Barriers to Trade prior to the date of accession. 
105. The representative of Lithuania said that work was under way to bring technical regulations into 
conformity with the WTO Agreement on TBT.  A Law on Metrology had been adopted in July 1996. A 
draft Law on Standardization, wh ich defined the organizational framework for standardization, 
including the basic principles, functional require ments and main resource s, was intended for 
presentation to Parliament in the first half of  1999.  The Law on Conformity Assessment 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' declaration.  Lithua nia had established an Information 
Centre at the Lithuanian Standards Board in Nove mber 1996.  This Centre, inter alia, fulfilled the 
function of enquiry point in conformity with the WTO Agreement on TBT and would also provide 
notifications.  Rules governing the exchange of info rmation between Ministries  involved in standards 
issues and the enquiry point, including the notif ication requirements, had been approved by the 
Government on 14 April 1999.  Lithuania had introduced  provisions allowing foreigners to comment on 
technical regulations not consistent with internationa l norms.  Information on draft standards in force in 
Lithuania was published in the official bulletin of th e Lithuanian Sta ndards Board.  Lithuania would be 
able to adopt the Code of Good Practice, as require d under Annex 3 of the WTO TBT Agreement, in the 
first half of 1999.  Basic rules of procedure for tec hnical work relating to the preparation and adoption of 
international and European standard s as Lithuanian standards had been approved on 22 February 1999. 
106. 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.  WT/ACC/SPEC/LTU/8/Rev.4 
Page 36  
 
Lithuanian certification bodies coul d recognize certificates  issued by foreign bodie s 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 Ce rtification 
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 Resolution No. 593 of 12 June 1997, and Government Resolution No. 687 of 26 June 1997. 
107. Foreign certificates for im ported oil products needed to correspond to mandatory quality 
indicators approved by the Lithuanian Standa rds Board.  Government Resolution No. 883 
(29 November 1993) On the Approval of Traffic Rule s established technical in spection requirements for 
imported vehicles.  All pharmaceutic al products required re gistration before being sold in Lithuania.  
Some other non-food items were subject to veri fication 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. 
108. Conformity assessment procedures were esta blished 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 accredita tion bodies, but indicated that 
participants in the conformity as sessment system should meet the requirements of international and 
relevant European documents and ot her related regulations.  The Law permitted Lithuania to recognize 
product test reports and issue certificates of conformi ty in accordance with procedures established by the 
relevant international agreements .  Lithuania had signed agreements  on mutual recognition of test 
reports and certificates of  conformity with Poland, Slovakia, Bulg aria, Belarus, Russia and Ukraine;  
agreements with the Czech Republi c and Romania were under negotiation.   Cooperation agreements on 
accreditation between the corresponding institutions of  Lithuania, Latvia and Estonia had also been 
signed.  Lithuania recognized certif icates of conformity of foreign countries after performing their 
recognition procedure by the relevant Lithuanian certification bodies.  Lithuania recogniz ed certificates 
for measuring instruments issued by the International Organization for Legal Metrology (OIML).  The 
representative of Lithuania stressed that no relatio nship existed between the certification process and 
import licensing requirements. 
109. 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  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 37 
 
 
a way that discrimina tes between supplier countries where the sa me conditions apply, or as a disguised 
restriction on international trade. 
110. The representative of Lithuania stated th at, 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  
111. The representative of Lithuania said that Lithuania had renewed it s membership in the 
Organisation International des Epizooties (OIE) in 1992, and joined the Codex Alimentarius 
Commission in 1992 and the European and Mediterr anean Plant Protection Organization (EPPO) in 
1998.  Lithuania was preparing ratification of the International Plant Protec tion Convention (IPPC) by 
the end of 1999, at the latest.  Lithuania base d its SPS measures on inte rnational standards and 
guidelines established by these organi zations to the greatest extent pos sible.  Lithuania was working to 
conform its sanitary and phytosanita ry measures with the requirements of the WTO.  Procedures would 
be established for public notice and comment for all sanitary and phyt osanitary measures.  He provided 
information on specific Lithuanian requirements pertaining to seeds, fe rtilizers, pesticides, animal and 
plant health, feeds, plant breeders' rights, fruit and berries, food additives and contaminants, packaging 
and labelling standards, and inspections of me at, dairy products, eggs and egg products.  The 
requirements for items intended to be imported were the following: 
 - Seeds - presentation of phytosanitary certificate issued by the State Plant Protection 
Service of the exporter 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); 
 - Plant breeders' rights - presentation of phyto sanitary certificate issued by the State Plant 
Protection Service of the exporter country; 
 - Fruit and berries, meat, dair y and egg products (all processed)  - suppliers' declaration of 
conformity;  actual chemical and contamination levels not to exceed the maximum 
limits set by Lithuanian Hygiene Norms HN 54-1995 and HN 26-1994;   presentation 
of phytosanitary certificate issued by the State Plant Protection Service of the exporter country; 
 - Meat and dairy products - sa nitary control (inspection) of  non-processed products at the 
border;  for processed item s, sanitary inspection by customs within Lithuania; WT/ACC/SPEC/LTU/8/Rev.4 
Page 38  
 
 - Food additives - items needed to be incl uded in the national positive list of food 
additives (Lithuanian Hygiene Norm HN 53-1995);  suppliers' declaration of 
conformity (specification of purity levels);  foodstuffs should comply with the food 
additives requirements established in HN 53/1995; 
 - Contaminants - chemical and microbiological  contamination levels of foodstuffs not to 
exceed the maximum limits es tablished in Lithuanian Hy giene Norms HN 54-1995 and 
HN 26-1995; 
 - Packaging - requirements laid down in Lithuanian Hygiene Norm HN 77-1998;  
presentation of phytosanitary certificate issued by the State Plant Protection Service of the exporter country;  and 
 - Labelling - all requirements harmonized to  Codex Alimentarius provisions;  labelling 
should be in Lithuanian language. 
Further information was provided to the Working Pa rty in a note entitled "Veterinary Requirements of 
the Republic of Lithuania". 
112. 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 fo r application of SPS measures;  re levant 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 tran sparency provisions. 
113. Imported foodstuffs were required 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 quality certificates on importation.  
Products included in the list were set out in document WT/ACC/LTU/12, pages 20-21.  Lithuania 
required veterinary and phytosanitary  certificates for processed foodst uffs only to ensure that imported 
products fulfilled appropria te veterinary and phytosanitary requi rements (such as animal health and 
public health attestations). 
114. In response to a request from a member fo r 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.  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 39 
 
 
115. A member inquired about the re lationship between foods tuff certification a nd import licensing.  
The representative of Lithuania replied that at present 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 10;  veterinary certifi cates required for all raw a nd processed products of 
animal origin, and all unprocessed products of plan t origin subject to phytosanitary certification) 
required certification of each consignment.  The i ssuance of certificates was coordinated between the 
State Veterinary Service and the State Plant Protection Service at the Ministry of Agriculture.  For 
products subject to veterinary insp ection (Table 11), the importer shoul d apply for an import permit to 
the State Veterinary Service stati ng details concerning the product, its origin, the exporting country and 
the border crossing point.  An impo rt permit would be issued wit hout delay provided the epizootic 
situation in the exporting country was propitious.  A suppliers' conformity decl aration would suffice for 
consumer products and ot her foodstuff (all processe d products of non-animal origin) not subject to 
veterinary or phytosanitary certification.  Exporte rs' own declaration would suffice for fertilizer.  
Products not specifically list ed were not subject to cer tification or suppliers' decl aration.  He added that 
Government Resolution No. 1106 "On the Approval of the Order on Import of Foodstuffs and Their 
Control of Harmless and Quality" of 9 October 1997 envisaged a new system for the importation of 
foodstuff.  In implementing this Resolution, the Stat e Veterinary Service and th e Nutrition Centre in the 
Ministry of Health Care had pr epared a register of foodstuff im porters, entering into force on 
1 July 1998.  The register improved the surveill ance and control of importers and guaranteed 
importation of sa fe products only. 
116. A member pointed out that Article 5 of th e WTO Agreement on SPS required Lithuania to carry 
out risk assessment.  A member expected Lithuani a to establish its SPS enqu iry point and adopt all 
necessary legislation to implement fully all obligat ions under the Agreement on SPS by the date of 
accession to the WTO. 
117. The representative of Lith uania replied that a system of risk assessment for f ood had been 
introduced with the approval of three major laws  - the Law on Health System, the Law on Mental 
Health Care, and the Law on Health Care Ins titutions – during 1994-1996.  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 and the State Veterinary Service.  
The Law on Food, which had been submitted to Parliament for approval, would finalize the 
mechanism for risk assessment of food.  As for transparency, Lithuania published promptly all 
adopted sanitary and phytosanitary regulations in th e Official Gazette.  Lithuania had established the 
SPS enquiry point, which would also carry out the notif ications of the Agreement, at the Ministry of 
Agriculture. WT/ACC/SPEC/LTU/8/Rev.4 
Page 40  
 
118. 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 th e WTO, including 
the Agreements on Sanitary and Phytosanitary M easures and Import Licensing Procedures, without 
recourse to any transitional arrangements.  Th e Working Party took note of this commitment. 
Trade-Related Investment Measures
 
119. The representative of Lithuania said that his Government had reviewed carefully the provisions 
of the WTO Agreement on Trade-Related Investment Measures (TRIMs), including its Annex and had 
concluded that Lithuania did not maintain any measur es inconsistent with the TRIMs Agreement.  His 
Government applied the principle of  national treatment and did not reso rt 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.  
120. The representative of Lithuani a confirmed that Lithuania would not invoke the provisions of the 
TRIMs Agreement that provide for th e progressive eliminatio n of measures inconsis tent with the TRIMs 
Agreement within a fixed period of time as it did 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
 
121. 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 monopoly 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. 
122. A member understood that Lithuania used lice nces 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 arbitrarily or acted as quantitative restrictions.  Current programmes were clearly WTO-inconsistent, whether or not th ey qualified under Article XVII.  In  particular, Lithuania's system 
of activity licensing appeared to restrict trade in al coholic 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 tr ade in these products, in effect 
creating State-trading enterp rises.  A distribution monopoly maintain ed by the State could also distort  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 41 
 
 
import prices.  It was noted that the compan y "Lietuviškas Midus" held monopoly rights on the 
production of high-alcohol beverage and even if "L ietuviskas Midus" was notif ied 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 licensi ng system for alcoholic beverages was based and 
explain how Lithuania's restrictive import sy stem could be consiste nt with WTO rules. 
123. In reply, the representative of Lithuania sa id that the Law on Amendm ents and Supplements of 
the Law on Enterprises of 25 Septem ber 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 the State or municipalities, or special enterprises.  
Lithuania had established the legal basis for introduc tion of a State monopoly on alcohol products in 
cases of force majeure (war, famine and natural disa sters), a measure he felt could be justified under 
Articles XX(b) and (d).  The pres ent situation did not qualify as force majeure.   His Government had 
established a State Tobacco and Alcohol Control Ag ency on 12 July 1996 in accordance with the Law 
on Health System and the Law on Alcohol Control.  The main functions of the Agency were to 
formulate and implement State polic y in cooperation with Ministries 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 trade, but perfor med various trade-related administrative and monitoring 
tasks, including the issuance of activity licences, monitoring of adherence to legal requirements, 
establishment of additional marking proc edures for alcoholic beverages, etc. 
124. Production of beverages with high alcohol cont ent was reserved for th e company "Lietuviskas 
Midus", a cooperative consumers' 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 traditio ns of manufacture and was the onl y enterprise in Lithuania which 
manufactured national beverages, the Government had granted "Lie tuviškas Midus" the right to 
manufacture one traditiona l alcoholic beverage until the year 2001.  The State did not provide the 
company with privileges or subsidies, and the co mpany had no obligations to wards the State.  The 
company could import inputs for the production of me ad without restrictions.  Lithuania submitted a 
notification on the exclusive right to manufacture pr oducts with ethyl alcohol strength exceeding 22 per 
cent and on the exclusive right of "Lietuviskas midus " to produce beverages with high alcohol content, 
as well as a notification on the operation of the Lith uanian Agricultural Produc ts and Foodstuff Market 
Regulation Agency (WT/ACC/LTU/35).  The representative of Lithuania added that an amendment to the Law on Alcohol Control of 10 December 1998 had removed the ba n on importation of mead and 
other alcoholic beverages with alcoho l content exceeding than 50 per cent. WT/ACC/SPEC/LTU/8/Rev.4 
Page 42  
 
125. 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 dist ribution 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 refiners association ha d any rôle in import policy,  or protected access to 
sugar imports on a preferential basis, this shoul d be indicated by Lithua nia, and justified under 
appropriate WTO agreements a nd provisions, e.g. GATT, the Ag reement on Import Licensing 
Procedures and the Agreement on Ag riculture.  [A member considered the commitment 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.] 
126. The representative of Lithuani a replied that his Government had not approved any special rights 
for sugar refineries.  The sugar manufacturers' association was exempt fro m the Law on Competition 
under the existing legislation [Parliament is c onsidering elimination of this provision]. 
127. The representative of Lithua nia confirmed that his Governme nt would apply its laws and 
regulations governing the trading acti vities 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 Understanding 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
 
128. The representative of Lithua nia said that a Law on Free Econo mic Zones had been adopted in 
June 1995.  Each zone would be established by separa te law.  Certain activiti es would be prohibited in 
free zones, including production, storage and sale of  weapons, ammunition, explosives, dangerous and 
radioactive materials, narc otics and poisonous substances ;  manufacture of tobacco, spirits, securities, 
money and postage stamps;  radio and television broadcasting;  hospitals ;  gambling houses;  and 
organization of lotteries.  Licences  would be required to carry out ac tivities 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 taxes (including social 
insurance), tax on land rent, stamp tax, taxes on natural re sources and pollution tax (amendment of Law 
on Free Economic Zones of 2 April 1996).  An enterp rise established in the z one would benefit from an 
80 per cent profit (income) tax reduction from the day of its registration for the first five years and a 
50 per cent profit (income) tax reduction for the subseque nt 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  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 43 
 
 
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. 
129. Thus far, Parliament had adopted separate laws  for the establishment of free economic zones in 
three cities - Siaulia i, Klaipeda and Kaunas.  In this connec tion, the Government had organized tenders 
to select the company or group of companies to govern  the zone, and a subsequent tender to determine 
the companies operating in the zone.  Both foreign and domestic companies could participate in these 
tenders, provided they prepared an  entrepreneurship project, includi ng estimates of pr oposed investment 
in the infrastructure of the zone.  International tenders had already taken place for th e preparation of 
business plans, statute of the z ones and choice of establishing groups for the Kaunas, Siauliai and 
Klaipeda free economic zones.  The Siauliai and Klaipeda free economic zones were expected to start operating in 1999.  Companies operating in the zone woul d need to register as en terprises in accordance 
with Lithuanian legislation and th e registration should be duly recorded by the governing company of 
the zone.  Companies were not required  to export part or all of their out put to gain access to Lithuanian 
free zones.  The purpose of the free economic zo nes was to attract investment, not to introduce 
requirements to export.  Goods brought into the cu stoms territory of Lithua nia from a free economic 
zone would be subject to all laws  and other legal acts regulating th e importation of goods from abroad, 
notably the application of import duties and taxes, as well as any prohibitions or restrictions of economic 
character. 
130. The representative of Lithuani a confirmed that any free zones or free economic zones would be 
fully subject to the coverage of the commitments take n in the Protocol of Accession, and that Lithuania 
would ensure enforcement of its WTO obligations in  those zones, including th ose 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
 
131. The representative of Lithuania said that  a Law on Public (Gove rnment) Procurement, 
consistent with WTO requiremen ts, had entered into force on 1 January 1997.  The Law allowed 
domestic or foreign s uppliers (contractors) to participate in proc urement procedures.  Article 1, part 4 of 
the Law allowed the Government to give preferen ce to goods, services and works (in connection with 
construction and renovation) produced, effected or provided by enterprises, including foreign-owned, 
registered in Lithuania, when this supply was impor tant to the State for econo mic or social reasons.  
However, such a decision would be passed in  compliance with Lithuania's obligations under WT/ACC/SPEC/LTU/8/Rev.4 
Page 44  
 
international agreements.  The Government Procurem ent Agency had been established in June 1997.  
The Agency prepared regulations related to the im plementation of the Law on Public Procurement;  
announced tenders;  coordinated Minist ries' activities related to procur ement;  investigated complaints 
by suppliers;  etc.  The Government had appr oved a new Law on Public  Procurement which was 
currently being considered by Parliament.  The new version aimed at ensuring open and transparent 
public procurement procedures, equality of particip ation for suppliers, effective competition and more 
effective use of State funds.  The Government of Lithuania had been granted observer status in the 
Committee on Government Procurement in June 1998. 
132. The representative of Lithua nia confirmed that Lithuania would initi ate negotiations for 
membership in the Agreement on Government Procur ement by tabling an entity offer within three 
months after the accession date, at the latest.  He also confirmed that if the results of the negotiations 
were satisfactory to Lithuania a nd other members of the Agreement,  negotiations would be completed 
by [the end of 1999].  The Working Party took note of these commitments. 
Transit
 
133. The representative of Lithuania said that Lit huania required submission 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 customs value or  tariff classification of 
the goods in transit could not be  determined with certainty. 
134. The representative of Lithuania added that the Prime Ministers of the Ba ltic States had signed a 
Resolution "On Via Baltica" on 13 February 1995, se eking to create a Balti c Transit System which 
would facilitate and simplify transit formalities for ca rgo 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 would enter into fo rce upon ratification of the Parliaments of the three 
Baltic States in early 1999. 
135. The representative of Lithuania 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  
[Information on Domestic Support and Expor t Subsidies, circulated as document 
WT/ACC/SPEC/LTU/2 of 30 July 1996 for background information purposes only.  Offer concerning 
commitments on domestic support and export subsid ies circulated as docum ent WT/ACC/SPEC/LTU/7  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 45 
 
 
on 12 June 1997.  Revised commitme nts on domestic support and export subsidies were circulated in 
document WT/ACC/SPEC/LTU/7/Rev.1 on 17 October 1997.  Explanatory note on th e tables circulated 
in document WT/ACC/SPEC /LTU/7/Rev.1/Add.1 on 8 January 1998.  Information on "conditions 
causing a necessity for Lithuania to maintain export  subsidies in agriculture" circulated in document 
WT/ACC/LTU/23 on 14 May 1998.] 
[136. Members of the Working Party asked Lithuania to outline the main  direction of it s 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 subsidies in agriculture in the format of document 
WT/ACC/4.  A member noted that Lithuania had implemented domestic suppo rt and export subsidy 
programmes very recently and wondered why Lithua nia had implemented prog rammes which could be 
in contrast with WTO provisions afte r deciding to join the organization. 
137. The representative of Lithuani a said that agriculture was of  exceptional economic and social 
significance to Lithuania.  About one third of L ithuania's population 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 on e 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 hi gher 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, butter, eggs, sausages and 
sugar) was 39.5 per cent. 
138. Some members were particularly concerne d about subsidies granted in the form of 
[government] purchases of agricultural production at "recommended" prices.  The representative of 
Lithuania explained that farmers were supported through the mechanism of minimum (recommended) 
purchase prices for wheat, flax, ra peseed, protein feed crops and m ilk.  The product coverage of the 
minimum price programme could be expanded in extreme situations. Prices were determined by average 
production costs in Lithuania and the market situa tion in neighbouring countri es.  A subsidy element 
was added to the minimum prices within fixed purchasing quotas for flax, 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 incl uded soft credits and 
preferential loans (at 5 per cent annu al interest) for farmers, support to  trade intermediaries and services WT/ACC/SPEC/LTU/8/Rev.4 
Page 46  
 
providers, rebates on agricultural m achinery, support for cooperativ e efforts among farmers, ecologic 
farming and compensation for acciden ts and calamities. The State al so offered indirect support by 
financing land reclamation works, liming of soil, construction of roads and other infrastructure, animal 
breeding and agricultural research and training.  Tax con cessions to the sector consisted of exemption 
from corporate profit tax and tax holidays on recl aimed land.  The Govern ment also encouraged 
diversification in rural areas and afforestation. 
139. Automatic import licensing had been introduced 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. 
140. In 1997, the Government had decided to ch annel all fiscal resources for the National 
Agricultural Development Programme and the Agri culture Support Fund into a Rural Support Fund to 
improve the efficiency and administ ration of State support to the agri cultural sector.  The Ministry of 
Agriculture  had established the Ru ral 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 maintaining producer income through the application of 
price support and other economic measures on the ma in agricultural products.  The Fund would also 
finance investment progr ammes.  Some of the programmes financed from the fund were:  the 
establishment of farmer and coope rative societ ies;  agro-services;  ne w technologies;  livestock 
breeding;  ecological (environmentally-friendly) farming;  structural adjustment of marginally 
productive land;  and the development of quality systems for agricultural products. 
141. 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, cheese, gr ain, flour, condensed milk and mi lk 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 budg et cost of US$14.8 million in 1997;  
and beef, butter, condensed milk, milk powder, cheese , vegetable oil and preserve d meat at a budget cost  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 47 
 
 
of US$12 million in 1998.  Lithuania expected to continue applying such subsidies in the future, 
especially in extreme market situations.  Expor t subsidies were not administered as a regular 
programme, but were targeted at a specific, limited market segment both in terms of product coverage 
and geographical location.  The product list incl uded dairy and meat produ cts which were exported 
when surplus quantities accumulated in the domestic market, and these surpluses could not be absorbed 
domestically due to rising imports and declining purchasing power in L ithuania.  The subsidized exports 
were destined for the Russian market. 
142. The representative of Lithuani a stressed that, as with the econo my 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 recove ry, and productivity in the sector, including the food industry, had not 
reached its potential level due to inflation, distortions in production and prices, and a disruption in 
relations - and resulting competition wi th Lithuania's main trading partners - in the former Soviet Union.  
Growth and development within the sector was restra ined by insecurity conc erning farm and land user 
rights, poor infrastructure, and lack of proper di stribution of inputs and output.  In addition to 
fragmented farms and insufficient competition, farm ers' incomes were squeezed by a negative trade 
balance and lack of access to credit.  Land reform, in  particular the process of  restitution, privatization 
and the development of clear-cut ownership rights had not proceeded as quickly as hoped.  Lithuania 
was revising its agricultural policies and had developed a new system for domestic support to agriculture 
(outlined in paragraphs [138 and 140]).  The Work ing Party would be informed about the new policy 
and support measures once the new syst em had been appropriately defined. 
143. Some members asked specific questions regard ing measures affecting the sugar sector, notably 
the possible introduction of minimum import prices and the opening of tariff-rate quotas for domestic 
processors.  Lithuania was reminded that Articl e VII of the GATT 1994 and the WTO Agreement on 
Agriculture prohibited the use of reference prices. 
144. The representative of Lithua nia said that raw sugar (HS c ode 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 products 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 pric es.  Imports of sugar coul d also take place under 
tariff-rate quotas, but processors woul d first need to exhaust reserves of domestic sugar [to be abolished 
with the new Law on Sugar].  Producers of sugar had also been exempted from provisions of the Law on WT/ACC/SPEC/LTU/8/Rev.4 
Page 48  
 
Competition to allow the establishment of a produce r association, but no such association had been 
formed yet [the new Law on Sugar does not grant any special privileges to Lithuanian producers].  The 
representative of Lithuania stated that the minimu m import price on raw sugar would be applied only 
until 1 January 2000. 
145. [Lithuania's commitments on agri cultural tariffs, on domestic s upport 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
 
146. The representative of Lithuania said that L ithuania would implement the Agreement on Trade in 
Civil Aircraft [without exceptions or transitional pe riod] [(with some except ions)] at the time of 
accession.  [The represen tative of Lithuania confirmed that Lith uania 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  
147. Some members of the Working Party asked Lith uania to describe its sy stem 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 WT O, and requested Lithua nia to accelerate its 
legislative process in order to ensure full implem entation of the TRIPS Agreement at the time of 
accession to the WTO.  
148. Lithuania provided a note on TRIPS to the Working Party in document WT/ACC/LTU/7 
(Annex I) and a note on progress in impl ementing the TRIPS Agreement in document 
WT/ACC/SPEC/LTU/10.  The stat us of Lithuanian legisla tion and the corresponding WTO 
requirements, and planned steps to address obligations under the TRIPS Agreement are presented in Table 12.  In response to specific questions, the representative of Lithua nia said that national legislation  
- including laws on copyright and re lated rights, patents, industrial design, trademarks and service 
marks, layout-designs (topographies ) of integrated circuits, the La w on Competition and the Criminal 
Code - corresponded to the basic provisions of th e TRIPS Agreement.  Lithuania's legislation on 
intellectual property contained no ex ceptions to the principle of national or MFN treatment.  Lithuania  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 49 
 
 
did not use the possibilities provi ded in Article 6 of the Berne Convention and maintained no 
exceptional measures as provided for under  Article 4(d) of th e TRIPS Agreement. 
149. 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 Classifi cation 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 ha d ratified the Protocol Rela ting to the Madrid Agreement 
Concerning the International Registration of Marks,  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 
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.  Lith uania had ratified the Rome Convention for the 
Protection of Performers, Producers of Phonograms and Broadcasting Organizations at the end of 
1998, and the Geneva Convention for the Prot ection of Producers of Phonograms against 
Unauthorized Duplication of their Programs in 19 99.  Lithuania had also concluded international 
agreements on intellectual property with Denmark,  Norway, Switzerland, the United Stated and the 
European Patent Organization. 
150. 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 Agreement, and includ ed a system of collective administration  and 
protection of copyright and related rights.  The As sociation of Performers and Producers of Phonograms 
had been established;  authors, artists and crea tors had founded the 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 pr ovided rental rights for cinematographic works, 
computer programmes and sound reco rdings.  In his view, the protection of the rights of performers, 
phonogram producers and broadcasting  organizations corresponded fu lly to the requirements of 
Article 14 of the TRIPS Agreement. 
151. Minor amendments to the Law on Trademarks  and Service Marks a nd the Law on Industrial 
Design to adjust to requirement s of the TRIPS Agreement would be enacted in 1999.  Lithuania 
considered the exceptions in its law to the rights conferred by a trademark to be in compliance with 
Article 17 of the TRIPS Agreement.  Geographical indications were protected under the new Law on WT/ACC/SPEC/LTU/8/Rev.4 
Page 50  
 
Competition.  The provisions complied, in his view, with the requirements of Articles 22 to 24 of the 
TRIPS Agreement. 
152. The representative of Lithuania said that th e Law on Patents appeared to require amendments, 
to be introduced in 1999, to incorporate the pr ovisions of the TRIPS Agreement and the Paris 
Convention regarding compulsory lice nsing of patented inventions.  Di sputes regarding working or non-
working of a patent could be sett led in Court.  Genera lly, importation of a patented product should be 
considered equivalent to the use of a patent. 
153. The representative of Lithua nia said that the Ministries and institutions involved in the 
development of intellectual propert y rights legislation were  accelerating their work.  On 16 June 1998, 
Parliament had adopted a Law on the Legal Protec tion of Topographies of Semiconductor Products, 
conforming with Arti cles 35 to 38 of the TRIPS Agreement.  The Law had entered into force on 
1 December 1998.  The Law on Legal Protection of Co mputer Programs and Da ta Bases and the Law on 
Plant Variety Protection and Seed Growing had been  adopted in 1996.  The latter Law assured the 
protection of all plant varieties re gistered in Lithuania and guaranteed the rights of variety owners.  
Lithuania was not a member of the International Plant Variety Protection Organization (UPOV) and 
would not join UPOV until varietie s of Lithuanian breeders had been  recognized and registered in 
countries in western Europe. 
154. Intellectual property rights were enforced by civil action,  unless the infringement was 
considered a criminal violation.  Procedures were laid down in the Civil Code and the Code of Civil 
Process of the Republic of Lithuania.  The Laws on Trademarks, Pate nts, Topographies of 
Semiconductor Products, and Industr ial 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 administrati ve, civil and criminal 
remedies for infringements of all types of intellec tual property, and would amend the Criminal Code.  
With due regard to this fact, the Law on Amendm ent 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 Procedure had been drafted and, once adopted, would ensure 
implementation and effective enforcement of the Law on Copyright and Rela ted Rights.  The Law on 
Copyright and Related Rights included a separate Article on provisiona l measures.  Border enforcement 
of copyright and other intellectual  property would be st rengthened under a new Law on the Protection of 
Intellectual Property for Imported and Exported G oods, to be introduced in 1999.  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).  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 51 
 
 
155. The representative of Lit huania confirmed that his Gove rnment would fully apply the 
provisions of the Agreement on Trad e-Related Aspects of In tellectual Property Rights (TRIPS) by the 
date of its access ion to the WTO without recourse to a tran sitional period.  The Working Party took note 
of this commitment. 
Policies Affecting Trade in Services  
[A revised offer of initial commitments on trade in services circulated as document 
WT/ACC/SPEC/LTU/1/Rev.1 of 17 September 1997, an d additional commitments in the sector of 
telecommunication services (document WT/ACC/S PEC/LTU/1/REV.1/Add.1 of  15 October 1997).  
Information on "MFN problemacity related to the co mmitments for commercial presence" circulated in 
document WT/ACC/LTU/24 on 14 May 1998.] 
156. The representative of Lithuania submitted to  the Working Party a separate Memorandum on the 
services regime (WT/ACC/LTU/5) , an additional presentation (WT/ACC/LTU/9) and  supplementary 
information in document WT/ACC/LTU/10.  The documentation outlined the market structure, regulatory framework and policies affecting services generally or in relation to specific sectors.  
Concerning the development of services-related legisl ation, he added that Lithuania had adopted several 
new laws or amendments, notably the Law on Insu rance, Law on Telecommunications, Law on Public 
Trading of Securities, amendments and supplem ents to the Law on Commercial Banks, Law on 
Construction, Law on Mass Media, the Civil Avia tion Code, Inland Transport Code, Road Transport 
Code, Railway Transport Code  and the Law on Tourism. 
157. The representative of Lithuania said that requirements for the regi stration 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, a nd verification of the origin  of the foreign capital.  Foreign investment was 
permitted in all sectors with the exception of areas related to defence and national security;  production 
and sale of narcotic subs tances, and other non-medicina l or poisonous substances 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 se rvice supplier with monopoly or 
exclusive rights;  its rights concerned collection and delivery of letters, postcards and printed matter;  
installation of letter collection boxe s;  and issuance of postage stamps .  The State Post Office did not 
have exclusive rights on courier services.  The form er State enterprise "Liet uvos Telekomas" had been 
privatized, but would hold exclusive rights to provi de telecommunication servic es until 1 January  2003. WT/ACC/SPEC/LTU/8/Rev.4 
Page 52  
 
158. The representative of Lithuani a provided information on licensing of business activities in the 
area of services in Table 3.2.  In addition, the establishment of a commercial bank required a licence 
issued by the Bank of Lithuania. 
159. Lithuania did not maintain any specific measures of horizontal nature which would limit market 
access or national treatment in the financial servi ces sector.  Permission from the Bank of Lithuania was 
required for foreign banks to establish bank branches  and representative offices.  According to the Law 
on Commercial Banks of 21 December 1994, foreign ba nks could establish subsid iaries;  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' directiv es which could lead to further liberalization.  Foreign securities 
firms could conduct business through any lega l form of enterprise in Lithuania. 
160. 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 fo reign insurance company ha d permission from its own 
Government to conduct insurance activities in fore ign countries.  Foreign financial institutions were 
permitted to deliver transportation insurance (maritim e and aviation) and reinsurance services across the 
border.  Insurance inte r-mediation on behalf of foreign in surance companies was allowed for 
intermediaries registered in Lithuania.  The representative of Lithuania indicated that no commitment 
would be undertaken for the establis hment of foreign insurance companies, but this right was accorded 
on the basis of reciprocity.  Such cases we re covered by Lithuani a's MFN exemption.  
161. 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.  Li thuania had no agreements  with other countries 
regarding the recognition of qualifications.  Lithua nia was developing licensing procedures for auditing 
services.  Auditors were required to pass a qualifications examination and receive a licence issued by the 
Institute of Audit.  Legal services  were regulated by the Ministry of Justice and could be provided by 
advocates and lawyers licens ed to engage in such activities. Fore ign lawyers could provide services on  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 53 
 
 
international law and home-country la w.  However, foreigners could not  act as defenders in criminal 
proceedings;  such services were reserved for advoca tes who were citize ns of Lithuania and included in 
a list of attorneys.  Foreign attorneys could repres ent clients before the Courts in Lithuania only if 
provided under bilateral agreements on legal assistance.  Agreements were in force with Belarus, 
Estonia, [Kazakstan], Latvia, Moldova, Poland, the Russian Federation, [Turkey] and Ukraine.  The 
limitations on citizenship, which were applicable to  advocates (representing cl ients before the Courts), 
were not applied to lawyers wishing to en gage in other lawyers' practices.   
162. The Government established an annual quo ta on the number of foreign employees in 
accordance with the Regulation on Temporary Empl oyment of Foreigners of 13 February 1995.  
Employers applied to the Lithuanian Labour Exch ange which would issue special visas and work 
permits for foreigners. This regu lation was not applied to intra-corporate transferees (managers, 
executives and specialists) working 1 to 2 years with a possibility of ex tension, or to business visitors 
working no longer than 3 months, for purposes related to  the negotiation of contract s, training of staff, 
installing equipment a nd similar activities. 
163. Regarding  procurement of services by govern ment agencies, the repr esentative of Lithuania 
said that the Law on Public Procurement (entering into force on 1 January 1997) included provisions on 
preferences for local suppliers.  The margin of pr eference would not exceed 15 per cent of the value for 
goods and services, and 20 per cent for works (i n connection with cons truction and renovation). 
Lithuania had no agreements with third countries  concerning government procurement of services. 
164. The representative of Lithua nia said that his Government was working with responsible 
Ministries, organizations a nd Parliament to ensure that WTO requi rements were reflected in new laws 
and regulations.  Lithuania's servi ces regime did not discriminate among services or service supplier 
countries (Article II) exce pt as provided in economic integration agreements meeting the standards of 
Article V of the GATS.  The Government provided full information on laws and regulations in the 
Official Gazette as required unde r Article III, and was drafting qual ification requirements, technical 
standards and licensing requirements in accordance with the requirements of Article VI. 
165. [Lithuania's Schedule of Specif ic Commitments on Servic es is annexed to its draft Protocol of 
Accession reproduced in the Appendix to this Repo rt (see paragraph … below).  This Schedule of 
Specific Commitments on Services contains th e legally binding market-a ccess commitments of 
Lithuania in respect of services.] 
[to be completed] WT/ACC/SPEC/LTU/8/Rev.4 
Page 54  
 
Transparency
 
Publication of information on trade  
166. The representative of Lithuania said that according to Lithuanian  procedures legal acts could not 
be enforced until they had been publ ished in the Official 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. 
167. The representative of Lithuania stated that [at the latest from the date of accession,] all laws, 
regulations, rulings, decrees and othe r normative acts related to trade would be promptly published in 
the Official Gazette [or other official newspapers published by appropriate Mini stries or departments] 
and no law, rule, etc. related to international trade would become effective prior to such publication.  
[He further stated that L ithuania would implement full y Article X of the GATT 1994, Article III of the 
GATS, and the other transparency  requirements in WTO Agreemen ts requiring notification and 
publication.] 
Notifications  
168. 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 
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  
169. Some members of the Working Party asked Lit huania to provide information on bilateral or 
regional agreements affecting trade and investment.  Some members 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 removal of barriers among the three 
countries. 
170. The representative of Lithuania said that Lithuania had negotiated Free Trade Agreements 
(FTA's) with the European Communities, the European Free Trade Association (EFTA), Estonia and 
Latvia (a trilateral agreement), Ukraine, Poland, Sloven ia, the Czech Republic, Slovakia and Turkey.   WT/ACC/SPEC/LTU/8/Rev.4 
 Page 55 
 
 
Lithuania intended to conclude free trade agreem ents with all CEFTA countries.  A Free Trade 
Agreement between Lithuania, Estoni a and Latvia, covering industrial  products, had entered into force 
on 1 April 1994 and a second part of the Agreemen t, on agricultural products, on 1 January 1997.  
Together, the two parts of the FTA provided for free trade (no interim measures) at zero tariffs among the Baltic States. 
171. Trade agreements providing for MFN treatment (conventional duties) ha d been concluded with 
Australia, Belarus, Bulgaria, China, Cyprus, Cuba, Ge orgia, Hungary, India, the Republic of Korea, [the 
Philippines], Romania, the Russian Federation, Uz bekistan, Venezuela and Vietnam.  Conventional 
MFN duties were also applied on im ports from Canada, Japan, Kazaks tan, Moldova, Tadjikistan and the 
United States.  Goods or iginating in other countries were subj ect to autonomous customs duties.  
Agreements on investment promotion and protection had been concluded 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, Ve nezuela [and Vietnam].  Lithuania had also 
concluded an agreement with the Multilateral Investment Guarantee Agency. 
172. The representative of Lithuani a said that the free trade agre ements covered s ubstantially all 
trade.  Under the Lithuania/European Communities Agreement, tariffs would nevertheless remain on 
some agriculture and fishery products after the six-year transiti onal 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 
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 Eu ropean Communities; the 
relevant implementing re gulation (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. 
173. The Free Trade Agreements with the Eu ropean Communities and EFTA States were 
asymmetric, but only for industrial products.  The two agreements were similar in content, except that 
the agreement with EFTA States contained a smaller number of products subject to a transitional period 
and provided a specific date for the abolition of import duties on textile products.  The FTA with EFTA 
States included agricultural products, but the trade re gime was based on reciprocal concessions from the 
MFN level.  The FTA with EFTA States had already been notified by EFTA under Article XXIV.  The FTA with Ukraine stipulated MFN treatment for the majority of agricultural products, for the remaining 
items the tariff was zero.  The Agreement included Annexes on rules of origin and administrative 
cooperation which had been signed in February 1994.   New rules of origin were in preparation and WT/ACC/SPEC/LTU/8/Rev.4 
Page 56  
 
would be similar to those established in the FTA' s with the European Communities, EFTA States and 
CEFTA countries.  The Parties of the Agreement co mmitted to ensure free tran sit 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 replied that no Englis h version of the Agreement existed, and therefore 
provided a summary of the Free Trade Agreement with Ukraine to the Working Party. 
174. A member noted that Lithuania applied export taxes which were differe ntiated according to the 
market of destination and wondered whether Lithua nia intended to maintain this practice.  The 
representative of Lithuania replied th at Lithuania maintained some expor t duties on a bilateral basis  - on 
raw hides and skins and timber of oak and ash - in co nnection with the Free Trade Agreements with the 
European Communities, the Czech Republic, Slovakia, Slovenia and a Trilateral Free Trade Agreement 
between Lithuania, Latvia and Es tonia (Table 9.2).  The Free Trade Agreement with Poland also 
allowed the possible use of export duties.  Exports of the affected products had been prohibited at the 
time of conclusion of these Free Trade Agreements and the introduction of export duties (on a bilateral 
basis) had thus been a step towards liberalization of trade.  The preferential duties were generally equal 
to the non-preferential rates although in some cases preferential trade was exempt from export duties or 
subject to lower rates.  [He said that this practice could be justified under Articl e XXIV of the GATT 
1994, and stressed that all export duties applied on the basis of bilateral agreem ent would be eliminated 
by 1 January 2001.  However, some members did not ag ree that this practice could be so justified.] 
175. Preferential rules of origin were in place in th e context of all free trad e agreements.  The origin 
of goods was determined in accordan ce with list of rules applied for all products.  Declarations of 
preferential origin, accompanied by a statement of an  independent expert, were made by the suppliers of 
materials or products in  accordance with Government Resolution No. 110 of 24 February 1993.  
Simplified procedures had been established in the ap propriate Protocols on the Rules of Origin in the 
Free Trade Agreements concluded by Lithuania and were used when EUR.1 movement certificates had 
been issued by approved exporters. 
176. The representative of Lithuani a stated that his Gove rnment would observe the provisions of the 
WTO including Article XXIV of the GATT 1994 and Ar ticle 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 pr eferential 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.  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 57 
 
 
Conclusions  
177. The Working Party took note of the explanatio ns and statements of Lithuania concerning its 
foreign trade regime, as reflected in  this Report.  [The Working Party took note of the assurances given 
by Lithuania in relation to certain specific matters which ar e reproduced in paragraph 19 of this Report.]  
The Working Party took note of the commitments given by Lithuania in relation to certain specific 
matters which are reproduced in paragraphs [19], 22 , 29, 40, [43], 52, 55, 62, 66, 76, 77, 85, 89, 95, 
[99], 102, 110, 118, 120, 127, 130, 132, 135, 146, 155, 168 and 176 of this Report.  The Working Party 
took note that these assurances and commitments had been in corporated in paragraph 2 of the Protocol 
of Accession of Lithuania to the WTO. 
178. Having carried out the examination of the forei gn trade regime of Lithuania and in the light of 
the explanations, commitmen ts and concessions made by the representative of Lithuania, the Working 
Party reached the conclusion that Lithuania be invited to accede to the Marrakesh Agreement 
Establishing the WTO under the provisi ons of Article XII.  For this  purpose, the Working Party has 
prepared the draft Decision and Protocol of Acces sion reproduced in the Appendix to this Report, and 
takes note of Lithuania's Schedule of Spec ific Commitments on Services (document 
WT/ACC/LTU/.......) and its Schedule of Con cessions and Commitments on Goods (document 
WT/ACC/LTU/..........) that are annexed to the Protocol.  It is proposed th at these texts be adopted by the 
General Council when it adopts the Report.  When th e Decision is adopted, the Protocol of Accession 
would be open for acceptance by Lithuania which wo uld become a Member thirty days after it accepts 
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.4 
Page 58  
 
 
APPENDIX
 
 
 
ACCESSION OF LITHUANIA  
  
Draft Decision
 
 
  The General Council, 
 
 Having regard
 to the results of the negotiations directed towards the establishment of the terms 
of accession of the Republic of Lithuania to th e Marrakesh Agreement Establishing 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 Lithuania may accede  to the Marrakesh Agreement 
Establishing the World Trade Organization on the terms set out in the said Protocol.  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 59 
 
 
PROTOCOL OF ACCESSION OF LITHUANIA  
TO THE MARRAKESH AGREEMENT ESTABLISHING  
THE WORLD TRADE ORGANIZATION  
 
Draft  
 
 The World Trade Organization (hereinafter refe rred to as the "WTO"), pursuant to the approval 
of the General Council of the WTO accorded u nder 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 th e 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 su ch legal instruments as may have en tered into force before the date 
of entry into force of this Protocol.  This Protoc ol, which shall include the commitments referred to in 
paragraph ... of the Working Party Report, shall be an integral part of the WTO Agreement. 
 
3. Except as otherwise provided for in the paragraphs referred to in paragraph ... of the Working 
Party Report, those obligations in the Multilateral  Trade Agreements annexed to the WTO Agreement 
that are to be implemented over a period of time st arting with the entry into force of that Agreement 
shall be implemented by Lithuania as if it had a ccepted that Agreement on the date of its entry into 
force. 
4. Lithuania may maintain a measure inconsiste nt with paragraph 1 of  Article II of the GATS 
provided that such a measure is reco rded 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.4 
Page 60  
 
 
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 impl emented as specified in th e 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 Conc essions 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 Director-General of the WTO.  The Director-General of the WTO shall promptly furnish a certified copy of this Protocol and a no tification of acceptance 
thereto pursuant to paragraph 7 to eac h Member of the WTO and Lithuania. 
 
10. This Protocol shall be registered in accordan ce with the provisions of Article 102 of the Charter 
of the United Nations.  11. Done at Geneva this ... day of  .... one thousa nd nine hundred and ninety ......, in a single copy in 
the English, French and Spanish languages each te xt 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.4 
 Page 61 
 
 
  
 
ANNEXES 
 
[to be completed] WT/ACC/SPEC/LTU/8/Rev.4 
Page 62  
 
ANNEX 1 
 
Laws, Regulations and Other Information Pr ovided to the Working Party by Lithuania
 
 - Memorandum of Economic Policies  of the Government 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 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 Fore ign Investment is Prohi bited 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; - Resolution No. 806 of 24 July 1997 On the Tari ff and Non-Tariff Regulation of Export and 
Import of Goods and Improvement of Establis hment of Customs 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 6 June 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 approve d by the Lithuanian Govern ment'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 Approval  of Customs Duties of Bound Tariff Rates 
for the Imported Goods of 26 September 1996; 
- Government Resolution No. 1245 of 20 Oct ober 1998 Amending Government Resolution No. 
268 of 24 March 1997 on the Procedure of Export and Import Regulation in the Republic of 
Lithuania;  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 63 
 
 
- Government Resolution No. 635 On the General Order of the Administra tion 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 September 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; 
- 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; - 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; 
- 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 Commodity 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 a nd Export of Strategic Goods and Technologies, 
No. I-1022, 5 July 1995; 
- Government Resolution No. 718 On the Restricti on of Import of Certain Things (Goods) to the 
Republic of Lithuania, their E xport and Transit of 19 May 1995; 
- Government Resolution No. 449 On the Approval of the Order of Customs Valuation of Goods 
of 16 June 1993; 
- Government Decree No. 751 On Prices of Im ported Goods Used for their Customs Valuation 
Purpose of 25 June 1996 (unofficial translation);   
- 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 fo r Imported Goods of 
25 June 1996; 
- Law No. VIII-807 of 23 June 1998 on Anti-Dumping; 
- Government Decision on More St ringent Regulations on Purchase and Sale of Waste and Scrap 
of Ferrous Metals of  23 May 1994, No. 388; 
- Government Decision on Order of Purchase in th e Republic of Lithuania,  Re-melting of Export 
of Copper and other Non-ferrous Metals, thei r Alloys, Scrap and Wa ste of 29 June 1994, 
No. 526; 
- Law on Metrology No. I-1452 of 9 July 1996; 
- Draft Law on the Conform ity Assessment System; 
- Law No. VIII-870 of 6 October 1998 on the Conformity of Assessment; - 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; WT/ACC/SPEC/LTU/8/Rev.4 
Page 64  
 
- Resolution No. 1106 of 9 October 1997 On Approva l of the Procedure of the Importation of 
Foodstuffs into the Republic of Lithuania and C ontrol of Their Quality and Non-Hazardness to 
Health; 
- Law on Veterinary Activities No. I-2110 of 17 December 1991; 
- Government Decision on Veterinary and Sanita ry Requirements on Livestock, their Products, 
Raw Materials and Fodder Import ed into the Republic of Lithuania 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 Variet ies and Seed Cultivation No. I-1518 of 
17 September 1996; 
- Government Decision on the Approval of Vege table Quarantine Regulations for Import and 
Export of Goods of Vegetable Origin to and fr om the Republic of Lith uania and their Transit 
through the Territory of the Republic of Lithuania of 3 August 1993, No. 599; 
- Government Resolution No. 384 On the Appr oval of Quarantine Regulations for the 
Production, Transportation, Conser vation, Sale and 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 Approving  Provisional Regulations of Government 
Procurement of 12 April 1995; 
- Law on Public Procurement No. I-1491 of 13 August 1996; - 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 Agricultu ral and Food Products Market and Export 
Promotion; 
- Law on Sugar No. I-867 of 27 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; 
- Law on Trademarks and Service Marks of 3 June 1993, No. I-173; 
- Patent Law of 18 January 1994, No. I-372; - Law on Industrial Design No. I-1006 of 4 July 1995; - Law No. VIII-791 of 16 June 1998 on the Legal Protection of Topographies of Semi-
conductor Products; 
- Government Resolution No. 511 On Approvi ng 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; 
- 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;  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 65 
 
 
- 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; 
- 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 be tween the European Community, the European 
Atomic Energy Community and the European Coal and Steel Community, of the one part, and the Republic of Lithuania, of the other part; 
- Government Resolution No. 205 On Enactment of the Free Trade Agreement between the 
Republic of Lithuania and th e European Communities, the European Atomic Energy 
Community, and the European Coal and Steel Community of 8 February 1995; 
- Government Resolution No. 176 of 19 February 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 Decem ber 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 Fore ign Investment is Prohi bited 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 approve d by the Lithuanian Govern ment'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 Commodity 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 St ringent Regulations on Purchase and Sale of Waste and Scrap 
of Ferrous Metals of  23 May 1994, No. 388; WT/ACC/SPEC/LTU/8/Rev.4 
Page 66  
 
- Government Decision on Order of Purchase in th e Republic of Lithuania,  Re-melting of Export 
of Copper and other Non-ferrous Metals, thei r Alloys, Scrap and Wa ste of 29 June 1994, 
No. 526; 
- Government Resolution No. 510 On Approving  Provisional Regulations of Government 
Procurement of 12 April 1995; 
- 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 Agreement between the 
Republic of Lithuania and th e European Communities, the European Atomic Energy 
Community, and the European Coal and Steel Community of 8 February 1995. 
   WT/ACC/SPEC/LTU/8/Rev.4 
 Page 67 
 
 
 
[Table 1(a):  Information on the Pr ivatization Process of State Property  
 
First Stage of the Process  
(1 September 1991 - 31 December 1996) 
 
 Description Number of  objects 
(units) Capital  
(mln Litas*) 
1. Total State property (except budgetary 
institutions, apartment fund and agricultural enterprises) 8,065 13,547.4 
2. Property included in a list of object to be 
privatized according to the data provided by 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.4 
Page 68  
 
 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. Number of the investment accounts opened for the population is 2.6 million.  Amount of the means after  indexation was 10,504 million Litas. 
2. 17 special enterprises were included into privatiz ation programme.  State capital of these enterprises 
 amounts to 3,825 million Litas. * 4 Litas = US$1 
]   WT/ACC/SPEC/LTU/8/Rev.4
 Page 69Table 1(b):  Information on the Privatization Process of State and Municipalities Property  
 
(Second stage of the process - privatization by cash) 
August 1996 - March 1998 
(number of objects (units)) 
 
Ministry of   
 
STEP UNDERTAKEN   
National 
Security 
Fund National 
Economy Agricul-
ture and 
Forestry Construc-
tion and 
Urban Planning Transport Commun-
ications and 
Informatics Others  
 
 
Districts  
 
Muni-
cipalitie
s  
 
Tourism 
Dept.  
 
 
Total 
Enterprises included in a list of objects to 
be privatized 998 29 1 15 20 7 24 4 1165 0 2,263
Enterprises later excluded from the list of 
objects to be privatized 12 9 1 3 1 1 1 0 26 0 54
Enterprises included in privatization 
programmes: 431 19 1 13 16 6 8 1 734 0 1,229
- public signing of shares 19 0 0 0 0 0 0 0 0 0 19
- auctions 387 18 1 13 14 6 8 1 723 0 1,171
- tenders 23 1 0 0 2 0 0 0 1 0 27
- leasing 0 0 0 0 0 0 0 0 10 0 10
- direct negotiations 2 0 0 0 0 0 0 0 0 0 2
Pending privatization 6 0 0 0 0 0 0 0 6 0 12
Privatized enterprises: 198 15 0 12 15 6 7 1 410 0 664
-  public signing of shares 6 0 0 0 0 0 0 0 0 0 6
- auctions 178 14 0 12 14 6 7 1 400 0 632
- tenders 13 1 0 0 1 0 0 0 0 0 15
- leasing 0 0 0 0 0 0 0 0 10 0 10
- direct negotiations 1 0 0 0 0 0 0 0 0 0 1
Incomes (thou. Litas) 2,305,050 2 530 0 39,072 15,915 1,528 10,858 2 39,435 0 2,414,390
 
  WT/ACC/SPEC/LTU/8/Rev.4 
Page 70  
 
[Table 1 (c ):  Progress in Privatization of Up and 
 
Downstream Industries in Lithuanian Agriculture  
(by 1 January 1999) 
 
n: Enterprise Statutory 
Capital 
mln Lt 
 Structure of  Share Capital Shares 
sold by 
9/97 
mln Lt  
  State % Employee 
% Farmers 
%  
Agroservice Enterprises - 27  46.17 6.74 50.65 42.61 19.67
Flax Selection Enterprises - 9 8.24 0.84 56.08 43.08 3.55
Meat Processing Enterprises - 14 102.61 16.68 53.89 29.43 30.20
Dairy Processing Enterprises - 38 281.15 15.21 49.26 35.53 99.89
Fruit & Vegetables Processing - 2 2.05 2.60 50.52 46.88 0.96
Grain Processing Enterprises - 21 147.34 2.5 50.96 46.54 68.42
Sugar Processing Enterprises - 4 98.52 0.0 54.88 45.12 44.45
Total - 115 Enterprises 686.08 9.78 51.30 38.92 267.14
]   WT/ACC/SPEC/LTU/8/Rev.4
 Page 71[Table 2:  List of Goods and Se rvices 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 Commission of Energy Resources' Prices and Energy Activity 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 Commission of Energy 
Resources' Prices and Energy Activity 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 
Commission of Energy Resources' Prices and 
Energy Activity 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 o f 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.4 
Page 72 
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.4
 Page 73Code 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. 
 851 Prices for services provided by profit seeking 
institutions. These prices can not exceed 60% of 
prices set for services of the State institutions 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.  WT/ACC/SPEC/LTU/8/Rev.4 
Page 74 
Code according 
 
HS NACE  
Items subject to price control  
Institution applying control  
Reasons and perspectives for control 
1 2 3 4 5 
  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 
  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.4 
 Page 75 
 
 
 [Table 3.1:  Licensing in Lithuania (Goods-Related Activities)  
 
 Business Activity Licence Required 
1. production of weapons, ammunition, explosives and 
pyrotechnics;  repair of weapons unless the laws provide otherwise*; Licence required for 
domestic and foreign interests.  Licences for activity  (3) are available 
only for domestic interests. 
2. pharmaceutical activity*;  
3. import and export of narcotics and highly effective substances, 
wholesale and retail trade in Lithuania*#  
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 
trade*;  
7. purchasing of non-ferrous metals , its alloys, scrap and waste in 
Lithuania*;  
8. purchasing of ferrous metals sc rap and its waste in Lithuania*;  
9 purchasing and processing of prec ious metals waste, commercial 
activity related with the pr ecious 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 Pr otection;  gathering, making 
harmless, storage and bury ing of waste thereof;  
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;  retail  trade (excluding pistols and 
revolvers and ammunition thereof for self-defence)*;  
14. publishing of securities and document forms*  
15. import and production of biologi cal plants protection measures 
and trade by its##   
1. production of undenatured ethyl alcohol and alcohol beverages 
which contain more than 22% of ethyl alcohol by volume (this 
right is given only to State enterprises unless the Law on 
Alcohol Control provides otherwise); Activities reserved for State 
and special enterprises 
2. production of, monetary sign s and coins, post-stamps;  
* licensing of business activity 
# the words “cultivation and sale of crops containing narcotic, highly effective or poisonous substances” must be crossed out, because in  accordance with the Law No. VIII-602 of 8 January 1998 on Control of 
Narcotic and Psihotropic Substances the cultivation of opium and oil poppies, hemps and cocatrees it is 
prohibited in the territory of Lithuania. ## the licenses are not longer necessary for these business activities; they have been changed into permits 
or certificates, which to obtain the procedure is more simple. 
 WT/ACC/SPEC/LTU/8/Rev.4 
Page 76  
 
 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 (10) 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 medical serv ices, medical treatment*;  
6. veterinary practice;  
7. lawyer practice, unless th e laws provide otherwise;  
8. training and education activity##;  
9. carrying out of geodetic and topographical works*;  
10. activity by the international transportation, passenger 
transportation in Lithuania*;  
11. tourism services##;  
12. organizing of lotteries*;  
13. providing of communication serv ices using of common network 
of telecommunications lines and stations*;  
14. establishment and exploitati on of the shooting-galleries and 
stands of hunting shooting;  
15. mediation activity in the pub lic turnover of stock exchange;  
16. stock exchange activity;  
17. investment and reinvestment to  securities and trade by its as 
main activity;  possession of  the investments companies 
property, unless the laws  provide otherwise;   
18.  energetic activity##;  
19. ship agency services##;  
20. lockman services##;  
21. fulfilment of audit*;  
22. insurance activity*;  
23. treatment of animals ill wi th  especially dangerous;  
24. 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;  
25. towing of ships; rescue and submarine technical works;  
26. bank or credit institution activity*  
27. construction activity  
1. 
2. post work (only the State ente rprise "Lietuvos pastas"); 
accepting and paying off of po stal orders (only the State 
enterprises "Lietuvos pastas"); Activities reserved for State 
enterprises, local enterprises 
and special enterprises 
*  licensing of business activity * 
## the licenses are not longer necessary for these business activities; they have been changed into permits or 
 certificates, which to obtain the procedure is more simple.]  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 77 
 
 
 [Table 4:  Rates of Stamp Tax Established in Accordance with  
Government Resolutions No. 1123 of 11 November 1994  
(amended No. 774 of 23 June 1998 which will enter into force on 1 January 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) 
(after accession Llt.100,000 
(US$25,000)) 
(b) Alcoholic beverages except vodka Llt. 380,000 (US$95,000) 
(after accession this kind of 
licence will not be applied) 
(c) Wine (not exceeding 22% of volume concentration of ethyl  alcohol) and beer  
Llt. 150,000 (US$37,000) 
(after accession Llt. 50,000 
(US$12,500)) 
(d) Beer Llt. 30,000 (US$7,500) 
(after accession Llt. 15,000 
(US$3,750)) 
(e) Alcohol products (except alc oholic beverages) Llt. 300 (US$75) 
(after accessi on Llt. 500, US$125)
2. For issuing a licence to e ngage in wholesale of alcohol 
 produced in Lithuania (for the term of one year):  
(a) Alcoholic beverages  Llt. 35,000 (US$8,750) 
(after accession Llt 100,000 
(US$25,000)) 
(b) Alcoholic beverages not exceeding 22% of volume  concentration of ethyl alcohol  
Llt. 17,500 (US$4,375) 
(after accession Llt. 50,000 
(US$12,500)) 
(c) Beer Llt. 8,000 (US$2,000) 
(after accession Llt 15,000 
(US$3,750)) 
3. For issuing an activity licence for 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 for 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 lubricants (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 reta il trade of lubricants Llt. 1,000 (US$250) 
 WT/ACC/SPEC/LTU/8/Rev.4 
Page 78  
 
 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.4 
 Page 79 
 
 
 [Table 5:  Fees and Charges for Services Rendered Relating to Importation or Exportation  
 
1. Formalities in connection with  placement of one consignment 
of goods under one of the following customs procedures:  
(a) Exportation (including re-exporta tion) Llt. 22 (Llt. 1 - US$0.25) 
(b) Importation (including re-importation and customs 
warehousing) Llt. 33 
(c) Temporary admission and te mporary exportation Llt. 55 
(d) Inward processing and outward processing Llt. 110 
2. Issuance of one certificate of origin Llt. 25 
3. Issuance of stickers used for marking of imported alcoholic 
 beverages and tobacco goods (under one request)  
Llt. 20  
4. Issuance of authorization for inward processing Llt. 200 
5. Issuance of authorization for outward processing Llt. 221 
6. Issuance of permit to carry out formalities in connection with 
 customs procedures at  other customs office:  
(a) Single Llt. 10 
(b) For period not exceeding 3 months Llt. 20 
(c) For the period not exceeding 6 months Llt. 60 
(d) For the period exceeding 6 months Llt. 80 
7.  For the security of goods ca rriage through customs territory 
 (only for the services of police financed by state budget) Llt. 0.8 per 1 kilometre 
8.  Issuance of permit to import:   
(a) Shotguns, hunting rifles, its parts arbalets Llt. 70 
(b) Shotguns, hunting rifles, its pa rts arbalets for the commercial 
 goals Llt. 6,000 
(c) Pistols (revolvers), its pa rts for the self-defence, for 
 commercial goals Llt. 2,000 
(d) Ammunition and explosives Llt. 50 
(e)  Ammunition for commercial goals Llt. 4,000 
(f)  Sporting firearms Llt. 20 
(g)  Sporting firearms for commercial goals Llt. 2,000 
(h) Air gains (pistols), gas pistols (revolvers) and ballones for 
 commercial goals Llt. 3,000 
(i)  Colour copy machinery Llt. 40 
(j)   Colour copy machinery for commercial goals Llt. 4,000 
9.     Issuance of permit to export:  
(a)  Shotguns, hunting rifles, its parts arbalets Llt. 70 
(b) Shotguns, hunting rifles, its pa rts 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 commercial goals Llt. 4,000 
(f)  Sporting firearms Llt. 20 
(g)  Sporting firearms for commercial goals Llt. 2,000 
(h)   Air gains (pistols), gas pistols (revolvers) and ballones for 
 commercial goals Llt. 3,000 
(i)  Colour copy machinery Llt. 40 WT/ACC/SPEC/LTU/8/Rev.4 
Page 80  
 
 (j)  Colour copy machinery fo r commercial goals Llt. 4,000 
10.  Import of narcotic, psychotropic medicine and medicine stuff Llt. 300 
11.  Import of psychotropic medicine and medicine stuff Llt. 300 
12.  Import of biological plan ts protection remedies Llt. 500 
13.  Import of chemical materi als, which can harmfully effect 
 environment Llt. 700 
14.  Transportation of nuclear a nd radioactive materials Llt. 1,500 
15. Import of pyrotechnics remedies, civil guns and its 
 ammunition, except pistols a nd revolvers for the self-defence 
 and its ammunition Llt. 5,000 
16. Issuance of permission to temporary export for processing Llt. 221 
17. Issuance of permission to tem porary import for processing Llt. 200 
18. Issuance of license to import, export and transport:  
(a)  Controlled goods Llt. 120 
(b)  Dangerous materials accord ing UN classification Llt. 44 
(c)  Radioactive materials according UN classification Llt. 77 
19.  Issuance of certificate confirming about the delivering and 
 import of controlled goods Llt. 100 
20. Export of itinerant culture va lues (elder than 50 years) or 
 antiquarian things 20% of value 
21.  Export of numismatics, philately, bonistics and faleristics 10% of value 
 
]  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 81 
 
 
 [Table 6:  Excise Taxes Levied in Lithuania According to  
Government Resolution No.1515 of 30 December 1998 and  
Amendment to the Law on Excise Taxes No. VIII-982 of 21 December 1998  
 
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. 0.54 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. 0.20 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. 0.42 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. 25 for 1000 units 
2402.10.00.0, 
2402.90.00.0, 
2403**** Packed smoking tobacco and other tobacco 
products 50 WT/ACC/SPEC/LTU/8/Rev.4 
Page 82  
 
 Commodity 
code Commodity description Taxes  (by percentage of taxable 
value or absolute Llt for indicated 
measurement unit*) 
2710.00.27.1- 
2710.00.37.0 Motor fuel/petrol Llt. 1210 per ton (since 1 January 
1999)***** 
Llt. 1370 per ton (since 1 January 2000)***** 
Llt. 1150 per 1000 litre (since 1 
January 2001)***** 
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 (since 1 January 
1999)***** 
Llt. 720 per ton (since 1 January 
2000)***** Llt. 740 per 1000 litre (since 1 
January 2001)***** 
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.4 
 Page 83 
 
 
 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 
preparations 0.01 Llt per 1% of sugar per 1 kg 
of preparation  
0402.10.99.0,   
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,   
0403.10.31.0,   
0403.10.33.0,   
0403.10.39.0,   
0403.90.31.0,   
0403.90.33.0,   
0403.90.39.0,   
0403.90.61.0,   
0403.90.63.0,   
0403.90.69.0,   
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,   
1701.11.10.0,   
1701.11.90.0,   
1701.12.10.0,   WT/ACC/SPEC/LTU/8/Rev.4 
Page 84  
 
 Commodity 
code Commodity description Taxes  (by percentage of taxable 
value or absolute Llt for indicated 
measurement unit*) 
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,   
1702.90.75.0,   
1702.90.79.0,   
1702.90.80.0,   
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,   
1704.90.61.0,   
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,   
1806.20.70.0,   
1806.20.80.0,   
1806.20.95.1,   
1806.31.00.0,   
1806.32.10.0,   
1806.32.90.0,   
1806.90.11.0,   
1806.90.19.0,   
1806.90.31.0,   
1806.90.39.0,   
1901.20.00.0,   
1905.20.10.0,   
1905.20.30.0,   
1905.20.90.0,   
1905.30.11.0,   
1905.30.19.0,   
1905.30.30.0,   
2006.00.38.0,   
2007.91.10.0,   
2007.99.10.0,   
2007.99.20.0,   
2007.99.31.0,   
2007.99.33.0,   
2007.99.35.0,    WT/ACC/SPEC/LTU/8/Rev.4 
 Page 85 
 
 
 Commodity 
code Commodity description Taxes  (by percentage of taxable 
value or absolute Llt for indicated 
measurement unit*) 
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,   
2105.00.10.0,   
2105.00.91.0,   
2105.00.99.0,   
2106.90.30.0,   
2106.90.55.0,   
2106.90.59.0,   
2106.90.98.7,   
2309.10.90.0    
1905.30.51.0, 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 
1905.30.59.0,   
1905.90.60.0,   
2006.00.10.0,   
2006.00.31.0,   
3303.00.10.1;   
3303.00.90.1;   
3304.99.00.1;   
3307.10.00.1;   
3307.90.00.1,   
1302.19.30.1,   
1302.19.99.1,   
2008.20.11.1,   
2008.20.19.1,   
2008.20.31.1,   
2008.20.39.1,   
2008.30.19.1,   
2008.30.39.1,   
2008.30.39.1,   
2008.40.19.1,   
2008.40.29.1,   
2008.40.31.1,   
2008.40.39.1,   WT/ACC/SPEC/LTU/8/Rev.4 
Page 86  
 
 Commodity 
code Commodity description Taxes  (by percentage of taxable 
value or absolute Llt for indicated 
measurement unit*) 
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,   
2008.99.21.1,   
2008.99.23.1,   
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,   
2207.20.00.0,   
3302.10.10.1,   
3302.10.40.2,   
3302.10.90.2,   
3302.90.10.1,   
3306.90.00.1,   
3402.20.90.2,   
3402.20.90.7,   
3402.90.90.2,   
3402.90.90.7,   
3814.00.90.1,   
3820.00.00.1,   
*  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 beer produced and sold  by each Lithuanian beer 
manufacturing company producing 100 thousand decalitres per year (this provision shall be applied 
until Lithuanian Membership of the World Trade Organization). 
**** Excise tax 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) WT/ACC/SPEC/LTU/8/Rev.4 
 Page 87 
 
 
 [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 disabled peoples board 
and lodging 
3 training, science, studies services rendered by education, science and studies institutions, 
registered according the order established by the Government; non-commercial culture services  listed by the Government; 
4 post services (except sending forward the parcels and the telecommunication services and postage 
stamps and envelopes); 
5 financial services listed by the Government and rendered by the insurance, banks and other credit 
unions institutions; turnover of securities and lotteries; 
6 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 acc ording 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.4 
Page 88  
 
 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 outside 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.4 
 Page 89 
 
 
  
[Table 8:  List of good s subject to "price-in-ch ecking" (valid until Lithua nia’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.4 
Page 90  
 
 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.4 
 Page 91 
 
 
 [Table 9.1:  Rates of Export Duties Approved by Government Resolutions  
No. 896 of 7 August 1997 and No.1 of 6 January 1998  
 
Code of group of goods* Description of group of goods Tariff rate (%)** 
4101, 4103 Raw hides and skin 30 
4403 20 90 6 Pine wood in logs, with a circumference not less than 
20 cm at the thin end 60 
4403 20 90 7 Spruce wood in logs 60 
4403 91 Unprocessed oak timber 60 
4403 99 99 1 Unprocessed ash timber 60 
4403 99 99 2 Birch wood in logs, with a circumference not less 
than 20 cm at the thin end 60 
* Codes of groups (goods) are presented according to  the EEC Harmonized Commodity Description and 
Coding System. 
** Goods without codes herein are subject to a zero rate customs duties. 
 
 
Table 9.2:  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 - 30 
EE, LV - 25 CZ, SK, Sl - 15 
4401 22-4101 40 Other hides and skins of bovine animals EU - 30 
CZ, SK, Sl - 15 
4403 20 10 5   Spruce of the kind “Picea ab ies Karst.” or silver fir 
(Abies alba Mill.) EE, LV - 10 
CZ, SK, Sl - 30 
4403 20 30 5 Pine of the kind “Pinus sylvestris L.” EE, LV - 10 
CZ, SK, Sl - 30 
4403 91 00,  
4403 99 99 1 Wood and articles of wood; w ood charcoal EE, LV - 10 
EU, CZ, SK, Sl - 30
4403 99 50 1 Wood and articles of wood;  wood charcoal CZ, SK, Sl - 30 
EU - European Union; EE - Estonia; LV - Latvia; CZ - Czech Republic; SK - Slovakia; Sl - Slovenia; WT/ACC/SPEC/LTU/8/Rev.4 
Page 92  
 
 [Table 10: List of Foodstuffs to be Checked by official Control Authorities under Importation
 
 
HS code Description 
0201 Meat of bovine animals, fresh or chilled 
0202 Meat of bovine animals, frozen 
0203 Meat of swine, fresh, chilled or frozen 
0204 Meat of sheep or goats, fresh, chilled or frozen 
0205 Meat of horse, asses, mules or hinnies, fresh, chilled or frozen 
0206 Edible offal of bovine animals, swine, sheep, goats, horses, asses, 
mules or hinnies, fresh, chilled or frozen 
0207 Meat and edible offal, of the poultry of heading No.0105, fresh, chilled 
or frozen 
0208 Other meat and edible meat offal, fresh, chilled or frozen 
0209.00-0209.00.90.0 Pig fat free of lean meat and poultry fat (not rendered), fresh, chilled, 
frozen, salted, in brine, dried or smoked 
 Subcutaneous pig fat 
0209.00.11.0 Fresh, chilled, frozen, salted or in brine 
0209.00.19.0 Dried or smoked 
 Pig fat, other than that falling within subheading 0209.00.11.0-
0209.00.19.0  
 Poultry fat 
0210 Meat of swine: 
 Salted or in brine 
 Dried or smoked 
 Other 
 Salted or in brine 
 Dried or smoked 
 Other 
 Other: 
 Salted or in brine 
 Dried or smoked 
 Other 
0210.20-0210.90 Meat of bovine animals 
0210.90 Other meat, including edible flours and meals of meat or meat offal: 
 Meat: 
 Horsemeat, salted, in brine or dried 
 Sheep and goats: 
 With bone in 
 Boneless 
 Reindeers 
 Other meat and edible meat offal 
 Edible flours and meals of meat or meat offal 
0301 Live fish 
0302 Fish, fresh or chilled, excluding fish fillets and other fish meat of 
heading No 0304 
0303 Fish, frozen, excluding fish fillets and other fish meat of heading No 
0304 
0304 Fish fillets and other fish meat (w hether or not minced), fresh, chilled 
or frozen  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 93 
 
 
 HS code Description 
0305 Fish, dried, salted or in brine;  smoked fish, whether or not cooked 
before or during the smoking process; flours, meals and pellets of fish, 
fit for human consumption 
0306 Crustaceans, whether in shell or not, live, fresh, chilled, frozen, dried, 
salted or in brine; crustaceans, in shell, cooked by steaming or by 
boiling in water, whether or not ch illed, frozen, dried, salted or in 
brine; flours, meals and pellets of crustaceans, fit for human consumption 
 Frozen 
 Not frozen 
 Shrimps of the genus Crangon 
 Fresh, chilled or cooked by steaming or by boiling in water 
 Other 
 Crabs 
 Other 
0307 Molluscs, whether in shell or not, live, fresh, chilled, frozen, dried, 
salted or in brine; aquatic invert ebrates other than crustaceans and 
molluscs, live, fresh, chilled, frozen, dried, salted or in brine; flours, meals and pellets of aquatic invertebrates other than crustaceans, fit for human consumption 
0401 Milk and cream, not concentrated nor containing added sugar or other 
sweetening material 
0402 Milk and cream, concentrated nor containing added sugar or other 
sweetening material 
0403 Buttermilk, curdled milk and cream, yogurt, kephir and other 
fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sw eetening matter or flavoured or 
containing added fruit, nuts or cocoa 
0404 Whey, whether or not concentrated or containing added sugar or other 
sweetening matter; products consisti ng of natural milk constituents, 
whether or not containing added suga r or other sweetening matter, not 
elsewhere specified or included 
0405 Butter and other fats and oils derived from milk; dairy spreads 
0406 Cheese and curd 
0407 Birds’ eggs, in shell, fresh, preserved or cooked 
0408 Birds’ eggs, not in shell and egg yolks, fresh, dried, cooked by 
steaming or by boiling in water, moulded, frozen or otherwise 
preserved, whether or not containi ng added sugar or other sweetening 
matter 
0408.11-0408.99.90 Other 
0409 Natural honey 
0410 Edible products of animal origin , not elsewhere specified or included 
0504 Guts, bladders and stomachs of animals (other than fish), whole and 
pieces thereof 
1501.00 Lard; other pig fat and poultry fat, excluding those of headings 
No.0209 or No.1503 
1501.00.90 Poultry fat 
1501.00.91 Bovine animals fat 
1501.00.99 Sheep and goats fat 
1503 Lard stearin and oleostearin WT/ACC/SPEC/LTU/8/Rev.4 
Page 94  
 
 HS code Description 
1504 Fats and oils and their fractions, of fish or marine mammals, whether 
or not refined, but not chemically modified 
1506 Other animal fats and oils and thei r fractions, whether or not refined, 
but not chemically modified 
1516 Animal or vegetable fats and oils and their fractions, partly or wholly 
hydrogenated, inter-esterified, re-esterified or elaidinised, whether or 
not refined, but not further prepared 
1516.10 Animal fats and oils and their fractions 
1601 Sausages and similar products, of meat, meat offal or blood; food 
preparations based on these products 
1602 Other prepared or preserved meat, meat offal or blood 
1603.00 Extracts and juices of meat, fish or crustaceans, molluscs or other 
aquatic invertebrates 
1604 Prepared and juices of meats, fish  or crustaceans, molluscs or other 
aquatic invertebrates 
1605 Crustaceans, molluscs and other a quatic invertebrates, prepared or 
preserved 
* H - State control agencies to the Ministry  of Health Care (Nutrition Centre, etc.) 
 V - State Veterinary Service  P - State Plant Protection Service  
  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 95 
 
 
 Table 11: 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 embrions 
 
] WT/ACC/SPEC/LTU/8/Rev.4 
Page 96  
 
 [Table 12:  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; 
- Membership in the Berne 
Convention since 1994; 
- Membership in the Rome 
Convention since 1998 
- 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 11 
February 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 1999);  
- - amendment to procedures 
followed by the State Patent Bureau to certify a mark as well-known (in the course of 
1999); 
Part II, Section 3. 
Geographical 
Indications - new Law on Competition of 
11 February 1999; - see previous section; 
 
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 1999);  
  WT/ACC/SPEC/LTU/8/Rev.4 
 Page 97 
 
 
 TRIPS Agreement Laws and other legal acts addressing 
the subject matter Draft legislation to address subject-
matter 
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 1999 (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 
11 February 1999;  
Part II, Section 8. 
Control of Anti-competitive Practices in 
Contractual 
Licences - partially new Law on Competition 
of 11 February 1999; 
- Order of the Competition Council 
on Enforcement of Agreements 
(concerted activities) Prohibited 
by the Law on Competition because they Restrict or Hinder Competition between Economic Subjects of 11 November 1993; 
- - Order of the Competition 
Council on Enforcement and Explanation of Abuse of Dominant Position Prohibited by the Law on Competition of 7 April 1994;  WT/ACC/SPEC/LTU/8/Rev.4 
Page 98  
 
 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 
11 February 1999; 
- Law on Trademarks and Service 
Marks of 3 June 1993; 
- Law on Amendments and 
Supplement to the Code of 
Administrative Infringements (improvements);  
Part III, Section 3. 
Provisional Measures - 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 1999); 
Part III, Section 5. Criminal 
Procedures - Criminal Code of Lithuania 
(Articles 35, 142 and 308); 
- Code of Criminal Process of 
Lithuania (Articles 37 and 143); - draft law on amendment and 
supplement to the Criminal Code 
(improvements) ( in the course of 
1999); 
- - draft law on amendment and 
supplement to the Code of Criminal Process (in the course of 1999); 
] 
__________