RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/SPEC/LTU/8/ Rev.21
9 January 1998
(98-0055)
Working Party on the
Accession of Lithuania
DRAFT REPORT OF THE WORKING PARTY ON
THE ACCESSION OF LITHUANIA
TO THE WORLD TRADE ORGANIZATION
Revision
Introduction
1. The Government of Lithuania applied for accession to the General Agreement on Tariffs and
Trade (GATT 1947) in January 1994.  At its meeting on 22-23 February 1994, the GATT 1947
Council of Representatives established a Working Party to examine the application of the Governmentof Lithuania to accede to the General Agreement under Article XXXIII of the General Agreement.Following the conclusion of the Uruguay Round, Lithuania requested accession to the World TradeOrganization (WTO) under Article XII of the Marrakesh Agreement Establishing the World TradeOrganization.  In accordance with the Decision adopted by the WTO General Council on31 January 1995, the existing GATT 1947 Accession Working Party was transformed into a WTOAccession Working Party.  The terms of reference and the membership of the Working Party arereproduced in document WT/ACC/LTU/1/Rev.4.
2. The Working Party met on 10 November 1995; 25-26 March and 7 October 1996;
26 March 1997 and ... under the Chairman ship of Mr. Peter Witt (Germany).
Documentation Provided
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the
Foreign Trade Regime of Lithuania (L/7551), the questions submitted by Members on the foreign
trade regime of Lithuania together with the replies thereto and other information provided by theLithuanian authorities (WT/ACC/LTU/2 and A ddendum 1;  WT/ACC/LTU/4;  WT/ACC/LTU/5;
                                                     
1In order to facilitate the identification of changes to the earlier version of the Report additions to the text are
shaded and deletions are struck out.WT/ACC/SPEC/LTU/8/Rev.2
Page 2
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 and ...), including the legislative texts and
other documentation listed in Annex I.
Introductory Statements
4. In his introductory statement, the representative of Lithuania noted that his country was small
and heavily dependent on foreign trade.  Since restoration of independence in 1990, the centrallyplanned system in force had been effectively replaced by a market-oriented economy.  Lithuania hadestablished a new banking system and its own currency and was proceeding on fundamental economicreforms, including the enactment of new legislative measures, privatization, deregulation of prices andtrade, in close cooperation with international institutions.  However, economic transformation couldonly be successful if supported by integration into the world economy and the international tradingsystem based on the principles of the WTO.
5. Lithuania's foreign trade patterns had also changed significantly since 1990.  The share of
trade with countries in the Commonwealth of Independent States had declined substantially whiletrade flows with other countries had increased.  Lithuania's overall balance of payments was insurplus despite a trade deficit.  Lithuania had resisted protectionism in a period of difficult economictransition.  The foreign trade regime would be liberalized further.  Several trade agreements had beensigned, reducing barriers to trade, and other agreements were under negotiation.  Accession to theWTO was a matter of highest priority as Lithuania sought integration into the world economy on thebasis of internationally recognized rules, providing a stable and predictable environment and a preciselegal framework for trade among nations.  Lithuania's accession would also have positiverepercussions for its trading partners.
6. In their opening remarks, members of the Working Party welcomed the request from
Lithuania to accede to the WTO.  Lithuania's integration into the world economy and trade on thebasis of multilaterally agreed principles and rules was seen as an important element underpinningeconomic and institutional reforms in Lithuania.
7. The Working Party reviewed the economic policies and foreign trade regime of Lithuania and
the possible terms of a draft Protocol of Accession to the WTO.  The views expressed by members ofthe Working Party on the various aspects of Lithuania's foreign trade regime [, and on the terms andconditions of Lithuania's accession to the WTO] are summarized below in paragraphs 8 to [169].WT/ACC/SPEC/LTU/8/Rev.2
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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 Memorandum of State Economic Policy of the Republic ofLithuania, a copy of which had been provided to the Working Party.  More specifically, he explainedthat the tax system consisted of corporate profit tax;  personal income tax;  value added tax;  excises;taxes on natural resources, oil and gas;  pollution tax;  customs duties;  a tax on fixed property;  roadtax;  land taxes;  stamp tax on activity (for example, for obtaining licences);  and other taxes(inheritance tax, consular fees, etc.).  The tax on pollution was meant to encourage investment inclean (environmentally-friendly) technologies.  The tax was levied on legal and natural personspolluting the environment.  The tax was specific and its level was established based on the quantity,degree of harm and type of pollution.  Since July 1995 (Government Resolution No. 1026), thecorporate profit tax was reduced for certain sectors, notably those related to production of medicinesand medical services, agricultural machinery, wa ste processing and disposal, new forms of energy,
transportation, construction and telecommunications.  Taxes on fixed property and the road tax wereintroduced in 1995.  The road tax was levied on enterprise revenue (0-1 per cent) except for bankswhich paid a percentage of the margin earned.
Foreign Exchange and Payments
9. The representative of Lithuania informed the Working Party that his country had recorded
deficits in its merchandise trade equal to US$324 million in 1994, US$943 million in 1995 andUS$1,124 million in 1996.  The national currency - the Litas - was pegged to the US Dollar(Llt. 4=US$1) in agreement with the IMF;  no plans existed to abandon the fixed exchange ratepolicy.  He further stated that full Litas convertibility as well as current account convertibility wasintroduced on 3 May 1994 following the Government of Lithuania's acceptance of Article VIII of theArticles of Agreement of the IMF.
Investment Regime
10. The representative of Lithuania said that foreign and domestic investment was as a rule in
principle  treated equally, except that foreign investment was prohibited in areas related to national
security and defence, narcotic and poisonous substances, and the organizing of lotteries in accordancewith the Law on Foreign Capital Investments in the Republic of Lithuania.  
Further, in June 1996,
Parliament (the Seimas) had approved an amendment to the Constitution allowing foreigners toWT/ACC/SPEC/LTU/8/Rev.2
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purchase certain types of land (non-agricultural plots required for the construction and operation of
buildings and facilities necessary for their direct activity).
11. The Law on Foreign Capital Investments stipulated that taxation of foreign enterprises be no
less favourable than the rules applied to domestic natural and legal persons.  Lithuania offered certain
tax holidays.  Enterprises established between 1 August 1995 and 1 April 1997, with foreigninvestment of minimum US$2 million were exempt from profit (income) tax for the first three yearsand subject to a 50 per cent tax reduction for the following three years, starting from the day the firstprofit was achieved.  Domestic and foreign small enterprises (number of employees not exceeding 50and annual sales of no more than 500,000 Litas) received tax reductions amounting to 70 per cent forthe first two years after their establishment and 50 per cent for each year thereafter.  
Producers
Companies involved in the sale  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 theenterprise.  As from 1 April 1997, Lithuania exempted all profit of domestic or foreign enterprisesspent on capital investments from profit (income) tax.  Foreign investors had the right, having paid thetaxes, to transfer the profit, income or dividends be longing to them by virtue of ownership to a foreign
country without any restrictions.  If an enterprise was under liquidation by its founders, the assets or aportion thereof corresponding to the amount of foreign investment which, on the decision of theshareholders, were due to foreign investors, could be taken out of the country 
tax free (covering
physical and financial assets) upon payment of corporate taxes due to the State and settlement of
accounts with creditors and employees free of customs duties .  Eligibility for these benefits was not
contingent upon export performance or use of domestic inputs in the production process.
State Ownership and Privatization
12. The representative of Lithuania explained that privatization had initially been implemented
through investment vouchers which could be used to purchase State property, residential housing,agricultural enterprises and repurchasing of land.  Most of this privatization, which allowed bids byemployees and management, had proceeded without foreign participation.  Marking the second stageof the privatization process, a Law on Privatization of State-Owned and Municipal Property hadentered into force in September 1995, providing for privatization through public subscription ofshares;  public auction;  public tender;  sale through direct negotiation;  joint-ventures with Stateproperty;  capital lease;  and the creation of a State Privatization Agency.  The State had retainedstakes in some farms or enterprises (30-90 per cent) until they were fully privatized in connectionwith their transformation in to joint-stock companies during the first stage of privatization.  Assets soldWT/ACC/SPEC/LTU/8/Rev.2
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by public auction were privatized in their entirety and the State generally did not retain ownership in
privatized enterprises.  The 1995 Law stipulated that foreign and domestic investors would participatein the privatization process on an equal basis, both  in the form of direct and portfolio investments.
Pursuant to the 1995 Law, the Government had established a list of enterprises and residential
holdings  in agro-processing, agro-services and industrial sectors to be subject to tendering.  The list
established in 1997 comprised 836 enterprises, including enterprises part-privatized at the first stageof privatization, and other sectors and large-scale enterprises previously excluded from privatizationsuch as energy, communications and transport services.
13. Privatization in agriculture, including the restoration of land to former owners, had proceeded
despite certain legal problems (only the State and natural persons could own land), uneconomic
partitioning of land and other main assets, and lack of capital for family farming.  The general policyin this area was to offer preferential bidding terms to agricultural producers.  Farmers had beenoffered favourable terms in the privatization of some processing industries (meat, grain, dairies andsugar factories).  In most food processing sectors 80 per cent or more of the assets had already beenprivatized.  Regarding the privatization in the sugar sector, Lithuania had four sugar refineries, all ofwhich had been transformed into joint-stock companies with more than 90 per cent of the shares heldby private investors.  The remaining State-owned shares would be privatized gradually in a processopen to local and foreign investors.
14. As a result of these various privatization efforts, by 
1 December 1997 1 January 1997
Lithuania had wholly privatized 99.7 per cent of State-owned farms (not including agricultural
processing enterprises).  As of the same date, Lithuania had made significant progress in theprivatization of 287 agro-processing (meat, milk, grain, crop selection, etc.) and agro-serviceenterprises that were identified for privatiz ation and expected to complete the process 
by 2000 in
1997 .)  These 287 enterprises represented the entire share of all State-owned assets in agro-
processing.  The State had excluded from the privatization process its stakes in (i) 19 experimentalfarms at research institutions of agricultural science studies;   (ii) 54 teaching farms at agricultureschools;  and (iii) eight farms of pure-strain enterprises.
15. Significant progress had also been made in privatizing industry.  As of 
1 December 1997
1 January 1997 , the Government estimated that approximately 88 per cent of the industrial (goods)
enterprises and 97 per cent of the services enterprises identified for privatization, had been privatized.The privatization process had been given new impetus by the decision to allow privatization inindustrial and non-agricultural service sectors to take place on a cash (rather than voucher) basis,allowing the participation of foreigners.  As part of the plan to privatize on a cash basis the StateWT/ACC/SPEC/LTU/8/Rev.2
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intended to sell shares in joint-stock companies, retained during the first stage of privatization, to
qualified bidders.
16. A Law of 28 December 1994 provided a list of State enterprises not to be privatized until the
year 2000.  The original list comprised 234 entities in areas such as recreation, transportation,pharmacies and postal services;  the list had been reduced to 110 enterprises under an amendment tothis Law on 3 April 1997.  The Government had adopted a decision to discontinue this list on4 June 1997;  the decision was currently being considered by Parliament.
17. Some members requested Lithuania to provide a table or chart indicating the status of
privatization, by size and/or type of firm, addressing all enterprises still wholly or partly owned by theState, information on how many State-owned firms existed prior to privatization, how many had been
fully privatized,  a list of enterprises and sectors stil l wholly or partly owned by the State, the portion
of equity still owned by the State, the portion of  output and trade represented by private firms, how
many firms had been prepared for privatization and for which privatization was pending, and howmany were not at this time contemplated as part of the privatization programme.  Lithuania shouldalso define the conditions whereby it would consider its privatization programme completed and whenit expected to accomplish this.  The representative of Lithuania submitted information on theprivatization process in Lithuania (1991 - 31 July  1997), circulated in document WT/ACC/LTU/17 of
26 September 1997.  Of the approximately 8,000 enterprises owned by the State prior to privatization,nearly 6,000 small- and medium-sized enterprises, representing around one-quarter of the total capital,had been privatized by mid-1997.  
Detailed information on privatization of State and municipal assets
and agricultural enterprises is presented in Table 1.
[See Table 1 in the Annex.]
18. [ The representative of Lithuania said that Lithuania agreed to continue to provide information
every 18 months on an annual basis  on developments in its programme of privatization after accession
along the lines of that provided to the Working Party during the accession process [[, and on other
issues related to its economic reforms as relevant to its obligations under the WTO].  [The
representative of Lithuania confirmed the readiness of Lithuania to ensure the transparency of its
ongoing privatization programme under the regular trade policy reviews in the WTO and to provide
further information on request in accordance with the notification and consultation provisions of
WTO.   The Working Party took note of this [assurance] [commitment].WT/ACC/SPEC/LTU/8/Rev.2
Page 7
Pricing Policies
19. Some members of the Working Party noted that certain goods and services remained subject
to price controls and requested details and plans regarding further deregulation of prices.  Lithuaniawas asked to list the products subject to price controls and to provide information on the legal basisfor these controls, the reasons for these controls and the conditions under which such or extendedcontrols might be applied in the future.
20. The representative of Lithuania replied that price controls had been relaxed gradually in
Lithuania.  Controls on mark-ups on foodstuffs had ceased as of 1 April 1995, thus profit marginswere no longer limited at the processor or retail level.  He provided an updated list of goods andservices subject to price control, reproduced in Table 2.  He did not believe that the number of goodsand services subject to price controls would increase in the future.  He also noted that his Governmenthad abolished price controls on State-owned precious metals in December 1996 and planned to
remove price controls on  cement, lime, limestone and mineral fertilizers in October 1997 by the end
of 1997 . Further price liberalization in transportation and telecommunications would be linked to
increasing competition resulting from economic restructuring and privatization.  He confirmed thatLithuanian industries did not receive electricity and gas at subsidized prices, but price controls wouldremain on residential use of electricity, natural gas and heating to support low-income households.Private health service providers could not exceed the prices set for State-supplied services by morethan 60 per cent.  This measure was applied in an environment of insufficient competition to alleviate
the financial burden on the State Social Insurance 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 agriculturalreform.  He further stated that price control on State-owned land would be abolished after therestoration of private land ownership in the course of the implementation of agricultural reform.Wood and wood products from State-owned land were  subject to minimum, not maximum, prices.
He confirmed that ;  however , the Government would revise those price controls.  He confirmed that
prices of goods and services in every sector, with the exceptions listed in Table 2, were determinedfreely by market forces.  The list of goods and services subject to price controls set by the State andany changes to this list would be published in the Official Gazette, and price controls set bymunicipalities would be published in the local mass media.
21.         [
The representative of Lithuania confirmed that in the application of price controls on
products and services, from the date of accession and any that are introduced or re-introduced in the
future, Lithuania will would  apply such measures in a WTO consistent fashion, and take account ofWT/ACC/SPEC/LTU/8/Rev.2
Page 8
the interests of exporting WTO Members exporting goods  as provided for in Article III.9 of the
GATT 1994.  Lithuania also will publish the list of goods and services subject to State price controls
in the Official Gazette including any changes from the list in Table 2.  The Working Party took noteof this commitment.]
Competition Policy
22. The representative of Lithuania noted that the Law on Competition had entered into force on1 November 1992 and was enforced through the St ate Competition and Consumer Protection Office.
The Competition Council (the decision-making body of the Office) had approved four by-lawsconcerning the abuse of dominant position, agreements and concerted activities restrictingcompetition, control of mergers, and prohibition of unfair activities.  The Law on Competition wasapplied to all enterprises irrespective of ownershi p or the kind of economic activity.  Some provisions
of the Law on Competition were not applied in excluded sectors which were covered under separatelegislation.  Thus, certain exemptions were allowed for the supply of energy, postal services, railways,[sugar - the new Law on Sugar (in preparation) would not contain this exemption],telecommunications and airline services.
23. The State Competition and Consumer Protection Office had investigated 
46 39  cases of abuse
of dominant position between 1992 and 1997 1996 .  Dominant enterprises were those controlling
40 per cent or more of the relevant domestic market;  the Office had included enterprises with marketshares exceeding 60 per cent in a list of dominant suppliers.  In January 1996, the CompetitionCouncil listed six enterprises holding from 60 to 90 per cent of their respective markets and havingabused their dominant positions by charging unreasonably high prices during 1994-1995.  The sixenterprises were obliged to notify price changes in advance to the State Competition and Consumer
Protection Office.  The list of dominant enterprises had been discontinued.  Future abuse of dominantposition would be investigated on a case-by-case basis.
FRAMEWORK FOR MAKING AND ENFORCING POLICIES
24. The representative of Lithuania said that sovereign State power in Lithuania was exercised by
the President, the Seimas, the Government and the judiciary.  The Seimas was a one-chamberParliament with 141 members.  The Seimas considered and enacted amendments to the Constitution,enacted laws, considered the programme of the Government, approved the State budget, establishedState taxes and other obligatory payments, ratified international treaties, and considered otherdomestic and foreign policy issues.  The President of the Republic was the Head of State.  TheWT/ACC/SPEC/LTU/8/Rev.2
Page 9
President represented the State of Lithuania and performed the duties laid down by the Constitution
and the laws.  The Government was the highest authority of executive power.  The Government wasled by the Prime Minister and currently consisted of  17 Ministries.  The judicial system in Lithuania
comprised the Constitutional Court, the Supreme C ourt, the Appeals Court,  the County Court and
District (city) Courts.  A special Commercial Court existed for the settlement of business disputes.
25. The representative of Lithuania said that, from the date of accession
,  it would be possible to
refer all measures affecting international trade to an independent judicial body (GATT Article X:3(b);
GATS Article VI:2) all administrative action  affecting international trade could be appealed to an
independent judicial body  (GATT Article X.3(b)) .  The Working Party took note of this commitment.
26. The representative of Lithuania added that local governments acted freely and independently
within the limits of their competence, establis hed by the Constitution and laws.  Local Councils
maintained the right, within established limits and in accordance with procedures laid down by law, tolevy taxes on excavation sites, traffic access, parking, street vendors, visual commercialadvertisements, etc.   However, municipalities were not entitled to tax items subject to taxation at thenational level.  Local authorities thus could not apply duties on imported goods.
27. [The representative of Lithuania stated that, from the date of accession, Lithuania would
ensure observance of the provisions of WTO by its local authorities, including Article XXIV:12 of the
GATT 1994 and Article I:3(a) of GATS.  The Working Party took note of this commitment.
]
[The representative of Lithuania confirmed that s ub-central administrative authorities, e.g. local
administrative bodies, had no jurisdiction or authority to establish regulations or taxes on goods and
services in Lithuania independent of the central authorities, and that application of these measures was
exclusively the responsibility of the executive and legislative branches of the central Government.
Central authorities would eliminate or nullify measures taken by sub-central authorities in Lithuania
that conflict with WTO provisions from the date of accession.  The Working Party took note of this
commitment.]
POLICIES AFFECTING TRADE IN GOODSTrading Rights
28. [Some members of the Working Party noted that certain business activities were subject to
licensing in Lithuania and requested a list of the trade activities concerned in order to assess whetherlicences were granted automatically on a non-discriminatory basis or whether there were instancesWT/ACC/SPEC/LTU/8/Rev.2
Page 10
where the State limited or rationed the right to trade in certain business activities.  The latter practice
would engage a number of WTO issues, notably re garding trade monopoly and State-trading, which
Lithuania was requested to address. ]
[Some members of the Working Party noted that laws and regulations relating to the right to trade in
goods (also sometimes referred to as "registration requirements" or "activity licensing") should not
restrict imports of goods in violation of the general prohibition on quantitative restrictions 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 levied on the right to
import should be limited to the approximate cost of services rendered (Article VIII:1(a)) and taxes and
charges on the right to trade in imported goods should not lead to discrimination in favour of like
domestic products (Article III:2).  They noted that issues relating to the rights of foreign individuals
and enterprises to trade were also dealt with in the draft schedule of Specific Commitments on
Services.
In order to establish whether these GATT provisions were observed, some members requested
Lithuania to supply information on (i) the condit ions attached to the right to import individual
products or groups of products, including all fees and charges levied on these rights;  and (ii) the
conditions attached to the right to engage in the internal sale, offering for sale, purchase,
transportation, distribution or use of individual products or groups of products, including all taxes and
charges on these activities, in particular when these distinguished between imported products and
products of national origin.  Lithuania was also asked to provide information on how it would bring
its policies into line with GATT requirements whenever this was necessary and, in particular, how it
would modify the stamp taxes in Table 4 to conform to relevant GATT rules.]
29. The representative of Lithuania replied that certain activities were subject to licensing in
accordance with the Law on Amendments and Supplements of the Law on Enterprises of
25 September 1997 5 July 1995 .  Tables 3.1 and 3.2 "Licensing of business activities" listed business
activities (goods and services respectively) subject to licensing in Lithuania.  He confirmed thatLithuania maintained the same criteria and procedures for reviewing applications for licences toengage in trade or production of goods, whether the applicants intended to deal in domestic orimported goods, or a combination thereof, except as noted in paragraph [31] below.  
The number of
economic activities requiring licence had been significantly reduced, from 60 to 27, under a new
amendment of the Law on Enterprises, and he expected further reductions in the number of licensed
activities in the future.  Licensing of commercial activity, including importation, was currently
applied to products containing alcohol; tobacco and tobacco products;  oil products;  narcotics and
poisonous substances;  chemical materials harmful to the environment;  and biological materials forWT/ACC/SPEC/LTU/8/Rev.2
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plant protection.  Regarding special foodstuffs and food additives, the licensing was not used and
Parliament was considering a proposal from the Government to eliminate the licensing of such
activity from the Law, as the products concerned were already subject to sanitary and phytosanitary
certification.  Trade in oil products (petrol, diesel gas, fuel oil and lubricants) was licensed to enforce
uniform conditions for all companies involved in importation  and ammunition, weapons and
pyrotechnics.  Two activities - production of products with ethyl alcoholic strength exceeding
22 per cent ;  and  the printing of money, postage stamps and coins  - could only be undertaken by
enterprises owned by the State or municipalities, or special enterprises.
30. [A member was concerned that importation licences such as those to import alcohol and
petroleum were granted only with a tax which did not apply to domestic producers or distributors, and
Article III would seem to prohibit this form of discrimination.    In addition, 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.]
30.  31.   The representative of Lithuania said that the Government levied a stamp tax on a
number of services provided by its institutions, including for the issuance of activity licences.  Taxrates had been established in accordance with Resolution No. 1123 of 11 November 1994, and wereindexed to the rate of inflation.  The tax was related or limited to the approximate cost of the servicesrendered and differed according to the nature of the licensed activity, 
bearing in mind that activity
licences to import alcoholic beverages and petroleum products would also cover wholesale of the
products, and that importation/wholesale licences also included a larger number of products than
wholesale licences for domestically-produced goods only.  Stamp taxes for activity licensing relatedto importation included an important fiscal element, and were also important to encourage responsibleimporters who would be prepared to follow customs and tax procedures, and pay the required tariffsand taxes.  The annual stamp taxes for activity licences on alcohol and alcoholic beverages, tobaccoand petroleum products are listed in Table 4.  
The Government intended to review the stamp tax
system to see whether it could be changed to reflect any improvements in the market situation.
31.  32.   The representative of Lithuania added that activity licences and licences for
importation and transit were granted automatically and on a non-discriminatory basis,  except in thefollowing cases:
(i) no activity licences were granted to foreigners for the organizing of lotteries and activities
related to narcotic or poisonous substances;WT/ACC/SPEC/LTU/8/Rev.2
Page 12
(ii) applications for licences to import or tran sit could be rejected or subject to limitations
regarding activities related to strategic goods - production and importation was strictly
controlled for reasons of national security (according to COCOM requirements - see
paragraph [55] for further details) or environmental protection;
(iii) the right to manufacture products of ethyl alcoholic strength exceeding 22 per cent (by
volume) was reserved for State enterprises;  and
(iv) the right to print money, postage stamps and mintage was reserved for State enterprises.
(ii) applications could be rejected or subject to lim itations regarding activities related to strategic
goods - production and importation was strictly controlled for reasons of national security or
environmental protection (according to COCOM requirements - see paragraph [5 5] for further
details);  and
(iii) activity licences relating to radioactive and nuclear material and wastes were reserved for
State enterprises and special enterprises in which the State held all or the majority of the
shares.
32. A member was concerned that importation licences such as those to import alcohol and
petroleum were granted only with a tax which did not apply to domestic producers or distributors, and
Article III would seem to prohibit this form of disc rimination.  The size of some of the fees were not
associated with the cost of the services rendered;  they rather served as revenue raisers and barriers to
entry, thus WTO rules on national treatment applied in full.  The deep concerns about the WTO-
inconsistency of the present system were confirmed by the information provided in Table 4 ;  taxes  on
the right to import were vastly more expensive than those on the right to produce similar domestic
products (alcohol beverages and tobacco), and the licensing fees on trade in oil products were
possibly a disguised tax on the importa tion of refined petroleum products.
33. [The representative of Lithuania confirmed that the former State monopoly in foreign trade
had been abolished and that no restrictions existed on the right of foreign and domestic individualsand enterprises registered in Lithuania to import and export goods and services within Lithuania'scustoms territory, except as provided in paragraph 
31 32 .  He confirmed that individuals and firms
were not restricted in their ability to import and export based on their registered scope of business,and the criteria for registration were generally applicable and published in the Official Gazette.  [
The
Working Party took note of these commitments.]WT/ACC/SPEC/LTU/8/Rev.2
Page 13
[The representative of Lithuania confirmed that Lithuania would ensure that its laws and regulations
relating to the right to trade in goods [and all fees, charges or taxes levied on such rights] were in full
conformity with its WTO obligations, including Articles VIII[ :1(a)], XI:1, and [XIII][III:2 and 4] of
the GATT 1994 and that it would also implement such laws and regulations in full conformity with
these obligations.  The Working Party took  note  of this commitment.]
Market Access Negotiations
34. Lithuania engaged in market access negotiations on goods with interested Members.
Lithuania's Schedule of Concessions and Commitments on Goods is annexed to the Protocol ofAccession of Lithuania which is reproduced in the Appendix to this Report.
A. Import Regulation
Customs Code
35. The representative of Lithuania said that the Seimas approved a new Customs Code on
18 April 1996, replacing the Law on Customs of 29 Ap ril 1993 and certain provisions of the Law on
Customs Tariff and other legislation.  The Customs Code was based on the provisions of theCommunity Customs Code (Council Regulation 92/ 2913/EEC and its amendments), defining the
responsibilities of government institutions involved in the administration of customs and providingthe framework for importation, exportation and goods in transit.  He added that the new CustomsCode included WTO-consistent provisions on the a pplication of customs tariffs, customs valuation,
rules of origin, duty drawback, free trade zones, etc.  The new Customs Code was due to enter intoforce on 1 January 1998.
36. A member asked Lithuania to describe the relevant provisions of the Customs Code, with
particular reference to the areas addressing WTO obligations, and explain why the Code would notcome into force until 1998.  This member sought full implementation of this legislation no later thanthe date of Lithuania's accession to the WTO.
37. The representative of Lithuania said that before the new Customs Code entered into force a
number of laws which were not in full conformity w ith the provisions of the Code would need to be
amended by Parliament, and implementing regulations for the Code would need to be prepared andadopted by the Government.  His Government had begun this process in July 1996, and had decidedthat the implementing provisions of the Code would be based on the Implementing Provisions of theCommunity Customs Code (Commission Regu lation 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.2
Page 14
38. The representative of Lithuania confirmed that Lithuania's customs regulations would be fully
consistent with WTO provisions from the date of accession and that Lithuania's implementingregulations and other legal requirements for implementation would be in place by that date.  TheWorking Party took note of this commitment.
Ordinary Customs Duties
39. The representative of Lithuania confirmed that the Convention on the Harmonized System
entered into force in Lithuania on 1 January 1995.  The structure of customs tariffs was regulated bythe Government; rates could be changed by Government decision based on proposals by Ministries,taking account of Lithuania's international obligations and commitments.  Tariffs had accordinglybeen reduced on major food products (milk and dairy products, butter, eggs, sausages and sugar) inSeptember 1995.  The applied customs tariff was provided to the Working Party [the most recentversion, established by Government Resolution No. 268 of 24 March 1997,  is reproduced inAnnex II, Table 1 of document WT/ACC/LTU/15].  Goods were subject to the autonomous rate of
duty, except for imports originating in countries en joying most-favoured-nation status in Lithuania
[listed in Annex II, Table 3 of document WT/ACC /LTU/15] which were subject to conventional
import duties, and goods imported under free trade agreements [the countries involved are listed inAnnex II, Table 4 of the same document].  A new draft Law on Customs Tariffs stipulated that rates
of customs duties would be determined by Parliament.
40. Applied tariff rates were ad valorem  except for specific (mixed) duties on alcohol, tobacco
and raw sugar.  Specific duties on meat and dairy products were eliminated in February 1995.
Other Duties and Charges41.
[It was noted that Lithuania had bound all duties and charges levied on imports but not on
domestic production other than ordinary customs duties at zero for all products in the goods scheduleannexed to its Protocol of Accession (annexed) (Article II:1(b) of the GATT 1994)
.]
[The representative of Lithuania confirmed that Lithuania does not apply duties and charges on
imports other than ordinary customs duties.  Any such charges applied to imports after accession
would be in accordance with WTO provisions. He further confirmed that Lithuania would not list any
other charges in its goods schedule under Article II :1(b) of the GATT 1994, binding such charges at
"zero".  Lithuania would ensure that any fees and charges for services rendered introduced in the
future would only be applied in conformity with the relevant obligations of GATT 1994.  The
Working Party took note of this commitment.]WT/ACC/SPEC/LTU/8/Rev.2
Page 15
Tariff Rate Quotas, Tariff Exemptions
42. Some members noted that Lithuania used tariff quotas to provide for temporary import relief
for goods in short supply.  Lithuania was asked to specify the goods subject to tariff quotas and toexplain 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 ofthe system after Lithuania's accession to the WTO.
43. The representative of Lithuania replied that tariff quotas were opened under Government
Resolution No. 653 (8 May 1995), implementing the Law on State Regulation of Economic Relationsin Agriculture (22 December 1994).  The list of products currently subject to general tariff quotas dueto short supply is reproduced in Table 5.  He confirmed that imports from all countries were affordedthe same access under the general tariff-rate quotas.
44.
The general tariff quotas allowed importation  at  zero (or reduced) tariffs for a very limited
number of agricultural commodities and a few industrial products.  The application of tariff quotas
was intended to be temporary ;  they  were granted only when domestic production of a certain
commodity or products, combined with imports at the MFN tariff rate, would be insufficient to 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 Official Gazette.  Some of the tariff quotas
for agricultural products were allocated through public tenders announced in the Official Gazette.
Enterprises requesting quotas or participation in tenders submitted application forms to the
responsible Ministry.  Domestic sugar processors were required to exhaust the supply of domestic rawsugar before being allowed to import raw or white (refined) sugar at zero duty under tariff quotas.Domestic sugar producers could import unlimited quantities of raw or white sugar at the MFN over-quota duty rate any time.  Concerning the allocation of the tariff-rate quotas for raw sugar, theGovernment (Ministry of Agriculture and Forestry) would select one or more suppliers based onquality and price which subsequently concluded contracts with domestic processors having filled theirpurchasing quotas for domestic sugar beets.  Lithuania currently had four domestic processors whichall met their local purchase quotas, and zero-duty imported raw sugar was allocated equally, i.e. in25 per cent shares, among them.  Entitlements to tariff quotas for irregular transparent glass bottleswas automatic upon presentation of the application and the sales contract.  Special ships furniture wasimported by a State shipyard;  domestic production of furniture was increasing and the tariff quotawas expected to be abolished in 1997.WT/ACC/SPEC/LTU/8/Rev.2
Page 16
45.         [ A member requested a commitment paragraph addressing the disposal, prior to accession, of
Lithuania's requirement to use domestic sugar prior to allowing imports.]  In reply, the representative
of Lithuania said that the State would guarantee appropriate conditions for the cultivation and
processing of domestic sugar beet by the regime to be established in accordance with the new Law on
Sugar (under consideration).  Special prices would be established annually for sugar produced under
quotas, purchased sugar beet, and sugar sold from factories.
Fees and Charges for Services Rendered
46. The representative of Lithuania said that, in accordance with the Law on Stamp Tax of
23 June 1994 and rates established through Resolutions No. 1123 of 11 November 1994 and No. 640of 23 June 1997, stamp taxes were levied for the issuance of official documents (such as licences) aswell as for the provision of certain services by government institutions, including customs clearanceoperations.  Stamp taxes were collected by the institutions responsible for issuing the appropriatedocuments.  The State Tax Inspectorate of the Ministry of Finance controlled how these institutionscollected the Stamp Taxes.  He stated that the Stamp Tax was set at different rates depending on thenature of the product and the type of service provided.  Customs services fees amounted to 20 to30 Litas for the registration of goods and 25 Litas for the issuance of documents, including certificatesof origin.  The stamp taxes applicable for the processing of imports by customs and for other purposesrelated to trade are enumerated in Table 6.  He stated that these fees and charges were related orlimited to the approximate cost of the services rendered, although some Stamp taxes for activity
licensing related to importation included an important fiscal element, and were also important to
encourage responsible importers who would be prepared to follow customs and tax procedures, and
pay the required tariffs and taxes.   Additional customs fees were assessed for supplementary services
such as customs formalities performed outside the Customs office or outside its normal businesshours, for the supply of non-confidential information from the database of the Customs Department,etc.  
At the request of a member seeking clarification whether taxes on trade activities were collected
by Lithuania's consulates abroad, in particular whether formalization of export or import documents
was required at consulates prior to shipment, he also provided information on consular fees,
underlining that these fees were not related to importation, exportation or transit issues.
47. The representative of Lithuania said that from the date of accession any application of fees
and charges by Lithuania for services rendered on or in connection with importation [or exportation]
would be in accordance with the relevant provisions of the WTO Agreements, in particularArticles VIII and X of GATT 1994.  The Working Party took note of this commitment.WT/ACC/SPEC/LTU/8/Rev.2
Page 17
Application of Internal Taxes to Imports
48. Some members of the Working Party asked Lithuania to enumerate the products subject to
excise taxes, comment on the use of specific rates and confirm whether imported and domestic
products were treated equally.  A member noted "small" breweries were exempted from excise taxand that imported cigarettes attracted the highest excise tax rate, while taxes on domestically-produced cigarettes were differentiated according to  quality.  Lithuania was asked to explain how this
treatment could be consistent with Article III of the GATT 1994.  Specific questions concerning thetaxation of cigarettes also referred to the link between excise taxes and customs duties.
49. The representative of Lithuania provided the information on product-specific excise taxes
[reproduced in Table 7].  Rates were ad valorem  , in some cases specific minima had been established
(in Litas per unit).  Lithuania had no plans to convert specific amounts into ad valorem  rates since
large price differentials existed between domestic and imported goods.  On domestic products, excisetaxes were levied on the selling price exclusive of VAT;  the tax base for imports was the customsvalue inclusive of customs duties.  He said that excise taxes were differentiated (based on quality) forcertain domestically-produced and imported wine, beer and cigarettes.  Lithuania had taken concretesteps to bring its excise taxes on cigarettes into conformity with GATT Article III.  As from
1 January 1998 1 October 1997 , both imported and domestically-produced filter-tipped cigarettes
would be subject to the same tax rate.  The preferential excise tax treatment of small breweries was atransitional measure which Lithuania intended to 
equalize modify  by the time of its accession to the
WTO.
50. Some members of the Working Party asked about the application of value added tax in
Lithuania, including the basis for taxation of imported products.  A member asked for a clarification
on the treatment of imported like-products in the lig ht of Article III of the GATT 1994, noting that
Lithuania applied a reduced rate of VAT to some agricultural products of domestic origin.
51. The representative of Lithuania said that value added tax of 18 per cent was charged on goods
and services.  Goods imported into bonded warehouses and all exports were zero rated, and a numberof goods and services were exempt from VAT 
(Table 8) (listed in the Memorandum) .  Provisions
regarding VAT were changed in 1995 and 1996;  a temporary rate of 9 per cent and exemptions fromVAT for some products were applied until 1 January 1997.  Since that date, both domestic andimported products were subject to 18 per cent value added tax.  The tax base for the imposition ofVAT included excise taxes, if any, and customs duties on imported products.WT/ACC/SPEC/LTU/8/Rev.2
Page 18
52. [The representative of Lithuania said that, from the date of accession, Lithuania would apply
national treatment with regard to the rate of all the internal taxes and charges on both imports anddomestically-produced products.  The Working Party took note of this commitment.
]
[The representative of Lithuania stated that, from the date of accession, Lithuania would apply its
domestic taxes, including those on products listed in paragraphs 49 and 51 and Tables 7 and 8 in strict
compliance with Article III of the GATT 1994, in a non-discriminatory manner to imports regardless
of country of origin and to domestically-produced goods.  The Working Party took note of this
commitment.]
Quantitative Import Restrictions, including Prohibitions, Quotas and Licensing Systems
53. A member sought an undertaking from Lithuania that any quantitative import restrictions
inconsistent with Article XI of the GATT 1994 would be eliminated on accession.
54. The representative of Lithuania stated that Lithuania did not maintain import prohibitions
other than a ban on the import of snuff and chewing tobacco (HS 2403.99.10.0), which wasadministered in conjunction with a ban on domestic  production of the same products which would be
justified under Article XX(b) of the GATT 1994, 
and a ban on the importation and production (with
one exception) of beverages with alcohol content of more than 50 per cent.  Lithuania did notmaintain any import quotas.
55. Information on import licensing procedures according to the format applicable to WTO
Members was provided to the Working Party in document WT/ACC/LTU/7/Add.1 (the section
"Trading Rights" and Tables 3.1 and 3.2 contain information on licensing of business activities).  Therepresentative of Lithuania stated that Lithuania did not maintain any import licensing restrictionsother than for the following goods:
- narcotics and other controlled substances (HS codes 1211; 1301; 1302; 2905; 2918; 2921;
2922; 2924; 2925; 2926; 2932; 2933; 2934; 2939; 2914.30.10; 2924.29.50; 2932.90.75;2932.90.77;  2939.40.10;  2939.40.30;  2939.60.10;  2939.60.30;  2939.60.50;  2939.90.71)   -justified under Article XX(b);
- goods and loads of dual purpose (civil and military), means of defence, chemical and
biological materials which can be used in the production of chemical and bacteriologicalweapons of mass destruction;  nuclear missiles, equipment and technologies;  and goods andtechnologies used in the production of missiles - justified under Article XXI;WT/ACC/SPEC/LTU/8/Rev.2
Page 19
- dangerous loads (United Nations list of goods - justified under Article XXI);
- used tyres (HS 4012.20.90) and electric fishing tackle (HS 8543.80.80.0) - justified under
Article XX for reasons of environmental protection.  The Ministry of Environment Protection
would grant permission to import used tyres against documentation regarding delivery of
tyres unfit for use (50 per cent of the imported quantity), the importing company possessing
an equipped storage room and, for the restoration of used tyres,  equipment for restoration and
permission to use natural resources.
Common requirements for the issuance of import licences were:  the application;  the certificate of
enterprise registration;  the statutes of the enterprise;  a tax inspection certificate confirming all
income declared and taxes paid;  a certificate from the Customs Office regarding compliance with
customs obligations;  confirmation of payment of Stamp taxes;  and, in the case of rental, the lease
contract for storage or warehouse premises.
56. [The representative of Lithuania said that Lithuania would will  not introduce or maintain
quantitative import restrictions inconsistent with WTO, in particular Article XI of the GATT 1994,
and would will  observe WTO obligations on import licensing procedures.  The Working Party took
note of these commitments.]
[The representative of Lithuania confirmed that Lithuania would, from the date of accession,
eliminate and shall not introduce, reintroduce or apply quantitative restrictions on imports or other
non-tariff measures such as licensing, quotas, bans, permits, prior authorization requirements,
licensing requirements and other restrictions having equivalent effect that cannot be justified under
the provisions of the WTO Agreement, including those described in paragraphs 54 and 55.  He added
that import licences required for importation described in paragraphs 54 and 55 were granted
automatically to all who requested them or were otherwise justifiable under WTO provisions, and
would not restrict the right to import these products into Lithuania or in any way discriminate against
imported products.  He further confirmed that the legal authority of the Government of Lithuania to
suspend imports or exports or to apply licensing requirements that could be used to suspend, ban or
otherwise restrict the quantity of trade would be applied from the date of accession in conformity with
the requirements of the WTO, in particular Articles XI, 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 Procedures, Safeguards and Technical Barriers to Trade.  The Working
Party took note of these commitments.]WT/ACC/SPEC/LTU/8/Rev.2
Page 20
Customs Valuation
57. Noting a statement by Lithuania that existing legislation did not incorporate 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 notedthat Government Resolutions 
No. 751 of 25 June 1996 No. 281 of 28 February 1995  and No. 895 of
7 August 1997 appeared to authorize reference prices on imports.
58. The representative of Lithuania said that th e general principles regarding customs valuation
were laid down in Article 10 of the Law on Customs Tariffs (1993) and implemented throughGovernment Resolution No. 449 of 16 June 1993.  This legislation did not contain all the provisionsof the GATT 1994 Agreement on Implementation of Article VII, including its Article 1(2)(b) and (c),Article 6(2), Article 7(1) (reference to the principles and general provisions of the Agreement) and7(2), Article 14 and Article 15(2)(d) and (e), and Articl e 15(5).  Most of the provisions missing in the
present legislation would be incorporated in a ne w Order of Customs Valuation of Goods.  Moreover,
the new Customs Code, expected to enter into force on 1 January 1998, repeated verbatim theprovisions on customs valuation of the GATT 1994 Agreement.  The new Code and its implementinglegislation, modelled on the regulations of the European Communities, would contain new WTO-conform provisions in several areas, including on prohibited valuation methods, notification toimporters, confidentiality, the valuation of carrier media bearing software for data processingequipment, and the valuation of interest charges.
59. The representative of Lithuania confirmed that Government Resolution 
No. 751 of
25 June 1996 No. 895 of 7 August 1997   introduced minimum import prices (amended by
Government Resolution No. 895 of 7 August 1997) for sugar, grain and products thereof, and crude
oil products as a transitional measure to be abolished before Lithuania become Member of the WTO.The Law on Sugar and the Law on State Regulation of Economic Relations for Agriculture alsogranted the Government authority to establish minimum import prices.  The authority to establishminimum import prices was not included in the new Law on Sugar (in preparation).  He added that on
25 June 1996, Lithuania had approved Government Resolution No. 751 on "Customs Assessment ofPrices for Imported Goods".  According to this Resolution, Ministries responsible for trade issuesestablished a special price list ("price-in-checking" system), to be reviewed every three months, forcertain imported goods to fight customs fraud.  [Products covered by the system are enumerated in
Table 9 document WT/ACC/LTU/12, pages 13 -14.]  The established order of customs valuation was
followed for goods not included in the special list.WT/ACC/SPEC/LTU/8/Rev.2
Page 21
60. Concern was expressed about the "price-in-checking" system and Lithuania was asked to
explain in detail why the system would not consti tute a minimum price scheme.  A minimum import
price could not be considered a transaction value as defined in the WTO Customs ValuationAgreement, and the process of using "price-in-checking" did not conform to the hierarchy of othervaluation methods provided for in the Agreement and in Lithuania's new Customs Code.  Lithuania
was urged to use WTO-consistent provisions to assess valuation of imports;  the "price-in-checking"system should not be in place after Lithuania's accession to the WTO.
61. The representative of Lithuania explained that prices in the special list were utilized in the
assessment of duties and taxes when importers were unable to substantiate declarations of a lowercustoms value, or to provide information to allow the other methods of customs valuation (non-transaction value) to be used.  The importer was normally asked to demonstrate that the value of theimported goods approximated the value of identical or similar goods imported and sold in Lithuania.Deductions would be made for expenses on commissions, and the value would be adjusted for profitand general expenses, transportation and insurance costs, import duties and taxes, etc.  Article 6 of theLaw on Customs allowed all decisions taken by the customs authorities, including "price-in-checking"decisions, to be appealed to the Customs Department and/or the Court.  The "price-in-checking"system was a transitional measure and would not be part of the new Customs Code.  The "price-in-checking" system would accordingly be discontinue d when the new Customs Code entered into force
on 1 January 1998.  In any case, in his view, these checking prices did not constitute a minimum pricesystem.
62. 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 theImplementation of Article VII of the GATT 1994.  Article 29 appeared to permit customs valuationbased on measures  inconsistent with the Agreement, the Interpretative Notes of the Agreement werenot fully incorporated,  Articles 2 to 6 of the WTO Agreement were implemented on an incompletebasis, the Code contained no legal reference to the provisions of Article 7.3 of the Agreement(importers' right to a written explanation of alternative valuation methods), the wording of Article 33of the Customs Code regarding the dutiability of royalty payments was somewhat broader than theWTO Agreement,  Article 35 of the Customs Code did not commit Lithuania to valuation of softwarebased on the value of the media, and the Customs Code contained no legal counterparts to WTOprovisions regarding confidentiality, right of appeal, and the right to a written explanation.WT/ACC/SPEC/LTU/8/Rev.2
Page 22
63. The representative of Lithuania replied that the concern regarding Article 29 of the Customs
Code was a misunderstanding arising from a translation error;  the Article required the rules ofcustoms valuation laid down by the Customs Code to be used in all cases when import taxes, otherthan import duties, or value-based import prohibitions or restrictions, were applied.  Some of theInterpretative Notes of the Agreement were not incorporated in the Customs Code, but would beincluded in the Implementing Provisions of the Customs Code.  These provisions were currently inpreparation and would also enter into force on 1 January 1998.  The Implementing Provisions of the
Customs Code would incorporate the provisions of Articles 2-6 of the WTO Agreement missing in
Article 31 of the Customs Code, the definitions set forth in paragraphs 1 to 3 and in paragraph 5 ofArticle 15 of the Agreement, and the provisions c oncerning valuation of software based on value of
the media.
64. A new Order of Customs Valu ation of Goods, based on the appropriate provisions of the
Code and incorporating most of the above-mentioned provisions, had been adopted byGovernment Resolution No. 897 of 11 August 1997.  This Order was based on the ImplementingProvisions of the Community Customs Code (Commission Regulation 93/2454/EEC) and containedthe following provisions missing in the pr evious Order on Customs Valuation of Goods:
- definitions of "produced goods", "identical goods", "similar goods" and "goods of the same
class or kind" (Articles 15(1), (2) and (3) of the GATT 1994 Agreement on Implementation ofArticle VII);
- provisions governing the application of test values in case of sales between related persons
(Articles 1(2)(b) and (c) of the Agreement);
- provisions concerning prohibition to require any person not resident in the territory of
Lithuania to produce records for the purposes of determining a computed value (Article 6(2)
of the Agreement);
- provisions concerning application of reasonable means consistent with the principles and
general provisions of the Agreement (Article 7(1) of the Agreement);
- a list of prohibited valuation methods (Article 7(2) of the Agreement);- provisions indicating that the sole agent, sole distributor or sole concessionaire shall not be
treated as a person related with the seller (Article 15(5) of the Agreement);
- provisions concerning rates of exchange of the Litas;- provisions governing customs valuation of goods in case of successive sales (e.g. in customs
warehouses);
- provisions concerning place of introduction into the customs territory of Lithuania;- provisions concerning valuation of carrier media for use in ADP equipment;WT/ACC/SPEC/LTU/8/Rev.2
Page 23
- provisions concerning the lodging of a value declaration;
- requirements applied to the supporting documents (commercial invoices, contracts,
transportation and insurance documents, etc.);  and
- provisions concerning the valuation of used cars.
However, the new Order did not repeal the "price-in-checking" system or the minimum import prices
for oil products, grains and products thereof, and sugar - which were applied on a temporary basis -
and contained references to cases where this system or the minimum import prices would be applied.
65. Regarding the right to written explanation and appeal, he said that Article 5 of the Customs
Code covered requests of importers concerning explanation of alternative valuation methods.Customs was required to respond in writing to written requests.  In case of rulings against theapplicant, this information would also set out the grounds on which Customs had based its decision.The right of appeal was provided for in Article 226 of the Customs Code.  He acknowledged that theCustoms Code contained broader wording regarding th e dutiability of royalty payments than the WTO
Agreement, but noted that the wording of paragraph 1(3) of Article 33 of the Customs Code had beentaken from the Interpretative Note to paragraph 1(c) of Article 8 of the Agreement.
[66. The representative of Lithuania stated that the system of import reference prices, including
those applied to sugar and petroleum products, would be eliminated prior to accession, and that such
measures would not be reintroduced except in accordance with WTO Agreements.  The Working
Party took note of this commitment.]
67.  66. 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 exportsfor customs purposes.  He also stated that from the date of its accession Lithuania's customs valuationlegislation and practice would be in full conformity with the relevant WTO provisions, includingArticle VII of GATT 1994 and the Agreement on Implementation of Article VII without any
transition period.  Lithuania would implement Decision 4.1 of the Customs Valuation Committeeconcerning the valuation of carrier media bearing software for data processing equipment from thedate of its accession.  The Working Party took note of this commitment.WT/ACC/SPEC/LTU/8/Rev.2
Page 24
Other Customs Formalities
68.  67.  The representative of Lithuania said that Lithuania followed the work of the World Customs
Organization and the WTO regarding a harmonization programme for non-preferential rules of origin.
In the meantime, Lithuania was taking into account and implementing the results of the WTOnegotiations to maintain a transparent system for non-preferential rules of origin;  to administer theserules of origin in a consistent uniform, impartial and reasonable manner;  and to base these rules oforigin on a positive standard.  According to Article 10 of the Law on Customs Tariff currently in forcegoods originated in a country if wholly obtained or produced in that country or, if more than onecountry was involved, where the raw materials or components underwent substantial, economicallyjustified processing or working.  Processing or working was considered substantial if resulting in achange in four-digit HS tariff heading for the new product.  These criteria applied in respect of goodsoriginating in countries enjoying most-favoured-nation status in Lithuania.  Imports from thesecountries satisfying the origin criteria would be subject to conventional (i.e. MFN) tariff rates,otherwise the (normally higher) autonomous tariff rates would apply.
69.  68.   He added that Chapter V of the new Customs Code, which was scheduled to enter
into force on 1 January 1998, provided the framework for the application of non-preferential rules of
origin which, in his view, were WTO-consistent.  Those provisions stated, inter alia , that the
originating status of a particular good was either the country where the good had been whollyobtained or, when more than one country was concerned in its production, the country where the lastsubstantial transformation had been carried out.  The criteria under which products were deemed to benew, and their processing or working considered to be representing an important stage ofmanufacture, would be established by international agreements concluded between Lithuania andother countries or by the Implementing Provisions of the new Customs Code.  The 
new draft
Implementing Provisions on rules of origin of 1 October 1997 were based on the Implementing
Provisions of the Community Customs Code.
70.  69. A member reviewed the information provided by Lithuania and was not convinced
that Lithuania's  rules of origin system met the procedural obligations in the WTO Agreement onRules of Origin.  Specifically, regarding preferential rules of origin, Lithuania was asked to confirmthat administrative determinations of general application for preferential rules of origin were issued;that when issuing administrative determinations of  general application, the method for calculating the
ad valorem  percentage criterion would be indicated in the preferential rules of origin;  that
assessments of the preferential origin accorded to a good were issued as soon as possible, but no laterthan 150 days after a request for such an assessment by an exporter, importer, or any person with aWT/ACC/SPEC/LTU/8/Rev.2
Page 25
justifiable cause;  and that any administrative actions taken in relation to the determination of
preferential origin was reviewable promptly by judicial, arbitral or administrative tribunals orprocedures, independent of the authority issuing the determination.  Lithuania was also asked toclarify the role of "independent experts" in the determination of rules of origin.
71.  70.   The representative of Lithuania replied that preferential rules of origin, which formed
an integral part of all free trade agreements concluded by Lithuania and enjoying the status of law,were applied 
in accordance with the implementing regulations of the Customs Department (currently
the Order of Application of Preferential Duties of 4 July 1997) directly without any additional
implementing statutes or regulations .  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.  Pursuant to Government Resolution No. 774 of 16 October 1992, allcomplaints, requests or suggestions of exporters,  importers or any other person, including requests
concerning assessments of preferential origin, were to be considered within one month.  The newCustoms Code contained similar provisions on the examination of requests; where request for adecision was made in writing the decision should be made within 8 working days, unless laws andother legal acts provided another term, and a decision requiring additional information should bemade within thirty working days.  Exceptionally, the customs authorities could exceed the stipulated
period by up to 10 working days.  The applicant would be informed in writing of the decision or theextension of the period necessary for the examination of the request.  According to the Law onCustoms currently in force, legal and natural persons had the right to appeal against all decisionstaken by customs authorities including the determ ination of preferential origin to the Customs
Department and/or to the Court.  The new Customs Code also contained a chapter regulating theprocedure of appeals against decisions taken by the customs authorities.
72.  71.   Concerning the "independent experts", the representative of Lithuania said that these
were enterprises dealing with examination of goods produced in Lithuania or exported from
Lithuania,  including verification of prices and preliminary assessment of preferential origin. Theassessment procedure for goods produced in Lithuania was established by the Ministry of Industryand Trade and Customs Department on 26 March 1993.  
Such examination was not obligatory for
exporting companies; they could present document s proving the origin of goods or their own
motivated conclusions.  Exporters paid the "independent experts" for their services, but the customs
authorities were not bound by such determinations, and exporters could prove the originating status of
goods directly to the customs authorities.   The experts were required to pass a test at the Customs
Department once a year;  11 "independent experts" had been certified for 1997.  The experts were
normally employees of companies carrying out such examinations, i.e. " Beckmann&JorgensenWT/ACC/SPEC/LTU/8/Rev.2
Page 26
kontrole " (Klaipeda ), the Joint Stock Company Ltd. " Siauliu  prekiu  ekspertize " (Siauliai ), the Joint
Stock Company " Imperksservis " (Vilnius), " Kauno  prekiu  ekspertize " (Kaunas ), Vilniaus  regioniniai
prekybos , pramones  ir amatu  rumai , and Vokietijos  ribotos  atsakomybes  bendroves  "Praezisa
Industrieelektronik " atstovybe  Lietuvoje  (Vilnius).  Most of these enterprises were members of the
Lithuanian Association of the Goods’ Examinati on Enterprises. According to the procedure for
assigning experts approved pursuant to the Statute this Association, the experts were prohibited fromdisseminating confidential information.  The procedure for assigning experts was based on the rules ofthe German Chamber of Commerce.  
Customs was not bound by examinations performed by
"independent experts", and in issuing documents on preferential origin of goods these examinations
would be verified once more.  He stressed that the "independent experts" did not evaluate whether or
not imported goods fulfilled the requirements of preferential rules of origin.
73.  72. Procedures had been streamlined for imports of small consignments and frequent
traders.  The 1996 Customs Code contained appropriate provisions regarding the application ofsimplified procedures.  Further work on simplification of existing procedures included the creation ofa Customs Information System based on the ASYCUDA package of UNCTAD and the establishmentof audit units at regional customs houses.  These steps should reduce delays in customs clearance ofgoods at the border.
[74. The representative of Lithuania confirmed that from the date of accession Lithuania's
application for both MFN and preferential trade would be administered in conformity with the
provisions of the WTO Agreement on Rules of Origin.  The Working Party took note of this
commitment.]
73. [A commitment relating to MFN measures has been requested.]
Pre-Shipment Inspection
75.  74. The representative of Lithuania said that Lithuania did not engage private sector firms
to carry out pre-shipment inspection.
Anti-Dumping, Countervailing Duties and Safeguard Regimes
76.  75. Some members of the Working Party requested information about the status of
legislation related to anti-dumping, countervailing duties and safeguard measures and its conformitywith WTO disciplines.  
Lithuania was asked to provide an update on its intent and the development of
legislation.  A member reminded Lithuania that in the absence of the required legislation, Lithuaniawould not be able to avail itself of the temporar y protection mechanisms provided for in the relevant
WTO Agreements.WT/ACC/SPEC/LTU/8/Rev.2
Page 27
77.  76. The representative of Lithuania replied that Lithuania was working on a draft Law on
Anti-dumping which would follow the requirements of the WTO regarding anti-dumping.  The draftLaw would be presented to the Government for consideration at the end of 1997.  Lithuania wasconsidering whether to draft and implement countervailing duty and safeguard regimes.
78.  77. The representative of Lithuania said that any legislation in place at the time of
accession or implemented in the future providing for the application of measures taken for safeguard,anti-dumping or countervailing duty purposes would conform to the provisions of the WTOAgreements on Safeguards, on Anti-dumping and on S ubsidies and Countervailing Measures.  In the
absence of such legislative authority in place at the time of accession, Lithuania would not applymeasures for safeguard, anti-dumping or countervailing duty purposes until legislation in conformitywith the provisions of these WTO Agreements had been implemented.  The Working Party took noteof this commitment.
B. Export Regulations
Customs Tariffs, Fees and Charges for Services Rendered, Application of Internal Taxes to
Exports
79.  78. The representative of Lithuania said that export duties ranging from 15 to 50 per cent
had been imposed temporarily on certain raw materials of importance to the local industry.  All theseexport duties were abolished in October 1994 by Government Resolution No. 985. Effective1 July 1996, export prohibitions were lifted on certain raw materials of interest to the domesticindustry and replaced by export duties of 60 per cent, applied on an MFN basis, through GovernmentResolution No. 268 of 24 March 1997.  These export duties were reduced from 60 per cent to30 per cent - except for the duty on 
certain types of log wood and unprocessed oak and ash timber,
which remained at 60 per cent - by Government Resolution No. 896 of 7 August 1997.  [The pr oducts
currently subject to export duties are listed in Table 10  8 .]  The export duties applied on a bilateral
basis remained in effect as these were somewhat lower than the duties established throughGovernment Resolution No. 268 (discussed in further detail in the section "Trade Agreements").  The
representative of Lithuania confirmed that any changes in the export tariff regime would be publishedin the Official Gazette.
80.  79. Exported goods, with the few listed exceptions in [Table 10 8 ], were exempt from
customs duties and VAT.  Lithuania maintained some customs fees on exportation as part of theapplication of the Stamp Tax.  These fees were related or limited to the approximate cost of theservices rendered.  The fees and charges are enumerated in 
[Table 6 ].  The new Customs Code,WT/ACC/SPEC/LTU/8/Rev.2
Page 28
scheduled to enter into force on 1 January 1998, provided a framework for the implementation of a
duty drawback system in its Section 6 pertaining to inward processing.  Article 125 of Section 6
allowed the holder of an authorization (generally the importer) to request the Government ofLithuania to repay an import duty when the authorization holder could prove that the imported goodhad been exported as part of a compensation product (a product incorporating the good originallyimported).  The refunded duty was limited to the amount of import duties paid for the originallyimported products included in the compensating product, and thus did not constitute a subsidy to theexporter.
81.  80. [A member stated that Lithuania should el iminate the difference in the application of
its export tariffs, and should commit that after accession, it would minimize the use of such taxes andthat they would be applied in accordance with the provisions of the WTO Agreement.]  Therepresentative of Lithuania said that use of export taxes would be consistent with WTO norms, andany such taxes at the time of accession would be in the Working Party report, and that after accession,any subsequent use of such measures would be notified in this fashion to the WTO and published inthe Official Gazette.
Export Restrictions
82.  81. Some members of the Working Party noted that Lithuania restricted exports of
various goods.  Lithuania was asked to identify the measures maintained, the affected products, thereasons why exports were restricted and to indicate any plans for future use of export restrictions.  Amember noted Lithuania's intentions to replace existing export prohibitions with export duties andrequested that Lithuania indicate specifically when this conversion would take place, and acommitment from Lithuania to phase out and eliminate the export duties in accordance with anegotiated timetable.
83.  82. The representative of Lithuania said that all previous export bans were abolished by
Government Resolution No. 716 (of 18 June 1996) and replaced by export duties.
84.  83. Non-automatic licences were required only for exports of objects of cultural value
(made before 1950).  Licences were also required to engage in exportation of narcotics and highly
effective substances (non-automatic), and oil products (automatic).  Licences were required for
exports of ethyl alcohol, metals and alloys, metal waste and scrap, and objects of cultural value (made
before 1950).  Licences were also required to engage in exportation of narcotics and highly effective
or poisonous substances (not used for pharmaceutical purposes), oil products and raw wood.   The Law
concerning Control of Import, Transit and Export of Strategic Goods and Technologies, entering intoWT/ACC/SPEC/LTU/8/Rev.2
Page 29
force on 1 July 1997, stipulated licensing by the Ministry of National Economy for exports of dual use
goods, technologies and software.  As a tempor ary measure in 1995, continued through 1996, the
Government had maintained certain export restrictions during periods of short supply of grain, flourand compound feed.  In the future, export quotas on agricultural products would only be temporarymeasures applied in emergency situations.  Export controls on ethyl alcohol were linked to the
collection of taxes and to discourage production of counterfeit alcoholic beverages.
85.  84. [Some members asked Lithuania to insert  the WTO justification for export licences.]
[Export Subsidies][Export Promotion ]
86.  85. The representative of Lithuania said that Lithuania did not maintain any subsidies, but
provided information on export promotion measures.  The Government had adopted a Resolution "OnActions Improving Foreign Trade Regulation and Export Development" in January 1995.  TheResolution covered drafting of legislation, export promotion and funding, management of trade-related information and education and training of export specialists.  Lithuania had also adopted aNational Programme of Implementation of Lithuanian Foreign Trade Policy Guidelines for1996-1998.  The programme included implementation of an export programme developed by theLithuanian Export Promotion Agency and the establishment of Export Support and Export 
Insurance
Guarantee  Funds.  Lithuania had also considered the development of a credit insurance system, but
had yet to decide on its implementation.  In developing an export credit insurance model, Lithuaniatook into account the recommendations of the OECD.  
In August 1997, the Government had
established a Closed Joint Stock Company "Lietuvos eksporto  ir importo  draudimas " (LEID) and
formed an interministerial commission - the Busine ss Development Council - to deal with export
promotion issues.  The representative of Lithuania confirmed that if an export credit insurance system
(agency) was established in Lithuania, it would act in accordance with WTO requirements.
87. LEID, which was minimum 51 per cent government-owned, insured bank loans related to
production and export of goods and services.  Responding to demands from the lending banks,
companies concluded insurance contracts and paid the required premium to LEID.  The Government
had allocated Llt 40 million for the formation of the initial capital, reserves, etc., and had issued State
guarantees for insurance contracts amounting to Llt 120 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 Arrangement and recommendations of the OECD.  The Business
Development Council supervised LEID activities, decisions to assume losses of the LEID for insured
political risks, etc.  In addition, the Council decided on the financing of other export supportWT/ACC/SPEC/LTU/8/Rev.2
Page 30
measures, such as training, co-financing of exhibitions and fairs, preparation of prospects and
catalogues, co-financed introduction of international standards and quality systems, etc.  Some
Llt 3.5 million had been allocated for such purposes in 1997.
88.  86. The purpose of the Lithuanian Export Promotion Agency, which was established at
the end of 1995, was to promote exports of Lithuanian goods and demand for Lithuanian services.  Itsmain functions were to analyze and provide information to Lithuanian exporters and service providerson foreign market conditions;  to establish Lithuania's trade representation offices abroad;  to prepare,implement and monitor trade development programmes  to ensure their consistency with WTO rules;
to study issues affecting trade activities and formulate recommendations to Lithuanian authorities;  toconsult State, public and private institutions on foreign trade issues;  and to provide education andtraining to the foreign trade community in Lithuania.  Recently, the Lithuanian Export PromotionAgency and a sister agency focusing on encouraging foreign investment in Lithuania, the LithuanianInvestment Agency, had been brought under the umbr ella of a new agency - the Lithuanian Economic
Development Agency.
[89.  87. The representative of Lithuania said that Lithuania would did  not maintain, and from
the date of accession would not introduce, subsidies which met the definition of a prohibited subsidywithin the meaning of Article 3 of the Agreement on Subsidies and Countervailing Measures [and
would therefore not seek a transitional period for the elimination of such measures] .  The Working
Party took note of this commitment. ]
C. Internal Policies Affecting Foreign Trade in Goods
Industrial Policy, including Subsidies
90.  88. The representative of Lithuania expected some six years would be required to
restructure Lithuania's industrial sector.  Industries targeted for development included woodprocessing;  flax;  processing of skins and furs;  production of construction materials;  agriculturalmachinery;  new forms of energy;  waste pro cessing;  and production of medicines and medical
equipment.  Potentially competitive enterprises had been identified through indicators such as current
exports.  Government funding was limited.  Restructuring and promotion measures thereforeconcentrated on general improvements in the legal and economic environment.  Specific measuresincluded financial guarantees issued by the Government, 
the introduction of credit insurance, export
support measures including measures related to the implementation of a national quality programme,
temporary tax exemptions and technical assistance from abroad.  Support was contingent on
enterprises providing properly prepared business plans.WT/ACC/SPEC/LTU/8/Rev.2
Page 31
91.  89. Referring specifically to the energy sector, the representative of Lithuania said that
domestic production of energy from local resources, including nuclear energy, had coveredapproximately 
45 43  per cent of Lithuania's needs in 1996 and 41 per cent in 1997 1995 .  The share
was expected to reach about 50 per cent by 2005 with increasing availability of domestic petroleumproducts and nuclear power.  The State-owned gas importer and supplier "Lietuvos Dujos" had beensubsidized to help offset the cost of imported natural gas and to compensate for low tariffs on
deliveries of heating and hot water to households.  Under a restructuring programme for the energysector the Government was considering plans for privatization that could affect "Lietuvos Dujos".The Government was also reviewing its energy pricing policies.
90.
The representative of Lithuania said that a Guarantee Fund for Production Loans was under
establishment and would replace the Export Support Fund, which ceased operations at the end of
1996.  The new Guarantee Fund, which was funded by  the Government, would devote 90 per cent of
its resources to production loan guarantees.  These guarantees would assist enterprises in obtaining
working capital in the form of short term cr edits (up to six months) from commercial banks.
Enterprises were charged up to 2 per cent of the guaranteed loan as a fee. The guarantee facility was
not contingent upon export performance.  The remainder of the Fund's resources would be allocated to
trade promotion activities such as training, co-financing of exhibitions and fairs, preparation of
prospects and catalogues, etc.  The 1997 budget of the Fund amounted to Llt 40 million.
92.  91. The representative of Lithuania said that Lithuania did 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 Agreemen t on Subsidies and Countervailing Measures [and
would therefore not seek a transitional period for the elimination of such measures].  [The WorkingParty took note of this commitment.]
Technical Barriers to Trade, Sanitary and Phytosanitary Measures
Standards and certification
93.  92. The representative of Lithuania explained that Lithuania was in a process of transition
where mandatory (GOST) standards established under the former USSR system were replaced by anew system of voluntary standards and mandatory technical regulations.  The Lithuanian Standards
Board had membership status within various international and european standardization organizationsto facilitate adoption of international and European standards in Lithuania.  The Lithuanian StandardsBoard was an affiliate member of the European Committee for Electrotechnical Standardization(CENELEC) since 1997, a member of the European Committee for Standardization (CEN) sinceWT/ACC/SPEC/LTU/8/Rev.2
Page 32
1994, a member of the European Telecommunication Standards Institute (ETSI) since 1996, a
correspondent member of the International Organization for Standardization (ISO) since 1992, anassociated member of the International Electrotechnical Commission (IEC) since 1996, and acorrespondent member of the Organization for Legal Metrology (OIML) since 1994.  Lithuaniaconcentrated its resources toward implementation of a long-term programme covering approximately
600 international and European standards.  Lithuanian standards were drafted in technical committeesfollowing the principles defined by international a nd European standardization organizations.  [At this
point, Lithuania did not participate in the European Organization for Testing and Certification(EOTC), the European Co-operation for Accreditation Laboratories (EAL) and the EuropeanAccreditation of Certification (EAC).  The Lithuanian Standards Board would seek full membershipstatus in international and regional standardizat ion organizations, but future membership depended on
the availability of funding.]
94.  93. A member noted that some of the legislation critical to the development of Lithuania's
standards regime was still in preparation and expected Lithuania to adopt all necessary legislation toimplement fully all obligations under the Agreement on Technical Barriers to Trade prior to the date
of accession.
95.  94. The representative of Lithuania said that work was under way to bring technical
regulations into conformity with the WTO Agreement on TBT.  A Law on Metrology had beenadopted in July 1996. Intended for presentation to the Government by the end of June 1998 were adraft Law on Standardization which defined the organizational framework for standardization,including the basic principles, functional requirements and main resources, and a draft Law onConformity Assessment which would apply to both mandatory and voluntary procedures, defining the
structure of the conformity assessment system and covering accreditation, testing, supplierdeclarations, certification and inspection.  Lithuania had established an Information Centre at theLithuanian Standards Board in November 1996.  This Centre, inter alia, fulfilled the function of theEnquiry Point according to the WTO Agreement on TBT and would also provide notifications.However, the Information Centre was not fully ope rational yet.  Rules governing the exchange of
information between Ministries involved in standa rds issues and the enquiry point would be drafted
by 
early 1998 the end of 1997 .  According to the draft Law on Standardization information on
standardization policy matters, draft standards and standards in force in Lithuania would be publishedin the official bulletin of the Lithuanian Standa rdization Board.  Lithuania would introduce provisions
allowing foreigners to comment on technical regulations not consistent with international norms.Plans existed to adopt the Code of Good Practice and the notification requirements for voluntarystandards as required in the Annex 3 of the WTO TBT Agreement.  Lithuania would be able to adoptthe Code of Good Practice upon revision of its basic standards in the course of 1998.  Basicprocedures for technical work would be approved by the end of 1998.WT/ACC/SPEC/LTU/8/Rev.2
Page 33
96.  95. Lithuania's system of conformity assessment, notably the certification activities, was
based on normative documents prepared according to ISO/IEC guidelines, mainly ISO/IECGuides 22 and 28, and the Supplier's Declaration of Conformity.  Domestic and imported goods were
treated equally.  Lithuanian certification bodies could recognize certificates issued by foreign bodiesin accordance with the relevant procedures.  Certification bodies had been established for mandatorycertification of electrical appliances (the Certification Centre of Electrotechnical Production inVilnius) and for general-purpose electronic equipment (the State Medical and Electronic EquipmentCentre of Certification "SERTIKA" in Kaunas).  The two certification bodies based their work onGovernment Resolution No. 474 of 22 June 1992 and Order No. 160/114 of 29 June 1995 of theMinistry of Industry and Trade and Lithuania's St andards Board.  Lithuania was preparing mandatory
certification requirements for technical communication means, articles of computer engineering,agricultural equipment and construction materials.
97.  96. Foreign certificates for imported oil products needed to correspond to mandatory
quality indicators approved by the Lithuanian Standards Board.  Government Resolution No. 883(29 November 1993) On the Approval of Traffic Rules established technical inspection requirementsfor imported vehicles.  All pharmaceutical products required registration before being sold inLithuania.  Some other non-food items were subject to verification requirements under GovernmentResolution No. 53/89 of 31 August 1994.  Marking regulations had been established by OrderNo. 42/25/107 of 23 February 1995.  For other technical requirements see documentWT/ACC/LTU/7/Add.1.
98.  97. The draft Law on Conformity Assessment did not contain specific guidelines for
testing laboratories, certification bodies or accreditation bodies, but indicated that participants in theconformity assessment system should meet the requirements of international and relevant Europeandocuments and other related regulations.  The draft Law permitted Lithuania to recognize product testreports and certifications performed under international guidelines.  Lithuania did not recognize aforeign country's certificate without a bilateral agreement.  Lithuania had signed agreements onmutual recognition of test reports and certificates of conformity with Poland, Slovakia, Bulgaria,Belarus, Russia and Ukraine;  agreements with the Czech Republic and Romania were undernegotiation.  Cooperation agreements on accredita tion between the corresponding institutions of
Lithuania, Latvia and Estonia had also been signed.  Lithuania recognized certificates of foreigncountries after their registration by the relevant Lithuanian product certification bodies.  Lithuaniarecognized certificates for measuring instruments issued by the International Organization for LegalMetrology (OIML).  The representative of Lithuania stressed that no relationship existed between thecertification process and import licensing requirements.WT/ACC/SPEC/LTU/8/Rev.2
Page 34
99.  98. The representative of Lithuania stated that Lithuania would ensure that its technical
regulations, standards, certification and labellin g requirements were not applied to imports in an
arbitrary manner, in a way that discriminates between supplier countries where the same conditionsapply or as a disguised restriction on international trade.
100.  99. The representative of Lithuania stated that, upon accession to the WTO, Lithuania
would comply with all the provisions of the Agreement on Technical Barriers to Trade withoutrecourse to any transitional arrangements.  The Working Party took  note of this commitment.
Sanitary and Phytosanitary Measures
101.  100. The representative of Lithuania said that Lithuania had renewed its membership in
the Organisation International des Epizooties (OIE) in 1992 and was following the requirements ofthe Codex Alimentarius Commission and the European Plant Protection Organization (EPPO).Lithuania was working to conform its sanitary and phytosanitary measures with the requirements of
the WTO.  Procedures would be established for public notice and comment for all sanitary andphytosanitary measures.  He provided information on specific Lithuanian requirements pertaining toseeds, fertilizers, pesticides, animal and plant health, feeds, plant breeders' rights, fruit and berries,food additives and contaminants, packaging and labelling standards, and inspections of meat, dairyproducts, eggs and egg products.  
[A member asked about Lithuania's intentions to join the
International Plant Protection Convention (IPPC).]
102.  101. The representative of Lithuania provided "Information on Lithuania's Progress in
Implementing the Provisions of the WTO Agreement on Sanitary and Phytosanitary Measures" inAnnex I of document WT/ACC/LTU/10.  The submi ssion listed the institutions responsible for
application of SPS measures;  relevant legislation pertaining to foodstuffs and food safety, non-processed agricultural commodities and animal health, and plant health;  and outlined plans forrecognizing equivalence of SPS regulations of exporting countries and implementation oftransparency provisions.
103.  102. Imported foodstuffs were required to pass through border crossing points manned to
perform foodstuff controls.  The Ministry of Health Care had approved a list of foodstuffs subject toquality control, thus requiring phytosanitary, veterinary or health and quality certificates onimportation.  Products included in the list were set out in document WT/ACC/LTU/12, pages 20-21.Lithuania required veterinary and phytosanitary certificates for processed foodstuffs. 
only to ensure
that imported products fulfilled appropriate veterinary and phytosanitary requirements (such as animal
health and public health attestations).WT/ACC/SPEC/LTU/8/Rev.2
Page 35
104. A member inquired about the relationship between foodstuff certification and import
licensing.  The representative of Lithuania replied that at present the Government approved a list of
products and foodstuff requiring certificates.  Foodstuff subject to veterinary or phytosanitary import
control in Lithuania required certification of each consignment.  The issuance of certificates was
coordinated between the State Veterinary Service and the Plant Quarantine Inspection at the Ministry
of Agriculture and Forestry.  For products subject to veterinary inspection, the importer should apply
for an import permit to the State Veterinary Service stating details concerning the product, its origin,
the exporting country and the border crossing point.  An import permit would be issued without delay
provided the epizootic situation in the exporting country was propitious.  A suppliers' conformity
declaration would suffice for consumer products and other foodstuff not subject to veterinary or
phytosanitary certification.  Products not specifically listed were not subject to certification or
suppliers' declaration.  He added that Governme nt 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 State
Veterinary Service and the Nutrition Centre in the Ministry of Health Care would prepare a register of
foodstuff importers, entering into force on 1 July 1998.  The register would improve the surveillance
and control of importers and guarantee importation of safe products only.
105.  103. A member pointed out that Article 5 of the WTO Agreement on SPS required
Lithuania to carry out risk assessment.  A member expected Lithuania to establish its SPS enquirypoint and adopt all necessary legislation to implement fully all obligations under the Agreement onSPS by the date of accession to the WTO.
106.  104. Regarding implementation of WTO provisions on sanitary and phytosanitary
measures, the representative of Lithuania said that Lithuania needed a transitional period to bring itslegal and institutional infrastructures for implementation into full conformity with the WTOAgreement.  The enquiry point and notification functions required under the SPS Agreement mightnot be fully operational by the time of Lithuania's accession to the WTO.  Lithuania's legal base forimplementing the Agreement was still being improve d.  Lithuania was working hard to improve its
scientific laboratories and equip them with high-quality equipment and trained staff.  In the meantime,and given the evolving nature of its current syst em, Lithuania would endeavour to apply all of its
sanitary and phytosanitary requirements consistently with the requirements of the WTO.WT/ACC/SPEC/LTU/8/Rev.2
Page 36
107.  105. [Some members requested Lithuania to indicate which specific provisions of the SPS
Agreement it still had difficulty in applying and,  Lithuania's legal base for implementing theAgreement is still being improved.  Lithuania is working hard to improve its scientific laboratoriesand equip them with high-quality equipment and trained staff.  In the meantime, and given theevolving nature of its current system, Lithuania will endeavour to apply all of its sanitary andphytosanitary requirements consistently with the requirements of the WTO.  The representative of
Lithuania presented a request for a transitional period to implement specific provisions of theAgreement on the Application of Sanitary and Phytosanitary Measures, circulated as documentWT/ACC/SPEC/LTU/9 of 26 September 1997.]
  Having reviewed that document, a member noted
that implementation of the Agreement did not appear to entail a complete overhaul of Lithuania's
system, and that Lithuania should be prepared for immediate implementation of the operational
requirements of the SPS Agreement, in particular the transparency and notification requirements,
which were essential to achieve the trade and public health objectives of the Agreement.
108.  106. [The representative of Lithuania stated that, upon accession to the WTO, Lithuania
would apply all its sanitary requirements consistently with the requirements of the WTO, includingthe Agreements on Sanitary and Phytosanitary Measures and Import Licensing Procedures, withoutrecourse to any transitional arrangements.  The Working Party took note of this commitment.]
Trade-Related Investment Measures
109.  107. The representative of Lithuania said that his Government had reviewed carefully the
provisions of the WTO Agreement on Trade-Rela ted Investment Measures (TRIMs), including its
Annex and had concluded that Lithuania did not maintain any measures inconsistent with the TRIMsAgreement.  His Government applied the principle of national treatment and did not resort toperformance requirements which could affect trad e.  Lithuania was ready to implement fully the
provisions of the WTO TRIMs Agreement upon accession without exception or transitional periods.
110.  108. The representative of Lithuania confirmed that Lithuania would not invoke the
provisions of the TRIMs Agreement that provide for the progressive elimination of measuresinconsistent with the TRIMs Agreement within a fixe d period of time as it did not maintain any such
measures and would not introduce any such measures in the future.  The Working Party took note ofthis commitment.WT/ACC/SPEC/LTU/8/Rev.2
Page 37
State-Trading Entities
111.  109. The representative of Lithuania said that former State-trading enterprises were under
the jurisdiction of the Ministry of National Economy. The Law on Trade, adopted in January 1995,authorized the establishment of State monopolies in any sector in emergency situations (war, natural
calamities, etc.) and to protect health and safety.  He considered such measures consistent with theprovisions of the GATT 1994.  Exclusive rights existed for State enterprises, or special enterprises inwhich the State held all or the majority of the shares, regarding trade in radioactive and nuclearmaterial and waste.  He added that the joint-stock company "Lietuvos energija" operated as a naturalmonopoly in the production, input, transmission and distribution of energy.  However, on
8 April 1997, the Seimas had approved the reorganization of "Lietuvos energija" into 16 thermalsupplier companies.  Production of beverages with high alcohol content was reserved for the company"Lietuviskas Midus".  [
Lithuania was considering notifying this enterprise as a State-trading
enterprise.]   He added that no agricultural products were covered by State-trading.
112.  110. [A member understood that Lithuania used licences to allow commerce to a certain
point, and stated that Lithuania should notify firms under Article XVII of the GATT 1994 in areaswhere business licences were rationed arbitrarily or acted as quantitative restrictions.  Moreover,arrangements in the sugar processing sector rega rding an exemption from provisions in the Law on
Competition governing dominant firms, and the distribution of tariff-rate quotas, would appear to be aspecial right within the meaning of Article XVII.  
Current programmes were clearly WTO-
inconsistent, whether or not they qualified under Article XVII.  Even if "Lietuviskas Midus" was
notified as a State trading enterprise, the import ban would still be problematic vis-à-vis GATT
Articles III and XI.]
113.  111. The representative of Lithuania replied that his Government had not approved any
special rights for sugar refineries.  The Law on Competition would exempt the members of a sugarmanufacturers' association from certain of its provisions, but no such association has been formed yet.Zero-duty imports under tariff-rate quotas were allowed in fixed quantities as a temporary measure bythe Government when imports of sugar at regular MFN rates proved insufficient to satisfy domesticdemand.
114.  112. The representative of Lithuania confirmed that his Government would apply its laws
and regulations governing the trading activities of State-owned enterprises and other enterprises with
special or exclusive privileges and would otherwise act in full conformity with the provisions of theWTO Agreement, in particular Article XVII of the GATT 1994 and the Understanding on that Articleand Article VIII of the GATS.  The Working Party took note of this commitment.WT/ACC/SPEC/LTU/8/Rev.2
Page 38
Free Zones, Special Economic Areas
115.  113. The representative of Lithuania said that no free economic zones were yet operational
in Lithuania.  A Law on Free Economic Zones had b een adopted in June 1995.  Each zone would be
established by separate law.  Certain activities would be prohibited in free zones, includingproduction, storage and sale of weapons, ammunition, explosives, dangerous and radioactivematerials, narcotics and poisonous substances;  manufacture of tobacco, spirits, securities, money andpostage stamps;  radio and television broadcasting;  hospitals;  gambling houses;  and organization oflotteries.  Licences would be required to carry out activities subject to authorization (see "TradingRights") within Lithuania.  Enterprises operating in  a free zone would be exempt from customs duties,
excise taxes and VAT, but would be subject to profit tax, payroll taxes (including social insurance),tax on land rent, stamp tax, taxes on natural resources and pollution tax (amendment of Law on FreeEconomic Zones of 2 April 1996).  An enterprise established in the zone would benefit from an80 per cent profit (income) tax reduction from the day of its registration for the first five years and a50 per cent profit (income) tax reduction for the subs equent five years.  If a foreign investor acquired
at least 30 per cent of the authorized (ownership) capital of an enterprise registered and operating inthe zone, and invested not less than US$1 million of capital of foreign origin, the enterprise would beexempt from profit (income) tax for 3 years after the enterprise began making a profit.  The enterprisewould benefit from a 50 per cent profit (income) tax reduction for the subsequent 10 years.
116.  114. Thus far, Parliament had adopted separate laws for the establishment of free
economic zones in three cities - Siauliai, Klaipeda and Kaunas.  In this connection, the Governmenthad organized tenders to select the company or group of companies to govern the zone, and asubsequent tender to determine the companies operating in the zone.  Both foreign and domesticcompanies could participate in these tenders, provided they prepared an entrepreneurship project,including estimates of proposed investment in the infrastructure of the zone.  Companies operating inthe zone would need to register as enterprises in accordance with Lithuanian legislation and theregistration should be duly recorded by the governing company of the zone.  Companies were notrequired to export part or all of their output to gain access to Lithuanian free zones.  The purpose ofthe free economic zones was to attract investment, not to introduce requirements to export.  Goodsbrought into the customs territory of Lithuania from a free economic zone would be subject to all lawsand other legal acts regulating the importation of goods from abroad, notably the application of importduties and taxes, as well as any prohibitions or restrictions of economic character.WT/ACC/SPEC/LTU/8/Rev.2
Page 39
117.  115. The representative of Lithuania confirmed that any free zones or free economic zones
would be fully subject to the coverage of the co mmitments taken in the Protocol of Accession, and
that Lithuania would ensure enforcement of its WTO obligations in those zones, including those
commitments derived from the TRIPS Agreement.  He also confirmed that, when goods produced orimported into the zones under the special tax and tariff regime existing in these areas enter into therest of Lithuania, normal customs formalities, tariffs and taxes would be applied.  The Working Partytook note of this commitment.
Government Procurement
118.  116. The representative of Lithuania said that a Law on Public (Government)
Procurement, consistent with WTO requirements, entered into force on 1 January 1997 andsupplementary legislation would be completed by the end of 1997.  The Law allowed domestic orforeign suppliers (contractors) to participate in procurement procedures.  Article 1, part 4 of the Lawallowed  the Government to give preference to goods, services and works 
(in connection with
construction and renovation) produced, effected or provided by enterprises registered in Lithuania,when this supply was important to the State for economic or social reasons.  However, such a decisionwould be passed in compliance with Lithuania's obligations under international agreements.  TheGovernment Procurement Agency was established in June 1997.  The Agency prepared regulationsrelated to the implementation of the Law on Public Procurement;  announced tenders;  coordinatedMinistries' activities related to procurement;  investigated complaints by suppliers;  etc.
119.  117. The representative of Lithuania confirmed that [Lithuania would initiate negotiations
for membership in the Agreement on Government Procurement upon accession by tabling an entity
offer at that time] [,upon its accession, his Government would notify the Committee on GovernmentProcurement of its intention to accede to the Agreement on Government Procurement and seekobserver status in that Committee.  He further confirmed that Lithuania would initiate negotiations formembership in the Agreement, by tabling an entity offer soon after the accession date
].  He also
confirmed that if the results of the negotiations were satisfactory to Lithuania and other members of
the Agreement, negotiations [would][might] be completed by [30 June 1999][the end of 1999].  TheWorking Party took note of these commitments.WT/ACC/SPEC/LTU/8/Rev.2
Page 40
Transit
120.  118. The representative of Lithuania said that Lithuania required submission of a security
or cash deposit which would normally be equal to the sum of import duties and taxes levied onimports.  The amount considered sufficient could be set at a higher level if the customs value or tariffclassification of the goods in transit co uld not be determined with certainty.
121.  119. The representative of Lithuania added that the Prime Ministers of the Baltic States
had signed a Resolution "On Via Baltica" on 13 February 1995, seeking to create a Baltic TransitSystem which would facilitate and simplify transit formalities for cargo traffic between the BalticStates.  The system would be based on, and could pave the way for, future accession to the EC-EFTASAD and Common Transit Conventions (1987).
122.  120. The representative of Lithuania confirmed that Lithuania would conform to the
relevant WTO provisions, including Article V of  the GATT 1994.  The Working Party took note of
this commitment.
Agricultural Policies
[Information on Domestic Support and Export Subsidies, circulated as document
WT/ACC/SPEC/LTU/2 of 30 July 1996 for background in formation purposes only.  Offer concerning
commitments on domestic support and export subsidies circulated as documentWT/ACC/SPEC/LTU/7 on 12 June 1997.  Revised commitments on domestic support and exportsubsidies were circulated in document WT/ACC/SPEC/LTU/7/Rev.1 on 17 October 1997.
Explanatory note on the tables 
circulated contained  in document WT/ACC/SPEC/LTU/7/Rev.1/ Add.1
on 9 January 1997 (to be circulated) .]
123.  121. Members of the Working Party asked Lithuania to outline the main direction of its
agricultural policies.  Specific questions were raised with respect to customs duties on agriculturalproducts, the enforcement of recommended purchase prices on some commodities, direct and indirectsupport measures, export subsidies, and measures in the sugar sector.  Lithuania was requested toprovide information on domestic support and export subsidies in agriculture in the format ofdocument WT/ACC/4.  A member noted that Lithua nia had implemented domestic support and export
subsidy programmes very recently and wondered why Lithuania had implemented programmes whichcould be in contrast with WTO provisions after deciding to join the organization.WT/ACC/SPEC/LTU/8/Rev.2
Page 41
124.  122. The representative of Lithuania said that agriculture was of exceptional economic and
social significance to Lithuania.  One third of Lithuania's population resided in rural areas and theproduction of primary agricultural commodities provided work for 23 per cent of the total employedworkforce in Lithuania.  Milk production was one of the most important economic activities inLithuania.  However, agricultural production was ha mpered by small-scale, inefficient farming and
marketing infrastructure.  Domestic prices for most agricultural commodities were below the worldmarket level, but prices for final products could sometimes be equal to, or higher than, world marketprices.  The Government aimed at creating a competitive agricultural sector and a viable ruraleconomy while minimizing the negative social and economic consequences during the period oftransition.  The average weighted tariff on major food products (milk, dairy products, butter, eggs,sausages and sugar) was 27.5 per cent.
125.  123. Some members were particularly concerned about subsidies granted in the form of
[government] purchases of agricultural production at "recommended" prices.  The representative ofLithuania explained that farmers were supported through the mechanism of minimum (recommended)purchase prices for wheat, flax, rape seeds, fodder for leguminous crops, pork, milk and high-qualitycattle.  The product coverage of the minimum price programme could be expanded in extremesituations. Prices were determined by average production costs in Lithuania and the market situationin neighbouring countries.  A subsidy element was added to the minimum prices within fixedpurchasing quotas for high quality produce.  Subsidies were channelled to farmers through theprocessors to reduce paperwork.  Subsidies were granted through the National AgriculturalDevelopment Programme and also through the Agriculture Support Fund, created in 1994 through theamalgamation of various existing funds such as the Sowing Fund.  Types of assistance also includedsoft credits and preferential loans (at 5 per cent annual interest) for farmers, support to tradeintermediaries and services providers, rebates on agricultural machinery, support for cooperativeefforts among farmers, ecologic farming and compensation for accidents and calamities.  The Statealso offered indirect support by financing land reclamation works, liming of soil, construction ofroads and other infrastructure, animal breeding and agricultural research and training.  Taxconcessions to the sector consisted of exemption from corporate profit tax and tax holidays onreclaimed land.  The Government also encouraged diversification in rural areas and afforestation.
126.  124. In 1997, the Government decided to channel 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 administration of State support to the agricultural sector.  The Ministry ofAgriculture and Forestry had established the Rural Support Fund.  The main purpose of the Fund wasWT/ACC/SPEC/LTU/8/Rev.2
Page 42
to create viable farms which would guarantee employment and income for farmers.  The Rural
Support Fund would facilitate a gradual move from price subsidies to maintaining producer incomethrough the application of price support and other economic measures on the main agriculturalproducts.  The Fund would also finance investment  programmes.  Some of the programmes financed
from the fund were:  the establishment of farmer and cooperative societies;  agro-services;  newtechnologies;  livestock breeding;  ecological (environmentally-friendly) farming;  structuraladjustment of marginally productive land;  and the development of quality systems for agriculturalproducts.
127.  125. A member noted that Lithuania subsidized certain agricultural exports and requested
Lithuania to bind its export subsidies at zero and use other, less distortive, forms of agriculturalsupport.  The representative of Lithuania explained that export subsidies were provided for storage ofsurplus production and improvement of marketing conditions.  In 1995, export subsidies had beenprovided for beef
 pork, pigs, butter, cheese and condensed milk at a budget cost of
Llt 28.8 27.8  million.  Lithuania had subsidized exports of beef, pork, butter, condensed milk, cheese,
vegetable oils, preserved meat and flour at a budget cost of Llt 75.6 million in 1997  Lithuania would
also subsidize exports of pork and dairy products in 1996 , and expected to continue applying such
subsidies in the future, especially in extreme market situations.  Export subsidies were not
administered as a regular programme, but were targeted at a specific, limited market segment both in
terms of product coverage and geographical location.  The product list included dairy and meat
products which were exported when surplus quantities accumulated in the domestic market, and these
surpluses could not be absorbed domestically due to  rising imports and declining purchasing power in
Lithuania.  The subsidized exports were destined for the Russian market.
128.  126. The representative of Lithuania stressed that Lithuania's agriculture regime was still
in a period of transition.  Lithuania was revising its agricultural policies and had developed a newsystem for domestic support to agriculture (outlined in paragraph 
126 124 ).  The Working Party
would be informed about the new policy and support measures once the new system had beenappropriately defined.
129.  127. Some members asked specific questions regarding measures affecting the sugar
sector, notably the possible introduction of minimum import prices and the opening of tariff-ratequotas for domestic processors.  Lithuania was reminded that Article VII of the GATT 1994 and theWTO Agreement on Agriculture prohibited the use of reference prices.WT/ACC/SPEC/LTU/8/Rev.2
Page 43
130.  128. The representative of Lithuania said that raw sugar (HS code 1701.11-1702.12) was
protected by tariffs of 35 per cent ad valorem  (minimum Litas 0.75 per kg), sugar (HS code 1701.91-
1701.99) by tariffs of 87 per cent, other sugar products (HS codes 1702.30, 1702.40, 1702.90) bytariffs of 35 per cent, and confectionery made of sugar (HS code 1704.10.11-1704.90.51,1704.90.61-1704.90.99) by tariffs of 25-30 per cent, and processors were provided seasonal softcredits.  Imports could also take place under tariff-rate quotas, but processors would first need toexhaust reserves of domestic sugar.  The zero-tariff quota was distributed by consensus among thefour domestic sugar refineries.  Producers of sugar had also been exempted from provisions of theLaw on Competition to allow the establishment of a producer association, but no such association hadbeen formed yet.  Lithuania intended to liberalize the sugar regime further when production had risento match domestic demand.
131.  129. The representative of Lithuania stated th at Lithuania intended to eliminate the
minimum import price on raw sugar before accession to the WTO.
[to be completed][Alcohol and Alcoholic Beverages
[132.  130. A member considered Lithuania's restrictions on trade in alcohol equivalent to
State-trading.  A distribution monopoly maintained by  the State could also distort import prices.  This
member asked Lithuania to provide the criteria upon which the licensing system for alcoholicbeverages was based and explain how Lithuania's re strictive import system could be consistent with
WTO rules.]
133.  131. The representative of Lithuania said that his Government had established a State
Tobacco and Alcohol Control Agency on 12 July 1996 in accordance with the Law on Health Systemand the Law on Alcohol Control.  The main functions of the Agency were to formulate and implementState policy in cooperation with Ministries and other governmental institutions with a view todiscouraging consumption and reducing its harmful effects on the population.  The Agency itself didnot engage in trade, but performed various trade-related administrative and monitoring tasks,including the issuance of activity licences, monitoring of adherence to legal requirements,establishment of additional marking procedures for imported alcoholic beverages, etc.WT/ACC/SPEC/LTU/8/Rev.2
Page 44
134.  132. Activity licensing was used to regulate trade;  separate licences were issued for
wholesale trade in alcoholic beverages produced in Lithuania, importation and retail trade.  In all,
during 1995 about 12,000 wholesale and retail licences had been issued, and about 11,000 wholesaleand retail licences in the course of 1996.  The Agency issued licences for importation and wholesaletrade in alcoholic beverages while retail traders obtained authorization from municipal authorities.The activity licensing for importation had been changed.  Parliament had approved the Law onAmendment and Supplement to the Law on Alcohol Control on 8 April 1997.  One of the purposes ofthe new Law was to harmonize the existing Law on Alcohol Control with the provisions of the WTO.
The new Law did not restrict the number of activity licences to import alcoholic beverages and did notrequire importers to limit their choice of imports to foreign companies included in the bulletins of the
Association of Manufacturers of Alcoholic Beverage s.  According to the provisions of the new Law,
there were no tenders for issuing activity licences for importation of alcoholic beverages or forengaging in domestic trade.  Activity licences for importation of alcoholic beverages wereaccordingly now granted to all applicants against payment of the stamp tax provided the companieswere registered in Lithuania, followed the regular procedures for obtaining a licence, and submittedall documentation required under Lithuanian law.  The conditions for new entrants had improved asno credit was given for prior experience as an importer.  In addition, the licences to engage inimportation, production, and wholesale and retail trade of alcohol of no more than 22 per cent alcoholcontent -  previously valid for one year only - were now of unlimited duration.
135.  133. Importers of alcoholic beverages paid an annual stamp tax for the right (licence) to
import.  The levies had been introduced to encourage responsible importers who would be prepared tofollow customs and tax procedures and pay the required tariffs and taxes, to avoid importation ofcounterfeit or low-quality products, to stimulate the consumption of lower alcohol content beverages,and for fiscal reasons.  When granting the activity licence the Government would specify the type  ofbeverage to be imported by a particular enterprise, i.e. vodka, vodka and other spirits, wine, etc., butnot the value or volume.  New rates of stamp tax had been established in June 1997 in accordancewith Government Resolution No. 640.  An activity licence, valid for one year, to import vodka and
other spirits cost 470,000 Litas (US$117,500);  for other beverages (except vodka) 380,000 Litas(US$95,000), and for wine 150,000 Litas (see Table 4 for a full list of these stamp taxes).  An activitylicence to import alcoholic beverages would also cover wholesale of the products.  Theimportation/wholesale licence also included a larger number of beverage brands (about 400) than awholesale licence for domestically-produced beverages (some 100-150 products).  The Governmentwas planning a review of the stamp tax system to see if it could be changed to reflect anyimprovements in the market situation.WT/ACC/SPEC/LTU/8/Rev.2
Page 45
136.  134. The State Tobacco and Alcohol Control Agency also issued activity licences for
domestic production.  The representative of Lithuania stressed that domestically-produced alcoholwas subject to the same restrictions and regulations as imported products with one exceptionconcerning the enterprise "Lietuviskas Midus" (Lithuanian Mead Brandy).  The activity licenceallowed the company to produce a special national mead brand ("Zalgiris") which alcohol contentexceeded 50 per cent.  This mead was also exported, while importation of beverages with alcoholcontent greater than 50 per cent was prohibited.
[
137.  135. A member stated that Lithuania's system of activity licensing appeared to restrict
trade in alcoholic beverages in a manner conflicting with the provisions of Article XI andArticle XVII of the GATT 1994.  The Government seemed  to play a controlling role in the selection
and limitation of firms engaging in trade in these products, in effect creating State-trading enterprises.Specifically, this member also noted that the company "Lietuvidkas Midus" held monopoly rights
on the production of high-alcohol beverage and considered this company a State-trading enterpriseunder Article XVII.]
138.  136. The representative of Lithuania replied that "Lietuviskas Midus Ltd." was a
cooperative consumers' enterprise producing mead in accordance with patented ancient recipes whichLithuania considered to be part of its national he ritage.  Thus, due to the fact that the enterprise
followed ancient traditions of manufacture and was the only enterprise in Lithuania whichmanufactured national beverages, the Government had granted "Lietuviskas Midus" the right tomanufacture one traditional alcoholic beverage until the year 2001.  The State did not provide thecompany with privileges or subsidies, and the company had no obligations towards the State.  Thecompany could import inputs for the production of mead without restrictions.  [Lithuania was
considering notifying "Lietuviskas Midus" as a State-trading enterprise.]
139.  137. Lithuania had established the legal basis for introduction of a State monopoly on
alcohol products in cases of force majeure (war, famine and natural disasters), a measure he felt couldbe justified under Articles XX(b) and (d).  The pres ent situation did not qualify as force majeure.  The
Law on Alcohol Control also authorized the introduction of production and import quotas for certain
alcohol products should the number of patients suffering from alcoholic psychosis exceed levelsestablished by the Ministry of Health.  However, these provisions had not been applied thus far.
140.  138. A member noted that excise taxes on imported and domestic beer were not equal.
The representative of Lithuania said that excise taxes were differentiated for certain domestically-produced and imported wine and beer in accordance with Government Resolution No. 328 ofWT/ACC/SPEC/LTU/8/Rev.2
Page 46
9 April 1997.  A lower rate of excise tax (0.2 Litas per litre) had been established for small producers
of beer, i.e. those with annual production below 100,000 dekalitres.  The representative of Lithuaniareplied that this preferential treatment was a tran sitional measure to be eliminated from the date of
accession to the WTO.  The Government was currently considering other, fully WTO-consistent,support measures for these enterprises.
141.  139. The representative of Lithuania said that the Ministry of Agriculture and Forestry
authorized imports of non-bottled alcoholic beverages and raw materials for alcoholic beveragesunder general tariff-rate quotas (30 per cent reduction of the tariff rate) opened in accordance with
Government Resolution No. 268 of 24 March 1997.  Permission was granted automatically uponpresentation of an application and a sales contract, but only to companies holding activity licences forthe production of alcoholic beverages, i.e. nine authorized producers (not necessarily "Stateenterprises") which had obtained licences from the State Tobacco and Alcohol Control Agency toimport alcohol and produce alcoholic beverages.  Enterprises not licensed for the production ofalcoholic beverages could import such raw materials at the MFN rate of duty.  The system had beenintroduced to fight illegal production of counterfeit alcoholic products.  Tariff quotas for imports ofethyl alcohol for technical uses were granted automatically to companies substantiating their needs.
[to be completed]]Trade-Related Intellectual Property Regime
142.  140. Some members of the Working Party asked Lithuania to describe its system of
protection of intellectual property in the light of the WTO Agreement on Trade-Related Aspects ofIntellectual Property Rights (TRIPS) and indicate areas which would be subject to new or revisedlegislation.  A member noted that Lithuania's intellectual property rights regime was still beingdeveloped and that the current regime did not meet all the requirements of the WTO, and requestedLithuania to accelerate its legislative process in order to ensure full implementation of the TRIPSAgreement at the time of accession to the WTO.
143.  141. Lithuania provided a note on TRIPS to the Working Party in document
WT/ACC/LTU/7 (Annex I) and a note on progress in implementing the TRIPS Agreement in
document WT/ACC/SPEC/LTU/10.  The status of Li thuanian legislation and the corresponding WTO
requirements, and planned steps to address obligations under the TRIPS Agreement are presented inWT/ACC/SPEC/LTU/8/Rev.2
Page 47
Table 11.   In response to specific questions, the representative of Lithuania said that national
legislation  - including laws on patents, industrial design, trademarks and service marks, the Law onCompetition, the Criminal Code and provisions of the Civil Code - largely corresponded to the basicprovisions of the TRIPS Agreement.  Lithuania's legislation on intellectual property contained noexceptions to the principle of national or MFN treatment.  Lithuania did not use the possibilitiesprovided in Article 6 of the Berne Convention and maintained no exceptional measures as providedfor under Article 4(d) of the TRIPS Agreement.
144.  142. Lithuania joined the World Intellectual Property Organization (WIPO) in 1992 and
the Paris Convention in 1994.  On 17 September 1996, the Seimas (Parliament of Lithuania) ratifiedthe Nice Agreement Concerning the International Classification of Goods and Services for thePurposes of Registration of Marks of 15 June 1957.  In the area of copyright and related rights,Lithuania joined the Berne Convention (Paris Act,  1971) in 1994, and intended to join the Geneva
Convention "On the Protection of Producers of Ph onogrammes Against Non-Authorized Duplication
of their Programmes" in 1998.  
Lithuania was preparing documents necessary for ratification of the
Rome Convention, expected towards the end of 1997  and the Rome Convention in 1997 .  Lithuania
had also concluded international agreements on intellectual property with Denmark, Norway,Switzerland, the United States and the European Patent Organization, and adhered to the MultilateralTrademark Law Treaty.
145.  143. Parliament had adopted a Law on the Amendment and Supplement to the Civil Code
in May 1994, covering copyright (Chapter 4) and neighbouring rights (Chapter 5).  However,
Lithuania had not yet been able to establish a legal basis for enforcement of copyright and
neighbouring rights.  Lithuania did not regulate, and had not established, a system for the collective
administration of rights for performers and producers of phonograms or producers of sound and visual
recordings.  Accordingly, Lithuania currently could not enforce Article 11 on Rental Rights and
Article 14.4 on Protection of Performers, etc. Author s, artists and creators had founded the Lithuanian
Copyright Protection Association (LATGAA) which was concluding agreements with similarorganizations in other countries.  Broadcasting organizations maintained copyright on radio andtelevision programmes according to Article 526(4) of the Civil Code.  Lithuanian law did not containprovisions on compulsory licensing of works and sound recordings.  Current legislation did notprovide rental rights for cinematographic works, computer programs or sound recordings, 
but such
rental rights would be provided for in a new La w on Copyright and Related Rights but Lithuania
intended to adopt a Law on Copyright and Neighbouring Rights to introduce such rental rights by
December 1997 .  A draft Law, corresponding to the regulations of international conventions on
copyright and neighbouring rights and the requirements of the TRIPS Agreement, had been preparedwith assistance from WIPO, 
and would be submitted to the Government by the end of 1997.  TheWT/ACC/SPEC/LTU/8/Rev.2
Page 48
protection of the rights of performers, phonogra m producers and broadcasting organizations would
correspond fully to the requirements of Article 14 of the TRIPS Agreement.
146.  144. Minor amendments to the Law on Trademarks and Service Marks and the Law on
Industrial Design to adjust to requirements of the TRIPS Agreement would be enacted in 1998.
Lithuania considered the exceptions in its law to the rights conferred by a trademark to be in
compliance with Article 17 of the TRIPS Agreement.  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 Article 7 and other provisions of the existing Law onCompetition.  However, Seimas was expected to adopt a new Law on 
Competition in the first half of
1998 during 1997 .  The representative of Lithuania said that the draft law contained provisions
regarding the use of geographical indications which complied fully with Articles 22 to 24 of theTRIPS Agreement.
147.  145. The representative of Lithuania said that the Law on Patents appeared to require
amendments, to be introduced in 1998, to incorporate the provisions of the TRIPS Agreement and the
Paris Convention regarding compulsory licensing of patented inventions.  Disputes regarding workingor non-working of a patent could be settled in Court.  Generally, importation of a patented productshould be considered equivalent to the use of a patent.
148.  146. The representative of Lithuania said that the Ministries and institutions involved in
the development of intellectual property rights legislation were accelerating their work.  TheGovernment had prepared a draft Law on the Protect ion of Layout Designs of Integrated Circuits,
conforming with Articles 35 to 38 of the TRIPS Agreement, and planned to submit the draft Law toParliament for approval 
in early 1998 by the end of 1997.   The Law on Legal Protection of Computer
Programs and Data 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 registered in Lithuaniaand guaranteed the rights of variety owners.  Lithuania was not a member of the International PlantVariety Protection Organization (UPOV) and would not join UPOV until varieties of Lithuanianbreeders had been recognized and registered in countries in western Europe.
149.  147. Intellectual property rights were enforced by civil action, unless the infringement was
considered a criminal violation.  Procedures were laid down in the Civil Code and the Code of Civil
Process of the Republic of Lithuania.  The La ws on Trademarks, Patents and Industrial Design
contained specific provisions regarding owners' rights to stop infringements and claims forWT/ACC/SPEC/LTU/8/Rev.2
Page 49
compensation;  remedies against violations of copyright and related rights were provided under the
Civil Code, the Criminal Code and the Code of Administrative Law Infringements.  Lithuania was
working to improve its system of administrative, civil and criminal remedies for infringements of all
types of intellectual property, and would ame nd the Criminal Code, and submit a draft Law on
Amendment and Supplement to the Code of Administrative Infringements to Parliament in early
1998.  The draft Law on Copyrights and Related Rights included a separate Article on provisional
measures.  Border enforcement of copyrights and other intellectual property would be strengthened
under a new Law on the Protection of Intellectual Property for Imported and Exported Goods, to be
introduced in 1998.
150.  The representative of Lithuania confirmed that his Government would fully apply the
provisions of the Agreement on Trade-Related Aspect s of Intellectual Property Rights (TRIPS) by the
date of its accession to the WTO without recourse to a transitional period.  The Working Party took
note of this commitment.
[148. Some members sought confirmation that Lithuania would apply the provisions of the
Agreement on Trade-Related Aspects of Intellectual Property Rights by the date of its accession to the
WTO, without recourse to any transitional period.]
149. The representative of Lithuania said that without major technical and financial assistance
from WTO Members, Lithuania would not be able to implement fully the TRIPS obligations upon the
date of its accession to the WTO, and would require a four-year transition period to bring its legal,
institutional and enforcement regimes fully into conformity with WTO requirements.  Although
Lithuanian legislation regulating the protection of industrial property (patents, industrial design,
trademarks and service marks, etc.), copyright, plant varieties, etc. nearly corresponded to the
requirements of the TRIPS Agreement, the system of institutions enforcing protection of intellectual
property had not been fully established and developed as required by Articles 41, 50 and 51.
Specifically,
Policies Affecting Trade in Services
[Reference to annexed schedule to GATS.  A revised offer of initial commitments on trade in services
circulated as document WT/ACC/SPE C/LTU/1/Rev.1 of 17 September 1997.WT/ACC/SPEC/LTU/8/Rev.2
Page 50
151.  150. The representative of Lithuania submitted to the Working Party a separate
Memorandum on the services regime (WT/ACC/LTU/5), an additional presentation(WT/ACC/LTU/9) and  supplementary information in document WT/ACC/LTU/10.  Thedocumentation outlined the market structure, regulatory framework and policies affecting servicesgenerally or in relation to specific sectors.  Concerning the development of services-relatedlegislation, he added that Lithuania had adopted several new laws or amendments during 1996,notably the Law on Insurance, Law on Public Trading of Securities, amendments and supplements tothe Law on Commercial Banks, Law on Constructio n, Law on Mass Media, the Civil Aviation Code,
Inland Transport Code, Road Transport Code and the Railway Transport Code.  Other significant newlegislation included Government Resolution No. 1550 "On Granting Licences to Provide TourismServices" and Government Resolution No. 94 providing regulations for research, conservation,reservation and restoration of cultural values.
152.  151. The representative of Lithuania said that requirements for the registration of an
enterprise were the same irrespective of the nationality of ownership, except that a foreign investorwould need to submit certificates of incorporation 
in the home country for legal persons,
documentation on the financial condition/status, and verification of the origin of the foreign capital.Foreign investment was permitted in all sectors with the exception of areas related to defence andnational security;  production and sale of narcotic substances, and other non-medicinal or poisonoussubstances having similar effects;  cultivation and sale of crops containing narcotic substances or
substances with similar effects; and the organization of lotteries.  The State Post Office was the onlyservice supplier with monopoly or exclusive rights;  its rights concerned collection and delivery ofletters, postcards and printed matter;  installation of letter collection boxes;  and issuance of postagestamps.  The State enterprise "Lietuvas Telekomas" no longer held exclusive rights to providetelecommunication services.
153.  152. The representative of Lithuania provided information on licensing of business
activities in the area of services in Table 3.2.  In addition, the establishment of a commercial bankrequired a licence issued by the Bank of Lithuania.  
The list of licensed activities had been
significantly reduced under a recent amendment of the Law on Enterprises on 25 September 1997.  A
licence was required for enterprises with less than 50 per cent State capital to engage in exploitation
of railways, ports, airports, State roads, pipelines, electricity and communication lines.  The
Government would amend the Law on Enterprises in the near future and as a result the number of
licensed activities would be reduced.WT/ACC/SPEC/LTU/8/Rev.2
Page 51
154.  153. Lithuania did not maintain any specific measures of horizontal nature which would
limit market access or national treatment in the financial services sector.  Permission from the Bank ofLithuania was required for foreign banks to establish subsidiaries or bank agencies.  According to theLaw on Commercial Banks of 21 December 1994, foreign banks could establish subsidiaries;  acquireshares of a new or operating bank (acquisition of a block of shares (10 per cent or more) in anoperating bank required the consent of the Bank of Lithuania);  and establish branches andrepresentative offices.  Domestic and foreign investors needed prior approval from the Bank ofLithuania to acquire 10 per cent or more of the shares in existing banks.  Minimum capitalrequirements were the same for domestic and foreign banks;  the minimum was set to increase fromECU 1.9 million (in Litas equivalent) to ECU 5.0 million on 1 January 1998.  Lithuania intended toapproximate its banking laws with European Communities' directives which could lead to furtherliberalization.  Foreign securities firms could conduct business through any legal form of enterprise inLithuania.
155.  154. Insurance services were provided by 32 35  companies, of which 4 6 included foreign
participation.  The State Insurance Company had held exclusive rights to issue all types of mandatoryinsurance and pensions insurance;  the company had been would be privatized under a new Law onInsurance.  The new Law  would codify the situation under which all exclusive rights for the StateInsurance Company had been eliminated.  Th e Law enabled foreign insurance companies to
established wholly-owned companies, joint-ventures  or subsidiaries provided the foreign insurance
company had permission from its own Government  to conduct insurance activities in foreign
countries.  Foreign financial institutions were permitted to deliver transportation insurance (maritimeand aviation) and reinsurance services across the border.  Insurance inter-mediation on behalf offoreign insurance companies was allowed for in termediaries registered in Lithuania.  
The
representative of Lithuania indicated that no commitment would be undertaken for the establishment
of foreign insurance companies, but this right was accorded on the basis of reciprocity.  Such cases
were covered by Lithuania's MFN exemption.
156.  155. Concerning the supply of professional services by foreigners, the Lithuanian Labour
Exchange issued work permits and would evaluate and fully recognize the qualifications of applicantsin accordance with the documentation submitted.  Lithuania had no agreements with other countriesregarding the recognition of qualifications.  Lithuania was developing licensing procedures forauditing services.  Auditors were required to pass a qualifications examination and receive a licenceissued by the Institute of Audit.  Legal services were regulated by the Ministry of Justice and could beprovided by advocates and lawyers licensed to engage  in such activities.  However, foreigners could
not act as defenders in criminal proceedings;  such services were reserved for advocates who werecitizens of Lithuania and included in a list of attorneys.  Foreign attorneys could represent clientsWT/ACC/SPEC/LTU/8/Rev.2
Page 52
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 RussianFederation, [Turkey] and Ukraine.  The limitations on citizenship, which were applicable to advocates(representing clients before the Courts), were not applied to lawyers wishing to engage in otherlawyers' practices.
157.  156. The Government established an annual quota on the number of foreign employees in
accordance with the Regulation on Temporary Employment of Foreigners of 13 February 1995.Employers applied to the Lithuanian Labour Exchange which would issue special visas and workpermits for foreigners. This regulation was not applied to intra-corporate transferees (managers,executives and specialists) working 1 to 2 years with a possibility of extension, or to business visitorsworking no longer than 3 months, for purposes related to the negotiation of contracts, training of staff,installing equipment and similar activities.
158.  157. Regarding  procurement of services by government agencies, the representative of
Lithuania said that the Law on Public Procurement (entering into force on 1 January 1997) includedprovisions on preferences for local suppliers.  The margin of preference would not exceed 15 per centof the value for goods and services, and 20 per cent for 
works (in connection with construction and
renovation). Lithuania had no agreements with thir d countries concerning government procurement of
services.
159.  158. The representative of Lithuania said that his Government was working with
responsible Ministries, organizations and Parliament to ensure that WTO requirements were reflectedin new laws and regulations.  Lithuania's services regime did not discriminate among services orservice supplier countries (Article II) except as pr ovided in economic integration agreements meeting
the standards of Article V of the GATS.  The Government provided full information on laws andregulations in the Official Gazette as required under Article III, and was drafting qualificationrequirements, technical standards and licensing requirements in accordance with the requirements ofArticle VI.
[to be completed]WT/ACC/SPEC/LTU/8/Rev.2
Page 53
Transparency
Publication of information on trade
160. [A member requested assurances from Lithuania concerning its ability to implement Article X
of the GATT 1994 and other notification and publi cation requirements on WTO Agreements.]  The
representative of Lithuania stated that according to  Lithuanian procedures legal acts could not be
enforced until they had been published in the Official Gazette.
159. The representative of Lithuania stated that according to Lithuanian procedures legal acts
could not be enforced until they had been published in the Official Gazette "State news".
161.  160. The representative of Lithuania stated that at the latest from the date of accession, all
laws, regulations, rulings, decrees and other normative acts related to trade would be promptlypublished in the Official Gazette or other official newspapers published by appropriate Ministries or
departments.  He stated further that no law, rule , etc. related to international trade would become
effective prior to such publication.  The Working Party took note of this commitment.
Notifications
162.  161. The representative of Lithuania said that at the latest upon entry into force of the
Protocol of Accession, Lit huania would submit all notifications (other than those required to be made
on an ad hoc basis) required by any Agreement constituting part of the WTO Agreement.  Any
regulations subsequently enacted by Lithuania which gave effect to the laws enacted to implementany Agreement constituting part of the WTO Agreement would also conform to the requirements ofthat Agreement.  The Working Party took note of this commitment.
Trade Agreements
163.  162. Some members of the Working Party asked Lithuania to provide information on
bilateral or regional agreements affecting trade and investment.  Some members wondered whetherthe free trade agreements covered substantially all trade.  Lithuania was asked to notify its free tradeagreements.  A member requested a copy of the Trilateral Agreement on Agricultural Trade betweenthe Baltic countries, including the specific market  access provisions for the removal of barriers among
the three countries.WT/ACC/SPEC/LTU/8/Rev.2
Page 54
164.  163. The representative of Lithuania said that Lithuania had negotiated Free Trade
Agreements (FTA's) with the European Communities, the European Free Trade Association (EFTA),Estonia and Latvia (a trilateral agreement), Ukraine, Poland, Slovenia, the Czech Republic, Slovakiaand Turkey (the latter had not entered into force).  Lithuania intended to conclude free tradeagreements with all CEFTA countries.  A Free Trade Agreement between Lithuania, Estonia andLatvia, covering industrial products, had entered into force on 1 April 1994 and a second part of theAgreement, on agricultural products, on 1 January 1997.  
Together, the two parts of the FTA Both
FTAs   provided for free trade (no interim measures) at zero tariffs among the Baltic States.
165.  164. Trade agreements providing for MFN treatment (conventional duties) had been
concluded with Australia, Belarus, Bulgaria, Ch ina, Cyprus, Cuba, Georgia, Hungary, Iceland,  India,
the Republic of Korea, [the Philippines], Romania, the Russian Federation, Slovakia, Slovenia,
Turkey, Uzbekistan, [ Venezuela]  and [ Vietnam] .  Conventional MFN duties were also applied on
imports from Canada, Japan, Kazakstan, Moldova, Tadjikistan and the United States.  Goodsoriginating in other countries were subject to autonomous customs duties.  Agreements on investmentpromotion and protection had been concluded with [Argentina], Austria, China, the Czech Republic,Denmark, Estonia, Finland, France, Germany, Greece, Israel, Italy, Kazakstan, Republic of Korea,Latvia, Netherlands, Norway, Poland, Romania, Spain, Sweden, Switzerland, Turkey, Ukraine,United Kingdom, Venezuela [and Vietnam].  Lithuania had also concluded an agreement with theMultilateral Investment Guarantee Agency.
166.  165. The representative of Lithuania said that the free trade agreements covered
substantially all trade.  Under the Lithuania/European Communities Agreement, tariffs wouldnevertheless remain on some agriculture and fishery products after the six-year transitional period toimplement the agreement.  This FTA had already been notified by the European Communities underArticle XXIV.  Preferential treatment was granted in the form of tariff-rate quotas for some products;quota amounts were listed in Annex XIII, and the respective in-quota tariff rates in Annex XII, of theFree Trade Agreement.  Tariff quotas in the contex t of preferential trade were only applied towards
the European Communities; the relevant implementing regulation (Government Resolution No. 205 of8 February 1995 and No. 515 of 26 May 1997) had been provided to the Working Party.  Thetariff-rate quotas concerned tariff positions HS 0201, 0202, 0203, 0406 and 1601.
167.  166. 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 thatthe agreement with EFTA States contained a smaller number of products subject to a transitionalWT/ACC/SPEC/LTU/8/Rev.2
Page 55
period and provided a specific date for the abolition of import duties on textile products.  The FTA
with EFTA included agricultural products, but the trade regime was based on reciprocal concessionsfrom the MFN level.  The FTA with EFTA had alre ady been notified by EFTA under Article XXIV.
The FTA with Ukraine stipulated MFN treatment for the majority of agricultural products, for the
remaining items the tariff was zero.  The Agreement included Annexes on rules of origin andadministrative cooperation which were signed in February 1994.  New rules of origin were inpreparation and would be similar to those established in the FTA's with the European Communities,EFTA and CEFTA countries.  The Parties of the Agreement committed to ensure free transit of goodsthrough their customs territory.  He stated that the Agreement with Ukraine was in conformity withthe provisions of GATT 1994.  [Some members requested Lithuania to supply the full text of itsAgreement with Ukraine.]
168.  167. A member noted that Lithuania applied export taxes which were differentiated
according to the market of destination and wonder ed whether Lithuania intended to maintain this
practice.  The representative of Lithuania replied that Lithuania maintained some export duties on abilateral basis  - on raw hides and skins and timber of oak and ash - in connection with the Free Trade
Agreements with the European Communities, the Czech Republic, Slovakia, Slovenia and a TrilateralFree Trade Agreement between Lithuania, Latvia and Estonia.  The Free Trade Agreement withPoland also allowed the possible use of export duties.  Exports of the affected products wereprohibited at the time of conclusion of these Free Trade Agreements and the introduction of exportduties (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 wasexempt from export duties or subject to lower rates.  He said that this practice could be justified underArticle XXIV of the GATT 1994
, and stressed that all export duties applied on the basis of bilateral
agreement would be eliminated by 1 January 2001.
169.  168. Preferential rules of origin were in place in the context of all free trade agreements.
The origin of goods was determined in accordance with list of rules applied for all products.Declarations of preferential origin, accompanied by a statement of an independent expert, were madeby the suppliers of materials or products in accordance with Government Resolution No. 110 of24 February 1993.  Simplified procedures had been established in the appropriate Protocols on theRules of Origin in the Free Trade Agreements concluded by Lithuania and were used when EUR.1movement certificates had been issued by approved exporters.WT/ACC/SPEC/LTU/8/Rev.2
Page 56
170.  169. The representative of Lithuania stated that his Government would observe the
provisions of the WTO including Article XXIV of the GATT 1994 and Article V of the GATS in itstrade agreements, and would ensure that the provisions of the WTO Agreements for notification,consultation and other requirements concerning preferential trading systems, free trade areas andcustoms unions of which Lithuania is a member are met from the date of accession.  The WorkingParty took note of this commitment.
Conclusions
171.  170. The Working Party took note of the expl anations and statements of Lithuania
concerning its foreign trade regime, as reflected in this Report.  The Working Party took note of theassurances given by Lithuania in relation to certain specific matters which are reproduced inparagraphs................................. of this Report.  The Working Party took note of the commitmentsgiven by Lithuania in relation to certain specific matters which are reproduced in paragraphs............................ of this Report.  The Working Party took note that these assurances andcommitments had been incorporated in paragraph .... of the Protocol of Accession of Lithuania to theWTO.
172.  171. Having carried out the examination of the foreign trade regime of Lithuania and in
the light of the explanations, commitments and concessions made by the representative of Lithuania,the Working Party reached the conclusion that Lithuania be invited to accede to the MarrakeshAgreement Establishing the WTO under the provisions of Article XII.  For this purpose, the Working
Party has prepared the draft Decision and Protocol  of Accession reproduced in the Appendix to this
Report, and takes note of Lithuania's Schedule of Specific Commitments on Services(document...............) and its Schedule of Concessions and Commitments on Goods (document ..........)that are annexed to the Protocol.  It is proposed that these texts be adopted by the General Councilwhen it adopts the Report.  When the Decision is adopted, the Protocol of Accession would be openfor acceptance by Lithuania which would become a Member thirty days after it accepts the saidProtocol.  The Working Party agreed, therefore, that it had completed its work concerning thenegotiations for the accession of Lithuania to the Marrakesh Agreement Establishing the WTO.
[to be completed]WT/ACC/SPEC/LTU/8/Rev.2
Page 57
APPENDIX
ACCESSION OF LITHUANIA
Draft Decision
The General Council,
Having regard to the results of the negotiati ons directed towards the establishment of the
terms of accession of the Republic of Lithuania to the Marrakesh Agreement Establishing the World
Trade Organization and having prepared a Protocol for the Accession of Lithuania,
Decides, in accordance with Article XII of the Marrakesh Agreement Establishing the World
Trade Organization, that the Republic of Lithuania may accede to the Marrakesh Agreement
Establishing the World Trade Organization on the terms set out in the said Protocol.WT/ACC/SPEC/LTU/8/Rev.2
Page 58
PROTOCOL OF ACCESSION OF LITHUANIA
TO THE MARRAKESH AGREEMENT ESTABLISHING
THE WORLD TRADE ORGANIZATION
Draft
The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to the
approval of the General Council of the WTO accorded under Article XII of the Marrakesh AgreementEstablishing the World Trade Organization (hereinafter referred to as the "WTO Agreement"), and theRepublic of Lithuania (hereinafter referred to as "Lithuania"),
Taking note of the Report of the Working Party on the Accession of Lithuania to the WTO in
document WT/ACC/LTU/...  WT/L...  (hereinafter referred to as the "Working Party Report"),
Having regard to the results of the negotiations on the accession of Lithuania to the WTO,
Agree as follows:
Part I - General
1. Upon entry into force of this Protocol, Lithuania accedes to the WTO Agreement pursuant to
Article XII of that Agreement and thereby becomes a Member of the WTO.
2. The WTO Agreement to which Lithuania accedes shall be the WTO Agreement as rectified,
amended or otherwise modified by such legal instru ments as may have entered into force before the
date of entry into force of this Protocol.  This Protocol, which shall comprise the commitmentsreferred to in paragraph ... of the Working Party Report, shall be an integral part of the WTOAgreement.
3. Except as otherwise provided for in the paragra phs referred to in paragraph ... of the Working
Party Report, those obligations in the Multilateral Trade Agreements annexed to the WTO Agreementthat are to be implemented over a period of time starting with the entry into force of that AgreementWT/ACC/SPEC/LTU/8/Rev.2
Page 59
shall be implemented by Lithuania as if it had accepted that Agreement on the date of its entry into
force.
4. Lithuania may maintain a measure inconsistent with paragraph 1 of Article II of the GATS
provided that such a measure is recorded in the list of Article II Exemptions annexed to this Protocoland meets the conditions of the Annex to the GATS on Article II Exemptions.
Part II - Schedules
5. The Schedules annexed to this Protocol shall become the Schedule of Concessions and
Commitments annexed to the General Agreement on Tariffs and Trade 1994 (hereinafter referred toas the "GATT 1994") and the Schedule of Specific Commitments annexed to the General Agreementon Trade in Services (hereinafter referred to as "GATS") relating to Lithuania.  The staging ofconcessions and commitments listed in the Schedules shall be implemented as specified in therelevant parts of the respective Schedules.
6. For the purpose of the reference in paragraph 6(a) of Article II of the GATT 1994 to the date
of that Agreement, the applicable date in respect of the Schedules of Concessions and Commitmentsannexed to this Protocol shall be the date of entry into force of this Protocol.
Part III - Final Provisions
7. This Protocol shall be open for acceptance, by signature or otherwise, by Lithuania until
.........
8. This Protocol shall enter into force on the thirtieth day following the day of its acceptance.9. This Protocol shall be deposited with the Director-General of the WTO.  The Director-
General of the WTO shall promptly furnish a certified copy of this Protocol and a notification ofacceptance thereto pursuant to paragraph 7 to each Member of the WTO and Lithuania.
10. This Protocol shall be registered in accordance with the provisions of Article 102 of the
Charter of the United Nations.WT/ACC/SPEC/LTU/8/Rev.2
Page 60
11. Done at Geneva this ... day of  .... one thousand nine hundred and ninety ......, in a single copy
in the English, French and Spanish languages each text being authentic, except that a Scheduleannexed hereto may specify that it is authentic in only one or more of these languages.WT/ACC/SPEC/LTU/8/Rev.2
Page 61
.ANNEXES
[to be completed]
.WT/ACC/SPEC/LTU/8/Rev.2
Page 62
ANNEX 1
Laws, Regulations and Other Information Provided to the Working Party by Lithuania
- Law on Enterprises of 8 May 1990, <No. I-196;
- Law on Prices of 26 July 1990, No. I-413;
- Law on Taxes on Profits of Legal Persons of 31 July 1990, No. I-442;
- Law on Partnerships of 16 October 1990, No. I-676;
- Law on Foreign Investment in the Republic of Lithuania of 29 December 1990, No. I-905;
- Law on Taxes on State Natural Resources of 21 March 1991, No. I-1163;
- Law on Spheres of Business Activity wherein Foreign Investment is Prohibited or Limited of
2 May 1991, No. I-1276;
- Law on Small Enterprises of 20 December 1991, No. I-2125;
- Law on Competition of 15 September 1992, No. I-2878;
- Law on Enterprise Bankruptcy of 15 September 1992, No. I-2880;- Law on Customs Tariffs of 27 April 1993, No. I-138;
- Cooperative Law of 1 June 1993, No. I-164;
- Law on Trademarks and Service Marks of 3 June 1993, No. I-173;
- Law on Foreign Currency in the Republic of Lithuania of 7 July 1993, No. I-202;
- Law on Value-Added-Tax of 22 December 1993, No. I-345;- Patent Law of 18 January 1994, No. I-372;
- Law on the Credibility of the Litas of 17 March 1994;
- Law on Excise Taxes of 12 April 1994, No. I-429;
- Company Law of 5 July 1994, No. I-528;
- Government Decision on Registration of Representation Offices of Foreign Enterprises and
Banks in the Republic of Lithuania of 31 May 1991, No. 223;
- Government Decision on Veterinary and Sanitary Requirements on Livestock, their Products,
Raw Materials and Fodder Imported into the Republic of Lithuania and Transported as Transitthrough its Territory of 27 April 1993, No. 284;
- Government Decision on the Approval of Vegetable Quarantine Regulations for Import and
Export of Goods of Vegetable Origin to and from the Republic of Lithuania and their Transit
through the Territory of the Republic of Lithuania of 3 August 1993, No. 599;
- Government Decision on More Stringent Regulations on Purchase and Sale of Waste and Scrap
of Ferrous Metals of 23 May 1994, No. 388;WT/ACC/SPEC/LTU/8/Rev.2
Page 63
- Government Decision on Order of Purchase in the Republic of Lithuania, Re-melting of Export
of Copper and other Non-ferrous Metals, their Alloys, Scrap and Waste of 29 June 1994,
No. 526;
- Government Decision on the Procedure of Commodity Export and Import Regulation in the
Republic of Lithuania of 14 October 1994, No. 985;
- New excise duties (January 1995);
- Law on the Amendment and Supplement to the Civil Code of the Republic of Lithuania,
No. I-459, 17 May 1994 (provisions on copyright);
- Law on the Fundamentals of Free Economic Zones, No. I-976, 28 June 1995;
- Law on Privatization of State-Owned and Municipal Property, No. I-1001, 4 July 1995;- Law Concerning Control of Im port, Transit and Export of Strategic Goods and Technologies,
No. I-1022, 5 July 1995;
- Agreement between the Government of the King dom of Norway and the Government of the
Republic of Lithuania concerning Trade in Agricultural Products;
 - Free Trade Agreement between the Swiss Confederation and the Republic of Lithuania;
- Free Trade Agreement between the Republic of Estonia, the Republic of Latvia and the Republic
of Lithuania;
- Agreement on Free Trade-Related Matters between the European Community, the European
Atomic Energy Community and the European Coal and Steel Community, of the one part, and
the Republic of Lithuania, of the other part;
- Schedule of tariffs approved by the Lithuanian Government's Resolution No. 443
(16 June 1993);
- Statistical data on imports into Lithuania of agricultural and food products;
- Statistical data on exports from Lithuania of agricultural and food products;
- Memorandum of Economic Policies of the Government of the Republic of Lithuania for the
period 1 October 1994 and 30 September 1997;
- Government Resolution No. 281 "On Partial Am endments to Resolution No. 985 "On Procedure
of Export and Import Regulation in the Republic of Lithuania" adopted by the Government of
the Republic of Lithuania on 14 October 1994" of 28 February 1995;
- Law on Commercial Banks No. I-720 of 21 December 1994;
- Law on State Regulation of Economic Relations  in Agriculture No. I-734 of 22 December 1994;
- Law on Trade No. I-747 of 12 January 1995;- Law on Alcohol Control No. I-857 of 18 April 1995 (as amended by 3 July 1995);
- Law on Sugar No. I-867 of 27 April 1995;
- Law on Foreign Capital Investment in the Republic of Lithuania No. I-938 of 13 June 1995;WT/ACC/SPEC/LTU/8/Rev.2
Page 64
- Government Resolution No. 35 On the Approval of the Order of Foodstuffs Imported into the
Republic of Lithuania and their Quality Control of 9 January 1995;
- Government Resolution No. 510 On Approving Provisional Regulations of Government
Procurement of 12 April 1995;
- Government Resolution No. 511 On Approving Regulations of Rendering Services of
12 April 1995;
- Government Resolution No. 635 On the General Or der of the Administration of Tariff Quotas
for Implementation and Exportation of Goods of 8 May 1995;
- Government Resolution No. 718 On the Restriction of Import of Certain Things (Goods) to the
Republic of Lithuania, their Export and Transit of 19 May 1995;
- Law on Industrial Design No. I-1006 of 4 July 1995;
- Government Resolution No. 205 On Enactment of the Free Trade Agreement between the
Republic of Lithuania and the European Communities, the European Atomic EnergyCommunity, and the European Coal and Steel Community of 8 February 1995;
- Government Resolution No. 1221 On Licensing Wholesale and Retail Trade in Import and
Export of Oil Products and Retail Trade in Liquid Gas of 14 September 1995;
- Government Resolution No. 1459 On licensing Import, Wholesale and Retail Trade in Alcoholic
Products of 17 November 1995;
- Government Resolution No. 1622 On Licensing the Production of Tobacco and its Products and
their Import into the Republic of Lithuania of 27 December 1995;
- Law on Insurance No. I-590 of 20 September 1990;
- Law on Plant Protection No. I-1069 of 19 October 1995;
- Law on Communications No. I-1109 of 30 November 1995;- Law on Tobacco Control No. I-1143 of 20 December 1995;
- Government Resolution No. 449 On the Approval of the Order of Customs Valuation of Goods
of 16 June 1993;
- Government Resolution No. 1114 On the Approval of Customs Duties of Bound Tariff Rates for
the Imported Goods of 26 September 1996;
- Regime of Import/Export Regulation in the Republic of Lithuania;- Law on the Legal Protection of Comput er Programs and Databases No. I-1188 of
30 January 1996;
- The Customs Code of the Republic of Lithuania of 6 June 1996;- Law on Metrology No. I-1452 of 9 July 1996;
- Law on Insurance No. I-1456 of 10 July 1996;
- Law on Public Procurement No. I-1491 of 13 August 1996;WT/ACC/SPEC/LTU/8/Rev.2
Page 65
- Government Resolution No. 751 On the Customs Assessment of Prices for Imported Goods of
25 June 1996;
- Free Trade Agreement between the Republic of Estonia, the Republic of Latvia and the Republic
of Lithuania on Trade in Agricult ural Products of 16 June 1996;
- Free Trade Agreement between the Republic of Lithuania and the Czech Republic;- Free Trade Agreement between the Republic of Lithuania and the Slovak Republic; - Free Trade Agreement between the Republic of Lithuania and the Republic of Slovenia;- Law on the Protection of Plant Varieties and Seed Cultivation No. I-1518 of 17 September 1996;- Law on Stamp Duty No. I-508 of 23 June 1994;
- Information on consular fees levied in accordance with the Law of 16 November 1994;- Draft Law on the Conformity Assessment System;  and- Government Resolution No. 384 On the Approval of Quarantine Regulations for the Production,
Transportation, Conservation, Sale and Utilization of Plants and Plant Products on the Territoryof the Republic of Lithuania of 25 March 1996.WT/ACC/SPEC/LTU/8/Rev.2
Page 66
Table 1
Privatization in Lithuania (1991 - 31 July 1997)
(includes fully and partially privatized enterprises)
Sectors of
economyStage I of privatization
1991 -August 1996Stage II of privatization
August 1996 -31 July 1997Percentage of
State capital in
sector which has
been privatized
Number of
enterprisesCapital value
(LTL million)Number of
enterprisesCapital value
(LTL million)
Industry 793 1,984.2 20 13.1 87%
Transport 161 128.2 2 0.015 31%
Construction 600 339.3 14 0.61 98%
Trade 1,721 226.9 45 3.38 77%
Public utility  345 34.8 5 0.262 29%
Services 991 57.5 5 0.234 98%
Other 1,103 612.1 67 4.0 96%
Total 5,714 3,383 158 21.6 73%
(average)
[Table 1(a):  Information on the Privatization Process of State Property
First Stage of the Process
(1 September 1991 - 31 December 1996)
DescriptionNumber of objects
(units)Capital (mln Litas *)
1. Total State property (except budgetary
institutions, apartment fund and agricultural
enterprises)8,065 13,547.4
2. Property included in a list of object to be
privatized according to the data provided by
founders6,787 11,697.6
3.Property included in privatization
programmes, via signing the shares:3,054 6,595.8
3.1 - for the employees of the enterprises 2,077 1,223.6
3.2 - percentage 68% 18.6%
4. Privatized via signing the shares: 2,942 2,627.7
4.1 - for the employees of the enterprises 1,887 860.5
4.2 - percentage 64.1% 32.7%
5. Comparing with those included in the
programmes of the privatization (4.3)96.3% 39.8%WT/ACC/SPEC/LTU/8/Rev.2
Page 67
DescriptionNumber of objects
(units)Capital (mln Litas *)
6. Property included into privatization
programmes, via auctions2,964 111.9
7. Privatized via auctions 2,726 79.1
8. Comparing with those included into
privatization programmes (7.6)92.0% 70.7%
9. Property expected to privatize via tenders 15 499.3
10. Privatized via tenders 12 368.1
11. Property expected to privatize for hard currency 61 40.9
12. Privatized for hard currency 44 27.7
13. Total State property included into privatization
programmes (3+6+9+11)6,094 7,247.9
14. Privatized State property (4+7+10+12) 5,724 3,102.6
15. Comparing with those included into
privatization programmes (14.13)93.9% 42.8%
16. Comparing with total property included in a list
of objects to be privatized (14.2)84.3% 26.5%
17. State capital purchased by investment joint-stock
companies737.6
18. Comparing with total privatized capital (17.14) 23.8%
19. Total State capital in privatized objects (until
privatization)6,904.1
20. Comparing with total capital included in a list of
objects to be privatized (19.2)59.0%
21. State property remained after the initial
privatization and purchased according to
Government Resolution No.1063803 284.5
22. Comparing with total privatized property (21.14) 14.0% 9.2%
23. Total privatized State capital (4+7+10+12+21) 3,307.1
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 privatization437 2,966.5
Notes:
1. Number of the investment accounts opened fo r the population is 2.5 million.  Amount of the
means after indexation was 10,504 million Litas.
2. 17 special enterprises were included into privatization programme.  State capital of these
enterprises amounts to 3,825 million Litas .
*4  Litas  = US$1
]WT/ACC/SPEC/LTU/8/Rev.2
Page 68[Table 1(b):  Information on the Privatization Process of State and Municipalities Property
Second Stage of the Process
(August 1996 - October 1997)
Step Undertaken National
Security
FundMinistry of Districts Municipalit
iesTourism
Dept. Total
National
EconomyAgriculture
and
ForestryConstruction
and Urban
PlanningTransport Communicatio
ns and
InformaticsOthers
Enterprises included in
a list of objects to be
privatized254 81 12 50 34 11 25 2 675 5 1,149
Enterprises later
excluded from the list
of objects to be
privatized5 4 1 1 4 15
Enterprises included in
privatization
programmes:187 34 4 10 22 9 5 283 3 557
auctions 187 30 4 10 16 9 5 275 1 537
tenders 3 62 11
leasing 8 8
direct negotiations 1 1
Suspended
privatization3 1 1 1 6
Privatized enterprises: 77 6 2 6 1 3 113 208
auctions 77 6 2 6 1 3 108 203
leasing 5 5
Incomes (thou. Litas )11,792.78 526.29 0.00 495.07 12,292.47 180.00 2,678.71 0.00  4603.43 0.00 32,568.74
]WT/ACC/SPEC/LTU/8/Rev.2
Page 69
[Table 1(c):  Progress in Privatization of Up and Downstream Industries in Lithuanian Agriculture
(January - September 1997)
Enterprise Statutory
Capital
mln. Llt.Structure of  Share Capital Shares
sold by
9/97
mln. Llt.
State % Employee
%Farmers
%
Agroservice Enterprises - 27 46.17 6.89 50.65 42.47 19.61
Flax Selection Enterprises - 9 8.24 0.86 56.08 43.06 3.55
Meat Processing Enterprises - 14 102.15 17.54 54.13 28.32 28.93
Dairy Processing Enterprises - 38 281.15 23.31 45.70 31.00 87.14
Fruits and Vegetables Processing - 2 2.05 2.60 50.51 46.88 0.96
Grain Processing Enterprises - 21 147.34 3.28 50.95 45.77 67.43
Sugar Processing Enterprises - 4 98.52 9.29 45.57 45.14 44.47
Total - 115 Enterprises 685.62 14.69 48.54 36.77 252.09
]WT/ACC/SPEC/LTU/8/Rev.2
Page 70[Table 2:  List of Goods and Services Subject to Price Control
Code according Items subject to price control Institution applying
controlReasons and perspectives for control
HS NACE
12 3 4 5
 -   - Price of land sold by the State, price of land for computing of
land tax and land lease taxGovernment Regulation of land price is related to the restitution of
the rights to private land ownership. Having
implemented land reform and having restored property
ownership, the regulation of prices for land will be
abolished.
- - Tax tariffs for lease of the State-owned land and the
State-owned water reservoirsGovernment Regulation is related to the State ownership for these
items.
4010 Electricity production and transmission Suppliers of electricity
in coordination with
the independentCommission of
Energy Resources'
Prices and Energy
ActivityControlled because of absence of sufficient competition
in the market.
 4020 Distribution of gas fuel (including only the distribution of
natural gas)Suppliers of natural
gas in coordination
with the independent
Commission of
Energy Resources'Prices and Energy
ActivityControlled because of absence of sufficient competition
in the market.
4030 Supply of heat and hot water Suppliers of heat and
hot water incoordination with the
independent
Commission ofEnergy Resources'
Prices and EnergyActivityControlled because of absence of sufficient competition
in the market.WT/ACC/SPEC/LTU/8/Rev.2
Page 71Code according Items subject to price control Institution applying
controlReasons and perspectives for control
HS NACE
12 3 4 5
Prices and tariffs for goods and services of economic entities
having a dominant position in the market:
2412 - mineral fertilizers; State Competition and
Consumer Protection
OfficeControlled because of a dominant position in the
market.
2694 - cement;
1410 - limestone; Having adopted the new Law on Competition, this price
control will be abolished.
1410 - limestone-powder.
4100 Extraction, distribution and cleaning of water Local governments Controlled because of a monopoly position of the
enterprises.
6010 Transportation of passengers by local railway routes Ministry  of Transport Controlled because of a monopoly position of the s tock
company "Lithuanian railways".
6021 Transportation of passengers by other type of land transport
(passenger buses of local and long distance routes)Ministry of Transport
and Local
governmentsSubsidised 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 Transport It is planned to liberalise prices for these services .
6323 Control activities of the airpor t 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 Transport Controlled because of a monopoly position of the
airports.
6210 Transportation of passengers by air transport Ministry of Transport 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 Transport Controlled because of a monopoly position in the
market.WT/ACC/SPEC/LTU/8/Rev.2
Page 72Code according Items subject to price control Institution applying
controlReasons and perspectives for control
HS NACE
12 3 4 5
6411 Postal services of the National post office (collection,
transportation and delivery of letters, postcards, printed matter,sekograms, aerograms, small packages; receiving and payment ofmoney orders; supply of postal cash (giro) banking operations;
delivery (payment) of pensions and allowances)Ministry of
Communications andInformation
TechnologySubsidised 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
Communications andInformation
TechnologyServices of social importance, controlled because of a
monopoly position of the State enterprise "Lithuanian
Telecom".
70 House rent prices of local govern ments' apartments Local governments Controlled in order to protect consumers from
unreasonably high prices.
9000 Transportation of garbage and liquid sewage, care of courtyard
territoryLocal governments Controlled in order to protect consumers from
unreasonably high prices
6340,
10Maximum tariffs for services provided by customs intermediators State Competition and
Consumer ProtectionOfficeIn order to abolish tariffs control the draft Government
Resolution is under preparation now.
7492 Tariffs for apartment security services (Vilnius, Klaipëda) Security Police
Divisions under ChiefPolice CommissariatsServices of specific character, absence of sufficient
competition.
 7422 Tariffs for services of legalisation of potential dangerous
equipment, produced in Lithuania or imported, and tariffs for othersimilar servicesTechnical Supervision
Service under theMinistry of Social
Security and LabourServices of specific character, absence of sufficient
competition.
 - Tariffs for services on issuing of a number of publisher of local
credit card, a code of drafter of technical documents and of anassortment number of canned foodLithuanian Standards
Board under theMinistry of PublicAdministration andLocal AuthoritiesServices of specific character, absence of sufficient
competition.
7422 Tariffs for issuing of quality certificates State Quality
Inspection under the
State Competition and
Consumer ProtectionOfficeServices of specific character, absence of sufficient
competition.WT/ACC/SPEC/LTU/8/Rev.2
Page 73Code according Items subject to price control Institution applying
controlReasons and perspectives for control
HS NACE
12 3 4 5
 851 Tariffs of health care services for persons, supported by
government or local government and provided by government or
local government health care institutionsMinistry of Health Care Controlled in order to protect consumers from
unreasonably high prices
 851 Tariffs for paid (private) health care services, provided by
government or local government health care institutionsMinistry of Health Care Controlled in order to protect consumers from
unreasonably high prices
30.03;
30.04Maximum trade mark ups for medicines Ministry of Health Care Controlled in order to protect consumers from
unreasonably high prices.
 523 Retail prices for medicines an d medical materials of necessary
assortment (about 350 items)Ministry of Health Care Controlled in order to protect consumers from
unreasonably high prices.
 851 Prices for services provided by profit seeking institutions. These
prices can not exceed 60% of prices set for services of the StateinstitutionsMinistry of Health Care Controlled in order to protect consumers from
unreasonably high prices.
Basic prices of compensated medicine and medicine materials Ministry of Health Care Controlled in order to protect consumers from
unreasonably high prices.
- - Minimum prices for standing (non-cut) timber according to the
kinds of wood, finished wood and woodshed timberMinistry of Agriculture
and ForestryMinimum prices are set in order to avoid abuse of
unreasonably low prices set by the State forestries.
44. 03
44. 0644. 0344. 0344. 0344. 0344. 03
44. 01Minimum prices for round timber, set according to kinds of
assortment:
-- cut logs, including timber;
--  logs for railway sleepers;--  matchwood;
--  paperwood;
--  logs for package production;--  thin-logs;
--  wood for slabs;
--  fire-wood according to the groups of changeabilityMinistry of Agriculture
and ForestryMinimum prices are set in order to avoid abuse of
unreasonably low prices set by the State forestries.
44. 03 Fixed prices for veneer raw material Ministry of Agriculture
and ForestryExclusive position in the market, absence of sufficient
competition.
]WT/ACC/SPEC/LTU/8/Rev.2
Page 74
[Table 3.1:  Licensing of Business Activities in Lithuania:  Goods-Related Activities
Business Activity Licence Required
1. production of weapons, ammunition, explosives and pyrotechnics;
repair of weapons unless the laws provide otherwise;
1. 2. pharmaceutical activity;
2. 3. cultivation and sale of crops containing narcotic, highly effective
or poisonous substances; import and export of the narcotics and
highly effective substances, wholesale and retail trade in
Lithuania;
3. 4. production of alcohol products which do not exceed 22% of ethyl
alcohol by volume;
4. 5.import of alcohol products to Lithuania, wholesale and retail trade
by alcohol products;
5. 6. production of tobacco products , import of tobacco and tobacco
products to Lithuania  wholesale trade;
6. 7. purchasing and remelting  of copper and other  non-ferrous metals,
its alloys, scrap and waste in Lithuania;
7. 8. purchasing of ferrous metals scrap and its waste in Lithuania;
8. purchasing and processing of precious metals waste and scrap;
9. manufacturing, import and export of the narcotics and highly
effective and poisonous substances (which are not used for
pharmaceutical purposes), wholesale and retail trade by its in
Lithuania;
10. import of special foodstuff and f ood additives, wholesale trade by
its in Lithuania;
11. 9. production of seals, stamps, hunting knives ;
12. trade by the transport means on the commission bases; projecting,
production, instillment, assembling and exploitation of the
protective fire-signalling;
13. 10. production, import , transportation, wholesale trade, usage , and
storage and burying  of the  dangerous chemical, nuclear or
radioactive materials which can harmfully act the environment
listed by the Ministry of Environment Protection;  gathering,
making harmless, storage and burying of waste thereof;Licence required for
domestic and foreign
interests.  Licences foractivities (2), and (9)
 (3) are
available only for domesticinterests.
14. commercial activity related with the precious metals and jewels;
15. 11. import, export, wholesale and retail trade by the non-packed oil
products listed by Government; retail trade by the liquefied gas;
16. 12. selling  import of sports and hunting firearms, ammunition,
weapons, explosives and  pyrotechnics (listed by the Ministry of
Interior), civil weapons and amm unition;  retail trade (excluding
pistols and revolvers and ammuni tion thereof for self-defence);
13. publishing of securities and document forms
17. export of raw wood;
18. import and production of biological plants protection measures
and trade by its;
19. trade in antiquarian pieces;WT/ACC/SPEC/LTU/8/Rev.2
Page 75
Business Activity Licence Required
1. manufacturing of weapons, ammunition and explosives
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  securities,  monetary signs and coins, post-stamps;
 3. transportation, usage or other activity related with radioactive,
nuclear material and waste thereof.
 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
enterprises, local enterprises
and special enterprises
2. production, import and realization of the highly effective
substances which are not of medicinal destination.WT/ACC/SPEC/LTU/8/Rev.2
Page 76
Table 3.2:  Licensing of Business Activities in Lithuania:  Services
Business Activity Licence Required
1. prospecting of natural resources;
2. the exploitation of natural resources;
3. repair of sports and hunting firearms, weapons;
4. 1. pharmaceutical activity;
5. 2. providing of medical services, medical treatment and hygiene
practices  unless the laws provide otherwise;
3. training and education activity
6. 4. veterinary practice;
7. lawyer practice, unless the laws provide otherwise;
8. establishment of educational institutions, enterprises  and institutions
engaged in the healthiness activity;
9. 5. carrying out of geodetic and topographical works, publishing and
printing of topographical plans and maps as well as cartographic
charts ;
10. 6.passenger transportation in Lithuania;  passenger activity by the
international transportation, unless the laws provide otherwise;
11. tourism services;
12. 7. organizing of lotteries assigned for charity and support purposes ;
13. 8. providing of communication services using of common network of
telecommunications lines and stations;
14. construction and exploitation of the installations radiating
electromagnetic waves;
15. researching, preservation and restoration of immovable cultural
values; preparation of the conditions, programmes and projects of
such works; preservation and restoration of movable cultural values;
16. projecting and construction of the State roads;
17. 9. establishment and exploitation of the shooting-galleries and stands of
hunting shooting;
18. mediation activity in the public turnover of stock exchange;
19. stock exchange activity;
20. investment and reinvestment to securities and trade by its as a main
activity; possession of the investments companies property, unless
the laws provide otherwise;
21. 10. energetic activity;Licence required for
domestic and foreign
activity  interests.  Licences for
activity (12)  (6) are available
only for domestic interests.
22. inventory of the forests and preparation of the forestry projects;
23. the forwarding agent services providing in the air and railway
transport;
24. 11. ship tugging  agency services;
25. rescuing and underwater technical works;
26. lockman services;WT/ACC/SPEC/LTU/8/Rev.2
Page 77
Business Activity Licence Required
27. 12. fulfilment of audit;
28. mediation services for a giving a job;
29. real estate activity;
30. provision of  insurance services  activity;
13. tourism services.
1. treatment of patients ill with infectious diseases listed in the
2. treatment of animals ill with especially dangerous diseases;
3. 1. post work (only the State enterprise "Lietuvos pastas");
4. 2. accepting and paying off of pos tal orders (only the State
enterprises "Lietuvos pastas");Activities reserved for State
enterprises,
local enterprises and special
enterprises
1. to exploit railway, ports, airports and State roads; Activities with minimum
2. to exploit gas-pipes, pipelines, communication lines, electric
transmission lines, heat network of State importance and to
ensure technical functioning of such objects.50 per cent State ownershipWT/ACC/SPEC/LTU/8/Rev.2
Page 78
][Table 4:  Rates of Stamp Tax Established in Accordance with
Government Resolutions No. 1123 of 11 November 1994 and No. 640 of 23 June 1997
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)
(b) Alcoholic beverages except vodka Llt. 380,000 (US$95,000)
(c) Wine (not exceeding 22% of volume concentration of 
ethyl alcohol) and beer Llt. 150,000 (US$37,000)
(d) Beer Llt. 30,000 (US$7,500)
2. For issuing a licence to engage in wholesale of alcohol 
produced in Lithuania (for the term of one year):
(a) Alcoholic beverages exceeding 22% of volume 
concentration of ethyl alcohol) (licence includes also beer 
and wine)Llt. 15,000 (US$3,750)
(b) Alcoholic beverages not exceeding 22% of volume 
concentration of ethyl alcohol Llt. 5,000 (US$1,250)
(c) Beer Llt. 3,000 (US$750)
3. For issuing an activity licence for importation and 
wholesale of tobacco (for the term of one year) Llt. 6,000 (US$1,500)
4. For issuing an activity licence for importation and 
wholesale of tobacco products (for th e term of one year) Llt. 15,000 (US$3,750)
5. For issuing an activity  licence for importation and for 
wholesale of imported oil products: petrol, liquid fuel, 
kerosene, aircraft fuel, diesel fuel and lubricants (for 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 stationLlt. 3,000 (US$750) for each
qualify of petrol, diesel fuel and
liquid fuel
8. For issuing a licence to engage in retail trade of lubricants Llt. 1,000 (US$250)
]WT/ACC/SPEC/LTU/8/Rev.2
Page 79
[Table 5:  General Tariff Quotas Applied by Lithuania * in Accordance with
Government Resolution No. 896 of 7 Augu st 1997
Government Resolution No. 1367 of 9 December 1997
HS Code **
of group of goods*Description of group of goods Institution Issuing Quotas
0101 11, 0102 10,0103 10, 0104 10 10,0104 20 10Pure-bred breeding animals Ministry of Agriculture and Forestry
0105 11,
0105 12 10,  0105 12 00,
0105 19 20,0105 19 90Pure-bred breeding poultry Ministry of Agriculture and Forestry
0106 00 10,
0106 00 90Other live pure-bred breeding animals Ministry of Agriculture and Forestry
0201, 0202, 0203 Meat of bovine animals, pork Ministry of Agriculture and Forestry
***
0405 Butter Ministry of Agriculture and
Forestry***
0407 00 11,
0407 00 19Pure-bred breeding birds’ eggs for
hatchingMinistry of Agriculture and Forestry
0511 99 50,
0511 99 80Semen of stallions, boars, ram,
he-goats, embryo of bovine animalsMinistry of Agriculture and Forestry
0701 Potatoes Ministry of Agriculture and
Forestry***
1001-1004 Cereals Ministry of Agriculture and
Forestry***
1101 Wheat flour Ministry of Agriculture and
Forestry***
1104 Cereal grains otherwise worked Ministry of Agriculture and
Forestry***
1214 90 91,
1214 90 99Compound feed Ministry of Agriculture and
Forestry***
1107 10 Malt, not roasted Ministry of Agriculture and
Forestry***
1502 Fats of bovine animals, sheep or goats Ministry of Agriculture and
Forestry***
1701 11 10-1701 12 90Raw sugar, for refining Ministry of Agriculture and
Forestry***,
Ministry of National Economy
1701 91,1702 30,1702 40,1702 90Sugar for special purpose Ministry of Agriculture and Forestry,
Ministry Health Care
1701 99 Sugar Ministry of Agriculture and
Forestry***,
Ministry of National Economy
2207 10 Technical ethyl alcohol (spirits for
technical uses)State Tobacco and Alcohol Control
AgencyWT/ACC/SPEC/LTU/8/Rev.2
Page 80
HS Code **
of group of goods*Description of group of goods Institution Issuing Quotas
2207 20 Denatured ethyl alcohol State Tobacco and Alcohol Control
Agency
5301 Flax tow Ministry of National Economy,
Ministry of Agriculture and Forestry
ex 7010 91 10,
ex 7010 92 10Preserving jars of glass of 0.35 and
3 litresMinistry of Agriculture and Forestry,
Ministry of Construction and
Urbanistic
7010 91 21,
7010 92 21,7010 93 21,7010 94 20,7010 94 60Irregular transparent glass bottles Ministry of Agriculture and Forestry
Ministry of Construction and
Urbanistic
9401, 9403 Special furniture for ships Ministry of Transport***
* Tariff quotas are approved by the Government.
** Commodities' c odes are given according to the EEC Ha rmonized Commodity Description and
Coding System.
*** Tariff quotas are approved by the Government upon recommendation of the Ministry of
Agriculture and Forestry. The quotas are  granted by the way of  tender.
*** The quota shall be issued for the furniture (not more than Llt. 1.1 million) designed for the ship to
be built by the State Shipyard Company " Baltija" (code in the enterprises register - 40 34645) in
1997. ]WT/ACC/SPEC/LTU/8/Rev.2
Page 81
[Table 6:  Fees and Charges for Services Rendered Relating to Importation or Exportation
1. Formalities in connection with placement of one consignment
of goods under one of the following customs procedures:
(a) Exportation (including re-exportation) Llt. 22 (Llt. 1 - US$0.25)
 (b) Importation (including re-importation and customs
warehousing)Llt. 33
(c) Temporary admission and temporary exportation Llt. 55
(d) Inward processing and outward processing Llt. 110
2. Issuance of one certificate of origin Llt. 28  25
3. Issuance of stickers used for marking of imported alcoholic
beverages and tobacco goods (under one request) Llt. 22  20
4. Issuance of authorization for inward processing Llt. 221  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
]WT/ACC/SPEC/LTU/8/Rev.2
Page 82
[Table 7:  Excise Taxes Levied in Lithuania According to
Government Resolution No. 328 (9 April 1997)
Commodity
codeCommodity description Taxes (by percentage of taxable
value or absolute Llt  for indicated
measurement unit*)
2207.10.00.0; 2208
(except
2208.90.69.1;
2208.90.69.3)**Undenatured ethyl alcohol and alcoholic
beverages, except for meads, champagne, wine,
beer and some medicines with herbs containing
ethyl alcoholLlt. 0.43 per 1% of an alcoholic
strength by volume per one litre
2208.90.69.1 Meads Llt. 0.12 per 1% of an alcoholic
strength by volume per one litre
2204.21.11.0-2204.21.80.0,
2204.29.21.0-
2204.29.75.0,2204.30, 2206,
2205.10.10.0,2205.90.10.0Wine of an alcoholic strength by volume of 13%
vol, and other fermented beverages (excluding
beverages (code 2206.00.89.0) produced by the
company “Lietuviskas midus”)Llt. 0.12 per 1% of an alcoholic
strength by volume per one litre
2204.21.81.0-
2204.21.94.0,
2204.29.81.0-
2204.29.94.0,
2205.10.10.0,
2205.90.10.0Wine and vermouth of an alcoholic strength by
volume of more than 13% vol, but not exceeding
18% volLlt. 0.17 per 1% of an alcoholic
strength by volume per one litre
2204.21.95.0-
2204.21.99.0,2204.29.95.0-
2204.29.99.0,
2205.10.90.0,
2205.90.90.0Wine and vermouth of an alcoholic strength by
volume exceeding 18% volLlt. 0.28 per 1% of an alcoholic
strength by volume per one litre
2204.10,
2204.21.10.0,2204.29.10.0Champagne and wine of increased pressure Llt. 0.35 per 1% of an alcoholic
strength by volume per one litre
2203 Beer Llt. 0.40/litre***
2402.20.10.0-
2402.20.90.0Cigarettes with and without filters Llt. 12 for 1000 units****
2402.10.00.0,
2402.90.00.0,
2403****Packed smoking tobacco and other tobacco
products50
2710.00.27.0-
2710.00.37.0Motor fuel/petrol Llt. 100, but not less than llt 800
per ton*****
2710.00.51.0,2710.00.55.0,2710.00.66-
2710.00.68Jet fuel, kerosene, gas oils (diesel fuel), liquid
furnace fuelLlt. 40, but not less than llt 300
per ton*****
2710.00.87.0-2710.00.97.0,
2710.00.98.9All types of lubricating oils except for fuel oil
M-100 classified in the following subheading
2710.00.98.0Llt. 8, but not less than Llt. 180
per tonWT/ACC/SPEC/LTU/8/Rev.2
Page 83
Commodity
codeCommodity description Taxes (by percentage of taxable
value or absolute Llt  for indicated
measurement unit*)
1806.20.10.0-1806.20.80.0,1806.31-
1806.90Chocolate and other food products containing
cocoa, except cocoa powder and productscontaining less than 18% by weight of cocoa
butter10
0901 Coffee 10
7113, 7114,
7116Articles of jewellery and parts thereof, of
precious metal or of metal clad with precious
metals, articles of goldsmiths’ or silversmiths’wares and parts thereof, of precious metals or
metal clad with precious metals, articles of
natural or cultured pearls, precious or
semi-precious stones-natural, synthetic or
reconstructed10
8703.21.10.1,
8703.21.90.2,
8703.22.19.1,
8703.22.90.2,8703.23.19.1,
8703.23.90.2,
8703.24.10.1,
8703.24.90.2,
8703.31.10.1,8703.31.90.2,
8703.32.19.1,
8703.32.90.2,8703.33.19.1,
8703.33.90.2Luxury motor cars, not older than 5 years
(except for special cars) specified in the list of
State Agency of Competition and Consumer
Rights Protection under the Government of
Lithuania15 from price exceeding
Llt. 60,000
2716.00.00.0 Electricity 1
4901.10.00.1,4901.99.00.1,
4902.10.00.1,
4902.90.10.1,
4902.90.30.1,4902.90.90.1,
4908.10.00.1,
4908.90.00.1,4909.00.10.1,
4909.00.90.1,
4910.00.00.1,
4911.10.10.1,
4911.10.90.1,4911.91.10.1,
4911.91.80.1,
4911.99.00.1,
9504.40.00.1Erotic and violence propagating publications 50
* The taxable value shall be:
- sale price free from excise tax and VAT of commodities produced in Lithuania;
- customs value, including duties, of imported commodities.
** Commodity codes are presented according to the HS (1997) codes.WT/ACC/SPEC/LTU/8/Rev.2
Page 84
*** Excise tax - Llt. 0.2 per litre - shall be levied on beer produced and sold by each Lithuanian beer
manufacturing company producing 100 thousand decalitres per year (this provision shall be
applied until Lithuanian Membership of the World Trade Organization).
**** Excise tax - Llt. 15 for 1000 units - shall be levied on cigarettes of highest quality produced in
Lithuania and imported (until 30 September 1997  31 December 1997). Excise tax shall not be
levied on tobacco (Code 2403.10.90.1) imported by the joint-stock company “Philip Morris
Lietuva” and by the company “House of Prince Lietuva”.  In the case when imported tobacco in
these companies is used not for production of cigarettes, but for other purposes, the excise tax
shall be levied.
***** Absolute excise tariffs only (in Llt. per ton shall be applied on oil products produced in the
joint-stock company “Mazeikiu nafta”.  From 1 A ugust 1995 excise shall be not applied on jet fuel
(Code 2710.00.51.0) imported by joint-stock companies “Lietuvos avialinijos” and “Lietuva” and
purchased from the joint-stock company “Mazeikiu nafta”.]WT/ACC/SPEC/LTU/8/Rev.2
Page 85
[Table 8:  VAT Exemptions in  Accordance with the Amendment
to the Law on Value Added Tax of 14 October 1997
1-  medical and stomatologic  services rendered by the institutions of the State
health supervision and veterinary service;
- medicines (includi ng 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 re ndered 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 Gove rnment and rendered by the insurance,
banks and other credit unions institutions;
- turnover of secur ities and lotteries;
6-  coffins;
- funeral wreaths;
- temporary tombstones;
- burying services;
7-  printing, publishing and distribution of magazines (listed by the Government),
newspapers, books (except editions, whic h Journalists and Editors Commission
for Ethics recognised among the categories having erotic and violent character);
- news-print;
8 - services and actions, rated by  consular and stamp taxes;
- local, State levies and taxes included in the State and municipalities budgets or
            special accounts opened in fisc or in the privatization funds;
9 - State property being privatized;
10 - works and services done for traditiona l Lithuanian religious communities and
paid from sacrificed means;
11 - rent (not more than 2 months) of flats and houses;
12 - rent of land;
13 - services rendered by traditional Lithuanian religious communities and paid by
sacrificed means, traditional handicrafts for which the special commission of
handicraft experts gave such status;
14 - passenger transport services according certain routes defined by the Ministry of
Transport or municipalities;
15 - levies for sea ports, airports, flights ruling and aeronavigation  services;
16 - construction of apartments; renovation, he ating and projecting works; including
construction of engineering networks a nd territory improvement financed from
State or municipalities budgets, soft cred its provided by State or special State
funds;WT/ACC/SPEC/LTU/8/Rev.2
Page 86
17 - goods with UNICEF mark according the list formed by the Government;
18 - restoration or conservation of culture monuments and heritage financed from
the State or municipalities budgets, also from sacrificed means or received as
support;
19 - exported goods (including returned to  abroad temporary imported goods for
processing) (zero VAT tariff);
20 - transportation of exported goods when fina l point 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, repairmen, agency of ships and planes transporting goods
and passengers by internationa l routes (zero VAT tariff);
22 - goods imported to bonded warehouses, duty-free shops (zero VAT tariff);
23 - services provided by enterprises, institutions and organizations outside
Lithuania (zero VAT tariff);
24 - goods and services for which directly pa id residents of foreign countries and
which are used for the production of goods for export or reexport (zero VAT
tariff);
25 - imported goods received as charity (humanitarian aid);
26 - imported by natural persons if the qua ntity of imported goods is permitted to
import without customs duties;
27 - goods transported by diplom atic and consular represen tatives and international
organizations;
28 - received as support for budget institutions;
29 - parcels sent by mail which weight is not more than 31.5 kg and value up to 400
Litas ;
30 - goods related with defence and safety of the Republic of Lithuania according
the single cases defined by the Government;
]WT/ACC/SPEC/LTU/8/Rev.2
Page 87
[Table 9:  List of goods subject to "p rice-in-checking" (abolished on 31 December 1997)
HS code Description
0201 - 0205,
0206.10 - 0206.22,
0206.26.10.9-
0206.29.91.0,
0206.29.99.99-
0206.90,
0209 - 0210meat and meat offal
0207.10.11 - 0207.23.90,
0207.39.11 - 0207.39.25,
0207.39.31 - 0207.39.47,
0207.39.53 - 0207.39.83,
0207.41.10 - 0207.41.71,
0207.42.10 - 0207.42.71,
0207.43.11 - 0207.43.81poultry and edible offal
0401 - 0402.21.99,
0402.29.15 - 0404milk and dairy products
0407,
0408birds eggs in shell, not in shell and egg yolks, fresh,
dried
0701, 0702.00.90.0,
0703.10, 0703.20,
0707.00.19.0,
0808.10.10.0,
0808.10.31.0-
0808.10.33.0,
0808.10.39.0,
0808.20.10.0potatoes, tomatoes,
onions, garlic, shallots, cucumbers,
apples and pears
0708.10,
ex 0708.90peas, beans
(except for seed growing)
1001.90 - 1040 grain
1008.10 buckwheat
1101,
1102.10wheat and rye flour
1103.19.30.0 fine ground barley
1104 cereal grains otherwise worked
1104.29.19 buckwheat
1108.13.00.0 potato starch
1209.29.50 lupine
1214.90 combined fodder
1514 rape, colza or mustard oil
1601 sausages and  products thereof
1602 canned meat
1701.91.00.0 cane sugar and beet sugar containing added flavouring or
colouring matter
1701.99.10.0 white sugarWT/ACC/SPEC/LTU/8/Rev.2
Page 88
HS code Description
2102.10 active yeast
2105.00 ice cream  and other edible ic e, whether or not containing
cocoa
2202.10.00.0 waters, including mineral waters and aerated waters,
containing added sugar or other sweetening or flavoured
matter
2203.00 beer made from malt
ex 2309.90 preparations of a kind used in animal feeding except
premixes
2710.00.11.0, 2710.00.27.0,
2710.00.29.0, 2710.00.34.0,
2710.00.69.0oil products
2804.10.00.0, 2804.30.00.0,
2804.40.00.0,hydrogen, nitrogen, oxygen
2811.21.00.0 carbon dioxide
2901.29.00.0 acetylene
2523.29.00.0 portland  cement
3605.00.00.0 matches
3921.11.00.0 plates, sheets, films, foils and strips of plastics of polymers o f
styrene
6806.10.00.0 slag wool, rock wool and similar mineral wools (including
intermixtures thereof), in bulk, sheets or rolls
6807.10.10.0 roofing and facing products of asphalt or similar materials (for
example, petroleum bitumen or coal tar pitch)
6811.10.00.0 slate
6907, 6908 glazed and non glazed ceramic flags and paving
7005.10.10.0 noodle conservatory glass
7006.00 glass of heading No.7003, 7004 and 7005, bent, edge-worked,
engraved, drilled, enamelled or otherwise worked, but not framed
or fitted with other materials
7007 toughened, safety glass for incorporating in vehicles, windows,
warm-houses
7008.00 multiple-walled insulating units of glass
7010 carboys, bottles, flasks, jars pot s, 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.2
Page 89
[Table 8  10:  Rates of Export Duties Approved by Government Resolution
No. 896 of 7 August 1997
Code of group of goods* Descripti on of group of goods Tariff rate (%)**
0505 10 Feathers for stuffing; down 30
0510 00 00 2,
0510 00 10 3Glands and other organs used in pharmaceutical
products***30
3001 10 90-
3001 90 91Glands and organs used in organo-therapeutical
uses***30
4101, 4103 Raw hides and skin 30
4403 20 90 6 Pine wood in logs, with a circumference not less than
20 cm at the thin end60
4403 20 90 7 Spruce wood in logs 60
4403 91 Unprocessed oak timber 60
4403 99 99 1 Unprocessed ash timber 60
4403 99 99 2 Birch wood in logs, with a circumference not less than
20 cm at the thin end60
* Codes of groups (goods) are presented acco rding to the EEC Harmonized Commodity 
Description and Coding System.
** Goods without codes herein are subject to a zero rate customs duties.*** Under quotas granted by the Ministry of Health Care the export of such products is duty free.]WT/ACC/SPEC/LTU/8/Rev.2
Page 90
[Table 11:  Status of Lithuanian Legislation to meet WTO TRIPS Requirements
TRIPS Agreement Laws and other legal acts addressing the
subject matterDraft legislation to address subject-
matter
Part II, Section 1.
Copyright and
Related Rights- Law on the Amendment and 
Supplement to the Civil Code 
(17 May 1994) which will be 
elaborated by new Law on 
Copyrights and Related Rights;
- Law on the Legal Protection of 
Computer Programs and 
Databases of 30 January 1996;
- Membership in the Berne 
Convention from 1994;- draft Law on Copyrights and 
Related Rights (first half of 
1998);
- draft documents to ratify the 
Rome Convention (until the 
end of 1997);
- preparation of joining to the 
Geneva Convention (in the 
course of 1998);
Part II, Section
2.Trademarks- Law on Trademarks and Service 
Marks of 3 June 1993;
- Membership in the Paris 
Convention from 1994;
- Membership from 1996 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;- no protection of geographical 
indications but this renewed 
will be provided under new 
Law on Competition (first half 
of 1998);
- 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
1998);
- amendment to procedures 
followed by the State Patent 
Bureau to certify a mark as 
well-known (in the beginning 
of 1998);
Part II, Section 3.
Geographical
Indications- partially Law on Competition of
 15 September 1992- see previous section;
- draft new Law on Competition 
regulation of the use of
geographical indications under 
Part II, Section 4.
Industrial Design- Law on Industrial Design of 
4 July 1995;
- Membership in the Paris 
Convention from 1994;- amendment to include 
“selling” products as 
infringing act (in the course of 
1998);
- amendment to further detail 
initial term of protection (in 
the course of 1998);WT/ACC/SPEC/LTU/8/Rev.2
Page 91
TRIPS Agreement Laws and other legal acts addressing the
subject matterDraft legislation to address subject-
matter
Part II, Section 5.
Patents- Patent Law of 18 January 1994;
- Law on the Protection of Plant 
Varieties and Seed Growing of 
17  September 1996;
- Membership in the Paris 
Convention from 1994;
- Membership in the Patent 
Cooperation Treaty from 1994;- amendment to allow patent 
owner to prohibit the sale of a 
patented products (in the course
of 1998);
- amendment to provide 
specific occasions when a 
non-exclusive compulsory 
licence may be granted (in the 
course of 1998);
- amendment to allow 
invalidation of a compulsory 
licence (in the course of 1998);
Part II, Section 6.
Layout Designs of
Integrated Circuits- drafting Law on the Protection 
of  Layout Designs of 
Integrated Circuits (in the 
beginning of 1998);
Part II, Section 7.
Protection of
Undisclosed
Information- partially Law on Competition of 
15 September 1992;- draft new Law on Competition 
will provide more elaborated 
provisions (first half of 1998);
Part II, Section 8.
Control of
Anti-competitive
Practices in
Contractual Licences- Law on Competition of 15 
September 1992;
- 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;- draft new Law on Competition 
will provide more elaborated 
provisions on control of 
anti-competitive practices in 
contractual licences (first half 
of 1998);
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);
- Law on Competition of 
15 September 1992;
- Law on Trademarks and Service 
Marks of 3 June 1993;- draft Law on Amendment and 
Supplement to the Code of 
Administrative Infringements 
(improvements) (in the 
beginning of 1998);
Part III, Section 3.
Provisional
Measures- Civil Code of Lithuania - draft Law on Copyrights and 
Related Rights will provide 
separate Article “Provisional 
measures” (first half of 1998);WT/ACC/SPEC/LTU/8/Rev.2
Page 92
TRIPS Agreement Laws and other legal acts addressing the
subject matterDraft legislation to address subject-
matter
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 1998);
Part III, Section 5.
Criminal
Procedures- Criminal Code of Lithuania 
(Article 142)- draft Law on Amendment and 
Supplement to the Criminal 
Code (improvements) (in the 
beginning of 1998);
__________