G/SCM/N/284/EU/Add.17  
 
26 August 2015  
(15-4313)  Page: 1/8  
Committee on Subsidies and Countervailing Measures  Original: English  
 
 SUBSIDIES 
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1  
OF THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT  
ON SUBSIDIES AND COUNTERVAILING MEASURES 
EUROPEAN UNION 
Addendum 
The following addendum to the notification of the European Union relates to subsidy programmes 
of Lithuania . 
 
_______________ 
 
 G/SCM/N/284/EU/Add.17 
 
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  LITHUANIA  
 
 
TABLE OF CONTENTS 
1   SUPPORT TO KAUNAS FREE ECONOMIC ZONE ............................................................. 3  
2   SUPPORT TO KLAIPEDA FREE ECONOMIC ZONE .......................................................... 4  
3   FISH ERIES ................................................................................................................. . 5 
3.1   Support for the improvement of conserva tion of natural resources in fisheries ponds ........... 5  
3.2   European Fish eries Fund (EFF) .................................................................................... 6  
 
 G/SCM/N/284/EU/Add.17 
 
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1  SUPPORT TO KAUNAS FREE ECONOMIC ZONE 
1. Title of the programme 
 
Investment promotion in the Kaunas Free Economic Zone. 
 Brief description of the programme: 
 
Investment promotion scheme in the Kaunas Free Economic Zone is based on tax concessions. According to the national legislation only FEZ enterprises may apply tax incentives. The decision concerning issuance of a license for an economic entity's activities in the free economic zone shall 
be taken by the zone management company. 
 Companies established in the FEZ enjoy favourable tax treatment: 
 
 Real estate tax exemption; 
 The zone enterprise capital investments into which have reached not less than 1 million euro 
shall not pay any profit tax for 6 taxable periods starting with the taxable period when such 
investment amount has been reached and shall be applied the profit tax tariff reduced by 50% for the next 10 taxable periods. 
 
2. Period covered by notification 
 
The years 2013 and 2014. 
 
3. Policy objective and /or purpose of the subsidy 
 
To create in the FEZ favourable taxation, legal and other preferential conditions for economic-
commercial activities to establish foreign and local economic entities of enterprises, which develop and introduce technical-scientific progress, therein as well as to stimulate foreign investments and create new jobs. 
 
4. Authority of the programme 
 
Ministry of Economy. 
 Legislation under which support is granted: 
 
Law of the Republic of Lithuania on the Fund amentals of Free Economic Zones, 2 April 1996, 
No. 1-976. Last amendment No. XII-1263 as of 16 October 2014.   
Law of the Republic of Lithuania on Kaunas Free Economic Zone, 22 October 1996, No. I-1591. 
Last amendment No. XII-946 as of 12 June 2014.  
5. Form of the subsidy 
 
Tax exemption. 
 
6. Procedure for gaining the subsidy 
 As described in the Law on the Fundamentals of Free Economic Zones. 
 
7. Expenditure under the programme 
 
In 2013, the subsidy was granted to 5 entities (0.07 million LTL to the first company, 0.062 million 
LTL to the second company, 0.29 million LTL to th e third company, 3.50 million LTL to the fourth 
company and 0.03 million LTL to the fifth company), in 2014 – to 6 entities (0.40 million LTL to 
the first company, 0.007 million LTL to the second company, 0.40 million LTL to the 
third company, 3.228 million LTL to the fourth company, 0.476 million LTL to the fifth company and 0.041 million LTL to the sixth company).  G/SCM/N/284/EU/Add.17 
 
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   2013 2014 
TOTAL 3.952 million LTL 4.553 million LTL 
 
8. Duration of the programme 
 
Unlimited. 
 2  SUPPORT TO KLAIPEDA  FREE ECONOMIC ZONE 
1. Title of the programme 
 
Investment promotion in the Klaipeda Free Economic Zone. 
 
Brief description of the programme:  Investment promotion scheme in the Klaipeda Free Economic Zone is based on tax concessions. 
According to the national legislation only FEZ enterprises may apply tax incentives. The decision 
concerning issuance of a license for an economic entity's activities in the free economic zone shall be taken by the zone management company. 
 
Companies established in the FEZ enjoy favourable tax treatment:  
 Real estate tax exemption; 
 The zone enterprise capital investments into which have reached not less than 1 million euro 
shall not pay any profit tax for 6 taxable periods starting with the taxable period when such investment amount has been reached and shall be applied the profit tax tariff reduced by 
50% for the next 10 taxable periods. 
 2. Period covered by notification 
 The years 2013 and 2014.  
3. Policy objective and /or purpose of the subsidy 
 
To create in the FEZ favourable taxation, legal and other preferential conditions for economic-commercial activities to establish foreign and local economic entities of enterprises, which develop 
and introduce technical-scientific progress, therein as well as to stimulate foreign investments and 
create new jobs.  
4. Authority of the programme 
 
Ministry of Economy. 
 
Legislation under which support is granted:  Law of the Republic of Lithuania on the Fund amentals of Free Economic Zones, 2 April 1996, 
No. 1-976. Last amendment No. XII-1263 as of 16 October 2014.  
 Law of the Republic of Lithuania on Klaipeda Free Economic Zone, 12 September 1996, No. 1-
1516. Last amendment, No. XII-947 as of 12 June 2014. 
 5. Form of the subsidy 
 Tax exemption.  6.  Procedure for gaining the subsidy 
 As described in the Law on the Fundamentals of Free Economic Zones.  
 G/SCM/N/284/EU/Add.17 
 
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  7. Expenditure under the programme 
 
In 2013, the subsidy was granted to 17 entities (0.134 million LTL to the first company, 0.04 million LTL to the second company, 0.033 m illion LTL to the third company, 0.127 million LTL 
to the fourth company, 0.125 million LTL to the fifth company, 0.259 million LTL to the sixth 
company, 0.575 million LTL to the seventh company, 0.695 million LTL to the eight company, 0.051 million LTL to the ninth company, 0.022 million LTL to the tenth company, 0.13 million LTL 
to the eleventh company, 0.479 million LTL to the twelfth company, 0.014 million LTL to the 
thirteenth company, 0.193 million LTL to the four teenth company, 0.55 million LTL to the fifteenth 
company and 0.111 million LTL to the sixteenth company), in 2014 – to 17 entities (0.134 million LTL to the first company, 0.245 million LTL to the second company, 
0.034 million LTL to the third company, 0.159 millio n LTL to the fourth company, 0.127 million LTL 
to the fifth company, 0.28 million LTL to the sixth company, 0.639 million LTL to the seventh 
company, 3.117 million LTL to the eight company, 0.218 million LTL to the ninth company, 
0.022 million LTL to the tenth company, 0.022 million LTL to the eleventh company, 0.21 million 
LTL to the twelfth company, 0.17 million LTL to the thirteenth company, 0.014 million LTL to the 
fourteenth company, 0.172 million LTL to the fift eenth company, 0.495 million LTL to the sixteenth 
company and 0.686 million LTL to the seventeenth company). 
 8. Total expenditure under the programme 
 
 2013 2014 
TOTAL 3.538 million LTL 6.744 million LTL 
 9. Duration of the programme 
 Unlimited.  
3  FISHERIES 
3.1  Support for the improvement of conservati on of natural resources in fisheries ponds 
1. Title of the subsidy programme 
Support for the improvement of conservation of natural resources in fisheries ponds. 
 2. Period covered by the notification 
2013 and 2014. 
 
3. Policy objective and/or purpose of the subsidy programme 
 
 Support the conservation and improvement of natural resources and biodiversity 
 Support the management of aquaculture areas' landscape 
 Protect traditional environmental features of aquaculture areas. 
 
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted) 
Ministry of Agriculture of the Republic of Lithuania. 
 Legislation under which it is granted:  
 Commission Regulation (EC) No. 736/2008 of July 2008 on the application of Article 87 and 
88 of the Treaty to State aid to small and medium-sized enterprises active in the production, processing and marketing of fisheries products (OJ L 201, 30.7.2008, p. 16-26); 
 Order of the Minister of Agriculture of the Republic of Lithuania No. 3D-584 of 
10 August 2009 on the support for the improvemen t of conservation of natural resources in 
fisheries ponds (OJ "Valstyb ės žinios", 2009, No. 98-4146; 2012, No. 12-528). 
 G/SCM/N/284/EU/Add.17 
 
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  5. Form of the subsidy 
Grants. 
 6. To whom and how the subsidy is provided 
Small and medium-sized enterprises in the aquaculture sector. The procedure for gaining the 
subsidy is the application by individual eligible persons.  
7. Total annual amount budgeted for the subsidy 
2013 – 267,030 EUR. 
2014 – 0 EUR. 
 
8. Duration of the subsidy programme 
2009 – 2014. 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
The support is intended to improve and conserve natural resources in fisheries ponds and would 
thus not appear to have any effects on trade. 
 
3.2  European Fisheries Fund (EFF) 
1. Title of the subsidy programme 
European Fisheries Fund (EFF). 
 2. Period covered by the notification 
2013 and 2014. 
 
3. Policy objective and/or purpose of the subsidy 
 
The EFF, the successor of the Financial Instrument for Fisheries Guidance (FIFG), exists to grant 
financial support to the EU's fisheries sector during the period 2007-2013 to help it adapt to 
changes required in the sector. The objectives of the EFF are to: 
  - support the Common Fisheries Policy with a view to guaranteeing the sustainable 
exploitation of aquatic resources and the economic, environmental and social 
sustainability of the fisheries sector; 
 - promote the sustainable development of inland fishing;  - promote a sustainable balance between reso urces and the fishing capacity of the EU's 
fishing fleet; 
 - strengthen the competitiveness of the operating structures and the development of 
economically viable enterprises in the fisheries sector; 
 - foster the protection and enhancement of the environment and natural resources 
where related to the fisheries sector; 
 - encourage sustainable development and impr ovement of the quality of life in areas 
with an active fishing industry; 
 - promote equality between men and women in the development of the fisheries sector 
and fisheries areas. 
 
To achieve these objectives the EFF targets the following priority areas (axis): 
  - Axis 1 Adjustment of the fleet: aid for permanent and/or temporary ceasing of fishing 
activities, on-board safety and working improvements, more selective gear, small-
scale coastal fisheries, socio-economic measures including early retirement and retraining. G/SCM/N/284/EU/Add.17 
 
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   - Axis 2 Aquaculture, processing and marketing, inland fishing: diversification into new 
aquaculture species, environmentally-friendly aquaculture, implementation of animal health measures, processing and marketing of fisheries and aquaculture products, support for inland fishing vessels of less than 12 metres not using towed gear. 
 - Axis 3 Measures of common interest: protection and development of aquatic fauna 
and flora, improve services offered by fishing ports, shelters and landing sites, promotion of partnerships between scientists and professionals in the fishing sector, 
development of new marketing and prom otional campaigns, pilot projects, 
reassignment of fishing vessels for uses outside the fisheries sector. 
 - Axis 4 Sustainable development of fisherie s areas: restructuring and diversification of 
economic activities, promotion of sea food, provision of small infrastructure (e.g. for 
tourism), restoration of production damaged by disasters, promotion inter-regional 
and trans-national cooperation, capacity  building to prepare local development 
strategies, protection of natural and architectural heritage. 
 - Axis 5 Technical assistance: studies, reports, information activities and other actions 
relating to the implementation of the above measures. 
 
Programmed national contribution (totals fo r the period 2007-2013), broken down by 
priority axis (in Euros) 
PRIORITY AXIS NO.  TOTAL PUBLIC 
FUNDING  EFF FUNDING  NATIONAL FUNDING 
AXIS 1  5.728.792 4.869.473 859.319  
AXIS 2  41.059.664 30.794.748 10.264.916  
AXIS 3  12.911.563 9.683.672 3.227.891  
AXIS 4  8.925.027 6.693.770 2.231.257  
AXIS 5  3.562.327 2.671.745 890.582  
TOTAL 72.187.373 54.713.408 17.473.965  
 
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted) 
Legislation under which it is granted: 
 
 Treaty establishing the European Community, in particular Articles 158, 159 and 161 thereof 
and Treaty on the Functioning of the European Union, in particular Articles 174, 175 and 177 
thereof; 
 Council Regulation (EC) No 1198/2006 of 27 July 2006 on the European Fisheries Fund; 
 Commission Regulation (EC) No 498/2007 of 26 March 2007 laying down detailed rules for 
the implementation of Council Regulation (EC) No 1198/2006 on the European Fisheries 
Fund; 
 Operational  Programme for the Lithuanian Fisheries Sector  for the period 2007-2013, 
approved by Commission Decision  No C/2007/6703 of 17 December 2007. 
 5. Form of the subsidy 
Aid is normally in the form of grants. 
 6. To whom and how the subsidy is provided 
Ship-owners, enterprises, producer organizati ons, public and private bodies, professional 
organizations, cooperatives, fishermen.  
The procedure for gaining the subsidy is the call for applications by eligible persons. 
 7. Total and annual national contribution to the programme 
Total national contribution to the programme for 2007 – 2013 – 17.473.965 EUR. 
 
2013 – 3.577.814 EUR. 2014 – 2.127.543 EUR. 
 G/SCM/N/284/EU/Add.17 
 
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  8. Duration of the programme 
2007 – 2013. 
  
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