WORLD TRADE  
ORGANIZATION   
G/SCM/N/220/EEC/Add.16
16 November 2011 
 (11-5237) 
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.  
 
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LITHUANIA  
	
TABLE OF CONTENTS 
  
Page 
 
I.  SUPPORT TO KAUNAS FREE ECONOMIC ZONE.......................................................... 3  
II.  SUPPORT TO KLAIPEDA FREE  ECONOMIC ZONE ..................................................... 4  
III. FISHERIES ..................................................................................................................... .......... 5 
 
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  I. SUPPORT TO KAUNAS FREE ECONOMIC ZONE  
1. Title of the programme 
 
 Investment promotion in the Kaunas Free Economic Zone.  
2. Brief description of the programme 
 
 Investment promotion scheme in the Kaunas Free Economic Zone is based on tax concessions. According to the national legislati on only FEZ enterprises may apply tax incentives. The 
decision concerning issuance of a license for an ec onomic 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; 
 Road tax exemption; 
 6 years exemption from corporate income tax fro m the date of investment and 50% discount 
for the following 10 years - fo r companies that have invested more than 1 million EUR. 
 
3. Period covered by notification 
  The years 2009 and 2010.  
4. Policy objective and /or purpose of the subsidy 
 
 To create in the FEZ favourable taxation, legal and other prefer ential conditions for 
economic-commercial activities to establish foreign and local economic entities of enterprises, which 
develop and introduce technical-scientific progress, th erein as well as to stimulate foreign investments 
and create new jobs. 
 
5. Authority of the programme 
  Ministry of Economy.  
6. Legislation under which support is granted 
 
 Law of the Republic of Lithuania on th e Fundamentals of Free Economic Zones, 
2 April 1996, No. 1-976. Last amendment No. XI-737 as of 27 April 2010.    Law of the Republic of Lithuania on Kaunas Free Economic Zone, 22 October 1996, 
No. I-1591. Last amendment No. XI-737 as of 27 April 2010. 
 7. Form of assistance granted 
  Tax exemption. 
 
8. To whom and how the subsidy is provided 
  In 2009, the subsidy was granted to 4 en tities (0.616 million LTL to the first company, 
0.08 million LTL to the second company, 0.457 million LTL to the third company and 0.083 million LTL to the fourth company), in 2010 - to 4 entities (0.46 million LTL to the first G/SCM/N/220/EEC/Add.16 
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  company, 0.174 million LTL to the second company, 0.09 million LTL to the third company and 
0.03 million LTL to the fourth company).  9. Total expenditure under the programme 
 
 2009 2010 
TOTAL 1.236 million LTL 0.754 million LTL 
 10. Duration of the programme 
  Unlimited. 
 
11. Procedure for gaining the subsidy 
  As described in the Law on the Fundamentals of Free Economic Zones.  
II. SUPPORT TO KLAIPEDA FREE ECONOMIC ZONE  
1. Title of the programme 
 
 Investment promotion in the Klaipeda Free Economic Zone.  2. Brief description of the programme 
  Investment promotion scheme in the Klaipeda Free Economic Zone is based on tax concessions. According to the national legislati on only FEZ enterprises may apply tax incentives. The 
decision concerning issuance of a license for an ec onomic 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; 
 Road tax exemption; 
 6 years exemption from corporate income tax fro m the date of investment and 50% discount 
for the following 10 years - fo r companies that have invested more than 1 million EUR. 
 
3. Period covered by notification 
 
 The years 2009 and 2010.  4. Policy objective and /or purpose of the subsidy 
 
 To create in the FEZ favourable taxation, legal and other prefer ential conditions for 
economic-commercial activities to establish foreign and local economic entities of enterprises, which 
develop and introduce technical-scientific progress, th erein as well as to stimulate foreign investments 
and create new jobs.  
5. Authority of the programme 
 
 Ministry of Economy.   G/SCM/N/220/EEC/Add.16 
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  6. Legislation under which support is granted 
 
 Law of the Republic of Lithuania on th e Fundamentals of Free Economic Zones, 
2 April 1996, No. 1-976. Last amendment No. IX-2565 as of 11 November 2004.   
 Law of the Republic of Lithuania on Klai peda Free Economic Zone, 12 September 1996, 
No. 1-1516. Last amendment, No. X-1613 as of 17 June 2008.  7. Form of assistance granted 
 
 Tax exemption. 
 8. To whom and how the subsidy is provided 
  In 2009, the subsidy was granted to 13 entities (0.116 million LTL to the first company, 
0.028 million LTL to the second company, 0.04 milli on LTL to the third company, 0.560 million LTL 
to the fourth company, 0.020 million LTL to the fifth company, 0.103 million LTL to the sixth company, 10.357 million LTL to the seventh company, 1.329 million LTL to the eight company, 0.293 million LTL to the ninth company, 0.023 million LTL to the tenth company, 0.036 million LTL to the eleventh company, 0.032 million LTL to the twelfth company and 0.013 million LTL to the thirteenth company), in 2010 - to 15 entities (0 .116 million LTL to the first company, 0.035 million 
LTL to the second company, 0.026 million LTL to the third company, 0.10 million LTL to the fourth 
company, 0.02 million LTL to the fifth company, 0.103 million LTL to the sixth company, 9.518 million LTL to the seventh company 0.269 million LTL to the eighth company, 0.161 million LTL to the ninth company, 0.023 million LTL to the tenth company, 0.159 million LTL to the eleventh company, 0.032 million LTL to the twelfth company, 0.013 million LTL to the 
thirteenth company, 0.194 million LTL to the four teenth company, 0.064 million LTL to the fifteenth 
company).  9. Total expenditure under the programme 
 
 2009 2010 
TOTAL 12.951 million LTL 10.832 million LTL 
 10. Duration of the programme 
  Unlimited.  
11. Procedure for gaining the subsidy 
 
 As described in the Law on the Fundamentals of Free Economic Zones.  
III. FISHERIES  
1.  Title the programme  
 
 Support for the improvement of conservation of natural resources in fisheries ponds. 
 
2. Brief description of the programme 
  Programme is intended to support the conserva tion and improvement of natural resources and 
biodiversity in fisheries ponds and the management  of aquaculture areas' landscape. The support is G/SCM/N/220/EEC/Add.16 
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  linked with the implementation of aqua-environmen tal measures (such as intentional reduction of 
cubage in aquaculture ponds), wh ich help to protect natural res ources and biodiversity (birds and 
other fauna) and to retain the traditional e nvironmental landscape in aquaculture areas. 
 3.  Period covered by notification 
  2009 and 2010.  4.  Policy objectives and/or purposes of the subsidy 
 
 Support the conservation and improvement of natural resources and biodiversity  
 Support the management of aquaculture areas' landscape  
 Protect traditional environmental features of aquaculture areas 
 5.  Background and authority for the programme 
  Ministry of Agriculture of the Republic of Lithuania  
6. Legislation under which it is granted 
 
 Commission Regulation (EC) No 736/2008 of 22 July 2008 on the application of Articles 87 
and 88 of the Treaty to State aid to small and medium-sized enterprises active in the production, processing and marketing of fisheri es 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 improvement  of conservation of natural resources in 
fisheries ponds (OJ "Valstyb ės žinios", 2009, No. 98-4146). 
 7.  Form of the subsidy 
  Grants.   
8.  To whom and how the subsidy is provided  
 
 Small and medium-sized enterprises in the aquaculture sector.   9.  Total expenditure under the programme 
  2009 – 2,155,000 LTL 
 2010 – 970,000 LTL  10. Duration of the programme 
  2009 – 2013.  11.   Procedure for gaining the subsidy 
  Application by individual eligible persons. 
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  12.  Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 The support is intended to improve and con serve natural resources in fisheries ponds and 
would thus not appear to have any effects on trade.  
 
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