WORLD TRADE  
ORGANIZATION  G/SCM/N/186/EEC/Add.16 
23 December 2009 
 (09-6559) 
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 COMMUNITIES 
 
Addendum  
 
  The following addendum to the notification of the European Communities
* relates to subsidy 
programmes of Lithuania. 
 
_______________ 
 
   
                                                     
 
* On 1 December 2009, the Treaty of Lisbon amendi ng the Treaty on European Union and the Treaty 
establishing the European Comm unity (done at Lisbon, 13 Decembe r 2007) entered into force.  
On 29 November 2009, the WTO received a Verbal Note  (WT/L/779) from the Council  of the European Union 
and the Commission of the European Communities stating that, by virtue of the Treaty of Lisbon, as of 
1 December 2009, the European Union replaces and succeeds the European Community. G/SCM/N/186/EEC/Add.16 
Page 2  
 
   
    
LITHUANIA 
 
TABLE OF CONTENTS 
 
Page 
 
I. SUPPORT TO KAUNAS FREE ECONOMIC ZONE..........................................................3  
II. SUPPORT TO KLAIPEDA FR EE ECONOMIC ZONE .....................................................4  
III. FISHERIES ...................................................................................................................... .........6  
IV. SUPPORT FOR ORGANI C AQUACULTURE....................................................................7  
 
 
 Please note 1 EURO=3.4528 LTL (Lithuanian Litas) 
  G/SCM/N/186/EEC/Add.16 
 Page 3 
 
 
  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 legisla tion only FEZ enterprises may apply tax incentives.  
The decision concerning issuance of a licence 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; 
• road tax exemption; 
• six years exemption from corporate income  tax from the date of investment and 
50 per cent discount for the following ten year s - for companies that have invested 
more than €1 million. 
3. Period covered by notification
 
  The years 2007 and 2008  
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. IX-2565 as of 11 November 2004.   Law of the Republic of Lithuania on Kaunas Free Economic Zone, 22 October 1996, 
No. I-1591.  Last amendment No. X-262 as of 21 June 2005. 
 7. Form of assistance granted
 
  Tax exemption 
 G/SCM/N/186/EEC/Add.16 
Page 4  
 
  8. To whom and how the subsidy is provided
 
  In 2007, the subsidy was granted to 2 entiti es (LTL 0.474 million to the first company and 
LTL 0.114 million to the second company), in 2008 - to 5 entities (LTL 0.589 million to the first 
company, LTL 0.268 million to the second company, LTL 0.748 million to the third company, 
LTL 0.266 million to the fourth company and LTL 0.723 million to the fifth company). 
 9. Total expenditure under the programme
 
 
 2007 2008 
TOTAL LTL 0.59 million LTL 2.59 million 
   
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 legisla tion only FEZ enterprises may apply tax incentives.  
The decision concerning issuance of a licence 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; 
• road tax exemption; 
• six years exemption from corporate income  tax from the date of investment and 
50 per cent discount for the following ten year s - for companies that have invested 
more than €1 million. 
3. Period covered by notification
 
 
 The years 2007 and 2008  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.  G/SCM/N/186/EEC/Add.16 
 Page 5 
 
 
   
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. 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 2007, the subsidy was granted to 7 entities (LTL 1.232 million to the first company, LTL 0.023 million to the second company, LTL 0.082 million to the third company, 
LTL 0.124 million to the fourth company, LTL 0.015 million to the fifth company, LTL 0.102 million 
to the sixth company and LTL 3.917 million to the seventh company), in 2008 - to 9 entities (LTL 0.961 million to the first company, LTL 0.023 million to the second company, LTL 0.063 million to the third company, LTL 0.10 million to the fourth company, LTL 0.02 million to the fifth company, LTL 0.102 million to the sixth company, LTL 0.175 million to the seventh 
company LTL 0.269 million to the eighth company and LTL 0.12 million to the ninth company). 
 9. Total expenditure under the programme
 
 
 2007 2008 
TOTAL LTL 5.49 million  LTL 1.83 million  
 
10. Duration of the programme  
  Unlimited 
 
11. Procedure for gaining the subsidy
 
  As described in the Law on the Fundamentals of Free Economic Zones.  G/SCM/N/186/EEC/Add.16 
Page 6  
 
  III. FISHERIES 
S
UPPORT FOR AQUACULTURE  
 
1. Title the programme  
 
 Support for aquaculture 
 2. Brief description of the programme
 
  Programme is intended to support:  the breeding of valuable fish and crayfish juveniles for the 
waters of national importance;  the implementa tion of piscine diseases prophylaxis programme in 
fisheries ponds.  3. Period covered by notification
 
 
 1 January 2007 - 31 December 2008 
 4. Policy objectives and/or purposes of the subsidy
 
 
• Promote breeding of valuable fish and cray fish for the waters of national importance 
• Improve sanitary and health conditions of fish breeding 
• Promote producing of qualitative fish production 
• Reduce fish morbidity, eliminate some piscine diseases and pests 
5. Background and authority for the programme  
 
 Ministry of Agriculture   Legislation under which it is granted
 
 
• Law of the Republic of Lithuania of 25 June 2002 on Agricultural and Rural 
Development (OG "Valstyb ės Žinios", 2002, No. 72-3009) 
• Order of the Minister of Agriculture of  the Republic of Lithuania No. 3D-276 of 
31 May 2007 on the Rules for Giving Support to Aquaculture in the year 2007 (OG "Valstyb ės Žinios", 2007, No. 62-2397) 
• Order of the Minister of Agriculture of  the Republic of Lithuania No. 3D-309 of 
5 June 2008 on the Rules for Giving Support to Aquaculture in the year 2008 (OG "Valstyb ės Žinios", 2008, No. 65-2471) 
6. Form of the subsidy
 
 
 Grants and contribution towards eligible costs. 
 7. To whom and how the subsidy is provided
 
 
 Producers (enterprises and farmers, engaged in aquaculture). 
  G/SCM/N/186/EEC/Add.16 
 Page 7 
 
 
  8. Total expenditure under the programme  
 
 2007 2008 
Breeding of valuable fish and crayfish 
juveniles - - 
Piscine diseases prophylaxis prog ramme LTL 1,543,500  LTL 1,722,300  
TOTAL LTL 1,543,500  LTL 1,722,300 
 
9. Duration of the programme  
   2003-2008  10. Procedure for gaining the subsidy
 
 
 Application by individual eligible persons. 
 
IV. SUPPORT FOR ORGANIC AQUACULTURE 
1. Title of the programme  
 
 Support for organic aquaculture. 
 2. Brief description of the programme
 
  The programme is intended to promote organic aquaculture in fisheries ponds. 
 
3. Period covered by notification
 
  1 January 2007 - 31 December 2008  4. Policy Objectives and/or purposes of the subsidy
 
 
• Orientate aquaculture enterprises/fa rmers towards ecological farming. 
• Promote production of organic products. 
5. Background and authority for the programme  
  Ministry of Agriculture  
 Legislation under which it is granted 
 
• Law of the Republic of Lithuania on Agricultural and Rural Development 
(OG "Valstyb ės Žinios", 2002, No. 72-3009); 
• Order of the Minister of Agriculture of  the Republic of Lithuania No. 3D-368 of 
7 August 2007 on the Rules of Support to Ecological Fisheries for the year 2007 (OG "Valstyb ės Žinios", 2007, 88-3507); 
• Order of the Minister of Agriculture of  the Republic of Lithuania No. 3D-383 of 
15 July 2008 on the Rules of Support to Ecological Fisheries for the year 2008 (OG "Valstyb ės Žinios", 2008, 87-3497). G/SCM/N/186/EEC/Add.16 
Page 8  
 
  6. Form of the subsidy
 
  Grants  7. To whom and how the subsidy is provided
 
 
 Producers (legal and physical persons, engaged in organic aquaculture).  8. Total expenditure under the programme
 
 
 2007 2008 
TOTAL LTL 1,022,000 LTL 1,053,000 
 
9. Duration of the programme  
 
2003-2008 
 10. Procedure for gaining the subsidy
 
  Application by individual eligible persons. 
 
__________