RESTRICTED
WORLD TRADE WT/ACC/SPEC/LTU/8
23June1997
ORGANIZATION(97-2565)
Working Party onthe Original: English
Accession ofLithuania
DRAFT REPORT OFTHE WORKING PARTY ON
THE ACCESSION OFLITHUANIA
TOTHE WORLD TRADE ORGANIZATION
INTRODUCTION
1. TheGovernment ofLithuania applied foraccession totheGeneral Agreement onTariffs and
Trade (GATT 1947) inJanuary 1994. Atitsmeeting on22-23 February 1994, theGATT 1947Council
ofRepresentativesestablishedaWorkingPartytoexaminetheapplicationoftheGovernmentofLithuania
toaccede totheGeneral Agreement under Article XXXIII oftheGeneral Agreement. Following the
conclusion oftheUruguay Round, Lithuania requested accession totheWorld Trade Organization
(WTO) under Article XIIoftheMarrakesh Agreement establishing theWorld Trade Organization.
Inaccordance withthedecision adopted bytheWTO General Council on31January 1995, theexisting
GATT 1947 Accession Working Party wastransformed intoaWTO Accession Working Party. The
terms ofreference andthemembership oftheWorking Party arereproduced indocument
WT/ACC/LTU/1/Rev. 4.
2. The Working Party meton10November 1995; 25-26 March and7October 1996;
26March 1997 and...... under theChairmanship ofMr.Peter Witt(Germany).
DOCUMENTATION PROVIDED
3. TheWorking Party hadbefore it,toserve asabasis foritsdiscussions, aMemorandum on
theForeign Trade Régime ofLithuania (L/7551), thequestions submitted byMembers ontheforeign
trade régime ofLithuania, together withthereplies thereto, andother information provided bythe
Lithuanian authorities (WT/ACC/LTU/2 andAddendum 1;WT/ACC/LTU/4; WT/ACC/LTU/5;
WT/ACC/LTU/7 andAddendum 1;WT/ACC/LTU/9; WT/ACC/LTU/10; WT/ACC/LTU/12;
WT/ACC/LTU/15 and...),including thelegislative textsandother documentation listed inAnnex I.WT/ACC/SPEC/LTU/8
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INTRODUCTORY STATEMENTS
4. Inhisintroductory statement, therepresentative ofLithuania noted thathiscountry wassmall
andheavily dependent onforeign trade. Since restoration ofindependence in1990, thecentrally planned
system inforcehadbeeneffectively replaced byamarket-oriented economy. Lithuania hadestablished
anewbanking system anditsowncurrency andwasproceeding onfundamental economic reforms,
including theenactment ofnewlegislative measures, privatization, deregulation ofprices andtrade,
inclose cooperation withinternational institutions. However, economic transformation could only
besuccessful ifsupported byintegration intotheworld economy andtheinternational trading system
based ontheprinciples oftheWTO.
5. Lithuania 'sforeign tradepatterns hadalsochanged significantly since1990. Theshare oftrade
withcountries intheCommonwealth ofIndependent States haddeclined substantially while tradeflows
withother countries hadincreased. Lithuania 'soverall balance ofpayments wasinsurplus despite
atrade deficit. Lithuania hadresisted protectionism inaperiod ofdifficult economic transition. The
foreign traderégime would beliberalized further. Several tradeagreements hadbeensigned, reducing
barriers totrade, andother agreements wereunder negotiation. Accession totheWTO wasamatter
ofhighest priority asLithuania sought integration intotheworld economy onthebasisofinternationally
recognized rules, providing astable andpredictable environment andaprecise legalframework for
trade among nations. Lithuania 'saccession would alsohavepositive repercussions foritstrading
partners.
6. Intheiropening remarks, members oftheWorking Party welcomed therequest fromLithuania
toaccede totheWTO. Lithuania 'sintegration intotheworld economy andtrade onthebasis of
multilaterally agreed principles andrules wasseenasanimportant element underpinning economic
andinstitutional reforms inLithuania.
7. TheWorking Party reviewed theeconomic policies andforeign traderégime ofLithuania and
thepossible terms ofadraftProtocol ofAccession totheWTO. Theviews expressed bymembers
oftheWorking Party onthevarious aspects ofLithuania 'sforeign trade régime [,andontheterms
andconditions ofLithuania 'saccession totheWTO] aresummarized below inparagraphs ....to.....WT/ACC/SPEC/LTU/8
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ECONOMIC POLICIES
Monetary andFiscal Policy
8. Therepresentative ofLithuania recalled thatthedirection ofmacro-economic policies during
1995to1997waslaiddown inaMemorandum ofStateEconomic Policy oftheRepublic ofLithuania,
acopyofwhich hadbeenprovided totheWorking Party. More specifically, heexplained thatthe
taxsystem consisted ofcorporate profit tax;personal income tax;value added tax;excises; taxes
onnatural resources, oilandgas;pollution tax;customs duties; ataxonfixed property; roadtax;
landtaxes; stamp taxonactivity (forexample, forobtaining licences); andother taxes (inheritance
tax,consularfees,etc.).Thetaxonpollutionwasmeanttoencourageinvestmentincleaningtechnology.
Since July1995 (Government Resolution No.1026), thecorporate profit taxwasreduced forcertain
sectors, notably those related toproduction ofmedicines andmedical services, agricultural machinery,
wasteprocessinganddisposal,newformsofenergy,transportation,constructionandtelecommunications.
Taxes onfixedproperty andtheroadtaxwereintroduced in1995. Theroadtaxwaslevied onenterprise
revenue (0-1percent) except forbanks which paidapercentage ofthemargin earned.
[Amember oftheWorking Party requested more specific information onthenature ofthetaxeslisted,
suchasthe"pollution tax",indicating ifthistaxwasonpersons, services orgoods, orwhether itwas
specific oradvalorem.]
Foreign Exchange andPayments
9. TherepresentativeofLithuaniainformedtheWorkingPartythathiscountryhadrecordeddeficits
initsmerchandisetradeequaltoUS$324millionin1994,US$943millionin1995andUS$1,124million
in1996. Thenational currency -thelitas-waspegged totheUSdollar (Llt.4=US$1) inagreement
withtheIMF; noplans existed toabandon thefixed exchange ratepolicy. Hefurther stated thatfull
litasconvertibility aswellascurrent account convertibility wasintroduced on3May1994following
theGovernment ofLithuania 'sacceptance ofArticle VIIIoftheArticles ofAgreement oftheIMF.
Investment Régime
10. TherepresentativeofLithuaniasaidthatforeignanddomesticinvestmentwasinprincipletreated
equally, except thatforeign investment wasprohibited inareasrelated tonational security anddefence,
narcotic andpoisonous substances, andtheorganizing oflotteries inaccordance withtheLawonForeignWT/ACC/SPEC/LTU/8
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Capital Investments intheRepublic ofLithuania. InJune1996, Parliament (theSeimas) hadapproved
anamendment totheConstitution allowing foreigners topurchase certain types ofland(non-agricultural
plotsrequired fortheconstruction andoperation ofbuildings andfacilities necessary fortheirdirect
activity).
11. TheLawonForeign Capital Investments stipulated thattaxation offoreign enterprises beno
lessfavourable thantherulesapplied todomestic natural andlegalpersons. Lithuania offered certain
taxholidays. Enterprises established between 1August 1995and1April 1997, withforeign investment
ofminimum US$2 million wereexempt fromprofit (income) taxforthefirstthree years andsubject
toa50percenttaxreduction forthefollowing three years, starting fromthedaythefirstprofit was
achieved. Domestic andforeign small enterprises (number ofemployees notexceeding 50andannual
salesofnomore than500,000 litas)received taxreductions amounting to70percentforthefirsttwo
years aftertheirestablishment and50percentforeachyearthereafter. Companies involved inthe
saleofagricultural products profit taxattherateof10percentprovided theagricultural items accounted
forminimum 60percentoftotalsalesoftheenterprise. Asfrom1April 1997, Lithuania exempted
allprofit ofdomestic orforeign enterprises spent oncapital investments from profit (income) tax.
Eligibility forthese benefits wasnotcontingent upon export performance oruseofdomestic inputs
intheproduction process.
State Ownership andPrivatization
12. TherepresentativeofLithuaniaexplainedthatprivatizationhadinitiallybeenimplementedthrough
investment vouchers which could beusedtopurchase Stateproperty, residential housing, agricultural
enterprises andrepurchasing ofland. Most ofthisprivatization, which allowed bidsbyemployees
andmanagement, hadproceeded without foreign participation. Marking thesecond stage ofthe
privatization process, aLawonPrivatization ofState-Owned andMunicipal Property hadentered into
force inSeptember 1995, providing forprivatization through public subscription ofshares; public
auction; public tender; salethrough direct negotiation; joint-ventures withState property; capital
lease; andthecreation ofaStatePrivatization Agency. TheStatehadretained stakes insome farms
orenterprises (30-90 percent)untiltheywerefullyprivatized inconnection withtheirtransformation
intojoint-stock companies during thefirststage ofprivatization. Assets soldbypublic auction were
privatized intheirentirety andtheState generally didnotretain ownership inprivatized enterprises.
The1995Lawstipulatedthatforeignanddomesticinvestorswouldparticipateintheprivatizationprocess
onanequal basis, bothintheform ofdirect andportfolio investments. Pursuant tothe1995 Law,
theGovernment hadestablished alistofenterprises andresidential holdings inagro-processing,WT/ACC/SPEC/LTU/8
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agro-services andindustrial sectors tobesubject totendering. Thelistestablished in1997comprised
836enterprises, including enterprises part-privatized atthefirststageofprivatization, andothersectors
andlarge-scale enterprises previously excluded from privatization suchasenergy, communications
andtransport services.
13. Privatization inagriculture, including therestoration oflandtoformer owners, hadproceeded
despite certain legal problems (only theState andnatural persons could ownland), uneconomic
partitioning oflandandother mainassets, andlackofcapital forfamily farming. Thegeneral policy
inthisareawastoofferpreferential bidding terms toagricultural producers. Farmers hadbeenoffered
favourable terms intheprivatization ofsome processing industries (meat, grain, dairies andsugar
factories). Inmost sectors 50percentormore oftheassets tobeprivatized hadbeenprivatized.
Regarding theprivatization inthesugar sector, Lithuania hadfoursugar refineries, allofwhich had
beentransformed intojoint-stock companies withmore than90percentoftheshares heldbyprivate
investors. Theremaining State-owned shares would beprivatized gradually inaprocess opentolocal
andforeign investors.
14. Asaresult ofthese various privatization efforts, by1January 1997 Lithuania hadwholly or
partiallyprivatized99.7percentofState-ownedfarms(notincludingagriculturalprocessingenterprises).
Asofthesamedate,Lithuania hadmade significant progress intheprivatization of287agro-processing
(meat, milk, grain, cropselection etc.)andagro-service enterprises thatwereidentified forprivatization
andexpected tocomplete theprocess in1997. These 287enterprises represented theentire share of
allState-owned assets inagro-processing. TheState hadexcluded fromtheprivatization process its
stakes in(i)19experimental farms atresearch institutions ofAgricultural science studies;
(ii)54teaching farms atAgriculture schools; and(iii)eight farms ofpure-strain enterprises.
15. Significant progress hadalsobeenmade inprivatizing industry. Asof1January 1997, the
Governmentestimatedthatapproximately88percentoftheindustrial(goods)enterprisesand97percent
oftheservices enterprises identified forprivatization, hadbeenprivatized. Theprivatization process
hadbeengiven newimpetus bythedecision toallow privatization inindustrial andnon-agricultural
service sectors totakeplace onacash(rather thanvoucher) basis, allowing theparticipation of
foreigners. Aspartoftheplantoprivatize onacashbasistheStateintended tosellshares injoint-stock
companies, retained during thefirststage ofprivatization, toqualified bidders.
16. ALawof28December 1994 provided alistofStateenterprise nottobeprivatized untilthe
year2000. Theoriginal listcomprised 234entities inareas such asrecreation, transportation,WT/ACC/SPEC/LTU/8
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pharmacies, andpostal services; thelisthadbeenreduced to110enterprises under anamendment
tothisLawon3April 1997.
[17. Amember requested Lithuania toprovide atableorchartindicating thestatus ofprivatization,
bysizeand/or typeoffirm, addressing allenterprises stillwholly orpartly owned bytheState,
information onhowmany State-owned firms existed prior toprivatization, howmany hadbeenfully
privatized, alistofenterprises andsectors stillwholly orpartly owned bytheState, theportion of
equity stillowned bytheState, theportion ofoutput andtraderepresented byprivate firms, howmany
firms hadbeenprepared forprivatization andforwhich privatization waspending, andhowmany
werenotatthistimecontemplated aspartoftheprivatization programme. Lithuania should alsodefine
theconditions whereby itwould consider itsprivatization programme completed andwhen itexpected
toaccomplish this.]
18. [Therepresentative ofLithuania saidthatLithuania agreed tocontinue toprovide information
onaperiodic basis ondevelopments initsprogramme ofprivatization afteraccession along thelines
ofthatprovided totheWorking Party during theaccession process, andonother issues related toits
economic reforms asrelevant toitsobligations under theWTO.] [Therepresentative ofLithuania
confirmed thereadiness ofLithuania toensure thetransparency ofitsongoing privatization programme
under theregular trade policy reviews intheWTO andtoprovide further information onrequest in
accordance withthenotification andconsultation provisions ofWTO. TheWorking Party tooknote
ofthisassurance.]
Pricing Policies
19. Some members oftheWorking Party noted thatcertain goods andservices remained subject
toprice controls andrequested details andplans regarding further deregulation ofprices. Lithuania
wasasked tolisttheproducts subject toprice controls andtoprovide information onthelegalbasis
forthesecontrols,thereasonsforthesecontrolsandtheconditionsunderwhichsuchorextendedcontrols
might beapplied inthefuture.
20. Therepresentative ofLithuania replied thatprice controls hadbeen relaxed gradually in
Lithuania. Controls onmark-ups onfoodstuffs hadceased asof1April 1995, thusprofit margins
werenolonger limited attheprocessor orretaillevel. Heprovided anupdated listofgoods andservices
subject topricecontrol, reproduced inTable 1.Hedidnotbelieve thatthenumber ofgoods andservices
subject topricecontrols would increase inthefuture. Healsonoted thathisGovernment hadabolishedWT/ACC/SPEC/LTU/8
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pricecontrols onState-owned precious metals inDecember 1996andplanned toremove pricecontrols
oncement, lime, limestone andmineral fertilizers bytheendof1997. Further price liberalization
intransportation andtelecommunication would belinked toincreasing competition resulting from
economic restructuring andprivatization. Heconfirmed thatLithuanian industries didnotreceive
electricity andgasatsubsidized prices, butpricecontrols would remain onresidential useofelectricity,
natural gasandheating tosupport low-income households. Private health service providers could not
exceed theprices setforState-supplied services bymore than60percent. Thismeasure wasapplied
inanenvironment ofinsufficient competition toalleviate thefinancial burden ontheState Social
Insurance Fund, which compensated citizens fullyorinpartfortheirexpenditures onhealth services
andpharmaceuticals. Hesaidthattheprice control onState-owned landwasconnected withthe
restoration ofprivate landownership aspartofagricultural reform. Hefurther stated thatpricecontrol
onState-owned landwould beabolished aftertherestoration ofprivate landownership inthecourse
oftheimplementation ofagricultural reform. Wood andwood products fromState-owned landwere
subject tominimum, notmaximum, prices. Heconfirmed thatprices ofgoods andservices inevery
sector, withtheexceptions listed inTable 1,were determined freely bymarket forces. Thelistof
goods andservices subject toprice controls setbytheState andanychanges tothislistwould be
published intheOfficial Gazette, andprice controls setbymunicipalities would bepublished inthe
localmass media.
21. Therepresentative ofLithuania confirmed thatintheapplication ofprice controls noworin
thefuture, Lithuania would apply suchmeasures inaWTO consistent fashion, andtakeaccount of
theinterests ofWTO members exporting goods asprovided forinArticle III.9oftheGATT 1994.
TheWorking Party tooknoteofthiscommitment.
Competition Policy
22. Therepresentative ofLithuania noted thattheLawonCompetition hadentered intoforce on
1November 1992andwasenforced through theStateCompetition andConsumer Protection Office.
TheCompetitionCouncil(thedecision-makingbodyoftheOffice)hadapprovedfourby-lawsconcerning
theabuse ofdominant position, agreements andconcerted activities restricting competition, control
ofmergers, andprohibition ofunfair activities. TheLawonCompetition wasapplied toallenterprises
irrespective ofownership orthekindofeconomic activity. Some provisions oftheLawonCompetition
were notapplied inexcluded sectors which were covered under separate legislation. Thus, certain
exemptions wereallowed forthesupply ofenergy, postal services, railways, production andtrade in
alcohol, sugar, telecommunications andairline services.WT/ACC/SPEC/LTU/8
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23. TheStateCompetition andConsumer Protection Office hadfined 20enterprises forabuse of
dominant position between 1992 and1995. Dominant enterprises werethose controlling 40percent
ormore oftherelevant domestic market; theOffice hadincluded enterprises withmarket shares
exceeding 60percentinalistofdominant suppliers. InJanuary 1996, theCompetition Council listed
sixenterprises holding from 60to90percentoftheirrespective markets andhaving abused their
dominant positions bycharging unreasonably highprices during 1994-1995. Thesixenterprises were
obliged tonotify price changes inadvance totheStateCompetition andConsumer Protection Office.
Thelistofdominant enterprises hadbeendiscontinued. Future abuse ofdominant position would be
investigated onacase-by-case basis.
FRAMEWORK FOR MAKING AND ENFORCING POLICIES
24. Therepresentative ofLithuania saidthatsovereign State power inLithuania wasexercised
bythePresident, theSeimas, theGovernment andtheJudiciary. TheSeimas wasaone-chamber
Parliament with141members. TheSeimas considered andenacted amendments totheConstitution,
enacted laws, considered theprogramme oftheGovernment, approved theState budget, established
Statetaxesandother obligatory payments, ratified international treaties, andconsidered other domestic
andforeign policy issues. ThePresident oftheRepublic wastheHead ofState. ThePresident
represented theStateofLithuania andperformed theduties laiddown bytheConstitution andthelaws.
TheGovernment wasthehighest authority ofexecutive power. TheGovernment wasledbythePrime
Minister andcurrently consisted of17Ministries. Thejudicial system inLithuania comprised the
Constitutional Court, theSupreme Court, theAppeals Court, theCounty Court anddistrict (city) courts.
Aspecial Commercial Court existed forthesettlement ofbusiness disputes.
25. Therepresentative ofLithuania added thatlocalgovernments acted freely andindependently
within thelimits oftheir competence, established bytheConstitution andlaws. Local Councils
maintained theright, within established limits andinaccordance withprocedures laiddown bylaw,
tolevy taxes onexcavation sites, traffic access, parking, street vendors, visual commercial
advertisements, etc.However, municipalities werenotentitled totaxitems subject totaxation atthe
national level. Local authorities thuscould notapply duties onimported goods.WT/ACC/SPEC/LTU/8
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POLICIES AFFECTING TRADE INGOODS
Trading Rights
26. Some members oftheWorking Party noted thatcertain business activities were subject to
licensing inLithuania andrequested alistofthetrade activities concerned inorder toassess whether
licences weregranted automatically onanon-discriminatory basisorwhether therewereinstances where
theStatelimited orrationed therighttotrade incertain business activities. Thelatter practice would
engage anumber ofWTO issues, notably regarding trademonopoly andStatetrading, which Lithuania
wasrequested toaddress.
27. Therepresentative ofLithuania replied thatcertain activities were subject tolicensing in
accordance withtheLawonAmendments andSupplements oftheLawonEnterprises of5July1995.
Tables 2.1and2.2"Licensing ofbusiness activities" listed business activities (goods andservices
respectively) subject tolicensing inLithuania. Heconfirmed thatLithuania maintained thesamecriteria
andprocedures forreviewing applications forlicences toengage intradeorproduction ofgoods, whether
theapplicants intended todealindomestic orimported goods, oracombination thereof, except as
noted inparagraph 29below. Licensing ofcommercial activity, including importation, wasapplied
toproducts containing alcohol; tobacco andtobacco products; oilproducts; narcotics andpoisonous
substances;chemicalmaterialsharmfultotheenvironment;andbiologicalmaterialsforplantprotection.
Regarding special foodstuffs andfood additives, thelicensing wasnotused andParliament was
considering aproposal fromtheGovernment toeliminate thelicensing ofsuchactivity fromtheLaw,
astheproducts concerned were already subject tosanitary andphytosanitary certification. Trade in
oilproducts (petrol, diesel gas,fueloilandlubricants) waslicensed toenforce uniform conditions for
allcompanies involved inimportation.
28. TheGovernment levied aStamp Taxonanumber ofservices provided byitsinstitutions,
including fortheissuance ofactivity licences. Taxrates hadbeenestablished inaccordance with
Resolution No.1123 of11November 1994, andwereindexed totherateofinflation. Thetaxwas
related orlimited totheapproximate costoftheservices rendered anddiffered according tothenature
ofthelicensed activity; forretail trade inlubricants thetaxamounted to1,000 litas(US$250), while
aone-year licence totrade inoilproducts (petrol, liquid fuel,kerosene, aircraft fuel,diesel fueland
lubricants) would cost500,000 litas(US$125,000). Suchfeeswerelevied forfiscal purposes. The
annual Stamp Taxes foractivity licences onalcohol andalcoholic beverages, tobacco andpetroleum
products arelisted inTable 3.WT/ACC/SPEC/LTU/8
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29. Therepresentative ofLithuania added thatactivity licences were granted automatically and
onanon-discriminatory basis, except inthefollowing cases:
(i) nolicences weregranted toforeigners fortheorganizing oflotteries andactivities related to
narcotic orpoisonous substances;
(ii) applications could berejected orsubject tolimitations regarding activities related tostrategic
goods -production andimportation wasstrictly controlled forreasons ofnational security or
environmental protection; and
(iii) activity licences relating toradioactive andnuclear material andwastes werereserved forState
enterprises andspecial enterprises inwhich theState heldallorthemajority oftheshares.
30. Therepresentative ofLithuania confirmed thattheformer Statemonopoly inforeign tradehad
beenabolished andthatnorestrictions existed ontheright offoreign anddomestic individuals and
enterprises toimport andexport goods andservices within Lithuania 'scustoms territory, except as
provided inparagraph 29.Heconfirmed thatindividuals andfirms werenotrestricted intheirability
toimport andexport based ontheirregistered scope ofbusiness, andthecriteria forregistration were
generally applicable andpublished intheOfficial Gazette. TheWorking Party tooknoteofthese
commitments.
Market Access Negotiations
31. Therepresentative ofLithuania submitted anInitial Offer forMarket Access Negotiations on
Goods in[document WT/ACC/SPEC/LTU/3 of14]October 1996. Anumber ofmembers entered
intomarket access negotiations withLithuania. Theconcessions andcommitments onimported and
exported goods agreed between Lithuania andmembers oftheWorking Party areannexed totheProtocol
ofAccession ofLithuania which isreproduced intheAppendix tothisReport. Asindicated inthe
conclusions ofthisReport, theWorking Party tooknoteofthemarket access commitments ofLithuania.
A. Import Regulation
Customs Code
32. Therepresentative ofLithuania saidthattheSeimas approved anewCustoms Code on
18April 1996, replacing theLawonCustoms of29April 1993andcertain provisions oftheLawon
Customs Tariff andotherlegislation. TheCustoms Code wasbased ontheprovisions oftheCommunity
Customs Code (Council Regulation 92/2913/EEC anditsamendments), defining theresponsibilitiesWT/ACC/SPEC/LTU/8
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ofgovernment institutions involved intheadministration ofcustoms andproviding theframework for
importation, exportation andgoods intransit. Headded thatthenewCustoms Code included
WTO-consistent provisions ontheapplication ofcustoms tariffs, customs valuation, rules oforigin,
dutydrawback, freetrade zones, etc. ThenewCustoms Code wasduetoenter intoforce on
1January 1998.
33. Amember asked Lithuania todescribe therelevant provisions oftheCustoms Code, with
particular reference totheareas addressing WTO obligations, andexplain whytheCode would not
come intoforce until1998. Thismember sought fullimplementation ofthislegislation nolaterthan
thedateofLithuania 'saccession totheWTO.
34. Therepresentative ofLithuania saidthatbefore thenewCustoms Code entered intoforce a
number oflawswhich werenotinfullconformity withtheprovisions oftheCode would needtobe
amended byParliament, andimplementing regulations fortheCode would needtobeprepared and
adopted bytheGovernment. HisGovernment hadbegun thisprocess inJuly1996, andhaddecided
thattheimplementing provisions oftheCode would bebased ontheImplementing Provisions ofthe
Community Customs Code(Commission Regulation 93/2454/EEC anditsamendments). Heconfirmed
thatLithuania 'scustoms regulations would befullyWTO-consistent upon thedateofaccession and
thatLithuania would haveimplementing regulations andother legalrequirements forimplementation
inplace bythatdate.
Ordinary Customs Duties
35. TherepresentativeofLithuaniaconfirmedthattheConventionontheHarmonizedSystementered
intoforce inLithuania on1January 1995. Thestructure ofcustoms tariffs wasregulated bythe
Government; ratescould bechanged byGovernment decision based onproposals byMinistries, taking
account ofLithuania 'sinternational obligations andcommitments. Tariffs hadaccordingly beenreduced
onmajor foodproducts (milk anddairy products, butter, eggs, sausages andsugar) inSeptember 1995.
Theapplied customs tariff wasprovided totheWorking Party [themost recent version, established
byGovernment Resolution No.268of24March 1997, isreproduced inAnnex II,Table 1ofdocument
WT/ACC/LTU/15]. Goods weresubject totheautonomous rateofduty, except forimports originating
incountries enjoying mostfavoured nation status inLithuania [listed inAnnex II,Table 3ofdocument
WT/ACC/LTU/15] which were subject toconventional import duties, andgoods imported under
preferential arrangements [thecountries involved arelisted inAnnex II,Table 4ofthesamedocument].WT/ACC/SPEC/LTU/8
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AnewdraftLawonCustoms Tariffs stipulated thatratesofcustoms duties would bedetermined by
Parliament.
36. Tariff rateswereadvalorem except forspecific (mixed) duties onalcohol, tobacco andsugar.
Specific duties onmeatanddairy products were eliminated inFebruary 1995.
Other Duties andCharges Levied onImports butnotonDomestic Production
37. Itwasnoted thatLithuania hadbound allduties andcharges other thantheordinary customs
duties referred toinArticle II:1(b) oftheGATT 1994 [atzero] [innon-discriminatory manner] for
allproducts inthegoods schedule annexed toitsProtocol ofAccession (annexed).
Tariff RateQuotas, Tariff Exemptions
38. Some members noted thatLithuania usedtariff quotas toprovide fortemporary import relief
forgoods inshort supply. Lithuania wasasked tospecify thegoods subject totariff quotas andto
explain theoperation ofthequota system. Lithuania should alsoprovide ajustification forthesystem,
some information ontheportion ofimported products affected, andoutline plans forthedisposition
ofthesystem afterLithuania 'saccession totheWTO.
39. Therepresentative ofLithuania replied thattariff quotas were opened under Government
Resolution No.653(8May1995), implementing theLawonStateRegulation ofEconomic Relations
inAgriculture (22December 1994). [Thelistofproducts currently subject togeneral tariff quotas
duetoshort supply isreproduced inTable 4.]Heconfirmed thatimports from allcountries were
afforded thesame access under thegeneral tariff-rate quotas.
40. Some ofthetariff quotas foragricultural products were allocated through public tenders
announced intheofficial gazette "Valstybes zinios". Enterprises requesting quotas orparticipation
intenders submitted application forms totheresponsible Ministry. Domestic sugar processors were
required toexhaust thesupply ofdomestic rawsugar before being allowed toimport raworwhite
(refined) sugar atzerodutyunder tariff quotas. Domestic sugar producers could import raworwhite
sugar attheMFN over-quota dutyrateanytime. Concerning theallocation ofthetariff-rate quotas
forrawsugar,theGovernment(MinistryofAgricultureandForestry)wouldselectoneormoresuppliers
based onquality andprice which subsequently concluded contracts withdomestic processors having
filledtheirpurchasing quotas fordomestic sugar beets. Lithuania currently hadfourdomestic processorsWT/ACC/SPEC/LTU/8
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which allmettheirlocalpurchase quotas, andzero-duty imported rawsugar wasallocated equally,
i.e.in25percentshares, among them. Entitlements totariff quotas forirregular transparent glass
bottles wasautomatic uponpresentation oftheapplication andthesalescontract. Special shipsfurniture
wasimported byaStateshipyard; domestic production offurniture wasincreasing andthetariffquota
wasexpected tobeabolished in1997.
FeesandCharges forServices Rendered
41. Therepresentative ofLithuania saidthat, inaccordance withtheLawonStamp Taxof
23June1994andratesestablished through Resolution No.1123of11November 1994, stamp taxes
were levied fortheissuance ofofficial documents (such aslicences) aswellasfortheprovision of
certain services bygovernment institutions, including customs clearance operations. Stamp taxeswere
collectedbytheinstitutionsresponsibleforissuingtheappropriatedocuments.TheStateTaxInspectorate
oftheMinistry ofFinance controlled howthese institutions collected theStamp Taxes. Hestated that
theStamp Taxwassetatdifferent ratesdepending onthenature oftheproduct andthetypeofservice
provided. Customs services feesamounted to20to30litasfortheregistration ofgoods and25litas
fortheissuance ofdocuments, including certificates oforigin. Thestamp taxes applicable forthe
processing ofimports bycustoms andforother purposes related totrade areenumerated inTable 5.
Hestated thatthese feesandcharges wererelated orlimited totheapproximate costoftheservices
rendered. Additional customs feeswereassessed forsupplementary services suchascustoms formalities
performed outside theCustoms office oroutside itsnormal business hours, forthesupply ofnon-
confidential information fromthedatabase oftheCustoms Department, etc.Consular feeswereapplied
under theLawonConsular Feesof23June1994andaccording toGovernment Resolution No.1135
ofNovember 1994 forconsular services, notary actions andlegaldocuments issued bytheConsular
Department ofLithuania 'sMinistry ofForeign Affairs oritsdiplomatic missions andconsulates around
theworld.
42. Therepresentative ofLithuania saidthatfrom thedateofaccession anyapplication offees
andcharges byLithuania forservices rendered onimports would beinaccordance withtherelevant
provisions oftheWTO Agreements, inparticular Articles VIIIandXofGATT 1994. TheWorking
Party tooknoteofthiscommitment.WT/ACC/SPEC/LTU/8
Page14
Application ofInternal Taxes toImports
43. Some members oftheWorking Party asked Lithuania toenumerate theproducts subject to
excise taxes, comment ontheuseofspecific ratesandconfirm whether imported anddomestic products
were treated equally. Amember noted "small" breweries were exempted from excise taxandthat
imported cigarettes attracted thehighest excise taxrate,while taxesondomestically-produced cigarettes
weredifferentiated according toquality. Lithuania wasasked toexplain howthistreatment could be
consistent withArticle IIIoftheGATT 1994. Specific questions concerning thetaxation ofcigarettes
alsoreferred tothelinkbetween excise taxes andcustoms duties.
44. Therepresentative ofLithuania provided theinformation onproduct-specific excise taxes
[reproduced inTable 6].Rates wereadvalorem, insome cases specific minima hadbeenestablished
(inlitasperunit). Lithuania hadnoplans toconvert specific amounts intoadvalorem ratessincelarge
price differentials existed between domestic andimported goods. Ondomestic products, excise taxes
were levied ontheselling price exclusive ofVAT; thetaxbaseforimports wasthecustoms value
inclusive ofcustoms duties. Hesaidthatexcise taxes weredifferentiated (based onquality) forcertain
domestically-produced andimported wine, beerandcigarettes. Lithuania hadtaken concrete steps
tobring itsexcise taxesoncigarettes intoconformity withGATT Article III.Asfrom1October 1997,
bothimported anddomestically-produced filter-tipped cigarettes would besubject tothesametaxrate.
Thepreferential excise taxtreatment ofsmall breweries wasatransitional measure which Lithuania
intended tomodify bythetimeofitsaccession totheWTO.
45. SomemembersoftheWorkingPartyaskedabouttheapplicationofvalueaddedtaxinLithuania,
including thebasisfortaxation ofimported products. Amember asked aclarification onthetreatment
ofimported likeproducts inthelightofArticle IIIoftheGATT 1994, noting thatLithuania applied
areduced rateofVAT tosome agricultural products ofdomestic origin.
46. Therepresentative ofLithuania saidthatvalue added taxof18percentwascharged ongoods
andservices. Goods imported intobonded warehouses andallexports werezerorated, andanumber
ofgoods andservices wereexempt fromVAT(listed intheMemorandum). Provisions regarding VAT
werechanged in1995 and1996; atemporary rateof9percentandexemptions fromVAT forsome
products were applied until1January 1997. Since thatdate, bothdomestic andimported products
weresubject to18percentvalue added tax.Thetaxbasefortheimposition ofVAT included excise
taxes, ifany,andcustoms duties onimported products.WT/ACC/SPEC/LTU/8
Page15
47. Therepresentative ofLithuania saidthat,from thedateofaccession, Lithuania would apply
national treatment withregard totherateofalltheinternal taxes andcharges onbothimports and
domestically-produced products. TheWorking Party tooknoteofthiscommitment.
Quantitative Import Restrictions, including Prohibitions, Quotas andLicensing Systems
48. Amember sought anundertaking from Lithuania thatanyquantitative import restrictions
inconsistent withArticle XIoftheGATT 1994 would beeliminated onaccession.
49. Therepresentative ofLithuania stated thatLithuania didnotmaintain import prohibitions other
thanabanontheimport ofsnuff andchewing tobacco (HS2403.99.10.0), which wasadministered
inconjunction withabanondomestic production ofthesame products which would bejustified under
Article XX(b) oftheGATT 1994. Lithuania didnotmaintain anyimport quotas.
50. InformationonimportlicensingproceduresaccordingtotheformatapplicabletoWTOmembers
wasprovided totheWorking Party indocument WT/ACC/LTU/7/Add.1. Therepresentative of
Lithuania stated thatLithuania didnotmaintain anyimport licensing restrictions other thanforthe
following goods:
- narcotics andother controlled substances (HScodes 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 andloads ofdualpurpose (civil andmilitary), means ofdefence, chemical andbiological
materials which canbeusedintheproduction ofchemical andbacteriological weapons ofmass
destruction; nuclear missiles, equipment andtechnologies; andgoods andtechnologies used
intheproduction ofmissiles -justified under Article XXI;
- dangerous loads (UNlistofgoods -justified under Article XXI);
- usedtyres (HS4012.20.90) andelectric fishing tackle (HS8543.80.80.0) -justified under
Article XXforreasons ofenvironmental protection.WT/ACC/SPEC/LTU/8
Page16
51. [Amember requested acommitment fromLithuania thatanyquantitative import restrictions
inconsistent withArticle XIoftheGATT 1994would beeliminated onaccession.] Therepresentative
ofLithuania saidthatLithuania willobserve WTO obligations relevant toquantitative restrictions on
imports andimport licensing procedures.
Other Restrictions
52. Amember asked Lithuania nottoexpand theuseofitsminimum price system, reminding
Lithuania thatboththeWTO Agreements onAgriculture andCustoms Valuation prohibited theuse
ofminimum import prices orreference prices. Thismember sought acommitment from Lithuania
thatitwould eliminate anyimport reference prices inplace atthetimeofaccession, andthatsuch
measures would notbereintroduced except inaccordance withWTO Agreements.
53. Therepresentative ofLithuania saidthatLithuania currently applied import reference prices
onlyforoilproducts (tocombat customs fraud) andsugar. Lithuania would eliminate anyimport
reference prices inplace atthetimeofaccession andwould notreintroduce suchmeasures except in
accordance withWTO provisions.
Customs Valuation
54. Noting astatement byLithuania thatexisting legislation didnotincorporate allprovisions of
theGATT 1994Customs Valuation Agreement, Lithuania wasrequested toexplain which provisions
weremissing anddetail plans fortheintroduction ofthese provisions. Some members further noted
thatGovernment Resolution No.281of28February 1995 appeared toauthorize reference prices on
imports.
55. Therepresentative ofLithuania saidthatthegeneral principles regarding customs valuation
were laiddown inArticle 10oftheLawonCustoms Tariffs (1993) andimplemented through
Government Resolution No.449of16June1993. Thislegislation didnotcontain alltheprovisions
oftheGATT 1994 Agreement onImplementation ofArticle VII,including itsArticle 1(2)(b)and
(c),Article (2),Article 7(1)(reference totheprinciples andgeneral provisions oftheAgreement)
and7(2),Article 14andArticle 15(2)(d),and(e)andArticle 15(5).Most oftheprovisions missing
inthepresent legislation would beincorporated inanewOrder ofCustoms Valuation ofGoods.
Moreover, thenewCustoms Code, expected toenterintoforce on1January 1998, repeated verbatim
theprovisions oncustoms valuation oftheGATT 1994Agreement. ThenewCode anditsimplementingWT/ACC/SPEC/LTU/8
Page17
legislation,modelledontheregulationsoftheEuropeanCommunities,wouldcontainnewWTO-conform
provisions inseveral areas, including onprohibited valuation methods, notification toimporters,
confidentiality, thevaluation ofcarrier media bearing software fordataprocessing equipment, and
thevaluation ofinterest charges.
56. TherepresentativeofLithuaniaconfirmedthatGovernmentResolutionNo.281provideddejure
thepossibility toapply reference prices, butadded thattheprovisions hadnotbeenused, except with
regard tosugar andoilproducts (asatransitional measure tobeabolished before Lithuania become
Member oftheWTO). TheLawonSugar andtheLawonState Regulation ofEconomic Relations
forAgriculture alsogranted theGovernment authority toestablish threshold (reference) prices. The
authority toestablish reference prices wasnotincluded inthenewLawonSugar (inpreparation).
Headded thaton25June1996, Lithuania hadapproved Government Resolution No.751on"Customs
Assessment ofPrices forImported Goods". According tothisResolution, Ministries responsible for
trade issues established aspecial price list("price-in-checking" system), tobereviewed every three
months, forcertain imported goods tofight customs fraud. [Products covered bythesystem are
enumerated indocument WT/ACC/LTU/12, pp.13-14.] Theestablished order ofcustoms valuation
wasfollowed forgoods notincluded inthespecial list.
57. Concern wasexpressed about the"price-in-checking" system andLithuania wasasked toexplain
indetail whythesystem would notconstitute aminimum price scheme. Areference price could not
beconsidered atransaction value asdefined intheWTO Customs Valuation Agreement, andtheprocess
ofusing "price-in-checking" didnotconform tothehierarchy ofother valuation methods provided
forintheAgreementandinLithuania'snewCustomsCode.LithuaniawasurgedtouseWTO-consistent
provisions toassess valuation ofimports; the"price-in-checking" system should notbeinplace after
Lithuania 'saccession totheWTO.
58. Therepresentative ofLithuania explained thatprices inthespecial listwere utilized inthe
assessmentofdutiesandtaxeswhenimporterswereunabletosubstantiatedeclarationsofalowercustoms
value, ortoprovide information toallow theothermethods ofcustoms valuation (non-transaction value)
tobeused. Theimporter wasnormally asked todemonstrate thatthevalue oftheimported goods
approximated thevalue ofidentical orsimilar goods imported andsoldinLithuania. Deductions would
bemade forexpenses oncommissions, andthevalue would beadjusted forprofit andgeneral expenses,
transportation andinsurance costs, import duties andtaxes, etc.Article 6oftheLawonCustoms
allowed alldecisions taken bythecustoms authorities, including "price-in-checking" decisions, tobe
appealedtotheCustomsDepartmentand/ortheCourt.The"price-in-checking"systemwasatransitionalWT/ACC/SPEC/LTU/8
Page18
measure andwould notbepartofthenewCustoms Code. The"price-in-checking" system would
accordingly bediscontinued when thenewCustoms Code entered intoforce on1January 1998. In
anycase, inhisview, these checking prices didnotconstitute aminimum price system.
59. Having reviewed thenewCustoms Code withrespect tocustoms valuation, amember noted
that itsprovisions didnotseem torepresent fullimplementation oftheWTO Agreement onthe
Implementation ofArticle VIIoftheGATT 1994. Article 29appeared topermit customs valuation
based onmeasures inconsistent withtheAgreement, theInterpretative Notes oftheAgreement were
notfullyincorporated, Articles 2to6oftheWTO Agreement were implemented onanincomplete
basis, theCode contained nolegalreference totheprovisions ofArticle 7.3oftheAgreement (importers '
righttoawritten explanation ofalternative valuation methods), thewording ofArticle 33oftheCustoms
Code regarding thedutiability ofroyalty payments wassomewhat broader thantheWTO Agreement,
Article 35oftheCustoms Code didnotcommit Lithuania tovaluation ofsoftware based onthevalue
ofthemedia, andtheCustoms Code contained nolegal counterparts toWTO provisions regarding
confidentiality, rightofappeal, andtherighttoawritten explanation.
60. Therepresentative ofLithuania replied thattheconcern regarding Article 29oftheCustoms
Code wasamisunderstanding arising fromatranslation error; theArticle required therulesofcustoms
valuation laiddown bytheCustoms Code tobeusedinallcases when import taxes, other thanimport
duties, orvalue-based import prohibitions orrestrictions, were applied. Some oftheInterpretative
Notes oftheAgreement were notincorporated intheCustoms Code, butwould beincluded inthe
Implementing Provisions oftheCustoms Code. These provisions werecurrently inpreparation and
would alsoenter intoforce on1January 1998. TheImplementing Provisions oftheCustoms Code
would incorporated theprovisions ofArticles 2-6oftheWTO Agreement missing inArticle 31of
theCustoms Code, thedefinitions setforth inparagraphs 1to3andinparagraph 5ofArticle 15of
theAgreement, andtheprovisions concerning valuation ofsoftware based onvalue ofthemedia. A
newOrder ofCustoms Valuation ofGoods, based ontheappropriate provisions oftheCode and
incorporating most oftheabove-mentioned provisions, would beadopted bytheGovernment inthe
nearfuture.
61. Regarding therighttowritten explanation andappeal, hesaidthatArticle 5oftheCustoms
Code covered requests ofimporters concerning explanation ofalternative valuation methods. Customs
wasrequired torespond inwriting towritten requests. Incaseofrulings against theapplicant, this
information would alsosetoutthegrounds onwhich Customs hadbased itsdecision. Therightof
appeal wasprovided forinArticle 226oftheCustoms Code. Heacknowledged thattheCustoms CodeWT/ACC/SPEC/LTU/8
Page19
contained broader wording regarding thedutiability ofroyalty payments thantheWTO Agreement,
butnoted thatthewording ofparagraph 1(3)ofArticle 33oftheCustoms Code hadbeentaken from
theInterpretative Note toparagraph 1(c)ofArticle 8oftheAgreement.
62. Therepresentative ofLithuania confirmed thatasfromthedateofitsaccession Lithuania would
notuseanyform ofreference price offixed values toestablish thevalue ofimports andexports for
customs purposes. Healsostated thatfrom thedateofitsaccession Lithuania 'scustoms valuation
legislation andpractice would beinfullconformity withtherelevant WTO provisions, including
Article VIIofGATT 1994andtheAgreement onImplementation ofArticle VIIwithout anytransition
period. Lithuania would implement Decision 4.1oftheCustoms Valuation Committee concerning
thevaluation ofcarrier media bearing software fordataprocessing equipment from thedateofits
accession. TheWorking Party tooknoteofthiscommitment.
Other Customs Formalities
63. Therepresentative ofLithuania saidthatLithuania followed thework oftheWorld Customs
Organization andtheWTO regarding aharmonization programme fornon-preferential rulesoforigin.
Inthemeantime,LithuaniawastakingintoaccountandimplementingtheresultsoftheWTOnegotiations
tomaintain atransparent system fornon-preferential rulesoforigin; toadminister theserulesoforigin
inaconsistent uniform, impartial andreasonable manner; andtobasetheserulesoforigin onapositive
standard. According toArticle 10oftheLawonCustoms Tariff currently inforce goods originated
inacountry ifwholly obtained orproduced inthatcountry or,ifmore thanonecountry wasinvolved,
where therawmaterials orcomponents underwent substantial, economically justified processing or
working. Processing orworking wasconsidered substantial ifresulting inachange infour-digit HS
tariff heading forthenewproduct. These criteria applied inrespect ofgoods originating incountries
enjoying mostfavoured nation status inLithuania. Imports fromthese countries satisfying theorigin
criteriawouldbesubjectconventional(orMFN)tariffrates,otherwisethe(normallyhigher)autonomous
tariff rateswould apply.
64. Headded thatChapter VofthenewCustoms Code, which wasscheduled toenter intoforce
on1January 1998, provided theframework fortheapplication ofnon-preferential rulesoforigin which,
inhisview, were WTO-consistent. Those provisions stated interaliathattheoriginating status of
aparticular goodwaseither thecountry where thegoodhadbeenwholly obtained or,when more than
onecountry wasconcerned initsproduction, thecountry where thelastsubstantial transformation had
beencarried out. Thecriteria under which products were deemed tobenew, andtheirprocessingWT/ACC/SPEC/LTU/8
Page20
orworking considered toberepresenting animportant stage ofmanufacture, would beestablished
byinternational agreements concluded between Lithuania andother countries orbytheImplementing
Provisions ofthenewCustoms Code. ThedraftImplementing Provisions onrulesoforigin werebased
ontheImplementing provisions oftheCommunity Customs Code.
65. Amember reviewed theinformation provided byLithuania andwasnotconvinced that
Lithuania 'srules oforigin system mettheprocedural obligations intheWTO Agreement onRules
ofOrigin. Specifically, regarding preferential rules oforigin, Lithuania wasasked toconfirm that
administrative determinations ofgeneral application forpreferential rules oforigin wereissued; that
when issuing administrative determinations ofgeneral application, themethod forcalculating the
advalorem percentage criterion would beindicated inthepreferential rulesoforigin; thatassessments
ofthepreferential origin accorded toagood were issued assoonaspossible, butnolaterthan150
daysafterarequest forsuchanassessment byanexporter, importer, oranyperson withajustifiable
cause; andthatanyadministrative actions taken inrelation tothedetermination ofpreferential origin
wasreviewable promptly byjudicial, arbitral oradministrative tribunals orprocedures, independent
oftheauthority issuing thedetermination. Lithuania wasalsoasked toclarify therôleof"independent
experts" inthedetermination ofrules oforigin.
66. Therepresentative ofLithuania replied thatpreferential rulesoforigin, which formed anintegral
partofallfreetrade agreements concluded byLithuania andenjoying thestatus oflaw,wereapplied
directly without anyadditional implementing statutes orregulations. Allfreetradeagreements inforce
hadbeenpublished intheOfficial Gazette. Themethod forcalculating theadvalorem percentage
wasindicated inthepreferential rules oforigin. Pursuant toGovernment Resolution No.774of
16October 1992, allcomplaints, requests orsuggestions ofexporters, importers oranyother person,
including requests concerning assessments ofpreferential origin, were tobeconsidered within one
month. ThenewCustoms Code contained similar provisions ontheexamination ofrequests; where
request foradecision wasmade inwriting thedecision should bemade within 8working days, unless
lawsandother legalactsprovided other term, andadecision requiring additional information should
bemade within thirty working days. Exceptionally, theCustoms authorities could exceed thestipulated
period byupto10working days. Theapplicant would beinformed inwriting ofthedecision orthe
extension oftheperiod necessary fortheexamination oftherequest. According totheLawonCustoms
currently inforce, legalandnatural persons hadtherighttoappeal against alldecisions taken bycustoms
authorities including thedetermination ofpreferential origin totheCustoms Department and/or tothe
Court. ThenewCustoms Code alsocontained aChapter regulating theprocedure ofappeals against
decisions taken bytheCustoms authorities.WT/ACC/SPEC/LTU/8
Page21
67. Concerning the"independent experts ”,therepresentative ofLithuania saidthatthese were
enterprisesdealingwithexaminationofgoods,includingverificationofpricesandpreliminaryassessment
ofpreferential origin. Theassessment procedure forgoods produced inLithuania wasestablished by
theMinistry ofIndustry andTrade andCustoms Department on26March 1993. Exporters paidthe
"independent experts" fortheir services, butthecustoms authorities were notbound bysuch
determinations, andexporters could prove theoriginating status ofgoods directly tothecustoms
authorities. Theexperts wererequired topassatestonceayear; 11"independent experts" hadbeen
certified for1997. Most oftheseenterprises weremembers oftheLithuanian Association oftheGoods ’
Examination Enterprises. According totheprocedure forassigning experts approved pursuant tothe
Statute thisAssociation, theexperts wereprohibited fromdisseminating confidential information. by
experts isprohibited. Theprocedure forassigning experts wasbased ontherules oftheGerman
Chamber ofCommerce.
68. Procedures hadbeenstreamlined forimports ofsmall consignments andfrequent traders.
The1996 Customs Code contained appropriate provisions regarding theapplication ofsimplified
procedures. Further work onsimplification ofexisting procedures included thecreation ofaCustoms
Information System based ontheASYCUDA package ofUNCTAD andtheestablishment ofaudit
units atregional customs houses.
Preshipment Inspection
69. Therepresentative ofLithuania saidthatLithuania didnotengage private sector firms tocarry
outpreshipment inspection.
Anti-Dumping, Countervailing Duties, Safeguard Régimes
70. Some members oftheWorking Party requested information about thestatus oflegislation related
toanti-dumping, countervailing duties andsafeguard measures anditsconformity withWTO disciplines.
Amember reminded Lithuania thatintheabsence oftherequired legislation, Lithuania would notbe
abletoavailitselfofthetemporaryprotectionmechanismsprovidedforintherelevantWTOAgreements.
71. Therepresentative ofLithuania replied thatLithuania wasworking onadraft Law on
Anti-dumping which would follow therequirements oftheWTO regarding anti-dumping. Lithuania
wasconsidering whether todraftandimplement countervailing dutyandsafeguard régimes.WT/ACC/SPEC/LTU/8
Page22
72. Therepresentative ofLithuania saidthatanylegislation inplace atthetimeofaccession or
implemented inthefuture providing fortheapplication ofmeasures taken forsafeguard, anti-dumping
orcountervailingdutypurposeswouldconformtotheprovisionsoftheWTOAgreementsonSafeguards,
onAnti-dumping andonSubsidies andCountervailing Measures. Intheabsence ofsuchlegislative
authority inplace atthetimeofaccession, Lithuania would notapply measures forsafeguard,
anti-dumping orcountervailing dutypurposes untillegislation inconformity withtheprovisions of
these WTO Agreements hadbeenimplemented. TheWorking Party tooknoteofthiscommitment.
B. Export Regulations
Customs Tariffs, FeesandCharges forServices Rendered, Application ofInternal Taxes toExports
73. Therepresentative ofLithuania saidthatexport duties ranging from15to50percenthadbeen
imposed temporarily oncertain rawmaterials ofimportance tothelocalindustry. Allthese export
duties were abolished inOctober 1994 byGovernment Resolution No.985.Effective 1July1996,
export prohibitions werelifted oncertain rawmaterials ofinterest tothedomestic industry andreplaced
byexport duties of60percent, applied onanMFN basis, through Government Resolution No.268
of24March 1997. [Theproducts currently subject toexport duties arelisted inTable 7.]Theexport
duties applied onabilateral basis remained ineffect asthese were somewhat lower thantheduties
established through Government Resolution No.268(discussed infurther detail inthesection "Trade
Agreements"). Therepresentative ofLithuania confirmed thatanychanges intheexport tariffrégime
would bepublished intheofficial journal.
74. Exported goods, withthefewlisted exceptions inTable 7,wereexempt fromcustoms duties
andVAT. Lithuania maintained some customs feesonexportation aspartoftheapplication ofthe
Stamp Tax. These feeswererelated orlimited totheapproximate costoftheservices rendered. The
feesandcharges areenumerated inTable 7.ThenewCustoms Code, scheduled toenter intoforce
on1January 1998, provided aframework fortheimplementation ofadutydrawback system.
75. [Amember stated thatLithuania should eliminate thedifference intheapplication ofitsexport
tariffs, andshould commit thatafteraccession, itwould minimize theuseofsuchtaxes andthatthey
would beapplied inaccordance withtheprovisions oftheWTO Agreement.] Therepresentative of
Lithuania saidthatuseofexport taxes would beconsistent withWTO norms, andanysuchtaxes at
thetimeofaccession would beintheWorking Party report, andthatafteraccession, anysubsequent
useofsuchmeasures would benotified inthisfashion totheWTO andpublished intheOfficial Gazette.WT/ACC/SPEC/LTU/8
Page23
Export Restrictions
76. Some members oftheWorking Party noted thatLithuania restricted exports ofvarious goods.
Lithuania wasasked toidentify themeasures maintained, theaffected products, thereasons whyexports
were restricted andtoindicate anyplans forfuture useofexport restrictions. Amember noted
Lithuania 'sintentions toreplace existing export prohibitions withexport duties andrequested that
Lithuania indicate specifically when thisconversion would takeplace, andacommitment fromLithuania
tophase outandeliminate theexport duties inaccordance withanegotiated timetable.
77. Therepresentative ofLithuania saidthatallprevious export banswereabolished byGovernment
Resolution No.716(of18June1996) andreplaced byexport duties.
78. Licences wererequired forexports ofethylalcohol, metals andalloys, metal waste andscrap,
andobjects ofcultural value (made before 1950). Licenses werealsorequired toengage inexportation
ofnarcotics andhighly effective orpoisonous substances (notusedforpharmaceutical purposes), oil
products andrawwood. TheLawconcerning Control ofImport, Transit andExport ofStrategic Goods
andTechnologies, entering intoforce on1July1997, stipulated licensing bytheMinistry ofNational
Economy forexports ofdualusegoods, technologies andsoftware. Asatemporary measure in1995,
continued through 1996, theGovernment hadmaintained certain export restrictions during periods
ofshortsupply ofgrain, flourandcompound feed. Inthefuture, export quotas onagricultural products
would onlybetemporary measures applied inemergency situations. Export controls onethylalcohol
werelinked tothecollection oftaxes andtodiscourage production ofcounterfeit alcoholic beverages.
Export Subsidies
79. Therepresentative ofLithuania saidthattheGovernment hadadopted aresolution "OnActions
ImprovingForeignTradeRegulationandExportDevelopment"inJanuary1995.Theresolutioncovered
drafting oflegislation, export promotion andfunding, management oftrade-related information and
education andtraining ofexport specialists. Lithuania hadalsoadopted aNational Program of
ImplementationofLithuanianForeignTradePolicyGuidelinesfor1996-1998.Theprogrammeincluded
implementation ofanexport programme developed bytheLithuanian Export Promotion Agency and
theestablishment ofExport Support andExport Guarantee Funds. Lithuania hadalsoconsidered the
development ofacredit insurance system, buthadyettodecide onitsimplementation. Indeveloping
anexport credit insurance model, Lithuania tookintoaccount therecommendations oftheOECD.
Therepresentative ofLithuania confirmed thatifanexport credit insurance system (agency) was
established inLithuania, itwould actinaccordance withWTO requirements.WT/ACC/SPEC/LTU/8
Page24
80. Thepurpose oftheLithuanian Export Promotion Agency, which wasestablished attheend
of1995, wastopromote exports ofLithuanian goods anddemand forLithuanian services. Itsmain
functions were toanalyze andprovide information toLithuanian exporters andservice providers on
foreign market conditions; toestablish Lithuania 'strade representation offices abroad; toprepare,
implement andmonitor trade development programmes toensure theirconsistency withWTO rules;
tostudy issues affecting trade activities andformulate recommendations toLithuanian authorities;
toconsult State, public andprivate institutions onforeign trade issues; andtoprovide education and
training totheforeign trade community inLithuania.
81. TheGuaranteeFundforProductionLoanswasunderestablishmentandwouldreplacetheExport
Support Fund, which ceased operations attheendof1996. Thenewguarantee fund, which wasfunded
bytheGovernment, would devote 90percentofitsresources toproduction loanguarantees. These
guarantees would assist enterprises inobtaining working capital intheformofshort termcredits (up
tosixmonths) fromcommercial banks. Enterprises werecharged upto2percentoftheguaranteed
loanasafee.Theguarantee facility wasnotcontingent upon export performance. Theremainder of
theFund'sresources would beallocated totrade promotion activities suchastraining, co-financing
ofexhibitions andfairs, preparation ofprospects andcatalogues, etc.The1997 budget oftheFund
amounted toLTL40million.
82. [Amember requested Lithuania toconfirm thatitdidnotmaintain subsidies which metthe
definition ofaprohibited subsidy, within themeaning ofArticle 3oftheAgreement onSubsidies and
Countervailing Measures, andwould therefore notseekatransitional period fortheelimination ofsuch
measures within afixed period oftime.]
C. Internal Policies Affecting Foreign Trade inGoods
Industrial Policy, including Subsidies
83. Therepresentative ofLithuania expected some sixyears would berequired torestructure
Lithuania 'sindustrial sector. Industries targeted fordevelopment included wood processing; flax;
processing ofskinsandfurs; production ofconstruction materials; agricultural machinery; newforms
ofenergy; waste processing; andproduction ofmedicines andmedical equipment. Potentially
competitive enterprises hadbeenidentified through indicators suchascurrent exports. Government
funding waslimited. Restructuring andpromotion measures therefore concentrated ongeneral
improvements inthelegalandeconomic environment. Specific measures included financial guaranteesWT/ACC/SPEC/LTU/8
Page25
issued bytheGovernment, temporary taxexemptions andtechnical assistance fromabroad. Support
wascontingent onenterprises providing properly prepared business plans.
84. Referring specifically totheenergy sector, therepresentative ofLithuania saidthatdomestic
production ofenergy from local resources, including nuclear energy, hadcovered approximately
43percentofLithuania 'sneeds in1995. Theshare wasexpected toreach about 50percentby2005
withincreasing availability ofdomestic petroleum products andnuclear power. TheState-owned gas
importer andsupplier "Lietuvos Dujos" hadbeensubsidized tohelpoffset thecostofimported natural
gasandtocompensate forlowtariffs ondeliveries ofheating andhotwater tohouseholds. Under
arestructuring programme fortheenergy sector theGovernment wasconsidering plans forprivatization
thatcould affect "Lietuvos Dujos". TheGovernment wasalsoreviewing itsenergy pricing policies.
85. [Acommitment paragraph, toinclude elimination ofanyprohibited subsidies from thedate
ofaccession, hasbeenrequested]
Technical Barriers toTrade, Sanitary andPhytosanitary Measures
Standards andcertification
86. Therepresentative ofLithuania explained thatLithuania wasinaprocess oftransition where
mandatory (GOST) standards established under theformer USSR system werereplaced byanewsystem
ofvoluntary standards andmandatory technical regulations. TheLithuanian Standards Board had
membership status within various international andEuropean standardization organization tofacilitate
adoption ofinternational andEuropean standards inLithuania. TheLithuanian Standards Board was
anaffiliate member oftheEuropean Committee forElectrotechnical Standardization (CENELEC) since
1997, amember oftheEuropean Telecommunication Standards Institute (ETSI) since 1996, a
correspondent member oftheInternational Organization forStandardization (ISO) since 1992, an
associated member oftheInternational Electrotechnical Commission (IEC) since 1996, anda
correspondent member oftheOrganization forLegal Metrology (OIML) since 1994. Lithuania
concentrated itsresources toward implementation ofalong-term programme covering approximately
600international andEuropean standards. Lithuanian standards weredrafted intechnical committees
following theprinciples defined byinternational andEuropean standardization organizations. [Atthis
point, Lithuania didnotparticipate intheEuropean Organization forTesting andCertification (EOTC),
theEuropean Co-operation forAccreditation Laboratories (EAL) andtheEuropean Accreditation of
Certification(EAC).TheLithuanianStandardsBoardwouldseekfullmembershipstatusininternationalWT/ACC/SPEC/LTU/8
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andregional standardization organizations, butfuture membership depended ontheavailability of
funding.]
87. Amember noted thatsome ofthelegislation critical tothedevelopment ofLithuania 'sstandards
régime wasstillinpreparation andexpected Lithuania toadopt allnecessary legislation toimplement
fullyallobligations under theTBTAgreement prior tothedateofaccession.
88. Therepresentative ofLithuania saidthatwork wasunder waytobring technical regulations
intoconformitywiththeWTOAgreementonTBT.ALawonMetrologyhadbeenadoptedinJuly1996.
Intended forpresentation totheSeimas forapproval bytheendof1997 were adraft Lawon
Standardization which defined theorganizational framework forstandardization, including thebasic
principles, functional requirements andmain resources, andadraftLawonConformity Assessment
which would apply tobothmandatory andvoluntary procedures, defining thestructure oftheconformity
assessment system andcovering accreditation, testing, supplier declarations, certification andinspection.
Lithuania hadestablished anInformation Centre attheLithuanian Standards Board inNovember 1996.
ThisCentre interaliafulfilled thefunction oftheEnquiry Point according totheWTO Agreement
onTBTandwouldalsoprovidenotifications.However,theInformationCentrewasnotfullyoperational
yet.Rules governing theexchange ofinformation between Ministries involved instandards issues
andtheenquiry point would bedrafted by1July1997. According tothedraftLawonStandardization
information onstandardization policy matters, draftstandards andstandards inforceinLithuania would
bepublished intheofficial bulletin oftheLithuanian Standardization Board. Lithuania would introduce
provisions allowing foreigners tocomment ontechnical regulations notconsistent withinternational
norms. Plans existed toadopt theCode ofGood Practice andthenotification requirements forvoluntary
standards asrequired intheAnnex 3oftheWTO TBTAgreement. Lithuania would beabletoadopt
theCode ofGood Practice upon revision ofitsbasic standards attheendof1997. Basic procedures
fortechnical work would beapproved bytheendof1998.
89. Lithuania 'ssystem ofconformity assessment, notably thecertification activities, wasbased
onnormative documents prepared according toISO/IEC guidelines, mainly ISO/IEC Guides 22and
28,andtheSupplier 'sDeclaration ofConformity. Domestic andimported goods weretreated equally.
Lithuanian certification bodies could recognize certificates issued byforeign bodies inaccordance with
therelevantprocedures.Certificationbodieshadbeenestablishedformandatorycertificationofelectrical
appliances (theCertification Centre ofElectrotechnical Production inVilnius) andforgeneral-purpose
electronic equipment (theStateMedical andElectronic Equipment Centre ofCertification "SERTIKA"
inKaunas). Thetwocertification bodies based theirwork onGovernment Resolution No.474ofWT/ACC/SPEC/LTU/8
Page27
22June1992 andOrder No.160/114 of29June1995 oftheMinistry ofIndustry andTrade and
Lithuania'sStandardsBoard.Lithuaniawaspreparingmandatorycertificationrequirementsfortechnical
communication means, articles ofcomputer engineering, agricultural equipment andconstruction
materials.
90. Foreign certificates forimported oilproducts needed tocorrespond tomandatory quality
indicators approved bytheLithuanian Standards Board. Government Resolution No.883
(29November 1993) OntheApproval ofTraffic Rules established technical inspection requirements
forimported vehicles. Allpharmaceutical products required registration before being soldinLithuania.
Some other non-food items were subject toverification requirements under Government Resolution
No.53/89 of31August 1994. Marking regulations hadbeenestablished byorder No.42/25/107 of
23February 1995. Forother technical requirements seedocument WT/ACC/LTU/7/Add.1.
91. Thedraft LawonConformity Assessment didnotcontain specific guidelines fortesting
laboratories, certification bodies oraccreditation bodies, butindicated thatparticipants intheconformity
assessment system should meet therequirements ofinternational andrelevant European documents
andother related regulations. ThedraftLawpermitted Lithuania torecognize product testreports
andcertifications performed under international guidelines. Lithuania didnotrecognize aforeign
country 'scertificate without abilateral agreement. Lithuania hadsigned agreements onmutual
recognition oftestreports andcertificates ofconformity withPoland, Slovakia, Bulgaria, Belarus,
Russia andUkraine; agreements withtheCzech Republic andRomania were under negotiation.
Cooperation agreements onaccreditation between thecorresponding institutions ofLithuania, Latvia
andEstonia hadalsobeensigned. Lithuania recognized certificates offoreign countries aftertheir
registration bytherelevant Lithuanian product certification bodies. Lithuania recognized certificates
formeasuring instruments issued bytheInternational Organization forLegal Metrology (OIML).
92. Therepresentative ofLithuania stated thatLithuania would ensure thatitstechnical regulations,
standards, certification andlabelling requirements werenotapplied toimports inanarbitrary manner,
inawaythatdiscriminates between supplier countries where thesameconditions apply orasadisguised
restriction oninternational trade. [TheWorking Party tooknoteofthiscommitment.]
93. Therepresentative ofLithuania stated thatLithuania willrequire atransitional period tobring
itslegalandinstitutional structures intofullconformity withtheWTO Agreement onTechnical Barriers
toTrade. Lithuania 'slegalbaseforimplementing theAgreement isstillbeing improved. Lithuania
mustmake theenquiry point andnotification functions fullyoperational andmustimprove itstrainingWT/ACC/SPEC/LTU/8
Page28
andtheequipment oflaboratories involved inTBTmatters. Inthemeantime, andgiven theevolving
nature ofitscurrent system, Lithuania willwork toensure thatitstechnical regulations, standards,
certification andlabelling requirements arenotapplied toimports inanarbitrary manner, inaway
thatdiscriminatesbetweensuppliercountrieswherethesameconditionsapplyorasadisguisedrestriction
oninternational trade.
Sanitary andphytosanitary measures
94. Therepresentative ofLithuania saidthatLithuania hadrenewed itsmembership inthe
Organisation International desEpizooties (OIE) in1992 andwasfollowing therequirements ofthe
Codex Alimentarius Commission andtheEuropean Plant Protection Organization (EPPO). Lithuania
wasworking toconform itssanitary andphytosanitary measures withtherequirements oftheWTO.
Procedures would beestablished forpublic notice andcomment forallsanitary andphytosanitary
measures. Heprovided information onspecific Lithuanian requirements pertaining toseeds, fertilizers,
pesticides, animal andplanthealth, feeds, plantbreeders 'rights, fruitandberries, foodadditives and
contaminants, packaging andlabelling standards, andinspections ofmeat, dairy products, eggsand
eggproducts.
95. Therepresentative ofLithuania provided "Information onLithuania 'sProgress inImplementing
theProvisions oftheWTO Agreement onSanitary andPhytosanitary Measures" inAnnex Iofdocument
WT/ACC/LTU/10. Thesubmission listed theinstitutions responsible forapplication ofSPSmeasures;
relevant legislation pertaining tofoodstuffs andfoodsafety, non-processed agricultural commodities
andanimal health, andplanthealth; andoutlined plans forrecognizing equivalence ofSPSregulations
ofexporting countries andimplementation oftransparency provisions.
96. Imported foodstuffs wererequired topassthrough border crossing points manned toperform
foodstuff controls. TheMinistry ofHealth Carehadapproved alistoffoodstuffs subject toquality
control, thusrequiring phytosanitary, veterinary orhealth andquality certificates onimportation.
Products included inthelistweresetoutindocument WT/ACC/LTU/12, pp.20-21. Lithuania required
veterinary andphytosanitary certificates forprocessed foodstuffs.
97. Amember pointed outthatArticle 5oftheWTO Agreement onSPSrequired Lithuania to
carry outriskassessment. Amember expected Lithuania toestablish itsSPSenquiry point andadopt
allnecessary legislation toimplement fullyallobligations under theAgreement onSPSbythedate
ofaccession totheWTO.WT/ACC/SPEC/LTU/8
Page29
98. Regarding implementation ofWTO provisions onsanitary andphytosanitary measures, the
representativeofLithuaniasaidthatLithuanianeedsatransitionalperiodtobringitslegalandinstitutional
infrastructures forimplementation intofullconformity withtheWTO Agreement. Theenquiry point
andnotification functions required under theSPSAgreement might notbefullyoperational bythe
timeofLithuania 'saccession totheWTO. Lithuania 'slegal baseforimplementing theAgreement
isstillbeing improved. Lithuania isworking hardtoimprove itsscientific laboratories andequip them
withhigh-quality equipment andtrained staff. Inthemeantime, andgiven theevolving nature ofits
current system, Lithuania willendeavour toapply allofitssanitary andphytosanitary requirements
consistently withtherequirements oftheWTO.
Trade-Related Investment Measures
99. Therepresentative ofLithuania saidthathisGovernment hadreviewed carefully theprovisions
oftheWTO Agreement onTrade-Related Investment Measures (TRIMs), including itsAnnex andhad
concluded thatLithuania didnotmaintain anymeasures inconsistent withtheTRIMs Agreement. His
Government applied theprinciple ofnational treatment anddidnotresort toperformance requirements
which could affect trade. Lithuania wasready toimplement fullytheprovisions oftheWTO TRIMs
Agreement upon accession without exceptions ortransitional periods.
100. Therepresentative ofLithuania confirmed thatLithuania would notinvoke theprovisions of
theTRIMs Agreement thatprovide fortheprogressive elimination ofmeasures inconsistent withthe
TRIMs Agreement within afixedperiod oftimeasitdidnotmaintain anysuchmeasures. TheWorking
Party tooknoteofthiscommitment.
State-Trading Entities
101. Therepresentative ofLithuania saidthatformer State-trading enterprises were under the
jurisdiction oftheMinistry ofNational Economy. TheLawonTrade, adopted inJanuary 1995,
authorized theestablishment ofStatemonopolies inanysector inemergency situations (war, natural
calamities, etc.)andtoprotect health andsafety. Heconsidered suchmeasures consistent withthe
provisions oftheGATT 1994. Exclusive rights existed forState enterprises, orspecial enterprises
inwhich theState heldallorthemajority oftheshares, regarding trade inradioactive andnuclear
material andwaste. Headded thatthejoint-stock company "Lietuvos energija" operated asanatural
monopoly intheproduction, input, transmission anddistribution ofenergy. Production ofbeverages
withhighalcoholcontentwasreservedforthecompany"LietuviskasMidus".[LithuaniawasconsideringWT/ACC/SPEC/LTU/8
Page30
notifying thisenterprise asaState-trading enterprise.] Headded thatnoagricultural products were
covered byState-trading.
102. Amember understood thatLithuania usedlicences toallow commerce toacertain point, and
stated thatLithuania should notify firms under Article XVII oftheGATT 1994inareaswhere business
licences wererationed arbitrarily oracted asquantitative restrictions. Moreover, arrangements inthe
sugar processing sector regarding anexemption fromprovisions intheLawonCompetition governing
dominant firms, andthedistribution oftariff-rate quotas, would appear tobeaspecial right within
themeaning ofArticle XVII.
103. Therepresentative ofLithuania replied thathisGovernment hadnotapproved anyspecial rights
forsugar refineries. TheLawonCompetition would exempt themembers ofasugar manufacturers '
association from certain ofitsprovisions, butnosuchassociation hasbeenformed yet.Zero-duty
imports under tariff-rate quotas were allowed infixed quantities asatemporary measure bythe
GovernmentwhenimportsofsugaratregularMFNratesprovedinsufficienttosatisfydomesticdemand.
104. Therepresentative ofLithuania confirmed thathisGovernment would apply itslawsand
regulations governing thetrading activities ofState-owned enterprises andotherenterprises withspecial
orexclusive privileges (including those listed in[ref]) andwould otherwise actinfullconformity with
theprovisions oftheWTO Agreement, inparticular Article XVII oftheGATT 1994 andthe
Understanding onthatArticle andArticle VIIIoftheGATS. TheWorking Party tooknoteofthis
commitment.
FreeZones, Special Economic Areas
105. Therepresentative ofLithuania saidthattherewerenofreeeconomic zones wereyetoperational
inLithuania. ALawonFreeEconomic Zones hadbeenadopted inJune1995. Each zonewould
beestablishedbyseparatelaw.Certainactivitieswouldbeprohibitedinfreezones,includingproduction,
storage andsaleofweapons, ammunition, explosives, dangerous andradioactive materials, narcotics
andpoisonous substances; manufacture oftobacco, spirits, securities, money andpostage stamps;
radio andtelevision broadcasting; hospitals; gambling houses; andorganization oflotteries. Licences
would berequired tocarryoutactivities subject toauthorization (see"Trading Rights") within Lithuania.
Enterprises operating inafreezonewould beexempt from customs duties, excise taxes andVAT,
butwould besubject toprofit tax,payroll taxes (including social insurance), taxonlandrent,stamp
tax,taxes onnatural resources andpollution tax(amendment ofLawonFreeEconomic Zones ofWT/ACC/SPEC/LTU/8
Page31
2April 1996). Anenterprise established inthezonewould benefit froman80percentprofit (income)
taxreduction from thedayofitsregistration anda50percentprofit (income) taxreduction forthe
subsequent fiveyears. Ifaforeign investor acquired atleast30percentoftheauthorized (ownership)
capital ofanenterprise registered andoperating inthezone, andinvested notlessthanUS$1 million
ofcapital offoreign origin, theenterprise would beexempt fromprofit (income) taxfor3years after
theenterprise began making aprofit. Theenterprise would benefit froma50percentprofit (income)
taxreduction forthesubsequent 10years.
106. Thus far,Parliament hadadopted separate lawsfortheestablishment offreeeconomic zones
inthreecities-Siauliai, Klaipeda andKaunas. Inthisconnection, theGovernment hadorganized tenders
toselect thecompany orgroup ofcompanies togovern thezone, andasubsequent tender todetermine
thecompanies operating inthezone. Bothforeign anddomestic companies could participate inthese
tenders, provided theyprepared anentrepreneurship project, including estimates ofproposed investment
intheinfrastructure ofthezone. Companies operating inthezonewould needtoregister asenterprises
inaccordance withLithuanian legislation andtheregistration should bedulyrecorded bythegoverning
company ofthezone. Companies werenotrequired toexport partoralloftheiroutput togainaccess
toLithuanian freezones. Goods brought intothecustoms territory ofLithuania fromafreeeconomic
zonewould besubject toalllawsandother legalactsregulating theimportation ofgoods fromabroad,
notably theapplication ofimport duties andtaxes, aswellasanyprohibitions orrestrictions ofeconomic
character.
107. Therepresentative ofLithuania confirmed thatanyFreeZones orFreeEconomic Zones would
befullysubjecttothecoverageofthecommitmentstakenintheProtocolofAccession,andthatLithuania
would ensure enforcement ofitsWTO obligations inthose zones, including those commitments derived
fromtheTRIPS Agreement. Healsoconfirmed that,when goods produced orimported intothezones
under thespecial taxandtariff régime existing inthese areas enter intotherestofLithuania, normal
customs formalities, tariffs andtaxes would beapplied. TheWorking Party took noteofthis
commitment.
Government Procurement
108. Therepresentative ofLithuania saidthataLawonPublic (Government) Procurement, consistent
withWTO requirements, entered intoforce on1January 1997 andsupplementary legislation would
becompleted inSpring 1997. TheLawallowed domestic orforeign suppliers (contractors) toparticipate
inprocurement procedures. Article 1part4oftheLawallowed theGovernment togivepreferenceWT/ACC/SPEC/LTU/8
Page32
togoods, works andservices produced, effected orprovided byenterprises registered inLithuania,
when thissupply wasimportant totheStateforeconomic orsocial reasons. However, suchadecision
would bepassed incompliance withLithuania 'sobligations under international agreements.
109. [Some members expected Lithuania upon accession tonotify theCommittee onGovernment
Procurement ofitsintention toaccede totheAgreement onGovernment Procurement andseekobserver
status inthatCommittee. Lithuania should initiate negotiations formembership intheAgreement soon
thereafter, bytabling anentity offer andshould beprepared tocomplete thenegotiations byadate
certain tobedetermined, provided theoutcome ofthenegotiations wassatisfactory toall.]
Transit
110. Therepresentative ofLithuania saidthatLithuania required submission ofasecurity orcash
deposit which would normally beequal tothesumofimport duties andtaxes levied onimports. The
amount considered sufficient could besetatahigher levelifthecustoms value ortariff classification
ofthegoods intransit could notbedetermined withcertainty.
111. Therepresentative ofLithuania added thatthePrime Ministers oftheBaltic States hadsigned
aResolution "OnViaBaltica" on13February 1995, seeking tocreate aBaltic Transit System which
would facilitate andsimplify transit formalities forcargo traffic between theBaltic States. Thesystem
would bebased on,andcould pavethewayfor,future accession totheEC-EFTA SADandCommon
Transit Conventions (1987).
112. Therepresentative ofLithuania confirmed thatLithuania would conform totherelevant WTO
provisions, including Article VoftheGATT 1994. TheWorking Party tooknoteofthiscommitment.
Agricultural Policies
[InformationonDomesticSupportandExportSubsidies,circulatedasdocumentWT/ACC/SPEC/LTU/2
of30July1996forbackground information purposes only. Offer concerning commitments ondomestic
support andexport subsidies circulated asdocument WT/ACC/SPEC/LTU/7 on12June1997.]
113. Members oftheWorking Party asked Lithuania tooutline themaindirection ofitsagricultural
policies. Specific questions wereraised withrespect tocustoms duties onagricultural products, the
enforcementofrecommendedpurchasepricesonsomecommodities,directandindirectsupportmeasures,WT/ACC/SPEC/LTU/8
Page33
export subsidies, andmeasures inthesugar sector. Lithuania wasrequested toprovide information
ondomestic support andexport subsidies inagriculture intheformat ofdocument WT/ACC/4. A
member noted thatLithuania hadimplemented domestic support andexport subsidy programmes very
recently andwondered whyLithuania hadimplemented programmes which could beincontrast with
WTO provisions afterdeciding tojointheorganization.
114. Therepresentative ofLithuania saidthatagriculture wasofexceptional economic andsocial
significance toLithuania. OnethirdofLithuania 'spopulation resided inruralareasandtheproduction
ofprimary agricultural commodities provided work for23percentofthetotalemployed workforce
inLithuania.MilkproductionwasoneofthemostimportanteconomicactivitiesinLithuania.However,
agricultural production washampered bysmall-scale, inefficient farming andmarketing infrastructure.
Domestic prices formostagricultural commodities werebelow theworld market level, butprices for
finalproducts could sometimes beequal to,orhigher than, world market prices. TheGovernment
aimed atcreating acompetitive agricultural sector andaviable ruraleconomy while minimizing the
negative social andeconomic consequences during theperiod oftransition. Theaverage weighted
tariffonmajor foodproducts (milk, dairyproducts, butter, eggs, sausages andsugar) was27.5percent.
115. Some members wereparticularly concerned about subsidies granted intheformofgovernment
purchasesofagriculturalproductionat"recommended"prices.TherepresentativeofLithuaniaexplained
thatfarmers weresupported through themechanism ofminimum (recommended) purchase prices for
wheat, flax,rapeseeds, fodder forleguminous crops, pork, milkandhigh-quality cattle. Theproduct
coverage oftheminimum price programme could beexpanded inextreme situations. Prices were
determined byaverage production costsinLithuania andthemarket situation inneighbouring countries.
Asubsidy element wasadded totheminimum prices within fixed purchasing quotas forhighquality
produce. Subsidies werechannelled tofarmers through theprocessors toreduce paperwork. Subsidies
weregrantedthroughtheNationalAgriculturalDevelopmentProgrammeandalsothroughtheAgriculture
Support Fund, created in1994through theamalgamation ofvarious existing funds suchastheSowing
Fund. Types ofassistance alsoincluded softcredits andpreferential loans (at5percentannual interest)
forfarmers, support totradeintermediaries andservices providers, rebates onagricultural machinery,
support forcooperative efforts among farmers, ecologic farming andcompensation foraccidents and
calamities. TheStatealsooffered indirect support byfinancing landreclamation works, liming ofsoil,
construction ofroads andother infrastructure, animal breeding andagricultural research andtraining.
Taxconcessions tothesector consisted ofexemption from corporate profit tax,andtaxholidays on
reclaimed land. TheGovernment alsoencouraged diversification inrural areas andafforestation.WT/ACC/SPEC/LTU/8
Page34
116. In1997, theGovernment decided tochannel allfiscal resources fortheNational Agricultural
Development Programme andtheAgriculture Support Fund intoaRural Support Fund toimprove
theefficiency andadministration ofStatesupport totheagricultural sector. TheMinistry ofAgriculture
andForestry would oversee thecreation andutilization oftheRural Support Fund. Themainpurpose
oftheFund wastocreate viable farms which would guarantee employment andincome forfarmers.
TheRural Support Fund would facilitate agradual move frompricesubsidies tomaintaining producer
income through theapplication ofpricesupport andother economic measures onthemainagricultural
products. TheFund would alsofinance investment programmes.
117. Amember noted thatLithuania applied subsidized certain agricultural exports andrequested
Lithuania tobinditsexport subsidies atzeroanduseother, lessdistortive, forms ofagricultural support.
Therepresentative ofLithuania explained thatexport subsidies wereprovided forstorage ofsurplus
production andimprovement ofmarketing conditions. In1995, export subsidies hadbeenprovided
forbeef,pork, butter, cheese andcondensed milkatabudget costofLtl27.8million. Lithuania would
alsosubsidize exports ofporkanddairy products in1996, andexpected tocontinue applying such
subsidies inthefuture, especially inextreme market situations.
118. Therepresentative ofLithuania stressed thatLithuania 'sagriculture régime wasstillinaperiod
oftransition. Lithuania wasrevising itsagricultural policies andwould develop anewsystem for
domestic support toagriculture [by1July1997. TheWorking Party would beinformed about the
newpolicy andsupport measures oncethenewsystem hadbeenappropriately defined.]
119. Some members asked specific questions regarding measures affecting thesugar sector, notably
thepossibleintroductionofreferencepricesandtheopeningoftariff-ratequotasfordomesticprocessors.
Lithuania wasreminded thatArticle VIIoftheGATT 1994andtheWTO Agreement onAgriculture
prohibited theuseofreference prices.
120. Therepresentative ofLithuania saidthatsugar (HScode1701) wasprotected bytariffs of
35advalorem(minimumLitas0.75perkg),othersugarproducts(HScodes1702.03,1702.40,1702.90)
bytariffs of35percent, andconfectionery made ofsugar (HScode 1704.10.11-1704.90.51,
1704.90.61-1704.90.99) bytariffs of25-30 percent,andprocessors wereprovided seasonal softcredits.
Imports could alsotakeplaceunder tariff-rate quotas, butprocessors would firstneedtoexhaust reserves
ofdomestic sugar. Thezero-tariff quota wasdistributed byconsensus among thefourdomestic sugar
refineries. Producers ofsugar hadalsobeenexempted from provisions oftheLawonCompetitionWT/ACC/SPEC/LTU/8
Page35
toallow theestablishment ofaproducer association. Lithuania intended toliberalize thesugar régime
when production hadrisen tomatch domestic demand.
121. Therepresentative ofLithuania stated thatLithuania intended toeliminate thereference price
onrawsugar imports before accession totheWTO.
[tobecompleted]
Alcohol andAlcoholic Beverages
122. Amember considered Lithuania 'srestrictions ontrade inalcohol equivalent toStatetrading.
Adistribution monopoly maintained bytheStatecould alsodistort import prices. Thismember asked
Lithuania toprovide thecriteria uponwhich licensing system foralcoholic beverages werebased and
explain howLithuania 'srestrictive import system could beconsistent withWTO rules.
123. Therepresentative ofLithuania saidthathisGovernment hadestablished aStateTobacco and
Alcohol Control Agency on12July1996 inaccordance withtheLawonHealth System andtheLaw
onAlcohol Control. Themainfunctions oftheAgency weretoformulate andimplement Statepolicy
incooperation with Ministries andother governmental institutions withaview todiscouraging
consumption andreducing itsharmful effects onthepopulation. TheAgency itself didnotengage
intrade, butperformed various trade-related administrative andmonitoring tasks, including theissuance
ofactivity licences, monitoring ofadherence tolegalrequirements, establishment ofadditional marking
procedures forimported alcoholic beverages, etc.
124. Activity licensing wasusedtoregulate trade; separate licences were issued forwholesale
trade inalcoholic beverages produced inLithuania, importation andretail trade. Inall,about 12,000
wholesale andretail licences hadbeenissued. TheAgency issued licences forwholesale trade in
alcoholic beverages while retail traders obtained authorization frommunicipal authorities. Theactivity
licensing forimportation hadbeenchanged. Parliament hadapproved theLawonAmendment and
Supplement totheLawonAlcohol Control on8April 1997. Oneofthepurposes ofthenewLaw
wastoharmonize theexisting LawonAlcohol Control withtheprovisions oftheWTO. Thenew
Lawdidnotrestrict thenumber ofactivity licences toimport alcoholic beverages anddidnotrequire
importerstolimittheirchoiceofimportstoforeigncompaniesincludedinthebulletinsoftheAssociation
ofManufacturers ofAlcoholic Beverages. According totheprovisions ofthenewLaw, there were
notenders forissuing activity licences forimportation ofalcoholic beverages orforengaging indomesticWT/ACC/SPEC/LTU/8
Page36
trade. Activity licences forimportation ofalcoholic beverages were according nowgranted toall
applicants against payment oftheStamp Taxprovided thecompanies were registered inLithuania,
followed theregular procedures forobtaining alicence, andsubmitted alldocumentation required under
Lithuanian law. Theconditions fornewentrants hadimproved asnocredit wasgiven forprior
experience asanimporter. Inaddition, thelicences toengage inimportation, production, andwholesale
andretail tradeofalcohol ofnomore than22percentalcohol content -previously validforoneyear
only-were nowofunlimited duration.
125. Importers ofalcoholic beverages paidanannual stamp taxfortheright(licence) toimport.
Thelevies hadbeenintroduced tocontrol theselection ofimporters andavoid importation ofcounterfeit
orlow-quality products. When granting theactivity licence theGovernment would specify thetype
ofbeverage tobeimported byaparticular enterprise, i.e.vodka, vodka andother spirits, wine, etc.,
butnotthevalue orvolume. Anactivity licence, validforoneyear, toimport vodka andother spirits
cost500,000 litas(US$125,000); forother spirits 400,000 litas(US$100,000), andforwine
150,000 litas(seeTable 3forafulllistofthese stamp taxes). Anactivity licence toimport alcoholic
beverages would alsocover wholesale oftheproducts. Theimportation/wholesale licence alsoincluded
alarger number ofbeverage brands (about 400)thanawholesale licence fordomestically-produced
beverages (some 100-150 products).
126. TheState Tobacco andAlcohol Control Agency alsoissued activity licences fordomestic
production. Therepresentative ofLithuania stressed thatdomestically-produced alcohol wassubject
tothesamerestrictionsandregulationsasimportedproductswithoneexceptionconcerningtheenterprise
"Lietuviskas Midus" (Lithuanian Mead Brandy). Theactivity licence allowed thecompany toproduce
aspecial mead brand ("Zalgiris") which alcohol content exceeded 50percent. Thismead wasalso
exported, while importation ofbeverages withalcohol content greater than50percentwasprohibited.
[127. Amember stated thatLithuania 'ssystem ofactivity licensing appeared torestrict trade in
alcoholic beverages inamanner conflicting withtheprovisions ofArticle XIandArticle XVII ofthe
GATT 1994. TheGovernment seemed toplayacontrolling rôleintheselection andlimitation offirms
engaging intradeintheseproducts, ineffect creating Statetrading enterprises. Specifically, thismember
alsonotedthatthecompany"LietuvidkasMidus"heldmonopolyrightsontheproductionofhigh-alcohol
beverages andconsidered thiscompany aState trading enterprise under Article XVII.]
128. Therepresentative ofLithuania replied that"Lietuviskas Midus" Ltd.wasacooperative
consumers 'enterprise producing mead inaccordance withpatented ancient recipes which LithuaniaWT/ACC/SPEC/LTU/8
Page37
considered tobepartofitsnational heritage. Thus, duetothefactthattheenterprise followed ancient
traditionsofmanufactureandwastheonlyenterpriseinLithuaniawhichmanufacturednationalbeverages,
theGovernment hadgranted "Lietuviskas Midus" therighttomanufacture alcoholic beverages until
year2001. TheStatedidnotprovide thecompany withprivileges orsubsidies, andthecompany had
noobligations towards theState. Thecompany could import inputs fortheproduction ofmead without
restrictions. [Lithuania wasconsidering notifying "Lietuviskas Midus" asaStatetrading enterprise.]
129. LithuaniahadestablishedthelegalbasisforintroductionofaStatemonopolyonalcoholproducts
incases offorce majeure (war, famine andnatural disasters), ameasure hefeltcould bejustified under
Article XX(b) and(d).Thepresent situation didnotqualify asforce majeure. TheLawonAlcohol
Control alsoauthorized theintroduction ofproduction andimport quotas forcertain alcohol products
shouldthenumberofpatientssufferingfromalcoholicpsychosisexceedlevelsestablishedbytheMinistry
ofHealth. However, these provisions hadnotbeenapplied thusfar.
130. Amember noted thatexcise taxes onimported anddomestic beerwere notequal. The
representative ofLithuania saidthatexcise taxesweredifferentiated forcertain domestically-produced
andimported wine andbeerinaccordance withGovernment Resolution No.328of9April 1997.
Alower rateofexcise tax(0.2litasperlitre) hadbeenestablished forsmall producers ofbeer, i.e.
those withannual production below 100,000 dekalitres. Therepresentative ofLithuania replied that
thispreferential treatment wasatransitional measure andthatLithuania wasconsidering other, fully
WTO-consistent, support measures forthese enterprises.
131. Therepresentative ofLithuania saidthattheMinistry ofAgriculture andForestry authorized
imports ofrawmaterials foralcoholic beverages atzerotariffunder thegeneral tariff-rate quotas opened
inaccordance with Government Resolution No.653of8May1995. Permission wasgranted
automatically uponpresentation ofanapplication andasalescontract, butonlytocompanies holding
activity licences fortheproduction ofalcoholic beverages, i.e.nineauthorized producers (notnecessarily
"State enterprises") which hadobtained licences fromtheStateTobacco andAlcohol Control Agency
toimport alcohol andproduce alcoholic beverages. Enterprises notlicensed fortheproduction of
alcoholic beverages could import suchrawmaterials attheMFN rateofduty. Thesystem hadbeen
introduced tofightillegal production ofcounterfeit alcoholic products. Tariff quotas forimports of
ethyl alcohol fortechnical useswere granted automatically tocompanies substantiating theirneeds.
[tobecompleted]WT/ACC/SPEC/LTU/8
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Trade-Related Intellectual Property Régime
132. Some members oftheWorking Party asked Lithuania todescribe itssystem ofprotection of
intellectualpropertyinthelightoftheWTOAgreementonTrade-RelatedAspectsofIntellectualProperty
Rights (TRIPS) andindicate areas which would besubject toneworrevised legislation. Amember
noted thatLithuania 'sintellectual property rights régime wasstillbeing developed andthatthecurrent
régime didnotmeetalltherequirements oftheWTO, andrequested Lithuania toaccelerate itslegislative
process inorder toensure fullimplementation oftheTRIPS Agreement atthetimeofaccession to
theWTO.
133. Lithuania provided anoteonTRIPS totheWorking Party indocument WT/ACC/LTU/7
(Annex I).Inresponse tospecific questions, therepresentative ofLithuania saidthatnational legislation
-including lawsonpatents, industrial design, trademarks andservice marks, theLawonCompetition,
theCriminal Code andprovisions oftheCivil Code -largely corresponded tothebasic provisions
oftheTRIPS Agreement. Lithuania 'slegislation onintellectual property contained noexceptions to
theprinciple ofnational orMFN treatment. Lithuania didnotusethepossibilities provided inArticle 6
oftheBerne Convention orparagraph 1(b)ofArticle 16oftheParis Convention andmaintained no
exceptional measures asprovided forunder Article 4(d)oftheTRIPS Agreement.
134. Lithuania joined theWorld Intellectual Property Organization (WIPO) in1992 andtheParis
Convention in1994. On17September 1996, theSeimas (Parliament ofLithuania) ratified theNice
Agreement Concerning theInternational Classification ofGoods andServices forthePurposes of
Registration ofMarks of15June1957. Intheareaofcopyright andrelated rights, Lithuania joined
theBerne Convention in1994, andintended tojointheGeneva Convention andtheRome Convention
in1997. Lithuania hadalsoconcluded international agreements onintellectual property withDenmark,
Norway, Switzerland, theUnited States andtheEuropean Patent Organization, andadhered tothe
Multilateral Trademark LawTreaty.
135. Parliament hadadopted aLawontheAmendment andSupplement totheCivil Code in
May1994, covering copyright (Chapter 4)andneighbouring rights (Chapter 5).Authors, artists and
creatorshadfoundedtheLithuanianCopyrightProtectionAssociation(LATGAA)whichwasconcluding
agreementswithsimilarorganizationsinothercountries.Broadcastingorganizationsmaintainedcopyright
onradio andTVprogrammes according toArticle 526(4)oftheCivil Code. Lithuanian lawdidnot
contain provisions oncompulsory licensing ofworks andsound recordings. Current legislation did
notprovide rental rights forcinematographic works, computer programmes orsound recordings, butWT/ACC/SPEC/LTU/8
Page39
Lithuania intended toamend theCivil Code tointroduce suchrental rights byDecember 1996. The
amended Civil Code would alsoinclude more elaborate provisions onexceptions andlimitation of
exclusive rights incompliance withArticles 13,30and31oftheTRIPS Agreement.
136. Lithuania considered theexceptions initslawtotherights conferred byatrademark tobein
compliance withArticle 17oftheTRIPS Agreement. Geographical indications wereprotected under
Article 7andother provisions oftheexisting LawonCompetition. However, Seimas wasexpected
toadopt anewLawonCompetition during 1997. Therepresentative ofLithuania saidthatthedraft
lawcontained provisions regarding theuseofgeographical indications which complied fully with
Articles 22to24oftheTRIPS Agreement.
137. Therepresentative ofLithuania saidthattheLawonPatents appeared torequire amendments
toincorporate theprovisions oftheTRIPS Agreement andtheParisConvention regarding compulsory
licensing ofpatented inventions. Disputes regarding working ornon-working ofapatent could be
settled inCourt. Generally, importation ofapatented product should beconsidered equivalent tothe
useofapatent.
138. Therepresentative ofLithuania saidthattheMinistries andinstitutions involved inthe
development ofintellectual property rights legislation were accelerating theirwork. Lithuania was
preparing aLawontheProtection ofLayout Designs ofIntegrated Circuits. TheLawonLegal
Protection ofComputer Programs andDataBases andtheLawonPlant Variety Protection andSeed
Growing hadbeenadopted in1996. ThelatterLawassured theprotection ofallplantvarieties registered
inLithuania andguaranteed therights ofvariety owners. Lithuania wasnotamember ofthe
International Plant Variety Protection Organization (UPOV) andwould notjoinUPOV untilvarieties
ofLithuanian breeders hadbeenrecognized andregistered incountries inwestern Europe.
139. Intellectualpropertyrightswereenforcedbycivilaction,unlesstheinfringementwasconsidered
acriminal violation. Procedures werelaiddown intheCivil Code andtheCode ofCivil Process of
theRepublic ofLithuania. Thelawsontrademarks, patents andindustrial design contained specific
provisionsregardingowners'rightstostopinfringementsandclaimsforcompensation;remediesagainst
violations ofcopyright andrelated rights wereprovided under theCivil Code andtheCriminal Code.
140. Some members sought confirmation thatLithuania would apply theprovisions oftheAgreement
onTrade-Related Aspects ofIntellectual Property Rights bythedateofitsaccession totheWTO, without
recourse toanytransitional period.WT/ACC/SPEC/LTU/8
Page40
141. Therepresentative ofLithuania saidthatwithout major technical andfinancial assistance from
WTO Members, Lithuania would notbeabletoimplement fullytheTRIPS obligations uponthedate
ofitsaccession totheWTO, andwould require afour-year transition period tobring itslegal,
institutional andenforcement régimes fully intoconformity withWTO requirements. Although
Lithuanian legislation regulating theprotection ofindustrial property (patents, industrial design,
trademarks andservice marks, etc.), copyright, plant varieties, etc.nearly corresponded tothe
requirements oftheTRIPS Agreement, thesystem ofinstitutions enforcing protection ofintellectual
property hadnotbeen fully established anddeveloped asrequired byArticles 41,50and51.
Specifically, Lithuania hadnotyetbeenabletoestablish alegalbasis forenforcement ofcopyright
andneighbouring rights. Lithuania didnotregulate, andhadnotestablished, asystem forthecollective
administration ofrights forperformers andproducers ofphonograms orproducers ofsound andvisual
recordings. Accordingly, Lithuania currently could notenforce Article 11onRental Rights and
Article 14.4onProtection ofPerformers, etc.Inaddition, Lithuania could notprovide forcriminal
penalties orborder enforcement ofcopyrights andother intellectual property. Lithuania currently also
didnotmeetthetime-frame under Article 62(2) regarding registration ofpatents, trademarks andservice
marks.
Policies Affecting Trade inServices
[Reference toannexed schedule toGATS. Initial commitments ontrade inservices circulated as
document WT/ACC/SPEC/LTU/1 of30July1996.]
142. Therepresentative ofLithuania submitted totheWorking Party aseparate Memorandum on
theservicesrégime(WT/ACC/LTU/5),anadditionalpresentation(WT/ACC/LTU/9)andsupplementary
informationindocumentWT/ACC/LTU/10.Thedocumentationoutlinedthemarketstructure,regulatory
framework andpolicies affecting services generally orinrelation tospecific sectors. Concerning the
development ofservices-related legislation headded thatLithuania hadadopted several newlawsor
amendments during 1996, notably theLawonInsurance, LawonPublic Trading ofSecurities,
amendments andsupplements totheLawonCommercial Banks, LawonConstruction, LawonMass
Media,theCivilAviationCode,InlandTransportCode,RoadTransportCodeandtheRailwayTransport
Code.OthersignificantnewlegislationincludedGovernmentResolutionno.1550"OnGrantingLicences
toprovide Tourism Services" andGovernment Resolution No.94providing regulations forresearch,
conservation, reservation andrestoration ofcultural values.WT/ACC/SPEC/LTU/8
Page41
143. Therepresentative ofLithuania saidthatrequirements fortheregistration ofanenterprise were
thesameirrespective ofthenationality ofownership, except thataforeign investor would needtosubmit
certificates ofincorporation forlegal persons, documentation onthefinancial condition/status, and
verification oftheorigin oftheforeign capital. Foreign investment waspermitted inallsectors with
theexception ofareas related todefence andnational security; production andsaleofnarcotic
substances, andother non-medicinal orpoisonous substances having similar effects; cultivation and
saleofcrops containing narcotic substances orsubstances withsimilar effects; andtheorganization
oflotteries. TheState PostOffice wastheonlyservice supplier withmonopoly orexclusive rights;
itsrights concerned collection anddelivery ofletters, postcards andprinted matter; installation of
letter collection boxes; andissuance ofpostage stamps. TheState enterprise "Lietuvas Telekomas"
nolonger heldexclusive rights toprovide telecommunication services.
144. Therepresentative ofLithuania provided information onlicensing ofbusiness activities inthe
areaofservices inTable 2.2.Inaddition, theestablishment ofacommercial bankrequired alicence
issued bytheBank ofLithuania. Alicence wasrequired forenterprises withlessthan50percent
State capital toengage inexploitation ofrailways, ports, airports, State roads, pipelines, electricity
andcommunication lines. TheGovernment would amend theLawonEnterprises inthenearfuture
andasaresult thenumber oflicensed activities would bereduced.
145. Lithuania didnotmaintain anyspecific measures ofhorizontal nature which would limitmarket
access ornational treatment inthefinancial services sector. Permission from theBank ofLithuania
wasrequired forforeign banks toestablish subsidiaries orbankagencies. According totheLawon
Commercial Banks of21December 1994, foreign banks could establish subsidiaries; acquire shares
ofaneworoperating bank(acquisition ofablock ofshares (10percentormore) inanoperating bank
required theconsent oftheBank ofLithuania); andestablish branches andrepresentative offices.
Domestic andforeign investors needed priorapproval fromtheBankofLithuania toacquire 10percent
ormore oftheshares inexisting banks. Minimum capital requirements werethesame fordomestic
andforeign banks; theminimum wassettoincrease from ECU 1.9million (inlitasequivalent) to
ECU 5.0million on1January 1998. Lithuania intended toapproximate itsbanking lawswithEU
directives which could leadtofurther liberalization. Foreign securities firms could conduct business
through anylegalform ofenterprise inLithuania.
146. Insurance services wereprovided by35companies, ofwhich 6included foreign participation.
TheStateInsurance Company hadheldexclusive rights toissuealltypes ofmandatory insurance and
pensions insurance; thecompany would beprivatized under anewLawonInsurance. ThenewLawWT/ACC/SPEC/LTU/8
Page42
would codify thecurrent situation, under which allexclusive rights fortheStateInsurance Company
hadbeeneliminated. TheLawwould enable foreign insurance companies toestablished wholly-owned
companies, joint-ventures orsubsidiaries provided theforeign insurance company hadpermission from
itsownGovernment toconduct insurance activities inforeign countries. Foreign financial institutions
were permitted todeliver transportation insurance (maritime andaviation) andreinsurance services
across theborder. Insurance inter-mediation onbehalf offoreign insurance companies wasallowed
forintermediaries registered inLithuania.
147. Concerning thesupply ofprofessional services byforeigners, theLithuanian Labour Exchange
issued workpermits andwould evaluate andfullyrecognize thequalifications ofapplicants inaccordance
withthedocumentation submitted. Lithuania hadnoagreements withother countries regarding the
recognition ofqualifications. Lithuania wasdeveloping licensing procedures forauditing services.
Auditors wererequired topassaqualifications examination andreceive alicence issued bytheInstitute
ofAudit. Legal services wereregulated bytheMinistry ofJustice andcould beprovided byadvocates
andlawyers licensed toengage insuchactivities. However, foreigners could notactasdefenders in
criminal proceedings; suchservices werereserved foradvocates whowerecitizens ofLithuania and
included inalistofattorneys. Foreign attorneys could represent clients before theCourts inLithuania
onlyifprovided under bilateral agreements onlegalassistance. Agreements wereinforcewithBelarus,
Estonia, [Kazakhstan], Latvia, Moldova, Poland, theRussian Federation, [Turkey] andUkraine. The
limitations oncitizenship, which wereapplicable toadvocates (representing clients before theCourts),
were notapplied tolawyers wishing toengage inother lawyers 'practices.
148. TheGovernment established anannual quota onthenumber offoreign employees inaccordance
withtheRegulation onTemporary Employment ofForeigners of13February 1995. Employers applied
totheLithuanian Labour Exchange which would issuespecial visas andwork permits forforeigners.
Thisregulation wasnotapplied tokeypersonnel: managers, specialists orconsultants inenterprises
withforeign capital, working for3months orlesstoinstall equipment ortrainlocalstaff.
149. Regarding procurement ofservices bygovernment agencies, therepresentative ofLithuania
saidthattheLawonPublic Procurement (entering intoforce on1January 1997) included provisions
onpreferences forlocal suppliers. These preferences would notexceed 15percentforgoods and
services, and20percentforworks. Lithuania hadnoagreements withthird countries concerning
government procurement ofservices.WT/ACC/SPEC/LTU/8
Page43
150. Therepresentative ofLithuania saidthathisGovernment wasworking withresponsible
Ministries, organizations andParliament toensure thatWTO requirements werereflected innewlaws
andregulations. Lithuania 'sservices régime didnotdiscriminate among services orservice supplier
countries (Article II)except asprovided ineconomic integration agreements meeting thestandards
ofArticle VoftheGATS. TheGovernment provided fullinformation onlawsandregulations inthe
Official Gazette asrequired under Article III,andwasdrafting qualification requirements, technical
standards andlicensing requirements inaccordance withtherequirements ofArticle VI.
[tobecompleted]
Transparency
Publication ofinformation ontrade
151. Therepresentative ofLithuania stated thataccording toLithuanian procedures legalactscould
notbeenforced untiltheyhadbeenpublished intheOfficial Gazette "State news".
152. Therepresentative ofLithuania stated thatatthelatest from thedateofaccession, alllaws,
andother normative actsrelated totrade would bepromptly published intheOfficial Gazette orother
official newspapers published byappropriate Ministries ordepartments. Hestated further thatnolaw,
ruleetc.related tointernational tradewould become effective priortosuchpublication. [TheWorking
Party tooknoteofthiscommitment.]
153. [Amember sought expansion ofLithuania 'scommitment ontransparency toinclude alltrade
lawregulations, rulings, decrees andother normative measures related totrade.]
Notifications
154. Therepresentative ofLithuania saidthatatthelatest upon entry intoforce oftheProtocol of
Accession, Lithuania would submit allnotifications (other thanthose required tobemade onanadhoc
basis) required byanyAgreement constituting partoftheWTO Agreement. Anyregulations
subsequently enacted byLithuania which gaveeffect tothelawsenacted toimplement anyAgreement
constituting partoftheWTO Agreement would alsoconform totherequirements ofthatAgreement.
TheWorking Party tooknoteofthiscommitment.WT/ACC/SPEC/LTU/8
Page44
Trade Agreements
155. Some members oftheWorking Party asked Lithuania toprovide information onbilateral or
regional agreements affecting trade andinvestment. Some members wondered whether thefreetrade
agreements covered substantially alltrade. Lithuania wasasked tonotify itsfreetrade agreements.
Amember requested acopy oftheTrilateral Agreement onAgricultural Trade between theBaltic
countries, including thespecific market access provisions fortheremoval ofbarriers among thethree
countries.
156. TherepresentativeofLithuaniasaidthatLithuaniahadnegotiatedFreeTradeAgreements(FTA's)
withtheEuropean Union, theEuropean FreeTrade Association (EFTA), Estonia andLatvia (atrilateral
agreement), Ukraine, Poland, Slovenia, theCzech Republic, Slovakia andTurkey (thelastthree had
notentered intoforce). Lithuania intended toconclude freetradeagreements withallCEFTA countries.
AFreeTrade Agreement between Lithuania, Estonia andLatvia covering industrial products hadentered
intoforce on1April 1994 andaFreeTrade Agreement onagricultural products on1January 1997.
BothFTAs provided forfreetrade (nointerim measures) atzerotariffs among theBaltic States.
157. Trade agreements providing form.f.n treatment (conventional duties) hadbeenconcluded with
Australia, Belarus, Bulgaria, China, Cyprus, Cuba, theCzech Republic, Georgia, Hungary, Iceland,
India, theRepublic ofKorea, [thePhilippines], Romania, theRussian Federation, Slovakia, Slovenia,
Turkey,Uzbekistan,[Venezuela]and[Vietnam].ConventionalMFNdutieswerealsoappliedonimports
fromCanada, Japan, Kazakhstan, Moldova, Tadjikistan andtheUnited States. Goods originating in
other countries were subject toautonomous customs duties. Agreements oninvestment promotion
andprotection hadbeenconcluded with[Argentina], [Austria], China, theCzech Republic, Denmark,
Estonia, Finland, France, [Germany], [Greece], Israel, [Italy], Kazakhstan, Republic ofKorea, Latvia,
Netherlands, Norway, Poland, Romania, Spain, Sweden, Switzerland, [Turkey], Ukraine,
United Kingdom, Venezuela [andVietnam]. Lithuania hadalsoconcluded anagreement withthe
Multilateral Investment Guarantee Agency.
158. Therepresentative ofLithuania saidthatthefreetrade agreements covered substantially all
trade. Under theLithuania/EU agreement, tariffs would nevertheless remain onsome agriculture and
fishery products afterthesix-year transitional period toimplement theagreement. ThisFTAhadalready
beennotified bytheECunder Article XXIV. Preferential treatment wasgranted intheformoftariff-rate
quotas forsome products; quota amounts werelisted inAnnex XIII,andtherespective in-quota tariff
ratesinAnnex XII,oftheFreeTrade Agreement. Tariff quotas inthecontext ofpreferential tradeWT/ACC/SPEC/LTU/8
Page45
wereonlyappliedtowardstheEU;therelevantimplementingregulation(GovernmentResolutionNo.205
of8February 1995) hadbeenprovided totheWorking Party. Thetariff-rate quotas concerned tariff
positions HS0201, 0202, 0203, 0406 and1601.
159. TheFreeTrade Agreements withtheEUandEFTA States were asymmetric, butonlyfor
industrial products. Thetwoagreements weresimilar incontent, except thattheagreement withEFTA
States contained asmaller number ofproducts subject toatransitional period andprovided aspecific
datefortheabolition ofimport duties ontextile products. TheFTAwithEFTA included agricultural
products, butthetrade régime wasbased onreciprocal concessions from theMFN level. TheFTA
withEFTA hadalready beennotified byEFTA under Article XXIV. TheFTAwithUkraine stipulated
MFN treatment forthemajority ofagricultural products, fortheremaining items thetariff waszero.
TheAgreementincludedAnnexesonRulesofOriginandAdministrativeCooperationwhichweresigned
inFebruary 1994. Newrulesoforigin wereinpreparation andwould besimilar tothose established
intheFTAs withtheEU,EFTA andCEFTA countries. TheParties oftheAgreement committed
toensure freetransit ofgoods through theircustoms territory. Hestated thattheAgreement with
Ukraine wasinconformity withtheprovisions ofGATT 1994.
160. Amember noted thatLithuania applied export taxes which were differentiated according to
themarket ofdestination andwondered whether Lithuania intended tomaintain thispractice. The
representative ofLithuania replied thatLithuania maintained some export duties onabilateral basis
-onrawhides andskins andtimber ofoakandash-inconnection withtheFreeTrade Agreements
withtheEuropean Union, theCzech Republic, Slovakia, Slovenia andTrilateral FreeTrade Agreement
betweenLithuania,LatviaandEstonia.TheFreeTradeAgreementwithPolandalsoallowedthepossible
useofexport duties. Exports oftheaffected products were prohibited atthetimeofconclusion of
these FreeTrade Agreements andtheintroduction ofexport duties (onabilateral basis) hadthusbeen
asteptowards liberalization oftrade. Thepreferential duties weregenerally equal tothenon-preferential
ratesalthough insome cases preferential tradewasexempt fromexport duties orsubject tolower rates.
Hesaidthatthispractice could bejustified under Article XXIV oftheGATT 1994.
161. Preferential rulesoforigin wereinplace inthecontext ofallfreetradeagreements. Theorigin
ofgoods wasdetermined inaccordance withlistrules applied forallproducts. Declarations of
preferential origin, accompanied byastatement ofanindependent expert, weremade bythesuppliers
ofmaterials orproducts inaccordance withGovernment Resolution No.110of24February 1993.
Simplified procedures hadbeenestablished intheappropriate Protocols ontheRules ofOrigin intheWT/ACC/SPEC/LTU/8
Page46
FreeTrade Agreements concluded byLithuania andwere usedwhen EUR.1 movement certificates
hadbeenissued byapproved exporters.
162. Therepresentative ofLithuania stated thathisGovernment would observe theprovisions of
theWTO including Article XXIV oftheGATT 1994andArticle VoftheGATS initstradeagreements,
andwould ensure thattheprovisions oftheWTO Agreements fornotification, consultation andother
requirements concerning preferential trading systems, freetrade areas andcustoms unions ofwhich
Lithuania isamember aremetfromthedateofaccession, insofarastheseprovisions hadnotalready
beenmetbyoneoftheother Parties tosuchanagreement. Also, Lithuania confirmed thecommitment
thatLithuania willmeetitsobligations under theWTO, inthiscaseArticles XXIV oftheGATT 1994
andVoftheGATS. [TheWorking Party tooknoteofthiscommitment.]
[Amember sought anunambiguous commitment fromLithuania thatitwillmeetitsobligations under
theWTO, inthiscaseArticles XXIV oftheGATT 1994andVoftheGATS. Lithuania should commit
thatitwillobserve theprovisions oftheWTO including Article XXIV oftheGATT 1994andArticle V
oftheGATS inanytrade agreements inplace atthetimeofaccession, ensuring thattheprovisions
oftheseWTO Agreements fornotification, consultation, andotherrequirements concerning preferential
trading systems, freetrade areas, andcustoms unions ofwhich Lithuania isamember aremetfrom
thedateofaccession.]
CONCLUSIONS
163. TheWorking Party tooknoteoftheexplanations andstatements ofLithuania concerning its
foreign traderégime, asreflected inthisreport. TheWorking Party tooknoteoftheassurances given
byLithuania inrelation tocertain specific matters which are reproduced in
paragraphs................................. ofthisreport. TheWorking Party tooknoteofthecommitments
given byLithuania inrelation tocertain specific matters which arereproduced inparagraphs
............................ ofthisreport. TheWorking Party took notethatthese assurances and
commitments hadbeenincorporated inparagraph ....oftheProtocol ofAccession ofLithuania tothe
WTO.
164. Having carried outtheexamination oftheforeign trade régime ofLithuania andinthelight
oftheexplanations, commitments andconcessions made bytherepresentative ofLithuania, theWorking
PartyreachedtheconclusionthatLithuaniabeinvitedtoaccedetotheMarrakeshAgreementEstablishing
theWTO under theprovisions ofArticle XII.Forthispurpose, theWorking Party hasprepared theWT/ACC/SPEC/LTU/8
Page47
draftDecision andProtocol ofAccession reproduced intheAppendix tothisreport, andtakes note
ofLithuania 'sSchedule ofSpecific Commitments onServices (document...............) anditsSchedule
ofConcessions andCommitments onGoods (document ..........) thatareannexed totheProtocol.
Itisproposed thatthese textsbeadopted bytheGeneral Council when itadopts thereport. When
theDecision isadopted, theProtocol ofAccession would beopenforacceptance byLithuania which
would become aMember thirty daysafteritaccepts thesaidProtocol. TheWorking Party agreed,
therefore, thatithadcompleted itswork concerning thenegotiations fortheaccession ofLithuania
totheMarrakesh Agreement Establishing theWTO.
[tobecompleted]WT/ACC/SPEC/LTU/8
Page48
APPENDIX
ACCESSION OFLITHUANIA
Draft Decision
TheGeneral Council,
Having regard totheresults ofthenegotiations directed towards theestablishment oftheterms
ofaccession oftheRepublic ofLithuania totheMarrakesh Agreement Establishing theWorld Trade
Organization andhaving prepared aProtocol fortheAccession ofLithuania,
Decides, inaccordance withArticle XIIoftheMarrakesh Agreement Establishing theWorld
Trade Organization, thattheRepublic ofLithuania mayaccede totheMarrakesh Agreement Establishing
theWorld Trade Organization ontheterms setoutinthesaidProtocol.WT/ACC/SPEC/LTU/8
Page49
PROTOCOL OFACCESSION OFLITHUANIA
TOTHE MARRAKESH AGREEMENT ESTABLISHING
THE WORLD TRADE ORGANIZATION
DRAFT
TheWorld Trade Organization (hereinafter referred toasthe"WTO"), pursuant totheapproval
oftheGeneralCounciloftheWTOaccordedunderArticleXIIoftheMarrakeshAgreementEstablishing
theWorld Trade Organization (hereinafter referred toas"WTO Agreement"), andtheRepublic of
Lithuania (hereinafter referred toas"Lithuania"),
Taking noteoftheReport oftheWorking Party ontheAccession ofLithuania totheWTO
indocument WT/L.... (hereinafter referred toasthe"Working Party Report"),
Having regard totheresults ofthenegotiations ontheaccession ofLithuania totheWTO,
Agree asfollows:
PartI-General
1. Upon entry intoforce ofthisProtocol, Lithuania accedes totheWTO Agreement pursuant
toArticle XIIofthatAgreement andthereby becomes aMember oftheWTO.
2. TheWTO Agreement towhich Lithuania accedes shallbetheWTO Agreement asrectified,
amended orotherwise modified bysuchlegalinstruments asmayhaveentered intoforce before the
dateofentry intoforceofthisProtocol. ThisProtocol, which shallcomprise thecommitments referred
toinparagraph ...oftheWorking Party Report, shallbeanintegral partoftheWTO Agreement.
3. Except asotherwise provided forintheparagraphs referred toinparagraph ...oftheWorking
Party Report, those obligations intheMultilateral Trade Agreements annexed totheWTO Agreement
thataretobeimplemented overaperiod oftimestarting withtheentry intoforce ofthatAgreement
shallbeimplemented byLithuania asifithadaccepted thatAgreement onthedateofitsentry into
force.WT/ACC/SPEC/LTU/8
Page50
4. Lithuania maymaintain ameasure inconsistent withparagraph 1ofArticle IIoftheGATS
provided thatsuchameasure isrecorded inthelistofArticle IIExemptions annexed tothisProtocol
andmeets theconditions oftheAnnex totheGATS onArticle IIExemptions.
PartII-Schedules
5. TheSchedules annexed tothisProtocol shall become theschedule ofConcessions and
Commitments annexed totheGeneral Agreement onTariffs andTrade 1994 (hereinafter referred to
asthe"GATT 1994") andtheSchedule ofSpecific Commitments annexed totheGeneral Agreement
onTrade inServices (hereinafter referred toas"GATS") relating toLithuania. Thestaging of
concessions andcommitments listed intheSchedules shallbeimplemented asspecified intherelevant
parts oftherespective Schedules.
6. Forthepurpose ofthereference inparagraph 6(a)ofArticle IIoftheGATT 1994tothedate
ofthatAgreement, theapplicable dateinrespect oftheSchedules ofConcessions andCommitments
annexed tothisProtocol shallbethedateofentry intoforce ofthisProtocol.
PartIII-Final Provisions
7. ThisProtocol shallbeopenforacceptance, bysignature orotherwise, byLithuania until.........
8. ThisProtocol shallenter intoforce onthethirtieth dayfollowing thedayofitsacceptance.
9. ThisProtocol shallbedeposited withtheDirector-General oftheWTO. TheDirector-General
oftheWTO shallpromptly furnish acertified copyofthisProtocol andanotification ofacceptance
thereto pursuant toparagraph 7toeachmember oftheWTO andLithuania.
10. ThisProtocol shallberegistered inaccordance withtheprovisions ofArticle 102oftheCharter
oftheUnited Nations.
11. Done atGeneva this...dayof....onethousand ninehundred andninety seven, inasingle
copyintheEnglish, French andSpanish languages eachtextbeing authentic, except thataSchedule
annexed hereto mayspecify thatitisauthentic inonlyoneormore ofthese languages.WT/ACC/SPEC/LTU/8
Page51
ANNEXES
[tobecompleted]WT/ACC/SPEC/LTU/8
Page52
ANNEX 1
Laws, Regulations andOther Information Provided totheWorking Party byLithuania
- LawonEnterprises of8May1990, No.I-196;
- LawonPrices of26July1990, No.I-413;
- LawonTaxes onProfits ofLegal Persons of31July1990, No.I-442;
- LawonPartnerships of16October 1990, No.I-676;
- LawonForeign Investment intheRepublic ofLithuania of29December 1990, No.I-905;
- LawonTaxes onState Natural Resources of21March 1991, No.I-1163;
- LawonSpheres ofBusiness Activity wherein Foreign Investment isProhibited orLimited
of2May1991, No.I-1276;
- LawonSmall Enterprises of20December 1991, No.I-2125;
- LawonCompetition of15September 1992, No.I-2878;
- LawonEnterprise Bankruptcy of15September 1992, No.I-2880;
- LawonCustoms Tariffs of27April 1993, No.I-138;
- Cooperative Lawof1June1993, No.I-164;
- LawonTrademarks andService Marks of3June1993, No.I-173;
- LawonForeign Currency intheRepublic ofLithuania of7July1993, No.I-202;
- LawonValue-Added-Tax of22December 1993, No.I-345;
- Patent Lawof18January 1994, No.I-372;
- LawontheCredibility oftheLitas of17March 1994;
- LawonExcise Taxes of12April 1994, No.I-429;
- Company Lawof5July1994, No.I-528;
- Government Decision onRegistration ofRepresentation Offices ofForeign Enterprises and
Banks intheRepublic ofLithuania of31May1991, No.223;
- Government Decision onVeterinary andSanitary Requirements onLivestock, theirProducts,
RawMaterials andFodder Imported totheRepublic ofLithuania andTransported asTransit
through itsTerritory of27April 1993, No.284;
- Government Decision ontheApproval ofVegetable Quarantine Regulations forImport and
Export ofGoods ofVegetable Origin toandfromtheRepublic ofLithuania andtheirTransit
through theTerritory oftheRepublic ofLithuania of3August 1993, No.599;
- Government Decision onMore Stringent Regulations onPurchase andSaleofWaste andScrap
ofFerrous Metals of23May1994, No.388;WT/ACC/SPEC/LTU/8
Page53
- Government Decision onOrder ofPurchase intheRepublic ofLithuania, Re-melting ofExport
ofCopper andother Non-ferrous Metals, theirAlloys, Scrap andWaste of29June1994,
No.526;
- Government Decision ontheProcedure ofCommodity Export andImport Regulation inthe
Republic ofLithuania of14October 1994, No.985;
- Newexcise duties (January 1995);
- LawontheAmendment andSupplement totheCivil Code oftheRepublic ofLithuania,
No.I-459, 17May1994 (provisions oncopyright);
- LawontheFundamentals ofFreeEconomic Zones, No.I-976, 28June1995;
- LawonPrivatization ofState-Owned andMunicipal Property, No.I-1001, 4July1995;
- LawConcerning Control ofImport, Transit andExport ofStrategic Goods andTechnologies,
No.I-1022, 5July1995;
- Agreement between theGovernment oftheKingdom ofNorway andtheGovernment ofthe
Republic ofLithuania concerning Trade inAgricultural Products;
- FreeTrade Agreement between theSwiss Confederation andtheRepublic ofLithuania;
- FreeTrade Agreement between theRepublic ofEstonia, theRepublic ofLatvia andtheRepublic
ofLithuania;
- Agreement onFreeTrade-Related Matters between theEuropean Community, theEuropean
Atomic Energy Community andtheEuropean CoalandSteel Community, oftheonepart,
andtheRepublic ofLithuania, oftheother part;
- ScheduleoftariffsapprovedbytheLithuanianGovernment'sResolutionNo.443(16June1993);
- Statistical dataonimports intoLithuania ofagricultural andfoodproducts;
- Statistical dataonexports from Lithuania ofagricultural andfoodproducts;
- Memorandum ofEconomic Policies oftheGovernment oftheRepublic ofLithuania forthe
period 1October 1994 and30September 1997;
- GovernmentResolutionNo.281"OnPartialAmendmentstoResolutionNo.985"OnProcedure
ofExport andImport Regulation intheRepublic ofLithuania" adopted bytheGovernment
oftheRepublic ofLithuania on14October 1994" of28February 1995;
- LawonCommercial Banks No.I-720 of21December 1994;
- LawonStateRegulation ofEconomic Relations inAgriculture No.I-734 of22December 1994;
- LawonTrade No.I-747 of12January 1995;
- LawonAlcohol Control No.I-857 of18April 1995 (asamended by3July1995);
- LawonSugar No.I-867 of27April 1995;
- LawonForeign Capital Investment intheRepublic ofLithuania No.I-938 of13June1995;
- Government Resolution No.35OntheApproval oftheOrder ofFoodstuffs Imported into
theRepublic ofLithuania andtheirQuality Control of9January 1995;WT/ACC/SPEC/LTU/8
Page54
- Government Resolution No.510OnApproving Provisional Regulations ofGovernment
Procurement of12April 1995;
- Government Resolution No.511OnApproving Regulations ofRendering Services of
12April 1995;
- Government Resolution No.635OntheGeneral Order oftheAdministration ofTariff Quotas
forImplementation andExportation ofGoods of8May1995;
- Government Resolution No.718OntheRestriction ofImport ofCertain Things (Goods) to
theRepublic ofLithuania, theirExport andTransit of19May1995;
- LawonIndustrial Design No.I-1006 of4July1995;
- Government Resolution No.205OnEnactment oftheFreeTrade Agreement between the
Republic ofLithuania andtheEuropean Community, theEuropean Atomic Energy Community,
andtheEuropean CoalandSteel Community of8February 1995;
- Government Resolution No.1221 OnLicensing Wholesale andRetail Trade inImport and
Export ofOilProducts andRetail Trade inLiquid Gasof14September 1995;
- Government Resolution No.1459Onlicensing Import, Wholesale andRetail Trade inAlcoholic
Products of17November 1995;
- Government Resolution No.1622 OnLicensing theProduction ofTobacco anditsProducts
andtheirImport intotheRepublic ofLithuania of27December 1995;
- LawonInsurance No.I-590 of20September 1990;
- LawonPlant Protection No.I-1069 of19October 1995;
- LawonCommunications No.I-1109 of30November 1995;
- LawonTobacco Control No.I-1143 of20December 1995;
- GovernmentResolutionNo.449"OntheApprovaloftheOrderofCustomsValuationofGoods"
of16June1993;
- Government Resolution No.1114"OntheApproval ofCustoms Duties ofBound Tariff Rates
fortheImported Goods" of26September 1996;
- Regime ofImport/Export Regulation intheRepublic ofLithuania;
- Law ontheLegal Protection ofComputer Programs andDatabases No.I-1188 of
30January 1996;
- TheCustoms Code oftheRepublic ofLithuania of6June1996;
- LawonMetrology No.I-1452 of9July1996;
- LawonInsurance No.I-1456 of10July1996;
- LawonPublic Procurement No.I-1491 of13August 1996;
- Government Resolution No.751"OntheCustoms Assessment ofPrices forImported Goods"
of25June1996;WT/ACC/SPEC/LTU/8
Page55
- FreeTrade Agreement between theRepublic ofEstonia, theRepublic ofLatvia andtheRepublic
ofLithuania onTrade inAgricultural Products of16June1996;
- LawontheProtectionofPlantVarietiesandSeedCultivationNo.I-1518of17September1996;
- LawonStamp Duty No.I-508 of23June1994;
- Draft LawontheConformity Assessment System; and
- GovernmentResolutionNo.384"OntheApprovalofQuarantineRegulationsfortheProduction,
Transportation, Conservation, SaleandUtilization ofPlants andPlantProducts ontheTerritory
oftheRepublic ofLithuania" of25March 1996.WT/ACC/SPEC/LTU/8
Page56[Table 1:Listofgoods andservices subject toprice control
Code according Items subject toprice control Institution applying
controlReasons andperspectives forcontrol
HS NACE
1 2 3 4 5
- - Price oflandsoldbytheState, price oflandforcomputing of
landtaxandlandlease taxGovernment Regulation oflandprice isrelated totherestitution of
therights toprivate landownership. Having
implemented landreform andhaving restored property
ownership, theregulation ofprices forlandwillbe
abolished.
- - Taxtariffs forlease oftheState-owned landandtheState-owned
water reservoirsGovernment Regulation isrelated totheState ownership forthese
items.
4010 Electricity production andtransmission Government Controlled because ofabsence ofsufficient competition
inthemarket.
4020 Distribution ofgasfuel(including onlythedistribution ofnatural
gas)Government Controlled because ofabsence ofsufficient competition
inthemarket.
4030 Supply ofheatandhotwater Government Astheprices forheating provided forresidents are
partly subsidised from theState Budget, State price
control willremain inthenearest future during the
1996-1997 heating season. Itisplanned todecentralise
theheating economy bytransferring ittolocal
governments.
Prices andtariffs forgoods andservices ofeconomic entities
having adominant position inthemarket:
2412 -mineral fertilizers; State Competition Controlled because ofadominant position inthe
2694 -cement; andConsumer market.
1410 -limestone; Protection Office Having adopted thenewLawonCompetition,
1410 -limestone-powder. thisprice control willbeabolished.
4100 Extraction, distribution andcleaning ofwater Local governments Controlled because ofamonopoly position ofthe
enterprises.
6010 Transportation ofpassengers bylocal railway routes Ministry ofTransport Controlled because ofamonopoly position ofthestock
company "Lithuanian railways".
6021 Transportation ofpassengers byother typeoflandtransport
(passenger buses oflocal andlongdistance routes)Ministry ofTransport
andLocal
governmentsSubsidised service, itisplanned toliberalise these
prices.WT/ACC/SPEC/LTU/8
Page57Code according Items subject toprice control Institution applying
controlReasons andperspectives forcontrol
HS NACE
1 2 3 4 5
6022 Passenger transportation bytaxi Local governments Controlled because ofspecific character ofthisservice
inorder toavoid ataxidrivers abuse ofunreasonably
highprices.
6120 Transportation ofpassengers bylocal shiproutes Ministry ofTransport Itisplanned toliberalise prices forthese services.
6323 Control activities oftheairport andaeroplanes 'flights, onland
services (airnavigation, terminal airnavigation, landing,
guide-vehicle, follow-me, parking, security (Government
Resolution No.866, 21061995)Ministry ofTransport Controlled because ofamonopoly position ofthe
airports.
6210 Transportation ofpassengers byairtransport Ministry ofTransport Regulated onbasis ofinternational agreements.
6322 Activities ofnavigation, shipruling andanchorage, raising of
sank ships (dues oftheState Klaipëda SeaPortfor:tonnage,
canal, light house, pilotage, regulation ofshiptraffic, anchorage,
sanitary, people rescuing andanti-pollution activities, mooring,
quay, passenger toll(Government Resolution No.410, 1006
1993)Ministry ofTransport Controlled because ofamonopoly position inthe
market.
6411 Postal services oftheNational postoffice (collection,
transportation anddelivery ofletters, postcards, printed matter,
sekograms, aerograms, small packages; receiving andpayment
ofmoney orders; supply ofpostal cash(giro) banking
operations; delivery (payment) ofpensions andallowances)Ministry of
Communications and
Information
TechnologySubsidised services ofsocial importance.
6420 Communication services (transmission byusing international,
inter town, local telephone lines,; switchboard services of
telephone andtelex, datatransmission, lineradio broadcasting)Ministry of
Communications and
Information
TechnologyServices ofsocial importance, controlled because ofa
monopoly position oftheState enterprise "Lithuanian
Telecom".
70 House rentprices oflocal governments 'apartments Local governments Controlled inorder toprotect consumers from
unreasonably highprices.
9000 Transportation ofgarbage andliquid sewage, careofcourtyard
territoryLocal governments Controlled inorder toprotect consumers from
unreasonably highprices
6340,
10Maximum tariffs forservices provided bycustoms
intermediatorsState Competition and
Consumer Protection
OfficeInorder toabolish tariffs control thedraft Government
Resolution isunder preparation now.WT/ACC/SPEC/LTU/8
Page58Code according Items subject toprice control Institution applying
controlReasons andperspectives forcontrol
HS NACE
1 2 3 4 5
7492 Tariffs forapartment security services (Vilnius, Klaipëda) Security Police
Divisions under Chief
Police CommissariatsServices ofspecific character, absence ofsufficient
competition.
7422 Tariffs forservices oflegalisation ofpotential dangerous
equipment, produced inLithuania orimported, andtariffs for
other similar servicesTechnical Supervision
Service under the
Ministry ofSocial
Security andLabourServices ofspecific character, absence ofsufficient
competition.
- Tariffs forservices onissuing ofanumber ofpublisher oflocal
credit card, acode ofdrafter oftechnical documents andofan
assortment number ofcanned foodLithuanian Standards
Board under the
Ministry ofPublic
Administration and
Local AuthoritiesServices ofspecific character, absence ofsufficient
competition.
7422 Tariffs forissuing ofquality certificates State Quality
Inspection under the
State Competition and
Consumer Protection
OfficeServices ofspecific character, absence ofsufficient
competition.
851 Tariffs ofhealth careservices forpersons, supported by
government orlocal government andprovided bygovernment or
local government health careinstitutionsMinistry ofHealth
CareControlled inorder toprotect consumers from
unreasonably highprices
851 Tariffs forpaid(private) health careservices, provided by
government orlocal government health careinstitutionsMinistry ofHealth
CareControlled inorder toprotect consumers from
unreasonably highprices
30.03;
30.04Maximum trade markups formedicines Ministry ofHealth
CareControlled inorder toprotect consumers from
unreasonably highprices.
523 Retail prices formedicines andmedical materials ofnecessary
assortment (about 350items)Ministry ofHealth
CareControlled inorder toprotect consumers from
unreasonably highprices.
851 Prices forservices provided byprofit seeking institutions. These
prices cannotexceed 60% ofprices setforservices ofthestate
institutionsMinistry ofHealth
CareControlled inorder toprotect consumers from
unreasonably highprices.
- - Minimum prices forstanding (non-cut) timber according tothe
kinds ofwood, finished wood andwoodshed timberMinistry ofForestry Minimum prices aresetinorder toavoid abuse of
unreasonably lowprices setbytheState forestries.WT/ACC/SPEC/LTU/8
Page59Code according Items subject toprice control Institution applying
controlReasons andperspectives forcontrol
HS NACE
1 2 3 4 5
44.03
44.06
44.03
44.03
44.03
44.03
44.03
44.01Minimum prices forround timber, setaccording tokinds of
assortment:
--cutlogs, including timber;
--logsforrailway sleepers;
--matchwood;
--paperwood;
--logsforpackage production;
--thin-logs;
--wood forslabs;
--fire-wood according tothegroups ofchangeabilityMinistry ofForestry Minimum prices aresetinorder toavoid abuse of
unreasonably lowprices setbytheState forestries.
44.03 Fixed prices forveneer rawmaterial Ministry ofForestry Exclusive position inthemarket, absence ofsufficient
competition.
]WT/ACC/SPEC/LTU/8
Page 60
[Table 2.1: Licensing ofbusiness activities inLithuania; goods-related activities
Business Activity Licence Required
1. pharmaceutical activity; Licence required for
domestic andforeign
interests. Licences for
activities (2),and(9)are
available onlyfordomestic
interests.2. cultivation andsaleofcrops containing narcotic, highly effective
orpoisonous substances;
3. production ofalcohol products;
4. import ofalcohol products toLithuania, wholesale andretail trade
byalcohol products;
5. production oftobacco products, import oftobacco products to
Lithuania;
6. purchasing andremelting ofcopper andother non-ferrous metals,
itsalloys, scrap andwaste inLithuania;
7. purchasing offerrous metals scrap anditswaste inLithuania;
8. purchasing andprocessing ofprecious metals waste andscrap;
9. manufacturing, import andexport ofthenarcotics andhighly
effective andpoisonous substances (which arenotused for
pharmaceutical purposes), wholesale andretail trade byitsin
Lithuania;
10. import ofspecial foodstuff andfood additives, wholesale trade by
itsinLithuania;
11. production ofseals, stamps, hunting knives;
12. trade bythetransport means onthecommission bases; projecting,
production, instillment, assembling andexploitation ofthe
protective fire-signalling;
13. production, import, transportation, trade, usage, storage and
burying ofthechemical materials which canharmfully actthe
environment;
14. commercial activity related withtheprecious metals andjewels;
15. import, export, wholesale andretail trade bytheoilproducts;
retail trade bytheliquefied gas;WT/ACC/SPEC/LTU/8
Page 61
Business Activity Licence Required
16. selling ofsports andhunting firearms, ammunition, weapons,
explosives andpyrotechnics;
17. export ofrawwood;
18. import andproduction ofbiological plants protection measures and
trade byits;
19. trade inantiquarian pieces;
1. manufacturing ofweapons, ammunition andexplosives; Activities reserved forState
andspecial enterprises 2. production ofsecurities, monetary signs andcoins, post-stamps;
3. transportation, usage orother activity related withradioactive,
nuclear material andwaste thereof.
1. production ofundenatured ethyl alcohol andalcohol beverages
which contain more than22percentofethyl alcohol byvolume
(thisright isgiven onlytoState enterprises unless theLawon
Alcohol Control provides otherwise);Activities reserved forState
enterprises, local enterprises
andspecial enterprises
2. production, import andrealization ofthehighly effective
substances which arenotofmedicinal destination.WT/ACC/SPEC/LTU/8
Page 62
Table 2.2: Licensing ofbusiness activities inLithuania; services
Business Activity Licence Required
1. prospecting ofnatural resources; Licence required for
2. theexploitation ofnatural resources; domestic andforeign
3. repair ofsports andhunting firearms, weapons; activity. Licences for
4. pharmaceutical activity; activity (12)areavailable
5. providing ofmedical services, medical treatment andhygiene
practices;onlyfordomestic interests.
6. veterinary practice;
7. lawyer practice, unless thelaws provide otherwise;
8. establishment ofeducational institutions, enterprises and
institutions engaged inthehealthiness activity;
9. carrying outofgeodetic andtopographical works, publishing and
printing oftopographical plans andmaps aswellascartographic
charts;
10. activity bytheinternational transportation, unless thelaws provide
otherwise;
11. tourism services;
12. organizing oflotteries assigned forcharity andsupport purposes;
13. providing ofcommunication services using ofcommon network of
telecommunications lines andstations;
14. construction andexploitation oftheinstallations radiating
electromagnetic waves;
15. researching, preservation andrestoration ofimmovable cultural
values; preparation oftheconditions, programmes andprojects of
such works; preservation andrestoration ofmovable cultural
values;
16. projecting andconstruction oftheState roads;
17. establishment oftheshooting-galleries andstands ofhunting
shooting;
18. mediation activity inthepublic turnover ofstock exchange;
19. stock exchange activity;WT/ACC/SPEC/LTU/8
Page 63
Business Activity Licence Required
20. investment andreinvestment tosecurities andtrade byitsasa
main activity; possession oftheinvestments companies property,
unless thelaws provide otherwise;
21. energetic activity;
22. inventory oftheforests andpreparation oftheforestry projects;
23. theforwarding agent services providing intheairandrailway
transport;
24. ships tugging;
25. rescuing andunderwater technical works;
26. lockman services;
27. fulfilment ofaudit;
28. mediation services foragiving ajob;
29. realestate activity;
30. provision ofinsurance services.
1. treatment ofpatients illwithinfectious diseases listed inthe Activities reserved forState
enterprises,
local enterprises andspecial
enterprises2. treatment ofanimals illwithespecially dangerous diseases;
3. postwork (only theState enterprise "Lietuvos pastas");
4. accepting andpaying offofpostal orders (only theState
enterprises "Lietuvos pastas");
1. toexploit railway, ports, airports andState roads; Activities withminimum
2. toexploit gas-pipes, pipelines, communication lines, electric
transmission lines, heatnetwork ofState importance andtoensure
technical functioning ofsuch objects.50percentState ownership
]WT/ACC/SPEC/LTU/8
Page 64
[Table 3:Rates ofStamp Taxestablished inaccordance with
Government Resolution No.1123 of11November 1994
1. Forissuing anactivity licences forimportation and
wholesale ofimported alcohol (fortheterm ofoneyear):
a. Vodka andother alcoholic beverages Llt.350,000 (US$90,000)
b. Alcoholic beverages except vodka Llt.300,000 (US$75,000)
c. Wine (notexceeding 22% ofvolume concentration ofethyl
alcohol) andbeer Llt.150,000 (US$37,000)
d. Beer Llt.30,000(US$7500)
2. Forissuing alicence toengage inwholesale ofalcohol
produced inLithuania (fortheterm ofoneyear):
a. Alcoholic beverages exceeding 22% ofvolume
concentration ofethyl alcohol) (licence includes alsobeer
andwine)Llt.15,000 (US$3,750)
b. Alcoholic beverages notexceeding 22% ofvolume
concentration ofethyl alcoholLlt.5,000 (US$1250)
c. Beer Llt.3,000 (US$750)
3. Forissuing anactivity licence forimportation and
wholesale oftobacco (fortheterm ofoneyear) Llt.6,000 (US$1500)
4. Forissuing anactivity licence forimportation and
wholesale oftobacco products (fortheterm ofoneyear) Llt.15,000 (US$3750)
5. Forissuing anactivity licence forimportation andfor
wholesale ofimported oilproducts: petrol, liquid fuel, kerosene,
aircraft fuel, diesel fuelandlubricants (fortheterm ofoneyear) Llt.500,000 (US$125,000)
6. Forissuing alicence toengage inwholesale ofoilproducts
(fortheterm ofoneyear) Llt.100,000 (US$25,000)
7. Forissuing alicence toengage inretail trade ofoil
products ineach petrol stationLlt.3000 (US$750) foreach
qualify ofpetrol, diesel fueland
liquid fuel
8. Forissuing alicence toengage inretail trade oflubricants Llt.1000 (US$250)
]WT/ACC/SPEC/LTU/8
Page 65
[Table 4:General tariff quotas applied byLithuania
Code ofgroup ofgoods*Description ofgroup ofgoods Ministry Issuing Quotas
0101 11,0102 10,0103
10,
0104 1010,
0104 2010Pure-bred breeding animals Ministry ofAgriculture andForestry
0105 11,
0105 1210,
0105 1920,
0105 1990Pure-bred breeding poultry Ministry ofAgriculture andForestry
0106 0010,
0106 0090Other livepure-bred breeding animals Ministry ofAgriculture andForestry
0201, 0202, 0203 Meat ofbovine animals, pork Ministry ofAgriculture and
Forestry**
0405 Butter Ministry ofAgriculture and
Forestry**
0407 0011,
0407 0019Pure-bred breeding birds’eggs for
hatchingMinistry ofAgriculture andForestry
0511 9950,
0511 9980Semen ofstallions, boars, ram,
he-goats, embryo ofbovine animalsMinistry ofAgriculture andForestry
0701 Potatoes Ministry ofAgriculture and
Forestry**
1001-1004 Cereals Ministry ofAgriculture and
Forestry**
1101 Wheat flour Ministry ofAgriculture and
Forestry**
1104 Cereal grains otherwise worked Ministry ofAgriculture and
Forestry**
1214 9091,
1214 9099Compound feed Ministry ofAgriculture and
Forestry**
1107 10 Malt, notroasted Ministry ofAgriculture and
Forestry**WT/ACC/SPEC/LTU/8
Page 66
Code ofgroup ofgoods*Description ofgroup ofgoods Ministry Issuing Quotas
1502 Fatsofbovine animals, sheep orgoats Ministry ofAgriculture and
Forestry**
1701 1110-
1701 1290Raw sugar, forrefining Ministry ofAgriculture and
Forestry**,
Ministry ofNational Economy
1701 91,1702 30,
1702 40,1702 90Sugar forspecial purpose Ministry ofAgriculture and
Forestry,
Ministry Health Care
1701 99 Sugar Ministry ofAgriculture and
Forestry**,
Ministry ofNational Economy
2207 10 Technical ethyl alcohol (spirits for
technical uses)Ministry ofNational Economy
2207 20 Denatured ethyl alcohol Ministry ofAgriculture and
Forestry,
Ministry ofNational Economy
5301 Flax tow Ministry ofNational Economy,
Ministry ofAgriculture andForestry
ex7010 9110,
ex7010 9210Preserving jarsofglass of0.35 and
3litreMinistry ofAgriculture and
Forestry,
Ministry ofConstruction and
Urbanistic
7010 9121,
7010 9221,
7010 9321,
7010 9420,
7010 9460Irregular transparent glass bottles Ministry ofAgriculture andForestry
9401, 9403 Special furniture forships Ministry ofTransport***
* Commodities 'codes aregiven according totheEEC Harmonized Commodity Description andCoding
System.
** Tariff quotas areapproved bytheGovernment upon recommendation oftheMinistry ofAgriculture
andForestry. Thequotas aregranted bythewayoftender.
*** Thequota shall beissued forthefurniture (notmore thanLlt.1.1million) designed fortheshiptobe
built bytheState Shipyard Company "Baltija" (code intheenterprises register -4034645) in1997.]WT/ACC/SPEC/LTU/8
Page 67
[Table 5:Fees andcharges forservices rendered relating toimportation orexportation
1. Formalities inconnection withplacement ofoneconsignment
ofgoods under oneofthefollowing customs procedures:
a. Exportation (including re-exportation) Llt.22(Llt. 1-US$0.25)
b. Importation (including re-importation andcustoms
warehousing)Llt.33
c. Temporary admission andtemporary exportation Llt.55
d. Inward processing andoutward processing Llt.110
e. Transit- intheday-time during working days (from 08.00hrs
to20.00hrs)Llt.6
f. Transit- during restdays andpublic holidays andalsointhe
night -time during working days (from 20.00hrs to08.00hrs)Llt.11
2. Issuance ofonecertificate oforigin Llt.28
3. Issuance ofstickers used formarking ofimported alcoholic
beverages andtobacco goods (under onerequest)Llt.22
4. Issuance ofauthorization forinward processing Llt.221
5. Issuance ofauthorization foroutward processing Llt.221
6. Issuance ofpermit tocarry outformalities inconnection with
customs procedures atother customs office:
a. Single Llt.10
b. Forperiod notexceeding 3months Llt.20
c. Fortheperiod notexceeding 6months Llt.60
d. Fortheperiod exceeding 6months Llt.80
]WT/ACC/SPEC/LTU/8
Page 68
[Table 6:Excise taxes levied inLithuania according to
Government Resolution No.328(9April 1997)
Commodity
codeCommodity description Taxes (bypercent oftaxable
value orabsolute lltfor
indicated measurement unit*)
2207.10.00.0;
2208 (except
2208.90.69.1;
2208.90.69.3)**Undenatured ethyl alcohol andalcoholic
beverages, except formeads, champagne, wine,
beerandsome medicines withherbs containing
ethyl alcoholLlt.0.43 per1%ofanalcoholic
strength byvolume peronelitre
2208.90.69.1 Meads Llt.0.12 per1%ofanalcoholic
strength byvolume peronelitre
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 ofanalcoholic strength byvolume of13%
vol,andother fermented beverages (excluding
beverages (code 2206.00.89.0) produced bythe
company “Lietuviskas midus ”)Llt.0.12 per1%ofanalcoholic
strength byvolume peronelitre
2204.21.81.0-
2204.21.94.0,
2204.29.81.0-
2204.29.94.0,
2205.10.10.0,
2205.90.10.0Wine andvermouth ofanalcoholic strength by
volume ofmore than13% vol,butnotexceeding
18% volLlt.0.17 per1%ofanalcoholic
strength byvolume peronelitre
2204.21.95.0-
2204.21.99.0,
2204.29.95.0-
2204.29.99.0,
2205.10.90.0,
2205.90.90.0Wine andvermouth ofanalcoholic strength by
volume exceeding 18% volLlt.0.28 per1%ofanalcoholic
strength byvolume peronelitre
2204.10,
2204.21.10.0,
2204.29.10.0Champagne andwine ofincreased pressure Llt.0.35 per1%ofanalcoholic
strength byvolume peronelitre
2203 Beer Llt.0.40/litre***WT/ACC/SPEC/LTU/8
Page 69
Commodity
codeCommodity description Taxes (bypercent oftaxable
value orabsolute lltfor
indicated measurement unit*)
2402.20.10.0-
2402.20.90.0Cigarettes withandwithout filters Llt.12for1000 units****
2402.10.00.0,
2402.90.00.0,
2403****Packed smoking tobacco andother tobacco
products50
2710.00.27.0-
2710.00.37.0Motor fuel/petrol Llt.100, butnotlessthanllt800
perton*****
2710.00.51.0,
2710.00.55.0,
2710.00.66-
2710.00.68Jetfuel, kerosene, gasoils(diesel fuel), liquid
furnace fuelLlt.40,butnotlessthanllt300
perton*****
2710.00.87.0-
2710.00.97.0,
2710.00.98.9Alltypes oflubricating oilsexcept forfueloil
M-100 classified inthefollowing subheading
2710.00.98.0Llt.8,butnotlessthanLlt.180
perton
1806.20.10.0-
1806.20.80.0,
1806.31-
1806.90Chocolate andother food products containing
cocoa, except cocoa powder andproducts
containing lessthan18% byweight ofcocoa
butter10
0901 Coffee 10
7113, 7114,
7116Articles ofjewelry andparts thereof, ofprecious
metal orofmetal cladwithprecious metals,
articles ofgoldsmiths ’orsilversmiths ’wares and
parts thereof, ofprecious metals ormetal clad
withprecious metals, articles ofnatural or
cultured pearls, precious orsemi-precious
stones-natural, synthetic orreconstructed10WT/ACC/SPEC/LTU/8
Page 70
Commodity
codeCommodity description Taxes (bypercent oftaxable
value orabsolute lltfor
indicated measurement unit*)
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, notolder than5years
(except forspecial cars) specified inthelistof
State Agency ofCompetition andConsumer
Rights Protection under theGovernment of
Lithuania15from 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 andviolence propagating publications 50WT/ACC/SPEC/LTU/8
Page 71
* Thetaxable value shall be:
- saleprice freefrom excise taxandVAT ofcommodities produced inLithuania;
- customs value, including duties, ofimported commodities.
** Commodity codes arepresented according totheHS(1997) codes.
*** Excise tax-Llt.0.2perlitre-shall belevied onbeerproduced andsoldbyeach Lithuanian beer
manufacturing company producing 100thousand decalitres peryear(thisprovision shallbeapplied until
Lithuanian Membership oftheWorld Trade Organization).
**** Excise tax-Llt.15for1000 units-shallbelevied oncigarettes ofhighest quality produced inLithuania
andimported (until 30September 1997). Excise taxshallnotbelevied ontobacco (code 2403.10.90.1)
imported bythejoint-stock company “Philip Morris Lietuva ”andbythecompany “House ofPrince
Lietuva ”.Inthecasewhen imported tobacco inthese companies isusednotforproduction ofcigarettes,
butforother purposes, theexcise taxshall belevied.
***** Absolute excise tariffs only(inLlt.pertoneshallbeapplied onoilproducts produced inthejoint-stock
company “Mazeikiu nafta”.From 1August 1995 excise shall benotapplied onjetfuel(code
2710.00.51.0) imported byjoint-stock companies “Lietuvos avialinijos ”and“Lietuva ”andpurchased
from thejoint-stock company “Mazeikiu nafta”.]WT/ACC/SPEC/LTU/8
Page 72
[Table 7:Rates ofExport Duties approved byGovernment Resolution No.268of24March 1997
Code ofgroup ofgoods*Description ofgroup ofgoods Tariff rate(%)**
0505 10 Feathers forstuffing; down 60
0510 00002,
0510 00103Glands andother organs used inpharmaceutical
products***60
3001 1090-
3001 9091Glands andorgans used inorgano-therapeutical uses***60
4101, 4103 Raw hides andskin 60
4403 20906 Pinewood inlogs, withacircumference notlessthan
20cmatthethinend60
4403 20907 Spruce wood inlogs 60
4403 91 Unprocessed oaktimber 60
4403 99991 Unprocessed ashtimber 60
4403 99992 Birch wood inlogs, withacircumference notlessthan
20cmatthethinend60
* Codes ofgroups (goods) arepresented according totheEECHarmonized Commodity Description and
Coding System.
** Goods without codes herein aresubject toazeroratecustoms duties.
*** Under quotas granted bytheMinistry ofHealth Care theexport ofsuch products isdutyfree.]