RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/LTU/52
7 November 2000
(00-4691)
Working Party on the
Accession of Lithuania
REPORT OF THE WORKING PARTY ON
THE ACCESSION OF LITHUANIA
TO THE WORLD TRADE ORGANIZATION
INTRODUCTION
1. The Government of Lithuania applied for accession to the General Agreement on Tariffs and
Trade (GATT 1947) in January 1994.  At its meeting on 22-23 February 1994, the GATT 1947 Council
of Representatives established a Working Party to  examine the application of the Government of
Lithuania to accede to the General Agreement under Article XXXIII of the General Agreement.
Following the conclusion of the Uruguay Round, L ithuania requested accession to the World Trade
Organization (WTO) under Article XII of the Marrakesh Agreement Establishing the World Trade
Organization.  In accordance with the Decision adopted by the WTO General Council on
31 January 1995, the existing GATT 1947 Accession Working Party was transformed into a WTOAccession Working Party.  The terms of referen ce and the membership of the Working Party are
reproduced in document WT/ACC/LTU/1/Rev.7.
2. The Working Party met on 10 November 1995; 25-26 March and 7 October 1996;
26 March 1997;  and 2 October 2000 under the Chai rmanship of Mr. Pe ter Witt (Germany). 
DOCUMENTATION PROVIDED3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the
Foreign Trade Regime of Lithuania (L/7551), the que stions submitted by Members on the foreign trade
regime of Lithuania together with the replies ther eto and other information provided by the Lithuanian
authorities (WT/ACC/LTU/ 2 and Addendum 1;  WT/A CC/LTU/4;  WT/ACC/LTU/5;
WT/ACC/LTU/7 and Addendum 1;  WT/ACC/LT U/9;  WT/ACC/LTU/ 10;  WT/ACC/LTU/12;
WT/ACC/LTU/15;  WT/ACC/LTU/16;  WT/ACC/LT U/17;  WT/ACC/LTU/19;   WT/ACC/LTU/22 and
Revision 1;  WT/ACC/LTU/23;  WT/ACC/LT U/24;  WT/ACC/LTU/ 26;  WT/ACC/LTU/27;
WT/ACC/LTU/32;  WT/ACC/ LTU/33;  WT/ACC/LTU/35;  WT/A CC/LTU/36, including Revisions 1,
2 and 3;  WT/ACC/LTU/41;  WT/ACC/LTU/42;  WT/ACC/LTU/43;  WT/ACC/LTU/48;  and
WT/ACC/LTU/51), including the legislative text s and other documentation listed in Annex I.
INTRODUCTORY STATEMENTS
4. In his introductory statement, the representative of Lithuania noted that his country was small
and heavily dependent on foreign trade.  Since restoration of independence in 1990, the centrally
planned system in force had been effectively repl aced by a market-oriented economy.  Lithuania had
established a new banking system and its own currency and was proceeding on fundamental economic
reforms, including the enactment of new legislative measures, privatization, deregulation of prices and
trade, in close cooperation with international inst itutions.  However, econom ic transformation could
only be successful if supported by integration into  the world economy and the international trading
system based on the principles of the WTO.WT/ACC/LTU/52
Page 2
5. Lithuania's foreign trade patterns had also chan ged significantly since 1990.  The share of trade
with countries in the Commonwealth of Independent St ates had declined substantially while trade flows
with other countries had increased.  Lithuania's over all balance of payments was in surplus despite a
trade deficit.  Lithuania had resisted protectioni sm in a period of difficult economic transition.  The
foreign trade regime would be liberalized further.  Several trade agreements had been signed, reducing
barriers to trade, and other agreements were under negotiation.  Accession to the WTO was a matter of
highest priority as Lithuania sought integration into the world economy on the basis of internationally
recognized rules, providing a stable and predictabl e environment and a precise legal framework for trade
among nations.  Lithuania's accession would also have positive repercussions for its trading partners.
6. In their opening remarks, members of the Work ing Party welcomed the request from Lithuania
to accede to the WTO.  Lithuania's integration into the world economy and trade on the basis of
multilaterally agreed principles and rules was seen as an important element underpinning economic and
institutional reforms in Lithuania.
7. The Working Party reviewed the economic policies and foreign trade regime of Lithuania and
the possible terms of a draft Protocol of Accession to the WTO.  The views expressed by members of
the Working Party on the various aspects of Lithuania's foreign trade regime, and on the terms and
conditions of Lithuania's accession to the WTO are summarized below in paragraphs 8 to 188.
ECONOMIC POLICIES
Monetary and Fiscal Policy
8. The representative of Lithuania recalled that the direction of macro-economic policies during
1995 to 1997 had been laid down in a Memorandum of State Economic Policy of the Republic of
Lithuania, a copy of which had been provided to the Working Party.  More specifically, he explained
that the tax system consisted of corporate profit tax;  personal income tax;  value added tax;  excises;
social security tax;  taxes on natural resources, oil a nd gas;  pollution tax;  customs duties;  a tax on fixed
property;  road tax;  land taxes;  stamp tax (State fees and charges, for example, for obtaining licences);
and other taxes (inheritance tax, consular fees, etc.).  The tax on pollution was meant to encourage
investment in clean (environmentally-friendly) tec hnologies.  The tax was levied on legal and natural
persons polluting the environment.  The tax was specific and its level was based on the quantity, degree
of harm and type of pollution.  Taxes on fixed pr operty and the road tax had been introduced in 1995.
The road tax was levied on enterprise revenue (0-1  per cent) except for banks which paid a percentage
of the margin earned.
9. Monetary policy was determined in the contex t of Lithuania's currency board arrangement,
implemented by the Bank of Lithuania in accordance wi th the Law on the Credibility of the Litas, which
had entered into force on 1 April 1994.  Since 1997, the Bank of Lithuania had followed a monetarypolicy strategy approved by its Board and outlined in the Monetary Policy Programme for 1997-2000.
The currency board arrangement whereby the Litas was pegged to the U.S. dollar was being continued
to anchor Lithuania's macroeconomic policies.
Foreign Exchange and Payments
10. The representative of Lithuania informed the Wo rking Party that his country had recorded a
steadily rising deficit in its merchandise trade of US$324 million in 1994, US$943 million in 1995,
US$1,204 million in 1996, US$1,784 million in 1997, US$2,083 million in 1998, and US$1,795 million
in 1999.  Monetary and foreign exchange policies in Lithuania had been based on a currency board
arrangement since 1 April 1994.  The national currency - the Litas - was pegged to the US Dollar.
Lithuania's acceptance of the requirements of Article  VIII of the Articles of Agreement of the IMF,
providing for currency convertibility  for current international tr ansactions, constituted formal
confirmation of the maintenance of convertibility of th e Litas.  According to a statement by the Bank ofWT/ACC/LTU/52
Page 3
Lithuania of 13 October 1999, the Lithuanian Government intended to modify the currency board
arrangement by basing it on the Euro, although th e precise moment for doing so would depend on
developments in the Lithuanian economy.  Lithuani a maintained no restrictions on capital transfers.
Residents could open accounts in foreign banks and non-residents were allowed to keep accounts with
commercial banks in Lithuania.  Current accounts and other types of accounts in any currency could beopened and maintained without restriction.
Investment Regime
11. The representative of Lithuania said that foreign and domestic investment was as a rule treated
equally, except that foreign investment was prohibited in areas related to national security and defence,
and the organizing of lotteries in accordance with the new Law on Investment of 7 July 1999, which had
replaced the Law on Foreign Capital Investments in th e Republic of Lithuania.  Further, in June 1996,
Parliament (the Seimas) had approved an amen dment to the Constitution allowing foreigners to
purchase certain types of land (non-agricultural pl ots required for the construction and operation of
buildings and facilities necessary for their direct activity).
12. Following its replacement by the Law on Investment in July 1999, the tax advantages for
investors foreseen in the previous Law on Foreign Capital Investments had been maintained in various
other tax laws.  Taxation of foreign enterprises would continue to be no less favourable than the rulesapplied to domestic natural and legal persons.  Lit huania offered certain tax holidays.  Enterprises
established between 1 August 1995 and 1 April 1997, with foreign investment of minimum
US$2 million were exempt from profit (income) tax for the first three years and subject to a 50 per cent
tax reduction for the following three years, starting  from the day the first profit was achieved.  Domestic
and foreign small enterprises (number of employees not exceeding 50 and annual sales of no more than1 million Litas) received tax reductions amounting to  50 per cent.  Producers of agricultural products
were assessed profit tax at the rate of 10 per cent provided the agricultural items accounted for minimum
50 per cent of total sales of the enterprise.  As  from 1 April 1997, Lithuania exempted all profit of
domestic or foreign enterprises spent on capital inve stments from profit (income) tax.  Foreign investors
had the right, having paid the taxes, to transfer the profit, income or dividends belonging to them by
virtue of ownership to a foreign country without any restrictions.  If an enterprise was under liquidation
by its founders, the assets or a portion thereof corre sponding to the amount of foreign investment which,
on the decision of the shareholders, were due to foreig n investors, could be taken out of the country tax
free (covering physical and financial assets) upon pa yment of corporate taxes due to the State and
settlement of accounts with creditors and employees.   Eligibility for these benefits was not contingent
upon export performance or use of domestic inputs in the production process.  Since 1 October 1998, an
investor investing not less than 200 million Litas within three years could request an investment
agreement with the Government.  The agreement confirme d that direct taxes stipulated in the tax laws in
force at the time of investment could not be increased  for this enterprise for a period of five years from
the time of the investment.
State Ownership and Privatization
13. The representative of Lithuania explained that privatization had initially been implemented
through investment vouchers which could be used  to purchase State property, residential housing,
agricultural enterprises and repurchasing of land.  Most of this privatization, which allowed bids by
employees and management, had proceeded without fo reign participation.  Marking the second stage of
the privatization process, a Law on Privatization of State-Owned and Munici pal Property had entered
into force in September 1995, providing for privatiz ation through public subscription of shares;  public
auction;  public tender;  sale through direct negotia tion;  capital lease;  and the creation of a State
Privatization Agency, which had become the State Property Fund on 11 May 1998.  The State had
retained stakes in some farms or enterprises ( 30-90 per cent) until they were fully privatized in
connection with their transformation into joint-stoc k companies during the first stage of privatization.
Assets sold by public auction were privatized in their entirety and the State generally did not retainWT/ACC/LTU/52
Page 4
ownership in privatized enterprises.  The new Law on Privatization of 4 November 1997, which had
replaced the 1995 Law, stipulated that foreign and domestic investors would participate in the
privatization process on an equal basis, both in the form  of direct and portfolio investments.  Pursuant to
the 1995 Law, the Government had established a list of enterprises in agro-processing, agro-services,
industrial and other sectors to be subject to aucti ons and tendering.  The list established in 1997 had
comprised 1,114 enterprises, including enterprises part-p rivatized at the first stage of privatization, and
large-scale enterprises previously excluded from pr ivatization such as energy, communications and
transport services.  As of 1 January 2000, the number of enterprises offered for privatization had
increased to 3,100 entities.
14. Privatization in agriculture, including the rest oration of land to former owners, had proceeded
despite certain legal problems (only the State and natural persons could own land), uneconomic
partitioning of land and other main assets, and lack of capital for family farming.  The general policy in
this area was to offer preferential bidding terms to agricultural producers.  Farmers had been offered
favourable terms in the privatization of some pr ocessing industries (meat, grain, dairies and sugar
factories).  In most food processing sectors 90 per cent or more of the assets had already been privatized.
Regarding privatization in the sugar sector, Lithuani a had four sugar refineries, all of which had been
transformed into joint-stock companies.  These had been fully privatized in Summer 1998, when a
private investor purchased the remainin g State share in all four companies.
15. As a result of these various privatization efforts, by 1 January 1999 Lithuania had wholly
privatized all State-owned farms (not including agri cultural processing enterprises).  By 1 January 2000,
Lithuania had made significant progress in the priv atization of 218 agro-processing (meat, milk, grain,
crop selection, etc.) and agro-service enterprises that had been identified for privatization and expectedto complete the process by the end of 2000.  The 218 enterprises represented the entire share of all State-
owned assets in agro-processing.  The State had ex cluded from the privatization process its stakes in
(i) 19 experimental farms at research institutions of ag ricultural science studies;   (ii) 54 teaching farms
at agriculture schools;  and (iii) eight farms of pure- strain enterprises.  However, the State was not the
sole provider of agriculture research and technical facilities.  Private companies were free to engage in
such activities, and there were no restrictions or special requirements on imports of such products and
services.
16. Significant progress had also been made in pr ivatizing industry.  During 1991-1995 (the first
stage of privatization), approximately 88 per cent of the industrial (goods) enterprises, 97 per cent of the
services enterprises, 86 per cent of the transpor tation enterprises and 82 per cent of the commerce
enterprises identified for privatization, had been pr ivatized.  Enterprises not privatized or partially
privatized during the first stage had been included in a new list of enterprises earmarked for privatization
at the second stage.  During 1996-1999, privatization had been completed for 25 per cent of the
identified industrial enterprises, 28 per cent of the transportation enterprises and 36 per cent of the
commerce enterprises.  The process had been given new impetus by the decision to allow privatization
in industrial and non-agricultural service sectors to take place on a cash (rather than voucher) basis,
allowing the participation of foreigners.  As part  of the plan to privatize on a cash basis the State
intended to sell shares in joint-st ock companies, retained during the first stage of privatization, to
qualified bidders.  The Lithuanian Government had built on its success in privatizing small and medium
sized enterprises to draw up plans for the privatiz ation of 14 large and strategic enterprises in key
industries and services sectors (energy, communicati ons, transportation, etc.).  Privatization was carried
out on a cash basis and was open to foreign and domestic investors alike.  In addition, the Governmenthad undertaken programmes to privatize the two re maining State commercial banks in Lithuania - the
Lithuanian Savings Bank and the L ithuanian Agriculture Bank.  These currently State-owned enterprises
and banks represented the bulk of the remaining cap ital to be transferred to private ownership.  The
process of privatizing large State enterprises, includ ing banks, was expected to continue for some time.
The largest privatization contract in the Baltic States had been concluded on 7 July 1998 with thepurchase of 60 per cent of "Lietuvas Telekomas" (Lithuanian Telecom) by Amber Teleholdings, a
consortium owned by Telia (Sweden) and Sonera (Finland).  The most important privatizationWT/ACC/LTU/52
Page 5
agreement had been concluded on 29 October 1999, when the U.S. company "Williams International"
had bought 33 per cent of the shares of the State-owned oil refinery, joint stock company "Mazeikiu
Nafta".  A hotel ("Lietuva"), a sea cargo company ("Klaipedos Smelte"), a ship repair yard ("Vakaru
laivu remontas"), a Lithuanian shipping company ("Kl aipedos juru kroviniu kompanija"), an insurance
company ("Lietuvos draudimas"), and the joint stoc k company "Lietuvos kuras" (Lithuanian Fuel) had
also been privatized, and other enterprises were in the process of privatization.
17. A Law of 28 December 1994 provided a list of Stat e enterprises not to be privatized until the
year 2000.  The original list had been reexamined, and the authorities had decided to proceed on the
basis of a more specific sub-division of these enterp rises, hence the list had been broken down into 960
entities active in areas such as recreation, transportation, pharmacies and postal services.  The list had
subsequently been reduced under an amendment to this Law on 3 April 1997, and currently comprised
59 entities, including large-scale entities such as Li thuanian Post, railways and their infrastructure,
pipelines, electricity transmission lines, sea ports, et c.  The Government would review the need for
further privatization in 2000.  Another 95 enterprise s, such as the State Nuclear Power Plant, were
currently not included in the privatization plans.
18. Some members requested Lithuania to provid e a table or chart indicating the status of
privatization, by size and/or type of firm, addressing  all enterprises still wholly or partly owned by the
State, information on how many St ate-owned firms existed prior to privatization, how many had been
fully privatized,  a list of enterprises and sectors stil l wholly or partly owned by the State, the portion of
equity still owned by the State, the portion of output  and trade represented by private firms, how many
firms had been prepared for privatization and for which privatization was pending, and how many were
not at this time contemplated as part of the priva tization programme.  Lithuania should also define the
conditions whereby it would consider its privatiza tion programme completed and when it expected to
accomplish this.  The representative of Lithuania submitted information on the privatization process in
Lithuania (1991 - 31 July 1997), circulated in document WT/ACC/LTU/17 of 26 September 1997.  Of
the approximately 8,065 enterprises owned by the State prior to privatization, 5,714 entities valued at
3.2 billion litas had been privatized during the first stage of privatization (1991-1995).  Entities not100 per cent privatized during the first stage had been included in the second stage of privatization.  The
second stage (January 1996 – December 2000) had thus far covered the privatization of 1,364 entities
worth some 3 billion litas.  Detailed information on privatization of State and municipal assets and
agricultural enterprises is presented in Table 1(a)-(c).
19. The representative of Lithuania confirmed the read iness of Lithuania to ensure the transparency
of its ongoing privatization programme and to keep WTO Members informed of its progress in the
reform of its transforming economic and trade regime .  He stated that his Government would provide
annual reports, along the lines of that provided to the Working Party, to WTO Members on
developments in its programme of privatization as long as the privatization programme would be in
existence.  He also stated that his Government would provide annual reports on other issues related to
economic reforms as relevant to its obligations under the WTO until 31 December 2004.  The Working
Party took note of these commitments.
Pricing Policies
20. Some members of the Working Party noted that certain goods and services remained subject to
price controls and requested details and plans regard ing further deregulation of prices.  Lithuania was
asked to list the products subject to price controls a nd to provide information on the legal basis for these
controls, the reasons for these controls and the conditions under which such or extended controls mightbe applied in the future.
21. The representative of Lithuania replied that price controls had been relaxed gradually in
Lithuania.  Controls on mark-ups on foodstuffs had ceased as of 1 April 1995, thus profit margins were
no longer limited at the processor or retail level.  He provided an updated list of goods and servicesWT/ACC/LTU/52
Page 6
subject to price control, reproduced in Table 2.  He did not believe that the number of goods and
services subject to price controls would increas e in the future.  Further price liberalization in
transportation and telecommunications would be linked to increasing competition resulting from
economic restructuring and privatization.  He conf irmed that Lithuanian industries did not receive
electricity and gas at subsidized prices, but price c ontrols would remain on residential use of electricity,
natural gas and heating to support low-income households.  He said that the price control on State-
owned land was connected with the restoration of priv ate land ownership as part of agricultural reform.
He further stated that price control on State-owne d land would be abolished after the restoration of
private land ownership in the course of the impl ementation of agricultural reform.  Upright wood
(HS 0602.99.41) from State-owned forest s was subject to minimum, not maximum, prices.  Wood from
private-owned forests was not under State price regu lation.  He confirmed that the Government would
revise those price controls.  He confirmed that pri ces of goods and services in every sector, with the
exceptions listed in Table 2, were determined freely by market forces.  The list of goods and services
subject to price controls set by the State and any ch anges to this list would be published in the Official
Gazette, and price controls set by municipaliti es would be published in the local mass media.
22. The representative of Lithuania confirmed th at his Government would apply the minimum
prices and price controls on products and services contained in Table 2, and any that are introduced or re-
introduced in the future, in a WTO consistent fashion, and take account of the interests of exporting
WTO Members as provided for in Article III.9 of th e GATT 1994.  Lithuania also  will publish the list of
goods and services subject to State price controls in  the Official Gazette including any changes from the
list in Table 2.  The Working Party took note of this commitment.
Competition Policy
23. The representative of Lithuania said that a new Law on Competition had been adopted by
Parliament on 23 March 1999.  The new Law, which had replaced the 1992 Law on Competition,
improved the control of restrictions of competiti on in Lithuania.  Supervised by the Competition
Council, the Law was applied to all enterprises i rrespective of ownership or kind of economic activity
across the entire territory of Lithuania.  The Law re gulated practices restricting competition or involving
unfair competition.  The exemption from the Law on Competition in favour of the union of sugar
producers had been eliminated in accordance with the Law on the Amendment and Supplement to the
Law on Sugar of 8 July 1999.  He added that the Government had approved Resolution No.137 of 18
February 1997 (amendment of 30 April 1999) concerni ng the "State Aid Monitoring Order", which
sought to prevent distortions to competition being cr eated by State aid provided to individual operators
in the market.
24. The Competition Council had investigated 48 cases of abuse of dominant position between
1992 and 1999.  A further 3 cases had been opened in 2000.  Dominant enterprises were those
controlling 40 per cent or more of the relevant do mestic market;  the Council had included enterprises
with market shares exceeding 60 per cent in a list of dominant suppliers.  In January 1996, the
Competition Council had listed six enterprises holding from 60 to 90 per cent of their respective markets
and having abused their dominant positions by ch arging unreasonably high  prices during 1994-1995.
The six enterprises were obliged to notify price chan ges in advance to the Competition Council.  The list
of dominant enterprises had been discontinued.  Abuse of dominant position would henceforth be
investigated on a case-by-case basis.  In 1997, 44 cases of presumed violation (abuse of dominant
position, mergers, unfair competition, prohibited ag reements) of the Law on Competition had been
investigated, and the Competition Council had adopted  the appropriate decisions.  Fines had been
imposed in 36 cases.  By January 1999, 107 investigations had been carried out on the basis of
complaints or at the Council's own initiative.  During 1998, the Council had taken 19 decisions, and
fined 23 economic entities.  In 1999, 80 investigations had been carried out, 14 decisions had been
taken, and 3 enterprises had been fined.WT/ACC/LTU/52
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FRAMEWORK FOR MAKING AND ENFORCING POLICIES
25. The representative of Lithuania said that sove reign State power in Li thuania was exercised by
the President, the Seimas, the Government and the judiciary.  The Seimas was a one-chamber
Parliament with 141 members.  The Seimas considered and enacted amendments to the Constitution,
enacted laws, considered the programme of the Go vernment, approved the State budget, established
State taxes and other obligatory payments, ratified in ternational treaties, and considered other domestic
and foreign policy issues.  The President of the Republic was the Head of State.  The President
represented the State of Lithuania and performed the duties laid down by the Constitution and the laws,
including the passage of Presidential Decrees.  The Government was the highest authority of executive
power.  The Government was led by the Prime Mini ster and currently consisted of 14 Ministries.
Discharging the duties prescribed by the Constitution and other laws, the Government was bound in its
activities by the Constitution, laws and other legal acts adopted by the Seimas, including internationaltreaties and Agreements, or decrees of the Presiden t.  The Government implemented these legal acts in
the form of resolutions.  Each resolution of th e Government was an act incorporating concrete
implementation measures.  Thus, legal acts of the Government did not requi re further approval by
Parliament.  In exceptional circumstances requiring  immediate decision, the Government could pass a
temporary measure (resolution) while Parl iament's adoption of a law was pending.
26. The hierarchy of legislative acts in Lithuania comprised the Constitution, Constitutional Law,
International Treaties and Agreements, Laws and othe r legal acts adopted by Parliament, decrees of the
President, Government Resolutions, and other lega l acts of governmental bodies.  The WTO Agreement
would have the status of an international treaty.  The Law on Order of Publishing and Entry into Force
of Legal Acts of 6 April 1993 and its amendment of 18 May 1999 had established the order of entry intoforce of legal acts in Lithuania.  Having been pub lished in the Official Gazette, legal acts entered into
force on the following day, or on a later date stipulat ed in the published legal act.  The judicial system in
Lithuania comprised the Constituti onal Court, the Supreme Court, th e Appeals Court, the County Court
and District (city) Courts, and the system of administrative courts described in paragraph 27.
27. A special dispute settlement order existed unde r Article 24/1 of the Civil Process Code with
regard to measures or decisions taken by offici al or government institutions.  On 14 January 1999,
Parliament had passed the Law on Administrative Proce dure.  The Law, which had entered into force on
1 May 1999, set out the legal procedure for administrative cases.  The objective of the Law was to
establish how administrative cases of conflicts, deriving from relations governed by administrative law,
would be examined.  The Law established a system of three-stage administrative courts.  In general, the
administrative court had competence to act as an arbi ter in disputes involving public administration and
natural or legal persons, including decisions or acti ons of State or local self-government administration
going beyond their competence or specifically infringing laws or supplementary legal documents.  The
Law was the principal law determining legal pro cedures for administrative cases, including the
procedure for traders to refer measures affecting in ternational trade to an independent judicial body.
Issues not regulated by the Law were covered by the Code of Civil Procedures.  In his view, Lithuania's
mechanism complied fully with the requirements of GATT Article X:3(b) and GATS Article VI:2.
28. The representative of Lithuania added that local governments acted freely and independently
within the limits of their competence, established by the Constitution and laws.  Local Councils
maintained the right, within established limits and in accordance with procedures laid down by law, to
levy taxes on excavation sites, traffic access, parking,  street vendors, visual commercial advertisements,
etc.  However, municipalities were not entitled to tax items subject to taxation at the national level.Local authorities thus could not apply duties on im ported goods.  The representative of Lithuania
confirmed that sub-central administrative authorities , e.g. local administrative bodies, had no jurisdiction
or authority to establish regulations or taxes on g oods and services in Lithuania independent of the
central authorities, and that application of these measures was exclusively the responsibility of the
executive and legislative branches of the central Government.WT/ACC/LTU/52
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29. The representative of Lithuania confirmed that  sub-central entities had no autonomous authority
over issues of subsidies, taxation, trade policy or any other measures covered by WTO provisions.  He
confirmed that the provisions of the WTO Agreement,  including Lithuania’s Protocol, shall be applied
uniformly throughout its customs territory and other territories under its control, including in regions
engaging in border trade or frontier traffic, sp ecial economic zones, and other areas where special
regimes for tariffs, taxes and regulations are established.  He added that when apprized of a situation
where WTO provisions were not being applied or  were applied in a non-uniform manner, central
authorities would act to enforce WTO provisions wit hout requiring affected parties to petition through
the courts.  The Working Party took note of these commitments.
POLICIES AFFECTING TRADE IN GOODS
Trading Rights (the right to import and export)
30. Some members of the Working Party noted that laws and regulations relating to the right to
trade in goods (also sometimes referred to as "regis tration requirements" or " activity licensing") should
not restrict imports of goods in violation of the general prohibition on quantitative restrictions in GATT
Article XI:1, nor should they discriminate against imported goods in violation of the non-discrimination
provisions of GATT Article III:4.  Furthermore, fees and charges levied on the right to import should be
limited to the approximate cost of services rendere d (Article VIII:1(a)) and taxes and charges on the
right to trade in imported goods should not lead to  discrimination in favour of like domestic products
(Article III:2).
31. In order to establish whether these GATT prov isions were observed, some members requested
Lithuania to supply information on (i) the conditions  attached to the right to import individual products
or groups of products, including all fees and charge s levied on these rights;  and (ii) the conditions
attached to the right to engage in the internal sale, offering for sale, purchase, transportation, distribution
or use of individual products or gr oups of products, including all taxes and charges on these activities, in
particular when these distinguished between im ported products and products of national origin.
Lithuania was also asked to provide information on how it would bring its policies into line with GATT
requirements whenever this was necessary and, in particular, how it would modify its stamp taxes to
conform to relevant GATT rules.
32. The representative of Lithuania replied that the fo llowing types of entities, which have the right
to engage in commercial/economic activities could be registered in Lithuania:  individual (personal)
enterprises;  partnerships;  limited partnerships;  stock corporations (public and closed);  State
enterprises;  agricultural companies and cooperative  companies.  Both foreign and domestic legal or
natural persons could register to do business in Lit huania.  However, individua ls could not register to
import, but they could establish an enterprise and the enterprise could register to import.
33. He added that certain activities were subjec t to licensing in accordance with the Law on
Amendments and Supplements of the Law on En terprises of 25 September 1997.  Table 3.1 listed
goods-related business activities subject to licensing  in Lithuania.  He confirmed that Lithuania
maintained the same criteria and procedures for review ing applications for licences to engage in trade or
production of goods, whether the applicants intende d to deal in domestic or imported goods, or a
combination thereof, except as noted in paragraph 36 below.  The number of economic activities
requiring licence had been significantly reduced unde r a new amendment of the Law on Enterprises, and
he expected further reductions in the number of licensed activities in the future.  Licensing of
commercial activity, including importation, was curre ntly applied to products containing alcohol;
tobacco and tobacco products;  oil products;  narcotics and poisonous substances;  and ammunition,weapons and pyrotechnics (updated information on licensing criteria for imported goods was provided
in document WT/ACC/LTU/19).  Two activities - produc tion of products with ethyl alcoholic strength
exceeding 22 per cent;  and the printing of money, postage stamps and coins  - could only be undertaken
by enterprises owned by the State or municipalities,  or special enterprises.  The exclusive rights toWT/ACC/LTU/52
Page 9
produce alcoholic beverages with strength greater than 22 per cent did not extend to the importation of
such beverages.
34. Concerning the activity licensing of production and tr ade in alcoholic beverages, he said that the
State Tobacco and Alcohol Control Agency issued separate activity licences for wholesale trade in
alcoholic beverages produced in Lithuania, and fo r importation and production of alcoholic beverages.
The licensing requirements for alcoholic beverages were identical for all types of activity.  The Agency
issued licences for importation and wholesale trade in  alcoholic beverages while retail traders obtained
authorization from municipal authorities.  He stre ssed that domestically-produced alcohol was subject to
the same restrictions and regulations as imported products.  In all, about 12,000 import, wholesale and
retail licences had been issued during 1995, about 11,000 licences in 1996, 10,500 in 1997, 10,200
licences in 1998, and some 10,600 in 1999.
35. The activity licensing for importation of alcoholic beverages had been changed.  Parliament had
approved the Law on Amendment and Supplement to the Law on Alcohol Control on 8 April 1997.
One of the purposes of the new Law was to harmoni ze the existing Law on Alcohol Control with the
provisions of the WTO.  The ne w Law did not restrict the number of activity licences to import
alcoholic beverages and did not require importers to limit their choice of imports to foreign companies
included in the bulletins of the Asso ciation of Manufacturers of Alcoholic Beverages.  According to the
provisions of the new Law, there were no tenders for issuing activity licences for importation of
alcoholic beverages or for engaging in domestic trade.  Activity licences for importation of alcoholic
beverages were accordingly now granted to all applican ts against payment of the stamp tax provided the
companies were registered in Lithuania, followed the regular procedures for obtaining a licence, and
submitted all documentation required under Lithuanian law.  The conditions for new entrants hadimproved as no credit was given for prior experience as  an importer.  In addition, the licences to engage
in importation, production, and wholesale and retail trade of alcohol - previously valid for one year only
- were now of unlimited duration.  Interested enterpri ses were required to renew their registration once a
year, but this was effected without any additional documentation.
36. The representative of Lithuania added that activity licences and licences for importation and
transit were granted automatically and on a non-discr iminatory basis,  except in the following cases:
(i) no activity licences were granted to foreigners for the organizing of lotteries;
(ii) applications for licences to import or transit coul d be rejected or subject to limitations regarding
activities related to strategic goods - production and importation was strictly controlled for
reasons of national security (according to COCOM requirements - see paragraph 69 for further
details) or environmental protection;
(iii) the right to manufacture products of ethyl alcoholic strength exceeding 22 per cent (by volume)
was reserved for enterprises owned by the State or  municipalities, or special enterprises;  and
(iv) the right to print money, postage stamps and mintage was reserved for State enterprises.
37. The representative of Lithuania said that the Government levied a stamp tax on a number of
services provided by its institutions (described  in the Section "Fees and Charges for Services
Rendered").  The Government also levied stamp taxes for the issuance of activity licences.  The annualstamp taxes for activity licences on alcohol and alcoholic beverages, tobacco and petroleum products are
listed in Table 4(a).  Tax rates had been established in accordance with Resolution No. 1123 of
11 November 1994, and were indexed to the rate of inflation.  The tax was related or limited to the
approximate cost of the services rendered and differ ed according to the nature of the licensed activity,
bearing in mind that activity licences to import al coholic beverages and petroleum products would also
cover wholesale of the products, and that importati on/wholesale licences also included a larger number
of products than wholesale licences for domestical ly-produced goods only.  Stamp taxes for activityWT/ACC/LTU/52
Page 10
licensing related to importation and wholesale incl uded an important fiscal element, and were also
important to encourage responsible importers and whol esalers who would be prep ared to follow customs
and tax procedures, and pay the required tariffs and taxes.  When granting the activity licence the
Government would specify the type of beverage to be imported by a particular enterprise, i.e. vodka,
vodka and other spirits, wine, etc., but not the value or volume.
38. A member welcomed the reduction of activity li censing as a method of regulation and revenue,
but was concerned that licences such as those to import alcohol and petroleum were being granted only
with a tax which did not apply to domestic producers or distributors.  The size of some of the fees were
not associated with the cost of the services rendered;   they rather served as revenue raisers and barriers
to entry, thus WTO rules on national treatment app lied in full.  The licensing fees on trade in oil
products were possibly a disguised tax on the importa tion of refined petroleum products.  He remained
concerned that the fees applied for certain import activity, e.g. in the areas of alcoholic beverages,tobacco products, and petroleum products were a disgui sed tax on that trade.  Lithuania would need to
change its system if it amounted to a tax on importation.
39. The representative of Lithuania replied that th e system had been changed through Government
Resolution No. 744 of June 1998 (as amended by Resolution No. 366 of 31 March 2000), and would be
further amended prior to accession to address remaining issues.  He confirmed that the new systemwould be in full compliance with WTO rules prior to  that time.  The new equalized stamp taxes for
engaging in importation and trade in alcoholic beverages had been applied since 1 May 2000.  Under the
new order, an activity licence, valid for one year , to import and engage in wholesale of imported
alcoholic beverages cost 80,000 litas (US$20,000); for beverages of alcohol strength less than 22 per
cent – 40,000 litas (US$10,000);  and beer only – 10,000 litas (US$2,500).   The same taxes would becharged for activity licences to enga ge in wholesale trade of alcohol  produced in Lithuania (see Tables
4(a) and 4(b) for a full list of these stamp taxes).  An activity licence to import alcoholic beverages also
covered wholesale of the products.  The importatio n/wholesale licence also included a larger number of
beverage brands (about 1,000) than a wholesale lic ence for domestically produced beverages (some 100-
150 products).  He confirmed that further am endments to Government Resolution No.1123 of
11 November 1994 "On the Approval of Stamp Tax Ta riffs and Procedure of Stamp Tax Payment and
Refunding" and Government Resolution No.559 of  5 June 1997 "On Licensing the Importation,
Wholesale and Retail Trade in Alcoholic Products" would be implemented to equalize the stamp taxes
for production, wholesale and importation activities fo r alcoholic beverages prior to Lithuania’s
accession to the WTO.
40. Stamp taxes for activity licence in importation/w holesale and wholesale of oil and oil products
as well as of motor oils had been equalized through Government Resolution No.366 of 31 March 2000.
An activity licence for importation/wholesale of oil and oil products cost 120,000 litas (US$30,000), and
the same stamp taxes were charged for wholesale in oil and oil products.  The stamp taxes for licences to
engage in importation/wholesale of motor oil amounted to 5,000 litas (US$1,250), and the stamp taxes
for wholesale of motor oil also cost 5,000 litas.  Th e new equalized stamp taxes had been applied since
1 May 2000.  The licence fee for importation of toba cco products - Llt. 15,000 per year - was equal to
the corresponding fee for wholesale trade in tobacco products according to Government
Resolution No. 180 of 13 February 1998.
41. The representative of Lithuania confirmed that the former State monopoly in foreign trade had
been abolished and that no restrictions existed on the right of foreign and domestic individuals and
enterprises registered in Lithuania to import and export goods within Lithua nia's customs territory,
except as provided in paragraph 36 and as provided for in WTO Agreements.  He confirmed that
individuals and firms were not restricted in their ability to import and export based on their registered
scope of business, and the criteria for registration we re generally applicable and published in the Official
Gazette.WT/ACC/LTU/52
Page 11
42. The representative of Lithuania confirmed that  Lithuania would ensure that its laws and
regulations relating to the right to trade in goods and all fees, charges or taxes levied on such rights were
in full conformity with its WTO obligations, including Articles VIII:1(a), XI:1, and III:2 and 4 of the
GATT 1994 and that it would also implement such laws and regulations in full conformity with these
obligations.  The Working Party took note of this commitment.
Market Access Negotiations
43. Lithuania engaged in market access negotiations on goods with interested Members.
Lithuania's Schedule of Concessi ons and Commitments on Goods is annexed to the Protocol of
Accession of Lithuania which is reproduc ed in the Appendix to this Report.
IMPORT REGULATION
Customs Code
44. The representative of Lithuania said that the Seimas had approved a Customs Code on
18 April 1996, replacing the Law on Customs of 29 Ap ril 1993 and certain provisions of the Law on
Customs Tariff and other legislation.  The Customs Code had entered into force on 1 January 1998.  The
Customs Code was based on the provisions of the Community Customs Code (Council Regulation
92/2913/EEC and its amendments), defining the responsibilities of government institutions involved in
the administration of customs and providing the framework for importation, exportation and goods in
transit.  The implementing provisions of the Code  were fully based on the Implementing Provisions of
the Community Customs Code (Commission Regula tion 93/2454/EEC and its amendments).  Among
the most important provisions were the Order of  Customs Valuation of Goods No. 748 of 9 June 1999
(described in the section "Customs Valuation"), and the Order of Determination of Origin of Goods and
on Certificates of Origin.
45. The representative of Lithuania confirmed that Lithuania's customs regulations would be fully
consistent with WTO provisions from the date of accession and that Lithuania's implementing
regulations and other legal requirements for implem entation would be in place by that date.  The
Working Party took note of this commitment.
Ordinary Customs Duties
46. The representative of Lithuania confirmed that  the Convention on the Harmonized System had
entered into force in Lithuania on 1 January 1995.  The structure of customs tariffs was regulated by the
new Law on Customs Tariffs, which had entered into force on 1 July 1998.  Tariff rates could be
changed by government decision based on proposals by Ministries, taking account of Lithuania's
international obligations and commitments.  Ta riffs had accordingly been reduced on major food
products (milk and dairy products, butter, eggs, sausages and sugar) in September 1995.  In accordance
with Government resolution No. 1245 of 20 Oct ober 1998, customs duties had been increased
temporarily on some agricultural and food products  (meat, milk, sugar, grain and grain products),
effective 1 November 1998.  The increase in duty rates was based on Government Resolution No. 1122
of 17 September 1998 "On provisional measures for the facilitation of export of Lithuanian goods,
protection of domestic market, strengthening the pos ition of Lithuania", which had been approved in
response to the financial crisis in Russia.  Goods we re subject to the autonomous rate of duty, except for
imports originating in countries enjoying most-favour ed-nation status in Lithua nia which were subject to
conventional import duties, and goods imported under free trade agreements.
47. Applied tariff rates were ad valorem  except for specific (mixed) duties on alcohol, tobacco, raw
sugar and fertilizers.  The specific elements of mixed duties on meat and dairy products had been
eliminated in February 1995.WT/ACC/LTU/52
Page 12
Other Duties and Charges
48. The representative of Lithuania confirmed that  Lithuania did not apply duties and charges on
imports other than ordinary customs duties.  Any such charges applied to imports after accession would
be in accordance with WTO provisions.  He furthe r confirmed that Lithuania would not list any other
charges in its goods schedule under Article II:1(b) of the GATT 1994, binding su ch charges at "zero".
Tariff Rate Quotas, Tariff Exemptions
49. Some members noted that Lithuania had used tariff quotas to provide for temporary import
relief for goods in short supply.  Lithuania was asked to specify the goods subject to tariff quotas and to
explain the operation of the quota system.  Lithuania should also provide a justification for the system,
some information on the portion of imported products affected, and outline plans for the disposition of
the system after Lithuania's accession to the WTO.
50. The representative of Lithuania replied that general tariff quotas could be opened for any
product considered to be in short supply.  Tariff quotas had been opened under Government
Resolution No. 653 (8 May 1995), implementing the La w on State Regulation of  Economic Relations in
Agriculture (22 December 1994), but the list of produ cts subject to general tariff-rate quotas had been
abolished by Government Resolution No. 793 of 30 June 1998.  He confirmed that imports from all
countries were afforded the same access under the general tariff-rate quotas.
51. In general, tariff rate quotas allowed imports at  zero (or reduced) tariffs.  Tariff rate quotas
could be granted only when domestic production of  a certain commodity or product, combined with
imports at the MFN tariff rate, would be insufficient to satisfy domestic demand or when certain
commodities or products were not produced in Lithuani a.  If such a shortage was deemed imminent in
Lithuania, the tariff quota amount would be determ ined and a public tender announced in the Official
Gazette.  Enterprises/importers requesting quotas or participation in tenders submitted application forms
to the responsible Ministry.  In most cases, tari ff rate quotas for the main agricultural products and
foodstuffs were auctioned to the highest bidder, and tariff quotas for some products (such as pure-
breeding animals and poultry, semen, boars, etc.) were  provided to applicants without restrictions.
Tariff rate quotas could also be distributed proportiona lly to the quantities requested to all applicants if
all met the requirements of the tender.  The same syst em applied to industrial products, but it had not yet
been used.
52. The representative of Lithuania said that the Mi nistry of Agriculture authorized imports of non-
bottled alcoholic beverages and raw materials for alcoholic beverages under general tariff-rate quotas
(30 per cent reduction of the tariff rate) opened in accordance with Government Resolution No. 672 of
27 May 1999.  Permission was granted automatically upon presentation of an application and a sales
contract, but only to companies holding activity licen ces for the production of alcoholic beverages, i.e.
to the authorized producers (not necessarily "State enterprises") which had obtained licences from the
State Tobacco and Alcohol Control Agency to impor t alcohol and produce alcoholic beverages.  Their
number was not limited, and new entrants could obt ain an activity licence against payment of the
corresponding fee.  Enterprises not licensed for th e production of alcoholic beverages could import such
raw materials at the MFN rate of duty.  The syst em had been introduced to fight illegal production of
counterfeit alcoholic products.  Tariff quotas for imports of ethyl alcohol for technical uses were granted
automatically to companies substantiating their needs.
53. A member requested the disposal, prior to acce ssion, of Lithuania's requirement to use domestic
sugar prior to allowing imports.  In reply, the re presentative of Lithuania said that Lithuania had
abolished the requirement to use domestic sugar prior to allowing imports.  The Law on Sugar (withrecently adopted amendments) regulated the sugar mark et in Lithuania.  The Law defined measures to
regulate the internal sugar market such as purch ase quotas and minimum purchase prices for local raw
sugar purchased under these quotas, and State control of sugar quality and certification.  In response toWT/ACC/LTU/52
Page 13
requests from WTO Members, Lithuania had decided to eliminate arrangements whereby sugar
processors’ imports of sugar under tariff quota had been made conditional on the purchase of specific
quantities of domestically-produced beet sugar, the exemption from the Law on Competition for the
union of sugar producers, minimum import prices , and import quotas.  These measures had been
terminated through the "Amendment and Supplement to the Law on Sugar" approved by Parliament on
8 July 1999.  He added that his Government determined the order and conditions for application of
measures defined under the Law on Sugar.  Measures  regulating the sugar market were import duty,
excise duty (on sugar and products containing more  than 20 per cent sugar, since 1 November 1998),
automatic import licensing, and minimum import pr ices (abolished on 1 April 2000).  Moreover, his
Government determined an annual production quota for white sugar used by sugar refineries, and
minimum purchase prices for sugar produced from beet purchased under these quotas.
54. A member noted that, in the market access ne gotiations, Lithuania had agreed to provide
guaranteed minimum quantities of access for a number of products, including sugar, through opening of
a tariff rate quota.  This commitment differed from the arrangements described above in paragraph 51.
This member asked for details of how this tariff quota would be allocated.
55. In reply, the representative of Lithuania said that tariff quotas included in Lithuania's schedule
of concessions and commitments on goods would be made available only for the importation of product
from MFN suppliers and would not be used to meet Lithuania’s preferential obligations under bilateral
or regional free trade agreements.  The Wo rking Party took note of this commitment.
56. The representative of Lithuania said that from the date of accession any application of general
tariff rate quotas such as those described in para graph 51 would be in accordance with the provisions of
Articles III and XIII of GATT 1994.  The Workin g Party took note of this commitment.
Fees and Charges for Services Rendered
57. The representative of Lithuania said that, in accordance with the Law on Stamp Tax of
23 June 1994 and rates established through Resolu tions No. 1123 of 11 November 1994 and No. 640 of
23 June 1997, stamp taxes (i.e. State fees and charges) were levied for the issuance of official documents
(such as licences) as well as for the provision of certain services by government institutions, includingcustoms clearance operations.  Stamp taxes were collect ed by the institutions responsible for issuing the
appropriate documents.  The State Tax Inspectorate of  the Ministry of Finance controlled how these
institutions collected the Stamp Taxes.  He stated that the Stamp Tax was set at different rates depending
on the nature of the product and the type of service provided.  Customs services fees amounted to 10-
110 Litas for the registration of goods and 25 Litas fo r the issuance of documents, including certificates
of origin.  The stamp taxes applicable for the pro cessing of imports by customs and for other purposes
related to trade are enumerated in Table 5.  He stated  that these fees and charges were related or limited
to the approximate cost of the services rendered.  Additional customs fees were assessed for
supplementary services such as customs formalities performed outside the Customs office or outside its
normal business hours, for the supply of non-confidentia l information from the database of the Customs
Department, etc.  At the request of a member seek ing clarification whether taxes on trade activities were
collected by Lithuania's consulates abroad, in pa rticular whether formalization of export or import
documents was required at consulates prior to shipme nt, he also provided info rmation on consular fees,
underlining that these fees were not related to importation, exportation or transit issues.  He also
confirmed that formalization of export or import doc uments was not required at  Lithuania's consulates
abroad.
58. A member asked whether the list of stamp taxes in Table 5 was comprehensive, and noted that
while some of these fees were not large, many of them did not seem related to any service other than
generating revenue, e.g. fees of 2,000 to 6,000 Litas on imports for commercial sale of colour copiers
and guns did not seem related to the cost of cust oms operations.  These "fees" appeared to be taxes
applied to imports and should be adjusted to ensure their conformity with Article VIII of the GATT.  InWT/ACC/LTU/52
Page 14
reply, the representative of Lithuania said that the list of stamp taxes provided in Table 5 covered the
fees and charges for services rendered relating to importation and exportation, and the list was
comprehensive.  He added that revenues generated by stamp tax fees were remitted to the general
revenues in the State budget, and that Lithuania coul d not supply specific data on whether the stamp tax
revenues collected were in line with the cost of cu stoms operations covered by the fees since neither the
Customs Department nor any other institution had perfo rmed such calculations.  He also added, that all
those fees and charges for services rendered (includi ng special rates for colour copy machines and guns,
etc.) will be limited to the approximate cost of serv ices rendered and brought into full conformity with
Article VIII of the GATT pr ior to Lithuania's accession.
59. The representative of Lithuania confirmed that  Lithuania would ensure that any fees and
charges for services rendered listed in Table 5 or  introduced in the future would only be applied in
conformity with the relevant obligations of GATT 1994, and from the date of accession any application
of fees and charges by Lithuania for services  rendered on or in connection with importation or
exportation would be in accordance with the relevant provisions of the WTO Agreements, in particular
Articles VIII and X of GATT 1994.  After accession, information regarding the application and level of
any such fees, revenues collected and their use, w ould be provided to WTO Members upon request.  The
Working Party took note of these commitments.
Application of Internal Taxes to Imports
60. Some members of the Working Party asked L ithuania to enumerate the products subject to
excise taxes, comment on the use of specific rates and confirm whether imported and domestic products
were treated equally.  In reply, the representative of Lithuania provided the information on product-
specific excise taxes reproduced in Table 6.  Rates were ad valorem , in some cases specific minima had
been established (in Litas per unit).  Lithuani a had no plans to convert specific amounts into ad valorem
rates since large price differentials existed between domestic and imported goods.  On domestic
products, excise taxes were levied on the selling price exclusive of VAT;  the tax base for imports was
the customs value inclusive of customs duties.
61. Some members noted that excise taxes on beer and wine were differentiated and that imported
cigarettes attracted the highest excise tax rate, while taxes on domestically-produced cigarettes were
differentiated according to quality.  A member requested Lithuania to (i) explain exactly what it would
do concerning the preferential tax on small breweries;   (ii) confirm that the differential treatment of
tobacco excise taxes for "Philip Morris Lietuva" a nd "House of Prince Lietuva" (Table 6, footnote) had
expired and that all tobacco products were taxed equall y;  (iii) explain the exemption for a jet fuel joint
venture;  and (iv) explai n why meads were taxed at a rate different from other distilled spirits, reminding
Lithuania that a preferential tax rate for a domestic product was not consistent with GATT Article III.
62. The representative of Lithuania replied that excise taxes had been differentiated (based on
quality) for cigarettes and certain domestically-produced and imported wine and beer until April 1998.
Lithuania had taken concrete steps to bring its exci se taxes into conformity with GATT Article III, as
follows:  Imported wine was no longer taxed at differentiated rates, and differentiated excise taxes had
been abolished for both imported and domestically -produced filter-tipped cigarettes according to
Government Resolution No. 393 of 3 April 1998.  Addressi ng the specific points, he said that (i) a lower
rate of excise tax was applied to small producers of beer.  As from 1 January 2000 and in accordance
with the Amendment to the Law on Excise Taxes of 23 December 1999, a partial exemption of excise
tax (i.e. a 50 per cent reduction) was granted for the first 100,000 dekalitres of beer produced by small
producers with annual production of less than 800,000 dekalitres.  The lower tax rate was also applicable
to foreign small producers of beer.  He considered that this measure, while not fully consistent with
GATT Article III, would pr ovide more equitable treatment for imports pending further amendments to
the Law on Excise Taxes to bring it into conformity with WTO provisions;  (ii) "Philip Morris Lietuva"
was at present the only importer of tobacco (H S 2403.10.90.1.) for the production of cigarettes.  The
"House of Prince Lietuva" did not produce cigarettes and therefore did not benefit from the exemption.WT/ACC/LTU/52
Page 15
However, according to the Law any new entrant w ould benefit from the same exemption for the
importation of tobacco to be used for the production of cigarettes which, in his view, justified such
differential treatment of tobacco;  (iii) as from 1 April 2000 (under the Amendment to the Law on
Excise Taxes of 17 February 2000), excise tax was not levied on any enterprise (domestic or foreign)
having a licence to supply jet fuel (HS code 2710.00.51.0) to enterprises transporting passengers orcargo in international air traffic; and (iv) th e excise tax exemption for beverages (HS code 2206.00.89.0)
produced by "Lietuviškas midus" had been elimin ated in accordance with Government Resolution
No.1515 of 30 December 1998 and the Amendment to the Law on Excise Taxes No.VIII-982 of
21 December 1998.  Concerning the excise tax differen tiation between mead and other distilled spirits,
he stressed that products under HS Code 2208.90.69.1 incl uded mead of foreign origin, and Lithuania's
treatment was therefore, in his view, consistent with GATT Article III.  The different taxation of mead
beverages (domestic or foreign) from other bevera ges was due to the costs of the special production
technology of mead beverages, i.e. the raw mate rials used in such production (the most important
ingredient of these beverages being mead) were 10- 12 times more expensive than the spirit raw material
used in the production of other alcohol beverages.  Thus, prices of mead-based alcohol beverages were
much higher than prices of other alcohol beverages.  However, the representative of Lithuania said that,
as excise tax differentiation for mead beverages from other distilled spirit beverages was not fullyconsistent with GATT Article III, this tax would be equalized and brought into full conformity with
WTO provisions within five years.
63. The representative of Lithuania added that sugar and products containing more than 20 percent
sugar had become subject to excise as from 1 November 1998.  Revenue from this excise tax was
earmarked for farmers growing sugar beet.  Purchase prices for domestically-grown sugar beet had beenreduced to world market levels (i.e. the price did not exceed US$300 per ton), and to compensate
farmers for the income loss, excise tax had been introduced on sugar and sugar containing products at
the rate of Llt 1 per kg sugar.  The tax was levied on domestically-produced and imported products.  The
list of sugar containing products (included in Table 6), and their basic sugar content, had been approved
by the Ministry of Agriculture.  The revenue co llected from the excise was accumulated in a special
account for farmers' compensation;  subsidies for sugar processors were not foreseen.  There were no
exemptions from excise tax for any supplier of suga r.  VAT and excise tax on exported sugar and sugar
containing products were  refunded upon exportation.
64. Some members of the Working Party asked about the application of value added tax in
Lithuania, including the basis for taxation of impor ted products.  A member asked for a clarification on
the treatment of imported like-products in the lig ht of Article III of the GATT 1994, noting that
Lithuania had applied a reduced rate of VAT to some agricultural products of domestic origin.
65. The representative of Lithuania said that value added tax of 18 per cent was charged on goods
and services.  Goods imported into bonded warehouses and all exports were zero rated, and a number of
goods and services were exempt from VAT (Table 7).  Provisions regarding VAT had been changed in
1995 and 1996;  a temporary rate of 9 per cent and exemptions from VAT for some products had been
applied until 1 January 1997.  Since that date, both domestic and imported products had been subject to18 per cent value added tax.  The tax base for the imposition of VAT included excise taxes, if any, and
customs duties on imported products.
66. The representative of Lithuania stated that, from the date of accession, Lithuania would, with
two exceptions, apply its domestic taxes on products, including those listed in paragraphs 62 to 65 and
Tables 6 and 7 in strict compliance with Article III of the GATT 1994, in a non-discriminatory mannerto imports regardless of country of origin and to domestically-produced goods.  Lithuania's excise taxes
applied to imported and domestic beer from whatever si ze brewery, and the excise tax differentiation for
mead beverages relative to other distilled alcoholic beverages, would be equalized or otherwise brought
into conformity with Article III of the GATT by  31 December 2005.  He added that Lithuania would
report annually to WTO Members on the status of legi slation concerning the taxation of beer and mead
during this period.  The Working Party took note of these commitments.WT/ACC/LTU/52
Page 16
Quantitative Import Restrictions, including Prohibitions, Quotas and Licensing Systems
67. A member sought an undertaking from Lithua nia that any quantitative import restrictions
inconsistent with Article XI of the GATT 1994 would be eliminated on accession.  This member also
noted a ban on imports of alcoholic beverages with more than 50 per cent alcohol content, although one
such beverage (mead) was produced domestically by a State-trading enterprise, and stated that this
practice was not justifiable under Article XX of the GATT.  Lithuania was accordingly asked how it
intended to address this issue.
68. The representative of Lithuania stated that Lit huania did not maintain import prohibitions other
than a ban on the import of snuff and chewin g tobacco (HS 2403.99.10.0), which was administered in
conjunction with a ban on domestic production of th e same products which would be justified under
Article XX(b) of the GATT 1994.  A ban on the importa tion of mead and other beverages with alcohol
content of more than 50 per cent had been abolished in accordance with the Law on Amendments andSupplements on Alcohol Control of  10 December 1998.  Lithuania did not maintain any import quotas.
The Law on Alcohol Control authorized the intr oduction of production and import quotas for certain
alcohol products should the number of patients su ffering from alcoholic psychosis exceed levels
established by the Ministry of Health.  However,  these provisions had not been applied thus far.
69. Information on import licensing procedures ac cording to the format  applicable to WTO
Members was provided to the Working Pa rty in documents WT/ACC/LTU/7/Add.1 and
WT/ACC/LTU/19 (the section "Tra ding Rights" and Tables 3.1 and 3.2 contain information on
licensing of business activities).  The representative of  Lithuania stated that Lithuania did not maintain
any import licensing restrictions ot her than for the following goods:
- narcotics and other controlled substances  (HS codes 1211;  1301;  1302;  2905;  2918;  2921;
2922;  2924;  2925;  2926;  2932;  2933;   2934;  2939;  2914.30.10;  2924.29.50;  2932.90.75;
2932.90.77;  2939.40.10;  2939.40.30;  2939.60.10;  2939.60.30;  2939.60.50;  2939.90.71)   -
justified under Article XX(b);
- dual use goods (civil and military), means of defence, chemical and biological materials which
can be used in the production of chemical a nd bacteriological weapons of mass destruction;
nuclear missiles, equipment and technologies;   and goods and technologies used in the
production of missiles - justified under Article XXI;
- dangerous goods (United Nations list of goods - justified under Article XXI);
- used tyres (HS 4012.20.90) and electric fishing tackle (HS 8543.80.80.0) - justified under
Article XX for reasons of environmental prot ection.  The criteria for granting permission to
import used tyres were based on the importer presenting evidence to the authorities that he had
contracted the delivery of the equivalent of half the quantity to be imported to a company
specializing in the processing or utilization of used tyres and that he possessed storage facilities
for tyres.  The importer should also own equipmen t for restoration of used tyres, and he should
have permission from the authorities to use national resources.
Common requirements for the issuance of import licences  were:  the application;  the certificate of
enterprise registration;  the statutes of the enterpri se;  a tax inspection certificate confirming all income
declared and taxes paid;  a certificate from the Customs Office regarding compliance with customs
obligations;  confirmation of payment of Stamp taxes;  and, in the case of rental, the lease contract for
storage or warehouse premises.  The representative of  Lithuania said that, seeking to fully meet the
provisions of WTO Agreement on Import Licensi ng Procedures (i.e. that no more than one
administrative body must be approached to obtain the import licence and, where strictly indispensable,
no more than three administrative bodies), Lithua nia would simplify the licensing requirements forWT/ACC/LTU/52
Page 17
imports.  The pending amendments of relevant le gal acts would be adopted prior to Lithuania’s
accession to the WTO.
70. In response to a question from one member  concerning licensing requirements for
pharmaceutical products, the representative of Lithuani a said that only registration (not a licence) was
required for pharmaceutical products before being sold in Lithuania.  However, licences were needed to
engage in pharmaceutical business activity (as indicated in Tables 3.1 and 3.2 and in the detailed
description in Table 4(b).  The common requireme nts for issuance of each type of license are
enumerated in Table 4(b), as indicated in para graph 69.  In addition, the State Medicines Control
Agency issued a certificate establishing complian ce concerning the adequacy of the premises and
equipment for pharmaceutical activity and of th e qualifications of the pharmacists and pharmacy
technicians.  The representative of Lithuania adde d that enterprises having pharmaceuticals wholesale or
manufacturing licences automatically had the righ t to import pharmaceuticals, except in the case of
importation of narcotic and psychotropic drugs a nd substances, for which importation required a
separate licence.  The representative of Lithuania also  added that the fees listed in the Table 4(b) were
charged for each type of license (enumerated in  Table 4(b)) each time an enterprise engaged in
pharmaceutical business activity had its licence issue or re-registered with the relevant State institution.
Licenses for pharmaceutical business activities were valid indefinitely, but had to be re-registered every10 years for medicine and medicine materials, and every 5 years for narcotic and psychotropic
substances.
71. The representative of Lithuania confirmed that  Lithuania would, from the date of accession,
eliminate and would not introduce, reintroduce or a pply quantitative restrictions on imports or other
non-tariff measures such as quotas, bans, perm its, prior authorization requirements, licensing
requirements and other restrictions having equivalent  effect that cannot be justified under the provisions
of the WTO Agreement.  He added that import licen ces required for importation described in paragraphs
68 to 70 of this report and in document WT/ACC/LT U/19 would be granted in conformity with WTO
provisions. He further confirmed that the legal aut hority of the Government of Lithuania to suspend
imports or exports or to apply licensing requirement s that could be used to suspend, ban or otherwise
restrict the quantity of trade would be applied from the date of accession in conformity with the
requirements of the WTO, in particular Articles III, XI, XII, XIII, XIX, XX and XXI of the GATT 1994,
and the Multilateral Trade Agreements on Agriculture , the Application of Sanitary and Phytosanitary
Measures, Import Licensing Procedur es, Safeguards, Technical Barriers to Trade and the Understanding
on Balance-of-Payments Provisions of the GA TT 1994.  The Working Party took note of these
commitments.
Customs Valuation
72. Noting a statement by Lithuania that existing legi slation did not yet incorporate all provisions of
the GATT 1994 Customs Valuation Agreement, Lithua nia was requested to explain which provisions
were missing and detail plans for the introduction of these provisions.  Some members further noted that
Government Resolutions No. 751 of 25 June 1996  and No. 895 of 7 August 1997 appeared to authorize
reference prices on imports.
73. The representative of Lithuania said that prov isions governing customs valuation were laid
down in Chapter 6 of the Customs Code, which ha d entered into force on 1 January 1998.  Articles 29-
37 of the Code repeated verbatim key provisi ons on customs valuation of the GATT 1994 Agreement,
and other elements of the GATT 1994 Agreement, excep t some of the Interpretative Notes in Annex I of
the Agreement, had been incorporated in the implem enting provisions of the Customs Code laid down in
the Order of Customs Valuation of Goods, adopted by Government  Resolution No. 748 of 9 June 1999,
which had entered into force on 1 April 2000.  Articl es 29-37 of the Customs Code and its implementing
legislation contained WTO-conform provisions in several areas which had been missing in previous
legislation governing customs valuation, includin g on prohibited valuation methods, notification to
importers, confidentiality, the valuation of carri er media bearing software for data processingWT/ACC/LTU/52
Page 18
equipment, and valuation of interest charges.  The Interpretative Notes of the GATT 1994 Agreement,
which have the same mandatory character as the text of the Agreement itself and which were earlier
omitted from the above-mentioned legislation had been included in the new Order of Customs Valuation
of Goods, adopted by Government Resolution N o. 748, and in the Methodology of Application of
Certain Provisions of Pr ocedure on Customs Valuation, approved by the Order of Customs Department
of 25 September 2000.  The conformity of Lithuania’ s current provisions with the WTO Agreement on
Customs Valuation on an article by article basis is set out in Table 8.
74. Some members noted that Lithuania had been a pplying a "price-in-checking" system which, in
their view, did not conform to th e hierarchy of valuation methods provided for in the Agreement.
Lithuania was urged to use WTO-consistent provisi ons to assess valuation of imports;  the "price-in-
checking" system should not be in place after Lithuania's accession to the WTO.  In reply, the
representative of Lithuania confirmed that Go vernment Resolution No. 751 of 25 June 1996 (as
amended) on "Customs Assessment of Prices fo r Imported Goods" had allowed minimum import prices
and also established a special price list ("price-in-c hecking" system) for some specific goods.  However,
these measures were no longer valid as from 1 April 2000, and the expected amendments to
Resolution No. 748 made it clear that the "comparative prices" referred to in the Resolution could not,
under any circumstances, be used as the value for customs purposes of imports.  The current customsvaluation system of Lithuania was therefore, in his view, in full conformity with WTO requirements.
75. Having reviewed the new Customs Code with respect to customs valuation, a member noted
that its provisions did not seem to represen t full implementation of the WTO Agreement on the
Implementation of Article VII of the GATT 1994.  Ar ticle 29 appeared to permit customs valuation
based on measures inconsistent with the Agreement, the Interpretative Notes of the Agreement were not
fully incorporated, Articles 2 to 6 of the WTO Agreem ent were implemented on an incomplete basis, the
Code contained no legal reference to the provisions of  Article 7.3 of the Agreement (importers' right to a
written explanation of alternative valuation methods), the wording of Article 33 of the Customs Code
regarding the dutiability of royalty payments was somewhat broader than the WTO Agreement,
Article 35 of the Customs Code did not commit Lithua nia to valuation of software based on the value of
the media, and the Customs Code contained no le gal counterparts to WTO provisions regarding
confidentiality, right of appeal, and the right to a written explanation.
76. The representative of Lithuania replied that the concern regarding Article 29 of the Customs
Code was a misunderstanding arising from a translation error;  the Article was to be used in all cases
when import duties and other import taxes, or va lue-based import prohibitions (for products such as
snuff and chewing tobacco and nuclear materials) or restrictions (i.e. licensing or certification
procedures), were applied.  Existing implementing pr ovisions of the Customs Code, laid down in the
Order of Customs Valuation of Goods (Governmen t Resolution No. 748 of 9 June 1999), incorporated
the provisions of Articles 2 to 6 of the WTO Agreement, which had been missing in Article 31 of the
Customs Code, as well as the definitions set forth in paragraphs 1 to 3 and in paragraph 5 of Article 15
of the Agreement, and the provisions concerning va luation of software based on the value of the carrier
media.  Lithuania had accordingly implemented Decision 4.1 of the Customs Valuation Committee
concerning the valuation of carrier media bear ing software for data processing equipment.
77. The Order of Customs Valuation of Goods, based on the appropriate provisions of the Code and
incorporating all (except the few examples of the a bove mentioned Interpretative Notes, which had been
incorporated into the Methodology of Application of Certain Provisions of Procedure on Customs
Valuation No. 395 of 25 September 2000) of the a bove-mentioned provisions had been adopted by
Government Resolution No. 748 of 9 June 1999.  Th is Order was based on the Implementing Provisions
of the Community Customs Code (Commission Regu lation 93/2454/EEC) and had entered into force on
1 April 2000.  The Order included the provisions of  the Interpretative Notes of GATT 1994 Agreement
which had not been incorporated in Lithuania's legi slation previously.  A co mparison of the new Order
with the provisions of the Customs Valuation Agreem ent, on an article-by-article basis, is presented in
Table 8.WT/ACC/LTU/52
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78. Regarding the right to written explanation and appeal, he said that Article 5 of the Customs
Code covered requests of importers concerning expl anation of alternative valuation methods.  Customs
was required to respond in writing to written requests.   In case of rulings against the applicant, this
information would also set out the grounds on whic h Customs had based its decision.  The right of
appeal was provided for in Article 226 of the Custom s Code.  Article 7 of the Code of Administrative
Infringements states that a person cannot be penalized for administrative offence unless explicitly
provided for in law, and this ensures that someone  invoking the right of appeal under the Customs Code
and Resolution No. 748, as amended, c ould not be penalized.  As noted in Table 8 the Law on the Order
of Publishing and Entry into Force of Legal Ac ts of 6 April 1993 (as amended in May 1999) provides
for publication of legal acts as required by the Ag reement.  He acknowledged that the Customs Code
contained broader wording regarding the dutiability of royalty payments than the WTO Agreement, but
noted that the wording of paragraph 1(3) of Arti cle 33 of the Customs Code had been taken from the
Interpretative Note to paragraph 1( c) of Article 8 of the Agreement.
79. The representative of Lithuania stated that the system of import reference prices, including
those applied to sugar, grain and products thereof,  poultry, forage products, leguminous vegetables, oil
and products thereof, matches and corrugated sheets, as well as the system of "price-in-checking", had
been eliminated on 1 April 2000, and that such measures would not be reintroduced except in
accordance with WTO Agreements.  He added that "comparative prices" will never be applied as the
customs value of imports.  The Working Party took note of these commitments.
80. The representative of Lithuania confirmed that as from the date of its accession Lithuania would
not use any form of reference price of fixed values to establish the value of imports and exports for
customs purposes.  He also stated that from the date of its accession Lithuania's customs valuation
legislation and practice would be in full conform ity with the relevant WTO provisions, including
Article VII of GATT 1994 and the Agreement on Implem entation of Article VII without any transition
period.  The Working Party took note of this commitment.
Rules of Origin
81. The representative of Lithuania said that Lithuania followed the work of the World Customs
Organization and the WTO regarding a harmonization programme for non-preferential rules of origin.
In the meantime, Lithuania was taking into acc ount and implementing the results of the WTO
negotiations to maintain a transparent system for non-p referential rules of origin ;  to administer these
rules of origin in a consistent uniform, impartial and reasonable manner;  and to base these rules of
origin on a positive standard.  According to Chapter 5 of the Customs Code and Government Resolution
No. 1077 of 1 October 1997 "On the Order of Determ ination of Non-Preferential Origin of Goods",
which was based on the Implementing Provisions  of the Community Customs Code (Commission
Regulation 93/2454/EEC), goods originat ed in a country if wholly obtained or produced in that country
or, if more than one country was involved, where the raw materials or components underwent
substantial, economically justified processing or working.  Processing or working was considered
substantial if resulting in a change in four-digit HS tariff heading for the new product, in other cases also
when the value of materials or components which di d not have country origin status formed not more
than 50 per cent of the costs of value as well as for goods having undergone specific processing methods
as indicated in Government Resolution No. 1077.  Thes e criteria applied in respect of goods originating
in countries enjoying most-favoured-nation status in  Lithuania.  Imports from these countries satisfying
the origin criteria would be subject to conventiona l (i.e. MFN) tariff rates, otherwise the (normally
higher) autonomous tariff rates would apply.
82. He added that Chapter 5 of the Customs Code, which had entered into force on 1 January 1998,
provided the framework for the application of non-pref erential rules of origin which, in his view, were
WTO-consistent.  Those provisions stated, inter  alia, that the originating status of a particular good was
either the country where the good had been wholly  obtained or, when more than one country was
concerned in its production, the country where the last  substantial transformation had been carried out.WT/ACC/LTU/52
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According to the Law on Customs Tariff, which had entered into force on 1 July 1998 and replaced the
old Law, the country from which goods were importe d into Lithuania was defined according to the
regulations of the Customs Code and international agreements.
83. A member reviewed the information provided  by Lithuania and was not convinced that
Lithuania's rules of origin system met the proce dural obligations in the WTO Agreement on Rules of
Origin.  Specifically, regarding preferential rules of origin, Lithuania was asked to confirm that
administrative determinations of general application for preferential rules of origin were issued; that
when issuing administrative determinations of general application, the method for calculating the
ad valorem  percentage criterion would be indicated in the preferential rules of origin;  that assessments
of the preferential origin accorded to a good were issued as soon as possible, but no later than 150 days
after a request for such an assessment by an exporte r, importer, or any person with a justifiable cause;
and that any administrative actions taken in relati on to the determination of preferential origin was
reviewable promptly by judicial, arbitral or admini strative tribunals or proce dures, independent of the
authority issuing the determination.  Lithuania was also asked to clarify the role of "independent
experts" in the determination of rules of origin.
84. The representative of Lithuania replied that preferential rules of origin, which formed an
integral part of all free trade agreements concluded by Lithuania and enjoying the status of law, were
applied in accordance with the im plementing regulations of the Customs Department (currently the
Order of Application of Preferential Duties of 4 July  1997).  All free trade agreements in force had been
published in the Official Gazette .  The method for calculating the ad valorem  percentage was indicated
in the preferential rules of origin, and Lithuania applied it in the same manner as the EU; EFTA States
and CEFTA countries.  Pursuant to Government Resolution No. 774 of 16 October 1992, all complaints,
requests or suggestions of exporters, importers or any other person, including requests concerning
assessments of preferential origin, were to be  considered within one month. The Customs Code
contained similar provisions on the examination of requests; where request for a decision was made in
writing the decision should be made within 8 working days, unless laws and other legal acts provided
another term, and a decision requiring additional in formation should be made within thirty working
days.  Exceptionally, the customs authorities could exceed the stipulated period by up to 10 working
days.  The applicant would be informed in writin g of the decision or the extension of the period
necessary for the examination of the request.  Acco rding to the Customs Code, legal and natural persons
had the right to appeal against all decisions taken by customs authorities including the determination of
preferential origin to the Customs Department and/or to the Court.
85. Concerning the "independent experts", the represen tative of Lithuania said that this expression
referred to private individuals or entities, li censed by the Customs Department, examining goods
produced in Lithuania or exported from Lithuania,  including verification of  prices and preliminary
assessment of preferential origin.  The assessment procedure for goods produced in Lithuania had been
established by the Ministry of Industry and Tr ade and Customs Department on 26 March 1993.  Such
examination was not obligatory for exporting compan ies; they could present documents proving the
origin of goods or their own motivated conclusions.  The experts were required to pass a test at the
Customs Department once a year;  ten "independent experts" had been certified for 2000.  The experts
were normally employees of companies carrying out  such examinations, i.e. "Beckmann&Jorgensen
kontrole" (Klaipeda), the Joint Stock Company Ltd. "S iauliu prekiu ekspertize" (Siauliai), the Joint
Stock Company "Impeksservis" (Vilnius), "Kauno pr ekiu ekspertize" (Kaunas), and the Vilnius
Chamber of Commerce, Industry and Crafts.  Most of  these enterprises were members of the Lithuanian
Association of the Goods’ Examinati on Enterprises.  According to th e procedure for assigning experts
approved pursuant to the Statute of this Associat ion, the experts were prohibited from disseminating
confidential information.  The procedure for assigning experts was based on the rules of the German
Chamber of Commerce.  Customs was not bound by ex aminations performed by "independent experts"
– whose functions were of auxiliar y or purely technical nature - and in issuing documents on preferential
origin of goods these examinations would be verifi ed once more.  The final decision and the approval of
certificates of origin of goods were taken by Cust oms or the Chamber of Commerce.  He stressed thatWT/ACC/LTU/52
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the "independent experts" did not evaluate whether or not imported goods fulfilled the requirements of
preferential rules.  The only function performed by the experts in respect of rules of origin was a
preliminary assessment as to whether goods destined for export fulfilled the requirements of preferential
rules of origin in force.  Payment for the work pe rformed by the experts was calculated case-by-case and
was approximate to the cost of the service rendered.
86. The representative of Lithuania confirmed that from the date of accession Lithuania's laws and
regulations on rules of origin for both MFN and pref erential trade would be applied in conformity with
the provisions of the WTO Agreement on Rules of Orig in, including the provisions of Annex II.  In this
regard, the requirements of Article 2(h) and Annex II, paragraph 3(d), i.e., that for non-preferential and
preferential rules of origin, respectively, its cu stoms authority will provide upon the request of an
exporter, importer or any person with a justifiable cau se an assessment of the origin of the import and
outline the terms under which it will be provided.  A ccording to the provisions of the WTO Agreement
on Rules of Origin specified above, any request fo r such an assessment would be accepted even before
trade in the goods concerned began, and any such a ssessment would be binding for three years.  The
Working Party took note of this commitment.
Other Customs Formalities
87. Customs procedures had been streamlined for imports and exports of small consignments and
frequent traders.  The Customs Code contained a ppropriate provisions regarding the application of
simplified procedures.  Further work on simplificat ion of existing customs procedures included the
creation of a Customs Information System ba sed on the ASYCUDA package of UNCTAD and the
establishment of audit units at regional customs houses.  These steps should reduce delays in customs
clearance of goods at the border.
Pre-Shipment Inspection
88. The representative of Lithuania said that Lithua nia did not engage private sector firms to carry
out pre-shipment inspection.  In case such a system  would be introduced in the future, it would be
temporary and consistent with the provisions a nd requirements of the WTO, in particular the
Agreements on Preshipment Insp ection and Customs Valuation.
Anti-Dumping, Countervailing Duties and Safeguard Regimes
89. Some members of the Working Party requested information about the status of legislation
related to anti-dumping, countervailing duties and safeguard measures and its conformity with WTO
disciplines.  Lithuania was asked to provide an upda te on its intent and the development of legislation.
A member reminded Lithuania that in the absence of the required legislati on, Lithuania would not be
able to avail itself of the temporary protecti on mechanisms provided for in the relevant WTO
Agreements.
90. The representative of Lithuania replied that Lithuania had approved a Law on Antidumping,
which followed fully the requirements of the WTO regarding anti-dumping, on 23 June 1998.  The Law
had entered into force on 1 July 1998, and implementing regulations concerning the determination of
normal value, export price, dumping margin, domes tic industry and injury, and the procedure for spot
investigation had also been approved.  Lithuania had adopted the Law on Countervailing Duties, and the
Law on Safeguards, on 23 May 2000.
91. The representative of Lithuania said that any legislation in place at the time of accession or
implemented in the future providin g for the application of measures taken for safeguard, anti-dumping
or countervailing duty purposes would conform to  the provisions of the WTO Agreements on
Safeguards, on Anti-dumping and on Subsidies and C ountervailing Measures.  In the absence of such
legislative authority in place at the time of accession, Lithuania would not apply measures for safeguard,WT/ACC/LTU/52
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anti-dumping or countervailing duty purposes until legisla tion in conformity with the provisions of these
WTO Agreements had been implemented.  The Working Party took note of this commitment.
EXPORT REGULATIONS
Customs Tariffs, Fees and Charges for Services Re ndered, Application of Internal Taxes to Exports
92. The representative of Lithuania said that export duties ranging from 15 to 50 per cent had been
imposed temporarily on certain raw materials of im portance to the local industry.  All these export
duties had been abolished in October 1994 by Government Resolution No. 985.  Effective 1 July 1996,
all export prohibitions of interest to the domestic i ndustry had been lifted and replaced by export duties
of 60 per cent, applied on an MFN basis, throug h Government Resolution No. 268 of 24 March 1997.
In accordance with an amendment to Government Resolution No. 268 of 4 January 2000, all export
duties had been eliminated, except for raw hides and skins, effective 10 January 2000.  The export duties
on raw hides and skins had been reduced from 30 to 15 per cent.  The products currently subject toexport duties are listed in Table 9.1.  Export duties applied on a bilateral basis also affected only raw
hides and skins, and were applied in accordance with the same amendment and at the same rate
(Table 9.2, and discussed in further detail in the section "Trade Agreements").  All export duties,
including those based on bilateral agreements, would be eliminated by 1 January 2001.  The
representative of Lithuania confirmed that any chan ges in the export tariff regime would be published in
the Official Gazette.
93. Exported goods (other than raw hides and skin s) were exempt from customs duties and VAT.
Lithuania maintained some customs fees on exportati on as part of the application of the Stamp Tax.
These fees were related or limited to the approximate cost of the services rendered.  The fees and
charges are enumerated in Table 5.  The new Customs Code, which had entered into force on
1 January 1998, provided a framework for the implementation of a duty drawback system in its
Section 6 pertaining to inward processing.  Article 125 of Section  6 allowed the holder of an
authorization (generally the importer) to request th e Government of Lithuania to repay an import duty
when the authorization holder could prove that the imported good had been exported as part of a
compensation product (a product incorporating the g ood originally imported).  The refunded duty was
limited to the amount of import duties paid for th e originally imported products included in the
compensating product, and thus did not constitute a subsidy to the exporter.
94. A member stated that Lithuania should eliminat e the difference in the application of its export
tariffs, and should commit that after accession, it woul d minimize the use of such taxes and that they
would be applied in accordance with the provisions  of the WTO Agreement.  The representative of
Lithuania said that use of export taxes would be co nsistent with WTO norms.  Any such taxes at the
time of accession would be in the Working Party re port.  After accession, any subsequent use of such
measures would be published in the Offi cial Gazette and notified to the WTO.
Export Restrictions
95. The representative of Lithuania said that all previous export bans had been abolished by
Government Resolution No. 716 (of 18 June 1996) a nd replaced by export duties (Tables 9.1 and 9.2).
Non-automatic licences or permits were required for exports of objects of cultural value (including rawmaterials of amber), wild animals (including their eggs, furs and stuffed animals), hunting and fishing
trophies, products made from non-worked wild animals or  their parts, objects of geological value, and
colour copy machines.  Licences were also require d to engage in exportation of narcotics and highly
effective substances (non-automatic), the purchase for sale of ferrous and non-ferrous waste and scrap
(automatic), and oil products (automatic).  Lithua nia maintained no special requirements for export of
ferrous or non-ferrous metals and its alloys of scrap and waste.  Enterprises seeking a licence to
purchase ferrous and non-ferrous metals and its alloys of scrap and waste could sell these goods
domestically or for export to other countries wit hout additional requirement s.  The Law concerningWT/ACC/LTU/52
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Control of Import, Transit and Export of Strategi c Goods and Technologies, entering into force on
1 July 1997, stipulated licensing by the Ministry  of National Economy for exports of dual use goods,
technologies and software.  As a temporary m easure in 1995, continued through 1996, the Government
had maintained certain export restrictions during pe riods of short supply of grain, flour and compound
feed.  In the future, export quotas on agricultural pr oducts would only be temporary measures applied in
emergency situations and, as from accession, in conformity with GATT 1994 obligations.
96. Some members asked Lithuania to provide the WT O justification for export licences.  In reply,
the representative of Lithuania said that automatic  licensing for export of oil products was maintained
for monitoring purposes, and that the licences for dual use products served to check and identify the use
of the product at the foreign destination.  Permits  for export of wild anim als, hunting and fishing
trophies, products made from wild animals or their parts were required for the purpose of plant and
animal protection;  export permits for colour c opy machines sought to prevent illegal printing of
counterfeit documents;  and permits for export of object s of geological and cultural value were, in his
view, justified on the basis of GATT Article XX.
97. The representative of Lithuania said that from the date of accession export restrictions would
only be imposed in conformity with the provisions  of Article XI of the GATT 1994.  The Working Party
took note of this commitment.
Export Subsidies
98. The representative of Lithuania said that Li thuania did not maintain any non-agricultural
export subsidies, but he provided information on export promotion measures .  His Government had
adopted a Resolution "On Actions Improving Fore ign Trade Regulation and Export Development" in
January 1995.  The Resolution covered drafting of  legislation, export pr omotion and funding,
management of trade-related information and educati on and training of export specialists.  Lithuania had
also adopted a National Programme of Implementati on of Lithuanian Foreign Trade Policy Guidelines
for 1996-1998.  The programme included implementation of an export programme set up by the
Lithuanian Development Agency and the establishm ent of an Export Promotion Fund and "Insurance of
Lithuanian Export and Import"  (LEID), in December 1997.
99. He added that five export promotion institutions  were functioning in Lithuania, i.e. the
Lithuanian Development Agency (LDA), the Insura nce of Lithuanian Export and Import (LEID), the
Export Promotion Fund, the Lithuani an Agricultural International Trade Agency (LAITA) and the
Lithuanian Agricultural Products and Foodstuff Market Regulation Agency (LAPFMRA).  The
Lithuanian Development Agency (LDA), establis hed in accordance with Government Resolution
No.432 of 8 May 1997, performed a very important role in export promotion.  The objective of the LDA
was to provide comprehensive information on invest ment opportunities, conditi ons and procedures and
to promote exports of Lithuanian goods and de mand for Lithuanian services.  The LDA had been
established on the basis of two agencies, i.e. the Lithuanian Export Promotion Agency (established at
the end of 1995) and the Lithuanian Investment Ag ency (established at the end of 1993).  The LDA’s
main functions were to facilitate business partnerships  and assist in contracts with Lithuanian authorities
and business organizations;  to analyze and provide information to Lithuanian exporters and service
providers on foreign market conditions;  to establish Lithuania's trade representation offices abroad;  to
prepare, implement and monitor trade development programmes to ensure their consistency with WTO
rules;  to study issues affecting trade activiti es and formulate recommendations to Lithuanian
authorities;  to consult State, public and private institutions on foreign trade issues;  and to provide
education and training to the foreign trade community in Lithuania.
100. LEID, which was minimum 51 per cent government-owned, insured bank loans related to
production and export of goods and services.  Responding to demands from the lending banks,
companies concluded insurance contracts and paid the required premium to LEID.  The Government
had allocated Llt 27.6 million for the formation of the initial capital, reserves, etc., and had issued StateWT/ACC/LTU/52
Page 24
guarantees for insurance contract s amounting to Llt 50 million.  The Government had the right to cover
LEID losses related to the insurance of political risk .  He stated that LEID activities were based on the
principles of the Bern Arrangement and recomme ndations of the OECD.  The Business Development
Council supervised LEID activities, decisions to assu me losses of the LEID for insured political risks,
etc.  In addition, the Council decided on the financing of other export support measures, such as training,
co-financing of exhibitions and fairs, preparation of prospects and catalogues, co-financed introduction
of international standards and quality systems, et c.  Some Llt 9 million had been allocated for such
purposes in 1998, and about Llt 15.9 million in 1999.
101. The purpose of the Export Promotion Fund, established in December 1997, was to accumulate
the State budget allocations designed to finance the export promotion measures, to increase LEID’s
(Insurance of Lithuanian Export and Import) capital or to execute undertaken guarantee obligations of
the State with regard to companies which concluded insurance contracts.  The Lithuanian Agricultural
International Trade Agency (LAITA) had been launche d in April 1997 by the Ministry of Agriculture to
strengthen export promotion activities in Lithuania with the aim to assist the food and agriculture
industry to improve the competitive position of Lithua nian produce in local and global markets.  The
State Enterprise Lithuanian Agricultural Pr oducts and Foodstuff Market Regulation Agency
(LAPFMRA), founded in May 1998, was responsible for the execution of Lithuania's agricultural
products and foodstuff market regulation and export s timulation program, for the purchase and sale of
agricultural products and surplus foodstuff production; etc.  Lithuania had notif ied LAPFMRA as a State
trading enterprise on 17 March 1999 (document WT/ACC/LTU/31).
102. The representative of Lithuania said that Lit huania would not maintain, and from the date of
accession would not introduce, subsidies which met th e definition of a prohibited subsidy within the
meaning of Article 3 of the Agreement on Subsidie s and Countervailing Measures and would therefore
not seek a transitional period for the elimination of such measures.  The Working Party took note of this
commitment.
INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS
Industrial Policy, including Subsidies
103. The representative of Lithuania expected that  more time would be required to restructure
Lithuania's industrial sector.  The policy was to give pr iority to strategic restruct uring, i.e. encourage the
development of new products, entry into new markets,  the creation of international companies, quality
improvement, reducing production costs and restruct uring of pre-privatization large-scale entities.
Industries targeted for development included food and beverages;  light industry;  wood processing and
furniture;  construction materials;  machinery;  electr onics and electrical engineering;  chemicals and oil
processing;  and pharmaceuticals.  Potentially co mpetitive enterprises had been identified through
indicators such as current exports, labour productivity and size of investments.  The Government had
rejected applications for direct subsidies and other forms of financial support, giving more attention to
general measures to improve the economic and legal environment.  The Government paid due attention
to the support of scientific research, introduction of  innovations, environmental protection, assistance to
newly established enterprises and the promotion of their establishment.  Other State support measures
were related to credit insurance, promotion of small and medium sized enterprises and quality
improvement, the implementation of Small and Medium Business Development and other programs.
Government agencies also played a role in seeking foreign partners for Lithuanian enterprises, and in
channeling foreign technical assistance in strategic planning, company restructuring or in improving
management skills to the recipients.  Local authorities had the right to grant direct tax deductions for the
development of small and medium sized enterprises, or direct tax exemptions for limited periods, in
which case the local authorities were required to co mpensate the State budget for the shortfall in tax
revenue.  Certain subsidies were also provided to  the State enterprises "Lietuvos Pastas" (Lithuanian
Post), "Lietuvos Gelezinkeliai" (Lithuanian Railway s) and to the State Agency for Inland Transport.WT/ACC/LTU/52
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Lithuania did not provide any other assistance to the i ndustrial sector (other than tariff protection as laid
down in the national customs tariff).
104. The representative of Lithuania confirmed that Lithuania did not maintain subsidies, including
export subsidies, which met the definition of a prohibi ted subsidy within the meaning of Article 3 of the
Agreement on Subsidies and Countervailing Measures, and that it would not introduce such prohibited
subsidies in the future.  The representative of Lit huania confirmed that any subsidy programs would be
administered in line with the Agreement on Subs idies and Countervailing Measures and that all
necessary information on programs to be notified, if such exist, would be provided to the Committee on
Subsidies and Countervailing Measures in accordan ce with Article 25 of the Agreement upon entry into
force of Lithuania’s Protocol of Accession.  The Working Party took note of this commitment.
Technical Barriers to Trade, Standards and certification
105. The representative of Lithuania explained that Lithuania was in a process of transition where
mandatory (GOST) standards established under the former USSR system were replaced by a new
system of voluntary standards and mandatory techni cal regulations.  The Lithuanian Standards Board
had performed functions relating to standardization, metrology, conformity assessment and quality
assurance until 1 January 1998, when the Board had been reorganized (Government Resolution No.105)
in three State institutions under the Ministry of Public Administration Reforms and Local Authorities,
i.e. the Lithuanian Standards Board, the State Metr ology Service and the National Accreditation Bureau.
The Lithuanian Standards Board had membership st atus within various international and European
standardization organizations to facilitate adop tion of international and European standards as
Lithuanian standards.  The Lithuanian Standards Bo ard had been an affiliate member of the European
Committee for Electrotechnical Standardization (C ENELEC) since 1997, an affiliate member of the
European Committee for Standardization (C EN) since 1993, a member of the European
Telecommunication Standards Institute (ETSI) sin ce 1996, a correspondent member of the International
Organization for Standardization (ISO) since 1992, a nd an associated member of the International
Electrotechnical Commission (IEC) since 1996.  The State Metrology Service had been a correspondent
member of the Organization for Legal Metrolo gy (OIML) since 1994.  The functions of national
accreditation body were fulfilled by the National Accr editation Bureau in Lithuania.  The Bureau was
responsible for accreditation of testing, calibration laboratories, certification bodies for products, quality
systems and personnel, as well as for inspection bodies.  The Bureau had been full member of the
European cooperation for Accreditation (EA) since J une 1999.  Lithuania had concentrated its resources
toward implementation of a long-term programme for the adoption of international and European
standards as Lithuanian standards, covering appr oximately 800 international and European standards.
By April 2000, adopted European and international standards as Lithuanian standards comprised 66.5
per cent of all Lithuanian standards.  Accordin g to the Law on Standardization, adopted on 11 April
2000, the status of the Lithuanian Standards Board had been changed from a governmental institution to
a non-profit association.  The Lithuanian Standards Board followed the principles of international and
European standardization.  Lithuanian standards were drafted in technical committees with the
participation of manufacturers, cons umers and representatives of Stat e institutions on a voluntary and
equal basis.  The technical committees had been esta blished according to the so-called "mirror principle"
in relation to the technical committees of internati onal and European standardization organizations.  A
national technical committee would nevertheless follow and take active part in the activities  of several
corresponding technical committees of inte rnational and European organizations.
106. A member noted that some of the legislati on critical to the development of Lithuania's
standards regime was still in preparation and expect ed Lithuania to adopt all necessary legislation to
implement fully all obligations under the Agreement on Technical Barriers to Trade prior to the date of
accession.
107. The representative of Lithuania said that all wo rk required to bring technical regulations into
conformity with the WTO Agreement on TBT had been completed.  A Law on Metrology had beenWT/ACC/LTU/52
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adopted in July 1996.  A Law on Standardization, which defined the organizational framework for
standardization, including the basic principles, f unctional requirements and main resources, had been
adopted on 11 April 2000.  The Law on Conformity Assessment had been approved in October 1998.
The Law defined the main principles of the confor mity assessment system covering mandatory and
voluntary sectors, and the structure of the sy stem, including accreditation, testing, certification,
inspection and suppliers' declarati on.  A Law on Products' Safety had been adopted on 1 June 1999.  The
Law determined the general requirements for product safety, the basis for imposition of technical
regulations, and the general principles for the functi oning of a market surveillance system.  Lithuania
had established the TBT Enquiry Point at the Lit huanian Standards Board in November 1996.  The
Enquiry Point, inter alia, fulfilled the function of enquiry point in conformity with the WTO Agreement
on TBT and would also provide notifications.  Rule s governing the exchange of information between
Ministries involved in standards issues and the enquiry point, including the notification requirements,
had been approved by the Government on 20 Ma y 1999, in which Lithuania had also introduced
provisions allowing foreigners to comment on technical regulations not consistent with international
norms.  Information on draft standards in Lithuania was published in the official bulletin of the
Lithuanian Standards Board.  Basic rules of procedure for technical wo rk relating to the preparation and
adoption of international and European standards as Lithuanian standards and the Code of Good
Practice, as required under Annex 3 of the TBT Ag reement, had been approved on 22 February 1999.
The representative of Lithuania provided a detailed checklist of on TBT requirements and compliance
by Lithuania in document WT/ACC/LTU/41.
108. Lithuania's system of conformity assessment, notably the certification activities, was based on
normative documents prepared according to ISO/IEC guidelines, mainly ISO/IEC Guides 22 and 28,and the Supplier's Declaration of Conformity.  Do mestic and imported goods were treated equally.
Lithuanian certification bodies could recognize certif icates issued by foreign bodies in accordance with
the relevant procedures, i.e. analysis of the doc uments presented, identification of the product, and
technical expertise of fulfilment of the design of the product.  Lithuanian product certification bodies
recognized certificates of conformity issued by foreign countries' product certification bodies accredited
by accreditation bodies which were signatories of th e EA (European co-operation for Accreditation) or
IAF (International Accreditation Forum) multilateral recognition agreements, or by accredited
certification bodies of countries with which Lithua nia had signed bilateral recognition agreements,
provided these certification bodies participated in international certification schemes.  Lithuanian
certification bodies had been established for mandato ry certification of electrical appliances (the
Certification Centre of Electro technical Production in Vilnius) , for general-purpose electronic
equipment (the State Medical a nd Electronic Equipment Centre of Certification "SERTIKA" in
Kaunas), for construction materials (the State enterp rise Certification Centre of Building Products in
Vilnius), and for information technology products (the  State Certification Body "Infostruktura").  The
four certification bodies based their work on Gove rnment Resolution No. 474 of 22 June 1992, Order
No. 160/114 of 29 June 1995 of the Mi nistry of Industry and Trade a nd Lithuania's Standards Board,
Government Resolution No. 593 of 12 June 1997, a nd Government Resolution No. 687 of 26 June 1997.
109. Foreign certificates for imported oil products  needed to correspond to mandatory quality
indicators approved by the Ministry of  Economy.  Government Resolution No. 883
(29 November 1993) On the Approval  of Traffic Rules established technical inspection requirements for
imported vehicles.  All pharmaceutical products require d registration before being sold in Lithuania.
Some other non-food items were subject to veri fication requirements under Government Resolution
No. 53/89 of 31 August 1994.  Marking regulations had been established by Order No. 42/25/107 of
23 February 1995.  For other technical requ irements see document WT/ACC/LTU/7/Add.1.
110. Conformity assessment procedures were established by legal acts of responsible government
institutions.  The Law on Conformity Assessment did not contain specific guidelines for testing
laboratories, certification bodies, inspection bodies and accreditation bodies, but indicated that
participants in the conformity assessment system  should meet the requirements of international and
relevant European documents and other related regulations.  The Law permitted Lithuania to recognizeWT/ACC/LTU/52
Page 27
product test reports and issue certificates of conformity in accordance with procedures established by the
relevant international agreements.  Lithuania ha d signed agreements on mutual recognition of test
reports and certificates of conformity with Pola nd, Slovakia, Bulgaria, Belarus, Russia and Ukraine;
agreements with the Czech Republic and Romania were under negotiation.  Cooperation agreements on
accreditation between the corresponding institutions of Lithuania, Latvia and Estonia had also beensigned.  As indicated in paragraph 108, Lithuani a had established procedures for recognition of
certificates of conformity of foreign countries for products subject to mandatory certification, i.e.
electrical appliances, general-purpose electronic e quipment, construction materials, information
technology products, etc.  Certifi cates of conformity were not re quired for products not subject to
mandatory certification.  Lithuania recognized certif icates for measuring instruments issued by the
International Organization for Legal Metrology (OIML) .  The representative of Lithuania stressed that
no relationship existed between the certificati on process and import licensing requirements.
111. In response to a question from one member, the representative of Lithuania stated that a
supplement to the "Procedures for Information Exch ange within the Field of Standards, Technical
Regulations and Conformity Assessment Procedures" was in preparation and would be enacted in the
relevant Government Resolution prior to Lithuania’s accession to the WTO.  Point 5 of this supplement
provided that Lithuania’s Standardization Departme nt and other State institutions would ensure, from
the date of accession, that the standards, technical  regulations and conformity assessment procedures
applied to products imported from WTO Member countries would be applied no less favorably than to
the products of Lithuanian producers or to products imported from any other third country.
112. The representative of Lithuania stated that Lithuania would ensure that its technical
regulations, standards, certification and labelling requirements were not applied to imports in anarbitrary manner, in a way that discriminates between supplier countries where the same conditions
apply, or as a disguised restriction on international tr ade.  He added that Lithuanian legal acts relating to
technical measures applicable to trade regulated domestically and foreign made products uniformly, and
did not give rise to any discrimi nation between producers or suppliers.
113. The representative of Lithuania stated that, upon accession to the WTO, Lithuania would
comply with all the provisions of the Agreement on Technical Barriers to Trade without recourse to any
transitional arrangements.  The Working Party took note of this commitment.
Sanitary and Phytosanitary Measures
114. The representative of Lithuania said that all wo rk required to bring Lithuania's regulations into
conformity with the Agreement on the Application of Sanitary and Phytosanitary Measures had been
completed.  He added that Lithuania had renewed its  membership in the Organisation International des
Epizooties (OIE) in 1992, and joined the Codex A limentarius Commission in 1992 and the European
and Mediterranean Plant Protection Organizati on (EPPO) in 1998.  Lithuania had ratified the
International Plant Protection Convention (IPPC) in November 1999.  Lithuania based its SPS measures
on international standards and guidelines established by these organizations to the greatest extent
possible.  For the purpose of transparency, hi s Government had adopted Resolution No. 118 of
4 February 1999 "on publishing of dr aft laws and of other legal acts on the Internet" which made all
legal acts subject to public notice to enable the submission of remarks and suggestions by those
concerned, including on draft SPS legislation.  He provided information on specific Lithuanian
requirements pertaining to seeds, fertilizers, pestic ides, animal and plant health, feeds, plant breeders'
rights, fruit and berries, food additives and contaminants, packaging and labelling standards, and
inspections of meat, dairy products, eggs and egg products.  The requirements for items intended to be
imported were the following:
- Seeds - presentation of phytosanitary certifi cate issued by the State Plant Protection
Service of the exporter country and a seed quality certificate issued by the responsible
authority of the exporting country;WT/ACC/LTU/52
Page 28
- Fertilizer - suppliers' declaration of conformity (or quality certificate), and products
needed to be identical to information stated on their label;
- Pesticides - product permitted to use in Lithuania and included in the national positive
list of pesticides prior to importation (in the sense of SPS requirements, fertilizers and
pesticides could be evaluated only as contaminants for quantity reasons);
- Plants and plant products – presentation of phy tosanitary certificate issued by the State
Plant Protection Authority of the exporter c ountry and import permit issued by the State
Plant Protection Serv ice of Lithuania;
- Plant breeders' rights - presentation of phytosa nitary certificate issued by the State Plant
Protection Service of the exporter country;
- Foodstuff of vegetable origin (processed fruit, berries, vegetables, etc.) and foodstuff
of combined origin (margarine, mayonnaise, etc.) - presentation of suppliers'declaration of conformity (according to EN 45014) of the exporter country;  sanitary
inspection of these products provided by customs within Lithuania;
- Foodstuff of animal origin (meat, dairy, poultry, fish products) and foodstuff of
combined origin with a large amount (more than 20 per cent) of components of
animal origin - presentation of veterinary certificate of the exporter country;veterinary inspection of these products provided at the border;
- Food additives and their mixtures - items needed to be included in the national
register of food additives - suppliers' declaration of conformity (specification of
purity levels) of the exporter country;  for food additives as a component of a
foodstuff - obligatory compliance with the food additives requirements established inLithuanian Hygiene Norm HN 53-1998;
- Contaminants - chemical and microbiological  contamination levels of foodstuffs not to
exceed the maximum limits established in Lithuanian Hygiene Norms HN 54-1998 and
HN 26-1998;
- Packaging - requirements laid down in Lit huanian Hygiene Norm HN 77-1998;  and
- Labelling - all requirements harmonized to Codex Alimentarius provisions;  labelling
should be in Lithuanian language.
Further information regarding veterinary matters was provided to the Working Party in a note entitled
"Veterinary Requirements of the Republic of Lithuania".
115. The representative of Lithuania provided info rmation on Lithuania's progress in implementing
the provisions of the WTO Agreement on Sanita ry and Phytosanitary Measures in document
WT/ACC/LTU/22 of 14 May 1998 a nd WT/ACC/LTU/22/Add.1 of 17 March 1999.  The submission
listed the institutions responsible for application of SPS measures;  relevant legislation pertaining to
foodstuffs and food safety, non-processed agricultural commodities and animal health, and plant health;
and outlined plans for recognizing equivalence of SPS regulations of exporting countries and
implementation of transparency provisions.  He also provided a checklist of SPS requirements and
compliance by Lithuania in document WT/ACC/LTU/43.
116. Imported foodstuffs were required to pass thr ough border crossing points manned to perform
foodstuff controls.  The Ministry of Health Care ha d approved a list of foodstuffs subject to quality
control, thus requiring phytosanitary, veterinary or health and safety certificates on importation.
Products included in the list are enumerated in  Table 10.  Lithuania required veterinary and
phytosanitary certificates for processed foodstuffs  only to ensure that imported products fulfilled
appropriate veterinary and phytosanitary requirements (such as animal health and public health
attestations).
117. In response to a request from a member for an explanation as to why processed foodstuffs
required a veterinary or phytosanitary permit, as these are consumer-ready products, the representative
of Lithuania said that certificates were required for certain foodstuffs in accordance with international
rules as some processing methods (e.g. sm oking of meat) did not eradicate bacteria.WT/ACC/LTU/52
Page 29
118. A member inquired about the relationship between foodstuff certification and import
licensing.  The representative of Lithuania replied that at present the Government approved a list of
products and foodstuff subject to control on importation.  Foodstuff subject to veterinary or
phytosanitary import control in Lithuania (Table 10) ;  veterinary certificates required for all raw and
processed products of animal origin (Table 11(a)), and all unprocessed products of plant origin subject
to phytosanitary certification (Table 11(b)) required certification of each consignment.  The issuance of
certificates was coordinated between the State Veteri nary Service and the State Plant Protection Service
at the Ministry of Agriculture.  For products subject  to veterinary inspection (Tables 10 and 11(a)), the
importer should apply for an import permit to the State Veterinary Service stating details concerning the
product, its origin, the exporting country and the border crossing point.  An import permit would be
issued without delay provided the epizootic situ ation in the exporting country was propitious.  A
suppliers' conformity declaration would suffice for co nsumer products and other foodstuff (all processed
products of non-animal origin) not subject to veteri nary or phytosanitary certification.  Exporters' own
declaration would suffice for fertilizer.  Products not  specifically listed were not subject to certification
or suppliers' declaration.  He added that Govern ment Resolution No. 1132 "O n the Approval of the
Order on Import of Foodstuffs and Their Control of  Harmless and Quality" of 8 October 1999 (which
had replaced the corresponding Order of 9 October 1997) regulated the system for the importation of
foodstuff.  The State Veterinary Service and the Nutr ition Centre in the Ministry of Health Care had
prepared a register of foodstuff importers, which had entered into force on 1 July 1998.  The register
improved the surveillance and control of importers  and guaranteed importation of safe products only.
119. A member pointed out that Article 5 of the WTO Agreement on SPS required Lithuania to
carry out risk assessment.  A member expected Lithuania to establish its SPS enquiry point and adopt allnecessary legislation to implement fully all obligations under the Agreement on SPS by the date of
accession to the WTO.
120. The representative of Lithuania replied that Lithuania’s legal and institutional structure had
been adjusted to comply with the requirements of WTO Agreement on SPS.  The Law on Food had
been approved on 4 April 2000.  He added that a syst em of risk assessment for food had been introduced
in several steps during the period 1994-2000 with the approval of six major laws - the Law on Health
System, the Law Products Safety, the Law on Food, the Law on Health Care Institutions, the Law on
Phytosanitary and the Law (with its Amendmen ts) on Veterinary Activities.  The laws gave
responsibility for the implementation of the risk a ssessment mechanism to the National Nutrition Center
at the Ministry of Health, the State Hygiene Inspector ate, the State Veterinary Service and to the State
Plant Protection Service.  The La w on Products Safety determined the general requirements for products
safety, the basis for the imposition of SPS regulations, and the general principles for the operation of amarket surveillance system.  Further supplementin g provisions on risk assessment based on the SPS
Agreement had been approved by Parliament on 7 October 1999 with the Amendment and Supplement
to the Law on Veterinary Activities.  The Law on Phytosanitary, approved on 16 December 1999,
established general compulsory phytosanitary requirements consistent with the SPS Agreement, the
basis of phytosanitary control for the physical and legal entities, and measures for the prevention of
importation and dissemination of harmful organisms.   The Law on Food finalized the mechanism for
risk assessment of food.  With this step, Lit huania had completed the harmonization of its SPS
legislation and brought it into full compliance with WTO requirements.
121. As for transparency, Lithuania published promptly all adopted sanitary and phytosanitary
regulations in the Official Gazette.  Lithuania had established the SPS Enquiry point, which would alsocarry out the notifications of the Agreement, at th e Ministry of Agriculture.  Three institutions – the
National Nutrition Center at the Ministry of Healt h, the State Plant Protection Service and the State
Veterinary Service – would provide information to  the SPS Enquiry Point for distribution according to
the requirements of the Agreement.  The SPS Enquiry Point would be responsible for responding to all
relevant questions of WTO members and supply appropriate documentation on (i) any proposed or
adopted SPS regulation;  (ii) procedures for determination of risk and the corresponding level of SPS
protection;  and (iii) Lithuanian participation and the nature of its commitments arising fromWT/ACC/LTU/52
Page 30
international and regional sanitary and phytosanitary organizations and systems, and bilateral or
multilateral agreements and arrangements within the scope of the SPS Agreement, including the texts of
such agreements and arrangements.
122. The representative of Lithuania stated that, upon accession to the WTO, Lithuania would
apply all its sanitary and phytosanitary requirement s consistently with the requirements of the WTO,
including the Agreements on the Application of Sanitary and Phytosanitary Measures and Import
Licensing Procedures, without recour se to any transitional arrangements.  The Working Party took note
of this commitment.
Trade-Related Investment Measures
123. The representative of Lithuania said that his Government had reviewed carefully the
provisions of the WTO Agreement on Trade-Rela ted Investment Measures (TRIMs), including its
Annex and had concluded that Lit huania did not maintain any measures inconsistent with the TRIMs
Agreement.  His Government applied the princi ple of national treatment and did not resort to
performance requirements which could affect trade.   Lithuania was ready to implement fully the
provisions of the WTO TRIMs Agreement upon acce ssion without exception or transitional periods.
124. The representative of Lithuania confirmed that Lithuania would not invoke the provisions of
the TRIMs Agreement that provide for the progressive  elimination of measures inconsistent with the
TRIMs Agreement within a fixed period of time as it did not maintain any such measures and would not
introduce any such measures in the future.  Th e Working Party took note of this commitment.
State-Trading Entities
125. The representative of Lithuania said that the Law on Trade, adopted in January 1995,
authorized the establishment of State monopolies in any sector in emergency situations (war, natural
calamities, etc.) and to protect health and safety.  He considered such measures consistent with the
provisions of the GATT 1994.  Exclusive rights existe d for State enterprises, or special enterprises in
which the State held all or the majority of the shar es, regarding trade in radioactive and nuclear material
and waste.  He added that the joint-stock company "Lietuvos energija" operated as a natural monopoly
in the production, input, tran smission and distribution of energy.  However, the privatization process of
"Lietuvos energija" had begun in 1997 and the Seimas had approved the reorganization of this company
into 16 thermal supplier companies in April 1997.  "L ietuvos energija" had been further reorganized in
July 1998, and, as a result, 44 independent thermal suppliers were currently operating in Lithuania.  The
thermal sector was undergoing further reorganizati on with a view to attract potential investors.
Lithuania maintained no regulatory barriers to entry,  thus any entity could apply for a license for the
generation, transmission, distributi on and sale of thermal energy.
126. A member understood that Lithuania used licence s to allow commerce to a certain point, and
stated that Lithuania should notify firms under Ar ticle XVII of the GATT 1994 in areas where business
licences were rationed arbitrarily or acted as quantit ative restrictions.  Current programmes were clearly
WTO-inconsistent, whether or not they qualified unde r Article XVII.  In particular, Lithuania's system
of activity licensing appeared to restrict trade in  alcoholic beverages in a manner conflicting with the
provisions of Article XI and Article XVII of the GATT 1994.  The Government seemed to play a
controlling role in the selection and limitation of fi rms engaging in trade in these products, in effect
creating State-trading enterprises.  A distribution monopoly maintained by the State could also distort
import prices.  It was noted that the company "Lietuviškas Midus" held monopoly rights on the
production of high-alcohol beverage and even if "Lietuviskas Midus" was notified as a State trading
enterprise, an import ban would still be problematic vis-à-vis GATT Articles III and XI.  Lithuania wasasked to provide the criteria upon which the licensing system for alcoholic beverages was based and
explain how Lithuania's restrictive import sy stem could be consistent with WTO rules.WT/ACC/LTU/52
Page 31
127. In reply, the representative of Lithuania sa id that the Law on Amendments and Supplements
of the Law on Enterprises of 25 September 1997 stipulated that two activities - the production of
products with ethyl alcoholic strength exceeding 22 per cent, and the printing of money, coins and
postage stamps - could only be undertaken by ente rprises owned by the State or municipalities, or
special enterprises licensed to do so.  Although the Law on Trade had established the legal basis forintroducing a State monopoly on alcohol  products in cases of force majeure (war, famine and natural
disasters), the present situation did not qualify as force majeure.  Instead, his Government had
established a State Tobacco and Alcohol Control Agency on 12 July 1996 in accordance with the Law
on Health System and the Law on Alcohol Control.  The Agen cy did not operate a production
monopoly;  its main functions were to formulat e and implement State policy in cooperation with
Ministries and other governmental institutions with  a view to discouraging consumption and reducing its
harmful effects on the population.  The Agency its elf did not engage in production or trade, but
performed various trade-related administrative and m onitoring tasks, including the issuance of activity
licences, monitoring of adherence to legal requireme nts, establishment of additional marking procedures
for alcoholic beverages, etc.
128. The representative of Lithuania reassured the Working Party that the State did not maintain
any form of distribution monopoly with respect to alc ohol, nor did it play a "controlling role".  As far as
the number of activity licenses granted for trade in alcoholic beverages was concerned, the Law on
Amendment and Supplement to the Law on Alcohol Control of 8 April 1997 had (i) eliminated all
restrictions on the number of activity licenses to import alcoholic beverages;  and (ii) eliminated an
earlier requirement which had restricted the choice of  importers' foreign partners to companies listed in
the bulletins of the Association of Manufacturers of Alcoholic Beverages.  He recalled that GovernmentResolution No. 366 of 31 March 2000 had completed th e alignment of the rules governing trade in
alcohol with the requirements of GATT 1994 by equa lising the stamp taxes on such licensing for both
the importation and the wholesale of alcohol and al coholic beverages.  A member did not agree that
Lithuania had resolved all problems of WTO-incons istency in this area.  In particular, the current
exemption for domestic firms producing alcoho lic beverages from the stamp tax on wholesale
distribution clearly favoured the production monopoly in the cost of distribution of its products vis-a-vis
imports, which were distributed by firms required to pay the wholesale distribution stamp tax.  The
representative of Lithuania indicated that amendments  to current law would eliminate this inconsistency
prior to Lithuania’s accession.
129. Concerning the company "Lietuviškas Midus", the representative of Lithuania confirmed this
company did indeed have exclusive rights.  Lithuania had submitted a notification (document
WT/ACC/LTU/35 of 4 June 1999) on the company's excl usive right to manufacture products with ethyl
alcohol strength exceeding 22 per cent and on its exclusive right to produce beverages with high alcohol
content.  "Lietuviškas Midus" was a cooperative c onsumers' enterprise producing mead in accordance
with patented ancient recipes which Lithuania considered  to be part of its national heritage.  Thus, due to
the fact that the enterprise followed ancient trad itions of manufacture and was the only enterprise in
Lithuania which manufactured national beverages, th e Government had granted "Lietuviškas Midus" the
right to manufacture one traditional alcoholic bevera ge, and this until the year 2001.  The State did not
provide the company with privileges or subsidies, except for a lower excise tax rate on mead than on
other distilled alcoholic beverages sold in Lithua nia, and the company had no obligations towards the
State.  The company could import inputs for the production of mead without restrictions.
130. Addressing the specific concerns raised about the import ban on mead, the representative of
Lithuania confirmed that this ban was no long er in place.  The Law on Alcohol Control of
10 December 1998 had removed fully the earlier import ban on mead and other alcoholic beverages with
an alcohol content of more than 50 per cent.  The re presentative of Lithuania considered that Lithuania
had thus taken a number of steps to bring its alcohol regime in general, and the regime specific to the
production of mead, into conformity with the GATT 1994, and would continue these efforts as provided
for in paragraph 66 of this report.WT/ACC/LTU/52
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131. Lithuania had also notified the Lithuanian  Agricultural Products and Foodstuff Market
Regulation Agency (LAPFMRA) as State trading enterprise (document WT/ACC/LTU/31 of 17 March
1999).  The enterprise had been founded in May 1998, and was responsible for the execution of
Lithuania's agricultural products and foodstuff market  regulation and export stimulation program, and
for the purchase and sale of agricultural products and surplus foodstuff production.
132. Referring to arrangements in the sugar pro cessing sector regarding an exemption from
provisions in the Law on Competition governing domi nant firms, and the distribution of tariff-rate
quotas, some members noted that this would appear  to be a special righ t within the meaning of
Article XVII.  Moreover, if a refiners association had any rôle in import policy, or protected access to
sugar imports on a preferential basis, this should  be indicated by Lithuania, and justified under
appropriate WTO agreements and provisions , e.g. GATT, the Agreement on Import Licensing
Procedures and the Agreement on Agriculture.
133. The representative of Lithuania replied that his Government had not approved any special
rights for sugar producers.  The sugar manufacturer s' association had been exempt from the Law on
Competition under previous legislation, but these prov isions, as well as the minimum import price and
tariff quota arrangements, had been eliminated in  accordance with the Amendment of the Law on Sugar
of 8 July 1999.
134. The representative of Lithuania stated that his Government had identified the following
entities as State trading companies:  special State enterprises "Stumbras", "V ilniaus degtine", "Anyksciu
vynas", and "Alita";  the closed-stock company "L ietuviškas Midus" – all of them producing alcoholic
beverages with strength greater more than 22 per cent - and the Lithuanian Agricultural Products and
Foodstuff Market Regulation Agency (LAPFMRA).  His Government had identified the trading
activities of the entities listed above as subject to the provisions of Article XVII of the GATT 1994, and
was prepared to notify these firms as State tradin g enterprises within the meaning of Article XVII upon
accession.
135. The representative of Lithuania confirmed that  his Government would apply its laws and
regulations governing the trading activities of State- owned enterprises and other enterprises with special
or exclusive privileges and would otherwise act in full conformity with the provisions of the WTO
Agreement, in particular Article XVII of the GATT 1994 and the Understanding on that Article and
Article VIII of the GATS, and Article III and XI  of the GATT 1994.  The Working Party took note of
this commitment.
Free Zones, Special Economic Areas
136. The representative of Lithuania said that a Law on Free Economic Zones had been adopted in
June 1995.  Each zone would be established by separate law.  Certain activities would be prohibited infree zones, including production, storage and sale of weapons, ammunition, explosives, dangerous and
radioactive materials, narcotics and poisonous substanc es;  manufacture of spirits, securities, money and
postage stamps;  radio and television broadcasting;  hospitals;  gambling houses;  and organization of
lotteries.  Licences would be required to carry out activities subject to authorization (see "Trading
Rights") within Lithuania.  Enterprises operating in a free zone would be exempt from customs duties,
excise taxes and VAT, but would be subject to profit  tax, payroll taxes (including social insurance), tax
on land rent, stamp tax, taxes on natural resource s and pollution tax (amendment of Law on Free
Economic Zones of 2 April 1996).  An enterprise established in the zone would benefit from an
80 per cent profit (income) tax reduction from the day of its registration for the first five years and a
50 per cent profit (income) tax reduction for the subsequent five years.  If a foreign investor acquired atleast 30 per cent of the authorized (ownership) capital of an enterpri se registered and operating in the
zone, and invested not less than US$1 million of cap ital of foreign origin, the enterprise would be
exempt from profit (income) tax for 5 years from th e day of its registration.  The enterprise would
benefit from a 50 per cent profit (income) tax reduction for the subsequent 10 years.WT/ACC/LTU/52
Page 33
137. Thus far, Parliament had adopted separate laws for the establishment of free economic zones
in three cities - Siauliai, Klaipeda and Kaunas.  In this connection, the Government had organized
tenders to select the company or group of companies to govern the zone, and a subsequent tender to
determine the companies operating in the zone.  Both  foreign and domestic companies could participate
in these tenders, provided they prepared an entrep reneurship project, including estimates of proposed
investment in the infrastructure of the zone.  In ternational tenders had already taken place for the
preparation of business plans, statute of the zone s and choice of establishing groups for the Kaunas,
Siauliai and Klaipeda free economic zones.  The Ka unas, Siauliai and Klaipeda free economic zones
were expected to start operating in the course of  2000.  Companies operating in the zone would need to
register as enterprises in accordance with Lithua nian legislation and the registration should be duly
recorded by the governing company of the zone.  Companies were not required to export part or all of
their output to gain access to Lithuanian free zones.  The purpose of the free economic zones was toattract investment, not to introduce requirements to e xport.  Goods brought into the customs territory of
Lithuania from a free economic zone would be subject to all laws and other legal acts regulating the
importation of goods from abroad, notably the application of import duties and taxes, as well as any
prohibitions or restricti ons of economic character.
138. The representative of Lithuania confirmed that any free zones or free economic zones would
be fully subject to the coverage of the commit ments taken in the Protocol of Accession, and that
Lithuania would ensure enforcement of its WTO obligations in those zones, including those
commitments derived from the TRIPS Agreement.  He also confirmed that, when goods produced or
imported into the zones under the special tax and tariff regime existing in these areas enter into the rest
of Lithuania, normal customs formalities, tariffs and taxes would be applied.  The Working Party tooknote of this commitment.
Government Procurement
139. The representative of Lithuania said that a new Law on Public (Government) Procurement,
consistent with WTO requirements, had been adopted on 3 June 1999.  The Law had entered into force
on 1 October 1999, and replaced the previous Law of 13 August 1996.  The new Law aimed at ensuring
open and transparent public procurement procedures, equality of participation for suppliers (domestic or
foreign), effective competition, and more effective use of State funds.  Article 1.6 of The Law allowed
the Government to give preference to goods, servi ces and works (in connection with construction and
renovation) produced, effected or provided by en terprises, including foreign-owned, registered in
Lithuania, when this supply was important to the Stat e for economic or social reasons.  However, such a
decision would be passed in comp liance with Lithuania's obligations  under international agreements.
The Government Procurement Agency had been established in June 1997.  The Agency preparedregulations related to the implementation of the Law on Public Procurement;  announced tenders;
coordinated Ministries' activities related to procurement;  investigated complaints by suppliers;  etc.  The
Government of Lithuania had been granted observer status in the Committee on Government
Procurement in June 1998.
140. The representative of Lithuania confirmed that  Lithuania would initiate negotiations for
membership in the Agreement on Government Proc urement by tabling an en tity offer within three
months after the accession date, at the latest.  He also confirmed that if the results of the negotiations
were satisfactory to Lithuania and other members of  the Agreement, negotiations would be completed in
the course of 2002.  The Working Part y took note of these commitments.
Transit
141. The representative of Lithuania said that Lit huania required submission of a security or cash
deposit which would normally be equal to the sum of import duties and taxes levied on imports.  The
amount considered sufficient could be set at a higher level if the customs value or tariff classification of
the goods in transit could not be determined with certainty.WT/ACC/LTU/52
Page 34
142. The representative of Lithuania added that the Prime Ministers of the Baltic States had signed
a Resolution "On Via Baltica" on 13 February 1995, seeking to create a Baltic Transit System which
would facilitate and simplify transit formalities for cargo traffic between the Baltic States.  The system
would be based on, and could pave the way for, future accession to the EC-EFTA SAD and Common
Transit Conventions (1987).  An Agreement on the Co mmon Transit Procedure of the Baltic States had
been signed on 10 July 1998, and had entered into force upon ratification of Parliaments of the three
Baltic States on 1 June 1999.
143. The representative of Lithuania confirmed that Lithuania would conform to the relevant WTO
provisions, including Article V of  the GATT 1994.  The Working Party took note of this commitment.
Agricultural Policies
144. Members of the Working Party asked Lithuania to  outline the main direction of its agricultural
policies.  Specific questions were raised with re spect to customs duties on agricultural products, the
enforcement of recommended purchase prices on some commodities, direct and indirect support
measures, export subsidies, and measures in the su gar sector.  Lithuania was requested to provide
information on domestic support and export subsidies in agriculture in the format of document
WT/ACC/4.  A member noted that Lithuania's domestic support and export subsidy programmes were
of recent date and wondered why Lithuania had im plemented programmes which could be in contrast
with WTO provisions after deci ding to join the organization.
145. The representative of Lithuania noted that dom estic support and export subsidy programmes
had been in place since 1995.  He did not consider such  programmes incompatible with the provisions of
the WTO Agreement on Agriculture.  He added that agriculture was of exceptional economic and social
significance to Lithuania.  About one third of L ithuania's population resided in rural areas and the
production of primary agricultural commodities provid ed work for 21.7 per cent of the total employed
workforce in Lithuania.  Milk production was one of the most important economic activities in
Lithuania.  However, agricultural production was ha mpered by small-scale, inefficient farming and
marketing infrastructure.  Domestic prices for most agricultural commodities were below the world
market level, but prices for final products could so metimes be equal to, or higher than, world market
prices.  The Government aimed at creating a competitive agricultural sector and a viable rural economy
while minimizing the negative social and economic consequences during the period of transition.  The
average weighted MFN tariff on major food products (milk, dairy products, butter, eggs, sausages and
sugar) was 39.5 per cent.
146. Some members were particularly concerned about subsidies granted in the form of purchases
of agricultural production at "recommended" prices.  The representative of Lithuania explained that
farmers were supported through the mechanism of minimum (recommended) purchase prices for wheat,
flax, rapeseed, protein feed crops and milk.  Th e product coverage of the minimum price programme
could be expanded in extreme situations. Prices  were determined by average production costs in
Lithuania and the market situation in neighbouring countries.  A subsidy element was added to the
minimum prices within fixed purchasing quotas for fl ax, rapeseed and protein feed crops.  Subsidies
were channelled to farmers through the processors  to reduce paperwork.  Subsidies were granted
through the Rural Support Fund.  Types of assistance al so included soft credits and preferential loans (at
5 per cent annual interest) for farmers, support to trad e intermediaries and services providers, rebates on
agricultural machinery, support for cooperative efforts among farmers, ecologic farming and
compensation for accidents and calamities.  The State also offered indirect support by financing land
reclamation works, liming of soil, construction of roads and other infrastructure, animal breeding and
agricultural research and training.  Tax concessions to the sector consisted of exemption from corporate
profit tax and tax holidays on reclaimed land.  The Gove rnment also encouraged diversification in rural
areas and afforestation.WT/ACC/LTU/52
Page 35
147. Automatic import licensing had been introduced on 1 November 1998 for the main
agricultural products.  The principal purpose of the li censing system was to monitor imports of sensitive
products to allow improved prediction of import trends .  In his view, the licensing procedures were not
administered in a manner restricting imports, a nd corresponded to the requirements of Article 2 of
Agreement on Import Licensing Procedures.  Import li censes were issued immediately upon receipt of a
completed application - including copies of the cert ificate of registration, the importer's certificate and
the contract with the foreign commercial entity - or within a maximum of 10 days.
148. In 1997, the Government had decided to channel all fiscal resources for the National
Agricultural Development Programme and the Agri culture Support Fund into a Rural Support Fund to
improve the efficiency and administration of State s upport to the agricultural sector.  The Ministry of
Agriculture  had established the Rural Support Fund.  The main purpose of the Fund was to create viable
farms which would guarantee employment and inco me for farmers.  The Rural Support Fund would
facilitate a gradual move from price subsidies to ma intaining producer income through the application of
price support and other economic measures on the main agricultural products.  The Fund would also
finance investment programmes.  Some of the programmes financed from the fund were:  the
establishment of farmer and cooperative societies;   agro-services;  new technologies;  livestock
breeding;  ecological (environmentally-friendly) fa rming;  structural adjustment of marginally
productive land;  and the development of quality systems for agricultural products.
149. Some members noted that Lithuania subsidized  certain agricultural exports and requested
Lithuania to bind its export subsidies at zero.  The representative of Lithuania explained that export
subsidies were provided for storage of surplus production and improvement of marketing conditions.  In
1995, export subsidies had been provided for beef, por k, pigs, butter, cheese, grain, flour, condensed
milk and milk powder at a budget cost of US$9.8 m illion.  Lithuania had subsidized exports of beef,
butter, condensed milk, milk powder, cheese, pork, grain and flour at a budget cost of US$8 million in
1996;  beef, butter, condensed milk, milk powder, chees e, pork, grain, vegetable oil, meat preserves and
flour at a budget cost of US$14.8 m illion in 1997;  beef, butter, condensed milk, milk powder, cheese,
casein and other milk protein products, vegetabl e oil and preserved meat at a budget cost of
US$12 million in 1998;  and beef, butter, condensed milk, milk powder, cheese, casein and other milk
protein products, and vegetable oil at a budget cost of US$14 million in 1999.  The representative of
Lithuania confirmed that Lithuania will eliminate it s agricultural export subsidies as reflected in the
schedule of commitments annexed to Lithuania's Protoc ol of Accession.
150. The representative of Lithuania stressed that, as  with the economy as a whole, Lithuania's food
and agriculture sector was facing difficult adjustme nt to new market-oriented conditions.  Agriculture
was still in the process of recovery, and productivity in the sector, including the food industry, had not
reached its potential level due to inflation, dist ortions in production and prices, and a disruption in
relations - and resulting competition with Lithuania's ma in trading partners - in the former Soviet Union.
Growth and development within the sector was restra ined by insecurity concerning farm and land user
rights, poor infrastructure, and lack of proper di stribution of inputs a nd output.  In addition to
fragmented farms and insufficient competition, farmer s' incomes were squeezed by a negative trade
balance and lack of access to credit.  Land reform, in particular the process of restitution, privatization
and the development of clear-cut ownership rights had not proceeded as quickly as hoped.  Lithuania
was revising its agricultural policies and had developed a new system for domestic support to agriculture
(outlined in paragraphs 146 to 149).
151. Some members asked specific questions regardin g measures affecting the sugar sector, notably
the possible introduction of minimum import prices and the opening of tariff-rate quotas for domestic
processors.  Lithuania was reminded that Artic le VII of the GATT 1994 and the WTO Agreement on
Agriculture prohibited the use of reference prices.
152. The representative of Lithuania said that sugar pr ocessors were provided seasonal soft credits
for purchases of sugar beet.  Excise taxes on sugar and products containing more than 20 per cent sugarWT/ACC/LTU/52
Page 36
had been introduced on 1 November 1998;  the tax revenue was earmarked for sugar beet farmers to
compensate for reductions in domestic purchase prices.  Imports of sugar could also take place under
tariff-rate quotas, with no prior need to exhaust rese rves of domestic sugar.  A previous requirement to
this effect had been abolished in accordance with  the Amendment to the Law on Sugar of 8 July 1999.
The Amendment had also eliminated the exemption for sugar producers from provisions of the Law on
Competition, and the minimum import prices on raw sugar (effective 1 April 2000).
153. Information on Lithuania's domestic support and expo rt subsidies in agriculture in place in the
period 1995-1997 was presented by Lithuania in doc ument WT/ACC/SPEC/LTU/7/Rev.3 in the format
provided by document WT/ACC/4.  Some members noted  that calculations of Lithuania's Base Total
AMS also include domestic support that is equal to or below the de minimis level.  In this regard, these
members noted that Lithuania would therefore be requi red to calculate its Current Total AMS, as set out
in Article 1(h)(ii), in accordance with the Agreem ent on Agriculture and the methodology used in the
tables of supporting materials.
154. In establishing the product-specific Aggregat e Measurement of Support for some products,
Lithuania had set negative market price support in one  or two years equal to zero before averaging
market price support over the three years of the base period.  Some Members maintained that this
practice, which deviates from the practice of some  Members during the Uruguay Round, is incorrect in
that it overstates the average market price s upport in the three-year base period for each product
concerned, and did not see Lithuania's practice as a possible precedent for other countries acceding to
the WTO.
155. Lithuania's commitments on agricultural tariffs, on domestic support and export subsidies for
agricultural products are in the Schedule of Concessions and Commitments on Goods annexed toLithuania's Protocol of Accession to the WTO.
Trade in Civil Aircraft
156. The representative of Lithuania said that Lithuania had implemented the Agreement on Trade
in Civil Aircraft without exceptions from 10 January 2000.
157. The representative of Lithuania confirmed that  Lithuania would become a signatory to the
Agreement on Trade in Civil Aircraft upon accession to the WTO.  The Working Party took note of this
commitment.
Trade-Related Intellectual Property Regime
158. Some members of the Working Party asked Lithua nia to describe its system of protection of
intellectual property in the light of the WTO Ag reement on Trade-Related Aspects of Intellectual
Property Rights (TRIPS) a nd indicate areas which would be subjec t to new or revised legislation.  A
member noted that Lithuania's intellectual property ri ghts regime was still being developed and that the
current regime did not meet all the requirements of the WTO, and requested Lithuania to accelerate its
legislative process in order to ensure full impl ementation of the TRIPS Agreement at the time of
accession to the WTO.
159. Lithuania provided a note on TRIPS to th e Working Party in document WT/ACC/LTU/7
(Annex I), a note on progress in implementing the TRIPS Agreement in documentWT/ACC/SPEC/LTU/10, and a checklist on implementa tion of the TRIPS Agreement in document
WT/ACC/LTU/42.  The status of Lithuanian legisl ation and the corresponding WTO requirements, and
steps taken to address obligations under the TRIPS Agreement are presented in Table 12.  In response to
specific questions, the representative of Lithuania sa id that national legislation  - including laws on
copyright and related rights, patents, industrial design, trademarks and service marks, layout-designs(topographies) of integrated circuits, the Law on Competition, the Criminal Code and the Code ofWT/ACC/LTU/52
Page 37
Criminal Procedure - corresponded to the basic prov isions of the TRIPS Agreement.  Lithuania's
legislation on intellectual property contained no ex ceptions to the principle of national or MFN
treatment.  Lithuania did not use the possibilities pr ovided in Article 6 of the Berne Convention and
maintained no exceptional measures as provided for under Article 4(d) of the TRIPS Agreement.
160. Lithuania had joined the World Intellectual Property Organization (WIPO) in 1992 and the
Paris Convention in 1994.  On 17 September 1996, the Se imas (Parliament of Lithuania) had ratified the
Nice Agreement Concerning the International Classifi cation of Goods and Services for the Purposes of
Registration of Marks of 15 June 1957, which had en tered into force in Lithuania on 22 February 1997,
and on 29 April 1997 the Seimas had ratified the Protocol Relating to the Madrid Agreement
Concerning the International Registration of Mark s, entering into force on 15 November 1997.  In
November 1997, the Seimas had ratified the Trademark Law Treaty (TLT), which had entered into force
on 27 April 1998, and the Budapest Treaty on the International Recognition of the Deposit of Micro-organisms for the Purposes of the Patent Proce dure (1997, modified in 1980), which had entered into
force on 9 May 1998.  In the area of copyright and related rights, Lithuania had acceded to the Berne
Convention for the Protection of Literary and Artis tic Works (Paris Act, 1971) in 1994 and had ratified
the Convention in 1996.  Lithuania had ratified the Rome Convention for the Protection of Performers,
Producers of Phonograms and Broadcasting Organizati ons at the end of 1998 (which had entered into
force on 22 July 1999), and the Geneva Conventi on for the Protection of Producers of Phonograms
against Unauthorized Duplication of their Progra ms in 1999 (the Geneva Convention had entered into
force on 27 January 2000).  Lithuania had also conc luded international agreements on intellectual
property with Denmark, Norway, Switzerland, the Unite d Stated and the Europ ean Patent Organization.
161. Parliament had adopted a Law on Copyright and Related Rights on 18 May 1999.  The Law
corresponded to the regulations of international conventions on copyright and neighbouring rights and
the requirements of the TRIPS Agreement, and incl uded a system of collective administration  and
protection of copyright and related rights.  The Association of Performers and Producers of Phonograms
had been established;  authors, artists and creat ors had founded the Lithuani an Copyright Protection
Association (LATGAA) which was concluding agreements with similar organizations in othercountries.  Broadcasting organizations maintain ed copyright on radio and television programmes
according to Article 47 of the Law.  The Law provided rental rights for cinematographic works,
computer programmes and sound recordings.  The repr esentative of Lithuania added that the protection
against infringement in future acts provided by the WTO Agreement on TRIPS is conferred.
Article 72(2) of the Law on Copyright and Related Rights does not excuse conduct that, while not in
conflict with Lithuania's obligations prior to passage  to the Law, would now conflict with the Law and
Lithuania's WTO obligations.  In addition, Lithua nia would make appropriate amendments to its
Copyright Law prior to accession confirming the right to take "ex parte" actions, and by adding
language that ensured that "any provisional measures permitted by the Civil Procedures Code, including
but not limited to, Article 160 thereof" would be explicitly provided for in the Copyright Law.  Finally,
the representative of Lithuania confirmed that Ar ticle 49(2) of the Lithuanian law is intended to
implement Article 13, when it states that the exceptions  provided for in Article 49(1) of the Law confine
them to certain special cases which "must not conflict  with a normal exploitation of the objects of these
rights and must not unreasonably prejudice the legitim ate interests of the right holder."  In his view,
these provisions ensured that the protection of  the rights of performers, phonogram producers and
broadcasting organizations corresponded fully to th e requirements of Articles 13 and 14 of the TRIPS
Agreement.
162. Minor amendments to the Law on Trademarks, to adjust to requirements of the TRIPS
Agreement, would be enacted in the course of 2000.  Amendments to the Law on Industrial Design had
already been adopted (in 2000).  Lithuania considered the exceptions in its law to the rights conferred by
a trademark to be in compliance with Article 17 of the TRIPS Agreement.  Geographical indications
were in part protected under the new Law on Competition.  The provisions complied, in his view, withthe requirements of Article 22 of the TRIPS Agreement.WT/ACC/LTU/52
Page 38
163. The representative of Lithuania said that the Patent Law amendments, which incorporated the
provisions of the TRIPS Agreement and the Pari s Convention regarding compulsory licensing of
patented inventions, had been introduced on 15 June  2000.  Disputes regarding working or non-working
of a patent could be settled in Court.  Generally,  importation of a patented product should be considered
equivalent to the use of a patent.
164. The representative of Lithuania said that the Ministries and institutions involved in the
development of intellectual property rights legisla tion were accelerating their work.  On 16 June 1998,
Parliament had adopted a Law on the Legal Prot ection of Topographies of Semiconductor Products,
conforming with Articles 35 to 38 of the TRIPS Agreement.  The Law had entered into force on
1 December 1998.  The Law on Legal Protection of Co mputer Programs and Data Bases (subsequently
incorporated in the Law on Copyright and Related Rights) and the Law on Plan t Variety Protection and
Seed Growing had been adopted in 1996.  The latter Law assured the protection of all plant varieties
registered in Lithuania and guaranteed the rights of  variety owners.  Lithuania was not yet a member of
the International Plant Variety Protection Organiza tion (UPOV), but would join  following the adoption
of a new Law on Plant Vari ety Protection and Seed Growing, expect ed to be adopted in the course of
2001.
165. Intellectual property rights were enforced by civil action, unless the infringement was
considered a criminal violation.  Procedures were laid down in the Civil Code  and the Code of Civil
Process of the Republic of Lithuania.  The Laws on Trademarks, Patents, Topographies of
Semiconductor Products, and Industrial Design containe d specific provisions regarding owners' rights to
stop infringements and claims for compensation;  reme dies against violations of copyright and related
rights were provided under the Civil Code, the Criminal Code and the Code of Administrative
Infringements.  A Law on Amendment and Supplemen t to the Code of Administrative Infringements
had been passed in February 1998.  The special Am endments and Supplements to the Criminal Code
and the Code of Criminal Procedure had also been adopted.  They ensured implementation and effective
enforcement of the Law on Copyright and Related Rights and the other intellectual property laws.
Lithuania had improved its system of administrative, civil and criminal remedies for infringements of all
types of intellectual property.  The Law on Copyrigh t and Related Rights included a separate Article on
provisional measures.  Border enforcement against wilful trademark counterfeiting and copyright piracy
on a commercial scale, as well as for the protection of other forms of intellectual property, will be
available under a new Law on the Protection of Inte llectual Property for Imported and Exported Goods,
to be introduced by 1 February 2001.  A special unit responsible for the protection of intellectual
property rights had been established in the Depart ment of Tax Police (Order No. 238 of 6 June 1998 of
the Ministry of Interior Affairs).
166. The representative of Lithuania confirmed th at his Government would fully apply the
provisions of the Agreement on Trade-Related Aspect s of Intellectual Property Rights (TRIPS) by the
date of its accession to the WTO without recourse to a transitional period.  The Working Party took note
of this commitment.
Policies Affecting Trade in Services
167. The representative of Lithuania submitted to the Working Party a separate Memorandum on
the services regime (WT/ACC/LTU/5), an additional presentation (WT/ACC/LTU/9) and
supplementary information in document WT/ACC/LTU/10.  The documentation outlined the market
structure, regulatory framework and policies affect ing services generally or in relation to specific
sectors.  Concerning the development of services -related legislation, he added that Lithuania had
adopted several new laws or amendments, notably  the Law on Insurance, Law on Telecommunications,
Law on Public Trading of Securities, amendments and supplements to the Law on Commercial Banks,
Law on Construction, Law on Mass Media, the Civ il Aviation Code, Inland Transport Code, Road
Transport Code, Railway Transport Code, the Law on Tourism, the Law on Pension Funds, the Law onWT/ACC/LTU/52
Page 39
Audit, and the amendment and supplement to the Law on Enterprises (provisions concerning the
establishment of branches).
168. The representative of Lithuania said that require ments for the registration of an enterprise were
the same irrespective of the nationality of owners hip, except that a foreign investor would need to
submit certificates of incorporation in the home country for legal persons, documentation on thefinancial condition/status, and verification of the orig in of the foreign capital.  Foreign investment was
permitted in all sectors with the exception of areas related to defence and national security and the
organization of lotteries.  The State Post O ffice was the only service supplier with monopoly or
exclusive rights;  its rights concerned collection and delivery of letters, postcards and printed matter;
installation of letter collection boxes;  and issuance of postage stamps.  The State Post Office did not
have exclusive rights on courier services.  The form er State enterprise "Lietuvos Telekomas" had been
privatized, but would hold exclusive rights to pr ovide telecommunication services until 1 January  2003.
169. The representative of Lithuania provided inform ation on licensing of business activities in the
area of services in Table 3.2.  In addition, the esta blishment of a commercial bank required a licence
issued by the Bank of Lithuania.
170. Lithuania did not maintain any specific meas ures of horizontal nature which would limit
market access or national treatment in the financia l services sector.  Permission from the Bank of
Lithuania was required for foreign banks to esta blish bank branches and representative offices.
According to the Law on Commercial Banks of 21 December 1994, foreign banks could establish
subsidiaries;  acquire shares of a new or operating bank (acquisition of a bloc k of shares (10 per cent or
more) in an operating bank required the consent of the Bank of Lithuania);  and establish branches and
representative offices.  An individual acquiring 10 pe r cent or more of the shares in a bank without
permission from the Bank of Lithuania would not be  entitled to vote at the shareholders' general
meeting.  Minimum capital requirements were the same for domestic and foreign banks;  the minimum
from 1 January 1998 had been set at ECU 5 million (in Litas equivalent).  Lithuania intended to
approximate its banking laws with European Communities' directives which could lead to further
liberalization.  Foreign securities firms could conduct business through any legal form of enterprise in
Lithuania.
171. Insurance services were provided by 32 companies, of which 4 included foreign participation.
The State Insurance Company had held exclusive righ ts to issue all types of mandatory insurance and
pensions insurance;  the company had been privatized under a new Law on Insurance.  The new Law
would codify the situation under which all exclusiv e rights for the State Insurance Company had been
eliminated.  The Law enabled foreign insurance co mpanies to established wholly-owned companies,
joint-ventures or subsidiaries provided the fo reign insurance company had permission from its own
Government to conduct insurance activities in foreig n countries.  Foreign financial institutions were
permitted to deliver transportation insurance (maritime and aviation) and reinsurance services across the
border.  Insurance inter-mediation on behalf of  foreign insurance companies was allowed for
intermediaries registered in Lithuania.  The re presentative of Lithuania indicated that an MFN
exemption for insurance services, providing recipr ocity treatment for commercial presence, had been
deleted from Lithuania's list of MFN exemptions as  a result of an amendment to the Law on Insurance.
172. Concerning the supply of profe ssional services by foreigners, the Lithuanian Labour Exchange
issued work permits and would evaluate and full y recognize the qualifications of applicants in
accordance with the documentation submitted.  Lithuania had no agreements with other countries
regarding the recognition of qualifications.  Qualific ation requirements for auditors in the country of
origin of the auditors or auditing companies should not  be lower than in Lithuania.  Legal services were
regulated by the Ministry of Justice and could be provided by advocates and lawyers licensed to engage
in such activities. Foreign lawyers could provide services on international law and home-country law.
However, foreigners could not act as defenders in crim inal proceedings;  such se rvices were reserved for
advocates who were citizens of Lithuania and included in a list of attorneys.  Foreign attorneys couldWT/ACC/LTU/52
Page 40
represent clients before the Courts in Lithuania only if provided under bilateral agreements on legal
assistance.  Agreements were in force with Belaru s, Estonia, Kazakstan, Latvia, Moldova, Poland, the
Russian Federation, Ukraine, United States and Uzbekistan.  The lim itations on citizenship, which were
applicable to advocates (representing clients before the Courts), were not applied to lawyers wishing to
engage in other lawyers' practices.
173. The Law on Legal Status of Aliens had been approved on 17 December 1998.  The
Government established an annual quota on the number of foreign employees in accordance with the
Regulation on Temporary Employment of Foreigners  of 13 February 1995.  Employers applied to the
Lithuanian Labour Exchange which would issue special visas and work permits for foreigners. This
regulation was not applied to intra-corporate transf erees (managers, executives and specialists) working
one to two years with a possibility of extension, or to business visitors working no longer than three
months, for purposes related to the negotiation of cont racts, training of staff, installing equipment and
similar activities.
174. Regarding  procurement of services by govern ment agencies, the representative of Lithuania
said that the new Law on Public (Government) Procurement, which had entered into force on
1 October 1999, included no provisions on preferences for local suppliers.
175. The representative of Lithuania said that his Government was working with responsible
Ministries, organizations and Parlia ment to ensure that WTO requirements were reflected in new laws
and regulations.  Lithuania had notified the establishm ent of an enquiry point for services within the
Ministry of Foreign Affairs in document WT/A CC/LTU/29.  Lithuania's se rvices regime did not
discriminate among services or service supplier c ountries (Article II) except as provided in economic
integration agreements meeting the standards of Arti cle V of the GATS.  The Government provided full
information on laws and regulations in the Offici al Gazette as required under Article III, and was
drafting qualification requirements, technical stan dards and licensing requirements in accordance with
the requirements of Article VI.
176. Lithuania's Schedule of Specific Commitments on Services is annexed to its draft Protocol of
Accession reproduced in the Appendix to this Repor t (see paragraph 190 below).  This Schedule of
Specific Commitments on Services contains th e legally binding market-access commitments of
Lithuania in respect of services.
Transparency
Publication of information on trade
177. The representative of Lithuania said that accord ing to Lithuanian procedures legal acts could
not be enforced until they had been published in the Official Gazette.  According to the Law on Order of
Publishing and Entry into Force of Legal Acts of 6 April 1993, legal acts entered into force the day after
their publication in the Official Gazette, or on a later date stipulated in the legal act.
178. The representative of Lithuania stated that all laws, regulations, rulings, decrees and other
normative acts related to trade were to be promptly  published in the Official Gazette, and that no law,
rule, etc. related to international trade would beco me effective prior to such publication.  He further
stated that Lithuania would impl ement fully Article X of the GATT 1994, Article III of the GATS, and
the other transparency requirements in WTO Ag reements requiring notification and publication.
Notifications
179. The representative of Lithuania said that at the latest upon entry into force of the Protocol of
Accession, Lithuania would submit all initial notifications required by any Agreement constituting part
of the WTO Agreement.  Any regulations subsequently  enacted by Lithuania which gave effect to theWT/ACC/LTU/52
Page 41
laws enacted to implement any Ag reement constituting part of the WTO Agreement would also conform
to the requirements of that Agreement.  Th e Working Party took note of this commitment.
Trade Agreements
180. Some members of the Working Party asked Lithuania to provide information on bilateral or
regional agreements affecting trade and investment .  Some members wondered whether the free trade
agreements covered substantially all trade.  Lithua nia was asked to notify its free trade agreements.  A
member requested a copy of the Trilateral Ag reement on Agricultural Trade between the Baltic
countries, including the specific market access provis ions for the removal of barriers among the three
countries.
181. The representative of Lithuania said that Lithuania had negotiated Free Trade Agreements
(FTA's) with the European Communities, the Europ ean Free Trade Association (EFTA), Estonia and
Latvia (a trilateral agreement), Ukraine, Poland, Slovenia, the Czech Republic, Slovakia, Turkey and
Hungary.  Lithuania intended to conclude free tr ade agreements with all CEFTA countries.  A Free
Trade Agreement between Lithuania, Estonia and La tvia, covering industrial products, had entered into
force on 1 April 1994 and a second part of the Ag reement, on agricultural products, on 1 January 1997.
Together, the two parts of the FTA provided for free trade (no interim measures) at zero tariffs among
the Baltic States.
182. Trade agreements providing for MFN treatment  (conventional duties) had been concluded
with Australia, Belarus, Bulgaria, Canada, China, Cyprus, Cuba, Georgia, Indi a, the Republic of Korea,
Romania, the Russian Federation, Uzbekistan, Vene zuela and Vietnam.  Conventional MFN duties were
also applied on imports from Japan, Kazakstan, Mol dova, Tadjikistan and the United States.  Goods
originating in other countries were subject to autonomous customs duties.  Agreements on investmentpromotion and protection had been concluded with Argentina, Austria, China, the Czech Republic,
Denmark, Estonia, Finland, France, Germany, Gr eece, Israel, Italy, Kazakstan, Republic of Korea,
Latvia, Netherlands, Norway, Poland, Romania, Spain, Sweden, Switzerland, Turkey, Ukraine,
United Kingdom, and Venezuela.  Lithuania had also  concluded an agreement with the Multilateral
Investment Guarantee Agency.
183. The representative of Lithuania said that the free trade agreements covered substantially all
trade.  Under the Lithuania/European Communities Agreement, tariffs would nevertheless remain on
some agriculture and fishery products after the six- year transitional period to implement the agreement.
This FTA had already been notified by the Eur opean Communities under Article XXIV.  Preferential
treatment was granted in the form of tariff-rate quotas for some products;  quota amounts were listed in
Annex XIII, and the respective in-quota tariff rates in  Annex XII, of the Free Trade Agreement.  Tariff
quotas in the context of preferential trade were only applied towards the European Communities; the
relevant implementing regulation (Government Reso lution No. 205 of 8 February 1995 and No. 515 of
26 May 1997) had been provided to the Working Party.  The tariff-rate quotas concerned tariff positions
HS 0201, 0202, 0203, 0406 and 1601.
184. The Free Trade Agreements with the Eur opean Communities and EFTA States were
asymmetric, but only for industrial products.  The two agreements were similar in content, except that
the agreement with EFTA States contained a smalle r number of products subject to a transitional period
and provided a specific date for the abolition of import duties on textile products.  The FTA with EFTA
States included agricultural products, but the trade re gime was based on reciprocal concessions from the
MFN level.  The FTA with EFTA States had alread y been notified by EFTA under Article XXIV.  The
FTA with Ukraine stipulated MFN treatment for the majority of agricultural products, for the remaining
items the tariff was zero.  The Agreement included Annexes on rules of origin and administrative
cooperation which had been signed in February 1994.  New rules of origin were in preparation and
would be similar to those established in the FTA' s with the European Communities, EFTA States and
CEFTA countries.  The Parties of the Agreement committed to ensure free transit of goods through theirWT/ACC/LTU/52
Page 42
customs territory.  He stated that the Agreement with  Ukraine was in conformity with the provisions of
GATT 1994.  Some members requested Lithuania to suppl y the full text of its Agreement with Ukraine.
The representative of Lithuania replied that no English version of the Agreement existed, and therefore
provided a summary of the Free Trade Agreement with Ukraine to the Working Party.  He added that all
FTA's (except those with Ukraine and Hungary) had been notified to the WTO Secretariat, and the FTA
with Ukraine would be notified upon accession.
185. A member noted that Lithuania applied export taxes which were differentiated according to
the market of destination and wondered whether Lit huania intended to maintain this practice.  The
representative of Lithuania replied that Lithuania maintained some export duties on a bilateral basis in
connection with the Free Trade Agreements with the European Communities;  the Czech Republic;
Slovakia;  Slovenia;  a Trilateral Free Trade Agreemen t between Lithuania, Latvia and Estonia;  Turkey;
and Hungary (Table 9.2).  The Free Trade Agreemen t with Poland also allowed the possible use of
export duties.  Exports of the aff ected products had been prohibited at  the time of conclusion of these
Free Trade Agreements and the introduction of export duties in bilateral trade had thus been a step
towards liberalization of trade.  He added that, effective 10 January 2000 (in accordance with
Government Resolution No. 2 of 4 January 2000), export duties had been eliminated on all products
except raw hides and skins, for which the bilateral duties had been reduced to the new general rate of15 per cent.  The preferential duties were thus now equal to the non-preferential rates.  He stressed that
all export duties applied on the basis of bilateral agreement would be eliminated by 1 January 2001.
186. Preferential rules of origin were in place in th e context of all free trade agreements.  The origin
of goods was determined in accordance with list of  rules applied for all products.  Certificates of
preferential origin were issued by the Customs authorities according to Government Resolution No.
1077 of 1 October 1997 "On the Order of Determination of the Origin of Goods and on Certificates of
Origin (General Form)".  Simplified procedures had been established in the appropriate Protocols on the
Rules of Origin in the Free Trade Agreements conc luded by Lithuania, and were used when invoice
declarations (i.e. declarations of preferential origin  given by the exporter on an invoice, a delivery note
or any other commercial document describing the products  concerned in sufficient detail to enable their
identification) had been made by approved exporters.
187. The representative of Lithuania added that the bilateral or plurilateral free trade agreements
concluded by Lithuania and specified in paragraphs  181-185 did not contain prov isions regarding trade
in services, except for the Europe (Association) Agreement (EA) with the European Communities and
their Member States.  This Agreement included a numbe r of provisions on services.  In particular, Title
4 included provisions on the right of establishmen t, trade in services and movement of workers.
Provisions regarding establishment were based upon MFN or national treatment, depending on which
would be more favourable, and had been applied sin ce the entry into force of the Agreement.  These
provisions on services constituted an agreement libera lizing trade in services in the sense of Article V,
paragraph 1 of the GATS.  Implementation of the Agreement was monitored by the Association
Council.  In formulating its recommendations, the A ssociation Council was required to take into account
the respective obligations of the Parties under the GATS, in particular Article V.  The Parties of the EAhad agreed to take the necessary steps to prog ressively liberalize access by each others' services
suppliers in their respective markets, including the commitment that no later than eight years after the
entry into force of the EA, the Association Council shall take the measures necessary to implement
progressively the provisions of the Agreement allowing the supply of services by Community or
Lithuanian companies or nationals which are establis hed in a Party other than that of the person for
whom the services are intended.
188. The representative of Lithuania stated that hi s Government would observe the provisions of
the WTO including Article XXIV of the GATT 1994 a nd Article V of the GATS in its trade agreements,
and would ensure that the provisions of the WTO Agreements for notification, consultation and other
requirements concerning preferential trading syst ems, free trade areas and customs unions of whichWT/ACC/LTU/52
Page 43
Lithuania is a member are met from the date of  accession.  The Working Party took note of this
commitment.
Conclusions
189. The Working Party took note of the explanations  and statements of Lithuania concerning its
foreign trade regime, as reflected in this Report.   The Working Party took note of the commitments
given by Lithuania in relation to certain specific matters which are reproduced in paragraphs 19, 22, 29,
42, 45, 55, 56, 59, 66, 71, 79, 80, 86, 91, 97, 102, 104, 113, 122, 124, 135, 138, 140, 143, 157, 166, 179
and 188 of this Report.  The Working Party took note that these assurances and commitments had been
incorporated in paragraph 2 of the Protoc ol of Accession of Lithuania to the WTO.
190. Having carried out the examination of the foreig n trade regime of Lithuania and in the light of
the explanations, commitments and concessions made by the representative of Lithuania, the Working
Party reached the conclusion that Lithuania be invited to accede to the Marrakesh Agreement
Establishing the WTO under the provisions of Articl e XII.  For this purpose, the Working Party has
prepared the draft Decision and Protocol of Accessi on reproduced in the Appendix to this Report, and
takes note of Lithuania's Schedule of Sp ecific Commitments on Services (document
WT/ACC/LTU/52/Add.2) and its Sc hedule of Concessions and Co mmitments on Goods (document
WT/ACC/LTU/52/Add.1) that ar e annexed to the Protocol.  It is proposed that these texts be adopted by
the General Council when it adopts the Report.  When the Decision is adopted, the Protocol of
Accession would be open for acceptance by Lithuania which would become a Member thirty days after
it accepts the said Protocol.  The Working Party agreed, therefore, that it had completed its work
concerning the negotiations for the accession of Lit huania to the Marrakesh Agreement Establishing the
WTO.WT/ACC/LTU/52
Page 44
ANNEX 1
Laws, Regulations and Other Information Prov ided to the Working Party by Lithuania
- Memorandum of Economic Policies of the Government of the Republic of Lithuania for the
period 1 October 1994 and 30 September 1997;
- Law on Taxes on Profits of Legal Persons of 31 July 1990, No. I-442;- Law on Taxes on State Natural Resources of 21 March 1991, No. I-1163;
- Law on the Credibility of the Litas of 17 March 1994, No. I-407;
- Law on Foreign Currency in the Republic of Lithuania of 7 July 1993, No. I-202;
- Company Law of 5 July 1994, No. I-528;
- Law on Enterprises of 8 May 1990, No. I-196;
- Law on Small Enterprises of 20 December 1991, No. I-2125;
- Cooperative Law of 1 June 1993, No. I-164;- Law on Partnerships of 16 October 1990, No. I-676;
- Law on Enterprise Bankruptcy  of 15 September 1992, No. I-2880;
- Law on Investment No. VIII-1312, 7 July 1999;
- Law on Foreign Investment in the Republic  of Lithuania of 29 December 1990, No. I-905;
- Law on Foreign Capital Investment in the Republic of Lithuania No. I-938 of 13 June 1995;- Law on Spheres of Business Activity wherein Fo reign Investment is Prohibited or Limited of
2 May 1991, No. I-1276;
- Law on Privatization of State-Owned and M unicipal Property, No. I-1001, 4 July 1995;
- Law on Prices of 26 July 1990, No. I-413;
- Law on Competition of 15 September 1992, No. I-2878;- Law on Competition, 23 March 1999, No. VIII-1099;
- Law on Administrative Proceedings  No. VIII-1029 of 14 January 1999;
- Resolution No. 806 of 24 July 1997 On the Ta riff and Non-Tariff Regulation of Export and
Import of Goods and Improvement of Establis hment of Customs Tariffs and Procedure of
Change;
- Law on Alcohol Control No. I-857 of 18 April 1995 (as amended by 3 July 1995);
- Law No. I-857 of 18 April 1995 On Alcohol Control;
- Law on Alcohol Control, 18 April 1995 No. I-857 as amended by 10 December 1998, No.
VIII-961;
- Government Resolution No. 1459 On Licensing  Import, Wholesale and Retail Trade in
Alcoholic Products of 17 November 1995;
- Government Resolution No. 559 of 5 June 1997 On Licensing the Importation, Wholesale and
Retail Trade in Alcoholic Products;
- Law on Tobacco Control No. I-1143 of 20 December 1995;
- Government Resolution No. 1622 On Licensing th e Production of Tobacco and its Products and
their Import into the Republic of Lithuania of 27 December 1995;
- Government Resolution No. 1221 On Licensing Wholesale and Retail Trade in Import and
Export of Oil Products and Retail Tr ade in Liquid Gas of 14 September 1995;
- The Customs Code of the Republic of Lithuania of 18 April 1996;
- Law on Customs Tariffs of 27 April 1993, No. I-138;
- Law No. VIII-633 of  19 February 1998 on Customs Tariffs;
- Schedule of tariffs approved by the L ithuanian Government's Resolution No. 443
(16 June 1993);
- Resolution No. 1367 of 30 December 1994 On the Es tablishment of the Structure of Customs
Tariffs;
- Government Resolution No. 1114 On the Approv al of Customs Duties of Bound Tariff Rates
for the Imported Goods of 26 September 1996;
- Government Resolution No. 1245 of 20 October 1998 Amending Government Resolution No.
268 of 24 March 1997 on the Procedure of Export and Import Regulation in the Republic of
Lithuania;WT/ACC/LTU/52
Page 45
- Government Resolution No. 641 of 24 May 1999 on Partial Amendments to Resolution
No. 268 of 24 March 1997 of the Government of the Republic of Lithuania on the Procedure
for Export and Import Regulation in the Republic of Lithuania;
- Government Resolution No. 653 On the General Order of the Administration of Tariff Quotas
for Implementation and Exporta tion of Goods of 8 May 1995;
- Law on Stamp Duty No. I-508 of 23 June 1994;
- Government Resolution No. 774 of 23 June 1998 on the Amendment of Government
Resolution No. 1123 of 11 November 1994 on the Approval of Stamp Duty Rates and the
Procedure for Payment and Refund of Stamp Duty;
- Government Resolution No. 1169 of 29 September 1998 on the Amendment of Government
Resolution No. 1123 of 11 November 1994 on the Approval of Stamp Duty Rates and the
Procedure for Payment and Refund of Stamp Duty;
- Resolution on Partial Amendments to Resolution of 11 November 1994 No. 1123 "On the
Approval of Stamp Tax Tariffs and Procedur e of Stamp Tax Payment and Refunding" No.
601 of 18 May 1999;
- Resolution regarding the Amendment of the Resolution of the Government of the Republic of
Lithuania of 11 November 1994 No. 1123 "Regarding the Revision of the Rates of StampDuty as well as the Approval of the Stamp Duty Payment and Refund Procedure";
- Information on consular fees levied in accordance with the Law No. I-509 of 23 June 1994;
- Law No. I-429 of 12 April 1994 On Excise Duties;
- Law on Excise Duties No.I-429 of 12 April 1994, as amended on 23 December 1999 (No. VIII-
1494);
- New excise duties (January 1995);
- Law No. I-429 of 12 April 1994 on Excise Duties (as amended by Law No. VIII-901 of
20 October 1998);
- Law on Excise Duties, 12 April 1994, No. I-429 as amended on 21 December 1998, No. VIII-
982;
- Law on Excise Duties dated 12 April 1994 No.I-429, as amended on 8 July 1999 No. VIII-
1321;
- Law on Excise Duties, 12 April 1994, N o. I-429 as amended on 23 December 1999 No. VIII-
1494;
- Government Resolution No. 1297 of 4 November 1998 Supplementing the Government
Resolution No. 302 of 25 April 1994 on Excise Taxes;
- Resolution of the Government of the Republic of Lithuania No. 1296 of 4 November 1998 on
the Procedure for Withholding and Refund of Excise Tax and Approval of the List of
Products which Contain Sugar;
- Resolution of the Government No. 529 On the Approval Procedure for the Application of
Excise Tax Relief on Beer Made by the Small Breweries of 10 May 2000;
- Law No. I-345 of 22 December 1993 On Value-Added Tax;- Regime of Import/Export Regulation in the Republic of Lithuania;
- Government Decision on the Procedure of Co mmodity Export and Import Regulation in the
Republic of Lithuania of 14 October 1994, No. 985;
- Government Resolution No. 281 "On Partia l Amendments to Resolution No. 985 "On
Procedure of Export and Import Regulation in the Republic of Lithuania" adopted by the
Government of the Republic of Lithuani a on 14 October 1994" of 28 February 1995;
- Law Concerning Control of Im port, Transit and Export of Strategic Goods and Technologies,
No. I-1022, 5 July 1995;
- Government Resolution No. 718 On the Restricti on of Import of Certain Things (Goods) to the
Republic of Lithuania, their Export and Transit of 19 May 1995;
- Republic of Lithuania, Minister of Agriculture, Order No. 240, 9 November 1998, regarding
the Procedure for Automatic Issuing of Import Permits (Licenses) for Agricultural and Food
Products;
- Government Resolution No. 449 On the Approval of the Order of Customs Valuation of Goods
of 16 June 1993;WT/ACC/LTU/52
Page 46
- Government Decree No. 751 On Prices of Impor ted Goods Used for their Customs Valuation
Purpose of 25 June 1996 (unofficial translation);
- Government Resolution No. 751 On the Customs Assessment of Prices for Imported Goods of
25 June 1996;
- Government Resolution No. 504 of 24 April 1998 amending Government Resolution No. 751
of 25 June 1996 "On the Prices of Import for their Customs Valuation";
- Government Resolution No. 748 of 9 June 1999 on the Approval of the Procedure of the
Customs Valuation of Goods;
- Methodology of Application of Certain Provisions of  Procedure on Customs Valuation,
approved by the Order of Customs De partment No. 395 on 25 September 2000;
- Methodology of Control of Customs Valuation of Imported Goods, approved by the Order of
the Customs Department No. 51 of 1 March 2000;
- Government Resolution No. 1077 of 1 October 1977 on the Determination of Origin of Goods
and on the Certificates of Origin of the General Form;
- Law No. VIII-807 of  23 June 1998 on Anti-Dumping;
- Secondary Legal Acts of the Law on Anti-Dumping;
- Draft Law on Countervailing Duties dated 1999;- Draft Law on Safeguard Measures;
- Law on Safeguard Measures  of 23 May 2000, No. VIII-1703;
- Government Decision on More Stringent Regulati ons on Purchase and Sale of Waste and Scrap
of Ferrous Metals of 23 May 1994, No. 388;
- Government Decision on Order of Purchase in the Republic of Lithuania, Re-melting of Export
of Copper and other Non-ferrous Metals, their Alloys, Scrap and Waste of 29 June 1994,
No. 526;
- Resolution on Temporary Economic Measures to Facilitate the Export of Lithuanian Goods,
Protect the Internal Market and Strength en Lithuania's Position Therein No. 1122 of
17 September 1998;
- Law on Standardisation No. VIII-1618 of 11 April 2000;
- Government Resolution No 617 of 20 May 1999 "On Information Exchange in the Field of
Standards, Technical Regulations and Conformity Assessment Procedures";
- Draft Resolution on Amendment of Government Resolution No. 617 of 20 May 1999 on
Information Exchange in the Field of Standards, Technical Regulations and Conformity
Assessment Procedures;
- Lithuanian Standards Board Order No 13 of 22 February 1999 (this document, which contains
a part of the Code of Good Practice disciplines, established procedure of drafting, approval,
publication and revision of standards);
- Law on Metrology No. I-1452 of 9 July 1996;
- Law No. VIII-870 of 6 October 1998 on the Conformity Assessment;
- Law on Product Safety No. VIII-1206 of 1 June 1999;- Law on Mental Health Care No. I-924 of 6 June 1995;
- Law on the Amendment to the Law on Health Care Institutions No. V III-288 of 24 June 1997;
- Law on Health System No. I-552 of 19 July 1994;
- Resolution No. 1106 of 9 Octobe r 1997 On Approval of the Pr ocedure of the Importation of
Foodstuffs into the Republic of Lithuania and Control of Their Quality and Non-Hazardness toHealth;
- Law on Food No. VIII- 1608 of 4 April 2000;
- Law on Phytosanitary No. VIII-1481 of  16 December 1999;
- Law on Veterinary Activities No. I-2110 of 17 December 1991;
- Law on Veterinary Activities No. I-2110 of 17 December 1991 with amendments of
7 October 1999;
- Government Decision on Veterinary and Sanita ry Requirements on Livestock, their Products,
Raw Materials and Fodder Imported into the Repub lic of Lithuania and Transported as Transit
through its Territory of 27 April 1993, No. 284;WT/ACC/LTU/52
Page 47
- Veterinary requirements of the Republic of Lithua nia for import, export and transit of livestock,
poultry, animal products, raw materials, feedstuffs;
- Law on Plant Protection N o. I-1069 of 19 October 1995;
- Law on the Protection of Plant Varieties and Seed Cultivation No. I-1518 of
17 September 1996;
- Government Decision on the Approval of Vege table Quarantine Regulations for Import and
Export of Goods of Vegetable Origin to and fro m the Republic of Lithuania and their Transit
through the Territory of the Republic of Lithuania of 3 August 1993, No. 599;
- Government Resolution No. 384 On the Appr oval of Quarantine Regulations for the
Production, Transportation, Conservation, Sale and Utilization of Plants and Plant Products on
the Territory of the Republic of Lithuania of 25 March 1996;
- Law on Trade No. I-747 of 12 January 1995;- Law on the Fundamentals of Free Economic Zones, No. I-976, 28 June 1995;
- Government Resolution No. 510 On Approvin g Provisional Regulations of Government
Procurement of 12 April 1995;
- Law on Public Procurement No. I-1491 of 13 August 1996;
- Law on the Amendment of the Law on Public Procurement, No. VIII-1210, 3 June 1999;- Law on State Regulation of Economic Re lations in Agriculture No. I-734 of 
22 December 1994;
-- Decree of the Government of the Republic of Lithuania No. 788 On the Approval of the
Programme for the Regulation of Agricultur al and Food Products Market and Export
Promotion;
- Law on Sugar No. I-867 of 27 April 1995;
- Law on the Amendment of the La w on Sugar, No.V III-1323, 8 Ju ly 1999;
- Legal Acts subject to calculation of total AMS for Lithuania's producers;
- Law No. VIII-1185 of 18 May 1999 on Copyright and Related Rights;
- Draft Law on the Amendment of Article 71 of the Law on Copyright and Related Rights;
- Law on Trademarks and Service Marks of 3 June 1993, No. I-173;
- Draft Law Amending the Law on Trademarks and Service Marks;
- Patent Law of 18 January 1994, No. I-372;
- Draft Law on the Amendment of Articles 26, 39 and 40 and on the Invalidation of Article 38 of
the Patent Law of the Republic of Lithuania;
- Law on Industrial Design No. I-1006 of 4 July 1995;
- Draft Law on Amending and Supplementing Article 5 of the Law on Industrial Design;
- Law No. VIII-791 of 16 June 1998 on the Legal Protection of Topographies of Semi-
conductor Products;
- Draft Law on the Protection of Intellectual Property in the Field of Import and Export of
Goods;
- Law on Amending Articles 35, 142, 308, 321-2 of the Criminal Code and Supplementing the
Code with Articles 142-1, 142-2 a nd 142-3 of 20 Apri l 2000 No. VIII-1646;
- Law Amending Articles 37, 126 and 143 of the Code of Criminal Procedures of
20 April 2000 No. VIII-1647;
- Law on the Legal Status of Al iens, No VIII-978, 17 December 1998;
- Law No. I-425 of 30 July 1990 on Stock Corporations;- Government Resolution No. 511 On Approvin g Regulations of Rendering Services of
12 April 1995;
- Government Decision on Registra tion of Representation Offices of Foreign Enterprises and
Banks in the Republic of Lithuania of 31 May 1991, No. 223;
- Law on Commercial Banks No. I-720 of 21 December 1994;- Law on Insurance No. I-590 of 20 September 1990;
- Law on Insurance No. I-1456 of 10 July 1996, as amended on 23 March 2000 (No. VIII-1587);
- Draft Law amending the Law on Insurance (Articles 2, 7, 11, 17, 22, 27, 28, 29, 31, 37, 39, 42,
43, 45, 46, 47, 60, 63, 66);
- Law on Public Trading in Securities No. I-1169 of 16 January 1996;WT/ACC/LTU/52
Page 48
- Law No. VIII-774 of  9 June 1998 on Telecommunications;
- Law on Communications No. I-1109 of 30 November 1995;
- Law on Tourism No. VIII-667 of 19 March 1998;
- Law on Audit of 15 June 1999 No. VIII-1227;
- Law No. I-119 of 6 April 1993 on Procedure of Publication and Coming into Force of Laws
and other Legal Acts of the Republic of Lithuania;
- Free Trade Agreement between the Republic of Estonia, the Republic of Latvia and the
Republic of Lithuania on Trade in Agricultural Products of 16 June 1996;
- Free Trade Agreement between the Republic of Lithuania and the Czech Republic;
- Free Trade Agreement between the Republic of Lithuania and the Slovak Republic;
- Free Trade Agreement between the Republic of  Lithuania and the Republic of Slovenia;
- Agreement between the Government of the Ki ngdom of Norway and the Government of the
Republic of Lithuania concerning Trade in Agricultural Products;
- Free Trade Agreement between the Swiss C onfederation and the Republic of Lithuania;
- Free Trade Agreement between the Republic of Estonia, the Republic of Latvia and the
Republic of Lithuania;
- Agreement on Free Trade-Related Matters between the European Community, the European
Atomic Energy Community and the European Co al and Steel Community, of the one part, and
the Republic of Lithuania, of the other part;
- Government Resolution No. 205 On Enactment of the Free Trade Agreement between the
Republic of Lithuania and the European Communities, the European Atomic Energy
Community, and the European Coal and Steel Community of 8 February 1995;
- Government Resolution No. 176 of 19 February 1999 Concerning the Amendment of
Government Resolution of 30 December 1998 No. 1524 Regarding the Implementation of the
Europe Agreement Establishing an Association Between the European Communities and
Their Member States, of the One Part, and the Republic of Lithuania, of the Other Part;
- Government Resolution No. 1524 of 30 December 1998 Regarding the Implementation of the
Europe Agreement Establishing an Association Between the European Communities and
Their Member States, of the One Part, and the Republic of Lithuania, of the Other Part
- Summary of the Free Trade Agreement Between the Republic of Lithuania and Ukraine;
- Statistical data on imports into Lithuania of agricultural and food products;  and
- Statistical data on exports from Lithuania of agricultural and food products.
Laws and Regulations provided to the Working Party by Lithuania during the accession process,
but no longer valid (June 1999):
- Law on Foreign Investment in the Republic  of Lithuania of 29 December 1990, No. I-905;
- Law on Spheres of Business Activity wherein Fo reign Investment is Prohibited or Limited of
2 May 1991, No. I-1276;
- Government Resolution No. 1459 On Licensing  Import, Wholesale and Retail Trade in
Alcoholic Products of 17 November 1995;
- Government Resolution No. 1622 On Licensing th e Production of Tobacco and its Products and
their Import into the Republic of Lithuania of 27 December 1995;
- Law on Customs Tariffs of 27 April 1993, No. I-138;
- Schedule of tariffs approved by the L ithuanian Government's Resolution No. 443
(16 June 1993);
- Resolution No. 1367 of 30 December 1994 On the Es tablishment of the Structure of Customs
Tariffs;
- Government Resolution No. 1297 of 4 November 1998 Supplementing the Government
Resolution No. 302 of 25 April 1994 on Excise Taxes;
- Government Decision on the Procedure of Co mmodity Export and Import Regulation in the
Republic of Lithuania of 14 October 1994, No. 985;WT/ACC/LTU/52
Page 49
- Government Resolution No. 281 "On Partia l Amendments to Resolution No. 985 "On
Procedure of Export and Import Regulation in the Republic of Lithuania" adopted by the
Government of the Republic of Lithuani a on 14 October 1994" of 28 February 1995;
- Government Resolution No. 449 On the Approval of the Order of Customs Valuation of Goods
of 16 June 1993;
- Government Decision on More Stringent Regulati ons on Purchase and Sale of Waste and Scrap
of Ferrous Metals of 23 May 1994, No. 388;
- Government Decision on Order of Purchase in the Republic of Lithuania, Re-melting of Export
of Copper and other Non-ferrous Metals, their Alloys, Scrap and Waste of 29 June 1994,
No. 526;
- Government Resolution No. 510 On Approvin g Provisional Regulations of Government
Procurement of 12 April 1995;
- Law on the Amendment and Supplement to the Civil Code of the Republic of Lithuania,
No. I-459, 17 May 1994 (provisions on copyright);
- Law on the Legal Protection of Computer  Programs and Databases No. I-1188 of
30 January 1996;
- Government Decision on Registra tion of Representation Offices of Foreign Enterprises and
Banks in the Republic of Lithuania of 31 May 1991, No. 223;
- Law on Insurance No. I-590 of 20 September 1990;  and
- Government Resolution No. 205 On Enactment of the Free Trade Agreement between the
Republic of Lithuania and the European Communities, the European Atomic Energy
Community, and the European Coal and Steel Community of 8 February 1995.WT/ACC/LTU/52
Page 50
Table 1(a):  Information on the Privatization Pro cess of State Property Firs t Stage of the Process
(1 September 1991 - 31 December 1995)
Description Number of
objects (units)Capital
(mln Litas*)
1. Total State property (except budgetary institutions, apartment fund
and agricultural enterprises)8,065 13,547.4
2. Property included in a list of object to be privatized according to
the data provided by founders6,650 9,836.3
3. Property included in privatization programmes, via signing the
shares:3,953 8,524.8
3.1 - for the employees of the enterprises 2,077 1,223.6
3.2 - percentage 52.5 per cent 14.4 per cent
4. Privatized via signing the shares: 2,927 2,627.7
4.1 - for the employees of the enterprises 1,887 860.5
4.2 - percentage 64.5 per cent 32.7 per cent
5. Comparing with those included in the programmes of the
privatization (4:3)74 per cent 60 per cent
6. Property included into privatization programmes, via auctions 2,964 111.9
7. Privatized via auctions 2,726 79.1
8. Comparing with those included into privatization programmes
(7:6)92.0 per cent 70.7 per cent
9. Property expected to privatize via tenders 15 499.3
10. Privatized via tenders 14 485.8
11. Property expected to privatize for hard currency 61 40.9
12. Privatized for hard currency 47 28.0
13. Total State property included into privatization programmes
(3+6+9+11)6,993 9,176.9
14. Privatized State property (4+7+10+12) 5,714 3,220.6
15. Comparing with those included into privatization programmes
(14:13)81.7 per cent 35.1 per cent
16. Comparing with total property included in a list of objects to be
privatized (14:2)85.9 per cent 32.7 per cent
17. State capital purchased by investment joint-stock companies 737.6
18. Comparing with total privatized capital (17:14) 22.9 per cent
19. Total State capital in privatized objects (until privatization) 6,904.1
20. Comparing with total capital included in a list of objects to be
privatized (19:2)59.0 per cent
21. State property remained after the initial privatization and
purchased according to Government Resolution No.1063803 284.5
22. Comparing with total privatized property (21:14) 14.0 per cent 8.83 per cent
23. Total privatized State capital (4+7+10+12+21) 3,505.1
24. State property transferred to the investment fund 1,363 218.3
25. Comparing with total State cap ital remained in privatized
enterprises (24:19)3.2 per cent
26. State capital remained in privatized enterprises with the limited
degree of the privatization 437 2,966.5
Notes:
1. The number of investment accounts opened for the population is 2.6 million for a total amount of
10,504 million Litas (after indexation).
2. 17 special enterprises were included into privatization programme.  State capital of these enterprises 
amounts to 3,825 million Litas.
*4  L i t a s  =  U S $ 1 ]WT/ACC/LTU/52
Page 51
Table 1(b):  Information on the Privatization Process of State and Municipalities Property
(Second stage of the process - privatization by cash)
August 1996 – 1 April 2000
(number of objects (units))
STEP UNDERTAKEN State property Municipal
propertyTotal
Enterprises included in a list of objects to be privatized 2,226 822 3,048
Enterprises later excluded from the list of objects to be
privatized30 71 101
Enterprises included in privatization programmes: 1,379 1,151 2,530
- public signing of shares 69 0 69
- auctions 1,233 1,125 2,358
- tenders 61 6 67
- leasing 11 19 30
- direct negotiations 5 1 6
Suspended privatization 10 4 14
Privatized enterprises: 852 739 1,591
- public signing of shares 46 0 46
- auctions 760 716 1,476
- tenders 40 6 46
- leasing 2 17 19
- direct negotiations 4 0 4
Privatized enterprises
- industry 153 13 166
- transport 29 0 29
- communication 5 0 5
- construction 78 3 81
- trade 228 158 386
- public utilities 8 13 21
- services 14 27 41
- real estate 280 516 796
- other 57 9 66
Proceeds (Litas '000) 2,938,443 87,353 3,025,796
Table 1 (c ):  Progress in Privatization of Up and Downstream Industries in Lithuanian Agriculture
(by 1 November 1999)
Type of Enterprise Number Statutory Capital structure
(per cent)
capital
(million
Litas)State Private Foreign
*Agroservice and agro-chemistry 30 48.4 5.5 94.5 -
Pure-strain stock breading 9 8.2 0.5 99.5 -
**Meat processing 8 89.5 13.2 86.8 -
***Dairy industry 22 359.1 12.8 87.2 -
Fruit & vegetables processing 2 5.4 24.2 75.8 -
Grain processing industry 20 149.7 7.9 92.1 -
Sugar industry 4 131.0 0 100 58
Vegetable oil industry 2 12.3 0 100 -
Soap industry 2 11.5 13.3 86.7 -
Bread and bakery industry 11 58.4 41.8 58.2 -
Confectionery. 6 72.0 3.6 96.4 59.2
****Alcoholic beverages industry 5 202.7 72.7 27.3 -
Beer industry 7 191.9 1.8 98.2 46.6WT/ACC/LTU/52
Page 52
* State has shares in some enterprises.
** In some enterprises, the State share exceeds the average;  State shares constitute about 45,7 per cent in
the Stock company "Panevezio maistas" and 16 per cent in "Taurages maistas".
*** In some enterprises, the State share exceeds the aver age, i.e. State shares constitute about 48.9 per cent in
the Stock company "Marijampoles pieno konservai", 62.6 per cent in "Svencioniu pienine", 21.8 per centin "Siauliu pienas" and 15 per cent in "Kauno pienas".
**** Alcoholic beverages producing enterprises are on the list of special-purpose enterprises and 
privatisation degree of such companies can not exceed 30 per centWT/ACC/LTU/52
Page 53Table 2:  List of Goods and Se rvices Subject to Price Control
Code according
HS NACEItems subject to price control Institution applying control Reasons and perspectives for control
12 3 4 5
- - Price of land sold by the State, price of land for
computing of land tax and land lease taxGovernment Regulation of land price is related to the restitution
of the rights to private land ownership. Havingimplemented land reform and having restored
property ownership, the regulation of prices for land
will be abolished.
- - Tax tariffs for lease of the State-owned land and the
State-owned water reservoirsGovernment Regulation is related to the State ownership for these
items.
4010 Electricity production and transmission Suppliers of electricity in coordination with
the independent State Prices and EnergyControl CommissionControlled because of absence of sufficient
competition in the market.
4020 Distribution of gas fuel (including only the
distribution of natural gas)Suppliers of natural gas in coordination with
the independent State Prices and EnergyControl CommissionControlled because of absence of sufficient
competition in the market.
4030 Supply of heat and hot water Suppliers of heat and hot water in
coordination with the independent State
Prices and Energy Control CommissionControlled because of absence of sufficient
competition in the market.
Prices and tariffs for goods and services ofeconomic entities having a dominant position in themarket:
4100 Extraction, distribution and cleaning of water Local governments Controlled because of a monopoly position of the
enterprises.
6010 Transportation of passengers by local railway routes Ministry  of Communication Controlled because of a monopoly position of t he
stock company "Lithuanian railways".
6021 Transportation of passengers by other type of land
transport (passenger buses of local and long distanceroutes)Ministry of Communication and Local
governmentsSubsidised service, it is planned to liberalise these
prices.
6022 Passenger transportation by taxi Local governments Controlled because of specific character of this
service in order to avoid a taxi drivers abuse of
unreasonably high prices.
6120 Transportation of passengers by local ship routes Ministry of Communication It is planned to liberalise prices for these serv ices.WT/ACC/LTU/52
Page 54
Code according
HS NACEItems subject to price control Institution applying control Reasons and perspectives for control
12 3 4 5
6323 Control activities of the airport and aeroplanes'
flights, on land services (air navigation, terminal air
navigation, landing, guide-vehicle, follow-me,parking, security (Government Resolution No. 866,21 06 1995)Ministry of Communication Controlled because of a monopoly position of the
airports.
6210 Transportation of passengers by air transport Ministry of Communication Regulated on basis of international agreements.
6322 Activities of navigation, ship ruling and anchorage,
raising of sank ships (dues of the State Klaipëda SeaPort for: tonnage, canal, light house, pilotage,
regulation of ship traffic, anchorage, sanitary, people
rescuing and anti-pollution activities, mooring,quay, passenger toll (Government Resolution No.410, 10 06 1993)Ministry of Communication Controlled because of a monopoly position in the
market.
6411 Postal services of the National post office
(collection, transportation and delivery of letters,postcards, printed matter, sekograms, aerograms,small packages; receiving and payment of money
orders; supply of postal cash (giro) banking
operations; delivery (payment) of pensions andallowances)Ministry of Communication Subsidised services of social importance.
6420 Communication services (transmission by using
international, inter town, local telephone lines,;switchboard services of telephone and telex, datatransmission, line radio broadcasting)Ministry of Communication Services of social importance, controlled because of
a monopoly position of the State enterprise"Lithuanian Telecom".
70 House rent prices of local governments' apartments Local governments Controlled in order to protect consumers from
unreasonably high prices.
9000 Transportation of garbage and liquid sewage, care of
courtyard territoryLocal governments Controlled in order to protect consumers from
unreasonably high prices
6340,
10Maximum tariffs for services provided by customs
intermediatorsCustoms Department under the Ministry of
FinanceControlled in order to protect consumers from
unreasonably high prices
7492 Tariffs for apartment security services (Vilnius,
Klaipëda)Security Police Divisions under Chief Police
CommissariatsServices of specific character, absence of sufficient
competition.
7422 Tariffs for services of legalisation of potential
dangerous equipment, produced in Lithuania orimported, and tariffs for other similar servicesTechnical Supervision Service under the
Ministry of Social Security and LabourServices of specific character, absence of sufficient
competition.WT/ACC/LTU/52
Page 55Code according
HS NACEItems subject to price control Institution applying control Reasons and perspectives for control
12 3 4 5
Tariffs for services on issuing of a number of
publisher of local credit card, a code of drafter of
technical documents and of an assortment number ofcanned foodLithuanian Standards Board under the
Ministry of Public Administration and Local
AuthoritiesServices of specific character, absence of sufficient
competition.
7422 Tariffs for issuing of quality certificates The Competition Council Controlled in order to protect consumers from
unreasonably high prices
851 Tariffs of health care services for persons, supported
by government or local government and provided bygovernment or local government health care
institutionsMinistry of Health Care Controlled in order to protect consumers from
unreasonably high prices
851 Tariffs for paid (private) health care services,
provided by government or local government health
care institutionsMinistry of Health Care Controlled in order to protect consumers from
unreasonably high prices
30.03;
30.04Maximum trade mark ups for medicines Ministry of Health Care Controlled in order to protect consumers from
unreasonably high prices.
523 Retail prices for medicines and medical materials of
necessary assortment (about 350 items)Ministry of Health Care Controlled in order to protect consumers from
unreasonably high prices.
Basic prices of compensated medicine and medicinematerialsMinistry of Health Care Controlled in order to protect consumers from
unreasonably high prices.
- - The prices for standing wood from State-owned
forests and the order of determination of theseprices.Ministry of Environment Governing of State-owned wood.
Tariffs for real estate and registration of the rights
into itMinistry of Environment;
Ministry of AgricultureControlled because of a monopoly position of the
enterprises.
Methods of calculation of the prices for checking
of measuring appliancesState Metrology Service Controlled because of absence of sufficient
competition in the market, services of specific
character.
Tariffs for assaying, marking and issuing thecertificates of quality of precious metals and theirproductsMinistry of Finance Controlled because of absence of sufficient
competition in the market in order to protectconsumers from unreasonably high prices
Tariffs for registration of vehicles Ministry of Inte rior Controlled because of exclusive rights of the
institution
Tariffs for carriage of goods by railway transport Ministr y of Communication Controlled because of dominant position of
enterpriseWT/ACC/LTU/52
Page 56
Code according
HS NACEItems subject to price control Institution applying control Reasons and perspectives for control
12 3 4 5
Tariffs for certification of obligatory conformity
assessment testsThe Competition Council Absence of competition
Prices and tariffs for services of structural
subdivisions of local administrationThe Competition Council Controlled in order to protect consumers from
unreasonably high prices
Tariffs for issuing the certificates of quality ofprecious stonesMinistry of Finance Controlled because of absence of sufficient
competition in the market in order to protectconsumers from unreasonably high prices
Tariffs and prices for services provided by theState Government institutionsThe Competition Council Controlled in order to protect consumers from
unreasonably high prices
Tariffs for providing notary services, preparationof projects of deals, providing of consultations andfor the technical servicesMinistry of Justice Controlled in order to protect consumers from
unreasonably high prices
Tariffs and prices for the goods and servicesprovided by the enterprises of local municipalityExecutive institutions of local municipality Services of social importance, absence of sufficient
competition.
Tariffs and prices for utility services provided to
the populationExecutive Inspections of local municipality Services of social importance, absence of sufficient
competition.WT/ACC/LTU/52
Page 57
Table 3.1:  Licensing in Lithuania (Goods-Related Activities)
Business Activity Licence Required
1. production of guns and their parts, ammunition, explosive
chemicals, explosives, pyrotechnics;  repair of guns unless the lawsprovide otherwiseLicence required for both domestic
and foreign interests.
2. pharmaceutical activity Licence required for both domestic
and foreign interests.
3. growing and selling plants which contain narcotic, psychotropic,
deadly and poisonous substances, also manufacturing, importing,and exporting narcotic and psychotropic substances, precursors andengaging in their wholesale and retail tradeLicences are available only for
domestic interests.
4. production of alcohol products which do not exceed 22 per cent of
ethyl alcohol by volumeLicence required for both domestic
and foreign interests.
5. import of alcohol products to Lithuania, wholesale and retail trade
by alcohol productsLicence required for both domestic
and foreign interests.
6. production, import of tobacco an d tobacco products, wholesale and
retail tradeLicence required for both domestic
and foreign interests.
7. purchasing of non-ferrous metals and its alloys scrap and waste in
LithuaniaLicenses are not necessary when the
scrap metal is bought up not for
sale, but for production.
8. purchasing of ferrous metals scrap and its waste in Lithuania   Licenses are not necessary when the
scrap metal is bought up not forsale, but for production.
9 purchasing and processing of precious metals waste, commercial
activity related with the precious metals and jewelsLicences have been changed into
permits or certificates, for which theprocedure is fully automatic.
10. production of seals, stamps Licence required for both domestic
and foreign interests.
11. production, transportation, wholesale trade, and storage  of
dangerous chemical, nuclear or radioactive materials listed by the
Ministry of Environment;  also collection, decontamination,
storage and landfill of hazardous wasteLicence required for both domestic
and foreign interests.
12. import, export, wholesale and retail trade by the non-packed oil
products listed by GovernmentLicence required for both domestic
and foreign interests.
13. import of pyrotechnics (listed by the Ministry of Interior), civil
weapons and ammunition;  wholesale and retail trade (excludingpistols and revolvers and ammunition thereof for self-defence)Licence required for both domestic
and foreign interests.
14. printing of securities and document forms Licence required for both domestic
and foreign interests.
15. import and production of biological plants protection products and
commerce in such productsLicences have been changed into
permits or certificates, for which theprocedure fully automatic.
16. importation of radionics apparatus and electrical equipment which
can diffuse radio wavesLicences have been changed into
permits or certificates, for which the
procedure is fully automatic.
17. importation of colour copy machines Licences have been changed into
permits or certificates, for which theprocedure is fully automatic.
18 production of undenatured ethyl alcohol and alcohol beverages
which contain more than 22 per cent of ethyl alcohol by volume(this right is given only to State enterprises unless the Law onAlcohol Control provides otherwise)Activities reserved for State and
special enterprises
19 production of, monetary signs and coins, post-stamps Activities reserved for State and
special enterprisesWT/ACC/LTU/52
Page 58
Table 3.2:  Licensing in Lithuania (Services-Related Activities)
Business Activity Licensing Requirements
1. prospecting of natural resources Permit or certificate required for both foreign
and domestic interests. Procedure is fullyautomatic.
2. the exploitation of natural resources Permit or certificate required for both foreign
and domestic interests. Procedure is fully
automatic.
3. repair of sports and hunting firearms, weapons Permit or certificate required for both foreign
and domestic interests. Procedure is fullyautomatic.
4. pharmaceutical activity Business activity licence required for both
foreign and domestic interests.
5. provision of health care services Permit or certificate required for both foreign
and domestic interests. Procedure is fullyautomatic.
6. veterinary practice Permit or certificate required for both foreign
and domestic interests. Procedure is fully
automatic.
7. lawyer practice, unless the laws provide otherw ise Permit or certificate required for both foreign
and domestic interests. Procedure is fullyautomatic.
8. engaging in teaching activities, provided that a certificate
of education recognized by the State is issued uponcompletionBusiness activity licence required for both
foreign and domestic interests.
9. performing State land surveying, geodetic and
topographical worksBusiness activity licence required for both
foreign and domestic interests.
10. provision of passenger transportation services within the
Republic of Lithuania, also international passenger and
cargo transportation services, unless other laws establish
otherwiseBusiness activity licence required for both
foreign and domestic interests.
11. tourism services Permit or certificate required for both foreign
and domestic interests. Procedure is fullyautomatic.
12. organizing of lotteries Business activity license required, available
only for domestic interests.
13. setting up and operating general telecommunications
network, providing telecommunications servicesBusiness activity licence required for both
foreign and domestic interests.
14. establishment and operation of shooting-ranges, shooting-
galleries and hunting shooting-rangesBusiness activity licence required for both
foreign and domestic interests.
15. mediation activity in public turnover of securities or
advisory activity of third parties related to investment in
securitiesPermit or certificate required for both foreign
and domestic interests. Procedure is fully
automatic.
16. energetic activity Permit or certificate required for both foreign
and domestic interests. Procedure is fullyautomatic.
17. provision of shipbroker's services Permit or certificate required for both foreign
and domestic interests. Procedure is fullyautomatic.
18. lockman services Permit or certificate required for both foreign
and domestic interests. Procedure is fullyautomatic.
19. insurance activity Business activity licence required for both
foreign and domestic interests.WT/ACC/LTU/52
Page 59
Business Activity Licensing Requirements
20. research, preservation and restoration of immovable
cultural values, preparation of conditions, projects andprograms for these works; also preservation and restorationof movable cultural values;Permit or certificate required for both foreign
and domestic interests. Procedure is fullyautomatic.
21. towing of ships; rescue and submarine technical works; Permit or certificate required for both foreign
and domestic interests. Procedure is fullyautomatic.
22. bank or credit institution activity Business activity licence required for both
foreign and domestic interests.
23. construction activity Permit or certificate required for both foreign
and domestic interests. Procedure is fully
automatic.
24. Collection, distribution, transportation and delivery of
post dispatches with weight not exceeding 2 kg, postparcels with weight not exceeding 10 kg, registered andestimated post dispatches and parcelsUniversal post services are reserved for State
Post.WT/ACC/LTU/52
Page 60
Table 4(a):  Rates of Stamp Tax Established in  Accordance with Govern ment Resolution No. 1123 of
11 November 1994 (with amendment No. 366 of 31 March 2000, which entered into force on
1 May 2000)
1. For issuing an activity licences for importation and wholesale of 
imported alcohol (for the term of one year):
(a) Vodka and other alcoholic beverages Llt. 80,000 (US$20,000)
(b) Wine (not exceeding 22 per cent of volume concentration of ethyl 
alcohol) and beerLlt. 40,000 (US$10,000)
(c) Beer Llt. 10,000 (US$2,500)
(d) Alcohol products (except alcoholic beverages) Llt. 300 (US$75)
2. For issuing a licence to engage in wholesale of alcohol produced 
in Lithuania (for the term of one year):
(a) Alcoholic beverages Llt. 80,000 (US$20,000)
(b) Alcoholic beverages not exceeding 22 per cent of volume 
concentration of ethyl alcoholLlt. 40,000 (US$10,000))
(c) Beer Llt. 10,000 (US$2,500)
3. For issuing an activity licence for importation of tobacco (for the 
term of one year)Llt. 6,000 (US$1,500)
For issuing an activity licence for importation (and 
wholesale) of tobacco products (for the term of one year)Llt. 15,000 (US$3,750)*
4. For issuing an activity licence for wholesale of tobacco products 
(for the term of one year)Llt. 15,000 (US$3,750)*
5. For issuing an activity  licence for importation and for 
wholesale of imported oil products: petrol, liquid fuel, kerosene, aircraft fuel, diesel fuel and lubricants (for the term of one year)Llt. 120,000 (US$30,000)
6. For issuing a licence to engage in wholesale of oil products 
(for the term of one year)Llt. 120,000 (US$30,000)
7. For issuing a licence to engage in retail trade of oil products 
in each petrol stationLlt. 3,000 (US$750) for each qualify
of petrol, diesel fuel and liquid fuel
8. For issuing a licence to engage in importation/wholesale of motor 
oil.Llt 5,000 (US$1,250)
9. For issuing a licence for wholesale of motor oil Llt 5,000 (US$1,250)
10. For issuing a licence to engage in retail trade of lubricants Llt. 1,000 (US$250)
* additional stamp tax for wholesale trade charged for each additional branch/division – Llt. 3,000 (US$750).
Table 4(b):  Licensing Fees for Pharmaceutical Business Activity
Retail sale of medicine and medicine materials 300 litas
Production and retail sale of medicine and medicine materials 300 litas
Wholesale of medicine and medicine materials 1,000 litas
Production of pharmaceutical products and preparations 800 litas
Rendering of information about medicine 300 litas
Production of narcotics and psychotropic substances and medicine materials 200 litas
Production of psychotropic substances and medicine materials 200 litas
Wholesale, import and export of narcotics and psychotropic substances and medicine
materials300 litas
Wholesale, import and export of psychotropic substances and medicine materials 300 litas
Retail sale of narcotics and psychotropic substances and medicine materials 100 litas
Retail sale, of psychotropic substances and medicine materials 100 litasWT/ACC/LTU/52
Page 61
Table 5:  Fees and Charges for Services Rendered Relating to Importation or Exportation
Description Rates Purpose of taxes
1. Formalities in connection with placement of one
consignment of goods under one of the followingcustoms procedures:To cover expenses for the
acceptance of correspondingdocuments, verification of data,
registration, etc. The number of
documents and the time ofverification and registration isdifferent for different procedures(indicated below). Therefore, the
taxes also are different.
(a) Exportation (including re-exportation) Llt. 22 (Llt. 1 -
US$0.25)
(b) Importation (including re-importation and customs
warehousing)Llt. 33
(c) Temporary admission and temporary exportation Llt. 55
(d) Inward processing and outward processing Llt. 110
2. Issuance of one certificate of origin Llt. 25 To cover expenses of verification
of documents, verification oforigin of goods, issuance ofcertificate of origin
3. Issuance of stickers used for marking of importedalcoholic beverages and tobacco goods (under onerequest)Llt. 20To cover expenses of issuance of
stickers
4. Issuance of permit to carry out formalities inconnection with customs procedures at other customs
office:When an importer or exporter
wants to declare the goods with
Customs office in which his abode
(residence) is not registered, hehas to get the permit from theCustoms operating in his zone.The taxes are different (indicatedbelow) depending on the duration
of permits.
(a) Single Llt. 10
(b) For period not exceeding 3 months Llt. 20
(c) For the period not exceeding 6 months Llt. 60
(d) For the period exceeding 6 months Llt. 80
5. For the security of goods carriage through customs
territory (only for the services of police financed by
state budget)Llt. 0.8 per 1 kilometre To cover the expenses of issuance
of corresponding documents and
for the services of the police
ensuring security of goodscarriage
6. Issuance of permit to import: To cover the expenses of issuance
of permit and for the control ofimport of guns and ammunition(safety reasons)
(a) Shotguns, hunting rifles, its parts arbalets Llt. 70
(b) Shotguns, hunting rifles, its parts arbalets for thecommercial goalsLlt. 6,000
(c) Pistols (revolvers), its parts for the self-defence, for
commercial goalsLlt. 2,000
(d) Ammunition and explosives Llt. 50
(e) Ammunition for commercial goals Llt. 4,000
(f) Sporting firearms Llt. 20
(g) Sporting firearms for commercial goals Llt. 2,000WT/ACC/LTU/52
Page 62
Description Rates Purpose of taxes
(h) Air gains (pistols), gas pistols (revolvers) and
ballones for commercial goalsLlt. 3,000
(i) Colour copy machinery Llt. 40
(j) Colour copy machinery for commercial goals Llt. 4,000 To prevent illegal printing of
counterfeit documents
7. Issuance of permit to export: To cover the expenses of issuance
of permit and for the control ofexport of guns and ammunition(safety reasons)
(a) Shotguns, hunting rifles, its parts arbalets Llt. 70
(b) Shotguns, hunting rifles, its parts arbalets for thecommercial goalsLlt. 6,000
(c) Pistols (revolvers), its parts for the self-defence, for
commercial goalsLlt. 2,000
(d) Ammunition and explosives Llt. 50
(e) Ammunition for commercial goals Llt. 4,000
(f) Sporting firearms Llt. 20
(g) Sporting firearms for commercial goals Llt. 2,000
(h) Air gains (pistols), gas pistols (revolvers) and
balloons for commercial goalsLlt. 3,000
(i) Colour copy machinery Llt. 40
(j) Colour copy machinery for commercial go als Llt. 4,000 for prevention of illegal printing
of counterfeit documents
8. Issuance of permit to wholesale trade, import andexport of narcotic drugs, psyhotropic medicine and theirmedicine substanceLlt. 300 To cover expenses of issuance of
permit and for the control theactivity related to narcotic and
psychotropic substances (to
protect life and health of people,animals and plants)
9. Issuance of permit to wholesale trade, import andexport of psyhotropic medicine and psychotropicmedicine substancesLlt. 300 To cover expenses of issuance of
permit and for the control theactivity related to narcotic andpsyhotropic substances (to protect
life and health of people, animals
and plants)
10. Transportation of nuclear and radioactive materials Llt. 500 To cover expenses of issuance of
permit and for control of safety
11. Import of pyrotechnics remedies, civil guns and itsammunition, except pistols and revolvers for the self-defence and its ammunitionLlt. 5,000 To cover expenses of issuance of
licence and for the control ofenterprises (illegal activity)
12. Issuance of permission to temporary export forprocessingLlt. 221 To cover expenses of issuance of
permit and for the evaluation ofconformity with the conditions
related to this procedure. Because,
in accordance with CustomsCode, any customs procedurewhich can have an economicinfluence, can be performed onlywith Customs permit.WT/ACC/LTU/52
Page 63
Description Rates Purpose of taxes
13. Issuance of permission to temporary import for
processingLlt. 200 To cover expenses of issuance of
permit and for the evaluation ofconformity with the conditionsrelated to this procedure. Because,in accordance with the CustomsCode, any customs procedure
which can have an economic
influence, can be performed onlywith Customs permit.
14. Issuance of license to import, export and transport: To cover expenses of issuance of
licence and for the safety reasons.Below enumerated charges allowsto control the movement of
dangerous chemical materials and
identify their users.
(a) Controlled goods Llt. 120
(b) Dangerous materials according UN classification Llt. 44
(c) Radioactive materials according UN classification Llt. 77
15. Issuance of certificate confirming about the
delivering and import of controlled goodsLlt. 100 To cover expenses of issuance of
licence and for the safety reasons
16. Export of itinerant culture values (older than 50
years) or antiquarian things20 per cent of value National value
17. Export of numismatics, philately, bonistics and
faleristics10 per cent of value National valueWT/ACC/LTU/52
Page 64
Table 6:  Excise Taxes Levied in Lithuania According to Government Resolution No.1515 of
30 December 1998 (with Amendment No. 875 of 30 July 1999) and Amendments to the Law on
Excise Taxes of 21 December 1998, 30 September 1999, 23 December 1999 and 17 February 2000
Commodity
codeCommodity description Taxes  (by percentage of taxable value
or absolute Llt for indicated
measurement unit*)
2207.10.00.0;2208
(except2208.90.69
.1;2208.90.69.3)**Undenatured ethyl alcohol and alcoholic
beverages, except for mead brandy, champagne,
wine, beer and  medicinal preparations with
medicinal herbs containing ethyl alcohol andregistered in the State Medicines RegisterLlt. 0.30 per 1 per cent of an alcoholic
strength by volume per one litre
2208.90.69.1 Mead brandies Llt. 0.12 per 1 per cent of an alcoholic
strength by volume per one litre
Wine (fortified wines including) of an alcoholicstrength by volume not exceeding 13 per centvol:
2204.21.11.0-2204.21.80.0,
2204.29.12.0-
2204.29.75.0,2205.10.10.1,2205.90.10.1Wine of fresh grapes Llt. 0.16 per 1 per cent of an alcoholic
strength by volume per one litre
2204.30,ex2206.00Grape must, other fermented beverages and their
mixturesLlt. 0.12 per 1 per cent of an alcoholic
strength by volume per one litre
Wine (fortified wines including) of an alcoholicstrength by volume of more than 13 per cent
vol, but not exceeding 18 per cent vol:
2204.21.81.0-2204.21.94.0,
2204.29.81.0-2204.29.94.0,2205.10.10.9,2205.90.10.9,Wine of fresh grapes Llt. 0.29 per 1 per cent of an alcoholic
strength by volume per one litre
ex2206.00 Other fermented beverages and their mixtures Llt. 0.16 per 1 per cent of an alcoholic
strength by volume per one litre
2204.21.95.0-
2204.21.99.0,
2204.29.95.0-2204.29.99.0,2205.10.90.0,2205.90.90.0,ex2206.00Wine and other fermented beverages and their
mixtures of an alcoholic strength by volume
exceeding 18 per cent volLlt. 0.38 per 1 per cent of an alcoholic
strength by volume per one litre
2204.10.11.0-
2204.21.10.0,
2204.29.10.0Champagne, sparkling wine and wine with an
excess pressureLlt. 0.25 per 1 per cent of an alcoholic
strength by volume per one litre
2203.00 Beer Llt. 0.40/litre***
2402.20.10.0-2402.20.90.0Filter and filterless cigarettes Llt. 30 per 1,000 units (from 1 March
 2000
2402.10.00.0,2402.90.00.0,2403 ****Packed smoking tobacco and other tobacco
products50
2710.00.27.1-
2710.00.37.0Motor fuel/petrol Llt. 1210 per to n*****WT/ACC/LTU/52
Page 65
Commodity
codeCommodity description Taxes  (by percentage of taxable value
or absolute Llt for indicated
measurement unit*)
2710.00.51.0,2710.00.55.0,2710.00.66.1-2710.00.68.9Jet fuel, kerosene, gas oils (diesel fuel oil),
heavy fuel oilLlt. 560 per ton)*****
2710.00.74.0,
2710.00.76.0,
2710.00.78.0,2710.00.97.1,2714.90.00.1Heavy fuel oil, orimulsion Llt. 20 per ton
2710.00.87.0-
2710.00.96.0,2710.00.97.8Lubricants of all types Llt. 240 per ton
ex1806.20,
ex1806.31,
ex1806.32,
ex1806.90Chocolate and other food preparations
containing cocoa, except cocoa powder and food
preparations containing less than 18 per cent by
weight of cocoa butter10
0901 Coffee 10
7113, 7114,
7116Articles of jewellery and parts thereof, of
precious metal or clad with precious metal,articles of goldsmiths’ or silversmiths’ waresand parts thereof, of precious metals or of cladwith precious metal, articles of natural orcultured pearls, precious or semi-precious
stones-natural, synthetic or reconstructed10
8703.21.10.1,
8703.21.90.2,8703.22.19.1,8703.22.90.2,8703.23.19.1,8703.23.90.2,
8703.24.10.1,
8703.24.90.2,8703.31.10.1,8703.31.90.2,8703.32.19.1,
8703.32.90.2,
8703.33.19.1,8703.33.90.2Luxury motor vehicles, not older than 5 years
(except for special motor vehicles) specified inthe list of State Agency of Competition andConsumer  Protection at the Government ofLithuania15 from price exceeding Llt. 60,000
2716.00.00.0 Electricity 1WT/ACC/LTU/52
Page 66
Commodity
codeCommodity description Taxes  (by percentage of taxable value
or absolute Llt for indicated
measurement unit*)
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,
9504.40.00.1Publications of erotic and violent character 75
0402.10.91.0, Sugar, including sugar contained in food 0.01 Llt per 1 per cent of sugar per 1
kg of
0402.10.99.0, preparations preparation
0402.29.15.0,
0402.29.19.0,
0402.29.91.0,
0402.29.99.0,
0402.99.11.0,
0402.99.19.0,
0402.99.31.0,
0402.99.39.0,
0402.99.91.0,
0402.99.99.0,
0404.10.26.0,
0404.10.28.0,
0404.10.32.0,
0404.10.34.0,
0404.10.36.0,
0404.10.38.0,
0404.10.72.0,
0404.10.74.0,
0404.10.76.0,
0404.10.78.0,
0404.10.82.0,
0404.10.84.0,
0406.10.20.1,
0406.10.80.1,
1701.11.10.0,
1701.11.90.0,
1701.12.10.0,
1701.12.90.0,
1701.91.00.0,
1701.99.10.0,
1701.99.90.0,
1702.20.10.0,
1702.20.90.0,
1702.90.60.0,WT/ACC/LTU/52
Page 67
Commodity
codeCommodity description Taxes  (by percentage of taxable value
or absolute Llt for indicated
measurement unit*)
1702.90.71.0,
1702.90.75.0,
1702.90.79.0,
1702.90.99.0,
1704.10.11.0,
1704.10.19.0,
1704.10.91.0,
1704.10.99.0,
1704.90.30.0,
1704.90.51.0,
1704.90.55.9,
1704.90.61.2,
1704.90.61.3,
1704.90.61.4,
1704.90.65.0,
1704.90.71.0,
1704.90.75.0,
1704.90.81.0,
1704.90.99.0,
1806.10.20.0,
1806.10.30.0,
1806.10.90.0,
1806.20.10.0,
1806.20.30.0,
1806.20.50.0,
1806.20.70.1,
1806.20.70.9,
1806.20.80.1,
1806.20.80.9
1806.20.95.1##,
1806.31.00.2,
1806.31.00.3,
1806.31.00.7,
1806.31.00.8,
1806.32.10.2,
1806.32.10.7,
1806.32.90.4,
1806.32.90.6,
1806.90.11.2,
1806.90.11.6,
1806.90.19.2,
1806.90.19.7,
1806.90.31.2,
1806.90.31.6,
1806.90.39.2,
1806.90.39.6,
1806.90.50.2,
1806.90.50.6,
1806.90.60.1,
1806.90.60.3,
1806.90.60.6,
1806.90.60.8,
1806.90.70.2,
1806.90.70.6,WT/ACC/LTU/52
Page 68
Commodity
codeCommodity description Taxes  (by percentage of taxable value
or absolute Llt for indicated
measurement unit*)
1806.90.90.2,
1806.90.90.7,
1901.20.00.1,
1901.90.99.1,
1901.90.99.2,
1901.90.99.3,
1901.90.99.4,
1905.20.10.0,
1905.20.30.0,
1905.20.90.0,
1905.30.11.0,
1905.30.11.1,
1905.30.19.0,
1905.30.19.1,
1905.30.30.0,
1905.30.30.1,
1905.30.51.1,
1905.30.59.1,
1905.30.99.1,
1905.30.99.3,
1905.90.60.1,
2006.00.38.0,
2006.00.10.0,
2006.00.31.0,
2007.91.10.0,
2007.99.10.0,
2007.99.20.0,
2007.99.31.0,
2007.99.33.0,
2007.99.35.0,
2007.99.39.1,
2007.99.39.9,
2009.11.91.0,
2009.19.91.0,
2009.20.91.0,
2009.30.51.0,
2009.30.91.0,
2009.40.91.0,
2009.60.71.0,
2009.60.79.0,
2009.70.91.0,
2009.80.61.0,
2009.80.83.0,
2009.80.84.0,
2009.80.86.0,
2009.90.31.0,
2009.90.71.0,
2009.90.92.0,
2009.90.94.0,
2101.12.92.1,
2101.12.92.2,
2101.12.92.3,
2101.12.92.4,WT/ACC/LTU/52
Page 69
Commodity
codeCommodity description Taxes  (by percentage of taxable value
or absolute Llt for indicated
measurement unit*)
2101.12.92.5,
2101.12.98.1,
2101.12.98.2,
2101.12.98.3,
2101.12.98.4,
2101.12.98.5,
2101.20.91.1,
2101.20.91.2,
2101.20.91.3,
2101.20.91.4,
2101.20.91.5,
2101.30.99.1,
2101.30.99.2,
2101.30.99.3,
2101.30.99.4,
2101.30.99.5,
2106.90.98.7##,
2105.00.10.0,
2105.00.91.0,
2105.00.99.0,
2106.90.59.0,
2106.90.98.7,
2309.10.90.0
3303.00.10.1, 10 Llt per 1 liter of preparation
3303.00.90.1,
3304.99.00.1,
3307.10.00.1,
3307.90.00.1,Liquid perfumes, cosmetic and toilet
preparations and other preparations, whichcontain ethyl alcohol and due to their lowprice may be used as substitutes or alcoholicbeverages
1302.19.30.1,
2008.20.11.1,
2008.20.19.1,
2008.20.31.1,
2008.20.39.1,
2008.30.19.1,
2008.30.39.1,
2008.40.19.1,
2008.40.29.1,
2008.40.31.1,
2008.40.39.1,
2008.50.19.1,
2008.50.39.1,
2008.50.51.1,
2008.50.59.1,
2008.60.19.1,
2008.60.39.1,
2008.70.19.1,
2008.70.19.1,
2008.70.39.1,
2008.70.51.1,
2008.70.59.1,
2008.80.19.1,
2008.80.19.1,WT/ACC/LTU/52
Page 70
Commodity
codeCommodity description Taxes  (by percentage of taxable value
or absolute Llt for indicated
measurement unit*)
2008.80.39.1,
2008.92.16.1,
2008.92.18.1,
2008.92.36.1,
2008.92.38.1,
2008.99.19.1,
2008.99.21.1,
2008.99.23.1,
2008.99.32.1,
2008.99.33.1,
2008.99.34.1,
2008.99.38.1,
2008.99.40.1,
2103.90.90.3,
2106.90.20.1,
2106.90.92.7,
2106.90.98.8,
2207.20.00.1,
2207.20.00.9,
3302.10.10.1,
3302.10.40.2,
3302.10.90.2,
3306.90.00.1,
3824.90.95.1
* The taxable value shall be:- -sale price free from excise tax and VAT of commodities produced in Lithuania;
- -customs value, including duties, of imported commodities.
** Commodity codes are presented according to the HS (1999) codes.
*** Excise tax - Llt. 0.2 per litre - shall be levied on the first 100 thousand decalitres of domestically-
produced or imported beer by beer manufacturing companies producing 800 thousand decalitres peryear (this provision is applied from 1 January 2000).
**** Excise tax shall not be levied on tobacco (Code 2403.10.90.1) imported by the joint-stock company
“Philip Morris Lietuva”.  Only one producer of tobacco (Code 2403.10.90.1) operates in Lithuania
currently, but if the number of such producers would increase on all of them the excise tax will not be
levied.  In the case when imported tobacco in this company is used not for production of cigarettes, but
for other purposes, the excise tax shall be levied.
***** As from 1 April 2000 (under the Amendment to the Law on Excise Taxes of 17 February 2000), excise
tax is not levied on any enterprise (domestic or foreign) having a licence to supply jet fuel (HS code
2710.00.51.0) to enterprises transporting passengers or cargo in international air traffic
# medicines with herbs (domestically-produced and imported).## excise is not adjusted for sugar syrup with sorbitol.WT/ACC/LTU/52
Page 71
Table 7:  VAT Exemptions in Accordance with the Amendment No.VIII-451
to the Law on Value Added Tax of 14 October 1997 and No. VIII-557 of 9 December 1997
1 health supervision services rendered by the pub lic and budgetary institutions of the State and
municipalities health supervision and veterinary services rendered by the institutions of the Stateveterinary service;medicines (including veterinarian);
medical equipment;
materials, used for medicines production;medicine goods.
2 social services rendered by kindergartens and day car e centres, old and disabled peoples board and lodging
3 training, science, studies services rendered by education, science and studies institutions, registered
according the order established by the Government;
non-commercial culture services listed by the Government;
4 post services (except sending forward the parcels and the telecommunication services and postage stamps
and envelopes);
5 financial services listed by the Government and rendered by the insurance, banks and other credit unions
institutions;turnover of securities and lotteries;
6 coffins;
funeral wreaths;temporary tombstones;burying services;
7 printing, publishing and distribution of magazines (listed by the Government), newspapers, books (except
editions, which Journalists and Editors Commission for Ethics recognised among the categories having
erotic and violent character);news-print;
8 services and actions, rated by consular and stamp taxes;
local, State levies and taxes included in the State and municipalities budgets or special accounts opened infisc or in the privatization funds;
9 State property being privatized;
10 works and services done for traditional Lithuanian religious communities and paid from sacrificed means;
11 rent (more than 2 months) of flats and houses;
12 rent of land;
13 services rendered by traditional Lithuanian religious communities and paid by sacrificed means, traditional
handicrafts for which the special commission of handicraft experts gave such status;
14 passenger transport services according certain routes defined by the Ministry of Transport or municipalities;
15 levies for sea ports, airports, flights ruling and aeronavigation services;
16 construction of apartments; renovation, heating and projecting works; including construction of engineering
networks and territory improvement financed from State or municipalities budgets, soft credits provided byState or special State funds;
17 goods with UNICEF mark according the list formed by the Government;
18 restoration or conservation of culture monuments and heritage financed from the State or municipalities
budgets, also from sacrificed means or received as support;
19 exported goods (including returned to abroad temporary imported goods for processing) (zero VAT tariff);
20 transportation of exported goods when final point is outside Lithuanian customs territory; also all services
related with foreign cargo transportation by transit through territory of Lithuania (zero VAT tariff);
21 freight, exploitation, repairmen, agency of ships and planes transporting goods and passengers by
international routes (zero VAT tariff);
22 goods imported to bonded warehouses, duty-free shops, free economic zones and free warehouses;
23 services provided by enterprises, institutions and organizations outside Lithuania (zero VAT tariff);
24 goods and services for which directly paid residents of foreign countries and which are used for the
production of goods for export or reexport (zero VAT tariff);
25 imported goods received as charity (humanitarian aid);
26 imported by natural persons (passengers) if the quantity of imported goods is permitted to import without
customs duties;WT/ACC/LTU/52
Page 72
27 goods transported by diplomatic and consular representatives, also by international organizations for the
official activity of mission, if VAT exemptions are foreseen in the agreements between theseinternational organizations and the Republic of Lithuania.;
28 received as support for budget institutions;
29 parcels sent by mail which weight is not more than 31.5 kg and value up to 400 Litas;
30 goods related with defence and safety of the Republic of Lithuania according the single cases defined by the
Government;WT/ACC/LTU/52
Page 73
Table 8:  Conformity of Lithuania’s current provisions with the WTO Agreement on Customs
Valuation on an article by article basis
Agreement on
Implementation of
Article VII of the
GATT 1994The Order of Customs Valuation of Goods
approved by Government Resolution
No.748 of 9 June 1999 of Lithuania (which
entered into force on 1 April 2000)The Customs Code of Lithuania
(entered into force 1 January 1998)
and other relevant laws (reference
to Articles 11 and 12)
Article 1 Section II
Application of transaction value Paragraphs
4-9 conform to the paragraphs 1(a)-1(d), and2(a)-2(c) of Article 1 of the WTOAgreementChapter VI
Value of goods for customs
purposes
Article 30Paragraphs 1-5 conform to the
respective Article of WTO
Agreement.
Article 2 Section III
Application of other methods of customs
valuation  Paragraphs 18.1-18.5 conform toparagraphs 1(b), 2 and 3 of the respective
Article of the WTO Agreement.Chapter VI
Value of goods for customs
purposes
Article 31
Paragraphs 1 and 2(1) conform to
paragraph 1(a) of the respectiveArticle of WTO Agreement.
Article 3 Section III
Application of other methods of customs
valuation
Paragraphs 19.1-19.5 conform to paragraphs
1(b), 2 and 3 of the respective Article of theWTO Agreement.Chapter VI
Value of goods for customs
purposes
Article 31
Paragraphs 1 and 2(2) conform to
paragraph 1(a) of the respectiveArticle of WTO Agreement.
Article 4 Chapter VI
Value of goods for customs
purposes
Article 31
Paragraph 1 conforms to the
respective Article of WTOAgreement.WT/ACC/LTU/52
Page 74
Agreement on
Implementation of
Article VII of the
GATT 1994The Order of Customs Valuation of Goods
approved by Government Resolution
No.748 of 9 June 1999 of Lithuania (which
entered into force on 1 April 2000)The Customs Code of Lithuania
(entered into force 1 January 1998)
and other relevant laws (reference
to Articles 11 and 12)
Article 5 Section III.
Application of other methods of customs
valuation
Paragraphs 21-22  conform the respective
Article of WTO Agreement.
Note:  Draft amendment of paragraph 21 of
Government Resolution No. 748 has been
prepared in order to make it fully conformwith paragraphs 1(a) and 1(b) of the Article5 of the WTO.  Paragraphs 3-5 of theMethodology of Application of Certain
Provisions of Procedure on Customs
Valuation approved by the Order ofCustoms Department No. 395 of25 September 2000 conforms to paragraphs2-4 of the Note to Article 5 of theInterpretative Notes of the WTOChapter VI
Value of goods for customs
purposes
Article 31Paragraph 2(3) conforms to
paragraph 1(a) of the respective
Article of WTO Agreement.
Paragraph 3 provides reference tothe implementing provisions.
Article 6 Section III
Application of other methods of customs
valuation
Paragraph 24.1 conforms to paragraph 2 of
the Article 6 of WTO Agreement.Chapter VI
Value of goods for customs
purposes
Article 31
Paragraph 2(4) conforms to
paragraph 1 of the respectiveArticle of WTO Agreement.
Article 7 Section III
Application of other methods of customs
valuation
Paragraph 25 conforms to paragraph 1 of
Article 7 of the WTO Agreement.
Section V
Final provisions  Paragraph 59 conforms to
paragraph 3 of the respective Article of theWTO Agreement.Chapter VI
Value of goods for customs
purposes
Article 32
Paragraphs 1-2 conform to
paragraphs 1-2 of the respectiveArticle of the WTO Agreement.WT/ACC/LTU/52
Page 75
Agreement on
Implementation of
Article VII of the
GATT 1994The Order of Customs Valuation of Goods
approved by Government Resolution
No.748 of 9 June 1999 of Lithuania (which
entered into force on 1 April 2000)The Customs Code of Lithuania
(entered into force 1 January 1998)
and other relevant laws (reference
to Articles 11 and 12)
Article 8 Section IV
Calculation of the costs and charges which,
in accordance with the transaction value
method, shall be added to the price actuallypaid or payable for the imported goodsParagraph 27 conforms to paragraph 1(b)(ii) of the Article 8 of the WTOAgreement
Paragraph 6 of the Methodology of
Application of Certain Provisions ofProcedure on Customs Valuation approvedby the Order of Customs Department No.
395 of 25 September 2000 conforms to
paragraph 1(b)(ii)4 of the Note to Article 8of the Interpretative Notes of the WTO
Paragraph 28 conforms to paragraph 1
(b)(iv) of the  Article 8 of the WTO
Agreement.  Paragraph 7 of the
Methodology of Application of CertainProvisions of Procedure on CustomsValuation approved by the Order ofCustoms Department No. 395 of 25September 2000 conforms to paragraph 3 of
the Note to Article 8 of the Interpretative
Notes of the WTO.  Paragraphs 29-37conform to paragraph 1 (c) of the Article 8of the WTO Agreement.  Paragraphs 38-43conform to paragraph 2 of the Article 8 ofthe WTO AgreementChapter VI
Value of goods for customs
purposes
Article 33Paragraphs 1-3 conform to the
respective Artcile of the WTO
Agreement.
Article 9 Section V
Final provisions  Paragraphs 48-50 conform
to the respective Article of the WTOAgreement.Chapter VI
Value of goods for customs
purposes
The Article 36  conforms to the
respective Article of WTO
Agreement.
Article 10 Chapter II
The rights and obligations of
persons with regard to theimplementation of the provisions ofthe Code
The Article 8 conforms to the
respective Article of WTOAgreement.WT/ACC/LTU/52
Page 76
Agreement on
Implementation of
Article VII of the
GATT 1994The Order of Customs Valuation of Goods
approved by Government Resolution
No.748 of 9 June 1999 of Lithuania (which
entered into force on 1 April 2000)The Customs Code of Lithuania
(entered into force 1 January 1998)
and other relevant laws (reference
to Articles 11 and 12)
Article 11 Draft amendment of paragraph 60 of
Government Resolution No. 748 (theamendment has been submitted to the
Government for its consideration, expected
time of approval – October 2000).Chapter XXII
Appeals  Right to appeal against
decissions taken by the customs
authorities is provided in thisChapter.  The provisions of thisChapter conform to the respectiveArticle of the WTO Agreement.
Article 7 of the Code of
Administrative Infringements.
Article 12 The Law on the Order of
Publishing and Entry into Force ofLegal Acts of 6 April 1993.
Article 13 Government Resolution No. 748 of
9 June 1999Paragraph 2.2 conforms to the respective
Article of the WTO Agreement.Chapter XI
Customs procedures
Article 73
Paragraph 1 conforms to the
respective Article of WTOAgreement.
Article 199
Paragraph 2 provides reference to
the implementing provisions.
Article 15 Section I
General provisions  Paragraph 2 conforms
to sub-paragraphs 1(c), 2(a), 2(b), 2(d), andparagraph 3 of the Article 15 of the WTOAgreement.
Paragraph 3 conforms to sub-paragraph 2(c)
of the Article 15 of the WTO Agreement.
Section IIApplication of transaction value method
Paragraph 9 conforms to paragraph 5 of the
Article 15 of the WTO Agreement.
Section IIIApplication of other methods of customs
valuation.
Paragraphs 18.4 and 19.4 conform to sub-
paragraph 2(e) of the  Article 15 of theWTO Agreement.Chapter VI
Value of goods for customs
purposes
Article 29This Article conforms to sub-
paragraph 1(a) of the respective
Article of the WTO Agreement.
Article 30Paragraph 8 includes provisions of
paragraph 4 of the respective
Article of WTO Agreement.WT/ACC/LTU/52
Page 77
Agreement on
Implementation of
Article VII of the
GATT 1994The Order of Customs Valuation of Goods
approved by Government Resolution
No.748 of 9 June 1999 of Lithuania (which
entered into force on 1 April 2000)The Customs Code of Lithuania
(entered into force 1 January 1998)
and other relevant laws (reference
to Articles 11 and 12)
Article 16 Section V
Final provisions  Paragraph 59 conforms to
the respective Article of the WTO
Agreement.Chapter II
The rights and obligations of
persons with regard to the
implementation of the provisions ofthe Code
Article 4
Paragraph 3 conforms to the
respective Article of WTOAgreement.WT/ACC/LTU/52
Page 78
Table 9.1:  Rates of Export Duties Approved by Government Resolution No. 2 of 4 January 2000
Code of group of goods*Description of group of goods Tariff rate**
4101, 4103 Raw hides and skin 15 per cent
* Codes of groups (goods) are presented according to the EEC Harmonized Commodity Description and
Coding System.
** Goods without codes herein are subject to a zero rate customs duties.
Table 9.2:  Rates of Export Duties under Free Trade Agreements
Code of group of goods Description of group of goods Tariff rate ( per cent)
for particular country
4101 10-4101 21,4103Raw hides and skins of bovine animals EU, EE, LV, CZ, SK,
Sl, TR, Hu – 15
4401 22-4101 40 Other hides and skins of bovine animals EU, CZ, SK, Sl, TR,
Hu – 15
EU - European Union; EE - Estonia; LV - Latvia; CZ - Czech Republic; SK - Slovakia; Sl - Slovenia;  TR –Turkey;  Hu – HungaryWT/ACC/LTU/52
Page 79
Table 10:  List of Foodstuffs to be Checked by official Control Authorities under Importation
Description of products HS Code Controlling
Institution*
Meat and edible meat sub-products 02.01-02.08 (except 0206.10.10.0;
0206.22.10.0; 0206.29.10; 0206.30.10.0;
0206.41.10.0; 0206.49.10; 0206.80.10.0;
0206.90.10.0); 0209 (except ex0209.00(fresh, chilled or frozen)); 02.10V
Fish and crustaceans, molluscs and other
aquatic invertebrates03.01-03.04 (except 0301.10); 03.05;
03.06(except ex03.06 (fresh, chilled orfrozen)); 03.07 (except ex03.07(fresh,chilled or frozen))V
Milk and milk products; birds eggs; natural
honey; edible products of animal origin, notelsewhere specified or included04.01-04.06 (except 0402.29.11.0);
0407.00-0410.00.00.0 (except0408.11.20.0; 0408.19.20.0; 0408.91.20.0;
0408.99.20.0)V
Guts, bladders and stomachs of animals (other
than fish), whole and pieces thereof0504.00.00.0(except ex0504.00.00.0(fresh,
chilled or frozen))V
Edible vegetables and some root crops and
tuber crops07.01 (except 0701.10.00.00);  0702.00.00;
07.03 (except 0703.10.11.0);  07.04 -07.09;07.10;07.11-07.12 (except 0712.90.11.0);07.13-07.14 (except 0713.10.10.0;
0713.33.10.0; 0713.90.10.0; ex07.14
(frozen))HP
H
HP
Edible fruit and nuts; peel and husk of citrusfruit or melons08.01-08.06 (ex0803.00(fresh);
ex08.04(fresh); ex08.06(fresh)); 08.07-08.10;08.11-08.12;08.13;  0814.00.00. (except ex0814.00.00
(frozen))HP
H
HP
H
Coffee, tea, mate and spices 09.01-0903.00.00.0 (except positions
0901.90.10.0);09.04-09.08 (except 0904.20.31.0);09.09-09.10HP
H
HP
Grain 10.01-10.08
(except these positions:1001.90.10.0; 1001.90.91.01003.00.10.0; 1005.10;
1006.10.10.0; 1007.00.10.0;
1008.30.00.0)ex10.01-10.08 (for fodder)HP
-
Milled production. malt starch; inulin; wheat
gluten1101.00-11.07
(except these positions:11.05; 1107.20.00.0);11.08-1109.00.00.0
ex1101.00-1109.00.00.0 (for fodder);
ex11.08 (for the technical or industrial use,except production of foodstuffs)HP
H
-
-WT/ACC/LTU/52
Page 80
Description of products HS Code Controlling
Institution*
Oil seeds and fruits; various corns. seeds andfruits; plants used in industry and medicine;straws and fodder1201.00-12.02 (except1201.00.10.0;
1202.10.10.0);1203.00.00.0-12.10 (except 1204.00.10.0;1205.00.10.0; 1206.00.10.0; 1207.10.10.0;1207.20.10.0; 1207.30.10.0;
1207.40.10.0; 1207.50.10.0; 1207.60.10.0;
1207.91.10.0; 1207.92.10.0; 1207.99.10.0;12.09);12.12ex1201.00-12.08 (for fodder)HP
-
Shellac, gums resins, vegetable saps and
extracts1301.20.00.0; 1302.13.00.0;
1302.19.30; 1302.20;
ex1302.31.00.0 (food additive)H
H*
Animal or vegetable fats, oils and their
fractions. edible mixtures or preparations;
vegetable or animal waxes1501.00-1502.00 (except 1501.00.11.0;
1502.00.10.0)
15.07-15.15(except these positions:1507.10.10.0; 1507.90.10.0;1508.10.10.0; 1508.90.10.0;1511.10.10.0; 1511.90.91.0;
1512.11.10.0; 1512.19.10.0;
1512.21.10.0; 1512.29.10.0;1513.11.10.0; 1513.19.30.0;1513.21.11.0; 1513.21.19.0;1513.29.30.0; 1514.10.10.0;1514.90.10.0; 1515.19.10.0;
1515.21.10.0; 1515.29.10.0;
1515.30.10.0; 1515.50.11.0;1515.50.91.0; 1515.90.21.0;1515.90.31.0; 1515.90.40.0;1515.90.60.0);1516.10
1516.20-15.17 (except 1516.20.10.0;
1516.20.95.0)V
H
V
H
Meat products, fish or crustaceans, molluscsor other aquatic invertebrates16.01-16.05 V
Sugar and sugar confectionery 17.01-17.04 (except ex1701.99.10
(chemical reagent);ex1702.11.00.0(chemical reagent);ex1702.30.51.0(chemical reagent);
ex1702.50.00.0(chemical reagent);
ex1702.90.10.0(chemical reagent)1704.90.55.1)ex1704.90.81 (foodstuffs for specialpurpose)ex17.03(for fodder)H
H
-
Cocoa and Cocoa products 1801.00.00.0;
18.03-18.06
(except 1806.31.00.2; 1806.31.00.3;1806.32.90.2; 1806.32.90.3; 1806.90.60.1;1806.90.60.2; 1806.90.60.3; 1806.90.60.4)HP
H
V
Corn, flour, starch or milk products; flourconfectionery19.01-19.05 (except 1901.10.00.0;
1905.90.30.0)H
Products of vegetables, fruit, nuts and other
edible parts of plants20.01-20.09
(except 20.03;2005.10.00.0; 2007.10)H
HP
HWT/ACC/LTU/52
Page 81
Description of products HS Code Controlling
Institution*
Various food products 21.01-21.04; 21.06
(except these positions:ex2102.20.19.0 (for fodder);ex2102.20.90.0(for fodder)2104.20.00.0; 2106.10.20.2; 2106.10.80.2;
2106.90.92.2; 2106.90.98.2;
2106.10.20.1; 2106.10.80.1; 2106.90.92.1;2106.90.98.1;ex21.06 (food additive))2105.00H
H*
-
H*
V
Alcoholic and non-alcoholic beverages andvinegar22.01-2209.00 (except 2208.90.69.3) H
Salt, sulphur, earths and stone, plastering
materials, lime and cement2501.00.91.0 H
Inorganic chemicals; organic and inorganic
compounds of precious metals, of rare-earth
metals, of radioactive elements or of isotopesex2803.00; ex2804.21.00.0-2804.40.00.0;
ex28.06; ex2807.00.10.0; ex2809.20.00.0;
ex2810.00.90.0; ex28.11; ex28.12;ex2814.20.00.0; ex28.15; ex2816.10.00.0;ex28.18; ex28.21; ex2825.90.11.0;ex2825.90.19.0; ex2825.90.80.0;ex2827.20.00.0; ex2827.31.00.0;
ex2827.39.10.0; ex2827.39.90.0;
ex2832.10.00.0; ex2832.20.00.0;ex2833.11.00.0; ex2833.19.00.0;ex2833.22.00.0; ex2833.29;ex2834.10.00.0; ex2834.21.00.0;
ex2834.29.90.0; ex28.35; ex2836.30.00.0;
ex2836.40.00.0; ex2836.50.00.0;ex2836.99.11.0; ex2836.99.18.0;ex2837.20.00.0; ex2839.19.00.0;ex2839.90.00.0; ex28.40; ex2842.10.00.0(food additives)H*
Organic chemicals ex29.01-ex2940.00 (food additives) H*
Pharmaceutical products ex3002.90.50.0 (for use in the production
of foodstuffs)H*
Tanning or dying extracts; tannins and their
derivatives; dyes, pigments and other
colouring matter; paints and varnishes; puttyand other mastics; inks.ex3203.00 (food additives or raw
materials, designed for use in the
production of foodstuffs); ex32.04(foodadditives); ex32.06(food additives)H*
Essential oils, mixtures of flavouring
substances (resinoids), liquid perfumes,cosmetics and toilet preparationsex33.01(food additives); 3302.10(food
additives)H
Albumins; modified starches;
glues; ferments (enzymes)3501.10.90.0; 3502.11.90.0; 3502.19.90.0;
3502.20.91.0; 3502.20.99.0; 3502.90.70.0;3503.00.10.0;
ex3504.00.00.9 (for the production of
foodstuffs);ex3505.10.50.0 (food additives);ex3505.10.90.0 (food additives)V
H*
H*
* H - State control agencies under the Ministry of Health Care (Nutrition Centre, etc.)
H* - State control agencies under the Ministry of Health Care (Nutrition Centre, etc.), if there is an 
indication in the suppliers declaration of conformity, that the product is foodstuff for special purpose, food additive or is used for the production of foodstuffs.V - State Veterinary ServiceWT/ACC/LTU/52
Page 82
P - State Plant Protection Service
“-” - State control agencies under the Ministry of Health  Care (Nutrition Centre, etc.) do not control these 
products.WT/ACC/LTU/52
Page 83
Table 11(a):  List of Products of Animal Origin Subject to Veterinary Inspection
HS Code Description
0502 Pigs, hogs or boars bristles and hair; badger hair and other brush making hair; waste of
such bristles or hair
0503 Horsehair and horsehair waste, whether or not put up as a layer with or without
supporting material
0505 Skins and other parts of birds, with their feathers or down, feathers and parts of feathers
(whether or not with trimmed edges) and down, not further worked than cleaned,disinfected or treated for preservation; powder  and waste of feathers or parts of feathers
0506 Bones and horn-cores, unworked, defatted, simply prepared (but not cut to shape),
treated with acid or degelatinised; powder and waste of these products
0507 Ivory, tortoise-shell, whalebone and whalebone hair, horns, antlers, hooves, nails, claws
and beaks, unworked or simply prepared but no t cut to shape; powder and waste of these
products
0508 Coral and similar materials, unworked or simply prepared but not otherwise worked;
shells of molluscs, ceustaceans or echinoderms and cuttle-bone, unworked or simplyprepared but not cut to shape, powder and waste thereof
0509 Natural sponges of animal origin
0510 Ambergris, castereum, civet and musk; cantharides; bile, whether or not dried; glands
and other animal products used in the prep aration of pharmaceutical products, fresh,
chilled, frozen or otherwise provisionally preserved
0511 Animal products not elsewhere specified or included; dead animals of Chapter 1 or 2,
unfit for human consumption
0511.10.00 Bovine semen
Other:
Fish waste
Sinews or tendons
Bovine embryos
3501 Casein, caseinates and other casein derivatives; casein glues:
4101 Raw hides and skins of bovine or equine animals (fresh, or salted, dried, limed, pickled
or otherwise preserved, but not tanned, parchment-dressed or further prepared), whetheror not dehaired or split:
4102 Raw skins of sheep or lambs (fresh, or salted, dried, limed pickled or otherwise
preserved, but not tanned, parchment-dressed or further prepared), whether or not withwool on or split, other than those excluded by note 1 (c) to this chapter:
4103 Other raw hides and skins (fresh, or salted, dried, limed, pickled or otherwise preserved,
but not tanned, parchment-dressed or further prepared), whether or not dehaired or split,
other than those excluded by note 1 (b) or 1 (c) to this chapter:
4104 Leather of bovine or equine animals, without hair on, other than leather of heading
No.4108 or 4109:
4105 Sheep or lamb skin leather, without wool on, other than leather of heading No.4108 or
4109:
4106 Goat or kid skin leather, without hair on, other than leather of heading No.4108 or 4109:
4107 Leather of other animals, without heir on, other than leather of heading No.4108 or 4109:
5101 Wool, fine or coarse animal hair; horsehair yarn and woven fabric:
5102 Fine or coarse animal hair, not carded or combed:
5103 Waste of wood or of fine or coarse animal hair, including yarn waste but excluding
garnetted stock:
5104 Garnetted stock of wool or of fine or coarse animal hair:
5105 Wool and fine or coarse animal hair, carded or combed (including combed wool in
fragments):WT/ACC/LTU/52
Page 84
Table 11(b):  Goods of Vegetable Origin Subject to Quarantine Inspection
HS code Description
06.01 bulbs, tubers, tuberous routs, corms, dormant in growth or in flower, chicory plants and roots
other than roots of heading No. 12.12*
06.02 other live plants (including their rots), cuttings and slips, mushroom spawn*
06.03 cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes, fresh,
dried, dyed, bleached, impregnated or otherwise prepared*
06.04 foliage, branches or other parts of plants, without flowers or flower buds, and grasses, mosses
and lichens, being goods of a kind suitable for bouquets or for ornamental purposes, fresh,
dried, dyed, bleached, impregnated or otherwise prepared*
07.01 potatoes, fresh or chilled*
07.02 tomatoes, fresh or chilled*
07.03 onions, garlic, shallots, leeks and other alliaceous vegetables, fresh or chilled*
07.04 cabbages, cauliflowers, kohlrabi, kale and similar edible brassicas, fresh or chilled
07.05 lettuce and chicory fresh or chilled
07.06 carrots, turnips, salad beetroot, salsify, celer iac, radishes and similar edible roots, fresh or
chilled*
07.07 cucumbers and gherkins, fresh or chilled*
07.08 leguminous vegetables, including unshelled, fresh or chilled*
07.09 other vegetables, fresh or chilled*
07.11 vegetables provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur
water or in other preservative solutions), but un suitable in that state for immediate consumption
07.12 dried vegetables, whole, cut, sliced, broken or in powder, but not further prepared
07.13 dried leguminous vegetables, unshelled, whether or not skinned or split*
07.14 manioc, arrowroot, salep, Jerusalem artichokes, sweet potatoes and similar roots and tubers
with high starch or inulin content, fresh or dried, whether or not sliced or in the form of pellets,sago pith*
08.01 coconuts, Brazil nuts and cashew nuts, fresh or dried, whether or not shelled or peeled*
08.02 other nuts, fresh or dried, whether or not shelled or peeled*
08.03 bananas, including plantains, fresh or dried*
08.04 dates, figs, pineapples, avocados, guavas, mangoes and mangosteens, fresh or dried*
08.05 citrus fruit, fresh or dried*
08.06 grapes, fresh or dried*
08.07 melons (including watermelons) and papaws (papayas), fresh*
08.08 apples, pears and quinces, fresh*
08.09 apricots, cherries, peaches (including  nectarines), plums and sloes, fresh*
08.10 other fruit (berries), fresh*
08.13 fruit, dried, other than that of headings Nos. 08.01-08.06; mixtures of nuts or dried fruits of this
Chapter
09.01 coffee, whether or not roasted or decaffein ated; coffee husks and skins; coffee substitutes
containing coffee in any proportion
09.02 tea, whether or not flavoured
09.03 mate
09.09 seeds of anise, badian, fennel, coriander, cumin, caraway or juniper*
09.10 ginger, saffron, turmeric (curcuma), thyme, bay leaves, curry and other spices
10.01 wheat and meslin*
10.02 rye*
10.03 barley*
10.04 oats*
10.05 maize (corn)*
10.06 rice*
10.07 grain sorghum*
10.08 buckwheat, millet and canary seed; other cereals*
11.01 wheat or meslin flourWT/ACC/LTU/52
Page 85
HS code Description
11.02 cereal flours other than of wheat or meslin
11.03 cereal groats, meal and pellets
11.04 cereal grains otherwise worked (for example, hu lled, rolled, flaked, pearled, sliced or kibbled),
except rice of heading No. 10.06; germ of cereals, whole, rolled, flaked or ground
11.06 flour and meal of the dried leguminous vegetables of heading No. 07.13, of sago or of roots of
tubers of heading No. 07.14; flour, meal and powder of the products of Chapter 8
11.07 malt, whether or not roasted
12.01 soya beans, whether or not broken*
12.02 ground-nuts, not roasted or otherwise cooked, whether or not shelled or broken*
12.03 Copra
12.04 linseed, whether or not broken*
12.05 rape seeds, whether or not broken*
12.06 sunflower seeds, whether or not broken*
12.07 other oil seeds and oleaginous fruits, whether or not broken*
12.08 flours and meals of oil seeds or oleaginous fruits, other than those of mustard
12.09 seeds, fruit and spores, of a kind used for sowing*
12.10 hop cones, fresh or dried, whether or not ground, powdered or in the form of pellets; lupulin
12.11 plants and parts of plants (including seeds and fruits), of a kind used primarily in perfumery, in
pharmacy or for insecticidal, fungicidal or similar purpose, fresh or dried, whether or not cut,crushed or powdered
12.12 locust beans, seaweeds and other algae, sugar beet and sugar cane, fresh or dried, whether or
not ground; fruit stones and kernels and other vegetable products (including unroasted chicoryroots of the variety ) of a kind used primarily for human consumption, not elsewhere specified
or included*
12.13 cereal straw and husks, unprepared, whether or not chopped, ground, pressed or in the form of
pellets
12.14 swedes, mangolds, fodder roots, fodder swedes, hay, lucerne (alfalfa), clover, sainfoin, forage
kale, lupines, vetches and similar forage products, whether or not in the form of pellets*
14.01 vegetable materials of a kind used primarily for plaiting (for example, bamboos, rattans, reeds,
rushes, osier, raffia, cleaned, bleached or dyed cereal straw, and lime bark)
14.02 vegetable materials of a kind used primarily as stuffing or as padding (for example, kapok,
vegetable hair and eelgrass), whether or not put up as a layer with or without supportingmaterial
14.03 vegetable materials of a kind used primarily in brooms or in brushes (for example, broomcorn,
piassava, couchgrass and istle), whether or not in hanks or bundles
18.01 cocoa beans, whole or broken, raw or roasted
18.02 cocoa shells, husks, skins and other cocoa waste
20.03 mushrooms and truffles, prepared or preserved otherwise than by vinegar or acetic acid
23.02 bran, sharps and other residues, whether or not in the form of pellets, derived from the sifting,
milling or other working of cereals or of leguminous plants
24.01 unmanufactured tobacco; tobacco refuse*
27.03 peat (including peat litter), whether or not agglomerated
44.01 fuel wood, in logs, in billets, in twigs, in faggots or in similar forms; wood in chips or particles;
sawdust and wood waste and scrap, whether or not agglomerated in logs, briquettes, pellets orsimilar forms
44.03 wood in the rough, whether or not stripped of bark or sapwood, or ro ughly squared*
44.04 hoopwood; split poles; piles, pickets and stak es of wood, pointed but not sawn lengthwise;
wooden sticks, roughly trimmed but not turned, bent or otherwise worked, suitable for themanufacture of walking-sticks, umbrellas, tool handles or the like; chipwood and the like
44.06 railway or tramway sleepers (cross-ties) of wood
44.07 wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or finger-
jointed, of a thickness exceeding 6 mm
44.09 wood (including strips and friezes for parque t flooring, not assembled) continuously shaped
(tongued, grooved, rebated, chamfered, V-jointed, beaded, moulded, rounded or the like) alongWT/ACC/LTU/52
Page 86
HS code Description
any of its edges or faces, whether or not planed, sanded or finger-jointed
44.13 densified wood, in blocks, plates, strips or profile shapes
44.15 packing cases, boxes, crates, drums and similar packings, of wood; cable-drums of wood;
pallets, box pallets and other load boards, of wood
45.01 natural cork, raw or simply prepared; wast e cork; crushed, granulated or ground cork
46.01 plaits and similar products of plaiting materials, whether or not assembled into strips; plaiting
materials, plaits and similar products of plaiting materials, bound together in parallel strands or
woven, in sheet form, whether or not being finished articles (for example, mats, matting,screens)
53.01 flax, raw or processed but not spun; flax tow and waste (including yarn waste and garnetted
stock)
53.02 true hemp, raw or processed but not spun; tow and waste of true hemp (including yarn waste
and garnetted stock)
97.05 collections and collectors pieces  of zoological, botan ical, mineralogical, an atomical, historical,
archaeological, paleontological, ethno graphic or numismatic interest
* All these goods of vegetable origin are imported to the Republic of Lithuania in line with the Article 5 of 
the "Regulations of import and export of goods of vegetable origin to and from the Republic of Lithuania and their transit through the territory of the Republic of Lithuania", i.e. it is obligatory to present to the customs the phytosanitary certificate issued by the Vegetable Quarantine or Vegetable Protection Service of the exporting state. While importing the goods of vegetable origin marked in the appendix with a star 
(*) one must additionally present to the customs the quarantine permit for import issued by the State Plant 
Protection Service of the Republic of Lithuania.WT/ACC/LTU/52
Page 87
Table 12:  Status of Lithuanian Legi slation to meet WTO TRIPS Requirements
TRIPS Agreement Laws and other legal acts addressing the
subject-matterDraft legislation to address subject-matter
Part II, Section 1.
Copyright and
Related Rights- Law on Copyright and Related Rights
of 18 May 1999;
- Law on the Legal Protection of
Computer Programs and Databases of30 January 1996, which has beenincorporated into the Law onCopyright and Related Rights;
- Membership in the Berne Convention
since 1994;
- Membership in the Rome Convention
since 1999
- Membership in the Geneva
Convention since 1999;
Part II, Section 2.
Trademarks- Law on Trademarks and Service
Marks of 3 June 1993, as amended
and supplemented on 8 November,1994 and 13 November, 1997;
- Membership in the Paris Convention
from 1994;
- Membership from 1996 in the Nice
Agreement (1957) Concerning the
International Classification of Goodsand Services for the Purposes ofRegistration of Marks;
- Membership from 1997
(15 November) in the Protocol
Relating to the Madrid Agreement
Concerning the InternationalRegistration of Marks;
- Membership from April 1998 in the
Trademark Law Treaty (TLT) (1994);
- new Law on Competition of 23 March
1999 includes provisions on
geographical indications;- amendment to the Law on
Trademarks and Service  Marks to
include measures which areprohibited to use in connection withgeographical indications (terms as"kind", "style", "like", etc.) (in thecourse of 2000);
- amendment to procedures followed
by the State Patent Bureau to certifya mark as well-known (in the courseof 2000);
Part II, Section 3.GeographicalIndications- new Law on Competition of 23 March
1999;- see previous section;
Part II, Section 4.
Industrial Design- Law on Industrial Design of
4 July 1995;
- Membership in the Paris Convention
from 1994;
- Law of Amendment of Article 5 of the
Law on Industrial Design of 10 May2000;WT/ACC/LTU/52
Page 88
TRIPS Agreement Laws and other legal acts addressing the
subject-matterDraft legislation to address subject-matter
Part II, Section 5.
Patents- Patent Law of 18 January 1994, as
amended and supplemented on 8November 1994, 9 and 23 December1997, and 15 June 2000;
- Law on the Protection of Plant
Varieties and Seed Cultivation of
17 September 1996, as amended andsupplemented on 10 June, 1997;
- Membership in the Paris Convention
from 1994;
- Membership in the Patent
Cooperation Treaty from 1994;
- Membership in the Budapest Treaty
on the International Recognition ofthe Deposit of Microorganism for thePurposes of the Patent Procedure from
May 1998;
Part II, Section 6.Layout Designs of
Integrated Circuits- Law on the Legal Protection of
Topographies and Semiconductor
Products of 16 June 1998
Part II, Section 7.Protection ofUndisclosedInformation- new Law on Competition of
23 March 1999;
Part II, Section 8.Control of
Anti-competitive
Practices inContractual Licences- partially new Law on Competition of
23 March 1999;
Part III, Section 2.Civil andAdministrativeProcedures andRemedies- Civil Code of Lithuania;
- Code of Civil Process of Lithuania;
- Code of Administrative Infringements
(Article 214(10) from 1996);
- new Law on Competition of 23 March
1999;
- Law on Trademarks and Service
Marks of 3 June 1993;
- Law on Amendments and Supplement
to the Code of Administrative
Infringements (improvements);
- Law on Copyright and Related Rights
of 18 May 1999
Part III, Section 3.ProvisionalMeasures- Law on Copyright and Related Rights
of 18 May 1999- 
Part III, Section 4.
SpecialRequirements
Related to Border
Measures- Law on Trademarks and Service
Marks of 3 June 1993 (only ontrademarks and service marks);- draft law on the protection of
intellectual property for importedand exported goods (by
1 February 2001);WT/ACC/LTU/52
Page 89
TRIPS Agreement Laws and other legal acts addressing the
subject-matterDraft legislation to address subject-matter
Part III, Section 5.
Criminal Procedures- Criminal Code of Lithuania (Articles
35, 142 and 308) with amendments of20 April 2000;
- Code of Criminal Procedure of
Lithuania (Articles 37, 126 and 143
with amendments) of 20 April 2000;- WT/ACC/LTU/52
Page 90
APPENDIX
ACCESSION OF LITHUANIA
Draft Decision
The General Council,
Having regard to the results of the negotiations directed towards the establishment of the terms
of accession of the Republic of Lithuania to the Ma rrakesh Agreement Establishing the World Trade
Organization and having prepared a Pr otocol for the Accession of Lithuania,
Decides, in accordance with Article XII of th e Marrakesh Agreement Establishing the World
Trade Organization, that the Republic of Lithuania may accede to the Marrakesh Agreement
Establishing the World Trade Organization on the terms set out in the said Protocol.WT/ACC/LTU/52
Page 91
PROTOCOL OF ACCESSION OF LITHUANIA
TO THE MARRAKESH AGREEMENT ESTABLISHING
THE WORLD TRADE ORGANIZATION
Draft
The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to the approval
of the General Council of the WTO accorded under Article XII of the Marrakesh Agreement
Establishing the World Trade Organization (hereinafter  referred to as the "WTO Agreement"), and the
Republic of Lithuania (hereinaft er referred to as "Lithuania"),
Taking note of the Report of the Working Part y on the Accession of Lithuania to the WTO in
document WT/ACC/LTU/... (hereinafter referre d to as the "Working Party Report"),
Having regard to the results of the negotiations on the accession of Lithuania to the WTO,
Agree as follows:
Part I - General
1. Upon entry into force of this Protocol, L ithuania accedes to the WTO Agreement pursuant to
Article XII of that Agreement and thereby becomes a Member of the WTO.
2. The WTO Agreement to which Lithuania accedes shall be the WTO Agreement as rectified,
amended or otherwise modified by such legal instrume nts as may have entered into force before the date
of entry into force of this Protocol.  This Protoc ol, which shall include the commitments referred to in
paragraph 189 of the Working Party Report, shall be an integral part of the WTO Agreement.
3. Except as otherwise provided for in the paragr aphs referred to in paragraph 189 of the Working
Party Report, those obligations in the Multilatera l Trade Agreements annexed to the WTO Agreement
that are to be implemented over a period of time star ting with the entry into force of that Agreement
shall be implemented by Lithuania as if it had acc epted that Agreement on the date of its entry into
force.
4. Lithuania may maintain a measure inconsistent  with paragraph 1 of Article II of the GATS
provided that such a measure is recorded in the list of  Article II Exemptions annexed to this Protocol and
meets the conditions of the Annex to  the GATS on Article II Exemptions.
Part II - Schedules
5. The Schedules annexed to this Protocol sh all become the Schedule of Concessions and
Commitments annexed to the General Agreement on Tariffs and Trade 1994 (hereinafter referred to as
the "GATT 1994") and the Schedule of Specific Comm itments annexed to the General Agreement on
Trade in Services (hereinafter referred to as "GATS" ) relating to Lithuania.  The staging of concessions
and commitments listed in the Schedules shall be impl emented as specified in the relevant parts of the
respective Schedules.
6. For the purpose of the reference in paragraph 6(a) of Article II of the GATT 1994 to the date of
that Agreement, the applicable date in respect of the Schedules of Concessions and Commitments
annexed to this Protocol shall be the date of entry into force of this Protocol.WT/ACC/LTU/52
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Part III - Final Provisions
7. This Protocol shall be open for acceptance, by  signature or otherwise, by Lithuania until
1 May 2001.
8. This Protocol shall enter into force on the thirtieth day following the day of its acceptance.9. This Protocol shall be deposited with the Dire ctor-General of the WTO.  The Director-General
of the WTO shall promptly furnish a certified copy of this Protocol and a notification of acceptance
thereto pursuant to paragraph 7 to each Member of the WTO and Lithuania.
10. This Protocol shall be registered in accordance with the provisions of Article 102 of the Charter
of the United Nations.
11. Done at Geneva this ... day of  .... two thousa nd ......, in a single copy in the English, French and
Spanish languages each text being authentic, except that a Schedule annexed hereto may specify that it
is authentic in only one or more of these languages.WT/ACC/LTU/52
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ANNEX
SCHEDULE - LITHUANIA
Part I - Goods
[Schedule CL – Document  WT/ACC/LTU/52/Add.1]
Part II - Services
[Schedule GATS/SC/… - Do cument WT/ACC/LTU/52/Add.2]
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