RESTRICTED
WORLD TRADE WT/ACC/LTU/4
1November 1995
ORGANIZATION(95-3372)
Original: English
ACCESSION OFLITHUANIA
Additional Questions andReplies
totheMemorandum ontheForeign Trade Régime (L/7551)
ThePermanent Mission oftheRepublic ofLithuania hassubmitted thefollowing additional
questions andreplies totheMemorandum ontheForeign Trade Régime (L/7551). Thequestions and
replies arereproduced hereunder.
_______________
TABLE OFCONTENTS
Section Question numbers
I. INTRODUCTION 80
II. ECONOMY AND FOREIGN TRADE
1. Economy
(a) General description
Agriculture 81
(b) Main directions oftheongoing economic policies, etc.
Prices 82-83
Competition 84
Privatization ofState property 85
III. FOREIGN TRADE REGIME
1. Import regulation
(a) Theevolution ofthecustoms tariff 86
(b) Customs tariff nomenclature, types ofduties, general
description ofthecustoms tariff structure, weighted
average levelofduties onmain customs tariff groupings 87-89
(d) Non-tariff measures, quotas andlicensing system 90-95
(g) Customs formalities 96
(h) Standards andcertification 97-99
(i) Sanitary andphytosanitary measures 100-101
(j) Other 102
2. Export regulations
(a) Customs tariff nomenclature, types ofduties,WT/ACC/LTU/4
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customs tariff structure onmain customs tariff groupings 103
3. Export incentives andsubsidies 104-105
IV. OTHER POLICIES AFFECTING FOREIGN TRADE
(1) Industrial policy 106-107
(2) Agricultural policy 108-112
(3) Financial, budgetary andfiscal policy
Fiscal policy
Internal taxation 113-114
(5) Foreign anddomestic investment policy 115-116
(6) Government procurement 117
(7) State trading. State enterprises 118-121
(8) Subsidy policy 122
(10) Protection ofintellectual property rights 123
Patents 127-136
Semiconductors (layout-design ofintegrated circuits) 137-139
Copyright 140-148
Trademarks 149-162
Industrial designs 163-165
Trade secrets 166-168
Competition andAntitrust 169-170
Enforcement 171-172
ANNEX I. LIST OFTRADE AGREEMENTS WITH THIRD
COUNTRIES.173
ANNEX III. STATISTICS TABLES AND FIGURES. 174-175
ANNEX IV. GOVERNMENT DECISION ONTHE PROCEDURE OF
COMMODITY EXPORT AND IMPORT REGULATION
INTHE REPUBLIC OFLITHUANIA176-177
OTHER AREAS NOT ADDRESSED 178-183
APPENDIX ISTATISTICAL DATA
APPENDIX IILIST OFLAWS AND ADDITIONAL MATERIAL OF
THE REPUBLIC LITHUANIA
ANNEX
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Replies toQuestions 1-79weresubmitted totheWTO Secretariat earlier inaseparate document
(WT/ACC/LTU/2).
I. INTRODUCTION
Question 80
Lithuania mentions sixareas, including agriculture andservices, aspriority development areas.
WhatpoliciesdoesLithuaniaintendtoimplementtostimulatethosesectors?Howwillthosepolicies
affect foreign trade andinvestment?
Reply
Thefollowing actions arebeing taken inLithuania tostimulate thesectors mentioned in
Introduction:
Within thesector ofmanufacture infrastructure:
- completion ofprivatisation;
- setupofconsultative agency attheMinistry ofIndustry andTrade which upon
performing study ofapproximately 80enterprises consults themoncompany strategy
formulation andrestructuring issues, renders assistance indrafting business plans,
finding partners, etc.;
- establishment ofExport Promotion Agency isinprogress, itsbasic objective being
tocreate andimplement export promotion system based oninternational pattern, Nordic
countries pattern inparticular;
- establishment ofexport credit insurance system;
- studying possibility toestablish export -import bank.
Within thesector ofservice infrastructure:
- development oftourism asapriority;
- expansion ofservice network formachines, cars;
- privatisation ofabout 84.5percentofservice enterprises, ofalmost allbankservices.
Theabovementionedmeasuresareintendedforforeigntradedevelopmentandexportpromotion.
Agriculture isapriority branch oftheLithuanian economy development, fulfilling avery
important function oneconomics andsocial life.
TheState supports, firstofallintheframe ofpurposive programmes, theproducers ofthe
mostimportant agricultural commodities, progress ofagriculture inthefieldofresearch andtechnology,
preservation oflandandothernatural resources, realisation ofbio-organic agriculture, theestablishment
ofspecialised farms andprotects theequality oftheagricultural subjects inthemarket.
Favourablecreditsandpurposivefinancingisbeingapplied:tosupportpurchasingofagricultural
production according tosetquotas oftheGovernment; tochange theeconomic activities ofthe
agricultural subjects, situated onlowproductivity soilsandtoreduce thedifferences between the
economic conditions offarming; toorganise theproduction ofecologically cleanproduce andtoremove
thecentres ofconcentrated pollution; todevelop cooperative andagroservice activities; toimplement
programmes ontheestablishment offarmers andtheestablishment ofinfrastructure forproduction;
tocompensate theincome ofthereduced agricultural production because oftheState'srestrictions;
fortheagricultural research, consultations, training andeducation; forpurchasing ofbreeding material
ofproductive animals andpoultry, valuable plants; reclamation andliming ofacidsoils.WT/ACC/LTU/4
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Favourable taxtariffs, setbythelawsofLithuania, arebeing applied totheproducers of
agricultural production (seetheanswer toQuestion 47).
Adjustingthemeasures,theGovernmentisseekingtopromotetherationaluseoflandresources,
modernisation oftheproduction ofagricultural goods, itsrestructuralization fortheproduction of
exportable produce.
II. ECONOMY AND FOREIGN TRADE
1. Economy
(a) General description
Agriculture
Question 81
Thissection indicates thatin1993"private farms produced 70percentoftotalagricultural
output" andthat"Inrecent years theprivate sector inagriculture hassteadily increased." What
isthelevelofpercentage ofproduction accounted forbyGovernment owned enterprises today?
Arethese private farms wholly owned byprivate citizens ordoesthestateholdsome percentage
ofsome oftheenterprises?
Reply
Almost allagricultural production wasproduced inprivate sector farms in1994. Theproduction
ofthestateagricultural enterprises (experimental stations ofresearch institutions, workshops fortraining
purposes ofagricultural schools andcolleges, using 1.2percentofthetotallandforagricultural
purposes) made 3percentofthetotalagricultural production.
Themainproducersofagriculturalproductsareagriculturalpartnershipsandenterprises,farmers
andsmall private farms. These areinfullprivate ownership.
(b) Main directions oftheongoing economic policies, etc.
Prices
Question 82
Thissection notes thatState control ofmark-ups onsome household goods maybeended.
Please provide anupdated listofhousehold goods where theState controls price mark-ups. Also,
please provide anupdated listofother sectors where theState stillcontrols prices.
Reply
From 1April 1995, theLithuanian Government ceased regulation andcontrol ofmark-ups
offood-stuff produced inLithuania. Thus, theprocess ofprice liberalisation hasbeencompleted and
nowthere isnoregulation ofhousehold goods prices inLithuania.
TheState stillcontrols prices andtariffs ofthese goods andservices:
1. landofstateproperty;
2. natural gas;
3. electric energy;
4. heatenergy;WT/ACC/LTU/4
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5. precious metals ofstateproperty;
6. timber;
7. circulating glass tare;
8. minimal procurement prices ofcattle, milkandplant-growing production;
9. passenger 'stransportation byrailroad, interurban buses (tariffs ofpublic urban transport are
regulatedbymunicipalitiesintheiradministrationterritory),meansofair("Lietuvosavialinijos"
-Lithuanian airlines) andwater transport;
10. postal services ofstateentity "Lietuvos pastas" (Lithuanian post);
11. telephone andtelegraph services ofstateentity "Lietuvos Telekomas";
12. radio andtelevision services ofstateentity "LRTC";
13. construction works financed bytheState;
14. herbs, medicines, other chemist 'sgoods andmedical services ofstatesector.
Foradditional information seetheanswers toQuestions 3-4.
Question 83
What isthestatus ofprice liberalisation inregulated sectors suchasenergy, transportation
andcommunications? Please identify thespecific sectors viewed asnatural monopolies where
State-controlled prices willremain.
Reply
Concerning price liberalisation intransportation andcommunications sectors seetheanswer
toQuestion 3.
Duetotechnical andeconomic reasons there isabsence orrestrictions ofcompetition and
consumer choice possibilities inenergy sectors, sothestatecontrol andpriceregulation isstillnecessary.
Natural gassupply, production andsupply ofelectricity andheatenergy areconcerned assectors
operating asnatural monopolies, i.e.sectors where onedominant entity isoperating inthewhole or
inamain partoftheLithuanian territory (concerning theother specific sectors viewed asnatural
monopolies where State controls prices seetheanswer toQuestion 3).
Thefurther price liberalisation inenergy sectors isconnected withstructure changes inthose
branches andwithcreation ofcompetitive conditions.
Competition
Question 84
Please identify the57enterprises thataresupervised andpartly controlled byState
institutions because of"technical andeconomic reasons." DoestheLithuanian Government foresee
reducing import barriers forthese products toencourage competition?
Reply
Thenumber ofenterprises which have adominant position inthedomestic market (over
40percentofmarket share) andtherefore aresupervised andpartly controlled bytheStateinstitutions
ischanging permanently -depending ontheenterprise 'sposition inthemarket, some enterprises being
included inthelist,some excluded. Atthemoment thenumber ofsuchenterprises is45.WT/ACC/LTU/4
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ThelistofenterprisesthatarecurrentlysupervisedandpartlycontrolledbytheStateCompetition
andConsumer Protection Office.
Enterprises whose prices mustbedeclared attheStateCompetition andConsumer Protection
Office areasfollowing:
1.Stock company "Achema"
2.State Kedainiai chemistry factory
3.State Panevezys glass factory
4.Stock company "Akmenes cementas"
5.Limited stock company "Kalcitas"
6.Limited stock company "Ventos statybines medziagos"
7.Stock company "Oruva"
8.Stock company "Snaige"
9.Stock company "Litoda"
10.Stock company "Elnias"
11.State bureau ofinventorization, design andservice.
Enterprises whose financial economy activity, market behaviour, commodity andservice prices
andtariffs arebeing supervised bytheState Competition andConsumer Protection Office:
1.State Klaipeda stock meatfactory
2.State Marijampole milkcannery
3.State Klaipeda cannery
4.Limited stock company "Birstono mineraliniai vandenys"
5."Philips-Morris Lietuva"
6.State company "Stumbras"
7.State company "Alita"
8.Stock company "Kedainiu biochemija"
9.Stock company "Plasta"
10.Stock company "Lietkabelis"
11.Joint-venture Lithuanian-Germany company "Vairas"
12.Stock company "Trinyciai"
13.Stock company "Audejas"
14.Stock company "Alytaus tekstile"
15.Stock company "Silkas"
16.Stock company "Dirbtinis pluostas"
17.Stock company "Vernitas"
18.Limited stock company "Kalcitas"
19.State Vilnius polymeric articles factory
20.State Daugeliai enterprise ofconstruction materials
21.Stock company "Dvarcionys"
22.Stock company "Palemono keramika"
23.Stock company "Silikatas"
24.Stock glass factory "Aleksotas"
25.Stock company "Sirijus"
26.Stock company "Ekranas"
27.Stock company "Metga"
28.Stock company "Banga"
29.Stock company "Siauliu tauras"
30.Stock company "Vilkas"
31.State enterprise "Lietuvos kuras"WT/ACC/LTU/4
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32.State Vilnius electric measuring devises factory "Skaiteks"
33.State electrotechnic factory "Velga"
34.State enterprise "Lietpraba"
35.Joint-venture Lithuanian-Luxembourg company "Comliet".
TheLithuanian Government doesnotmake adifference between enterprises supervised and
partly controlled bytheState andenterprises based onprivate capital inthesense ofimport policy.
Allenterprises havethesameconditions forimport/export operations. Concerning reducing ofimport
barriers Lithuania iscurrently giving thought about that.
Privatisation ofState property
Question 85
TheFTM mentions that69percentofallobjects eligible forprivatisation and46percent
ofallcapital eligible forprivatisation have beenprivatised already. What types of"objects" are
eligible forprivatisation? When does Lithuania consider anobject tobe"privatised?" Do
"privatised" objects retain anypercentage ofGovernment ownership? Why were agricultural
enterprises notincluded inthe"Law onPrivatisation?" Please elaborate ontheprivatisation of
theexisting andformer agricultural trading organisations. What areLithuania 'splans regarding
theprivatisation ofremaining state property including agricultural enterprises?
Reply
Theprivatisation programme wasintroduced in1991 andbyJune1995, 85percentoftotal
companies included intheprivatisation programme havebeenprivatised. Privatised capital makes up
71percentofcapital eligible forprivatisation. Private capital makes up36percentoftotalcountry 's
capital.
Restitution isthereturn ofproperty expropriated bythesoviet period after1949, toitsoriginal
owners andtheirheirs. Land constitutes thebulkofthisrestitution, butrealproperty isalsoincluded.
Thelargest partofprivatised capital isinindustry.
Theprivatisation inLithuania wasbased ontwolaws:
- theprivatisation ofstateenterprises wasbased ontheLawontheInitial Privatisation
ofState Property (28February 1991);
- theprivatisation ofproperty ofagricultural enterprises wasbased ontheLawonthe
Privatisation ofProperty ofAgricultural Enterprises (30July1991).
Investment vouchers werechosen asthebasisforprivatisation. These vouchers, issued bythe
Government, could beusedforthepurchase ofproperty. 92percentofvouchers havebeenusedfor
privatisation. Thebiggest theirpart-64percent-havebeenusedforpurchasing ofstateproperty,
19percent-forrepurchasing ofownapartments orhouses, 9percent-privatisation ofagricultural
enterprises andrepurchasing oflandlots.
Astheresult ofprivatisation process, theshare ofprivate capital intheeconomy ofLithuania
hasgrown significantly (seethetable).WT/ACC/LTU/4
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Share oftheprivate capital compared tothecapital tobeprivatised in1995
percent
TOTAL: 85
Industry 88
Transport 84
Construction 91
Retail trade andcatering 82
Utilities 76
Services 94
Other branches 80
Source: Lithuanian Investment Agency
TheStateshares oftheprivatised enterprises make small amount intheinitial capital andcan
notinfluence themanagement ofenterprise.
Theobject isconsidered tobeprivatised, when (public share subscription orpublic auction
inthefirststageofprivatisation) itsresults areapproved bytheappropriate privatisation commission.
Thestateretains 11percentofobjects privatised bythepublic share subscription. Objects
privatised bythepublic auction areprivatised totally. Under theGovernment decision, theprivatisation
levelcanbelimited (forexample, theprivatisation offoodprocessing enterprises -seetheanswer to
Question 39).
Thefirstwave ofprivatisation isalready completed. Atpresent moment thepreparation for
furtherprivatisationprocess,whichwillbecarriedoutfollowingbyprinciplesofcommercialprivatisation
forcash,isunderway.ThenewLawonPrivatisationofState-OwnedandMunicipalPropertyconcerning
thisphase ofprivatisation process waspassed on4July1995, andentered intoforce on
15September 1995 (acopy hasbeendeposited withWTO Secretariat). ThenewLawprovides for
privatisation by:
-public share subscription,
-public auction,
-public tender,
-saleofstateproperty through direct negotiation,
-establishment ofjoint-ventures using stateproperty asstate'sshare injoint-venture,
-capital lease.
According thisLawtheLithuanian StatePrivatisation Agency totheGovernment ofLithuania
wasestablished.
Concerning theadditional information onprivatisation inagricultural sector seetheanswer
toQuestion 39.WT/ACC/LTU/4
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III. FOREIGN TRADE REGIME
1. Import regulations
(a) Theevolution ofthecustoms tariff
Question 86
Please provide aschedule ofagricultural tariffs asapplied intheLithuanian Government 's
Resolution No.443.
Reply
Acopyofschedule oftariffs approved bytheLithuanian Government 'sResolution No.443
(16June1993) hasbeendeposited withtheWTO Secretariat forreview byWTO members.
InLithuania customs tariffsystem wasintroduced bythisResolution, which laterwaschanged
several times. Now customs tariffs areapplied following theGovernment 'sResolution No.281 of
28February 1995, which withtheamendments hasbeensubmitted toWTO Secretariat.
Thelatest changes oncustoms duties onimports were made bytheGovernment Resolution
No.1271 (22September 1995):
Commodity code Commodity Rateofduties
(%)
conventional autonomous
0401-04022199,
04022915-0404Milk anddairy products 20 20
0405 Butter andother fatsandoilsderived
from milk45 45
0407 Eggs 30 30
0408 Eggs powder 30 30
0701 Potatoes 20 20
1601 Sausages andsimilar meatproducts 14 14
1701 Sugar 35,butlessthan0,75litas/kg
170230, 170240,
170290Other sugar 35 35
(b) Customs tariff nomenclature, types ofduties, general description ofthecustoms tariff
structure, etc.
Question 87
Please confirm thattheConvention ontheCCC Harmonized System entered force for
Lithuania on1January 1995.
Reply
TheConvention ontheHarmonized System entered intoforceforLithuania on1January 1995.WT/ACC/LTU/4
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Question 88
HasLithuaniamodifiedthedutiesonimporteditemssincecompilationoftheMemorandum?
Ifso,please provide anupdated tariff schedule.
Reply
Seetheanswer toQuestion 86.
Question 89
Thissection notes thatimports ofgoods subject toquotas arecarried outunder licences
provided bytheGovernment ofLithuania. What aretheprocedures forobtaining suchimport
licences, andwhat restrictions existonawarding them? What goods aresubject tosuchlicensing
procedures?
Reply
Atpresent, Lithuania doesnotapply import quotas. Allthequotas which arementioned are
tariff quotas.
Asprovided under theGovernment Resolution No.653 (8May1995), implementing theLaw
onStateRegulation ofEconomic Relations inAgriculture (22December 1994), Lithuania usestariff
quotas toimplement itsfreetradeagreements andtoprovide fortemporary import ofcertain products
forshort supply orother reasons exist.
Goods forwhich tariffquota maybeapplied withHSareindicated intheanswer toQuestion 14.
Ministry ofIndustry andTrade issues licences fordutyfreeimport ofspirits fortechnical uses
intoLithuania. Based onGovernment 'sResolution No.985 (14October 1994), tariffquotas areawarded
forthecompanies withannual needfortechnical ethyl alcohol ofatleast7000 decilitres. Toobtain
thelicence thecompany should submit anapplication, estimated needforalcohol andcontract signed
withaforeignsupplier.BasedonstatisticaldataofCustomsDepartmenttheMinistrymonitorsutilization
ofthequotas.
Tariff quotas forgoods which arefreefrom duties andimported inquantities authorised by
theMinistry ofAgriculture areallotted oncompetition basis. Thewinner ofthecompetition isgranted
acertificate andreference onthesingle import quota, signed bytheMinister ofAgriculture.
(d) Non-tariff measures, quotas andlicensing system
Question 90
Explain howLithuania intends tochange itsimport system foragricultural goods and
alcoholic beverages sothatitcomplies withWTO Agriculture Agreement requirements thatall
non-tariff barriers (including quantitative import restrictions, variable import levies, minimum
importprices,discretionaryimportlicensing,non-tariffmeasuresmaintainedthroughstate-trading
enterprises, voluntary export restraints) beeliminated.WT/ACC/LTU/4
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Reply
Non-tariff barriers, referred tobrackets above, donotexistinLithuania, except asnoted in
theanswer toQuestion 13.
Foradditional information seetheanswer toQuestion 17.
Question 91
Please explain inmore detail howimport licences inLithuania areallocated. What does
"allotted bycompetition" mean?
Reply
Companies wishing toengage intrade mustbelicensed todoso.Licences mustbeobtained
toimportalcoholproducts,tobaccoproducts,oilproducts,specialfoodstuffandfoodadditives,narcotics
andhighly effective andpoisonous substances, chemical materials which canharmfully actthe
environment, biological plants protection measures (Law onAmendments andSupplements oftheLaw
onEnterprises, 5July1995). Nolimitations onquantities imported orexported areinvolved andthe
system doesnodiscriminate between Lithuanian andforeign companies.
Alcoholic beverages (including beer) canbeimported intoLithuania bythecompanies having
licences issued bytheMinistry ofIndustry andTrade (forimport ofunbottled alcoholic beverages
-theMinistry ofAgriculture) following theprocedure established bytheLithuanian Government 's
Resolution No.397, 21March 1995. Alcoholic beverages canonlybeimported fromproducers, while
vodka brands -onlythose included intopublications oftheInternational Association ofAlcoholic
Beverages Producers, toinsure product quality forhealth reasons.
Three companies havebeenawarded licences forvodka import, thebasic criteria being the
highest tender andauthorization capital ofthecompany notlessthan1mlnlitas. Currently, granting
ofnewlicences, issuspended duetoenforcement ofanewLawonAlcohol Control (18April 1995)
providing forannual issue ofimport licences formaximum 10companies with13licences already
granted before.
Theprovisions onlicensing ofimport oftobacco products andimport ofbiological plants
protection measures arecurrently under preparation bytheMinistry ofAgriculture.
Theprovisions onlicensing ofimport ofnarcotics andhighly effective andpoisonous substances
(which arenotusedforpharmaceutical purposes) andimport ofchemical materials which canharm
theenvironment areunder preparation bytheMinistry ofEnvironmental Protection.
Theprovisions onlicensing ofimport ofspecial foodstuff andfoodadditives (mainly ofproducts
containing ethyl alcohol -following theLawonAlcohol Control (18April 1995)) andimport ofthe
narcotic andhighly effective andpoisonous substances formedicine purposes areunder preparation
bytheMinistry ofHealth.
Thelicences onimport ofoilproducts areissued bytheMinistry ofEnergy under the
Government Resolution No.1221 (14September 1995).
Concerning thelicences onimporting/exporting ofstrategic goods andtechnologies seethe
answer toQuestion 93.WT/ACC/LTU/4
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Themeaning "allotted bycompetition" isusedinthesense oftariff quotas (seetheanswer
toQuestion 89).Companies withoptimal quotas realisation conditions, lower price, verygoodquality
andother guarantees, willobtain thetariff quota.
Question 92
Please detail howquotas areallotted foragricultural goods andalcoholic beverages. How
oftenareimportquotasset?Istheprocesstransparent?Whatproceduresareinvolvedforobtaining
licences?
Reply
Theallmentioned quotas aretariff quotas (seetheanswer toQuestion 89).
Theadministrationofimporttariffquotaispublic.Therequirementsfortheobtainingoflicences
fortheimport tariff quota implementation arefollowing:
- entity should present theapplication form totheMinistry ofAgriculture (ortheMinistry of
Industry andTrade -fordutyfreeimport ofspirits oftechnical uses); theapplication form
should include:
- thetitleofentity (firm), address, thenumber andthedateofregister oftheentity;
theamount ofimported goods andthepurpose ofthegoods;
- thetimetable ofthelicence implementation andhowtheentity isgoing tomeet
marketing requirements oftheimported goods under thelicence;
- thecopyofcontract withtheforeign partner should beattached;
- theconclusion from local customs office indicating howtheentity meets customs
obligations;
- certificate from TaxInspection Office about thedeclaration ofincomes, payment of
taxes andsolvency;
- veterinary service certificate (ifrequired).
Theapplication form should besigned andstamped.
Question 93
Please describe what products under Government Resolution No.179 areconsidered to
be"strategic goods andtechnologies" andthussubject toquantitative restrictions.
Reply
Government Resolution No.179 doesnotdescribe whatproducts areconsidered tobe"strategic
goods andtechnologies".
On5July1995, theLawconcerning Control ofImport, Transit andExport ofStrategic Goods
andTechnologies (which hasbeendeposited withWTO Secretariat) waspassed andwillenter into
force on1January 1996.WT/ACC/LTU/4
Page13
Under thisLawthedefinition ofstrategic goods andtechnologies includes double designation
(civilian andmilitary) goods, technologies andsoftware; defence means andservices; chemical and
biological materials, which maybeutilised intheproduction ofchemical andchemical-bacteriological
weapons ofmassdestruction; nuclear materials, non-nuclear materials usedinnuclear activity, nuclear
equipment andtechnology andalso, goods ofdouble designation, which maybeutilised innuclear
activity; goods andtechnologies usedinmissile production.
Alicence oftheMinistry ofEconomics shallberequired forimport, transit andexport of
strategic goods andtechnologies.
UnderthisLawtheLithuanianGovernmenthastopreparethedetailedlistofproductsconsidered
tobe"strategic goods andtechnologies", andLithuanian Parliament -thelistofcountries withwhich
theexport/import operations bysuchkindofgoods would beprohibited.
Question 94
Please provide details onthepurpose, scope andoperation ofexisting agricultural import
quota. Weareasking forinformation onthespecific commodities which arecovered byimport
quotas, what thequota sizesare(byHScode), howtheywork, andwhich agencies areresponsible
fortheir administration.
Reply
Seetheanswers toQuestions 13-14, 89,92.
Question 95
Does Lithuania maintain anyborder measures other thancustoms duties? Please identify
anddescribe anysuchmeasures along withtheproducts covered bythese restrictions.
Reply
There arenoborder measures maintained inLithuania, otherthancustoms duties, except quality
certificates forfoodstuffs, certificates required forsome industrial goods (mainly forfuel)(seethe
answer toQuestion 18)andnotifications onenvironmental protection requirements.
Concerning theborder measures onimporting/exporting ofstrategic goods andtechnologies
theorder isdifferent.
(g) Customs formalities
Question 96
What agricultural products arecurrently subject toprior import approval requirements?
What agricultural products require mandatory import licences?
Reply
Seetheanswer toQuestion 91.
Itmustbestressed again thatquality (orsanitary andphytosanitary) certificates mustbeobtained
fortheimport ofagricultural products.WT/ACC/LTU/4
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(h) Standards ofcertification
Question 97
This section notes thatthemechanism fordrafting, adopting andenforcing technical
regulations isunder development. Please indicate howthissystem willbeconsistent withmeeting
theobligations oftheWTO Agreement onTechnical Barriers toTrade.
Reply
Lithuania isworking tobring itstechnical regulations intoconformity withtherequirements
oftheWTO Agreement onTBT. Foradditional information seetheanswers toQuestions 20,22.
Question 98
TheFTMmentionedthat"governmentalsupervisionandcontrolareexercisedbyinstitutions
authorised bytheGovernment. Areanyofthe"authorised institutions" non-governmental entities
acting under delegated governmental authority? Please list?
Reply
Joint stock company "Impeksservis" isengaged inindependent activity ongoods andcargo
control.
Question 99
Why isspecial permission required toimport orexport colour copy machines andplant
origin products? What typeofpermission? Who determines whether permission isgranted?
What arethecriteria?
Reply
Permissions forimport ofcolour copymachines mustbeobtained intheMinistry ofInterior.
Suchkindofpermissions arenecessary fortheregistration ofeachcolour copymachine -thismeasure
isnecessary tocombat forgery ofmoney andsecurities.
Aquarantine permission forgoods ofplantorigin doesnotmake anyrestriction forthequantity
andtypes ofgoods imported intoLithuania. Theaimofthispermission istoavoid quarantine diseases,
pests andweeds thatcould beimported toLithuanian territory.
Quarantine permission corresponds tointernational standards. Thepermission isissued after
investigations astohowprivate orlegalpersons meettherequirements ofquarantine rulesofLithuania.
Thepermission specifies theparticular kindofpeststheimport ofwhich isrestricted. Theconditions
oftransportation ofgoods through theterritory ofLithuania aswellasthecontrol order ofthegoods.
Thelegalbasis forthequarantine permission issetbytheGovernment 'sResolution No.599
(3August 1993) (acopyhasbeendeposited withWTO Secretariat).
Themain criteria are:theevaluation ofthequarantine situation oftheexporting country, the
purpose ofthecargo (forseed, human consumption orprocessing, etc.), taking intoconsideration the
quarantine rules ofexporting country.WT/ACC/LTU/4
Page15
(i) Sanitary andphytosanitary measures
Question 100
IsLithuanian amember ofCodex Alimentarius Commission (CODEX), theInternational
Office ofEpizooties (IOE), ortheInternational Plant Protection Convention (IPPC)? Ifnot,does
itplantojoinsoon? Also, doLithuania 'sstandards forsanitary andphytosanitary measures differ
from theinternational standards established bythese organisations?
Reply
Seetheanswer toQuestion 29.
Lithuania isamember ofCodex Alimentarius Commission from the1992.
Question 101
Please explain howLithuania 'smeasures areinconformity withtheWTO Agreement
ontheApplication ofSanitary andPhytosanitary Measures.
Reply
Seetheanswer toQuestion 32.
(j) Other
Question 102
Thissection states thatLithuania presently doesnotlevyanti-dumping duties. IsLithuania
developing (orplanning todevelop) anti-dumping orcountervailing duties statutes, andifso,how
willsuchstatutes conform toWTO disciplines?
Reply
ThenewLawontheCustoms Tariff iscurrently under preparation. Theoneofaimsistoinclude
provisions onanti-dumping andcountervailing duties inthenewlawinfullconformity withWTO
requirements.
2. Export regulations
(a) Customs tariff nomenclature, etc.
Question 103
Please provide anupdated listofproducts onwhich theGovernment ofLithuania imposes
export duties asa"transitional measure". What isthestatus ofefforts toreduce orabolish such
duties?
Reply
Seetheanswer toQuestion 34.WT/ACC/LTU/4
Page16
3. Export incentives andsubsidies
Question 104
Thedocument indicates thatLithuania doesnotgrant export subsidies orincentives. Are
there plans fortheGovernment ofLithuania todevelop suchexport support programs?
Reply
TheLithuanian Government hasadopted Resolution No.40 (10January 1995) "OnActions
Improving Foreign Trade Regulation andExport Development" which provides forthedrafting of
traderegulating laws, export promotion andfunding, traderelated information management, education
andtraining ofexport specialists.
Question 105
DoestheGovernment ofLithuania provide anysubsidies thereceipt ofwhich iscontingent
upon meeting some kindofdomestic content requirement? Ifnot,istheGovernment ofLithuania
developing orplanning todevelop anysuchsubsidy program? Isthisinthecorrect spot?
Reply
Incaseifthisquestion concerns theexport subsidies, currently suchkindofthesubsidies are
notapplicable inLithuania.
Inthisessence thetemporary measures fortheyear1995 maybementioned -providing the
possibility forstorage ofsurplus production (dairy products andpork) forfuture internal andexternal
marketing (Government Resolution No.623 (3May1995) andGovernment Resolution No.865
(21June1995)).
IV. OTHER POLICIES AFFECTING FOREIGN TRADE
1. Industrial policy
Question 106
UndertheLithuania'sindustrial"restructuring",doestheGovernmentofLithuaniaforesee
utilizing subsidies to"stimulate thedevelopment" ofexport items? HowwillLithuania "safeguard"
potentially competitive companies from bankruptcy?
Reply
TheLithuanian Government doesnotapply subsidies forindustry. Ithasapproved theplan
ofactions (Government 'sResolution No.40, 10January 1995) providing preferences forexport goods
inthefieldoftaxation (seetheanswer toQuestion 63)aswellasobtaining credits fromforeign countries.
Concerning thesafeguards ofpotentially competitive companies seetheanswers to
Questions 37-38.WT/ACC/LTU/4
Page17
Question 107
Lithuania 'sMemorandum listsoneoftheaims ofthecountry 'sindustrial policy as
"distinguishing potential export items from thetotalproduction andstimulating thedevelopment
oftheir production." What measures willLithuania taketoidentify these items andstimulate
their production?
Reply
Based onregional alsocountry-to-country analysis ofstatistical import/export datathemost
efficient exporters andcountries areidentified. Lithuania endeavours toestablish themostfavourable
traderegime forLithuania bysigning agreements oftrade, investment protection, avoidance ofdouble
taxation, byalready applying defactoGATT requirements, thusremoving tariffandnon-tariff barriers
within thetrade fields ofinterest.
2. Agricultural policy
Question 108
Please provide more information onthesubsidies available toagriculture from the
Agriculture Support Fund orother sources andtheprograms ofindirect support toagriculture.
How much dothese subsidies andindirect support amount to?Who iseligible toreceive them?
Reply
Seetheanswers toQuestions 40-41.
Question 109
Lithuania notes thattheMinistry ofAgriculture setsprocurement quotas andminimum
purchase prices forthemajor kinds ofagricultural products. Please explain howthese prices are
setandtheir relationship tomarket prices. How arethequotas set?What prices does the
Government payforitems purchased forprocurement quotas? What isthedisposition ofitems
procured?
Reply
Seetheanswers toQuestions 45-46.
Question 110
Lithuanian reports that"cattle-breeding (dairy andmeat production) willbedeveloped".
What programs arecurrently inplace tosupport these sectors, andhowdoesLithuania planto
promote thefuture development ofthese sectors?
Reply
Thebasisforcattle-breeding development inLithuania istheGovernment 'sResolution No.230
(10February1995),theNationalAgricultureDevelopmentProgramme,themeatproductiondevelopment
programme ("Meat"), themilkproduction development programme ("Milk"), theState pure-strain
stock-breeding programme till2000 year, theLawonPure-Strain Stock-Breeding.WT/ACC/LTU/4
Page18
According toimplementation oftheLawonState Regulation ofEconomic Relations in
Agriculture (22December 1994, -acopy hasbeen deposited with WTO Secretariat) andthe
Government 'sResolution No.230 (10February 1995) "OnSubsidies forCattle-Breeding Production
for1995year", minimum guaranty prices andsubsidies forcattle, pigsandmilkhavebeenannounced
asatemporary measure.
There ispurposive financing forpure-strain material purchasing inorder toencourage farmers,
agricultural partnerships andother producers ofagricultural production tobreed productive live-stock,
poultry andtoimprove theirproductivity.
National Agricultural Development Programme andbranch programmes "Meat" and"Milk"
willbedefined more exactly before 1July1996. Lithuania willprovide updates asappropriate onhow
itsProgramme isevolving.
Question 111
Areanyfarm imports restricted orbanned? Please list,byHScode, theproducts and
types ofrestrictions. Please provide thejustification foreachproduct banned orrestricted.
Reply
Seetheanswer toQuestion 13.
Question 112
Howdodomestic wholesale prices foragricultural commodities compare withtheimport
prices? Assuming state trading corporations import atworld market prices andthenresell at
local prices, howistheprice differential accounted for?How aretheprofits used? How arethe
losses funded?
Reply
There arenostatetrading corporations foragriculture products inLithuania. Thewholesale
price includes import price, import duty, VAT, excise duty(thelistofproducts onwhich excise tax
isapplied isindicated intheanswer toQuestion 113), other fees.
3. Financial, budgetary andfiscal policy
Fiscal policy
Internal taxation
Question 113
Thissection notes thatthetaxsystem isstillbeing developed andimproved. Please describe
recent changes tothetaxregime.
Reply
TheLithuanian system oftaxation consists of:
-corporate profit tax,
-personal income tax,
-value added tax,WT/ACC/LTU/4
Page19
-excise tax,
-social security tax,
-taxonnatural resources,
-taxonoilsandgasresources,
-taxonpollution,
-customs duties,
-taxonimmovable property,
-roadtax
-landtaxandtaxonstatelandrent,
-other taxes (consular, levies, taxonmarketplace, taxoninherited andgifted property).
Corporate profit tax
Theprovisions forcorporate profit taxarethesameasdetermined intheMemorandum (L/7551,
14December 1994) withtheexceptions:
- ifinvestor obtains nolessthan30percentofenterprises authorised capital and
investment isnolessthenUS$2 mlnsuchanenterprise fora3yearperiod isexempt
fromincome taxandduring thenext3yearperiod income taxisreduced by50percent;
- iftheenterprise isregistered from1January 1994, tillanewLawofForeign Capital
Investment came intoforce (1August 1995) theshare ofcapital proportional tothe
foreign investment inauthorised capital isreduced by50percentfor6years;
- while calculating taxable profits, expenses related toanumber ofactivities maybe
entirely orpartly deducted, including: expenditure oncharitable, cultural, educational
orother socially-oriented activities; expenditures onR&D orontheintroduction of
newtechnology; andthepayment ofcertain taxes suchasthepollution tax;
- under theGovernment 'sResolution No.1026 (21July1995) thecorporate profit tax
isreduced forenterprises ofprioritetical branches ofLithuanian economy, asproduction
ofmedicines, medical equipment, veterinary medicines, agricultural machinery;
processing andutilization ofwaste; energy extraction from non-traditional sources;
providing ofmedical services, medical treatment andhygiene practices; passenger
transport andtransportation; construction; telecommunications; etc.
- Lithuania hasagreements fortheavoidance ofdouble taxation with(entered intoforce)
Denmark, Finland, Norway, Sweden, Poland, Estonia, Latvia, Check Republic; (not
entered intoforce) Belarus. Negotiations arecurrently taking place withIceland and
Canada.
Personal income tax
Theprovisions ofpersonal income taxarethesame assetoutintheMemorandum (L/7551,
14December 1994).
Value added tax
There aresome changes inprovisions ofVAT. Thefollowing exemptions havebeenadded:
-nuclear fuel,coal, gas,oil,firewood, liquid fuel(0percentrateuntil1January 1996);
-products formedicines production;WT/ACC/LTU/4
Page20
-agricultural machines.
TemporaryrateofVATwasintroduced-9percentforfollowinggoods,madebytheLithuanian
producers (until 1January 1996):
-combined fodder;
-fishandfishproducts;
-production ofagriculture, except furanimals;
-foodmade from agriculture products.
Excise tax
The latest excise duties areapproved bytheGovernment Resolution No.1313
(5October 1995)(see thetable).
Provisions oftheexcise taxarethesameassetoutintheMemorandum. Dividends andinterest
ondeposits incommercial banks arenottaxed inLithuania.
Taxonpollution
Pollution taxesonenterprises arecharged atalower unitrateifemissions meettherequirements
derived from ambient standards. Ifemissions arelessthan50percentofthatrequirement, nofees
arecharged. Ifafactory invests inpollution abatement, itmaybeexempted from thepayment of
pollution feesuptotheamount oftheinvestment cost.
Taxonoilandgasresources
Thistaxispaidbythenatural andlegalpersons fortheoilorgasextracting intheterritory
ofLithuania oritseconomic zoneintheBaltic Sea.Taxrate-20percentofselling priceofextracting
oilorgas.
Theprovisions ofthesocial security tax,taxonnatural resources, landtaxandtaxonstate
landrentarethesame assetoutintheMemorandum.
During thisperiod twonewtaxes wereintroduced -taxonimmovable property androadtax.
Taxonimmovable property
Thenewtaxonimmovable property wasintroduced bytheLawonTaxonImmovable Property
ofEnterprises andOrganisations, which waspassed on20July1994, andcame intoforce on
1January 1995.
Thistaxispaidbylegalpersons andenterprises without therights oflegalpersons.
Taxbase
Thetaxonimmovable property islevied onimmovable property thatislegally registered, but
itshallnotapply tolandtowhich theLawonLand Tax(25June1992) applies.WT/ACC/LTU/4
Page21
Excise duties baseandtaxrate
Commodity
code*Commodity Rate
(percent)
2208 **Undenatured ethyl alcohol andalcoholic
beverages, except champagne, wine and
beer40%, butnotlessthan0.2
litasfor1%ofan
alcoholic strength by
volume peroneliter
2208.90.69.1 Mead 40%, butnotlessthan
0.2litasfor1%ofan
alcoholic strength by
volume peroneliter
2204.21.21.0-22
04.21.29.0;
2204.29.21.0-
2204.29.29.0;
2204.30; 2206Wine ofanalcoholic strength byvolume of
13%vol,andother fermented beverages25%, butnotlessthan0.12
litasfor1%ofanalcoholic
strength byvolume perone
liter
2204.21.31.0-
2204.21.49.0;
2204.29.31.0-
2204.29.49.0;
2205.10.10.0;
2205.90.10.0Wine andvermouth ofanalcoholic strength
byvolume higher than13% vol,butnot
exceeding 18%vol40%, butnotlessthan0.15
litasfor1%ofanalcoholic
strength byvolume perone
liter
2204.21.51.0-
2204.21.90.0;
2204.29.51.0-
2204.29.90.0;
2205.10.90.0;
2205.90.90.0Wine andvermouth ofanalcoholic strength
byvolume exceeding 18% vol40%, butnotlessthan0.25
litasfor1%ofanalcoholic
strength byvolume perone
liter
2204.10;
2204.21.10.0;22
04.29.10.0Champagne andwineofincreased pressure 25%, butnotlessthan0.25
litasfor1%ofanalcoholic
strength byvolume perone
liter
2203 Beer 15%, butnotlessthan0.4
litas/ liter***
Cigarettes withfilter:
2402.20.00.0 Imported anddomestically produced
cigarettes ofextra class20%, butnotlessthan10
litasfor1000 units
2402.20.00.0 Domestically produced cigarettes ofalower
quality (“Kaunas ”,“Klaipeda ”,“Kastytis ”,
“Armada ”,etc.)20%, butnotlessthan8
litasfor1000 units
2402.20.00.0 Cigarettes without filter 20%, butnotlessthan5
litasfor1000 units
2402.10.00.0;
2402.90.00.0;
2403****Packed smoking tobacco and
other tobacco products50%oftaxable valueWT/ACC/LTU/4
Page22
Commodity
code*Commodity Rate
(percent)
2710.00.26.0;
2710.00.27.0;
2710.00.29.0;
2710.00.32.0;
2710.00.34.0;
2710.00.36.0;
2710.00.37.0Motor fuel 33%, butnotlessthan400
litaspertone*****
2710.00.51.0;
2710.00.55.0;
2710.00.69.0;
2710.00.74.0;
2710.00.76.0Kerosene, fuelforjetengines,
diesel fuel,liquid fuel,except residual oil25%, butnotlessthan190
litaspertone*****
2710.00.87.0;
2710.00.89.0;
2710.00.92.0;
2710.00.94.0;
2710.00.96.0;
2710.00.98.0Allkinds ofoil 8%,butnotlessthan180
litaspertone
1806.20.00-1806
.20.80.0,
1806.31-
1806.90Chocolate andother foodproducts
containing cocoa, except cocoa powder and
products containing lessthan18%amount of
cocoa butter10%oftaxable value
0901 Coffee 10%oftaxable value
7113, 7114,
7116Articles ofjewellery andparts thereof, of
precious metal orofmetal cladwithprecious
metal, articles ofgoldsmiths 'or
silversmiths 'wares andparts thereof, of
precious metal orofmetalclad withprecious
metal, articles ofnatural orcultured pearles,
precious orsemi-precious stones10%oftaxable value
ex8703 Luxury carsnotolder than5years when the
price ofnewbasic model ofthecarishigher
thanthemaximum untaxable value -60thou
litas, except thespecial cars15%oftheprice,
exceeding themaximum
untaxable value -60thou
litas.
2716.00.00.0 Electricity 1%oftaxable value
ex4901;
ex4902Issues oferotic andviolent character 50%oftaxable value
*Thetaxable value is:
1. fordomestically produced goods -theselling price ofgoods exclusive VAT andexcise tax;
2. forimported goods -customs value ofgoods including customs duty
** Commodities codes aregiven according totheECCombined Nomenclature.
*** For100thoudecaliters ofbeer(produced andsold) foreachenterprise which isproducing
beerinLithuania theexcise taxis0.2litasperliter.
**** Excise taxisnotapplied totobaco products (code 2403.10.90.0) imported bythecompany
“Philip Morris Lietuva ”.
***** Theexcise taxrateforoilproducts made instock company "Mazeikiu nafta" shallbecomputed
onlybylitaspertone. There isnoexcise taxratesince 1August 1995, forjetfuelbeing
imported forstock companies “Lietuva ”and“Lietuvos avialinijos ”(Lithuanian Airlines) and
purchased instock company “Mazeikiu nafta”(code 2710.00.55.0).WT/ACC/LTU/4
Page23
Taxrates
Thebasic ratesoftaxonimmovable property arethefollowing: 1percenttaxable value for
immovable property usedinbusiness activity provided forinthetaxpayer 'sbylaws; and5percent
oftaxable value forimmovable property thathasnotbeenusedinbusiness activity provided forin
thetaxpayer 'sbylaws formore thanoneyear. Local authorities havetherighttoreduce thisrate.
Exemptions
Thefollowing property isexempt from taxation:
- immovablepropertyofdiplomaticandconsularmissionsofthosestateswherediplomatic
andconsular missions oftheRepublic ofLithuania areexempt frompayment ofthis
oranalogous taxes;
- immovable property ofhealth care,science andstudies, educational, cultural, sports,
social assistance andpre-school institutions, enterprises andorganisations;
- immovable property ofcharitable funds andcharitable organisations;
- immovable property ofagricultural enterprises;
- immovable property ofstateenterprises;
- immovable property usedfortheenvironmental protection orforfireprotection;
- buildings usedforcemeteries andburial services;
- others.
Road tax
Road taxiscalculated asapercentage ofrevenues, except forbanks thatpayapercentage of
themargin earned. Theratedepends ontheactivity oftheenterprise:
-industrial, construction, transport,
repair enterprise 0.6%
-trade andsupply enterprises 0.3%
-stategasenterprises 0.1%
-banks 1.0%
-other enterprises 1.0%
Public feeding, stateagricultural andagricultural partnerships donotpayroadtax.
Question 114
Areexcise taxes applied equally onimported anddomestically produced goods?
Reply
Fordomestically produced goods thetaxable value onexcise taxistheselling price ofgoods
exclusive VAT; forimported goods thetaxable value onexcise taxisthecustoms value ofgoods
including customs duty.WT/ACC/LTU/4
Page24
5. Foreign anddomestic investment policy
Question 115(thesame asQuestion 51)
Explain Lithuania 'sintentions regarding TRIMs notifications andtransition.
Reply
ThenewLawonForeign Capital Investment intheRepublic ofLithuania (13June1995) (a
copyhasbeendeposited withWTO Secretariat) doesnotrestrict thetrade activity ofenterprises with
foreign capital. ThisLawconforms withTRIMs provisions.
Question 116
Forwhich areas areforeign investments "forbidden orrestricted" byLithuania?
Reply
Seetheanswer toQuestion 52.
6. Government procurement
Question 117
What isthestatus oftheLawonGovernment Procurement?
Reply
Seetheanswer toQuestion 57.
7. State trading. State enterprises.
Question 118
Please explain indetail which areas arecovered inLithuania bystate trading andthe
volume ofthistrade (State trading enterprises aregovernment-operated import/export monopolies
andmarketing boards, orprivate enterprises thatreceive special orexclusive privileges from their
government toengage intrading activities; seeArticle XVII formore details). Does Lithuania
intend tonotify these enterprises under Article (XVII)?
Reply
From atotalnumber of59former statetrading enterprises under jurisdiction oftheMinistry
ofIndustry andTrade, onlyonestock company ("Dzukija") isnotintended forprivatisation byyear
2000; itsmainfunction ismanagement ofthestatereserve. Itwillhave100percentstate-owned capital.
Therestareprivatised orwithprivatisation inprogress, withstate-owned capital varying upto
approximately 49percent.
Foradditional information seetheanswers toQuestions 58-60.WT/ACC/LTU/4
Page25
Question 119
What isthedisposition oftheLawonTrade? Where doesitstand inthelegislative process?
What are"emergency situations" thatLithuania believes would justify imposition ofstatetrade
monopolies?
Reply
Seetheanswer toQuestion 58.
"Emergency situations" hasthemeaning ofthenatural calamities, situation ofwar,harm for
health, emergency ininternational relations, etc.
Question 120
Please elaborate ontheoperations ofthestateimport firms suchas"Alita" foralcoholic
beverages. What is"Alita 's"volume oftrade. DoesLithuania intend tonotify "Alita" under Article
(XVII?)? Howdodomestic wholesale prices foralcohol compare withtheimport prices? Assuming
state trading corporations import atworld market prices andthenresell atlocal prices, howis
theprice differential accounted for?How aretheprofits used?
Reply
Statestock company "Alita" (according newclassification "Special enterprise") isnotastate
import company. "Alita" doesnotcarry outtheimport ofalcoholic beverages; itimports onlythe
material andsemiproducts forproduction.
Question 121
DoesLithuania haveanyimport monopolies other thanforalcohol (either stateorprivately
managed)? Does Lithuanian maintain anystate trading enterprises foragriculture exports?
Aretheareas onagricultural products covered inLithuania bystatetrading; iftheyare
what isthevolume ofthistrade? Does Lithuania intend tonotify these enterprises under
Article XVII?
Reply
Therearenostatetradingenterprisesforagricultureexportsandtherearenoagriculturalproducts
covered bythestatetrading inLithuania.
Foradditional information seetheanswer toQuestion 58.
8. Subsidy policy
Question 122
Thissection states thatLithuania lacks theresources togrant subsidies onalarge scale
andsubsidies thataregranted donotnegatively impact trade. Please identify subsidies thatare
granted, andclarify howthese subsidies donotimpact trade.WT/ACC/LTU/4
Page26
Reply
Seetheanswer toQuestion 62.
10. Protection ofintellectual property rights
Question 123
HasLithuania reviewed itsexisting legal framework dealing withpatents, trademarks,
andcopyrights todetermine whether itiscompatible withobligations contained intheTRIPS
agreement? Ifso,what changes hastheGovernment ofLithuania determined arenecessary in
order tocomply withTRIPs obligations? When doesitplantomake these changes?
Reply
Seetheanswers toQuestions 65-67.
Questions 124
Please provide alistoftheinternational agreements inthefieldofintellectual property
towhich Lithuania iscurrently asignatory, thedateofaccession andanyreservations made.
Reply
1. Agreement between theRepublic ofLithuania andtheUnited States ofAmerica onTrade
Relations andIntellectual Property Rights Protection, (signed -26April 1994, non-ratified);
2. FreeTrade Agreement between Lithuania andNorway includes provisions forintellectual
property rights (signed -16June1992; entered intoforce -1August 1993);
3. FreeTrade Agreement between theRepublic ofLithuania andtheSwiss Confederation includes
provisions forintellectual property rights (signed -24November 1992; entered intoforce -
1March 1994);
4. Agreement between theKingdom ofDenmark andtheRepublic ofLithuania onMutual
Protection ofTrade andCollective Marks (signed -24March 1993; entered intoforce -
24March 1993);
5. Agreement between theGovernment oftheRepublic ofLithuania andtheEuropean Patent
Organization onCooperation intheField ofPatents (Cooperation Agreement) (signed -
25January 1994; entered intoforce -1March 1994 forfiveyears period);
6. Agreement implementing Article 3(3)oftheCooperation Agreement between theGovernment
oftheRepublic ofLithuania andtheEuropean Patent Organization of25January 1994(signed
-25January 1994, entered intoforce -5July1994);
7. Multilateral Trademark LawTreaty (signed -28October 1994, notyetratified).
Itmust bestressed thatLithuania hasjoined:WT/ACC/LTU/4
Page27
-Paris Convention (7May1992),
-Patent Corporation Treaty (5July1994),
-BernConvention (14December 1994).
On30April 1992, Lithuania became amember totheWIPO.
AgencyofLithuanianCopyrightProtectionAssociation(LATGAA)isanindependentnon-profit
society founded byLithuanian creative unions. IntheAgency there areManagement ofPublic
performance ofMusical Works (Small Rights), Drama andMusical-Drama Works (Grand Rights).
Works ofFineArts, Photography, Applied Arts, andAudiovisual Works functioning asindependent
subdivisions. TheAgency actsonthebasis ofagreements withauthors andusers ofworks.
Today LATGAA istheonlyofficial copyright protection organisation, although thelawsof
Lithuania notgrant LATGAA theexclusive righttogivepermission forpublic useofworks, butit
should besaid, thatlately theprocess ofmaking agreements withauthors became rather intensive,
asthenews about LATGAA being veryactive intheterritory ofLithuania.
LATGAA isconcluding appropriate agreements withforeign sister societies oncopyright
protection.
Intheareaofneighbouring rights theMusic Industry Association (MIA) wasrecently founded.
Question 125
IsLithuania currently considering joining other suchinternational agreements? Ifso,at
what stage areyour preparations?
Reply
Lithuania iscurrently considering joining totheRome andGeneva Conventions.
Question 126
DoanyofLithuania 'sintellectual property laws, regulations andpractices contain any
exceptions totheprinciple ofnational treatment orMFN treatment? Ifso,please listeachofthese
exceptions andLithuania 'splans toremove them, ifany.
Reply
Lithuania 'sintellectual property lawsatthemoment ofdrafting thereof werealready oriented
toconfirm requirements ofBern andParis conventions. Lithuania nowbeing contracting stateto
aforementioned conventions hasnoexceptions totheprinciple ofnational treatment, neither toMFN
treatment.
Foradditional information seetheanswers toQuestions 65-67.WT/ACC/LTU/4
Page28
Patents
Question 127
What inventions, ifany,areexcluded from patentability?
Reply
Thefollowing inventions areexcluded from patentability:
- methods oftreatment ofpeople andanimals;
- diagnostics andprevention ofdiseases (with theexception ofequipment andmaterials
utilised forsuchmethods);
- varieties ofplants andanimals aswellasbiological (except microbiological) methods
oftheirproduction (seetheanswer toQuestion 31.7);
- inventions which aredeemed tobecontrary topublic interest, principles ofhumanity
andmorality.
Question 128
Areplant varieties protected under Lithuanian law? Ifso,howaretheyprotected?
Reply
Seetheanswer toQuestion 31.7.
Question 129
Does Lithuanian lawprovide patent holders thefullrange ofrights outlined inTRIPs
Article 28?Ifnot,what rights arenotcurrently provided?
Reply
Yes,itdoes. Thesame scope ofrights asinArticle 28ofTRIPs isprovided.
Question 130
What istheterm ofprotection inLithuania? Arepatent terms extendible under any
circumstances? Ifso,under what circumstances?
Reply
20years from thedateoffiling theapplication. Non-extendible.
Question 131
Does Lithuanian lawcontain anyexceptions totheexclusive rights conferred byapatent
(examples might include Government useprovisions, prior userrights, etc.)?WT/ACC/LTU/4
Page29
Reply
There aretwoexceptions totheexclusive rights conferred byapatent inArticles 39and29
ofLithuanian Patent Law(18January 1994), andnamely:
(a) taking intoconsideration thestateorpublic interests, theGovernment mayadopt adecree,
evenwithout theconsent oftheowner ofapatent, toallow acompany oraperson tousea
patented invention subject topayment ofequitable remuneration totheowner ofthepatent;
theowner ofthepatent whofinds theamount ofremuneration asfixed bytheGovernment
non-equitable shallhavetherighttoappeal tothecourt;
(b) natural andlegalpersons whoingood faithwere using orwere making effective orserious
preparations forsuchusebefore thefiling dateor,where priority isclaimed, thepriority date
ofpatent application, shall havetheright tocontinue suchuseortousetheinvention as
envisaged insuchpreparations without taking intoconsideration thewilloftheowner ofthe
patent (e.g.therightofprior useisprovided).
Question 132
DoesLithuanianlawprovidefortheissuanceofcompulsorylicences?Ifso,onwhatgrounds
andwithwhat limitations?
Reply
Yes,itdoes. Article 38ofthePatent Lawreads asfollowing:
Ifaftertheexpiration ofaperiod offouryears fromthedateoffiling theapplication orthree
years from thegrant ofthepatent (whichever isalter), there isnon-working orinsufficient working
ofthepatented invention andthose willing towork itarerefused alicence, ontherequest ofanyperson
whoproves hisability towork thepatented invention, thecourt maygrant anon-exclusive compulsory
licence. Thegrant ofthecompulsory licence shallbesubject tothepayment ofequitable remuneration
totheowner ofthepatent theamount ofwhich shallbefixed bythecourt.
Acompulsory licence shallnotbegranted ifthecourt isconvinced thatcircumstances exist
which justify thenon-working orinsufficient working ofthepatented invention inLithuania.
Where acompulsory licence isgranted andthepatented invention isstillnotorinsufficiently
worked, thecourt attherequest orpersons interested mayprescribe aforfeiture oftwoyears from
thedateonwhich thefirstcompulsory licence wasgranted.
Question 133
Arethere anyrestrictions onapatent owner 'srights toassign, transfer, licence rights
under apatent?
Reply
Norestrictions onrights. Only fewformal requirements, forinstance, change inownership
(assignment, transfer) orlicence agreement mustbedoneinwriting andregistered bythePatent Office.WT/ACC/LTU/4
Page30
Question 134
What isthesizeoftheexamining coreinLithuania 'sPatent Office? Howmany applications
aresubmitted/processed eachyear? Inwhattechnological categories? What istheaverage pendency
period?
Reply
Thesizeoftheexamining coreinLithuania 'sPatent Office is4persons.
Beginning with1992anduntiltheendoffirsthalfyearof1995, 2078patent applications were
filedwiththePatent Office. Inaddition toitbeginning with5July1994, untilnowLithuania was
designated in685European patent applications.
Theaveragependencyperiodofthepatentapplicationis19-22months.Nevertheless,publication
ofpatent application isavailable within 6months afterthefiling dateandinsuchthecasependency
period mayshorten to9-10months.
Question 135
Inthecaseofproducts which maybeproduced through theuseofpatented processes,
arethere anyinstances when thedefendant isobliged toprove thattheproduct wasproduced
through adifferent process, asrequired byTRIPs Article 34?
Reply
LithuanianPatentLawdoesnotprovidedirectlythatthedefendantisobligedtoprovetheabsence
ofpatented process inhisproduction. Nevertheless, thisobligation arises from theimplementation
ofArticle 41(Protection ofrights) ofaforementioned Law:
(a) theowner ofapatent ortheapplicant hastherighttoinstitute courtproceedings against aperson
(legal entity) whohasinfringed orisinfringing thepatent orpublished patent application for
which provisional protection wasgranted, andtorequire thetermination ofinfringing acts,
aswellascompensation fortheinflicted damage; theowner alsohastherighttoinstitute court
proceedings inthecaseiflikelihood ofinfringement appears;
(b) inaccordance withLithuanian lawsofcivilproceedings atthecourt theburden ofproof is
defendants responsibility.
Question 136
What opportunities existforjudicial review ofadecision torevoke apatent asrequired
byArticle 32ofTRIPs?
Reply
Anopportunity forjudicial review ofadecision torevoke apatent appears fromthecombination
ofArticles 25and40ofLithuanian Patent Law:WT/ACC/LTU/4
Page31
(a) disputes arising before thepatent grant between theapplicant andtheexaminer ofthePatent
Office withrespect torefusal togrant apatent shallbesettled bytheDivision ofAppeals of
thePatent Office;
(b) disputes regarding thedecisions oftheDivision ofAppeals ontherefusal togrant apatent
shallbedealtwithbytheVilnius district court.
Further, anydecision ofVilnius district court maybeappealed before theCourt ofAppeals
andthendecision oftheCourt ofAppeals -before theSupreme Court.
Semiconductors (layout-designs ofintegrated circuits)
Question 137
What form ofprotection doesLithuania nowprovide forsemiconductor layout designs?
How isthatprotection granted?
Question 138
What rights aregranted bysuchprotection? Arethere anyrestrictions orlimitations on
suchprotection? Arecompulsory licences ofsuchtechnology permitted?
Question 139
Areanychanges toLithuanian lawcontemplated atthistimeintheareaofsemiconductor
layout design protection? Ifso,what?
Reply
Concerning theanswers toQuestions 137-139 seetheanswers toQuestions 65-67.
Copyright
Question 140
Does Lithuania comply withthesubstantive obligations ofarticles 1through 21ofthe
Berne Convention (1971), andtheannex thereto?
Reply
Lithuania complies withthesubstantive obligations ofarticles 1-21oftheBerne Convention
(1971) andtheannex thereto.
Question 141
DoesLithuanian lawprotect computer programs asliterary works, asrequired byTRIPs?WT/ACC/LTU/4
Page32
Reply
Lithuanian lawscurrently donotprotect computer programs asliterary works, asrequired
byTRIPs. ButthedraftoftheLawontheProtection oftheComputer Programmes andDataBases
isbeing prepared. ThisLawwillcover restrictions ofprogrammes anddatabaseuser'srights for
importing, exporting, passing, renting orreceiving programmes anddatabases.
Question 142
DoesLithuanian lawprovide rental rights incinematographic works, computer programs,
orsound recordings?
Reply
Lithuanian lawdoesnotprovide rental rights incinematographic works, computer programs
andsound recordings, butLithuania foresees tomake some amendments inthelaw(Civil Code) in
thisarea.
Question 143
Does Lithuanian lawgiveperformers theright toauthorize orprohibit thefixation of
their performances, andthereproduction ofsuchfixations? Ifso,what arethegrounds forand
limitations onsuchprotection?
Reply
Lithuanian laws giveperformers theright toauthorize orprohibit thefixation oftheir
performances andthereproduction ofsuchfixations. TheCivil Code oftheRepublic ofLithuania
provides thegrounds andlimitations onsuch protection (Chapter 5,Article 560"Recording of
Stage-Production orPerformance oftheWork, UseandBroadcast ofRecording", Article 563
"Limitations onRights ofStage-Directors, Performers, Producers ofSound andVisual Recording"
-LawontheAmendment andSupplement totheCivilCode oftheRepublic ofLithuania (17May1994,
acopyhasbeendeposited withWTO Secretariat).
Question 144
What istheterm ofprotection foreach typeofwork protected under Lithuanian law
(including works andsound recordings)?
Reply
Thetermofprotection Copyright (foreachtypeofwork) istheentire lifeoftheauthor and
fiftyyears afterhisdeath. Inthecaseofpseudonymous oranonymous works (when thename ofauthor
isnotindicated), thetermofprotection shallexpire fiftyyears aftertheworks hasbeenmade available
tothepublic.
Thetermoftheprotection under theLawontheAmendments andSupplements totheCivil
Code oftheRepublic ofLithuania (17May1994) Chapter 5Sub-Chapter 47"Rights ofStage-Directors,
Performers andProducers ofSound andVisual Recordings (Neighbouring rights)" shallextend forWT/ACC/LTU/4
Page33
thetimeof50years andbeginning fromtheendoftheyearinwhich therecording wasproduced or
broadcasted.
Therighttothestage-production orperformance ofother work which isnotfixed insound
orvisual recordings beginning fromtheandoftheyearinwhich thestage-production orother work
wasfirstperformed inpublic.
Question 145
Does Lithuanian lawgrant phonogram producers theright toauthorize orprevent the
direct orindirect reproduction oftheir phonograms?
Reply
Lithuanianlawgrantsphonogramproducerstherighttoauthorizeorpreventthedirectorindirect
reproduction oftheirphonograms (Law ontheAmendments andSupplements totheCivil Code of
theRepublic ofLithuania (17May1994), Article 561"Rights ofProducers ofSound andVisual
Recordings").
Question 146
Dobroadcasters have therights specified inTRIPs Article 14?
Reply
Broadcasters havetherights specifies inTRIPs Article 14.
Question 147
Does Lithuanian lawpermit thecompulsory licensing ofworks andsound recordings?
Reply
Lithuanian lawdoesnotcontain provisions oncompulsory licensing ofworks andsound
recordings.
Question 148
DoesLithuanian lawprovide fullretroactive protection forcopyrightable works andsound
recordings, inaccordance withTRIPs Articles 9.1and14.6?
Reply
No.WT/ACC/LTU/4
Page34
Trademarks
Question 149
What isthescope ofsubject matter thatcanbeprotected bytrademark (e.g., names, letters,
numerals, colours, shapes, figurative elements, etc.)?
Reply
Thefollowing canbeprotected bytrademark:
-words, personal names orslogans,
-letters, numerals,
-pictures, emblems,
-three-dimensional forms, including theshape ofproducts andtheirpackaging andcontainers,
-colour, combinations ofcolours andarrangement ofcolours,
-anycombinations oftheabove mentioned signs.
Question 150
Does Lithuanian lawprotect service marks, asrequired byTRIPs?
Reply
Yes,itdoes(Law onTrademarks andService Marks (3June1993) -acopyhasbeendeposited
withWTO Secretariat).
Question 151
Does Lithuanian lawprotect wellknown marks? Ifso,towhat extent andunder what
conditions? What isthedefinition of"well known"?
Reply
Yes,itdoes. Buttheexclusive right toatrademark inLithuania arises asarulefrom the
registration andnotfromuseas,forinstance, inScandinavian countries. Soisalways better toregister
themark withthePatent Office thantoexpect recognition viabecoming awell-known mark.
Article 4oftheLawonTrademarks andService Marks (3June1993) claims thatsignshall
notberegistered asatrademark ifitisidentical orconfusingly similar tomarks which arewellknown
inLithuania. Inspiteofthat,oneshallalways remember thatinaccordance withLithuanian lawsof
civilproceedings theestablishment ofpresence orabsence oflegalfactisthecompetence ofthecourt.
Thatmeans, before filing anopposition withtheDivision ofAppeals ofthePatent Office orbefore
bringing theaction before thecourt ininfringement caseonemusthavethecourt'sdecision thathis
trademark iswellknown.
Article 20ofaforementioned Lawentrusted thePatent Office toestablish theconcept of
well-known mark.WT/ACC/LTU/4
Page35
Atradeorservice mark thatiswellknown intheRepublic ofLithuania irrespectively ofwhat
goods andservices aremarked withit,shallberecognised asignhaving atotality ofthefollowing
criteria:
- corresponding totherequirements totrademarks andservice marks provided forin
thelawsoftheRepublic ofLithuania,
- known forthemost oftheconsumers ofLithuania (nolessthan70percent-based
onselective interviewing) thanks tothegoods andservices marked withitandconsumed
ontheLithuanian market,
- registered, usedandknown inother countries -members oftheParis Union forthe
Protection ofIndustrial Property,
- usedinagreater partofLithuania,
- permanently advised inthepress, radio andtelevision ofLithuania,
- having astrong distinctive character andbeing original andtheonlyontheLithuanian
market,
- usedontheLithuanian market fortheperiod noshorter thanfiveyears before thedate
ofclaiming tothestatus ofawell-known mark.
Question 152
Towhat extent does awell-known mark thatisnotregistered inLithuania receive
protection? What specific rights doestheowner ofanunregistered well-known mark have?
Reply
Seetheanswer toQuestion 151.Filing oftheapplication withthePatent Office inanycase
prevails.
Question 153
What rights aregranted theholder oftrademarks? Arethere anyexceptions tosuchrights
(e.g., restrictions onuse)?
Reply
Theholder ofamark shallhavetheright toprevent third parties from using, without his
authorization, anysignwhich:
- isidentical withthemark inrespect ofthesame goods orservices forwhich itis
registered, and
- isidentical withthemark inrespect ofsimilar goods orservices, orsimilar tothemark
inrespect ofthesame orsimilar goods orservices, where there exists alikelihood
ofconfusion onthepartofthepublic, including thelikelihood ofassociation between
thesignandthemark.
Theholder ofaregistration shallhavetherighttoprevent thirdparties from using, without
hisauthorization, inanywaythatjeopardises thedistinctive character oftheregistered mark, anysign
which isidentical orsimilar tothemark.
Theaforementioned requirements shallnotprevent anyperson from using:WT/ACC/LTU/4
Page36
- hisownname andaddress;
- indications concerning thekind,quantity, intended purpose, value, geographical origin,
thetimeofproduction ofgoods orother characteristics ofgoods orservices;
- theregistered markofathirdpartywhere itisnecessary toindicate theintended purpose
ofagood orservice, inparticular asaccessories orspare parts; and
- theregistered mark ofathirdparty incomparative advertising, where suchadvertising
ispermitted, provided thatuseismade inaccordance withhonest practices inindustrial
orcommercial matters.
Question 154
DoesLithuanianlawimposeanyrestrictionsonthelicensing,transfer,oruseoftrademarks?
Ifso,what arethey?
Reply
Thesame formal requirements onlyasinthecaseofpatents -seetheanswer toQuestion 133.
Question 155
Does registrability depend onuse?
Reply
No,itdoesnot.Anapplicant neednottoprove theuseofmark hefiles, neither thefuture
intention tousethetrademark when registered.
Question 156
Under what conditions mayamark becancelled fornon-use?
Reply
Amark maybecancelled fornon-use bythecourt attherequest ofanyinterested person if
themark hasnotbeenusedorhasnotbeenthesubject ofserious preparations forcommencement of
usebytheholder oftheregistration intheterritory ofLithuania, without justifying cause, within the
period offiveyears preceding thedateonwhich thejudicial proceedings were commenced.
Question 157
What istheroleoftheTrademark Registrar ininfringement actions?
Reply
TheroleoftheTrademark Registrar (e.g.thePatent Office) ininfringement actions isneutral
-havingpresentingsystemofregistrationoftrademarksinLithuaniaitisapplicantsriskandresponsibility
toapply fortrademark registration having "clean" (e.g. noidentical, neither confusingly similar)
trademark withrespect tothose already filednorregistered. Examination ofthemark iscarried out
onlyregarding absolute requirements ofArticle 3(Law onTrademarks andService Marks) tobe
mentioned below intheanswer toQuestion 158.WT/ACC/LTU/4
Page37
Question 158
What arethegrounds onwhich theregistrar mayrefuse toregister amark? Areinterested
persons given aright tooppose theregistration ofamark? Ifso,what procedure isprovided?
Reply
Thegrounds onwhich theregistrar mayrefuse toregister amark (Article 3oftheLawon
Trademarks andService Marks) arethefollowing:
- ifthemark hasnodistinctive character;
- ifitbecame thegeneric name forthegoods;
- ifitexclusively designates, intrade, thekind(type), quality, quantity, intended purpose,
value, place oforigin, timeormeans ofproduction ofthegoods orofrendering of
theservices, orother characteristics ofthegoods orservices;
- ifitiscapable ofmisleading thepublic; and
- ifitiscontrary tomorality orpublic order, including ethics orsociety andhumanitarian
principles.
Interested persons aregiven arighttooppose theregistration ofthemark withtheDivision
ofAppeals ofthePatent Office within three months from theappearance inOfficial Gazette ofthe
trademark entered totheTrademark Register. Ifinterested person failstofileanopposition indue
timetheopposition maybebrought onthesame grounds before thecourt (Vilnius district court).
Question 159
Does registration ofamark satisfy notice oftheexclusive right oftheright holder to
potential infringers? Does aright holder have togiveactual notice toaninfringer before the
infringer isliable? Orisregistration ofthemark sufficient?
Reply
Right holder mustnotgivenotices topotential infringers. Registration ofthemarkissufficient.
Question 160
Istherecordation ofanassignment mandatory? Ifso,what aretheconsequences ofnot
recording anassignment?
Reply
Yes,itis.Ifnotrecorded intheTrademark Register, itshallbedeemed astohavenoeffect.
Question 161
Towhat extent aredecisions ofthetrademark registrar appealable toacourt oflaw?WT/ACC/LTU/4
Page38
Reply
Theapplicant while receiving notification onrefusal toregister histrademark onthegrounds
provided forinArticle 3oftheLawonTrademarks andService Marks (seetheanswer toQuestion 158)
hastherighttorequire re-examination oftheapplication. Ifdecision afterthere-examination isleft
unchanged theapplicant hastherightwithin three months tofilewiththeDivision ofAppeals ofthe
Patent Office arequest toreview thesaiddecision.
Further, within threemonths fromthedateofreceipt ofthedecision oftheDivision ofAppeals,
theapplicant hastherighttoappeal against thesaiddecision before thecourt (Vilnius district court,
secondly -theCourt ofAppeals andthird-theSupreme Court).
Question 162
Areanychanges tothetrademark provisions ofLithuanian lawcontemplated atthistime?
Ifso,what arethey?
Reply
Since Lithuania hassigned theTrademark LawTreaty (multilateral) (Geneva, 28October 1994)
andisinthewayofpreparations toratify it,atthistimethechanges areexpected withregard to
liberalisation offormal requirements totheregistration oftrademarks.
Meanwhile, changes intheLawonTrademarks andService Marks (3June1993) arenot
necessary inviewofthefact,thataforementioned Lawitself (Article 34)provides theprevalence of
requirements ofinternational agreements towhich Lithuania istheparty. Amendments andsupplements
totheRegulations ontheRegistration ofTrademarks willbesufficient.
Industrial Designs
Question 163
What form ofprotection doesLithuania nowprovide forindustrial designs? Howisthat
protection granted?
Reply
Legal protection forindustrial designs isgranted viaregistration thereof withtheLithuanian
Patent Office.
LawonIndustrialDesignwaspassedon4July1995,andenteredintoforceon1September1995
(acopywillbesubmitted afterthetranslation).
Question 164
What rights aregranted bysuchprotection? Arethere anyrestrictions orlimitations on
suchprotection?WT/ACC/LTU/4
Page39
Reply
Theright holder ofregistered industrial design hastheright toprevent third parties from
performing thefollowing acts:
- production oftheproducts orthepartofsuchproduct which isregistered asanindustrial
design;
- offering orputting onthemarket forsale,export anddistribution ofproducts orparts
thereof registered asanindustrial design.
Therestrictions andlimitations ofprotection conferred bytheregistration ofindustrial design
arementioned below.
Thefollowing actsshallnotberegarded asinfringing therights oftheowner ofanindustrial
design, if:
- theyhadbedonetosatisfy ownneeds anddonotthreaten economic interests ofthe
owner ofindustrial design;
- theyhadbeendoneforscientific, research orexperimental purposes;
- anindustrial design hadbeenusedonvessels, aircraft andother means oftransport
andtheirequipment registered inforeign states andalsoinimported component parts
andmeans usedforthepurposes ofrepair thereof when suchvessels, aircraft andother
means oftransport aretemporary intheterritory ofLithuania.
Question 165
Areanychanges toLithuanian lawcontemplated atthistimeintheareaofindustrial
design protection? Ifso,what?
Reply
There arenochanges totheLawonIndustrial Design contemplated atthistimeonthatsimple
reason thatthisLawwasjustadopted in4July1995.
Trade Secrets
Question 166
Does Lithuania nowprotect trade secrets? How isthatprotection granted?
Question 167
What rights aregranted bysuchprotection? Arethere anyrestrictions orlimitations on
suchprotection?
Question 168
Areanychanges toLithuanian lawcontemplated atthistimeintheareaoftrade secret
protection? Ifso,what?WT/ACC/LTU/4
Page40
Reply
Concerning theanswers toQuestions 166-168 seetheanswers toQuestions 65-67.
Competition andAntitrust
Question 169
DoesLithuania haveanylawsthatwould fallintotheanticompetitive practices provisions
ofArticle 40ofTRIPs? Ifso,please specify.
Question 170
Arethere anyrestrictions onthelicensing ofintellectual property, oneither domestic or
foreign nationals?
Reply
Concerning theanswers toQuestions 169-170 seetheanswers toQuestions 65-67.
Enforcement
Question 171
What isthejudicial andadministrative system inplace nowfortheenforcement of
intellectual property rights, both civilandcriminal? What istheaverage timeoflitigation of
copyright infringement suits?
Question 172
Does Lithuania provide thefullranges ofrelief required byTRIPs, including injunctive
relief, damages, seizure anddestruction ofinfringing goods, provisional relief, border control
andcriminal sanctions? Ineachcase, indicate under what lawsuchprotection isprovided, and
whether amendments willberequired tofully implement Articles 41-61 ofTRIPs?
Reply
Concerning theanswers toQuestions 171-172 seetheanswers toQuestions 65-67.
ANNEX I. LIST OFTRADE AGREEMENTS WITH THIRD COUNTRIES
Question 173
Please provide copies ofthefollowing agreements withthird countries:
- Agreement between theGovernment oftheRepublic ofLithuania andthe
Government oftheKingdom ofNorway onTrade ofAgricultural Products,
16June 1992;WT/ACC/LTU/4
Page41
- Free Trade Agreement between theRepublic ofLithuania andtheSwiss
Confederation, 24November 1992;
- FreeTrade Agreement between theRepublic ofEstonia, TheRepublic ofLatvia,
andtheRepublic ofLithuania, 13September 1993;
- FreeTrade Agreement between thecountry ofLithuania andtheEuropean Union,
17June 1994.
Reply
Copies ofabove-mentioned agreements havebeendeposited withWTO Secretariat. Thelast
hasbeennotified toWTO andaWorking Party toexamine ithasbeenestablished bytheCouncil on
Trade inGoods.
ANNEX III. STATISTICS TABLES AND FIGURES
Question 174
Please provide trade dataonallagricultural products imports andexports forthepast
three years attheHSsixoreight digitlevel.
Reply
Dataonallagricultural products imports andexports fortheyearof1993-1994 areprovided
intheannex tothispackage ofquestions andreplies.
Table 19. National budget expenditure
Question 175
What farm support programs areavailable toLithuanian farmers? Please provide the
type, quantity, andvalue foreach. According totheMemorandum, approximately 366,000,000
litas(or8percentofthe1994 budget) wasspent onagriculture. Please provide amore detailed
breakdown onwhat these expenditures. Isspending divorced from specific production goals?
Reply
Concerning thefarmsupport programs seetheanswers toQuestions 40-41.
State budget expenditures foragriculture for1994 yearinmlnlitas:
1. Financing ofbudget institutions andmeans 66.5
2. Financing ofreserve offoodproducts andseed 12.4
3. Capital investment 8.5
4. Maintenance oftheMinistry ofAgriculture 2.9
5. Financing ofmeans ofNational
Agriculture Development Activity Programme 186.6
6. Land reclamation 89.1
TOTAL 366.0WT/ACC/LTU/4
Page42
ANNEX IV. GOVERNMENT DECISIONS ONTHE PROCEDURE OFCOMMODITY
EXPORT AND IMPORT REGULATION INTHE REPUBLIC OFLITHUANIA
Question 176
Lithuanian Government Resolution No.303 provides apartial listing ofagricultural import
duties. Please provide acomplete listing ofthecurrent applied agricultural import tariffs bysix
andeight digitHScode.
Reply
Now customs tariffs areapplied following theGovernment 'sResolution No.281 of
28February 1995, which, withtheamendments hasbeensubmitted toWTO Secretariat.
Thelatest changes oncustoms tariffs system areprovided intheanswer toQuestion 86.
Question 177
Section 2.16ofResolution No.102
OntheProcedureofCommodityExportandImportRegulationintheRepublicofLithuania
states thatimport quotas forcereals andcombined fodder arepresented bytheMinistry of
Agriculture andareapproved bytheGovernment oftheRepublic ofLithuania; quotas areallotted
bythecompetitive order.
Please explain ingreater detail howthequotas areallotted. Howoften areimport quotas
set?Istheprocess transparent? How willLithuania change theregulation toreflect theWTO
Agriculture Agreement 'sprohibition against NTM 's?
Reply
Seetheanswer toQuestion 92.
OTHER AREAS NOT ADDRESSED
Services
Question 178
Please outline ingeneral terms, thescope andnature ofcurrent market access forforeign
services providers inLithuania, including bynotlimited theareas ofcommunications, insurance,
professional services, construction, tourism, andwholesale andretail trade. Please detail any
particular barriers toentry unique toforeign providers.
Question 179
Inthisdescription, please include reference toanydiscretionary investment authorizations,
reciprocity measures, ordiscriminatory practices involved inprivatisation, inaddition tootherWT/ACC/LTU/4
Page43
measures inconsistent withtheprovisions onmarket access, national treatment, andMFN ofthe
General Agreement onTrade inServices (GATS).
Question 180
Please describe andprovide English translations ofLithuanian laws andregulations
governing international participation initsservices sector.
Financial Services
Question 181
Does theGovernment ofLithuania currently impose orplantoimpose anylimitations
onmarket access ornational treatment inthefinancial services sector? (This should include any
discretionary investment authorizations, reciprocity measures, ordiscriminatory practices involved
inprivatisation, inaddition toother measures inconsistent withtheprovisions onmarket access,
national treatment, andMFN oftheGeneral Agreement onTrade inServices (GATS).) Ifso,
please describe anyrestrictions. DoestheGovernment ofLithuania haveatimetable foreliminating
these restrictions?
Question 182
Please describe anylaws, regulations, orpractices which address thefollowing:
(a) theability ofanon-resident financial service provider toprovide cross-border intothe
territory ofyour country advisory andother auxiliary financial services, theprovision
andtransfer offinancial information, andfinancial dataprocessing (asdefined inpar.5
oftheAnnex onFinancial Services);
(b) whetherresidentsofyourcountrymaypurchasefinancialservicesintheterritoryofanother
party;
(c) theability ofanon-resident financial service provider toestablish andexpand acommercial
presence inyour country asabranch, anagency, arepresentative office, andasa
wholly-owned subsidiary, either through denovo investment orthrough acquisition of
existing enterprises, under terms andconditions ofauthorization thataccord national
treatment;
(d) theability ofaforeign-owned financial service provider established inyour country to
compete tosupply financial services onterms andconditions thatarenolessfavourable
thanthose applied tofinancial service providers ofyour country inlikecircumstances
(including theopportunity toparticipate inanyself-regulatory body, securities orfutures
exchange ormarket, clearing agency orother organization orassociation).
Question 183
Arethere anyrestrictions onthetemporary entry ofthepersonnel ofafinancial services
provider thatisestablishing orhasestablished acommercial presence inyour country?
Reply toQuestions 179-183
Theprovisions ontrade inservices inLithuania willbesubmitted byaseparate document.WT/ACC/LTU/4
Page44
APPENDIX I
STATISTICAL DATA
LIST OFTABLES
1. Gross Domestic Product atCurrent Prices (1992-1994)
2. Inflation Rate(1991-1994 ).........................................
3. Gross Domestic Product (1992-1994)...........................
4. Balance ofPayments (1992-1994)...............................
5. Balance ofForeign Trade (1994)...................................
6. Main Lithuanian Foreign Trade Partners (1994).............
7. Foreign Trade in1994....................................................
8. National Budget Expenditure 1994..............................
Table 1
GROSS DOMESTIC PRODUCT ATCURRENT PRICES (1992-1994)
1992 1993 1994
mln
US$*% mlnUS$ % mlnUS$ %
TOTAL 1331.8 100.0 2381.0 100.0 4054.4 100.0
Industry 524.1 39.4 778.0 35.1 940.6 23.2
Agriculture, forestry 284.1 21.3 291.0 12.0 328.4 8.1
Transport and
communication60.6 4.6 276.4 11.6 401.4 9.9
Construction 73.3 5.5 201.1 8.4 352.7 8.7
Trade 164.4 12.3 244.8 10.3 952.8 23.5
Restaurants andhotels 14.9 1.1 18.8 0.8 36.5 0.9
Banks production 113.9 8.6 89.3 3.8 166.2 4.1
Finance andinsurance 1.2 0.1 3.9 0.2 28.4 0.7
Other 95.3 7.1 423.7 18.6 847.3 20.9
* US$calculated asanaverage mean ofUS$saleandpurchase prices inallbanks ofLithuania
attheendofthequarter.
Source: Statistics DepartmentWT/ACC/LTU/4
Page45
Table 2
Inflation Rate (1991-1994)
1991 1992 1993 1994
TOTAL IQ IIQ IIIQ IVQ
382.7% 1162.6% 188.7% 45.1% 11.4% 10.4% 6.8% 10.5%
Source: Statistics Department
Table 3
Gross Domestic Product (1992-1994)
mlnUS$ %change overthe
periodPercapita inUS$
1992 1821.8 100.0 487
1993 2593.1 -23.7 696
1994 4075.7 0.6 1095
I 946.4 0.6 254
II 1007.6 4.0 271
III 1012.8 8.1 272
IV 1108.9 -11.6 298
Source: Statistics Department
Table 4
Balance ofPayments
(mln litas)
1992 1993 1994
1.CURRENT ACCOUNT 533.94 -362.84 -359.72
Trade balance 182.97 -665.00 -802.04
Service balance 247.36 -240.45 -215.52
Income balance 9.17 34.38 34.22
Transfers balance 94.44 508.23 623.62
2.CAPITAL ACCOUNT -65.92 1284.13 1278.39
3.OFFICIAL SETTLEMENTS
(Reserves)-341.39 -1299.42 -735.03
TOTAL 126.63 -378.13 183.64
Source: Statistics departmentWT/ACC/LTU/4
Page46
Table 5
Balance ofForeign Trade (1994)
(mln USD)
IQ IIQ IIIQ IVQ 1994
Export 417 473 630.25 499 2019.25
re-export 66 166.75 283.25 182 698
Import 640.5 570.25 513.75 596.25 2338.75
re-import 1.25 2.75 3.25 8.5 15.75
Balance -223.5 -97.25 98.5 -97.25 -319.5
Source: Statistics Department
Table 6
Main Lithuanian Foreign Trade Partners
(1994)
Country Import Export
mlnlitas % mlnlitas %
TOTAL 9355.5 100 8077.2 100.00
Belorus 356.1 3.8 529.4 6.5
Denmark 243.4 2.6 140.4 1.7
Estonia 150.9 1.6 205.7 2.5
Italy 257.2 2.7 152.6 1.9
United Kingdom 132.1 1.4 186.6 2.3
USA 185.7 2.0 51.5 0.6
Kazakhstan 60.2 0.6 168.9 2.1
Latvia 254.9 2.7 628.0 8.4
Poland 375.5 4.0 404.1 5.0
Netherlands 253.3 2.7 423.2 5.2
Russia 3672.6 39.3 2280.4 28.2
Finland 273.0 2.9 77.5 1.0
Sweden 222.5 2.4 251.4 3.1
Ukraine 467.6 5.0 496.7 6.1
Germany 1287.7 13.8 926.4 11.5
Others 1162.8 12.5 1100.4 13.9
Source: Statistics DepartmentWT/ACC/LTU/4
Page47
Table 7
Foreign Trade in1994
Country groupExport Import
mlnlitas % mlnlitas %
TOTAL 8077 100 9355 100
EU 2080 25.8 2469 26.4
EFTA 429 5.3 731 7.8
CIS 3774 46.7 4699 50.2
ESTONIA 206 2.5 151 1.6
LATVIA 682 8.4 255 2.7
OTHER 906 11.3 1050 11.3
Source: Statistics Department
Table 8
National Budget Expenditure
(thou litas)
1993 Spec.
gravity %1994 Spec.
gravity %
1.General public services 142733 5.4 314702 7.2
2.Defence 85899 3.2 80602 1.9
3.Public order andsafety 219165 8.3 410254 9.4
4.Education 530554 20.1 947415 21.7
5.Health 375609 14.2 629680 14.5
6.Social security andwelfare 229384 8.7 328254 7.5
7.Housing andcommunity
services204023 7.7 319127 7.3
8.Recreational, cultural and
religious services99336 3.7 165876 3.8
9.Fuelandenergy 144412 5.5 231141 5.3
10.Agriculture, forestry, fishing
andhunting250530 9.5 336651 7.7
11.Mining andmineral recourses 47899 1.8 19922 0.5
12.Transport andcommunication 44506 1.7 228767 5.3
13.Other economic services 67285 2.5 96226 2.2
14.Expenditure notclassified by
major groups204517 7.7 246748 5.7
TOTAL 2645852 100 4355365 100
Source: Ministry ofFinanceWT/ACC/LTU/4
Page48
APPENDIX II
LIST OFLAWS AND ADDITIONAL MATERIAL OFTHE REPUBLIC OFLITHUANIA
Thefollowing lawsandmaterial areadditional tothose submitted indocuments L/7551/Add.1
of18January 1995, andWT/ACC/LTU/2/Add.2 of12September 1995 andareavailable inthe
Secretariat (Accessions Division, Room 2076) forconsultation:
1. LawontheAmendment andSupplement totheCivil Code oftheRepublic ofLithuania,
No.I-459, 17May1994, (provisions oncopyright);
2. LawontheFundamentals ofFreeEconomic Zones, No.I-976, 28June1995;
3. LawonPrivatisation ofState-Owned andMunicipal Property, No.I-1001, 4July1995;
4. Lawconcerning Control ofImport, Transit andExport ofStrategic Goods andTechnologies,
No.I-1022, 5July1995;
Required material:
1. Agreement between theGovernment oftheKingdom ofNorway andtheGovernment ofthe
Republic ofLithuania concerning Trade inAgricultural Products;
2. FreeTrade Agreement between theSwiss Confederation andtheRepublic ofLithuania;
3. FreeTrade Agreement between theRepublic ofEstonia, theRepublic ofLatvia andtheRepublic
ofLithuania;
4. Agreement onFreeTrade-Related Matters between theEuropean Community, theEuropean
Atomic Energy Community andtheEuropean CoalandSteel Community, oftheonepart,
andtheRepublic ofLithuania, oftheother part;
5. ScheduleoftariffsapprovedbytheLithuanianGovernment'sResolutionNo.443(16June1993),
required bytheQuestion 86totheMemorandum onForeign Trade Regime oftheRepublic
ofLithuania (thefirstversion ofLithuanian tariff system);
6. Statistical dataonimports intoLithuania ofagricultural andfoodproducts, required bythe
Question 174totheMemorandum onForeign Trade Regime oftheRepublic ofLithuania;
7. Statistical dataonexports from Lithuania ofagricultural andfoodproducts, required bythe
Question 174totheMemorandum onForeign Trade Regime oftheRepublic ofLithuania.