REPUBLIC OF LITHUANIA                                     
                                                                                
                         LAW ON CUSTOMS                                         
                                                                                
                                                                                
                                                                                
                      I.GENERAL PROVISIONS                                      
                                                                                
                                                                                
                                                                                
     Article  1.   The  Customs  of  the  Republic  of  Lithuania               
(hereinafter referred  to as the Customs) shall be an institution               
of State  control accountable  to the  Ministry of Finance of the               
Republic of Lithuania and which shall carry out the State customs               
policy. Said institution shall be financed from the State budget.               
                                                                                
     Article 2.  The activities  of the Customs shall be based on               
the Constitution  of the  Republic of  Lithuania, this  Law,  the               
customs code,  and other  laws and  standard acts  which regulate               
customs activities.                                                             
                                                                                
     Article 3.  The Customs  shall be  a legal  person having an               
account with  the Bank  of Lithuania,  as well  as its  own seal,               
symbols, and attributes.                                                        
                                                                                
     Article 4.  The territory  of the Customs of the Republic of               
Lithuania shall  be limited by the customs border of the Republic               
of Lithuania,  which shall  coincide with the State border of the               
Republic of Lithuania.                                                          
                                                                                
     Article 5.  Customs inspection  shall be  mandatory for  all               
legal and  natural  persons,  regardless  of  their  citizenship,               
unless the  laws of  the Republic  of Lithuania  or international               
agreements provide otherwise.                                                   
                                                                                
     Article 6.  Claims of  legal and  natural persons concerning               
the actions  of Customs  officers  and  Customs  posts  shall  be               
settled by  the Director  of the Customs Department or his or her               
deputies, while  claims concerning  the  actions  of  the  latter               
officers shall  be settled  by the  Ministry of  Finance  of  the               
Republic of  Lithuania. Applicants  who do  not  agree  with  the               
decision of  the Ministry  of Finance  shall have  the  right  to               
appeal against  it in  accordance with the procedure set forth in               
the laws of the Republic of Lithuania.                                          
                                                                                
                                                                                
                                                                                
           II. OBJECTIVES AND FUNCTIONS OF THE CUSTOMS                          
                                                                                
                                                                                
                                                                                
     Article 7.  The main objectives and functions of the Customs               
shall be:                                                                       
     1) the  implementation of  laws which  establish the customs               
policy of the Republic of Lithuania;                                            
     2) the application of tariffs and collection of duties;                    
     3) the  prevention of  smuggling  and  other  violations  of               
customs regulations; and                                                        
     4) the  keeping of  the accounts  of the  activities of  the               
Customs  and   the  submission   of  information  concerning  the               
activities of  the Customs to the institutions of the Republic of               
Lithuania in accordance with the procedure prescribed by laws.                  
                                                                                
     Article 8.  The Customs  shall  provide  legal  and  natural               
persons with  information about  the provisions of laws and other               
                                                                                
standard acts  which establish the customs policy of the Republic               
of Lithuania.                                                                   
                                                                                
     Article 9.  The Customs  shall carry  out research  work  in               
order to improve the activities of the Customs.                                 
                                                                                
     Article 10. The Customs shall carry out custom checks of all               
goods and  other valuables  which  are  transported  through  the               
customs border of the Republic of Lithuania, as well as all types               
of vehicles and passengers.                                                     
     The Customs shall confiscate goods and other valuables whose               
illegal  transport  is  being  attempted  by  legal  and  natural               
persons, and shall hand them over for realisation pursuant to the               
set procedure.                                                                  
     The Customs'  procedures as  well as  the procedure  for the               
execution thereof  shall be  established by the Government of the               
Republic of Lithuania or an institution authorised by it.                       
                                                                                
     Article 11.  The Customs shall comply with all international               
agreements which regulate its activities.                                       
                                                                                
                                                                                
                                                                                
                   III. THE CUSTOMS' STRUCTURE                                  
                                                                                
                                                                                
                                                                                
     Article 12. The Customs' structure shall be as follows:                    
     The Customs  Department under the Ministry of Finance of the               
Republic of Lithuania, and custom offices and their posts.                      
                                                                                
     Article 13.  The head  of the  Customs of  the  Republic  of               
Lithuania -  the Director  of the  Customs Department  - shall be               
appointed to  or dismissed  from  the  said  post  by  the  Prime               
Minister of  the Republic  of Lithuania  on  the  motion  of  the               
Minister of  Finance. Deputy  directors of the Customs Department               
shall be  appointed to  and dismissed  from the  said post by the               
Minister of  Finance on the motion of the Director of the Customs               
Department.                                                                     
                                                                                
     Article 14.  The rights  and  duties  of  the  officers  and               
employees of the Customs Department, customs offices, and customs               
posts shall  be established  by the Statute of the Service in the               
Customs, which  shall be  approved by  the Minister of Finance on               
the motion of the Director of the Customs Department.                           
                                                                                
     A customs officer, in performing his or her duties, shall be               
a representative  of power.  The conditions of state insurance of               
an  individual  performing  military  service  shall  be  applied               
customs officers, and their honour and dignity shall be protected               
by law.                                                                         
                                                                                
     Customs officers  who do not have governmental authorisation               
shall not be representatives of power.                                          
                                                                                
     Article  15.   While  carrying  out  the  functions  of  the               
monitoring and  control of  customs duties,  the officers  of the               
Customs shall  wear a  uniform  the  sample  of  which  has  been               
approved by the Government of the Republic of Lithuania.                        
                                                                                
     Article 16. The sample of the identification card of customs               
officers shall  be established  by the Ministry of Finance of the               
Republic of Lithuania.                                                          
                                                                                
                                                                                
                                                                                
     Article  17.  The  hiring  and  dismissal  of  officers  and               
employees of  the Customs  shall be  set forth  in the Statute of               
Service in the Customs.                                                         
     A six  months probation  period  shall  be  established  for               
officers and employees of the Customs.                                          
                                                                                
     Article 18. Citizens of the Republic of Lithuania who are 20               
years of  age and  over, who  have command of the State language,               
who have  suspended their  membership in  political organisations               
for the  entire  period  of  service  or  employment,  and  whose               
qualifications allow  them to engage in customs activities, shall               
be accepted to work in the Customs on a voluntarily basis.                      
                                                                                
                                                                                
                                                                                
      IV. COOPERATION WITH STATE AND PUBLIC ORGANISATIONS,                      
                    DEPARTMENTS AND CITIZENS                                    
                                                                                
                                                                                
                                                                                
     Article 19.  In carrying  out its  functions, the Customs of               
the Republic  of  Lithuania  shall  cooperate  with  the  police,               
institutions of  internal affairs  and security, the State border               
protection service  of the  Ministry of  National Defence  of the               
Republic  of   Lithuania,  the   Procuracy  of  the  Republic  of               
Lithuania, and customs institutions of other states.                            
                                                                                
     Article 20.  For the successful prevention of contraband and               
other violations of customs procedures, as well as for the return               
of values  - the national property of the State - to the Republic               
of  Lithuania,   employees  of   the  Customs  shall  be  granted               
incentives in  accordance with  the procedure  established by the               
Government of the Republic of Lithuania.                                        
                                                                                
     Article 21.  The Customs  shall have the right to direct the               
attention of  the  heads  or  other  officers  of  state,  public               
cooperative   and    private   enterprises,   institutions,   and               
organisations  to   situations  and   conditions   which   create               
circumstances for  the violation  of laws and other standard acts               
which regulate the activities of the Customs. Said officers must,               
within one  month, examine  the proposals  of  the  Customs,  and               
announce the measures which have been taken.                                    
                                                                                
                                                                                
                                                                                
            V. DUTY FREE SHOPS AND STORAGE FACILITIES                           
                                                                                
                                                                                
                                                                                
     Article 22.  A duty  free shop shall be a shop controlled by               
the  Customs  which  is  located  in  an  international  airport,               
international sea  port, or the zone of the border Customs of the               
Republic of  Lithuania  where  passengers  traveling  abroad  may               
acquire duty free goods.                                                        
     Duty free  shops shall  be established and liquidated by the               
Government of the Republic of Lithuania by a separate directive.                
                                                                                
     Article 23.  A part  of the  territory of  the  Republic  of               
Lithuania shall  be allocated  for storage facilities where goods               
for which  import duties  have not  been paid  shall be protected               
under customs control.                                                          
     Storage facilities  may be  established  by  all  legal  and               
natural persons  in accordance  with the procedure established by               
the  Government   of  the   Republic  of  Lithuania  or  a  State               
institution authorised by it.                                                   
                                                                                
                                                                                
                      VI. FINAL PROVISIONS                                      
                                                                                
                                                                                
     Article 24.  The Republic  of Lithuania Law on Customs shall               
be valid  until May 30, 1993. After May 30, 1993, the Republic of               
Lithuania Law  on Customs  shall be  valid  if  the  Minister  of               
Finance approves  the Statute  of the  Service in the Customs and               
the  customs  regulations  in  accordance  with  the  established               
procedure.                                                                      
                                                                                
     Article 25. To declare the Republic of Lithuania Provisional               
Law on  Customs (see  the Lithuanian version of the Parliamentary               
Records No 30-720, 1990, No I-156, 1992 and No 6-118, 1993) to be               
invalid.                                                                        
                                                                                
                                                                                
                                                                                
     I promulgate this Law adopted by the Seimas.                               
                                                                                
                                                                                
                                                                                
ALGIRDAS BRAZAUSKAS                                                             
President of the Republic                                                       
                                                                                
Vilnius                                                                         
29 April 1993