REPUBLIC OF LITHUANIA                                           
                                                                                
                                                                                
                     LAW ON CUSTOMS TARIFFS                                     
                                                                                
                                                                                
                            Chapter 1                                           
                                                                                
                       General Provisions                                       
                                                                                
                                                                                
                                                                                
     Article 1.  This Law shall provide for the procedure for the               
determination, establishment  and application  of customs tariffs               
for the  goods and other valuables imported into or exported from               
the customs territory of the Republic of Lithuania.                             
     This Law  shall be  applied to  legal and natural persons on               
the entire customs territory of the Republic of Lithuania.                      
                                                                                
     Article 2.  The tariffs  of the  Republic of Lithuania means               
the systematized  collection of standard tariffs imposed on goods               
and  valuables  imported  into  and  exported  from  the  customs               
territory of  the Republic of Lithuania . The tariffs, methods of               
assessment of  rates and  structure thereof  shall be approved by               
the Government  of the  Republic of  Lithuania or any other state               
institution authorized by it.                                                   
                                                                                
     Article 3.  The tariffs  shall be  established in accordance               
with the principles and standards used in international practice.               
The nomenclature  of  customs  tariffs  shall  be  based  on  the               
International Convention  of the Harmonized Commodity Description               
and Coding System established in Brussels in 14 June 1983.                      
                                                                                
     Article 4.  All goods  and other valuables imported into the               
customs territory  of the Republic of Lithuania or exported there               
from shall  be subject  to taxation, except in cases provided for               
in Article 5 of this Law.                                                       
                                                                                
     Article 5. Tariffs shall be prepared, determined, abolished,               
or changed  pursuant to  this Law  and according to the procedure               
established by the Government of the Republic of Lithuania.                     
                                                                                
                                                                                
                                                                                
                            Chapter 2                                           
                                                                                
                 Customs Duties and their Types                                 
                                                                                
                                                                                
                                                                                
     Article 6.  According to  the type  of goods  and cargo  the               
following customs duties shall be employed:                                     
     1) exportation  duty --shall be paid for goods and valuables               
exported from the customs territory of the Republic of Lithuania;               
     2) importation  duty --  shall be  paid for  goods and other               
valuables imported  into the customs territory of the Republic of               
Lithuania;                                                                      
     3) seasonal  duty --shall  be paid  for  certain  goods  and               
valuables imported  into the customs territory of the Republic of               
Lithuania and exported therefrom within a certain period.                       
     All these  customs duties  shall be  calculated according to               
the tariffs of the Republic of Lithuania.                                       
                                                                                
     Article 7.  In the  customs territory  of  the  Republic  of               
Lithuania, taking  into consideration  the method of calculation,               
the following customs duties shall be employed:                                 
     1) ad  valorem (value)  duty -  shall  be  calculated  as  a               
percentage  of   the  value   of  the  goods  and  other  things,               
established by the customs office;                                              
     2) specific  duty - shall be calculated according to a fixed               
tariff per a physical unit of goods and other valuables;                        
     3) mixed  duty -  when both  ad valorem (value) and specific               
duties shall be imposed.                                                        
                                                                                
     Article 8.  In the  customs territory  of  the  Republic  of               
Lithuania, taking into consideration the interests of the economy               
of Lithuania  and the  tariffs structure,  the following  customs               
duties shall be employed:                                                       
     1) special  - shall  be employed  as a  counter  measure  to               
discriminative actions  of certain  firms, foreign  countries  or               
their alliances  with regard  to Lithuania. The rate of a special               
customs duty shall be determined in every separate case;                        
     2) antidumping  - shall  be employed  when goods  and  other               
valuables  are   exported  from  or  imported  into  the  customs               
territory of  the Republic  of Lithuania at prices lower than the               
prices  of  similar  or  directly  competitive  goods  and  other               
valuables at  the moment  of their exportation or importation, or               
when the  export or  import of  such goods and valuables inflicts               
damage to the interests of the Republic of Lithuania.                           
     3) countervailing  - shall  be employed when goods are being               
exported from  the customs territory of the Republic of Lithuania               
for the  production or export of which, directly or indirectly, a               
subsidy has  been used,  and if the export of such goods inflicts               
damage to  the interests of the Republic of Lithuania. The amount               
of the  countervailing duty  must not  exceed the  amount of  the               
subsidy;                                                                        
     4) revenue  (financial) - shall be employed when the duty is               
levied on  goods and  valuables in  order to  increase the  state               
budget resources;                                                               
     5) protective  - shall be employed in order to protect local               
producers from the competition of foreign firms;                                
     6) preferential  - shall  be employed in order to reduce the               
customs duty levied on certain goods and other valuables imported               
from other countries;                                                           
     7) leveling  - shall  be employed in order to make equal the               
prices of imported and domestic goods and other valuables;                      
     8) retorsive  - shall  be employed in imposing a duty on the               
goods and other valuables of those countries which levy very high               
duties on their own goods and other valuables;                                  
     9) statistical  - shall  be employed  for the  assessment of               
trade turnover of the Republic of Lithuania.                                    
                                                                                
                                                                                
                                                                                
                            Chapter 3                                           
                                                                                
                    The Rate of Customs Duty                                    
                                                                                
                                                                                
     Article 9.  The customs  duty  levied  on  goods  and  other               
valuables shall be calculated according to the declared value and               
price of  the item. In determining the customs duty, the price of               
the item  indicated in the invoice and the following actual costs               
not  indicated   in  the   invoice  also   shall  be  taken  into               
consideration:                                                                  
     1)  transportation,   loading,  unloading,   reloading   and               
insurance costs  up to the crossing post of the customs border of               
the Republic of Lithuania;                                                      
     2) commission and brokerage;                                               
                                                                                
     Article 10.  If the  owner of  the goods  or other valuables               
states in  the declaration unreal value or price, or if the price               
or value  cannot be  determined or checked, customs officer shall               
determine customs duty according to:                                            
     1)  the  price  of  identical  goods  or  valuables  in  the               
Lithuanian market;                                                              
     2) the  price of  similar or  directly competitive  goods or               
other valuables in the Lithuanian market;                                       
     3) the ratable value of these goods or other valuables.                    
     4)  minimum   export  or   import  control  prices,  if  the               
Government of  the Republic  of Lithuania  or a state institution               
authorized by it has established such prices.                                   
                                                                                
                                                                                
                                                                                
                            Chapter 4                                           
                                                                                
             Calculation and Payment of Customs Duty                            
                                                                                
                                                                                
                                                                                
     Article 11.  The Customs Office of the Republic of Lithuania               
shall calculate the customs duty according to the standard tariff               
rates, which  have been  valid on  the day  of the  filing of the               
declaration. The  procedure for the payment of customs duty shall               
be established  by the Government of the Republic of Lithuania or               
any other institution authorized by it.                                         
                                                                                
     Article 12.  All collected  sums of  customs duties shall be               
remitted to the State Budget of the Republic of Lithuania.                      
                                                                                
                                                                                
                            Chapter 5                                           
                                                                                
             Exemption from Payment of Customs Duty                             
                                                                                
                                                                                
                                                                                
     Article 13.  The following  shall be  exempt from payment of               
customs duties:                                                                 
     1) means  of transportation  by which  freight, luggage, and               
passengers are  regularly transported to other states, as well as               
tools, fuel,  food, and  other commodities, which might be needed               
on the  road, during intermediary stops or in case of breakage of               
said transportation means;                                                      
     2) foreign currency and securities;                                        
     3) goods or other valuables which are not suitable for use;                
     4)  goods   or  other  valuables  which  enter  the  customs               
territory of  the Republic of Lithuania as a humanitarian relief,               
documented in a proper manner;                                                  
     5) goods  and valuables  which are imported into the customs               
territory of  the Republic  of Lithuania for a certain period and               
then exported  again,  or  which  are  temporarily  exported  and               
imported without being processed:                                               
     -goods  meant  for  non-commercial  exhibitions,  fairs  and               
similar events;                                                                 
     -professional    equipment     for    press,     television,               
cinematography,  science,   education,  culture,   medicine,  and               
sports;                                                                         
     - packing and samples of goods;                                            
     - goods used for educational, scientific, and cultural needs               
(books, journals,  newspapers, musical  instruments, theatre  and               
sports equipment, religious articles);                                          
     - the personal belongings of passengers;                                   
     - tourism advertising material; and                                        
     - animals assigned to the goods specified above;                           
     6) technical  equipment for the disabled (wheelchairs, etc.)               
and their spare parts;                                                          
     7) goods and other valuables imported into and exported from               
the duty free shops and customs storage facilities located in the               
customs territory of the Republic of Lithuania; and                             
     8) in  other cases provided for in international conventions               
by the Government of the Republic of Lithuania.                                 
                                                                                
     Conditions and  procedures for exemption from customs duties               
shall be  established  by  the  Government  of  the  Republic  of               
Lithuania.                                                                      
                                                                                
     Article 14. On the decision of the Government, the following               
goods and  valuables shall be completely or partially exempt from               
customs duty:                                                                   
     1) goods  and other  valuables  imported  into  the  customs               
territory of  the Republic  of Lithuania for a certain period and               
after that  exported without  being processed, with the exception               
of groups  of goods  and valuables specified in item 5 of Article               
13; and                                                                         
     2) goods  and other  valuables imported for a certain period               
for processing or exported for processing for a certain period.                 
                                                                                
                                                                                
                            Chapter 6                                           
                                                                                
  Imposition, Refund and Recovery of Customs Duties.  Liability                 
                  for not Paying Customs Duties                                 
                                                                                
                                                                                
                                                                                
     Article 15.  At the  request of  the owner of goods or other               
valuables, customs  duties erroneously  withheld must be refunded               
on the  decision of  the Director of the Customs Department under               
the Ministry  of Finance  of the  Republic of Lithuania or of the               
court within a year from the day the customs duties were paid.                  
                                                                                
     Article 16. The sum of customs duty not paid by the fault of               
the owner  of the  goods or  valuables shall  be recovered by the               
Customs                                                                         
Office  within   a  year  from  the  day  the  customs  duty  was               
registered.                                                                     
                                                                                
     Article 17. If international agreements of the Republic                    
of Lithuania  provide for taxation procedures other than those in               
this                                                                            
Law and  other executive  acts on  tariffs  of  the  Republic  of               
Lithuania,                                                                      
the norms  established in  the international  agreements shall be               
applied.                                                                        
                                                                                
     Article 18.  Upon failure  to pay assigned customs duties, a               
penalty equal  to 300  percent  of  the  customs  duty  shall  be               
recovered from  legal persons  without suing for claims, and from               
natural persons - in the manner established by law.                             
                                                                                
                                                                                
                                                                                
                            Chapter 7                                           
                                                                                
                        Final Provisions                                        
                                                                                
                                                                                
                                                                                
     Article 19. To recognise the Provisional Law on Tariffs (see               
the Lithuanian  version of  the Parliamentary Record No 5-130, No               
36-971, 1991) as invalid.                                                       
                                                                                
                                                                                
I promulgate this Law adopted by the Seimas.                                    
                                                                                
                                                                                
                                                                                
ALGIRDAS BRAZAUSKAS                                                             
President of the Republic                                                       
                                                                                
Vilnius                                                                         
27 April 1993                                                                   
No.I-138