REPUBLIC OF LITHUANIA
LAW
ON
SUGAR
Article 1. Purpose of the Law
The purpose of the present Law is to standardize the
relations of sugar beet growers, processors, participants in the
sugar market and government institutions, which are not regulated
by other laws of the Republic of Lithuania, and to create
preconditions for implementation of the State sugar policy.
Article 2. Main definitions
As used in the present Law:
"sugar" means a sweet crystalline or liquid product
processed from sugar beet or semi-manufactured sugar products;
"semi-manufactured sugar product" means a product of the
unfinished sugar production, which is obtained upon having
processed sugary plants;
"sugar market" defines the sphere of exchange comprising
wholesale and retail trade of sugar and semi-manufactured sugar
products;
"participants in the sugar market" are sugar manufacturers,
users and traders of sugar and semi-manufactured sugar products;
and
"sugar manufacturers association" is an association of sugar
beet processors, sugar beet growers and processors, which is
formed on the basis of voluntariness and economic independence.
Article 3. State Sugar Policy
The State shall support the development of the domestic
industry of growing and processing of sugar raw materials.
The State shall guarantee and protect the provision of the
country with sugar, which does not depend on the foreign market.
Article 4. Protection Measures of the Domestic Sugar
Market
While protecting sugar manufacturers, the Government of the
Republic of Lithuania or institutions authorized by it shall:
1) study market conditions and prices, and publicly announce
this information;
2) develop projects concerning the balance of sugar
producing, importation and exportation, and their economic
substantiation;
3) carry out the state customs duties policy on sugar and
semi-manufactured sugar products;
4) approve threshold sugar prices taking into consideration
the changes of retail sugar prices; and
5) establish import quotas for sugar and semi-manufactured
sugar products.
The processing industry shall be prohibited from importation
of semi-manufactured sugar products into the country until the
time it purchased sugar beets according to quotas set forth by
the Government of the Republic of Lithuania. In cases of natural
calamities and poor crop importation of semi-manufactured sugar
products shall be regulated by the Government of the Republic of
Lithuania.
Article 5. Measures for Regulating of the Domestic
Sugar Market
The following measures for regulating of the sugar market
shall be applied in the Republic of Lithuania:
1) local quotas and prices of purchase of sugar raw
materials;
2) minimal price of the production which is manufactured
from the raw materials purchased according to the quotas;
3) wholesale sugar trade - only in factories and commodity
exchange;
4) State quality control of sugar and its certification; and
5) recovery of damages inflicted due to the illegal sugar
trade in favor of domestic sugar manufacturers.
The Government of the Republic of Lithuania shall establish
the procedure for applying of these measures and conditions. It
may apply other control measures as well.
Article 6. Centralization of the Sugar Production
Upon founding a sugar manufacturers association, the
sanctions of the Law of the Republic of Lithuania on Competition,
which are established for dominant market entities, shall not be
applied.
A government institution authorized by the Government of the
Republic of Lithuania shall coordinate founding of the Lithuanian
sugar manufacturers association and its activities.
Article 7. Centralization and Utilization of Resources
The Sugar Fund shall be founded for the technical
reorganization of growing and processing of sugar raw materials.
The Sugar Fund shall be founded as a non-profit-seeking
institution.
The capital of the Sugar Fund shall consist of contributions
of sugar factories; resources obtained from the sale of sugar
import licenses; payment of duties imposed upon the import of
semi-manufactured sugar products; State resources and the
resources of Lithuanian and foreign legal and natural persons; as
well as loans and other resources, appropriated for
implementation of purpose-oriented sugar programmes.
Article 8. Crediting of Purchase of Sugar Beets
Sugar beet processors shall be granted preferential seasonal
credits, which allow to pay for not less than 40 per cent of
sugar beets purchased according to quotas.
I promulgate this Law passed by the Seimas of the Republic
of Lithuania.
Algirdas Brazauskas
President of the Republic
Vilnius
27 April 1995
No.I-867