Republic of Lithuania                                     
           Provisional Law on the Rate of Customs Duty                          
                                                                                
                                                                                
                            Chapter 1                                           
                                                                                
                                                                                
                       General Provisions                                       
                                                                                
     Article 1.  This law  shall provide for the determination of               
the rate  of customs  duties for  exported and imported goods and               
other valuables  as well  as  for  goods  and  valuables  carried               
through the  territory of Lithuania in transit, the procedure for               
the establishment  and application  of the  system  of  rules  of               
customs duties.                                                                 
     This law  shall be  applied to  legal and natural persons on               
the entire customs territory of the Republic of Lithuania.                      
                                                                                
     Article 2.  The rate  of customs  duty of  the  Republic  of               
Lithuania means  the systematized  collection of standard customs               
duties levied  on imported  and exported goods and valuables, and               
on goods  and valuables  carried through  the  territory  of  the               
Republic of  Lithuania in  transit. The  rate of  customs  duties               
according to  the type  of goods and cargo, methods of assessment               
of  rates   and  structure  thereof  shall  be  approved  by  the               
Government of the Republic of Lithuania.                                        
                                                                                
     Article 3.  The rate  of customs duties shall be established               
in  accordance   with  the   principles  and  standards  used  in               
international  practice   and  shall   be  based   on  harmonized               
description  of  goods  and  the  system  of  the  classification               
thereof.                                                                        
                                                                                
     Article 4.  All goods  and  other  valuables  imported  into               
Lithuania or  exported therefrom  shall be  subject to  taxation,               
unless this law provides otherwise.                                             
                                                                                
     Article  5.  Rates  of  customs  duties  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 fol               
lowing customs duties shall be employed:                                        
                                                                                
     1) exportation duty -- shall be paid for goods and valuables               
exported from the Republic of Lithuania;                                        
     2) importation  duty --  shall be  paid for  goods and other               
valuables imported into the Republic of Lithuania;                              
                                                                                
     3) seasonal  duty -- shall be paid for imported and exported               
certain goods and other valuables within a certain period.                      
     All these  customs duties  shall be  calculated according to               
the rates of customs duties of the Republic of Lithuania.                       
                                                                                
     Article 7.  On the  territory of  the Republic of Lithuania,               
taking  into   consideration  the   method  of  calculation,  the               
following customs duties shall be employed:                                     
                                                                                
     1) ad valorem 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 levied as a fixed sum of money               
per a physical unit of goods and other valuables;                               
                                                                                
     3) combination  duty --  both types  of the above- mentioned               
duties shall be imposed.                                                        
                                                                                
     Article 8.  On the  territory of  the Republic of Lithuania,               
taking  into  consideration  the  interests  of  the  economy  of               
Lithuania and  the structure  of customs  duties,  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 unions  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  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 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 Amount 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.                    
                                                                                
                                                                                
                            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 rates               
of customs duties, which have been valid on the day of the filing               
of the  declaration. In  cases when  accounts are  settled  under               
contract, customs duty shall be paid in foreign currency.                       
                                                                                
     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. From payment of customs duties shall be exempt:                
                                                                                
     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  Lithuania  as  a               
humanitarian relief, documented in a proper manner                              
                                                                                
     5) valuables  which shall  be imported  into the  Republic of              
Lithuania for a certain period and after that exported from it, or              
which are  temporarily exported  and imported  without  processing              
them.                                                                           
                                                                                
                                                                                
                            Chapter 6                                           
                                                                                
                                                                                
   Imposition of Customs Duties, their Refunding and Recovery.                  
         Responsibility for not Paying the Customs Duty                         
                                                                                
     Article 14.  At the  request of  the owner of goods or other               
valuables, customs  duties erroneously  withheld must be refunded               
on the  decision of the Chief Customs Officer or the court within               
a year from the day the customs duties were paid.                               
                                                                                
     Article 15. The sum of customs duty not paid due to 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 16.  Personal belongings  carried across  the customs              
border of  the Republic of Lithuania, shall be taxed in the manner              
and at  the rate  established by the Government of the Republic of              
Lithuania.                                                                      
                                                                                
     Article 17.  If the international agreements of the Republic               
of Lithuania  provide for  other procedure for taxation than this               
and other  laws on  the rates  of customs duty of the Republic of               
Lithuania, the  norms established in the international agreements               
shall be applied.                                                               
                                                                                
     Article 18. Upon failure to pay the assigned customs duty, 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.                            
                                                                                
                                                                                
Vytatutas Landsbergis                                                           
                                                                                
President                                                                       
Supreme Council                                                                 
Republic of Lithuania                                                           
                                                                                
                                                                                
Vilnius                                                                         
31 January 1991                                                                 
No. I- 1029