Tobacco and tobacco products

Document symbol
G/LIC/N/3/LTU/1
Original language
English
Published on
03/04/2003

Outline of Systems

Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.

Import licensing of tobacco and tobacco products is regulated by the Law on Tobacco Control of 20 December 1995 and the Government Resolution No. 1180 “On Licensing of Tobacco Products Manufacture and of the Importation into the Republic of Lithuania Tobacco and Tobacco Products“ of 2 October 1998, and is administered by the State Tobacco and Alcohol Control Service under the Government of the Republic of Lithuania.

Purposes and Coverage of Licensing

Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.

Import licensing of tobacco and tobacco products is subject to non-automatic licensing.
The licensing system covers:
• tobacco (unmanufactured tobacco and tobacco refuse, smoking tobacco and other manufactured tobacco, intended for use in cigarette manufacturing), the HS codes - 2401.10 - 2401.30.00.0, 2403.10.90.1, 2403.91.00.1, 2403.99.90.1;
• tobacco products (cigars, cigarillos, cigarettes and other manufactured tobacco), HS codes - 2402.10.00.0 - 2402.90.00.0, 2403.10 - 2403.99.90.9, except 2403.10.90.1, 2403.99.10.0, 2403.91.00.1, 2403.99.90.1.

Q3. The system applies to goods originating in and coming from which countries?

The licensing system applies to the products originating in and coming from all countries.

Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?

Licensing aims to enforce state control on tobacco and tobacco products.

Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?

Is the licensing statutorily required?

The licensing of importation of tobacco and tobacco products is based on the Law on Tobacco Control of 20 December 1995 and published in Official Gazette “Valstybes zinios” No. 11-281, 1996 and Government Resolution No.1180 “On Licensing of Tobacco Products Manufacture and of the Importation into the Republic of Lithuania Tobacco and Tobacco Products“ of 2 October 1998 and published in Official Gazette “Valstybes zinios” No. 88-2439, 1998.

Is it possible for the government to abolish the system without legislative approval?

Licensing may be eliminated only under adoption of relevant legislation.

Procedures

Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):

N/A

Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?

N/A

Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?

N/A

Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)

N/A

Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?

N/A

Q6.V. What are the minimum and maximum lengths of time for processing applications?

N/A

Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?

N/A

Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?

N/A

Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?

N/A

Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?

N/A

Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?

N/A

Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?

N/A

Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:

Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?

It is up to the applicant to decide when to apply for a licence, as the applicant is aware of the fact that the licence shall be issued within a maximum of 30 days from the day of receipt of the documents required to submit for issuance of the licence.

Q7.b. Can a licence be granted immediately on request?

Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.

There are no limitations as to the period of the year during which the application for the licence and/or importation may be made.

Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?

The importer has to approach only one administrative body regarding consideration of the application, namely State Tobacco and Alcohol Control Service.

Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?

Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?

Under circumstances of failure to meet the licencing criteria the application for the licence may be refused.

Are the reasons for any refusal given to applicants?

In the event of refusal to issue the licence, the applicant has the right of appeal pursuant to the procedure provided for by the law.

Eligibility of Importers to Apply for Licence

Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?

All types of enterprises registered in Lithuania are eligible to apply for a licence for the importation of tobacco products.

Licences for importation of tobacco intended for the manufacturing of tobacco products shall be issued only to those enterprises that possess licences for manufacture of tobacco products by using tobacco exclusively for their own production purposes.

Documentational and Other Requirements for Application for Licence

Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?

What information is required in applications?

An enterprise wishing to obtain a licence to import tobacco intended for manufacture of tobacco products, and tobacco products shall submit a free form application specifying the following:

• the code, name, address, telephone number;
• names, surnames, addresses of the enterprise founders, heads of the administration and shareholders the nominal value of whose holdings exceeds 1/10 of the authorised capital;
• the purpose for which importation is intended, which tobacco and tobacco products are intended for importation and where importation of tobacco and tobacco products is intended from;
• addresses of warehouses from which wholesales of tobacco products will be performed or in which the imported tobacco will be stored.

What documents is the importer required to supply with the application?

Along with the application for a licence to import tobacco intended for manufacture of tobacco products, and tobacco products, the following documents shall be filed:

• copies of the enterprise incorporation document and the registration certificate certified by the signature of its head;
• the original copy of the declaration on conformity of tobacco or tobacco products issued by the foreign economic entity (a company, a firm).

Besides:

1) Enterprises importing tobacco intended for manufacture of tobacco products shall file the following documents:

• copies of the tobacco purchase contracts, concluded with foreign economic entities certified by the notary.

2) Enterprises importing tobacco products shall file the following documents:

• the original copies of authorisations of representation (for the sale of products) granted by foreign enterprises manufacturing tobacco products and on their assignment engaged in sales of tobacco products;
• the certificate or another corresponding document issued by the foreign registrar certifying the registration in the country of the manufacturing enterprise and on its assignment engaged in sales of tobacco products from which tobacco products will be received;
• samples or catalogues of labels of tobacco products to be imported;
• copies of contracts for the lease of the warehouses from which wholesale trade in the imported tobacco products will be carried on (in case the premises are leased) or copies of legal registration documents of the warehouses (if the premises are owned).

Q11. What documents are required upon actual importation?

Upon actual importation an importer is required to submit the approved import licence, quality certificate (certificate, conformity declaration) issued by the manufacturing enterprise, invoice along with the general document while conducting customs procedures.

Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?

Is there any licensing fee or administrative charge?

A state fee shall be collected for licence issuance in accordance with the Government Resolution No. 1458 “On Approval of the List of Entities Subject to Imposition of the State Fee, the Fee Rate and the Procedure for its Payment and Repayment” (Official Gazette “Valstybes zinios” No. 108-3463, 2000).

What is the amount of the fee or charge?

The fees are as follows:
· 2000 LTL (580 EUR) for issuance of the import licence for tobacco intended for manufacture of tobacco products;
· 4000 LTL (1159 EUR) for issuance of the import licence for tobacco products.

Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.

There is no advance payment requirement associated with issuance of the licence.

Conditions of Licensing

Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?

Import licences for tobacco intended for the manufacture of tobacco products and tobacco products shall be issued for an unrestricted time period. A licence is valid for one year from the date of issue. The validity can be extended if the applicant so requests.

Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?

There is no penalty for the non-utilisation of a licence or a portion of a licence.

Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?

Licences are not transferable between importers.

Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?

No other conditions for issuance of a licence shall be applicable.

Other Procedural Requirements

Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?

There are no other administrative procedures applied for importation of tobacco and tobacco products, apart from import licence required be presented prior to importation.

Q19. Is foreign exchange automatically provided by the banking authorities for goods to be imported? Is a licence required as a condition to obtaining foreign exchange? Is foreign exchange always available to cover licences issued? What formalities must be fulfilled for obtaining the foreign exchange?

Foreign exchange is automatically provided by the banking authorities for products to be imported.