THE GOVERNMENT OF THE REPUBLIC OF LITHUANIA

THE GOVERNMENT OF THE REPUBLIC OF LITHUANIA (Official Gazette No 53–1236, 1997) Unofficial text of the Resolution GOVERNMENT OF THE REPUBLIC OF LITHUANIA RESOLUTION No. 559 ON LICENSING THE IMPORT OF, WHOLESALE AND RETAIL TRADE IN ALCOHOLIC PRODUCTS Vilnius 5 June 1997 Following the Law of the Republic of Lithuania on Alcohol Control (Official Gazette No 44-1073, 1995; No 61-1527, 1996; No 8-195, No 53-1247, 1997; No 33-809), the Government of the Republic of Lithuania has resolved: 1. To approve the attached: 1.1. Rules of Licensing the Import of, Wholesale and Retail Trade in Alcoholic Products; 1.2. Rules of Retail Trade in Alcoholic Beverages at Trading and Public Catering Companies. 2. To oblige: 2.1. The State Tobacco and Alcohol Control Service under the Government of the Republic of Lithuania (hereafter referred to as the State Tobacco and Alcohol Control Service): 2.1.1. to issue and re-register licences to import alcoholic beverages into the Republic of Lithuania, to engage in wholesale trade in alcoholic beverages produced in the Republic of Lithuania, as well as issue single permits to import alcoholic beverages for exhibitions and representation events held in the Republic of Lithuania. Licences to import alcoholic beverages shall be issued upon co-ordinating this issue with the Ministry of Economy, Ministry of Health Care, Ministry of Interior, Ministry of Finance and the State Security Department, and licences to import undenatured ethyl alcohol and raw materials containing ethyl alcohol shall be issued upon co-ordinating this issue with the Ministry of Agriculture. Licences to engage in wholesale trade in alcoholic beverages produced in the Republic of Lithuania shall be issued upon co-ordinating this issue with the Ministry of Economy, Ministry of Health Care and the Ministry of Interior; 2.1.2. to prepare and by 1 August 1997 submit to the Government of the Republic of Lithuania for its approval the amount of alcoholic beverages assigned to supplies on board of vessels and aircraft permitted to be imported into the Republic of Lithuania according to the groups of alcoholic beverages; 2.1.3. in co-operation with the Lithuanian State Quality Inspectorate at the State Competition and Consumer Rights Protection Service to prepare and approve qualification requirements for the Laboratory of Quality Control of Alcoholic Beverages and production personnel; 2.1.4. to draft and submit to the Government of the Republic of Lithuania according to the established procedure projects on decisions concerning giving the right to companies to import alcoholic beverages, produced in keeping with the mead brand, the ethyl alcohol by volume of which exceeds 50 percent. 2.2. Municipality Mayors (Boards) to issue and re-register licences to companies to engage in retail trade in alcoholic beverages. 2.3. the Ministry of Health Care to draft and approve by 15 October 1997 the form and contents of a warning text on the harm of alcohol to health which shall be used on the external means of alcohol advertising as well as the place of such a text in the advertising means. Amendments to the paragraph: No 931, 01 09 1997, Official Gazette No 82-2058, 1997; (05 09 1997) No 610, 20 05 1999, Official Gazette No 45-1443,1999; (26 05 1999) No 722, 23 06 2000, Official Gazette No 52-1504,2000; (28 06 2000) 3. To establish that: 3.1. Special Purpose Joint-Stock Company “Stumbras”, Joint-Stock Companies “Vilniaus Degtinė”, “Alita” and “Anykščių Vynas” in selling alcoholic beverages to companies holding licences to engage in wholesale trade in alcoholic beverages produced in the Republic of Lithuania and engage in retail trade in alcoholic beverages shall demand that these companies present either a guarantee by a bank or an insurance institution or pledge the real property. The market value of the real property and the amount of the guarantee shall not be lower than the value of alcoholic beverages sold. These provisions shall not be applicable if a buyer pays for alcoholic beverages in advance. Accounts for the production shall be settled within 15 calendar days from the selling date. Special Purpose Joint-Stock Company “Stumbras”, Joint-Stock Companies “Vilniaus Degtinė”, “Alita” and “Anykščių Vynas” shall immediately terminate the supply of their products to companies which fail to settle accounts with them in due time and inform the State Tobacco and Alcohol Control Service as well as local authorities about their debt within 5 calendar days. General Directors of the said joint-stock companies are personally responsible for fulfilling these requirements; 3.2. At the end of each month but not later than before 15th of the following month District State Tax Inspectorates and state social insurance institutions shall inform the licence issuing institution about the failure (as of 1st day of each month) to pay the established taxes to the state budget of the Republic of Lithuania, municipal budgets and to the budget of the state social insurance fund of companies which have the right to import alcoholic beverages, engage in wholesale or retail trade in alcoholic beverages; 3.3. The State Tobacco and Alcohol Control Service and Mayors (Boards) of Municipalities shall make decisions on suspending or withdrawing of licenses on the basis of information laid down in paragraphs 3.1 and 3.2. of the present Resolution and the provisions of paragraphs 51, 52 and 53 of the Rules of Licensing the Import of, Wholesale and Retail Trade in Alcohol Products approved by this Resolution; 3.4. Import of alcoholic beverages for exhibitions and representation events held in the Republic of Lithuania, as well as of samples of alcoholic beverages is permitted only with single permits issued by the State Tobacco and Alcohol Control Service. A specific procedure of issuing such permits shall be established by the State Tobacco and Alcohol Control Service in co-ordination with the Ministry of Finance and the Ministry of Health Care; 3.5. Import of undenatured ethyl alcohol and raw materials containing ethyl alcohol is permitted exclusively for production purposes without the right to sell them to other economic entities (except wine raw materials which are sold to companies for the production of vinegar); 3.6. only companies holding licences to import alcohol products are permitted to engage in their wholesale trade. 3.7. economic entities which have purchased alcohol-based food solutions containing flavour additives in tare exceeding 20 ml, non-food alcohol-based solutions containing flavour additives, denatured and technical ethyl alcohol from companies which have licences for the production or import of such alcohol products shall use them only for production, technical or research and development purposes. Economic entities which have purchased wine raw materials containing ethyl alcohol from companies having such import licences may use these raw materials only for the production of vinegar. 3.8. District State Tax Inspectorates, state social insurance institutions and the customs having received the requests of the State Tobacco and Alcohol Control Service and Municipality Mayor (Board) shall have within 10 working days to provide to them information about the failure to pay the established taxes to the state budget of the Republic of Lithuania, municipal budgets and to the budget of the state social insurance fund of companies which want to obtain or re-register licences to import alcohol products, engage in wholesale or retail trade in alcoholic beverages, as well as about deliberate violation of tax laws and violations of customs liabilities of such companies. Amendments to the paragraph: No 50, 19 01 1998, Official Gazette No 8-172, 1998; (23 01 1998) No 610, 20 05 1999, Official Gazette No 45-1443, 1999; (26 05 1999) No 1256, 10 11 1999, Official Gazette No 97-2795, 1999; (17 11 1999) No 254, 06 03 2000, Official Gazette No 21-536, 2000; (10 03 2000) No 722, 23 06 2000, Official Gazette No 52-1504, 2000; (28 06 2000) No 1494, 27 12 2000, Official Gazette No 113-3625, 2000; (30 12 2000) 4. To oblige: 4.1. The Ministry of Finance together with the State Tobacco and Alcohol Control Service - to approve the forms of the sales register of alcohol products (except alcoholic beverages) and of the certificate of alcohol products sold (except alcoholic beverages); 4.2. The State Tax Inspectorate at the Ministry of Finance - at the end of every quarter, up to 25th day of the first month of the following quarter, to provide information to District State Tax Inspectorates about economic entities – buyers registered in their territories which had purchased alcohol products in the previous quarter; 4.3. The Ministry of Interior, the State Tobacco and Alcohol Control Service and District State Tax Inspectorates - to control whether economic entities, which had purchased alcohol products, use them for their purpose. If violation shall be detected, economic entities shall be sanctioned as provided by the law. Amendments to the paragraph: No 651, 23 06 1997, Official Gazette No 60-1415, 1997; (27 06 1997) No 50, 19 01 1998, Official Gazette No 8-172, 1998; (23 01 1998) No 722, 23 06 2000, Official Gazette No 52-1504, 2000; (28 06 2000) 5. To establish that retail trade in the Republic of Lithuania is prohibited in: 5.1. alcohol-based food solutions containing flavour additives packed in tare exceeding 20 ml; 5.2. undenatured, denatured, technical ethyl alcohol and alcohol-based non-food solutions containing flavour additives (except selling undenatured ethyl alcohol for medicinal purposes to the population at chemist’s shops according to the procedure established by the Ministry of Health Care). [Valid till 01-02-2002] 5.3. alcoholic beverages in tax-free shops at state border crossing points. [Valid from 01-02-2002] 5.3.(became void) Amendments to the paragraph: No 651, 23 06 1997, Official Gazette No 60-1415, 1997; (27 06 1997) No 5, 06 01 1998, Official Gazette No 5-83, 1998; (14 01 1998) No 1519, 14 12 2001, Official Gazette No 106-3809, 2001; (19 12 2001) 6. To establish that: 6.1. before this Resolution comes into force licences issued to companies to engage in wholesale trade in wine produced in the Republic of Lithuania (containing not more than 22% of ethyl alcohol by volume) and beer, as well as licences to engage in retail trade in wine (containing not more than 22% of ethyl alcohol by volume) and beer, shall be valid till the expiration term indicated therein; 6.2. licences to engage in wholesale or retail trade in wine (containing not more than 22% of ethyl alcohol by volume) and the remainder of beer shall be issued to companies holding licences to import wine (containing not more than 22% of ethyl alcohol by volume) and beer issued before this Resolution comes into force, licences to engage in wholesale trade in wine produced in the Republic of Lithuania (containing not more than 22% of ethyl alcohol by volume) and beer or licences to engage in retail trade in wine (containing not more than 22% of ethyl alcohol by volume) and beer and which terminated these activities upon the expiration date of licences. 7. To acknowledge as invalid: 7.1. Government of the Republic of Lithuania Resolution No 1397 of 30 October 1995 On Approving the Procedure Stimulating the Establishment of Violations of Law of the Republic of Lithuania on Alcohol Control (Official Gazette No 91-2042, 1995); 7.2. Government of the Republic of Lithuania Resolution No 1459 of 17 November 1995 On Licensing the Import of, Wholesale and Retail Trade in Alcohol Products (Official Gazette No 95-2133, 1995; No 69-1670, 1996); 7.3. Government of the Republic of Lithuania Resolution No 285 of 27 February 1996 On Obtaining the Right to Import Alcoholic Beverages into the Republic of Lithuania and the Right to Engage in Wholesale Trade in Alcoholic Beverages Produced in the Republic of Lithuania by Way of a Public Tender (Official Gazette No 20-529, 1996); 7.4. Government of the Republic of Lithuania Resolution No 662 of 6 June 1996 On Partial Amendments to Government of the Republic of Lithuania Resolution No 285 of 27 February 1996 On Obtaining the Right to Import Alcoholic Beverages into the Republic of Lithuania and the Right to Engage in Wholesale Trade in Alcoholic Beverages Produced in the Republic of Lithuania by Way of a Public Tender (Official Gazette No 55-1302, 1996); 7.5. Government of the Republic of Lithuania Resolution No 846 of 17 July 1996 On Partial Amendments to Government of the Republic Resolution No 1459 of 17 November 1995 On Licensing the Import of, Wholesale and Retail Trade in Alcohol Products (Official Gazette No 69-1670, 1996); 7.6. Article 2 of Government of the Republic of Lithuania Resolution No. 325 of 7 April 1997 On Partial Amendments to Government of the Republic of Lithuania Resolution No 734 of 21 June 1996 On Granting the Right to Import Alcoholic Beverages into the Republic of Lithuania (Official Gazette No 31-767, 1997). Prime Minister Gediminas Vagnorius Minister of Economy Vincas Babilius APPROVED by the Resolution of the Government of the Republic of Lithuania No 559 5 June 1997 (new version of Government of the Republic of Lithuania Resolution No 1494 of 27 December 2000) Rules Licensing the Import of, Wholesale and Retail Trade in Alcoholic Products I. LICENSED ACTIVITY 1. The Rules shall regulate the activity related to the release of alcohol products for free circulation (hereafter referred to as import), wholesale and retail trade in these products. Alcohol products are as follows: alcoholic beverages (codes according to the Combined Nomenclature - 2203.00, 22.04 – 22.08, except 2204.30, 22.07, 2208.20.40.0, 2208.90.69.3), undenatured ethyl alcohol (codes according to the Combined Nomenclature – 2207.10.00.0, 2208.90.91.0, 2208.90.99.0), denatured ethyl alcohol (code according to the Combined Nomenclature – 2207.20.00), technical ethyl alcohol (code according to the Combined Nomenclature - 2207.10.00.0), ingredients, i.e. alcohol-based food solutions containing flavour additives (codes according to the Combined Nomenclature – 2103.90.30.0, 2106.90.20, 3302.10.10, 3302.10.40.2, 3302.10.40.3, 3302.10.90.2, 3302.10.90.3), and alcohol-based non-food solutions containing flavour additives (code according to the Combined Nomenclature - 3302.90.10.0), raw materials (codes according to the Combined Nomenclature – 2204.29, 2204.30, 2205.90, 2206.00.81, 2206.00.89, 2208.20.40.0, 2208.20.62.0, 2208.20.64.0, 2208.20.86.0, 2208.20.87.0, 2208.20.89.0, 2208.30.19.0, 2208.30.38.0, 2208.30.58.0, 2208.30.78.0, 2208.30.88.0, 2208.40.51.0, 2208.40.91.0, 2208.40.99.0, 2208.50.19.0, 2208.50.99.0, 2208.60.19, 2208.60.99.0, 2208.70.90, 2208.90.19.0, 2208.90.38, 2208.90.71 – 2208.90.78). 2. Only companies holding licences of the established form shall be permitted to import alcohol products into the Republic of Lithuania and to engage in wholesale or retail trade in these products. Only economic entities which hold licences for the production of alcohol products and which import only alcohol products of their own production, which according to the established procedure had been officially registered at the customs following the irreversible export procedure, shall have the right to import alcohol products (codes according to the Combined Nomenclature – 2203.00-2208, except 2208.90.69.3) into the Republic of Lithuania without import licences, if such products are of the same type as the exported ones. In this case economic entities shall provide the consent of the State Tobacco and Alcohol Control Service under the Government of the Republic of Lithuania (hereafter - the State Tobacco and Alcohol Control Service). II. TYPES OF LICENCES 3. The following types of licences for the import of, wholesale or retail trade in alcohol products shall be established: 3.1. to import alcoholic beverages; 3.2. to import alcoholic beverages containing not more than 22% of ethyl alcohol by volume; 3.3. to import beer; 3.4. to engage in wholesale trade in alcoholic beverages produced in the Republic of Lithuania; 3.5. to engage in wholesale trade in alcoholic beverages produced in the Republic of Lithuania containing not more than 22% of ethyl alcohol by volume; 3.6. to engage in wholesale trade in beer produced in the Republic of Lithuania; 3.7. to engage in wholesale trade in the remainder of imported alcoholic beverages; 3.8. to engage in retail trade in the remainder of imported alcoholic beverages containing not more than 22% of ethyl alcohol by volume; 3. 9. to engage in wholesale trade in the remainder of imported beer; 3.10. to engage in wholesale trade in the remainder of alcoholic beverages produced in the Republic of Lithuania; 3.11. to engage in wholesale trade in the remainder of alcoholic beverages produced in the Republic of Lithuania containing not more than 22% of ethyl alcohol by volume; 3.12. to engage in wholesale trade in the remainder of beer produced in the Republic of Lithuania; 3.13. to engage in retail trade in alcoholic beverages; 3.14. to engage in retail trade in alcoholic beverages, containing not more than 22% of ethyl alcohol by volume; 3.15. to engage in retail trade in beer; 3.16. to engage in retail trade in alcoholic beverages in duty free shops; 3.17. to engage in retail trade in alcoholic beverages, containing not more than 22% of ethyl alcohol by volume, during the resort, holiday and tourism seasons; 3.18. to engage in retail trade in beer during the resort, holiday and tourism seasons; 3.19. single licences - to engage in retail trade in alcoholic beverages, containing not more than 13% of ethyl alcohol by volume, during mass events, fairs and exhibitions; 3.20. single licences - to engage in retail trade in beer during mass events, fairs and exhibitions; 3.21. single licences - to engage in retail trade in alcoholic beverages at fairs and exhibitions held in permanent structures; 3.22. to engage in retail trade in the remainder of alcoholic beverages; 3.23. to engage in retail trade in the remainder of alcoholic beverages containing not more than 22% of ethyl alcohol by volume; 3.24. to engage in retail trade in the remainder of beer; 4. The following types of licences to import alcohol products (except alcoholic beverages) shall be established: 4.1. to import undenatured ethyl alcohol; 4.2. to import denatured ethyl alcohol; 4.3. to import technical ethyl alcohol; 4.4. to import raw materials containing ethyl alcohol; 4.5. to import alcohol-based non-food solutions containing flavour additives; 4.6. to import alcohol-based food solutions containing flavour additives. III. LICENCE ISSUING INSTITUTIONS AND THEIR POWERS 5. Licences to import alcohol products and licences to engage in wholesale trade in alcoholic beverages shall be issued, re-registered, suspended and withdrawn by the State Tobacco and Alcohol Control Service. The Service shall notify companies about a possible suspension of the licence and shall establish the procedure of notification about a possible suspension of the licence, shall supplement and specify the licences as well as control the licensed activities of companies, which have licences to import alcohol products, engage in wholesale or retail trade in alcohol products. The State Tobacco and Alcohol Control Service shall have the right to suspend and withdraw licences to engage in retail trade in alcoholic beverages. The Service shall notify companies about a possible suspension of the licence and shall establish the procedure of notification about a possible suspension of the licence. Licences shall be issued, re-registered, supplemented, specified, suspended and withdrawn and the notification procedure about a possible suspension of the licence shall be approved by orders of the Director of the State Tobacco and Alcohol Control Service. 6. The State Tobacco and Alcohol Control Service shall issue licences to import alcoholic beverages in co-ordination with the Ministry of Economy, Ministry of Health Care, Ministry of Interior, Ministry of Finance and the State Security Department and licences to import alcoholic beverages produced in keeping with a mead brand containing more than 50% of ethyl alcohol by volume – only with the permission of the Government of the Republic of Lithuania. Licences to engage in wholesale trade in alcoholic beverages produced in the Republic of Lithuania shall be issued in coordination with the Ministry of Economy, Ministry of Health Care and the Ministry of Interior. Licences to import undenatured ethyl alcohol and raw materials containing ethyl alcohol shall be issued in coordination with the Ministry of Agriculture. 7. Licences to engage in retail trade in alcoholic beverages shall be issued, re-registered, supplemented, specified, suspended and withdrawn and the notification about a possible suspension of the licence shall be issued by the Municipality Mayor (Board). The Municipality Mayor (Board) in accordance with the provisions of the Law on Alcohol Control of the Republic of Lithuania and the present Rules shall establish a concrete procedure of the issuing and re-registering of licences and of notification about a possible suspension of the licence and publish it in mass media as well as control the licensed activities of companies, establish leisure and tourism zones, and the duration of the resort, holiday and tourism seasons. 8. The State Tobacco and Alcohol Control Service and the Municipality Mayor (Board) (hereafter – licence issuing and re-registering institutions; licence issuing institutions) shall have to find out whether the company intending to obtain or to re-register the licence has not failed to pay all the taxes to the state budget of the Republic of Lithuania or to municipality budgets and funds the collected taxes of which are administered by the State Tax Inspectorate, or whether it does not owe to the budget of the State Social Security Fund, whether the company is fulfilling its customs obligations and whether no remarks concerning the activities of the company have been received from controlling state supervisory institutions. 9. Licence forms shall be approved by licence issuing institutions. 10. Licences to import alcoholic beverages shall specify: 10.1. the name and number of the licence; 10.2. business details of the licence holder; 10.3. names of foreign firms from which the import of alcoholic beverages is permitted. When import of alcoholic beverages is permitted from foreign companies, which sell such beverages by authorisation of producers, licences shall specify names of such companies and such producing companies; 10.4. kinds and groups of alcoholic beverages permitted to be imported and their codes according to the Combined Nomenclature as well as the brand names of alcoholic beverages; 10.5. the date of issuing of the licence; 10.6 the date of re-registration of the licence; 10.7. the institution issuing and re-registering the licence; 10.8. the address and inventory number of the warehouse from which wholesale trade in alcoholic beverages shall be conducted; 10.9. date, when the licence enters into force (inscribed only after the company provides a copy of the permit to establish a closed warehouse issued by the Customs Department at the Ministry of Finance (hereafter – the Customs Department), which is confirmed by the stamp of the company and the signature of the head of the company. This provision shall not apply to companies, which have obtained the licence to import beer. 11. Licences to engage in wholesale trade in alcoholic beverages produced in the Republic of Lithuania shall specify: 11.1. the name and number of the licence; 11.2. business details of the licence holder; 11.3. kinds and groups of alcoholic beverages permitted to be sold and their codes according to the Combined Nomenclature; 11.4. the date of issuing of the licence 11.5 the date of re-registration of the licence; 11.6. the institution issuing and re-registering the licence; 11.7. the address and inventory number of the warehouse from which wholesale trade in alcoholic beverages shall be conducted; 12. The licence to engage in retail trade in alcoholic beverages shall specify: 12.1. the name and number of the licence; 12.2. business details of the licence holder; 12.3. groups and types of alcoholic beverages permitted to be sold; 12.4. the location and time of trade in alcoholic beverages; 12.5. the way of sale of alcoholic beverages (drink on the premises or take away) ; 12.6. the date of issuing of the licence; 12.7. the date of the re-registration of the licence; 12.8. the institution issuing and re-registering the licence. 12.9. address of the warehouse the alcoholic beverages are stored in and distributed from; 12.10. state registration number of the means of transport where the motorised shop is installed (shall be specified in cases of issuing the licence for retail trade in beer in motorised shops). 13. The licence to engage in the wholesale trade in the remainder of alcoholic beverages imported into or produced in the Republic of Lithuania shall specify data indicated in paragraphs 11.1 - 11.4, 11.6 and 11.7 of the present Rules, the amount of the remainder of alcoholic beverages according to groups, the number and the date of issuing and re-registration of the previous licence to import alcoholic beverages or engage in wholesale trade. 17. Licence issuing and re-registering institution shall register issued, re-registered, supplemented and specified licences in a special register the form of which shall be established by the institution itself. The register may be run on a computer. 18. Licence issuing and re-registering institution upon issuing, suspending or withdrawing a licence, supplementing or specifying a licence to engage in retail trade in alcoholic beverages shall publish information about it in the Information Supplement of the Official Gazette. Such published information shall include the name, code and address of the company, name of activity for which the licence was issued, supplemented, specified, number of the licence, the date of issuing, place (address) of the retail trade in alcoholic beverages, the suspension and withdrawal dates of the licence. 19. The State Tobacco and Alcohol Control Service upon issuing, re-registering, supplementing, specifying licences to companies for the import of alcohol products or upon withdrawing them shall have to submit within 3 working days to the Customs Department copies of such licences and of decisions on the withdrawal of licences. IV. ISSUING AND RE-REGISTERING OF LICENCES 20. Licences to import alcohol products, to engage in the wholesale trade in alcohol products may be issued to all types of companies registered in the Republic of Lithuania, the registration certificates or Articles of Association which provide for the wholesale trade or production. Licences to import undenatured ethyl alcohol, raw materials containing ethyl alcohol shall be issued to companies, which hold licences to produce alcohol products. 21. If a company having a licence to import alcohol products or a licence to engage in the wholesale trade in alcoholic beverages produced in the Republic of Lithuania, is engaged in the wholesale trade in alcohol products specified in the licence in several of its branches (warehouses, affiliates, etc.) it shall be issued one licence, where the addresses of the branches shall be indicated. 22. The following conditions for issuing licences to engage in retail trade in alcoholic beverages shall be established: 22.1. Licences to engage in retail trade in alcoholic beverages shall be issued to all types of permanent trade companies designated only for such trade or trade companies which have specialised sections for such trade (in village shops – a separate shelve) and to public catering companies registered in the Republic of Lithuania, whereas licences to engage in retail trade exclusively in beer – to the mentioned above companies, trade companies, which would like to trade in unspecialised sections, motorised shops, which provide services to the rural population as established by Municipalities, and in petrol stations, as well as to companies which would like to trade in kiosks, if their registration certificates or Articles of Association provide for retail trade. Licences to engage in retail trade in alcoholic beverages, containing not more than 22% of ethyl alcohol by volume, during the resort, holiday and tourism seasons may also be issued to temporary public catering companies if their registration certificates or Articles of Association provide for retail trade. [Valid till 01-02-2002] 22.2 Licences to engage in retail trade in alcoholic beverages in duty free shops shall be issued to companies holding licences to establish duty free shops (except duty free shops at state border crossing points). [Valid till 01-02-2002] 22.2 Licences to engage in retail trade in alcoholic beverages in duty free shops shall be issued to companies holding licences to establish duty free shops. 22.3. Single licences to engage in retail trade in alcoholic beverages, containing not more than 13% of ethyl alcohol by volume, in mass events, exhibitions and fairs, single licences to engage in retail trade in alcoholic beverages in exhibitions and fairs held in permanent structures shall be issued solely to companies holding licences to engage in retail trade in alcoholic beverages of certain kinds and groups and in the remainder of such beverages as well as to companies, which hold licences to engage in retail trade in alcoholic beverages during the resort, holiday and tourism seasons; 22.4. Licences to engage in retail trade in alcoholic beverages for trading and public catering companies located in apartment houses shall be issued only in cases when the main entrance for customers is not the same as for entering the apartments. Licences to engage in retail trade in alcoholic beverages shall not be issued to trading companies which are not completely isolated from apartments or other premises which are not related to organising trade or stocking of goods This requirement shall not be applicable when issuing licences to engage in retail trade in alcoholic beverages in duty free shops. 22.5. Licences to engage in retail trade in alcoholic beverages shall not be issued to trading and public catering companies established in warehouses from which wholesale in alcoholic beverages is carried out. Licences to engage in retail trade in beer bottled by breweries shall not be issued to kiosks, established in warehouses from which wholesale in alcoholic beverages is carried out. Warehouses from which wholesale in alcoholic beverages is carried out are premises, registered in the Immovable Property Register as a warehouses, with a separate entrance and isolated from other premises by separating constructions meeting the established safety requirements and designated for stocking, sorting, replenishing exclusively of alcoholic beverages and for selling them to companies which hold licences to engage in retail trade; 22.6. If a company engages in retail trade in alcoholic beverages at several of its outlets established in the same or different premises (specialised shops, specialised sections, restaurants, cafes, buffets, including the closed ones, bars, etc.) which serve customers or supply alcoholic beverages to waiters, it shall be issued licences to engage in this activity at every outlet. If several outlets engaged in the same activity (retail trade or public catering) are established in one hall of the trading or public catering company which sell alcoholic beverages, one licence shall be issued. If several outlets are established in one hall of the trade or public catering company which carry out retail trade and public catering activities, licences for each type of activity shall be issued. One licence shall be issued to companies established in theatres and philharmonic societies where customers are served only during performances or other events, without indicating the outlets (bars, buffets, etc.). 22.7. If a company engages in retail trade in alcoholic beverages in hotel cafes, restaurants, bars (buffets), licences to engage in such activities shall be issued to such a company for every café, restaurant, bar (buffet) and the mini bars of hotel rooms shall be included in the licence of the café, restaurant, bar (buffet), from which alcoholic beverages are provided to the mini bars. Min bars – are little bars-fridges installed in hotel rooms, with supplies of alcoholic beverages (wine in tare not exceeding 250 millilitres, other alcoholic beverages (with the exception of champagne and beer) in souvenir tare not exceeding 150 millilitres, champagne and beer for the consumption of the inhabitants of the room. 22.8. If a company is engaged in retail trade in beer in motorised shops, serving rural population as established by municipalities, licences shall be issued for every motorised shop of the company, and the names of the villages served shall be inscribed in the licence. A Motorised shop is a special means of transport in compliance with the requirements hygiene norm HN 29-1996 “Companies Trading in Food Stuffs” of the Republic of Lithuania and holding a corresponding certificate issued by the territorial public health centre or its branch; 22.9. Brand shop of alcoholic beverages is a unit of the company, producing alcoholic beverages, not less than 80% of the retail trade turnover of which is received from the products of the company and which carries out market research and image forming functions. Amendments to the paragraph: No 1519, 14 12 2001, Official Gazette No 106-3809, 2001; (19 12 2001) 23. Licences to engage in wholesale or retail trade in the remainder of alcoholic beverages shall be issued to companies which had licences to import alcoholic beverages, engage in wholesale or retail trade thereof and which, upon the expiry date of their licences, had terminated these activities; 24. A company wishing to obtain a licence to import alcohol products (with the exception of alcoholic beverages) shall submit the following to the State Tobacco and Alcohol Control Service: 24.1. a justified application indicating the following information: the name of the company, its code, address, telephone number, names and surnames, addresses of the founders of the company, its managers and shareholders possessing shares the nominal value of which exceeds 1/10 of the authorised capital, the name of the commercial-economic activity for the licence of which the company is applying as well as for what purpose, what alcohol products and from where the company intends to import, and the addresses of the warehouses where the alcohol products will be stored; 24.2. copies of the company’s Articles of Association, its registration certificate and the Statute (with an exception of companies operating without a Statute) certified by the stamp of the company and the signature of its head; 24.3. copies of purchase contracts of alcohol products concluded with economic entities of foreign countries, certified by the stamp of the company and the signature of its head, and their translation into Lithuanian. When new contracts are concluded, their copies shall be submitted additionally; 24.4. a certificate issued by an economic entity of a foreign country certifying the quality of alcohol products and the translation of this certificate into Lithuanian; 24.5. a certificate issued by the State Nutrition Centre of the Ministry of Health Care certifying that food-based alcohol solutions with flavour additives are registered in the Centre; 24.6. a remittance with the bank seal or receipt confirming the stamp tax of a fixed amount paid (submitted after the decision to issue the licence has been made). 25. A company wishing to obtain a licence to import alcoholic beverages shall submit the following to the State Tobacco and Alcohol Control Service: 25.1. a justified application indicating the following information: the name of the company, its code, address, telephone number, names and surnames, addresses of the founders of the company, its managers and shareholders possessing shares the nominal value of which exceeds 1/10 of the authorised capital, the name of the commercial-economic activity for the licence of which the company is applying as well as from which foreign states and firms and what brand names and groups of alcoholic beverages the company intends to import, and the addresses and inventory numbers of the warehouses from which wholesale trade shall be carried out; 25.2. copies of the company’s Articles of Association, its registration certificate and the Statute (with an exception of companies operating without a Statute) certified by the stamp of the company and the signature of its head; 25.3. the originals of authorisations issued by foreign companies producing alcoholic beverages or trading in them by authorisation of producers (only in cases when producers do not sell themselves) to represent them (sell their products), and their translations into Lithuanian; 25.4. the original of the certificate issued by a Registrar of a foreign country testifying that the foreign company producer (or a trading company authorised by

1. it)supplying alcoholic beverages, has been registered in that country (the nature of the company’s activity shall be entered in the certificate), and the translation of the certificate into Lithuanian; 25.5. samples of labels or catalogues of the beverages intended to be imported; 25.6 the original of the compliance declaration issued by a foreign company- producer, which shall provide harmlessness and quality ratios declared by the company producer (for every brand name of alcoholic beverages) and the translation of the declaration into Lithuanian; 25.7. a certificate issued by a trade regulating institution of a foreign state certifying that retail trade in alcoholic beverages (with an exception of beer) intended to be imported into the Republic of Lithuania is permitted in that country and a translation of this certificate into Lithuanian; 25.8. copies of contracts for the rent of warehouses (if the premises are rented) and copies of legal registration documents of the warehouses, certified by the stamp of the company and the signature of the head of the company; 25.9.A copy of the permit to establish a closed customs warehouse, issued by the Customs Department, certified by the stamp of the company and the signature of the head of the company (for companies wishing to obtain a licence to import alcoholic beverages (with an exception of beer) within 30 days after the issuing date of the licence); 25.10. A certificate issued by the Customs laboratory certifying the codes of alcoholic beverages intended to be imported in accordance with the Combined Nomenclature (shall be submitted at the request of the State Tobacco and Alcohol Control Agency, when the Agency has doubts on the correctness of codes of alcoholic beverages specified in the application of the company); 25.11. a remittance with the bank seal or receipt confirming the stamp tax of a fixed amount paid (submitted after the decision to issue the licence has been made). 26. A company wishing to obtain a licence to engage in wholesale trade in alcoholic beverages produced in the Republic of Lithuania shall submit the following to the State Tobacco and Alcohol Control Service: 26.1. a justified application indicating the following information: the name of the company, its code, address, telephone number, names, surnames and addresses of the founders of the company, the name of the commercial-economic activity for the licence of which the company is applying as well as the addresses and inventory numbers of warehouses from which wholesale trade shall be carried out; 26.2. copies of the company’s Articles of Association, its registration certificate and the Statute (with an exception of companies operating without a Statute) certified by the stamp of the company and the signature of its head; 26.3. copies of contracts for the rent of warehouses (if the premises are rented) and copies of legal registration documents of the warehouses, certified by the stamp of the company and the signature of the head of the company; 26.4. a remittance with the bank seal or receipt confirming the stamp tax of a fixed amount paid (submitted after the decision to issue the licence has been made). 27. A company wishing to obtain a licence to engage in retail trade in alcoholic beverages shall submit to the Municipality Mayor (Board) the following: 27.1. a justified application indicating the following information: the name of the company, its code, address, telephone number, names, surnames and addresses of the founders of the company, the name of the commercial-economic activity for the licence of which the company is applying, time and place of trade in alcoholic beverages as well as the addresses the warehouses where the alcoholic beverages will be stored and distributed from; 27.2. copies of the company’s Articles of Association, its registration certificate and the Statute (with an exception of companies operating without a Statute) certified by the stamp of the company and the signature of its head; 27.3. the consent of the Board meeting of the Multifamily Dwelling Owners’ Association or (in case such an Association has not been established), the consent of the majority of the apartment owners of the multifamily apartment house as well as the consent of the majority of the tenants in non-privatised flats, if the company is located in a multifamily apartment house. Such a consent shall not be submitted if a company which previously operated in the multifamily apartment house had a licence to engage in retail trade in alcoholic beverages and no reasonable complaints were received from the tenants during the validity period of the licence, and the working hours or the way of selling alcoholic beverages of the company do not change. If during the validity period of the licence reasonable complaints were received from the tenants of the multifamily apartment house, the consent has to be provided when re-registering the licence to engage in such activities as well. Reasonable complaints shall be complaints the investigation of which has lead to administrative fines for violations of public order; 27.4. other additional documents as specified in the licence issuing and re-registering procedure established by the Municipality Mayor (Board); 27.5. a remittance with bank seals or receipt confirming the stamp tax paid (shall be submitted after the decision to issue the licence has been adopted); 28. A company wishing to obtain a licence to engage in wholesale trade in the remainder of imported or produced in Lithuanian alcoholic beverages and in retail trade in the remainder of alcoholic beverages shall submit to the licence issuing institution the following: 28.1. an application indicating the following information: the name of the company, its code, address, telephone number, the name of the commercial-economic activity for the licence of which the company is applying and the number and issuing date of the previously held licence; 28.2. data on the quantity and the assortment, according to groups, of the remainder of alcoholic beverages available on the last day of the validity of the licence, purchased before the expiry date of the previous licence; 28.3. a remittance with the bank seal or receipt confirming the stamp tax of a fixed amount paid (submitted after the decision to issue the licence has been made). 29. A company wishing to re-register a licence to import alcohol products, to engage in wholesale or retail trade in alcoholic beverages, shall submit to the licence issuing and re-registering institution: 29.1. an application to re-register the licence; 29.2. a remittance with the bank seal or receipt confirming the stamp tax of a fixed amount paid (submitted after the decision to re-register the licence has been made). 30. The company shall submit an application to re-register the licence not later than 30 days before the established re-registering date of the licence. 31. Licences to import alcohol products, to engage in wholesale or retail trade in alcoholic beverages shall be issued without time limit and shall be re-registered every year in the licence issuing institution. A licence which has not been duly re-registered shall not be valid. Licences to engage in the wholesale or retail trade in the remainder of alcoholic beverages shall be issued for a period which shall not exceed 2 months from the end of the validity period of the previous licence. Licences to engage in retail trade in beer or alcoholic beverages containing not more than 22% of ethyl alcohol by volume during the resort, holiday and tourism seasons shall be issued to companies for the period of these seasons. Single licences to engage in retail trade in alcoholic beverages, containing not more than 13% of ethyl alcohol by volume, at mass events, exhibitions and fairs as well as licences to engage in retail trade in alcoholic beverages at exhibitions and fairs held at permanent buildings shall be issued only for the duration period of the event. 32. Upon the loss of the licence, the company, which has submitted a justified explanation and a copy of the advertisement on the lost licence in the press of the Republic of Lithuania shall within 5 working days be issued a duplicate of the licence marked “Duplicate” by the licence issuing and re-registering institution. 33. Companies holding licences to import alcoholic beverages may have their licences supplemented by increasing the assortment of imported alcoholic beverages. Licences shall be supplemented by the State Tobacco and Alcohol Control Service. The company wishing to have the licence supplemented shall submit an application to the State Tobacco and Alcohol Control Service and documents specified in paragraphs 25.3-25.7 and 25.10 of the present Rules. Assortment of imported alcoholic beverages may be supplemented by alcoholic beverages produced in keeping with a mead brand and containing more than 50% of ethyl alcohol by volume only to companies which have the permits to import such beverages issued by the Government of the Republic of Lithuania. Companies holding licences to import alcoholic beverages or engage in wholesale trade in alcoholic beverages produced in the Republic of Lithuania may have their licences supplemented by including addresses and inventory numbers of additional warehouses in which they engage in wholesale trade in alcoholic beverages. The company wishing to have the licence supplemented shall submit an application to the State Tobacco and Alcohol Control Service, copies of contract for the rent of warehouses (if premises are rented) and copies of legal registration documents of the warehouses, certified by the stamp of the company and the signature of the head of the company. The Decision on supplementing licences shall be adopted within 15 days from the date when the documents required for obtaining a licence have been submitted. If not all the necessary documents have been submitted the period will be calculated from the date when all the documents have been submitted (this period shall not include the period during which the company submits additional or specified documents). 34. The licence of the company to import alcoholic beverages or engage in wholesale or retail trade in alcoholic beverages may be supplemented, if the company changes its address or name, which are specified in the licence (if other business details of the company do not change). The licence holder shall inform the licence issuing or re-registering institution about the changes in the address and name of the company within 10 working days. The company wishing to have the licence supplemented, shall submit to the licence issuing or re-registering institution a motivated request and documents, certifying the changed data. The licence to engage in retail trade in alcoholic beverages may also be supplemented when the company changes the time of trade in alcoholic beverages or the address of the sales location. In this case the company shall submit a request and documents specified in paragraphs 27.3 and 27.4 of the present Rules. Licence issuing and re-registering institution shall supplement the licence within 3 working days. V. REFUSAL TO ISSUE OR RE-REGISTER A LICENCE 35. Licences to import alcohol products, to engage in wholesale or retail trade in alcoholic beverages shall not be issued if: 35.1. not all the required documents are submitted and the company does not comply with requirements of the licence issuing or re-registering institution to submit the missing documents; 35.2. submitted documents are incompletely or incorrectly filled in and the company does not comply with requirements of the licence issuing or re-registering institution to eliminate these shortcomings; 35.3. submitted documents do not comply with the established requirements and the company does not comply with requirements of the licence issuing or re-registering institution to eliminate these shortcomings; 35.4. false data is submitted and the company does not comply with requirements of the licence issuing or re-registering institution to submit correct data; 35.5. the company is in debt to the state budget of the Republic of Lithuania, municipal budgets or funds, the collection of taxes of which is administered by the State tax Inspectorate, the budget of the State Social Security Fund (except in cases, when the payment of these overdue taxes and fines has been postponed in accordance with the procedure established by laws of the Republic of Lithuania or in case of a conflict regarding these taxes and fines, or when a company has addressed the Commission for the applications of tax payers to settle payments in shares and assets to consider the payment of such overdue taxes and fines in shares and assets), fails to fulfil its commitments to the Customs (applied to companies wishing to obtain licences to import alcohol products and licences to engage in retail trade in alcoholic beverages in duty free shops), when deliberate violations of tax laws as provided in Article 49 of the Law on Tax Administration of the Republic of Lithuania (with exception of paragraph 12 of this article) have been established and the Resolution of the State Tax Inspectorate on fining the company as provided for in Article 50 of Section 3 of this law has entered into force; 35.6. the company has outstanding debts to Special Purpose Joint-Stock Companies “Stumbras”, “Vilniaus Degtinė”, “Alita”, “Anykščių¸ Vynas” for the alcoholic beverages supplied; 35.7. claims have been lodged in writing by controlling state supervising institutions on the violations of licensed activity and failure to eliminate such violations; 35.8. the licence was withdrawn in accordance with the requirements laid down in paragraphs 55.4 - 55.7 of the present Rules (the licence shall not be issued five years from the date of its withdrawal); 35.9. the licence was withdrawn in accordance with the requirements laid down in paragraphs 55.8 - 55.11 of the present Rules; 35.10. the founders of new companies wishing to obtain licences to engage in wholesale or retail trade in alcoholic beverages are founders of the companies the licences of which were withdrawn in accordance with sections 10 and 11 of Article 44 of the Law of the Republic of Lithuanian on Alcohol Control and with the requirements laid down in paragraphs 55.4 - 55.8 of the present Rules. Licences to import alcoholic products shall not be issued if the founders (shareholders) or heads of administration of the new companies are founders (shareholders possessing shares the nominal value of which exceeds 1/10 of the authorised capital) of the companies the licences of which were withdrawn in accordance with sections 10 and 11 of Article 44 of the Law of the Republic of Lithuanian on Alcohol Control and with the requirements laid down in paragraphs 55.4 - 55.8 of the present Rules. If the licences for the said companies were withdrawn in accordance with sections 10 and 11 of Article 44 of the Law of the Republic of Lithuanian on Alcohol Control and with the requirements laid down in paragraphs 55.4 - 55.7 of the present Rules, licences shall not be issued for 5 years from the date of their withdrawal, and if the licences were withdrawn in accordance with section 11 of Article 44 of the Law of the Republic of Lithuanian on Alcohol Control and with the requirements laid down in paragraph 55.8 of the present Rules, licences shall not be issued at all. 35.11. there are cases defined in section 11 of Article 44 of the Law of the Republic of Lithuanian on Alcohol Control; 35.12. in accordance with Article 71 of the Law on Trade of the Republic of Lithuania a company has been prohibited to engage in any trade activities; 36. Licences shall not be re-registered if: 36.1. the company is in debt to the state budget of the Republic of Lithuania, municipal budgets and funds, the collection of taxes of which is administered by the State tax Inspectorate, the budget of the State Social Security Fund (except in cases, when the payment of these overdue taxes and fines has been postponed in accordance with the procedure established by laws of the Republic of Lithuania or in case of a conflict regarding these taxes and fines, or when a company has addressed the Commission for the applications of tax payers to settle payments in shares and assets to consider the payment of such overdue taxes and fines in shares and assets), fails to fulfil its commitments to the Customs (applied to companies wishing to obtain licences to import alcohol products and licences to engage in retail trade in alcoholic beverages in duty free shops), when deliberate violations of tax laws as provided in Article 49 of the Law on Tax Administration in the Republic of Lithuania (with exception of paragraph 12 of this article) have been established and the Resolution of the State Tax Inspectorate on fining the company as provided for in Article 50 of Section 3 of this law has entered into force; 36.2. the company has outstanding debts to Special Purpose Joint-Stock Companies “Stumbras”, “Vilniaus Degtinė”, “Alita”, “Anykščių Vynas” for the alcoholic beverages supplied; 36.3. claims have been lodged in writing by controlling state supervising institutions on the violations of licensed activity and failure to eliminate such violations; 36.4. there are cases defined in section 11 of Article 44 of the Law of the Republic of Lithuanian on Alcohol Control; 36.5. in accordance with Article 71 of the Law on Trade of the Republic of Lithuania a company has been prohibited to engage in any trade activities 37. A licence issuing institution, having refused to issue or re-register a licence shall inform the applicant in writing within 30 days from the acceptance of all the documents and shall give the reasons for not-issuing or not re-registering the licence. VI.LICENCE TAXES 38. The stamp tax shall be collected for issuing or re-registering of licences according to the procedure established by the Law on Stamp Tax of the Republic of Lithuania and the Government of the Republic of Lithuania. VII. LICENCED ACTIVITY CONDITIONS AND DUTIES OF LICENCE HOLDERS 39. Activities of companies holding licences to import alcohol products, to engage in wholesale or retail trade in alcoholic beverages, shall be controlled and supervised in accordance with their corresponding competence by the State Tobacco and Alcohol Control Service, municipalities, sate supervisory institutions of the Ministry of Health Care, the State Tax Inspectorate, District State Tax Inspectorates, the Customs Department, territorial customs, Police Department at the Ministry of Interior (hereafter – Police Department), State Food and Veterinary Service which shall supervise and control how the conditions of licensed activities are obeyed. Controlling state supervision institutions shall inform in writing without delay institutions which issued and re-registered licences about the violation of licensed activity conditions established in companies. 40. Licence holders shall observe the Law of the Republic of Lithuania on Alcohol Control as well as other laws, resolutions of the Government of the Republic of Lithuania, the present Rules, rules of retail trade in alcoholic beverages in trade and public catering companies as well as other legal acts regulating the procedure of import of alcohol products and their trade, settlement of accounts and payment of taxes, as well as sanitary and obligatory hygiene and quality requirements. 41. Licence holders shall have no right to authorise or transfer by contract on their behalf to other companies or agents of the company (natural persons) the right to carry out the activities specified in the licences. 42. The licence to import alcohol products (with the exception of denatured ethyl alcohol and raw materials containing ethyl alcohol) shall also give the right to engage in wholesale trade in alcohol products imported by the company. Companies holding licences to import undenatured ethyl alcohol and raw materials containing ethyl alcohol shall import such products only if they are produced from food raw materials and only for their own production needs without any right to sell them to other economic entities (with the exception of wine raw materials sold to companies for the production of vinegar). 43. A licences to engage in wholesale or retail trade of the remainder of alcoholic beverages, shall give the right to trade only in the remained of such alcoholic beverages, which were obtained when the held licence to import alcoholic beverages and engage in wholesale or retail trade was still valid. 44. A company holding the licence to import alcoholic beverages and engage in wholesale or retail trade shall carry out such activities only in the place specified in the licence. 45. The holder of the licence to import alcoholic beverages and the licence to engage in wholesale trade in alcoholic beverages shall keep the originals of these licences in the company. Licence copies shall be kept at other units of the company included in the licence and carrying out the activities specified thereof. The original of the licence to engage in retail trade in alcoholic beverages shall be kept at the company and if a company obtains a licence to carry out this type of activity in its outlet (specialised shop, specialised section, restaurant, cafe, buffet, including a closed one, bar, etc.) which serves customers or supplies alcoholic beverages to waiters, shall be kept at the outlet. In cases when the company stocks alcoholic beverages at a warehouse, from which the wholesale in alcoholic beverages is not carried out, but the beverages are only replenished and distributed to the units of the company, copies of licences to engage in retail trade in alcoholic beverages, issued to the company or to its units, confirmed by the stamp of the company and the signature of its head, shall be kept at the warehouse. If a company obtains a licence to engage in retail trade in alcoholic beverages in a hotel cafe, restaurant or bar (buffet), the original of the licence shall be kept at such a cafe, restaurant or bar (buffet). If a company obtains a licence to engage in retail trade in beer in a motorised shop which serves rural population as established by municipalities, the original of the licence shall be kept at the motorised shop. 46. Companies, holding licences to engage in retail trade in alcoholic beverages, may purchase them only from companies holding licences to produce or import such products or engage in their wholesale and shall purchase alcohol-based food solutions with flavour additives only from companies licensed to produce or import them. This requirement shall not be applied to companies having licences to engage in retail trade in alcoholic beverages in duty free shops. 47. Companies holding licences to import alcoholic beverages shall import only these alcoholic beverages the brand names of which are indicated in the licence and exclusively from the foreign companies indicated therein, and sell them only to companies holding licences to engage in retail trade in alcoholic beverages. Companies having licences to import denatured ethyl alcohol, technical ethyl alcohol and alcohol-based non-food solutions with flavour additives shall sell them exclusively to economic entities which use such solutions for production and technical purposes. Companies having licences to import alcohol-based food solutions with flavour additives, shall sell such solutions in disposable tare of more than 20 millilitres in volume exclusively to economic entities which use such solutions for production purposes. Companies holding licences to import alcohol products (with the exception of alcoholic beverages) shall, when selling them, fill in alcohol product accounting registers, which shall be registered at District State Tax Inspectorates. The registers shall be filled in during the sales of alcohol products, when issuing the VAT proforma invoice. At the end of each quarter and not later than till 20th of the first month of the following quarter companies selling alcohol products shall submit to the State Tax Inspectorate, Police Department and State Tobacco and Alcohol Control Service a certificate of the established form about alcohol products sold during the quarter. 48. Companies holding licences to engage in wholesale trade in alcoholic beverages produced in the Republic of Lithuania shall purchase them exclusively from companies holding licences to produce alcoholic beverages and shall sell them only to companies, holding licences to engage in retail trade in alcoholic beverages. 49. Companies holding licences to import alcohol products or to engage in wholesale trade in alcoholic beverages produced in the Republic of Lithuania, when selling them to economic entities shall: 49.1 provide a copy of the quality certificate of an established form issued by the producer for each brand name of the product (when selling imported alcoholic beverages with quality certificates issued by the producer and marked “Additional Control is Obligatory” by the Lithuanian Frontier Customs Control of Foodstuffs, - also attach a copy of the permit to sell the consignment of goods issued by the State Public Health Surveillance Agency); 49.2. indicate in legally valid bills of delivery the number and the date of issuing of the licence to import alcohol products, engage in wholesale trade in alcoholic beverages, the number and the date of issuing of the licence to engage in retail trade in alcoholic beverages of the buyer of alcoholic beverages as well as the number and address of the warehouse from which the alcoholic beverage were sold. If several warehouses are located at the same address the warehouses shall be given numbers. VIII. RIGHTS OF LICENCE HOLDERS 50. Companies holding licences to import alcohol products, engage in wholesale or retail trade in alcoholic beverages shall have the right to: 50.1. engage in the activity specified in the licence; 50.2. demand explanation in the event of suspension, withdrawal or refusal to issue or re-register licences. 50.3. to launch an appeal as established by law against decisions of the officials concerning suspension, withdrawal or refusal to issue or re-register licences. IX. SUSPENSION AND WITHDRAWAL OF LICENCES 51. A licence holder shall be warned about a possible suspension of the licence if: 51.1. the licence holder is in debt to the state budget of the Republic of Lithuania, municipal budgets and funds, the collection of taxes of which is administered by the State Tax Inspectorate, the budget of the State Social Security Fund (except in cases, when the payment of these overdue taxes and fines has been postponed in accordance with the procedure established by laws of the Republic of Lithuania or in case of a conflict regarding these taxes and fines, or when a company has addressed the Commission for the applications of tax payers to settle payments in shares and assets to consider the payment of such overdue taxes and fines in shares and assets), fails to fulfil its commitments to the Customs (applied to companies wishing to obtain licences to import alcohol products and licences to engage in retail trade in alcoholic beverages in duty free shops); 51.2. the the licence holder does not settle accounts in time with Special Purpose Joint-Stock Companies “Stumbras”, “Vilniaus Degtinė”, “Alita”, “Anykščių Vynas” for the products supplied; 51.3 the licence holder has violated the requirements laid down in paragraphs 45 and 49 of the Present rules; 51.4. claims are lodged in writing by controlling state supervising agencies that violations of the licensed activities have been established in the company; 52. The licence shall be suspended if: 52.1. the company, which has been warned about a possible suspension of the licence, has not eliminated the violations of the licensed activity, described in paragraph 51of the present Rules, within the established period of time; 52.2. instructions from an official of the tax administration body have been received to suspend the licence to the company which has not registered itself as a tax payer according to the established procedure, has not submitted its tax declaration within the established period of time and as provided for in the Law on Tax Administration of the Republic of Lithuania or has been otherwise evading payment of taxes and thus hindering the tax administrator to duly perform his obligations and implement the rights provided for by law. The licence issuing institution having received the instructions of the tax administrator shall implement it without any delay. 53. A licence suspending institution shall inform the company in writing on the decision to suspend the licence within 3 working days after the decision has been made and shall specify the motives for the suspension of the licence. Upon the suspension of the licence the company within a month from the suspension of the licence shall eliminate the violations, due to which the licence had been suspended. An exact period of time shall be established by the licence suspending institution in accordance with the type of violations. 54. Heads of corresponding Police Commissariats shall have the right to suspend for up to 24 hours licences to engage in retail trade in alcoholic beverages if violations of the Rules of trade in alcoholic beverages have been observed. 55. The licence shall be suspended if: 55.1. the licence holder submits an application to suspend the licence; 55.2. the company is liquidated or reorganised upon the termination of activities as an independent economic entity; 55.3. the licence holder fails to re-register the licence within the fixed time; 55.4. it has been established that data presented to obtain or re-register the licence was incorrect; 55.5. the company the licence of which has been suspended has not eliminated the specified violations of licensed activities in due time; 55.6. the licence holder does not observe paragraphs 1, 2,4,5,6 and paragraphs 8-12 of section 1 of Article 20 of the Law on Alcohol Control of the Republic of Lithuania as well as the requirements set forth in paragraph 41, second point of paragraph 42, paragraphs 43, 44, 46, 47 (with an exception of the fourth point) and 48 of the present Rules; 55.7. deliberate violations of tax laws as provided for in Article 49 of the Law on Tax Administration of the Republic of Lithuania (with the exception of paragraph 12 of this article) have been established and the Resolution of the State Tax Inspectorate on fining the company as provided for in Article 50 of Section 3 of this law has entered into force; 55.8. there are cases defined in section 11 of Article 44 of the Law of the Republic of Lithuanian on Alcohol Control; 55.9. the holder of a licence to import alcoholic beverages (with the exception of beer) has not submitted within 30 days after the licence was issued a copy of the permit to establish a closed customs warehouse, issued by the Customs Department; 55.10. A message from the Customs Department has been received that the permission to establish a closed customs warehouse for the company holding a licence to import alcoholic beverages (with the exception of beer) has been withdrawn; 55.11. in accordance with Article 71 of the Law on Trade of the Republic of Lithuania the company has been prohibited to engage in any trade activities. 56. A licence withdrawing institution shall within 3 working days after the decision has been made send a written message to the company informing on the decision to withdraw the licence and shall specify the motives for the withdrawal of the licence. 57. The company shall return the withdrawn licence to the licence issuing institution within 5 working days from the day of announcing about it in the Information Supplement of the Official Gazette. APPROVED by the Resolution of the Government of the Republic of Lithuania No 559 5 June 1997 Rules of Retail Trade in Alcoholic Beverages in Trading and Public Catering Companies 1. Retail trade in alcoholic beverages shall be carried out only by such trading and public catering companies (including companies trading in alcoholic beverages in duty free shops) which have valid licences to engage in retail trade in alcoholic beverages issued by the Municipality Mayor (Board). Amendments to the paragraph: No 722, 23 06 2000, Official Gazette No 52-1504, 2000; (28 06 2000) 2. The original of the licence to engage in retail trade in alcoholic beverages shall be kept at the company. In case the company obtains a licence to carry out this activity in its outlet (a specialised shop, specialised section, restaurant, cafe, buffet, (including a closed one), bar, etc.) which serves customers or provides alcoholic beverages to waiters, the original of the licence shall be kept at this outlet. If a company obtains a licence to engage in retail trade in beer in a motorised shop, which serves rural population as established by the Municipality the original of the licence shall be kept at the motorised shop. Amendments to the paragraph: No 610, 20 05 1999, Official Gazette No 45-1443,1999; (26 05 1999) 3. Trade in all kinds of alcoholic beverages shall be permitted only at permanent trading companies designated for such trade or their specialised sections intended for such trade, at permanent public catering companies and at exhibitions and fairs held in permanent buildings. Trade in alcoholic beverages containing not more than 22 % of ethyl alcohol by volume shall be also permitted at temporary public catering institutions during the resort, holiday and tourism seasons, whereas trade in alcoholic beverages containing not more than 13 % of ethyl alcohol by volume – at mass events, fairs and exhibitions as well. Only beer, bottled by breweries, shall be permitted to be sold in kiosks, unspecialised sections of trading companies, motorised shops, which serve rural population as established by the Municipalities, and at petrol stations. Trade in alcoholic beverages shall be permitted in village shops only if there is a separate shelf allocated for such beverages. [Valid from 01-02-2002] Trade in alcoholic beverages shall be permitted in duty free shops only when special control means established by the Ministry of Finance are applied. Amendments to the paragraph: No 610, 20 05 1999, Official Gazette No 45-1443, 1999; (26 05 1999) No 1519, 14 12 2001, Official Gazette No 106-3809, 2001; (19 12 2001) 4. Trade in alcoholic beverages sold on tap shall be permitted only at permanent public catering companies and at exhibitions and fairs held in permanent buildings, trade in alcoholic beverages (containing not more than 22 % of ethyl alcohol by volume) during the resort, holiday and tourism season shall also be permitted at temporary public catering companies, whereas trade in beer – at shops of beer breweries and during mass events, exhibitions and fairs as well. Amendments to the paragraph: No 931, 01 09 1997, Official Gazette No 82-2058,1997; (05 09 1997) No 610, 20 05 1999, Official Gazette No 45-1443,1999; (26 05 1999) 5. (became void) Amendments to the paragraph: No 663, 04 06 2001, Official Gazette No 49-1711, 2001; (08 06 2001) 6. (became void) Amendments to the paragraph: No 610, 20 05 1999, Official Gazette No 45-1443,1999; (26 05 1999) No 663, 04 06 2001, Official Gazette No 49-1711, 2001; (08 06 2001) 7. Companies holding licences to engage in retail trade in alcoholic beverages shall sell alcoholic beverages purchased only from companies which hold licences to produce alcoholic beverages, import them into the Republic of Lithuania or engage in wholesale trade in alcoholic beverages. Only alcoholic beverages purchased at the public catering company shall be consumed there. Amendments to the paragraph: No 610, 20 05 1999, Official Gazette No 45-1443,1999; (26 05 1999) 8. It is prohibited to sell, store in shops, administrative and auxiliary premises, as well as warehouses, to exhibit and transport the following: 8.1. alcoholic beverages which have no copy of the quality certificate for each consignment and brand name of the product (imported alcoholic beverages with quality certificates marked “Additional Control is Obligatory” by the Lithuanian Frontier Customs Control of Foodstuffs, unless the licence to sell the consignment of goods, issued by the State Public Health Surveillance Agency, is available); 8.2. alcoholic beverages both imported and manufactured in the Republic of Lithuania, the quality and (
2. or)hygiene indices whereof do not correspond to the requirements established in the Republic of Lithuania; 8.3. alcoholic beverages the groups of which are not included in the licences; 8.4. alcoholic beverages (except beer) without the prescribed special marking as established by the Government of the Republic of Lithuania; 8.5. alcoholic beverages which contain ethyl alcohol not manufactured from food raw materials; 8.6. alcoholic beverages both imported and manufactured in the Republic of Lithuania the marking whereof does not correspond to the requirements of LST (CODEX STAN 1): the 1993 general requirements governing labelling of packaged goods and the goods’ labelling regulations in effect within the Republic of Lithuania; 8.7. false substitutes of alcoholic beverages; 8.8. beer which contains more than 9.5% of ethyl alcohol by volume; 8.9. wine which contains more than 22% of ethyl alcohol by volume; 8.10. products of distilled ethyl alcohol which contain more than 50% of ethyl alcohol by volume. This requirement shall not be applicable to alcoholic beverages produced by the Joint-Stock Company “Lietuviškas Midus” as well as those imported alcoholic beverages produced in keeping with a mead brand; 8.11. home-brewed alcoholic beverages, with the exception of beer brewed in accordance with normative documents, with a licence issued in the established procedure for such production; 8.12. imported alcoholic beverages (with the exception of beer) if their price is lower than the sum of valid state taxes (excise tax, duties and VAT) and if the seller of these beverages has no valid documents confirming the state tax paid. 8.13. alcoholic beverages the purchase of which has not been confirmed by valid documents; 8.14. contraband alcoholic beverages. Amendments to the paragraph: No 931, 01 09 1997, Official Gazette No 82-2058, 1997; (05 09 1997) No 610, 20 05 1999, Official Gazette No 45-1443, 1999; (26 05 1999) 9. It is prohibited to sell: 9.1. alcoholic beverages from vending machines; 9.2. alcoholic beverages to individuals under 18 years of age; 9.3. alcoholic beverages to intoxicated persons; 9.4. alcoholic beverages to officers in uniforms; 10. Requirements laid down in paragraphs 3,5 - 7, 8.4, 8.12 and 9.4 of these Rules shall not be applicable to companies trading in alcoholic beverages in duty free shops. 11. Persons who have violated the present rules shall be held liable under the Criminal Code of the Republic of Lithuania and under the Code of Administrative Violations of Law. Amendments : 1. Government of the Republic of Lithuania, Resolution No 651, 23 06 1997, Official Gazette No 60-1415, 1997; (27 06 1997) ON PARTIAL AMENDMENTS TO THE GOVERNMENT OF THE REPUBLIC OF LITHUANIA RESOLUTION NO 559 OF 5 JUNE 1997 ON PARTIAL AMENDMENTS TO THE LICENCING OF THE IMPORT OF, WHOLESALE AND RETAIL TRADE IN ALCOHOL PRODUCTS 2. Government of the Republic of Lithuania, Resolution No 931, 01 09 1997, Official Gazette No 82-2058,1997; (05 09 1997) ON PARTIAL AMENDMENTS TO THE GOVERNMENT OF THE REPUBLIC OF LITHUANIA RESOLUTION NO 559 OF 5 JUNE 1997 ON PARTIAL AMENDMENTS TO THE LICENCING OF THE IMPORT OF, WHOLESALE AND RETAIL TRADE IN ALCOHOL PRODUCTS 3. Government of the Republic of Lithuania, Resolution No 1366, 09 12 1997, Official Gazette No 114-2895,1997; (12 12 1997) ON PARTIAL AMENDMENTS TO THE GOVERNMENT OF THE REPUBLIC OF LITHUANIA RESOLUTION NO 559 OF 5 JUNE 1997 ON PARTIAL AMENDMENTS TO THE LICENCING OF THE IMPORT OF, WHOLESALE AND RETAIL TRADE IN ALCOHOL PRODUCTS 4. Government of the Republic of Lithuania, Resolution No 5, 06 01 1998, Official Gazette No 5-83, 1998; (14 01 1998) ON PARTIAL AMENDMENTS TO THE GOVERNMENT OF THE REPUBLIC OF LITHUANIA RESOLUTION NO 559 OF 5 JUNE 1997 ON PARTIAL AMENDMENTS TO THE LICENCING OF THE IMPORT OF, WHOLESALE AND RETAIL TRADE IN ALCOHOL PRODUCTS 5. Government of the Republic of Lithuania, Resolution No 50, 19 01 1998, Official Gazette No 8-172, 1998; (23 01 1998) ON PARTIAL AMENDMENTS TO THE GOVERNMENT OF THE REPUBLIC OF LITHUANIA RESOLUTION NO 559 OF 5 JUNE 1997 ON PARTIAL AMENDMENTS TO THE LICENCING OF THE IMPORT OF, WHOLESALE AND RETAIL TRADE IN ALCOHOL PRODUCTS 6. Government of the Republic of Lithuania, Resolution No 675, 04 06 1998, Official Gazette 53-1471, 1998; (10 06 1998) ON PARTIAL AMENDMENTS TO THE GOVERNMENT OF THE REPUBLIC OF LITHUANIA RESOLUTION NO 559 OF 5 JUNE 1997 ON PARTIAL AMENDMENTS TO THE LICENCING OF THE IMPORT OF, WHOLESALE AND RETAIL TRADE IN ALCOHOL PRODUCTS 7. Government of the Republic of Lithuania, Resolution No 777, 23 06 1998, Official Gazette No 59-1679, 1998; (01 07 1998) ON PARTIAL AMENDMENTS TO THE GOVERNMENT OF THE REPUBLIC OF LITHUANIA RESOLUTION NO 559 OF 5 JUNE 1997 ON PARTIAL AMENDMENTS TO THE LICENCING OF THE IMPORT OF, WHOLESALE AND RETAIL TRADE IN ALCOHOL PRODUCTS Numbering is being changed 8. Government of the Republic of Lithuania, Resolution No 610, 20 05 1999, Official Gazette No 45-1443, 1999; (26 05 1999) ON PARTIAL AMENDMENTS TO THE GOVERNMENT OF THE REPUBLIC OF LITHUANIA RESOLUTIONS NO 559 OF 5 JUNE 1997 AND NO 777 OF 23 JUNE 1998 9. Government of the Republic of Lithuania, Resolution No 1256, 10 11 1999, Official Gazette No 97-2795, 1999; (17 11 1999) ON PARTIAL AMENDMENTS TO THE GOVERNMENT OF THE REPUBLIC OF LITHUANIA RESOLUTION NO 559 OF 5 JUNE 1997 ON PARTIAL AMENDMENTS TO THE LICENCING OF THE IMPORT OF, WHOLESALE AND RETAIL TRADE IN ALCOHOL PRODUCTS 10. Government of the Republic of Lithuania, Resolution No 254, 06 03 2000, Official Gazette No 21-536,2000; (10 03 2000) ON PARTIAL AMENDMENTS TO THE GOVERNMENT OF THE REPUBLIC OF LITHUANIA RESOLUTION NO 559 OF 5 JUNE 1997 ON PARTIAL AMENDMENTS TO THE LICENCING OF THE IMPORT OF, WHOLESALE AND RETAIL TRADE IN ALCOHOL PRODUCTS 11. Government of the Republic of Lithuania, Resolution No 722, 23 06 2000, Official Gazette No 52-1504, 2000; (28 06 2000) ON PARTIAL AMENDMENTS TO THE GOVERNMENT OF THE REPUBLIC OF LITHUANIA RESOLUTION NO 559 OF 5 JUNE 1997 ON PARTIAL AMENDMENTS TO THE LICENCING OF THE IMPORT OF, WHOLESALE AND RETAIL TRADE IN ALCOHOL PRODUCTS 12. Government of the Republic of Lithuania, Resolution No 1494, 27 12 2000, Official Gazette No 113-3625, 2000; (30 12 2000) ON PARTIAL AMENDMENTS TO THE GOVERNMENT OF THE REPUBLIC OF LITHUANIA RESOLUTION NO 559 OF 5 JUNE 1997 ON PARTIAL AMENDMENTS TO THE LICENCING OF THE IMPORT OF, WHOLESALE AND RETAIL TRADE IN ALCOHOL PRODUCTS 13. Government of the Republic of Lithuania, Resolution No 663, 04 06 2001, Official Gazette No . 49-1711, 2001; (08 06 2001) ON PARTIAL AMENDMENTS TO THE GOVERNMENT OF THE REPUBLIC OF LITHUANIA RESOLUTION NO 559 OF 5 JUNE 1997 ON PARTIAL AMENDMENTS TO THE LICENCING OF THE IMPORT OF, WHOLESALE AND RETAIL TRADE IN ALCOHOL PRODUCTS 14. Government of the Republic of Lithuania, Resolution No 1519, 14 12 2001, Official Gazette No 106-3809, 2001; (19 12 2001) ON PARTIAL AMENDMENTS TO THE GOVERNMENT OF THE REPUBLIC OF LITHUANIA RESOLUTION NO 559 OF 5 JUNE 1997 ON PARTIAL AMENDMENTS TO THE LICENCING OF THE IMPORT OF, WHOLESALE AND RETAIL TRADE IN ALCOHOL PRODUCTS *** End *** Edited by: Angonita Rupšytė (19-12-2001) [email protected]