LIETUVOS RESPUBLIKOS

LIETUVOS RESPUBLIKOS REPUBLIC OF LITHUANIA LAW ON ALCOHOL CONTROL 18 April 1995 No I-857 (As last amended on 24 May 2011 – No XI-1406) Vilnius CHAPTER 1 GENERAL PROVISIONS Article 1. Purpose of the Law 1. The purpose of this Law is to reduce the general consumption of alcohol, its availability, especially to minors, alcohol abuse, the damage caused by it to health and the economy and to establish the legal principles of granting economic entities the right to manufacture, sell, bring in, import and export the alcohol products, regulated in this Law. 2. This Law shall regulate the relations involving the production, sale, stocking, transporting, bringing in, importing, exporting, consumption, advertising and sponsorship and shall establish the basics of State alcohol control of the Republic of Lithuania. 3. The provisions of this Law have been harmonised with the legal acts of the European Union which are indicated in the Annex of the Law. Article 2. Definitions 1. Alcoholic beverages means the beverages whose ethyl alcohol strength by volume exceeds 1.2 % (in respect of beer – exceeds 0.5 %). 2. Alcohol Control means all of the state regulation measures set forth in this Law and other legal acts of alcohol product production, bringing in, import, export, sale, consumption and alcohol advertising, intended to reduce the general consumption of alcohol and the harmful consequences of the consumption of alcoholic beverages and other products containing ethyl alcohol to health and economy. 3. Alcohol products means non-denatured alcohol and denatured (including dehydrated and denatured) ethyl alcohol (hereinafter referred to as “ethyl alcohol”) both of agricultural and non-agricultural origin, alcoholic beverages, alimentary and non-alimentary alcoholic solutions with fragrant material additives (hereinafter referred to as “alcoholic solutions”) and raw materials containing ethyl alcohol (hereinafter referred to as “raw materials”). 4. Advertising of alcohol means the information which is disseminated in any form and through any means and which is connected with the commercial, economic and financial activities of undertakings and promotes the acquisition or consumption of alcohol products. 5. Export means the taking out of alcohol products from the Republic of Lithuania to other states, with the exception of the States, which are parties to the Agreement on the European Economic Area (European Union Member States and European Free Trade Association (EFTA) States) (hereinafter referred to as the European Economic Area States), and also Turkey. 6. Ethyl Alcohol (hereinafter referred to as “alcohol”) means the saturated monohydroxyl alcohol which affects the mind and may result in habit forming and dependency on it. 7. Import means the bringing in of alcohol products into the Republic of Lithuania from other states, with the exception of the European Economic Area States and Turkey. 8. “Entry” shall mean the bringing in of alcohol products into the Republic of Lithuania (except for the alcohol products brought in by natural persons) from the European Economic Area States and Turkey. 9. Mass events means the holidays, festivals, and other events which are organised by state or municipal institutions and also other legal or natural persons upon co-coordinating the time of the event and other procedure of the event organisation with appropriate municipal institutions (when such co-ordination is required under the Republic of Lithuania Law on Assemblies). 10. Home-brewed alcoholic beverages means the alcoholic beverages produced by a natural person. 11. Naturally fermented alcoholic beverages means the beverages in which all of the ethyl alcohol is obtained through alcohol souring means, without further distilling and adding any alcohol products which contain distilled or rectified ethyl alcohol. 12. Temporary catering establishments means catering establishments set up in accordance with hygiene standards and regulations applicable to catering establishments in temporary structures (where public catering activities are carried

1. on)which are not subject to registration in the Register of Immovable Property. 13. Ethyl alcohol of non-agricultural origin means the ethyl alcohol produced from the products which are not listed in Annex I of the EC Treaty. 14. Stocks of aircrafts and ships means the alcoholic beverages intended for the use (consumption) by passengers onboard aircrafts and/or ships. 15. Specialised alcoholic beverages retail establishment (specialised alcoholic beverages retail division of a retail establishment) means a retail establishment (division of a retail establishment) the goods assortment whereof is comprised solely of alcoholic beverages or alcoholic beverages and related goods assortment (non-alcoholic beverages, juices, gadgets for opening and sealing bottles, bottle packing, glasses, tobacco products, matches and lighters). 16. Batch means a group of units of an alcohol product produced or packed under the same conditions which are intended for sale, where this group is subject to the same product safety and conformity requirements. 17. Permanent retail establishments and permanent catering establishments means retail establishments and catering establishments the buildings whereof (in which sale or catering activities are carried
2. on)are subject under the laws and other legal acts of the Republic of Lithuania to legal registration as immovable property. 18. Educational institutions means formal and informal educational institutions. 19. Ethyl alcohol of agricultural origin means the ethyl alcohol produced from products of agricultural origin listed in Annex I of the EC Treaty. Article 3. Principles of State Policy of Alcohol Control The principles of the State policy of alcohol control shall be as follows: 1) to reduce availability of alcoholic beverages through taxation; 2) to ensure through State regulation measures the State control of alcohol, protection and strengthening of the health of the population and funding of the programmes of education of minors; 3) to extend priority to production of alcoholic beverages by natural fermentation and import and sale thereof; 4) to limit promotion of the sale and consumption of alcoholic beverages; 5) to prohibit the means of promotion of buying and consumption of alcoholic beverages by youth; 6) to encourage legal persons who are engaged in alcohol business to join in implementing the State alcohol control policy; 7) to increase public information regarding the issues of the social and economic harm inflicted on health and economy through the consumption of alcohol; 8) to sponsor action programmes of health and temperance societies and thus augment the number of people who don’t consume alcoholic beverages; 9) to promote the production and sale of non-alcoholic beverages; 10) to support planning of an alcohol-free living environment; 11) to promote the creation of a social environment free of alcohol; 12) to promote scientific research and dissemination of information concerning the harm caused to health by the consumption of alcohol; 13) to strengthen the cooperation with other Member States of the European Union and international organisations regarding the issues of the reduction of the consumption of alcohol. CHAPTER II PECULIARITIES OF STATE REGULATION OF PRODUCTION, SALE, BRINGING IN, IMPORT, EXPORT AND CONSUMPTION OF ALCOHOL AND OTHER PRODUCTS CONTAINING ETHYL ALCOHOL. REGULATION OF ALCOHOL PRODUCTS CLASSIFICATION, QUALITY AND PUBLIC HEALTH SAFETY REQUIREMENTS AND INDICATORS Article 4. Peculiarities of State Regulation of Production, Sale, Bringing in, Import and Export of Alcohol Products 1. Alcohol products shall be attributed to special goods the registration, production, bringing in, import, export, sale and consumption whereof shall be subject under this law and other laws and legal acts to a special state regulation regime. 2. The Ministry of Agriculture and the State Food and Veterinary Service shall be responsible for the implementation of the requirements of EU legal acts which regulate the wine sector. Article 5. Peculiarities of State Regulation of Production, Sale, Bringing in, Import and Consumption of Products Containing Ethyl Alcohol 1. If the liquids (technological products, products of perfumery, cosmetic and household chemistry industry etc.), which contain ethyl alcohol are consumed as beverages which have an intoxicating effect, the Government of the Republic of Lithuania or an institution authorised by it shall have the right, based upon statistical sample survey data on the harmful consequences to health caused by consumption of these liquids, to set their accounting, production, bringing in, import, sale and consumption according to the norms prescribed by this Law. 2. Guided by this Law and other laws and legal acts the Government of the Republic of Lithuania or an institution authorised by it may set the procedure of accounting, production, bringing in, import and sale of food products which contain alcohol. Article 6. Regulation of Safety and Quality Indicators of Alcohol Products The safety and quality indicators of alcohol products produced, imported, brought in and sold in the Republic of Lithuania (hereinafter referred to as “alcohol products”) by legal persons as well as branches and representations of foreign legal persons registered in the Republic of Lithuania in the established manner who, according to the laws of a foreign state, have the right to engage in economic commercial activity (hereinafter referred to as “branches and representative offices of foreign legal persons”) must conform to the requirements valid in Lithuania. Article 7. Establishment of Conformity of Alcohol Products with the Requirements of Legal Acts 1. The State Food and Veterinary Service shall within the scope of its competence control the conformity of alcohol product safety and quality indicators with the requirements of the legal acts in force in the Republic of Lithuania. Laboratories confirmed by an institution authorised by the Government of the Republic of Lithuania, who have the right to issue documents certifying the conformity of alcohol products, shall test the alcohol products. 2. The State Food and Veterinary Service shall control the winemaking technologies employed in the production of wine products. 3. Should the control institutions authorised by this Law and other legal acts, in testing the samples of alcohol products taken in accordance with the set procedure, determine that these do not meet the requirements of legal acts, it shall be deemed that the entire batch of alcohol products from which the samples have been selected does not meet these requirements and measures of market restriction established by law shall be applied. Article 8. Classification of Alcoholic Beverages Alcoholic beverages produced in Lithuania, imported, brought in into the Republic of Lithuania and sold there shall be distributed in-groups, subgroups and/or categories. An institution authorised by the Government of Lithuania shall determine the groups, subgroups and/or categories, except for those, the classification whereof is determined by directly applicable legal acts of the European Union. Article 9. Labelling of Alcoholic Beverages Alcoholic beverages sold in the Republic of Lithuania must be labelled according to the procedure set forth in legal acts. CHAPTER III RESTRICTION OF ALCOHOL AVAILABILITY SECTION ONE STATE REGULATION OF ALCOHOL PRODUCT PRODUCTION Article 10. State Regulation of Home-brewed Alcoholic Beverage Production Production of home-brewed alcoholic beverages shall be prohibited in the Republic of Lithuania, except for those intended for personal consumption of natural persons (i.e. not for sale, but only for meeting own or family needs), being produced naturally fermented alcoholic beverages, whose ethyl alcohol strength by volume is not over 18 per cent (for beer- no higher than 9.5 %). Article 11. Peculiarities of State Regulation of Alcohol Product Production in the Republic of Lithuania 1. Ethyl alcohol, which is used in the production of alcoholic beverages, food and products having ethyl alcohol, must be produced only from agricultural products and be non-denatured. The Government of the Republic of Lithuania or an institution authorised by it shall set the criteria of recognition of ethyl alcohol as denatured. 2. Each batch of alcohol products produced in the Republic of Lithuania must have a document certifying the conformity of these products. The State Food and Veterinary Service shall, having co-ordinated it with the Ministry of Agriculture, approve a list of laboratories having the right to issue such documents. The beer production undertakings and undertakings producing naturally fermented mead and fruit wine, which are indicated in paragraph 2 of Article 12 of this Law and which use, under a contract, the services of food product quality research laboratories of other institutions or undertakings certified in accordance with the established procedure may, on the basis of the beer, mead or fruit wine research protocols issued by these laboratories, issue a conformity declaration of the beer, mead or fruit wine produced by them. Article 12. Granting of the Right to Produce Alcohol Products 1. Production of alcohol products (with the exception of the home-brewed alcoholic beverages referred to in Article 10 of this Law which are produced by natural persons for their own consumption) shall only be permitted for the undertakings and branches of foreign legal persons (hereinafter referred to as an “undertaking”) registered in the Republic of Lithuania in the established manner, which hold a licence issued by the Drug, Tobacco and Alcohol Control Department for the production of these products. Licences shall be issued for an unlimited period. 2. The licence to produce alcohol products shall only be issued to those undertakings which hold certified standard documents which determine the safety and quality indicators of these products as well as equipment and premises which meet the technological requirements, a laboratory for examining the quality of the alcohol products and personnel of necessary qualifications. An institution authorised by the Government of Lithuania shall establish the requirements of personnel qualification. The undertakings which annually produce up to 5000 hectolitres of beer, up to 100 hectolitres of naturally fermented mead or fruit wine and which do not have the possibility of setting up their own laboratory shall, under a contract, use the services of food product quality research laboratories of other institutions and undertakings certified in accordance with the established procedure. 3. The Government of the Republic of Lithuania, guided by this Law, the Civil Code of the Republic of Lithuania (hereinafter referred to as the “Civil Code”) and the requirements of the EU law, shall approve the licensing regulations of the production of alcohol products. SECTION TWO STATE REGULATION OF BRINGING IN, IMPORT AND EXPORT OF ALCOHOL PRODUCTS Article 13. Procedure of Bringing in and Import of Alcohol Products 1. Only the undertakings which hold an import licence issued by an institution authorised by the Government of Lithuania may import wine, grape must (hereinafter referred to as “wine products”) and ethyl alcohol of agricultural origin. 2. Only the undertakings which have informed the institution authorised by the Government of the Republic of Lithuania about this in accordance with the procedure established by the Government of the Republic of Lithuania or an institution authorised by it shall be permitted to import other alcohol products which have not been indicated in paragraph 1 of this Article. Having imported alcohol products, the undertakings must conform to the requirements of sale, storage and transportation set in Section Three of Chapter III of this Law. 3. Undertakings shall be permitted to import alcohol products only provided that they are in possession of documents certifying conformity of the alcohol products, issued by the entities (a laboratory or any other institution or the producer of alcohol products) approved by a foreign state competent authority, in which quality and harmlessness indicators must also be presented and declared and, when importing wine products, who are in possession of the transportation document and a document containing the data of the wine product analysis. Cases when possession of these documents is not required when importing wine products shall be established in the legal acts which are in force in the Republic of Lithuania. 4. Legal persons and branches and representations of foreign legal persons shall be permitted to bringing in of alcohol products. Having brought in alcohol products, legal persons and branches and representations of foreign legal person must conform to the requirements of sale, storage and transportation, set forth in Section Three of Chapter III of this Law. Article 14. Procedure of Issuance of Licences to Import Wine Products and Ethyl Alcohol of Agricultural Origin 1. An institution authorised by the Government of the Republic of Lithuania shall issue licences to import wine products and ethyl alcohol of agricultural origin. 2. The Government of the Republic of Lithuania or an institution authorised by it shall set the regulations of the licensing of the import of alcohol products indicated in paragraph 1 of this Article, based on this Law and the requirements of the EU law. Article 15. State Regulation of Export of Alcohol Products 1. Only the undertakings which hold an export licence issued by an institution authorised by the Government of the Republic of Lithuania shall be permitted to export wine products and ethyl alcohol of agricultural origin. 2. The Government of the Republic of Lithuania or an institution authorised by it shall set regulations for the export of alcohol products licensing indicated in paragraph 1 of this Article, based on this Law and the requirements of the EU law. SECTION THREE STATE REGULATION OF WHOLESALE AND RETAIL TRADE IN ALCOHOL PRODUCTS Article 16. Licences for Wholesale and Retail Trade in Alcohol Products 1. Only undertakings holding licences to engage in wholesale trade in alcohol products issued by the Drug, Tobacco and Alcohol Control Department shall be allowed to engage in wholesale trade in the said products. Licences shall be issued for an unlimited period. Licences to engage in wholesale trade in alcohol products must among other things have a listing of the alcohol products permitted to be sold, and must indicate the groups of alcoholic beverages as well as the location of their sale and storage. 2. Undertakings holding licences to produce alcohol products shall also have the right to engage in wholesale trade in the products they produce. 3. Only the undertakings holding licences to engage in retail trade in alcoholic beverages shall be permitted to engage in retail trade in alcoholic beverages. Licences shall be issued for an unlimited period by the executive institution of an appropriate municipality. Licences to engage in seasonal retail trade in beer and alcoholic beverages whose ethyl alcohol concentration volume does not exceed 22 % in resorts and other recreational and tourist areas designated by the municipal councils shall be issued for the resort, recreational and tourist season period set by the municipal councils. Onetime licences issued to retail establishments and catering establishments to engage in sale of alcoholic beverages whose ethyl alcohol strength by volume is not over 13 % at public events, exhibitions and fairs and also, to engage in the sale of all alcoholic beverages at exhibitions and fairs held in permanent buildings, shall be issued for no longer than the time of the event’s duration. 4. The undertakings willing to engage in retail trade in alcoholic beverages at the retail establishments and catering establishments set up in multi-dwelling buildings shall be issued licences where these undertakings present, in accordance with the procedure established by the Government of the Republic of Lithuania, a consent of a meeting (board) of the community of flat owners of a residential building or, where the community has not been established or the community manages more than one multi-dwelling building, a consent of the majority of owners of the residential building’s premises and tenants of non-privatised flats (the persons signing the consent may indicate therein the time of trade in alcoholic beverages). 5. The municipal council shall establish the procedure of licence issuance for retail trade in retail establishments and catering establishments and publish it in the mass media. The Drug, Tobacco and Alcohol Control Department shall control the issuance of licences in the municipalities. 6. The licences to engage in retail trade in alcoholic beverages must, inter alia, also have entries indicating the groups of alcoholic beverages whose sale shall be permitted, as well as the location of sale and storage of the alcoholic beverages. 7. The Government of the Republic of Lithuania shall set the regulations of licensing wholesale and retail trade in alcohol products, based upon this Law, the Civil Code and the requirements of EU law. Article 17. Requirements of Sale, Storing and Transportation of Alcohol Products 1. It shall be prohibited to sell in the Republic of Lithuania: 1) alcohol products without having documents certifying the conformity of the alcohol products in accordance with the procedure established by the Government of the Republic of Lithuania or an institution authorised by it; 2) alcohol products not recorded on the licences for the production, import and sale thereof, and alcohol products without holding the mandatory legally valid documents of product acquisition or transportation; 3) alcoholic beverages (with the exception of beer, beer blends with non-alcoholic beverages and naturally-fermented cider of not more than 8.5 % ethyl alcohol strength) not labelled with special marks – tax stamps according to the procedure established by the Government of the Republic of Lithuania; 4) alcoholic beverages, which are produced using ethyl alcohol of non-agricultural origin; 5) alcohol products whose safety and/or quality indicators do not meet the requirements in force in the Republic of Lithuania; 6) alcoholic beverages, whose labelling does not meet the requirements in force in the Republic of Lithuania; 7) counterfeit alcoholic beverages; 8) home-brewed alcoholic beverages; 9) ethyl alcohol for natural persons, except for non-denatured ethyl alcohol of agricultural origin, sold in pharmacies to natural persons in accordance with the procedure established by the Ministry of Health; 10) contraband alcohol products; 11) alcohol products without holding a licence issued according to the procedure established by the Government of the Republic of Lithuania; 12) alcohol products without holding at the place of their sale/storage a copy of mandatory legally valid documents of product acquisition or transportation. 2. Legal persons and branches and representations of foreign legal persons shall be prohibited from storing and transporting in the Republic of Lithuania: 1) alcohol products without having documents certifying the conformity of the alcohol products in accordance with the procedure established by the Government of the Republic of Lithuania or an institution authorised by it; 2) alcohol products not recorded on the licences for the production, import and sale thereof, and alcohol products without holding the mandatory legally valid documents of product acquisition or transportation; 3) alcoholic beverages (with the exception of beer, beer blends with non-alcoholic beverages and naturally-fermented cider of not more than 8.5 % ethyl alcohol strength) not labelled with special marks – tax stamps according to the procedure established by the Government of the Republic of Lithuania; 4) alcoholic beverages, which are produced using ethyl alcohol of non-agricultural origin; 5) alcoholic beverages, whose labelling does not meet the requirements in force in the Republic of Lithuania; 6) counterfeit alcoholic beverages; 7) home-brewed alcoholic beverages; 8) contraband alcohol products; 9) alcohol products without holding a licence issued in accordance with the procedure established by the Government of the Republic of Lithuania for alcohol product production, import and wholesale or retail trade, except for the cases set forth in paragraph 3 of this Article;. 10) alcohol products without holding at the place of their sale/storage and/or during their transportation a copy of mandatory legally valid documents of product acquisition or transportation; 11) alcoholic beverages in an open packaging in the passenger compartment of a car.. 3. The requirements of subparagraph 9 of paragraph 2 of this Article shall not apply to: 1) the alcoholic beverages which are stored or transported by the undertakings which use these beverages as food product raw materials, also legal persons and branches and representations of foreign legal persons, which have acquired alcoholic beverages for representational purposes in accordance with the procedure established by the Government of the Republic of Lithuania or an institution authorised by it; 2) the ethyl alcohol stored and transported by the undertakings entitled to import ethyl alcohol; 3) the raw materials stored and transported by the undertakings which have the right to import raw materials as well as undertakings which use cider, grape, fruit and berry wine raw materials to produce vinegar; 4) the alcoholic solutions stored and transported by the undertakings which have the right to import alcoholic solutions, undertakings which use alcoholic solutions for production purposes as well as undertakings which engage in retail trade in alcoholic solutions bottled in disposable packaging of not more than 20 millilitres; 5) the alcohol products which are stored or transported by the persons providing transport services and economic entities of other states belonging to the European Economic Area and Turkey who are in possession of the mandatory legally valid documents of the acquisition or transportation of these products; 6) the alcoholic beverages which are stored and transported by managers of ships and owners (or users) of aircrafts supplying alcoholic beverages as stocks to their ships or aircrafts carrying passengers on international routes; 7) ethyl alcohol which is used in production (including production of bio-fuels or the fuel compounds which conform to standards or statutory requirements, where this production uses non-denatured dehydrated and dehydrated denatured ethyl alcohol as well as the cases when using ethyl alcohol during the manufacturing operations it turns into another alcohol product which is fully used up for the production of any other end product which is not a alcohol product) as well as for technical, medical, veterinary needs or for scientific research operations and which is acquired, stored, transported and used by the undertakings, institutions and organisations which hold the authorisations issued according to the procedure established by the Government of the Republic of Lithuania, with the exception of the cases specified by the Government of the Republic of Lithuania when the authorizations are not mandatory. 4. Natural persons shall be prohibited from consuming, storing and transporting alcohol products in an open packaging in the passenger compartments of cars, with the exception of the motor vehicles which have a fixed partition between the passenger and driver compartments. Natural persons who possess a business certificate which grants the right to engage in catering trade in foodstuff and who carry out the activities provided for in such a business certificate shall be prohibited from storing and transporting alcohol products in automobile-shops specially adjusted for the said trade during their working hours; taxi drivers shall also be prohibited from storing alcohol products in taxicabs during their working hours. The procedure for storing and transporting alcohol products, which is applied to natural persons, shall be established by the Government of the Republic of Lithuania or an institution authorised by it. 5. The undertakings which hold licences to produce alcohol products, engage in wholesale trade therein or engage in retail sale of alcoholic beverages shall be prohibited from authorising other persons to engage in the activities indicated in the licence or to transfer this right to other persons under a contract. 6. The undertakings which hold licences to engage in wholesale trade in alcoholic beverages shall be permitted to acquire them in the Republic of Lithuania only from the undertakings which hold licences to produce alcoholic beverages, licences to engage in wholesale trade in them, and to sell them to the undertakings which hold licences to engage in wholesale or retail trade therein, licences to export wine products, also, in accordance with the procedure established by the Government of the Republic of Lithuania or an institution authorised by it, to legal persons, branches and representative offices of foreign legal persons purchasing alcoholic beverages for representational needs, to managers of ships and owners (users) of aircrafts supplying alcoholic beverages as stocks to their ships or aircrafts carrying passengers on international routes, to economic entities of other states belonging to the European economic area and Turkey, and to foreign state diplomatic missions, consular posts and representations of international organisations accredited with the Foreign Affairs Ministry of the Republic of Lithuania. The undertakings which hold licences to engage in wholesale trade in alcoholic beverages shall also be permitted to acquire in the Republic of Lithuania for representational needs from the undertakings which hold licences in engage in retail trade in alcoholic beverages the alcoholic beverages of the types trade in which is not permitted under the licence which they hold. 7. The undertakings which hold licences to engage in retail trade in alcoholic beverages shall be permitted to acquire them in the Republic of Lithuania only from the undertakings which hold licences to produce alcoholic beverages or licences to engage in wholesale trade therein and shall be permitted to sell them to natural persons and also, in accordance with the procedure established by the Government of the Republic of Lithuania or an institution authorised by it, to legal persons, to branches and representative offices of foreign legal persons which are purchasing alcoholic beverages for representational needs, and to foreign state diplomatic missions, consular posts and representations of international organisations accredited with the Foreign Affairs Ministry of the Republic of Lithuania. The undertakings which hold licences to engage in retail trade in alcoholic beverages shall also be permitted to acquire in the Republic of Lithuania for representational needs from the undertakings which hold licences in engage in retail trade in alcoholic beverages the alcoholic beverages of the types trade in which is not permitted under the licence which they hold. 8. The undertakings which hold licences to produce alcoholic beverages shall be permitted to sell them to: 1) the undertakings which hold licences to engage in wholesale or retail trade in alcoholic beverages and licences to export wine products; 2) the undertakings which use these beverages as raw materials of food products; 3) legal persons, branches and representative offices of foreign legal persons which purchase alcoholic beverages for representational needs in accordance with the procedure established by the Government of the Republic of Lithuania or an institution authorised by it and foreign diplomatic missions, consular posts and representations of international organisations accredited with the Ministry of Foreign Affairs of the Republic of Lithuania; 4) economic entities of other states belonging to the European Economic Area and Turkey; 5) managers of ships and owners (or users) of aircrafts supplying alcoholic beverages as stocks to their ships or aircrafts carrying passengers on international routes. 9. The undertakings which hold licences to produce ethyl alcohol or engage in wholesale trade therein shall be permitted to sell it to: 1) the undertakings, institutions and organisations which use ethyl alcohol for production, technical, medical, veterinary needs and in scientific operations, according to the procedure established by the Government of the Republic of Lithuania; 2) the undertakings which hold licences to engage in wholesale trade therein and licences to export ethyl alcohol of agricultural origin; 3) economic entities of other states belonging to the European Economic Area and Turkey. 10. The undertakings which hold licences to produce raw materials or engage in wholesale trade therein shall be permitted to sell them to: 1) the undertakings which hold licences to produce alcohol products, licences to engage in wholesale trade in raw materials and licences to export wine products; 2) the undertakings using cider, grape, fruit and berry wine raw materials in the production of vinegar; 3) economic entities of other states belonging to the European Economic Area and Turkey. 11. The undertakings which hold licences to produce alcoholic solutions or to engage in wholesale trade therein shall be permitted to also sell them (bottled in disposable containers of more than 20 millilitres to: 1) the undertakings using alcoholic solutions for production needs; 2) the undertakings which hold licences to engage in wholesale trade in alcoholic solutions; 3) economic entities of other states belonging to the European Economic Area and Turkey. 12. The undertakings which hold licences to produce alcohol products and licences to engage in wholesale trade therein shall also be permitted to export these products (exportation of wine, grape must and ethyl alcohol of agricultural origin shall be permitted only possessing an export licence). 13. The undertakings, institutions and organisations which, in accordance with the established procedure, have acquired ethyl alcohol for production, technical, medical, veterinary needs or for scientific operations shall be prohibited from using it for other purposes. Article 18. Procedure for Selling Alcoholic Beverages in Retail Establishments and Catering Establishments 1. In the Republic of Lithuania, it shall be permitted to sell: 1) alcoholic beverages at permanent specialised alcoholic beverages retail establishments, specialised alcoholic beverages retail divisions of permanent retail establishments, permanent catering establishments, in general sections of permanent petrol stations and permanent retail establishments located in rural settlements, international trains, narrow-gauge railway trains and ships which have set up separate catering places, the aircrafts carrying passengers on international routes as well as at the exhibitions and fairs which are held in permanent buildings, in mini-bars installed in hotel rooms; 2) naturally fermented cider (whose ethyl alcohol strength by volume does not exceed 8.5 %) bottled by the plant and beer and beer blends with non-alcoholic beverages in kiosks until 1 January 2012, in pavilions, automobile-shops (which serve the rural population according to the procedure established by a municipal council) and in general sections of permanent retail establishments; 3) alcoholic beverages whose ethyl alcohol strength by volume does not exceed 22 %, in temporary catering establishments during a resort, recreational and tourist season period set by a municipal council; 4) naturally fermented alcoholic beverages whose ethyl alcohol strength by volume does not exceed 13 %, at exhibitions; 5) naturally fermented alcoholic beverages whose ethyl alcohol strength by volume does not exceed 6 %, at mass events and fairs. 2. Repealed on 1 August 2007. 3. In the Republic of Lithuania, the sale of alcoholic beverages shall be prohibited: 1) in places of confinement, the premises housing military and equated services, the police and other statutory, health care, education establishments and areas thereof, also in the vicinity of these establishments and houses of prayer (at a distance specified by the municipal council subject to co-ordination respectively with heads of these institutions and religious communities); 2) in the retail establishments in which the amount of goods intended for children and adolescents comprises 30 or more percent of the turnover of the retail goods; 3) at mass events and fairs (except for the naturally fermented alcoholic beverages whose ethyl alcohol strength by volume does not exceed 6 %) and at the exhibitions (except for the naturally fermented alcoholic beverages whose ethyl alcohol strength by volume does not exceed 13 %); 4) from vending machines; 5) to persons younger than 18 years of age; 6) at temporary retail establishments and catering establishments. This prohibition shall not apply to the alcoholic beverages sold on international trains, narrow-gauge railway trains and ships which have separately set up catering places, the aircrafts carrying passengers on international routes, at the exhibitions and fairs held in permanent buildings, in mini-bars installed in hotel rooms as well as in the cases listed in subparagraphs 2-4 of paragraph 1 of this Article; 7) at the retail establishments, catering establishments and kiosks set up in the warehouses of wholesale establishments and importers in which wholesale trade in alcoholic beverages is carried on; 8) at retail establishments which are not totally isolated from the living or other quarters not connected with the organisation of sale or stocking of goods; 9) during sport competitions. This prohibition shall not apply to alcoholic beverages, whose ethyl alcohol strength by volume does not exceed 6 %; 10) on 1 September each year, except for catering establishments. This prohibition shall not apply to the alcoholic beverages sold on international trains, ships, aircrafts carrying passengers on international routes, in mini-bars installed in hotel rooms as well as in the tax-free shops and sales outlets in which alcoholic beverages are sold only for passengers departing from the Republic of Lithuania; 11) to sell alcoholic beverages from 22:00 to 8:00 at the retail establishments (with the exception of the cases limited by municipal councils). This prohibition shall not apply to the alcoholic beverages sold on international trains, ships, aircrafts carrying passengers on international routes, in the tax-free shops and sales outlets in which alcoholic beverages are sold only for passengers departing from the Republic of Lithuania. 4. It shall be prohibited to sell in the Republic of Lithuania: 1) alcoholic beverages on tap. This prohibition shall not apply to the alcoholic beverages sold at permanent catering establishments, at the exhibitions and fairs taking place in permanent buildings, international trains, narrow-gauge railway trains and ships which have separately set up catering places, the aircrafts carrying passengers on international routes, the alcoholic beverages (whose ethyl alcohol strength by volume does not exceed 22 %) sold at temporary catering establishments during a resort, recreational and tourist season period established by a municipal council, also beer, beer blends with non-alcoholic beverages and naturally-fermented cider sold in company shops of production undertakings, beer, beer blends with non-alcoholic beverages and naturally-fermented cider (whose ethyl alcohol strength by volume does not exceed 6 %) on tap sold at mass events, exhibitions and fairs; 2) alcoholic beverages to intoxicated persons; 3) alcoholic beverages to persons under 18 years of age. 5. The salespersons of alcoholic beverages shall have the right, and when doubts shall arise that a person is younger then 18 years of age must, require from the person purchasing alcoholic beverages to show a document indicating his age. Should such a person fail to show a document indicating his age, the salespersons of alcoholic beverages must refuse to sell him alcoholic beverages. 6. Purchasers of alcoholic beverages shall have the right to obtain a thorough, correct, accurate and straightforward information concerning the goods being purchased. 7. The Government of the Republic of Lithuania the shall approve rules for the trade in alcoholic beverages at catering and retail undertakings, including tax-free shops, in accordance with this Law and the Civil Code. 8. Municipal councils shall have the right to restrict or prohibit trade in alcoholic beverages on holidays and mass event days. 9. Taking into consideration the location of trade in alcoholic beverages and the opinion of residents, societies, communities or representatives thereof, public organisations or other institutions as stated in writing, proposals of police commissioner’s offices, municipal councils shall have the right to restrict the time during which it is allowed to sell alcoholic beverages, not to issue a licence to engage in retail trade in alcoholic beverages. CHAPTER IV REFUSAL TO ISSUE A LICENCE Article 181. Refusal to Issue a Licence Licences to produce alcohol products, to engage in wholesale trade in them or to engage in retail trade in alcoholic beverages shall not be issued in the following cases: 1) the undertaking submits not all necessary documents and fails to meet the requirements of the licensing authority to submit the missing documents; 2) the undertaking submits documents which are insufficiently or incorrectly filled in and fails to meet the requirements of the licensing authority to address these shortcomings; 3) the undertaking submits the documents which do not comply with the set requirements and fails to meet the requirement of the licensing authority to address these shortcomings; 4) the undertaking has tax arrears to the state budget of the Republic of Lithuania, municipal budget or foundations the taxes paid to which are administered by the State Tax Inspectorate (with the exception of the cases where the payment of taxes, interest charged for late payment, fines has been postponed in accordance with the procedure laid down by the legal acts of the Republic of Lithuania or a tax dispute is in progress concerning these taxes, interest charged for late payment, fines) and the undertaking is indebted to the budget of the State Social Insurance Fund; 5) the licence has been revoked for the undertaking on the grounds of the requirements laid down in paragraphs 18 and/or subparagraph 4 of paragraph 20 of Article 34 of this Law (licences shall not be issued at all); 6) the founders or heads of the undertakings wishing to acquire licences were the founders, heads or other employees referred to in paragraph 18 of Article 34 of this Law of the undertakings for which the licences were revoked on the grounds of the requirements laid down in paragraph 18 and/or subparagraph 4 of paragraph 20 of Article 34 of this Law (licences shall not be issued at all); 7) a judgment of conviction has become effective or a judgment or a decision of the court, a decision of the customs, the State Tax Inspectorate, the police, the State Food and Veterinary Service or the Drug, Tobacco and Alcohol Control Department concerning the imposition of a fine or penalty has become effective in respect of the undertakings or their heads or other employees (if they have acted on behalf of the undertaking or in its interests) for contraband of alcohol products, unlawful stocking, transportation or sale of alcoholic beverages without tax stamps and also for sale, transportation or stocking of counterfeit alcohol products (licences shall not be issued at all); 8) the founders or heads of the undertakings wishing to acquire licences are or were the founders or heads of the undertakings in which the fact of production, trade and/or stocking, transportation of alcoholic beverages without possessing the licence issued in accordance with the procedure laid down by the Government of the Republic of Lithuania was established (licences shall not be issued for five years from the date of the establishment of the said violation). Article 182. Other Cases of Refusal to Issue a Licence 1. Besides the cases provided for in Article 181 of this Law, licences to produce alcohol products shall not be issued in the following cases: 1) the licence to produce alcohol products has been revoked for the undertaking on the grounds of the requirements laid down in subparagraphs 1 and/or 5 of paragraph 20 of Article 34 of this Law (licences shall not be issued for one year from the date of the revocation of the previously possessed licence); 2) the licence to produce alcohol products has been revoked for the undertaking on the grounds of the requirements laid down in paragraph 17 and/or subparagraph 3 of paragraph 20 of Article 34 of this Law (licences shall not be issued for five years from the date of the revocation of the previously possessed licence); 3) the founders or heads of the undertakings wishing to acquire licences were the founders, heads or other employees of the undertakings for which the licences to produce alcohol products were revoked on the grounds of the requirements laid down in paragraph 17 of Article 34 of this Law (licences shall not be issued for five years from the date of the revocation of the previously possessed licence); 2. Besides the cases provided for in Article 181 of this Law, licences to engage in wholesale trade in alcohol products shall not be issued in the following cases: 1) the licence to engage in wholesale trade in alcohol products has been revoked for the undertaking on the grounds of the requirements laid down in subparagraphs 1, 2 and/or 5 of paragraph 20 of Article 34 of this Law (licences shall not be issued for one year from the date of the revocation of the previously possessed licence); 2) the licence to engage in wholesale trade in alcohol products has been revoked for the undertaking on the grounds of the requirements laid down in paragraph 17 and/or subparagraph 3 of paragraph 20 of Article 34 of this Law (licences shall not be issued for five years from the date of the revocation of the previously possessed licence); 3) the founders or heads of the undertakings wishing to acquire licences were the founders, heads or other employees of the undertakings for which the licences to engage in wholesale trade in alcohol products were revoked on the grounds of the requirements laid down in paragraph 17 of Article 34 of this Law (licences shall not be issued for five years from the date of the revocation of the previously possessed licence); 4) the undertaking fails to fulfil obligations to the customs. 3. Besides the cases provided for in Article 181 of this Law, licences to engage in retail trade in alcoholic beverages shall not be issued in the following cases: 1) the licence to engage in retail trade in alcoholic beverages has been revoked for the undertaking on the grounds of the requirements laid down in subparagraphs 1, 2 and/or 5 of paragraph 20 of Article 34 of this Law (licences shall not be issued for one year from the date of the revocation of the previously possessed licence); 2) the licence to engage in retail trade in alcoholic beverages has been revoked for the undertaking on the grounds of the requirements laid down in paragraph 17, 19 and/or subparagraph 3 of paragraph 20 of Article 34 of this Law (the licence to engage in retail trade in alcoholic beverages in that sales outlet in which the violation has been established shall not be issued for the undertaking which committed the violation for one year from the date of the revocation of the previously possessed licence); 3) when trading in alcoholic beverages at mass events, exhibitions and fairs the undertaking has violated the requirement laid down in subparagraph 3 of paragraph 4 of Article 18 of this Law. In this case a one-time licence to engage in retail trade in alcoholic beverages at mass events, exhibitions and fairs shall not be issued for one year from the date of the establishment of the violation in that municipality in which the said violation has been established; 4) the undertaking fails to fulfil the obligations to the customs (this shall apply to the undertakings wishing to acquire licences to engage in retail trade in alcoholic beverages in tax-free shops); 5) where the municipal council, taking into consideration the location of trade in alcoholic beverages, the opinion of residents, societies, communities or representatives thereof, public organisations or other institutions as stated in writing, proposals of police commissioner’s offices, adopts a reasoned decision not to issue a licence. CHAPTER IV REDUCTION AND CONTROL OF ALCOHOLIC BEVERAGE CONSUMPTION SECTION ONE ORGANISATIONAL MEASURES TO REDUCE GENERAL CONSUMPTION OF ALCOHOL Article 19. Planning of Reduction in General Consumption of Alcohol Long-term indicators of reduction in the general consumption of alcohol must be established in a programme of the Government of the Republic of Lithuania. Article 20. Statistics of the Harm Caused to Health and Economy through the Consumption of Alcohol products 1. Monitoring of the consumption of alcohol and the harm caused by it to health and the economy shall be conducted in the Republic of Lithuania according to the procedure established by the Government of Lithuania and co-ordinated with the National Health Council. 2. The Republic of Lithuania Law on Statistics shall establish the legal grounds of organisation of selective statistical research on alcohol consumption and the harm caused by it to health and the economy. Article 21. Peculiarities of Determination of Minimum Standard of Living It shall be prohibited to include alcoholic beverages in the minimum assortment of food products and non-food products and services in order to estimate the minimum standard of living. Article 22. Restriction of Alcoholic Beverage Consumption In the Republic of Lithuania, consumption of alcoholic beverages shall be prohibited in: 1) places of confinement, the premises housing military and equated services, the police and other statutory, health care, education establishments and areas thereof ; 2) state government and administration institutions, except for official receptions and other functions involving protocol. This provision shall not apply to the catering establishments set up in these institutions which have licences to engage in retail trade in alcoholic beverages; 3) all types of public transport, except for international trains, narrow-gauge railway trains and the ships which contain separate catering establishments, and also the aircrafts flying beyond the borders of the Republic of Lithuania; 4) in public places, except for the catering establishments holding licences to engage in retail trade in alcoholic beverages, and at exhibitions, fairs and mass events where undertakings have been issued licences in accordance with the procedure laid down by municipal councils to engage in the sale of alcoholic beverages. 2. In the Republic of Lithuania persons under the age of 18 shall be prohibited from consuming alcoholic beverages or from having them. 3. Undertakings having licences to engage in retail trade of alcoholic beverages and engaged in mass catering operations must ensure that persons under the age of 18 would not consume alcoholic beverages in locations of their sale. Article 23. Provision of Information to the Public about Alcohol, about the Damage to Health and the Economy Caused by Consumption Thereof 1. The Ministry of Education and Science must draft health promotion programmes in all general education schools and other educational establishments and include health promotion issues in newly published textbooks. 2. All educational establishments must, subject to co-ordination with the Ministry of Health, include in programmes of education information on alcoholic beverages, the damage caused by them to health and the economy, and also on the creation of an environment favourable to health preventing the damage occasioned through the consumption of alcohol and on the promotion of a healthy life style. 3. Lithuanian National Radio and Television must transmit the broadcasts which propagate a healthy lifestyle and provide information regarding the damage caused through the consumption of alcohol, and the broadcast must be transmitted at least twice weekly and for at least 5 minutes from 18:00 to 22:30. Article 24. Programmes of Alcohol Control 1. The Government of the Republic of Lithuania shall draft, approve and implement the State programme of alcohol control. 2. The implementation measures of the State programme of alcohol control shall be funded from approved general appropriations from the State Budget and from the State Investment Programme to appropriate ministries, state institutions and other economic entities responsible for the implementation of the programme as well as other funds. 3. Municipalities shall draft, approve, fund and implement municipal programmes of alcohol control. 4. Other natural and legal persons may also draft other alcohol control programmes and submit proposals regarding their drafting and implementation to the Government of the Republic of Lithuania, the National Health Council and other institutions which form and implement the State alcohol control policy. Article 25. Sponsorship of Action Programmes of Temperance Organisations Action programmes of temperance organisations shall be sponsored according to the established procedure as follows: 1) from the State Budget and from municipal budget funds; 2) by natural and legal persons in accordance with the procedure set forth in the Republic of Lithuania Law on Charity and Sponsorship; 3) from other funds. SECTION TWO RESTRICTION OF ALCOHOL ABUSE Article 26. Procedure of Insobriety (Drunkenness) Control 1. The persons driving (piloting) means of transport in the Republic of Lithuania may be tested for insobriety (drunkenness) and the amount of alcohol in the blood or exhaled air. Employers must ensure that prior to a journey verification be done to see whether their employees who drive (pilot) the means of transport of undertakings, institutions and organisations are sober (not drunk). 2. The Government of the Republic of Lithuania or an institution authorised by it shall establish the procedure for determining insobriety (drunkenness) control of the persons driving (piloting) means of transport and of other persons, the permitted maximum concentration of ethyl alcohol in the exhaled air, blood and other body fluids of the persons driving (piloting) means of ground, water and air transport in the Republic of Lithuania. Article 27. Organisation of Narcological Supervision 1. Narcological supervision shall be performed in accordance with the procedure established by the Republic of Lithuania Law on Narcological Supervision, other laws and legal acts. 2. The persons who have alcohol poisoning may be detoxified in personal healthcare institutions according to the procedure set forth in laws and other legal acts. The police may bring such persons by force to the personal healthcare institutions only in the cases when they may cause harm to their own health and life or that of the people around them by their actions (or a failure to act). 3. The competence of the persons who exhibit the alcohol dependency syndrome may be restricted in the cases and in accordance with the procedure laid down by law. SECTION THREE RESTRICTION OF PROMOTION OF SALE AND ADVERTISING OF ALCOHOLIC BEVERAGES Article 28. Restriction of Promotion of Alcoholic Beverage Sales 1. For the undertakings having the right to sell alcoholic beverages, it shall be prohibited to employ the following means of promoting alcoholic beverage sales: 1) to give alcoholic beverages as a premium, a supplement to an item of goods or as a present; 2) to apply fixed discounts to those possessing coupons printed in mass media offerings; 3) to organise dissemination of alcoholic beverage samples free of charge, except for tasting sessions at exhibitions and fairs; 4) to organise retail sale entity competitions in order to promote alcoholic beverage sales; .5) to sell specialized advertising publications published in the Republic of Lithuania or abroad and brought into the Republic of Lithuania, with the intention of promoting the sale of alcoholic beverages. 2. It shall be prohibited to invite as assistants in promotion campaigns persons under 18 years of age. Article 29. Restriction of Alcohol Advertising 1. Alcohol advertising of all forms shall be prohibited in the Republic of Lithuania if it: 1) aims at children and adolescents up to 18 years of age; 2) features persons under 18 year of age in promotion campaigns; 3) has among participants athletes, doctors, political figures and persons famous in art and science circles, and other famous public figures, and uses their person, name, picture, etc.; 4) links consumption of alcohol with improvement in physical condition; 5) links consumption of alcohol with driving; 6) links consumption of alcohol with physical activity improvement, personal problem resolution; 7) links consumption of alcohol with stimulating, sedating and other beneficial characteristics; 8) links consumption of alcohol with social success and enhanced sexual activity; 9) favourably portrays immoderate consumption of alcoholic beverages or negatively responds to abstinence or moderation; 10) presents greater ethyl alcohol strength by volume as an advantage of alcoholic beverages; 11) presents false and/or misleading information about alcoholic beverages. Version of paragraph 2 before 1 January 2012: 2. Alcohol advertising shall be prohibited: 1) on the outside covers of newspapers and independent supplements thereof, also outside covers of journals and books; 2) in the newspapers, journals, books, television and radio programmes aimed at children and adolescents; 3) in programmes broadcast by the broadcasters and re-broadcasters under the jurisdiction of the Republic of Lithuania, being broadcast from 6:00 to 23:00 (except for the international art, cultural or sports events broadcast or rebroadcast directly or continuously); 4) at concerts, circus, discotheques, youth sport and leisure time events, other mass events, theatre presentations, movie and video film demonstration locations, except for the retail outlets located at sites of such events. At mass events (except for events intended for children and adolescents of up to 18 years of age) the name and (
3. or)trade mark of the undertaking which is sponsoring the event and is the producer and seller of alcoholic beverages whose sales are permitted at mass events, may also be displayed provided that by their content and form they do not contradict the requirements of legal acts; 5) at education, science and training institutions; 6) at all healthcare institutions; 7) inside and outside of means of public transport; 8) at petrol stations and areas thereof, except for the alcohol retail outlets located there; 9) on postcards, envelopes and postage stamps. Version of paragraph 2 from 1 January 2012: 2. Alcohol advertising shall be prohibited: 1) in the mass media; 2) at concerts, circus, discotheques, youth sport and leisure time events, other mass events, theatre presentations, movie and video film demonstration locations, except for the retail outlets located at sites of such events. At mass events (except for the events intended for children and adolescents of up to 18 years of age) the name and/or trade mark of the undertaking which is sponsoring the event and is the producer and seller of the alcoholic beverages whose sales are permitted at mass events may also be displayed provided that by their content and form they do not contradict the requirements of legal acts; 3) at education, science and training institutions; 4) at all healthcare institutions; 5) inside and outside of means of public transport; 6) at petrol stations and areas thereof, except for the alcohol retail outlets located there; 7) on postcards, envelopes and postage stamps. 3. It shall be prohibited to give out alcoholic beverages as prizes or along with them, at lotteries, games and contests. Version of paragraph 4 before 1 January 2012: 4. Outdoor alcohol advertising, except for beer, beer blends with non-alcoholic beverages and naturally fermented wine and cider, shall be prohibited in the Republic of Lithuania. Version of paragraph 4 from 1 January 2012: 4. Outdoor advertising of alcohol shall be prohibited in the Republic of Lithuania. 5. In outdoor advertising of beer and beer blends with non-alcoholic beverages and naturally fermented wine and cider (except in cases when only the names and/or trademarks of the undertakings which produce or sell the alcoholic beverages are displayed on outside advertising) a warning inscription must appear regarding the harmful effect of alcohol upon health. The Ministry of Health shall determine the form and content of this text and its place in advertising. Paragraph 5 will be repealed on 1 January 2012. 6. Information about alcoholic beverages in information announcements which are intended only for the specialists engaged in alcohol business, also the registered names of the undertakings which produce or sell alcoholic beverages (if the name of the producer of the alcoholic beverages is an integral part of the registered name of these undertakings) and trademarks, when these names and trademarks are displayed on signboards on the building of the headquarters or division of these undertakings and on the transport of the undertakings shall not be treated as advertising. The registered names or trademarks of the undertakings producing or selling alcoholic beverages, when these names or trademarks are seen irregularly and unexpectedly during the programmes broadcast or rebroadcast and when images of these names and trademarks are auxiliary compared to images of the programme broadcast or rebroadcast shall neither be treated as advertising. 7. Compliance with the requirements set in this Article shall be controlled by the Drug, Tobacco and Alcohol Control Department, municipal institutions (violations of prohibitions in outdoor advertising). CHAPTER V COMPETENCE OF STATE ALCOHOL CONTROL MANAGEMENT INSTITUTIONS Article 30. System of Formulating of State Alcohol Control Policy The Seimas of the Republic of Lithuania, the Government of the Republic of Lithuania, the National Health Council, municipal councils and other institutions specified by the law shall, within the scope of their competence, formulate and co-ordinate the State alcohol control policy. Their powers in the area of alcohol control shall be established by this Law and other laws and legal acts. Article 31. System of Executive Institutions in State Alcohol Control Policy The ministries, the Drug, Tobacco and Alcohol Control Department, the State Food and Veterinary Service, other state institutions, municipal executive institutions, the police, and healthcare establishments shall, within the scope of their competence, carry out State alcohol control. Their competence within the area of alcohol control shall be established by this Law and other laws and legal acts. Article 32. State Tobacco and Alcohol Control Service The competence of the Drug, Tobacco and Alcohol Control Department shall be established by the Republic of Lithuania Law on the Health System, this Law and Regulations of the Drug, Tobacco and Alcohol Control Department approved by the Government of the Republic of Lithuania. CHAPTER VI PROCEDURE FOR HOLDING A PERSON LIABLE FOR VIOLATIONS OF THIS LAW AND FOR INSTITUTING PROCEEDINGS Article 33. Administrative Liability for Violations of This Law 1. For violations of this Law natural persons shall be subject to administrative liability under the law. 2. The contraband, counterfeit alcohol products, alcoholic beverages without special tax stamps and without holding a licence issued in accordance with the established procedure which are sold, held in stock and transported in the Republic of Lithuania, also the alcohol products which do not meet the quality requirements in force in the Republic of Lithuania, or the acquisition whereof is not certified by legally valid documents shall be confiscated in accordance with the Republic of Lithuania Code of Administrative Offences (hereinafter referred to as the “Code of Administrative Offences”). 3. Confiscated alcohol products shall be destroyed or used in the production of bio-fuels in accordance with the procedure established by the Government of Lithuania or an institution authorised by it. Article 34. Application of Economic Sanctions for Violations of the Law 1. The Drug, Tobacco and Alcohol Control Department, the State Food and Veterinary Service, the State Tax Inspectorate, the institution authorised by the Government of the Republic of Lithuania to issue licences for the import and export of wine products and ethyl alcohol of agricultural origin, the institution authorised by the Government of the Republic of Lithuania which must be informed about the import of alcohol products (except for wine products and ethyl alcohol of agricultural origin), municipal institutions and the police shall have the right to impose, within the scope of their competence, fines for violations of this Law against legal persons and branches and representative offices of foreign legal persons. 2. For production and sale of the alcohol products which do not conform to the safety and quality requirements in force in the Republic of Lithuania, import and export of wine products and ethyl alcohol of agricultural origin, production, stocking, transportation and sale of alcohol products without possessing an appropriate licence for this activity, import of alcohol products (with the exception of wine products and ethyl alcohol of agricultural origin) if the institution authorised by the Government of the Republic of Lithuania is not informed according to the procedure established by the Government of the Republic of Lithuania or the institution authorised by it, also for a failure to comply with the requirements set forth in subparagraphs 2-11 of paragraph 1, subparagraphs 2-9 of paragraph 2, paragraphs 5-11 and 13 of Article 17 of this Law, also for a violation of the restrictions or prohibitions concerning trade in alcoholic beverages on holidays and mass event days as established by municipal councils, legal persons and branches and representative offices of foreign legal persons shall incur a fine in the amount from LTL 1000 to LTL 50 000. 3. For a failure to comply with the requirements set forth in subparagraphs 1 and 12 of paragraph 1, subparagraphs 1, 10 and 11 of paragraph 2 of Article 17, paragraphs 1 and 3, subparagraphs 1 and 2 of paragraph 4 and paragraph 9 of Article 18, paragraph 3 of Article 22 of this Law, undertakings shall incur a fine in the amount from LTL 500 to LTL 2000, and for repeated non-compliance with the said requirements committed during a two-year period from the imposition of the fine, in the amount from LTL 2000 to LTL 5000. 4. For a failure to comply with the requirement of subparagraph 3 of paragraph 4 of Article 18 of this Law, undertakings shall incur a fine in the amount from LTL 1000 to LTL 3000. 5. For a failure to comply with the requirements of Article 28 of this Law, undertakings shall incur a fine in the amount from LTL 1000 to LTL 10 000, and for each repeated non-compliance with the same requirement committed during a two-year period from the imposition of the fine, in the amount from LTL 10 000 to LTL 20 000. 6. For a failure to comply with the requirements of Article 29 of this Law, legal persons and branches and representative offices of foreign legal persons shall incur a fine in the amount from LTL 10 000 to LTL 50 000, and for each repeated violation of that same requirement committed within two years from imposition of the fine, in the amount from LTL 50 000 to LTL 100 000. 7. The specific amount of an imposed fine shall be set by taking into account the nature of a violation and the extenuating and aggravating circumstances indicated in paragraphs 8 and 9 of this Article. If there are any extenuating circumstances present, the amount of the fine shall be reduced from the average to the minimum, and in the presence of any aggravating circumstances the fine shall be increased from the average to the maximum amount. If there are both extenuating and aggravating circumstances present, the fine shall be imposed taking into account their amount and significance. The reduction or increase of the amount of the fine shall be substantiated in the decision by the institution imposing the fine for non-compliance of the regulations established in this Law. The court investigating a complaint shall, taking into account extenuating and other circumstances (due to which a respective fine against an offender would be too large, because it would be disproportionate to the committed violation and therefore unfair) and acting in compliance with the criteria of fairness and prudence, have the right to impose a fine smaller than the minimum fines stipulated in paragraphs 2, 3, 4, 5 and 6 of this Article. 8. The fact that, having committed a violation, legal persons and branches and representations of foreign legal persons have voluntarily barred the way of the harmful consequences of the violation, assisted competent institutions in the course of the investigation, compensated for losses or eliminated the caused damage shall be treated as extenuating circumstances. The institution which imposes the penalty may also recognise other circumstances which have not been indicated in this paragraph as extenuating. 9. The fact that legal persons and branches and representations of foreign legal persons hindered the investigation, concealed the committed violation, continued to violate the requirements of this Law ignoring the instruction of a competent institution to terminate the illegal actions shall be treated as aggravating circumstance. 10. Fines for the production and sale of the alcohol products which do not conform to the safety and quality requirements and for a failure to comply with the requirements established in subparagraphs 1, 4, 5 and 6 of paragraph 1 and subparagraphs 1, 4, 5 of paragraph 2 of Article 17 of this Law shall be imposed by the State Food and Veterinary Service. 11. Fines for a failure to comply with the requirements of subparagraphs 2, 3, 7-12 of paragraph 1 and subparagraphs 2, 3, 6-11 of paragraph 2, paragraphs 5-11 and 13 of Article 17, paragraphs 1, 3, 4 and 9 of Article 18, paragraph 3 of Article 22 of this Law as well as for a violation of the restrictions or prohibitions concerning trade in alcoholic beverages on holidays and mass event days as established by municipal councils shall be imposed by the Drug, Tobacco and Alcohol Control Department and the police. The heads of police institutions or persons authorised by them shall have the right to impose fines on behalf of the police. 12. Fines for a failure to comply with the requirements of subparagraphs 2, 3, 7, 9-12 of paragraph 1, subparagraphs 2, 3, 6, 8-10 of paragraph 2 and paragraphs 5-11 and 13 of Article 17, paragraph 1, subparagraphs 6-8 of paragraph 3, subparagraph 1 of paragraph 4 of Article 18 of this Law shall be imposed by the State Tax Inspectorate. 13. Fines for the production of alcohol products without a licence required for this activity and for a failure to comply with the requirements laid down in subparagraph 6 of paragraph 1, subparagraph 5 of paragraph 2 of Article 17 and in Article 28 of this Law shall be imposed by the Drug, Tobacco and Alcohol Control Department and the State Food and Veterinary Service. 14. Fines for non-compliance with the requirements set in Article 29 of this Law shall be imposed by the Drug, Tobacco and Alcohol Control Department and municipal institutions (for violations in outdoor advertising). 15. An institution authorised by the Government of the Republic of Lithuania shall impose fines for importing and exporting wine products and ethyl alcohol of agricultural origin without possessing a licence for such an activity. 16. Fines for importing alcohol products (except for wine products and ethyl alcohol of agricultural origin), if the institution authorised by the Government of the Republic of Lithuania is not informed of this according to the procedure established by the Government of the Republic of Lithuania or an institution authorised by it, shall be imposed by the institution which must be informed about the import of these alcohol products. 17. For the undertakings having licences to produce alcohol products or licences to engage in wholesale trade in alcohol products which have violated the requirements of subparagraphs 2, 4, 8 and/or 9 of paragraph 1 and subparagraphs 2, 4 and/or 7 of paragraph 2 of Article 17 of this Law, the licences shall be revoked and new licences shall not be reissued for five years from the day of the revocation of the licences. For the undertakings having licences to engage in retail trade in alcohol beverages which have violated the requirements of subparagraphs 2, 4, 8 and/or 9 of paragraph 1 and subparagraphs 2, 4 and/or 7 of paragraph 2 of Article 17 of this Law, the licence to engage in retail trade in alcohol beverages at a sales outlet where a violation has been established shall be revoked, and a new licence shall not be reissued for one year from the day of the revocation of the licence. 18. The licences shall be revoked and licences shall not be reissued to undertakings, if a judgment of conviction has become effective or a judgement or a decision of the court, a decision of the customs, the State Tax Inspectorate, the police, the State Food and Veterinary Service or the Drug, Tobacco and Alcohol Control Department concerning the imposition of a fine or penalty has become effective in respect of them or in respect of their heads or other employees (if they have acted on behalf of the undertaking or in its interests) for contraband of alcohol products, unlawful stocking, transportation or sale of alcoholic beverages without tax stamps and also for sale, transportation or stocking of counterfeit alcohol products. 19. Undertakings possessing a licence to engage in retail trade in alcoholic beverages (except for the undertakings possessing one-time licences to engage in retail trade in alcoholic beverages at mass events, exhibitions and fairs) which within three years from the imposition for the first time of a fine for violation of the requirement set in subparagraph 3 of paragraph 4 of Article 18 of this Law repeatedly commits a violation of the said requirement in the same sales outlet shall have its licence revoked at the sales outlet where violations have been established, and a new licence shall not be reissued for one year from the day of revocation of the licence. 20. The licences to produce alcoholic beverages, to engage in wholesale trade in alcoholic beverages or to engage in retail trade in alcoholic beverages shall be revoked also in the following cases: 1) where it transpires that the incorrect data have been submitted by the undertaking in order to obtain the licence; 2) the undertaking whose licences to engage in wholesale trade in alcoholic beverages or to engage in retail trade in alcoholic beverages has not eliminated the specified violations of the licensed activities; 3) the undertaking fails to comply with the requirements set in paragraphs 5-11 of Article 17 of this Law; 4) after the change of the head of the undertaking it transpires that a judgment of conviction has become effective or a judgement or a decision of the court, a decision of the customs, the State Tax Inspectorate, the police, the State Food and Veterinary Service or the Drug, Tobacco and Alcohol Department concerning the imposition of a fine or penalty has become effective in respect of the new head of the undertaking for contraband of alcohol products, unlawful stocking, transportation or sale of alcoholic beverages without tax stamps and also for sale, transportation or stocking of counterfeit alcohol products, and the undertaking fails to replace the said head within the time limit set by the licensing authority; 5) the undertaking engages in the activities specified in the licence or stocks the alcohol products specified in the licence not in the place indicated in the licence; 6) where there is a notification of a territorial state food and veterinary service about the revocation for the established violations of the certificate on the approval of food handling business issued to the undertaking (the licence to engage in retail trade in alcoholic beverages is revoked in that sales outlet for which the certificate on the approval of food handling business has been revoked, and those units for whom the certificate on the approval of food handling business has been revoked are struck off of the licences to produce alcohol products and to engage in wholesale trade); 7) the undertaking submits an application for the revocation of the licence; 8) the undertaking is under liquidation or is being reorganized, ceasing to exist as an independent legal person; 9) the undertaking which was warned about a possible revocation of the licence has not eliminated the specified violations of the licensed activities within the set time limit. 21. Revocation of licences shall not relieve undertakings from the payment of fines established in paragraphs 2, 3, 4, 5, and 6 of this Article and imposed on the undertakings. Article 341. Warning about Possible Suspension or Revocation of a Licence, and the Revocation of a Licence Undertakings having licences to engage in wholesale trade in alcoholic beverages or retail trade in alcoholic beverages shall be warned for violations of the conditions of licensed activities about a possible suspension or revocation of the licences, or their licences shall be suspended in the cases and according to the procedure laid down in the regulations of licensing of the wholesale and retail trade in alcohol products, approved by the Government of the Republic of Lithuania. Undertakings having licences to producealcoholic beverages shall be warned for violations of the conditions of licensed activities about a possible revocation of the licences in the cases and according to the procedure laid down in the regulations of licensing of the production of alcohol products, approved by the Government of the Republic of Lithuania. Article 35. Record of Law Violations and Time Limits of Hearing of Cases 1. The employees (officers) of the control institutions indicated in paragraph 1 of Article 34 of this Law who have the authorisation therefor shall, having determined that the requirements of this Law have been violated, draw up a record of the content set forth in the Code of Administrative Offences. 2. The institutions indicated in paragraph 1 of Article 34 of this Law shall hear cases and impose fines within one month from the day of the establishment of a violation, however not later than within three years from the day of the commission of the violation, and in the event of a continuous violation – within three years from the day of transpiration thereof. Article 36. Participants in Proceedings 1. The following shall participate in the proceedings regarding the violations indicated in Article 34 of this Law: 1) a person suspected of violating this Law; 2) other economic entities according to a decision by the institutions indicated in paragraph 1 of Article 34 of this Law, with whose interests the case being heard is linked; 3) representatives of state administration and municipal institutions upon their request; 4) experts and specialists and other persons on the decision of the institutions indicated in paragraph 1 of Article 34 of this Law. 2. The persons indicated in subparagraphs 1 and 2 of paragraph 1 of this Article shall be hereinafter referred to as parties to the proceedings. 3. Representatives authorised by the parties may represent them in the proceedings. Article 37. Notification Regarding Proceedings Parties to proceedings shall be given written notification regarding the established violations of this Law, the time and place of the hearing of a case and shall also be offered access to the case material and requested to present written explanations. Article 38. Hearing of a Case 1. A case shall be heard in the presence of parties to proceedings and other participants in the proceedings. 2. During the hearing of a case the parties shall have the right to familiarise themselves with the collected material, give oral and written explanations, present evidence, lodge applications. 3. If parties to proceedings do not participate in the hearing of a case, the case may only be heard in those instances, when information is available, that the parties to the proceedings have been informed in due time of the place and time of the hearing of the case. Article 39. Decisions Adopted upon the Hearing of a Case 1. The institutions indicated in paragraph 1 of Article 34 of this Law, having heard the case, shall have the right to adopt a decision to: 1) apply the economic sanctions established by this Law; refuse to apply economic sanctions, when there are no grounds established by this Law; 3) terminate the case, when a violation of this Law does not exist; 4) return the case for additional investigation. 2. A decision shall be adopted following the hearing of the case. It must indicate: the name of the institution which has adopted the decision; the date and place of the case hearing; information regarding the violator; circumstances of the violation; proof of the violator’s guilt on which the decision is based, the Article of this Law, which establishes liability for the violation; the explanations of the violator and the assessment thereof; the adopted decision; the terms and procedure of the appeal against the decision. 3. The decisions of the institutions indicated in paragraph 1 of Article 34 of this Law shall be delivered to persons in respect of whom such decisions have been adopted within two working days from their adoption. Article 40. Recovery of Fines 1. Fines must be paid into the State Budget and in instances, when the fines are imposed by municipal executive institutions, into the budget of the municipality which imposed the fine, no later than within one month of the day, when the decision to impose a penalty was delivered to the persons who violated this Law. 2. Bailiffs shall collect the unpaid fines enforcing the decisions of the institutions indicated in Article 39 of this Law in accordance with the procedure established by the Code of Civil Procedure of the Republic of Lithuania. Decisions may be referred for enforcement no later than within 3 years of the day of adoption thereof. *Article 41. Appeal against Decisions regarding Application of Economic Sanctions 1. The economic entities which object to the decisions of the institutions indicated in paragraph 1 of Article 34 of this Law regarding application of economic sanctions shall have the right to appeal against the decision to the court within a month’s period from the delivery of the decision to them according to the procedure established by the Republic of Lithuania Law on Administrative Proceedings. 2. A court appeal shall suspend the implementation of the decisions of the institutions indicated in paragraph 1 of Article 34 of this Law regarding the application of economic sanctions. *Note. To recognise that Article 41 of the Republic of Lithuania Law on Alcohol Control (version of 9 March 2004; Official Gazette, No 47-1548, 2004) to the extent that it does not provide for a possibility for the undertakings whose licence had been revoked for the violations indicated in paragraph 17 of Article 34 of this Law (versions of 9 March 2004, 25 April 2006 and 21 June 2007) to appeal to the court against decisions on the imposition of the mentioned sanction is in conflict with paragraph 1 of Article 30 of the Constitution of the Republic of Lithuania as well as with the constitutional principles of justice and the rule of law, and to the extent that it does not provide for a possibility for the court, taking account of the nature of a violation, scope thereof, extenuating and other relevant circumstances and acting in compliance with the criteria of fairness and prudence, to rule that this sanction, namely, revocation of the licence of the undertaking for the violations indicated in paragraph 17 of Article 34 of this Law (versions of 9 March 2004, 25 April 2006 and 21 June 2007), may not apply, because it is evidently disproportionate (inadequate) to the committed violation and therefore unjust, is in conflict with paragraph 1 of Article 109 of the Constitution of the Republic of Lithuania as well as with the constitutional principles of justice and the rule of law. Article 42. Disputes about Violations of this Law Disputes about violations of this Law shall be resolved in accordance with the procedure established by the laws of the Republic of Lithuania. I promulgate this Law passed by the Seimas of the Republic of Lithuania. PRESIDENT OF THE REPUBLIC ALGIRDAS BRAZAUSKAS Annex to Republic of Lithuania Law on Alcohol Control LEGAL ACTS OF THE EUROPEAN UNION WITH WHICH THE LAW OF REPUBLIC OF LITHUANIA ON ALCOHOL CONTROL HAS BEEN HARMONISED The Law of the Republic of Lithuania on Alcohol Control is harmonised with the following legal acts of the European Union: Council Directive of 3 October 1989 on the coordination of certain provisions laid down by law, regulation of administrative action in Member States concerning the pursuit of television broadcasting activities, 89/552/EEC (with the latest amendments, enacted on 30 June 1997 in the Directive of the European Parliament and Council 97/36/EC); 2) Council Regulation (EEC) of 29 May 1989 No 1576/89, laying down general rules on the definition, description and presentation of spirit drinks (with the latest amendments, enacted on 22 December 1994 in the Council and European Parliament Regulation (ECN) No 3378/1994); Council Regulation (EC) No 1493/1999 of 17 May 1999 on the common organisation of the market in wine (with the latest amendments, enacted in Council Regulation (EC) No 2585/2001 of 19 December 2001); Commission Regulation (EC) No 1622/2000 of 24 July 2000 laying down certain detailed rules for implementing Regulation (EC) No 1493/1999 on the common organisation of the market in wine and establishing a Community code of oenological practices and processes (with the latest amendments, enacted in Commission Regulation No 2244/2002 of 16 December 2002); 5) Commission Regulation (EC) No 883/2001 of 24 April 2001 laying down detailed rules for implementing Council Regulation (EC) No 1493/1999 as regards trade with third countries in products in the wine sector (with the latest amendments, enacted in Commission Regulation (EC) No 1175/2003 of 1 July 2003); 6) Commission Regulation (EC) No 884/2001 of 24 April 2001 laying down detailed rules of application concerning the documents accompanying the carriage of wine products and the records to be kept in the wine sector (with the latest amendments, enacted in Commission Regulation (EC) No 1782/2002 of 7 October 2002); 7) Council Recommendation of 5 June 2001 on the drinking of alcohol by young people, in particular children and adolescents; 8) Council Regulation (EC) No 670/2003 of 8 April 2003 laying down specific measures concerning the markets in ethyl alcohol of agricultural origin.