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Official translation Official translation GOVERNMENT OF THE REPUBLIC OF LITHUANIA RESOLUTION No. 1181 ON RETAIL TRADE IN TOBACCO PRODUCTS 2 October 1998 Vilnius The Government of the Republic of Lithuania h a s r e s o l v e d:

  1. To approve the Regulations on Licensing Retail Trade in Tobacco Products (attached hereto).
  2. To approve the Regulations on Retail Trade in Tobacco Products (attached hereto).
  3. To establish that: 3.
  4. non-licensed retail trade in tobacco products shall be prohibited as of 1 January 1999; 3.
  5. within a period of 10 working days from the date of receipt of the applications from municipalities, territorial state tax inspectorates and state social insurance companies shall supply the requested data about enterprises applying for a licence to conduct retail trade in tobacco products or re-registration of such licence; 3.
  6. within a period of 5 working days after the last day of the month, territorial state tax inspectorates and state social insurance companies shall inform municipalities and the State Tobacco and Alcohol Control Service under the Government of the Republic of Lithuania about the debts incurred by enterprises holding licences to conduct retail trade in tobacco products (as of the first day of each month) to the national budget of the Republic of Lithuania, municipal budgets or the budget of the State Social Insurance Fund; 3.
  7. according to the Law on Tobacco Control of the Republic of Lithuania (Valstybės Žinios, No. 11–281, 1996), licences to conduct retail trade in tobacco products shall be issued and re-registered by city (district) mayors or councils; 3.
  8. the Regulations on Retail Trade in Tobacco Products approved by the present Resolution shall be applied as of 1 January
  9. To recognise as invalid as of 1 January 1999: 4.
  10. Government Resolution No. 982 “On Warning Inscriptions on the Packaging of Tobacco Products” of 15 August 1996 (Valstybės Žinios, No. 79–1900, 1996); 4.
  11. Government Resolution No. 1493 “On Partial Amendments to Resolution No. 982 “On Warning Inscriptions on the Packaging of Tobacco Products” passed by the Government of the Republic of Lithuania on 15 August 1996” of 31 December 1996 (Valstybės Žinios, No. 1–7, 1997). Prime Minister Gediminas Vagnorius Minister of Agriculture acting as Minister of Economy Edvardas Makelis APPROVED by Resolution No. 1181 2 October 1998 Government of the Republic of Lithuania REGULATIONS ON LICENSING RETAIL TRADE IN TOBACCO PRODUCTS General Part
  12. The present Regulations shall regulate the issue, re-registration and withdrawal of licences to conduct retail trade in tobacco products (hereinafter referred to as “licences”).
  13. The present Regulations shall be applied to the following tobacco products: cigars, including cigars with cut ends, cigarillos and cigarettes containing tobacco or tobacco substitutes (falling within CD codes 2402.10.00.0–2402.90.00.0), other sorts of processed tobacco and processed tobacco substitutes; “homogenised” or “regenerated” tobacco, tobacco extracts and essences (falling within CD codes 2403.10–2403.99.90.0, except 2403.10.90.1 and 2403.99.10.0). Issue and Re-Registration of Licences
  14. The following types of licences shall be established: 3.
  15. to conduct retail trade in tobacco products; 3.
  16. to conduct retail trade in tobacco products during holiday, recreation and tourist seasons; 3.
  17. to conduct retail trade in the remainder of tobacco products.
  18. Licences may be issued to all types of enterprises registered in the Republic of Lithuania the registration certificates or bylaws of which provide for retail trade or public catering.
  19. If an enterprise conducts retail trade in several of its outlets located in different buildings (shops, restaurants, cafes, bars, buffets, kiosks, etc.), it shall be issued a licence to engage in the said activity in each of the outlets. If the outlets located in the same building are engaged in different types of activity (public catering and retail trade), the enterprise shall be issued a licence for each type of activity. If several outlets located in the same building are engaged in the same type of activity, the enterprise shall be issued one licence with all outlets indicated therein.
  20. Licences shall be issued and re-registered by city (district) mayors or councils (hereinafter referred to as the “institution that issues licences”) which will also determine the duration of holiday, recreation and tourist seasons. Licences to conduct retail trade in the remainder of tobacco products shall be issued to those enterprises that had a licence to conduct retail trade in tobacco products, but did not re-register it after the date of expiry.
  21. An enterprise applying for a licence to conduct retail trade in tobacco products shall submit the following documents to the institution that issues licences: 7.
  22. an application indicating the code of the enterprise, its name and address, date of submitting the application, names and surnames of shareholders who have more than 50 percent of the shares in the enterprise, name of economic and commercial activity for which a licence is requested, location where tobacco products are sold, address of the warehouse where tobacco products will be stored and distributed among outlets (to be specified in case an enterprise with several outlets where tobacco products are sold keeps such products in a warehouse where they are replenished and distributed among outlets and where wholesale trade is not conducted); 7.
  23. copies of the founding agreement (memorandum of association, agreement on joint activity), registration certificate and bylaws (except for enterprises that operate without bylaws) of the enterprise certified by company seal and signed by head of administration; 7.
  24. a payment order with bank requisites or receipt confirming the payment of stamp tax (to be submitted after the decision to issue the licence is adopted).
  25. An enterprise wishing to re-register a licence shall submit the following documents to the institution that issues licences: 8.
  26. an application to re-register the licence; 8.
  27. a payment order with bank requisites or receipt confirming the payment of stamp tax (to be submitted after the decision to re-register the licence is adopted).
  28. An enterprise applying for a licence to conduct retail trade in the remainder of tobacco products shall submit the following documents to the institution that issues licences: 9.
  29. an application indicating the code of the enterprise, its name and address, date of submitting the application, number of previous licence, date of its issue, re-registration and term of validity, location where tobacco products are sold, address of the warehouse where tobacco products will be stored and distributed among outlets (to be specified in case an enterprise with several outlets where tobacco products are sold keeps such products in a warehouse where they are replenished and distributed among outlets and where wholesale trade is not conducted); 9.
  30. particulars about the quantity and assortment by sorts indicated in point 2 of the present Regulations of the remainder of tobacco products purchased before the expiry date of previous licence; 9.
  31. a payment order with bank requisites or receipt confirming the payment of stamp tax (to be submitted after the decision to register the licence has been adopted).
  32. Licences shall be issued or re-registered not later than within 30 days from the date of receipt of the documents that are required to issue or re-register a licence.
  33. Licences to conduct retail trade in tobacco products shall be issued for an unlimited term and shall be re-registered annually with the institution that issued them. A licence that is not re-registered in due time shall be invalid. Licences to conduct retail trade in tobacco products during holiday, recreation and tourist seasons shall be issued for the said season. Licences to conduct retail trade in the remainder of tobacco products shall be issued for a term that does not exceed one month from the expiry date of previous licence.
  34. The form of licences shall be established by the institution that issues licences. The licence shall specify: 12.
  35. licensed activity; 12.
  36. institution that issued the licence; 12.
  37. licence number; 12.
  38. requisites of licence-holder; 12.
  39. location where tobacco products are sold, address of the warehouse where tobacco products are stored (specified in case the two addresses are different); 12.
  40. date of issue; 12.
  41. date of re-registration.
  42. A licence to conduct trade in the remainder of tobacco products shall specify the requisites indicated in points 12.1–12.6 of the present Regulations, its term of validity, number of previous licence, date of its issue and re-registration, and amount of the remainder of tobacco products by sorts indicated in point 2 of the present Regulations. A licence to conduct retail trade in tobacco products during holiday, recreation and tourist seasons shall specify the requisites indicated in points 12.1–12.6 of the present Regulations and its term of validity.
  43. The institution that issues and re-registers licences shall enter the issued and re-registered licences in a registration book.
  44. In case of loss of licence, an enterprise that submits a justified explanation may receive a copy of the licence marked “Duplicate”.
  45. Licences shall not be issued or re-registered in the event that: 16.
  46. not all required documents are submitted; 16.
  47. submitted documents are not consistent with requirements; 16.
  48. submitted data is incorrect; 16.
  49. the enterprise is indebted to the national budget of the Republic of Lithuania, municipal budgets or funds administered by the State Tax Inspectorate under the Finance Ministry (hereinafter referred to as the “State Tax Inspectorate”), as well as to the budget of the State Social Insurance Fund or the enterprise has kept misleading accounts or has otherwise persistently evaded taxes during the past 3 years prior to submitting an application for licence or between the issue (re-registration) of the licence and the application to re-register it provided that a decision passed by the State Tax Inspectorate on imposing a fine on the enterprise pursuant to Article 50

(3)of the Law on Tax Administration of the Republic of Lithuania has come into force. 16.
  1. claims are lodged in writing by institutions referred to in point 19 of the present Regulations concerning the activity of the enterprise and the indicated faults have not been amended; 16.
  2. the licence was revoked pursuant to points 28.3, 28.5–28.8 of the present Regulations (no licence shall be issued for a period of five years from the date of its withdrawal); 16.
  3. the licence was revoked pursuant to point 28.9 of the present Regulations; 16.
  4. the founders of a new enterprises applying for a licence are also founders of enterprises whose licences were revoked pursuant to points 28.3, 28.5–28.8 of the present Regulations (if the said licences were revoked pursuant to points 28.3, 28.5–28.8, licences shall not be issued for a period of 5 years; if they were revoked pursuant to point 28.9, licences shall not be issued); 16.
  5. a criminal case has been filed against at least one founder or shareholder of the enterprise who has more than 50 percent of shares in the enterprise for violations of economic or financial activity. The licence shall not be issued or re-registered until the case is examined. If the court passes a convicting sentence, the licence shall not be issued or re-registered.
  6. Upon the refusal to issue or re-register the licence, the applicant shall be informed thereof in writing within a period of 30 days from the date of receipt of the documents and reasons for the refusal to issue or re-register the licence shall be indicated. Licence Taxes
  7. Stamp tax shall be collected for the issue and re-registration of licences in accordance with the procedure prescribed by the Law on Stamp Tax of the Republic of Lithuania and resolutions of the Government of the Republic of Lithuania. Conditions for Licensed Activity
  8. The activity of enterprises engaged in retail trade in tobacco products and conditions for licensed activity shall be controlled and supervised by the institution that issues licences, the State Tobacco and Alcohol Control Service under the Government of the Republic of Lithuania (hereinafter referred to as the “State Tobacco and Alcohol Control Service”), the State Tax Inspectorate, territorial state tax inspectorates, the Ministry of Health Care, the Interior Ministry, other authorised supervision authorities within the limits of their competence, the State Competition and Consumer Protection Office under the Government of the Republic of Lithuania, and the State Quality Inspection under the State Competition and Consumer Protection Office. Institutions that control retail trade in tobacco products and supervise the conditions for licensed activity shall immediately inform in writing the institution that issues licences and the State Tobacco and Alcohol Control Service about any violations of the conditions for licensed activity discovered in enterprises and the penalties imposed thereon.
  9. Licence holders shall observe the Law on Tobacco Control of the Republic of Lithuania, other Lithuanian laws, resolutions of the Government of the Republic of Lithuania, the present Regulations, Regulations on Retail Trade in Tobacco Products, other legal acts regulating the procedure of retail trade in tobacco products, as well as sanitary, hygienic, quality and other requirements established for enterprises and tobacco products offered for sale.
  10. Licence holders shall not on their behalf authorise or transfer by contract to other enterprises or their agents (natural persons) the right to conduct the activity specified in the licence.
  11. The original licence shall be kept at the enterprise. If an enterprise obtains a licence to conduct retail trade in tobacco products in its outlet (shop, kiosk, restaurant, buffet, bar, etc.), the original licence shall be kept therein. The outlets specified in the licence shall keep a copy of the licence certified by company seal and signed by the head of administration.
  12. Enterprises that have obtained a licence to conduct retail trade in tobacco products shall purchase tobacco products only from those enterprises that have a licence to produce tobacco products, import them to the Republic of Lithuania or conduct wholesale trade in such products.
  13. Enterprises that have a licence to conduct retail trade in the remainder of tobacco products shall sell only the remainder of those products that were purchased before the expiry date of the previous licence to conduct retail trade in tobacco products. Rights of Licence Holders
  14. Enterprises with licences shall have the following rights: 25.
  15. to conduct activities specified in the licence; 25.
  16. to demand explanation in case of refusal to re-register the licence or its withdrawal; 25.
  17. to appeal in accordance with the established procedure against the decisions of officials to revoke the licence or refuse to re-register it. Notification about Withdrawal and Withdrawal of Licence
  18. The institution that issues licences shall notify the licence holder about a possible withdrawal of the licence in the event that: 26.
  19. the licence holder violates the provisions of point 22 of the present Regulations; 26.
  20. claims and notices concerning the activity of the enterprise have been filed in writing by institutions indicated in point 19 of the present Regulations; 26.
  21. the licence holder does not make payments in due time to the national budget of the Republic of Lithuania, municipal budgets or funds administered by the State Tax Inspectorate, or the budget of the State Social Insurance Fund.
  22. The actual procedure of notification about a possible withdrawal of the licence shall be established by the institution that issues licences. Debts referred to in point 26.3 of the present Regulations must be discharged within a period of 10 working days from the date of delivering the notification to the enterprise (by registered letter).
  23. Licence shall be revoked in the event that: 28.
  24. the licence holder submits an application to revoke the licence; 28.
  25. the enterprise is under liquidation or reorganisation and will stop its activity as an independent economic entity; 28.
  26. the licence holder violates the provisions of the Law on Tobacco Control of the Republic of Lithuania, other Lithuanian laws, as well as points 21 and 23 of the present Regulations; 28.
  27. the licence holder does not re-register the licence in due time; 28.
  28. the enterprise fails to eliminate within a given period any violations of the conditions for licensed activity specified in point 26 of the present Regulations; 28.
  29. the enterprise sells, keeps or transports tobacco products without valid documents of purchase or transportation drawn up in accordance with the established procedure; 28.
  30. the licence holder has kept misleading accounts or has otherwise persistently evaded taxes provided that a decision passed by the State Tax Inspectorate on imposing a fine on the enterprise pursuant to Article 50
(3)of the Law on Tax Administration of the Republic of Lithuania has come into force; 28.
  1. the data submitted to obtain or re-register the licence is incorrect; 28.
  2. an indictment or a customs decision to impose an administrative penalty on heads of administration or employees of an enterprise for smuggling and selling contraband tobacco products has come into force provided they acted on behalf of or in the interest of the enterprise.
  3. An enterprise the licence of which has been revoked pursuant to points 28.3, 28.5–28.8 of the present Regulations shall not be issued a new licence for a period of 5 years from the date of its withdrawal. An enterprise the licence of which has been revoked pursuant to point 28.9 of the present Regulations shall not be issued another licence and it shall not be re-registered.
  4. Particular suggestions on revoking licences shall be submitted by state institutions referred to in point 19 of the present Regulations. The licence shall be revoked by the institution that issues licences or the State Tobacco and Alcohol Control Service. The enterprise (as well as the institution that issues licences in case the licence is revoked by the State Tobacco and Alcohol Control Service) shall be notified about the withdrawal of its licence by registered letter.
  5. Where the licence is revoked pursuant to points 28.1–28.3, 28.5, 28.7 and 28.8 of the present Regulations, the licence holder shall within a period of 5 days submit to the institution that issues licences an inventory report on unsold tobacco products countersigned by a representative of the territorial state tax inspectorate. Taking into account the amount of unsold tobacco products, the date of the withdrawal of licence shall be established which shall not exceed 30 days.
  6. Information about revoked licences shall be published in the media. The notice shall indicate: 32.
  7. code of the enterprise, its name and address; 32.
  8. activity specified in the issued (re-registered) licence; 32.
  9. number of licence, date of its issue; 32.
  10. location where tobacco products are sold; 33.
  11. date of withdrawal of licence.
  12. An enterprise shall return the revoked licence to the institution that issues licences within a period of 5 days from the date of its withdrawal. APPROVED by Resolution No. 1181 2 October 1998 Government of the Republic of Lithuania REGULATIONS ON RETAIL TRADE IN TOBACCO PRODUCTS
  13. The present Regulations shall regulate retail trade in tobacco products. They shall be observed by all enterprises that conduct retail trade in tobacco products.
  14. Retail trade in tobacco products shall be conducted by only those enterprises that have licences to conduct retail trade in tobacco products issued by city (district) mayors or councils.
  15. Enterprises that have a licence to conduct retail trade in tobacco products (hereinafter referred to as “enterprises”), shall be permitted to trade in: 3.
  16. cigars, including cigars with cut ends, cigarillos and cigarettes containing tobacco or tobacco substitutes (falling within CD codes 2402.10.00.0–2402.90.00.0); 3.
  17. other sorts of processed tobacco and processed tobacco substitutes; “homogenised” or “regenerated” tobacco, tobacco extracts and essences (falling within CD codes 2403.10–2403.99.90.0, except 2403.10.90.1 and 2403.99.10.0).
  18. Retail trade in snuff and chewing tobacco (falling within CD code 2403.99.10.0) shall be prohibited.
  19. Enterprises shall be permitted to sell only those tobacco products that are purchased from enterprises holding licences to produce tobacco products, import them to the Republic of Lithuania or conduct retail trade in such products.
  20. It shall be prohibited to sell tobacco products: 6.
  21. in pharmacies, health care institutions, educational establishments (pre-school institutions, secondary schools, summer camps for children, etc.); 6.
  22. by vending machines; 6.
  23. to children under 18 years of age.
  24. It shall be prohibited to sell, keep in shops, administrative and auxiliary premises, warehouses, display and transport: 7.
  25. tobacco products without valid documents of purchase or transportation drawn up in accordance with the established procedure; 7.
  26. tobacco products without a copy of the manufacturer’s certificate of quality (certificate of conformity) for each consignment and brand of tobacco products; 7.
  27. tobacco products without special wrappers in the form established by the Government of the Republic of Lithuania; 7.
  28. tobacco products labelled not in conformity with the provisions of the Law on Tobacco Control, Regulations on Labelling Goods Sold in the Republic of Lithuania and other normative acts of the Republic of Lithuania; 7.
  29. tobacco products without warning inscriptions in the Lithuanian language on the packaging and packs of tobacco products about the harmful effects of smoking to health; 7.
  30. tobacco products without inscriptions in Lithuanian on packs of tobacco products indicating the amounts of tar and nicotine they contain; 7.
  31. tobacco products that contain harmful substances in excess to the levels established by the normative acts of the Republic of Lithuania; 7.
  32. illegally imported or illegally acquired tobacco products; 7.
  33. cigarettes, cigarillos and Russian cigarettes by piece.
  34. It shall be prohibited to sell tobacco products to individuals under 18 years of age. Sellers of tobacco products have the right to request, where appropriate, from individuals buying tobacco products documents attesting to their age.
  35. Locations where tobacco products are sold shall display warning signs placed in visible places alongside tobacco products; the size of these signs shall be established by the Ministry of Health Care and their text shall be co-ordinated with the State Tobacco and Alcohol Control Service under the Government of the Republic of Lithuania: “Tobacco is Very Dangerous to Your Health” and “Tobacco Products are not Sold to Individuals under 18 Years of Age”. The inscriptions shall be clear and eligible, written in block letters against a contrasting background.
  36. The sale of tobacco products shall be recommended in places located further away in shops or other outlets which attract fewer buyers so that they (especially children) are not induced to buy tobacco products.
  37. Enterprises shall be prohibited to use the following measures of inducing to buy tobacco products: 11.
  38. to distribute a portion of products gratis or as a bonus; 11.
  39. to give fixed discounts to the owners of coupons printed in the media; 11.
  40. to distribute tobacco products or new samples gratis; 11.
  41. to supply tobacco products through lotteries, contests, sporting events, and games as prizes or prize attachments; 11.
  42. to organise competitions among retail trade entities that promote tobacco product sales.
  43. Enterprises that conduct retail trade in tobacco products shall install and use cash registers in accordance with the procedure prescribed by the laws of Lithuania.
  44. Enterprises and persons conducting retail trade in tobacco products that have violated the present Regulations shall be liable in accordance with the procedure prescribed by the Law on Tobacco Control of the Republic of Lithuania and other Lithuanian laws.

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