On 4 December 2001 the Seimas adopted Law No. IX- 624 on Amending of Articles 2, 3, 4, 5, 7, 8, 9, 25, 26, 27, 30, 31, 36, 37, 39, 40, 41, 43, 44, 45, 47, 50, 52, 56, 57, 63, 66, 68, 72, 76, 77, 79, 81, 90, 92, 93, 94, 97, 106, 110, 112, 118, 119, 125, 128, 132, 137, 139, 141, 157, 160, 162, 163, 165, 170, 172, 178, 185, 186, 187, 188, 189, 193, 197, 198, 202, 203, 205, 206, 208, 213, 214, 215, 216, 217, 219, 223, 225, 226, 227, 228, 229 of the Customs Code and Supplementing the Code by Articles 5(1), 54(1), 54(2), 56(1), 85(1), 150(1), 165(1), 195(1), 198(1), 216(1), 216(2), 216(3), 216(4), 216(5), 216(6). Most of the amendments were made to harmonise the provisions of the Customs Code with the 19 December 1996 Council and Parliament Regulation No. 82/97, 13 April 1999 Regulation No. 955/99 and 16 November 2000 Regulation No. 2700/2000, by which the EU Customs Code was amended and supplemented (16 October 1992 Council Regulation No. 2913/92).

      On 15 November 2001 the Seimas adopted Law No. IX-606 on Supplementing of Article 12 of the Law on Partnerships. By amendments it is established that a limited partner, who is a natural person, is entitled to work in a partnership only according to the employment contract.

      On 11 December 2001 the Government by its Resolution No. 1500 approved the Conditions and Procedure for Performance of Assistance (Voluntary Unpaid) Works. The Procedure determines that a voluntary unpaid work are deemed a collective mutual assistance of natural persons for performance of agricultural or household works. The duration of assistance (voluntary unpaid) works with respect to each assistant may not exceed three days in succession.

      On 11 December 2001 the Government by its Resolution No. 1511 approved the procedure for Organisation of Voluntary Works. The organisers of voluntary works may be charity and support funds; budget institutions, associations, public organisations, public institutions; confessional communities, communes and confessional centres; divisions (units) of international public organisations; political parties and organisations; trade unions; other legal entities the activities of which are subject to regulation of special laws and are not aimed at profit-seeking, and the profit gained by which may not assigned to their incorporators and (or) partners and (or) members. If the work of a volunteer lasts more than two days in succession, or in case of an event lasting more than one week, the organiser of voluntary works should make records in the account book of voluntary works and persons who perform such voluntary works.

      On 4 December 2001 the Seimas adopted Law No. IX- 626 on Amendment of the Law on Protection Measures. The Law is provided a new wording aimed at harmonisation of this Law with the Law on Countervailing Duties and a more precise formulation of certain provisions of the Law (in consideration of a standard model of an analogous law of the World Trade Organisation).

      On 29 November 2001 the Government by its Resolution No. 1433 approved the Procedure for Issue of Permits for Prospecting of the Entrails, which regulates the issue of permits to prospect the entrails to legal entities, suspension of the validity and cancellation of the validity of such permits.

      On 13 December 2001 the Minister of Economy by his Order No. 374 approved the Methodical Recommendations for Organisation of the Work of Administrators of the Enterprises Undergoing Restructurisation and Drafting of the Restructurisation Plan. These methodical recommendations are published in the web site of the Ministry of Economy (www.ekm.lt).

      By the 17 December 2001 Law No IX-655 the Seimas amended the Law on Public Trading in Securities. The title of the Law was also changed to be read: the Law on Securities Market. The amendments to the Law were adopted in order to harmonise it with the provisions of the EU directives, Objectives and Principles of Securities Regulation approved by the International Organisation of Securities Commissions, and to co-ordinate the Law with the new Civil Code. The Law complies with the 25 July 1977 EU Commission recommendation 77/534/EEC concerning the European Code of Ethics on Securities Operations and the following EU directives 79/279/EEC, 80/390/EEC, 82/121/EEC, 88/627/ EEC, 89/298/EEC, 89/592/EEC, 93/6/EEC, 93/22/EEC. One of the novelties of new wording of the law is that mandatory official tender offer has to be announced when a person or group of persons acquires more than 40 percent of votes (formerly such margin was 50 percent). The Law will come into effect as of 1 April 2002, except for Article 23 permitting the financial broker’s enterprises that are licensed in EU member-states to provide investment services in Lithuania, which will come into effect after the Republic of Lithuania becomes a member of the EU.

      On 20 December 2001 the Seimas adopted Law No IX-675 on Profit Tax. The Law sets forth the procedure for imposing of profit tax on earned profit and (or) received income. The notion of a taxable entity has replaced formerly used notion of legal person in order to cover various forms of organisation of commercial activity. The Law sets the following rates of profit tax: (1) the taxable profit of Lithuanian taxable entities and permanent establishments of foreign taxable entities is subject to 15 percent tax rate (taxable profit of the entities in which an average listed number of employees do not exceed 10 people and the income over the taxation period does not exceed 500 thousand Litas, is taxed at 13 percent tax rate); (2) income of a foreign taxable entity, received not through its permanent establishments in the Republic of Lithuania, is withheld (taxed “at the source”) applying 10 percent tax rate; (3) dividends and other income from distributed profit are taxed applying 15 percent tax rate. According to the new law only the following income of foreign entities are withheld (taxed “at the source”): (1) income from interest deriving from any type of debt obligations, including securities (except for Government Bonds issued on international financial markets), bonds, as well as surcharges and premiums related to such debt obligations, except for income from interest on deposits and income from interest on subordinated loans, which meet the criteria set by the Bank of Lithuania; (2) income from distributed profit; (3) income deriving from the authors royalties and related fees. The 15 percent tax rate shall be applied for dividends and other income from distributed profit that will be distributed out of the distributable results of the year 2002. The tax exemption of investments is not applicable as from the day this law came into effect. The exemptions of foreign capital investments are applicable until the end of the tax period beginning in the year 2003. The Law came into effect as of 1 January 2002. The loss from operations with securities and derivative financial instruments are transferable to the next financial year, however, such loss may be set off only against income from the transfer of securities and derivative financial instruments.

      On 21 December 2001 the Seimas adopted Law No IX-679 on Amending and Supplementing of Article 13 of the Law on Accounting. By the amendment the requirement that the accounting documents of regular and long-term services rendered to natural persons who do not engage in economic activities (services pertaining to lease of residential premises, cold and hot water, electric and heat energy, gas supply and utility services), as well as the accounting documents issued to the receivers of telecommunication services must be signed by the persons who are responsible for due provision of such services was abolished. This Law has come into effect as of 1 January 2002.

      On 29 November 2001 the Government by its Resolution No. 1434 approved the Procedure for Temporary Import of Goods for Processing subject to Drawback System. The drawback system is the procedure of temporary import for processing during which the goods that are temporarily imported into the customs territory are allowed to circulate freely, and the import duties and taxes charged on such goods are refunded or their recovery is waived, if such goods are exported in the form of compensating products. The Procedure for Temporary Import of Goods for Processing subject to Drawback System shall come into effect as of 1 October 2002.

      On 4 December 2001 the Seimas adopted Law No. IX- 630 on Amending and Supplementing of Articles 7 and 18 of the Law on the Bar by Section Ten. The Law was adopted to harmonise the Lithuanian Law with the EU. The Law regulates the right of the lawyers of the EU member-states to practice as attorneys in the Republic of Lithuania. It is drafted taking in consideration Council and Parliament Directive 98/ 5/EU to facilitate practice of the profession of lawyer on a permanent basis in a Member State other than that in which the qualification was obtained, and the Council Directive 77/ 249/EEC to facilitate the effective exercise by lawyers of freedom to provide services. It is stipulated that the lawyers of the member-states of the European Union, who wish to practice as attorneys in the Republic of Lithuania, will be registered by the Council of the Bar Association of Lithuania. The Law also provides for the rights and obligations, disciplinary liability, and restrictions of activity, of the lawyers of the EU member-states who acquired the right to practice as attorneys in Lithuania. The Law will come into effect as of the day of accession of the Republic of Lithuania to the EU.

      On 14 December 2001 the Government by its Resolution No. 1542 approved the Rules for Organisation of Tender for Lease of Long-term Tangible State-owned and Municipal Assets. The Rules regulate the procedure and conditions of the lease of long-term tangible state-owned and municipal assets by way of public or closed tender, the obligations of the manager of the assets and the main requirements for conclusion of an agreement on lease of such assets. The Procedure comes into effect as of 1 January 2002.