Rules for Licensing Wholesale of and Retail Trade in Alcohol Products and Rules for Retail Trade in Alcohol

      Beverages in Trade and Public Catering Undertakings Approved On 20 May 2004 the Government of the Republic of Lithuania approved by its Resolution No. 618 the Rules for Licensing Wholesale of and Retail Trade in Alcohol Products and the Rules for Retail Trade in Alcohol Beverages in Trade and Public Catering Undertakings (state gazette Valstybės žinios, 2004, No. 84-3050) which came into effect on 26 May 2004. The Rules for

      Licensing Wholesale of and Retail Trade in Alcohol Products, referring to provisions of the new wording of the Law of the Republic of Lithuania on Alcohol Control which came into effect on 1 May 2004, regulate the procedure of licensing of wholesale of alcohol products and retail trade in alcohol

      beverages, authorities issuing such licenses and powers vested in them, conditions for licensed activities and rights and obligations of license holders, cases of suspension and annulment of licenses. The Rules for Retail Trade in Alcohol Beverages in Trade and Public Catering Undertakings, also referring to provisions of the new wording of the Law of the Republic of Lithuania on Alcohol Control, in detail regulate the procedure and conditions of retail trade in alcohol beverages. Rules for Carrying and Keeping of Alcohol and Tobacco Products in the Territory of the Republic of Lithuania Applicable to Natural Persons Approved On 26 May 2004 the Minister of Economy of the Republic of

      Lithuania by his Order No. 4-200 approved the Rules for Carrying and Keeping of Alcohol and Tobacco Products in the Territory of the Republic of Lithuania Applicable to Natural

      Persons (state gazette Valstybės žinios, 2004, No. 87-3180) which came into effect on 1 June 2004. The rules establish that natural persons in the territory of the Republic of Lithuania are

      prohibited from carrying and keeping alcohol and tobacco products which are not marked under the established

      procedure or are marked with falsified tax stickers, also prohibited from carrying and keeping falsified or smuggled

      alcohol and tobacco products. The rules also set forth exceptions when natural persons are permitted to keep and carry alcohol and tobacco products which are not marked under the established procedure, for example: alcohol

      beverages and tobacco products imported into the Republic of Lithuania from other countries the quantity of which cannot exceed the following for one person: 100 litres of wine, 20 litres of spirits, 20 litres of other alcohol

      beverages, 100 packs of cigarettes, 400 units of cigarillos, 200 units of cigars, 1 kg of smoking tobacco, also larger quantities of these products having informed the tax authorities about it.

      New Rules for Preparation of Detailed Plans Approved

      On 3 May 2004 the Minister of Environment by his Order No. D1-239 “Regarding Approval of the Rules for Preparation of Detailed Plans” (state gazette Valstybės žinios, 2004, No. 79-2809) approved the new Rules for Preparation of Detailed Plans which came into effect on 14 May 2004. The approved rules establish the procedure of preparing, changing, co-ordinating

      and approving detailed plans, also relations among participants of a detailed planning in the detailed planning process. The rules also provide for cases when detailed plans can be prepared, discussed, co-ordinated and approved under the simplified procedure. The new rules are mandatory to planning organisers, persons preparing plans, authorities coordinating

      decisions, performing state monitoring over territory planning, approving planning decisions, and to natural and legal persons who participate in the process and procedures of detailed planning.

      Law on European Companies Adopted

      On 29 April 2004 the Law on European Companies was adopted (state gazette Valstybės žinios, 2004, No. 78-2710). The

      Law on European Companies implements Council Regulation

      No. 2157/2001. A European company is a private legal person having a special status which performs its activities on the EU scale. The said law regulates the procedure of changing the domicile of a European company and the redemption of shares held by shareholders who do not agree to such a change by way of a tender offer. The law also provides that the Ministry of Justice can raise objections to the transfer of the domicile of a European company or to the participation of a stock company in the establishment of a European company by way of a merger if that can infringe upon public interests. The Bank of

      Lithuania and the Securities Commission can also raise objections to the transfer of the domicile of a European

      company to another state if they have a power to regulate such a company. The law also regulates certain issues related to the management structure of a European company, reformation of

      a stock company into a European company (and vice versa). The law will come into effect on 8 October 2004.

      New Wording of the Law on Co-operative

      Societies (Co-operatives) Approved

      On 27 April 2004 the Parliament supplemented the Law on Cooperative

      Societies (Co-operatives) that was effective until 1 January 2003 and amended the law on amending this law

      which approved a new wording of the law which new wording had come into effect on 1 January 2003 (state gazette Valstybės žinios, 2004, No. 78-2709).

      The Law on Co-operative Societies (Co-operatives) that was effective until 1 January 2003 was supplemented by defining specific features of agricultural co-operatives and particularities of their legal status, which had not been previously regulated by the said law. The law delegates the function of establishing

      the procedure of acknowledging co-operatives to be agricultural co-operatives to the Government of the Republic of Lithuania. New Rules for Issuing a Permit to Use the Name of Lithuania in the Name of a Legal Person,

      of an Affiliate or Representative Office of

      a Legal Person Approved On 14 May 2004 the Government of the Republic of

      Lithuania approved the new Rules for Issuing a Permit to Use the Name of Lithuania in the Name of a Legal Person, of an Affiliate or Representative Office of a Legal Person (state gazette Valstybės žinios, 2004, No. 82-2944).

      The approved rules changed the procedure, as previously in effect. The rules practically did not change the previously applicable requirements to be met by a private legal person that wanted to use Lithuania’s name in its name but they established a slightly different procedure of presenting documents. A new thing is that the rules provide for the

      exception that a permit to use Lithuania’s name is not necessary for budgetary institutions and public legal

      persons existing pursuant to a legal act adopted by a state or municipal authority on the establishment of such a person.

      Procedure of Examining Appeals and Complaints by the Customs Office in Effect On 26 May 2004 Order No. 1B-540 of the Director of the Customs Department under the Ministry of Finance of the Republic of Lithuania “Regarding the Procedure of

      Examining Appeals and Complaints by the Customs Office of the Republic of Lithuania”, dated 19 May 2004, came into effect (state gazette Valstybės žinios, 2004, No. 84-3060). The procedure approved by this order provides that appeals and complaints against the decisions made by officials of the

      Customs Department, a territorial customs office or a special customs office are to be filed with a relevant customs body no later than within a month as of the day a person

      concerned received information about the ungrounded, in his/her/its opinion, decision of a customs official, or when

      the term set by laws or regulations for decision making expires. An appeal or complaint is to be filed: a) against decisions made by officials of the Customs Department, a territorial customs office or a special customs

      office or about a failure to make such decisions – with the customs body (its head) decisions of (failure to make a

      decision by) which official are appealed against / complained about; b) against decisions made by territorial customs offices or special customs offices or about a failure to make such decisions - with the Customs Department; c) against decisions made by the Customs Department or about a failure to make such decisions – with the Supreme

      Commission of Administrative Disputes or a court. Other Tax and Customs Regulations On 20 May 2004 a new wording of Order No. 110 of the Minister of Finance of the Republic of Lithuania “Regarding Approval of the Regulations of the State Tax Authority

      under the Ministry of Finance of the Republic of Lithuania”, dated 29 July 1997, came into effect (state gazette Valstybės žinios, 2004, No. 82-2966). This new wording of the regulations was brought in conformity with the provisions

      of the new Law on Tax Administration.

      On 5 May 2004 Order No. 1B-431 of the Director of the Customs Department “Regarding Approval of the Rules for Control over Customs Evaluation of Imported Goods”, dated 28 May 2004, came into effect (state gazette Valstybės žinios, 2004, No. 70-2475).

      On 13 May 2004 Order No. 1B-484 of the Director of the Customs Department “Regarding Approval of the Rules for Releasing from Fines Imposed”, dated 10 May 2004, came into

      effect (state gazette Valstybės žinios, 2004, No. 79-2821).

      Commission Presented Proposal for a Community Code on the Movement of Persons Across Borders

      On 26 May 2004 the Commission presented a proposal for a regulation establishing a Community Code governing the movement of persons across borders. It is a component of the

      measures to be taken in the short term, as announced in the Commission’s May 2002 Communication “Towards integrated management of the external borders of the Member States of

      the European Union”. The objective of the proposal is to clarify, restructure,

      consolidate and develop existing legislation on border controls on persons. The aim is to give a more “Community” character and form to the rules that have been developed within the Schengen intergovernmental framework and integrated into

      the Treaty since May 1999. The Code set out in the proposal contains two sections: one on “external borders” and the other on “internal orders”. The first

      section includes all the rules on the control of persons at the external borders, including the following: the condition for crossing the external borders and entry to Member States; the

      principles governing control of external borders, including surveillance between authorised border crossing-points and the conditions for refusal of entry; and co-operation between Member States, including the implementation of border checks. The second section on “internal borders” adopts the provisions of the Schengen Convention, adapting them to the Community institutional framework concerning the abolition of border

      checks on persons at internal borders and the various procedures for temporarily re-introducing checks on persons at those borders in the event of a serious threat to the public policy, public health or national security of a Member State.

      European Commission Encourages Workers and Employers to Open Negotiations on Working Time

      On 19 May 2004 the European Commission adopted a document the purpose of which was to call upon the social partners to negotiate, and failing that, to give broad indications as to the direction of any legislation that might later be proposed by the Commission. This document followed an initial consultation exercise in which the Commission examined the experience from the application of the existing legislation, which was adopted in 1993. In particular, three major issues

      were identified for revision: the Conditions of application of the

      opt-out from the 48-hour week; the implications of recent court

      judgements indicating that time spent on-call should be counted as working time; and the period over which the average 48-hour weekly limit is calculated (currently 4 months). In addition, the document examined how the Working Time Directive could be used to promote better reconciliation of work and family life.

      New Instructions for Completing Mortgage Bonds, Involuntary Mortgage Bonds, Chattel Mortgage Bonds, Involuntary Chattel Mortgage Bonds

      Approved On 22 April 2004 the Minister of Justice by his Order No. 1R-96 “Regarding Approval of the Instructions for Completing Mortgage Bonds, Involuntary Mortgage Bonds, Chattel Mortgage Bonds, Involuntary Chattel Mortgage Bonds” (state gazette Valstybės žinios, 2004, No. 75-2604) approved the new Instructions for Completing Mortgage Bonds,

      Involuntary Mortgage Bonds, Chattel Mortgage Bonds, Involuntary Chattel Mortgage Bonds which replaced the old

      instructions with an analogous name which had been approved by Order No. 46 of the Minister of Justice on 20

      February 2002. The new instructions came into effect on 6 May 2004. They established much clearer and much more specific rules for completing involuntary mortgage bonds and involuntary chattel mortgage bonds, generalised the existing practice of completing contractual mortgage bonds

      and chattel mortgage bonds, as well as dispelled some former uncertainties.

      Law on Amending the Law on Securities

      Market Adopted On 27 April 2004 amendments to the Law of the Republic of Lithuania on Securities Market were adopted (state gazette Valstybės žinios, 2004, No. 73-2514). The purpose of this law is to bring the regulation of the

      securities market in conformity with relevant legal acts of the European Union. The amendments to the law provide for a duty of accountable issuers to publish notifications of material events in their internet sites (if an accountable

      issuer has one). The prohibition to use undisclosed information in securities trading and the prohibition to manipulate securities market, also sanctions for breach of these prohibitions are regulated in more detail. The amendments to the law change requirements applicable to notification about acquisition of a block of securities and those changes establish that a person who, acting independently or together with other persons, acquires 1/20 of votes in the general meeting of shareholders of an accountable issuer also a person who acquires 19/20 of votes in the general meeting of shareholders of an issuer shares of

      which are included into the official list or the current list of a securities exchange registered in the Republic of Lithuania

      must notify of acquisition of a block of securities. The amended law provides for the right of the Securities Commission to establish a detailed procedure of computing votes held by a person. The amended part 2 of Article 19 of the Law on Securities Market provides that in certain cases the price of securities purchased by way of a mandatory tender offer can be

      established by a property appraiser.

      The law is supplemented with a new Article 19-1 “Mandatory Sale and Purchase of Shares”. This article

      provides for the right of a shareholder of an issuer shares of which are included into the official list or the current list of a

      securities exchange registered in the Republic of Lithuania, having acquired independently or together with other

      persons 95% or more of votes in the general meeting of shareholders of such an issuer, which right is to require that

      all other shareholders sell to him/her/it the voting shares held by them. The right of other shareholders to require that

      a person, having acquired independently or together with other persons 95% or more of votes, buy their voting shares

      is established, too. The law also establishes a detailed procedure of exercising the said rights. The amended law provides for a right to render investment services in foreign currencies.

      Commission Adopted a White Paper on Services of General Interest

      On 12 May 2004 the European Commission adopted a Whiter Paper setting out the European Union’s approach to fostering the development of high-quality services of general interest.

      The White Paper presents the Commission’s conclusions from a

      broad public consultation launched on the basis of last year’s Green Paper. It highlights the fact that in the area of services of general interest, the responsibilities are shared between the

      European Union and the Member States. It stresses the role of national, regional and local authorities in defining, organising, financing and monitoring services of general interest. The White Paper develops the main elements of an EU strategy aimed both at ensuring that all citizens and businesses have

      effective access to a broad range of services of general interest and at improving legal certainty. The document defines a number of principles which guide the Commission’s policies in the area of services of general interest,

      such as: maintaining high levels of quality; security and safety; ensuring consumer and user rights; enabling regulation as close as possible to citizens and enterprises; ensuring cohesion and universal access; respecting diversity; performance evaluation; transparency and legal certainty.

      New Procedure of Auditing Taxpayers in Effect On 15 May 2004 Order No. VA-87 of the State Tax Authority under the Ministry of Finance of the Republic of

      Lithuania “Regarding Approval of the Rules for the Performance of Tax Audits, Making their Results Official and Approving them” came into effect (state gazette Valstybės žinios, 2004, No. 80-2876). The newly approved procedure sets forth that the tax administrator has the right to perform complex, thematic and operational audits and defines the notions of such audits. The new procedure is not applicable to the performance of operational audits.

      The procedure sets forth that the tax administrator, before the commencement of a tax audit in respect of a taxpayer, must present to the taxpayer a notification of the assignment to perform the audit (hereinafter referred to as the “tax audit notification”), except for cases when there is a reasonable risk (the tax administrator has relevant

      information/data/facts) that the taxpayer can hide or destroy documents necessary for the tax audit or when

      there are other circumstances which would render the tax audit impossible or especially difficult to perform. All tax

      audits are to be commenced when a tax official has an assignment to perform a tax audit signed by the head of the tax administration body or a person authorised by him/her. A tax audit can be performed in the offices of the tax administrator or/and at a taxpayer’s place (taxpayer’s premises). Procedure of Tax Assessment Based on Evaluation

      by the Tax Administrator in Effect On 28 May 2004 Order No. VA-103 of the Head of the State Tax Authority under the Ministry of Finance of the Republic of Lithuania “Regarding Approval of the Rules for Tax Assessment Based on Evaluation by the Tax Administrator”, dated 24 May 2004, came into effect (state gazette Valstybės žinios, 2004, No. 86-3156). This order determined cases when officials of the State Tax Authority

      have the right to use their own evaluation for the assessment of a tax amount to be paid. The evaluation can be performed when the tax administrator cannot determine the amount of the tax obligation of a taxpayer under the

      usual procedure, as provided for in laws regulating administration of relevant taxes, because the taxpayer

      defaults on or does not properly fulfil its obligations with regard to tax assessment, co-operation with the tax

      administrator, keeping of accounts, safekeeping of accounting and other documents. The tax administrator is

      to perform the evaluation by choosing relevant means of evaluation, i.e. by taking into account all circumstances

      important for evaluation, information at its disposal and, if necessary, choosing evaluation methods. The tax administrator is to choose such a method of evaluation which would enable to assess the tax obligation as

      accurately as possible. The tax administrator can apply the following evaluation methods: comparative method, method of analogy, method of expenses, net value method, method of funds in bank accounts, method of economic models. The law discusses in detail the essence of each of these methods.