Free Trade Agreement between the Republic of Croatia and the Republic of Lithuania

PREAMBLE

str. 1Desirous to develop and strengthen friendly relations, especially in the fields of economic cooperation and trade, with an aim to contribute to the progress of economic co-operation between the two countries and to increase the scope of mutual trade exchange,

The Republic of Croatia and the Republic of Lithuania (hereinafter 'the Parties')

CONFIRMING their intention to participate actively in the process of economic integration in Europe and expressing their preparedness to co-operate in seeking ways and means to strengthen this process;

DECLARING their readiness to undertake activities with a view of promoting harmonious development of their trade as well as expanding and diversifying their mutual co-operation in the fields of joint interest, including fields not covered by this Agreement, thus creating a framework and supportive environment based on equality, non discrimination, and a balance of rights and obligations;

REFERRING to the mutual interest of the Parties in the continual reinforcement of the multilateral trading system and considering that the provisions and instruments of the General Agreement on Tariffs and Trade 1994 (hereinafter 'GATT 1994') and the World Trade Organization (hereinafter 'WTO') constitute a basis for their foreign trade policy;

RESOLVED to lay down for this purpose provisions aimed at the progressive abolition of the obstacles to trade between the Parties in accordance with the provisions of these instruments, in particular those concerning the establishment of free trade areas;

DETERMINED to implement this Free Trade Agreement with the objective to preserve and protect the environment and to ensure an optimal use of natural resources in accordance with the principle of sustainable growth;

HAVE DECIDED, in pursuance of these objectives, to conclude the following Agreement (hereinafter referred to as "this Agreement").

ARTICLE 1 Objectives

str. 11. The Parties shall gradually establish a free trade area between them in accordance with the provisions of this Agreement and in conformity with Article XXIV of the GATT 1994 and the other multilateral agreements on trade in goods annexed to the Agreement establishing the WTO. 2.

str. 2The objectives of this Agreement are:
- a) to increase and enhance the economic cooperation between the Parties and raise the living standard of the population of the two countries; - b) to gradually eliminate difficulties and restrictions on trade in goods, including also the agricultural products;
- c) to promote, through the expansion of reciprocal trade, the harmonious development of the economic relations between the Parties;
- d) to provide fair conditions of competition in trade between the Parties;
- e) to contribute by the removal of barriers to trade, to the harmonious development and expansion of world trade.

ARTICLE 2 Classification of Goods

str. 21. Harmonized Commodity Description and Coding System (HS) shall be applied to the classification of goods. 2. For the commercial exchanges covered by this Agreement, the Parties shall apply their respective Customs Tariffs to the classification of goods for imports into their customs teritory.

CHAPTER I INDUSTRIAL PRODUCTS

ARTICLE 3 Scope

str. 2The provisions of this Chapter shall apply to products originating in the Parties falling within Chapters 25 to 97 of Harmonized Commodity Description and Coding System with the exception of the products listed in Annex I to this Agreement.

ARTICLE 4 Customs Duties on Imports and Charges Having Equivalent Effect

str. 21. From the date of entry into force of this Agreement no new customs duty on imports or charge having equivalent effect shall be introduced in trade between the Parties. 2. Customs duties and charges having equivalent effect on imports shall be abolished on the date of entry into force of this Agreement.

ARTICLE 5 Customs Duties of a Fiscal Nature

str. 2The provisions of Article 4 shall also apply to customs duties of a fiscal nature.

ARTICLE 6

Customs Duties on Exports and Charges Having Equivalent Effect

str. 21. From the date of entry into force of this Agreement no new customs duty on exports or charge having equivalent effect shall be introduced in trade between the Parties. 2. All customs duties on exports and charges having equivalent effect shall be abolished between the Parties on the date of entry into force of this Agreement.

ARTICLE 7

Quantitative Restrictions on Imports and Measures Having Equivalent Effect

str. 21. From the date of entry into force of this Agreement no new quantitative restriction on imports or measure having equivalent effect shall be introduced in trade between the Parties. 2. All quantitative restrictions on imports and measures having equivalent effect shall be abolished between the Parties on the date of entry into force of this Agreement.

ARTICLE 8

Quantitative Restrictions on Exports and Measures Having Equivalent Effect

str. 31. From the date of entry into force of this Agreement no new quantitative restriction on exports or measure having equivalent effect shall be introduced in trade between the Parties. 2. All quantitative restrictions on exports and measures having equivalent effect shall be abolished between the Parties on the date of entry into force of this Agreement.

ARTICLE 9

Technical Regulations

str. 31. The rights and obligations of the Parties relating to standards or technical regulations and related measures shall be governed by the WTO Agreement on Technical Barriers to Trade. 2. Each Party, upon request of the other Party, shall provide information on particular individual cases of standards, technical regulations and related measures. 3. The Parties shall endavour to reduce technical barriers to trade. To this end the Parties will enter where appropriate into negotiations for the conclusion of the agreements on the mutual recognition in the field of conformity assessment, in the spirit of the recommendations of the WTO Agreement on Technical Barriers to Trade.

CHAPTER II

AGRICULTURAL AND FISHERY PRODUCTS

ARTICLE 10 Scope

ARTICLE 11

Exchange of Concessions

str. 31. The Parties declare their readiness to foster, in so far as their agricultural policies allow, the harmonious development of trade in agricultural and fishery products and to discuss this issue periodically within the Joint Committee. 2. For the achievement of this objective, the Parties shall grant each other the concessions specified in Protocol I, providing measures to promote the trade in agricultural and fishery
3. products, in accordance with the provisions of this Chapter and those laid down in Protocol I.

str. 43. Taking into account the role of agriculture in their respective economies; the development of trade in agricultural and fishery products between the Parties; the high sensitivity of agricultural products; the rules of their respective agricultural policies, the Parties shall examine in the Joint Committee the possibilities of granting to each other further concessions in trade in agricultural and fishery products.

ARTICLE 12

Veterinary, Sanitary and Phytosanitary Measures

str. 4The Parties shall apply their regulations in veterinary, sanitary and phytosanitary matters in a non-discriminatory manner and shall not introduce any new measure unduly obstructing trade or creating an arbitrary or unjustifiable discrimination or a disguised restriction on trade between them. The Parties shall apply their veterinary, sanitary and phytosanitary measures in conformity with the provisions of the relevant WTO agreements.

ARTICLE 13 Specific Safeguards

str. 4Notwithstanding other provisions of this Agreement, and in particular Article 22, given the particular sensitivity of the agricultural and fishery products, if imports of products originating in the Party, which are the subject to concessions granted under this Agreement, cause serious disturbance to the markets of the other Party, both Parties shall enter into consultations immediately to find an appropriate solution. Pending such a solution, the Party concerned may take the measures it deems necessary.

CHAPTER III SERVICES AND INVESTMENTS

ARTICLE 14 Cooperation in the Field of Services and Investments

str. 41. The Parties recognize the growing importance of certain areas, such as services and investments. In their efforts to gradually develop and broaden their co-operation, in particular in the context of the European integration, they will co-operate with the aim of achieving a progressive liberalization and mutual opening of their markets for investments and trade in services, taking into account relevant provisions of the General Agreement on Trade in Services (GATS). 2. The Parties will discuss in the Joint Committee the possibilities of developing and deepening their relations in conformity with this Article.

CHAPTER IV GENERAL PROVISIONS

ARTICLE 15 Internal Taxation

str. 41. The Parties shall refrain from any measure or practice of an internal fiscal nature establishing, whether directly or indirectly, discrimination between the products of one Party and like products originating in the other Party.

str. 52. Products exported to the territories of the Parties may not benefit from repayment of internal taxes in excess of the amount of direct or indirect taxes imposed on them.

ARTICLE 16

Trade Relations Governed by Other Agreements

str. 51. This Agreement shall not prevent the maintenance or establishment of customs unions, free trade areas or arrangements for cross-border trade of the Parties with third countries to the extent that these do not negatively affect the trade regime and in particular the provisions concerning rules of origin provided for by this Agreement. 2. Exchange of information shall take place, upon request of either Party, within the Joint Committee concerning agreements establishing such customs unions or free trade areas.

ARTICLE 17 Structural Adjustment

str. 51. Exceptional measures of limited duration which derogate from the provisions of Article 4 may be taken by the Parties in the form of increased customs duties. 2. These measures may only concern infant industries, or certain sectors undergoing restructuring or facing serious difficulties, particularly where these difficulties produce important social problems. 3. Customs duties on imports applicable in the Party to products originating in the other Party introduced by these measures may not exceed 25 % ad valorem and shall maintain an element of preference for products originating in the other Party. The total value of imports of the products which are subject to these measures may not exceed 15 % of total imports of industrial products from the other Party as defined in Article 3, during the last year for which statistics are available. 4. These measures shall be applied for a period not exceeding five years unless a longer duration is authorized by the Joint Committee. 5. No such measures can be introduced in respect of a product if more than three years have elapsed since the elimination of all duties and quantitative restrictions or charges or measures having an equivalent effect concerning that product. 6. The Parties shall inform the Joint Committee of any exceptional measures they intend to take and, at the request of the Party, consultations shall be held in the Joint Committee on such measures and the sectors to which they apply before they are applied. When taking such measures the Parties shall provide the Joint Committee with a schedule for the elimination of the customs duties introduced under this Article. This schedule shall provide for a phasing out of these duties starting at the latest two years after their introduction, at equal annual rates. The Joint Committee may decide on a different schedule.

ARTICLE 18 Dumping

str. 6If a Party finds that dumping, within the meaning of Article VI of GATT 1994 is taking place in trade relations governed by this Agreement, it may take appropriate measures against that practice in accordance with Article VI of the GATT 1994 and the rules established by the WTO agreements related to that Article, under the conditions and in accordance with the procedures laid down in Article 22 of this Agreement.

ARTICLE 19

Emergency Action on Imports of Particular Products

str. 6Where any product is being imported in such increased quantities and under such conditions as to cause, or threaten to cause:

- a) serious injury to domestic producers of like or directly competitive products, or
- b) serious disturbances in any sector of the economy or difficulties which could bring about serious deterioration in the economic situation of a region ,

the Party concerned may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 22.

ARTICLE 20 Re-export and Serious Shortage

str. 6Where compliance with the provisions of Articles 6 and 8 leads to:

- a) re-export towards a third country against which the exporting Party maintains for the product concerned quantitative export restrictions, export duties or measures or charges having equivalent effect; or
- b) a serious shortage, or threat thereof, of a product essential to the exporting Party; and where the situations referred to above give rise or are likely to give rise to major difficulties for the exporting Party, that Party may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 22. The measures shall be nondiscriminatory and shall be eliminated when conditions no longer justify their maintenance.

ARTICLE 21 State Monopolies

str. 61. The Parties shall progressively adjust any state monopoly of a commercial character so as to ensure that by the end of the fourth year following the entry into force of this Agreement, no discrimination regarding the conditions under which goods are procured and marketed will exist between nationals of the Parties. 2. The Joint Committee shall be informed about the measures adopted to implement this objective.

ARTICLE 22 Procedure for the Application of Safeguard Measures

str. 61. Before initiating the procedure for the application of safeguard measures set out in this Article the Party shall inform the other Party. The Parties shall endeavor to solve any differences between them through direct consultations. 2. In cases specified in Articles 13, 18, 19, 20, 25, 26 and 34 a Party which is considering to resort to safeguard measures shall promptly notify the Joint Committee thereof. The Party concerned shall provide the Joint Committee with all relevant information and the assistance required to examine the case. Consultations between the Parties shall take place without delay in the Joint Committee with a view to finding a commonly acceptable solution.

str. 73. If, within one month of the matter being referred to the Joint Committee, the Party in question fails to put an end to the practice objected to or to the difficulties notified and in the absence of a decision by the Joint Committee on the matter, the concerned Party may adopt the safeguard measures it considers necessary to remedy the situation. 4. The safeguard measures taken shall be notified immediately to the Joint Committee. They shall be restricted, with regard to their extent and duration, to what is strictly necessary in order to rectify the situation giving rise to their application and shall not be in excess of the damage caused by the practice or the difficulty in question. Priority shall be given to such measures that will least disturb the functioning of this Agreement. 5. The safeguard measures taken shall be the subject to regular consultations within the Joint Committee with a view to their relaxation, or abolition when conditions no longer justify their maintenance. 6. Where exceptional circumstances requiring immediate action make prior examination impossible, the Party concerned may, in the cases of Articles 13, 18, 19, 20, 25, 26 and 34 apply forthwith the precautionary measures strictly necessary to remedy the situation. The measures shall be notified without delay to the Joint Committee and consultations between the Parties shall take place within the Joint Committee.

ARTICLE 23

Rules of Origin and Cooperation between the Customs Administrations

str. 71. Protocol II lays down the rules of origin and methods of administrative cooperation. 2. Protocol III determines the methods of assistance between the Parties in customs matters.

ARTICLE 24 Payments

str. 71. Any payment in freely convertible currency, arising from commercial exchanges covered by this Agreement and the transfers of such payments to the territory of the Party where creditor resides, shall be free from any restrictions. 2. The Parties shall refrain from any exchange or administrative restrictions on the grant, repayment or acceptance of short and medium-term credits, related to trade in goods in which a resident of a Party participates.

ARTICLE 25

Rules of Competition Concerning Undertakings

str. 71. The following are incompatible with the proper functioning of this Agreement in so far as they may affect trade between the Parties:
- a) all agreements between undertakings, decisions by associations of undertakings and concerted practices between undertakings which have as their object or effect the prevention, restriction or distortion of competition;
- b) abuse by one or more undertakings of a dominant position in the territory of a Party as a whole or in substantial part thereof. 2. The provisions of paragraph 1 shall apply to the activities of all undertakings including public undertakings and undertakings to which the Parties grant special or exclusive rights. Undertakings entrusted with the operation of services of general economic interest or
5.

str. 8having the character of a revenue-producing monopoly, shall be subject to provisions of paragraph 1 in so far as the application of these provisions does not obstruct the performance, in law or fact, of the particular public tasks assigned to them. 3. With regard to products referred to in Chapter II the provisions stipulated in paragraph 1 (a) shall not apply to such agreements, decisions and practices which form an integral part of a national market organization. 4. If a Party considers that a given practice is incompatible with paragraphs 1, 2 and 3 of this Article or if such practice causes or threatens to cause serious prejudice to the interest of that Party or material injury to its domestic industry, the Party concerned may take appropriate measures under the conditions and in accordance with the procedure laid down in Article 22.

ARTICLE 26 State Aid

str. 81. Any aid granted by a Party or through state resources in any form whatsoever which distorts or threatens to distort competition by favoring certain undertakings or the production of certain goods shall, in so far as it may affect trade between the Parties, be incompatible with the proper functioning of this Agreement. 2. The provisions of paragraph 1 shall not apply to products referred to in Chapter II. 3. The Parties shall ensure transparency in the area of state aid, in accordance with the provisions of the Agreement on Subsidies and Countervailing Measures and the WTO/GATT 1994 and either Party, upon request of the other Party, will provide information on aid schemes and on particular individual cases of state aid. 4. If a Party considers that a particular practice:
5. -is incompatible with the terms of paragraph 1, and
6. -causes or threatens to cause serious prejudice to the interest of that Party or material injury to its domestic industry,

it may take appropriate measures under the conditions and in accordance with the provisions laid down in Article 22. Such appropriate measures may only be taken in conformity with the procedures and under the conditions laid down in the General Agreement on Tariffs and Trade 1994 and by the Agreement establishing the World Trade Organization, in particular by the Agreement on Subsidies and Countervailing measures, and any other relevant instrument negotiated under their auspices which are applicable between the Parties.

ARTICLE 27

Balance of Payments Difficulties

str. 8Where either Party is in a serious balance of payments difficulties or under threat thereof, the Party concerned may in accordance with the conditions laid down within the framework of WTO/GATT 1994 and with Article VIII of the Articles of Agreement of International Monetary Fund, adopt restrictive measures, which shall be of limited duration and may not go beyond what is necessary to remedy the balance of payments situation. The Party concerned shall inform the other Party forthwith of their introduction and present to the other Party, as soon as possible, a time schedule of their removal. 1. The Parties shall provide suitable and effective protection of intellectual, industrial and commercial property rights in line with WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs) and other international Agreements . This shall encompass effective means of enforcing such rights. 2. Implementation of this Article shall be regularly assessed by the Parties. If difficulties which affect trade arise in connection with intellectual, industrial and commercial property rights, either Party may request urgent consultations to find mutually satisfactory solutions .

ARTICLE 29 Public Procurement

str. 91. The Parties consider the opening up of the award of public contracts on the basis of nondiscrimination and reciprocity, to be a desirable objective. 2. As of the entry into force of this Agreement, both Parties shall grant each other's companies access to contract award procedures a treatment no less favorable than that accorded to companies of any other country.

ARTICLE 30 Establishment of the Joint Committee

str. 91. A Joint Committee is hereby established in which the Parties shall be represented. The Joint Committee shall be responsible for the administration of this Agreement and shall ensure its proper implementation. 2. For the purpose of the proper implementation of this Agreement, the Parties shall exchange information and, at the request of either Party, shall hold consultations within the Joint Committee. The Joint Committee shall keep under review the possibility of further removal of the obstacles to trade between the Parties. 3. The Joint Committee may, in accordance with the provisions of paragraph 3 of Article 31, take decisions in cases provided for in this Agreement. On other matters the Joint Committee may make recommendations.

ARTICLE 31 Procedures of the Joint Committee

str. 91. For the proper implementation of this Agreement, the Joint Committee shall meet at an appropriate level whenever necessary upon request but at least once a year. Either Party may request a meeting be held. 2. The Joint Committee shall decide by concensus. 3. If a representative of a Party in the Joint Committee has accepted a decision subject to reservation of the fulfillment of constitutional requirements the decision shall enter into force, if no later date is contained therein, on the date of the receipt of the written notification stating that such requirements have been fulfilled . 4. The Joint Committee may decide to set up such sub-committees and working groups as it considers necessary to assist it in accomplishing its tasks.

ARTICLE 32 Security Exceptions

str. 10Nothing in this Agreement shall prevent the Parties from taking any measures which they consider necessary:

- a) to prevent the disclosure of information contrary to their essential security interests;
- b) for the protection of their essential security interests or for the implementation of international obligations or national policies:

i) relating to the traffic in arms, ammunition and implements of war and to such traffic in other goods, materials and services as is carried on directly or indirectly for the purpose of supplying a military establishment; or

- ii) relating to the non-proliferation of biological and chemical weapons, nuclear weapons or other nuclear explosive devices; or
- iii) in time of war or other serious international tension constituting threat of war.

ARTICLE 33 General Exceptions

str. 10This Agreement shall not preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security; the protection of health and life of humans, animals or plants; the protection of national treasures possessing artistic, historic or archaeological value; the protection of intellectual, industrial and commercial property. Such prohibitions or restrictions must not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between the Parties.

ARTICLE 34 Fulfillment of Obligations

str. 101. The Parties shall take all necessary measures to ensure the achievement of the objectives of this Agreement and the fulfillment of their obligations under this Agreement. 2. If either Party considers that the other Party has failed to fulfill an obligation under this Agreement, the Party concerned may take the appropriate measures under the conditions and in accordance with the procedures laid down in Article 22 of this Agreement.

ARTICLE 35 Evolutionary Clause

str. 101. Where either Party considers that it would be useful and in the interest of the economies of the Parties to develop the relations established by this Agreement by extending them to fields not covered thereby, it shall submit a reasoned request to the other Party. The Parties may instruct the Joint Committee to examine this request and, where appropriate, to make recommendations to them, particularly with a view to opening negotiations. 2. Agreements resulting from the procedure referred to in paragraph 1 shall be subject to ratification or approval by the Parties to this Agreement in accordance with their national legislation. ARTICLE 36 Amendments

str. 11Amendments to this Agreement, as well as to its Annexes and Protocols, shall enter into force on the first day of the second month following the receipt of the later written notification through diplomatic channels, by which the Parties inform each other that all necessary requirements foreseen by their national legislation for the entry into force of this Agreement, have been fulfilled.

ARTICLE 37 Protocols and Annexes

str. 11Protocols and Annexes to this Agreement shall form an integral part thereof. The Joint Committee may decide to amend the Protocols and Annexes in accordance with the national legislation of the Parties.

ARTICLE 38 Duration and Termination

str. 111. This Agreement is concluded for an indefinite period of time. 2. Either party may denounce this Agreement by a written notification to the other Party. The denunciation shall take effect on the first day of the seventh month following the date on which the other Party received the denunciation notice. 3. The Parties agree that in case of accession of either Party to the European Union, the Agreement shall be terminated without compensation to the other Party.

ARTICLE 39

Entry into Force

str. 11This Agreement shall enter into force on the first day of the second month, following the date of the receipt of the later written notification through diplomatic channels, by which the Parties inform each other that all necessary requirements foreseen by their national legislation for the entry into force of this Agreement, have been fulfilled. DONE at Zagreb this 28 day of october 2002, in two originals each in the Croatian, Lithuanian, and English languages, all texts being equally authentic. In case of any divergence in the interpretation of this Agreement, the English text shall prevail. For the Republic of Croatia

For the Republic of Lithuania

ANNEX I

(List of products referred to in Article 3 and Article 10)

PROTOCOL I

str. 13(referred to in paragraph 2 of Article 11)

EXCHANGE OF AGRICULTURAL CONCESSIONS

Article 1

str. 13The products originating in the Republic of Croatia listed in Annex 1 to this Protocol shall be imported into the Republic of Lithuania according to the conditions stated in that Annex.

Article 2

str. 13The products originating in the Republic of Lithuania listed in Annex 2 to this Protocol shall be imported into the Republic of Croatia according to the conditions stated in that Annex. For each product the customs duties to which reductions set out in this Protocol are applied shall be the Most Favoured Nation (MFN) duties that were in force on the date of entry into force of this Agreement.

Article 4

str. 13If after entry into force of this Agreement, any tariff reduction is applied on an erga omnes basis, in particular reductions resulting from the tariff negotiations in the WTO, such reduced duties shall replace the duties referred to in Article 3 as from the date when such reductions are applied.

ANNEX 1 TO PROTOCOL I

ANNEX 2 TO PROTOCOL I

TABLE OF CONTENTS

str. 15TITLE I

GENERAL PROVISIONS

Article 1

Definitions

GENERAL PROVISIONS

DEFINITION OF THE CONCEPT OF "ORIGINATING PRODUCTS"

Article 2

General requirements

str. 161. For the purpose of implementing this Agreement, the following products shall be considered as originating in Croatia:
2. (a) products wholly obtained in Croatia within the meaning of Article 5;
3. (b) products obtained in Croatia incorporating materials which have not been wholly obtained there, provided that such materials have undergone sufficient working or processing in Croatia within the meaning of Article 6;
2. For the purpose of implementing this Agreement, the following products shall be considered as originating in Lithuania:
5. (a) products wholly obtained in Lithuania within the meaning of Article 5;
6. (b) products obtained in Lithuania incorporating materials which have not been wholly obtained there, provided that such materials have undergone sufficient working or processing in Lithuania within the meaning of Article 6. Article 3

Cumulation in Croatia

str. 171. Without prejudice to the provisions of Article 2 (1), products shall be considered as originating in Croatia if such products are obtained there, incorporating materials originating in Lithuania, Bulgaria, Switzerland (including Liechtenstein) 1 , the Czech Republic, Estonia, Hungary, Iceland, Croatia, Latvia, Norway, Poland, Romania, Slovenia, the Slovak Republic, Turkey or in the European Community in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between Croatia and each of these countries, provided that the working or processing carried out in Croatia goes beyond the operations referred to in Article 7. It shall not be necessary that such materials have undergone sufficient working or processing. 2. Where the working or processing carried out in Croatia does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in Croatia only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in Croatia. 3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in Croatia, retain their origin if exported into Lithuania. 4. The cumulation provided for in this Article may only be applied to materials and products, which have acquired originating status by the application of rules of origin identical to those given in this Protocol. Croatia shall provide Lithuania with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1.

Article 4 Cumulation in Lithuania

str. 171. Without prejudice to the provisions of Article 2(2), products shall be considered as originating in Lithuania if such products are obtained there, incorporating materials originating in Croatia, Bulgaria, Switzerland (including Liechtenstein) 1 , the Czech Republic, Estonia, Hungary, Iceland, Lithuania, Latvia, Norway, Poland, Romania, Slovenia, the Slovak Republic, Turkey or in the European Community in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between Lithuania and each of these countries, provided that the working or processing carried out in Lithuania goes beyond the operations referred to in Article 7. It shall not be necessary that such materials have undergone sufficient working or processing. 2. Where the working or processing carried out in Lithuania does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in Lithuania only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the

1 The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area. 1 The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area. product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in Lithuania.

str. 173. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in Lithuania, retain their origin if exported into Croatia. 4. The cumulation provided for in this Article may only be applied to materials and products, which have acquired originating status by the application of rules of origin identical to those given in this Protocol. Lithuania shall provide Croatia with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1.

Article 5

Wholly obtained products

str. 171. The following shall be considered as wholly obtained in Croatia or in Lithuania:
2. (a) mineral products extracted from their soil or from their seabed;
3. (b) vegetable products harvested there;
4. (c) live animals born and raised there;
5. (d) products from live animals raised there;
6. (e) products obtained by hunting or fishing conducted there;
7. (f) products of sea fishing and other products taken from the sea outside the territorial waters of Croatia or of Lithuania by their vessels;
8. (g) products made aboard their factory ships exclusively from products referred to in (f);
9. (h) used articles collected there fit only for the recovery of raw materials, including used tyres fit only for retreading or for use as waste;
10. (i) waste and scrap resulting from manufacturing operations conducted there;
11. (j) products extracted from marine soil or subsoil outside their territorial waters provided that they have sole rights to work that soil or subsoil;
12.

str. 18(k) goods produced there exclusively from the products specified in (a) to (j). 2. The terms "their vessels" and "their factory ships" in paragraph 1(f) and (g) shall apply only to vessels and factory ships:
14. (a) which are registered or recorded in Croatia or in Lithuania;
15. (b) which sail under the flag of Croatia or of Lithuania;
16. (c) which are owned to an extent of at least 50 per cent by nationals of Croatia or of Lithuania, or by a company with its head office in one of these States, of which the manager or managers, Chairman of the Board of Directors or the Supervisory Board, and the majority of the members of such boards are nationals of Croatia or of Lithuania and of which, in addition, in the case of partnerships or limited companies, at least half the capital belongs to those States or to public bodies or nationals of the said States;

- (d) of which the master and officers are nationals of Croatia or of Lithuania;

and

- (e) of which at least 75 per cent of the crew are nationals of Croatia or of Lithuania.

Article 6

Sufficiently worked or processed products

str. 181. For the purposes of Article 2, products, which are not wholly obtained are considered to be sufficiently worked or processed when the conditions set out in the list in Annex II are fulfilled. The conditions referred to above indicate, for all products covered by the Agreement, the working or processing, which must be carried out on non-originating materials used in manufacturing and apply only in relation to such materials.

str. 19It follows that if a product which has acquired originating status by fulfilling the conditions set out in the list is used in the manufacture of another product, the conditions applicable to the product in which it is incorporated do not apply to it, and no account shall be taken of the non-originating materials which may have been used in its manufacture. 2. Notwithstanding paragraph 1, non-originating materials which, according to the conditions set out in the list, should not be used in the manufacture of a product may nevertheless be used, provided that:

- (a) their total value does not exceed 10 per cent of the ex-works price of the product;
- (b) any of the percentages given in the list for the maximum value of non-originating materials are not exceeded through the application of this paragraph. This paragraph shall not apply to products falling within Chapters 50 to 63 of the Harmonized System. 3. Paragraphs 1 and 2 shall apply subject to the provisions of Article 7.

Article 7

Insufficient working or processing

str. 20Without prejudice to paragraph 2, the following operations shall be considered as insufficient working or processing to confer the status of originating products, whether or not the requirements of Article 6 are satisfied:

- (a) preserving operations to ensure that the products remain in good condition during transport and storage;
- (b) breaking-up and assembly of packages;
- (c) washing, cleaning; removal of dust, oxide, oil, paint or other coverings;
- (d) ironing or pressing of textiles;
- (e) simple painting and polishing operations;
- (f) husking, partial or total bleaching, polishing, and glazing of cereals and rice;

(g) operations to colour sugar or form sugar lumps; - (h) peeling, stoning and shelling, of fruits, nuts and vegetables;
- (i) sharpening, simple grinding or simple cutting;
- (j) sifting, screening, sorting, classifying, grading, matching; (including the making-up of sets of articles);
- (k) simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations;
- (l) affixing or printing marks, labels, logos and other like distinguishing signs on products or their packaging;
- (m) simple mixing of products, whether or not of different kinds,
- (n) simple assembly of parts of articles to constitute a complete article or disassembly of products into parts;
- (o) a combination of two or more operations specified in (a) to (n);
- (p) slaughter of animals. 2. All operations carried out either in Croatia or in Lithuania on a given product shall be considered together when determining whether the working or processing undergone by that product is to be regarded as insufficient within the meaning of paragraph 1.

Article 8

Unit of qualification

str. 201. The unit of qualification for the application of the provisions of this Protocol shall be the particular product, which is considered as the basic unit when determining classification using the nomenclature of the Harmonized System. It follows that:

- (a) when a product composed of a group or assembly of articles is classified under the terms of the Harmonized System in a single heading, the whole constitutes the unit of qualification;
- (b) when a consignment consists of a number of identical products classified under the same heading of the Harmonized System, each product must be taken individually when applying the provisions of this Protocol. 2. Where, under General Rule 5 of the Harmonized System, packaging is included with the product for classification purposes, it shall be included for the purposes of determining origin.

Article 9

Accessories, spare parts and tools

str. 20Accessories, spare parts and tools dispatched with a piece of equipment, machine, apparatus or vehicle, which are part of the normal equipment and included in the price thereof or which are not separately invoiced, shall be regarded as one with the piece of equipment, machine, apparatus or vehicle in question.

Article 10

Sets

str. 20Sets, as defined in General Rule 3 of the Harmonized System, shall be regarded as originating when all component products are originating.

str. 21Nevertheless, when a set is composed of originating and non-originating products, the set as a whole shall be regarded as originating, provided that the value of the non-originating products does not exceed 15 per cent of the exworks price of the set.

Article 11

Neutral elements

str. 21In order to determine whether a product originates, it shall not be necessary to determine the origin of the following, which might be used in its manufacture:

- (a) energy and fuel;
- (b) plant and equipment;
- (c) machines and tools;
- (d) goods which do not enter and which are not intended to enter into the final composition of the product.

TERRITORIAL REQUIREMENTS

Article 12

Principle of territoriality

str. 211. Except as provided for in Articles 3 and 4 and paragraph 3 of this Article, the conditions for acquiring originating status set out in Title II must be fulfilled without interruption in Croatia or in Lithuania. 2. Except as provided for in Articles 3 and 4, where originating goods exported from Croatia or from Lithuania to another country return, they must be considered as non-originating, unless it can be demonstrated to the satisfaction of the customs authorities that:

- (a) the returning goods are the same as those exported;

and

- (b) they have not undergone any operation beyond that necessary to preserve them in good condition while in that country or while being exported. 3. The acquisition of originating status in accordance with the conditions set out in Title II shall not be affected by working or processing done outside Croatia or Lithuania on materials exported from Croatia or from Lithuania and subsequently re-imported there, provided:

- (a) the said materials are wholly obtained in Croatia or in Lithuania or have undergone working or processing beyond the operations referred to in Article 7 prior to being exported;

and

(b) it can be demonstrated to the satisfaction of the customs authorities that:

i) the re-imported goods have been obtained by working or processing the exported materials; ii)the total added value acquired outside Croatia or Lithuania by applying the provisions of this Article does not exceed 10 per cent of the ex-works price of the end product for which originating status is claimed. 4. For the purposes of paragraph 3, the conditions for acquiring originating status set out in Title II shall not apply to working or processing done outside Croatia or Lithuania

and

str. 22. But where, in the list in Annex II, a rule setting a maximum value for all the non-originating materials incorporated is applied in determining the originating status of the end product, the total value of the non-originating materials incorporated in the territory of the party concerned, taken together with the total added value acquired outside Croatia or Lithuania by applying the provisions of this Article, shall not exceed the stated percentage. 5. For the purposes of applying the provisions of paragraphs 3 and 4, 'total added value' shall be taken to mean all costs arising outside Croatia or Lithuania, including the value of the materials incorporated there. 6. The provisions of paragraphs 3 and 4 shall not apply to products which do not fulfil the conditions set out in the list in Annex II or which can be considered sufficiently worked or processed only if the general tolerance fixed in Article 6(2) is applied. 7. The provisions of paragraphs 3 and 4 shall not apply to products of Chapters 50 to 63 of the Harmonized System

8. Any working or processing of the kind covered by the provisions of this Article and done outside Croatia or Lithuania shall be done under the outward processing arrangements, or similar arrangements.

Article 13

Direct transport

str. 221. The preferential treatment provided for under the Agreement applies only to products, satisfying the requirements of this Protocol, which are transported directly between Croatia and Lithuania or through the territories of the other countries referred to in Articles 3 and 4. However, products constituting one single consignment may be transported through other territories with, should the occasion arise, trans-shipment or temporary warehousing in such territories, provided that they remain under the surveillance of the customs authorities in the country of transit or warehousing and do not undergo operations other than unloading, reloading or any operation designed to preserve them in good condition. Originating products may be transported by pipeline across territory other than that of Croatia or Lithuania. 2.

str. 23Evidence that the conditions set out in paragraph 1 have been fulfilled shall be supplied to the customs authorities of the importing country by the production of:

(a) a single transport document covering the passage from the exporting country through the country of transit; or - (b) a certificate issued by the customs authorities of the country of transit:
- (i) giving an exact description of the products;
- (ii) stating the dates of unloading and reloading of the products and, where applicable, the names of the ships, or the other means of transport used;

and

- (iii) certifying the conditions under which the products remained in the transit country; or
- (c) failing these, any substantiating documents.

Article 14

Exhibitions

str. 231. Originating products, sent for exhibition in a country other than Croatia and Lithuania and sold after the exhibition for importation in Croatia or in Lithuania shall benefit on importation from the provisions of the Agreement provided it is shown to the satisfaction of the customs authorities that:
2. (a) an exporter has consigned these products from Croatia or from Lithuania to the country in which the exhibition is held and has exhibited them there;
3. (b) the products have been sold or otherwise disposed of by that exporter to a person in Croatia or in Lithuania;
4. (c) the products have been consigned during the exhibition or immediately thereafter in the state in which they were sent for exhibition;

and

- (d) the products have not, since they were consigned for exhibition, been used for any purpose other than demonstration at the exhibition. 2. A proof of origin must be issued or made out in accordance with the provisions of Title V and submitted to the customs authorities of the importing country in the normal manner. The name and address of the exhibition must be indicated thereon. Where necessary, additional documentary evidence of the conditions under which they have been exhibited may be required. 3. Paragraph 1 shall apply to any trade, industrial, agricultural or crafts exhibition, fair or similar public show or display which is not organised for private purposes in shops or business premises with a view to the sale of foreign products, and during which the products remain under customs control.

DRAWBACK OR EXEMPTION

Article 15

Prohibition of drawback of, or exemption from, customs duties

str. 231. 1. Non-originating materials used in the manufacture of products originating in Croatia or in Lithuania for which a proof of origin is issued or made out in accordance with the provisions of Title V shall not be subject in Croatia or in Lithuania to drawback of, or exemption from, customs duties of whatever kind. 2. The prohibition in paragraph 1 shall apply to any arrangement for refund, remission or non-payment, partial or complete, of customs duties or charges having an equivalent effect, applicable in Croatia or in Lithuania to materials used in the manufacture, where such refund, remission or non-payment applies, expressly or in effect, when products obtained from the said materials are exported and not when they are retained for home use there. 3. The exporter of products covered by a proof of origin shall be prepared to submit at any time, upon request from the customs authorities, all appropriate documents proving that no drawback has been obtained in respect of the non-originating materials used in the manufacture of the products concerned and that all customs duties or charges having equivalent effect applicable to such materials have actually been paid. 4. The provisions of paragraphs 1 to 3 shall also apply in respect of packaging within the meaning of Article 8(2), accessories, spare parts and tools within the meaning of Article 9 and products in a set within the meaning of Article 10 when such items are non-originating. 5. The provisions of paragraphs 1 to 4 shall apply only in respect of materials, which are of the kind to which the Agreement applies. Furthermore, they shall not preclude the application of an export refund system for agricultural products, applicable upon export in accordance with the provisions of the Agreement.

Article 16

General requirements

str. 241. Products originating in Croatia shall, on importation into Lithuania and products originating in Lithuania shall, on importation into Croatia benefit from the Agreement upon submission of either:
2. (a) a movement certificate EUR.1, a specimen of which appears in Annex III; or
3. (b) in the cases specified in Article 21(1), a declaration, subsequently referred to as the "invoice declaration", given by the exporter on an invoice, a delivery note or any other commercial document which describes the products concerned in sufficient detail to enable them to be identified; the text of the invoice declaration appears in Annex IV. 2. Notwithstanding paragraph 1, originating products within the meaning of this Protocol shall, in the cases specified in Article 26, benefit from the Agreement without it being necessary to submit any of the documents referred to above.

Article 17

Procedure for the issue of a movement certificate EUR.1

str. 241. A movement certificate EUR.1 shall be issued by the customs authorities of the exporting country on application having been made in writing by the exporter or, under the exporter's responsibility, by his authorised representative. 2. For this purpose, the exporter or his authorised representative shall fill out both the movement certificate EUR.1 and the application form, specimens of which appear in Annex III. These forms shall be completed in one of the languages in which this Agreement is drawn up and in accordance with the provisions of the domestic law of the exporting country. If they are

hand-written, they shall be completed in ink in printed characters. The description of the products must be given in the box reserved for this purpose without leaving any blank lines. Where the box is not completely filled, a horizontal line must be drawn below the last line of the description, the empty space being crossed through. 3. The exporter applying for the issue of a movement certificate EUR.1 shall be prepared to submit at any time, at the request of the customs authorities of the exporting country where the movement certificate EUR.1 is issued, all appropriate documents proving the originating status of the products concerned as well as the fulfilment of the other requirements of this Protocol. 4. A movement certificate EUR.1 shall be issued by the customs authorities of Croatia or of Lithuania if the products concerned can be considered as products originating in Croatia, in Lithuania or in one of the other countries referred to in Articles 3 and 4 and fulfil the other requirements of this Protocol. 'Remarks' box of the movement ceritificate EUR.1 issued in the cases set out in Articles 3 and 4 shall contain the remark:

'....................... cumulation'

(name of country(ies))

5. The customs authorities issuing movement certificates EUR.1 shall take any steps necessary to verify the originating status of the products and the fulfilment of the other requirements of this Protocol. For this purpose, they shall have the right to call for any evidence and to carry out any inspection of the exporter's accounts or any other check considered appropriate. They shall also ensure that the forms referred to in paragraph 2 are duly completed. In particular, they shall check whether the space reserved for the description of the products has been completed in such a manner as to exclude all possibility of fraudulent additions. 6. The date of issue of the movement certificate EUR.1 shall be indicated in Box 11 of the certificate. 7. A movement certificate EUR.1 shall be issued by the customs authorities and made available to the exporter as soon as actual exportation has been effected or ensured.

Article 18

Movement certificates EUR.1 issued retrospectively

str. 251. Notwithstanding Article 17(7), a movement certificate EUR.1 may exceptionally be issued after exportation of the products to which it relates if:
2.

str. 26(a) it was not issued at the time of exportation because of errors or involuntary omissions or special circumstances;

or

- (b) it is demonstrated to the satisfaction of the customs authorities that a movement certificate EUR.1 was issued but was not accepted at importation for technical reasons. 2. For the implementation of paragraph 1, the exporter must indicate in his application the place and date of exportation of the products to which the movement certificate EUR.1 relates, and state the reasons for his request. 3. The customs authorities may issue a movement certificate EUR.1 retrospectively only after verifying that the information supplied in the exporter's application agrees with that in the corresponding file. 4. Movement certificates EUR.1 issued retrospectively must be endorsed with one of the following phrases:
5. The endorsement referred to in paragraph 4 shall be inserted in the "Remarks" box of the movement certificate EUR.1. EN

"ISSUED RETROSPECTIVELY"

LT

"IŠDUOTAS PO EKSPORTAVIMO"

HR

'NAKNADNO IZDANO'

Article 19

Issue of a duplicate movement certificate EUR.1

Article 20

Issue of movement certificates EUR.1 on the basis of a proof of origin issued or made out previously

str. 26When originating products are placed under the control of a customs office in Croatia or in Lithuania, it shall be possible to replace the original proof of origin by one or more movement certificates EUR.1 for the purpose of sending all or some of these products elsewhere within Croatia or Lithuania. The replacement movement certificate(s) EUR.1 shall be issued by the customs office under whose control the products are placed.

Article 20a

Accounting segregation

str. 261. Where considerable cost or material difficulties arise in keeping separate stocks of originating and non-originating materials, which are identical and interchangeable, the

customs authorities may, at the written request of those concerned, authorise the so-called "accounting segregation" method to be used for managing such stocks.

str. 272. This method must be able to ensure that, for a specific reference-period, the number of products obtained which could be considered as "originating" is the same as that which would have been obtained if there had been physical segregation of the stocks. 3. The customs authorities may grant such authorisation, subject to any conditions deemed appropriate. 4. This method is recorded and applied on the basis of the general accounting principles applicable in the country where the product was manufactured. 5. The beneficiary of this facilitation may issue or apply for proofs of origin, as the case may be, for the quantity of products, which may be considered as originating. At the request of the customs authorities, the beneficiary shall provide a statement of how the quantities have been managed. 6. The customs authorities shall monitor the use made of the authorisation and may withdraw it at any time whenever the beneficiary makes improper use of the authorisation in any manner whatsoever or fails to fulfil any of the other conditions laid down in this Protocol.

Article 21

Conditions for making out an invoice declaration

str. 271. An invoice declaration as referred to in Article 16(1)(b) may be made out:
2. (a) by an approved exporter within the meaning of Article 22,

or

- (b) by any exporter for any consignment consisting of one or more packages containing originating products whose total value does not exceed EUR 6,000. 2. An invoice declaration may be made out if the products concerned can be considered as products originating in Croatia, in Lithuania or in one of the other countries referred to in Articles 3 and 4 and fulfil the other requirements of this Protocol. 3. The exporter making out an invoice declaration shall be prepared to submit at any time, at the request of the customs authorities of the exporting country, all appropriate documents proving the originating status of the products concerned as well as the fulfilment of the other requirements of this Protocol. 4. An invoice declaration shall be made out by the exporter by typing, stamping or printing on the invoice, the delivery note or another commercial document, the declaration, the text of which appears in Annex IV, using one of the linguistic versions set out in that Annex and in accordance with the provisions of the domestic law of the exporting country. If the declaration is hand-written, it shall be written in ink in printed characters. 5. Invoice declarations shall bear the original signature of the exporter in manuscript. However, an approved exporter within the meaning of Article 22 shall not be required to sign such declarations provided that he gives the customs authorities of the exporting country a written undertaking that he accepts full responsibility for any invoice declaration, which identifies him as if it had been signed in manuscript by him. 6. An invoice declaration may be made out by the exporter when the products to which it relates are exported, or after exportation on condition that it is presented in the importing country no longer than two years after the importation of the products to which it relates.

Article 22

Approved exporter

str. 281. The customs authorities of the exporting country may authorise any exporter, hereinafter referred to as 'approved exporter', who makes frequent shipments of products under this Agreement to make out invoice declarations irrespective of the value of the products concerned. An exporter seeking such authorisation must offer to the satisfaction of the customs authorities all guarantees necessary to verify the originating status of the products as well as the fulfilment of the other requirements of this Protocol. 2. The customs authorities may grant the status of approved exporter subject to any conditions, which they consider appropriate. 3. The customs authorities shall grant to the approved exporter a customs authorisation number, which shall appear on the invoice declaration. 4. The customs authorities shall monitor the use of the authorisation by the approved exporter. 5. The customs authorities may withdraw the authorisation at any time. They shall do so where the approved exporter no longer offers the guarantees referred to in paragraph 1, no longer fulfils the conditions referred to in paragraph 2 or otherwise makes an incorrect use of the authorisation.

Article 23

Validity of proof of origin

str. 281. A proof of origin shall be valid for four months from the date of issue in the exporting country, and must be submitted within the said period to the customs authorities of the importing country. 2. Proofs of origin which are submitted to the customs authorities of the importing country after the final date for presentation specified in paragraph 1 may be accepted for the purpose of applying preferential treatment, where the failure to submit these documents by the final date set is due to exceptional circumstances. 3. In other cases of belated presentation, the customs authorities of the importing country may accept the proofs of origin where the products have been submitted before the said final date.

Article 24

Submission of proof of origin

str. 28Proofs of origin shall be submitted to the customs authorities of the importing country in accordance with the procedures applicable in that country. The said authorities may require a translation of a proof of origin and may also require the import declaration to be accompanied by a statement from the importer to the effect that the products meet the conditions required for the implementation of the Agreement.

Article 25

Importation by instalments

str. 29Where, at the request of the importer and on the conditions laid down by the customs authorities of the importing country, dismantled or non-assembled products within the meaning of General Rule 2(a) of the Harmonized System falling within Sections XVI and XVII or headings 7308 and 9406 of the Harmonized System are imported by instalments, a single proof of origin for such products shall be submitted to the customs authorities upon importation of the first instalment.

Article 26

Exemptions from proof of origin

str. 291. Products sent as small packages from private persons to private persons or forming part of travellers' personal luggage shall be admitted as originating products without requiring the submission of a proof of origin, provided that such products are not imported by way of trade and have been declared as meeting the requirements of this Protocol and where there is no doubt as to the veracity of such a declaration. In the case of products sent by post, this declaration can be made on the customs declaration CN22/CN23 or on a sheet of paper annexed to that document. 2. Imports which are occasional and consist solely of products for the personal use of the recipients or travellers or their families shall not be considered as imports by way of trade if it is evident from the nature and quantity of the products that no commercial purpose is in view. 3. Furthermore, the total value of these products shall not exceed EUR 500 in the case of small packages or EUR 1,200 in the case of products forming part of travellers' personal luggage.

Article 27

Supporting documents

str. 29The documents referred to in Articles 17(3) and 21(3) used for the purpose of proving that products covered by a movement certificate EUR.1 or an invoice declaration can be considered as products originating in Croatia, in Lithuania or in one of the other countries referred to in Articles 3 and 4 and fulfil the other requirements of this Protocol may consist inter alia of the following:

- (a) direct evidence of the processes carried out by the exporter or supplier to obtain the goods concerned, contained for example in his accounts or internal book-keeping;
- (b) documents proving the originating status of materials used, issued or made out in Croatia or in Lithuania where these documents are used in accordance with domestic law;
- (c) documents proving the working or processing of materials in Croatia or in Lithuania, issued or made out in Croatia or in Lithuania, where these documents are used in accordance with domestic law;
- (d) movement certificates EUR.1 or invoice declarations proving the originating status of materials used, issued or made out in Croatia or in Lithuania in accordance with this Protocol, or in one of the other countries referred to in Articles 3 and 4, in accordance with rules of origin which are identical to the rules in this Protocol.

Article 28

Preservation of proof of origin and supporting documents

str. 291. The exporter applying for the issue of a movement certificate EUR.1 shall keep for at least three years the documents referred to in Article 17(3). 2. The exporter making out an invoice declaration shall keep for at least three years a copy of this invoice declaration as well as the documents referred to in Article 21(3).

str. 303. The customs authorities of the exporting country issuing a movement certificate EUR.1 shall keep for at least three years the application form referred to in Article 17(2). 4. The customs authorities of the importing country shall keep for at least three years the movement certificates EUR.1 and the invoice declarations submitted to them.

Article 29

Discrepancies and formal errors

str. 301. The discovery of slight discrepancies between the statements made in the proof of origin and those made in the documents submitted to the customs office for the purpose of carrying out the formalities for importing the products shall not ipso facto render the proof of origin null and void if it is duly established that this document does correspond to the products submitted. 2. Obvious formal errors such as typing errors on a proof of origin should not cause this document to be rejected if these errors are not such as to create doubts concerning the correctness of the statements made in this document.

Article 30

Amounts expressed in euro

str. 301. For the application of the provisions of Article 21(1)(b) and Article 26(3) in cases where products are invoiced in a currency other than euro, amounts in the national currencies of Croatia or Lithuania equivalent to the amounts expressed in euro shall be fixed annually by each of the countries concerned. 2. A consignment shall benefit from the provisions of Article 21(1)(b) or Article 26(3) by reference to the currency in which the invoice is drawn up, according to the amount fixed by the country concerned. 3. The amounts to be used in any given national currency shall be the equivalent in that currency of the amounts expressed in euro as at the first working day of October. The amounts shall be communicated by 15 October and shall apply from 1 January the following year. 4. A country may round up or down the amount resulting from the conversion into its national currency of an amount expressed in euro. The rounded-off amount may not differ from the amount resulting from the conversion by more than 5 per cent. A country may retain unchanged its national currency equivalent of an amount expressed in euro if, at the time of the annual adjustment provided for in paragraph 3, the conversion of that amount, prior to any roundingoff, results in an increase of less than 15 per cent in the national currency equivalent. The national currency equivalent may be retained unchanged if the conversion would result in a decrease in that equivalent value. 5. The amounts expressed in euro shall be reviewed by the Joint Committee at the request of Croatia or of Lithuania. When carrying out this review, the Joint Committee shall consider the desirability of preserving the effects of the limits concerned in real terms. For this purpose, it may decide to modify the amounts expressed in euro.

ARRANGEMENTS FOR ADMINISTRATIVE CO-OPERATION

Article 31

Mutual assistance

str. 31The customs authorities of Croatia and of Lithuania shall provide each other with specimen impressions of stamps used in their customs offices for the issue of movement certificates EUR.1 and with the addresses of the customs authorities responsible for verifying those certificates and invoice declarations. 2. In order to ensure the proper application of this Protocol, Croatia and Lithuania shall assist each other, through the competent customs administrations, in checking the authenticity of the movement certificates EUR.1 or the invoice declarations and the correctness of the information given in these documents.

Article 32

Verification of proofs of origin

str. 311. Subsequent verifications of proofs of origin shall be carried out at random or whenever the customs authorities of the importing country have reasonable doubts as to the authenticity of such documents, the originating status of the products concerned or the fulfilment of the other requirements of this Protocol. 2. For the purposes of implementing the provisions of paragraph 1, the customs authorities of the importing country shall return the movement certificate EUR.1 and the invoice, if it has been submitted, the invoice declaration, or a copy of these documents, to the customs authorities of the exporting country giving, where appropriate, the reasons for the enquiry. Any documents and information obtained suggesting that the information given on the proof of origin is incorrect shall be forwarded in support of the request for verification. 3. The verification shall be carried out by the customs authorities of the exporting country. For this purpose, they shall have the right to call for any evidence and to carry out any inspection of the exporter's accounts or any other check considered appropriate. 4. If the customs authorities of the importing country decide to suspend the granting of preferential treatment to the products concerned while awaiting the results of the verification, release of the products shall be offered to the importer subject to any precautionary measures judged necessary. 5. The customs authorities requesting the verification shall be informed of the results of this verification as soon as possible. These results must indicate clearly whether the documents are authentic and whether the products concerned can be considered as products originating in Croatia, in Lithuania or in one of the other countries referred to in Articles 3 and 4 and fulfil the other requirements of this Protocol. 6. If in cases of reasonable doubt there is no reply within ten months of the date of the verification request or if the reply does not contain sufficient information to determine the authenticity of the document in question or the real origin of the products, the requesting customs authorities shall, except in exceptional circumstances, refuse entitlement to the preferences.

Article 33

Dispute settlement

str. 31Where disputes arise in relation to the verification procedures of Article 32, which cannot be settled between the customs authorities requesting verification and the customs authorities responsible for carrying out this verification or where they raise a question as to the interpretation of this Protocol, they shall be submitted to the Joint Committee.

str. 32In all cases the settlement of disputes between the importer and the customs authorities of the importing country shall be under the legislation of the said country.

Note 1:

str. 32The list sets out the conditions required for all products to be considered as sufficiently worked or processed within the meaning of Article 6 of the Protocol.

Note 2:

str. 32- 2.1. The first two columns in the list describe the product obtained. The first column gives the heading number or chapter number used in the Harmonized System and the second column gives the description of goods used in that system for that heading or chapter. For each entry in the first two columns, a rule is specified in column 3 or 4. Where, in some cases, the entry in the first column is preceded by an "ex", this signifies that the rules in column 3 or 4 apply only to the part of that heading as described in column 2. - 2.2. Where several heading numbers are grouped together in column 1 or a chapter number is given and the description of products in column 2 is therefore given in general terms, the adjacent rules in column 3 or 4 apply to all products which, under the Harmonized

Penalties

str. 32Penalties shall be imposed on any person who draws up, or causes to be drawn up, a document, which contains incorrect information for the purpose of obtaining a preferential treatment for products.

Article 35

Free zones

str. 321. Croatia and Lithuania shall take all necessary steps to ensure that products traded under cover of a proof of origin which in the course of transport use a free zone situated in their territory, are not substituted by other goods and do not undergo handling other than normal operations designed to prevent their deterioration. 2. By means of an exemption to the provisions contained in paragraph 1, when products originating in Croatia or in Lithuania are imported into a free zone under cover of a proof of origin and undergo treatment or processing, the authorities concerned shall issue a new movement certificate EUR.1 at the exporter's request, if the treatment or processing undergone is in conformity with the provisions of this Protocol.

FINAL PROVISIONS

Article 36

Annexes

Article 37

Goods in transit or storage

str. 32The provisions of the Agreement may be applied to goods which comply with the provisions of this Protocol and which on the date of entry into force of the Agreement are either in the transit or are in Croatia or in Lithuania in temporary storage in bonded warehouses or in free zones, subject to the submission to the customs authorities on importation into Croatia or Lithuania, within four months of that date, of the proof of origin issued retrospectively together with the documents showing that the goods have been transported directly.

ANNEX I

INTRODUCTORY NOTES TO THE LİST İN ANNEX II

str. 32System, are classified in headings of the chapter or in any of the headings grouped together in column 1. - 2.3. Where there are different rules in the list applying to different products within a heading, each indent contains the description of that part of the heading covered by the adjacent rules in column 3 or 4. - 2.4. Where, for an entry in the first two columns, a rule is specified in both columns 3 and 4, the exporter may opt, as an alternative, to apply either the rule set out in column 3 or that set out in column 4. If no origin rule is given in column 4, the rule set out in column 3 is to be applied.

Note 3:

Example:

str. 33The rule for fabrics of headings 5208 to 5212 provides that natural fibres may be used and that the chemical materials, among other materials, may also be used. This does not mean that both have to be used; it is possible to use one or the other, or both. - 3.5. Where a rule in the list specifies that a product must be manufactured from a particular material, the condition obviously does not prevent the use of other materials which, because of their inherent nature, cannot satisfy the rule. (See also Note 6.2 below in relation to textiles).

str. 33The rule for prepared foods of heading 1904, which specifically excludes the use of cereals and their derivatives, does not prevent the use of mineral salts, chemicals and other additives which are not products from cereals.

str. 34In the case of an article of apparel of ex Chapter 62 made from non-woven materials, if the use of only non-originating yarn is allowed for this class of article, it is not possible to start from non-woven cloth - even if non-woven cloths cannot normally be made from yarn. In such cases, the starting material would normally be at the stage before yarn - that is, the fibre stage. - 3.6. Where, in a rule in the list, two percentages are given for the maximum value of nonoriginating materials that can be used, then these percentages may not be added together. In other words, the maximum value of all the non-originating materials used may never exceed the higher of the percentages given. Furthermore, the individual percentages must not be exceeded, in relation to the particular materials to which they apply.

Note 4:

str. 34- 4.1. The term "natural fibres" is used in the list to refer to fibres other than artificial or synthetic fibres. It is restricted to the stages before spinning takes place, including waste, and, unless otherwise specified, includes fibres which have been carded, combed or otherwise processed, but not spun. - 4.2. The term "natural fibres" includes horsehair of heading 0503, silk of headings 5002 and 5003, as well as wool-fibres and fine or coarse animal hair of headings 5101 to 5105, cotton fibres of headings 5201 to 5203, and other vegetable fibres of headings 5301 to 5305. - 4.3. The terms "textile pulp", "chemical materials" and "paper-making materials" are used in the list to describe the materials, not classified in Chapters 50 to 63, which can be used to manufacture artificial, synthetic or paper fibres or yarns. - 4.4. The term "man-made staple fibres" is used in the list to refer to synthetic or artificial filament tow, staple fibres or waste, of headings 5501 to 5507.

Note 5:

str. 34- 5.1. Where, for a given product in the list, reference is made to this Note, the conditions set out in column 3 shall not be applied to any basic textile materials used in the manufacture of this product and which, taken together, represent 10 % or less of the total weight of all the basic textile materials used. (See also Notes 5.3 and 5.4 below.) - 5.2. However, the tolerance mentioned in Note 5.1 may be applied only to mixed products which have been made from two or more basic textile materials.

Example:

str. 35A yarn, of heading 5205, made from cotton fibres of heading 5203 and synthetic staple fibres of heading 5506, is a mixed yarn. Therefore, non-originating synthetic staple fibres which do not satisfy the origin-rules (which require manufacture from chemical materials or textile pulp) may be used, provided that their total weight does not exceed 10 % of the weight of the yarn.

str. 35A woollen fabric, of heading 5112, made from woollen yarn of heading 5107 and synthetic yarn of staple fibres of heading 5509, is a mixed fabric. Therefore, synthetic yarn which does not satisfy the origin-rules (which require manufacture from chemical materials or textile pulp), or woollen yarn which does not satisfy the origin-rules (which require manufacture from natural fibres, not carded or combed or otherwise prepared for spinning), or a combination of the two, may be used, provided that their total weight does not exceed 10 % of the weight of the fabric. Example:

Tufted textile fabric, of heading 5802, made from cotton yarn of heading 5205 and cotton fabric of heading 5210, is a only mixed product if the cotton fabric is itself a mixed fabric made from yarns classified in two separate headings, or if the cotton yarns used are themselves mixtures.

str. 35If the tufted textile fabric concerned had been made from cotton yarn of heading 5205 and synthetic fabric of heading 5407, then, obviously, the yarns used are two separate basic textile materials and the tufted textile fabric is, accordingly, a mixed product. - 5.3. In the case of products incorporating "yarn made of polyurethane segmented with flexible segments of polyether, whether or not gimped", this tolerance is 20 % in respect of this yarn. - 5.4. In the case of products incorporating "strip consisting of a core of aluminium foil or of a core of plastic film whether or not coated with aluminium powder, of a width not exceeding 5 mm, sandwiched by means of a transparent or coloured adhesive between two layers of plastic film", this tolerance is 30 % in respect of this strip.

Note 6:

str. 35- 6.1. Where, in the list, reference is made to this Note, textile materials (with the exception of linings and interlinings), which do not satisfy the rule set out in the list in column 3 for the made-up product concerned, may be used, provided that they are classified in a heading other than that of the product and that their value does not exceed 8 % of the ex-works price of the product.

Example:

str. 36If a rule in the list provides that, for a particular textile item (such as trousers), yarn must be used, this does not prevent the use of metal items, such as buttons, because buttons are not classified within Chapters 50 to 63. For the same reason, it does not prevent the use of slide-fasteners, even though slide-fasteners normally contain textiles. - 6.3. Where a percentage-rule applies, the value of materials which are not classified within Chapters 50 to 63 must be taken into account when calculating the value of the nonoriginating materials incorporated.

Note 7:

str. 36- 7.1. For the purposes of headings ex 2707, 2713 to 2715, ex 2901, ex 2902 and ex 3403, the "specific processes" are the following:
- (a) vacuum-distillation;
- (b) redistillation by a very thorough fractionation-process;
- (c) cracking;
- (d) reforming;
- (e) extraction by means of selective solvents;
- (f) the process comprising all of the following operations: processing with concentrated sulphuric acid, oleum or sulphuric anhydride; neutralisation with alkaline agents; decolourisation and purification with naturally-active earth, activated earth, activated charcoal or bauxite;
- (g) polymerisation;
- (h) alkylation;
- (i) isomerisation. - 7.2. For the purposes of headings 2710, 2711 and 2712, the "specific processes" are the following:
- (a) vacuum-distillation;
- (b) redistillation by a very thorough fractionation-process;
- (c) cracking;
- (d) reforming;
- (e) extraction by means of selective solvents;
- (f) the process comprising all of the following operations: processing with concentrated sulphuric acid, oleum or sulphuric anhydride; neutralisation with alkaline agents; decolourisation and purification with naturally-active earth, activated earth, activated charcoal or bauxite;
- (g) polymerisation;
- (h) alkylation;
- (ij) isomerisation;
- (k) in respect of heavy oils of heading ex 2710 only, desulphurisation with hydrogen, resulting in a reduction of at least 85 % of the sulphur-content of the products processed (ASTM D 1266-59 T method);
- (l) in respect of products of heading 2710 only, deparaffining by a process other than filtering;
- (m) in respect of heavy oils of heading ex 2710 only, treatment with hydrogen, at a pressure of more than 20 bar and a temperature of more than 250 °C, with the use of a catalyst, other than to effect desulphurisation, when the hydrogen constitutes an active element in a chemical reaction. The further treatment, with hydrogen, of lubricating oils of heading ex 2710 (e.g. hydrofinishing or decolourisation), in order, more especially, to improve colour or stability shall not, however, be deemed to be a specific process;
- (n) in respect of fuel oils of heading ex 2710 only, atmospheric distillation, on condition that less than 30 % of these products distils, by volume, including losses, at 300 °C, by the ASTM D 86 method;
- (o) in respect of heavy oils other than gas oils and fuel oils of heading ex 2710 only, treatment by means of a high-frequency electrical brush-discharge; (p) in respect of crude products (other than petroleum jelly, ozokerite, lignite wax or peat wax, paraffin wax containing by weight less than 0.75 % of oil) of heading ex 2712 only, de-oiling by fractional crystallisation.

str. 37different sulphur-contents, or any combination of these operations or like operations, do - 7.3. For the purposes of headings ex 2707, 2713 to 2715, ex 2901, ex 2902 and ex 3403, simple operations, such as cleaning, decanting, desalting, water-separation, filtering, colouring, marking, obtaining a sulphur-content as a result of mixing products with not confer origin.

ANNEX II

L

str. 38IST OF WORKING OR PROCESSING REQUIRED TO BE CARRIED OUT ON NON-ORIGINATING MATERIALS IN ORDER THAT THE PRODUCT MANUFACTURED CAN OBTAIN ORIGINATING STATUS

The products mentioned in the list may not be all covered by the Agreement. It is, therefore, necessary to consult the other parts of the Agreement.

|    |     |
|----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|---------------------|---------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------

str. 67regenerated cellulose, polyamides or polyethylene Foils of plastic, metallised | Manufacture in which the value of all the materials of the same heading as the product used does not exceed 20 %of the ex- works price of the product Manufacture from highly- transparent polyester-foils | Manufacture in which the value of all the materials used does not

str. 123-------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------

str. 123flashlight apparatus and flashbulbs other than electrically ignited flashbulbs | Manufacture: - from materials of any heading, except that of the product, - in which the value of all the materials used does not exceed 40 %of the ex-works price of the

str. 123| the originating materials used Manufacture: - from materials of any heading, except that of the product, - in which the value of all the materials used does not exceed 40 %of the ex-works price of the | Manufacture in which the

str. 123originating materials used Manufacture: - from materials of any heading, except that of the product, - in which the value of all the materials used does not exceed 40 %of the ex-works price of the | Manufacture in which the value of all the materials used does not

str. 124materials used does not exceed 40 %of the ex-works price of the product | |

Printing instructions

str. 1331. Each form shall measure 210 x 297 mm; a tolerance of up to minus 5 mm or plus 8 mm in the length may be allowed. The paper used must be white, sized for writing, not containing mechanical pulp and weighing not less than 25 g/m 2 . It shall have a printed green guilloche pattern background making any falsification by mechanical or chemical means apparent to the eye. 2. The competent authorities of Croatia and Lithuania may reserve the right to print the forms themselves or may have them printed by approved printers. In the latter case, each form must include a reference to such approval. Each form must bear the name and address of the printer or a mark by which the printer can be identified. It shall also bear a serial number, either printed or not, by which it can be identified.

MOVEMENT CERTIFICATE

str. 1331. Exporter (Name, full address, country)

EUR.1

See notes overleaf before completing this form. 2. Certificate used in preferential trade between

........................................................................

...............

3. Consignee (Name, full adress, country) (Optional)

and

........................................................................

...............

(Insert appropriate countries, groups of countries or territories)

4. Country, group of countries or territory in which the products are considered as originating

5. Country, group of countries or territory of destination

6. Transport details (Optional)

7. Remarks

No A

000

str. 1348. Item number; Marks and numbers; Number and kind of packages (1) ; Description of goods

9. Gross mass (kg) or other measure (litres, m 3 ., etc.) 10. Invoices (Optional)

11. CUSTOMS ENDORSEMENT

str. 134Declaration certified

Export document (2)

Form ..................................No ….……...

Of ………………………………………. Customs office .................................……

Issuing country or territory ...................... Stamp

...................................................................

...................................................................

Place and date ……………......................

...................................................................

……............................................................

(Signature)

12. DECLARATION BY THE EXPORTER

- I, the undersigned, declare that the goods described above meet the conditions required for the issue of this certificate. Place

and

date

………………........................

................................................................

..........

(Signature)

(1) If goods are not packed, indicate number of articles or state « in bulk » as appropriate

(2) .Complete only where the regulations of the exporting country or territory require.

str. 13513. REQUEST FOR VERIFICATION, to

14. RESULT OF VERIFICATION

str. 135Verification carried out shows that this certificate (1)

- [ ]  was issued by the customs office indicated and

that the information contained therein is accurate. - [ ]  does not meet the requirements as to authenticity and accuracy (see remarks appended). Verification of the authenticity and accuracy of this certificate is requested. ...............................................……………................

.................

(Place and date)

Stamp

.....................................................……

(Signature)

.........................................………………………

………..

(Place and date)

Stamp

.....................................................…

(Signature)



(1) Insert X in the appropriate box.

NOTES

str. 1351. Certificate must not contain erasures or words written over one another. Any alterations must be made by deleting the incorrect particulars and adding any necessary corrections. Any such alteration must be initialled by the person who completed the certificate and endorsed by the Customs authorities of the issuing country or territory. 2. No spaces must be left between the items entered on the certificate and each item must be precede by an item number. A horizontal line must be drawn immediately below the last item. Any unused space must be struck through in such a manner as to make any later additions impossible. 3. Goods must be described in accordance with commercial practice and with sufficient detail to enable them to be identified.

APPLICATION FOR A MOVEMENT CERTIFICATE

DECLARATION BY THE EXPORTER

str. 136I, the undersigned, exporter of the goods described overleaf, DECLARE that the goods meet the conditions required for the issue of the attached certificate; SPECIFY as follows the circumstances which have enable these goods to meet the above conditions: ............................................................................................................................................... ............................................................................................................................................... ............................................................................................................................................... ...............................................................................................................................................

str. 137SUBMIT

the following supporting documents ( 90 ):

...............................................................................................................................................

...............................................................................................................................................

...............................................................................................................................................

............................................................................................................................................... UNDERTAKE to submit, at the request of the appropriate authorities, any supporting evidence which these authorities may require for the purpose of issuing the attached certificate, and undertake, if required, to agree to any inspection of my accounts and to any check on the processes of manufacture of the above goods, carried out by the said authorities;

REQUEST the issue of the attached certificate for these goods. ................................................ . .......................................

(Place and date)

. ........................................................................................

(Signature)



ANNEX IV

Text of the invoice declaration

str. 137The invoice declaration, the text of which is given below, must be made out in accordance with the footnotes. However, the footnotes do not have to be reproduced.

Croatian version

str. 138Izvoznik proizvoda obuhvaćenih ovom ispravom (carinsko ovlaštenje br. ....... ... (1) ) izjavljuje da su, osim ako je drukčije izričito navedeno, ovi proizvodi ............ (2) preferencijalnoga podrijetla. Kumulacija sa...... (5)

Lithuanian version

str. 138Šiame dokumente išvardintų prekių eksportuotojas (muitinės liudijimo Nr … (1) ) deklaruoja, kad, jeigu kitaip nenurodyta, tai yra … (2) preferencinės kilmės prekės. Kumuliacija su (5) .........

English version

str. 138The exporter of the products covered by this document (customs authorization No ... (1) ) declares that, except where otherwise clearly indicated, these products are of ...... (2) preferential origin. Cumulation with (5) ……..applied. 90 For example : import documents, movement certificates, invoices, manufacturer's declarations, etc., referring to the products used in manufacture or to the goods re-exported in the same state. ……………………………………………………………............................................. 3(Place

and date)

...……………………………………………………………………..............................

str. 1394

(Signature of the exporter, in addition the name of the person signing the declaration has to be indicated in clear script)

REGARDING MUTUAL ASSISTANCE IN CUSTOMS MATTERS

Article 1 Definitions

str. 139For the purpose of this Protocol:

- (a) 'customs legislation' shall mean laws and regulations applicable in the territories of the states of the Parties governing the import, export, transit of goods or any other customs procedure including measures of prohibition, restriction and control;
- (b) 'customs duties' shall mean all duties, taxes, fees and other charges which are levied and collected in the territories of the states of the Parties, in application of customs legislation, but not including fees and charges which are limited in amount to the approximate costs of services rendered;
- (c) 'offence' shall mean any breach or attempted breach of customs legislation;
- (d) 'applicant authority' shall mean the customs authority that requests assistance;
- (e) 'requested authority' shall mean the customs authority from which assistance is requested;
- (f) 'customs authority' shall mean in the Republic of Croatia - Customs Directorate under the Ministry of Finance of the Republic of Croatia and in the Republic of Lithuania - the Customs Department under the Ministry of Finance of the Republic of Lithuania.

Article 2 Scope of the Protocol

str. 1391 When the invoice declaration is made out by an approved exporter, the authorization number of the approved exporter must be entered in this space. When the invoice declaration is not made out by an approved exporter, the words in brackets shall be omitted or the space left blank. 2 Origin of products to be indicated. 3 These indications may be omitted if the information is contained on the document itself. 4 In cases where the exporter is not required to sign, the exemption of signature also implies the exemption of the name of the signatory. 5 When the cumulation is applied, the name of country(ies) must be entered in this space.

str. 1401. The Parties shall assist each other, in the manner and under the conditions laid down in this Protocol, in ensuring that customs legislation is correctly applied, in particular by the prevention, detection and investigation of offences to this legislation. 2. Assistance in customs matters, as provided for in this Protocol, shall be rendered in accordance with the legislation in force in the territory of the state of the requested Party and within the competence and resources of the requested authority. If necessary, the requested authority can arrange for assistance to be provided by another authority, in accordance with the legislation in force in the territory of the state of the requested Party. This Protocol shall not prejudice the rules governing mutual assistance in the field of crime investigations.

Article 3 Assistance on Request

str. 1401. At the request of the applicant authority, the requested authority shall provide, to the extent of its legal means, all relevant information to ensure that customs legislation is correctly applied, including information regarding information regarding operations carried out or planned which breach or would breach such legislation. 2. Upon request, the customs authorities shall inform each other whether goods exported from the territory of the state of one Party have been legally imported into the territory of the state of the other Party, specifying, where appropriate, the customs procedure applied to the goods. At the request of the applicant authority, the requested authority shall take the necessary steps to ensure that the surveillance is kept on:

- (a) natural or legal persons known or suspected of committing offences, particularly those moving into and out of the territory of the requested Party;
- (b) movements of goods known or suspected as giving rise to substantial illicit traffic to or from its territory;
- (c) means of transport known or suspected of being used for committing offences against the customs legislation in force in the territory of the other Party.

Article 4 Spontaneous Assistance

str. 140The Parties shall provide each other with assistance, in accordance with the laws and regulations, if they consider that to be necessary for the correct application of customs legislation, particularly when they obtain information pertaining to:

- (a) operations which have breached, breach or would breach the customs legislation and which may be of interest to the other Party;
- (b) new means or methods employed in realizing such operations;
- (c) goods known to be subject to serious offences to customs legislation.

Article 5 Delivery/Notification

str. 140At the request of the applicant authority, the requested authority shall, in accordance with the legislation in force on the territory of the state of the requested Party, deliver all documents and notify decisions issued by the applicant authority falling within the scope of this Protocol to an addressee, residing or established in its territory. In such case Article 6 (3) is applicable.

Article 6 Form and Substance of Requests for Assistance 1. Requests pursuant to the present Protocol shall be made in writing. Documents necessary for the execution of such requests shall accompany the request. When required because of the urgency of the situation, oral requests may be accepted, but must be confirmed in writing immediately.

str. 1412. Requests pursuant to paragraph 1 of this Article shall include the following information:
3. (a) the name of the applicant authority transmitting the request;
4. (b) the measure requested;
5. (c) the object of and the reason for the request;
6. (d) the laws, regulations and other relevant legal acts;
7. (e) indications as exact and comprehensive as possible on the natural or legal persons being the target of the investigations;
8. (f) a summary of the relevant facts, except in cases provided for in Article 5. 3. Requests shall be submitted in an official language of the requested authority, in English, or in a language acceptable to such authority. 4. If a request does not meet the formal requirements, its correction or completion may be demanded. 5. The documents provided for in paragraph 1 of this Article may be replaced by computerized information produced in any form for the same purpose. All relevant information for the implementation or utilization of the material should be supplied at the same time.

Article 7 Execution of Requests

str. 1411. In order to comply with a request for assistance, the requested authority, or, when the latter cannot act on its own, another competent authority to which the request has been addressed by the requested authority, shall proceed, within its competence and available resources, as though it were acting on its own account or at the request of the other authorities of that same Party, by supplying information already possessed, by carrying out appropriate inquiries or by arranging for them to be carried out. 2. Requests for assistance will be executed in accordance with the laws and other legal instruments of the requested Party. 3. Dully authorized officials of one of the Parties may, with the agreement of the other Party involved and within the conditions laid down by the latter, obtain from the offices of the requested authority or other authority for which the requested authority is responsible, information relating to the offence to customs legislation which the applicant authority needs for the purposes of this Protocol. 4. Officials of one of the Parties may, with the agreement of the other Party involved and within the conditions laid down by the latter, be present at inquiries carried out in the latter's state territory. They shall not have the right to perform any legal proceedings.

Article 8 Exceptions from the Obligation to Provide Assistance

str. 1411. The Parties may refuse to provide assistance, to provide it partially or subject to certain conditions or requirements of this Protocol, where to do so would:
2. (a) be likely to prejudice sovereignty, public order, security or other essential interests of the requested Party; or
3. (b) involve violation of an industrial, commercial or professional secret. 2. If the applicant authority asks for assistance which it itself would be unable to provide if so asked, it shall draw attention to that fact in its request. Compliance with such a request shall be at the discretion of the requested authority. 3. If assistance is postponed or denied, reasons for the denial or postponement shall be notified to the applicant authority without delay.

Article 9 Obligation to Observe Confidentiality

str. 1411. Information, documents and other communications received under this Protocol shall not be used for purposes other than those specified in this Protocol, without the written consent of the customs authority, which has furnished them. 2. Any information communicated in whatever form pursuant to this Protocol shall be of a confidential nature. It shall be covered by the obligation of official secrecy and shall enjoy the protection extended to the same kind of information and documents under the legislation in force in the territory of the state of the Party, which received it. 3. Paragraph 1 of this Article shall not impede the use of information in any judicial or administrative proceedings subsequently instituted for failure to comply with customs legislation.

Article 10 Use of Information

str. 141The requested authority shall communicate results of inquiries to the applicant authority in the form of reports, records of evidence or certified copies of documents. Original files and documents shall be requested only in cases where certified copies would be insufficient. Files and documents, which have been transmitted, shall be returned at the earliest opportunity.

Article 11 Experts and Witnesses

str. 141The requested authority of one Party may authorize its officials upon request of the applicant authority of the other Party, to appear as experts or witnesses in judicial or administrative proceedings relating to the scope covered by the present Protocol in the territory of the state of the other Party.

Article 12 Assistance Expenses

str. 141The Parties shall waive all claims for the reimbursement of costs incurred in the execution of this Protocol, with the exception of expenses for experts, witnesses, interpreters and translators who are not public employees.

Article 13 Implementation

str. 1411. The management of this Protocol shall be entrusted to the Customs Department under the Ministry of Finance of the Republic of Lithuania and the Customs Directorate under the Ministry of Finance of the Republic of Croatia. They shall decide on practical measures and arrangements necessary for the application of this Protocol, taking into consideration rules in the field of data protection. 2. The customs authorities of the Parties may arrange for their respective services to be in direct communication with each other.