REQUIREMENTS FOR TRADE OF TOBACCO PRODUCTS IN LITHUANIA

  • 2009-10-01
  • By Arturas Gutauskas, Assistant to the Attorney at Law
According to the laws of the Republic of Lithuania, it is allowed to raise, manufacture or trade tobacco products only by first obtaining a license.
Tobacco products mean products for the purposes of smoking, sniffing, sucking or chewing, inasmuch as they are, even partly, made of tobacco, whether genetically modified or not. In Lithuania there are no such requirements as a minimum amount of tobacco in a product for it to be called a "tobacco product", so the license is necessary for every product which is fully or partly made of tobacco.
There are several types of licenses for trade in tobacco products.

Firstly, there is the license for wholesale of tobacco products: this license includes the right to buy tobacco products in Lithuania from companies which have licenses to manufacture or wholesale tobacco products, and to import tobacco products from foreign companies. This license also includes the right to sell tobacco products for Lithuanian companies (which have a license for wholesale or retail of tobacco products) and for foreign companies. There is one important requirement for this kind of license: a special warehouse is required. This warehouse has to be officially registered in the Center of Registers as a "warehouse," there must be a separate entrance into it isolated from the other rooms. This warehouse must meet identified security requirements and must be devoted for storage, sorting, completing and selling of tobacco products only. The license for wholesale of tobacco products is issued by The State Tobacco and Alcohol Control Office. The term for issue of this license is 30 days from the submission of the application.

Secondly, there is a license for retail sale of tobacco products: this license includes the right to store and sell tobacco products only in shops, which are indicated in the license. Owner of this license are allowed to buy tobacco products from Lithuanian companies which have a license for wholesale of tobacco products. This license also includes the right to import tobacco products from foreign countries. A license for retail sale of tobacco products is issued by the local municipality where the shop is situated. The term for issue of this license is 30 days from the submission of an application.

Licenses to engage in wholesale and retail sale of tobacco products may be issued for legal entities only: undertakings registered in the Republic of Lithuania and branches of foreign legal persons entitled to engage in economic and commercial activity under the laws of foreign states; exceptions for natural persons exist only for obtaining licenses to engage in tobacco growing, which may be issued to farmers who have registered farms in the Republic of Lithuania.

So, depending on the desired activity (wholesale or retail trade of tobacco products, or both) 's the company must obtain a wholesale license or retail license, or both.

Besides requirements to obtain licenses, there also exist restrictions for trade of tobacco products in the Republic of Lithuania. It is prohibited to sell tobacco: for oral use or sniffing; through automatic vending machines; through communication tools; at retail undertakings where the goods intended for children comprise 50 percent or more of the total turnover of retail goods; at pharmacies, health care, educational and cultural establishments, internet cafes (Internet clubs, etc.); to persons under 18 years of age. Strict requirements are also applied for advertising of tobacco products (by restricting the advertising in general, with only a very few exceptions). And since tobacco products are held as having harmful effects on health and the economy 's consumption of them is also limited.

So when planning to trade tobacco products it is always advised to consult a lawyer in order to comply with all the strict regulations related to such economic activity.