Domestic Trade
Preliminary data of Statistics Lithuania suggests that the turnover (excluding VAT) of retailers, companies trading in motor vehicles and motorcycles, companies engaged in technical maintenance and repairs and retailers of vehicle fuel amounted to 17,641.2 million litas in 2003, 14.3 per cent higher than in 2002.
In 2003, the turnover of the companies selling foodstuffs and non-food goods (excluding vehicles) increased by 11.1 per cent.
The turnover of companies selling motor vehicles and motorcycles, companies engaged in technical maintenance and repairs and retailers of vehicle fuel increased 20.5 per cent in 2003.
In 2003, the turnover of restaurants, bars and other catering enterprises was 17.4 per cent higher.
The pace of development of retail turnover in 2003 as opposed to the preceding year is shown in Figure 14 .
Figure 14
Pace of Development of Retail Turnover from January-December 2003 (compared with the respective month of the previous year), per cent
The development of turnover of commodity retail was influenced by changing prices. Annual deflation in December 2003 stood at 1.3 per cent (compared with December of 2002).
The level of annual deflation was influenced by commodities and services in the communications group, whose price fell 12.2 per cent because of the 100 per cent discount for inter-city calls by fixed telephone line on weekends and holidays in December. The price index was also influenced by a 3.6 per cent price reduction in commodities and services in the household furnishing, household equipment and household maintenance group.
The pace of development of vehicle fuel retail turnover over for January to December of 2003 was influenced by decreasing fuel prices (Figure 15).
Figure 15
Changes in Turnover of Vehicle Fuel Retail and Changes in Retail Prices of Fuel (Including Lubricants) for January-December of 2003 (compared with the respective period of the preceding year), per cent
To form and implement state policies in the areas of domestic trade, provision of services, advertising, protection of consumer rights and public procurement, the Ministry of Economy improved the legal framework regulating these areas.
In order to implement Lithuanian commitments related to its membership in the European Union a new edition of the Law Amending the Law on Public Procurement was drafted and adopted in the Seimas. The law came into effect on 1 March 2003 removing obstacles for building the single market and making public procurement procedures uniform, which should open Lithuanian economic entities more opportunities for participation in procurement procedures organised in other countries and for expanding their activities. The law also solves the lingering public procurement problems, including corruption, inadequate efficiency of public procurement, rigid procurement procedures and long waits for analysing complaints and claims. The Public Procurement Service had its mandate expanded to be able to choose more effective and expedient control of public procurement procedures. For this reason the numbers of public procurement procedures held by way of open procedure are moving upwards. In 2003, that part amounted to over 83 per cent of total procurement value. Moreover, the Law on Public Procurement provides for application of new information technologies in public procurement procedures. There is an opportunity provided for suppliers and contracting authorities to communicate by electronic means (fax, telephone, e-mail, etc.), and to announce procurement contracts and related information on the Internet. In addition, there is an opportunity to provide tenders and conclude contracts by electronic means, but before this becomes effective electronic signature infrastructure has to be created and developed and a method for ensuring confidentiality of tenders transferred electronically has to be introduced.
In order to ensure more effective public procurement procedures the Ministry, along with the Public Procurement Service, drafted the accompanying legislation to the Law on Public Procurement . The Lists of Contracting Authorities were approved by Order No. 4-72 of the Minister of Economy on 21 February 2003 and the Rules of Certifying Public Procurement Procedures of Contracting Authorities Active in the Areas of Water Management, Energy, Transport or Telecommunications and Requirements for Independent Experts were approved by Order No. 4-82 of the Minister of Economy on 26 February 2003.
Seeking the liberalise business and remove unsubstantiated business restrictions new editions of the Law on Tobacco Control and the Law on Alcohol Control were drafted and adopted. The laws eliminate the import licensing procedure and state monopoly of alcohol production, review the amounts of fines imposed for violations of these laws and establish a specific procedure for analysing and imposing economic sanctions.
To implement provisions of the European Parliament and Council Directive 2001/37/EC the Minister of Economy issued, on 23 May 2003, Order No. 4-195 on the Approval of the Rules on Presentation of Warnings Against the Harmful Health Effects of Tobacco Products, References to the Batches of Tobacco Products and the Amount of Dangerous Substances on the Labels of Tobacco Products Sold in Lithuania.
The legal framework governing alcohol control policies was further improved and the resolution of the Lithuanian Government Regarding the Approval of the Procedure for the Selling of Non-Denatured Ethyl Alcohol Produced in the Republic of Lithuania and Denatured Ethyl Alcohol Produced in the Republic of Lithuania and Imported Applicable to Economic Entities and of the Rules for Wholesale Licensing in Non-Denatured Ethyl Alcohol Produced in the Republic of Lithuania was drafted (adopted by the Government on 7 February 2003 by Resolution No. 200) . This legislation specifies the procedure for selling non-denatured ethyl alcohol and establishes the procedure for selling non-denatured ethyl alcohol, which had not been previously legally regulated, as well as the rules for issuing wholesale licences in non-denatured ethyl alcohol produced in Lithuania .
In order to organise the payments in commercial transactions for goods sold and services provided the Law on Preventing Delays in Payments in Commercial Transactions was adopted increasing penalties for overdue payments in commercial transactions and establishing which specific contractual terms are unfair in respect of a creditor.
With regard that legislation regulating activities of duty-free shops will contradict the provisions of European Union legislation after Lithuania becomes a full-fledged EU member, the Ministry worked out proposals and submitted them for the scrutiny of the governmental Strategic Planning Committee (later to the Government itself) concerning further operation of duty-free shops after full Lithuanian accession to the EU. The proposals were approved.