Import taxes in Lithuania are as per EU standards because Lithuania is a member state of the EU. Here’s an overview of what to expect regarding import duties:
EU customs union no taxes on internal EU business
The products that are in transit from Lithuania to other EU member states do not attract customs duty or physical barrier checks since Lithuania is a member of the EU – Customs Union. This means that goods can circulate freely within the boundary of the EU without incurring more expenses or forming through customs formalities.
Taxation of imports from countries other than EU member states
Lithuania uses the CCT when importation originates from the non-European Union countries for its products. Duty rates depend on:
This is because of the type of product (duty rates are categorized based on the type of product). The provenience of the traded goods (some countries have preferential trade agreements with the EU where they afford to impose zero or rebated duties on imported goods). Of course, any special EU trade agreements with the exporting country.
The distance can also be a factor. For instance, short distances between borders may attract higher duty than long distances between borders may attract lower duty than between say electronics and textiles or agricultural produce.
VAT on imports
Lithuania has an imposed Value Added Tax on imported goods, although at a normal rate of 21 percent . A rate of 9% and 5% may however apply to some essential commodities such as books, medicines and some services.
VAT is calculated on the total cost of the imported goods, which includes:
Exemption and allowances: Personal Importation
For travellers bringing items into Lithuania for personal use, there are allowances for small quantities of goods without paying VAT or customs duties:
Gifts if the value of gifts does not exceed €45 and the goods are imported from a country outside the European Union then they are zero-rated.
Small quantities of articles imported for personal use, not exceeding €150 may qualify for duty exemption but will attract VAT. For private persons importing goods on a non-business basis, VAT and duties may be claimed back where values are below certain limits.
Import and export customs requirements for companies
Special customs procedures could be applied in Lithuania businesses to either: defer, reduce or even eliminate duty expenses. These include:
Customs warehousing: warehousing goods for short periods without paying duties allowing them to put the goods on the Lithuanian market.
Inward processing: this enables business entities to bring in electronics for assembly and processing and then export them free of duties.
Restricted and prohibited goods
Certain products like chemicals and substances, some that are prohibited under the EU health, safety and environment regulations, products made from endangered species or some unknown substances require permits in shipment.
When it comes to particulars of the duty rates depending on the product type, Lithuania employs the EU TARIC database providing information on the tariffs, classifications, and relevant rules. When goods are imported into the European Union they must notify customs according to the Combined Nomenclature classification. Every product imported into the European Union bears a tariff code which contains information on rates of duty and other charges on importation and exportation. Protective measures (if any) such as anti-dumping, trade statistics, procedures for import and export, and non-tariff conditions.
The EU classification system
The EU classification system is made up of three elements that are linked with one another. The first is the HS nomenclature which is a system compiled by the World Customs Organization. Which is a 5,000-item list of traded goods divided into 21 sections, 99 chapters, 1245 headings, and 5222 subheadings. The second is the Combined Nomenclature which is the EU-specific codes and information and is the eight-digit coding system of the Harmonized system plus subdivisions for the European Union. This is the common customs tariff of the European Union and also contains statistics concerning trade within the internal front of the European Union. And between the internal front of the European Union and the rest of the world. The third one is called the Integrated Tariff (Tarif Intégré de la Communauté or TARIC) containing information on all trade policy and tariff measures relating to certain goods within the European Union. (Ad hoc suspension of duties and antidumping duties). It consists of a CN code of eight digits along with two additional serial numbers known as the TARIC subheadings. Data on the CN is renewed annually and can be retrieved from the official website of the European Commission.
The Integrated Tariff is updated daily with regard to the various rules that apply to particular products which are imported into the customs territory of the European Union; therefore, U.S. exporters should adopt the usage of the Integrated Tariff. The Integrated Tariff can be searched according to the country of origin, the HS code and the description on the Web page of the EU Directorate-General for Taxation and the Customs Union.
Additional considerations
Free Trade Agreements: Lithuania enjoys various FTAs which can even cut or fully eliminate import tariffs on products imported from certain countries or regions.
Origin Rules: Under the free trade agreements, different product preferences are given different favourable tariffs and to be qualified for these favourable tariffs, products must meet certain origin requirements.
Customs Clearance: The customs formalities for import and export in Lithuania may be difficult, so it is recommended to address a customs broker for the proper and adequate performance of customs clearance.
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