Selling factors and techniques acceptable for a Lithuanian customer are very similar to those in the United States or elsewhere in Europe. Local market research companies can assist in identifying marketing methods for a specific commodity. For more information on Lithuanian companies, see Lithuanian Business Directory
Trade Promotion and Advertising
Pricing
Prices are generally driven by free market forces, although the government controls the prices of natural gas water, heating and electricity. Government may also influence the pricing policies of companies under its direct or indirect control.
Prices of most goods and services generally include a VAT. Current VAT rates are as follows:
- Standard rate: 21%
- Some domestic passenger transport; hotel accommodation; food purchased at restaurants, district heating; books (excluding e-books); firewood: 9%
- Pharmaceutical products; medical equipment for disabled persons; newspapers and periodicals (some exceptions): 5%
- Intra-community and international transport: 0%
Sales Service/Customer Support
Major suppliers normally establish sales offices that are supported by a dealer network. As a general rule, one exclusive distributor covers the whole country.
Conscious of the discrepancies among EU Member States in product labeling, language use, legal guarantees, and liability, the redress of which inevitably frustrates consumers in cross-border shopping, EU institutions have launched a number of initiatives aimed at harmonizing national legislation. Suppliers within and outside the EU should be aware of existing and upcoming legislation affecting sales, service, and customer support.
Under the 1985 Directive on Liability of Defective Products, amended in 1999, the producer is liable for damage caused by a defect in his product. The victim must prove the existence of the defect and a causal link between defect and injury (bodily as well as material). A reduction of liability of the manufacturer is granted in cases of negligence on the part of the victim.
The 1992 General Product Safety Directive introduces a general safety requirement at the EU level to ensure that manufacturers only place safe products on the market. It was revised in 2001 to include an obligation on the producer and distributor to notify the Commission in case of a problem with a given product, provisions for its recall, the creation of a European Product Safety Network, and a ban on exports of products to third countries which are not deemed safe in the EU.
Under the 1999 Directive on the Sale of Consumer Goods and Associated Guarantees, professional sellers are required to provide a minimum two-year warranty on all consumer goods sold to consumers (natural persons acting for purposes outside their trade, businesses or professions), as defined by the Directive. The remedies available to consumers in case of non-compliance are:
- repair of the good(s);
- replacement of the good(s);
- price reduction; or
- rescission of the sales contract.
Local Professional Services
For more information on Lithuanian companies, see Lithuanian Business Directory The U.S. Embassy’s Consular Section The U.S. Embassy’s Consular Section also maintains a list of local doctors and attorneys.
Principal Business Associations
Lithuanian Confederation of Industrialists
Lithuanian Association of Chambers of Commerce and Trade
Lithuanian Employers’ Confederation
Limitations on Selling U.S. Products and Services
There are no limitations on selling U.S. products and services in Lithuania.