FLANDERS INVESTMENT & TRADE PAPER

(1)

FLANDERS INVESTMENT & TRADE PAPER

LEGAL GUIDELINES

EXPORT OF ALCOHOLIC BEVERAGES

TO THE B ALTIC STATES

(2)

Legal guidelines for the export of alcoholic beverages

to the Baltic States

Flanders Investment & Trade Vilnius – March 2020

(3)

Legal guidelines for the export of alcoholic beverages to the Baltic States 2

Foreword

Lithuania, Latvia and Estonia are among the countries that consume the most alcoholic beverages in Europe. Battling alcohol abuse, the governments of these countries have adopted quite severe restrictions on alcohol sales and advertising. This review identifies authorities that advise and control issues related to alcohol import to the Baltic States and identifies laws detailing the requirements for the sale and promotion of alcoholic beverages. It also provides an overview of the excise duties on alcohol which is a national matter although the Baltics are EU member states.

Source: Eurostat

The Baltic states spend the highest share of household expenditure on alcohol while Spain spends least. In the EU in 2017, the share of total consumption expenditure spent on alcoholic beverages was the largest in three Baltic States: Estonia (5.2%), Latvia (4.9%) and Lithuania (4%). They were followed by Poland (3.5%), Czech Republic (3.3%), Hungary (3%) and Finland (2.8%).

Companies that want to sell alcohol in the Baltic States have basically 2 options. The first one is to register your company in the Lithuanian, Latvian or Estonian Business Register. The second one is the most popular: work with a partner, a distributor in Lithuania, Latvia or Estonia. Some distributors cover the 3 Baltic countries, others just 1 country. Other distributors might offer you to cooperate on the CIS (Commonwealth of Independent States) market as well. It is therefore advisable to cross-check a potential partner with your Flanders Investment & Trade office.

In the Baltic States all imported goods are obligatory to attach a translation of the label (in the original language) in the official national language of the respective state, id est in Lithuanian, Latvian or Estonian. In practise it is mostly the importer - your local partner - who will make these labels and put

(5)

them on your product. This might not be the most esthetical solution, but most likely the most cost effective and very common in the Baltics, due to its small size.

Legislation in the Baltic states

Lithuania

REPUBLIC OF LITHUANIA

LAW ON ALCOHOL CONTROL (Website)

Article 17. “Requirements of Sale, Acquisition, Storing and Transportation of Alcohol Products”: it shall be prohibited for natural persons to take alcoholic beverages from the catering establishments where they have purchased them on Mondays-Saturdays until 10:00 and from 20:00, on Sundays until 10:00 and from 15:00 and etc.

Article 22. “Restriction of Alcoholic Beverage Consumption”: in public places, except for the catering establishments holding licences to engage in retail trade in alcoholic beverages; persons under the age of 20 shall be prohibited from consuming alcoholic beverages or from possessing them and etc.

Article 29. “Restriction of Alcohol Advertising”: alcohol advertising shall be prohibited in the Republic of Lithuania.

Companies can obtain all the permissions and licenses by using the Message Box, set up by the Lithuanian governmental agency Enterprise Lithuania. It is a secure e-mail system that enables users to exchange digital messages with Lithuanian government agencies at a national and municipal level. Message Box is intended for use by entrepreneurs based in the European Economic Area (EEA) who provide their services in Lithuania. Please read the Instructions for Use before using.

DRUG, TOBACCO AND ALCOHOL CONTROL DEPARTMENT Wholesale trade licenses for alcohol products

Licenses for the production of alcohol products Permits to purchase and/or use ethyl alcohol

MUNICIPALITIES OF LITHUANIA issue, supplement, replace and revoke licenses to engage in retail trade in alcoholic beverages.

www.verslilietuva.lt/en/alcohol-tobacco-drugs/

❖ Controlling authority

Drug, tobacco and alcohol control department Address: Šv. Stepono g. 27, LT- 01312 Vilnius T +370 5 266 80 60

ntakd@ntakd.lt www.ntakd.lt

(6)

Latvia

HANDLING OF ALCOHOLIC BEVERAGES LAW

https://likumi.lv/ta/en/id/88009-handling-of-alcoholic-beverages-law

Law Section 6. „Retail trade in alcoholic beverages shall be prohibited” - from 22.00 to 8.00, except for such retail trade points in which alcoholic beverages are sold on tap only and their consumption is ensured on the spot, as well as duty-free shops; using a distance contract; on premises where a sales room is smaller than 20 square meters; It is prohibited to sell alcoholic beverages to persons under 18 years of age and such persons may not purchase them and etc.

Law Section 11. „Restrictions on Alcoholic Beverage Advertisement“. Alcoholic beverage advertisements are prohibited: on the external pages (cover) of books, magazines, newspapers and annexes thereof; in educational and medical treatment institutions and on the walls of such buildings and constructions; on public means of transport and therein and etc.

There is no specific legislation regarding labelling in Latvian for alcoholic beverages. Any food intended for supply to the final consumer in Latvia shall be accompanied by food information in accordance with Regulation (EU) Nr. 1169/2011 of the European Parliament and of the Council of 25 October 2011 on the provision of food information to consumers. This Regulation establishes the general principles, requirements and responsibilities governing food information, and in particular food labelling.

The Latvian Official Language Law in point (3) of Section 21 states that any imported goods, the labelling and instructions for use which includes information in a foreign language, shall have attached thereto a translation of such information in the official language, which is Latvian.

❖ Controlling authority

FOOD AND VETERINARY SERVICE Peldu iela 30, Rīga, LV-1050 Mrs. Diāna Akopova

Food Surveillance Department Food distibution surveillance division Senior Expert

T +371 67095251

diana.akopova@pvd.gov.lv www.pvd.gov.lv

Estonia

ALCOHOL ACT

www.riigiteataja.ee/en/eli/512012018002/consolide ADVERTISING ACT

www.riigiteataja.ee/en/eli/522082014006/consolide

(7)

ALCOHOL ACT § 41. “Prohibitions upon retail sale of alcoholic beverage”- Handing alcoholic beverages over to a consumer upon the provision of delivery services is prohibited from 22.00 to 10.00; Retail sale of alcoholic beverages from stands or in the street or market trading is prohibited.

It is prohibited to sell, serve or supply alcohol beverages to anyone under the age of 18 years. Alcohol found in possession of any child can be confiscated by the police.

§ 28. Advertising of alcohol. Advertising of alcohol is prohibited: in and on the buildings intended for sports, except on the sales premises of alcoholic beverages; in and on the buildings and territories of health care and social welfare institutions; in and on the buildings and territories of cinemas, museums and performing arts institutions, except on the sales premises of alcoholic beverages and etc.

The general requirements for the labelling of alcoholic beverages are provided in REGULATION (EU) No 1169/2011 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 25 October 2011 on the provision of food information to consumers, amending Regulations (EC) No 1924/2006 and (EC) No 1925/2006 of the European Parliament and of the Council, and repealing Commission Directive 87/250/EEC, Council Directive 90/496/EEC, Commission Directive 1999/10/EC, Directive 2000/13/EC of the European Parliament and of the Council, Commission Directives 2002/67/EC and 2008/5/EC and Commission Regulation (EC) No 608/2004 and in Estonian national law Vabariigi Valitsuse 26. aprilli 2004. a määrus nr 134 „Alkoholi määratlemise, kirjeldamise ja müügiks esitlemise nõuded“ § 10-12.

Unfortunately, Estonian regulation is only in Estonian.

You can find the regulations from here:

www.riigiteataja.ee/akt/102042019004

1169/2011: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02011R1169- 20180101&qid=1583157283504&from=ET

❖ Controlling authority VETERINAAR-JA TOIDUAMET Väike-Paala 3, 11415 Tallinn T +372 605 1710

https://vet.agri.ee/

Mrs. Kadri Pajur

Chief specialist Fishery and Market Regulation Department T +372 53507651

Kadri.pajur@vet.agri.ee

(8)

Alcohol excise duties

Excise duties are collected by individual EU member states. The different governments have been changing these regularly over the past years, creating competition between themselves. This resulted into consumers massively crossing the borders to buy cheaper alcohol there. Just across the Estonian border in Latvia for instance, there is a major alcohol store attracting many Estonians and even Finns because of the low prices. Below you find an overview of the different excise duties in the Baltic states.

Lithuania

(9)

Latvia

(10)

Estonia

Sources of information

• Articles in the Baltic Course

• Information provided by the local ministries of economy

• Information provided by the local economic development agencies (export and investment)

• Information provided by EUROSTAT

Disclaimer

The information in this publication is provided for background information that should enable you to get a picture of the subject treated in this document. It is collected with the greatest care on the bases of all data and documentation available at the moment of publication. Thus this publication was never intended to be the perfect and correct answer to your specific situation. Consequently it can never be considered a legal, financial or other specialized advice. Flanders Investment and Trade (FIT) accepts no liability for any errors, omissions or incompleteness’s, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organization mentioned.

Date of publication: March 2020

FLANDERS INVESTMENT & TRADE PAPER